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Joe Jordan: OFPP Revises Rules for Reducing Agency Expenses

money-graphThe Office of Federal Procurement Policy released a policy update that seeks to reduce program expenses and other costs for federal agencies, Federal News Radio reported Thursday.

Jason Miller writes the OFPP revised Circular A-131, a mandate meant to advocate value engineering or the effort intended to study federal systems, services, facilities and equipment in order to reduce cost and to maintain quality and performance.

“The revisions being made to the circular are designed to clarify the role of VE in helping agencies meet 21st century demands and deliver better value to the taxpayer,” Joe Jordan, outgoing OFPP administrator, wrote in the notice.

Miller writes OFPP requires chief financial officers of different agencies to have a senior official manage agency’s VE guidelines, organize training opportunities, create VE plans and submit required documents to the Office of Management and Budget, the report said.

OFPP also intends to improve accountability for VE applications by increasing the program’s application threshold from $1 million to $5 million.

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