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OFPP Proposes Changes to Circular A-131, Value Engineering

The Office of Federal Procurement Policy is proposing to revise OMB Circular A-131, Value Engineering (70,159), to update and reinforce policies associated with the consideration and use of value engineering. According to OFPP, value engineering is an effective technique for cutting waste and inefficiency to help federal agencies save billions of dollars in program and acquisition costs, improve performance, enhance quality, and foster innovation. The proposed revisions reflect present-day buying strategies and practices, such as performance-based service contracting, to ensure that the government is effectively considering and taking full advantage of value engineering, whenever appropriate, to cut waste and inefficiency and promote greater fiscal responsibility. More specifically, the proposed revisions reinforce the importance of giving meaningful consideration to value engineering to save money and improve performance; explain that value engineering can be used with various contract types and methods of contracting, and with other management tools; increase the threshold for the application of value engineering from $1 million to $2 million; strengthen training; reduce reporting requirements; and eliminate automatic Inspector General review. Comments on the proposed revisions are due August 7, 2012. For the text of the notice, see 70,165.128.




(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )


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