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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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36 sections with “value engineering”

  • FAR 52.248-1 Value Engineering.
    As prescribed in 48.201, insert the following clause: Value Engineering (JUN 2020) (a) General. The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP's) voluntarily. The Contractor shall sha…
  • FAR 52.248-2 Value Engineering—Architect-Engineer.
    As prescribed in 48.201(f), insert the following clause: Value Engineering—Architect-Engineer (MAR 1990) (a) General. The Contractor shall (1) perform value engineering (VE) services and submit progress reports as specified in the Schedul…
  • FAR 52.248-3 Value Engineering—Construction.
    As prescribed in 48.202, insert the following clause: Value Engineering—Construction (OCT 2025) (a) General. The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP's) voluntarily. The Contrac…
  • FAR 48.103 Processing value engineering change proposals.
    … a VECP and submitting it to the Government are included in paragraphs (c) and (d) of the value engineering clauses prescribed in subpart 48.2. Upon receiving a VECP, the contracting officer or other designated official shall promptly proce…
  • FAR 2.101 Definitions.
    …comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other relate…
  • FAR 48.101 General.
    (a) Value engineering is the formal technique by which contractors may (1) voluntarily suggest methods for performing more economically and share in any resulting savings or (2) be required to establish a program to identify and submit to t…
  • FAR 48.102 Policies.
    (a) As required by 41 U.S.C. 1711, agencies shall establish and maintain cost-effective value engineering procedures and processes. Agencies shall provide contractors a substantial financial incentive to develop and submit VECP's. Contracti…
  • FAR 48.201 Clauses for supply or service contracts.
    (a) General. The contracting officer shall insert a value engineering clause in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition threshold, except as specified in subparagraphs (1) throug…
  • FAR 48.001 Definitions.
    …d in this subpart— Acquisition savings means savings resulting from the application of a value engineering change proposal (VECP) to contracts awarded by the same contracting office of its successor for essentially the same unit. Acquisiti…
  • FAR 3.104-1 Definitions.
    …ocurement for purposes of 41 U.S.C. chapter 21. In excess of $10,000,000 means— (1) The value, or estimated value, at the time of award, of the contract, including all options; (2) The total estimated value at the time of award of all or…
  • FAR 15.404-1 Proposal analysis techniques.
    …aining techniques as appropriate to the circumstances applicable to the acquisition. (4) Value analysis can give insight into the relative worth of a product and the Government may use it in conjunction with the price analysis techniques l…
  • FAR 15.408 Solicitation provisions and contract clauses.
    …conomical “make” or “buy” categorization is selected for one or more items of significant value, the contracting officer shall use the clause with— (1) Its Alternate I, if a fixed-price incentive contract is contemplated; or (2) Its Alter…
  • FAR 52.245-1 Government Property.
    …rty that cannot be removed after construction or installation without substantial loss of value or damage to the installed property or to the premises where installed. Precious metals means silver, gold, platinum, palladium, iridium, osmiu…
  • DFARS 252.239-7007 Cancellation or Termination of Orders.
    …ts of the facilities and equipment, less cost of reusable materials, and less net salvage value. Basic cancellation liability means the actual nonrecoverable cost, which the Government shall reimburse the Contractor at the time services ar…
  • FAR 48.104-2 Sharing acquisition savings.
    … net acquisition savings for supplies and services are based on the type of contract, the value engineering clause or alternate used, and the type of savings, as follows: Government/Contractor Shares of Net Acquisition Savings [Figures in…
  • FAR 48.105 Relationship to other incentives.
    … 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, …
  • FAR 48.202 Clause for construction contracts.
    The contracting officer shall insert the clause at 52.248-3, Value Engineering—Construction, in construction solicitations and contracts when the contract amount is estimated to exceed the simplified acquisition threshold, unless an incenti…
  • FAR 4.804-5 Procedures for closing out contract files.
    …'s failure to respond. (3) Final royalty report is cleared; (4) There is no outstanding value engineering change proposal; (5) Plant clearance report is received; (6) Property clearance is received; (7) All interim or disallowed costs …
  • FAR 15.101-2 Lowest price technically acceptable source selection process.
    …The lowest price technically acceptable source selection process is appropriate when best value is expected to result from selection of the technically acceptable proposal with the lowest evaluated price. (b) When using the lowest price te…
  • FAR 36.601-4 Implementation.
    …comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals and other related…
  • FAR 42.302 Contract administration functions.
    …ng with procedures regarding restrictive markings on data. (49) Monitor the contractor's value engineering program. (50) Review, approve or disapprove, and maintain surveillance of the contractor's purchasing system (see part 44). (51) C…
  • FAR 45.101 Definitions.
    …rty that cannot be removed after construction or installation without substantial loss of value or damage to the installed property or to the premises where installed. Precious metals means silver, gold, platinum, palladium, iridium, osmiu…
  • FAR 48.000 Scope of part.
    This part prescribes policies and procedures for using and administering value engineering techniques in contracts.
  • DFARS 215.101-2-70 Limitations and prohibitions.
    …andards that will be used to determine the acceptability of offers; (ii) No, or minimal, value will be realized from a proposal that exceeds the minimum technical or performance requirements; (iii) The proposed technical approaches will r…
  • DFARS 215.404-71-5 Cost efficiency factor.
    …echnical insertion programs, obsolete parts control programs, spare parts pricing reform, value engineering, outsourcing of functions such as information technology). Metrics developed by the contractor such as fully loaded labor hours (i.e…
  • DFARS 217.7401 Definitions.
    …within the scope and under the terms of the contract, e.g., engineering change proposals, value engineering change proposals, and over and above work requests as described in subpart 217.77. For policy relating to definitization of change o…
  • FAR 15.404-4 Profit.
    …lly the same type and mix of work as the basic contract and is of relatively small dollar value compared to the total contract value, the contracting officer may use the basic contract's profit or fee rate as the prenegotiation objective fo…
  • FAR 32.1004 Procedures.
    …factors considered; and (ii) Performance-based payment amounts are commensurate with the value of the performance event or performance criterion and are not expected to result in an unreasonably low or negative level of contractor investme…
  • FAR 1.603-2 Selection.
    …ng contracting officers, the appointing official shall consider the complexity and dollar value of the acquisitions to be assigned and the candidate's experience, training, education, business acumen, judgment, character, and reputation. Ex…
  • FAR 6.303-2 Content.
    … of the supplies or services required to meet the agency's needs (including the estimated value). (4) An identification of the statutory authority permitting other than full and open competition. (5) A demonstration that the proposed cont…
  • FAR 19.803 Selecting acquisitions for the 8(a) program.
    …ii) The participant's capacity in each construction category in terms of estimated dollar value (e.g., electrical, up to $100,000). (b) The SBA identifies a specific requirement for one or more 8(a) participant(s) and sends a requirements …
  • DFARS 207.106 Additional requirements for major systems.
    …the evaluation of items developed at private expense be based on an analysis of the total value, in terms of innovative design, life-cycle costs, and other pertinent factors, of incorporating such items in the system. (S-70)(1) In accordan…
  • DFARS 209.571-1 Definitions.
    … or exceeds— (i) Both the certified cost or pricing data threshold and 10 percent of the value of the contract under which the subcontract is awarded; or (ii) $55 million. “Pre-Major Defense Acquisition Program” means a program that is i…
  • DFARS 215.407-4 Should-cost review.
    … element of the program cost and the justification for each cost. (B) An analysis of non-value added overhead and unnecessary reporting requirements. (C) Benchmarking against similar DoD programs, similar commercial programs (where approp…
  • DFARS 215.470 Estimated data prices.
    …ost to the Government of data items in terms of their management, product, or engineering value. (b) When data are required to be delivered under a contract, include DD Form 1423, Contract Data Requirements List, in the solicitation. See P…
  • DFARS 252.209-7009 Organizational Conflict of Interest—Major Defense Acquisition Program.
    … or exceeds— (1) Both the certified cost or pricing data threshold and 10 percent of the value of the contract under which the subcontract is awarded; or (2) The threshold specified in the definition of “major subcontractor” at Defense Fe…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.