Greater Use of Value Engineering Has the Potential To Save the Department of Transportation Millions in Construction Costs
RCED-85-14
Published: Nov 02, 1984. Publicly Released: Nov 02, 1984.
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Highlights
GAO discussed the potential of value engineering (VE) to reduce costs and the extent that it is currently used in Department of Transportation (DOT) administrations with major construction programs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Transportation | The Secretary of Transportation should establish and implement a policy to require the Federal Highway Administration (FHwA), the Federal Aviation Administration (FAA), the Federal Railroad Administration (FRA), and the Urban Mass Transportation Administration (UMTA) to supplement their normal cost-reduction procedures for construction programs with a VE program. The policy should be flexible enough to recognize and address the operating differences among the administrations. In establishing the policy, the Secretary should require that criteria, such as a certain dollar threshold, for selecting projects to be valued engineered be established by the FAA, FHwA, and UMTA administrators. |
Closed – Implemented
In October 1985, DOT established a VE review committee from engineering and policy staffs of DOT headquarters, FAA, FHwA, UMTA, and the Coast Guard. It developed a DOT Order on use of VE by DOT agencies and grantees, which was issued on April 13, 1987.
|
| Department of Transportation | The Secretary of Transportation should establish and implement a policy to require FHwA, FAA, FRA, and UMTA to supplement their normal cost-reduction procedures for construction programs with a VE program. The policy should be flexible enough to recognize and address the operating differences among the administrations. In establishing the policy, the Secretary should require that VE be performed during the early stage of project design. |
Closed – Implemented
In October 1985, DOT established a VE review committee from engineering and policy staffs of DOT headquarters, FAA, FHwA, UMTA, and the Coast Guard. It developed a DOT Order on use of VE in DOT, which was issued on April 13, 1987.
|
| Department of Transportation | The Secretary of Transportation should establish and implement a policy to require FHwA, FAA, FRA, and UMTA to supplement their normal cost-reduction procedures for construction programs with a VE program. The policy should be flexible enough to recognize and address the operating differences among the administrations. In establishing a policy, the Secretary should require that VE be performed in accordance with generally accepted VE principles, including the use of a multidisciplined team and a VE job plan. |
Closed – Implemented
In October 1985, DOT established a VE review committee from engineering and policy staffs of DOT headquarters, FAA, FHwA, UMTA, and the Coast Guard. It developed a DOT Order on use of VE in DOT, which was issued on April 13, 1987.
|
| Department of Transportation | The Secretary of Transportation should establish and implement a policy to require FHwA, FAA, FRA, and UMTA to supplement their normal cost-reduction procedures for construction programs with a VE program. The policy should be flexible enough to recognize and address the operating differences among the administrations. In establishing a policy, the Secretary should require that VE be performed either by qualified administration officials or by private firms. |
Closed – Implemented
In October 1985, DOT established a VE review committee from engineering and policy staffs of DOT headquarters, FAA, FHwA, UMTA, and the Coast Guard. It developed a DOT Order on use of VE in DOT, which was issued on April 13, 1987.
|
| Department of Transportation | The Secretary of Transportation should establish and implement a policy to require FHwA, FAA, FRA, and UMTA to supplement their normal cost-reduction procedures for construction programs with a VE program. The policy should be flexible enough to recognize and address the operating differences among the administrations. In establishing a policy, the Secretary should require that follow-up procedures be established to ensure that approved VE recommendations are implemented. |
Closed – Implemented
In October 1985, DOT established a VE review committee from engineering and policy staffs of DOT headquarters, FAA, FHwA, UMTA, and the Coast Guard. It developed a DOT Order on use of VE in DOT, which was issued on April 13, 1987.
|
| Department of Transportation | The Secretary of Transportation should establish and implement a policy to require FHwA, FAA, FRA, and UMTA to supplement their normal cost-reduction procedures for construction programs with a VE program. The policy should be flexible enough to recognize and address the operating differences among the administrations. In establishing a policy, the Secretary should require that a full-time VE program staff be appointed at the department level. |
Closed – Implemented
In October 1985, DOT established a VE review committee from engineering and policy staffs of DOT headquarters, FAA, FHwA, UMTA, and the Coast Guard. It developed a DOT Order on the use of VE in DOT, which was issued on April 13, 1987.
|
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Construction costsCost analysisCost controlCost effectiveness analysisFederal aid for transportationProgram managementTransportation contractsValue engineeringEngineersEngineering