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Design

Final Value Engineering (VE) Program Performance Measures

Attachment

Goal 1: Maximize the influence VE studies have on a project's cost and performance.

Outcome:

By increasing the number of VE study recommendations that are implemented, improvements in the project's cost-effectiveness and performance will be realized.

  • Baseline: 2.0 (FY 2009)
  • Target: 2.5 (FY 2016)

The baseline and target measures were developed using weighted averages of the data collected from the annual VE reporting cycles. These measures are based on a weighted average of 60% of the indicator for project construction costs saved and 40% of the indicator for VE study recommendations implemented. Both the national average and numeric average for each indicator will be compiled, tracked and reported.

Performance indicators:
  1. Percentage of VE study recommendations implemented
    • National average:
      • Baseline: 44 % (FY 2009)
      • Target: 55 % (FY 2016)
    • Performance indicator & metric: The data collected (question 11b) in the annual VE reporting cycle for each state DOT is converted to a numeric value and averaged as depicted in the following matrix:
      • Baseline: 2.3 (FY 2009)
      • Target: 2.8 (FY 2016)
      0 1 2 3 4 5
    % of Implemented Recommendations 0-15% 16-30% 31-45% 46-60% 61-80% 81-100%
  2. Percentage of project construction costs saved
    • National average:
      • Baseline: 8.0 % (FY 2009)
      • Target: 10.0 % (FY 2016)
    • Performance metric: The data collected (question 10b & 12b) in the annual VE reporting cycle for each state DOT is converted to a numeric value and averaged as depicted in the following matrix:
      • Baseline: 1.8 (FY 2009)
      • Target: 2.4 (FY 2016)
      0 1 2 3 4 5
    % of Construction Project Cost Savings 0-2.5% 2.5-5% 5-7.5% 7.5-10% 10-12.5% More than 12.5%

Goal 2: Enhance the quality of VE programs.

Outcome:

To enhance both the strategic and day-to-day capacity (e.g., policy, procedures, functions, services) and quality of VE programs.

  • Baseline: 2.5 (FY 2009)
  • Target: 3.5 (FY 2016)

The baseline and target measures were developed using weighted average of the data collected from the annual VE reporting cycles. These measures are based on a weighted average of 30% for the state DOTs with a VE policy, 30% for the State DOTs with an established VE program, and 40% for the state DOT's conducting VE studies prior to completing 30% of the design of a project.

Performance indicators:
  1. Number of state DOTs with a VE policy.
    • Baseline: 2.7 (FY 2009)
    • Target: 4.1 (FY 2016)

    Performance Metric: The data collected (question 1b) in the annual VE reporting cycle is converted to a numeric value and averaged as depicted in the following matrix:

      0 1 2 3 4 5
    VE Policy No policy documented or formal VE program commitment Documented commitment to conduct required VE studies (23 CFR 627) & 1 VE program element in policy 2
    VE program elements addressed in policy
    3-4
    VE program elements addressed in policy
    5-6
    VE program elements addressed in policy
    All 7
    E program elements addressed in policy
  2. Number of states with an established VE Program.
    • Baseline: 3.1 (FY 2009)
    • Target: 4.0 (FY 2016)

    Performance Metric: The data collected (question 1a & 2a) in the annual VE reporting cycle is converted to a numeric value and averaged as depicted in the following matrix:

      0 1 2 3 4 5
    VE Policy No policy documented or formal VE program commitment 1 VE program element identified or under development 2 VE program elements identified or under development 3 VE program elements identified or under development 4 VE program elements identified or under development 5 VE program elements identified or under development
  3. Percentage of VE studies conducted prior to completing 30% of a project's design.
    • Baseline: 1.9 (FY 2009)
    • Target: 2.7 (FY 2016)

    Performance Metric: This indicator reflects the percentage of the VE studies that state DOTs conduct prior to completing 30% of a project's design, using the data collected (question 4c) in the annual VE reporting cycle, is converted to a numeric value and averaged as depicted in the following matrix:

      0 1 2 3 4 5
    % of VE studies conducted before completing 30% of a project's design 0-15 % 15-30 % 30-45 % 45-60 % 60-80 % 80-100 %

Goal 3: Improve FHWA's stewardship and oversight of the VE Program.

Outcome:

To enhance FHWA's consistency with providing oversight of the VE programs and involvement with studies.

  • Baseline: 2.4 (FY 2009)
  • Target: 4.3 (FY 2016)

The baseline and target measures were developed using weighted average of the data collected from the annual VE reporting cycles. These measures are based on a weighted average of 30% for the FHWA Divisions engaged in VE studies, 30% for the FHWA Divisions verifying all required VE studies are conducted, and 40% for the FHWA Divisions stewardship and oversight of VE programs and studies.

Performance indicators:
  1. Divisions are engaged in VE studies.
    • Baseline: 3.1 (FY 2009)
    • Target: 4.2 (FY 2016)

    Performance Metric: The data collected (question 20a) in the annual VE reporting cycle is converted to a numeric value and averaged as depicted in the following matrix:

      0 1 2 3 4 5
    Participating in VE studies No involvement Rarely
    (0-20 %)
    Seldom
    (21-40 %)
    Occasionally
    (41-60 %)
    Frequently
    61-80 %
    Normally
    (80-100 %)
  2. Number of Divisions verifying all required VE studies are conducted.
    • -Baseline: 3.0 (FY 2009)
    • -Target: 5.0 (FY 2016)

    Performance Metric: The data collected (question 20d) in the annual VE reporting cycle is converted to a numeric value and averaged as depicted in the following matrix:

      0 1 2 3 4 5
    Verification of VE studies conducted 0-5 6-20 21-35 26-39 40-51 52
  3. Enhance the consistency of FHWA's stewardship and oversight of VE.
    • Baseline: 1.4 (FY 2009)
    • Target: 3.7 (FY 2016)

    Performance Metric: The data collected (question 19a) in the annual VE reporting cycle is converted to a numeric value and averaged as depicted in the following matrix.

      0 1 2 3 4 5
    Integration of VE in Divisions stewardship & oversight agreements, risk assessment, & reviews conducted VE is not included in Divisions stewardship & oversight agreement

    VE is not included in annual risk assessment process

    Identified in Divisions stewardship & oversight agreement, work plan or standards operating procedures:
    • When VE studies need to be conducted
    • VE integrated in the planning & design sections of agreement &/or plans
    VE is considered in Divisions annual risk assessment process
    Identified in Division's stewardship & oversight agreement, work plan or standard operating procedures:
    • State DOTs VE policies & procedures referenced
    • Division's VE coordinator & role described
    Identified in Division's stewardship & oversight agreement, work plan or standard operating procedures:
    • Division's VE roles & responsibilities
    • Division's participation in VE studies
    Identified in Division's stewardship & oversight agreement, work plan or standard operating procedures:
    • Divisions role in reviewing VE study recommendations
    • Divisions role in verifying VE recommendations are implemented
    Identified in Division's stewardship & oversight agreement, work plan or standard operating procedures:
    • Division's role in the monitoring, & reporting of VE programs
    • Division's role with supporting improving a State DOTs VE program
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Updated: 10/09/2014
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000