Innovation of the Procurement of Social Services

through Value Engineering: The Dutch case

authors: Analucia Jaramillo1 and Songul Mutluer2

The paper supports from a theoretical perspective the use of Value Engineering as an innovation
incentive mechanism for the procurement of social services. The scope of the discussion will explain
why there is a need to review the traditional procurement of contracts specifically for home care and
household services for the elderly or mentally or physically disabled in the Netherlands. The study will
present actual facts regarding the procurement of these services, and a proposal for the application of
Value Engineering which will be analysed within the legal framework of the Dutch Social Support Act of
2015, that introduces the need of efficiency and best value, and the European Public Procurement
Directives of 2014.

1. INTRODUCTION
The Social Support Act (Wmo) in the Netherlands connects to a political discourse of active
citizenship. It resembles the current European political interpretation of citizenship: stressing selfresponsibility for the personal life, fighting against a presumed over invasive welfare state and implying
a shared responsibility of government and civil society in the care and welfare for vulnerable groups.3
The Social Support Act was introduced in 2007 and was modified in 2015. With this Act
municipalities were made responsible for the care for the elderly, the youth and people with physical,
psychological, intellectual or psychosocial disabilities or problems. This was one of the most important
operations (called decentralization) in the last decade involving more than 27 billion Euro on an annual
basis. This involved not only the transfer of duties and resources, but also the fact that the
municipalities were required to work in an even more integral way in the social domain.4 The purpose of
this operation was to bring care closer to the citizens, make them able to participate in the society and
at the same time reduce the costs involved with this care. Not only did the decentralization involved a
lot of money, but it also affected profoundly the weakest and most vulnerable groups in our society.
Another important reform made, involved the legal framework for the care services. Coming from a
system of mainly subsidies (central government) it shifted to a system of predominantly public
procurement in local government (municipalities). By introducing competition into the service provision
of public services, the authorities wanted to attain lower prices for a better quality. Lastly, the legal
claim of citizens changed: from a direct legal claim to care services it moved to a claim on what
support is needed to be able to function as a person. The latter being open to more debate than the
first.
The urge to reinvent the wheel in the Dutch practice is tangible. There is no existing process and
infrastructure of instruments available to the communities. The number of care providers is very large
and they are not very well equipped to the tendering process (as they only have been subsidized in the
Ana Lucia Jaramillo Villacis, LLM is a Senior Legal Researcher at Corvers Procurement Services B.V. and a Ph.D
student at the University of Leiden in the Netherlands. She is conducting research on the regulation of end user
innovation.
2
Songul Mutluer, LLM is Lawyer at Regional Joint Procurement Agency IJmond Kennemerland (RIJK) and lecturer
and researcher at the Department of Private Law, VU University of Amsterdam. Her interests are in Contract Law
and Public Procurement Law. She is currently preparing a Ph.D. thesis on unfair terms in contracts that are
conluded following EU regulated tendering procedures.
3 Vasco Lub, Matthijs Uyterlinde & Liesbeth Schotanus, The paradoxical policies of the Social Support Act in the
Netherlands, Conference paper Rethinking Global Society (Renewing Politics and Civil Society), The Bauman
Institute, International Launch Conference, University of Leeds 6th 7th September 2010.
4 National Social Report 2014 (Netherlands), p. 2-3.
1

past). Lastly, fundamental knowledge about the clients, the care process and logistics within the
communities is in its infancy stage.
This challenge requires a different approach to normal public procurement. It requires much more to
focus on the following issues:
-

More collaboration with market entities (care service providers), as there is knowledge
asymmetry and the services are hard to define;
More focus on outcome, instead of input/throughput. The care provided concerns extremely
vulnerable groups that may never be subject to the setting of incorrect market incentives.
Processes and instruments need to be developed fast, as the transition is already in place.
Transformation is needed as resources are (due to considerable budget cuts) limited.
Expectations are that the groups of clients will grow over the years. If the resources are depleted
the care can no longer be provided. Continuous innovation is therefore the key.

In order to meet the abovementioned challenge we will research the methodology of Value
Engineering for the different care contracts in this paper. This methodology is normally being used in
infrastructure projects, but we believe that this methodology has also an added value for the social
domain because of its function-based approach. Value Engineering offers incentives and possibilities to
care service providers to suggest and implement innovative ideas and technologies. It enables them to
come up with state of the art solutions. Value Engineering also enables us to link the sourcing phase
with the contract execution phase. The design of the tender is to be as open as possible for market
initiatives, based on functional requirements. In the contract execution stage a cycle of continuous
improvement is implemented. This in order to achieve an optimal catalytic process across the contract
cycle of sourcing/contract execution.
This paper gives in the first place a general overview of the legal landscape laid down by the new
European public procurement Directives on innovation, the specific regime for social services, the use
of framework agreements and mini competition, the conditions for performance and the modifications
of contracts during their term. The second part consists of the definition of Value engineering as a
methodology. The third part gives some considerations to implement Value engineering in the
procurement of social services for the care of the elderly, the youth and people with physical,
psychological, intellectual or psychosocial disabilities or problems, in the light of the European public
procurement Directives. The fourth part provides some conclusions and recommendations to
implement a pilot project for the procurement of social services and the use of a Value engineering
clause.
2. Social innovation in the European public procurement framework
Innovation is defined as the implementation of a new or significantly improved product, service or
process, including but not limited to production, building or construction processes, a new marketing
method, or a new organisational method in business practices, workplace organisation or external
relations inter alia with the purpose of helping to solve societal challenges or to support the Europe
2020 strategy for smart, sustainable and inclusive growth.5
Social innovation is considered among the main drivers of future growth at the centre of the Europe
2020 strategy for smart, sustainable and inclusive growth. Public authorities are encouraged to make
the best strategic use of public procurement to spur innovation and to keep in mind that buying
innovative products, works and services plays a key role in improving the efficiency and quality of public
services while addressing major societal challenges. This contributes to achieving best value for public
money as well as wider economic, environmental and societal benefits in terms of generating new
ideas, translating them into innovative products and services and thus promoting sustainable economic
growth. Because of the importance of innovation, contracting authorities are also encouraged to allow
variants as often as possible, and therefore to define the minimum requirements to be met by variants

Article 1.1 (22) Directive 2014/24/EU and Article 2 (18) Directive 2014/25/EU.
2

before indicating that variants may be submitted.6 The purpose of variant bids, setting beforehand clear
and precise criteria to evaluate them, is to look for creative solutions that deliver innovation and
enhance value for money.
This strategic vision has been embedded in the new Directives governing European public
procurement adopted on 26th February 2014 by the European Parliament and the Council of the
European Union. The new Directive 2014/23/EU on the award of concession contracts, Directive
2014/24/EU on public procurement and Directive 2014/25/EU on procurement by entities operating
in the water, energy, transport and postal services sectors, replace the earlier ones, 2004/18/EC,
2004/17/EC and 2009/81/EC. The EU Member States must transpose these new rules into their
national legislation by 18 April 2016.7 In the Netherlands the implementeation of the rules into the
national legislation will be completed by 1 July 2016.
In particular, Directive 2014/24/EU on public procurement is relevant to the scope and purpose of
the procurement of social services to the person referred in this paper.
2.1. Specific regime for social services
Services to the person, such as certain social, health and educational services, due to their
nature and the particular context and cultural tradition, are considered to have a limited cross-border
dimension. Therefore, these services have a specific regime with a higher threshold8 than that which
applies to other services (EUR 750.000). Those contracts for services to the person above that
threshold are subject to Union-wide transparency.
Because of the cultural context and the sensitivity of social services, Member States are given
wide discretion to organise the choice of the service providers in the way they consider most
appropriate. However, they must observe the basic principles of transparency and equal treatment, and
make sure that contracting authorities are able to apply specific quality criteria for the choice of service
providers, such as the criteria set out in the voluntary European Quality Framework for Social Services,
published by the Social Protection Committee.9
The award of contracts for social and other specific services, including community, social and
personal services, where the value of the contract is equal to or greater than the threshold, require that
contracting authorities make known their intention by a contract notice in a standard form, or by a prior
information notice referring to the types of services that will be subject to the contracts to be awarded
indicating that the contracts will be awarded without further publication and invite interested economic

Recitals 47 and 48 in Directive 2014/24/EU of the European Parliament and of the Council of 26 February
2014 on Public Procurement and repealing Directive 2004/18/EC. Official Journal of the European. L 94/65.
28.3.2014.
7 According to Article 90 of Directive 2014/24/EU, Member States shall bring into force the laws, regulations and
administrative provisions necessary to comply with this Directive by 18 April 2016.
8 See applicable thresholds in: http://ec.europa.eu/growth/single-market/public-procurement/rulesimplementation/index_en.htm#t1
9 Recital 114 of Directive 2014/24/EU. Member States should take Article 14 TFEU and Protocol No 26 into
account when determining the procedures to be used for the award of contracts for services to the person. In so
doing, Member States should also pursue the objectives of simplification and of alleviating the administrative
burden for contracting authorities and economic operators, this might entail relying on rules applicable to service
contracts not subject to the specific regime. Member States and public authorities remain free to provide those
services themselves or to organise social services in a way that does not entail the conclusion of public contracts,
for example through the mere financing of such services or by granting licences or authorisations to all economic
operators meeting the conditions established beforehand by the contracting authority, without any limits or
quotas, provided that such a system ensures sufficient advertising and complies with the principles of
transparency and non-discrimination.
3
6

operators to express their interest in writing.10 The results of the procurement procedure should be
make known by means of a contract award notice using standard forms.11
The publication of a contract notice is not required in case that a negotiated procedure without
prior publication is used in conformity with Article 32 for the award of a public service contract in three
specific situations: (a) where no tenders or no suitable tenders or no requests to participate or no
suitable requests to participate12 have been submitted in response to an open procedure or a restricted
procedure, provided that the initial conditions of the contract are not substantially altered and that a
report is sent to the European Commission where it so requests; (b) where the services can be supplied
only by a particular economic operator13; or (c) in so far as is strictly necessary where, for reasons of
extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for
the open or restricted procedures or competitive procedures with negotiation cannot be complied with.
The circumstances invoked to justify extreme urgency shall not in any event be attributable to the
contracting authority.
The negotiated procedure without prior publication may be used for new services consisting in
the repetition of similar services entrusted to the economic operator to which the same contracting
authorities awarded an original contract, provided that such works or services are in conformity with a
basic project for which the original contract was awarded pursuant to a procedure in accordance with
Article 26(1) requiring a call for competition.14 The basic project should indicate the extent of possible
additional services and the conditions under which they will be awarded.15 This procedure may be used
only during the three years following the conclusion of the original contract.
The contracting authority is within the framework of the Directives free to use the methodology of its
choice with regard to purchasing specific social services.
2.3. The use of framework agreements and mini competition
A framework agreement has proven itself as an agreement which is suitable for specific social
services. A framework agreement is an agreement between one or more contracting authorities and
one or more economic operators, the purpose of which is to establish the terms governing contracts to
be awarded during a given period, in particular with regard to price and, where appropriate, the quantity
envisaged. The term of a framework agreement can only exceed four years in exceptional cases duly
justified.16
The instrument of framework agreements is considered as an efficient procurement technique
for social services where all the contracting authorities are clearly identified, it is not open to entry of
Articles 74 and 75 of Directive 2014/24/EU.
The notice should contain the information referred to in Annex V Part J of Directive 2014/24/EU, in accordance
with the standard forms referred to in Article 51. Contracting authorities can group the notices on a quarterly
basis, within 30 days of the end of each quarter.
12 A tender shall be considered not to be suitable where it is irrelevant to the contract, being manifestly incapable,
without substantial changes, of meeting the contracting authoritys needs and requirements as specified in the
procurement documents. A request for participation shall be considered not to be suitable where the economic
operator concerned is to be or may be excluded pursuant to Article 57 or does not meet the selection criteria set
out by the contracting authority pursuant to Article 58 of Directive 2014/24/EU.
13According to Article 32 of Directive 2014/24/EU the services can be provided only by a particular operator for
any of the following reasons: i) the aim of the procurement is the creation or acquisition of a unique work of art or
artistic performance; (ii) competition is absent for technical reasons; (iii) the protection of exclusive rights,
including intellectual property rights. The exceptions set out in points (ii) and (iii) shall only apply when no
reasonable alternative or substitute exists and the absence of competition is not the result of an artificial
narrowing down of the parameters of the procurement.
14 According to Article 26(1) of Directive 2014/24/EU, when awarding public contracts, contracting authorities
shall apply the national procedures adjusted to be in conformity with that Directive, provided that, without
prejudice to Article 32, a call for competition has been published in accordance with that Directive.
15 According to Article 32 of Directive 2014/24/EU, as soon as the first project is put up for tender, the possible
use of this procedure shall be disclosed and the total estimated cost of subsequent services shall be taken into
consideration by the contracting authorities when they apply Article 4 on the threshold amount.
16 Article 33, Directive 2014/24/EU.
4
10
11

new economic operators once it has been concluded. Contracting authorities have additional flexibility
when procuring under framework agreements, which are concluded with more than one economic
operator. They are allowed to obtain specific works, supplies or services, that are covered by the
framework agreement either requiring them from one of the economic operators, determined in
accordance with objective criteria and on terms already set out, or by awarding a specific contract for
the works, supplies or services concerned following a mini-competition among the economic operators
parties to the framework agreement.17
In order to ensure transparency and equal treatment, contracting authorities indicate in the
procurement documents for the framework agreement the objective criteria that will govern the choice
between those two methods of performing the framework agreement. Such criteria often relate to the
quantity, value or characteristics of the works, supplies or services concerned including the need for a
higher degree of service or an increased security level, or to developments in price levels compared to a
predetermined price index.
The contracts based on a framework agreement are awarded before the end of the term of the
framework agreement, but the duration of the individual contracts based on a framework agreement
does not need to coincide with the duration of that framework agreement, being as appropriate, shorter
or longer. The length of individual contracts based on a framework agreement take account factors
such as the time needed for their performance, maintenance of equipment with an expected useful life
of more than four years, or the need of extensive training of staff to perform the contract.
Contracts based on a framework agreement entail however under no circumstances substantial
modifications to the terms laid down in that framework agreement, in particular where a framework
agreement is concluded with a single economic operator.18 In practice, the agreement for social
services for the care of the elderly, the youth and people with physical, psychological, intellectual or
psychosocial disabilities or problems, would be concluded with more than one economic operator and
allow mini-competitions.

2.4. Conditions for performance and modifications of contracts during their term
The European Public Procurement Directives allow contracting authorities to lay down special
conditions relating to the performance of a contract, and to modify the contracts or framework
agreements during their execution. This opens the possibility to incorporate an incentive to innovate
through the application of a Value engineering clause that may result in modifications to the contract.
The special conditions relating to the performance of a contract should be linked to the subjectmatter of the contract19 and indicated in the call for competition or in the procurement documents.
Those conditions may include economic, innovation-related, environmental, social or employmentrelated considerations.20
Contracts and framework agreements may be modified during their term without a new
procurement procedure21 in the following cases22:
Recital 60, Directive 2014/24/EU.
Recital 62 and Article 33 num. 2 and 3, Directive 2014/24/EU. For a definition of substantial modifications
see in 1.4. modifications of contracs during their term.
19 Article 67(3) of Directive 2014/24/EU establishes that award criteria shall be considered to be linked to the
subject-matter of the public contract where they relate to the works, supplies or services to be provided under that
contract in any respect and at any stage of their life cycle, including factors involved in: (a) the specific process of
production, provision or trading of those works, supplies or services; or (b) a specific process for another stage of
their life cycle, even where such factors do not form part of their material substance.
20 Article 70, Directive 2014/24/EU.
21 According to the relevant case-law of the Court of Justice of the European Union, a new procurement procedure
is required in case of material changes to the initial contract, in particular to the scope and content of the mutual
rights and obligations of the parties, including the distribution of intellectual property rights. Such changes
demonstrate the parties intention to renegotiate essential terms or conditions of that contract. This is the case in
particular if the amended conditions would have had an influence on the outcome of the procedure, had they
5
17
18

a) where the modifications, irrespective of their monetary value, have been provided for in the
initial procurement documents in clear, precise and unequivocal review clauses, which may
include price revision clauses, or options. Such clauses shall state the scope and nature of
possible modifications or options as well as the conditions under which they may be used. They
shall not provide for modifications or options that would alter the overall nature of the contract
or the framework agreement;
b) for additional works, services or supplies by the original contractor that have become necessary
and that were not included in the initial procurement if the change of contractor cannot be
made due to technical reasons and the costs are not higher than a 50% of the value of the
original contract;23
c) where the need for modification results of unforeseen circumstances, the modification does not
alter the overall nature of the contract and any increase in price is not higher than 50 % of the
value of the original contract or framework agreement; 24
d) where a new contractor replaces the one to which the contracting authority had initially awarded
the contract as a consequence of specific circumstances;25
e) where the modifications, irrespective of their value, are not substantial.
The Value engineering clause would qualify in the first case if it has been provided for in the initial
procurement documents in clear, precise and unequivocal manner.

been part of the initial procedure. See recital 107 of Directive 2014/24/EU and recital 113 of Directive
2014/25/EU, and the cases: C-496/99 P Commission v. CAS Succhi di Fruti on the principles of transparency and
equal treatment establishing that all the conditions and detailed rules of the award procedure must be drawn up
in a clear, precise and unequivocal manner in the notice or contract documents so that, first, all reasonably
informed tenderers exercising ordinary care can understand their exact significance and interpret them in the
same way and, secondly, the contracting authority is able to ascertain whether the tenders submitted satisfy the
criteria applying to the relevant contract. C-337/98 Commission v. France where the Court stated that
amendments to the provisions of a public contract during the currency of the contract constitute a new award of a
contract when they are materially different in character from the original contract and, therefore, such as to
demonstrate the intention of the parties to renegotiate the essential terms of that contract. C-454/06 Pressetext
Nachrichtenagentur GmbH v. Republik sterreich establishing that an amendment to a public contract during its
currency may be regarded as material when: (i) it introduces conditions which, had they been part of the initial
award procedure, would have allowed for the admission of tenderers other than those initially admitted or would
have allowed for the acceptance of a tenderer other than the one initially accepted; (ii) when it extends the scope
of the contract considerably to encompass services not initially covered, and (iii) when it changes the economic
balance of the contract in favour of the contractor in a manner which was not provided for in the terms of the
initial contract.
22 Article 72.1 of Directive 2014/24/EU and Article 89.1 of Directive 2014/25/EU.
23 See all conditions in Article 72.1 (b) of Directive 2014/24/EU and Article 89.1 (b) of Directive 2014/25/EU.
Contracting authorities having modified a contract in the case set out under point (b) shall publish a notice to in
the Official Journal of the European Union. The notice must contain the information set out in Annex V part G and
be published in accordance with Article 51 of Directive 2014/24/EU and Article 71 in case of Directive
2014/25/EU.
24 See conditions in Article 72.1 (c) of Directive 2014/24/EU, and Article 89.1 (c) of Directive 2014/25/EU.
Contracting authorities having modified a contract in the case set out under point (c) shall publish a notice to in
the Official Journal of the European Union. The notice must contain the information set out in Annex V part G and
be published in accordance with Article 51 of Directive 2014/24/EU and Article 71 in case of Directive
2014/25/EU.
25 See conditions in Article 72.1 (d) of Directive 2014/24/EU and Article 89.1 (d) of Directive 2014/25/EU. As a
consequence of either: (i) an unequivocal review clause or option in conformity with point (a); (ii) universal or
partial succession into the position of the initial contractor, following corporate restructuring, including takeover,
merger, acquisition or insolvency, of another economic operator that fulfils the criteria for qualitative selection
initially established provided that this does not entail other substantial modifications to the contract and is not
aimed at circumventing the application of this Directive; or (iii) in the event that the contracting authority itself
assumes the main contractors obligations towards its subcontractors where this possibility is provided for under
national legislation.
6

Contracts may equally be modified without a new procurement procedure where the value of the
modification is below both the thresholds and 10 % of the initial contract value for service and supply
contracts and below 15 % of the initial contract value for works contracts. In this case, it is not
necessary to verify the conditions of a substantial modification.26
A modification of a contract or a framework agreement during its term is considered substantial
where it renders the contract or the framework agreement materially different in character from the one
initially concluded. A modification is substantial where one or more of the following conditions is met27:
a) the modification introduces conditions which, had they been part of the initial procurement
procedure, would have allowed for the admission of other candidates than those initially
selected or for the acceptance of a tender other than that originally accepted or would have
attracted additional participants in the procurement procedure;
b) the modification changes the economic balance of the contract or the framework agreement in
favour of the contractor in a manner which was not provided for in the initial contract or
framework agreement;
c) the modification extends the scope of the contract or framework agreement considerably;
d) where a new contractor replaces the one to which the contracting authority had initially awarded
the contract in other cases than those provided in specific circumstances.28
The application of a Value engineering clause may result in a change proposal which could
introduce modifications to the contract. Those changes, however, shall not fall within any of the above
mentioned conditions which entail a substantial modification of the contract.
3. Innovating social services through Value engineering
How to achieve innovation in social services, particularly those regarding the care for the elderly, the
youth and people with physical, psychological, intellectual or psychosocial disabilities or problems? One
first step is to rethink those services in terms of the essential functions and find alternatives to achieve
the support needed to enable indviduals to function as persons. considering both available
technologies and the cultural context.
From the perspective of a contracting auhtority, a suitable mechanism to accomplish the innovation
of social services to the person comprehends a good formulation of the functions to be achieved, a
system to measure outcomes using key performance indicators that reflect time, cost and quality,
having in place milestones and steps to monitoring, and providing contractual incentives to contractors
such as risk and savings sharing, in a continuous cycle of improvement and innovation.
Value engineering29 can be used to add value and achieve innovation in social services by providing
a functional analysis approach and an incentive to the contractor who would benefit from the savings of
Article 72.2 of Directive 2014/24/EU and Article 89.4 of Directive 2014/25/EU.
Article 72.4 of Directive 2014/24/EU and Article 89.4 of Directive 2014/25/EU.
28 See conditions in Article 72.1 (d) of Directive 2014/24/EU and Article 89.1 (d) of Directive 2014/25/EU. As a
consequence of either: (i) an unequivocal review clause or option in conformity with point (a); (ii) universal or
partial succession into the position of the initial contractor, following corporate restructuring, including takeover,
merger, acquisition or insolvency, of another economic operator that fulfils the criteria for qualitative selection
initially established provided that this does not entail other substantial modifications to the contract and is not
aimed at circumventing the application of this Directive; or (iii) in the event that the contracting authority itself
assumes the main contractors obligations towards its subcontractors where this possibility is provided for under
national legislation.
29 Value engineering has been extensively used in different countries. For example, in the United States, the
Federal Acquisition Regulation establishes the use of voluntary or mandatory VE clause
https://www.acquisition.gov/?q=browsefar See also: the Guide of VE best practices and tools
http://www.acq.osd.mil/se/docs/SD-24-VE-Guidebook.pdf ; the Canadian Association of Value Engineering
http://www.scav-csva.org; the Institute of Value Managament in the UK http://ivm.org.uk/about/history; the
26
27

any improvements achieved. In order to use this mechanism, Value Engineering should be included, as
a condition part of the scope of the contract and/or framework agreement, at the initial stage of the
procurement in the procurement documents, and as a clause in the contract and/or framework
agreement which establishes in a clear manner the requirement that the contractor presents a Value
Engineering change proposal which may result in modifications to the contract during its term, without
those being material or substantial in the sense of Article 72 discussed above.
The Value Engineering method proposed to assess the bottlenecks and find concrete answers to
the needs of the social domain is defined as a comprehensive, organized and systematic approach
directed at analyzing the function of systems (FAST), processes and services, in order to achieve the
essential functions at the lowest long-term and total life-cycle cost (TLC) consistent with required
performance, reliability, quality, and safety of total quality management (TQM). The implementation of
the Value Engineering process on a problem typically increases durability, effectiveness, or other
desirable characteristics. This methodology can be considered as an integral part of sustainability
analyses. 30

FAST (Functional Analysis System Technique): according to this methodology the

basic element of a system is the Function that describes the original intent or
purpose that a product, process or service expected to be performed. The
description of a Function is restricted to a two words format: Active Verb +
Measurable Name.
LT-TLC (long-term and total life-cycle performance description): creates
associations between descriptive functions and quantified performance targets. It
classifies functions and related performances along the solution life-cycle phases:
production, delivery, installation, use, management, maintenance and disposal in
order to address high long-term performance and (total life-cycle) costs as low as
possible.
TQM (Total Quality Management): is a way of thinking about goals, organizations,
processes and people to ensure that the right things are done right first time. This
thought process can change attitudes, behavior and hence results for the better.
TQM is a management approach centered on quality, based on the participation of
an organizations people and aiming at long term success. This is achieved through
customer satisfaction and benefits all members of the organization and society.
TQM is a philosophy for managing and organization in a way which enables it to
meet stakeholder needs and expectations efficiently and effectively, without
compromising ethical values.

International Society on Value Engineering http://www.value-eng.org/about.php; and the Society of Japanese

Value Engineering https://www.sjve.org/en/ve/about/ ; Rijkswaterstaat in the Netherlands:
https://www.youtube.com/watch?v=V_h9P83L1Ok) .
30 See for example: Office of Management and Budget, Value Engineering, Circular No. A-131, 21 May 1993
(available at http://www.whitehouse.gov/omb/circulars_a131) .
8

4. The implementation of the Value Engineering method

Value engineering as a process that looks for alternative ways to achieve the projects functions at
the lowest possible cost and best quality,,31 can be performed at any phase of any project. This method
of functional analysis can be translated into a contractual clause requiring from the contractor to
present periodically a proposal to add value, and to improve the key performance indicators related to
the subject-matter of a contract.
Introducing a Value engineering clause is compatible with any procurement process chosen by
contracting auhtorities in the Netherlands for the procurement of social services, provided that the EU
principles of transparency and equal treatment are complied with. This entails that the condition to use
of Value engineering should be clearly stated in the contract notice or the prior information notice, as
well as in the tender documents and the contract in the form of a Value engineering clause such as the
one proposed in point 4.4.
During the execution of the contract, the contracting authority should monitor the compliance with
the contract and evaluate the performance of the contractor vis vis key performance indicators,
resulting in a report. In particular, compliance with the Value engineering clause requires that the
contractor uses the Value engineering method to find alternatives that achieve the functions at a lower
cost, adding value. The contracting authority may accept implementing a Value engineering proposal in
accordance to Article 72 of Directive 2014/24/EU on the modification of contracts during their term, or
may decide to cancel partially or entirely the contract if the contractor fails to present the Value
engineering proposal within the established term. The savings resulting from less work or the
application of the Value engineering alternative are to be compensated.
A step by step implementation of Value engineering in the procurement of social services can be
translated in the following three phases:

Lawrence Miles, the father of Value Engineering in his book Techniques of Value Analysis and Engineering
states that establishing a value of a function is one of the techniques offered by the value analysis system.
Value means the lowest cost that would provide a function with the qualities and specifications with which the
customer wants it to operate. This value in dollars and cents then becomes a guide and measure. It indicates the
approximate cost that should be accepted for the function in decision making. See also some original
documents at Lawrence D. Miles Value Engineering Reference Center Collection:
https://minds.wisconsin.edu/handle/1793/301 https://minds.wisconsin.edu/handle/1793/5616
https://minds.wisconsin.edu/handle/1793/5616 and the Lawrence Miles Foundation
http://www.valuefoundation.org/Innovate-VM-Miles.htm
31

1. Pre procurement phase

2. Procurement phase
3. After procurement / contractual phase
4.1 Pre-procurement phase
In this phase all stakeholders and experts are invited to share their views. In a structured discussion
on the project lead by an expert, everyone can express what their demands and motivations are.
Everybody can propose all kinds of solutions for the situation. The solution with the best trade off
between function and cost is chosen in a way that everyone is satisfied wih the results.
Addressing key questions in a workshop can shade light on how the services are being provided in
the present, the actual key performance indicators, benchmarks, costs, and monitoring means. Recent
reports and the information provided by contract managers or the service providers can be useful to
determine desired outcomes and to develop a preliminar business case to be reviewed after consulting
the market.
Understanding the basics of the method of Value engineering (value analysis) contributes to the
active participation of a project team, and good contract management, in particular regarding those
obligations related to the Value engineering clause. Key aspects the Value engineering method consist
of the following:32

32

Evaluation of all functions by comparison

Value is understood as a relative measure rather than an absolute measure, therefore, a
comparison approach must be used in evaluating functions. The question of whether a function
is accomplished reliably at the best cost can only be answered by comparison. The more
complex the subject of analysis, the greater the number of comparisons necessary to make the
analysis sufficiently comprehensive to establish the best value for each function and
subfunction, its components and units. Without comparison there is no real evaluation.

The value of a function is a guide for measure

The value of a function becomes a guide for measure of approximate appropriate cost that can
be prepared by a person responsible for the work and decision making or an assisting specialist
who is skilled in using value analysis system.

Identify, separate and group functions

What functions are needed or wanted to pay for? Separate assumptions from facts to study the
problem. A clear identification of the total function then leads to the separation into major
subfuctions to accomplish to achieve the total, using then functional groups with a specific well
defined and well understood purpose. In this manner the problem is broken into a number of
specific problems to define which problem must be solved to unlock opportunities in the larger
problem. Thus, it becomes possible to start working on the right problem.

Problem-solving system
A good system has everything it needs to accomplish a function. Value engineering (analysis)
includes an array of parts to deal with specific needs. The problem-solving system includes the
parts, approaches, and actions to obtain better answers to problems more efficiently. These
should be organized into a suitable plan.

The value engineering job plan

The plan can be seen as a five-step process: (1) information surrounding the problem is secured
(what are the facts, assumptions, beliefs, where, who, when, what and why change); (2)
informatiion is analyzed for meaning and sense of direction (functions are evaluated, what are
the problems, what end result is reasonable); (3) creative work is done (with understanding and
information, various techniques can be applied, collectively exploring is more beneficial to

Based on Miles, Lawrence (1961) Techniques of Value Analysis and Engineering, McGraw Hill Co. Publishers.
10

accelerate creative activities); (4) judicial work is done (this step is performed by a decision
maker to choose the approach that shows the greatest promise by judging on the advantages
and disadvantages of a solution); and (5) suitable developmental work is done (select the best
specialists, the best suppliers for consultations, establish a program of investigation, supply
information to specialists and suppliers, work with them until they come up with alternatives).

Utilice good guidance from the past

Use efficiently the good experience from the past. The knowledge of the people is invaluable
and can be objectively utilized for the present and the future.

The innovation potential is better captured when suppliers are involved at an early stage to
communicate them the long-term plans to innovate, and the intention to use value engineering both as
a requirement and an incentive.
Following the brainstorming for the need assessment, a market consultation takes place. The
process aims at stimulating the input of stakeholders and active analysis using questions as primary
tool in a positive and reliable environment where a trust agent may act as a facilitator.
Before launching a procurement procedure, contracting authorities may conduct market
consultations with a view to preparing the procurement and informing economic operators of their
procurement plans and requirements. For this purpose, contracting authorities may for example seek or
accept advice from independent experts or authorities or from market participants. That advice may be
used in the planning and conduct of the procurement procedure, provided that such advice does not
have the effect of distorting competition and does not result in a violation of the principles of nondiscrimination and transparency.33
Once the needs have been defined in terms of which functionality/performance improvements
they would generate, the next step is to analyze costs versus benefits. A business case includes
financial and planning information. It makes a cost/benefit analysis based on three financial indicators:
the Net Present Value (NPV), the Internal Rate of Return (IRR) and the Return On Investment (ROI).
Estimating the immediate and future costs and benefits over the entire lifetime can be done by using a
Total Cost of Ownership (TCO)34, keeping in mind that innovative solutions may often be cheaper than
existing solutions when looking at the longer term (when the effects of the quality and efficiency
improvements of modernizing the social services with the innovative solution pay themselves back).
Quantifying value in social services involves defining how the service helps the person
physically, psychological and financially. This is translated into the formula Value = function / cost. The
Value engineering proposal is meant to add value and achieve the function at the lowest cost.The
results of the market consultations and the business case are presented to the authorities (the Council
of the Municipality) for discussion on the approach and the steps to take regarding the developing of
the procurement strategy.
The procurement strategy encompasses a decision on how to handle specific issues such as
potential intellectual property rights, the definition of function, a strategy to include SMEs, the
evaluation of risks, the possible use of variants in the procurement, as well as the choice of procedure
and the definition of output/outcome specifications which are essential.
Before drafting the tender documents is necessary to consider:
a)
b)
c)
d)
e)
f)

Type of procedure to be followed;

Defining the subject-matter of the contract and the technical specifications;
Defining exclusion criteria;
Defining selection criteria;
Defining award criteria;
Deciding on the use of variants;

Article 40, Directive 2014/24/EU.

Estimate of all direct and indirect costs associated with an asset or acquisition over its entire life cycle.
See: http://www.businessdictionary.com/definition/total-cost-of-ownership-TCO.html#ixzz40T8ozDWq
33
34

11

g) Deciding on the use of value engineering

h) Defining criteria to monitor performance
Prior Information Notice (PIN)
This notice provides the market place with early notification of intent to award a contract/framework
that can lead to early supplier discussions which may help inform the development of the
specifications. Mention the need for an innovative approach for the provision of the services and
the use of a value engineering clause in a contract in the standard form description of the services
or in the additional information.
Contracting authorities may make known their intentions of planned procurements through the
publication of a prior information notice. Those notices shall contain the information set out in
Annex V part B section I of Directive 2014/24/EU. The notices should be published either by the
Publications Office of the European Union or by the contracting authorities on their buyer profiles.35
Contract notices
Contract notices shall be used as a means of calling for competition in respect of all procedures,
without prejudice to the second subparagraph of Article 26(5) and Article 32. Contract notices shall
contain the information set out in Annex V part C and shall be published in accordance with Article
51.36
Framework agreement and minicompetition
The choice of a framework agreement may be useful to implement a pilot project that introduces
the use of Value engineering in contracts for social services, where a group of municipalities who
want to engage several economic operators and carry on mini competitions to implement services
during a period of four years following an evaluation. During this timeframe, contractors will be
required to apply the Value engineering clause set in the framework agreement and the contracts.
They will have to present a proposal for improvements in the service twice every year. The incentive
to do it consist in sharing savings and risk with the possibility of obtaining a better result that
positions the contractor in a better position in the market (see Value engineering clause).
Criteria
Criteria for exclusion should be observed.37 Selection criteria should be determined based on:38 (a)
suitability to pursue the professional activity; (b) economic and financial standing; (c) technical and
professional ability. Award criteria should include: Specific quality criteria for the choice of service
providers, such as the criteria set out in the voluntary European Quality Framework for Social
Services, published by the Social Protection Committee.
Technical specifications
Contracting authorities should formulate the technical specifications for the services in terms of
performance or functional requirements and/or by reference to technical specifications and to
national standards transposing European standards, European Technical Assessments, common
technical specifications, international standards, other technical reference systems established by
the European standardisation bodies or - when any of those do not exist - national standards,
national technical approvals or national technical specifications relating to the design, calculation
and execution of the works and use of the supplies; each reference should be accompanied by the
words or equivalent39

In accordance with point 2(b) of Annex VIII of Directive 2014/24/EU. Where the prior information notice is
published by the contracting authorities on their buyer profile, they have to send a notice of the publication on
their buyer profile to the Publications Office of the European Union. See Article 48, Directive 2014/24/EU and
Annex VIII . Those notices shall contain the information set out in Annex V part A.
36 Article 49 and 50, Directive 2014/24/EU.
37 Article 57 of Directive 2014/24/EU.
38 Article 58 of Directive 2014/24/EU.
39 Article 42, Directive 2014/24/EU.
35

12

 Variants40
Contracting authorities may authorize or require tenderers to submit variants, which should be
linked to the subject-matter of the contract. The contract notice or, where a prior information notice
is used as a means of calling for competition, in the invitation to confirm interest, whether or not
they authorise or require variants. Variants are authorised only with such indication.
The procurement documents should contain the minimum requirements to be met by the variants
and any specific requirements for their presentation. They shall also ensure that the chosen award
criteria can be applied to variants meeting those minimum requirements as well as to conforming
tenders which are not variants.
Only variants meeting the minimum requirements laid down by the contracting authorities shall be
taken into consideration.
In procedures for awarding public supply or service contracts, contracting authorities that have
authorised or required variants cannot reject a variant on the sole ground that it would, where
successful, lead to either a service contract rather than a public supply contract or a supply contract
rather than a public service contract.
Components of a value engineering change proposal
There is not always an intuitive analog to the unit cost of production in service contracts. Services
may be priced for each performance effort on an hourly basis, priced for a total job that covers a
short time period, or priced for a total job that covers a lengthy time period. Public procurers face
the challenge to spin their approach from the start by looking at these services and the needs
related to them in functional terms.
Requirements of a value engineering change proposal:
(i) a description of the activities that will form the object of Value Engineering;
(ii) the change in the parameters of the Total Cost of Ownership (TCO) calculation, as a direct
consequence of the value engineering, as well as an analysis of the estimated savings for the
remaining time of the contract;
(iii) a risk analysis related to the implementation of value engineering and the description of the
planned prevention or mitigation measures;
(iv) an overview of those Contract clauses that need to be amended as a consequence of Value
Engineering, and an overview of the reasons why these changes are needed;
Monitoring criteria
Milestones and key performance indicators should be determined based on the business case.
These key performance indicators are useful to compare and evaluate suppliers performance
periodically. Specific type of reports may be produced for this purpose. In particular, it should be
clearly established when and how the Value engineering proposal should be presented.
4.2 Procurement phase
Competition fosters innovation, productivity and growth. Competition goes hand to hand with the
principles of transparency and equal treatment that must be complied with. At this stage the need for
innovation and the requirement of Value engineering is announced. The procurement strategy defined
in the pre-procurement phase is applied and translated into the procurement documents, the
specifications, key performance indicators, and criteria for exclusion, selection and award.
The evaluation of proposals takes place according to objective criteria, the proposed innovations,
risks, variants (if applicable). An evaluation report is produced based on the compared proposals.

40

Article 45, Directive 2014/24/EU.

13

4.3 Contractual phase

Without prejudice to national laws, regulations or administrative provisions concerning the price of
certain supplies or the remuneration of certain services, contracting authorities should base the award
of public contracts on the most economically advantageous tender.
Contracting authorities should send a contract award notice on the results of the procurement
procedure not later than 30 days after the conclusion of a contract or of a framework agreement,
following the decision to award or conclude it.41
Contract management requires monitoring and a continuous cylce of evaluation and improvement.
The value engineering clause sets a time and requirements of a value engineering change proposal.
The Key aspects are:

Risk-reward sharing
Manage incentives
Continuous improvement via contract management
Implement the innovation provision in the contract
Implement Value engineering job plan

The Value engineering proposal is then orally presented and explained by the contractor to the
contracting authority. The contracting authority may accept or reject the (amended) proposal, following
its presentation. The rejection of the proposal bears no consequence on the fulfilment of the
contractual obligations by the Contractor.
The approval of the Value engineering proposal is followed by an implementation plan. The savings
resulting from less work are shared equally with the contractor and the contracting authority. The
changes introduced bear no material or substantial modifications to the contract because the Value
engineering clause has already establish the possibility to introduce such changes which will not modify
the nature of the contract neither the balance between the parties, and the costs
Apart from the causes of termination provided in the contract and legislation, in case the contractor
does not comply with its obligation to submit a Value engineering proposal, the contracting authority
may cancel the contract partially or entirely by registered letter and remedy period.
4.4 Value engineering clause
The Value engineering clause which can be used can consist the here below mentioned articles:
Definition
1. Value engineering
The sum of activities and actions, aiming to ensure that the [Contractor] fulfils its obligations
such as to create added value for the [contracting authority]; these activities and actions target
innovative development, effective and/or efficient organization of the project or similar.
2. Change orders and Value engineering
2.1.
In case the Contractor delivers less work than estimated in the Contract, the savings
should be compensated with the [contracting authoritys] outstanding payments. The Contractor
is obliged to inform and to discuss with the [contracting authority] about any circumstances that
may lead to less work.
2,2.
Notwithstanding the section 2.1, savings that are realised through Value Engineering,
based on a proposal priory accepted by the [Public Procurer], will be equally shared between
the [contracting authority] and the Contractor.

41

Article 67, Directive 2014/24/EU.

14

2.3.
The Contractor shall submit twice a year (before 15th of January and before 15th of
July) to the [Public Procurer], a written proposal based on value engineering. The proposal shall
contain the following information:
(i)
(ii)
(iii)
(iv)

a description of the activities that will form the object of Value Engineering;
the change in the parameters of the Total Cost of Ownership (TCO) calculation, as a
direct consequence of the value engineering, as well as an analysis of the estimated
savings for the remaining time of the contract;
a risk analysis related to the implementation of value engineering and the description of
the planned prevention or mitigation measures;
an overview of those Contract clauses that need to be amended as a consequence of
Value Engineering, and an overview of the reasons why these changes are needed;

2.4.
The proposal mentioned in section 2.3 above, will be orally presented and explained by
the Contractor to the [contracting authority] within 20 Business Days from the initial submission
date. The [contracting authority] may accept or reject the (amended) proposal, following its
presentation. The rejection of the proposal by the [contracting authority] shall not bear any
consequence on the fulfilment of the contractual obligations by the Contractor.
3. Contract cancellation and termination
3.1.
Notwithstanding its right to cancel the Contract based on applicable legislation, the
[contracting authority] has the right to partially or entirely cancel the Contract, out-of-court, by
registered letter, containing a notice of default with a remedy period of ten Business Days,
provided that the Contractor does not comply with its obligation to submit a value engineering
proposal, as described above.
3.2.
The Party who cancelled the Contract has a right to compensation for the damage that
may be caused by the cancellation, except in cases of force majeur.
5. Considerations to implement Value engineering for social services
The introduction of Value engineering in the procurement of social services in the proposed model
is not only compatible with any choice of procedure as long as the principles of transparency an equal
treatment are complied with, but is also an optimal mechanism to keep alive the cycle of innovation
during the term of public contracts because contractors have both a condition and an incentive to add
Value, i.e. to innovate and improve performance in a manner that results in savings that will be shared
equally between the contracting authority and the contractor.
A modification of the contract resulting from the application of a Value engineering clause is in line
with the new European public procurement framework whic allows modifications during the term of the
contracts, to the extent that the contract establishes a Value engineering clause setting the condition
for a Value engineering change proposal resulting in savings, without changing the nature or the scope
of the contract, neither its economic balance, hence bearing no substantial modifications.
The challenge in applying Value engineering to the social domain consists in defining the essential
functions of care services for different vulnerable groups from an outcome perspective, and to establish
Value42 which is the ratio function to cost (V = function/cost). Value can either improve by improving the
function or reducing the cost. However, basic functions should be preserved and not be reduced as a
In value engineering functions are always described in a two word of bridgement consiting of an active verb and
measurable noun introduced in the most non prescriptive way possible, in a way thay neither limits the action nor
the application. For example: mixing the contents of paint for mixing the contents of liquid, or if the function of a
pencil is to make marks, what other things may substitute the pencil. Thus, it is necessary to establish which
performance characteristics are important and find various alternatives. Value engineering uses rational logic in
the analysis functions to identify relationships that increase value, it is considered a quantitative method similar to
the scientific method which focuses on hyphotesis-conclusion approaches to test the relationships and operations
research which is model building to identify predictive relationships.
42

15

consequence of pursuing Value improvement. One way to start may be to determine which are
unnecessary expenditures and remove them.
The definition of essential functions is fundamental before a procurement process takes place,
because this will set the grounds for establishing the nature and scope of the procurement and the
technical specifications. Therefore, a significative part of the work has to be done in the preprocurement phase, first as an initiative of the contracting authority to gather all the available
information, analyse the way in which services are been provided and brainstorm on possible solutions.
A Value engineering workshop in-house may help to work on an initial proposal involving stakeholders,
and as a result, develop an initial business case to further consult the market. After the market
consultations the business case may be reviewed.
During the pre-procurement phase, contracting authorities should develop their procurement
strategy. Conceiving a pilot project could be a good way to bring together some contracting authorities
under a framework agreement that establishes terms of governance for a period of four years, and
choose a restricted procedure assuring competition between qualified economic operators.
In the procurement phase, contracting authorities need to pay special attention to informing on the
condition of Value engineering in a transparent manner that guarantees equal treatment. The
procurement documents should be carefully designed to communicate clearly the needs, performance
and functional requirements, quality criteria and variant requirements (if any).
In the contractual phase, contracting authorities must assure a good monitoring and evaluation
mechanism that allows an early reaction to risks and a continous cycle of evaluation and improvement.
Having few (good) rather than many key performance indicators and corresponding reports may
contribute to a more efficient monitoring system. In particular, the condition that the contractor
presents a Value engineering proposal has to be followed up, and the proposal reviewed for approval.
The implementation of the Value engineering change proposal requires a plan and its monitoring to
assure compliance. Any savings resulting from it have to be shared equally.
6. Conclusions and recommendations
The new European public procurement framework fosters innovation and encourages contracting
authorities to use procurement as a mechanism to spur the market to achieve innovative solutions
aimed at solving societal challenges and contributing to the Europe 2020 strategy for smart,
sustainable and inclusive growth.
The EU public procurement directives, which should be transposed in the national legislations by 18
April 2016, establish a specific regime for the procurement of social services defined as services to the
person, raising their threshold and giving contracting authorities wide discretion to organise the choice
of service providers. Nevertheless, the principles of transparency and equal treatment should be
complied with.
Directive 2014/24/EU on public procurement provides the following choice of procedures: open
procedure, restricted procedure, competitive procedure with negotiation, competitive dialogue,
innovation partnerships, and negotiation without prior publication. This Directive has rules on the use of
framework agreements where several contracting authorities can establish the rules governing
contracts with more than one economic operator for a period of four years. In addition, the European
case law has been translated into new rules allowing the modification of contracts during their term
under certain conditions, provided that the modifications are not material or substantial.
Innovation is better captured at an early stage in the pre-procurement phase, where stakeholders
are involved and the market consulted. Value engineering, which is a method that can be use at any
stage of any project, may also be use at an early stage in the pre-procurement phase to define the
needs and the functions aimed to achieve, before approaching the market, and later develop the
procurement strategy, which entails translating the functional approach into the technical specifications
and the criteria to be used in the procurement phase. In this sense, it is important to have in-house
16

understanding of the method of Value engineering, not only to handling the management of a contract
with a Value engineering clause, but also to carrying on a VE workshop at the start of the preprocurement phase, before developing the business case, upon which the procurement strategy should
be developed.
The procurement strategy, to be defined at the pre-procurement phase, requires a careful decision
on the choice of procedure, the definition of the technical specifications, the quality criteria and any
possibility of variants. The condition on the use of a Value engineering clause should be included in the
contract notice and/or on the prior information notice to comply with the principles of transparency and
equal treatment. It also has to be introduced in the procurement documents. The functional
specifications are fundamental to the procurement strategy. The Value has to reflect the proper
function and the proper cost.
At the procurement stage, the condition on the use of Value engineering clause in the contract must
be announced to the economic operators and introduced in the procurement documents as a clause
that establishes performance conditions that may lead to modifications of the contract.
The European Public Procurement Directives allow contracting authorities to lay down special
conditions relating to the performance of a contract, and to modify the contracts or framework
agreements during their execution. Therefore, the Value engineering clause can be use at the
contractual phase creating an incentive to innovate through the implementation of an accepted Value
engineering change proposal. A pilot project of several municipalities to carrying on the procurement of
social services to the person may use a restrictive procedure to limit the number of economic operators,
applying quality criteria for their selection, and using a framework and mini competitions during a period
of four years.
Monitoring compliance and evaluation of the performance of the contractors based on (rather few
good than many) key performance indicators should result in a continuous cycle of improvement.
Additionally, managing a contract with a Value engineering clause also involves the request of a Value
engineering proposal prepared by the contractor, and the decision of the contracting authority to
approve it and implement the Value engineering plan, sharing both the risks.

17

References
Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on Public
Procurement and repealing Directive 2004/18/EC. Official Journal of the European. L 94/65.
28.3.2014.
National Social Report (Netherlands) 2014: http://ec.europa.eu/social
Vasco Lub, Matthijs Uyterlinde & Liesbeth Schotanus (2010) The paradoxical policies of the Social
Support Act in the Netherlands, Conference paper Rethinking Global Society (Renewing Politics and
Civil Society), The Bauman Institute, International Launch Conference, University of Leeds 6th 7th
September 2010.
C-496/99 P Commission v. CAS Succhi di Fruti
C-337/98 Commission v. France
C-454/06 Pressetext Nachrichtenagentur GmbH v. Republik sterreich
Business Dictionary: http://www.businessdictionary.com/definition/total-cost-of-ownershipTCO.html#ixzz40T8ozDWq
Federal Acquisition Regulation: https://www.acquisition.gov/?q=browsefar
Guide of VE best practices and tools: http://www.acq.osd.mil/se/docs/SD-24-VE-Guidebook.pdf
Canadian Association of Value Engineering: http://www.scav-csva.org,
Institute of Value Managament in the UK http://ivm.org.uk/about/history
International Society on Value Engineering: http://www.value-eng.org/about.php
Society of Japanese Value Engineering: https://www.sjve.org/en/ve/about/
Rijkswaterstaat Netherlands: https://www.youtube.com/watch?v=V_h9P83L1Ok) the fundamentals of
value engineering can also be applied to services and
http://www.rijkswaterstaat.nl/zakelijk/zakendoen-met-rijkswaterstaat/werkwijzen/werkwijze-ingww/value-engineering.aspx
Office of Management and Budget, Value Engineering, Circular No. A-131, 21 May 1993.
http://www.whitehouse.gov/omb/circulars_a131
Miles, Lawrence (1961) Techniques of Value Analysis and Engineering, McGraw Hill Co. Publishers.
Lawrence D. Miles Value Engineering Reference Center Collection:
https://minds.wisconsin.edu/handle/1793/301 https://minds.wisconsin.edu/handle/1793/5616
https://minds.wisconsin.edu/handle/1793/5616
Lawrence Miles Foundation: http://www.valuefoundation.org/Innovate-VM-Miles.htm

18