Sustainable Federal Facilities A Guide to Integrating Value Engineering, Life-Cycle Costing, and Sustainable Development (2001) / Chapter Skim
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Appendix F: Federal Acquisition Regulation Parts 48 and 52 Re: Value Engineering
Appendix F: Federal Acquisition Regulation Parts 48 and 52 Re: Value Engineering
Pages 117-136
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From page 117... ...
Acquisition savings include-(a) Tnstant contract savings, which are the net cost reductions on the contract under which the VECP is submitted and accepted, and which are equal to the instant unit cost 117
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From page 118... ...
Future contract savings, which are the product of the future unit cost reduction multiplied by the number of future contract units in the sharing base. On an instant contract, fixture contract savings include savings on increases in quantities after VECP acceptance that are due to contract modifications, exercise of options, additional orders, and funding of subsequent year requirements on a multiyear contract.
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From page 119... ...
In service contracts, the instant unit cost reduction is normally equal to the number of hours per line-item task saved by using the VECP on the instant contract, multiplied by the appropriate contract labor rate. "Negative instant contract savings" means the increase in the instant contract cost or price when the acceptance of a VECP results in an excess of the contractor's allowable development and implementation costs over the product of the instant unit cost reduction multiplied by the number of instant contract units affected.
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From page 120... ...
items or R&D test quantities that are due solely to results of previous testing under the instant contract; or (3) To the contract type only.
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From page 121... ...
(g) The contracting officer determines the sharing periods and sharing rates on a case-bycase basis using the guidelines in 48.104-l and 48.104-2, respectively.
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From page 122... ...
Upon receiving a VECP, the contracting officer or other designated official shall promptly process and objectively evaluate the VECP in accordance with agency procedures and shall document the contract file with the rationale for accepting or rejecting the VECP.
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From page 123... ...
This quantity is the number of units affected by the VECP that are scheduled to be delivered over a period of between 36 and 60 consecutive months (set at the discretion of the contracting officer for each VECP) that spans the highest planned production, based on planning and programming or production documentation at the time the VECP is accepted.
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From page 124... ...
In calculating acquisition savings under incentive contracts, the contracting officer shall add any negative instant contract savings to the target cost or to the target price and ceiling price and then offset these negative instant contract savings and any Government costs against concurrent and future contract savings.
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From page 125... ...
For future contract savings calculated under the optional lump-sum method, the sharing base is an estimate of the number of items that the contracting officer will purchase for delivery during the sharing period. In deciding whether or not to use the more convenient lump-sum method for an individual VECP, the contracting officer shall consider-(i)
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From page 126... ...
A no-cost settlement may be used if, in the contracting officer's judgment, reliance on other VECP approaches likely would not be more cost-effective, and the no-cost settlement would provide adequate consideration to the Government. Under this method of settlement, the contractor would keep all of the savings on the instant contract, and all savings on its concurrent contracts only.
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From page 127... ...
If the head of the contracting activity determines for a contract or class of contracts that the cost of computing and tracking collateral savings will exceed the benefits to be derived, the contracting officer shall use the clause with its-(~) Alternate Ill if a value engineering incentive is involved; (2)
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From page 128... ...
of the definition of "acquisition savings" by substituting "a number equal to the quantity to be delivered over a period of between 36 and 60 consecutive months (set at the discretion of the Contracting Officer for each VECP) that spans the highest planned production, based on planning and programming or production documentation at the time the VECP is accepted." for "the number of future contract units in the sharing base." (h)
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From page 129... ...
Instant contract rate *
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From page 130... ...
75/25 75/25 85/15 * The Contracting Officer may increase the Contractor's sharing rate to as high as 75 percent for each VECP.
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From page 131... ...
included in the contract schedule; (2) Submit, for approval by the Contracting Officer, a list of team members and their respective resumes representing the engineering disciplines required to complete the study effort, and evidence of the team leader's qualifications and engineering discipline.
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From page 132... ...
"Collateral costs," as used in this clause, means agency costs of operation, maintenance, logistic support, or Government-furnished property. "Collateral savings," as used in this clause, means those measurable net reductions resulting from a VECP in the agency's overall projected collateral costs, exclusive of acquisition savings, whether or not the acquisition cost changes.
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From page 133... ...
The term does not include the normal administrative costs of processing the VECP. "Instant contract savings," as used in this clause, means the estimated reduction in Contractor cost of performance resulting from acceptance of the VECP, minus allowable Contractor's development and implementation costs, including subcontractors' development and implementation costs (see paragraph (h)
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From page 134... ...
The Contractor may withdraw any VECP, in whole or in part, at any time before it is accepted by the Government. The Contracting Officer may require that the Contractor provide written notification before undertaking significant expenditures for VECP effort.
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From page 135... ...
If a VECP is accepted, the Contracting Officer will increase the instant contract amount by zo percent of any projected collateral savings determined to be realized in a typical year of use after subtracting any Government costs not previously offset. However, the Contractor's share of collateral savings will not exceed the contract's firm-fixed-price or estimated cost, at the time the VECP is accepted, or $100,000, whichever is greater.
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From page 136... ...
136 Sustainable Federal Facilities Alternate ~ (Apr 1984~. When the head ofthe contracting activity determines that the cost of calculating and tracking collateral savings will exceed the benefits to be derived in a construction contract, delete paragraph (g)
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