| Transportation providers, who face finite budgets and increasing demands for service and quality, must find innovative and cost-effective solutions for the construction, operation and maintenance of improved transportation systems.
Highway and transportation departments saved U.S. taxpayers more than $845 million in 1999 by applying the value methodology (also called value engineering, value analysis or value management). Transportation agencies around the world employ the value methodology to benefit transportation providers, travelers and taxpayers by:
- Reducing project construction costs
- Decreasing operation and maintenance costs
- Reducing paperwork
- Simplifying procedures
- Improving project schedules
- Reducing waste
- Increasing procurement efficiency
- Using resources more effectively
- Developing innovative solutions
- Meeting federal and state laws requiring VM
"Value engineering demonstrates President Clinton's commitment to commonsense government. Federal programs like this allow [the U.S. Department of Transportation] to work with state and local governments to build roads that are safe, to stretch the buying power of federal dollars and, in some cases, to complete roadway projects ahead of schedule. ... Value engineering is beginning to pay off literally, and states that have developed active programs are finding the results well worth the investment."
- Rodney E. Slater, U.S Secretary of Transportation
U.S. highway and transportation departments saved taxpayers a record amount in 1999 by implementing the value methodology on federally funded highway projects. State and federal transportation agencies completed 385 VM studies in 1999. The studies produced more than $845 million in cost savings - the largest in the program's history.
"Aside from the cost savings generated, the value engineering process fostered a greater understanding of the project goals and the need for systems integration among the members of the design team. The inclusion of a member of the end-user group on the VE team helped them examine operational concerns for the base design and the potential alternatives, and gave the users a much clearer understanding of what they were getting.
- Kelly Giblin, New Jersey Department of Transportation
Value methodology savings enables states to get more value from their highway-construction dollars because the value savings remain with the states for use on other projects. State transportation departments spent $7.5 million to administer VM programs and realized a return on investment of $113 for every dollar spent.
The U.S. highway industry has employed the methodology for more than 20 years. A 1995 congressional mandate requires a VM study on all federal-aid projects of $25 million or more.
|
