[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR627.5]

[Page 144-145]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 627--VALUE ENGINEERING--Table of Contents
 
Sec. 627.5  General principles and procedures.

    (a) State VE programs. State highway agencies must establish 
programs to assure that VE studies are performed on all Federal-aid 
highway projects on the NHS with an estimated cost of $25 million or 
more. Program procedures should provide for the identification of 
candidate projects for VE studies early in the development of the 
State's multi-year Statewide Transportation Improvement Program.
    (1) Project selection. The program may, at the State's discretion, 
establish specific criteria and guidelines for selecting other highway 
projects for VE studies.

[[Page 145]]

    (2) Studies. Value engineering studies shall follow the widely 
recognized systematic problem-solving analysis process that is used 
throughout private industry and governmental agencies. Studies must be 
performed using multi-disciplined teams of individuals not personally 
involved in the design of the project. Study teams should consist of a 
team leader and individuals from different speciality areas, such as 
design, construction, environment, planning, maintenance, right-of-way, 
and other areas depending upon the type of project being reviewed. 
Individuals from the public and other agencies may also be included on 
the team when their inclusion is found to be in the public interest.
    (i) Each team leader should be trained and knowledgeable in VE 
techniques and be able to serve as the coordinator and facilitator of 
the team.
    (ii) Studies should be employed as early as possible in the project 
development or design process so that accepted VE recommendations can be 
implemented without delaying the progress of the project.
    (iii) Studies should conclude with a formal report outlining the 
study team's recommendations for improving the project and reducing its 
overall cost.
    (3) Recommendations. The program should include procedures to 
approve or reject recommendations and ensure the prompt review of VE 
recommendations by staff offices whose speciality areas are implicated 
in proposed changes and by offices responsible for implementing accepted 
recommendations. Reviews by these offices should be performed promptly 
to minimize delays to the project.
    (4) Incentives. The program may include a VE or cost reduction 
incentive clause in an SHA's standard specifications or project special 
provisions that allows construction contractors to submit change 
proposals and share the resulting cost savings with the SHA.
    (5) Monitoring. The program should include procedures for monitoring 
the implementation of VE study team recommendations and VE change 
proposal recommendations submitted by construction contractors.
    (b) State VE coordinators. Individuals knowledgeable in VE shall be 
assigned responsibilities to coordinate and monitor the SHA's program 
and be actively involved in all phases of the program.
    (c) Use of consultants. Consultants or firms with experience in VE 
may be retained by SHAs to conduct the studies of Federal-aid highway 
projects or elements of Federal-aid highway projects required under 
Sec. 627.1(a) of this part. Consultants or firms should not be retained 
to conduct studies of their own designs unless they maintain separate 
and distinct organizational separation of their VE and design sections.
    (d) Funding eligibility. The cost of performing VE studies is 
project related and is, therefore, eligible for reimbursement with 
Federal-aid highway funds at the appropriate pro-rata share for the 
project studied.