An analysis of the functions of a program, project, system, product, item of equipment, building, facility, service, or supply of an executive agency, performed by qualified agency or contractor personnel, directed at improving performance, reliability, quality, safety, and life-cycle costs. (FAR 48.001)
An organized effort to analyze the functions of systems, equipment, facilities, services, and supplies for the purpose of achieving the essential functions at the lowest life cycle cost consistent with required performance, reliability, quality, and safety. (FAR 52.248-2(b))
Value Analysis Report
A written document recording the process and synopsizing the alternatives developed and discussed during the value analysis. Format and content of report shall be as shown in the Value Analysis Report template.
Value-Based Decision-Making Methodology
Value Analysis methods that include:
Creative techniques to expand alternatives, such as brainstorming
Structured evaluation methods using benefit/cost comparisons, such as Choosing by Advantages (CBA)
Value Engineering Change Proposal (VECP)
A proposal that:
Requires a change to the instant contract to implement; and
Results in reducing the overall projected cost to the agency without impairing essential functions or characteristics; provided, that it does not involve a change:
In deliverable end item quantities only;
In research and development (R&D) items or R&D test quantities that are due solely to results of previous testing under the instant contract; or
To the contract type only. (FAR 48.001)
Value Engineering Proposal
In connection with an A-E contract, a change proposal developed by employees of the Federal Government or contractor value engineering personnel under contract to an agency to provide value engineering services for the contract or program. (FAR 48.001)
In connection with an A-E contract, a change proposal developed by employees of the Federal Government or contractor value engineering personnel under contract to an agency to provide value engineering services for the contract or program. (FAR 52.248-2(b))
A philosophy that states decisions at any level of a project should be value based, producing the maximum advantages for the best value.
Volpe Transportation Center (VOLPE)
The John A Volpe National Transportation Systems Center is part of the U.S. Department of Transportation's Research and Innovative Technology Administration. The Center assists federal, state, and local governments, industry, and academia in a number of areas, including human factors research, system design, implementation, and assessment, global tracking, strategic investment and resource allocation, environmental preservation, and organizational effectiveness.