FAR and DFARS › FAR Part 48: Value Engineering › Subpart 48.1
FAR 48.105 Relationship to other incentives.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section explains how value engineering change proposal (VECP) rewards interact with other contract incentives. It says a contractor should not be paid twice for the same benefit—once through value engineering shares and again through performance, design-to-cost, or similar incentives. When such targets are set and incentivized, they are not adjusted because a VECP was accepted, and only VECP benefits not already rewarded under other incentives are paid under a value engineering clause.
Applies to: Contractors with contracts containing value engineering and other incentive provisions
Key terms: VECP · value engineering shares · performance incentives · design-to-cost · value engineering clause
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Contractors should be offered the fullest possible range of motivation, yet the benefits of an accepted VECP should not be rewarded both as value engineering shares and under performance, design-to-cost, or similar incentives of the contract. To that end, when performance, design-to-cost, or similar targets are set and incentivized, the targets of such incentives affected by the VECP are not to be adjusted because of the acceptance of the VECP. Only those benefits of an accepted VECP not rewardable under other incentives are rewarded under a value engineering clause.
← 48.104-4 Sharing alternative—no-cost settlement method. · 48.201 Clauses for supply or service contracts. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.