CEMP-CP

Pamphlet No.

415-1-260

Department of the Army

U.S. Army Corps of Engineers

Washington, DC 20314-1000

EP 415-1-260

6 Dec 90

Construction

RESIDENT ENGINEER MANAGEMENT GUIDE

Distribution Restriction Statement

Approved for public release; distribution is unlimited.
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EP 415-1-260

DEPARTMENT OF THE ARMY

U.S. Army Corps of Engineers

Washington, D.C. 20314-1000

CEMP-CP

Pamphlet

No. 415-1-260 6 December 1990

Construction

RESIDENT ENGINEER MANAGEMENT GUIDE
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6 Dec 90
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6 Dec 90

FOREWORD

This pamphlet is provided as an informational document for

the resident engineer to assist in the organization and operation

of the typical resident engineer office. This document is issued

in various sections to provide a living reference document in

looseleaf format, so that particular sections can be revised and

updated at more frequent intervals than in the past. In this

format, the Resident Engineer Management Guide can be easily

supplemented with Division/District implementing procedures with

direct reference to the applicable sections of this pamphlet. 

Any inquiries concerning the RE Management Guide should be

addressed to HQUSACE, ATTN: CEMP-CP, Construction Division,

Policy Branch, Washington, D.C. 20314-1000.
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SECTION 1

INTRODUCTION

1-1. Purpose.

The purpose of this pamphlet is to provide resident

engineers with information that will assist them in administering

construction contracts. This pamphlet is offered strictly as a

guide; Appendices B and C are provided as samples. This pamphlet

supersedes the October 1973 issue of the Resident Engineer

Management Guide, but does not supersede any regulations or

contract requirements, or abridge command authority or

responsibility.

1-2. Applicability.

This pamphlet applies to resident and area offices with

either limited or full delegated authority to administer

construction contracts. In addition, it applies to project or

field offices with limited or no authority to act for the

Contracting Officer. These guidelines are provided as assistance

in carrying out the administrative responsibilities of

construction work and are recommended for use by division and

district agencies in developing more particular local regulations

dealing with resident office functions.

1-3. Regulatory Publications. The regulations which govern the

Corps of Engineers procurement of construction by contract are as

follows:

a. Federal Acquisition Regulation (FAR). The FAR is the

primary regulation for use by all federal executive agencies in

their acquisition of supplies and services with appropriated

funds. The FAR system has been developed in accordance with the

requirements of the Office of Federal Procurement Policy

Act of 1974; as amended by Public Law 96-83. The FAR is issued

by the Administrator for Federal Procurement Policy.

b. Federal Acquisition Circular (FAC). The FAC supplements

the FAR and is approved by the Administrator for Federal

Procurement Policy.
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c. Department of Defense FAR Supplement (DFARS). The DFARS

is issued by the undersecretary of Defense for Research and

Engineering. The DFARS establishes uniform DOD policies and

procedures, implementing and supplementing the FAR.

d. Defense Acquisition Circular (DAC). The DAC supplements

DFARS and is approved by the Defense Acquisition Regulatory

Council.

e. Armed Services Procurement Regulation Manual No. 1 (ASPM

No. 1). The Armed Services Procurement Regulation Manual for

Contract Pricing is published as a training and instructional

guide and is non-directive in nature.

f. Army Federal Acquisition Regulation Supplement (AFARS).

Issued by direction of the Secretary of the Army pursuant to FAR

Subpart 1.3. The AFARS supplements and implements the DFARS and

FAR.

g. Engineer Federal Acquisition Regulation Supplement

(EFARS). EFARS is issued by the Corps of Engineers to implement

FAR, DFARS, AFARS, and establish uniform policies for contracting

and administration of Corps contracts.

1-4. Construction Bulletins (CB).

The Construction Bulletin (CB) is a means by which HQUSACE

can provide current guidance to the FOA's in a timely manner. 

The CB does not replace any current regulations, but is a

mechanism to enhance headquarters ability to provide responsive

current guidance to the field. Each CB has an APPLICABILITY line

(DIRECTIVE, GUIDANCE, or INFORMATION), and is sent hardcopy. 

CB's are numbered sequentially within the Calendar Year (e.g. 89-

1), and expires automatically on 31 Dec, two years in the future

(e.g. 31 December 1991). CB's do NOT replace ER's, EC's or EP's. 

They are used to improve HQUSACE'S responsiveness to current FOA

issues and problems. An original CB should be maintained on file

in all divisions, districts, and field offices. Copies for

internal use can be made as necessary. If the guidance should be

"locked in stone," it will be included in an appropriate ER. If

the guidance is no longer necessary or appropriate, it will be

allowed to expire.
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1-5. Definition of Terms.

a. Contracting Officer. The Contracting Officer has

authority to enter into, administer, or terminate contracts and

make related contract determinations and findings. The CO is

responsible for ensuring performance of all necessary actions for

effective contracting, ensuring compliance with the terms of the

contract, and safeguarding the interests of the United States in

its contractual relationships.

b. Administrative Contracting Officer (ACO). The ACO

(formerly referred to as Resident Contracting Officer) is an

individual authorized by the Contracting Officer to administer a

contract and execute modifications to that contract. The ACO's

authorities to modify the contract and obligate the Government

are limited to those defined in their certificate of appointment,

as indicated in EFARS 1.602-1(100).

c. Contracting Officer's Representative (COR). The COR is a

designated authorized representative of the Contracting Officer

with authority to take all actions in connection with the

administration of the contract with the exception of obligating

the payment of money by the Government or authorizing a change in

contract performance or completion time. The COR's specific

authorities and limitations are limited to those defined in their

letter of appointment as required by AFARS 42.90.

d. Chief of construction or construction operations

division. At the district level, this term applies to the

individual who is responsible to the district commander for the

efficient organization, function, and execution of the military

and civil construction program in the field and for the staff

supervision of the field organization. The incumbent provides

policy guidance and resources to area and resident engineers.

e. Area engineer. The area engineer is responsible for the

supervision and administration of all construction contracts

located within a set geographical area. The area engineer

manages these projects directly, or by delegating responsibility

to resident offices or project offices under his jurisdiction. 

The area office is an element of the district. The area

engineer provides the staff supervision of the field organization

in their area of control, as well as supporting management

functions delegated by the District.
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f. Resident engineer (RE). The resident engineer is the

manager of the field office responsible to the area engineer and

the District for the on-site administration and direction of one

or more construction contracts. Area engineer or project engineer

may be synonymous terms used under certain field conditions. 

"Resident engineer" as used in this pamphlet is intended

to represent all of these individuals regardless of their title. 

The resident engineer may or may not have Administrative

Contracting Officer (ACO) or Contracting Officer Representative

(COR) authority. On contractual matters, resident engineers

report directly to area engineers, district commanders, or deputy

district commanders.

g. Using service or Using agency. The using service (e.g.

Air Force, Army, Navy, Department of Energy) is any agency which

occupies and ultimately accepts responsibility for the facility

constructed under the administration of the area or resident

office.

1-6. Resident Engineer Responsibilities.

It is important to recognize that establishing a good

working relationship with our design and construction industry

partners pays back many mutual benefits. The expertise,

dedication, and professionalism that each party brings to the

project team provides the basis for achieving our ultimate goal

of providing our customers as quality product on time. The

results which can be expected through good partnership are

enhanced productivity, better quality, a safer job, fewer claims,

reduced cost growth, and speedier construction.

The typical duties of a resident engineer include

responsibility for the following:

a. Management of the resident office and on-site supervision

and administration of construction at an installation or project.

b. May or may not have delegated ACO authority.

c. Enforce compliance with all contracts assigned to the

resident office within delegated authority.

d. Understand procurement regulations (FAR system).

e. Monitor contractor quality control (CQC) activities and

take appropriate action with the contractor to assure compliance

with the quality control clauses of the contract.
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f. Prepare and implement a quality assurance (QA) plan to

assure compliance with contract plans and specifications in

accordance with regulations.

g. Supervise project progress and timely completion.

h. Ensure that all materials and equipment installed by the

contractor meet the contract requirements.

i. Manage project funds.

j. Manage within approved S ∧ I funding limits.

k. Safeguard the interests of the Government.

l. Recommend improvements in work which will result in total

quality management and life cycle savings, deriving the

recommendations from professional engineering experience and

knowledge of construction procedures, methods, and materials.

m. Monitor and maintain safety standards, as required by EM

385-1-1, Safety and Health Requirements Manual, on all work under

the resident engineers supervision.

n. Maintain and support an awareness of public relations and

the public image of the U.S. Army Corps of Engineers (USACE).

o. Negotiate and issue modifications within the monetary

limits stipulated in the authorization as the ACO.

p. Process contractor payment estimates promptly, after

verifying their accuracy.

q. Assure accountability and security of all resident office

property.

r. Manage a cost effective and efficient resident office.

s. Comply with DA and the local installation security

requirements.

t. Manage and supervise the resident office and its

personnel anticipating personnel needs as required.

u. Increase skills and capabilities of assigned personnel

through appropriate training.
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1-7. Responsibilities with Respect to Designs.

a. Biddability, constructibility, operability review. The

resident engineer reviews all plans and specifications during the

design period and prior to formal advertising. Comments are

forwarded through proper channels to the designer for

consideration and incorporation in the design, if applicable. The

resident engineer is furnished feedback on the disposition of

comments. A list of review items are in paragraph 6-2b of this

pamphlet. ER 415-1-11, Biddability, Constructibility and

Operability, is the governing regulation.

b. Design data. The resident engineer should request a copy

of the design analysis or the engineering considerations for each

contract under resident office supervision. The resident

engineer or his staff should review each project with the

designer either during or after the BCO review to make sure that

all unique aspects of the project and/or site of work are known

to the designer. A site visit to the project site prior to

advertising is highly recommended. It is helpful to have the

design representative discuss the project with members of the

resident office staff.

c. Repetitive deficiencies. Information on repetitive

deficiencies for the type of construction being performed may be

obtained from the district or from the Construction Evaluation

Retrieval System (CERS). CERS will provide feedback on project

experiences collected during Headquarters, HQUSACE (CEMP-CE)

design-construction evaluation team visits to project sites and

from post completion and warranty inspections of facilities.

d. Differing site conditions. If a review of the

contractor's correspondence and a review of field conditions

indicate that changed conditions exist, the resident engineer

should notify the district and prepare a statement of facts and

recommendations on the situation.

e. Design improvement. The resident engineer should not

hesitate to notify the district of conditions which seem to merit

review. ENG Form 3078, Design or Project Deficiency Report and

Recommendations, is recommended for design improvement

suggestions.
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f. Architect-Engineer Performance Evaluation. The resident

engineer completes ENG Form 1421-R(Test), Sep 89 Performance

Evaluation (Architect-Engineer) upon completion of construction. 

This is the resident engineers opportunity to evaluate the

effectiveness of the design and provide feedback to the district

and to other Corps offices on the capability, responsiveness,

accuracy, and design quality provided by a particular A-E.

1-8. Organization.

a. Command channel. The established command channel for

contractual matters is from the Commander, HQUSACE, to the

division commander, to the district commander/contracting

officer, to the area/resident engineer. For other than

contractual matters, resident engineers usually report to the

Chief of Construction Division. The resident engineer is

responsible for all activities of the resident office.

b. Resident office organization. The customary organizational elements in the resident or area office are office

engineering, contract administration, and quality assurance. The

organization reflects project requirements and resources. The

resident engineer continually reviews the organizations efficiency and makes recommendations to the Chief of Construction, if

changes are necessary

1-9. Contractor Relations.

a. Ethics. The resident engineer and his staff occupy a

position of public trust; therefore, they follow the highest

standards of personal conduct in their relationships with

contractors. The business ethics of all persons charged with

administration and expenditure of Government funds must be

above reproach. Many practices which are customary for private

business are not exercised by Government employees. Accepting

entertainment, gifts, or favors from anyone seeking or having

business dealings with the Government is considered compromising

to both parties. It is essential to retain public confidence in

the integrity of business relations between the Government and

private industry. Guidance is provided in FAR 3.101, Standards

of Conduct, and AR 600-50, Standards of Conduct for Department of

the Army Personnel. Further information on these requirements

are available from each FOA'S Ethics Counselor or procurement

division.
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b. Government records and internal discussion. Access to,

or release of,Government records, interdepartmental

correspondence, and intradepartmental correspondence requires

specific prior approval by the District Freedom of Information

Officer under the "Freedom of Information Act." Differences of

opinion among Government personnel should never be discussed in

the presence of contractor representatives. Dissent among

Government employees in the presence of contractor personnel may

lead to claims, or in some instances, to Congressional inquiries. 

It is the responsibility of the resident engineer to assure that

all resident office personnel understand the ramifications of

such discussions.

c. Contract interpretation. Controversial items encountered

while interpreting contract plans and specifications are

clarified with the district office, as necessary, before being

discussed with the contractor. Instructions and verbal agreements

are confirmed by letter or memorandum of agreement and are signed

by the resident engineer (as the COR) and the contractor's

representative.

d. Contract performance. The resident engineer renders

timely and unprejudiced decisions regarding the contractor's

operations and gives the contractor the greatest possible

latitude, within contract provisions, in the choice of equipment

and methods. Equipment or methods advocated by the contractor

for the work are not rejected if they fulfill contract

requirements. However, deviations and/or changes to the

contractual specifications, plans, and requirements should NOT be

allowed. Should a contractor's methods or equipment endanger the

completed structure or result in a major failure during

construction, the contractor will be immediately warned in

writing and the contracting officer will be notified by the most

expeditious means.

e. Contractor's performance. The contract clauses require

the contractor to either supervise the work in person or to have

on the work site a competent superintendent empowered to act for

the contractor. In the event the resident engineer determines

that the contractor or the superintendent is unsatisfactory, the

contractor will be promptly informed in writing. If corrective

measures are not taken by the contractor, the facts, along with

recommended actions, will be forwarded to the contracting

officer.

f. Subcontractor relations. There is nothing contained in a

contract which creates contractual relations between subcontractors and the Government.
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The prime contractor is responsible for accomplishing all phases

of the contract including coordinating subcontractor activities. 

The resident engineer makes every effort to establish and

maintain professional and cooperative relations with the

contractor. Each member of the resident engineer's staff should

understand the scope of the resident engineer's authority in

dealing with both the general contractor and subcontractor

representatives. Controversial matters involving subcontractors

should be discussed only with the prime contractor's authorized

representative.

g. Contractor quality control. The resident engineer's

staff must be aware that all dealings are conducted through the

prime contractor. The resident engineers staff participates in

preparatory and initial inspections in order to monitor CQC

procedures since these procedures provide the basis for work

placement in each phase of work. Follow-up inspections on a

routine basis are more productive when preceded by joint

contractor/USACE preparatory and initial inspections. Field

instructions are given to the prime contractor's supervisor or

CQC personnel, and recorded in the daily report not directly to

the workmen, except when a safety hazard exists.

h. Claims. The resident engineer's decisions protect the

Government's interest, but reflect fairness to the contractor. 

If controversial matters are not settled by mutual agreement on

the job, the contractor may request a decision by the contracting

officer. In such cases, the resident engineer furnishes a

written report to the contracting officer covering all phases of

the controversy. The resident engineer makes every reasonable

effort to avoid claims, and when necessary, requests assistance

from the district. In potential claim situations, the resident

engineer makes a special effort to record and preserve all

factual information. See paragraph 7-6j for further

guidance.
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1-10. Relations with the Using Service.

The extent and limitations of authority delegated to the

resident engineer should be conveyed to the using service at the

time of delegation by the district commander. The resident

engineer must be prepared to discuss the project scope with

authorized representatives of the using service. The resident

engineer also provides advice and coordination with the using

service on the following basic policies.

a. User changes. Army MCA ∧ MMCA projects. When the

using service wants to change the plans or specifications, it

will be requested to initiate prompt confirming actions through

channels. For MCA and MMCA funded projects (with the exception

of production base support), a corporate group has been

established to manage user originated changes that are elective

or enhancement in nature. Requests for corporate group

consideration will originate at the installation and be forwarded

to the major command with information c consists of three

members, each with distinctly defined roles. The major

command member is responsible for adequate justification of the

changes. The USACE division member is responsible for properly

classifying the change and evaluating that change from the

standpoint of schedule, cost, and DD Form 1391 scope. The

HQUSACE member will evaluate the proposal from the standpoint of

policy, regulatory and statutory constraints, and availability

of funds. In some cases, recommendations of the corporate group

will be elevated to the next higher level at HQUSACE, for

resolution. The district is advised immediately of the request

and provided with the comments and recommendations of the

resident engineer.

b. Local services. The district commander has no local

jurisdiction over rights-of-way, real estate, or the right of

entry and exit into or over installation properties. Cooperation

with local authorities is essential in closing roads and other

areas, in erecting barricades, and in similar construction

matters. Particular emphasis should be placed on establishing

and maintaining close coordination with the installation

commander, his DEH organization representatives, and all other

affected installation agencies. For civil works projects, the

district commander has local jurisdiction as provided by license

and easements.
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1-11. Life Cycle Project Management.

a. Civil Works. Engineer Regulation 5-2-1 provides policy,

guidance and procedures on the implementation and utilization of

the Life Cycle Project Management (LCPM) system within the US

Army Corps of Engineers (USACE). This project management system

pertains to planning, design, and construction for Civil Works

(CW). This regulation is applicable to all HQUSACE elements and

all field operating activities (FOA) having Civil Works

responsibilities. All Civil Works projects will be managed,

planned and executed under the LCPM system in accordance with the

requirements in ER 5-2-1. Projects under $5 million are not

subject to upward reporting requirements unless otherwise

directed. The objective of LCPM is to establish a system which

focuses USACE's corporate leadership on the efficient

implementation of quality projects within budget and on schedule.

b. Military and Support for Others. Life Cycle Project

Management (LCPM) is in the implementation stage for Military and

Support for Others work. Initial guidance and proposed

regulations were distributed to all FOA's by letter, CEMP-M,

dated 1 Feb 1990. LCPM implementation is a three phased

process with full applicability scheduled for Feb 1991. The

first phase will consist of one to three MCA projects per

district with a PA of $20 million or higher and/or projects as

designated as sensitive. The second phase will include three to

five projects per district. Phase three will include all

Military and Support for Others work. Separate implementation

guidance for LCPM will be provided for the Superfund and DERP

programs.
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SECTION 2

OFFICE ADMINISTRATION

2-1. Correspondence.

a. All resident engineer office correspondence is prepared

and handled in accordance with AR 25-50, Preparing and Managing

Correspondence, and AR 25-400-2, The Modern Army Recordkeeping

System (MARKS).

b. All contract-related correspondence issued from the

resident office to the contractor is signed by the COR (within

authority delegated by the Contracting Officer) using the

signature block format of "Contracting Officer Representative,"

as prescribed by AFARS 42.9002, Authority and Limitations. 

Noncontractual and interorganizational correspondence is

signed as "Resident Engineer." Correspondence committing the

Government to contract changes in time and/or price must be

signed in accordance with EFARS 1.603-3 (100) (Administrative

Contracting Officer) with the title block of "Administrative

Contracting Officer."

c. Incoming correspondence should be handled promptly. 

Items not completed on a daily basis, such as engineering studies

and investigations, should be assigned a suspense date. When

there will be a delay in answering correspondence, a letter of

acknowledgment is issued to the sender explaining the causes for

the delay in replying and offering an approximate date on which a

reply can be expected. The resident engineer assures expedious

action on requests for time extensions or requests for

contracting officer decisions, since delays on these actions may

result in claims for constructive acceleration or in compromising

the Government's position on claims.

d. The resident engineer determines which letters require

the reply of higher authority and forwards them to the district

at the earliest possible date accompanied by comments and

recommendations. Examples of matters requiring action by the

district would be:

(1) Requests which require a CO's decision.

(2) Requests for contract changes involving design criteria

or real estate easements.

(3) Requests for using agency changes and enhancements. 

(Army)
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(4) Letters concerning policy and procedure.

(5) Letters from congressional authorities, public

officials, or other dignitaries.

(6) Requests for time extensions which are beyond the

authority of the resident engineer.

(7) Freedom of Information Act Requests.

f. Verbal discussions, interpretations which may arise in

potential claim issues, or directives pertaining to contracts

should be documented in a daily report or by memorandum for

record.

2-2. Filing and Records.

a. The filing system used in the resident office is the

Modern Army Recordkeeping System, governed by AR 25-400-2. 

Records are maintained according to AR 25-1, Army Information

Resources Management Program, and assistance can be obtained from

the district records management officer. Contract numbers are

used for file identification and each contract file is

maintained separately.

b. The master contract file is maintained by the FOA

contracting office, however the RE should maintain a good working

file. A copy of all correspondence or other data referring to

multiple contracts is filed and cross-referenced under each

contract.

c. The following list of records, files, and publications

are items commonly required by higher authority to be kept

current:

(1) Contract plans and specifications with modifications.

(2) Construction progress reports.

(3) Organization chart of resident staff.

(4) Organization chart of architect-engineer staff (Only for

Title II, Architect-Engineer Management Contracts).

(5) Layout of the installation or project, indicating the

location of construction work.
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(6) Approved progress schedule of overall project and

breakdown of the major items of work with actual up-to-date

progress.

(7) Contractor payment estimates with supporting

documentation.

(8) CQC/QA plan (Organizational)

(9) List of critical materials with delivery dates and

current status.

(10) List of actual or anticipated delays and comments on

action by the resident engineer.

(11) Record drawings.

(12) Latest safety records showing hours worked, hours of

lost time due to accidents, number of lost time accidents, and

related figures.

(13) Modification and claim status records.

(14) Status of funds for each project.

(15) Quality control and QA reports.

(16) Status of significant deficiency actions.

(17) Submittal registers and shop drawings.

(18) ACO's letter of delegated authority.

(19) COR's letter of delegated authority.

(20) Contractor's accident prevention plan.

(21) Contractor's environmental control plan.

(22) Contractor's certified payroll register.

(23) Contractor's affirmative action plan.

(24) Contractor's drug-free workplace statement.

(25) A-E and contractor performance evaluations.

(26) Minutes of prebid meeting, the preconstruction

conference, and the CQC/QA coordination meeting.
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d. Contract records and project files are forwarded to the

district as soon as practical after contract completion, but in

no case later than 1 year after contract completion. Prior to

shipment, files are listed on SF 135 and SF 135A, Records

Transmittal and Receipt, and prepared in triplicate.

The original copy and one duplicate copy are forwarded to the

records management officer of the district for approval. When

the duplicate SF 135/135A is returned, it is placed in an

envelope as the first item in the first box of the shipment. The

third copy is retained in the resident office.

2-3. Forms.

a. An adequate stock of current, commonly used forms are

typically maintained to ensure a 30 to 60-day supply. The

district office can keep the resident engineer supplied with the

latest forms. DA Pamphlet 25-30, Consolidated Index of Army

Publications and Blank Forms, and EP 25-1-2, Index of Blank

Forms, may be referenced for form numbers and titles.

b. Proposed forms must be forwarded to the USACE proponent

through the district for approval. The USACE proponent may adopt

them by submitting a DA Form 1167, Request for Approval of Form,

and prescribing directive.

2-4. Reports.

a. Periodic and special reports are required by the resident

engineer to record and report matters of importance. All reports

by the resident engineer are prepared and submitted in accordance

with the instructions furnished by the district, with emphasis

placed on minimizing paperwork.

b. When the resident engineer receives a request for a

formal report from higher authority, the district will supply,

upon notification, the required instructions.

c. Construction data items used in AMPRS must be reported

monthly to HQUSACE through the district.

2-5. Visitors to the Resident Office.

a. At the discretion of the resident engineer, United States

citizens may be admitted to activities under direct supervision

of USACE (provided no classified information is involved).
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Due regard for the safety of such visitors and noninterference

with the project work must be exercised. In addition, at

military activities the rules prescribed by the installation

commander must also be observed by the visitor(s). Foreign

citizens will not be permitted to visit civil works

activities without prior approval from the district.

b. The resident engineer extends every courtesy and

cooperation to visitors and, when possible, gives them personal

attention. If this is not possible, a suitable person for the

event should be assigned. In such cases, the resident engineer

arranges a meeting with the visitors before they leave the area.

c. Representatives of higher authority, other than the

contracting officer for the ACO, are not empowered to verbally

direct the resident engineer to make changes in contract

requirements. The merit of visitors' opinions and suggestions

will be carefully weighed and, if appropriate, action taken.

d. Inspections and visits by higher authorities are

routinely reported to the district.

e. Identification and authorization of visitors are checked

before allowing access to security matters or areas.

2-6. General FOIA Procedures.

a. The Freedom of Information Act (FOIA) requires federal

agencies to make certain agency records available to any person

that requests them. The request must be in writing and

reasonably describe the records requested. The federal agency is

only required to release existing documents and is not required

to generate new documents to meet the request. The Act requires

the agency to provide the information to the requester, or deny

the request in ten working days. In practice, however the ten

day deadline is hard to meet, and a response that a document

search has been initiated will usually satisfy the immediate

concerns of the requester.

b. When a FOIA request is sent directly to the area or

resident office by the requester, it must be forwarded, as soon

as possible, to the District/Division FOIA Officer. The FOIA

Officer will process the request, and may send it back to the

area/resident office for collection of the requested documents. 

The FOIA Officer may also ask that form DD 2086, "Record of

Freedom of Information Processing Cost," be completed. It is

important to fill out that form with the time spent searching and

copying the requested documents.
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c. Before a document can be withheld from a requester, the

FOIA Officer must determine whether that document, or any

reasonably segregable portion thereof, fits within one of the

nine exemptions in the Act. All other material must be released. 

The area/resident office should provide the FOIA Officer with a

contact point who can help determine if the documents are

withholdable. Even though the FOIA Officer is required to make

an independent determination, area/resident office input is

important. Any questions regarding the type of information that

is withholdable, should be directed to the FOIA Officer. FOIA

procedures in the individual Districts/Divisions may vary. The

area/resident engineer should contact the District/Division FOIA

Officer to ensure that the proper procedures are being followed.
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SECTION 3

PERSONNEL ADMINISTRATION

3-1. Management.

a. The resident engineer establishes and enforces standard

operating procedures for the various elements of the resident

office, through a knowledge of management principles and

evaluation and classification standards.

b. The resident engineer supervises and schedules the

resident office workload, minimizing work backlogs and overtime. 

Personal attention is given to providing adequate equipment,

facilities, and working conditions that permit employees to work

safely and effectively. Personnel are trained and developed as

understudies to key jobs. The resident engineer must be familiar

with, and support, the merit promotion plan, EEO/AA, upward

mobility, performance awards, career programs, and the overseas

priority placement policy.

c. The resident engineer applies the principle of equal

employment opportunity (EEO) not only to employment, but to

retention, training, and separation of civilian personnel in

accordance with the district EEO plan of action. All employees

are kept informed of the EEO policy of the district and its

support is enlisted to achieve positive results. The resident

engineer assures that any complaints involving issues of

discrimination on grounds of race, color, religion, sex

(including sexual harassment), age, national origin, or physical

or mental handicap and reprisal are referred to appropriate EEO

officials and expeditiously processed.

d. The resident engineer displays an attitude of neutrality

toward employee unions and union membership. Cooperative

relationships with employee organizations should be established

and maintained. All negotiations with representatives of

recognized employee organizations should be handled conjunction

with the servicing personnel office as required under Title VII,

the Federal Service Labor Management Relations Statute, P.L. 95-

454. Training and assistance in the administration of labor

agreements is provided by the servicing personnel office.
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3-2. Personnel Strength Forecast.

a. The resident engineer forecasts the needed personnel

strength for the resident office and requests an increase or

decrease in personnel authorization in accordance with AR 570-3,

Manpower Utilization and Requirements. The district is advised

at least 180 days prior to the need for additional personnel or

when it is anticipated that any personnel will become surplus to

the needs of the resident office. Adequate time is thereby

allowed for processing personnel actions.

b. When requesting additional personnel from the district,

the following should be clearly stated:

(1) A brief description of duties or job number and special

qualification requirements.

(2) The suggested designation and grade of the new employee.

(3) The construction on which the new employee is to be

utilized and the location of the job.

(4) The length of time the employee will be needed.

3-3. CERRAMS.

a. General. The Corps of Engineers Resource and Military

Manpower System (CERRAMS) provides the capability to forecast

manpower and funding requirements quickly and accurately and to

allocate the available resources to Divisions and Districts. 

CERRAMS combines computer models, management policy controls, and

Department of the Army resource constraints. It enables managers

to forecast manpower requirements, planning and design (P&D)

funding requirements, and supervision and administration (S&A)

funding requirements for all of USACE and its individual

Divisions and Districts. It also enables managers to examine

options for allocating manpower resources to the Divisions and

Districts.

b. The USACE Manpower Forecasting Model - The multiple

information requirements of USACE led to the development of

CERRAMS as five interrelated models rather than a single large

model. The models address the two primary USACE management needs

- forecasting requirements and allocating resources.

The two forecasting models and the S&A and P∧D models

quantify the requirements for manpower and funding and the

allocation model apportions the available manpower and funding

resources to USACE Divisions.
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Consistency among the models is maintained through the use of

common input files which ensures that the same assumptions and

policies that drive manpower requirements are used to determine

P∧D and S&A funding requirements.

(1) The outputs of the USACE manpower forecasting model are

multiyear forecasts of the workyears required to provide

engineering and construction services for the ongoing and planned

military program. Workyear requirements are calculated by fund

type and summarized in three customer categories: Army

installation support, other Army support, and non-Army support. 

This functional display of manpower requirements facilitates the

analysis of the impact of changes in specific fund types and

readily supports the "what if" scenarios that are an integral

part of manpower management. The manpower requirements generated

by the USACE forecasting model serve as an input to the Total

Army Analysis (TAA) process.

(2) The development of manpower forecasts begins with input

of data and assumptions and ends with a presentation of manpower

requirements by fund type. Workload is measured by inflationadjusted PA's and is obtained from a combination of existing

USACE automated data bases and estimates by program managers. 

The assumptions that the model considers are the number of

available man-hours per man-year, the estimated amount of inhouse design work that will be done, the number of projects that

will not survive the budget review process, the amount of

engineering not related to construction to be done in-house, the

average number of active contruction projects that each District

will experience, and the operation and maintenance Army (OMA)

positions. Once the input data and assumptions are entered, the

calculation of manpower requirements begins.

c. Manpower Allocation - Manpower resources are allocated to

Divisions based on the requirements developed with the USACE

manpower forecasting model, the Division and District manpower

forecasting models, and the manpower resources made available

through the TAA process. The USACE manpower forecasting model is

used to develop the total manpower requirements for the

USACE military program.
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3-4. Selecting Employees.

One of the major responsibilities of the resident engineer is to

select employees for the organization. The district civilian

personnel office is responsible for implementing personnel

placement policy within the district. When it is necessary to

establish or fill a position, an SF 52 (Request for Personnel

Action) is submitted through the construction division to the

district personnel office. Attaching a proposed job description

to the SF 52 will expedite filling the position. The resident

engineer is furnished a list of qualified applicants for

evaluation and selection by the date required to avoid adverse

effect on resident office operations. Upon receiving the

referral list of highly qualified candidates, the resident

engineer should make a selection, and the selecting official must

provide a written rationale for their selection. The selection

decision must be based on merit factors and therefore job

related. While interviews of candidates are not mandatory, they

are encouraged prior to making a selection. If the RE requires

information concerning placement of minority candidates, the RE

should consult with the district EEO officer to discuss the AA

goals and whether there is underrepresentation of minorities or

women which needs attention. This discussion should occur as son

as a vacancy is projected. In addition to AA goals the selecting

official should determine whether any special recruitment efforts

are required to reach highly qualified candidates to include

minorities or women. The resident engineer contracts the highly

qualified individuals on the referral list to arrange interviews,

if desired, or secures additional information concerning the

candidate's experience and past supervisory appraisals. 

Customarily after the individual is selected, the new assignment

begins within 30 days. A shorter reporting period can be

negotiated with the incumbent's organization.

3-5. Personnel Utilization.

a. The resident engineer informs employees of their job

descriptions and associated performance standards which they are

expected to meet. Employee duties are normally aligned with

these standards and with job descriptions, though personnel may

be temporarily assigned to other duties within their

capabilities. When major changes are made in duty assignments,

performance standards are revised. Performance standards for

employees are usually prepared by the resident engineer with

input from employees. Both quality and quantity of performance

are realistically measured, and planned discussions with resident

office personnel are conducted to
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strengthen employee/employer relations and improve performance. 

As a result of the evaluation of resident office personnel, the

resident engineer establishes the necessary training through an

individual development plan (IDP) and recommends promotions,

reassignments, or separations.

b. Through regular interviews, the resident engineer is

aware of the short and long range goals of resident office

personnel and provides them with assistance in obtaining these

goals. The employees are assigned within the organization to

assure maximum utilization is made of the highest skills the

employee possesses.

c. When performance declines or conduct becomes a problem,

several considerations should be reviewed by the resident

engineer. Determining the cause of the performance or conduct

deterioration is essential. A concerned, sincere discussion with

the employee may surface the basis of the problem(s). If it

becomes apparent that the immediate supervisor's efforts

are not effective in resolving the problem, the ManagementEmployee Relations Branch, located in the Civilian Personnel

Office, should be contacted for guidance and assistance. There

are several options available for consideration, including

referral to the Employee Assistance Program (EAP), counseling,

disciplinary action, reassignment or even removal, if warranted. 

The resident engineer should strive to maintain a positive work

environment to enhance employee morale and productivity. This

may be one of the supervisors most challenging tasks.

d. Allegations of discrimination should be referred

immediately to the district EEO office for proper and timely

processing.

3-6. Incentives & Awards. (AR 672-20 & USACE Supplement #1)

a. There are various incentives available for resident

office employees; for example, quality step increases,

performance awards, special act or service awards length of

service awards, letters of appreciation or commendation, on-thespot cash awards, and promotions. The resident engineer

initiates action to obtain awards for deserving persons. The

resident engineer encourages suggestions and can assist resident

office personnel in preparing them.

b. Three awards for construction field personnel are

available. EP 690-1-12 dated 12 May 1987, established two of

these awards for construction inspectors/representatives. The

awards, are as follows:
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(1) Quality Performance Certificate (QPC-Qtrly)

- QPC's should be selective

- No requirement exists that you must award a QPC.

- A QPC recipient MUST be outstanding.

- Notify HQUSACE of recipients for publication in 

Newsletter.

(2) Construction Insp/Construction Rep of the Year

- One CI/CR of the year per division will be awarded.

- The CI/CR recipient must stand head and shoulders above 

 the rest.

- CI/CR award requires NO previous QPC awards.

- Give consideration to awarding QPC to CI/CR runners-up.

(3) USACE Hard Hat of the Year Award

- Hard Hat Award awarded to the most outstanding field 

 employee in each Corps Division

- Nominations made by each Area/Resident Engineer

- Nominee must be permanently assigned to a field office.

 (Area/Resident/Project Office)

- Cannot be the Area or Resident Engineer.

- Grade cannot exceed GS-12.

- Must be in position at least one year.

- Principle duties must relate to management of 

construction.

- Performance standards must address quality management.
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c. Selection and presentation of the first two awards are

delegated to each District. The Hard Hat Award will be presented

by HQUSACE, Chief, Construction Division. EP 690-1-12 outlines

considerations for you in the selection process. Criteria for

the HARD HAT AWARD was previously distributed and is available in

each Division and District.

3-7. Training.

The resident engineer assures that personnel have the opportunity

to attend training courses, either on regular duty time or during

off-duty hours, that will develop their capabilities and meet

their needs for future jobs. Personnel are encouraged to avail

themselves of the many opportunities for self-development. Long

term training opportunities should be emphasized, especially for

employees in grades GS-11 and above. The district training or

employee development officer can provide information on training

and development opportunities and assist personnel in scheduling

necessary training. The resident engineer should conduct routine

professional development training in-house for resident office

personnel based on their needs and abilities and on the nature of

on-going future work. The RE should assist in selecting courses

for the employee's professional progress through the IDP. 

Proponent Sponsored Engineering Corps Training (PROSPECT)

program courses are available from the Huntsville USACE Training

Management Division. Excellent courses in contract management,

quality assurance, inspection, and mobilization are available. 

For information about the PROSPECT program, contact the personnel

training officer at the USACE Training Management Division or the

districts training officer.

3-8. Time Administration.

a. The resident engineer assigns, in writing, a timekeeper

and an alternate timekeeper.

b. Approval of overtime, holiday work, and compensatory time

is governed by district regulations.

c. The resident engineer schedules annual leave and

compensatory time with consideration of employee desires insofar

as possible. Sick leave is monitored as necessary.
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3.9 Travel.

a. The governing regulation which prescribes the policy and

procedures for processing and controlling travel performed by all

USACE military and civilian personnel is ER 55-1-2, Travel

Management.

b. Normally, travel orders are written prior to commencing

official travel. In exceptional circumstances, confirmatory

orders may be issued after travel has been performed as

prescribed by current regulations. Travel orders are issued in

the district office unless specific authority has been delegated

to the resident engineer by the district commander.

c. The district transportation officer may designate the

resident engineer as the transportation agent for issuing SF

1169, Transportation Request (Accountable Form - Civil Only).
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SECTION 4

FISCAL ADMINISTRATION

4-1. General.

The Area/resident engineer assures proper utilization of

Government funds, controls project funds to avoid an

overobligated status, keeps accurate records of cost, and assures

that costs are reported in accordance with established

procedures. Cost reporting at the resident office includes

employee time, requisitions, materials and services, travel,

Government vehicles, and contractor earnings.

4-2. Job Cost Control.

a. Realistic and up-to-date current working estimates (CWE)

are the keystone of the USACE system for administrative control

of funds and for the prevention of violation of statutes

governing limitation of obligations and/or costs. CWE's show the

control and contingency amounts, the Government cost components

(engineering and design (E∧D), supervision and administration

(S&A), etc.), and any other appropriate items such as Governmentfurnished materials. The amounts shown are the official district

estimates of the ultimate cost of the construction. A violation

occurs when contractual obligations involving funds are in excess

of statutory or programming authorizations.

b. In order to control and account for all costs for which

the resident engineer is responsible, a running account of all

job costs are maintained. The most effective means for

administrative control of funds is a combination of (1) the

district's local control procedures, (2) finance and accounting

line item cost and obligation reports, and (3) up-to-the minute

facts known by the resident office staff. These procedures

provide line item control records which contain all details

essential to control of costs at various levels such as field

supervision and inspection.

c. The resident engineer advises the district (construction

division) of any contemplated action which will result in changes

to CWE's are recorded on project control records, such as

anticipated changes in contract price, field office supervision

and inspection costs, or possible claims.
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d. Civil Works Projects Contingency Management

(1) Each project has an associated contingency that will be

utilized during the management of the project. The project cost

estimate is composed of all Federal and non-Federal costs to

complete the project, including contingencies associated with

various features/subfeatures. The prudent and judicial

management of contingencies to accomodate uncertainties in the

project is a shared responsibility of District and Division

management. The limits of authority and mechanism for

utilization of contingencies is described in ER 5-2-1. The goal

is to have sufficient contingencies remaining after award to

enter into and complete necessary construction contracts. As

changes occur in the project development that impact cost,

such as studies, investigations, in-house or A/E design costs, or

estimated construction costs, the project cost estimate will be

adjusted accordingly. Any revised costs in a feature/subfeature

of the code of accounts will result in an equal and opposite

change to the contingency. The net result to the project cost

estimate will be zero as long as sufficient contingencies exist.

(2) At construction contract award, a minimum contingency

allowance of 5 percent of the estimated construction cost of each

construction contract must be available for potential

construction changes. In the event there is a requirement to

exceed the current project cost estimate, a new project

cost estimate with contingencies (i.e., restored contingencies

sufficient to complete the project) must be developed, and

approval of the Director of Civil Works (DCW) must be obtained. 

(Including those actions where the contractor has indicated an

intent to claim and those actions where, based on known

considerations, there is a reasonable expectation of a contractor

claim.)

e. The district keeps the resident engineer informed of all

costs and estimates pertinent to each line item under the

resident office jurisdiction. If necessary, the resident

engineer may maintain informal supplemental accounts covering

expenses chargeable to field supervision and inspection.

4-3. Contract Costs.

Contract costs are calculated monthly in a contract payment

estimate based on the percentage of work accomplished. 

(Additional discussion on this subject is contained in sections

7-7, 7-8).
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6 Dec 90

Contract cost accruals represent the estimated cost from the last

ENG Form 93, Payment Estimate submitted, to the end of the

current period. In addition, the resident engineer should inform

the district of overruns or underruns in the quantity of unit

price items in the contract. It is important that the district

office be informed promptly when a variation in quantity is known

if it will appreciably effect the cost of the contract. If the

quantity variation exceeds the 15% threshold as provided for by

FAR 29.972, then an equitable adjustment in the contract price

may be demanded by either the Government or the contractor. The

resident engineer assures that regulatory or statutory

limitations on construction contracts are not exceeded. The

monthly construction placement must be reviewed and related

to the projected S&A expenses for the resident office, in order

to manage the projected workload and staffing levels.

4-4. Auditor Visits.

a. The district internal review staff will perform internal

reviews of resident office operations. The auditor will discuss

the findings and furnish a copy of the final audit report to the

resident engineer.

b. The division contract audit staff will perform audits of

cost or pricing data proposals for negotiated contracts and

modifications when an audit is required or requested. The

Defense Contract Audit Agency is responsible for auditing

military contracts.

c. Visits to the project site may also be made by auditors

from the Army Audit Agency (USAAA), the General Accounting Office

(GAO), DODIG, DAIG, and the EIG. Normal procedures are that

these visits be coordinated through the district and division

prior to arrival at the project site.

4-5. Supervision and Administration Costs.

a. General. The supervision and administration policy of

the Corps follows the long-standing policy of DOD that all costs

associated with a project at district level and below are

considered as an investment in the project. All costs above

district level are considered as an expense and should be paid

out of operating funds. A new regulation prescribing the

policies and procedures to be used in accounting and monitoring

of supervision and administration (S&A) rates for construction

will be published in the near future. It also prescribes the

allowable costs and financial controls related to the S&A rate

and flat rate accounts.
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b. Methods of charging for work. Construction supervision

and administration is charged in one of two ways, either at

actual cost or at a flat rate. The flat rate may be either the

Uniform Flat Rate or "Other" Flat Rate. Currently there are four

Uniform Flat Rates (the MILCON Flat Rates-6.0% CONUS and 6.5%

OCONUS; and the RPMA Flat Rates-- 8.0% CONUS and 8.5% OCONUS). 

RPMA (Real Property Maintenance Account) refers to Installation

Support work paid for by a DEH, BCE or tenant customer. It

includes funds provided by OMA, OMAF, OMAR and funds provided by

installation tenants and activities, which do not come under

Milcon or the other categories subject to Milcon flat rate

charges.

METHODS OF CHARGING FOR WORK

A. Flat Rate

1. Uniform Flat Rate

 CONUS OCONUS

 MILCON 6.0% 6.5%

 RPMA 8.0% 8.5%

 2. Other Flat Rate

B. At Actual Cost

c. Costs Applicable to S&A. S&A includes the cost of

performing supervision and inspection (S&I) plus the applicable

district overhead (OH). Most of the S&A costs are for salaries

and wages, including government benefits, and the remainder is

for miscellaneous associated costs such as travel, Title II,

trailers, vehicles, non-construction supplies, materials and

transportation, communication services, rents and utilities,

services, training and other distributive costs. Appendix I,

Chapter 6, of ER 37-345-10 identifies the allowable military

charges to S&A. Similar S&A charges for civil works are

allowable as per ER 37-2-10.

d. Capital assets are defined as assets having an

acquisition cost of $5,000 or more, and a useful life of two

years or more. The flat rate S&A accounts will not, under any

circumstances, be used for their acquisition. For acquisition of

capital assets in support of Area Office operations, excluding

structures to house offices, Other Procurement Army funds shall

be used.
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e. S&A Uniform Rate Procedures. The current procedure of

funding S&A cost requirements for construction projects is to

apply a fixed S&A flat rate percentage based on the Direct

Construction Cost (DCC) of the project. This S&A income,

together with the actual district/operating division's S&A

expenses, are consolidated by the district/division in the

appropriate S&A account. At the end of each month, the loss or

gain in each of the accounts, i.e., the difference between the

actual expenses incurred and the income (charges applied at the

uniform rate), is transferred to (or from) the consolidated Corps

S&A account, currently maintained in Omaha, Nebraska. In this

way, the total Corps S&A costs are distributed to all projects

regardless of the individual project cost. Management of the

flat rate account is centralized at HQUSACE, (CEMP-CM).

f. Establishment of S&A ceilings. Annually, during the

fourth quarter of the Fiscal Year (FY), HQUSACE requests

divisions to submit placement and expense information for the

next FY. Divisions in turn obtain this information from each of

their districts. HQUSACE will evaluate the rates proposed by

each division. Factors to be considered include budget

constraints, current placement and expense cost, accuracy of

previous estimates of placement and expense, size and complexity

of program, manpower resources allocated, OCONUS costs, and other

relevant items. HQUSACE issues ceilings to the Divisions by the

beginning of the new fiscal year which is generally based on a

percentage of the projected placement. Divisions, in turn, will

assign ceilings to their districts and require a monthly schedule

of placement and expense, showing how each district plans to stay

within its assigned ceiling. The Chief of Construction will

assign appropriate S & I ceilings to each Area office and the AE

and/or RE is responsible to manage within these ceilings.

g. Authority to Deviate From Prescribed Rates. Uniform flat

rates are established at HQUSACE. FOA Commanders are not

authorized to negotiate separate rates. It is not acceptable to

use a lower S&A rate in order to maintain a current working

estimate (CWE) within the programmed amount. As a rare exception, minor deviations may be requested near the end of a project,

to preclude minor reprogramming requests to Congress. Exceptions

or deviations must be approved by HQUSACE (ATTN: CEMP-CM).
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SECTION 5

PROPERTY ADMINISTRATION

5-1. General.

a. The resident engineer assures that Government real

property, regardless of value, is accounted for and used only for

the actual needs of the work being undertaken by USACE, and is

not used for the benefit of any private contractor. The use of

Government property for the advantage, comfort, convenience,

pleasure, or for any private purpose is strictly prohibited.

b. The property administrator is the Government

representative who is responsible to the contracting officer for

reviewing the contractor's industrial property control

procedures, for checking records maintained by the contractor for

property that is Government furnished, for usage checks of

industrial property, and for maintaining Government property

records as required. A property administrator is designated for

each Government contract involving Government property. Under

normal conditions, the chief, property accounting section, who is

also the district accountable property officer, is designated as

the property administrator.

5-2. Definitions of Property.

a. Government-furnished property (GFP) are goods supplied by

the Government to a contractor for use or installation under a

construction contract (FAR 52.245-4, Government-Furnished

Property).

b. Contractor-furnished property (CFP) are goods accepted by

the Government under the terms of a satisfactorily completed

contract.

c. Contractor-furnished material (CFM) are goods purchased

by the contractor for use or installation as specified by a

construction contract, but has become excess through no fault of

the contractor. This material must be considered usable and

acceptable in its current condition by a Government

representative.

d. Government salvage property (GSP) are goods which a

contractor removes from a facility undergoing alteration or

repair which must be turned in to the Government (see AFARS

45.5).
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e. Real property consists of land and capital improvements

to land. It includes, but is not limited to, land; lesser

interests in land; buildings, other than portable ones;

structures; roads; and railways.

f. Personal property consists of items not considered real

property. The regulations for accounting and controlling

personal property can be found in ER 700-1-1, and ER 750-1-1

describes the maintenance procedures for all personal property

owned or supported within USACE.

g. Common property terms such as accountable property

officer or responsible employee are defined in ER 700-1-1, USACE

Supply Policies and Procedures.

5-3. Classification of Property.

a. The following subparagraphs list classifications for

personal property acquired through purchase, transfer, or other

means for civil and military activities. Subsequent

accountability actions are taken by the resident engineer.

b. The classifications of property as described in ER 700-1-

1, USACE Supply Policies and Procedures, are as follows:

(1) Nonexpendable (N). A nonexpendable item is complete in

itself, it does not lose its identity or become part of another

article when put in use, it has an expected service life of one

year or more, and it has a unit acquisition cost of $5,000 or

more.

(2) Pilferable (P).

(a) Pilferable items are accounted for in the property

account as nonexpendable property regardless of their cost.

(b) Pilferable items require tight control because they are

susceptible to misuse and theft. This classification includes

cameras, detachable camera lenses, binoculars, microscopes,

telescopes, slide and movie projectors, calculators, tape

records, portable typewriters, surveying equipment (such

as levels and transits), portable radio transmitter-receivers,

television sets, diving equipment, and firearms. The resident

engineer controls these items by obtaining a written receipt or

with a sign-out log.
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(3) Minor nonexpendable/accountable (MP). This

classification covers furniture, fixtures, and office equipment

with a unit acquisition cost of $300 or more, but less than

$5,000. Normally, these items are charged to expense accounts

such as tool replacement and expense. If, however, the purchase

cost is substantial or if the items are for the initial

outfitting of an office or facility, Cost and Revolving Funds

Accounting Branch determines whether they must be capitalized. 

The resident engineer controls these items by obtaining a written

receipt or with a sign-out log.

(4) Minor nonexpendable/nonaccountable (M). This

classification covers durable items that retain their original

identity, are not consumed in use, are not classified as

pilferable or as minor nonexpendable/accountable property, and

have a unit acquisition cost of $50 or more, but less than

$1,000. These items are charged to an expense account or are

capitalized the same as minor nonexpendable/accountable property.

(5) Expendable (E). Expendable items are consumed in use or

lose their separate identity when used in construction,

maintenance, or operations. This classification includes

construction materials, office supplies, office equipment (such

as paper staplers and punches) that cost less than $50, and

vehicle repair parts and accessories.

(6) Warehouse stock (WS). This classification includes all

classes of property stored for future issue after acquisition in

a warehouse or other storage area.

(7) Real property (civil). Real property consists of land

and capital improvements to land. It includes, but is not

limited to, land; lesser interests in land; buildings, other than

portable ones; structures; roads; and railways.

(8) Real property (military). Real property consists of

land and capital improvements to land. It includes, but is not

limited to, land; lesser interests in land; buildings, other than

portable ones; structures; roads; and railways. This

classification includes buildings, structures, improvements, and

other property as described in AR 415-28, Department of

the Army Facility Classes and Construction Categories.

5-4. Receipt of Property.

a. The receipt of all property is handled as described in ER

700-1-1.
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b. Favorable relationships with suppliers furnishing

property or services to the Government are established by the

timely payment of invoices. A receiving report is forwarded

within one working day after receiving property or services.

c. Inspection of small purchases consists of examination of

the following:

(1) Type and kind.

(2) Quantity.

(3) Condition.

(4) Operability, if readily determinable.

(5) Preservation, packaging, packing and marking, if

applicable.

(6) Other QA actions as required.

5-5. Inventory and Disposition of Property.

a. Inventory. All accountable property is physically

inventoried at least once each calendar year as prescribed in ER

700-1-1. When it is necessary for the contractor to have access

to real and installed property at an installation where the

district has property accountability or custody of the records,

the resident engineer arranges a joint inventory with the

contractor to fix responsibility. Discrepancies are referred to

the district with recommendations.

b. Marking of property. The resident engineer assures that

nonexpendable and pilferable items are marked or engraved, upon

receipt, with the letters "US-CE-C" for civil property or "USACE-M" for military property.

c. Property excess, turn-in, or mishap. Reporting excess

property and the turn-in or other disposition of property are

handled according to ER 700-1-1. Incidents of loss, theft,

damage, or destruction are reported on DA Form 4697, Report of

Survey, as prescribed by the same regulation.

5-6. Delivery of Property to Contractors.

a. Normally, shipments from depots or other military

installations will be accompanied by a shipping document. Two

copies of this document are signed by the contractor's

representative acknowledging receipt of GFP and then are
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forwarded to the District. If shipments are not accompanied by a

shipping document or if copies have not been received previously,

a DD Form 250, Material Inspection and Receiving Report, is

submitted in the same manner as shipments from commercial

sources. For shipments from commercial sources, the resident

engineer initiates the receiving report and submits to the

district the original and three copies properly executed by the

contractor's representative.

b. Receiving reports contain the signature of the

contractor's representative, preferably in the body of that form,

acknowledging receipt of the material in good condition for

installation under the pertinent contract. Discrepancies or

damages are annotated on the receiving report; this information

should also appear on the bill of lading.

c. All property documents are forwarded to the district

within one working day of receiving the property. Property

documents reflecting credits of materials to the contract,

shipments salvaged, excess or surplus materials turned in to the

contract, or anything affecting the accounting of property

are forwarded to the district so that accounting may be kept

current.

5-7. Salvaged, Excess, or Surplus Property.

a. Construction projects have salvaged, excess, or surplus

property for one or more of the following reasons:

(1) Changes in plans and specifications.

(2) Procurement or requisition beyond contract needs,

through no fault of the contractor.

(3) Contract termination prior to completing the work or

receipt of the title of property by the Government in accordance

with the contract.

(4) A salvaged material clause in the contract or a pay item

in the unit price schedule of the contract requiring the material

to be salvaged.

b. A list of the excess property, in triplicate, is

furnished to the district by the resident engineer. Excess

property is then disposed of in accordance with FAR 45.6,

Reporting, Redistribution and Disposal of Contractor Inventory,

and EP 700-1-1.
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5-8. Purchasing.

a. Purchase orders. The resident engineer receives from the

district a copy of all purchase orders for supplies and services

which will be consigned to the office. Upon receiving these

supplies or services, receiving reports are prepared and

submitted to the district in accordance with district

regulations. Every effort is made to submit reports in time to

take advantage of prompt payment discounts offered by vendors and

to preclude interest penalty payments to vendors.

b. Ordering officer/imprest fund administration. Many

resident offices that are distant from the district have ordering

officer and/or imprest fund authorization. The purpose of these

authorities is for procurement of small dollar amounts of

supplies, equipment, and nonpersonal services. Guidance in these

areas can be found in district procurement regulations.
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SECTION 6

PREREQUISITES TO PROJECT CONSTRUCTION

6-1. General.

This chapter covers the functions of the resident office on

construction projects that generally occur prior to the

contractors notice to proceed (NTP).

6-2. Biddability, Constructibility, and Operability (BCO).

a. General. The BCO review, governed by ER 415-1-11, should

occur twice. The first review occurs when the design is 35

percent complete, a point at which it is sufficiently complete

for substantive comment, and the final review occurs at least 30

days prior to advertising, following final design completion. 

The BCO reviews serve to reduce costly, time consuming

modifications. The resident engineer and/or staff personnel, who

have extensive knowledge of the construction market place and

experience in construction control, supervision, and management,

should make the initial review of the plans and specifications,

especially to incorporate past "lessons learned." An adequate

number of copies of the plans and specifications are furnished

for all reviewers to work simultaneously. Reviewers should be

advised of the actions taken on their comments. The district

chiefs of construction and engineering will certify in writing

that all appropriate BCO review comments have been incorporated

in the proposed solicitation document in accordance with ER 415-

1-11.

b. First Review. The resident engineer and his office staff

must assure that the contract documents include the following:

(a) Accurate depiction of site conditions and restrictions

such as access, utility availability, drainage, storage, existing

underground utilities, and general layout.

(2) Adaptation of design structures and features to site

conditions and constraints.

(3) The RE should coordinate with the DEH and verify that

appropriate comments have been forwarded to the project manager.

c. Final review. The final review assures that an accurate

incorporation of all previous review comments has been made to

the final drawings and specifications.
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In addition, design features included since the first review are

checked for comments against the items in paragraph b above, and

examined for coordination with the entire design. It is this

review that preempts early modifications to the contract. The

following items should be considered in the final review:

(1) Appropriateness of contract sequencing and relationship

to other work, contract performance time, CQC, submittal

requirements and network analysis system (NAS) provisions for the

specific project in accordance with ER 1180-1-6 (Construction

Quality Management), ER 1-1-11 (Network Analysis System), and ER

415-1-10 (Contractor Submittal Procedures).

(2) Adequacy of space and access for all site contractors

and Government operations as well as provisions for coordination

to preclude onsite operational conflicts.

(3) Coverage, clarity, and consistency of specifications.

(4) Clarity, simplicity, and essentiality of items on the

bid schedule.

(5) Availability of local and special materials and labor

skills.

(6) Special project configurations, design features,

equipment phasing, and long lead requirements.

(7) Comparative economy of selected materials and structural

systems to others available in the area.

(8) Inclusion of all bench marks and baselines.

(9) Adequacy of O∧M manuals, training procedures, and

warranty clauses.

6-3. Considerations prior to Award.

a. Contractor coordination meetings. Provisions for

coordination of work schedules may be included in contracts where

existing facilities will be enlarged, where construction is

complex, or where work areas overlap. A weekly or biweekly

written work schedule, along with frequent coordinating

meetings with all affected parties, are helpful management tools.
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The resident engineer, in analyzing plans and specifications

prior to construction, may request the inclusion of a written

work schedule in certain contracts.

b. Prospective bidders/proposers. Visits by prospective

bidders/proposers are encouraged by solicitation documents on

every construction project. In these documents a contact point

is given either in engineering division or at the resident office

as a means for the interested contractors to make an appointment

to visit the site. The resident engineer typically provides a

knowledgeable representative to conduct the visits. The

representative assures that all visitors get the same information

and that the technical point of contact given in the solicitation

document is advised of any special information provided during

the meeting. It is the responsibility of the contractor to visit

the site if there are questions regarding existing conditions. 

All solicitations are normally prefaced by the statement that it

is the bidders responsibility to verify all conditions, as

provided in the solicitation documents. Questions regarding the

interpretation of drawings and specifications, the request for

proposal, or the invitation for bids, must be requested in

writing. The district must then allow sufficient time for a

reply to reach all bidders/proposers.

6-4. Award, Notice to Proceed, and Commencement of Work.

a. Contract award. The contract documents are prepared in

the district and mailed or delivered directly to the contractor. 

An authenticated copy of the contract is furnished to the

resident engineer, who then issues a letter to the contractor

providing guidance on contract and administrative items such as

arrangements for the preconstruction conference, material

submittals, safety, CQC, payrolls, shop drawings, or

correspondence. At this time the RE should verify that the site

of work is ready for construction to start.

b. Notice to proceed.

(1) The contracting officer issues the NTP, with a copy to

the resident engineer, after receiving the properly executed

documents from the successful bidder. Most often, the NTP will

be delivered by certified mail, return receipt requested. The

day following acknowledgment of receipt of the NTP by the

contractor is considered the first day of the contract.
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(2) Normally the contract provides for completion within a

given number of calendar days after NTP. In some cases, the

contract establishes a firm completion date with a provision that

if the NTP is received after a certain date, the completion date

will be adjusted. In these cases, adjustment of the completion

date is spelled out in the contract in such a way that it is

automatically established and does not require a contract

modification.

c. Commencement of work. After the contractor acknowledges

receipt of the NTP, the contract generally requires work to

commence within a minimum number of days as required in FAR

clause 52.212-3. For the record, the resident engineer informs

the district, in writing, of the date on which the contractor

begins work at the jobsite. Should the contractor fail to

commence the work, as provided for in the contract, the resident

engineer immediately files a report giving all essential facts to

the contracting officer.

6-5. Preconstruction Conference.

a. General. After the contract is awarded, but before

physical work begins the resident engineer arranges a conference

to include the contractor, the resident office, the district

office, and the using service, when appropriate. At this

conference, the contractor will be oriented on

Government procedures, contractual lines of authority, and

administrative and construction matters. If the magnitude of the

project demands, the preconstruction conference will be held in

two parts for the convenience of the personnel involved. The

first conference will cover district and user functions and the

second will cover local administrative features between the

resident engineer office and the contractor's local office.

b. Agenda. The agenda of this meeting covers introduction,

safety, design briefings (if required), user coordination, labor

relations, defense materials system, environmental protection,

administrative and technical requirements, Government and

contractor organizations, critical items, and problem areas. An

attendance sheet and a detailed suggested agenda are shown in

appendix B, sections I and II. Safety, and environmental

protection plans are sometimes discussed at meetings separate

from the preconstruction conference, if warranted. The CQC

system should be discussed at a separate meeting with the

contractor based on a set agenda.
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c. Minutes. Detailed minutes of the meeting are prepared

promptly to include all items discussed at the conference, but a

verbatim report is not necessary. A sample of typical

preconstruction conference minutes is shown in Appendix B,

section III. The original minutes are forwarded to the

contractor for review and formal written concurrence is requested

typically within 5 days (there is no contract requirement for the

contractor to respond). The final minutes of the preconstruction

conference endorsed by both the resident engineer and the

contractor are sent to the district with a courtesy copy to the

contractor.

6-6. Federal, State, and Local Regulations.

a. The resident engineer is aware of using service, Federal,

state, and local regulations required under the terms of the

contract. These regulations are enforced by the resident office

staff and must be obeyed by all contractor personnel over which

the resident office has jurisdiction.

b. The contractor is responsible for conforming to all state

and local laws and Federal regulations under the terms of the

contract. Features of work typically requiring state and/or

local permits are handling and storing of explosives, operating

cranes near power lines and railroad tracks, and operating steam

boilers, mines, quarries, and labor camps. In addition, permits

are frequently required for overweight loading of trucks and

temporary access to state and local roads. The contractor is

responsible for securing the permit and for protecting all

roadways, structures, utilities, and vegetation. Damage to

Government or other property by the contractor is repaired by, or

at the expense of, the contractor. The resident engineer keeps

an accurate record of all damages. Emphasis should be placed on

cooperation with state and local authorities.
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SECTION 7

CONTRACT ADMINISTRATION

7-1. General.

Contract administration is the day-to-day activities

required to accomplish the construction contract. This business

relationship takes place between the authorized representative of

the prime contractor and the resident engineer (as the ACO). 

Typically, the prime contractor does not authorize subcontractors

or suppliers to do business directly with the resident engineer. 

Similarly, the resident engineer rarely allows any other agency

of the Government or the resident office staff to do business

with the prime contractor without specific knowledge and official

authorization. All contractual communications, shop drawings,

samples, reports, and cost proposals are exchanged directly

between the prime contractor and the resident engineer. This

professional approach is the basis of the relationship between

the Government and the contractor to construct quality facilities

within time and budget constraints.

7-2. Inspection by Audit Agencies.

The Corps of Engineers contract administration process is

audited and inspected both by internal HQUSACE teams, and by a

number of other agencies, such as Army Audit Agency (USAAA),

DODIG, DAIG, EIG, and GAO. The negotiation and documentation

procedures utilized in contract administration are an important

area of concern to these agencies, The emphasis placed on Quality

extends to actions in the contract administration process. 

Contract administration must be performed in accordance with ALL

applicable Federal, DOD, and Army acquisition policies. The

following modification actions are considered to be critical

areas where the ACO should continue to place emphasis, in order

to improve compliance with good DOD contract procedures:

a. Technical Analysis (TA)

b. Pre-negotiation Objectives (PNO)

c. Price Negotiation Memoranda (PNM)

d. Independent Government Estimates (IGE)

e. Proper use and disposition of audits

f. Business Clearance Memorandum (BCM)
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7-3. Defense Priorities and Allocations System (DPAS) & Materials

Expediting for Military Funded Construction.

a. DPAS is the implementing regulation of the Defense

Production Act of 1950 which is designed to assure the timely

availability of industrial resources to meet current national

defense requirements and to provide a framework for rapid

industrial mobilization in case of a national emergency. DPAS is

generally thought of with respect to wartime mobilization,

however, it can be a valuable tool in accomplishing our peacetime

mission by preventing schedule slippages resulting from late

material/equipment deliveries.

b. Guidance for implementation of DPAS is contained in Part

12 of the FAR and EFARS. During the final design

biddability/constructibility review a determination must be made

as to whether or not the project will be included in the system. 

This determination must be made so that the appropriate contract

clauses can be included in the solicitation. Effective use of

the system during construction can be assured by:

(1) Assigning appropriate ratings to orders

(2) Tracking rated orders to insure they are receiving the

required priority treatment

(3) Providing timely response to requests for priority

assistance

(4) When necessary, discussing the requirements of the law

and potential penalties for noncompliance with suppliers

c. A detailed description of the system is contained in a

pamphlet entitled DPAS published by the Department of Commerce. 

The ovwerview section of the pamphlet is particularly informative

and is suggested reading for all contract administrators. Copies

of the pamphlet can be obtained by contacting the office of

Industrial Resource Administration, Room 3876, U.S. Department of

Commerce, Washington, D.C. 20230. DPAS is another potentially

valuable tool for accomplishing our goal of producing a quality

product in a timely manner. Its application should be considered

along with the other contract administration tools and utilized

as appropriate.
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d. If late arriving material causes an impact on national

defense or critical operations of other Government agencies, the

resident engineer is responsible for follow-up on the

effectiveness of the DPAS procurement. The resident engineer

must insist that the contractor and his subcontractors

comply with the contract provisions requiring submittal of copies

of all purchase orders.

e. Materials expediting.

(1) Construction contracts provide that the contractor be

responsible for procuring the materials and equipment according

to the contract specifications. Construction progress often

falls behind schedule due to delays in the delivery of materials

and equipment. The resident engineer ensures that the contractor

does the following: Orders all materials and equipment promptly;

specifies delivery dates that will meet the construction

schedules; expedites the submissions of required shop drawings;

maintains a vigorous follow-up of all orders; and keeps the

resident engineer informed of the progress of procurement. The

resident engineer also maintains a follow-up system to ensure

materials are ordered and delivered in sufficient time to avoid

work delays.

(2) If the contractor is unable to obtain satisfactory

delivery of materials and/or equipment through its own efforts,

an expediting service is

maintained in the district office to assist in such cases. When

it becomes apparent that the efforts of the contractor will not

obtain the desired results, the contractor should be advised to

submit a request for assistance from the appropriate element in

the district office. The following is a list of required items

on the request for assistance:

(a) Contract number and name.

(b) Contractor's name and address.

(c) Name of subcontractor who ordered the material.

(d) Purchase order number.

(e) Distributor's name and address.

(f) Product name and model number.

(g) Required delivery date.
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(h) Promised delivery date to job site.

(i) Project office contact point and phone number.

(j) Remarks (brief reasons for request; if overseas, state

request for military shipment or shipment at contractor's

expense).

(3) After a request for assistance has been submitted, it is

essential that the contractor keep the district informed of any

change which may alleviate the need for assistance or affect the

delivery dates.

7-4. Mobilization Areas.

a. The resident engineer should request a plan from the

contractor showing the use of the material storage and work

areas. This should include a layout of the work area with the

location of temporary sheds, buildings, utility connections, and

project and safety signs. If the work areas shown on the

drawings are unacceptable, the resident engineer should negotiate

an acceptable area for the contractor's mobilization and storage

requirements. The provisions of the contract regarding waste and

borrow areas and all utility connections should be coordinated

with both the DEH and the contractor to ensure that interruption

and shutdown procedures are followed.

b. Temporary construction project and safety signs may be

specified for individual construction contracts by the

contracting officer. When signs for civil projects are

specified, they must conform to EP 310-1-6, Graphic Standards

Manual. Project signs for military projects must also conform to

EP 310-1-6a & b, Signage Manuals, or they may be modified to meet

user requirements. The location of these signs will be indicated

on the area use plan. Additionally, information regarding the

Davis-Bacon ACt. Drug-Free Workplace, EEO, etc. shall be

prominently displayed on a jobsite sign.

7-5. Buy American Act.

a. The "Buy American Act" as stated in FAR clause 52.225-5

provides that the Government give preference to domestic

construction material and this is a standard clause in all USACE

construction contracts. With few exceptions, only domestic

construction materials may be incorporated into civil and

military construction work in the United States. The FAR 25.201

defines domestic construction material as:
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(1) An unmanufactured construction material mined or

produced in the U.S., or

(2) A construction material manufactured in the U.S., if the

cost of its components mined, produced, or manufactured in the

U.S. exceeds 50 % of the cost of all its components.

b. ACO's have the responsibility to actively enforce the

"Buy American Act" requirements. When you have questions

concerning the status of materials under the Buy American Act

provision, consult your contracting and legal counterparts. 

Cofferdams and other temporary structures are to be treated

as a permanent dam under the provisions of PL 100-371 and the

provisions of the Buy American Act applies unless the temporary

structures are detailed in the contract plans and specifications. 

(See CB # 88-9)

7-6. Changes and Modifications.

a. General. The basic construction contract expressly sets

forth the rights and obligations of the parties signing the

contract. The contractor is bound within the time specified to

deliver a facility, as prescribed by the detailed technical plans

and specifications, and he must do this in accordance with the

provisions of the contract. The Government has a legally

enforceable right to this performance. In return, the Government

is bound to pay the contractor a firm fixed price for successful

completion of its undertaking, and the contractor has a

corresponding legally enforceable right to such payment. After

the basic contract is awarded, any change within the general

scope of the contract will be accomplished by a contract

modification. Modifications can be executed only by the

Contracting Officer or the Administrative Contracting Officer. 

Guidance for processing modifications and claims is treated in

detail in EP 415-1-2, Modifications and Claims Guide; further

applicable guidelines are issued by each division and district as

local refinements in the administrative process.

b. Types of Modifications. FAR 43.101 defines a contract

modification as: "any written change in the terms of a contract." 

Modifications are executed pursuant to the FAR clauses of the

contract. The various types of FAR clauses under which

modifications are processed is discussed later in this section. 

For the purpose of this discussion, a modification to a contract

is a signed document altering a fixed-price construction

contract. FAR 43.103 defines a contract modification as either:
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(1) Bilateral. A bilateral modification, including a

supplemental agreement, is a contract modification signed by the

contractor and the Contracting Officer. Bilateral modifications

are used to (a) make negotiated equitable adjustments resulting

from the issuance of a change order, (b) definitize letter

contracts; and (c) reflect other agreements of the parties

modifying the terms of the contract.

(2) Unilateral. A unilateral modification is a contract

modification that is signed only by the Contracting Officer. 

Unilateral modifications are used, for example, to (a) make

administrative changes; (b) issue change orders; (c) make changes

authorized by clauses other than a changes clause (e.g., Property

clause, Options clause, Suspension of Work clause, etc.); and (d)

issue termination notices. Sound contract administration

practices require good faith efforts to execute bilateral

modifications. However, there are instances when issuance of

unilateral modifications is necessary. First, when all attempt to

negotiate and execute a bilateral modification are exhausted, a

unilateral modification should be issued. Second, if a

contractor has submitted a claim on which the Government

determines partial merit, a unilateral modification should be

issued for that portion of the claim which has merit and for

which a monetary amount can be determined with reasonable

certainty. These procedures for unilateral modifications will

facilitate the updating of schedules and recognition of the

impact on overall project completion.

c. Definitions.

(1) Change Order. FAR 43.101 defines a "change order" as

"... a written order, signed by the contracting officer,

directing the contractor to make a change that the Changes clause

authorizes the contracting officer to order without the

contractor's consent." The Government's right to make such

changes is provided for in the Changes clause at the time the

basic contract is awarded. The contractor and the surety have

agreed under the terms of the contract to execute changes that

are within the general scope of the contract. The "without the

contractor's consent" provides the contracting officer with a

powerful tool. This written order is binding upon the contractor

whether or not it contains an adjustment of price and time, and

the contractor is obligated by the basic contract to proceed with

the work as changed. This definition of change order differs from

the terminology previously used by the USACE. Historically, the

USACE referred to any within scope contract modification as a
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change order. This was used for bilateral as well as unilateral

modifications. The use of "change order" to describe a

unilateral directed modification again matches other agencies

terminology and is consistent with the FAR.

(2) Unpriced Changed Orders. An unpriced change order is a

written order under the "Changes" clause of the contract

requiring the contractor to accomplish the work prior to

definitization of the modification. Specific procedures must be

followed as required by EFARS 17.7503 and DFARS 217.75 when an

unpriced change order is issued. These procedures should be used

only when conditions of urgency or uncertainty dictate proceeding

with the work prior to reaching final agreement on the change. 

Since forward pricing of contract actions, including

modifications, is the preferred method of contracting.

(3) Supplemental Agreement. FAR 43.101 defines

"supplemental agreement" as: "a contract modification that is

accomplished by the mutual action of the parties" i.e., a

bilateral agreement making a change to the terms or conditions of

the contract. It may be either within or not within the scope of

the contract. A supplemental agreement is added as a supplement

to an existing contract simply as a matter of administrative

convenience. Additional work outside the scope of the original

contract should normally be avoided, however if required, it

should be limited to the following cases, and must be a

negotiated supplemental agreement.

(a) The work to be accomplished by supplemental agreement is

so interrelated with that already being accomplished under the

contract as to make utilization of a separate contractor

impracticable.

(b) The site is so remote and the amount of the work so

small, as to make obtaining bids from a contractor other than the

one already on the site impracticable.

(c) There is an extreme urgency in the performance of the

work and bids cannot be solicited immediately.

When approval is secured, the funds available, and the

contractor's surety has consented, this alteration to the

contract is processed in accordance with paragraph 7-6e.

(4) Scope.

(a) The proper medium for making changes within the general

scope of a contract and within the physical limits of
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the construction site is by a written order from the contracting

officer to the contractor in the form of a bilateral or

unilateral modification. Deletion of work is handled likewise,

unless it is a major reduction. If it is a major reduction, the

deletion of work will be handled under the Termination for

Convenience of the Government clause of the contract

(b) The proper medium for making changes that are outside

the general scope of the contract is by a supplemental agreement. 

The contractor has not agreed in advance to perform work outside

the general scope of the contract and such work cannot be

required without consent or acceptance by the contractor and his

surety. A supplemental agreement is a new negotiated contract

which must be founded upon offer, acceptance, and consideration;

and therefore, by definition is a bilateral agreement. The

magnitude, or scope, of a construction contract is determined by

the physical characteristics of the work contracted for, as

expressed in the basic contract. Enlarging the scope of the work

or adding materially to the work by supplemental agreements is

generally considered sole source actions, and have been

criticized as circumventing the intent of the Competition in

Contracting Act. The probability that additional work may be

done more conveniently, or even at less expense by the original

contractor, because the contractor is already on site, is not the

controlling factor in determining whether or not the work should

be obtained by competition.

d. Authorization to Issue Modifications. Modifications can

be signed by the contracting officer or anyone directly

authorized as an ACO, in accordance with AFARS 1.603.2 (91). The

letter of authorization from the contracting officer will state

the type of modifications the resident engineer can sign and the

monetary limitations. The contractor will be furnished the same

information.

e. Elements of the modification process. Modification

preparation is in accordance with district guidelines. 

Modifications of a criteria or design nature are usually

originated in the district or by the using service. User

requested changes on military construction (Army) projects must

be approved by the Corporate Group consisting of the military

construction division, the using agencies major command, and

HQUSACE. Modifications of a field nature are originated by the

resident engineer. Justification for a design change

requires that a definite benefit be derived by the Government as

a result of the change. Benefit normally means a change in which

the Government receives an improvement
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in function or service, based on design requirements, or a

reduction in time (check the contractor's schedule) or money in

the contract without affecting established quality. Once a

modification is deemed necessary, it is incumbent upon the

Government to proceed expeditiously with the processing

of that modification.

(1) Request for proposal (RFP). The originator of the

alteration to the contract prepares the revised drawings and

specifications. If these revisions inadequately describe the

alteration, additional sketches and descriptive wording may be

required to clarify the scope. The contractor may be required to

submit the proposal, including detailed breakdown for cost and

time, by a specific date (allowing a reasonable time). When the

contractor fails to meet the date, and the RE is unsuccessful in

securing a proposal, the contractor is advised that this

constitutes noncompliance with the contract. If the situation

persists, the matter should be forwarded to the district for

contracting officer assistance which may require issuing a

unilateral modification.

(2) Construction Funds Requests.

(a) Construction contract changes and cost increases, have

always been a subject of management attention. One of the

principle concerns of HQUSACE, the ASA(I∧L), customer

organizations (such as Air Force, other DOD Agencies,

etc.) and Congress has been whether appropriate actions are being

taken to prevent recurrence of similar problems in the future. 

Unfortunately, many requests received by HQUSACE fail to address

this and other critical issues. An impression may develop that

there is a lack of concern in the Corps beyond simply getting the

money to pay for the mistakes. Unless this impression is turned

around, the ability to successfully respond to valid change

requirements will be seriously jeopardized.

(b) There is no guarantee of funds approval for a

construction change. However, a well prepared justification will

enhance the process significantly. As a minimum, fund requests

should contain, in addition to basic project information such as

description, contract number, BAAN (for AF), etc., the following

information:

- A category for each change: user request, differing site

conditions, design deficiency, etc.

- The cost of each change.
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- The status of each change.

- The cost for each change category executed.

- The cost for each change category pending.

- The ratio, expressed in percentage, of CWE/PA.

- Identification of those changes which can be accomplished

by separate follow-on contract.

- The impact if the proposed work is not approved.

- If an A-E design is involved, identification of actions

underway with regard to possible liability. The status of the

Contracting Officer's evaluation will be provided, and, if a

decision is made not to pursue recovery, the basis for that

decision will be provided.

- If an in-house design is involved, the status of actions

underway to preclude future recurrence.

- Special efforts to reduce cost growth associated with

these changes, if any.

- Payment date upon which the agreement is predicated.

- The identification of follow-up actions intended, with

respect to avoiding similar circumstances and when they will be

accomplished.

(c) Timely Submittal of Requests. Certain funds requests

will require reprogramming approval. Current DOD procedure is to

make Congressional reprogramming submittals on the 10th of each

month. Only in rare cases will submittals be made in the months

of August and September. DOD processing time runs from 2-5

weeks. Field offices need to be aware of this schedule

to minimize adverse impact on time sensitive reprogramming

actions. Detailed justification is necessary to document prudent

business practices and to assure customers, as well as the

Congress, that efficient use of the taxpayer's dollar is being

made. Thus, complete candor in analyzing all circumstances

associated with overruns is essential.

(3) Government Estimate and Cost Analysis. An independent

Government estimate must be prepared and approved prior to

negotiating for any change order of $25,000 or more, or when the

combined amount of increases and decreases alone is $25,000 in

value. The resident engineer provides field
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data needed to develop the estimate which will be prepared either

in the resident office or in the district in accordance with

district procedures. Changes for less than $25,000 may be

evaluated using the detailed contractor's proposal and a cost

analysis prepared by the resident office (see EFARS 36.203,

Government Estimate of Construction Costs, for estimate

requirements).

(4) Technical Analysis. The FAR defines technical analysis

as the examination and evaluation by experienced personnel having

specialized knowledge of the proposed quantities and kinds of

materials, labor, processes, special tooling, facilities, and

associated factors in the proposal; in order to determine and

report on the need for and reasonableness of, the proposed

resources assuming reasonable economy and efficiency (See FAR

15.801). For all proposals where cost and pricing data is

required, a technical analysis should be prepared. If the

contracting officer decides to waive the technical analysis, the

modification file should be appropriately documented as to the

reason for the waiver. The technical analysis should include all

the items noted in FAR 15.805-4. The format for the portion of

the technical analysis specifically addressing the proposal

should clearly emphasize each item required by the FAR, even if

to state that it is not applicable. This guarantees that all

pertinent topics are addressed. Additional guidance on preparing

a good technical analysis can be found in EP 415-1-2.

(5) Audits. When a proposal including cost or pricing data

is received, the resident engineer reviews the proposal for

completeness, prepares a technical analysis of the proposal, and

forwards the proposal (with an SF 1411, Contract Pricing Proposal

Cover Sheet, signed by the contractor) and the technical analysis

to the construction division with a request for an audit. If the

estimated value of the changes to the contract exceed $100,000, a

written Business Clearance Memorandum (BCM) is required prior to

initiating price negotiations in accordance with AFARS 15-807,

Pre-negotiation Objectives. Negotiations on price cannot proceed

until the audit is available. However, discussions concerning

the technical analysis, regarding scope and other matters not

involving price can be resolved with the contractor, insofar as

possible, while the audit is in process to reduce the time

required to negotiate the modification.

(6) Negotiation Objectives. The FAR requires that the

administrative contracting officer (ACO) establish prenegotiation objectives before negotiation of any pricing action. 

This requirement can be fulfilled in several
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different ways. The scope and depth of the analysis supporting

the objectives should be directly related to the dollar value,

importance, and complexity of the pricing action. For all

modifications over $100,000, and for most other types of

negotiated contract acquisitions, AFARS 1.691 requires that a

Business Clearance Memorandum (BCM) be prepared and retained

in the contract file. For all other types of modifications under

$100,000, it is encouraged that informal pre-negotiation

objectives be prepared before proceeding with negotiations. The

purpose of a Business Clearance Memorandum (BCM) is to document

that a proposed contractual action represents good business

judgment, conforms to Federal, DOD, and Army acquisition

policies, and that the price established is fair and reasonable.

The BCM serves as the historical record of the business and

pricing aspects of a contract action. It shows the significant

facts that were considered in reaching agreement and how these

facts influenced the judgment of the contracting officer. The

BCM must satisfy the requirements of FAR 15.807 and FAR 15.808. 

The BCM generally consists of two parts as follows:

(a) Pre-negotiation Business Clearance Memorandum (PreBCM). 

Upon receipt of the contractor's proposal, DCAA audit, pricing

and contract administration reports, and upon the completion of a

thorough evaluation of the technical aspects, price and proposed

contract terms; a PreBCM shall be prepared setting forth all the

significant details of the proposed contract action and the

course the contracting officer proposes to pursue. The PreBCM

demonstrates that the negotiator is adequately prepared to enter

negotiations, that the significant facts have been evaluated, and

the judgments made in arriving at the prenegotiation objective

are sound. The PreBCM must meet the requirements of FAR 15.807.

(b) Post-negotiation Business Clearance Memorandum

(PostBCM). Upon the completion of negotiations, the PostBCM

shall set forth in detail the negotiation results obtained, in

accordance with AFARS 1.691-3. The PostBCM completes the

historical record and documents that the agreement reached is

fair and reasonable. It reconciles the differences between the

PreBCM objective and the negotiated settlement by presenting

additional facts obtained during negotiations. The PostBCM must

meet the requirements of FAR 15.808.

(7) Negotiations. The modification cannot be issued for a

price greater than the Government estimate. (except in the case

where the estimated credit is equal to or less than the

contractor's proposal). The contractor's proposal, audit, and

signed pre-negotiation memorandum of objectives are
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compared with the Government estimate, and pricing is resolved by

negotiations with the contractor. If it is determined that the

contractor's proposal is in error, the contractor is requested to

change the quotation, preferably on the face of the original, and

sign the changes. If the Government estimate is in error, it may

be revised in accordance with guidelines furnished in ER 415-345-

42, Costs, Cost Estimating, and Reserves for Contingencies, and

the EFARS. In addition, a statement is included in the record of

negotiations stating specifically where and why the contractor's

quotation or the Government's estimate was revised. At the

conclusion of negotiations a complete price negotiation

memorandum is prepared and signed by the negotiator. The

negotiation record should clearly indicate the basis for

agreements reached, any outstanding disagre Government estimate,

reliance placed on the contractor's cost or pricing data in the

negotiation, and the basis for any allowed time extension,

preferably from an analysis of the contractor's construction

schedule, material deliveries and any equipment changes.

(8) Preparation of the modification package. The final

modification package should include the RFP, the funds

reservation, the contractor's original and revised proposals, the

original and revised Government estimates, the audit (if

required), the pre-negotiation objectives, the price negotiation

memorandum, and the BCM (if required). All records of

negotiation are either included in the body of, or attached to,

the price negotiation memorandum supporting the final settlement.

(9) Notice to proceed. A notice to proceed is effective the

day the authorized representative of the Government signs the

document. A notice to proceed cannot be issued on military

construction until funds are certified available by the district. 

Civil works construction follows the requirements of EFARS

52.2/9109(d), Continuing Contracts. If a notice to proceed is

needed prior to issuing the modification package, the district

should be advised.

f. Changes clause. The "Changes" clause provides that the

CO may unilaterally make changes to the contract within the

general scope of the contract. The clause further provides that

if such change orders affect the contract time and/or price, an

equitable adjustment shall be made and the contract modified

accordingly. If due to the urgency of work, the normal

process as stated in the general paragraph above is inadequate,

then a two-part change order may be used. The first part

prescribes the work to be accomplished and/or an
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amount for payment purposes, expressly stipulating that such

amount is tentative. The second part will be issued at a later

date and will include the final adjustment of the change in price

and time. It is important when issuing a two-part change order

to follow the first part with the second part as soon as

possible, so that the contractor or the Government cannot

figure the cost of the change on a cost-plus percentage cost

basis, which is a prohibited practice.

g. Differing site conditions. It is the contractor's

responsibility under the contract clause, "Differing Site

Conditions," to notify the contracting officer in writing of a

condition differing from that shown in the contract documents,

and to preserve the site until a Government inspection is

completed. The resident engineer promptly investigates the site,

and records existing conditions in photographs and memorandums. 

The resident engineer usually notifies the district of the

conditions, and relies on their expertise for support during the

investigation. If the investigation deems the site to have

differing conditions, the records of the investigation become the

basis for an RFP.

h. Excusable Contract Delays.

(1) Time extensions due to weather. Time extensions in this

context apply only to the contract clause entitled "Default" and

more specifically to the time extensions for weather. When time

extensions for weather delays are being considered, there are two

fundamental principles that must be followed: (a) The contractor

must have been actually hampered in a manner that would delay

final completion of the job and, (b) the weather conditions

must have been other than those which could have been anticipated

in the approved schedule. Also, the contractor must not have

willfully or negligently caused the delay. Generally, the

contractor must notify the contracting officer of delays caused

by unusually severe weather. The contracting officer bears the

obligation of extending contract time for such delays. The basis

for evaluating the length of time for the delay is described in

ER 415-1-15, "Construction Time Extensions for Weather". The

contract provisions should already contain data on weather

normally expected to occur. The contractor is advised in writing

on a monthly basis of the results of the evaluation and the

allowable time delays. A suspense date is given the contractor

for response. If the contractor's concurrence is not received,

negotiations may be warranted. Negotiations with the contractor

are based on the progress schedule, which is updated to determine

the effects of the time extension on construction. At the

conclusion of negotiations, the
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evaluation of time delays and the progress schedule become the

basis of the recommendation that a modification be issued. Any

necessary modifications as a result of weather delays will be

issued on not less than a quarterly basis. Under this contract

clause, no consideration is given to cost.

(2) Time extensions due to material delay. It is the

contractor's responsibility to notify the Government of any

delays caused by suppliers. This notification includes specific

features of work affected, the date material was ordered, the

original scheduled delivery and the new anticipated delivery

date. These dates should be tied to the construction

progress schedule or critical features. Additionally, the

contractor must demonstrate that negligence on the part of the

prime contractor, subcontractor or supplier at any tier was not

the cause of the delay by listing actions taken to improve

delivery, and efforts made to secure the supplies from other

sources. The resident engineer examines the facts and

either informs the contractor, in writing, that the request has

no merit, or forwards the entire package to the contracting

officer with recommendations that a modification to the contract

be issued.

i. Suspension of Work.

(1) Orders to suspend work under the "Suspension of Work"

clause (FAR 52.212-12, Suspension of Work) of the contract should

not be issued unless absolutely necessary, as the Government may

be liable for any damages caused by issuing such orders. Partial

rather than total suspension should be used whenever possible. 

Suspension orders must be issued by the contracting officer. The

resident engineer should notify the district when a suspension

order is necessary. Suspension orders may be necessary to

prevent the contractor from proceeding with work that will have

to be removed or changed.

(2) The clause allows the Government a reasonable time to

make decisions and revise designs. Only after it is determined

that a modification cannot be issued in a reasonable time to

prevent stopping all or part of the contractor's work, will a

suspension order be issued.

(3) The resident engineer establishes a suspense on all

actions required to permit resumption of suspended work. The

district is advised immediately to take necessary action to

rescind the suspension as soon as work can be resumed. Partial

lifting of a suspension should be requested when practicable. A

delay in lifting a suspension of work may substantially

increase the final cost and time for completion.
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(4) Since the Government will be liable for additional costs

and/or time resulting from an unreasonable suspension of the

work, every effort should be made to investigate the the effect

of the suspension. The resident engineer requests contracting

officer action, if needed, to direct the contractor to reschedule

or revise work procedures in order to reduce the effect of such

suspensions.

(5) Immediately after issuing a suspension of work, the

resident engineersupervises an inventory of equipment and

personnel made idle or delayed bythe suspension. Careful records

are established and maintained to accurately record the effects

of the suspension.

j. Contract Requests, Disputes, and Claims.

(1) General. The resident engineer assumes responsibility

to resolve all questionable areas of disagreement as soon as they

arise. Correspondence and reports must properly identify actions

on disagreements in accordance with the definitions that follow

in paragraph (2). Improper identification of a "contract

request" as a "claim" may result in triggering actions

unnecessarily. Improper identification and action on a claim

could have severe repercussions. If the first written request by

the contractor disagrees with the resident engineer's on any

subject, the resident engineer examines the facts and determines

if the matter has merit. The contractor is given a written reply

including complete justification of the resident engineer's

position based upon plans and specifications. If complete merit

is determined, the contractor is advised that a modification will

be processed. If partial or no merit is determined, the

agreement becomes a dispute. If the contractor responds with a

request for a decision by the contracting officer, the

contractor's letter is forwarded promptly to the district along

with the resident engineer's comments and recommendations.

The resident engineer always acknowledges letters from the

contractor and states in the reply the disposition of them. 

Problems should be settled at the lowest possible level.

(2) Definitions. The following definitions are provided to

assist in determining the legal level of disagreement, if any.

(a) Contract request. Any written request for time, money,

or other relief for which a contracting officer's decision has

not been requested.
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(b) Dispute. A disagreement between the contractor and the

contracting officer, or any of his authorized representatives,

which is not a claim because it does not meet the precise

criteria for a claim. Disputes must be handled expeditiously to

avoid escalating a dispute to a claim. As soon as a dispute is

known to exist, the resident engineer must begin recording all

facts, keeping accurate records, and taking photographs where

applicable.

(c) Claim. A "Claim" is defined in the FAR as a written

demand by one of the contracting parties, as a matter of right,

the payment of money in sum certain, the adjustment or

interpretation of contract terms, or other relief arising under

or relating to the contract. A written demand by the contractor

seeking adjustments to the contract must meet the requirements of

the Contract Disputes Act of 1978 for it to be properly

classified as a claim. A voucher, invoice, or other routine

request for payment that is not in dispute when submitted is not

a claim.

(3) Initiation of a Claim. A dispute can become a claim

only when it fully meets the definition stated above. Contractor

claims must be submitted in writing to the contracting officer

for a decision. The CO must document the contract file with

evidence of the date of receipt of any submission deemed to be a

claim. However, a written demand or written assertion by the

contractor seeking the payment of money exceeding $50,000 is not

a claim under the Contract Disputes Act of 1978 until certified

as required by the "Disputes" clause of the contract (FAR 52.233-

1, Disputes). A contractor's claim exceeding $50,000 must be

accompanied by a certification which includes the following:

- The claim is made in good faith;

- Supporting data is accurate and complete to the best of

the contractor's knowledge and belief; and

- The amount requested reflects the contract adjustment for

which the contractor believes the Government is liable.

The aggregate amount of both the increased and decreased costs

must be used in determining when the dollar thresholds requiring

claim certification are met. If the contractor is an individual,

the certification must be executed by that individual. If the

contractor is not an individual, the certification must be

executed by a senior company official in charge of the project or

an officer or general partner of the contractor. A contracting

officer's decision must be issued
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within 60 days of the date the Government receives a properly

endorsed contractor's request for a CO decision. The resident

engineer promptly advises the district of each claim and forwards

the claim and all pertinent supporting data with his

recommendation. If a determination is made by the contracting

officer that the claim has merit, the claim then is subject to

negotiation and is appropriately processed as a contract

modification.

(4) Interest on Claims. The Government must pay interest on

a contractor's meritorious claim on the amount found due and

unpaid from the date the contracting officer receives the claim. 

If it is over $50,000, it must be properly certified in

accordance with FAR 33.201(a) before receipt is acknowledged by

the Government.

7-7. Officer Engineering.

a. General. Some of the main duties of a field office are

as follows:

(1) Keep all engineering records.

(2) Maintain master sets of plans and specifications.

(3) Prepare partial and final contract payment estimates.

(4) Prepare progress reports.

(5) Review and check shop drawings, certificates, and

samples of materials to be used by the contractor.

(6) Prepare cost estimates.

(7) Negotiate change orders and prepare modification

packages.

(8) Solve engineering problems, within their capability.

(9) Disseminate engineering data to quality assurance

personnel.

(10) Assure that drawings used to produce record drawings

are current and factual.

(11) Keep abreast of potential claims.

(12) Monitor contract funds.
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b. Payments to the contractor.

(1) The resident engineer reviews and approves all progress

payment estimates. Payments to the contractor and payment

frequency are set forth in the "Payments Under Fixed Price

Construction Contracts" or an equivalent clause of the contract. 

Frequency of payment is usually specified as monthly, but the pay

period date should be mutually agreed upon by the resident

engineer and the contractor. The item to consider in

establishing a pay period date is the workload of the resident

engineer and the district. If possible, pay days for various

contracts should be spread out over the month. The resident

engineer must comply with the requirements of the Prompt Payment

Act as described in paragraph 7-8.

(2) Progress payments to the contractor are based on the

value of acceptable work the contractor has placed from one pay

period to the next. Preferably, agreement is obtained with the

contractor on progressive earnings through consultation prior to

preparing the partial pay estimate. The contractors breakdown of

the payment estimate should be compared to the appropriate lineitem pay items in the NAS.

(3) Partial pay estimates are prepared by the resident

engineer on ENG Form 93. Estimates are numbered consecutively

and submitted for each pay period in which earnings accrue

throughout the life of the contract, with the last estimate

marked "final." If no money is earned during a pay period, that

period is included in the next pay period in which earnings

accrue. The date on the estimate is the inclusive period covered

by this estimate. The estimate must be arithmetically correct. 

The estimates may be signed and approved by the resident

engineer, if so authorized. The contractor or authorized

representative should sign the original before forwarding the

estimate for payment to the district, but this is a requirement

only on "final" payment. The contractor does not have to agree

with the amount being paid. When a NAS is used, it should

provide the supporting data for interim pay estimates. When

there is an unreconciled disagreement in the amount of contractor

earnings, the resident engineer advises the contractor of the

differences and forwards the estimate to the district for

payment. The contracto "Disputes" clause. The resident engineer

should submit a report of the facts relating to the protest to

the district.
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(4) The contractor may be paid for materials onsite which

have not been incorporated into the construction, if an invoice

is provided with the pay estimate. Material stored offsite may

be included for payment only when the specific authority is

provided. Payment for materials stored offsite is made against

the contractor's furnishing of paid invoices. Only then does

the Government have title to the material. Payment is made only

on approved material to be incorporated in the job which is

properly stored and protected. Care is taken to deduct the cost

of the material previously paid for as such. When NAS is used,

work activities may be broken down into material delivered and

materials installed to permit easier control for payment purposes

and to eliminate double bookkeeping, and the necessity of

invoices to support payment for materials.

(5) Retainage is deducted in accordance with the provisions

of the payments clause. If the performance date covered by the

estimate extends beyond the established contract completion date

as modified, liquidated or actual damages are deducted in

accordance with the terms of the contract. When the contractor

is entitled to additional time excusable under the terms of the

contract, liquidated damages are not withheld from monies due the

contractor merely because a formal modification was not issued. 

Should such a situation arise, the resident engineer attaches a

statement of facts to the payment estimate form. Where

liquidated damages are not stipulated by the contract, and it has

been determined by the contracting officer or the authorized

representative of the contracting officer that there are no

actual damages due to delays in the work for which the contractor

should be held liable, the following statement is submitted with

the estimate: "No damage to the Government occurred as a result

of delay in completion of the contract." A statement of facts is

attached to justify having no requirements for assessment of

damages. When a contractor is lagging behind schedule, when

deficiencies or controversy exists over the amount of additional

time that is excusable, enough pay is held back to cover all

possible liquidated or actual damages or corrective work. The

resident engineer possesses and may exercise the right to

withhold monies for operation/maintenance manual submittals,

defective workmanship, wage rate violations, failure to correct

deficiencies, unsafe conditions, and poor administration of the

contract. However, funds withheld will not exceed the

value of the disputed items.
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(6) When a contract contains estimated quantity payment

items, the "Variation in Estimated Quantity" contract clause is

operative (FAR 52.212-11, Variation in Estimated Quantity). The

clause provides that when the actual quantity varies more than 15

percent above or below the estimated quantity in the contract bid

schedule, an equitable adjustment in the contract price will be

made on demand of either party. All appearances of overrun or

underrun in costs of line items should be called to the

district's attention when they are first discovered and again

when submitting the pay estimate. Separate from the estimate, a

report is furnished to the district giving the facts concerning

the overrun or underrun of items of work and cost. An overrun or

underrun occurs when it is determined that the estimated quantity

given in the bid schedule is not the final quantity. The

computations of the final price in excess of 115 percent of the

original bid price should reflect the fact that the contractor

has been paid fixed costs plus mobilization and demobilization

costs. Therefore, the new unit cost will probably be less than

the contract unit costs. Although the unit price may be

increased for quantity underruns of 15 percent or greater, the

total costs for the line item may not exceed the contractor's bid

for the line item. Be aware that a large variation may

be tantamount to a differing site condition. The cause of the

variation must be considered. When added work is directed, a

modification to the contract should be considered rather than a

variation. This modification may include an adjustment for time

only if the final quantity is between 85 percent and 115 percent

of the original bid quantity and the adjustment delays contract

completion.

(7) The final estimate is based on an exact summary of all

work performed under the terms of the contract. Computation

sheets are prepared to back up each final estimate. The

computation sheets should contain necessary drawings, sketches,

cross-sections, weight tickets, adding machine tapes, and

computations. All items are indexed with the computation sheets

and compiled for ready review and checking. All computations are

checked, signed, and dated, and computation sheets are kept

current as items of work are completed. The completed

computation sheets and final estimates can be submitted to the

district for review and final payment without lengthy delay. 

Delay in making the final payment may result in Government

liability for interest on late payment. Accordingly, all final

payment actions should be processed promptly. Outstanding claims

should not delay final payment. The contractor should sign the

final payment estimate and the release statement with a listing

of claims as exceptions to the release.
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c. Progress and progress reporting.

(1) Progress schedule. Within 5 days of commencing work, or

a length of time otherwise specified, the contractor must submit

to the resident engineer for approval a realistic progress

schedule for the prosecution of the contract work. The schedule

must be in the specified format and should include sufficient

detail to indicate how the contractor plans to meet the

required completion date or dates. It may be a modified network

or a fully computerized NAS. As a minimum, the salient features

of work under the contract must be shown. The planned operations

for each feature having a separate completion date must be

identifiable in the schedule. The resident engineer may guide

the contractor by means of a sample schedule; however, the sample

schedule should be for some other job to avoid directing the

contractor's work sequence. The resident engineer carefully

reviews the contractor's submitted progress schedule, and if it

is found to be practical, adequate in detail, well balanced in

regard to value, and in compliance with contract requirements,

the schedule should be approved by the resident engineer. The

magnitude and complexity of the project, will determine the level

of detail that will be required from the contractor. The

contractors NAS submittal should contain a realistic schedule,

appropriate dollar distribution for the various sections of work

and sometimes also manpower projections. This approach will

assist the resident engineer in managing the contract schedule. 

If the schedule is not satisfactory, it is returned with comments

to the contractor for correction.

(2) Schedule changes. To be effective, a progress schedule

must be maintained up-to-date to reflect the current operating

procedures and all changes in the contract work. The schedule

submitted and approved must be followed by the contractor. When

the contractor changes the sequence of actual operations from

that shown on the schedule, the resident engineer requires the

contractor to revise the schedule, at no additional cost to the

Government, to indicate how the contractor currently plans to

complete the work within the time allowed by the contract. The

contract requires the contractor to modify the schedule to

include any revision necessitated by alterations in the work for

which a notice to proceed has been issued. After the change

occurs, these revisions should be incorporated into the

schedule by the contractor for the succeeding progress update. 

When the contractor fails to modify the schedule, the resident

engineer directs the modification by the next update. Any major

revisions to the schedule by the contractor are subject to the

approval of the resident engineer or by the ACO.
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(3) Network analysis. When a network analysis system (NAS)

has been specified, the contractor is normally required to update

the diagram or analysis periodically for progress and submit a

narrative report explaining actual or anticipated delays and

actions taken or proposed to overcome these delays. The resident

engineer not only enforces the contract provisions for submitting

the reports, but also carefully reviews the content of the

contractor's report, checking it against the findings of the

Government's QA inspections for comparative differences,

veracity, appropriate actions, and notice of claims, among other

considerations. When NAS is used for a schedule, the analysis of

time impact on the job is determined by adding or deleting

activities (time and value), entering actual progress to date as

of the date the change was ordered, and making new analysis

computations. This analysis should be used in negotiating the

time which might be due to the contractor for an alteration to

the contract, as it automatically considers "ripple" effects in

the network process. Information on administering NAS is found

in ER 1-1-11.

(4) Progress reporting. The resident engineer provides all

necessary field input required for the Automated Management

Progress Reporting System (AMPRS) in accordance with district

policy and procedures. When requested, a special report of

actual progress is forwarded to the district by the resident

engineer. Actual progress versus scheduled progress should be

adequately delineated and significant variations should be

explained. Actual or anticipated delays should be mentioned along

with actions which the contractor or resident engineer is taking

or proposes to take to regain the schedule. When the contractor

falls behind schedule, all facts concerning the progress, delays,

laxity on the part of the contractor, estimated time extension,

and estimated completion date should be reported to the

contracting officer. Recommended actions to the contracting

officer, if any, should also be shown on the report. It is very

important that each resident office provide accurate and timely

data input to the AMPRS system, since many other management

levels use this data for reporting and forecasting of future

requirements.

d. Submittal.

(1) Submittals referred to in this paragraph include all

shop drawings, samples, letters of certification, tests, and

engineering information that required by the contractor for

quality control and by the contract documents. All submittals

are processed in accordance with ER 415-1-10.
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(2) During the design phase for each contract, the district

engineering division or the A/E prepares a list of required

submittals. This list should be available at the time of the

constructibility review. It is prepared on ENG Form 4288

(Submittal Register) and is made a part of the special clauses of

the specifications. The list notes the submittals considered to

be an extension of design and shows the level of review required

(government approved, or information only). During the

constructibility review, this list may be edited. The notations

in this list provide advance warning to the resident engineer and

the contractor of items requiring additional time-consuming

coordination.

(3) Submittals are classified as "Government approved" or

"information only." Submittals which will always require

government approval are: extensions of design, critical

materials, deviations, or those involving equipment that must be

checked for compatibility with the entire system. All submittals

not requiring government approval are for information only.

Government personnel shall perform quality assurance reviews of

information only submittals to assure that the contractor's

quality control program is properly handling submittals. The

number of reviews will be at the FOA commander's discretion,

however a minimum of 10 percent of all information only

submittals will be reviewed. The resident engineer or his staff

reviews all submittals and shop drawings submitted for Government

approval, to verify conformance with contract requirements and

should expedite those that are critical. All unsatisfactory shop

drawings are returned to the contractor for correction and

resubmission. When the resident engineer is unable to check the

drawings, the technical expertise of the district is used. When

the drawings have been carefully checked by personnel other than

resident engineer staff, they must be returned to the resident

engineer for approval action, then returned to the contractor. A

predetermined policy establishes internal distribution among the

resident and district offices and the using agency.

(4) One of the first administrative actions of the

contractor after NTP is the submittal of ENG Form 4288, as given

in the contract specifications, including any changes needed. 

This revised list is reviewed for approval and returned promptly

to the contractor. Timely and complete submittals of shop

drawings contribute materially to the successful completion of

the job by the contract completion date. The submittal list in

ENG Form 4288 provides a record indicating the status of

submittals and should be checked at frequent intervals to ensure

necessary approvals are provided sufficiently in advance of need

to avoid delays.
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If it is determined that the contractor is dilatory or negligent

in furnishing shop drawings, the resident engineer requests in

writing prompt action by the contractor to avoid delays. ENG

Form 4025, (Transmittal of Shop Drawings, Equipment Data,

Material Samples, or Manufacturer's Certificates of Compliance)

is used as the transmittal document for all submittals.

(5) It is essential that shop drawings not only be submitted

on time, but expeditiously handled by reviewers. To maintain

adequate control of submittals, the resident engineer institutes

a systematic suspense and follow-up procedure for handling shop

drawings.

(6) Reviewing requests for approval of methods and

procedures for accomplishing such work as blasting, ground water

control, earthwork compaction, grouting, pile driving, and

similar work utilizing certain equipment and materials; attention

should be directed not only to the requested methods and

procedures; but also to the flexibility of varying these to meet

all possible conditions. Approvals of this type should be made

contingent upon obtaining the satisfactory specified results from

the proposed methods and procedures.

(7) Any office having the delegated authority to approve

material submittals must maintain a technical reference library

to serve as the basis for these official decisions. The district

office technical library is available to resident engineers. 

However, each resident office should maintain sufficient

reference materials to determine that materials and workmanship

comply with applicable standards such as American Society of

Testing Materials (ASTM), SMACNA, and American Association of

State Highway and Transportation Officials (AASHTO), etc.; USACE

specifications; manufacturer's descriptive information and

installation instructions; estimating manuals; and other

appropriate documents. Allowance are made in each annual budget

to update and/or purchase technical publications.

e. Photographs.

(1) Each resident office should have a camera and supplies

for taking construction photographs, or an agreement may be made

with the using service to use their photography equipment. 

Photographs are usually taken of the following:
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(a) Views of major construction projects during various

stages of completion. These photographs are used later by

HQUSACE, Divisions, and Districts to compile a supply of quality

photographs for use in command presentations.

(b) Scenes of claim situations, potential claim areas, or

changed conditions.

(c) Detailed views of work in place for which removal has

been ordered because of noncompliance with plans and

specifications.

(d) Construction in which unusual difficulties have been

overcome or where the subject is of technical interest.

(e) New methods of construction.

(f) Property or material damages.

(g) Accident evidence and/or sites or potential safety

hazards.

(2) HQUSACE occasionally requests 35mm color slides of

completed military construction facilities be submitted when

construction is completed. Black and white photographs and 35mm

color slides which illustrate, in detail, phases and sequences of

construction and new methods and equipment are particularly

desirable, as are video taping and time lapse movies of certain

projects or construction activities. This material can be used

for construction training programs, special presentations, and

accident analysis. A complete description and identification

should be prepared for each picture. The district develops and

files the photographs and provides guidance for photographing

other non-routine items.

f. Record drawings.

(1) The contractor is responsible for maintaining at the job

site a current set of record drawings (formerly referred to as

as-built) marked up to indicate all changes to the original

drawings. The contractor's record drawings should be reviewed

monthly by the resident engineers staff to make sure that they

are current. Additionally, it is advisable for the Government's

representative on site to note changes as they are observed.

Such changes should include, but are not limited to, sketches

that are provided in modifications to the contract, approved

deviations, and details on shop drawings varying from original

drawing requirements.
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As construction work nears completion, in its entirety or by

major phase, the contractor must submit a marked-up set of record

drawings to the resident engineer. This set is usally combined

with other items not noted on the Government representative's

marked-up set. When the contract does not require the contractor

to maintain a set of record drawings.

(2) The resident engineer is responsible for assuring that

the record drawings reflect final as-built conditions. Record

drawings are forwarded to the district when the contractor's work

is substantially complete or when phases of the work are

complete. The district can then correct the original tracings

and, if practicable, have the reproducible copies ready to return

with the DD Form 1354, Transfer and Acceptance of Military Real

Property, when completed construction is transferred to the using

agency. It is not necessary to retain the drawings until such

items as painting, seeding, and clean-up are completed.
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7-8. Prompt Payment Act.

a. Public Law 100-496, The Prompt Payment Act Amendments of

1988, significantly changes the bill paying practices of the

Federal Government. These changes apply to contracts awarded,

contracts renewed, and contract options exercised after March 31,

1989.

b. Federal Acquisition circular (FAC) 84-45 contains changes

to the Federal Acquisition Regulations to incorporate the

required revisions. These revisions include elimination of the

15 day grace period during which the Government was entitled to

make invoice payments without incurring interest penalties, and

the establishment of an additional penalty if a contractor is

not paid an interest penalty owed by the government.

c. In addition, the law contains provisions applicable

specifically to construction contracts, which are in turn

included in the FAR. The following paragraphs will synopsize the

construction contract payment requirements and procedures for

implementation of these regulations.

(1) The "designated billing office" is defined as the office

or person designated in the contract to first receive the

contractor's invoice or request for payment. In most cases, the

designated billing office will be the Area, Resident or Project

office that is administering the construction contract and should

be so named in the solicitation. Add this item to your

Biddability, Constructibility, Operability (BCO) review

checklist.

(2) The payment "clock" starts to run on the date that a

"proper invoice" is received at the designated billing office. 

(The law also provides for starting the clock upon "constructive

acceptance", but this only applies to construction in cases in

final payments and payments for partial deliveries that have been

accepted by the government and are priced separately in the

contract.) Each invoice shall be date stamped on its face

immediately upon receipt by the office or individual named in the

solicitation. If the designated billing office fails to stamp

the invoice with the actual date of receipt, the "clock" starts

on the date of the invoice.

(3) A "proper invoice" is defined by FAR clause 53.232-27

(a) (2) and must include, among other items, "substantiation of

the amounts requested and certification in accordance with the

requirements of clause 52.232-5". Payment will not be made 
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without contractor substantiation of the amounts requested;

certification that previous amounts were expended in accordance

with the contract; subcontractors and suppliers have been paid

from previous payments, and will be paid promptly from the

payment requested; and that the prime contractor's payment

request does not include any amounts to be withheld or retained

from a subcontractor. The certification must appear exactly as

stated in the aforementioned clause and be fully executed by the

contractor. The degree of substantiation required will depend

upon the type of work involved and will be left to the discretion

of the contracting officer. In most cases, however, an update of

the approved contract price breakdown indicating itemized

completion percentages that were established by mutual agreement

between government and contractor project personnel

would constitute substantiation of work-in-place.

(4) If an invoice is found to be improper or defective, as

defined by FAR clause 52.232-27 (a)(2), the contractor must be

notified of the defect within 7 days after receipt of the

invoice. It is recommended that the initial notification be

placed telephonically (see clause 52.232-27 (a) (2), (vii)) and

then confirmed in writing. The "clock" is effectively stopped

upon notification of the defect and the whole process starts over

with the resubmission of the corrected invoice. Disagreement

between the Government and the Contractor over the payment

amount, issues of contract compliance or retainage does not form

the basis for finding the invoice to be defective and requiring

resubmission. However, since clause 52.232-27 (a)(4)(iv) states

that "Interest penalties are not required on payment delays due

to disagreement. . . . .", it is imperative that the ENG Form 93

be annotated to document the delay and alert the designated

payment office not to pay interest during the delay period.

(5) If the Government takes longer than 7 days to notify the

contractor of an invoice defect, the subsequent payment period

for processing the corrected invoice is shortened by the number

of days that the Government exceeded the 7 day requirement (e.g.,

if the specified due date is 14 days after receipt, and the

Government takes 10 days to notify the contractor of a defect,

payment of the corrected invoice is due 11 days after receipt).

(6) The due date for progress payments shall be 14 days

after receipt of a proper payment request. This requirement is

contained in P.L. 100-496 and is not subject to negotiation.
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The FAC does provide for making a determination as to a contract

or class of contracts and specifying, in the solicitation, "a

period longer than 14 days if required to afford the Government a

practicable opportunity to adequately inspect the work and to

determine the adequacy of the contractor's performance....". The

Office of Management and Budget (OMB) Circular A-125 states that,

"extended payment periods would not

be appropriate... for the mere convenience of government

employees, or to avoid any possibility of making late payment." 

In order to carry out the Congressional intent, determinations to

specify longer payment periods shall be made by the Contracting

Officer and shall be documented by written justification in the

contract file. Current feedback from the field indicates that

where ENG Form 93's are transmitted electronically to the

payment office, the "50 percent rule" (in the payment office by

close of business on the day that represents half the pay period,

or in this case, the 7th day) can usually be met.

(7) The release of retained amounts shall be based on the

Contracting Officer's determination that satisfactory progress

has been made. Payment is due within 30 days, or other specified

period, after release is approved.

(8) On final payments, we don't have the latitude of

specifying a longer payment period. Payment is due either the

30th day after receipt of the invoice or the 30th day after

Government acceptance of the work, whichever is later. Where

final payment is subject to settlement actions (e.g., release of

claims), acceptance is deemed to have occurred on the effective

date of settlement.

(9) If a contractor is overpaid (his performance is later

found not in conformance with the contract specifications or he

has held retainage from a subcontractor and was paid the full

amount), the Government is entitled to interest, and the interest

must be deducted from the next available payment to the

contractor. Although clause 52.232-5(d) predicates such action

upon the contractor's discovery of the "unearned amount", there

may be instances where it is necessary for the Government to

provide information for discovery.
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(10) Another major revision is the addition of some very

detailed provisions applying to the payment of subcontractors. 

The highlights are:

(a) The provisions flow down to subcontractors and suppliers

at all tiers. The prime contractor must include a contract clause

requiring each of its subcontractors to flow down these same

requirements to each of their

subcontractors.

(b) Contractors and subcontractors must pay their

subcontractors within 7 days of receipt of their respective

payment. They may not specify longer payment periods in their

subcontracts.

(c) Contractors and subcontractors must pay interest to

their subcontractors for payments made after the due date (7th

day).

(d) Interest that the contractor pays a subcontractor cannot

be charged to the Government.

(e) The Contracting Officer must be provided copies of

retainage and withholding notices issued to subcontractors.

(11) While the section payments to subcontractors

constitutes a large portion of FAR clause 52.232-27, the Congress

did not indicate it intended to place the Government in an

enforcement role between the prime and subcontractor on payment

issues. Although the requirements to provide the contracting

officer with copies of correspondence to subcontractors may

indicate deeper involvement, the Office of the Chief Counsel has

confirmed that neither OMB circular A-125 nor the FAR requires us

to monitor and enforce activities between the prime and

subcontractor as identified in subparagraphs (d), (e), (f), and

(g) of clause 52.232-27. Compliance with subparagraph (c) will

be implemented through a mechanism similar to the Statement and

Acknowledgement Form used in the labor provisions.
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7-9. Contractor Performance Evaluation.

a. The Construction Contractor Performance Evaluation system

is fully described in ER 415-7-1(FR) and is a valuable management

tool. The evaluation does influence contractor performance. The

first step in documenting performance is explaining to the

contractor, during the pre-construction conference, what is

satisfactory and unsatisfactory performance. The contractor

should clearly understand what is expected during the life of the

contract and that the Contracting Officer (CO) intends to use

interim and final performance evaluations to document contract

performance.

b. Under normal circumstances, when a contractor's

performance is unsatisfactory for a period of three months or

longer, an interim evaluation must be initiated. The Contracting

Officer Representative (COR) must be on the alert for indications

of unsatisfactory performance. When unsatisfactory performance

is noted, the contractor will be called into conference to

discuss problem areas and their resolution. A Memorandum of

Record (MFR) will be prepared on this conference. The contractor

will be advised that performance must improve within 30 days. 

During this period, the COR will closely monitor problem areas. 

If no material improvement is noted, a letter will be sent to the

contractor as notification of intent to issue an interim

unsatisfactory performance rating. The letter will address

the previous conference and identify the facts on which the

interim unsatisfactory rating is based. A copy of this

correspondence will be forwarded to the contractor's bonding

company. The COR will insure that the CO is personally aware of

the status of the contract at this time.

c. The contractor will be permitted at least 14 days to

respond, in writing. At the end of the specified time period, if

there is no response or evidence of improved performance, the

interim unsatisfactory rating will be sent to the district's

Construction Division for processing. Once again, the

contractor's bonding company will be notified of the actions

taken. If the contractor responds within the allotted time

frame, all written comments will be included in the COR's report. 

If not, a comment regarding the contractor's lack of response

will be included in the evaluation. In such cases, construction

division will normally send another letter to the contractor,

usually over the contracting officer's signature, offering an

additional opportunity for contractor comment, before final

processing. Any response will be treated as in paragraph (1)

below.
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(1) Should the contractor respond to the "letter of intent"

within the allotted time frame, any written comments made by the

contractor shall be included in the report and factural

discrepancies alleged shall be discussed, resolved if possible,

and made a part of the report.

(2) Item 14 of the SF 1420 must contain comments in

sufficient detail, based on back-up material and using specific

instances of deficiencies, as required, to back up the proposed

unsatisfactory rating. This is particularly true of Item 9a,

QUALITY OF WORK. That item reflects the contractor's management

of the quality control program, as well as the quality of the

work which is placed.

d. As stated in paragraph b above, the normal time frame for

initiating interim unsatisfactory performance evaluations is

three months. However, if there is a critical period of time

where the contractor must perform satisfactorily and does not, or

if the project is of short duration, an unsatisfactory rating may

be issued for poor performance that occurs in less than the

normal three month evaluation period. The contracting officer

must be informed and should be involved in the processing of each

unsatisfactory rating. Proper use of special interim

unsatisfactory ratings can alert the contractor to his

shortcomings and serve as a valuable tool to energize him

to better his performance and to avoid a final unsatisfactory

rating. After the issuance of an interim unsatisfactory rating,

the COR must continue to document and to evaluate the

contractor's performance. Documents can be in the form of

memoranda of meetings, "cure" letters to the contractors,

quality assurance reports, photographs, etc. The COR will reevaluate the interim unsatisfactory rating every three months

until the contract is complete.

e. Contractor Performance Appraisal Documentation. There

are several reasons why it is extremely important to document the

unsatisfactory performance of a construction contractor. The

performance documentation can be used to establish in writing

your case for possible future termination; to document possible

justification for debarment; and also as a tool to prod the

contractor to perform up to your expectations. However, the

question that continues to get asked is, what constitutes

adequate documentation for unsatisfactory performance appraisals? 

It is suggested that you ask yourself the following questions as

a starting point when you evaluate a contractor's performance

with respect to each rated element.
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(1) Quality of Work (Contractor Quality Control): Has a

quality product been provided? If not, specifically describe the

deficiency in quality and the shortcomings in the contractor's

quality control system responsible for it, for example:

- Inadequate inspection

- Failure to perform necessary testing

- Failure to implement 3-phase inspection process

- Inadequate or incomplete CQC documentation

- Failure to identify, and correct deficient work

- Inadequate reviews of materials and shop drawings

- Incorporation of unspecified materials

(2) Timely Performance:

- Is the contractor completing the construction activities

in a timely manner? This includes administrative activities, as

well as physical construction activities such as submittal

management, response to RFP's etc.

- Did the contractor adequately plan and schedule the work?

- Has the contractor met milestone dates?

- Has the contractor met physical milestone dates either

specified by contract or agreed to in the project schedule?

- If the schedule has slipped through the contractor's fault

or negligence, has he taken appropriate corrective action of his

own volition?

- Has the contractor furnished updated project schedules on

a timely basis?

(3) Effectiveness of Management:

- Are the contractor's on-site and home office management

personnel exhibiting the capacity to adequately plan, schedule,

resource, organize and otherwise manage the work? If not,

describe and relate to other rated elements.
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(4) Compliance with Safety Standards:

- Has the contractor implemented an effective safety

program; one which minimizes/mitigates potential accidents?

- Has the contractor provided appropriate personnel

protective equipment and associated necessary training?

- Has the contractor taken necessary corrective actions when

safety deficiencies are noted or are violations only corrected

after significant Government intervention?

(5) Compliance with Labor Standards:

- Has the contractor complied with all required labor

standards and provisions?

- Have necessary corrective actions been made without

significant Government intervention?

- Are payroll records being submitted in a complete and

timely manner?

(6) The above questions are not intended to be all

inclusive, but should provide a point of departure to develop

additional questions and responses which will result in the

preparation of a well-documented performance appraisal. Also,

Office of Counsel should be brought into the process as

early as possible, so that they can assist in reviewing and

developing adequate documentation.

g. Final ratings are processed in the same manner as

described above with the exception of the 30 day period for

noting improvement. There are no rigid rules governing the

number of items on a performance evaluation which must be

unsatisfactory before an overall unsatisfactory rating is issued.

Unsatisfactory performance on one or more of the five items to be

rated may be sufficient to justify an overall unsatisfactory

rating. The final evaluation report must be issued within 60

days of substantial completion of the work. The process of

documentation should involve the counsel and contracting staffs. 

Use their expertise to help with documentation. Further, the

contracting officer must be aware of and comfortable with the

justification and adequacy of documentation which supports each

unsatisfactory rating.

(1) Within 60 days of substantial completion, an SF 1420

(Performance Evaluation Construction-Contracts) must be prepared

and sent to the district and transmitted to CENPD-CT.
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(2) It is important to note that the percentage of work

accomplished by each subcontractor is required information, and

that the signature of the resident engineer or appropriate

official designated by the district commander is also required. 

The rating is forwarded by the district to higher authority and

is marked "For Official Use Only."

(3) The resident engineer is usually the evaluating official

who prepares the report. If the official concludes that a

contractor's overall performance was unsatisfactory, the

contractor is advised in writing that a report of unsatisfactory

performance is being prepared (FAR 36.2, Special Aspects of

Contracting for Construction). If there is no improvement, the

district is informed of all the facts, with recommendations. 

Interim and final unsatisfactory performance evaluation reports

prepared by the evaluating official are signed by the district

commander or his designee.

(4) Final unsatisfactory ratings will be processed in the

same manner as described above, except the thirty (30) day period

stipulated for noting improvement is not applicable for final

evaluations. Final unsatisfactory ratings can be amended, if

warranted, after claim settlement.

h. Subcontractor Performance Ratings.

(1) Where a subcontractor is known to exert significant

influence on or control progress through special agreement with

the prime contractor, a performance evaluation will be prepared

on the subcontractor, in addition to the evaluation prepared on

the prime contractor. The following interpretations, as

examples, are for information and guidance in determining if this

type of evaluation is required.

- Significant Influence. Where the major portion of a

construction contract is contained in the cost of the equipment

and installation, such as a complex materials handling system for

a munitions storage facility; the building or shell then becomes

the minor portion of the contract.

- Special Agreement. Interpreted as the subcontractor's

contract with the prime contractor for the purchase and

installation of the complex mechanical equipment.

i. Outstanding Performance Ratings. When appropriate,

contractors should be recognized for outstanding performance on

projects. When submitting an outstanding rating, area engineers

will include a draft letter of appreciation forwarding to the

contractor a copy of the evaluation.
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The construction division project manager shall review the draft

and have it typed in final form for the contracting officer's

signature.

j. The Construction Contractor Appraisal Support System

(CCASS) is a centralized and automated data base containing

performance evaluation information on DOD construction

contractors. A copy of the SF 1420 Performance Report should be

forwarded to the central database in accordance with the criteria

in DFARS 236.201. The completion of the SF 1420 construction

contractor performance evaluation report is an important

management tool for determining the contractor's past

performance.

(1) When any ratings are processed, provide a name and

telephone number on the SF 1420 of the individual most

knowledgeable of the rated contractor. This information will

enable CCASS users to contact the person having first-hand

experience with the contractor's performance.

(2) A copy of the completed SF 1420 should be formally

transmitted to the contractor. This action is especially

important for contractors who are performing in an unsatisfactory

manner. Unsatisfactory contractors should be given a copy of the

performance appraisal as soon as it has been processed and signed

by the Contracting Officer. The fact that the form is classified

"FOUO" does not preclude you from sending the contractor a copy,

since the contractor clearly qualifies as a party with a "need to

know".

(3) Contracting Officers will be using CCASS as a valuable

source of pre-award information, therefore it is imperative that

the data included in the performance appraisal package be

accurate and current. If you need any additional assistance on

the operation of the CCASS System, contact USACE, CENPD-CT, P.O.

Box 2870, Portland, Oregon 97208.

7-10. Value Engineering Incentive Clause. (FAR 52.248-3)

a. This clause is applicable to all firm fixed-price

construction contracts over $100,000 or more, and may be included

in lesser contracts when the contracting officer determines there

is potential for cost reduction. Value engineering arrangements

are also mandatory in all subcontracts of $50,000 or greater and

may be included in contracts of less value. The clause provides

for Value Engineering Change Proposals (VECP) initiated and

developed by the contractor for changing the drawings, designs,

specifications, or other requirements of the contract.
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They must result in savings to the Government, by providing less

costly items or methods than those specified, without impairing

any essential functions, and characteristics; such as service

life, reliability, economy of operation, ease of maintenance, and

necessary standardized features.

b. The incentive for the contractor to submit proposals is

that he shares in the resultant savings. His share is 55% of the

instant contract savings (ICS). Instant contract savings are the

estimated reduction in the contractor's cost of performance

resulting from acceptance of the VECP. The ultimate deductive

price is determined by subtracting Government costs from

instant contract savings and multiplying the result by 55% on

fixed-price contracts. Government costs are those which directly

result from development and implementation of the VECP, such as

test and evaluation of the VECP. The contract price is also

adjusted without regard to profit. An interesting aspect of this

clause is that the contracting officer may accept the VECP, even

though an agreement on price reduction has not been reached.

Furthermore, the decision of the contracting officer to accept a

VECP is final and not subject to the "Disputes" clause.

c. The principles of value engineering (VE) are implemented

in accordance with district and local guidelines. The resident

engineer encourages both the resident office staff and each

contractor to apply their expertise to the VE concept in

initiating alternatives to high cost construction and procurement

items, and in seeking a savings for the Government while

preserving quality. EP 11-1-4 is a handy pamphlet describing the

VE process which is available for distribution to contractors. 

On completion of a VE study and approval in principle, a

modification to the contract is pursued in accordance with

paragraph 7-6. The VE officer is kept advised of progress and

government preparation costs on VE proposals.

7-11. Closeout and Warranties.

a. Transfer of completed facilities. ER 415-345-38,

Transfer and Warranties, is the basic regulation which prescribes

USACE policy and procedures for transfer of completed

construction projects. The transfer of construction to the using

service will be simultaneous with the acceptance of that

construction from the contractor. The materials to be

transferred to the using service are accumulated, organized, and

ready to be transferred on the date of the final inspection.
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The material should consist of the following: (subparagraphs (1)

and (9) apply only to military and civil construction,

respectively; the remaining subparagraphs are common to both)

(1) DD Form 1354. A DD Form 1354, Transfer and Acceptance

of Military Real Property form, must be used to transfer any

facility to the using agency prior to either partial or complete

occupancy. All facilities (including buildings, structures,

utilities, distribution systems, and paved areas), whether new

construction, rehabilitation, or remodeling, are listed on the

DD Form 1354. This form is supplemented by DA Form 2877, Real

Property Record, on Army construction projects. The initial DD

Form 1354 is to be provided by the design A-E. The resident

engineer supplements the information provided on the initial DD

Form 1354 and accompanying forms and completes the form. This

should be a simplified process if material is gathered as the

construction progresses. The completed DD Form 1354, with

the real property records, is submitted by the resident engineer

to the using service. Regulations require the using service to

accept the transfer of construction by signing the form. The

deficiencies found during the final inspection that were not

immediately corrected are listed on the back of the form. The

deficiencies relate to contract requirements only. Design

deficiencies are not included. If there are any disputes as to

items being construction deficiencies, these should be resolved

by the resident engineer, if possible. If not, the dispute is

forwarded, in writing, to the district with an explanation of the

facts. All renovation and alteration projects require a DD Form

1354, as well as all maintenance and repair projects. Prior to

the final inspection, the resident engineer determines the

approximate cost of the contract, exclusive of possible claims.

Computation of this cost is available, if desired, at the final

inspection. On unit price contracts it may be necessary to submit

an interim DD Form 1354. A final DD Form 1354 will be submitted

once all invoices are received from the contractor and validation

of final quantities is complete.

(2) Equipment testing record. All equipment tests required

by the contract are made and recorded prior to the prefinal

inspection. All contract equipment incorporated into the project

that was temporarily used during the construction period (i.e.

elevators) must be refurbished to new condition prior to

turnover. A complete record of the tests must be available for

examination at the final inspection. It is good practice to

invite the local user to participate in the tests. In contracts

where training of user personnel is specified, such training is

satisfactorily completed prior to formal transfer.
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The using service is furnished a copy of the equipment test

report upon request.

(3) Shop drawing record. The shop drawings and other data

are compiled sothat the drawings for any desired item can be made

readily available at the final inspection. After inspection, the

material is bound for transfer to the user.

(4) Operating and maintenance instructions. When provisions

have been made for operation and maintenance (O∧M) manuals

for complete systems, they are obtained from the architectengineer (AE) or contractor, and furnished to the using service. 

These manuals are the manufacturer's published data and/or

supplemental material provided by the contractor.

(5) Spare parts and tools. Where required by the contract,

all necessary spare parts and tools, spare parts lists for the

items of equipment, and the source of suppliers and unit costs

are obtained from the contractor for transfer to the user.

(6) Keys. The contract is carefully checked to determine

the number, type, and kind of keys required. Special care is

taken in checking the requirements for such items as master keys,

key blanks, keys for valves, hydrants, registers, and windows. 

All required keys are obtained from the contractor, labeled, and

prepared for transfer to the user by letter with a complete

listing of the keys. It is imperative that the master keys are

secure and that no duplicates have been made.

(7) Warranty of construction. The contract specifications

are reviewed in order to compile a list of warranties or

guarantees. The resident engineer assures that all warranties or

guarantees are received from the contractor. This includes are

names, addresses, and contact points for all parties responsible

for implementing such warranties or guarantees. A list of

warranty or guarantee expiration dates is made and retained, and

copies are provided to the user. Further information on

implementing the warranty provisions are provided in 7-11b.

(8) Leases and contracts. All leases and contracts

pertinent to the transfer of the facilities are secured by the

resident engineer for transfer to the user. This includes leases

for land, approach rights for airplanes, and contracts for

commercial utilities.
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(9) Policy and procedures. Transferring civil works

projects (facilities) is covered in ER 1150-2-302, Annual Report

on Local Cooperation Agreements. This involves a local

cooperation agreement, the authority for which is in the act

authorizing the project. A formal notice to the responsible

authorities (sent by registered or certified mail with return

receipt requested) transfers the completed facilities, as of a

specific date, for operation and maintenance in accordance with

the requirements of the authorizing legislation. Copies of

correspondence are furnished to the division engineer and the

Commander, USACE, (CECW-O), Washington, DC 20314-1000. The

notice of transfer is accompanied by the necessary manuals,

guarantees, spare parts/tools, and testing and shop drawing

records, as discussed above.

b. Warranty Procedures.

(1) The warranty provisions on each fixed-price construction

contract are described in FAR clause 52.276.21, "Warranty of

Construction". The provisions of this clause state that the

contractor must provide a warranty that the work required by the

construction contract conforms to the contract requirements and

is free of any defect in equipment, material, and workmanship for

a period of 1 year after the date of final acceptance of the

work or 1 year from the date the Government takes possession. 

Further guidance on implementing instructions concerning the

warranty provisions are found in ER 415-345-38, "Transfer and

Warranties".

(2) The interpretation and enforcement of the Warranty of

Construction Clause (FAR 52.246-21), with respect to the

extension of the warranty period when repairs are performed

during the one year warranty period, revolve around the

interpretation of paragraph (d) of the clause which is reproduced

below.

"(d) The contractor shall restore any work damaged in fulfilling

the terms and conditions of this clause. The Contractor's

warranty with respect to work repaired or replaced will run for 1

year from the date of repair or replacement."

Interpretation of this clause by the Armed Services Board of

Contract Appeals (Humphrey Heating and Roofing. Inc., ASBCA No.

29730 (Nov. 8, 1984)) concluded that the one year extension

applies only to replacement or repairs to work of property
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which was consequentially damaged in fulfilling the terms and

conditions of the clause and not to the warranted item itself. 

An exception to this would be in the case of of a manufacturers

or suppliers warranty, since paragraph (g) of the clause requires

that these warranties be passed on to the government.

(3) There are many other scenarios which can and do occur,

however, the principles expressed will be of assistance in

resolving questions concerning warranties. Each incident of

warranty enforcement will have to be evaluated on it's own merit

and in complicated or controversial situations, legal assistance

should be obtained.

(4) Implied Warranties. Implied warranties are warranties

implied by the general law of sales. The inspection clause,

which provides that acceptance is conclusive except for latent

defects, fraud, or gross mistake amounting to fraud, or as

otherwise contractually provided. If after acceptance, the

Government discovers latent defects, fraud, or gross mistake

amounting to fraud, it may revoke its acceptance and exercise its

right to apply the pre-acceptance remedies provided in the

Inspection clause.

(5) Latent Defects. Latent defects are defects hidden from

sight and knowledge, existing at the time of acceptance, which

are not discoverable by a reasonable inspection and require that:

(a) The defect existed at the time of acceptance. Any

defect must not have been caused by events after acceptance.

(b) The defect caused any failure of the item. Where a

malfunction could have resulted from two causes, one patent and

one latent, the Government must prove that the malfunction is

attributable to the latent cause.

(c) A reasonable inspection would not have uncovered the

defect. The Government must establish what a reasonable

inspection is and why it would not have disclosed the defect. 

The failure to make a reasonable inspection that would have

disclosed the defect is fatal to a latent defect allegation.

 If a defect is detectable by a visual inspection, a reasonable

inspection should discover it and, generally, the defect will not

be latent. If the contract specifies a test that would have

uncovered the defect and the Government failed to perform the

test, the defect is not latent.
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(d) The effect of a latent defect is to remove the conclusiveness

of final acceptance, thereby entitling the Government to the same

remedies it would have if acceptance had not yet occurred; the

Government is entitled to the remedies prescribed in the

contract. This includes costs of correcting defects, costs of

correcting damage done by the defects, and extra costs of

inspection that were the natural and probable consequences of the

contractor's failure to follow specifications. Generally, the

contractor is liable for latent defects discovered at any time

after acceptance, to include periods after the expiration of a

warranty clause. A warranty is an additional remedy to the preacceptance remedies provided by contract.

(4) In accordance with AR 420-10, Chapter 6, support to the

Director of Engineering and Housing (DEH) is provided under the

"Installation Support" program. Initial contact with the

contractor, vendor, or manufacturer to obtain correction of

warranty defects should be made by the using service.

(See ER 415-345-38.) Upon notification by the DEH that warranty

assistance is required, the district assumes primary

responsibility for warranty enforcement with the correction of

all design or construction defects on all projects/facilities for

one year after the date of transfer (execution of DD Form 1354)

of the construction to the using service. The warranty

enforcement service covers the full warranty period on items

having manufacturer's or contractor's warranties longer than one

year. The resident engineer provides field implementation of

this responsibility.

(5) The DEH should be advised in writing of the provisions

of ER 415-345-38 with regard to warranty enforcement. The

contractor should be advised, in writing, that requests for

warranty correction may be forthcoming from the DEH or the

resident engineer.

(6) If the initial efforts by the DEH to resolve warranty

issues are unsuccessful, the problem will be referred to the

resident engineer. The matter is forwarded to the district for

action when compliance with warranty or guarantee provisions

cannot be obtained by the resident engineer.

(7) Design or construction defects not covered by warranty

or guarantee are corrected after determining the most expedient

method of correction and assuring that funds are available.
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c. Completion report.

(1) As soon as a contract is complete, the resident engineer

prepares and submits a certificate of completion to the district

stating that the final inspection has been accomplished, that all

contracted work has been performed in accordance with contract

plans and specifications, and that the construction has been

accepted by the contracting officer. It is then transferred to

the using service. A list of data such as the date the contract

was completed, the date accepted by the contracting officer, and

the date transferred to the using service, is included for the

record. If there were deficiencies noted in the transfer

document, the date these deficiencies were corrected is included

in the report. When required, a structure foundation and/or

embankment report is prepared.

(2) The resident engineer also certifies that:

(a) All contractor and subcontractor payrolls have been

received from the contractor.

(b) All GFP accounts and documents have been cleared by the

appropriate action officer and forwarded to the district (stating

transmittal document).

(c) Transfer of the facilities to the using service has been

completed and the using service has been furnished all material

noted in paragraph 7-11a, Transfer of completed facilities.

d. Acceptance of work. The contracting officer accepts the

entire contract work or any specified divisible part as promptly

as practicable after completing the work. The resident engineer

assumes the responsibility of furnishing the district the

necessary data to assist in the prompt financial closeout of all

contracts in accordance with ER 415-345-13.

e. Financial closeout policy. It is USACE policy to

financially closeout projects as expeditiously as possible after

acceptance of construction and ER 415-345-13 describes the

regulations in detail. Unobligated funds which are in excess of

funds necessary to liquidate current or anticipated obligations

are returned by a revoking directive as soon as surplus funds

are identified. Data entered into AMPRS is used to evaluate the

effectiveness of all FOA's financial closeout performance.
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(1) When more than one project provides funds for a

construction contract, financial closeout of the projects shall

be accomplished only after final payment has been made on the

contract.

(2) When a project provides funds for more than one

contract, financial completion of the project shall be

accomplished only after final payment has been made on all

contracts.

(3) Projects with any of the following outstanding issues

shall not be financially closed until these issues are resolved:

(a) Claims pending before the Corps of Engineers Board of

Contract Appeals (ENGBCA), Armed Services Board of Contract

Appeals (ASBCA), or a Federal court.

(b) Unresolved A-E liability issues.

(c) Labor violations.

(4) Closeout requirements. The USACE goal is to financially

closeout all CONUS projects within six (6) months of contract

acceptance and all OCONUS projects within twelve (12) months. 

Acceptance occurs on the date the Contracting Officer accepts the

constructed facility(s) required under the contract from the

contractor with or without deficiencies (AMPRS data item

0435). Financial completion of a project occurs when all

obligations have been liquidated, all accounts receivable have

been collected, and excess funds have been returned-i.e. cost and

current working estimate (CWE) are equal. Projects with the

following types of funding are excluded from the financial

closeout performance ratings: Modernization of US Facilities

(MOUSF), Foreign Military Sales (FMS), Government of Japan (GOJ),

and Government of Korea (GOK).

7-12. Post Completion A-E Evaluation.

a. Architect-engineer completion of construction performance

evaluation.

(1) In addition to evaluating the construction contractor,

the resident engineer completes ENG Form 1421-R (Test), Sep 89

Performance Evaluation (Architect-Engineer), and forwards it to

the district after physical completion of the contract.
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(2) Completing the form requires that the number and cost of

all construction change orders be listed with a break-out showing

those resulting from deficiencies in A/E performance and a

further break-out showing those deficiences which the A/E is

liable for and those absorbed by the Government. The resident

engineer gives a rating to the design of excellent, above

average, average, below average, or poor. Additionally, a

recommendation to award future contracts to the A/E is made. If

the recommendation is negative or conditional, an explanation is

required in the remarks section.

7-13. Management of LCPM Civil Works Projects.

a. General. The project manager (PM) is authorized within

the limits defined in ER 5-2-1 to modify the project schedule and

adjust project costs to accommodate changing conditions in a

timely and responsive manner. Responsibility for initiating,

evaluating, recommending and approving changes is also

established in the ER, as is accountability for the impacts

of each change.

b. Schedule Change Authority. The PM is authorized to

revise project schedules that do not impact major milestones. 

Changes which extend major milestones require approval of the

Division Project Review Board (PRB). Also, changes which extend

the completion dates of preconstruction engineering, design, or

construction for budgeted projects beyond the completion dates

presented to Congress must be approved by the Director of

Civil Works (DCW).

c. Cost Change Authority. The PM is authorized to adjust

the project cost estimate within limits based on the size of the

project, and the cumulative percentage of contingency used. ER

5-2-1 shows the limits of authority for project cost changes. No

authority is granted to increase the total project cost beyond

the Division Approval Level (DAL) without DCW approval.

d. Contract Modifications. When a design or construction

contract must be modified, the party initiating the modification

must prepare a project schedule and cost change request. When a

modification is initiated, the PM will reserve funds, coordinate

and assess the evaluation of impacts on cost and schedule and

obtain the required approvals before the modification is issued. 

Nothing in ER 5-2-1 is intended to supersede or interfere with

the Administrative Contracting Officer (ACO) or Contracting

Officer's authorities and responsibilities established in the
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Federal Acquisition Regulations (FAR) and supplements, to manage

the contract, decide disputes and issue changes (subject to the

availability of funds) which are within delegated authorities.

e. Responsibility and Accountability. The PM is responsible

for the proper evaluation, approval, management of the project

schedule and cost change requests and is accountable for

documenting impacts resulting from the change. The District

element chiefs are responsible for identifying and justifying the

need for changes that revise the project cost and schedule

established in the Project Management Plan (PMP) and for

initiating requests for approval of such changes. The chiefs are

also accountable for the project impacts of changes resulting

from activities within their elements. The PM is responsible for

identification of inflation changes and changes in adjusted

baseline estimates including inflation during construction

resulting from schedule delays or from extended construction

time.

f. Maximum Project Cost Limit. The procedure and format for

determining the maximum project cost limit for projects subject

to Section 902 of the Water Resources Development Act of 1986 (PL

99-662), as amended, is contained in EC 1105-2-176. Furthermore,

the management philosophy of the Section 902 limit is applicable

to all projects within the LCPM system.

(1) For projects subject to the provisions of Section 902,

the objective will be to complete the project within the

authorized cost, plus allowable increases for inflation and

modifications required by law, referred to as the Division

Approval Limit (DAL). Adjustments of the project costs may be

made within the change authorities defined in ER 5-2-1.

(2) Those projects in the LCPM system not subject to the

legislative limitations of Section 902 will be managed at the

District level within the established baseline estimate with

allowable adjustments for inflation and changes required by law. 

Adjustments to the project cost may be made within the change

authorities described in ER 5-2-1.

g. All projects in the LCPM system will be managed to

comply, insofar as possible, with the schedule developed for the

project network and the project management plan (PMP) in

coordination with the cost-sharing partner. Adjustments to the

project schedule may be made within the change authorities

described in ER 5-2-1.
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7-14. Small Business and Small Disadvantaged Business

Utilization.

a. General.

(1) It is the policy of the Federal Government that small

business concerns, small business concerns owned and controlled

by socially and economically disadvantaged individuals, and women

owned business concerns shall have the maximum practicable

opportunity to participate in contracts let by any Federal

agency.

(2) The contractor has agreed, by executing the contract, to

award subcontracts in keeping with the above policy to the

fullest extent consistent with the efficient performance of the

contract. (FAR 52.219-8 and FAR 52.219-13). The contractor

usually carries out this responsibility in good faith, generally

without oversight on the part of the Federal agency.

b. Subcontract Plan. When a construction contract exceeds

$1 million, the successful offeror is required to submit a

subcontract plan prior to award, for review by the Small and

Disadvantaged Business Utilization (SADBU) specialist, and

approval by the Contracting Officer (FAR 52-219-9). This

provision does not apply to small and small disadvantaged

business concerns. The elements of the subcontracting plan

include goals for subcontract awards to small and small disadvantaged business concerns, certain reporting requirements,

flow down provisions for subcontracting, and other responsibilities which the contractor agrees to carry out. The approved

subcontract plan is incorporated into and made a part of the

contract. The monitoring and documentation of the subcontract

plan compliance is the responsibility of the SADBU specialist at

the district, with assistance from the Area or Resident Engineer

and other members of the district staff.

c. Liquidated Damages. Liquidated damages are assessed, at

completion of the contract, when a contractor fails to make a

good faith effort to comply with the subcontract plan requirements (FAR 52-219.16). Liquidated damages are assessed at the

actual dollar amount by which the prime contractor failed to meet

each subcontract goal and are in addition to any other remedies

the Government may have under the contract. The most frequent

and easily identified issues of noncompliance are failure to

submit quarterly and semiannual reports (SF 294 and SF 295) as

required by the subcontracting plan and failure to identify,

contact, solicit, or consider small business or small
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disadvantaged business concerns for contract award. The ACO must

insure, in coordination with the SADBU specialist, that liquidated damages are assessed, when applicable, before approving

final payment under the contract. The liquidated damages provision applies to contracts for construction which exceed $1

million, which require a subcontract plan, and which were awarded

after August 15, 1989. This provision does not apply to contracts awarded to small or small disadvantaged business concerns.

d. Incentives. Fixed price negotiated contracts (over $1

million for construction) include a provision for incentives to

be paid to the prime contractor when subcontract plan goals for

awards to small disadvantaged business concerns are exceeded

(DFARS 252.219-7009). The ACO must be cognizant of subcontractors at the job site and the records which the contractor is

maintaining concerning subcontracting.

e. Preconstruction Conference. Subcontracting requirements,

including the plan incorporated into the contract, reporting

requirements, incentives, and liquidated damages contract

provisions, must be included in the agenda for preconstruction

conferences and noted in the preconstruction minutes, when

the contract amount exceeds $1 million and award is made to a

large business concern. Disputes can be avoided when these

issues are discussed in the early stages of contract performance,

so that contractors know what is expected and will have maximum

opportunity to comply. The SADBU specialist may be invited to

the preconstruction conference to advise on subcontracting

requirements.

f. Performance Ratings. Contractor's performance ratings

must reflect compliance or noncompliance with subcontracting

plans in the contract. Subcontracting is a management function

under the contract. Interim or final unsatisfactory appraisals

will be used to identify noncompliance with subcontract plans, to

inform the contractor's upper management officials, and to serve

as a record of compliance which may have a bearing on the firm's

future contract awards. The SADBU specialist will provide

comments to the contracting officer on all satisfactory or

outstanding performance appraisals assigned to large business

concerns, and will insure that the degree of compliance with the

subcontracting plans is considered in the final performance

evaluation.
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SECTION 8

QUALITY ASSURANCE

8-1. Quality, A Joint Venture.

a. General. Quality construction is one of the primary

goals of USACE. Managing quality construction is vital to the

Corps' reputation and future; it is the ability to construct

projects according to professional-quality plans and

specifications, on time and within budget. The plans and

specifications establish the level of quality in construction

projects; therefore, it is the designer that sets quality

standards. Quality is defined as "conformance to properly

developed requirements". The contractor controls the quality of

the work and the Government, in separate but coordinated efforts,

assures that the level of quality set by the plans and

specifications is achieved.

b. Government quality assurance.

(1) General. The resident engineer should provide efficient

QA inspections, in accordance with ER 1180-1-6, Construction

Quality Management. The process starts well before construction. 

Examples of activities performed prior to the start of

construction are: QA planning, establishing CQC requirements,

participating in design review conferences, performing BCO

reviews and plan-in-hand reviews.

(2) Quality assurance plan. ER 1180-1-6 requires that the

area/resident engineer develop a written QA organizational plan

that addresses the overall QA operations of the field office. 

After initial development, the plan will be reviewed and updated

as often as necessary, but not less than annually. Supplements

incorporating project specific requirements should be developed

for those contracts with unique requirements not covered in the

basic plan.

The QA plan includes:

(a) The resident engineer's QA organization.

(b) Procedures for reviewing contractor submittals, quality

control reports, and test results.

(c) Procedures for surveillance of CQC activities.
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(d) Procedures for reviewing CQC reports.

(e) Procedures for reporting construction deficiencies and

following up to assure correction.

(f) Procedures to assure that the contractor submits all

items required by the contract, particularly repetitive items.

(g) Procedures for sampling, testing, and QA inspection by

Government personnel.

A suggested outline for the QA plan is found in ER 1180-1-6.

(3) In accordance with ER 1180-1-6, the resident engineer

conducts a CQC/QA coordination meeting for detailed planning of

activities of Government and contractor quality construction

elements. Minutes of this meeting are prepared. On small

contracts this meeting may be a part of the preconstruction

conference (see paragraph 6-5). Careless inspection brings

about unsettled conditions and disputes; arbitrary and

dictatorial inspection creates friction. QA efforts at the

inception of each phase of work are particularly effective, since

corrective action are easier to implement at this stage.

(4) Quality assurance preparation. The main duty of QAP,

through monitoring of CQC operations, is to assure that the work

is being performed in accordance with the plans and

specifications and that the CQC system is functioning

effectively. To accomplish this, QAP perform the following:

(a) Study the plans and specifications in advance.

(b) Anticipate problems and requirements.

(c) Perform necessary investigations on a phase of work well

in advance of work commencement.

(d) Obtain the COR's approval of shop drawings before

materials are brought on the job.

QAP should be informed that assistance and advice will be

provided to them, whenever it is needed. Immediately available

to them is a copy of the plans and specifications, including all

necessary reference material, amendments, revisions, and

modifications; approved shop drawings for material on the

job; applicable volumes of the Construction Inspector's Guide; a

copy of EM 385-1-1, Safety and Health Requirements Manual; a copy

of the contractor's accident prevention plan; a copy of
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the CQC plan; the Activity Hazard Analysis Program; daily log

reports or books; and camera, rules, tapes, and other measuring

devices of testing equipment as required to check the various

items of work for which the QAP are responsible. The resident

engineer prepares a QA plan for the office. After initial

development, the plan will be reviewed and updated as often as

necessary, but not less than annually. Supplements incorporating

project-specific requirements will be developed for those

contracts with unique requirements not covered in the basic plan. 

The plan states, in detail, how the CQC activities will be

monitored, responsibilities and authority to QAP, types of

inspections to be performed by QAP, methods to be used for

inspections performed by the Government, and specific steps to

assure compliance of the work with the plans and specifications.

(5) Three-phase control concept. The resident engineer

ensures that CQC inspections are performed at the outset of each

new phase on segment of construction. Preparatory inspections

prior to physical work placement ascertain that materials comply

with specification and/or approved submittal documents. Initial

inspections occurring at the outset of work placement establish

and achieve workmanship standards at the beginning of each

construction phase. Government participation in preparatory and

initial inspections is highly desirable. Follow-up inspections

on a daily or routine basis are more productive when preceded by

joint contractor/USACE preparatory and initial inspections. 

Preparatory and initial inspections are performed with checklist

to ensure thoroughness. All phases of inspections are

documented. It should be kept in mind that the contractor

is responsible for conducting these inspections, while the

Government is responsible only for assuring they are conducted,

are adequate for the purpose, and are properly documented.

(6) Deficiencies in contract performance. The resident

engineer is on the alert for deficiencies and their prompt

correction. Upon detection of a deficiency, the contractor is

first informed verbally and, where necessary, the verbal

notification is immediately confirmed in writing. Additionally,

the USACE representative makes a descriptive entry on the daily

QA report and the resident engineer insists that a like entry be

made by the contractor on the daily CQC report. The district is

promptly informed of any refusals by the contractor to correct a

deficiency. A complete record is kept of facts relating to the

deficiencies in contract performance and efforts to correct them.
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(a) Potential problems in quality control. The CQC/QA

system works by making the contractor responsible for

construction mistakes. This requires the Government to take a

firm approach to enforcement and to notify the contractor

immediately upon detecting any unacceptable materials, equipment,

or workmanship. The resident engineer may require the contractor

to make changes to the CQC plan at any time during construction

or have unqualified or ineffective personnel remove when

necessary to obtain the quality construction required by the

contract. Problems encountered during construction vary

according to the specific project; most, however, fit into

one or more of the following categories:

- Delays. There may be delays in submittals, in the

correction of deficiencies, or because or lack of acceptance of

the CQC plan.

- Planning and control. Many problems can be caused by a

lack of planning and control and a failure to take corrective

action in the planning and control process. The resident

engineer provides sufficient and timely QA as part of planning

and control.

- Testing. Improper, inadequate, or untimely testing causes

problems.

- Documentation. Problems occur because of late,

incomplete, or incorrect documentation. Maintaining written

records of QA actions and test results is as important as taking

the actions. The CQC reporting system may cause appropriate

action to be taken, or it may be the basis of settling expensive

claims when those who were directly involved are no longer

available. If documentation is inadequate, communications break

down and the legal position of the Government may be jeopardized.

(b) Contract enforcement measures. The following measures

are available to the resident engineer through the contracting

officer for enforcing the contract. Further explanation of these

actions can be found in Section 7.

- Require removal and replacement of deficient material

and/or workmanship. The "inspection of construction" clause of the

contract gives the contracting officer the right to require the

conctractor to remove or tear out any completed construction amd

to examine it for compliance with contract requirements. The

clause further provides for the contractor to pay all costs for

removing and replacing work found to be defective or nonconforming
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with contract requirements. If however, the work is found to

conform to contract requirements, the Government will pay all

removing and replacing expenses. These expenses are covered by a

modification issued pursuant to this contract clause.

- Withhold payment for unsatisfactory work in place.

- Require removal of unqualified or ineffective personnel

(See paragraph (a) above, Potential Problems in Quality Control).

- Require the contractor to assume personal supervision (See

contract clause entitled Superintendence by the Contractor).

- Stop work. A work stoppage differs from a suspension of

work in that it is an extreme action that is necessitated by acts

of the contractor involving major safety violations (potential

loss of life or damage to property is imminent) or non-conforming

construction which if allowed to continue would result in

extensive tearout and delay. It is important that the resident

engineer stop only that portion of the work that is affected by

the actions or lack of actions by the contractor and that all of

the facts of the stop-work action be documented in writing. In

addition, the contractor is informed in writing of the extent of

the work stoppage, the date and hour work was stopped, the reason

for the action, and the conditions under which the contractor may

proceed again. Accurate records must be maintained on workers,

material, and during the stoppage as well as time worked. The

records must specifically reflect the effect the stop order has on

contract costs or time, which might reasonably be used as a

basis for a claim for extra compensation by the contractor. Do

not lead the contractor to believe that any adjustment is

established. When the stoppage is lifted, the contractor is

informed in writing.

- Issue an unsatisfactory appraisal (See paragraph 7-9, under

Construction Contractor Performance Evaluation).

-Terminate the contract (See contract clause entitled Default

(Fixed-Price Construction).

(7) Shop inspection.
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(a) The resident engineer determines the necessity for shop

inspection of equipment and materials being furnished and

installed by the contractor and for initiating requests to the

district for shop inspection when it is beyond the capability of

the resident engineer staff. This determination should be made

during the early stages of the contract. Before requesting

shop inspection, the resident engineer determines the date the

material or equipment is to be manufactured, the date it is needed

on the job, and the manufacturer's or supplier's address. A copy

of the contractor's purchase order is included with the request

for shop inspection.

(b) The following items are considered in determining the

necessity for shop inspection: Type of materials or equipment

involved, cost of inspection, importance of checking the

materials, and particular requirements in the specifications,

among others.

(c) A majority of the shop inspections for military contracts

is performed by Defense Contract Acquisition Services (DCAS)

through the use of interagency agreements. Shop inspections on

civil works contracts are normally accomplished by other USACE

district personnel. The resident engineer makes sure that the

material is being properly inspected and tested, that it meets the

contract requirements upon delivery to the job,

and that the delivery time will not delay the construction.

(d) Copies of the inspector's acceptance reports should be

furnished to the resident office, together with shipping lists, as

they are received from the inspecting office. Mill test reports

and certificates of compliance provided by the contractor to the

resident engineer are checked against the applicable contract

specification requirements to ascertain that the

materials meet the requirements of the specifications.

(8) Inspection for occupancy, prior to completion.

(a) Beneficial occupancy inspection. A beneficial occupancy

inspection is performed when the contract specifically provides

for joint occupancy of the facility by the contractor and the

user, and the areas to be occupied are complete to the extent

needed for beneficial use. This provision is typically included

in the Special Provisions paragraphs, Completion of Work. CQC

confirms completion by performing the inspection to demonstrate

the building is reasonably functional for occupancy. Until the

resident engineer concurs with the contractor's progress, the

beneficial occupancy inspection should not be arranged.
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Upon concurrence, the resident engineer notifies the district and

then coordinates the attendees. This inspection is made jointly

by the resident engineer, a representative of the using service,

and the contractor. It is important that all the deficiencies in

the inspection be carefully recorded and that the using service

agrees to accept the item being inspected with the construction

deficiencies noted. The contractor is required to correct the

noted deficiencies as soon as possible.

(b) Use and possession prior to completion. FAR 52.236-11

(Use and Possession Prior to Completion) provides the Government

with the right to take possession of completed or partially

completed contract work where no phased beneficial occupancy is

contractually provided. This possession is implemented when the

Government needs an interim access to utilize permanent

portions of buildings and/or equipment, especially when

Government-furnished equipment (GFE) is involved in a contract. 

In this situation, the Government may need access to certain areas

of work in order that their GFE vendors can perform acceptance

tests or maintenance on their items. Prior

to such possession, the contractor should be notified in writing

of the Government's intentions to take interim possession of that

portion of the work. Documentation on the status of the work

prior to and subsequent to the Government's possession is provided

to the using service and the contractor. If loss or damage is

apparent, the "Use and Possession Prior to Completion" clause

provides for an equitable adjustment in contract price

and/or time. Additionally, if possession by the Government causes

a delay to the overall contract, the contract is modified at the

earliest practicable date. The initial letter to the contractor

requests a proposal for this contract change and advises of

apparent delays that will cause an impact on completion.

(9) Prefinal and final inspections.

(a) A prefinal inspection is appropriate after the CQC

representative has performed an overall preliminary inspection and

demonstrates correction of all deficiencies noted at the

preliminary inspection. Based on the contractor's past

performance, the resident engineer projects the approximate

completion date of construction work. When this date is

determined, the district is provided a schedule for the prefinal

inspection so that interested agencies may be invited to attend. 

Most Using agencies require at least 10 days advance notice before

the prefinal inspection.
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Prefinal inspections are not made until the work is substantially

complete. Should the contractor's progress fall behind schedule,

the district is informed and furnished details of the work that

will not be completed before the inspection date. This

information may allow the district to delay the

inspection. If care is exercised in scheduling the prefinal

inspection, delays of this nature should rarely occur.

(b) If CQC has functioned in accordance with the contract,

no deficiencies or only a few minor ones would be expected at the

prefinal inspection. In this case, the prefinal inspection may

be considered the final inspection. If another inspection is

necessary, the final inspection date is established at the

conclusion of the prefinal inspection. This date is determined

by the resident engineer based on the quantity of work remaining. 

The deficiencies noted during the inspection are precisely stated

and furnished to the contractor promptly. The date of the final

inspection is provided to the interested agencies for the benefit

of their planning and final acceptance of the project. The

resident engineer determines final acceptable following a final

inspection which yields no further deficiencies. If the using

services does not normally attend the prefinal inspection, the

resident engineer should evaluate the construction prior to the

inspection and assure that the using service is present if it is

likely to become a final inspection.

(10) Warranty inspections. Warranty inspections are held at

4 and 9-month intervals after transfer. Joint USACE/ using

service inspections are held wherein defects are identified and

corrective action taken on warranty items in accordance with ER

415-345-38, Transfer and Warranties.

c. Contractor quality control.

(1) CQC is the system by which the contractor bears

responsibility for all activities necessary to manage, control,

and document work to comply with contract plans and

specifications. Prior to the start of work, the contractor

prepares a CQC plan indicating staff organization, control of

materials, installation techniques, and conformance testing. The

original submission of this plan applies to all contract work and

is effective for the life of the project. Further information on

the interrelationship between the QCC and quality management is

contained in the EFARS.
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(2) On receipt of the CQC plan, the resident engineer

reviews the plan to verify conformance with the CQC contract

provision. All increments of the CQC function must be addressed

with the intention of presenting a complete plan, and the

resident engineer's review compares and evaluates each of its

features against the specified requirements. The following are

key points typically checked as part of this review:

(a) The name, qualifications, and delegated authority of an

officer of the corporation.

(b) Procedures for managing material submittals, including

those of subcontractors.

(c) Control testing procedures for each specific test

required in the contract, including laboratory facilities.

(d) Reporting procedures centering on the three-phase

inspection of construction, including proposed reporting formats.

(3) The COR provides a prompt written response to the

contractor accepting the CQC plan as submitted or with specified

changes subject to satisfactory performance. A contractor's

concurrence with exceptions may be required before start of work. 

After acceptance of the CQC plan, the contractor notifies the COR

in writing of any proposed change. Proposed changes are subject

to acceptance by the COR.

8-2. HTW & Chemical Quality Management.

a. The nature and uniqueness of handling toxic and hazardous

wastes, and other chemicals calls for special procedures to be

utilized when dealing with these substances. ER 1110-1-263,

Chemical Quality Management -- Toxic and Hazardous Wastes,

describes the quality management responsibilities and

procedures assuring the validity of thoroughly documented and

legally defensible chemical data gathered during construction and

related activities involving HTW. This guide is applicable to

remedial action projects involving toxic or hazardous wastes

under either the EPA Superfund Program or the Defense

Environmental Restoration Account projects and describes

preventative or corrective measures mitigating potentially

hazardous situations affecting human or environmental receptors

and associated data collection activities. Additional

information can be obtained from EP 1110-2-6, Superfund

Management Guide regarding management responsibilities

under this program.
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8-3. DCAF Bulletins.

a. The Design Construction Analysis Feedback Bulletin (DCAF)

is a publication which informs the FOA's about current design and

construction problems and their possible solutions. This

publication has been initiated as an outgrowth of the

Design/Construction Evaluations which are required by

ER 415-1-13. These evaluations have been conducted for many

years and a large body of knowledge has been gathered. In the

past the feedback from these evaluations has not proven to be

entirely satisfactory. Repetitive observations, lessons learned,

good ideas, changes in guide specifications and/or code

publications, etc. which are gathered during design/construction

evaluations and from other outside sources are subjects covered

by this publication on an as needed basis.

b. FOA's are encouraged to submit observations, lessons

learned, good ideas, et., for consideration for publication in a

future DCAF Bulletin. Submitalls should be sent to CEMP-CE at

HQUSACE.

8-4. Code Forums.

Code Forums are published by the Construction Evaluation Branch

(CEMP-CE) at HQUSACE to communicate information to the FOA's

concerning various codes. They provide and highlight revisions,

interpretations, and clarifications of various construction

industry code requirements. They are published in response to

either situations observed during design/construction evaluations

of from recent guidance, revisions, and/or additions regarding

code requirements. Code Forums are published on an as needed

basis and are considered to be informational in nature.

8-5. A/E Responsibility Management Program. (AERMP)

a. The primary goal of the Architect-Engineer Responsibility

Management Program (AERMP) is to improve the quality of services

furnished to the U.S. Army Corps of Engineers by its contracts AE's. An additional objective of the AERMP is to recover damages

to the Government that result from an A-E's negligence or breach

of contractual duty. ER 715-1-10, (AERMP) is the regulation

which defines the responsibilities and establishes general

procedures for investigating and taking action on performance

deficiencies of A-E firms/individuals having contracts with

USACE.
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b. A-E firms under contract with the USACE are responsible

for providing professional quality work, i.e., work that meets

the standard of care, skill, and diligence that one in the

profession would ordinarily exercise under similar circumstances. 

If an A-E fails to meet such a standard, or any other contractual

duty, the contracting officer shall review the circumstances

involved, including the resulting damages to the Government

and take appropriate action in accordance with FAR 36.608.

c. It is important that the resident engineer is completely

familiar with ER 715-1-10, since in most cases the requirement

for a change originates from the field and any future action for

recover damages will most likely be based on the reasons for the

changespresented by the resident engineer. The ER describes the

activities and actions to be taken from the point of discovery of

a performance deficiency to the point of issuance of a claim by

the Government against the A-E. An ancillary benefit of the

routine evaluation of design deficiencies through the AERMP

program is the valuable feedback data and lessons learned that

can be used to improve future designs.
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SECTION 9

SAFETY

9-1. General.

a. An acceptable safety standard is guided by a well planned

and conscientiously applied program for policing hazardous

conditions and controlling personal acts which might result in

accidents. The resident engineer takes an aggressive, sincere

interest in the safety program, making it clear to resident

office personnel and representatives of contractor that

the accident prevention clause of the specifications carries the

same weight and is given the same strict attention as all of the

other provisions of the contract. Safety is a "critical" job

requirement for both merit pay and GPAS personnel having safety

responsibilities.

b. Construction Safety Requirements. Contractors are

obligated by the terms of their contract to protect the lives and

health of persons exposed to their operations and to safeguard

property and equipment from accidental loss or destruction. All

work will be performed in accordance with the safety and health

provisions of the contract, EM 385-1-1 (US Army Corps of

Engineers Safety and Health Requirements Manual), and federal,

state, and local codes and standards.

c. Accident Prevention and Construction Projects. In

addition to being a contract requirement, a well planned and

conscientiously applied accident prevention program is essential

to the efficiency, quality, and scheduling of work and the

minimization of costs. To ensure that the accident prevention

program meets these intents, the resident engineer and his staff

must take a sincere, aggressive interest in obtaining the maximum

effectiveness and benefit from the contractor and the

contractor's accident prevention plan. Paramount to achieving

this is the resident engineer's involvement and confidence in,

visible support for, and enforcement of the contractor's accident

prevention plan. The methods a contractor uses in satisfying

safety requirements are immaterial as long as the requirements

are met. The contractor shall have the option of selecting any

technique or method as long as the RE is assured that it will

produce the desired results. Effective application of the Corps'

construction safety and health program requires follow-up by

Corps supervisors and inspectors to ensure that the contractor is

fulfilling the contractual obligations in accordance with the

contractor's accident prevention plan and any agreements reached

at the preconstruction safety conference.
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9-2. Responsibilities.

a. Contracting Officer. The contracting officer, the ACO

and/or the COR are responsible for ensuring contractor compliance

with contractual safety and health requirements. This, in turn,

entails a responsibility for familiarization with applicable

safety requirements, standards, and codes; the ability to assist

the contractor in analysis and resolution of safety and health

problems; and the ability to conduct any necessary inspections of

the work conditions and procedures. Resident engineers are also

responsible for providing a safe and healthful work environment

for their employees. This responsibility includes, among others,

providing appropriate job safety and health training, conducting

safety and health surveys of work facilities and operations,

providing personnel with protective equipment and ensuring

its use, and ensuring personnel are provided the medical

surveillance appropriate for their work exposure.

b. Contractor. The contractor is obligated by the terms of

the contract to protect the lives and health of persons exposed

to contractor operations and to safeguard property and equipment

from loss or destruction. Contractor operating methods must

include applicable provisions of the contract and EM

385-1-1. Contractors are responsible for informing their

subcontractors of the safety provisions under the terms of the

contract and the penalties for noncompliance, coordinating the

work to prevent one craft from interfering with or creating

hazardous working conditions for other crafts, and inspecting

subcontractor operations to ensure that accident prevention

responsibilities are being carried out.

c. Safety and Occupational Health Office. The safety and

occupational health office shall evaluate the resident engineer's

implementation of both their, and their contractor's, safety and

health responsibilities. This may include, but is not limited

to, reviewing accident prevention plans for quality and

conpleteness; attending preconstruction safety conferences, as

requested and as scheduling will permit; reviewing minutes of

preconstruction safety conferences; and conducting periodic

safety surveys of field offices and their activities. The safety

and occupational health office shall provide technical and

managerial guidance and expertise concerning safety and

occupational health issues. This guidance includes training and

motivation techniques, interpretation of programmatic and

technical requirements, analysis of accident trends, and

reviewing accident prevention plans and activity hazard analyses

for projects involving unusual hazards.
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9-3. Accident Prevention Plans.

a. Contractor notification. Upon award of contract, a

letter is written to the contractor calling attention to the

contract clause entitled "Accident Prevention," which requires

the contractor to develop an accident prevention

plan. This letter shall also be used to inform the contractor of

their obligation to meet with representatives of the contracting

officer, prior to the commencement of work, and discuss and

develop mutual understandings concerning the contractor's

accident prevention plan and to provide guidance on the

preparation of the contract accident prevention plan, activity

hazard analyses, and accident investigation and reporting.

b. Accident prevention plans. Contractors are required to

submit, to the ACO prior to the preconstruction safety

conference, their written plan for effectuating the provisions of

the contract clause entitled "Accident Prevention." Accident

prevention plans will be enforced as part of the contract. 

Accident prevention plans are administrative documents and, as

such, should address general safety and health requirements. EM

385-1-1 outlines the minimum requirements for an acceptable

accident prevention plan. Figure 9-1 on the following page

provides further guidance in developing the accident prevention

plan.
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c. The resident engineer shall review the contractor's plan

to determine whether it meets the intent of the accident

prevention clause of the contract and EM 385-1-1. (The accident

prevention plan also enables the ACO/COR to evaluate the

contractor's concept of safety.) Deficiencies in the plan will

be brought to the attention of the contractor at the

preconstruction conference, and the contractor shall revise the

plan to correct the deficiencies and re-submit it to the Re for

acceptance. If the RE again finds deficiencies in the plan,

these deficiencies will be discussed and resolved at the

preconstruction safety conference. It is important to note that

the Corps does not approve the contractor's accident

prevention plan. The Corps reviews and comments on a

contractor's accident prevention plan and accepts the plan when

it meets the requirements of the contract provisions.

d. Copies of the accepted plan will be maintained at the

Re's office and at the job site. The original copy of the

accepted plan, along with the letter of acceptance, will be

forwarded to the FOA safety and occupational health office for

review and then to the official contract file. The safety and

occupational health office will monitor the quality of the

resident engineer's processing and acceptance of accident

prevention plans for purposes of evaluating the implementation of

this requirement and provide assistance as necessary.

e. The contractor's accident prevention plan shall be

reviewed and amended, as necessary, throughout the life of the

contract. Unusual or high-hazard activities not identified in

the original accident prevention plan shall be incorporated in

the plan as they are discovered.

9-4. Preconstruction Safety Conferences.

Preconstruction safety conferences provide a forum for government

and contractor personnel to become acquainted and explain the

functions and operating procedures of their respective

organizations and to reach mutual understandings relative to the

administration of the overall project accident prevention plan

before the initiation of work. The conference will be attended

by those who have a responsibility or significant role in

accident prevention on the project. The preconstruction safety

conference will often be the first exposure of a contractor to

the Corps construction safety and health program and should be

approached as such. The conference should be used as an

orientation to this program; unless proven otherwise,

it should not be assumed that the contractor is familiar with the

Corps construction safety and health program and its requirements

and procedures.
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a. A conference agenda will be developed to fit the

particular problems at hand. Items typically included in the

discussion are listed in Table 9-1

below.

Table 9-1. RECOMMENDED AGENDA FOR 

PRECONSTRUCTION SAFETY CONFERENCES.

1. Discussion of the purpose and benefits of Corps construction

safety and health program and contractor's accident prevention

plan.

2. Review of the accident prevention clause of the contract and

any other contractual safety and health clauses, EM 385-1-1, and

other applicable safety and health codes and standards.

3. Review of any local safety and health requirements.

4. Review of any other special requirements particular to the

contract at hand.

5. Review of the contractor's accident prevention plan, its

deficiencies, and the corrections needed to bring it to an

acceptable level.

6. Review of the contractor's list of anticipated phases of work

requiring an activity hazard analysis.

7. Review of accident investigation and report requirements,

including the submission of worker exposure reports.

8. Discussion of the contractor's proposals of controlling and

coordinating the work of subcontractors.

b. As noted above, the conference will be used to discuss

and resolve deficiencies in the contractor's accident prevention

plan. The agreements reached at the preconstruction safety

conference shall become a matter of record and shall be included

as amendments to the contractor's accident prevention plan.

c. Minutes of the conference, including agreements reached

and a record of attendance, shall be maintained. Copies of the

minutes shall be forwarded to the safety and occupational health

office for review and then forwarded to the official contract

file. A copy of the minutes will also be provided to the

contractor.
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9-5. Activity Hazard Analysis.

The activity hazard analysis is a systematic, dynamic, documented

analysis of proposed job activities for the purpose of

identifying potential hazards and developing procedures which

will be used to control or remove those hazards. Activity hazard

analyses, carefully planned, thorough, and enforced, are the

primary tool for achieving a safe and healthful project.

a. An analysis will be developed by the contractor for every

operation involving a type of work presenting hazards not

experienced in previous project operations or where a new work

crew or subcontractor is to perform work. The analysis must

identify and evaluate hazards and outline the proposed methods

and techniques for the safe completion of each phase of

work. Work will not proceed on a phase of work until the

activity hazard analysis for that phase has been found acceptable

by the contracting officer's representative.

b. To prevent misunderstanding, the contractor shall submit

a list of those phases of work requiring an activity hazard

analysis either along with the accident prevention plan or during

the preconstruction safety conference. This list will be reviewed

at the conference and an agreement will be reached between the

contractor and the contracting officer's representative

as to which phases will require an analysis. In addition, a

schedule for the preparation, submittal, review, and acceptance

of activity hazard analyses should be established to preclude

project delays. The activity hazard analysis list will be

reviewed periodically (it is recommended that, at the minimum,

the list be reviewed at the monthly contractor supervisory

safety meeting) and updated as necessary when procedures,

scheduling), or hazards change.

c. The acceptable activity hazards analysis shall be

reviewed with all affected employees at the preparatory

inspection of the phase of work for which it was developed and at

weekly tool box safety meetings. The analysis should be utilized

during daily inspections to ensure the implementation and

effectiveness of the activity's safety and health controls.

d. Activity hazard analyses should be updated as necessary

to provide an effective response to changing work conditions and

activities.
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9-6. Compliance Inspections.

The contracting officer's representative will ensure that

inspections are made, as necessary but not less than once daily,

to check the contractors compliance with the requirements

contained in the contract, the accident prevention plan, and

activity hazard analyses. The COR will also ensure that

contractor personnel are conducting inspections, at least once

daily, for the contractor's and subcontractor's compliance with

these requirements. Inspections will be documented, preferably on

the inspectors daily report, and will identify all observed

deficiencies, the actions required to correct the deficiencies,

and will be followed-up to ensure correction of the deficiencies. 

All deficiencies of the contract safety and health requirements

will be brought to the attention of the contractor for prompt

correction. The following guidelines are recommended for gaining

compliance with safety and health requirements.

a. The contractor or their representative will be informed

of the deficiency and, based on the severity of the deficiency,

instructed to correct the deficiency within a reasonable, yet

prudent, period of time.

b. If the contractor declines to correct the deficiency

within the allotted time, the COR will remind the contractor of

the contractual obligation to correct unsafe and unhealthful

conditions associated with their activities and their own

requirements for the correction of deficiencies (as outlined in

the accident prevention plan).

c. If the contractor continues their refusal or is slow in

correcting the deficiency, the contracting officer's

representative shall issue an order stopping that part of the

work affected by the hazard until satisfactory corrective action

has been taken by the contractor. The contractor shall be

informed, in writing, of the extent of the stoppage, the date and

hour the work stopped, the reason for the action, and the

conditions under which the work may again proceed and an accurate

record shall be maintained on all personnel, material, and

equipment affected by the work stoppage. All of the above

actions shall be fully and factually documented in the daily

quality assurance report.

d. If there are deficiencies of a repetitive (recurring)

nature, the contracting officer's representative will remind the

contractor of the contractual obligation to correct unsafe and

unhealthful conditions and maintain the workplace in a safe and

healthful manner.
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e. If a contractor supervisory-level employee allows a

willful violation of EM 385-1-1, the employee will be reminded of

the contract requirement providing for the discharge of reckless

employees.

9-7. Unsafe Practices.

a. Reckless behavior or disregard of safety and health

requirements will not be tolerated and will not exist on Corps

projects. If any contractor employee endangers their now life,

the lives of others, or property by disregard of safety and

health requirements, the contractor shall be informed of the

employee and his unacceptable attitude towards accident

prevention, reminded of the contract requirement providing for

the discharge of such employees, and instructed to immediately

resolve the problem. This action will be documented in the daily

quality assurance report.

b. If, after notifying a contractor of a reckless employee;

the employee continues to disregard safety requirements, the

contractor will be requested to remove the employee from the

project or place the employee on work wher his actions will not

constitute a hazard. This action will also be documented in the

daily quality assurance report.

c. The choice a contractor makes between removing the

employee or placing him on work where their actions will not

constitute a hazard will depend on the contractor's approach for

the fair handling of reckless employees. In some cases a single

reckless act may warrant termination; in other cases the employee

may be warned in writing, temporarily removed from the jobsite,

or some otherwise reprimanded.

d. Imminent Danger Situations. When an imminent danger

condition or practice is observed, the following steps will be

taken:

(1) The inspector or construction representative will

instruct the contractor to immediately remove workers from the

area of danger or to desist from the dangerous operation or

practice.

(2) If a representative of the contractor is not at the

site, the inspector or construction representative will order the

workers to remove themselves from the dangerous location or to

cease the dangerous operation or practice.
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(3) The construction representative will ensure that the

work is not resumed in the area of danger and that workers will

not be involved in the operations or practices until

recommendations for corrections have been fully complied with.

(4) Employees creating imminent danger situations through

their reckless behavior shall be handled in accordance with

paragraph 9-7a and 9-7b, above.

9-8. Employee Safety and Health Training.

a. Government.

(1) Indoctrination. All employees shall be provided initial

safety and health indoctrination and continuing safety training

to enable them to perform their work in a safe manner. 

Indoctrination and training shall be based on the appropriate

district or division level safety and occupational

health program.

(2) Tool Box Safety Meetings. Contracting officer's

representatives shall establish procedures for and conduct

monthly safety meetings to provide safety training and motivation

to their employees. The minutes of these safety meetings shall

be recorded and maintained.

b. Contractor.

(1) Indoctrination. Every contractor and subcontractor

employee shall be provided initial safety and health

indoctrination and continuing safety training to enable them to

perform their work in a safe manner. Indoctrination and training

shall be based on the contractor's accident prevention plan and

shall cover, but not limited to, subjects specified in 

EM 385-1-1.

(2) Tool Box Safety Meetings. In accordance with

requirements of EM 385-1-1, the contractor and subcontractors

shall conduct safety and health meetings monthly for supervisors

and weekly for workers. These meetings shall include a review of

past activities, discussion of plans for new or changed

operations, a review of pertinent aspects of applicable activity

hazard analyses (by trade), the establishment of safe working

procedures for anticipated hazards, and provide pertinent safety

and health training. (Corps inspectors and construction

representatives are encouraged to attend these meetings on a

frequent basis.)
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The contractor shall provide an outlined report (including date,

attendance, and subjects discussed) of each meeting to the

contracting officer's representative who will review the reports

for the content and effectiveness of the meetings.

9-9. General Procedures.

a. Equipment Inspection and Testing. Before heavy equipment

and floating plant are put into operation at the job site, the

contracting officer's representative shall be notified so that

joint inspections by the contractor and the contracting officer's

representative and performance testing of the equipment can be

made. All equipment and tests shall be documented and copies of

the documented reports maintained at the project site and at the

resident engineer's office. Defective equipment will not be

operated until all deficiencies are corrected and the equipment

meets inspection and testing requirements.

b. Waivers to Safety Standards. EM 385-1-1,

division/district-level accident prevention policies, contractual

safety and health provisions, and other guidance issued by higher

authority are applicable to all work performed by contract. 

Compliance is essential. However, in circumstances

where compliance with a specific safety standard is not

attainable, a waiver, providing equal or greater protection than

that of the non-attainable standard, will be requested. Waiver

requests will be conducted in accordance with division level

policy. Waivers must be fully documented, stating which

requirement is to be waived, what conditions necessitate the

waiver, and how protection, equal to or greater than the

intent of the requirement, will be provided.

c. Local Safety and Occupational Health Programs. All area,

resident, and project offices are encouraged to develop local

safety and health programs which provide for the protection of

both government and contractor employees and property and members

of the public exposed to Corps and contractor activities. It is

recommended that local safety and occupational health programs be

derived from requirements of their district safety and

occupational health program integrated with local needs,

priorities, and procedures.

d. Housekeeping. Good housekeeping is an indispensable part

of any construction program. It reduces accident potential,

stimulates employee morale, and facilitates productivity.

Resident engineers will insist that contractors keep construction

and storage areas free from the accumulation of material or

rubbish, as required by EM 385-1-1.
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e. Personal Protective Clothing and Equipment. Personal

protective equipment shall be used as required to reduce exposure

to acceptable limits. All users of protective equipment shall be

trained in and knowledgeable of the use and limitations and the

inspection, testing, and maintenance of the

equipment. When employees provide their own equipment the

employer is responsible for assuring its adequacy in protecting

against the hazard, its condition and state of repair.

f. Protection of the Public. Contractors are required to

protect the public from hazards from their operations. Such

protection shall include, but is not limited to, appropriate

project fencing, excavation barricading, nigh lighting of areas

not fenced off from the public but with public exposure,

diversion of public access from hazardous areas, and warning and

signaling systems.

9-10. Accident Investigation and Reporting.

a. In addition to OSHA requirements, contractors are

required to report all accidents which are incidental to work

performed under the contract and result in the following:

(1) Fatalities.

(2) Lost-time injuries and occupational illnesses (including

permanent total, permanent partial, or temporary total disabling

injuries).

(3) Damage to property, materials, supplies, and equipment

costing $1,000 or more.

b. Accidents will be reported to the contracting officer's

representative in accordance with the requirements, and within

the time frames, of division or district policy and as specified

at the preconstruction safety conference. (Accident report forms,

with instructions for preparation and submittal, will be

furnished to contractors at the preconstruction conference.) The

contracting officer's representative will review all accident

reports submitted by contractors to determine that the causes

indicated on the reports are correct and that corrective measure

to reduce the likelihood of future occurrences are effective. 

Contracting officer's representatives will conduct follow-up

investigations to determine if the corrective actions have been

implemented and, if so, their effectiveness.
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c. To ensure the thoroughness of the contractor's accident

reporting, it is recommended that Contracting officer's

representatives periodically review the contractor's OSHA

required log of recordable occupational injuries and

illnesses for the project. Accidents which are documented on the

log but have not been reported to the Corps shall be brought to

the contractor's attention and the contractor reminded to

immediately report the accident.

9-11. Compliance with Federal, State, and Local Regulations.

Compliance with federal, state, and local safety and health

regulations is required under the "Permits and Responsibilities"

clause of the contract. The ACO cooperates with state forces in

requiring observance of state laws and regulations, including

environmental pollution control and OSHA (federal or state)

regulations, but will not intercede or interfere in OSHA's

inspection of USACE contractors.

9-12. Hazardous Materials.

a. Federal OSHA 29 CFR 1926.59 requires that construction

contractors provide a Hazard Communication Program to their

employees who may be exposed to hazardous substances on the

jobsite. Similarly, the COE has such a program for its employees

and a standardized Hazard Communication Training package is

available from your local FOA Safety Officer. The training

program consists of 7 modules on VHS tapes with a student

handbook. The training program takes about 4 hours and is

mandatory for all COE employees who may be exposed to hazardous

subtances. The COE Safety and Health Requirements Manual EM 385-

1-1, contains requirements for construction contractors to submit

material safety data sheets for hazardous substances used on the

jobsite. The material safety data sheets should be submitted to

the ACO/COR on the jobsite.

b. ER 385-1-92, Safety and Occupational Health Document

Requirements for Hazardous Waste Site Remedial Actions,

prescribes the responsibilities and establishes procedures for

developing the site safety plans and related safety and

occupational health documents required when performing hazardous

waste site remedial actions.

c. The resident engineer should be aware that there are

strict OSHA and EPA regulations affecting exposure to asbestos

materials and how it is to be treated when encountered on the

construction site. OSHA Asbestos Standards (29 CFR 1910.1001 and

29 CFR 1926.58 regulate employee exposure standards.
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Safety Terminology:

Accident prevention plan - the written plan which addresses the

prime contractor's accident prevention policy and procedures and

responsibilities for complying with Corps of Engineers'

contractual safety and health requirements. Applies to all prime

and sub-contractor employees on the project for which it was

developed.

Activity hazard analysis - systematic analysis of a work activity

to determine the hazards of the activity and the methods to be

utilized in the control of those hazards.

Contractor - unless specifically referred to as prime contractor,

this term also includes subcontractors.

Imminent danger - a condition of practice which could reasonably

be expected to cause death or serious physical harm immediately

or before the hazard would be corrected through normal

procedures.

OSHA - The federal Occupational Safety and Health Administration. 

In states with an approved state occupational safety and health

plan, the term "OSHA" also refers to the state occupational

safety and health administration.

Preconstruction safety conference - a conference, held before

initiation of construction activities, between Corps and

contractor management and supervisory personnel having a

responsibility or significant role in accident prevention on the

project. The intent of the conference is for the Corps and

contractor to reach mutual agreement on the Corps' contractual

safety and health requirements and the contractors accident

prevention plan.

Reckless behavior - irresponsible, rash behavior disregarding the

consequences of such actions.

Tool box safety meetings - periodic meetings for discussion of

past, current, and future work activities, the hazards of those

activities, and the methods to control those hazards and for

presentation of safety and health training and promotion.

Willful violation - a safety and health requirement violation

where the contractor knows the condition or practice is hazardous

and does not make a reasonable effort to eliminate the condition. 

(Deliberate, voluntary, or intentional as distinguished from

inadvertent, accidental, or ordinarily negligent.)
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SECTION 10

LABOR RELATIONS

10-1. Labor Relations and Labor Standards Enforcement.

a. The prime contractor is responsible for resolving labor

disputes and work stoppages.

b. The resident engineer is responsible for establishing and

maintaining good relations with contractors and local contractor

and labor organizations and acts promptly to avoid or reduce work

stoppages which affect contracts. The resident engineer seeks

voluntary agreement between management and labor to permit

uninterrupted prosecution of contracts. The resident office

avoids involving the Government in labor disputes.

c. The resident engineer does not take part in the

adjustment of jurisdictional disputes between unions other than

attempting to bring the parties in dispute together to settle

their differences.

d. The resident engineer and staff make spot checks of prime

contractors' and subcontractors' payroll copies, conduct regular

employee interviews, and check wage rate and EEO postings.

10-2. Equal Employment Opportunity.

a. The contractor must take affirmative action to ensure

that applicants for employment and employees are treated without

regard to their race, color, religion, sex, national origin, or

handicapping condition. The contractor is also required to take

affirmative action to employ, advance in employment, and

otherwise treat qualified disabled veterans and veterans of

the Vietnam era without discrimination based upon their

disability or veteran's status. In addition, the contractor is

not to discriminate against any employee or applicant for

employment because of physical or mental handicap regarding any

position for which the individual is qualified.

b. In a conspicuous place available to employees and

applicants for employment, the contractor must post notices

provided by the contracting officer which set forth the

provisions of the EEO clause as well as notices prescribed by
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the Director, Office of Federal Contract Compliance Programs. 

The resident engineer ascertains whether the required notices are

properly posted. These notices must include specific information

regarding name(s) of contacts, location, and telephone numbers of

an office or individuals who can assist with allegations of

discrimination.

10-3. Davis-Bacon Act.

a. The Davis-Bacon Act stipulates that each laborer and

mechanic employed on the contract work site must receive no less

than the prevailing wage, including basic hourly rates and fringe

benefits. The prevailing wage is determined by the Secretary of

Labor and is included in each contract.

b. The various classifications of laborers and mechanics

that may be employed at the work site are listed in the contract

schedule of wage rates. Additional classifications require prior

written approval of the contracting officer. The hiring of labor

classifications by the contractor or subcontractors other than

those included in the contract or approved by the contracting

officer is not permitted at the job site. Requests for

additional classifications must be submitted to the resident

engineer utilizing DD Form 1565, Request for Authorization of

Additional Classification and Rate. When the completed forms are

submitted, the resident engineer checks them for completeness and

ascertains the following:

(1) That the skill cannot be classified into one already

contained in the applicable wage determination.

(2) That the classification is generally recognized in the

area or construction industry.

(3) That the proposed wage rate, including any fringe

benefits, conforms to the wage determination decision contained

in the contract.

After the resident engineer determines that the form is complete,

a final review has been accomplished, and all data is in

compliance with (1), (2), and (3) above, the RE forwards the form

to the district labor advisor for processing and approval. If

the form is not in compliance with the above criteria and the

resident engineer and the contractor cannot resolve the matter,

the resident engineer submits the problem to the district labor

advisor for resolution.
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c. A copy of the contract schedule of minimum wage rates with

a wage rate information poster must be posted at the job site in a

conspicuous place that is accessible to all employees. Any

approved additional classification forms must also be posted. The

resident engineer ascertains that these items are posted.

10-4. Overtime Compensation.

The Contract Work Hours Standards Act (Public Law 87-581) states

that laborers and mechanics must be paid for all hours in excess

of 8 hours a day or 40 hours a week, whichever is the greater

number, at not less than one and one-half times their basic hourly

rate of pay. When the contractor is not in compliance, the

resident engineer assesses penalties which include

assessments for each laborer or mechanic for every calendar day in

which the employee is not properly compensated.

10-5. Apprentices and Trainees.

a. A contractor may employ apprentices and trainees on

construction projects only after submitting evidence that

employees are registered in a training program accepted by a state

apprenticeship and training agency recognized and approved by the

U.S. Bureau of Apprenticeship and Training, or have been trained

by the Bureau itself. The contractor is also required to submit

written evidence of apprentice-journeymen ratios and wage rates,

including fringe benefit payments established for this program in

the project area. Upon receiving such submissions, the resident

engineer may accept the ratios for compliance with the contract

requirements.

b. When a contractor has classified employees as apprentices

or trainees without complying with the above requirements, the

classification is rejected. The contractor must pay such

employees at the journeyman rate applicable to the classification

of work they actually performed.

10-6. Payrolls and Basic Records.

a. Weekly payroll copies and accompanying executed statements

of compliance (may optionally use WH Form 347, Payroll) are

submitted by the contractor, to include those of all

subcontractors. The resident engineer ensures that all required

payroll copies are received. ENG Form 3180, Contractor Payroll

Record, is used to control receipt and review of payroll copies;

these are regularly spot checked by the resident engineer or his
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staff to ensure compliance with the contractor labor standards

provisions.

b. When payroll copies are delinquent, a monetary amount

sufficient to cover labor performed during the time involved is

withheld from partial payment estimates until the delinquent

payroll copies have been received and determined to be in

compliance.

c. When violations are detected on the payroll copies and are

readily adjustable (amount of restitution per contractor is less

than $1,000 and violations are not willful), a letter is furnished

to the contractor citing the discrepancies and the corrective

action. When evidence of restitution is required, such evidence

must be in one of the following forms:

(1) Statements signed by employees acknowledging receipt of

the required restitution. Statements must indicate gross amounts

of restitution, deductions, and net amounts.

(2) Photostatic copies of certified checks made payable to

employees involved, copies of registered or certified mail

receipts indicating that the checks were delivered to employees,

and statements reporting gross amounts paid, deductions, and net

amounts.

(3) Photostatic copies of both sides of cancelled checks made

payable to and endorsed by employees involved and statements

reporting gross amounts paid, deductions, and net amounts. When

violations are not readily adjustable (involve restitution

exceeding $1,000 or are willful), the facts are submitted to the

district labor advisor for resolution.

d. The resident engineer conducts contractor and

subcontractor employee interviews to check the employer's

compliance with the labor standards provisions of each contract. 

DD Form 1567, Labor Standards Interview, is used. The number of

interviews conducted each week is determined by the number of

employees performing work in each classification and the scope of

the contract work. Interviews on a work site should provide a

cross section of the work force, including employees of

subcontractors, and should be held on a routine basis. 

Information obtained during the interviews is checked

against the information reported on weekly payroll copies.

e. Self-employed contractors must report themselves as selfemployed on their weekly payroll copies submitted to the resident

engineer.
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10-7. Copeland Act.

The Copeland Act of the Secretary of Labor lists certain

permissible deductions from the wages of employees. These

include deductions made in compliance with Federal and state

income tax withholding provisions, Federal social security tax,

contributions to approved funds established to provide

health and welfare benefits, and pensions. Deductions for

purposes other than those listed are prohibited unless

specifically authorized by the Secretary of Labor.

10-8. Subcontractors.

Within 7 days of awarding any subcontract by the contractor

or a subcontractor, the contractor must submit a statement with

the name and address of the subcontractor and a summary

description of the work subcontracted. This statement will also

attest that the labor provisions required to be included in all

subcontracts have been so incorporated. The Statement and

Acknowledgment, SF 1413, will be used. The resident engineer

makes certain that those forms are furnished, checked, and

forwarded to the district.

10-9. Labor Disputes.

When a labor dispute, work stoppage, or threat of a work

stoppage occurs, the resident engineer reports the facts to the

district labor advisor by the most expeditious means and confirms

the report by submitting a completed DD Form 1507, Work Stoppage

Report. The district is kept informed of any significant changes

in the situation as originally reported.

10-10. Labor Organization Representatives on Work Sites.

Labor organization representatives should be admitted to

contract work sites to conduct union business (excluding

organizing activities, collective bargaining discussions, and

other matters not directly connected with the project being

visited), provided that the visits will not interfere with the

contract work nor violate safety or security regulations.
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SECTION 11

PHYSICAL SECURITY

11-1. General.

a. Physical security is defined as the safeguarding by

physical means of Government plans, programs, personnel,

property, utilities, information, and installations against

compromise, trespass, sabotage, pilferage, theft, larceny,

embezzlement, fraud, arson, or any other dishonest or criminal

act. The maintenance of a comprehensive and continuous physical

security program is essential to the successful operation of

USACE installations and activities.

b. This chapter considers the evaluation of an installation

or facility with regard to all factors bearing upon accessibility

and location and the element's importance to overall district

operations and national interest. Also to be considered is the

vulnerability of equipment, supplies, or information to loss

through theft or willful damage.

11-2. Responsibility.

The resident engineer assumes responsibility for supervising

adequate physical security within the resident office area of

responsibility and is authorized to deal directly with the

district on physical security matters. The resident engineer is

also responsible for preventing and detecting criminal activities

and physical security hazards and for eliminating physical

security deficiencies at field operating agencies by issuing

pertinent instructions and supervising the following:

a. The movement, control, and identification of personnel.

b. Prevention, investigation, and reporting of crimes.

c. Traffic control on installations and projects and

investigating traffic accidents.

d. Orders and instructions applicable to the operations of

physical security guards.

e. Enforcement of laws, orders, and regulations pertinent to

classified construction projects and activities.
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f. Establishment of interim measure for physical security

such as the need for maximum, medium, or minimum security,

consistent with the criticality to national security and

construction schedules for security facilities, which

are ascertained from district authorities.

11-3. Reporting.

a. The resident engineer reports all actual or suspected

criminal activities within the resident office area of

responsibility to the local civilian or military police agency. 

Additionally, the district is notified of such activity

indicating that a report (ENG Form 4337, Offense/Incident Report)

was made to the appropriate policy agency.

b. Incidents to be recorded are offenses or suspected

offenses or murder, voluntary and involuntary manslaughter, sex

crimes, aggravated assault, arson, larceny, robbery, burglary,

use and possession of narcotics and dangerous drugs, destruction

of property, disorderly conduct, violation of physical security

(i.e., sabotage, espionage, subversive points such as electric

power supply, transformer installation, electric power

transmission, communication centers and equipment, valves and

regulators, water tanks and equipment), fire, accidents (water

and vehicle), or other dishonest or criminal acts committed by or

against any individual under the administrative jurisdiction of

the district. Also included are losses of Government or private

property and the recovery of any property previously reported

lost, stolen, or destroyed.

c. The resident engineer immediately reports to the district

any serious incident or larceny of property with value of more

than $100 and destruction of property with value of more than

$300. The report includes the following:

(1) Nature of the incident, date, and place.

(2) If the incident involved a loss to the Government

through theft or destruction, the estimated amount.

(3) Summary of known facts including the names and addresses

of witnesses or persons having knowledge of the incident.

(4) The name of the offender, victim, and apprehending

agency, if known.
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d. Minor personal injuries, such as a person injured by

falling, cutting fingers on paper, dust in the eye, or bumping

into a door are not reported unless medical treatment is required

and work time is lost. All motor vehicles accidents and

resulting injuries, as well as injuries sustained as

a result of fire or coincident to a commited crime, are reported. 

Water accidents involving tow boats, floating plant, etc., need

not be reported unless they affect physical security, such as

damage to a perimeter, electric power, communications, or the

like.

e. The foregoing guidance requires prompt submission of

normal incident reports. Any incident which might create adverse

publicity (including actions of fraud, bribery, malfeasance, or

conflicts of interest) is immediately reported to the district

commander upon discovery or upon receipt of a complaint or

allegation of such offense. Reporting of an incident is not

delayed for any reason. (See AR 190-40, Serious Incident

Report, and HQUSACE supplements to AR 190 series.) Should

incidents involve issues of alledged discrimination, the district

EEO officer must be informed immediately.

f. Reporting the incident does not necessarily close the

incident. Additional facts should be reported as they develop.

g. All incidents will be investigated by the district or

other qualified military police personnel. The resident engineer

is not required to make an investigation except in those

incidents where criminality is not an issue.

11-4. Physical Security Assistance.

a. Trained military police officers assigned to USACE are

available to assist the resident engineer in all phases of the

physical security program. This assistance may be requested

through established channels for physical security and crime

prevention surveys, or through consultations on unusual

security conditions, and for criminal investigations.

b. Where construction sites or facilities are located within

a military reservation, assistance for physical security and

security support may be rendered by other authorities. 

Coordination should be made with the military installation

provost marshal or chief law enforcement officer to determine the

extent of support to be rendered the resident engineer and to

clarify actions in resolving differences incident to security

matters.
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SECTION 12

REAL ESTATE

12-1. General.

a. The district acquires the necessary real estate prior to

awarding a contract. Property for construction is acquired by

purchase, by lease, or by obtaining an easement. Acquisition

through condemnation may be necessary if agreement cannot be

otherwise reached. Temporary rights of entry are sometimes

obtained to permit exploring and survey work prior to

construction.

b. The policies and procedures to be followed in acquiring

real estate are cited in ER 405-1-12, Real Estate Handbook.

12-2. Real Estate Responsibility.

a. The district keeps the resident engineer informed, in

writing, of the scope and extent of real estate acquired for

construction of a project. The resident engineer uses the

consultation services and guidance of the district on real estate

problems encountered, when necessary.

b. The resident engineer assumes responsibility for knowing

the boundary of the Government-owned or leased property near the

construction site and for assuring that there is no trespassing

or use of any property which is outside the boundary of the

construction site. If additional real estate is required for

accomplishing the construction, the resident engineer immediately

notifies the district and states the reasons and justifications.

Requests for military real estate acquisition are initiated by

the using service (AR 405-10, Acquisition of Real Property and

Interests Therein).

12-3. Real Estate Disposal, and Use by Others.

The disposal of real estate and real estate components, both

civil and military, will be in accordance with procedures in ER

405-1-12. Granting use of acquired real estate to others by

lease, easement, license, or permit will be in accordance with

procedures in the same pamphlet.
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SECTION 13

 

ENVIRONMENTAL PROTECTION

13-1. General.

a. As the Corps of Engineers role expands into the area of

hazardous and toxic waste cleanup, chemical demilitarization

projects, EPA superfund projects and other environmentally

sensitive projects, the resident engineers responsibilities

toward protecting the environment becomes much

broader than those typically found on our normal construction

sites. The resident engineer and his staff must recognize the

potential pitfalls of performing construction or remedial work in

environmentally sensitive areas. Further guidance in implementing

this type of work is available from various HQUSACE and local

regulations which are referenced herein.

b. In addition to the special type projects noted above, our

typical construction projects may also present potential areas

where environmental damage is likely. As a result, the resident

engineer should review proposed construction projects to

determine common potential sources of environmental degradation

during construction activities. Special and technical environmental protection clauses of the contract documents must be

examined to understand all special environmental pollution

controls, to ensure compliance to the maximum extent practicable,

and to ensure that environmental controls established during the

planning phase are implemented.

13-2. Environmental Restoration Project Management.

a. The Superfund Management Guide, EP 1110-2-6, provides the

general guidance on USACE management of the EPA Superfund

program. Although overall program guidance, policy, and funding

for Corps support originates with the EPA, the USACE and EPA

interagency agreement (IAG) provides that USACE manage "Superfund

Federal Lead Fund Financed" design and construction contracts,

manage remedial investigations and/or feasibility studies upon

EPA request, and provide technical assistance to EPA in support

of remedial cleanup of hazardous waste sites. FOA Construction

Divisions/Districts are responsible for administration of

Superfund construction projects within their Superfund assigned

areas.

b. The Construction District, as the Government's on-site

representative, is responsible for assuring that
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specific project operations stated in the contract specifications

are performed satisfactorily and that appropriate documentation

of daily tasks is compiled. Many of these projects will be the

subject of Justice Department legal action against the party

responsible for the contamination, and detailed records are

required. Documents include reports sufficient to

develop a chronlogical record of site activities and to prepare

documents suitable for community relations activities, e.g.

contractor daily reports, change orders, problems regarding

compliance with environmental and contractual requirements,

laboratory and monitoring data, etc.

c. Manifest System - The Manifest System is the "Cradle-ToGrave" system of control of the transport of all hazardous toxic

waste materials. A generator who transports, or offers for

transportation, hazardous waste for offsite treatment, storage,

or disposal must prepare a Manifest that tracks the hazardous

waste to its final destination. All generators who ship HTW,

transporters, and facilities that receive HTW must use the

Manifest System. This is the fourth key step in the regulatory

process which controls the shipment of HTW.

d. Site specific technical support will be provided by MRD

on a reimburseable basis, as the lead Division and design center

of expertise for this program. This may include developing site

specific quality management and safety plans. The Site Specific

Quality Management Plan (SSQMP) and other QM documents are

detailed in ER 1110-1-263. The Site Specific Safety Plan (SSSP)

and the Accident Prevention Plan are detailed in ER 385-1-92.

13-3. Air Pollution.

a. The resident engineer is alert to operations and

procedures which cause air pollution and is able to determine if

Federal, state, and local standards are being followed.

b. Some common construction operations which are usually

scrutinized for air pollution are as follows:

(1) Quarry drilling and rock crushing.

(2) Clearing, grubbing, and stripping.

(3) Excavation and embankment.

(4) Cement and aggregate handling at mixing sites.
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(5) Cement or lime in soil stabilization.

(6) Blasting.

(7) Haul road construction and maintenance.

(8) Sandblasting and shotcrete.

c. Smoke, fumes, and sprays which may cause air pollution

include the following:

(1) Volatiles from asphalt and cutback materials.

(2) Fumes from heaters during winter operations.

(3) Burning cleared growth and scrap material.

(4) Smoke from asphalt/coal tar heaters.

(5) Paints.

(6) Herbicides and insecticides.

13-4. Water Pollution.

a. Water pollution in construction operations occurs through

spillage, waste of materials, and erosion. Carefully considered

construction methods and material handling can eliminate most

potential water pollution. Water quality standards to be met at

the specific project site should be included in the

specifications. Water pollution is controlled principally by

diking to contain spillages, by settling basins to reduce

suspended solids in runoff, and by seeding or sodding surfaces

for erosion control.

b. Contractors must provide safeguards and use construction

techniques that will protect the environment from accidental

spillage of materials, which eventually are carried to water

courses by storm runoff. Some common sources of such pollution

are as follows:

(1) Waste from floating plant (fuel, oil, grease, etc)

(2) Treatment and disposal of drill cuttings and waste water

from drilling and grouting operations.

(3) Sterilization products, (water tanks or lines)

(4) Concrete operations:
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(a) Aggregate washing and cooling.

(b) Cement and concrete spillage.

(c) Water curing and form-release compounds.

(d) Lift cleanup and preparation.

(e) Spillage and waste of curing compounds.

(f) Waste from equipment washing.

(5) Vehicle maintenance:

(a) Fuel spillage.

(b) Crankcase drainage.

c. Contractors must consider confining silt laden waters in

dredging operations to areas of dredging and controlling the

spread of contaminated waters from the site.

13-5. Land Pollution.

Landscape defacement is the most permanent of all the forms

of despoilment by construction activities. When a tree is

needlessly removed or damaged, repair or replacement takes years. 

When earth is removed in the wrong place, the environment is

marred. Common land despoilment actions during construction

operations include destruction of land forms and vegetation and

pollution of the land by spillage and waste.

a. Destruction of land forms and vegetation. Disposal of

material in waste or spoil disposal areas should be controlled. 

The location, layout, and restoration after abandoning roads,

camps, shops and work areas should be covered in the

specifications and drawings. Visual protection for surrounding

or nearby residential areas from the work and storage areas

should be accomplished by screening with effective plantings,

fencing, or a combination of the two. Work areas, particularly

in urban locations, should be confined to that specifically

needed.

b. Pollution of land by spillage and waste. Laxity in the

contractors' housekeeping activities, which contributes to

spillage and waste, can be controlled by enforcing safety

regulations. However, the specifications should cover those

items known to be difficult to control by specifying

specific safety regulations that must be implemented.
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13-6. Noise Pollution.

This category of pollution includes a wide range of causes,

from faulty mufflers on equipment to uncontrolled use of explosives. Noise pollution is a serious concern in urban areas. 

The project should be reviewed for possible noise pollution

problems and appropriate protective measures should be implemented to eliminate or substantially reduce them. The resident

engineer should stay abreast of regulations concerning noise

pollution.
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SECTION 14

STANDARDS OF CONDUCT

14-1. Introduction.

Numerous public laws and executive orders set forth

standards of conduct and define conflicts of interest for

Government employees. Subject areas included are as follows:

a. Criminal bribery and graft

b. Receipt of gratuities by Government employees

c. Financial and other conflicts of interest

d. Certain outside activities of Government employees

e. Prosecution of claims against the Government

f. Former employees of the Government dealing with matters

that are before their agencies at the time of employment

g. Retired regular military officers selling to DOD

h. Contracting with Government employees

14-2. Basic Principles.

The following quote from FAR 3.101-1 illustrates the basic

principle underlying all the various statutes and regulations

relating to standards of conduct.

"Government business shall be conducted in a manner above

reproach and, except as authorized by statute or regulation, with

complete impartiality and with preferential treatment for none. 

Transactions relating to the expenditure of public funds require

the highest degree of public trust and an impeccable standard of

conduct. The general rule is to avoid strictly any conflict of

interest or even the appearance of a conflict of interest in

Government-contractor relationships. While many Federal laws and

regulations place restrictions on the actions of Government

personnel, their official conduct must be such that they would

have no reluctance to make a full public disclosure of their

actions." Knowing these basic principles is not enough. The

challenge is to apply these principles in everyday

situations.
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14-3. Standards of Conduct Regulations.

a. It is the policy of the Government to place loyalty to

country, ethical principles, and law above private gain and other

interests. All USACE employees must avoid engaging in any

personal business or professional activity, or having any direct

or indirect financial interest that creates a conflict or

appearance of conflict between private interest and public duty.

An understanding of the laws and regulations relating to

Standards of Conduct and Conflicts of Interest are mandatory

requirements for DA personnel in order to avoid conflicts of

interest or other criminal and ethical violations.

b. The FAR Part 3, DFARS Part 203, Department of Defense

Directive (DoDD) 5500.7, AFARS Part 3 and AR 600-50 prescribe

policy and procedures relating to Standards of Conduct. AR 600-

50 specifically prescribes Standards of Conduct for all DA

personnel, regardless of assignment, and is applicable to

all USACE personnel. The following major topics are covered in

the regulation:

(1) Be familiar with all provisions relating to Standards of

Conduct

(2) Avoid any action that is actually or may reasonably be

expected to give the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any person or entity;

(c) Impeding Government efficiency or economy;

(d) Losing independence or impartiality;

(e) Making a Government decision outside official channels;

(f) Adversely affecting public confidence in the integrity

of the Government;

(3) Conflicts of Interest and General Prohibitions: Avoid

actual or apparent conflicts between personal interests and

public duty. Private /personal interest includes the interest of

the spouse, dependent child, and other household members.
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(4) Using inside information:

(a) Do not engage in personal business or professional

activity or enter into financial transactions that involve direct

or indirect use of "inside information."

(b) Do not release acquisition information to an individual

or business concerning proposed procurements.

(5) Using official positions:

(a) Do not use your official position to influence any

person, including subordinates, from providing unauthorized

benefits to themselves or others.

(b) Prohibition against commercial dealings and other

solicitations to other DoD personnel junior in position. 

Personal commercial dealings between military personnel and their

spouses generally are to be avoided.

(c) The failure to comply with these regulations may subject

offenders to administrative action or criminal punishment

pursuant to Title 18 of the United States code.

c. Gratuities. DA personnel and their families must not

solicit or accept any gratuity from any source that is engaged in

or seeks DoD business or conducts activities regulated by DoD. 

This includes interest that may be substantially affected by the

performance or nonperformance of official duties of DA personnel. 

Some limited exceptions are:

(1) Acceptance of unsolicited advertising or promotional

items that are less than $10.00 in retail value.

(2) Benefits available to the public and free exhibitions

DoD contractors at public trade fairs.

(3) Discounts or concessions extended Army-wide and

realistically available to all DA personnel.

(4) Participation by DA Personnel in civil and/or community

activities when any relationship with defense contractors is

remote.

(5) Contractor-provided transportation, meals, or overnight

accommodations in connection with official business, when

arrangements for Government or commercial accommodations are

clearly impracticable. Individuals must report such

circumstances in writing to their supervisor.
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(6) Attendance at tuition-free nonacademic training sessions

or seminars when attendance is in the interests of the Government

and the contractors waive all claims against the Government.

NOTE: Tangible and intangible gifts/prizes/incentives acquired

incident to official travel should be turned over to an

appropriate official when participating on behalf of the

Government.

d. Use of Government Property. Government facilities and

property will be used only for official purposes. The use of

Government vehicles are prohibited for personal use or

nonofficial purposes, especially home to work travel. 

(31 U.S.C.1344)

e. Off-Duty Employment. DA employees may not enter into

outside activities that: (i) interfere with official duties,

(ii) discredits the DA, and (iii) is inconsistent with AR 600-50.

f. Appearances of Conflict. DA personnel should avoid the

appearance of favoritism on any matters relating to competitive

procurement, release of information, or any unauthorized

discussions.

14-4. Fraud, Waste and Abuse.

Fraud is a crime while waste and abuse are mismanagement. Some

indicators of fraud that DA employees should be cognizant of, are

described below. However, they do not in themselves constitute

conclusive evidence of fraud.

a. Solicitations restricting procurement to exclude or

hamper any qualified source.

b. Limiting time for submission of offers so only those with

advance information have adequate time to prepare bids/proposals.

c. Revealing information about a procurement to one

contractor which is not revealed to all.

d. Providing special assistance to any contractor in

preparing his bid or proposal.

e. Falsification of documents or receipts to get a late bid

accepted.
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f. Collusion or bid rigging between bidders.

g. Falsification of required certificates.

h. Acceptance of nonresponsive bids from preferred offerors.

i. Using biased evaluation criteria or using biased

individuals in the evaluation panel.

j. Improper disqualification of any qualified bidder.

k. Award of the contract:

(1) To other than the lowest, responsive responsible bidder

in sealed bid procurements.

(2) Without documentation of all preaward and postaward

actions.

FOR THE COMMANDER:

ALBERT J. GENETTI JR.

Colonel, Corps of Engineers

Chief of Staff

3 Appendixes

APP A - References

APP B - Preconstruction Conference Guidance

APP C - Safety Checklist

APP D - Glossary
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APPENDIX A

REFERENCES

Section I. Publications

AFARS 15.8 Price Negotiation

Army Regulations

AR 25-1 Army Information Resources

 Management Program

AR 25-50 Preparing and Managing

 Correspondence

AR 25-400-2 The Modern Army Recordkeeping

 System (MARKS)

AR 190-40 Serious Incident Report

AR 335-15 Management Information

 Control System

AR 405-10 Acquisition of Real Property

 and Interests Therein

AR 415-10 Military Construction - General

AR 415-15 Military Construction, Army

 (MCA) Program Development

AR 415-28 Department of the Army Facility

 Classes and Construction

 Categories

AR 420-10 Management of Install. DEH's

AR 570-4 Manpower Management

AR 600-50 Standards of Conduct for

 Department of the Army

 Personnel

CFR, Title 29, Part 1926 Safety and Health Regulations

 for Construction

DA PAM 25-30 Consolidated Index of Army

 Publications and Blank Forms

Engineer Federal Acquisition Regulation Supplement

EFARS 1.603-3 (100) Appointment (ACO)

EFARS 36.201 Evaluation of Contractor

 Performance

EFARS 36.203 Government Estimate of

 Construction Costs
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Engineer Manuals

EM 385-1-1 Safety and Health Req. Manual

Engineer Pamphlets

EP 11-1-4 Value Engineering Benefits

EP 25-1-1 Index of Publications

EP 25-1-2 Index of Blank Forms

EP 310-1-6 Graphic Standards Manual

EP 415-1-2 Modifications and Claim Guide

EP 415-1-4 Network Analysis Systems Guide

EP 415-1-261 Construction Inspector's Guide

 (Volume's 1-4)

EP 690-1-12 Career System for Construction

 Control Personnel

EP 1110-2-6 EPA Superfund Management Guide

Engineer Regulations

EP 1-1-11 Network Analysis System

ER 5-2-1 Life Cycle Project Management

 System

ER 37-2-10 Accounting and Reporting Civil

 Works Activities

ER 37-345-10 Accounting and Reporting

 Military Activities

ER 55-1-2 Travel Management

ER 385-1-92 Safety Document Req. for HW

 Site Remedial Actions

ER 405-1-12 Real Estate Handbook

ER 415-1-10 Contractor Submittal Procedures

ER 415-1-11 Biddability, Constructibility

 and Operability

ER 415-1-13 Design and Construction

 Evaluation

ER 415-1-15 Construction Time Extensions

 for Weather

ER 415-1-302 Inspection and Work Records

ER 415-7-1 (FR) Construction Contractor

 Performance Evaluations

ER 415-345-13 Financial Closeout

ER 415-345-38 Transfer and Warranties

ER 415-345-42 Costs, Cost Estimating, and

 Reserves for Contingencies

ER 700-1-1 USACE Supply Policies and

 Procedures

ER 715-1-10 A-E Responsibility Management

 Program
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ER 750-1-1 Material Maintenance Policies

ER 1110-1-263 Chemical Quality Management

 Toxic ∧ Hazardous Wastes

ER 1150-2-302 Annual Report on Local

 Cooperation Agreements

ER 1165-2-131 Local Cooperation Agreements

 for New Start Constr. Projects

ER 1180-1-6 Construction Quality Management

Federal Acquisition Regulation

FAR 3.101 Standards of Conduct

FAR 36.2 Special Aspects of Contracting

 for Construction

FAR 45.6 Reporting, Redistribution, and

 Disposal of Contr. Inventory

FAR 52.212-11 Variation in Estimated Quantity

FAR 52.212-12 Suspension of Work

FAR 52.233-1 Disputes

FAR 52.236-11 Use and Possession Prior to

 Completion

FAR 52.245-4 Government-Furnished Property

U.S. Statutes

Buy American Act, American Materials Required for Public Use,

U.S. Code 1976 Title 41, 10a et seq., 3 Mar 33.

Contract Work Hours Standards Act, Work Hours Act of 1962, U.S.

Code 1976 Title 40, 327, P.L. 87-581, 13 Aug 62.

Copeland Act, Kickbacks from Public Works Employees, U.S. Code

1976 Title 18, 874, 25 Jun 48.

Davis-Bacon Act, Rates of Wages for Laborers and Mechanics, U.S.

Code 1976 Title 40, 276a, 3 Mar 31.

Federal Service Labor Management Relations Statute, U.S. Code

1976 Title 7, P.L. 95-454.

Prompt Payment Act, Prompt Payment, U.S. Code 1976 Title 31, 3902

et seq., P.L. 97-177, 12 May 82.

Prompt Payment Act Amendments of 1988, U.S. Code Title 31,

Chapter 39, P.L. 100-496, 17 Oct 88.

Energy and Water Development Appropriations Act, P.L. 100-371, 19

July 1988
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Section II. Forms

The following forms are those found in the text of this document. 

The prescribing directive is in parentheses following the form

title.

Standard Forms

SF 52-B Request for Personnel Action (FPM

 CHAP 296)

SF 135 Records Transmittal and Receipt

 [SF 135A - Continuation]

SF 1169 The U.S. Government Transportation

 Request (AR 55-355)

SF 1411 Contract Pricing Proposal Cover Sheet

 (FAR 15.804-6(B))

SF 1413 Statement and Acknowledgement

 (FAR 22.405-5)

SF 1420 Performance Evaluation - Construction

 Contracts (FAR 36.701(E))

WH Form 347 Payroll (for Contractor's Optional

 Use) (Department of Labor)

Department of Defense Forms

DD Form 250 Material Inspection and Receiving

 Report (DFARS)

DD Form 879 Statement of Compliance (DFARS)

DD Form 1351-2 Travel Voucher or Subvoucher (AR 37-

 106)

DD Form 1354 Transfer and Acceptance of Military

 Real Property (AR 420-17)

DD Form 1507 Work Stoppage Report (DFARS)

DD Form 1565 Request for Authorization of

Additional

 Classification and Rate (DFARS)

DD Form 1567 Labor Standards Interview (AFARS)

Department of the Army Forms

DA Form 1167 Request for Approval of Form

DA Form 2877 Real Property Record (AR 420-17)

DA Form 4697 Department of the Army Report of 

 Survey (AR 700-1-1)
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Corps of Engineers Forms

ENG Form 93 Payment Estimate--Contract Performance

ENG Form 1421-R Performance Evaluation

 (Architect-Engineer) FAR 36.702(c)

ENG Form 2454 Construction Progress Chart

ENG Form 3078 Design or Project Deficiency Report 

 and Recommendations (ER 1110-345- 

 710)

ENG Form 3180 Contractor Payroll Record

ENG Form 4025 Transmittal of Shop Drawings,

Equipment

 Data, Material Samples, or

 Manufacturer's Certificates of

 Compliance for Approval

 (ER 415-1-10)

ENG Form 4026 Routing of Shop Drawings, Equipment

 Data, Material Samples, or

 Manufacturer's Certificates of

 Compliance for Approval

ENG Form 4288 Submittal Register (ER 415-1-10)

ENG Form 4337 Offense/Incident Report (Suppl to AR

 190-13)
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APPENDIX B

PRECONSTRUCTION CONFERENCE GUIDANCE

Section I. Preconstruction Conference Attendance Format

 
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PRECONSTRUCTION CONFERENCE GUIDANCE

Section II. Agenda for Preconstruction Conference

NOTE: Selection of items for discussion should be based on the

job requirements and the experience of the contractor.

Contract No.: ________________________

Project: _____________________________

Contractor: __________________________

Time and Date: _______________________

Place: _______________________________

1. Introduction and Outline of Conference.

Introduction of attendees.

Outline of conference.

Outline of chains of command.

2. Safety.

EM 385-1-1, Safety and Health Requirements Manual.

Accident prevention.

Accident reporting.

Cleaning up.

Activity hazard analysis.

3. Design Briefing (if required).

Briefing on design criteria.

Briefing on critical areas to observe during construction.

4. User Coordination.

5. Labor Relations.

Davis-Bacon Act.

Contract Work Hours Standards Act.

Apprentices.

Payroll and payroll records.

Compliance with Copeland Act requirements.

Withholding of funds.

Contract termination.

Subcontracts.
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6. Defense Priorities and Allocations System. (DPAS)

Priorities, allocations, and allotments.

Buy American Act.

Government-furnished property (when applicable).

Salvage materials and equipment (when applicable).

7. Environmental Protection.

8. Administrative and Technical Requirements.

Contract clauses.

Special clauses.

Using service regulations.

Correspondence procedures.

9. Contractor Organization.

Responsible representative at home office.

Responsible representative at job site.

Quality control personnel.

Authorities of representatives.

Plan of operation.

10. Discussion.

Critical items.

Problem areas.

Questions.
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PRECONSTRUCTION CONFERENCE GUIDANCE

Section III. Preconstruction Conference Sample Minutes

Location:

For:

Contract No.

Contractor:

Address: Zip Code:

Contracting Officer and ACO:

Contracting Officer Representative:

Resident Engineer:

1. Commencement. The conference convened at _______ hours on

_________ at

the _____________________ Resident Office.

2. Introduction. Each of the persons attending the meeting

introduced themselves. ________________ explained the purpose of

the meeting, which is to orient the contractor with respect to

safety, resident office, and other requirements; introduced the

Corps of Engineers, the contractor, and the using service

personnel; and held a general discussion of items of major

importance with respect to the contract. A list of personnel

attending the meeting is attached.

3. Notice to proceed. Notice to proceed was issued on _________. 

The contract amount is __________. The contract time is

__________ calendar days after receiving the notice to proceed. 

Notice to proceed was acknowledged on _______________,

establishing a contract complete date of _______________. Interim

completion dates are as follows:

4. Authorization and organization.

a. Authorization. The authorized representative of the

contracting officer is authorized to administer the contract under

authority delegated by the contracting officer. The administrative

contracting officer (ACO), operating under specific authority

delegated by the contracting officer, may issue modifications under

the changes clause of the contract up to $100,000, or such other

amount as is written in the delegation of authority to the ACO. 

Only the contracting officer and the ACO within the limits of
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6 Dec 90

delegated authority may make changes to the contract. There is no

existing authority with the Corps of Engineers to waive any

contract requirement.

b. Resident office organization. The resident office

organization consists of the following personnel with the following

responsibilities: _________________ is the assistant resident

engineer who acts on behalf of the resident engineer. Project

engineer, _________________, and construction representative,

_________________, have authority to ensure

construction contract compliance by issuing advice when

construction does not comply with contract requirements. 

_________________, office engineer, administers the office

functions; i.e., labor relations, modifications, pay estimates, and

administrative details.

c. Contractor's organization. _________________ is the

project superintendent who is responsible for constructing the

project safely and on time, and for negotiating and signing

modifications to the contract. _________________ is the chief,

quality control, and is responsible for quality control and job

safety in accordance with the contract. Subcontractors, with a

brief description of work to be performed, are as follows:

(1)

(2)

(3)

The normal work shift will be from ______ a.m. until ______ p.m.

______ days a week.

5. Safety. The contracting officer has advised the contractor by

letter that all work under this contract will be done in accordance

with provisions of the Corps of Engineers' Safety and Health

Requirements. The basis for this action is contract clause

"Accident Prevention." This clause further provides that the

contractor will take such additional measures as the contracting

officer may determine to be reasonably necessary for the purpose. 

The contractor is also required by law to comply with the Safety

and Health Regulations for Construction (CFR, Title 29, Part 1926). 

As the contracting officer's representative, it is the resident

engineer's responsibility to review the contractor's written safety

program before starting work. Information and guidelines for 
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6 Dec 90

preparing the proposal were presented at the preaward conference. 

The proposal (has) (has not) been received and (has) (has not) be

reviewed. The proposal submitted (is) (is not) adequate for the

type of work to be performed. The proposal, as approved, will be

the safety program for this

project. Copies of the safety program will be made available:

a. To all supervisors and all quality control personnel.

b. To each subcontractor and its supervisors.

c. On bulletin boards for information and guidance of all

concerned. Under the terms of the "Accident Prevention" clause,

the contractor is responsible for subcontractor compliance with EM

385-1-1. This responsibility is further extended to subcontractor

compliance with the safety program developed for this project. The

contract special clause "Contractor Quality

Control" specifies that each quality control inspector will be

responsible for inspecting the work for compliance with EM 385-1-1

and the contractor's approved safety program, and immediately shall

bring to the attention of the contractor's supervisory personnel

any unsafe working condition and/or instances of noncompliance

noted. The quality control inspector's safety

activities will be documented as required by section 2, Accident

Reporting and Recordkeeping inspected before it is allowed to be

used on the job. All work on electrical lines or equipment will be

done deenergized, unless otherwise authorized by the resident

engineer. The contractor is responsible for preparing a hazard

analysis plan in accordance with the special clause. The purpose

of this preplanning is to provide the contractor and the resident

engineer an opportunity to analyze the major phases of the

construction for hazards peculiar to the particular operation. 

Major safety hazards the resident engineer anticipates during

construction are:

(1)

(2)

(3)

(4)
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6 Dec 90

The contractor's accident prevention preplanning will cover the

above items. Finally, the onsite representatives will be

monitoring the safety activities. Failure to comply with the

safety requirements of the contract will require the contracting

officer to exercise the remedies outlined in subparagraph (d) of

the "Accident Prevention" clause. The minutes of this meeting,

being agreed to and signed, will become a part of the safety

program for this project. A copy of these minutes will be on

file at the job site.

6. Value engineering. VE is an organized effort directed at

analyzing the function of construction, systems, equipment, and

supplies for achieving the required function at the lowest

overall cost consistent with the requirements for performance

reliability and maintainability. VE may be simply defined as the

use of every available means to attain only the required

functions at a minimum of cost. The VE clause of the contract

indicates the method for preparing and processing a VE submittal

as well as the method of computing equitable adjustments in the

contract price. Due to the substantial savings in construction

cost which have resulted from the use of VE, district personnel,

including the district commander, are vitally interested in the

contractor making a concerted effort to find ways of securing the

required functions of the facility at a figure less than present

contract price. An expeditious review will be given to VE

proposals. To expedite this review, it is requested that the

proposals be furnished in a format similar to that furnished in

the VE Newsletter sent to the contractor. This proposal should

be furnished to the resident engineer to review for completeness

and expeditious forwarding to the VE Officer, together with any

known background data and recommendations. Final action

is expeditious in order that maximum cost reduction in the

contract may be obtained.

7. Local regulations. The following items concerning using

service operation were discussed:

a. Identification of workers and vehicles.

b. Requests for outages and street closings.

c. Regulations concerning welding and cutting.

d. Fire regulations.

e. Strike.
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6 Dec 90

f. Haul roads.

g. Traffic control.

h. Storage of materials.

i. Utilities furnished.

j. Salvage property.

k. Government-furnished property.

l. Security requirements.

m. Waste and borrow areas.

n. Permits.

8. DPAS System. All purchase orders issued for military

construction projects should be marked to include a DO-C2

priority rating to ensure as prompt a delivery as possible. It

is the contractor's responsibility to secure deliveries as

required to maintain satisfactory progress on the job. However,

if materials are not delivered as promised, the resident office

can provide expediting assistance.

9. Environmental protection. The resident engineer advised the

contractor that environment protection is a requirement of the

contract specifications and that it would be necessary for him to

comply with all environmental pollution control programs

established by the contract, the city, and the state. The

following items were discussed in detail:

a. Protection of existing tress, shrubs, and grass.

b. Dust control on haul roads, excavation work, and borrow

areas.

c. Keeping toilet facilities clean.

d. Services performed during working hours.

e. Burning materials.
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The contractor was instructed to furnish to the resident office

within 10 days a proposal for implementing the environmental

pollution control program.

10. Progress reporting.

a. Progress schedule (note to RE-delete if N/A). The

contract requires that the contractor submit a schedule showing

how the work will be performed and the sequencing of work. This

schedule shall present a feasible and practicable plan to

accomplish all of the work in accordance with the contract

requirements. The schedule shall show a breakdown of the

principal features of the work by bar graphs, with contract cost

and curve plotted so that the percentage of work scheduled for

completion at any given date may be determined. ENG Form 2454,

Construction Progress Chart, (was) (was not) discussed since the

contractor (was) (was not) familiar with this item. This progress

schedule is also necessary to process partial payment estimates. 

Partial payment estimates cannot be processed until the schedule

is submitted, reviewed, and approved. The cut-off date will be

the ________________ of each month for payment estimates.

b. Network analysis system (note to RE--delete if N/A). The

contract requires the use of the network analysis system for the

surveillance of the contract progress. This network analysis

will indicate the proposed method of conducting the work required

under the contract. A specific discussion was held which advised

the contractor of due dates for preliminary and/or a complete

network analysis system. The specific requirements in the

contract concerning the following items were discussed:

(1) The diagrams shall show the order and interdependence of

activities and the sequence in which the work is to be

accomplished.

(2) Detailed network activities shall include, in addition

to construction activities, the submittal and approval of samples

of materials and shop drawings; procurement of critical materials

and equipment; and fabrication, installation, and testing of

special materials and equipment.
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(3) The contractor shall submit at monthly intervals a

report of the actual construction progress by updating the

mathematical analysis. The reports shall show the activities or

portions of activities completed, and their total value will be

used as a basis for the contractor's periodic request for

payment.

(4) The contractor shall also submit a narrative report with

the updated analysis, which shall include but not be limited to a

description of the problem areas, current and anticipated delays,

their impact, and an explanation of corrective action taken or

proposed.

11. Correspondence. All correspondence pertaining to this

contract should be addressed to the resident engineer, U.S. Army

Corps of Engineers, in original with two copies.

12. Record drawings. It is the responsibility of the

contractor's quality control organization to maintain record

drawings. Three sets of marked-up drawings are required, and one

up-to-date, marked-up set should be on the job site at all times. 

The record marked up prints shall be currently accurate and be

jointly inspected monthly for accuracy and completeness by

the contractor's quality control personnel and the contracting

officer's representative. Two copies of the preliminary record

marked prints shall be furnished to the contracting officer at

the of final inspection for review and approval. At the time of

approval of preliminary record drawings, the contracting officer

will furnish the contractor the tracings of the original

set of contract drawings. Thirty days after receiving the

approved record preliminary drawings and the tracings, the

contractor shall submit to the contracting officer the final

record drawings, the approved preliminary record marked prints,

and all required reproduced items. The specific requirements for

preparing these are listed in the contract specifications.

13. Modifications. Upon receiving the letter requesting a

proposal, the contractor should review the change work, estimate

costs, and furnish a proposal to the contracting officer's

representative as expeditiously as possible. This proposal

should include a complete cost breakdown indicating all labor,

materials, equipment, and subcontract costs for evaluation. This

will be reviewed by the contracting officer's representative, and

a meeting will be held for any negotiations necessary to arrive

at a fair and equitable adjustment in cost and time for the

changed or additional work.
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Modifications will not proceed without written authority or

direct instructions from the contracting officer or the ACO;

otherwise, the contractor assumes the risk of not being

reimbursed for additional expenses Should the using service

desire something different from that required by the contract,

the Corps must issue a change prior to the contractor taking

any action. Should the contractor act without direction from the

Corps, it may be at the contractor's own expense.

14. Quality control program. There is a contract requirement for

the contractor to maintain an adequate inspection system and

perform such inspections to assure that the work conforms to the

contract requirements and to maintain and make available to the

Government adequate records of such inspections. The contract

indicates the number and types of personnel required for the

contractor's quality control organization to perform these

inspections. The contract also includes the types and

description of inspections necessary for each definable item or

segment of work. The contractor is required to give careful

consideration to an inspection plan for accomplishing this

responsibility. This plan is furnished to the Government. The

items which must be covered by this inspection plan are

listed in the contract. For the other items of work which must

be accomplished by the inspection system, there are specific

instructions included in both special and technical clauses of

the contract.

15. Time extensions. Attention was called to the paragraph

entitled "Time Extensions for Unusually Severe Weather" included

in the construction special clauses. This contains the procedure

which will be used to determine the number of days to be included

in allowable time extensions for weather delays. This system

operates most successfully when the contractor submits a letter

at the end of each month during which adverse weather was

encountered and caused a delay of the work.

16. Liquidated damages. Liquidated damages for failure to

complete the work on schedule

are_________________________________________________________

_________________________________________________________________

____________.
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17. Submittals. The contractor shall review and approve

submittals from subcontractors and suppliers and transmit

submittals to the contracting officer as called for in the

specifications. Submittals to the CO shall be either for

"approval" or for "information only" as indicated in the

contract. If approved by the contracting officer, each copy of

the drawings will be identified as approved by being stamped and

dated. The contractor shall make any corrections required by the

contracting officer. If the contractor considers any corrections

indicated on the submittals to constitute a change to the

contract drawings or specifications, notice (as required under

the clause "Changes") must be given to the contracting

officer. ______ sets will be returned to the contractor. 

Approval of the drawings by the contracting officer shall not be

construed as a complete check, but will indicate only that the

general method of construction and detailing is satisfactory. 

Approval of such drawings will not relieve the contractor of the

responsibility for the dimensions and design of adequate

connections, details, and satisfactory construction of all work. 

The contractor shall certify, with each submittal of shop

drawings, that the shop drawings have been reviewed in detail and

that they are correct and in strict conformance with the contract

drawings and specifications, except as otherwise stated. Not

less than _____ days should be allowed for review by the

contracting officer.

18. Payrolls. Timely submittal is required for certified copies

of all the contractor's payrolls, including DD Form 879,

Statement of Compliance, which contains a fringe benefits

statement. The employee must be paid proper wages for the type

of work done, and this may include more than one type of work for

a single worker. The project bulletin board displaying wage

rates and an equal opportunity poster should be installed

according to contract requirements. Employees will be

interviewed periodically by a Government representative to ensure

compliance with applicable wage rates. The contract includes

specific instructions concerning fringe benefits and overtime

provisions. These were discussed fully including a $10.00 per

day penalty for each overtime violation and the withholding of a

sufficient amount to cover violations of the Davis-Bacon Act. 

The remaining information in "Instructions to Contractors on

Contract Labor Requirements," which had been previously furnished

to the contractor, was discussed, including: Apprentices,

information required on payrolls, correction of payrolls,

subcontractor requirements, labor disputes, and equal opportunity

requirements.
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19. Payment estimates. The ending date for work to be included

in the monthly payment estimates shall be as previously stated. 

Allowance will be given for properly stored materials which are

included in invoices submitted by the contractor. Payment for

completed items of work will be based upon amounts agreed to

mutually by the contractor and a representative of the

resident office prior to the pay estimate ending date.

20. Insurance. Evidence shall be furnished indicating compliance

with workmen's compensation, comprehensive general liability, and

automobile liability as required by the contract. Also, the

requirement for notice to the contracting officer prior to

cancellation is discussed.

21. Special Technical Aspects. A discussion was held concerning:

a. Status of concrete mix design.

b. Special protection or processing of aggregate.

c. Testing of cement, admixtures, and curing compound.

d. Concrete protection and curing.

e. Phasing of work.

f. Questions by contractor.

22. Repetitive deficiencies. A discussion was held concerning

repetitive construction deficiencies peculiar to this type of

construction.

23. Warranty of construction. The warranty of construction

clause requires the contractor, subcontractors, manufacturers,

and suppliers to warrant that all work under the contract

conforms to the contract specifications and contains no defect of

workmanship, material, or design for a period of 1 year after

final acceptance. Although the initial period of the warranty is

1 year, this clause requires that any item of work requiring

corrective action is further warranted for an additional year

from the completion of the remedial work. The contractor is

responsible not only for its own work, but for damage to other

property caused by failure of that work.
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24. Forms and guides. The contractor was furnished the following

supply of forms and guides:

a. Instructions to the contractor on contract labor

requirements.

b. Equal opportunity posters.

c. Monthly Exposure Reports.

d. First aid case history.

e. ENG Form 4025, Transmittal of Shop Drawings, Equipment

Data, Material Samples, or Manufacturer's Certifications of

Compliance For Approval.

f. Instructions to the contractor for transmittal of shop

drawings.

g. ENG Form 4288, Submittal Register.

h. DD Form 879, Statement of Compliance.

i. Concrete placement checklist.

j. Concrete strength tests.

k. ENG Form 2454, Construction Progress Chart.

l. Progress reports, military.

m. SF 1413, Statement and Acknowledgement.

n. Quality control guide for testing of materials and

equipment.

____________________________ _____________________________

Contractor U.S. Army Corps of Engineers
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APPENDIX C

SAFETY CHECKLIST

The following items are typically discussed or developed during

the preconstruction safety conference.

1. The "Accident Prevention" clause and the safety provisions of

the contract.

2. Installation requirements affecting the contractor's

operations.

3. Omissions and deficiencies in the contractor's proposed

accident prevention plan reviewed prior to start of work.

4. A company safety policy statement, including provisions for

employee training and safety inspection procedures.

5. The establishment of weekly "tool box" meetings to discuss

safety issues.

6. A review of the activity hazard analysis prior to entering

each major construction phase or activity.

7. Creation of a jobsite layout showing access and haul roads,

areas for material storage and deployment of equipment, placement

of temporary structures, vehicle parking and locations of

underground and overhead utility lines.

8. A list of hazards that are anticipated because of the nature

of the work to be done, the materials to be used, and the

physical features of the project site.

9. Delegation of authority and assignment of specific

responsibilities to the job superintendent and foreman for safety

in day-to-day job plans, for familiarity with the accident

prevention plan and safety regulations applicable to the work,

for inspecting the work and observing that the workers are

performing work as planned, and for promptly correcting unsafe

working conditions or acts.

10. Acceptable housekeeping standards.

11. Provisions for personal protective equipment and procedures

to enforce their usage.

12. Fire prevention plans, equipment, and employee training.
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13. Provisions for first-aid medical facilities and life saving

equipment.

14. Plans for protecting the public and business visitors while

on the job site.

15. Plans for coordinating activities with other contractors and

the using agency so that operations which are incompatible from a

safety standpoint will not be conducted concurrently.

16. Plans for erecting, inspecting, and maintaining handrails,

barricades, nets, scaffolds, ladders, safety lines, platforms,

formwork, shoring, and warning signs.

17. Plans for shoring, sheeting, or sloping excavations

(including lighting and barricading excavations) that cross or

parallel roads and constitute hazards to pedestrian or vehicular

traffic.

18. Proposals for inspecting, testing, and maintaining equipment,

tools, and electrical and pressure systems.

19. Proposals for sanitary facilities and maintenance.

20. Proposals for controlling hazards associated with noise,

dust, ventilation, and unsafe chemicals.

21. Proposals for complying with the requirements for seat belts,

rollover protection, back-up alarms, emergency brakes, and boom

stops.

22. Proposals for controlling explosives, explosive-actuated

tools, blasting operations, lasers, and radioactive material or

equipment containing radioactive material.

23. Proposals for safe clearance procedures.

24. Measures for controlling the movement of traffic and

providing traffic controls (signs, flagperson, lights, etc.) at

hazardous crossings and other locations.

25. Identification of power lines in the vicinity of work where

cranes or equipment will be used.

26. Details of temporary power distribution.

27. Contingency plans for severe weather, floods, or other

natural emergencies.
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APPENDIX D

GLOSSARY

AASHTO American Association of State Highway and

 Transportation Officials

ACO Administrative Contracting Officer

AE Architect-Engineer

AFARS Army Federal Acquisition Regulation Supplement

AMPRS Automated Management Progress Reporting Systems

ASTM American Society of Testing Materials

BCM Business Clearance Memorandum

BCO Biddability, Constructibility, Operability

BOD Beneficial Occupancy Date

CB Construction Bulletin

CERS Construction Evaluation Retrieval System

CFM Contractor-Furnished Material

CFP Contractor-Furnished Property

CO Contracting Officer

COR Contracting Officers Representative

CQC Contractor Quality Control

CWE Current Working Estimate

DEH Director of Engineering and Housing

DFARS Defense Federal Acquisition Regulation Supplement

E∧D Engineering and Design

EEO Equal Employment Opportunity

EFARS Engineer Federal Acquisition Regulation Supplement

FAR Federal Acquisition Regulation

GFE Government-Furnished Equipment

GFP Government-Furnished Property

HQUSACE Headquarters, U.S. Army Corps of Engineers

IDP Individual Development Plan

LCPM Life Cycle Project Management

NAS Network Analysis System

NTP Notice to Proceed

O&M Operation and Maintenance

PROSPECT Proponent Sponsored Engineering Corps Training

QA Quality Assurance

QAP Quality Assurance Personnel

S&A Supervision and Administration

USACE U.S. Army Corps of Engineers

VE Value Engineering