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U.S. Department
of Transportation
Federal Highway

Subject: INFORMATION: Updated FHWA Value Engineering (VE) Policy Date: May 25, 2010
From: //Original signed by//
King W. Gee
Associate Administrator for Infrastructure
Reply to Attn of:

Federal Lands Highway Division Engineers
Division Administrators


This memorandum is to inform you of updates to FHW A's VE Policy which has been issued as an FHWA Order dated May 25, 2010. This policy replaces FHWA's VE policy that was contained in the Federal-aid Policy Guide (September 8, 1998, Transmittal 24). The updated policy is attached and is available on FHWA's VE Program Web site at: https://www.fhwa.dot.gov/ve/vepolicy.cfm.

The FHWA's VE Policy reflects the Agency's commitment to continuously enhance the conducting of VE analyses, the quality of State department of transportation VE programs, and FHWA's stewardship and oversight of the VE program. The revised policy also reflects the revisions made to the VE provisions in Federal law (Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users) and address the recommendations contained in the Office of the Inspector General's Audit Report entitled, "Value Engineering in the Federal-Aid Highway Program." Application of this policy is expected to:

  • Clarify FHWA's requirements for conducting VE analyses;
  • Identify the characteristics of a VE analysis process, including life-cycle cost analyses;
  • Influence when VE analyses are conducted to maximize their effectiveness;
  • Provide more consistent documentation of the VE analyses;
  • Delineate responsibilities for establishing and sustaining VE programs and ensuring VE analysis recommendations receive proper review, approval and are implemented; and
  • Ensure the appropriate level of FHW A involvement, monitoring, and oversight.

We appreciate your continued support with advancing the VE program and practices within your State and office. If you have any questions about the changes to this policy, please contact Mr. Jeffrey Zaharewicz at jeffrey.zaharewicz@dot.gov.


Download PDF: memoveng20100525.pdf, 1 mb


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