Purpose The purpose of the program is to assure the public receives optimum value for every tax dollar invested in their transportation system. The Value Engineering technique is used to improve the department's productivity. Policy FHWA requires a value engineering study for all projects that exceed 25 million dollars and Bridge projects that exceed 20 million dollars. The department has a policy to study projects that exceed 10 million dollars. History The program began in Federal Fiscal Year (October 1st to September 30th) 1988. That year ten (10) projects under design were studied, with an estimated construction cost savings of $8.8 million. During that year 48 employees were trained in value engineering concepts. Including that first year and through Federal fiscal Year 2007, 229 value engineering studies have been completed with an estimated cost savings of almost $330 million. Construction VE Beginning in late 1989 (Federal Fiscal Year 1990) the department added a construction value engineering program. Contractors submit Value Engineering Change Proposals (VECP'S) for department review and approval. If accepted, the contractor and the department share the total savings on a 50/50 basis. Beginning in 2007, contractors can submit VE/Practical Design Underruns (VE/PDU's).  If accepted, VE/PDU savings are split 25% Contractor/75% MoDOT.  VE/PDU's typically consist of an existing feature that could remain a part of the final project, for example, exisiting pavement, an existing pipe, etc. See file below for a summary of the Federal Fiscal Year 2007 Construction VECP's and VE/PDU's. Summary of FFY 2007 Construction VE's Program Summary

Federal F.Y. No. of Studies Design Phase Savings Construction Phase Savings Department Cost Return on Investment 1988 10 $8,800,000 $0 $49,000 180 1989 11 $3,200,000 $0 $125,000 26 1990 7 $8,100,000 $104,000 $65,000 126 1991 5 $6,800,000 $252,000 $92,000 77 1992 3 $5,900,000 $175,000 $73,000 83 1993 12 $4,100,000 $561,000 $147,000 32 1994 14 $13,000,000 $762,000 $164,000 84 1995 14 $6,200,000 $557,000 $165,000 41 1996 19 $13,100,000 $1,481,000 $245,000 60 1997 17 $7,620,000 $380,396 $159,411 50 1998 11 $12,190,000 $476,355 $146,976 86 1999 15 $2,700,000 $250,981 $249,272 12 2000 17 $9,645,000 $653,543 $278,239 37 2001 15 $17,300,000 $654,000 $179,288 100 2002 6 $37,000,000 $1,300,000 $119,950 319 2003 4 $13,900,000 $174,486 $52,160 270 2004 5 $8,060,000 $740,098 $66,928 131 2005 8 $59,929,000 $791,047 $104,353 582 2006 24 $39,786,000 $3,269,933 $194,939 221 2007 12 $52,348,000 $4,170,000 $82,309 687 Totals 229 $329,678,000 $16,752,839 $2,758,825 126

During the life of this program, the department has documented savings totaling over $330 million at a cost of less than $3 million; a rate of return of $126 for every $1 invested.

Awards and Recognition: * 1997 FHWA Value Engineering Outstanding Achievement Award * 1997 AASHTO VE Award for Most Innovative VE, ie., The Grandview Triangle. * 1999 AASHTO VE Award for Most Innovative VE Process, ie., Traffic Communication Systems