Value Engineering :: Bureau of Reclamation : U.S. Department of the Interior

Value Engineering Change Proposal Form

(Recommended submittal format for contractor required information)
Note: Items with a "*" indicate areas or heading zones that are to be filled in by the Government only

*Date Received by Government: *Government Representative: *VECP No: *Approved?

*YES *NO

Contract No: *Instant Contract Savings:
$
*Government Share:
$
* *

From (Prime Contractor): Submit Date:

To (Contracting Officer): Date by which change order must be issued to achieve savings:

Project Name: Contractor Representative:

Location of Work: Phone/FAX:

It is recommended that the contractor examine the Contracting Officer Evaluation Section to determine if their proposal fits the criteria for a Value Engineering Change Proposal (VECP). If the it does not meet these requirements, they may need to submit this proposal under a different clause of the contract.

Item No. INFORMATION REQUIRED OF THE CONTRACTOR
(When the answer to any of the following questions is "YES", include an explanation in remarks section YES NO

1 Does this proposed change affect the time of completion of the contract as stated in the general clauses?

2 Has the contractor previously submitted this proposed change to this office or any other Government Agency?

3 Does this change affect other costs to the Government, such as Government- furnished property or costs of contract related items?

4 Does this proposed change increase the maintenance or operation costs of original or proposed items?

5 Is a subcontractor involved in this proposed change to the original contract?

6 Does the contractor intend to restrict the Government's right to use any data described in this proposed change?

CHANGES AND/OR REVISIONS TO DRAWINGS AND SPECIFICATIONS
(Attach applicable contract drawings and specifications, including shop drawings or literature with all changes clearly marked.)

Remarks (add sheets as needed):

SUMMARY OF PROPOSED CHANGE (add sheets if necessary)

Description of original (before change) contract condition (include discussion of any foreseen problems):

Description of after change to contract requirement:

Describe advantages of making change:

Describe disadvantages of making change:

Describe any known or foreseen risks associated with making change:

CONTRACTOR'S COST SUMMARY ESTIMATE
Cost must be estimated in accordance with the change provisions contained within the general clauses of the contract. Attach detailed estimates (item, quantity, price, and totals) of the before and after condition for the change proposal and its development and implementation.

ID: Description Total Dollar Amount

A. Original:

B. Proposed:

C. Construction Savings (A-B):

D. Gross Savings (C + Overhead + Other):

E. Contractor development and implementation costs (if any):

F. Instant Contract Savings (D-E):

G. Government implementation costs (e.g., redesign, added inspections etc):

H. Contractor's share of savings (55% of [F - G]):

I. Contract Price Reduction (F - H):

J. Total Actual Government Savings (include reason if not the same as (I) above, e.g., affect of collateral savings and contractor share of same):

Thank you for submitting a VECP.
Please remember that it is important to make this change proposal summary and cost assessment as complete and accurate as possible. If the proposal is accepted, the Government will use this information in generating its estimates and evaluation of the benefit to the public.

*CONTRACTING OFFICER EVALUATION SECTION
(Government Use Only)

Item No. *REQUIRED CONTRACTING OFFICER EVALUATION
(The proposal will not qualify under the VE Incentive Clause if the answer to any of the following are "NO") YES NO

1 Does this proposed change originate voluntarily from an active contact by the contractor having the primary contract with the Government?

2 Does the proposal require a contract change by the Government Agency?

3 Does the proposed change result in an actual overall reduction in the contract price and/or estimated cost to the Government agency?

4 Does this proposed change involve a valid change in the contract. Invalid changes are, for example, changes in deliverable end item quantities only; research and development (R&D) end items, or R&D test quantities that are due solely to the result of previous testing of the involved contract; or to the contract type only.

5 Does this proposed change retain all of the essential functions or characteristics for which the original contract was awarded, without impairing, compromising, or eliminating any of the functions or characteristics?

6 Does the submitted contractor proposed change documents include enough information, pursuant to FAR 52-248-1(c), so that it can be evaluated, and are critical issues such as time requirements included?

Note: Pursuant to the Federal Acquisition Regulations (FAR's), valid VECP's must be responded to within 45-days of receipt, or the time frame specified (if less than 45 days). Interior policy is to attempt to respond within 21-days.

*GOVERNMENT ASSESSMENT OF CHANGE PROPOSAL
(Attach additional contract drawings and specifications, with notations clearly marked, as needed)

*Remarks (add sheets as needed):

*GOVERNMENT SUMMARY OF PROPOSED CHANGE (add sheets if necessary)

*Description of original (before change) contract condition (include discussion of any foreseen problems):

*Description of after change to contract requirement:

*Describe advantages of making change

*Describe disadvantages of making change:

*Describe any known or foreseen risks associated with making change:

*GOVERNMENT COST SUMMARY ESTIMATE
Cost must be estimated in accordance with the change provisions contained within the general clauses of the contract. Attach detailed estimates (item, quantity, price, and totals) of the before and after condition for the change proposal and its development and implementation.

ID: Description Total Dollar Amount

A. Original:

B. Proposed:

C. Construction Savings (A-B):

D. Gross Savings (C + Overhead + Other):

E. Contractor development and implementation costs (if any):

F. Instant Contract Savings (D-E):

G. Government implementation costs (e.g., redesign, added inspections etc):

H. Contractor's share of savings (55% of [F - G]):

I. Contract Price Reduction (F - H):

J. Total Actual Government Savings (include reason if not the same as (I) above, e.g., affect of collateral savings and contractor's share of same):

K. Unreimbursed Government implementation (45% OF G):

L. Added Government evaluations costs due to VECP review (e.g., legal review, estimating review, design reviews, etc.):

M. Actual Government savings realized (J - K - L):

Notes:
1. When a proposal has a reasonable chance for full or partial acceptance, it is recommended that Government personnel advise and assist the contractor as necessary to obtain an acceptable proposal that actually saves Government resources (funds, etc.).

2. The cost of evaluating a valid VECP is not an implementation cost. It is a cost of the administration of the contract and may not be included in G above. However, if it determined that the evaluation costs are excessive and negate the benefits of the proposal, those costs can be considered as an evaluation parameter for acceptance or denial of the VECP (under the disadvantages section in the evaluation).

3. The regional and local Value Program Coordinator shall be informed upon receipt of any valid VECP. This is so they may report to OMB, Interior and others as to the number, status, and savings related to the VECP's pursuant to their responsibilities under PL 104-106, OMB A-131, DM369-1, and other laws and directives.

4. Government personnel should review FAR clauses and guidance documents as needed to maintain their understanding of the intent of the VE Incentive Clause and practices regarding them.

5. Items F and J are two of the figures reported in the periodic Value Program Summary of Activities and Office of Management and Budget (OMB) reports.

An effective VECP program benefits everyone

*Additional Government Comments or Notations (if any):

Print, fill in, and transmit to the Contracting Officer (CO).

Revised November 4, 1998

*Date Received by Government:	*Government Representative:	*VECP No:	*Approved?
			*YES	*NO
Contract No:	*Instant Contract Savings: $	*Government Share: $	*	*

From (Prime Contractor):	Submit Date:
To (Contracting Officer):	Date by which change order must be issued to achieve savings:
Project Name:	Contractor Representative:
Location of Work:	Phone/FAX:
It is recommended that the contractor examine the Contracting Officer Evaluation Section to determine if their proposal fits the criteria for a Value Engineering Change Proposal (VECP). If the it does not meet these requirements, they may need to submit this proposal under a different clause of the contract.

Item No.	INFORMATION REQUIRED OF THE CONTRACTOR (When the answer to any of the following questions is "YES", include an explanation in remarks section	YES	NO
1	Does this proposed change affect the time of completion of the contract as stated in the general clauses?
2	Has the contractor previously submitted this proposed change to this office or any other Government Agency?
3	Does this change affect other costs to the Government, such as Government- furnished property or costs of contract related items?
4	Does this proposed change increase the maintenance or operation costs of original or proposed items?
5	Is a subcontractor involved in this proposed change to the original contract?
6	Does the contractor intend to restrict the Government's right to use any data described in this proposed change?

CONTRACTOR'S COST SUMMARY ESTIMATE Cost must be estimated in accordance with the change provisions contained within the general clauses of the contract. Attach detailed estimates (item, quantity, price, and totals) of the before and after condition for the change proposal and its development and implementation.
ID:	Description	Total Dollar Amount
A.	Original:
B.	Proposed:
C.	Construction Savings (A-B):
D.	Gross Savings (C + Overhead + Other):
E.	Contractor development and implementation costs (if any):
F.	Instant Contract Savings (D-E):
G.	Government implementation costs (e.g., redesign, added inspections etc):
H.	Contractor's share of savings (55% of [F - G]):
I.	Contract Price Reduction (F - H):
J.	Total Actual Government Savings (include reason if not the same as (I) above, e.g., affect of collateral savings and contractor share of same):
*Thank you for submitting a VECP.* Please remember that it is important to make this change proposal summary and cost assessment as complete and accurate as possible. If the proposal is accepted, the Government will use this information in generating its estimates and evaluation of the benefit to the public.

Item No.	REQUIRED CONTRACTING OFFICER EVALUATION (The proposal will not qualify* under the VE Incentive Clause if the answer to any of the following are "NO")	YES	NO
1	Does this proposed change originate voluntarily from an active contact by the contractor having the primary contract with the Government?
2	Does the proposal require a contract change by the Government Agency?
3	Does the proposed change result in an actual overall reduction in the contract price and/or estimated cost to the Government agency?
4	Does this proposed change involve a valid change in the contract. Invalid changes are, for example, changes in deliverable end item quantities only; research and development (R&D) end items, or R&D test quantities that are due solely to the result of previous testing of the involved contract; or to the contract type only.
5	Does this proposed change retain all of the essential functions or characteristics for which the original contract was awarded, *without impairing, compromising, or eliminating any of the functions or characteristics*?
6	Does the submitted contractor proposed change documents include enough information, pursuant to FAR 52-248-1(c), so that it can be evaluated, and are critical issues such as time requirements included?
Note:	Pursuant to the Federal Acquisition Regulations (FAR's), valid VECP's must be responded to within 45-days of receipt, or the time frame specified (if less than 45 days). Interior policy is to attempt to respond within 21-days.

F.	Instant Contract Savings (D-E):
*GOVERNMENT COST SUMMARY ESTIMATE Cost must be estimated in accordance with the change provisions contained within the general clauses of the contract. Attach detailed estimates (item, quantity, price, and totals) of the before and after condition for the change proposal and its development and implementation.
ID:	Description	Total Dollar Amount
A.	Original:
B.	Proposed:
C.	Construction Savings (A-B):
D.	Gross Savings (C + Overhead + Other):
E.	Contractor development and implementation costs (if any):
G.	Government implementation costs (e.g., redesign, added inspections etc):
H.	Contractor's share of savings (55% of [F - G]):
I.	Contract Price Reduction (F - H):
J.	Total Actual Government Savings (include reason if not the same as (I) above, e.g., affect of collateral savings and contractor's share of same):
K.	Unreimbursed Government implementation (45% OF G):
L.	Added Government evaluations costs due to VECP review (e.g., legal review, estimating review, design reviews, etc.):
M.	Actual Government savings realized (J - K - L):
Notes: 1. When a proposal has a reasonable chance for full or partial acceptance, it is recommended that Government personnel advise and assist the contractor as necessary to obtain an acceptable proposal that actually saves Government resources (funds, etc.). 2. The cost of evaluating a valid VECP is not an implementation cost. It is a cost of the administration of the contract and may not be included in G above. However, if it determined that the evaluation costs are excessive and negate the benefits of the proposal, those costs can be considered as an evaluation parameter for acceptance or denial of the VECP (under the disadvantages section in the evaluation). 3. The regional and local Value Program Coordinator shall be informed upon receipt of any valid VECP. This is so they may report to OMB, Interior and others as to the number, status, and savings related to the VECP's pursuant to their responsibilities under PL 104-106, OMB A-131, DM369-1, and other laws and directives. 4. Government personnel should review FAR clauses and guidance documents as needed to maintain their understanding of the intent of the VE Incentive Clause and practices regarding them. 5. Items F and J are two of the figures reported in the periodic Value Program Summary of Activities and Office of Management and Budget (OMB) reports. *An effective VECP program benefits everyone*