FCA Value Analysis Process
May 10, 2021
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| STATEMENT OF PROBLEM: There were close to 200 quotes that were submitted for extra work over the life of this project. Out of all of these quotes, only 14 of them had a scope of work and/or drawings that we received from the customer to bid off. FCA also used a third party company (Faithful & Gould) to perform detailed analyses of every quote submitted to locate any cost savings. The 3rd party firm was brought in in the middle of the project. This VA process essentially turned into every extra being completed on a time and material basis. The quote would be submitted to FCA, the work would be completed and tracked, and then an updated quote would be submitted based off of the actual time spent on the work. If the final price came in under 75% of the original submitted value, FCA would then issue a deduct change order. COURSE OF ACTION: As a team, we developed our own scope of work based off of discussions with the customer and submitted pricing. If needed, drawings would be marked up and provided to in-field personnel so our team was aware of the change. We would meet daily with the superintendent(s) and discuss the scope so they were understanding of the time tickets that we needed filled out. All backup information would be compiled and submitted to the third party review team (Faithful and Gould). A meeting would then be held after an analysis was performed in order to agree upon a final price. LESSON FOR FUTURE PROJECTS: 1. Receiving 75% funding on the initial submitted value does not guarantee acceptance of the quoted amount. 2. A strong budget tracking program is required to accurately manage where the adds/deducts need to be issued. 3. The procedure for value analysis should be a bidtime question to FCA so we can account for it at front end. |
