MIL-V-24474 (SHIPS)
27 October 1972
MILITARY SPECIFICATION
VALUE ENGINEERING PROGRAM REQUIREMENTS
(NAVAL S/-W SYSTEMS COMMAND)
1. SCOPE
1.1 This specification establishes the minimum requirements for a contraaor’s value
engineering (VE) program when a VE program requirement is included in the contract (see 6.1,6.3.1,
and 6.3.2).
2. APPLICABLE DOCUMENTS
2.1 This section is not applicable to this specification
3 REQUIREMENTS
3.1 General requirements
31.1 Cost information Unless otherwise specified (see 6.2), cost reductions developed in the
VE program ~ be evaluated on the basis of overall (see 6.3.5), or life cycie costs to the Government.
Cost anaiysis shouid be based on such methods as function and cost (F/C) analysis (see 6.3.6), work
package breakdown and cost modeis setting forth the major cost elements and thei r contributions to
total costs. Target costs and specific areas of value improvement shail be identified and quantified.
3.2 Puraose and objectives.
3.2 1 Pur~ose Except as otherwise specified (see 6.2), the purpose of the VE program is to
apply effectively the principles and techniques of VE starting as early as practicable in an item’s
development in order to achieve the objectives specified in 3.2.2. Another purpose is to reap the
collateral benefits in areas such as product slmpiification, improved reliability, logistic support
maintainability and performance, which also resuit from VE
3.2.2 Objectives. Except as othetvvise specified (see 6.2), the objectives of the
VE program
inciude the foiiowing:
(a) To provide assurance to the procuring activity that the item(s) being
deveioped/designed/constructed together with their associated needs (e.g.,
facilities, software, training) can be acquired, instalied, utilized/operated and
supported for the most economical iife cycie costs.
(b) TO achieve, at least, those specific cost reductions and other achievements, as
specified (see 6.2) and as agreed upon in the approved program plan.
(c) TO provide the procuring activity with an anaiysis of the costs in a project and what is
being done to achieve oniy those functions needed for economical iife cycie costs.
(d) TO Identify to the procuring activity, together with the rationaie therefor, any area$
where it IS considered that additional effort (either within or beyond the scope of
the instant contract) shouid be expended to further improve the vaiue (see 6,3.8) of
end items.
FSC MISC
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