2.1.5 Value Engineering

A Value Engineering (VE) analysis is a systematic process to evaluate a project concept and design by a multidisciplinary team of individuals not directly involved in the project. The study provides recommendations which could potentially reduce the time to complete the project, improve the value and quality of the project, and provide a project which functions safely and efficiently and may result in a cost savings to the Department.
A VE analysis should be conducted prior to the approval of the final geometric schematic (considered as the end of the project’s preliminary design)
. Changes resulting from the VE analysis could result in additional environmental work if incorporated recommendations are not included in the NEPA review and approval phase. Coordinate the changes that may result from the VE analysis with the project team including environmental, ROW and utility staff.
The following project types require a VE analysis:
  • Projects on the National Highway System (NHS) that utilize Federal-Aid Highway Program (FAHP) funding with an estimated total project cost of $50 million or more. Total cost threshold considers all project related costs, not just construction cost;
  • All bridge projects on the NHS utilizing FAHP funding with an estimated total project cost of $40 million or more;
  • Any major project located on or off of the NHS that utilizes FAHP funding in any contract or phase comprising the major project; or
  • Any project FHWA considers appropriate and uses FAHP funding.
Projects within $10 million of the Federal threshold amounts should be considered for VE analysis.
The Value Engineering Regulation defines the "project" limits by the logical termini in the environmental document and may consist of several contracts, or phases of a project or contract, which may be implemented over several years. If any have federal-aid funds all shall undergo a VE analysis before any can let.
A VE analysis is not required on design/build projects. If the Project Manager chooses to conduct an analysis, this must be performed before the Request for Proposal (RFP) release.
No exceptions to the federal VE requirement will be granted by FHWA.
Refer to the
PDP Manual
and
23 CFR 627.9(a)
for additional discussion on VE analysis.