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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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18 sections with “value engineering clause”

  • 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 52.248-3 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 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 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 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 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 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 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 48.202 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 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 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 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…
  • 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 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.