VA - Value Analysis
See also Value Methodology (VM).
Value Analysis (VA) / Value Engineering (VE)
- 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 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))
Value Methodology (VM)
A systematic process used by a multidisciplinary team to improve the value of a project through the analysis of functions and resources. Can be applied to any stage of a project, with potential savings and advantages greatest when leveraged early in the planning and design process. Value Methodology in the National Park Service encompasses a full suite of Value Based Decision Tools, including:
- Value Analysis (VA), generally applied to efforts improving existing resources;
- Value Engineering (VE) refers to new projects, processes, products;
- Value Based Decision Inventories
Value Methodology is required for any NPS project with projected costs above $1 million:
- Construction
- $1 million or more: subject to at least one value analysis workshop.
- Scalable value analysis methods can be considered for projects from $1 million to $3.5 million Net Construction ($2 million to $5 million Total Project Cost) OR with a waiver from the VAPC.
- $10 million or more: Utilize value analysis at both the (1) pre-design stage, and (2) design stage (during design development and final design).
- Non-Construction Thresholds
- $1 million or more: subject to value analysis to improve operations and reduce cost. Value analysis may also be required when … major life-cycle costs [exceed] $1 million.
- Less than $1 million: subject to value analysis at the request of the Director, a Deputy Director, or any Associate or Regional Director with line authority.
As the use of Value Methodology has grown within the National Park Service, the Value Methodology Program Office (VMPO) has standardized reports, templates, and guidance known as VM Tools for use in all NPS projects. VM Tools are available through NPS Project Managers (PMs).
Value Methodology Exercise
Value Methodology exercises occurring at the conceptual/schematic stage of project development must consider project scope, needs, alternatives, and cost. All various solutions or alternatives available to meet the identified need are considered and a preferred alternative is selected. Recommendations provided by the methodology to develop the selected alternative have a high probability of being included in subsequent stages of project development. At the conclusion of the exercise, project scope is well defined and major activities required for further project development have been identified.
A Value Methodology Exercise may take several forms:
- Classic single, multi-day study and report focused on proposals to improve the conceptual/schematic design,
- Study designed to select a preferred alternative from a broad range of alternatives, or
- Study combining both approaches.
These exercises/studies will be guided by and targeted on high cost centers from a project cost model and how to improve performance and/or reduce cost for the project. Alternatives should be considered on all major cost centers. Life Cycle cost should be considered where possible. Evaluation methods should allow benefit-cost comparisons and decision-making.
Value Methodology Program Office (VMPO)
Manages National Park Service's Value Methodology Program and assists parks and regions in leveraging value methodologies to maximize each major construction investment’s value.
Value Methodology Report
A written document recording the process and synopsizing the alternatives developed and discussed during the value methodology workshop. Format and content of report available through NPS Project Managers (PMs).
Value Planning
A philosophy that states decisions at any level of a project should be value based, producing the maximum advantages for the best value.
VE - Value Engineering
VECP - Value Engineering Change Proposal
VM - Value Methodology
VMPO - Value Methodology Program Office
VOLPE - Volpe Transportation Center
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.
VPH - Vehicles per Hour
