DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

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

C&T Value 

Management Program

Kelly Floyd, MBA

November 22, 2017
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2

Value Management:

• C&T Program Overview

• VE & VECP

• Rules & Tools

• Submission

• Contractor Guidance & References

• Contact Information

• Breakout Information

Overview
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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
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4

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
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5

• Contractual method to share savings

– Contractor initiated

– Improve DoD supplies and/or equipment

– Savings shared between Contractor and DoD

– Described in FAR Clause 52.248.1

• Improvements include any price savings

– Process

– Materials

– Manufacturing Techniques

What is a VECP?

Value Engineering Change Proposal
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6

• VECP Clause in DLA contracts > $150K or 

Simplified Acquisition Threshold

• Clause can be added by Modification

• VECP can only be submitted on a current 

contract / instant contract

• Typical Share: 50/50

• Sharing for 3-5 years

Rules & Tools For VECPs
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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
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Value Engineering/Management 

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)
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Guide to VE

Click to 

open
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Points of Contact

DLA Troop Support C&T Value Management 

Office

Kelly Floyd: (215) 737-7441

Kelly.Floyd@dla.mil

Kathy Rivell: (215) 737-7698

Kathy.Rivell@dla.mil
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Have an Idea? 

Want to Learn More?

Join us for the break out session

Thursday 1100-1130 or 1430-1500
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WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY