Contractors overlook may value engineering opportunities. Contractors frequently make the improvement but fail to submit the VECP that can result in the contractor receiving a share of the savings realized. Without the VECP, the Government gets a free ride.

Examples of VECP opportunities include:

A software contractor provides the requested software then presents a VECP for a utility program that reduces the time required by the software administrator in half

A manufacturer of air ducts recommends an alternative filter system than the one specified that reduces maintenance costs and costs less on a unit basis

A manufacturer of shirts recommends the addition of microfibers that lengthen the life of the shirt by 100% while eliminating the need for ironing
Value Engineering - Money in the Bank -
An environmental engineer hired to do an environmental impact sudy may recommend an alternate footprint for a building based on a lower property purchase price for the alternate site (an issue outside the scope of the environmental study).

An engineering firm recommends the use of an innovative core testing procedure that negates the need to dig up a fuel tank for testing purposes

A janitorial contractor provides a wax to apply to brass railings that reduces the number of annual cleanings from four to one

A roofer presents a solution to a chronic pealing problem that he had been hired to merely patch

A maintenance contractor that recommends a windows treatent that reduces window cleaning form three times a year to one

A manufacturer substitutes a component part that will reduce an items unit cost with no negative impact on quality.

These type of opportunities have in common a variation from initial contract requirements. If the change were within the contract requirements it would be the contractor’s responsibility to use the best possible method of accomplishment. If the innovative core testing procedure of the engineering contract said to simply find out the content of the tank, the VECP may be rejected as within the responsibility of the contractor. If, however, the contract specified the unearthing of the tank (which most contracts would in this situation), the VECP would be a valid value engineering proposal. Research contracts may be particularly difficult avenues for VECPs unless the contractor clearly shows the VECP is beyond the scope of research.

Performance contracts can make the line separating a VECP from a performance requirement less clear but it does not erase it completely. It is often in the narrative of the proposal where the contractor can make the difference clear to the government. It is important to show in the VECP narrative that the change is not within the requirements of performance but still is a valuable change.

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