Value Engineering as Applied at the Savannah River Site for Environmental Restoration Projects PDF Download

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Languages : en
Pages : 11

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Book Description
Value Engineering (VE) has been defined as the organized study of functions which satisfy the user's needs at the lowest life cycle costs through applied creativity. VE was established in the World War II era when Mr. Lawrence Miles formed the concept of intentionally substituting materials to perform the function of more expensive standard materials. Since that time, VE has spread throughout the Department of Defense procurement agencies, and has in recent times been applied to almost every government agency. DOE Order 4040.1 states the policy to establish VE programs and use VE, where appropriate, to reduce nonessential costs and improve productivity for Departmental Elements. The order states that these VE programs shall, at a minimum, provide for the management and procurement practices as required by the OMB Circular A-131. Westinghouse Savannah River Company (WSRC), as the prime DOE contractor at the Savannah River Site (SRS), has adopted a policy of applying Value Engineering to all major projects with a Total Estimated Cost (TEC) of $10 million or greater. Projects of a lesser TEC may also have VE studies performed if management has determined that a significant potential exists for cost savings and/or cost avoidance. Within the Environmental Restoration (ER) Department, many of the groundwater remediation and waste site closure project represent individual projects that make up an overall SRS requirement to meet Federal RCRA or CERCLA clean up requirements. Many of these individual projects are not initially considered for VE studies because they never reach the $10 million TEC level. Because many remediation projects are duplicated throughout the site, there is a large potential for cross-link savings throughout the site.