DISTRIBUTION: INITIATED BY:
All Departmental Elements Office of Management, Budget and
Evaluation/CFO
U.S. Department of Energy POLICY
Washington, DC
Approved: 1-7-04
Subject: VALUE ENGINEERING
PURPOSE
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.
SCOPE
This policy applies to all DOE Elements, including the National Nuclear Security Administration
(NNSA).
POLICY
It is the policy of the DOE that a VE program, that meets the intent and criteria set forth in
Public Law 104-106 (Value Engineering) and OMB Circular A-131, dated May 21, 1993, be
established and implemented for all Departmental Elements. It is the policy of the Department to
adhere to the acquisition requirements of the Federal Acquisition Requirements (FAR), including
the use of VE clauses as set forth in Parts 48 and 52, as modified in any DOE Acquisition
Regulation requirements or other Departmental specific guidance.
DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets, and
DOE Order 430.1B, Real Property Asset Management, provide specific requirements to
implement this policy.
IMPLEMENTATION
To implement this policy, the Deputy Secretary, the Under Secretary for Energy, Science and
Environment and the Administrator, NNSA will:
DOE P 413.2
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