FHWA Public Meeting Boards June 5, 2012 U.S. Widening Meeting
Ken Leuderalbert, P.E., PMP FHWA VE Program Manager SAVE International® 2012 Annual Conference...
Transcript of Ken Leuderalbert, P.E., PMP FHWA VE Program Manager SAVE International® 2012 Annual Conference...
VALUE ENGINEERING
AT FHWA
Ken Leuderalbert, P.E., PMPFHWA VE Program Manager
SAVE International® 2012 Annual Conference
Government Value Management Conference
June 14, 2012
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Overview of FHWA/State DOT Program
VE Program Performance
Overview of FHWA VE Regulations
Future VE Initiatives/Goals
Presentation Agenda
FHWA/State DOT Overview
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FHWA’s Interest with VE
1784 studies resulting in nearly $10 billion in project cost savings or avoidance over the last five years.
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FHWA’s Interest with VE
On average the VE program has produced the following benefits:
VE teams recommend ~ 10% project savings
State DOTs implement ~50% of all VE recommendations
VE recommendations save ~5% of projects construction costs
For every dollar spent on VE analyses, agencies realize a $165:1 return on investment
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FHWA’s Interest with VE
VE Program 2016 Goals: http://www.fhwa.dot.gov/ve/measures.cfm
Maximize VE effect of project cost and performance 55% of VE Recommendations Implemented 8% of Project Construction Costs Saved
Enhance Quality of State VE Program All States have established VE Program and Policy 50% of all VE studies conducted prior to 30% plans
Improve FHWA’s Stewardship of VE Program Division engaged in VE Studies Divisions verifying required VE Studies are Conducted
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Previous update to VE regulation was 1997
Jun 23, 2011 – NPRM Published
Aug 22, 2011 – end of public comment period
Mar 15, 2012 Final Rule Published in Federal Register
http://www.gpo.gov/fdsys/pkg/FR-2012-03-15/pdf/2012-6244.pdf
April 16, 2012 Implementation Date of Final Rule
Overview of FHWA VE Regulations
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There are now five section to VE Regulation:
627.1 Purpose and Applicability627.3 Definitions627.5 Applicable Projects627.7 Programs627.9 Conducting a VE Analysis
Changes to VE Regulation
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Section 627.1 Purpose and Applicability
Prescribes programs, policies and procedures to ingrate VE into project planning and development
Establish and sustain policies and procedures to monitor, assess and report on VE program and analyses conducted
Overview of 2012 VE Regulation
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Section 627.3 Definitions
Added definitions for: Bridge Project Project Total Project Costs VE Analysis VE Job Plan VECP
Overview of 2012 VE Regulation
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VE Job PlanStructure for conducting and documenting results of VE analysis Information Phase Function Analysis Phase Creative Phase Evaluation Phase Development Phase Presentation Phase Resolution Phase
Overview of 2012 VE Regulation
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Section 627.5 Applicable Projects All FAHP NHS Projects >$25M All FAHP Bridge Projects >$20M All Major Projects on or off the NHS Projects with delayed construction that undergo
a scope or design change resulting in meeting threshold
Any FAHP projects FHWA determines appropriate
Overview of 2012 VE Regulation
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Section 627.7 VE Programs State DOTs must establish and sustain a VE
program Document Policies and Procedures Identify, Schedule and Conduct VE Analysis Ensure VE analysis follows VE Job Plan Resolve and implement approved
recommendations Monitor and Assess VE Program Submit annual report to FHWA
Overview of 2012 VE Regulation
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Section 627.9 Conducting a VE Analysis
Independent, multi-disciplined team Team leader with VE expertise Use of consultants Timing of VE analysis Consider all project objectives/commitments Follow the VE Job Plan
Overview of 2012 VE Regulation
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Simple, do everything we just talked about.
Identify a VE Coordinator Develop a VE Policy/Procedure Develop an Annual List of Projects Identify VE analysis resources for each study Follow VE Job Plan Resolve Recommendations Report on Program Performance
State Actions to Implement the VE regulation
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Review and Approve VE Policies and Procedures
Review of Annual List of VE Projects
Ensure VE analysis is conducted on all required projects
Monitor and participate in VE analyses
Monitor Recommendation Resolution Process
Annually Report on VE Program Results
Division Stewardship of VE Program
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Release 2011 VE Performance Report - Spring
Update the VE Order (Policy) – Summer/Fall
Initiate Development of VE Stewardship & Oversight Tool Box for FHWA Divisions – Summer Enhance consistency of FHWA efforts Provide guidance and resources to assist divisions
with carrying out specific VE tasks or functions
FHWA Future Activities
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Share Successful VE Practices: http://www.fhwa.dot.gov/ve/
VE Training: http://www.nhi.fhwa.dot.gov/
Recording of VE Webinar Outreach: http://www.fhwa.dot.gov/ve/
VE regulations and policies: http://www.fhwa.dot.gov/ve/vepolicy.cfm
FHWA VE Program Website
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AASHTO VE Technical Committee:
http://design.transportation.org/Pages/ValueEngineering.aspx
AASHTO VE Guide: https://bookstore.transportation.org/
collection_detail.aspx?ID=43
Other VE Resources
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Questions on VE regulations and policies: Ken LeuderalbertVE Program Manager317-226-5351
VE Website: http://www.fhwa.dot.gov/ve/
Questions and Answers