[Federal Register Volume 83, Number 44 (Tuesday, March 6, 2018)]
[Notices]
[Pages 9549-9550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04445]
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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''.
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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