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Missouri Department of Transportation

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Value Engineering Program 

 

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

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Missouri Department of Transportation
Central Office
105 W. Capitol Avenue
Jefferson City, MO 65102
1-888-ASK-MODOT (275-6636)
1-866-831-6277 (Motor Carrier Services)
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