OSD has held a series of meetings over the past year to discuss the current state of VE and its relevance in the present contracting environment. These meetings have identified barriers to its wider use, solicited ideas for improvements in the program, and developed plans to expand VE. These meetings have involved representatives of various OSD offices, the Services and DLA, defense contractors, and nonprofit organizations interested in VE.

Workshop at 2002 PEO/SYSCOM Commanders' Conference

A special all-day workshop was held at the October 2002 PEO/SYSCOM Conference. The purposes of this workshop were to:

• Obtain input from government and industry acquisition professionals on general objectives of the VE program and well as specific program recommendations
• Obtain overview presentations from the Services and DLA on current implementation and coordination as well as plans and budgets
• Identify barriers and recommendations for improving VE process

The following findings were identified at the VE Workshop.

VE Organization and Motivation

• PM/PEO encouragement critical to VE success: important to talk about VE, set goals, track progress, provide incentives, measure success, reward accomplishment
• Government must overcome contractor perception that PMs and PCOs don't support VECPs; if the PM lets the contractor know he supports VE, the contractor will participate
• Vital to engage the entire team (contracts, design, contractors) in VE process/IPTs (including lower tier suppliers)
• Cultivation of the right attitude is important (importance of cost savings and performance improvements)

VE and Acquisition Practices

• System takes too long; should be streamlined to promote timely/earlier decisions
• VE should be applied earlier in the design process

Continue throughout product development

• VE is not "just a cost savings program" or "just a reliability improvement program"
• VE can work effectively in conjunction with "lean" practices (e.g., 6 Sigma)

VE Barriers and Enablers

• Perception of OSD/Service support for VE will be critical to its success
• Shortage of systems engineers is a major inhibitor to implementation of VE
• Up-front funding for VE is needed
• VE advocates should develop a library of Best Practices

VE Management Advisory Group

The VE Management Advisory Group (MAG) has also been revived. Made up of representatives of the Services and defense agencies, the MAG develops recommendations for actions and coordinates approval of the strategic plan, award recommendations, and other inter-agency VE activities. Recently, the MAG has completed staff-level reviews of a new VE Strategic Plan and a new Contractor's Guide to VE.