[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR627.5]

[Page 137-138]
 
                           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 transportation departments 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

[[Page 138]]

selecting other highway projects for VE studies.
    (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 STD's standard specifications or project special 
provisions that allows construction contractors to submit change 
proposals and share the resulting cost savings with the STD.
    (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 STD'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 STDs 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.
    (e) In the case of a Federal-aid design-build project meeting the 
project criteria in 23 CFR 627.1(a), the STDs shall fulfill the value 
engineering analysis requirement by performing a value engineering 
analysis prior to the release of the Request for Proposals document.

[62 FR 6868, Feb. 14, 1997, as amended at 67 FR 75924, Dec. 10, 2002]