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RCED-85-85 1 (1985-07-16)

handle is hein.gao/gaobabfeg0001 and id is 1 raw text is: BY THE COMPTROLLER GENERAL Report To The Congress OF THE UNITED STATES Greater Use Of Value Engineering Has The Potential To Save Millions On Wastewater Treatment Projects Value engineering is a method of analyzing a product or service so that its function can be provided at the lowest possible overall cost without sacrificing quality. When applied to the Environmental Protection Agency's (EPA) construction grants program, EPA reported that value engineering reduced construction costs about $400 mil- lion over a 7-year period. EPA, as required by federal law, mandates value engineering reviews during the design of wastewater treatment projects costing more than $10 million, but it does not require its use during the design of less expensive projects or at all during the construction phase regardless of project cost. GAO found that value engineering techniques were seldom used on treatment projects when there was no federal or state requirement to do so. EPA regional and state program officials have not extended value engi- neering requirements primarily because federal and state governments do not require them to do so. GAO estimates that extending the use of value engi- neering during design to projects costing from $1 million to $10 million and to all projects during construction has the potential to save from $25 million to $57 million in federal funds annually. GAO makes recommendations to the Congress and EPA to extend value engineering. 1111111111111111 V'D ST127409 Z 4 GAO/RCED-85-85 04 JULY 16,1985 7< _Z,~

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