Approved: Effective: July 20, 2023

Office: Roadway Design Office

Topic No.: 625-030-002-j

________________________
Department of Transportation

VALUE ENGINEERING PROGRAM

AUTHORITY:

Sections 20.23(3)(a), and 334.048(3), Florida Statutes (F.S.);

REFERENCES:

1) American Association of State Highway and Transportation Officials (AASHTO)

Guidelines for Value Engineering, AASHTO Bookstore,
https://store.transportation.org/Home/Index

2) Federal Highway Administration (FHWA) Value Engineering web site,

www.fhwa.dot.gov/ve/2021/

3) FDOT Project Development and Environmental Manual, Topic No. 650-000-001,

Part 1: Chapter 4.2.8.3 & 4.2.9 and Part 2: Chapter 3.2.8
http://www.fdot.gov/environment/pubs/pdeman/pdeman1.shtm

4) FDOT Project Management Guide, Part 2, Chapter 240,

https://www.fdot.gov/designsupport/pm/resourcepage

5) FDOT Employee Recognition Program Procedure, Topic No. 250-000-007

https://pdl.fdot.gov/Procedures

6) Title 23 Section 106(e) of United States Code,

http://www.fhwa.dot.gov/map21/docs/title23usc.pdf

7) Code of Federal Regulations, Title 23, Chapter I, Part 627,

http://www.ecfr.gov/cgi-bin/text-
idx?SID=0f6e5f1ac218c3ab7de98a108842632b&node=23:1.0.1.7.20&rgn=div5
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PURPOSE:

To provide a consistent and uniform process for executing the Value Engineering (VE)
Program during the development of a project.

SCOPE:

All Department personnel, consultants, contractors, and others who may be required to
participate in the Value Engineering (VE) Program.

BACKGROUND:

Value Engineering is a systematic process used by a multidisciplinary team to improve

the value of a project through the identification and analysis of functions.

Congress has authorized the use of Value Engineering on federal-aid projects since
1970. As part of the National Highways Designation Act of 1995, Congress required that
VE be performed on certain federal-aid highway projects and modified that requirement
in 2005, 2012, and 2014.

The administration of the Value Engineering Program can be broken into the following
key processes:

1. Project Selection.
2. Team Selection.
3. Value Engineering study.
4. Recommendation Resolution.
5. Reporting.

The Districts (including Turnpike Enterprise) are responsible for the Project
Selection, Team Selection, Value Engineering study, and Recommendation Resolution
processes. The State Value Engineer (SVE) is responsible for the Reporting process.
Guidelines for administering these processes are outlined in this procedure.

DEFINITIONS

Certified Value Specialists (CVS): The highest level of certification attainable through
SAVE International. Designation is reserved for Value Specialists who have
demonstrated expert level experience and knowledge in the practice of the Value
Methodology.

Constraint: A limit or restriction to the number of potential solutions available to a

specific facet of a project. It may involve permitting, access, or geometrics, to name a
few.
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Commitment: An obligation to an external stakeholder to provide a feature or perform

an action related to a project. Some commitments are shown in the NEPA document for
the project and are reflected in project Plans, Specifications & Estimates (PS&E)
package and implemented during the construction of the project.

Cost: The amount paid or charged for goods and services.

Criteria: The standard that the project was designed to meet.

Design Observation: An observation that the VE team wishes to convey to the design
team for consideration. The milestone of the project being reviewed may not have
adequate detail to develop a full VE recommendation.

Design-Build: Means combining the design and construction phases of a project into a
single contract.

Evaluation Matrix: A method by which competing VE alternatives and the proposed

design can be evaluated by the use of weighted objectives.

Function: Value Engineering defines function as "that which makes a product work or
sell."

Function Cost: The amount paid or charged to provide a function.

Function Worth: The lowest amount paid or charged to provide a function.

Life Cycle Costs: A method used to evaluate the total cost of ownership over the life of
a facility in terms of equivalent dollars. This method uses a discount rate to account for
opportunity lost and inflation.

Maintenance Costs: The cost to keep the investment in its current condition. This may
include small improvement projects such as Safe Mobility for Life projects, but routinely
includes resurfacing, painting, mowing, etc.

Major Project: A project with an estimated total cost of $500 million or more that
receives federal-aid funding.

Operating Costs: These types of costs are what it takes to make the facility function.
The expenses are generally associated with toll collections, motor carrier compliance,
electricity, etc.

Preferred Alternative: The preferred alternative for a federal-aid project is the

alternative that has been approved by the Lead Federal Agency.

FDOT Recommended Alternative: The alternative submitted for approval to the Lead
Federal Agency, by FDOT and/or project sponsor (if not an FDOT project) as the
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preferred alternative. The FDOT recommended alternative becomes the preferred

alternative once it is approved by the Lead Federal Agency.

SAVE International: The premier international society devoted to the advancement and
promotion of the value methodology (also called value engineering, value analysis, or
value management).

Transportation System Facilities: The fixed assets and control systems that move
people and goods in a timely manner.

Value: The relative worth of something as measured by its qualities or by the esteem in
which it is held.

Value Index: A ratio that expresses function cost divided by function worth. This ratio is
used to determine the opportunity for value improvement.

VE Alternatives: The concepts the VE team identified as solutions that may be

substituted for features currently depicted.

VE Job Plan: An established seven-phase approach by which VE studies are

performed.

VE Milestone: A point in the development of a project that is appropriate to perform a

value engineering study.

VE Recommendation: The team's selected VE alternative or VE alternatives.

Worth: The lowest cost that is required to produce or obtain an essential function of an
item or service.

1. PROJECT SELECTION

1.1 REQUIRED PROJECTS

All projects on the National Highway System (NHS) utilizing Federal aid highway
funding with an estimated total cost of $50 million or more for non-bridge projects and
$40 million or more for bridge projects shall have a minimum of one VE study performed
during the development of the project prior to the completion of final design.

The estimated total cost shall include all costs associated with all phases of the project,
including environment, design, right-of-way, utilities, and construction.

Projects delivered with the Design-Build method of construction are not required by
federal regulation to have a VE analysis.
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1.2 ADDITIONAL PROJECTS

The districts have the flexibility to study additional projects below the $50 million
threshold except for projects required by FHWA. Projects that provide the highest
potential for value improvement include:

Projects that substantially exceed initial cost estimates.

Complex projects.
Capacity projects.
Interchanges.
Corridor studies.
Projects requested for VE by District Management or a Project Manager.
Projects with high right of way costs.
Projects and processes with unusual problems.
Projects approved by Central Office for Design-Build method of delivery.

1.3 SCHEDULING
The VE study should be conducted during one of the following phases of project
development: Planning, Project Development & Environmental (PD&E), or Initial
Engineering Design. For Design-Build Projects, the VE study shall be conducted prior to
the release of the Request for Proposal (RFP). The greatest potential for improvement
in a project is during the early phases of development; therefore,
objective to schedule studies during these phases of project development.

1.4 VE WORK PLAN

The districts shall have the responsibility of developing and executing the annual Value
Engineering Work Plan. The development of this plan shall be completed and submitted
to the SVE in Central Office by July 1 of each fiscal year. All required projects that have
not had a prior VE study and will have a VE milestone within the project schedule for the
year in review shall be considered for inclusion on the work plan.

1.5 LOCAL AGENCY PROGRAM (LAP) PROJECTS

The Department shall ensure that projects delivered by a Local Agency that meet the
following requirements have a VE study performed prior to the completion of final
design:

Projects on the National Highway System (NHS) receiving Federal assistance

with an estimated total cost of $50 million or more.
Bridge projects on the NHS receiving Federal assistance with an estimated total
cost of $40 million or more.

The VE study shall meet the requirements of this procedure.

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VE analysis is not required for LAP projects delivered by the Design-Build method of
construction, but are encouraged per Section 1.2. Other than projects delivered by the
Design-Build method of construction, there is not a process to waive the value
engineering requirement for projects described in this section.

2. TEAM SELECTION

2.1 TEAM STRUCTURE

The District Value Engineer or Value Engineering Administrator (DVE/A) shall review
potential team members and coordinate the selection of team member disciplines with
the Project Manager. Teams should be structured to include appropriate expertise to
evaluate the major areas anticipated within the project. At a minimum, team members
with expertise in design, construction, and maintenance shall be represented on the
team. In the event of specialized projects, individuals with specific expertise necessary
to perform a proficient value engineering study should be included in the team makeup.
Anyone directly involved in the current planning or design of the project shall not be a
team member, but is expected to participate as an information source. The VE study
shall be independent of other design reviews.

The districts shall determine whether to utilize Department personnel, consultant

personnel, or a mixture of both to form the team.

2.2 DEPARTMENT TEAM LEADER/MEMBER CRITERIA

Department employees serving as team leaders, under the supervision of the DVE/A,
shall have the responsibility for conducting the assigned project review in accordance
with these procedures. Prior to leading a team, employees must have served as a team
member on at least two VE studies, must have attended a VE team member training
workshop, and must have attended a team leader training course.

Team members who have not received formal VE training or participated on a previous
VE study led by a CVS or DVE/A may participate on a team; however, they should not
be the primary team member responsible for one of the required disciplines.

2.3 CONSULTANT TEAM LEADER/MEMBER CRITERIA

Consultant team leaders must meet the following qualifications:

1. A CVS with experience in the value engineering process for transportation

system facilities.

2. A Professional Engineer licensed in the State of Florida with proficient knowledge

and experience related to the design and/or construction of transportation system
facilities.
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The role as consultant team leader may be filled by one individual or by two individuals
serving as co-team leaders; however, those individuals fulfilling the above qualifications
shall be from the contracted consulting firm or their sub-consultants.

A consultant team member shall be a technical person with proficient knowledge and
experience in the required discipline.

3. VALUE ENGINEERING STUDY

3.1 VE JOB PLAN

The VE study process shall be conducted in accordance with the following 7 phases of
the VE Job Plan:

(1) Information: The team gathers project information including objectives, costs,
commitments, and constraints. The team also identifies components and elements of
high cost. Tools used during this phrase include: Project Team briefing, Site visit, and
Pareto Analysis.

(2) Function Analysis: The team analyzes the project and defines the project functions
using a two-word active verb/measurable noun technique. The team analyzes these
functions to determine which need improvement, elimination, or combination.
Remaining functions are then classified as Basic or Secondary functions. Tools used
during this phase include: Random Function Identification, Function Analysis System
Technique (FAST), Function Listing, and Value Index.

(3) Creative: The team uses a variety of creative techniques, such as brainstorming, to
generate alternative ideas to perform the project functions.

(4) Evaluation: The team evaluates and selects the ideas with the greatest potential for
development into fully supported recommendations. Appropriate tools of comparison
include advantage and disadvantage comparison and an evaluation matrix with
weighted criteria.

(5) Development: Based on the evaluation phase, the team begins to develop in detail
the highly rated ideas with the greatest potential value into fully supported
recommendations. During this phase it is essential to establish costs and backup
documentation needed to convey the alternative solutions. A Life Cycle Costs Analysis
should be considered for each recommendation.

(6) Presentation: The VE team presents to management the findings of the study in a
written report. This phase may include a verbal presentation.

(7) Resolution: This final phase of the VE job plan occurs after the presentation phase
has been completed and department management has begun to make decisions on the
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recommendations. The decision to approve or reject each recommendation is

documented during this phase.

Once the team has completed phases (1) through (4), the team may determine that no
value improvements can be identified for the project and that the team concurs with the
current design. Then the team leader may document the study results and disband the
team. The DVE/A shall be notified prior to disbanding.

3.2 PROJECT DEVELOPMENT PHASE

The information required for the VE study should be the information already available
and/or prepared for the project. The information should not be generated for the sole
purpose of the VE study; it should be collected and packaged appropriately for the VE
study team.

3.2.1 Planning

The first potential milestone to conduct a VE study of a project should occur

immediately following the development of a recommended concept, and/or corridor
analysis. Not all transportation system facilities go through this phase during project
development; therefore, a VE study may not be applicable at this phase of
development. Information that should be made available to the team includes:

Traffic information (which was utilized in making the conceptual design decisions)
consisting of preliminary projections based on historical trend analysis, or
volumes taken from urban transportation models. Any other known traffic impacts
that are anticipated shall also be included.
Aerial photo coverage of the project showing corridors or interchange layouts,
zoning, and land use designation.
Information on current right of way values, consisting of such items as square
foot market values for areas that are affected by each proposed conceptual
design.
Information concerning the identification of a preferred alternative. Such
information should include construction costs, right of way costs, environmental
impacts, safety, operation, and relocations.

3.2.2 Project Development & Environmental

A VE study may occur after the alternative analysis is complete. This opportunity for VE
gives the project an early review by design and operations. The involvement of
construction and maintenance could lead to significant life cycle cost savings. The VE
study shall occur prior to the public hearing in order to depict the team's enhancements.
This step is critical in building public credibility for the project function.

Alternatives compared at this stage will include those submitted by the consultant
and/or PD&E engineer and any additional concepts that were presented and approved
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by earlier VE studies. Information or data that should be available to the team at this
point in the development of the project include:

Approved technical traffic memorandum.

Estimated construction cost breakdown by alternative.
Estimated right of way cost for each alternative based on actual real estate
values in each area.
Business damage estimates in each alternative.
Traffic operation analysis through utilization of computer programs.
Life cycle costs including maintenance costs, operating costs, and periodic
improvements for each alternative.
The number and cost of business and residential relocations for each alternative.
Environmental impact analysis.
Preliminary plans.
Summary of public involvement.
Information on nearby projects that may impact the construction, performance, or
cost of the project.
Project Commitments Record.

3.2.3 Engineering Design

A final VE study may occur prior to the Phase 2 design submittal. Under extraordinary
circumstances, VE studies may be conducted beyond Phase 2 when approved by the
District Director of Transportation Development. Elements of the final VE study will
center on drainage requirements, vertical grades, and minor horizontal refinements
within the established corridor, structures, and utilities. Information and data that should
be available to the team include:

Key Sheet with location map, begin and end stations, equations, and project
numbers.
Drainage Information showing:
a. Existing data including ridge lines, elevations, and structures
b. High water information
c. Drainage areas and direction of flow
d. Horizontal alignment
e. Proposed water retention areas
Typical Sections
Plan and Profile Sheets:
a. Baseline survey, roadway alignment, curve data, and bearings
b. Existing topography
c. Profile grades
d. Proposed right of way
e. Begin and end project stations, equations, and bridges
f. Existing utilities
Intersection and Interchange Layouts:
a. Existing topography
b. Basic survey geometry
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c. Profile grades
Cross Sections:
a. Existing ground line
b. Partial proposed templates
c. Existing utilities
Drainage Outfall:
a. Alignments
b. Cross sections showing existing ground line and partial templates
Conceptual Structure Information:
a. Bridge Geotechnical Report
b. Bridge Developmental Report
c. Plan and elevation sheets
d. Cross sections through structure
Temporary Traffic Control Plans for all alternative schemes or phasing being
considered.
Preliminary Cost Estimate.
Information on nearby projects that could impact the construction, performance
or cost of the project.

These three opportunities for a VE study during project development are general in
nature and close coordination is needed between the Project Manager and DVE/A to
determine the proper timing for a value engineering study with the greatest potential for
success. It is important for project elements to be developed to enough detail for the VE
team to comprehend the intent of the design, but not developed to the extent that any
proposed change would impact implementation. Teams should focus on features that
are being developed during that particular phase of project design.

3.2.4 Design-Build

A VE study performed on a Design-Build project shall be performed prior to the release

of the Request for Proposal (RFP). The VE team on these studies should focus on the
criteria contained within the proposed RFP.

3.3 VE STUDY REPORT

The VE study report shall be organized in sections by areas of focus consistent with the
value engineering job plan. The format of any report should contain, as a minimum, the
following:

Executive Summary.
VE Team Participant List.
List of resources contacted during the study.
Documentation of VE Job Plan phases:
o Information Phase
Project history (including project criteria, commitments, and
constraints). The project development phase along with the
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Financial Management number and VE study number shall be

identified.
Existing design description
Performance criteria
Cost model of existing design
o Function Analysis
Evidence that Function Analysis was performed, including
documented basic/secondary functions
o Creative Phase
Documented ideas generated
o Evaluation Phase
Documented process used to evaluate ideas
o Development Phase
VE Alternative/Recommendation Description
VE Alternative/Recommendation Cost Calculations
Proposed Design
Detail Findings or Analysis
Design Observations
Life Cycle Cost Analysis
o Resolution Phase
If applicable at the time of finalizing the report, documentation of resolved
recommendations.

A draft Value Engineering Study Report, including all pertinent data (as proposed and
VE alternative concepts), shall be assembled, published, and submitted electronically to
the team members and management for their review and comments within two weeks of
the study conclusion.

The content, presentation, and professional engineering certification of the final

published report are the responsibility of the VE team leader. The purpose of the
certification is to ensure that the VE study was conducted according to the principles
and practices of the value engineering profession. The professional engineer certifying
the report shall have been a team member and full participant in the VE study that is the
subject of the report.

The DVE/A and/or team leader shall attempt to resolve any issues that arise from the
draft report. If the team leader deems it necessary, the team may be contacted or re-
assembled to enhance sketches, make editorial changes, refine cost calculations, etc.
This may be needed for complex projects.

The team leader shall submit the final report to the DVE/A. The DVE/A will distribute the
report to the Project Manager, District Design Engineer, District Estimates Engineer
(preliminary), Director of Transportation Development, Director of Operations, and
District Secretary. As directed by District Management, the report can be made
available to appropriate authorities.
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4. RESOLUTION
The DVE/A shall be responsible for obtaining resolution on the proposed VE
recommendations. The DVE/A shall have the responsibility to monitor and report on all
recommendations in the resolution process. The DVE/A must be aware of the progress
of time critical recommendations and report to management as problems arise or delays
occur. The DVE/A recommendation monitoring shall end upon
management resolution of each recommendation. The DVE/A should distribute the
recommendation resolutions to the VE team.

The Project Manager will be responsible for implementing any approved

recommendations, including the modification of project reports, plans, and
documentation. Final project savings or cost avoidance shall be calculated based on
actual team recommendations or modified recommendations approved by District
Management.

5. REPORTING

The SVE shall be responsible for monitoring program compliance and reporting to
Central Office and District Management. Value engineering operations will be monitored
for compliance with the policies, procedures, and standards identified in the preceding
sections. Specific areas to be monitored include:

District Value Engineering Work Plan and Schedule.

District Value Engineering accomplishments.
Documentation of value engineering activities.
Compliance with the provisions of the value engineering procedures.

policy, Topic
001-260-001, and may include the following:

Visits with district personnel.

Periodic participation in value engineering team meetings.
Attending VE team presentations.
Formal program review of all records and VE study reports.

The basis for most reporting will be information contained in the Value Engineering
Reporting (VER) System. The Districts are responsible for the initial input and updating
of the study information including uploading final VE reports and documenting VE
recommendation resolution. The SVE is responsible for reporting and disseminating the
results throughout the Department.

The SVE will prepare a monthly performance report detailing the progress made during
the current fiscal year. This report will be included as part of the Monthly
Performance Report and will reflect the program accomplishments for the fiscal year.
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6. VALUE ENGINEERING RECOGNITION AWARDS

6.1 DISTRICT RECOGNITION

AWARD: Inscribed Plaque. Total value up to $100.

FREQUENCY: Awarded annually

QUALIFICATIONS: Presented to a District in recognition of excellent value engineering

program performance as demonstrated by established performance measures.

DOCUMENTATION: Value Engineering Annual Report, Value Engineering Reporting

System and Value Engineering Project Files.

TIME FRAME: The State Value Engineer will process for presentation by the last
workday in August.

6.2 TEAM RECOGNITION

AWARD: Identified within each category.

FREQUENCY: Awarded annually in each category.

QUALIFICATIONS: There are two award categories at this level:

1. District Team of the Year A team that most notably demonstrates the
utilization of the value engineering team process, exemplifying a thorough
understanding of the tools and techniques of the process. Consideration
will be given to implemented recommendations that lead to measurable
gains in productivity, cost savings, or other project improvement
opportunities. Each team member shall receive a certificate.

2. Statewide Team of the Year The District or Central Office Value

Engineering team, identified by Central Office Quality Assurance Section,
as exemplifying a thorough understanding of the tools and techniques of
Value Engineering. Consideration will be given to implemented
recommendations that lead to measurable gains in productivity, cost
savings or other project improvement opportunities. Each team member
shall receive a certificate.

Presented to value engineering teams in recognition of their respective superior

performance within the fiscal year.

DOCUMENTATION: Supportive information from the VER System and the Value
Engineering Project File.
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TIME FRAME: The DVE/A must submit the District Team of the Year recommendation
and supporting data to Central Office Quality Assurance Section by the last workday in
July. Central Office Quality Assurance Section will select the Statewide Team of the
Year from the District submissions and process for presentation by the last workday in
August.

6.3 PROCUREMENT OF AWARDS

Awards must be purchased and tracked in accordance with

Employee Recognition Program Procedure, Topic No. 250-000-007.

7. TRAINING

Team member training can be satisfied by participating on a team led by a CVS, the
DVE/A, or by completing team member training offered by Central Office. Central Office
will also offer training in the following areas on an as needed basis: team leader
training, life cycle cost analysis, and advanced value techniques.

8. FORMS

None