DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

C&T Value 

Management Program

VECP Breakout

Kelly Floyd, MBA

November 22, 2017
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

2

Value Engineering Change Proposal:

• VE/VM Purpose & Examination of 

Function

• VECP Defined

• VECP Preparation, Eight Points & 

Submission

• Rules & Tools

• Contractor Guidance & References

• Contact Information

Overview
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

C&T Value Management Program

Value Engineering 

Proposals

Value Engineering 

Change Proposal

Other Savings Indirect Savings

Value 

Management

• Program includes:

– Value engineering

• Internal Proposal

– VEP

• External Proposal

– VECP

– Indirect Savings

• Reverse Auction*last year

• 3PL(3rd party logistic providers)

– Other Savings

– Should Cost

– Reverse Engineering
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

4

• Umbrella term for Value Engineering functions 

• Term often used interchangeably with Value 

Engineering

• Stakeholder value judgements vary, and VM 

reconciles differing priorities to deliver best value 

for all stakeholders

• Defined in DLA Instruction 4245.01 Value 

Management

What is VM?

Value Management
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

5

An organized technique and effort to purchase:

• An essential function

• At the lower cost

• At the desired time and place

• Without degradation of 

– Performance

– Quality

– Reliability

– Maintainability

What is VE? 

Value Engineering
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

6

Value Engineering

Ratio of Function to Cost

Customer needs to stir paint...

Which solution is most appropriate? Benefit?
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VE & Contractors?

• Contractors can apply 

Value Engineering 

techniques to their 

products through the 

submission of a Value 

Engineering Change 

Proposal (VECP)

• Successful VECPs can 

result in royalty payments
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

8

A contractor-initiated proposal where the savings 

are shared between the Government and the 

contractor. A VECP is submitted under the value 

engineering (VE) clause of a contract pursuant to 

Federal Acquisition Regulation (FAR) Part 48. It 

proposes a net life-cycle cost reduction to the DoD 

and requires a contract modification.

What is a VECP?

Value Engineering Change Proposal 
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP

• VECP Clause in DLA 

contracts > SAT (150K) 

– Clause can be added by 

Mod

• Contractual method to 

share savings

– Savings shared between 

Contractor and DoD

– Typical Share: 50/50

– Sharing for 3-5 years

• Improve DoD supplies 

and/or equipment

– Improvements include any 

price savings 

• Process

• Materials

• Manufacturing Techniques
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Clause

Preparation

As a minimum, the Contractor shall include in each VECP 

the information described in paragraphs (c)(1) through (8) 

of this clause. If the proposed change is affected by 

contractually required configuration management or similar 

procedures, the instructions in those procedures relating to 

format, identification, and priority assignment shall govern 

VECP preparation. The VECP shall include the following: 

8 Points
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Clause Point One

• A description of the difference between the existing 

contract requirement and the proposed requirement

• The comparative advantages and disadvantages of each

• A justification when an item’s function or characteristics 

are being altered

• The effect of the change on the end item’s performance

• Any pertinent objective test data
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Point One

• Do:

– Include pictures

– Be descriptive

• Don’t:

– Assume anything is 

common knowledge
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Point Two 

• A list and analysis of the 

contract requirements that 

must be changed if the 

VECP is accepted

– Include any suggested 

specification revisions

• Do:

– Cite specific language in 

Spec

– Cite specific language in 

contract

• Don’t:

– Use generalizations

– Forget reference docs
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Point Three

• Identification of the unit to 

which the VECP applies

• Do:

– Include PGC(s) 

– Include NSN(s) 

– Include Part Number(s)

• Don’t:

– Include items not on your 

contract
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Point Four

• A separate, detailed cost 

estimate for: 

– The affected portions of the 

existing contract requirement 

and the VECP

– The cost reduction 

associated with the VECP 

shall take into account the 

Contractor’s allowable 

development and 

implementation costs, 

including any amount 

attributable to subcontracts 

under the Subcontracts 

paragraph of this clause

A separate, detailed cost estimate

Current 

Process Cost

Recommended 

Process Cost

Cost Savings
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Point Five & Six

VECP Point Five

• A description and estimate 

of costs the Government 

may incur in implementing 

the VECP

– such as test and 

evaluation and operating 

and support costs

VECP Point Six

• A prediction of any effects 

the proposed change 

would have on collateral 

costs to the agency.
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

VECP Point Seven & Eight

VECP Point Seven

• A statement of the time by 

which a contract 

modification accepting the 

VECP must be issued in 

order to achieve the 

maximum cost reduction, 

noting any effect on the 

contract completion time 

or delivery schedule

VECP Point Eight

• Identification of any 

previous submissions of 

the VECP

• If there are previous 

submissions include: 

– The dates submitted

– The agencies and 

contract numbers involved 

– Previous Government 

actions, if known
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

DSCP Form 1772

• http://www.dla.mil/TroopSu

pport/Subsistence/valuem

gmt.aspx

• Point one

• Point two

• Point three

• Point four

• Point five

• Point six

• Point seven

• Point eight

Click 

to 

open
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Submission

• The Contractor shall 

submit VECP’s to the 

Contracting Officer

– unless this contract states 

otherwise

• If the contract is 

administered by other than 

the contracting office

– The Contractor shall 

submit a copy of the 

VECP simultaneously to 

the Contracting Officer 

and to the Administrative 

Contracting Officer
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

References

• Instructions:

– DoDI 4245.14 Value 

Engineering

– DLAI 4245.01 Value 

Management

– DLAD 48.101

• FAR (Federal Acquisition 

Regulation):

– 48.201 Clauses for supply 

or service contracts

• Contract Clause

– 52.248-1 Value 

engineering

• Prescribed by 48.201 on 

all contracts over SAT 

(Simplified Acquisition 

Threshold, 150k)
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

21

Click to 

open
Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Points of Contact

DLA Troop Support C&T Value Management 

Office

Kelly Floyd: (215) 737-7946

Kelly.Floyd@dla.mil

Kathy Rivell: (215) 737-7698

Kathy.Rivell@dla.mil
Project Manager

Soldier Protection and Individual Equipment

Project Manager 

Soldier Protection and Individual Equipment

Our Strength and Purpose Our Strength and Purpose Product Manager 

Soldier Clothing and Individual Equipment 

(PdM SCIE)

Innovation

Value Engineer Change Proposal (VECP)

JAPBI Brief

Susan McLendon

Quality Team Lead

15 - 16 November 2017
PdM SCIE 

Major Lines of Effort

1

End State:

Deployers ALWAYS 

supported

Increased operational 

effectiveness 

in all environments

Sustainable capabilities

Greater capability at 

reduced cost

FUTURE FLAME RESISTANT CLOTHING 

AND EQUIPMENT

NEXT GENERATION LOAD CARRIAGE

MULTI-MISSION ENVIRONMENTAL 

CLOTHING

PARACHUTE IMPROVEMENT PROCESS

FOOTWEAR STANDARDIZATION 

UNIFORMS AND OCIE FOR EVERY 

OPERATING ENVIRONMENT

RESPONSIBLY MANAGE LEGACY OCIE
Value Engineer Change Proposal (VECP)

2

• General Guidelines

 Know the requirements for the End Item

 Performance gaps in the item requirement between the 

Thresholds (T) and Objectives (O) are the items that 

can change through a VECP and an approved Material 

Change Proposal (MCP)

 PM-SPIE MCPs authorize improvements for end-items 

supported by a program of record.

 Approval from the Army Uniform Board authorizes a 

change for Clothing Bag Items
CSA

AUB

PEO Soldier

Clothing Bag, 

Dress Clothing 

and Optional

Clothing

Army Uniform Board (AUB)

TRADOC establishes clothing 

requirements. Those 

requiring a materiel solution 

are provided to PEO-Soldier.

- Product improvements are 

identified to PEO Soldier 

from NSRDEC, TRADOC 

schools, Soldier feedback, 

etc.

Approval Processes

PEO Soldier presents 

improvements to the AUB for 

concept approval 

Results of the AUB are 

provided to the CSA at the 

conclusion of the AUB.

The Army Uniform Board (AUB) is the primary review 

forum for clothing bag, mess, dress, service, and optional 

purchase uniform items. The AUB resolves issues, provides 

and obtains guidance, ensures that items fit the 5th to 

the 95 percentile, and makes recommendations to the 

CSA. The CSA approves the initiation of concept 

development and adoption of these items.

The AUB will—

(a) Conduct milestone reviews on new or improved items 

and make recommendations to the CSA (Milestone 

Decision Authority) for decision.

(b) Review policies pertaining to the wear of new or 

improved clothing items. 

- AR 70-1 (Army Acquisition Policy)

Organizational Clothing

And Individual Equipment

(OCIE)

PEO Soldier

ASA(ALT)

Clothing and Individual 

Equipment Approval Process

TRADOC Requirement

• FR ACU

• Environmental

Clothing

• MOLLE

• Body Armor

TRADOC Requirement

• Service Uniforms & 

Accessories

• ACUs & Accessories

3
Potential Areas for VECP

4

• Flame Resistant Army Combat Uniform (FR ACU)

 Fabric that improves burn injury prediction

 Fabric that increases durability (strength and color fastness)

• Fire Resistant Environmental Ensemble (FREE) 

 Lower Cost fabrics

 Knits that meet requirements with improved shade consistency

• Army Physical Fitness Uniform (APFU) 

 Trunk lining material – improved color fastness/lower cost

• Load Carriage 

 Reduce weight and cost

• Fuel Handler’s Coverall

 Improved Comfort/Breathability

• Fastening system for rank/patch that does not pill/wear out
PdM SCIE Points of Contact

5

LTC Jonathan Allen

Product Manager Soldier Clothing 

and Individual Equipment

Comm (703) 805-8514 

DSN 655-8514

Jonathan.e.allen10.mil@mail.mil

Mr. Jeff Myhre

Deputy Product Manager

Comm (703) 805-8506 

DSN 655-8506

david.a.geringer.civ@mail.mil

Product Officers / Assistant Product Managers (APM)

Mrs. Sequana Robinson, Product Officer

Durable Goods

Comm (703) 805-8525, DSN 655-8525

sequana.a.robinson.civ@mail.mil

CPT Brian McNally

APM – Parachutes

Comm (703) 805-8528, DSN 655-8528

brian.c.mcnally.mil@mail.mil

Mr. Scott Hulett, Product Officer

Combat Uniforms

Comm (703) 805-8551, DSN 655-8551

scott.a.hulett.civ@mail.mil

MAJ John Rider

Acq Plans, Policy & Integration

Comm (703) 805-8517 

DSN 655-8517

John.c.rider.mil@mail.mil

Mr. Danny Carter

Operations and Plans

Comm (703) 805-8532 

DSN 655-8532

danny.m.carter.civ@mail.mil

Command Group Principal Staff

Ms Susan McLendon

Quality Assurance

Comm (703) 805-8502 

DSN 655-8502

susan.k.mclendon.civ@mail.mil

CPT Daniel Ferenczy

APM – Environmental Clothing

Comm (703) 805-8537, DSN 655-8537

Daniel.p.ferenczy.mil@mail.mil

CPT Mark May

APM – Load Carriage

Comm (703) 805-8544, DSN 655-8544

Mark.r.may4.mil@mail.mil

CPT Kristopher Hartwell

APM – Durable Goods

Comm (703) 805-8553, DSN 655-8553

Kristopher.s.hartwell.mil@mail.mil