The designated official(s) will establish and maintain VE programs, procedures and processes that provide a systematic effort directed at analyzing the functional requirements, where appropriate and using a graded approach, of DOE and NNSA systems, equipment, facilities, procedures, and supplies for the purpose of achieving the essential functions at the lowest total cost, consistent with the needed performance, safety, security, reliability, quality assurance, and maintainability requirements. The designated official(s) will also provide a sound basis for identifying and reporting VE accomplishments in accordance with OMB Circular A-131.
To support these efforts, the Director, Office of Engineering and Construction Management (OECM), within the Office of Management, Budget and Evaluation/Chief Financial Officer (OMBE/CFO), will coordinate and compile the annual DOE VE progress report that is required by OMB Circular A-131. The DOE program offices have line responsibility and DOE functional offices such as management, budget, chief information officer, legal, safety, security, and contracting have staff responsibility for effective implementation and documentation of this policy.
Replaced/Superseded by document(s)
To establish Department of Energy (DOE) value engineering policy that meets the requirements of Public Law 104-106, Section 4306 as codified by 41 United States Code 432. This law states that each agency shall establish and maintain cost-effective value engineering (VE) procedures and processes. Additionally, Office of Management and Budget (OMB) Circular A-131, Value Engineering, requires that all Federal agencies use VE as a management tool, where appropriate and using a graded approach, to ensure realistic budgets, identify and remove nonessential capital and operating costs, and improve and maintain optimum quality of program and acquisition functions.