83 FR 9549 - Value Engineering (VE)

OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy

Federal Register Volume 83, Issue 44 (March 6, 2018)

In accordance with OMB Memorandum M-17-26 ``Reducing Burden for Federal Agencies by Rescinding and Modifying OMB Memoranda,'' the Office of Federal Procurement Policy (OFPP) within the Office of Management and Budget (OMB) is proposing to amend OMB Circular A-131, Value Engineering, to reduce the reporting burden on Federal agencies. Value Engineering is an effective technique for cutting waste and inefficiency--helping Federal agencies reduce acquisition costs, improve performance, enhance quality, and foster innovation. The proposal would eliminate the requirement for agencies to report annually to OMB and instead encourage agencies to share best practices, case studies and other information on the Acquisition Gateway (https:// hallways.cap.gsa.gov/login-information) that can facilitate better understanding and use of this management tool within the Executive Branch.

[Federal Register Volume 83, Number 44 (Tuesday, March 6, 2018)]
[Notices]
[Pages 9549-9550]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04445]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy


Value Engineering (VE)

AGENCY: Office of Federal Procurement Policy (OFPP), Office of 
Management and Budget (OMB).

ACTION: Proposed revision to Office of Management and Budget Circular 
No. A-131, ``Value Engineering''.

-----------------------------------------------------------------------

SUMMARY: In accordance with OMB Memorandum M-17-26 ``Reducing Burden 
for Federal Agencies by Rescinding and Modifying OMB Memoranda,'' the 
Office of Federal Procurement Policy (OFPP) within the Office of 
Management and Budget (OMB) is proposing to amend OMB Circular A-131, 
Value Engineering, to reduce the reporting burden on Federal agencies. 
Value Engineering is an effective technique for cutting waste and 
inefficiency--helping Federal agencies reduce acquisition costs, 
improve performance, enhance quality, and foster innovation. The 
proposal would eliminate the requirement for agencies to report 
annually to OMB and instead encourage agencies to share best practices, 
case studies and other information on the Acquisition Gateway (https://hallways.cap.gsa.gov/login-information) that can facilitate better 
understanding and use of this management tool within the Executive 
Branch.

DATES: Interested parties should submit comments within 30 days of this 
notice.

ADDRESSES: Comments may be submitted through http://www.regulations.gov.

[[Page 9550]]


FOR FURTHER INFORMATION CONTACT: James Wade, OFPP, [email protected].

Background

    Value Engineering (VE) is a management technique that is used to 
analyze activities and identify alternative processes for completing 
the activities at a lower cost. Industry first developed VE during 
World War II as a means of continuing production despite shortages of 
critical materials. The Federal Government subsequently adopted VE as a 
mechanism to improve efficiency. Policies adding the use of VE are set 
forth in OMB Circular A-131 at https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A131/a131-122013.pdf.
    Use of VE supports the Administration's efforts to emphasize 
critical thinking and analysis instead of compliance activity and 
documentation. Although several Federal agencies have reported life-
cycle savings in a broad range of acquisition programs, including 
defense, transportation, and construction projects, overall usage of VE 
by federal agencies has been limited. OFPP believes agency workforce 
awareness and consideration of VE can be improved by redirecting agency 
resources away from compliance reporting and towards information 
sharing with other agencies on use of the tool through the Acquisition 
Gateway (https://hallways.cap.gsa.gov/login-information). The Gateway 
provides federal buyers with a forum for improving government 
acquisition. The Acquisition Innovation Hub within the Gateway 
facilitates information sharing with tools and resources for 
acquisition professionals and other stakeholders. These actions are 
called for by OMB Memorandum M-17-26, ``Reducing Burden for Federal 
Agencies by Rescinding and Modifying OMB Memoranda.'' Memorandum M-17-
26 was designed to eliminate inefficiencies created by past OMB 
direction and improve the efficiency of government operations.
    Accordingly, OFPP proposes the following changes to Circular A-131, 
as revised in December 2013:

    1. Replace section 8, entitled ``Reports to OMB'' with the 
following new section 8: Information Sharing. Agencies are 
encouraged to share best practices, case studies and other 
information about their experience using VE on the Acquisition 
Gateway (https://hallways.cap.gsa.gov/login-information). The 
Gateway connects federal buyers with resources and tools to improve 
acquisition throughout the government. The Acquisition Innovation 
Hub within the Gateway facilitates information sharing between 
acquisition professionals and other stakeholders. Sharing 
information on the Hub can help build greater awareness of VE and 
accelerate the pace of innovation and other benefits that can come 
from the use of this management tool.
    2. Make the following conforming changes:
    a. Delete paragraph f. from section 7, which refers to 
reporting.
    b. Delete the Attachment to the Circular, which provides a 
format for reporting to OMB.

    For a copy of OMB Circular A-131, go to https://www.whitehouse.gov/sites/whitehouse.gov/ files/omb/circulars/A131/a131-122013.pdf.
    Although public comment is not required in the development of these 
changes, OMB welcomes input on the proposed amendments to the Circular 
described above and will consider feedback prior to finalizing changes 
to the Circular.

Lesley A. Field,
Deputy Administrator for Federal Procurement Policy.
[FR Doc. 2018-04445 Filed 3-5-18; 8:45 am]
 BILLING CODE 3110-01-P