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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13 sections with “value engineering incentive”

  • 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 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 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 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 48.105 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 48.104-2 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 48.202 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…
  • 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 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 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…

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.