FAR clauses/Part 48/Checked 15 Sep 2026
FAR 52.248-1
Value Engineering
- Clause date
- JUN 2020
- Prescribed at
- FAR 48.201(b). Insert in solicitations and contracts, to provide an incentive, when the contract amount is expected to exceed the SAT, except for the exclusions in 48.201(a) (such as R&D other than full-scale development, personal services, and certain commercial products) and A-E contracts covered by 48.201(f); Alternates I and II add a mandatory value engineering program, and Alternate III applies when computing collateral savings would not be cost-effective.
- Applies to
- Supply and service contracts above the SAT not excluded by 48.201(a).
- Flowdown
- Flows down in some subcontracts
52.248-1(l) requires an appropriate value engineering clause in any subcontract valued at or above the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, and permits one in subcontracts of lesser value. It is not listed in 52.244-6(c)(1) or 52.212-5(e)(1). - Full text
- FAR 52.248-1 on Acquisition.gov
… The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP's) voluntarily. The Contractor shall share in any net acquisition savings realized from accepted VECP's, in accordance with the incentive sharing rates in paragraph (f) …
From the clause · Codified FAR · FAC 2026-01
Why it matters: Proposals are voluntary under the basic clause, but the contractor's share depends on the Government accepting the proposal, and subcontractor incentive payments may not reduce the Government's share of savings.
This is the codified text, not any agency's Revolutionary FAR Overhaul deviation. An agency running a class deviation may have this clause renumbered, rewritten or prescribed differently — check the deviation before you put a clause in a solicitation.
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