ML20141J337

Responds to Requesting Info on NRC Value Engineering Program & Informs That NRC Has Not Identified Any Project That Provide Opportunity for Value Engineering Saving

ML20141J337
Person / Time
Issue date:	05/09/1997
From:	Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM)
To:	Kyl J SENATE
References
NUDOCS 9705280038
Download: ML20141J337 (1)

Text

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f May 9, 1997 CHAIRMAN The Honorable Jon Ky1 United States Senate Washington, D.C.

20510-0304

Dear Senator Kyl:

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I am responding to your April 7,1997, letter in which you request information on the Nuclear Regulatory Commission's value engineering program.

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In July 1994, we established a Value Engineering Review Team as well as procedures and guidelines to ensure that NRC makes use of value engineering as a management tool. Under these procedures, our program offices consider the potential for value engineering savings during the early planning stages of the procuremant process.

Because NRC procures pri:' c-ily commercial products, research, r.::d angineering expertise in support of its regulatory mission, we have nqt icern.ified any projects that provide an opportunity for value engineering s:.*ings.

NRC's Office of the Inspector General (0IG) conducted a review of NRC's implementation of value engineering in September 1996. OIG found that NRC has developed policies and procedures which meet the requirements of Office of Management and Budget (OMB) Circular A-131. OIG also noted that OMB is plannino t o revise Circular A-131.

In this regard, a member of our contract policy Jf is currently serving on a value engineering task group sponsored by OMB which will be making recommendations for revisions to the Federal Acquisition Regulation (FAR). We expect that this task group will develop revisions which will enhance NRC's opportunity for value engineering savings.

NRC recognizes the importance of value engineering as a cost saving measure and we look forward to OMB's revised guidance in this area. We will continue to review cur procurement actions to determine if value engineering is feasible during the early stages of project development.

I trust this reply responds to your request.

Sincerely, b

L Shirley Ann Jackson i

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