At-Estimating VE Formula

This procedure, when receiving estimates, calls for the submission of VE proposals, in addition to ordinary estimates, from prospective suppliers and offers a reward according to the amount of cost that can be reduced by the accepted proposal.
TEPCO does not pay the cost involved in the preparation of documents necessary for VE proposals.
The VE proposal at time of estimates submission procedure is performed by the following flow:

Model Flow

Explanation of Flow

Submission of Alternative Plan and Written Proposal

In estimating the cost of the planned purchase, please submit alternative estimates and written VE proposal as well as ordinary estimates to the Materials & Procurement Department of TEPCO.

Technical Inspection

After comprehensively inspecting the proposals submitted in terms of technology, safety, cost, etc. to find if their contents meet our quality, function and performance requirements, we decide whether or not to accept the proposals.

Decision on Most Prospective Bidder

The supplier who has submitted the lowest estimate (if his or her alternative proposal is accepted, the lowest alternative estimate) is considered the most prospective bidder.

Reward According to Amount of Cost Reduced

TEPCO issues a designated or otherwise preferential order to the successful supplier according to the degree of contribution by the proposal, particularly the amount of cost that can be reduced by it.