Value Engineering: Getting Federal Projects Back on Track

If you’ve worked on large federal projects, you know how easy it is for them to slip off track; budgets creep up, timelines stretch out, and before long, the project is way outside the original budget and schedule. It’s a challenge the industry knows well, but the good news is there’s a tried-and-true solution that’s getting fresh attention: Value Engineering (VE).

Value Engineering isn’t new. For decades, federal agencies and contractors used structured trade-off analyses to weigh different options (e.g., find a less costly material, rethink a construction sequence, rework a design), all with the goal of getting the best function for the least cost. At its core, that’s the whole idea behind Value Engineering: maximize function performance while minimizing resources.

But somewhere along the way this disciplined approach started to slip. Faced with tough deadlines and mounting pressure to “get it done,” many teams let formal value studies fall by the wayside. The result? Projects moved faster upfront but often paid the price later with costly redesigns and schedule overruns. Now, that’s starting to change—and not a moment too soon.

The Industry’s Renewed Focus on Value

Today, value engineering is making a comeback. It’s not just a best practice but a mandated requirement for federal capital projects. In May 2025, the Department of Energy’s National Nuclear Security Administration (NNSA) issued a supplemental directive that makes Value Management (VM), including VE, a formal requirement on all capital projects. Aligned with DOE Order 413.3, the new directive underscores that federal project teams must apply value-focused thinking early in the project lifecycle, no later than conceptual design.

It also reinforces the classic formula for value:

Value = Function Performance

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This isn’t just good practice; it’s backed by federal law under 41 U.S.C. 1711, which mandates VE as a management tool to cut life-cycle costs without sacrificing performance. NNSA is pushing for more than compliance and they’re calling for a cultural shift where project teams regularly ask the question: Are we getting the best value out of the dollars and time we’re investing?

It’s important to note that the directive goes a step further by tying VE to contracts and encouraging the use of Value Engineering Change Proposals (VECPs). This creates financial incentives for contractors to suggest better, cheaper, and faster ways to deliver on the project’s mission without compromising quality or safety. It’s a smart way to ensure value thinking stays front and center, from initial planning all the way through delivery.

Why Value Engineering Matters Now

Let’s be honest: federal projects aren’t getting simpler. Between advancing technologies, evolving safety standards, and tighter fiscal oversight, the pressure to do more with less has never been greater. That’s why returning to a disciplined VE process is so important. It forces project teams to pause, rethink, and innovate, not just during emergencies, but proactively when changes are still easy and affordable.

The benefits go beyond saving money. A well-run VE study can uncover better design approaches, safer construction methods, and even faster ways to meet regulatory milestones. It’s about making sure every element of a project is pulling its weight toward delivering the required function at the best possible value.

And timing matters. By focusing VE efforts early, at or before conceptual design, teams have a much better shot at shaping the project in ways that avoid costly rework down the road. In short, VE isn’t just about cutting costs; it’s about making smarter decisions when they matter most.

How Management Solutions is Leading the Charge

At Management Solutions, LLC, we’ve seen firsthand how value-focused thinking can change the trajectory of a project. With more than 23 years of experience supporting DOE, NNSA, USACE, and other federal agencies, we’ve managed over $36 billion in project spend across some of the nation’s most complex and mission-critical programs. Our portfolio spans major DOE nuclear security initiatives and USACE infrastructure endeavors, giving us broad insight into where projects tend to incur waste or inefficiency.

We’ve built a reputation for excellence in project controls, cost estimating, scheduling, risk management, and these skills form the backbone of a strong value engineering approach. We know where projects tend to veer off course, and we know how to realign them.

Our history includes supporting 80% of DOE’s national laboratories, giving us deep insight into the unique demands of high-consequence federal projects. We’ve earned “Exceptional” CPARS ratings across multiple contracts and were recently recognized as DOE’s 2024 Woman-Owned Small Business of the Year for our work driving efficiencies at Los Alamos National Laboratory.

And we’re not just resting on past success. We’re actively aligning our services with SAVE International’s standards and building teams of certified value specialists trained to lead VE workshops that deliver real, actionable results.

Real-World Impact: Experience Across DOE Complex Projects

Our team has applied value engineering principles on some of the most complex capital projects across the DOE and NNSA landscape, from major facility construction to large-scale modernization efforts. Over the years, we’ve worked alongside federal project directors, program managers, and technical teams to lead structured VE studies that have identified better ways to meet mission requirements while managing costs, reducing schedule risk, and improving long-term maintainability.

Whether analyzing alternative construction approaches, evaluating equipment sourcing options, or reassessing process designs, these value studies have consistently surfaced practical, data-supported recommendations that help bring projects back within their target cost and schedule parameters. Importantly, this isn’t theory. We’ve seen how a disciplined value engineering approach can create meaningful opportunities even in highly regulated, safety-critical environments like nuclear security and environmental management.

This DOE-wide experience allows Management Solutions to bring cross-project insight into every new Value Engineering study, identifying patterns, benchmarking alternatives, and applying lessons learned from years of hands-on involvement in DOE’s capital asset portfolio. That perspective becomes even more valuable now, as agencies refocus on value management as a formal requirement.

A Better Way Forward

In the end, value engineering isn’t about cutting corners, it’s about making sure every dollar and every day invested in a project is working as hard as possible toward the mission. It’s about getting projects back inside the swim lanes—on time, on budget, and built to last.

At Management Solutions, we believe Value Engineering is more than a compliance exercise. It’s a mindset that we’ve built into the way we work with our clients every day. As federal agencies push for better value across their portfolios, we’re ready to help lead the way with the right tools, the right people, and the right approach to deliver real, measurable results.