Ken Leuderalbert, P.E., PMP
FHWA VE Program Manager
SAVE International® 2012 Annual Conference
Government Value Management Conference
June 14, 2012
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Overview of FHWA/State
DOT Program
VE Program Performance
Overview of FHWA VE
Regulations
Future VE Initiatives/Goals
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1784 studies resulting in nearly $10 billion in project cost
savings or avoidance over the last five years.
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On average the VE program has produced the
following benefits:
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VE teams recommend ~ 10% project savings
State DOTs implement ~50% of all VE
recommendations
VE recommendations save ~5% of projects
construction costs
For every dollar spent on VE analyses, agencies
realize a $165:1 return on investment
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VE Program 2016 Goals:
http://www.fhwa.dot.gov/ve/measures.cfm
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Maximize VE effect of project cost and performance
55% of VE Recommendations Implemented
 8% of Project Construction Costs Saved
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Enhance Quality of State VE Program
All States have established VE Program and Policy
 50% of all VE studies conducted prior to 30% plans
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Improve FHWA’s Stewardship of VE Program
Division engaged in VE Studies
 Divisions verifying required VE Studies are Conducted
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Previous update to VE regulation was 1997
Jun 23, 2011 – NPRM Published
Aug 22, 2011 – end of public comment period
Mar 15, 2012 Final Rule Published in Federal Register
http://www.gpo.gov/fdsys/pkg/FR-2012-03-15/pdf/2012-6244.pdf
April 16, 2012 Implementation Date of Final Rule
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There are now five section to VE Regulation:
627.1 Purpose and Applicability
627.3 Definitions
627.5 Applicable Projects
627.7 Programs
627.9 Conducting a VE Analysis
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Section 627.1 Purpose and Applicability
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Prescribes programs, policies and procedures to
ingrate VE into project planning and development
Establish and sustain policies and procedures to
monitor, assess and report on VE program and
analyses conducted
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Section 627.3 Definitions
Added definitions for:
 Bridge Project
 Project
 Total Project Costs
 VE Analysis
 VE Job Plan
 VECP
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VE Job Plan
Structure for conducting and documenting
results of VE analysis
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Information Phase
Function Analysis Phase
Creative Phase
Evaluation Phase
Development Phase
Presentation Phase
Resolution Phase
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Section 627.5 Applicable Projects
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All FAHP NHS Projects >$25M
All FAHP Bridge Projects >$20M
All Major Projects on or off the NHS
Projects with delayed construction that undergo a
scope or design change resulting in meeting threshold
Any FAHP projects FHWA determines appropriate
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Section 627.7 VE Programs
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State DOTs must establish and sustain a VE program
Document Policies and Procedures
Identify, Schedule and Conduct VE Analysis
Ensure VE analysis follows VE Job Plan
Resolve and implement approved recommendations
Monitor and Assess VE Program
Submit annual report to FHWA
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Section 627.9 Conducting a VE Analysis
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Independent, multi-disciplined team
Team leader with VE expertise
Use of consultants
Timing of VE analysis
Consider all project objectives/commitments
Follow the VE Job Plan
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Simple, do everything we just talked about.
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Identify a VE Coordinator
Develop a VE Policy/Procedure
Develop an Annual List of Projects
Identify VE analysis resources for each study
Follow VE Job Plan
Resolve Recommendations
Report on Program Performance
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Review and Approve VE Policies and Procedures
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Review of Annual List of VE Projects
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Ensure VE analysis is conducted on all required projects
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Monitor and participate in VE analyses
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Monitor Recommendation Resolution Process
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Annually Report on VE Program Results
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Release 2011 VE Performance Report - Spring
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Update the VE Order (Policy) – Summer/Fall
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Initiate Development of VE Stewardship &
Oversight Tool Box for FHWA Divisions –
Summer
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Enhance consistency of FHWA efforts
Provide guidance and resources to assist divisions with
carrying out specific VE tasks or functions
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Share Successful VE Practices:
http://www.fhwa.dot.gov/ve/
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VE Training: http://www.nhi.fhwa.dot.gov/
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Recording of VE Webinar Outreach:
http://www.fhwa.dot.gov/ve/
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VE regulations and policies:
http://www.fhwa.dot.gov/ve/vepolicy.cfm
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AASHTO VE Technical
Committee:
http://design.transportation.org/Pages/Value
Engineering.aspx
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AASHTO VE Guide:
https://bookstore.transportation.org/collection
_detail.aspx?ID=43
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Questions on VE regulations and policies:
Ken Leuderalbert
VE Program Manager
317-226-5351
ken.leuderalbert@dot.gov
VE Website: http://www.fhwa.dot.gov/ve/
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