Value Engineering Should Be Improved as Part of the Defense Department's Approach to Reducing Acquisition Cost
AFMD-83-78
Published: Sep 27, 1983. Publicly Released: Sep 27, 1983.
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Highlights
In response to a congressional request, GAO provided an update to a prior report to determine how the Department of Defense (DOD) has improved the contractor component of its value engineering program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should take management action on the contractor component of the value engineering program by increasing high level visibility and support for the program at the DOD level and within the military services by: (1) integrating value engineering information into appropriate management information systems; and (2) ensuring that value engineering achievements by DOD personnel are appropriately recognized. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should take management action on the contractor component of the value engineering program by encouraging greater defense contractor and subcontractor participation by ensuring their awareness of, and confidence in, the DOD value engineering program through increased use of correspondence, conferences, and training opportunities. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should take management action on the contractor component of the value engineering program by requiring the Secretary of the Navy to develop an action plan to improve the contractor component of the Navy value engineering program. The plan should, at a minimum, address the need for value engineering change proposal savings goals, improved program guidance, more value engineering training, additional full-time value engineering personnel, and other specific actions to improve the receptivity of Navy personnel to value engineering change proposals submitted by defense contractors. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should have the existing reporting system revised to require that savings be reported at the time actual contract price reductions are made, rather than on the basis of estimates made when value engineering change proposals are approved. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Contract modificationsContract oversightDefense cost controlDefense procurementDepartment of Defense contractorsProcurement practicesValue engineeringWeapons systemsMilitary forcesProcurement