Value Engineering Brings Money-Saving Opportunities

Thirty years after its introduction in 1988, the Office of Management and Budget (OMB)’s Circular A-131 - Value Engineering (VE) continues to be a centerpiece of OMB’s guidance to Federal agencies in developing process improvements and cost savings to better meet 21st century expectations and demands. The updated Circular A-131 may be found here.

VE, which is also referred to as value analysis, value management, value planning, or value control, is a methodology for analyzing functions/processes to determine “best value,” or the best relationship between worth and cost. VE is a well-established commercial practice for cutting waste and inefficiency that can help Federal agencies reduce program and acquisition costs, improve the quality and timeliness of performance, and take greater advantage of current technological innovations.

Federal agencies are strongly encouraged to use VE as a management tool to verify realistic budgets, identify and remove nonessential capital and operating costs, and improve and maintain acceptable quality in program and acquisition functions. Additionally, Office of Inspector General (OIG) offices continually promote effective adoption and usage of VE programs to allow agencies to get the most bang for their buck. A recent news story demonstrates how OIG encouraged one agency to effectively utilize VE for achieving very substantial cost savings.

St. Michael’s brings extensive experience and successful past performance in helping our Military Departments, Defense agencies, and the Intelligence Community integrate and apply business, financial management, and technical support disciplines to achieve mission objectives, including adoption of VE guidance for process improvement. St. Michael’s helps government agencies become more successful through improved alignment between efficient business processes, sound financial management practices, and infusion of appropriate technologies.