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RETICTED --Not to be relented ovtrfcdp the Ganel~l
f1~.%C) g Office excep)t on the hi of ! pvcjjkUP.- ejr, 5 1973
],,y-th 0( ffote of Leg',Oa iv o Uai on, a ref.ord of W hi is ltept
L-Y Vie DrtRUUi'%i Publizatfons [Urank (Gar
RELEASED
The Honorable Larry Winn, Jr.
Hlouse o f Rcprcsentat ivos *~
Dear Mr. Winn: LMO9162
During testimony on June 18, 1973, before the Subcom-
mittee on Buildings and Grounds, Senate Committee on Public
Works, you expressed an interest in having GAO examine Fed-
oral agencies' use of value engineering, Since we are cur-
rently reviewing this area, we felt it might help you if
we informed you of the results of our work. Accordingly, ive
spoke with your executive secretary on June 27, 1973, and
agreed to give you a summary of our efforts.
In our review, we are mainly evaluating how Federal
agencies responsible for constructing buildings use value
engineering incentive programs. Those programs generally
rerer to the use of incentive clauses in construction con-
tracts to provide financial rewards to contractors and sub-
contractors who initiate approved cost-saving value engineer-
ing proposals. We have found that Federal agencies vary in
their use of the programs.
We are also examining whether (1) proven value engineer-
ing proposals are circulated enough, both within and among
the Federal construction agencies, and (2) the methods for
applying proven value engineering proposals to future con-
struction projects are effective.
Agencies whose practices we are reviewin;4 are the
Army Corps of Engineers; the Department of the Navy; the
Department of the Air Force; the General Services Administra- :7
tion; the Federal Aviation Administration; the Veterans Ad- -o
ministration; the Atomic Lnergy Commis. i on; the Tennessee 16
Valley Authority; the Department of Health, Education, and
Welfare; and the National Aeronautics and Space Adi nistration.](ViewImageLocal?handle=hein.gao/gaobabkhk0001&div=1&collection=&method=preview&ext=.png&size=3)