AD-A272 027 -

kmffitute for Water Plesources UI

Nado~ andPolicy O~radoand Procedure

M Antn"nc Prganpilons Study for

Plan of Iniprovenet rjctaOertnad

August 193 1 ~( IWR Report 93-R-11
"The Corps is evolving in a direction contrary to current management theory

and diametrically opposed to the trend in other Federal and non-Federal entities

with similar missions. In today's world of increasingly expensive technologies,

increasing reliance on information systems, and greater interdependence, an

organization which consists of 36 related entities, each of which sets its own

standards on information systems, workload tracking, and organizational structure - while building ever-increasing levels of internal review - will find it very

difficult to become, or remain, cost effective"

- Management Analysis, Inc.

8 September 1992
POLICY AND PROCEDURES OPTIONS STUDY

FOR PROJECT OPERA TION AND MAINTENANCE

NA TIONAL OPERATION AND MAINTENANCE PROGRAM PLAN OF

IMPROVEMENT

for

OPERATIONS, CONSTRUCTION AND READINESS DIVISION

DIRECTORATE OF CIVIL WORKS

U.S. ARMY CORPS OF ENGINEERS

by

INSTITUTE FOR WATER RESOURCES

WATER RESOURCES SUPPORT CENTER

U.S. ARMY CORPS OF ENGINEERS

NT ;'. -

by

Agst 1993 I.WR R

August 1993 IWR Report 93-R,11
DEPARTMENT OF THE ARMY

06:FICCE OF THE &SSISTAhT -FRFTA•V

WASHINGTON. DC 20310-0103

REPLY TO

ATTENTION OF 0 AUG 993

Honorable Leon E. Panetta

Director

U.S. Office of Management and Budget Washington, D. C. 20503

Dear Mr. Panetta:

Approximately two years ago, the Army Corps of

Engineers, under the direction of this office, initiated

a comprehensive study with the objective of assuring that

Federal expenditures for operation and maintenance of

Corps projects provide justified levels of service in the

least cost manner.

A report summarizing the findings and conclusions of

that study is enclosed. The report also describes

actions now underway to fully define and facilitate

implementation of those items which will have the

greatest net beneficial effect on the program. As those

actions are completed, over time, we expect to propose

specific policy and procedure changes, as may be

appropriate.

Sincerely,

G. Edward Dickey

Acting Assistant Secretary of the Army

(Civil Works)

Enclosure

NATIONAL OPERA TIONAND MAINTENANCE PROGRAM PLAN OF IMPROVEMENT- Page li
NA TIONAL OPERA TION AND MAINTENANCE PROGRAM PLAN OF IMPROVEMENT - Page iv
DEPARTMENT OF THE ARMY

U.S. Army Corps of Engineers

WASHINGTON, D.C. 20314-1000

16 AUG 1993 REPLY TO

ATTENTION OF:

CECW-O

MEMORANDUM FOR Acting Assistant Secretary of the Army

(Civil Works)

SUBJECT: Summary of Findings of the Policy and Procedures

Options Study for Project Operations and Maintenance

1. I am providing you with the report which summarizes the

findings and conclusions of the contractor for the subject

study. The report also presents the U.S. Army Corps of

Engineers preliminary response to the findings and describes

follow-up actions now being undertaken by the Corps to

implement improvements to the Civil Works Operation and

Maintenance (O&M) Program.

2. The contractor identified 101 practices where improvements

can be made in the program efficiency. We have completed an

initial review of the contractor's study and have assembled

task groups to fully define and facilitate implementation of

those policy and procedures options which are of the highest

priority and which will have the greatest net beneficial effect

on the O&M Program. Many of the identified improvements will

require extensive Headquarters involvement developing criteria

to standardize budgeting procedures, operating criteria and

organizational structures and functions. Other identified

improvements are more closely associated with the actual

management and operation of projects. These should more

readily be implemented by field offices with minimal

Headquarters guidance.

3. We have already taken some steps to implement the findings

of the O&M Study. The FY 95 budget guidance has been updated

to direct additional emphasis toward constraint in the growth

of operations features, to encourage field offices to use the

study results to implement efficiency improvements and to

clarify use of Special Recreation Use Funds. The development

of an automated maintenance management system recommended by

the contractor has also been initiated. As the task groups

develop options to improve the program in response to the

contractor's findings, we will be making appropriate recommendations to you for implementation.

NATIONAL OPERATION AND MAINTENANCE PROGRAM PLAN OF IMPROVEMENT. Page v
CECW-O

SUBJECT: Summary of Findings of the Policy and Procedures

Options Study for Project Operations and Maintenance

4. Printing of the report for distribution to members of

Congress and Corps field offices will take about six weeks.

The report will be sent to our field offices once copies have

been furnished by you to the Office of Management and Budget

and concerned committees of the Congress.

Encl ARTHUR E. WILLIAMS

Lieutenant General, USA

Commanding

NATIONAL OPERATION AND MAINTENANCE PROGRAM PLAN OF IMPROVEMENT- Page vi
PREFACE

The emergence of operation and maintenance expenditures as the single largest individual

program in the Civil Works budget provided incentive for a comprehensive review of the program.

Financial pressures caused by tight budgets on the one hand, and an ever growing project inventory

on the other, provided further impetus to evaluate the way the O&M business was being conducted.

Towards that end, the Army Corps of Engineers, under the direction of the Assistant Secretary of

the Army for Civil Works {ASA(CW)} has completed a comprehensive study of the Civil Works

Operation and Maintenance (O&M) Program. The objective of the study is to assure that Federal

expenditures for operation and maintenance of Corps projects provide justified levels of service in

the least cost manner. The output of the study is to be policies and procedures (practicable measures)

to achieve that objective.

The initial phase of the study began in June 1991 with the award of a contract to a consulting

firm, Management Analysis Inc. The use of an outside contractor was deemed essential to assuring

an objective as well as a comprehensive review. The Contractor was charged with reviewing dte

O&M program and project operations to identify options for improvement of current procedures.

The Contractor's work, completed in September 1992, was directed by a full time study manager,

assisted by a management group composed of staff members from Corps Headquarters and the

Institute for Water Resources. A group which included selected Directors of Construction-Operations Divisions and representatives of ASA(CW) reviewed the interim and final products of the

Contractor. A steering committee chaired by the Deputy Director of Civil Works and comprised

of Civil Works functional element chiefs, other Headquarters representatives, and the Director,

Water Resources Support Center provided oversight and general direction.

The second phase of the study, review of the Contractor's findings by the Corps and development

of an implementation plan, was directed by Mr. John Elmore, Chief, Operations, Construction and

Readiness Division, Directorate of Civil Works, with support from the Institute for Water Resources. The Directors of Construction-Operations for each Corps division office conducted the

review and developed the initial implementation plan.

This report, prepared by the Institute for Water Resources staff, is a summary of the Contractor's

study and findings and preliminary review by the Corps. The report is presented in two parts. Part

I, Plan of Improvement, presents and describes actions which will be undertaken to improve the

program. Part II, Study Conduct and Findings, documents the reasons for undertaking the study,

how the study was conducted, and presents the study findings and conclusions for those readers

who are interested in following the process that supports the need for the improvement actions. Part

II presents material primarily extracted from the study Contractor's report and the fimdings and

PREFACE - Page vii
conclusions are those of the Contractor. Part I presents the Corps preliminary response to those

findings. That response will not be final until a series of task groups complete their work and the

chief of engineers makes final recommendations to the ASA(CW) for implementation.

PREFACE - Page vii
TABLE OF CONTENTS

PREFA CE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

TABLE OF CONTENTS ................................ ix

LIST OF EXHIBITS .................................. xii

PART I - IMPLEMENTATION PLAN ............................ I

I. DECISION PROCESS ................................. I

II. HIGH PRIORITY PLAN ............................... 2

A. PROGRAMMATIC .............................. 2

B. GENERAL PROJECT MANAGEMENT ................... 6

1. Standardized Organization Structure .................. 7

2. Corps-wide Database ......................... 7

3. Contracting Methods .......................... 7

4. Unaccomplished Maintenance and Repair (UMAR) .......... 8

C. FUNCTIONAL AREA ............................ 8

1. Flood Control Levee Inspection .................... 8

2. Hydropower Plant Remote Control .................. 9

3. Lock Dewatering Schedules ...................... 9

4. Navigation Lock Operations ..................... 10

5. Hydrographic Surveys ........................ 11

6. Boundary Inspection ............. ........... 12

7. Communications Programs ..................... 12

8. Periodic Inspections ......................... 13

III PEER REVIEW ................................... 13

IV. REMAINING ISSUES ............................... 14

A. IMPLEMENTATION SUMMARY .................... 14

B. PROGRAMMATIC ............................. 14

C. GENERAL PROJECT MANAGEMENT .................. 15

D. FUNCTIONAL AREA ..... ...................... 17

1. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2. Recreation .............................. 17

V. IMPLEMENTATION ACTIVITIES ........................ 17

PART II STUDY CONDUCT AND FINDINGS ....................... 39

I. INTRODUCTION .................................. 39

II. OVERVIEW OF THE OPERATION AND MAINTENANCE PROGRAM .... 40

A. GENERAL ..................................... 40

B. EXISTING POLICIES AND PROCEDURES ................... 40

C. PROGRAM INVENTORY ......................... 41

D. ORGANIZATIONAL STRUCTURE .................... 42

TABLE OF CONTENTS - Page ir
E. BUDGET AND PROGRAM EXECUTION PROCESS ........... 47

III. STUDY CONDUCT ................................ 47

A . THEM ES . . . . .. . .. . . .. . . .. . . .. . . . . . . . . . . . . . 52

1. Program Development, Execution, and Monitoring ......... 52

2. Intensive Management ........................ 52

3. Productivity of Existing Program .................. 53

4. Modernization and Maintenance ................... 53

B. INTERVIEWS AND SITE SELECTION .................. 53

1. Interview s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

2. Sample Site Selection ........................ 54

C. THEME POLICY AND PROCEDURES OPTIONS .............. 64

D. POLICY AND PROCEDURES PLANS .................. 64

IV.ASSESSMENT & ANALYSIS OF CURRENT PROGRAM .............. 64

A. PROGRAMMATIC ............................. 65

1. General ................................ 65

2. Operation and Maintenance Program Management Successes . . . 65

3. Operation and Maintenance Program Management Procedures

Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

B. GENERAL PROJECT MANAGEMENT .................. 71

1. Administrative Issues ............... ........ 71

2. M aintenance ............................. 75

C. FUNCTIONAL AREA SPECIFIC ..................... 77

1. Flood Control ............................ 77

2. Hydropower ............................. 79

?'. Recreation . . . .. . . .. .. . .. .. .. . . .. . . . . . . . . 85

4. Navigation .............................. 92

5. Dredging . . . . .. . .. . . .. . . . .. . . . .. . . . . . . . . 96

D. PEER COMPARISON ........................... 100

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT ............. 101

A. HIGH IMPACT PLAN ........................... 101

1. Programmatic ............................ 101

2. General Project Management .................... 103

B. SHORT-TERM PLAN ........................... 104

1. Programmatic ......... ................... 104

2. General Project Management .................... 105

3. Functional Area ........................... 107

C. LONG-TERM PLAN ............................ 110

1. Programmatic ............................ 110

2. General Project Management .................... III

APPENDIX A - REGULATIONS AND POLICIES .................... 117

TA RLE OF CONTENTS - Page x
LIST OF EXHIBITS

Exhibit 1, Sample Corps FY 199 O&M Budget Summary .............. 16

Exhibit 2, Programmatic High Priority Plan Implementation Schedule ............ 19

Exhibit 2A, General Project Management High Priority Plan Implementation Schedule . 20

Exhibit 2B, Functional Area High Priority Plan Implementation Schedule .......... 21

Exhibit 3, Operation and Maintenance Expenditures, FY 81-90

Actual Dollars .............................................. 43

Exhibit 4, Operation and Maintenance Expenditures, FY 81-90

FY 1990 Dollars ............................................. 44

Exhibit 5. 1 IS Army Corps of Engineers Organization Chart ................... 45

Exhibit 5A, US Army Corps of Engineers Reorganizat:on Structure .............. 46

Exhibit 6. Hierarchy of Management ................................... 48

Exhibit 7, Budget Formulation ....... ............................... 49

Exhibit 8, Budget Execution and Monitoring ............................. 51

Exhibit 9, Matrix of Site Visit Inter-Theme Relationships ..................... 55

Exhibit 9A, Matrix of Non-Corps Site Visit Inter-Theme Relationships ............ 60

TABLES

Table 1, Implementation Summary, Programmatic .......................... 22

Table 1A, Implementation Summary, General Project Management ............... 25

Table I B, Implementation Summary, Functional Area ........................ 29

TABLE OF CONTENTS - Page xi
TABLE OF CONTENTS - Page xli
IMPLEEMENTA TION %PLA N

NATIONAL OPERA TION AND MAINTENANCE PROGRAM

PLAN OF IMPROVEMENT

PART I

IMPLEMENTA TION PLAN

I. DECISION PROCESS

After initial review and acceptance of the work performed by the contractor, the Corps began a

process to consider study conclusions. There were four study themes - Program Development,

Execution, and Monitoring; Intensive Management; Productivity of Existing Program; and Modernization and Maintenance. The Contractor identified 106 separate issues for the four study themes

and presented options under each issue. Due to overlap and redundancy, that number was

consolidated to 101 separate issues for further consideration. An implementation group composed

of Directors of Division Construction-Operations organizations was assembled to analyze the 101

integrated issues and identify the corresponding options which could have a beneficial impact on

the manner in which the Corps' operation and maintenance program is carried out. The most

appropriate options in the collective opinion of the group were proposed for implementation.

Although all issues developed by the Contractor are presented in this report (Part II, Section \ ), the

implementation group developed a high priority plan (HPP) which they believed contained the

options which were most practical and had the greatest potential for efficiency improvement. A

summary of the group's conclusions is presented in Tables 1, 1A, and lB. All of the remaining

issues, not included in the HPP were generally considered to fall into one of three categories: 1)

recommendations that were expected to have a relatively lesser impact on the cost of doing business

and/or involved implementation difficulties, 2) recommendations that were limited in scope and

which could be implemented on a project-by-project basis (the FY95 budget guidance encourages

the districts to employ project specific recommendations that would produce operational efficiencies

such that may be freed for the purpose of reducing maintenance backlogs), and 3) issues that were

inherent to other on-going Corps initiatives such as the recreation study. A complete review of the

rationale used by the group in developing the HPP is presented in Part I, Sections II, III and IV.

The HPP prepared by the Directors of Divisions Construction-Operations organizations was

then reviewed by Corps Headquarters (HQUSACE) functional elements having an interest in the

O&M program. Subsequently, the HPP was modified and four committees composed of Headquarters and field personnel were instituted for the purpose of planning formal adoption of the best

options. The committees have been tasked to analyze all of the issues identified by the Contractor

and, recognizing that n any of the issues were in fact symptomatic of larger overarching organizational needs, consider complementary improvements, not necessarily identified by the Contractor,

L DECISION PROCESS - Page I
IMPLEMENTATION PLAN

but nonetheless potentially capable of contributing to a more cost-effective program. The implementation activities of the four committees are described in Part I, Section V.

II. HIGH PRIORITY PLAN

The 101 issues were grouped into three categories: 1) PROGRAMMATIC, pertaining to budget

preparation, execution, reporting and monitoring; 2) GENERAL PROJECT MANAGEMENT,

involving overall or Corps-wide organizational implications; and 3) FUNCTIONAL AREA, linking

the delive-v of specific services or agency outputs to measures that will improve productivity. The

groups recommendations for the 101 issues are summarized in a Table in Part I, Section IV. Of the

62 issues which the group believes had the most merit for implementation, 43 were adjudged to be

of the highest priority. The High Priority Plan for each of the three categories is described in the

following paragraphs.

A. PROGRAMMATIC

The Contractor identified 21 proposed actions in the programmatic category. Of that total,

options were selected that would address 13 issues. A discussion of proposed revisions to current

practices is presented in the following paragraphs. Actions are underway to complete the necessary

revisions this fiscal year for incorporation into the Annual Budget guidance for Fiscal Year (FY)

1996.

The group agreed that the O&M budget process could be streamlined and simplified because

the value added by much of the current effort is questionable. Several actions were identified in

this study which could improve management of the O&M program through changes in budget

development, execution, reporting, and monitoring. Implemented together, these measures will

more equitably allocate resources on a Corps-wide basis and reduce the annual budget submittal

documentation for the relatively fixed requirements of projects.

The concept of these changes is to rebuild the levels I and 2 baseline requirements for each

project in accordance with new, more stringent definitions of baseline effort reflected in a revised

funding level matrix. Once definitive baseline requirements are developed Corps-wide, subsequent

years' budget submittals for baseline requirements could be limited to a single baseline work

package with an adjustment for inflation for each project. This could reduce by about 75% the over

20,000 work items contained in the overall Corps O&M budget submittal. Any new baseline

funding demands over $25,000 that result from new programs or policies would be accommodated

by listing each as a separate line item in project budget submittal for the first three years of the

program.

Ii. HIGH PRIORITY PLAN - Page 2
IMPLEMENTA TION PLAN

These changes can be implemented through appropriate revisions to the Annual Budget

Engineering Circular (EC) 11 -2-xxx. Implementation should begin with a work group effort in FY

93 to develop new funding level descriptions and a new funding level matrix. The new procedure

of incorporating all baseline funding requirements into a single work package for each project or

feature and the requirement to separately list any new baseline funding demands over $25,000 will

be effective for the FY 96 budget submittal. These changes in the budget process will greatly reduce

(after the first cycle of rebuilding the baseline funding requirements) the volume of documentation

that accompanies a budget submittal. The result should be a higher quality budget product by

making it possible to concentrate more on the dynamic non-baseline O&M work packages both at

district level during budget preparation and at division and headquarters review.

Another budget related reform that could benefit program development and execution concerns

the out-year budget process. The potential exists to modify this process to provide additional utility

as a mid-range planning tool for periodic and non-recurring O&M work.

The current out-year budget process includes a 10-year O&M budget projection prepared each

year as part of the annual budget preparation cycle. This 10-year projection is of limited usefulness

because out-year programs are submitted by project with no further breakdown beyond the total

amount for each project. Additionally, specific periodic or non-recurring needs are not formally

planned for beyond the Budget Year.

The O&M program, however, consists of both fixed or baseline expenditures and variable

(periodic, non-recurring) expenditures. The current process for preparing the out-year programs

does not provide optimal mid-range (e.g., 5-year) planning input for this variable portion of the

O&M program.

To address the need for a mid-range planning tool, the Corps should prepare a detailed 5-year

budget projection for periodic and non-recurring work items above a certain cost threshold. Funding

constrainits for the out-years' budget project would be assigned at division level in order to place

some discipline in the process. However, the degree of constraint could vary by year, being less in

the out-years of the 5-year projections with the final year (Budget Year +4) being unconstrained.

The unconstrained year could reflect the level of Unaccomplished Maintenance and Repair (UMAR)

identified as described in Section 1B5. Using this concept gives dual purpose to the 5-year budget

projection; as a mid-range planning tool and a means of documenting and managing the backlog of

maintenance at projects. Provision for a 5-year budget projection should be made through

modification to the Automated Budgeting System (ABS) to include a 5-year data requirement and

revisions to the FY 96 Budget EC.

11. HIGH PRIORITY PLAN - Page 3
IMPLEMENTATION PLAN

The limited capability of Corps' automated financial systems is universally recognized. The

two most prominent automated systems associated with O&M programming in use today are ABS

and the Corps of Engineers Management Information System (COEMIS). There are serious

shortcomings in turnaround time for financial reports, and with interface between the ABS and

COEMIS systems. These and other related issues will supposedly be addressed by the Corps of

Engineers Financial Management System (CEFMS), the successor to COEMIS that will be

incrementally deployed Corps-wide over the next three years. Therefore, no recommendations for

global changes in the ABS/COEMIS systems are now appropriate.

However, there are some relatively minor things that can be done with ABS that will help until

more comprehensive solutions are available. Improvements should be made to facilitate automated

entry of data at the project level. While some "home grown" systems have been developed for this

purpose, a standard PC-based format is needed that would standardize the budget development

process at the lowest level. This would eliminate the entire step currently required to manually enter

these submittals into the ABS for consolidation at the district level. Data entry errors from this extra

step will be eliminated, and there will be a reduction in time required to prepare the project budget

submittals. A method to automate data entry into the ABS project level is now being developed as

part of the Improvement of Operations Management Techniques (IOMT) research and development

program. It is currently under test in the Portland District. This system should be perfected and

fielded Corps-wide as soon as possible.

A further minor change is needed in the ABS to improve management oversight. Currently,

ABS does not provide for a separate breakout of Supervisory and Administrative (S&A) Feature

Cost Codes (FCC's) (FCC 619 for operations and 635 for maintenance), nor for the Engineering

and Design (E&D) FCC (FCC 634) in the budget submittals. Rather, costs associated with these

FCC's are imbedded in the budgeted amounts for the remaining operation and maintenance FCC's.

These i 2C's are tracked separately, however, for actual expenditures. As a result, it is difficult to

make comparisons between budgeted amounts and expenditures by FCC without first backing out

these S&A atd E&D FCC's from the original budgeted amounts. To facilitate tracking, the S&A

and E&D FCC's should be listed separately in the ABS budget submission. This will highlight

costs associated with these items in the budget submittal rather than their being obscured in a

multitude of work packages. Implementation of this item should be effected in FY 93 by revision

to the Budget EC for FY 95 and appropriate changes to the ABS.

In the same implementation time frame and same manner, a larger field should be provided for

the justification of work items in the ABS budget development system. The present field size does

not allow for an adequate description of the purpose and need for many work items in the budget

submittal, especially for special maintenance need-.

IU. HIGH PRIORITY PLAN - Page 4
IMPLEMENTA TION PLAN

In the area of performance measures, among the parameters tracked at the HQUSACE Command

Management Review are expenditure and obligation goals for each Corps' division and district.

Currently, the O&M program is required to meet a 94% expenditure goal and a 97% obligation

goal. The Contractor believes that these goals drive decisions toward inefficient allocation of

resources. The group finds these goals are important in achieving high utilization of all resources

available. Both the HQUSACE Operations Division and Programs Division monitor these standards, however, both apply these goals to a different funding base. In preparing the Command

Management Review, Programs Division applies these standards to the "basic schedule," which

reflects start of year funding expectations. Operations Division, however, applies these standards

to the "current schedule," which reflects changes during the year. In the interest of consistency in

applying the performance measures for expenditure and obligations, all elements should use the

current schedule as the funding base. The current schedule is a realistic indication of the funds a

district or division had available for expenditure during the year and thus is the better measure of

program execution.

In December 1992 Programs Division, HQUSACE, issued guidance to use the current schedule

against which to measure program execution for meeting expenditure and obligation goals.

Some problems have been observed in accurate recording and tracking of O&M expenditures.

Part of the problem is that the FCC definitions provided in ER 37-2-10 are not adequate. Some

activities do not fit under any of the existing definitions, or the definitions may not be clear.

Provision should be made for specific additional sub-FCCs and accounting element definitions.

Implementation of this item should be deferred until CEFMS is fielded Corps-wide, which is

expected to occur by FY 96.

Some inaccuracies in recording expenditures stem from activities of multi-functional personnel--those who perform work under various FCCs on a regular basis. These personnel sometimes

find it difficult to record this time appropriately. Overall, the Contractor reported that instances of

non-compliance with Corps' guidance regarding the proper recording of expenditures were numerous. Additional emphasis is needed on the imnportance of accurately recording expenditures. HQ

should issue guidance reinforcing the existing 1-hown rule. Also, Divisions should monitor District

adherence to the 1-hour rule during Command/Staff visits. A recently completed Cost of Doing

Business Report by the Engineer Inspector General also recommended that HQUSACE issue clear

guidance on the use of the 1-hour rule. It is expected that this guidance will be issued.

The original BY budget submission, or President's budget, is prepared almost two years in

advance of the actual Budget Year. Durirt, the course of these interim two years, conditions and

priorities may change at the project, district and division levels. The Corps provides for two adjusted

II. HIGH PRIORITY PLAN - Page 5
IMPLEMENTATION -AN

submittals to be prepared during this interim period in order to incorporate these changes into the

O&M budget request. First, an adjusted BY budget is prepared following the original President's

Budget submission. Then, immediately prior to the start of the budget year, a work allowance

request is prepared which is the basis for the actual funding allocated to a project for execution

during the budget year.

While the original BY President's Budget submittal undergoes extensive scrutiny for compliance with funding priorities, etc., the two subsequent adjustments traditionally are subject to much

less stringent review. The result, in some instances, has been that work items that fell below the

funding line in the original BY submittal were reinstated without challenge in one of the adjustment

cycles. This problem was addressed by the more stringent reprogramming guidance regarding

unbudgeted work contained in the FY 92 and FY 93 Annual O&M Work Allowance Guidance

Memos. This guidance, along with Division's closer scrutiny of District's compliance, is expected

to alleviate the problem of lower priority work finding its way into the execution program.

The Corps lacks a comprehensive recapitalization program to provide for sinking funds for

major modifications and improvements to existing structures. Existing recapitalization methodologies consist of the few navigation rehabilitation projects funded out of the Construction General

appropriation and cost shared with the Inland Waterway Trust Fund, and participation by the Power

Marketing Agencies in rehabilitation of hydropower structures. Adoption of a sinking fund concept

for major maintenance and rehabilitation of Corps-owned structures is desirable. Funding could

come from external sources (project beneficiaries) and/or the O&M appropriation. Implementation

should emanate from HQUSACE with necessary coordination with the ASA(CW), Congress, users,

and power management agencies. Legislation will be required.

The group noted considerable volatility of funding requirements for Corps dredging projects,

with budgeted amounts sometimes exceeding expenditures by a significant amount. Closer correlation between budgeted amounts and expenditures on dredging projects would contribute to more

efficient allocation decisions for the use of Corps' resources. Consistent, Corps-wide guidance

regarding how to determine the amount to budget for dredging projects is needed. HQ should

convene a group to prepare budget guidance for dredging projects and include the guidance in the

dredging regulation. Guidance available for use in preparing the FY 96 budget should be the goal.

B. GENERAL PROJECT MANAGEMENT

Of the 29 issues categorized by the Contractor as "general project management," it was

determined that implementation of options in four general areas was of high priority. These areas,

addressing 9 specific issues in this category, are discussed in the following paragraphs.

Ii. HIGH PRIORITY PLAN - Page 6
IMPLEMENTATION PLAN

I. Standardized Organization Structure

Districts utilize different Operations organizational structures to manage the Civil Works

mission. There are also organizational structures and reporting hierarchies unique to individual

projects. These varying organizational structures lead to ineffective staffing and communications,

ill defined responsibilities and attendant loss of efficiency. The group believes that a standardized

Corps district/project function statcment and organization structure should be developed and

implemented. The cost of developing the regulations and reorganizing, will be more than offset by

improving communications, providing efficient staffing and establishing clear command, control

and execution responsibilities. The regulatc3ns should be issued in FY 94 to be initiated in FY 95

with full implementation by the end of FY 97.

2. Corps-wide Database

The lack of an adequate standard Corps-wide database limits the Corps ability to effectively

manage and accurately measure the performance of the O&M program. A typical project maintains

up to 300 forms for reporting to district, division and headquarters. Each management level reviews

and analyzes data to monitor activities and make managerial decisions. There is some automation;

however, most work is performed manually at the project level and automated at the district. Data

needs are developed functionally with limited cross function review forjoint use of data. The impact

of the current practice is: the same data collected in several different ways results in inefficiencies;

requests are difficult to fill in a timely manner; and software incompatibility is inefficient.

The group found that data essential to proper management of the program should be determined

and a standard Corps-wide database to process that data be developed. The resources required to

develop the database and resolve compatibility and linkage problems are far outweighed by the

advantages of such a system. The advantages of standardization and consistency will reduce

resource requirements and increase management and execution efficiency. The implementation

schedule should be as follows:

FY 93 - FY 94 - Determine what data is essential to effectively manage the program.

FY 95 - FY 96 - Develop and test standardized system.

FY 97 - Implement program.

3. Contracting Methods

Each individual district (and sometimes project) uses various types of contracting methods for

O&M work. These variations cause inefficiencies. Additional costs are incurred and considerable

time is required due to current contractual procedures, advertisement and award processes. Standardized contracts should be developed with specific reference to indefinite quantity repair and

I1. HIGH PRIORITY PLAN - Page 7
IMPLEMENTA TION PLAN

multiple-sik contracts. Standardization of contracts and execution will reduce use of resources,

improve the budgeting process and enhance scheduling. It is expected that significant cost savings

and reduction in procurement time can be achieved. The new contract guidance should be developed

for implementation in FY 95.

4. Unaccomplished Maintenance and Repair (UMAR)

Currently, there is no standard Corps-wide system for identification and tracking of UMAR.

Although UMAR has been defined and the budget EC provides for an annual update, results are

inconsistent and incomplete. Many projects have an informal system of recording UMAR but the

information is not reviewed and reported above the project level. As a result of the current practice,

the total needs of the O&M program, both currently and historically, are not identified. Because

the total universe of UMAR is not identified, any comparison or prioritization of needs would be

flawed. Consequently, critical maintenance or repair could be deferred and funds expended

inefficiently.

An annual project UMAR reporting procedure should be established. This procedure would

effect the identification, amount and tracking of UMAR. Reporting would be accomplished

utilizing consistent guidelines for developing the required information. The resultant report would

provide information necessary to include in the earlier described 5-year budget projection, make

cost-effective funding allocations, better manage the program, and to present a defensible position

regarding the magnitude of the UMAR component of the O&M program. The implementation

effort should be initiated immediately for completion by the beginning of FY 94.

C. FUNCTIONAL AREA

Following are discussions of elements from the functional area issues that were selected to

warrant high priority attention. These general areas would impact 21 of the 51 issues identified by

the Contractor.

1. Flood Control Levee Inspection

The Contractor suggested that a rating system be developed for the condition of Corps-built,

locally operated flood protection projects with dams, dikes and levees to reduce the cost of

inspections. Flood control projects with e^ccllent histories of maintenance would only be inspected

by Corps' staff biennially. Those with fair to poor records of local sponsor maintenance would

receive a lower rating and would continue to be inspected annually. Further, engineers at the nearest

Corps' projects could perform annual and biennial inspections of completed works rather than

district staff.

If. HIGH PRIORITY PLAN - Page 8
IMPLEMENTATION PLAN

These recommendations should be implemented with minor changes. Structures should be

inspected after major floods regardless of maintenance histories. Also, periods between inspections

could be even longer than biennially, if no flooding had occurred since the last inspection, and if

previous inspections of maintenance had resulted in high ratings.

This change of policy would give the districts suitable guidance for the inspection of Corps-built,

local flood protection projects and still allow a reasonable method to reduce costs with minimal

added risk. Travel and inspection costs would also be reduced by having engineers from local

Corps' projects perform routine inspections. The responsibility for assuring that maintenance is

accomplished would be shifted more to the local sponsors, as it should be, while reducing

coordination effort with Corps' inspectors.

Rewriting of the regulation to include this recommendation could be-accomplished this fiscal

year.

2. Hydropower Plant Remote Control

There is potential for reducing staffing and operational costs of Corps' hydropower plants by

converting them, "where practical and cost-effective," to remote control. Some operational functions could then be consolidated into a regional control center. Currently, there is no Corps-wide

policy or guidance addressing the criteria that should be considered when evaluating the risks, costs

and benefits of remote controlled plants.

A policy should be written so that districts can systematically and uniformly determine the

appropriate action when planning the future status of power plants. Thus, the districts would have

institutional support for decisions should they decide to implement, or not to implement, the remote

control alternatives.

While there are obvious operational cost savings for remoting power plants, there are several

disadvantages that could influence a decision. The cost of plant modifications, the function of the

plant other than for power production, emergency response times, and climatological differences

are some of the factors which must be evaluated as a part of a risk and cost/benefit analysis. Any

policy established should focus on an evaluation methodology only. The decision to study and

implement a plan for remote control should be at the district level.

3. Lock Dewatering Schedules

The Contractor suggested that consistency between districts and cost-effectiveness of major

maintenance activities could be enhanced if all navigation locks were dewatered on a regular,

multi-year schedule.

ii. HIGH PRIORITY PLAN- Page 9
IMPLEMENTATION PLAN

The group believed that the dewatering of locks should be accomplished on a regular schedule,

and that HQUSACE should develop a policy to establish dewatering schedules for maintenance and

inspection of navigation locks at regular intervals. The policy should address the consideration of

customer input, equitable and scheduled funding, and staffing.

The cost of implementation would involve the development of the policy and studics to

determine the appropriate schedules for each waterway. The benefits would be derived from the

customer's ability to plan around lock closures, better utilization of Corps staffing, the time and

effort saved through routine planning of lock dewatering, and from the routine scheduling expenditures. The development of the policy and the schedules should be accomplished by the end of

FY 94.

4. Navigation Lock Operations

The Contractor made recommendations on navigation lock procedures in three separate areas,

which should be consolidated into a single regulation.

The first action is to develop a uniform policy so that vessel crews would be responsible for

securing vessels in the lock chamber. Although guidance on this issue already exists, it should be

reenforced and exceptions made only when lock design or safety considerations make it impractical

for a vessel crew to secure its own vessel.

The second area of consideration is in staffing. Staffing could be reduced when a vessel crew

is given responsibility for securing its vessel. The Contractor also identified that some Corps locks

employ full time, 24-hour a day staffs, even though the locks are seasonally closed. Alternatives

for assuring the security of the locks should be explored. The Contractor estimated considerable

savings if alarms and fences were used for security instead of full time staff. The group believes

that the estimated savings make this a worthwhile area in which to issue guidance so that the districts

will be encouraged to consider alternatives.

The third area that should be addressed in a navigation lock policy is equipment. Various

equipment that could be installed in these facilities has the potential to reduce costs and/or increase

safety. Besides the alarms and fences discussed above, closed circuit TV cou!d be used by lock

operators to observe vessel positioning, prevent or respond to accidents or attempted theft of Corps

equipment, and monitor the functioning of lock filling and emptying mechanisms. These also may

allow staffing to be reduced.

The group believes these ideas should be incorporated into a regulation on navigation locks.

The districts would then have guidance to review their processes with the goal of providing uniform

operations throughout the Corps at the lowest costs and staffing levels.

1I. HIGH PRIORITY PLAN - Page 10
IMPLEMENTATION PLAN

Implementation of this issue would have to be accomplished over several years. Defining a

policy could be done in FY 93. Reducing staffing by attrition and budgeting of equipment changes

would not be fully implemented until FY 98.

5. Hydrographic Surveys

Hydrographic surveys required in conjunction with project maintenance and dredging activities

were identified by the consultant as an area of potential management improvement. Critical in

surveys is the combination of cost effectiveness, accuracy/quality and timeliness. Current practices,

along with the longer term effects of having "professionalized" the Operations management staff,

result in the need for and the opportunity to revise hydrographic survey policies and practices.

The primary change proposed is to clearly identify that the Operations Division is responsible

for the hydrographic survey function. Clearly, this is not a unilateral decision since it will involve

Contracting and Engineering elements. Equally clearly, the timeliness, coordination and quality of

hydrographic surveys is most singularly the appropriate responsibility of the Operations Division.

Having crews furnished from one organizational element, equipment from another source and

contract administration the responsibility of yet another element decreases the responsiveness to

dynamic, real world requirements. Focusing the responsibility within Operations would be consistent with the "Project Management" concept and be cost effective.

Explicitly, this proposal includes consideration of such"in-house" equipment and crews as are

available; the normal "contract administration" in the field; the decisions relating to need and

frequency; and survey methodology. In those cases where the Operations requirements are to be

met by "contract" survey, Operations would be responsible for the scope of work definition,

funding and field administration, while working with Engineering on selection and contract award

and administration.

Further opportunities may be available: to upgrade field equipment and related communications

techniques; to provide rapid "read-out" or "plotting"; to redirect dredging effort; conclude work;

and complete and release expensive dredging plant more promptly.

Finally, a uniform "cost accounting procedure" needs to be established and enforced based on

the 607.11 FCC. This will allow improved data for cost analysis and estimating purposes.

Implementation of the above will require rewriting/updating of several Engineering Regulations

(ERs) and should be able to be accomplished within one calendar year from adoption of this

proposal.

I!. HIGH PRIORITY PLAN - Page ))
IMPLEMENTA TION PLAN

6. Boundary Inspection

The requirements in ER 1130-2-400 to check all boundary lines every two years and to report

missing monuments annually should be modified. Corps lands abut private, commercial, or local

government owned or leased land as well as the lands of other Federal agencies. The Contractor

recommended that boundary lines with other Federal agencies be re-monumented every four years

and that cost-sharing boundary surveys with other agencies should be explored.

The group agreed with the Contractor's evaluation and suggested even further modification.

Normally, there are no problems associated with encroachments when other governmental agencies

own adjacent land, or when terrain, vegetation, or other natural barriers or man-made structures

allow boundaries to be easily identified. In these cases, requiring re-monumentation biennially may

not be cost effective nor the best usage of staff. Flexibility should be written into the ER to allow

local managers more discretion in deciding when and how boundary surveys are accomplished ankd

emphasize the need to concentrate on areas where non-governmental land owners are adjacent to

our lands. The frequency of mandatory re-monumentation needs to be evaluated and a more sensible

approach taken in sharing responsibilities and costs with other agencies. This proposal can be

implemented this FY by revising the ER, as appropriate. In developing this proposal the need to

properly maintain existing lines should be emphasized.

7. Communications Programs

Each District (sometimes each Project Office) individually develops interpretive programs.

Many are very well done and could have wide, multiple application. The option proposed was the

development of "generic" programs by HQUSACE for use throughout the Corps. The group found

that the "generic" programs would be relatively expensive to develop and less popular than

field-generated programs. Accordingly, existing examples of excellence should be shared. Further,

this concept should be expanded beyond the interpretive program to include all Operations programs

from hydropower through recreation to water safety. A mechanism that allows the identification,

cataloging, and visibility of field-generated programs on a nationwide basis is needed.

The proposal is that a contractor develop a system for getting an abstract of existent programs

in the field, and establish an electronic "catalogue" to be available through Corps Mail. The

"catalogue" would initially include: title; abstract; point of contact at origin ofprogram; availability;

format; and cost information. This procedure would allow a much broader exchange, reduce

redundancy and promote excellence. Eentually, an "issues" communication in conjunction with

field "programs" could be utilized to improve communications throughout our organization.

Implementation would span about two years.

1! HIGH PRIORITY PLAN - Page 12
IMPLEMENTA TION PL4N

8. Periodic Inspections

Current regulations require pciodic inspections of Corps' projects on a regular five-year basis.

The purpose of the inspection is to assure structural integrity and identify any other problems that

may threaten the safety of the project. The district's Engineering Division is responsible for

assembling the group of experts who will inspect the project. The cost of the inspection is charged

to the O&M account for the project.

There is concern that, in some instances, inspections have been conducted on a more frequent

basis and the size of the inspection team has been too I rge. These actions increase the O&M cost

of the project and outweigh the concomitant benefit. Distrcts should assure that the inspection

period conforms with current guidance and closely monitor the size and composition of the

inspection teams.

III PEER REVIEW

The group, in analyzing the Contractor's findings, recognized that inconsistent and incorrect

application of some policies and procedures was costly and confusing. More centralized control

would be one option to address this problem. The group believed that a better approach would be

to correct the problem where and when it exists rather than exercising greater central control.

That approach would establish a HQUSACE led "Peer Review Team" to review, on a periodic

basis, field processes and practices. The team would follow the model of the established Military

Construction's Design Construction Evaluation (DCE) teams. The team, led by HQUSACE staff,

would be composed primarily of field staff, whose findings would be reported to the District

Commander. The team would perform significant on-site training as well as bring major items to

the attention of the facility cOmmand. The size of the team and the "review period" should be

closely monitored to assure that the process is not excessively costly. This process would provide

an opportunity to the headquarters' staff to assure that the full range of USACE developed policies

were being impLnented, and facilitate feedback from the field staff. The dialogue would provide

"value added" in both directions (field-headquarters). Guidance to implement peer review is

currently being developed by HQUSACE. Although the concept as described above remains intact,

details such as team composition and procedures may differ.

II PEER REVIEW- Page 13
IMPLEMENTATION PLAN

IV. REMAINING ISSUES

A. IMPLEMENTATION SUMMARY

As each issue was considered for implementation, a summary report was developed for each

item. Tables 1, I A, and 1 B, Implementation Summary, are a matrix of information extracted from

each of the individual reports. In Table 1, 1A, and lB, the "Implementation" column refers to the

decision to implement the Contractor's Proposed Option or Action Item. In some cases the Corps

has proposed a different option to solve the problem identified by the Contractor. The "Implementation Priority" column refers to the Corps' alternative Implementation Proposal. Those individual

reports will be utilized as the basis for further implementation decisions, concerning need and

timing, as the impact of the HPP is audited. Many of the remaining actions, while not directly

considered for immediate implementation, will be impacted to some degree by the HPP. The

Group's recommendations are summarized below.

Ya ND D[fkx Toul

Programmatic 13 8 -- 21

General Project Management 23 3 3 29

Functional Area 26 14 11 51

Total 62 25 14 101

All of the problems, identified by the Contractor which resulted in the 101 Action Items were

recognized to exist by the Corps. However, many of the 25 "no" issues, most notably in the

functional areas, are of more limited scope and are issues for which existing guidance is being

interpreted differently or not being followed by some segments of the organization. These types of

issues can be resolved by focusing the attention of the entire organization on these problem areas

by several media including HQ issued letters, regional workshops, checklists for command inspections, peer reviews, and performance measures. Examples of remaining issues for each category

are discussed below:

B. PROGRAMMATIC

The programmatic HPP, while not directly including, at this time, some of the High Impact

selected options by the Contractor, will nevertheless impact on those issues. The Contractor

suggests that the dredging functions be budgeted and managed separately from other O&M

functions. There are also selected options to establish contingency funds and manage all funding

decisions for work items at HQ. The group believed changing the method by which the budget is

prepared, issuing new guidance for development of the dredging budget, and continuing the current

practice of managing periodic and non-recurring work items will accomplish the objective of the

IV. REMAINING ISSUES - Page 14
IMPLEMENTATION PLAN

study. Implementation of the HPP should effect a closer correlation between budgets and expenditures and result in an equitable distribution of funds based on national priorities, without inflicting

wide swings on district workload. As indicated above, the new budget and execution process will

be monitored to determine if further modifications will be necessary to achieve the study objective.

As part of the High Impact Plan, the Contractor proposed new summary exhibits for exposition

of the O&M program in budget requests. The exhibits would be intended to present the program

consistent with the new proposed way of developing the budget and simplify and clarify the

composition of the O&M, General program. This issue resulted from concerns expressed by those

who review the Corps' budget request. The group did not include this issue as part of the HPP, but

deferred the decision to HQ to develop appropriate presentations once the HPP is implemented.

Exhibit I is an example of a summary developed by the Contractor (the numbers in the exhibit are

for illustrative purposes only). This exhibit could be developed by project, district, division,

function and/or FCC, as appropriate.

C. GENERAL PROJECT MANAGEMENT

The HPP implementation proposals in the "general project management" area are those that

the group believed would contribute the most toward organization standardization, operational

consistency and enhanced management capability. The HPP includes all of the Contractor's High

Impact Plan proposals, with one exception, and incorporates other short-and-long term proposals.

The exception, development of a Corps-wide automated maintenance management systems, while

not included in the HPP, was adjudged to have merit for long-term implementation. After further

consideration of the need for a standardized automated maintenance management system, actions

have been taken to initiate the development of such a system. This system, which would allow for

comparisons of workload, work flow, and productivity, would be complementary to implementation of standardized organization functions and structure and compatible automated data collection

and processing systems. Implementation is scheduled for FY 95. An example of a short-term

proposal which the group believed should be implemented is the delegation to area/resident/project-managers new procurement authority limits. This is the type of proposal for which sufficient

authority exists and can be brought to the attention of those districts, for implementation as practical,

through one of the media described above.

IV. REMAINING ISSUES - Page I1
IMPLEMENTA TION PLAN

BUDGET EXPENDITURES OPERATION MAINTENANCE TOTAL

BASELINE REQUIREMENTS

Hired Labor $325 $115 $440

Contracts 100 85 185

Materials and Supplies 40 30 70

Dredging 375 375

All Other 25 5 30

TOTAL BASELIINE REQUIREMENTS $490 $610 $1100

VARIABLE REQUIREMENTS

Major Rehabilitation $75 $75

Periodic Maintenance 125 125

Major Maintenance 40 40

Equipment Replacement 5 45 50

Dredging 75 75

Special Studies 2 3 5

New Programs 23 2 25

All Other 5 5

TOTAL VARIABLE REQUIREMENTS $35 $365 $400

TOTAL REQUIREMENTS $525 $975 $1500

EXHIBIT 1 - SAMPLE CORPS FY 199 O&M BUDGET SUMMARY EXHIBIT

"BASELINE-VARIABLE P-RESENTATION (millions)

IV. REMAINING ISSUES - Page 16
IMPLEMENTATION PLAN

D. FUNCTIONAL AREA

1. General

Those issues, evaluated by the Contractor as having high impact in the functional areas, but noz

included in the HPP, were either items to be deferred for decision depending upon the outcome of

ongoing studies or of limited regional concerns. Five of the "no" decisions were in the hydrographic

survey function. The group believed an overall review of the policies and practices for that function

is of high priority; therefore, all issues associated with the hydrographic function will be revisited

in that review. Eleven issues were deferred for decision until completion of ongoing studies in

dredging and recreation functions.

2. Recreation

Seven of the deferrals were in the recreation functional areas, all of which the group adjudged

to have merit for implementation, but which should be consistent with the outcome of the recreation

study. An extensive and in-depth review of the Corps recreation program has been accomplished.

The ASA(CW) on 15 January 1993, directed the Corps to execute revisions of appropriate

regulations in accordance with an implementation plan presented on 8 January 1993. This plan

established a mechanism to review and develop recreation policy, goals and objectives to be

communicated through-out the Corps. Those recreation issues identified in this study and deferred

for decision will be reviewed within that context. Decisions concerning two of the issues are

provided below.

a. Volunteer. A user manual will be completed and published to include guidance on

identifying potential duties that could be performed; recruitment, training, and supervision for these

labor sources; and case studies of successful programs.

b. Nationwide Reservation System. A task force will be established that will provide leadership

and guidance for Corps participation in an interagency nationwide reservation system.

V. IMPLEMENTATION ACTIVITIES

In reviewing the Contractor's findings, it was recognized that the many individual issues were

symptomatic of larger overarching organizational needs. Therefore, Program Improvement Goals

were adopted to provide an umbrella under which implementation activities could proceed to

achieve those goals as listed below.

"* Budget Development and Execution Improvement

"• Standardized Organizational Structure and Function

V IMPLEMENTA TIONACTIVITIES- Page 17
IMPLEMENTATION PLAN

"* Standardized Operating Procedures

"* Performance Measurement Improvement and Standardized Data Collection and Databases

Four Program Improvement Committees have been established to correspond with each of the

above goals. These Committees consist primarily of experienced O&M staff from all Corps

organization levels and supplemented with appropriate staff from other Corps elements. Staff from

the office of the Assistant Secretary of the Army (OASA(CW)) will also be participating in the work

of the Committees and in the decision process. Each Committee will be responsible for developing

and producing guidance to meet its respective improvement goal. Appropriate review and approval

mechanisms by HQUSACE and OASA(CW) have been established. To accomplish that objective,

each Comnrittee will consider all of the Contractor's findings and other relevant input. The

Committee on Standardized Operating Procedures will consider and develop guidance for all

operating procedures for which standard criteria to be promulgated from HQUSACE is appropriate.

To address the concerns discussed in Part I, Section II (page 6), a subgroup has been formed to

focus on dredging projects. This subgroup, composed of members of the four committees, will

consider improvement of the dredging program through development of guidance for budgeting,

execution, monitoring and performance within the context of the overall O&M program.

The implementation schedule for each Committee's product was developed within the context

of stated goals herein and is depicted on Exhibits 2, 2A and 2B, Implementation Schedule, and in

Tables 1, 1 A, and lB. It will be emphasized in development of the Plan of Improvement that should

implementation of items result in a reduction in staff, that reduction will be accomplished through

attrition.

Exhibits 2, 2A, and 2B are a schematic diagram depicting the implementation schedule for the

HPP by category. A detailed plan for implementing each of the HPP items is being developed.

Those items which were not included in the HPP will be reviewed and implemented, as appropriate,

as the impact of the HPP is assessed. It should be noted that should implementation of items require

a reduction in staff, that reduction will be accomplished through attrition.

The goal of implementing %e pl.3n of Improvement is to achieve standardization and consistency, for the 36 related entities,, m information systems, operating functions and organization

structure -- while reducing levels of internal review -- to remain cost effective. The ultimate

objective remains that of the study, to assure that Federal expenditures for operation and maintenance of Corps projects provide justified levels of service in the least cost manner.

V. IMPLEMENTA TIONACTIVITIES - Page 18
IMpLEMENTA TION PLAN

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V. IMPLEMENTA TIONACTIVI TIES - Page 35
NATIONAL OPERA TION AND MAINTENANCE PROGRAM

PLAN OF IMPROVEMENT

PART I

STUD Y CONDUCT AND FINDINGS

I. INTRODUCTION

The purpose of Part II of this report is tw document the Policy and Procedures options study for

project Operation and Maintenance (O&M study) as follows:

"* Overview of the operation and maintenance program.

"* Conduct of the study.

"* Assessment of current operation and maintenance practices.

"* Opportunities for improvement.

The Operation and Maintenance (O&M) function is the largest component of the U.S. Army

Corps of Engineers Civil Works Program. The O&M function accounts for about one-half of the

Civil Works expenditures and supports about 55 percent of the total workforce. The approximately

1400 projects in the inventory are geographically dispersed throughout the United States, represent

diverse, often competing, functions and serve many different customers.

The program, like all other Federal programs, has come face-to-face with the exigencies of

deficit reduction and budgeting limitations. The growth of project inventory, increasing age of

projects and customer demand for greater levels of service have placed increasing pressures on

constrained resources. Additional factors which further complicate operation and maintenance of

projects include: differing maintenance management styles of the various divisions/districts/projects; difficulty of prioritizing and funding project requirements two to two-and-a-half years before

actual expenditure; difficulty in predicting, from Headquarters level, the ultimate impacts of directed

program cuts on remote field organizations; and, the need to accommodate unfunded requirements

which can arise due to factors beyond Corps' control. To continue to provide the most efficient and

effective stewardship of the Nation's water resources infrastructure, the Corps' leadership recognized that a comprehensive review of current practices was imperative. This comprehensive study

would identify areas in which improvements could be made to current operating and management

practices to structure a program that would best utilize available resources.

The Corps, Office of the Assistant Secretary of the Army (Civil Works) and the Office of

Management and Budget reached a consensus that a comprehensive study was necessary and timely

and should investigate new methods of financing and executing the program. As the Administration

I. INTRODUCTION- Page 39
STUDY CONDUCT AND FINDINGS

sought approval and funding from Congress for the study, concerns arose regarding some of the

proposed investigations. Accordingly, to proceed, it was agreed that divestiture of all or part of a

Corps' project, additional contracting out of work performed by Corps' employees, and initiatives

that would lead to changes in current procedures for pricing hydropower at Corps' projects, would

not be investigated as a part of this study. The study was initiated by awarding a contract in June

1991 to Management Analysis, Inc., a McLean, Va. firm. The contract was completed in September

1992.

II. OVERVIEW OF THE OPERATION AND MAINTENANCE PROGRAM

A. GENERAL

It is the responsibility of the Corps to develop, control, maintain, and conserve the Nation's

water resources in accordance with the laws and policies established by Congress and the Administration. Civil Works activities include planning, designing, constructing and operating and

maintaining water resources projects. Such works provide for management and improvement of

rivers, harbors, and waterways, for navigation, flood control, multiple-use purposes and shore

protection projects or programs. Responsibility for the operations, maintenance, repair and replacement program of Civil Works projects has been lodged in the Operations, Construction and

Readiness Division of the Civil Works Directorate.

B. EXISTING POLICIES AND PROCEDURES

Laws and policies which provide the authority for operation and maintenance activities of Corps'

projects are embodied in regulations which provide guidance on the methods and requirements of

the O&M program. This section discusses the existing regulations and policies which govern O&M

program activities of operations, maintenance, repair, replacement, and rehabilitation. Operations

consists of the daily tasks which allow the project to meet its functional mission in the most efficient

possible manner. Maintenance is the performance of scheduled tasks to minimize the possibility

of malfunction or breakdown of equipment. Repair is the maintenance required upon failure of

equipment. Replacement is the removal of existing equipment and subsequent new installation.

Rehabilitation is the refurbishment of equipment or facilities which requires repair or replacement

of major components.

The Corps operates as a decentralized organization, placing as much responsibility and authority

at the district level as possible. Operation and maintenance guidance is developed at the Headquarters level and distributed to the field for implementation. Due to the wide variation in project

purpose, age, size, etc., many of the policies and regulations are written to provide the field with as

11 OVERVIEW OF THE OPERA TIONAND MAINTENANCE PROGRAM -Page 40
STUD Y COADL CT A ND FINDINGS

much flexibility as possible. Divisions/districts/projects then implement the guidance based on

interpretation of how the generalized guidance applies to their specific situation(s).

Formal authorities and directives may be contained in Public Laws, Federal Rý gulations,

Department of the Army Regulations, or Corps of Engineers Regulatiuns.

Examples of Public Laws applicable to the Corps' O&M program include Water Resources

Development Acts, Water Project Recreation Act (PL 89-72), and the National Dam Safety Act (PL

92-367). For further descriptions of public laws applicable to the Corps' ';&M program, see

Chapter 26 of the Digest of Water Resources Policies, EP 1165-2-1.

Federal regulations are those which apply to all departments of the Federal Government,

iicluding the Department of Defense and the Corps of Engineers,, and are established by the

Executive departments and agencies of the Federal Government. The Code of Federal Regulations

(CFR) Section 33, Navigation and Navigable Waters, is an example of these documents.

Department of Army regulations (AR) govern the activities of Army components, including the

Corps of Engineers. Army regulations apply to all functions of the Arm) except those which have

been modified by engineering regulations. Applicable Army regulations include AR 405-70,

Utilization of Real Estate and AR 335-15, Management Information Control System.

Corps of Engineers regulations include engineering circuirs (EC), engineering manuals (EM),

engineering pamphlets (EP), engineering regulations (ER), official memorandwiub (OM), and

engineering technical letters (TL). Other forms of guidance used by the Corps are directives and

policy guidance letters. Engineering regulations present formal guidance for the performance of

work. Engineering circulars are temporary documents which explain the policies addressed in the

ERs. Engineering pamphlets are permanent documents which provide examples and discussions

of the guidance found in the regulations. Engineering manuals are documents which present official

design criteria for the Corps. Official memorandums and engineering technical letters are informal

documents written to assist in further understanding of a policy or to inform personnel of a change

to a document. Applicable examples of these documents include: ER 37-1-24, Operating Budgets;

EC 11-2-157, Annual Program and Budget Request for Civil Works Activities; EM 1110-2-2703,

Lock Gates and Operating Equipment; and EP 25-1-1, Index of Publications. A list of regulatiopc

and policies applicable to the O&M function is inzluded as Appendix 1.

C. PROGRAM INVENTORY

The Corps' project inventory includes approximately 230 locks and dams, 500 reservoirs, 76

hydroelectric power plants, 800 commercial harbors, and 2500 separate recreation areas at over 460

projects. This inventory has an estimated replacement value of more than $120 billion. The a':erage

II. OVERVIEW OF THE OPERA TION AND MAINTENANCE PROGRAM- Page 41
STUDY CONDUCT AND FINDINGS

age of structures is 34 years and 23 percent of Corps' facilities are over 50 years old. In addition

to the aging of the existing inventory, growth in total project load continues as new projects are

completed. The budget for the O&M program has grown over the past decade at less than the rate

of inflation, leading to a decline in real dollars available per site. A summary of expenditures for

operation and maintenance for fiscal years (FY) 1981 through 1990, in actual dollars, is displayed

in Exhibit 3. A similar display, in FY 90 dollars, is provided as Exhibit 4.

Typically, about 800 projects are included in the O&M budget request for any one fiscal year.

A "project", for budgeting purposes, is defined using a Civil Works accounting (CWIS) number

and may represent more than one individual structure or functional unit, i.e., several contiguous

locks and dams on the same waterway may be combined for budgeting purposes into a single

"project". Some projects which are included in the budget may not require expenditures in the

fiscal year for which the budget is prepared and some projects which are not included in the budget

may require expenditures. For example, in FY 89, 1,022 projects were included in the budget and/or

required expenditures. Of that total, 789 were budgeted for, and 994 received expenditures.

The relative size of the project inventory can be inferred from the following display of FY 89

budget/expenditure data.

FY 89 Percent of Number of

O&M Requirement Total Expendiure Projects

Less than $2 million 25 828

$2 million - $10 million 49 169

Greater than $10 million 26 25

Of the projects in the "less than $2 million" category, 280 required expenditures less than

$100,000.

D. ORGANIZATIONAL STRUCTURE

The U.S. Army Corps of Engineers is one of 12 major Army commands operating within the

continental United States. The agency is made up of divisions which report directly to the

Headquarters in Washington, D.C. Divisions are further divided into districts. Division and district

boundaries usually follow watershed boundaries. There are 11 divisions within the Corps, 10 of

which are included in this study. (The Pacific Ocean Division, which has a minimal civil works

mission, was specifically excluded from the scope of this study.) Within the 10 divisions, there are

36 districts. Exhibit 5 shows an organization chart for the Corps of Engineers. Exhibit 5A depicts

the Corps organization structure as realigned in a recently established reorganization plan.

!!. OVERVIEW OF THE OPERA TION AND MAINTENANCE PROGRAM- Page 42
STUDY CONDUCT AND FINDINGS

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"I here is no standard organizational structure within divisions and districts. l'ach is organized

ilno Iunctional division(s, fir example, Operations Division, LIngincering Division, Construction

D)ivision, and Planning I)ivision. The (Construction and Operations Divisions are combined into a

('onstruclion-Opcrations l)ivision in some districts, but not in others. The same is true for Planning

and Engineering D)ivisions, and other functional divisions as well. The division and district

organizational structures arc based on lactors such as the division or district's mission, the types of

projects operated and maintained, the level of workload activity, and the staffing available. Also,

depending on the types of projects managed, and the location of the projects, there may be Area

Offices or Project Oflices within a functional district organization. Lxhibit 6 shows the typical

interrelationships of these ollfices.

Currently, about 27,000 full time equivalent ('TF,) civilian positions are employed to carry out

the civil works missions. Ofthat total, approximately 14,500 support the operation and maintenance

activities covered by this study.

E. BUI);ET AND PROGRAM EXECUTION PROCESS

The O&M budget is developed in accordance with guidance contained in the Annual Program

and Budget Engineering Circular. A graphical representation of the budget process is presented in

lixhibit 7. The budget formulation is a two-year process that begins in January of each year when

each district begins developing the O&M funding request and work packages for execution two

years beyond the current budge, year. (e.g., formulation of the FY 1993 funding request began in

January 1991.) The program execution process is displayed in Exhibit 8.

!11. STUDY CONDUCT

"* The objective of the study was to assure that Federal expenditures for O&M of Corps' projects

provide justified levels of service in the least-cost manner.

"* The output is practicable measures -- the policies and procedures -- that can be applied to

need the objective.

This study was structured so that the contractor would:

C Examine program-wide policies and procedures.

] Select representative projects and districts.

" Conduct on-site investigations and interviews.

"0 Identify possible improvements based on the sampling process.

Il. STUDY CONDUCT- Page 47
STUDY CONDUCTAND FINDINGS

I HEADQUARTERS I II

1 E DIVISION :

I DISTRICT

SFUNCTIONAL DIVISIO

F AREA OFFICE*

*The Area Office structure is not utilized by all Corps Districts

Exhibit 6

HIERARCHY OF MANAGEMENT

IL STUDY CONDUCT- Page 48
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"o Propose improvement options for each theme.

"o Combine theme options into program improvement plans.

This process is described in the following narrative.

A. THEMES

The investigations were conducted from four broad perspectives or themes. These themes

represent the principal categories of work that must be addressed to attain more cost-effective

management and execution of the program. The study was defined by the four themes both to

discriminate among those features which should be addressed and to achieve manageability for the

study. These themes are defined below.

1. Program Development, Execution, and Monitoring

The objective of this theme is to improve management of the O&M program through changes

in budget development, execution, reporting, and monitoring. To accomplish this, the Contractor

developed methodologies to identify and evaluate:

"* Procedural options for the linkage of budget, Congressional appropriation, and execution;

and

"* Alternative frameworks for budget formulation and execution in order to provide for the

allocation of limited resources to the most productive uses.

All O&M functions representing 100 percent of the O&M budget were investigated for this

theme.

2. Intensive Management

The objective of the Intensive Management theme is to determine efficiencies that may accrue

from improved allocation of resources (organizational structure, manpower, and funding) and

application of new and innovative techniques, and to formulate new policies and procedures to

convey these efficiencies to the project level. In the Intensive Management theme, the Contractor

analyzed policies and procedures for selected O&M cost features to determine efficiencies that may

be realized through:

"* More efficient allocation of O&M resources, including the identification of alternative

organizational structures and more effective prioritization of manpower and funding;

" Reexamination of existing policies and procedures, and the implementation of alternative

policies; and

"* Development and application of new and innovative techniques.

III. STUDY CONDUCT- Page 52
STUDY CONDUCTAND FINDINGS

Slightly more than one-half of the O&M functions representing 87 percent of the budget were

examined in this theme.

3. Productivity of Existing Program

The objective of the Productivity theme is to compare Corps Civil Works districts and divisions

to determine where apparent differences in productivity exist, and to analyze these differences. The

Contractor used two different approaches to perform this analysis:

"* A comparison of the cost categories used by the districts and divisions (e.g., overhead, direct

labor, etc.) and their relative levels of expenditure; and

"* An analysis of output measures based on individual district or project performance.

Forty percent of the O&M functions representing 77 percent of the budget were considered for

this theme.

4. Modernization and Maintenance

The objective of the Modernization and Maintenance theme is to analyze policies and procedures

for selected O&M cost features to determine if there are opportunities for reductions in resources

through modest (i.e., less than $500,000) investments in modernization. The Contractor has:

"* Evaluated the current condition status of selected Corps projects;

"• Identified/developed appropriate, cost-effective strategies for determining when repair, rehabilitation, or modernization is justified; and

"• Identified modernization opportunities in current Corps' operating procedures and/or maintenance programs.

About one-third of the functions representing 27 percent of the O&M budget were included in

this theme.

B. INTERVIEWS AND SITE SELECTION

1. Interviews

Initial meetings with the Corps' Management Review Team began shortly after the contract was

awarded. The Contractor interviewed key personnel at Corps Headquarters to become familiar with

current operating policies and procedures, and to identify the areas, or topics, of concern in the

Corps today. The Contractor also took this opportunity to become familiar with other activities,

such as other on-going studies, that could potentially impact this study. The interviews at

Headquarters were crucial to the site selection process and development of the field interview

strategies.

IlI. STUDY CONDUCT- Page 53
STUDY CONDUCT AND FINDINGS

The Study Team began project site visits in November 1991. Separate, but somewhat overlapping, sets of projects and district sites were selected for the four themes, based upon the analytical

requirements for each. A total of 41 Corps' sites, including project, district, and division offices,

were visited. Twenty public and private non-Corps' sites in three countries were visited in

conjunction with the Study. A list of the Corps' and non-Corps' projects and district and division

offices visited is provided in Exhibits 9 and 9A. For facilities similar to the Corps', the Contractor

attempted to discover efficient and effective procedures which, if implemented by the Corps, would

improve project operation and maintenance.

In total, for the Programs theme, the Contractor visited 29 Corps' division and district sites. In

addition, program-related interviews were performed in conjunction with the non-Corps visits for

the other three themes. Twenty-five Corps' project and district sites and 21 non-Corps' organizations were visited for the Intensive Management theme. For the Productivity theme, 16 Corps'

district offices and 20 non-Corps organizations were visited, and for the Modernization and

Maintenance theme, 12 Corps' projects and 15 non-Corps' sites were visited. A specific agenda

was developed for each interview, but interviewees were encouraged to discuss additional pertinent

issues as well. Throughout the study, every attempt was made to coordinate the data collection

effort for the themes in order to conduct the study as efficiently as possible and to minimize the

impact on the O&M community. For the Corps' sites, the Operations Divisions at the district and

division offices served as the primary point of contact during each site visit. However, personnel

from other organizations, such as Engineering Division, Construction Division, and Real Estate

Division, were also contacted as necessary.

The Contractor received excellent cooperation at every Corps' site visited. Realizing the need

for this study, and the study's potential for improving project operation and maintenance, Corps'

employees were eager to share their knowledge and experience. The issues and options identified

throughout the report are a direct result of this willingness to openly discuss new ideas, and the

desire to make the Corps of Engineers a more effective organization. Cooperation from the

non-Corps' organizations was also enthusiastic in that these organizations were excited about the

opportunity to participate in a study of the Corps' O&M program. Additionally, those interviewed

were interested in learnfihg as much as possible about the Corps' program in anticipation of

identifying ways to improve their own organizations.

2. Sample Site Selection

a. Initial Project Selection

The Study Team examined 10 years of budgetary and expenditure data, and from this identified

a population of 1022 projects. This listing, while as comprehensive as possible within the given

III. STUDY CONDUCT - Page 54
SVTUDYC0OVDL 'CTAND FINDINGS

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STUDY CONDUCT AND FINDINGS

time constraints, is admittedly still not all-inclusive. Some Corps' dredging projects require

maintenance dredging on 20 or even 30-year cycles, and as such will be excluded by virtue of using

"only" a 10-year period for analysis.

The next requirement of the selection process was to establish an initial list of 75 projects

considered to be representative of the full spectrum of Corps' projects, and which would be used

as a sample of the overall population. The site visit sample selection process for each of the four

study themes was to make use of this sample population as pragmatically as possible. To ensure

objectivity in the project screening process and to ensure that the sample reflected all study

considerations and constraints, the Contractor developed a quantitative screening methodology,

based upon linear programming, to generate valid, reproducible results.

In developing the methodology to screen to 75 projects for more detailed review, a number of

factors, including the following were considered:

"* At least 75 projects were selected;

"* All 29 Feature Cost Codes presented were included;

"* All districts and divisions, excluding the Pacific Ocean Division (POD), were represented,

including at least three projects from each division, and at least one project from each district;

"* All project purposes were considered;

"* A representative sample of changes between budget development and program execution

were included; and

"* Projects undergoing major rehabilitation were selected.

To satisfy all of the above constraints it was necessary to select a sample of 81 projects for

further analysis; the requirement could not be met by a sample size of only 75.

b. Programs Theme Site Selection

The Contractor developed questionnaires to collect program-related information at the division,

district, and project level for the 81 selected projects. Input from division-, district- and project-level

personnel was required to gain a thorough understanding of the budget preparation process.

c. Intensive Management Theme Site Selection

The 81 projects earlier selected were used as a starting point from which to select the 25 project

sites for the Intensive Management theme. Specific selection criteria for key project features were

developed to guidc the further site selection process for Intensive Management. The Study Team

determined that 22 of the 25 sites from the list of 81 projects were appropriate for inclusion in the

III STUDY CONDUCT- Page 62
STUDY CONDUCT AND FINDINGS

Intensive Management Theme, in that they met the identified sample requirements. The remaining

3 sites were selected from the greater population of Corps' projects in order to visit specific projects

with the key features, such as technical, age, purpose, regional, and physical characteristics, of

overriding interest to the theme.

d. Productivity Theme Site Selection

Unlike the samples required for the other three themes, the productivity sample was districtbased rather than project-based. Two separate sets of site visits were conducted. In the first, two

districts with high direct labor percentages and two districts with low direct labor percentages, as

well as two districts with high overhead costs and two with low overhead costs were analyzed. To

choose the four districts based on direct labor percentages, the Contractor considered the following

criteria:

"* Selection of districts with consistently low direct labor percentages.

"* Selection of two districts dissimilar enough to yield unique results from each. For example,

the study avoided selection of two districts that have primarily coastal dredging missions.

"* Selection of districts large enough so that valid conclusions can be drawn and applied to other

districts.

The criteria used for selecting districts based on overhead were the same as above, with one

additional consideration: avoiding selection of a district previously selected for analysis based on

direct labor percentages. Based upon the characteristics of the cost distributions, once they were

developed, the sample size was increased by one to include a mid-level overhead district. For the

second portion of the Productivity analysis, various statistical and econometric techniques were

employed to specify functional relationships between costs and outputs and to formulate models

which would enable district comparisons. Cost to output measures with the greatest statistical rigor

were then chosen for each Feature Cost Code. The cost per output data for each district was

compared to identify the five districts with the highest overall cost per output across functions and

the five districts with the lowest overall cost per output. After examination of the ten selected

districts, an eleventh district was added to ensure that both high and low cost to output relationships

were captured within each functional area.

e. Modernization and Maintenance Theme Site Selection

The initial pool of 81 sample projects was reviewed for possible use as sample projects for the

Modernization and Maintenance theme. All of the relevant FCCs could be effectively reviewed by

visiting sites with the following project features: locks, dams, multipurpose power, recreation, water

control, and pumping plants. Specific criteria used in selecting the 12 Corps' projects for the

IlL STUDY CONDUCT- Page 63
SIVDY CONDUCTAND FINDINGS

Modernization and Maintenance Theme are similar to those utilized for the Intensive Management

Theme.

C. THEME POLICY AND PROCEDURES OPTIONS

Based on assessment of current policies and procedures, interviews, and site visits to projects

and district offices, issues for further consideration were developed. These issues reflected

deviations from current policies, inconsistent application of policy, and opportunities to improve

the program through development of new policies and procedures. The issues were then evaluated

to determine which were project-specific anomalies and which were pervasive enough to reflect

program-wide attention.

Policy and procedures options for improvement of the program were developed for each theme.

Each option was evaluated to determine its advantages, disadvantages, costs and ultimate contribution toward meeting the objective of this study. The options were ranked for net value in resolving

the issue and presented in a theme report.

D. POLICY AND PROCEDURES PLANS

Options for each theme were integrated to eliminate overlap and duplication among themes.

Options were then evaluated according to the potential for the greatest impact on improvement of

the O&M program and timing of implementation. Options adjudged to have the greatest potential

were then grouped into three plans in accordance with the following parameters.

" High Impact: These issues show promise of resulting in very large savings and are generally

multi-functional. They will have a significant impact on the Corps' O&M program by

improving the overall management of the program, decreasing the cost of providing services,

or improving the level of service.

" Short Term: Short term issues include those actions which Headquarters or other Corps'

management can take, in a relatively short amount of time (less than one year), and which

can also realize improvements in the Corps' O&M program.

" Long Term: Long term issues are those which will take longer than one year to implement

and/or to realize significant improvements in the Corps' program.

IV. ASSESSMENT & ANALYSIS OF CURRENT PROGRAM

This chapter presents an assessment and analysis of the Corps' O&M program and the issues

which the Contractor feels should be addressed by the Corps in its effort to accomplish the study

objective. The summary is the integrated result of the analysis conducted under the four study

IV. ASSESSMENT & ANAL YSIS OF CURRENT PROGRAM - Page 64
STUD Y (N)NDUCT AND FINDINGS

themes, i.e., Program Development, Execution and Monitoring (PG); Intensive Management (IM);

Productivity (PR) of Existing Program; and Modernization and Maintenance (MM). The analysis

is presented in the following format:

"* Programmatic,

"* General Project Management,

"* Functional Area Specific.

A. PROGRAMMATIC

1. General

Management of the Operation and Maintenance program, annually, from budget development

to program execution two years hence, is a highly complicated process which must balance a wide

array of diverse, and sometimes conflicting, factors. Such factors include providing for the proper

balance between the degree of spending flexibility necessary for field offices to adapt their program

to the actual conditions encountered, versus the necessary degree of central control; changing

program priorities that occur over time; the diversity of project type, age, geographic distribution,

and contracting environment within the Corps' inventory of completed projects; the increasing

importance of environmental considerations; and, ensuring the efficient allocation of limited

resources for the most productive uses within the framework of these other factors. An additional

factor complicating O&M management is the long lead time between budget formulation and actual

execution. This lengthy period between budget development and program execution increases the

possibility of changes to requirements and, therefore, decreases the accuracy of the budget estimate.

2. Operation and Maintenance Program Management Successes

The current O&M budget formulation process has several successful aspects with respect to

developing the complex Corps' O&M budget. The budget development process employs a

bottom-up approach. The project managers or staff (e.g., Engineering, Planning, Real Estate, etc.)

at the various district offices who are responsible for executing the O&M program have direct input

into the formulation of the budget. This approach allows budget submittals for individual projects,

organizational elements, and districts, within HQ guidelines, that reflect the unique mix of factors

and conditions that are applicable to each particular situation.

Another successful aspect of the current process is the funding level matrix concept. The matrix

categorizes individual work items and work packages (a group of related work items) by Feature

Cost Account Code (FCC). The matrix also defines funding levels corresponding to the priority of

operation and maintenance work packages. The purpose of this matrix is to specify in which funding

IV. ASSESSMENT & ANALYSIS OF CURRENT PROGRAM -Page 65
STUDY CONDUCT AND FINDINGS

level each work package should be placed for a budget submission so that, on a Corps-wide basis,

similar work packages are competing for funds at the same level of priority. Also, these work

packages are sorted by budget category, which are tied to FCCs, so that functional experts can review

budget submittals to determine if the proposed funding levels provide a feasible program from a

technical point of view.

A tool which has evolved over several years, and which facilitates the prioritization and

consolidation of the budget submittals at the district, division, and HQ levels, is the Automated

Budget System (ABS). The ABS greatly simplifies the consolidation and prioritization process of

budget submission. Use of the ABS, and such features as machine sorting, reduces the amount of

time required to consolidate and prioritize the highly complex O&M budget. The ABS also is the

tool which allows for the budget submittal to be divided into functional areas for review by the

various functional experts. There was virtually unanimous praise of the ABS at the 28 Corps'

districts visited for the Program Theme.

The current management process has several successful features regarding the execution of the

O&M program. One such policy is that certain funds are withheld at the HQ level to allow for

distribution on a Corps-wide priority basis. For example, Tabulation II (Tab II) items, which include

new major contracts greater than $100,000, are released upon bid opening, as well as all funds

related tc Corps-owned hopper dredges. If these Tab II items encounter delays or unanticipated

savings, HQ reprograms these funds to other projects that experience unanticipated budget overruns,

or to other high-priority unfunded items. It is clear that the withholding process has increased the

flexibility of the O&M program as a whole. Similarly, districts have the ability to reprogram funds

between projects within certain limits to react to actual conditions encountered when executing the

program. This ability to react to actual conditions, which were unforeseen when preparing the

budget, is key to the successful execution of the Corps O&M mission.

To monitor the O&M program, periodic financial reports, such as the monthly 2101 Schedule

of Obligations and Expenditures and the quarterly Command Management Reviews (CMRs), track

expenditures and obligations to allocation, thereby providing a means to manage the execution of

the O&M program and to ensure that appropriated amounts are rot exceeded.

3. Operation and Maintenance Program Management Procedures Issues

The Contractor has identified various issues related to the management of the Corps' O&M

program. The remainder of this subsection discusses some of the issues identified regarding budget

development, program execution, and program monitoring.

Currently, the Corps manages the O&M appropriation as one large pool of money with one

general set of policies and procedures applied across all FCCs. The Contractor has identified certain

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S IUD Y CONDUCT AND FINDINGS

major unique components of the program, however, which may he better managed individually,

thereby improving the management as a whole. These program components include:

"• non-dredging program baseline requirements,

"* non-dredging periodic and/or non-recurring (variable) requirements,

"* dredging requirements, and

"* dredging/emergency reprogramming requirements.

The Contractor developed procedures options for each of these program components that would

al low the Corps to: a) take advantage of the unique characteristics of each specific component, such

as the stability of the baseline requirements; or, b) develop procedures options to better manage the

requirements of individual program components, such as the volatility of dredging requirements.

a. Baseline Requirements

Although the program as a whole is dynamic, certain large portions of the O&M requirement

are recurring and predictable. For example, at a Corps-owned lock, the cost of lock operators'

salaries and benefits, and the cost of routine and preventive maintenance (as opposed to major,

one-time repairs), will change little from year to year. At most non-dredging projects, these

recurring costs constitute the bulk of project expenditures; in fact, the largest individual segment of

the program, in terms of dollars, are these "baseline requirements". Baseline requirements include

only the relatively fixed, non-discretionary costs of operating and maintaining projects.

As defined, these baseline requirements constitute the largest and most stable portion of the

O&M program and are estimated to be between 70 and 80 percent of the total non-dredging O&M

program. Two overall problems with respect to baseline funding packages currently prevent the

Corps from taking full advantage of what should be a highly predictable program component. First,

projects and districts have varying interpretations of what constitutes baseline work items. Second,

similar projects from different regions have significantly different levels of baseline staffing and

other resources that have developed over time.

The Contractor suggests that the baseline requirements for each non-dredging Corps O&M

project be reviewed to ensure that only true baseline items, and no discretionary items, are included

in these baseline submissions to determine a consistent and equitable baseline for all non-dredging

O&M projects. Once established, these baseline requirements can be programmed with a high

degree of confidence and require a minimum of review effoat for each budget submission.

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b. Pedodic and Non-Recurring Work Items

In addition to the baseline requirements, the O&M program consistsof requirements for periodic

and non-nowrring work items. These variable requirements are primarily comprised of a dynamic

mix of periodic or non-recurring maintenance work packages, such as major maintenance to tainter

gates, caviao damage repairs at a hydropower plant, and equipment replacement. The current

programming practice assumes that the number, dollar amount, and priority of projects' needs for

periodic or mon-recurring work packages merits constant funding within each district based upon

Corps-wkk priority from year to year, i.e., each district has a fixed requirement for variable work

items. However, on a Corps-wide basis, the priority of need for these variable work items changes

from year to year. As priorities change, the amount of funds allocated to each district for variable

requirements should also change to maximize the priority of funded variable work items and the

efficiency of the allocation of resources on a Corps-wide basis.

c. lkrdging Requirements

Dredging requirements represent another unique component of the O&M program. Dredging

projects an often subject to acts of nature, such as floods and droughts, which may require

expenditure of significantly more or less funds than were budgeted. The dredging function is

therefore inherently more volatile than other O&M functions and this volatility becomes even more

pronounced on an individual project basis. The size and inherent volatility of the dredging function

make it difficult to adequately plan for, monitor, and manage both the dredging and non-dredging

portions of the O&M program.

Each Corps' district budgets for a different mix of dredging and non-dredging projects under

the O&M appropriation. This mix provides for varying levels of flexibility to reprogram funds to

cover excess dredging needs. For example, one district visited was predominantly a dredging

district with few other minor functions performed. This district was often unable to fund all of its

basic dredging requirements in a given year and had very few non-dredging O&M projects from

which to reprogram funds to cover the shortfall. Another district visited had a large non-dredging

program that could be used to fund unanticipated dredging requirements. In fact, this district had

enough excess non-dredging funds to reprogram over $1M dollars to build additional campsites

during a recent fiscal year. Thus, the ability of districts to reprogram funds to cover excess dredging

requirements, due to project mix, varies widely.

Managing the dredging funds separately would offer two distinct advantages. First, when

dredging requirements exceed budgeted amounts such overages will be managed centrally within

the overall dredging fund, rather than reprogramming funds from other non-dredging projects. By

walling off the volatility of the dredging projects, the Corps will be able to take advantage of the

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relative stability (f the funding requirements for non-dredging projects in planning and executing

the program for these projects. Secondly, as indicated by investigation of FY 1989 and FY 1990

data, the reprogramming of dredging funds appears to have become a routine source of funding for

other O&M needs. Centralizing the reprogramming requirements for the dredging function will

decrease this secondary source of funds for non-dredging projects, thus requiring improved planning

and management of both dredging and non-dredging projects. Based upon the FY 1989 and FY

1990) data, it would appear that a reduced level of funding could be budgeted for dredging. This

would allow for more funds to be available to plan and budget for other O&M projects rather than

reprogramming excess dredging funds during the course of executing the program.

d. Funding Level Matrix Definitions

The funding level matrix provided in the Annual Budget EC often includes guidance which is

not consistent with current practice or that does not provide enough detail for consistent interpretation. The Contractor suggests that the definitions in the funding level matrix be clarified in those

areas of the greatest range of interpretations, by providing supplemental, expanded definitions to

augment the one- or two-sentence descriptions contained in the actual matrix. Also, the Corps

should revise the funding level descriptions to bring them in line with current funding practices.

These revisions will increase conformance to Corps' guidance, lessen inequities in budget submittals

due to varying interpretations of funding level matrix definitions, and improve the efficiency of

resource allocation.

e. Mid-Range Planning

Although a ten-year budget projection is prepared each year as a part of the annual budget

preparation, no formalized process exists to perform detailed mid-range planning with respect to

specific periodic and non-recurring work items. The Contractor suggests that a detailed five-year

budget projection be prepared, and any projected periodic and non-recurring work items above a

specified cost threshold be categorized and listed as separate line items in the projected year of the

requirement. These projected requirements would be adjusted at the HO level and then distributed

to the project level for use as a planning tool. This would allow the Corps to plan in advance for

specific upcoming periodic and non-recurring work items to increase the priority of the variable

work items funded above the baseline requirements and to better manage the unaccomplished

maintenance backlog.

f. New Program Requirements

When a new program is developed and policies promulgated, there is an associated resource

impact; current procedures for funding such new requirements make it difficult to isolate and

identify that impact. Although the Annual Budget EC has been updated in recent years to isolate

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the costs of some major new program initiatives, such as Environmental Compliance and Wildlife

Mitigation, other new program requirements have been added without new categories to separately

identify increased costs, e.g., the Condition Indices and the Corps Sign Manual programs. The

Contractor suggests that line items be displayed at the project level for all funding demands over

$25,000 that result from new programs or policies.

g. Interim Funding Requests

The interim BY budget submittal, and the subsequent work allowance request, are not subject

to the same level of review as the original BY budget submittal. The original budget submission,

or President's Budget, is subject to detailed scrutiny and justification requirements, especially for

variations from the BY-I budget submittal. The adjusted BY budget, in contrast, is subject to a

much less stringent review than the ui,,,ina! BY submittal, since the adjusted budget is prepared

under reprogramming guidelines. Although the review guidelines have recently been tightened to

manage change in a more disciplined manner, they are still significantly less rigorous than the BY

budget review. For the sample of 81 projects as a whole, the total allocated work allowance request

differed from the total approved original BY appropriation by twelve percent. The Contractor

suggests that an audit process be established to ensure compliance with guidance.

h. Presentation and Justification of O&M Program

Personnel within the Corps, ASA(CW), and OMB variously expressed concern with regard to

the perception of the Corps' O&M, General, appropriation. In particular, outside reviewers

experienced far greater difficulty in understanding the composition of the O&M, General, program

than other appropriations such as Construction, General. Current detail for the Corps' O&M,

General, Program, as presented to the Subcommittee on Energy and Water Development, provides

for a listing of estimated operation and maintenance requirements for each Civil Works project.

This information is presented by Corps' division, and is further subdivided into four project types

(navigation, flood control, multiple-purpose power projects, and protection of navigation), and by

State.

The Contractor suggests that additional summary exhibits be provided for each division and

Corps-wide O&M presentation. T'he presentation should highlight various components of the

O&M, General, requirements to provide the reviewer with a better understanding of funding

requirements.

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B. GENERAL PROJECT MANAGEMENT

This section addresses general project management issues with significant, multi-functional

impact. Issues related to the following areas are discussed: administrative, operations, and maintenance.

I1. Administrative Issues

The following section will address the Contractor's findings about the general topics of

organizational structure, contracting, property and supply, automated data collection and reports

control, and work management.

a. Organizational Structure

Every district office visited utilized a different Operations or Construction/Operations Division

organizational structure to manage its civil works mission. The majority of projects visited also

had unique organizational structures and reporting hierarchies. There is little consistency in the

names of organizational elements, or in the organizational responsibilities of these branches,

sections, or units. District organizations have developed over the years along district-unique lines,

not all of which are equally cost-effective. Policies related to management layering, number of

district versus project staff, and cross-functional use of staff were particularly varied.

b. Contractiag

(1) Service Contracts for Routine O&M. Most projects now use some contract staff to

supplement, or in lieu of, an in-house, hired labor staff of maintenance workers. Depending on the

district, and on the funds available, some projects have contractors perform specific one-time or

annually cyclic tasks only, such as building painting, major repairs, or vault toilet pumping. Some

projects use contractors only occasionally and for smaller items, such as winterizing plumbing

systems, degreasing generators during overhauls, or cleaning drainage ditches where the bulk of the

maintenance is performed by Corps' in-house staff. At other projects, contract staff may be

responsible for the operation and maintenance of entire parks. In these situations, the contractor

deals exclusively with a Facilities Manager or a designated Ranger acting as the day-to-day

representative for the Park Manager.

Some Corps' projects, however, also utilize contract staff to assist in the accomplishment of

routine, one-time, or major maintenance tasks. Repairs and general maintenance, i.e., seasonal

start-up and shut-down of facilities, minor electrical and plumbing problems, and restroom painting,

are items typically performed by contract. Many of the Corps' projects utilize both hired labor and

contract staff. While most projects strive not to mix the in-house and contractor staff on the same

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S TUDY CONDUCT AND FINDINGS

tasks, at least one project interviewed contracted for the use of laborers to supplement its hired labor

crew of craftsmen because Government FTE were not available.

Of those who utilize both contract and hired labor staff, several projects continue to employ an

in-house "renovations" crew whose primary responsibility is to make large-scale improvements,

enhancements, and enlargements of campgrounds, swimming beaches, boat ramps, and picnic areas.

Renovations of campgrounds, picnic areas, and visitor centers are almost exclusively the purview

of hired labor crews, regardless of whether or not other maintenance requirements are performed

by contract staff. Hired labor is often responsible for building and installing new restrooms, fee

collection booths, campground entrance gates, and playgrounds, and for project office remodeling

requirements. The Contractor suggests that guidance be developed, at the national level, to

standardize use of service contracts.

(2) Types of Contracts Used. A variety of contract instruments are used to obtain services at

Corps' projects. Generally, the most cost-effective contract instrument for repetitive requirements

is the Firm-Fixed-Price contract which establishes a set fee for each work item, or a fixed total price

for all anticipated work requirements. This type of contract is used by many Corps' districts, and

is recommended by the General Accounting Office and the Office of Federal Procurement Policy

in OMB because there is a strong incentive for the contractor to be efficient and to perform quality

work in a timely manner. Many rural projects obtain contract services from local vendors using

Blanket Purchase Agreements or Standard Form 44s. These procurement instruments are more

often used for small, one-time services than for repetitive requirements.

In at least one division, the most common contracting instrument for O&M services was the

Cost-Plus-Award-Fee contract. Normally, cost-plus type contracts are used when the quantity or

scope of required services are difficult to determine in advance. Once the known characteristics of

the work to be performed are established, a contractual rate for the incremental accomplishment of

the work and the allowable mark-up on the cost of supplies aw-d materials purchased by the contractor

is set. In general, cost-plus type contracts do not carry as strong an incentive to be cost-effective,

since the contractor is generally reimbursed for all contract-related expenses. The Corps of

Engineers has recognized the element of risk associated with cost-plus contracts, and therefore

requires that all cost-reimbursable maintenance contracts be sent to Headquarters for review and

approval prior to advertisement. This costly and time-consuming review process, although warranted, is a further drawback to the use of this contract type. The General Accounting Office has

previously encouraged agencies to use more cost-effective contract instruments wherever possible,

though it recognizes Cost-Plus-Award-Fee contracts as a slightly more incentive-driven model than

the basic cost-plus contract.

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c. Property and Supply

At a majority of the sites visited, the number of Operations Division approvals required for

procurement of small items (those greater than the projects' local authority and less than $25,000)

varied greatly. At most sites, between one and five approvals are required within Operations

Division alone before a request is forwarded to the next organization. Each additional review/approval conducted within Operations Division extends the time required to complete the procurement

and meet the project's small purchase needs. This results in inefficient utilization of manpower,

increased downtime, increased overtime, lost revenue, and potential danger to the staff and public.

The degree of management oversight at the district level should be balanced against the overall

timeliness and cost of the procurement process. The Contractor suggests that direct procurement

request authority limits be established based upon project size (as determined by the O&M budget

level, number of procurement requests, or FIEs) and scope.

d. Automated Data Collection and Reports Control

(1) Lack of Standardized Method for Exchange of Management Information. Limited mechanisms exist for the exchange of information between projects. The absence of a standard vehicle

for informing others about managerial techniques results in a large amount of duplicated effort

throughout the Corps. For example, every project, district, and division visited had its own internal

data management systems. The systems ranged from simple spreadsheets to elaborate systems with

graphic capabilities. Even districts within the same division had unique internal data management

systems. A great deal of similarity exists between many Corps' projects, and the sharing of

successful -- as well as unsuccessful -- management techniques and experiences could reduce costs

throughout the Corps.

(2) Corps-wide Project Database. The Corps maintains a number of functional data management systems to record, track, and analyze information in its vast inventory of projects. Current

data management practices are not conducive to Corps-wide analysis, as databases containing

project information are developed in an isolated fashion, by different organizations, and as a result

are often redundant or incompatible. Information about project structures, facilities, or activities in

one database does not always agree with another database, and many are either out of date or

incomplete. Furthermore, there is no single Corps-wide system which provides access to all project

information. In addition to restricting analytic efforts, these problems have led many districts to

develop their own "home grown" data systems. Redundant efforts to develop data management

systems at the district level are costly and inefficient.

One solution to this problem is to develop a centralized system for recording and maintaining

core project data. Basic data elements, such as authorization history, CWIS number, geographic

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and district data, as well as summary historical expenditure data, would be developed and maintained

by Corps Headquarters, with points of contact established for each functional area. Users would

be able to access the system, in a read-only mode from a remote terminal, and submit additions/modifications to a central data manager.

(3) Software Incompatibility. An increasingly large portion of the Corps' operation and

maintenance workload is accomplished through automated means, and the Information Management Office (IMO) at each district is responsible for approving software purchases. However, there

are no Corps-wide regulations which specify the type of software Corps' districts must use. Each

district has developed its own policies for software procurement, and, as a result, data cannot easily

be shared between field activities due to software incompatibility. For example, specialized

software, such as hydropower plant operating software, varies from district to district, as do the

more traditional types of software, such as word processing, spreadsheet, database, and graphics

packages. The wide variety of software leads to redundant data entry, a more limited use for some

data, and increased requirements for data conversions.

e. Work Management

(1) Inconsistent Work Definition. Tracking and Management. The lack of current guidance in

the area of maintenance management has resulted in wide variations in the scope and intensity of

project efforts. Maintenance Management systems at some projects are virtually non-existent, in

that work ordering, tracking, and reporting are conducted on a purely verbal basis. At other projects,

every hour of every day for every person i3 tracked and every task performed is recorded for over

400 different categories of work. The lack of Headquarters' guidance has resulted in redundant and

inconsistent district and project efforts to establish maintenance management requirements and, at

several of the project sites visited, a complete lack of records regarding work performed at the

project. The Contractor suggests that new work management guidelines be developed and that

projects be required to develop new project O&M manuals based on the new guidelines.

(2) Construction and Expansion Conducted with O&M Funds. Project staff gave a variety of

reasons for using O&M funds to construct additional camping sites, maintenance offices, warehouses, and equipment sheds. In many cases, these were replacements for facilities that had

deteriorated over the years. In other cases, staff stated that they needed more facilities to house the

contract O&M staff and the Government-furnished equipment; campgrounds were too crowded; or

a place was needed to keep the in-house crew's campground renovation materials, supplies, and

equipment separate from the contractor's supplies. The primary reasons given for adding utilities,

such as electric and water hook-ups, to campsites was to allow the Corps to charge more for the

sites, or to keep up with other local campgrounds, rather than to reduce O&M costs. While upgrades

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SnT'D 'CONDUCT AND FI'NDINGS

which allow for higher campsite fees are a permissible use of Special Recreation User Fee (SRUF)

funds, there is no Corps' guidance on the limit to which an existing Class A facility should be

improved each year in order to continually justify higher fees. First priority for expenditure of O&M

funds, including SRUF funds, should be placed on project operation and maintenance, and more

justification, including FTE impacts and long term maintenance costs, should be required for project

improvements and enhancements.

(3) Determining Heavy Equipment Requirements. Many projects retain ownership and maintenance responsible for large fleets of heavy construction and engineering equipment long after

construction of the project has been completed. In some cases, while the equipment may only be

used several times a year, a staff position for a Heavy Mobile Equipment Repairer is required in

order to keep equipment in operating condition. There is limited guidance on how many heavy

equipment items different types of projects ought to maintain on-site.

(4) Unclear U.nderstanding of Corps' Regulations in the Field. There is a significant variation

in understanding or interpretation of many Corps' rules and regulations between districts, between

divisions, and between district/division level organizations and Headquarters. This leads to

inconsistent management of Corps' resources, including manpower and funding. Districts and

divisions currently maintain hard copies of rules and regulations, and revisions are distributed by

Headquarters as necessary. Maintenance and distribution of hard copy documents is difficult and

time consuming, and the documents are not always easily accessible. The Contractor suggests that

electronic copies (computer diskettes or CD ROM) of updated rules and regulations be distributed

to division and listrict offices.

2. Maintenance

a. Identification of Maintenance Requirements at Projects

Each Corps' project typically identifies maintenance requirements according to its own project

practices, although a district-specific inspection program for certain types of projects had been

implemented at one district visited. Informal inspections are conducted at regular intervals and the

information is subsequently used to develop work requests or for inclusion in the operation and

maintenance line item budget request. However, there is no consistent methodology for identification of short-term maintenance requirements. The latest guidance (1967) on identifying maintenance requirements does not reflect the needs of the current projects for maintenance planning and

budget preparation. A Corps-wide standard inspection program would provide district-to-district

consistency, and allow comparisons to be made not only between projects, but also across districts.

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b. Interchangeability of Parts/Equipment

Procurement costs and inventory levels could be lowered, and maintenance times reduced, with

increased interchangeability between equipment and facility items at the project. In addition,

district-wide interchangeability, particularly with respect to major components, would significantly

decrease maintenance times and costs. However, most districts do not have formal methods of

promoting interchangeability between projects. An interchangeability review should be established

at the project and district levels. This would increase spare parts availability, thus reducing repair

time and costs. Several non-Corps' sites visited have already initiated such programs.

c. Identification and Recording of Unaccomplished Maintenance and Repair (UMAR)

No formal reporting procedures currently exist for the identification and tracking of unaccomplished maintenance and repair (UMAR). Some projects maintain their own informal listings of

unaccompiished work, yet the information is generally not reviewed above the project level. As a

result, accurate comparison of UMAR listings between projects is not possible. The majority of

Corps' projects visited did not maintain up-to-date listings of UMAR items. Many project managers

will not include an item in the budget submittal unless they believe that a reasonable chance exists

that the item will be funded. Therefore, while a backlog of maintenance and repair work exists at

a number of projects, in many cases no formal documentation of such is available. This lack of

regular identification and reporting of UMAR inhibits district-level managers in long-term planning

and funds allocation decision-making. An annual reporting procedure for project UMAR should

be established with accompanying audit procedures. This would ensure that: the condition of each

project is thoroughly evaluated on an annual basis; valuable information is provided for making

monetary and personnel resource allocation decisions; and better documentation of Corps' funding

requests is available.

d. Centralized Maintenance Expertise

There is no Corps-wide policy on establishing centralized organizations of maintenance expertise in districts or divisions. Only some of the Corps' lock systems and none of the hydropower

plants visited were supported by centralized maintenance organizations. The lack of central

maintenance units to support hydropower projects has resulted in several redundancies among

projects within a given district, such as duplication of major equipment and specialized skills.

Establishing at least one central organization responsible for major maintenance within each district

with significant hydropower facilities would reduce the duplication of equipment and personnel

skills which currently exists between similar projects. Additionally, the creation of specialized,

centralized work teams, e.g., generator rewind teams, cavitation repair teams, etc., should be

ii vestigated.

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e. Automated Maintenance Management Systems

There are no policies or procedures which require the use of automated systems to collect, track,

or report maintenance data, or provide standard guidance for development of such a system. As a

result, many divisions/districts are independently developing automated maintenance work order

generating, tracking, and management report systems, while others continue to track and report data

manually. Data required for each system are often inconsistent. The Contractor suggests a policy

be issued which encourages the use of standardized automated systems for maintenance management.

f. Preventive Maintenance vs. Reliability-Based Maintenance

The Corps currently operates using a preventive maintenance-based strategy. With this strategy,

preventive maintenance is performed at regular intervals in accordance with established guidelines.

Under a reliability-based maintenance program, maintenance (or replacement) should be performed

just prior to the point at which the item fails, or suffers "significant" damage or performance

degradation. The most difficult aspect of this methodology is the determination of the point where

the ri.,k and projected costs are higher than the cost of the repair, rehabilitation, or modernization.

This strategy was not fully implemented in any of the organizations visited, but two of the

non-Corps' organizations are vigorously pursuing proactive and predictive evaluation techniques

to identify when to perform major maintenance, rehabilitation, or modernization.

The Corps' preventive maintenance program is beginning to be enhanced with some insightful

work in the reliability-based strategy with the application of the condition indicator concept. The

Contractor suggests continued investigation into this predictive technique. After a history of

condition indicators and maintenance activities is established, the Corps can begin to realize the

benefits and savings available when using a reliability-based strategy to determine when to repair,

rehabilitate, or modernize equipment and facilities.

C. FUNCTIONAL AREA SPECIFIC

1. Flood Control

a. Operations

(1) Operational tasks associated with dams are quite few and are generally limited to routine

inspections and equipment readings. In most cases, the operational duties are performed by a

member of the resource maintenance or powerhouse maintenance crews. The Contractor investigated the possibility of installing remote operating devices on dam gates, remote sensing, installation

of video can.eras, and installation of automatic trash rack cleaning systems. In every case, the cost

of automation was significantly higher than continued manual operation.

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(2) Operational tasks associated with pumping plants are generally limited to monitoring the

equipment while it is pumping during flood events, but include routine inspections and equipment

readings. The possibility of automating and remotely controlling the operation of the pumping plant

visite1 was investigated. As with the dam gates, due to the limited operating requirements, the

potential automation of project operation does not appear cost effective.

(3) Water control data is acquired from data collection platforms, stream gauges, and private

individuals. Most of the equipment is now automated so that data on stream elevation and

precipitation is transmitted to satellites every four hours under normal circumstances, or every two

minutes during flood events. Some of the platforms still have telephone connections whereby raw

data can be obtained by dialing into a transmitter on the platform and downloading the data into a

computer. Other than Corps' projects, there are few places left where a person is responsible for

manually collecting data daily and calling it into the Corps or the NWS directly. The Corps shares

the cost for many of the data collection platforms with agencies such as the NWS, its parent

organization, the National Oceanographic and Atmospheric Administration (NOAA), and the

United States Geological Survey (USGS). There is no national buying program in effect for data

collection platform equipment, so the type of equipment used varies from district to district.

The raw data transmitted from the data collection platforms routinely goes to NWS satellites

and then is transmitted back to NWS or Corps-operated ground receiver units, depending on the

district, where it is manipulated into a format usable by the forecasters. The staff of the H&H Branch

input the information into prediction models developed by the Corps Hydrologic Engineering Center

(HEC) which have been fine-tuned to meet the requirements of the local water basin. These models

produce run-off predictions which are used to develop water release schedules. These predictions

take into account all the various water demands, actual and estimated rainfall/snowmelt, and the

need to seasonally adjust reservoirs during the calculation of the suggested releases.

The Corps is part of a tri-agency effort to develop uses for, and to integrate into existing

programs, the new NEXRAD (Next Generation Radar) technology. This is a new weather radar

system which greatly enhances the measurement of precipitation, which increases the accuracy of

run-off predictions. The Corps' Tulsa and St. Louis Districts are the two assigned to review this

technology and its applicability to the Corps-wide water control program. The Contractor commends the Corps on centralizing research of this type at specific locations, as it would not be

cost-effective for each district to attempt these NEXRAD developments on their own. Consideration should be given to consolidating other water control-related research on such topics as lox'

dissolved oxygen and HEC-model modifications to specific districts or divisions within the Corps.

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S 7TUD Y CONDUCT AND FINDINGS

b. Maintenance

The paragraphs which follow provide a summary of the Contractor's findings in the area of

flood control structure maintenance. In general, maintenance of the structures was sufficient in that

few, significant flood control structure-related maintenance emergencies were noted by the Corps'

staffs interviewed.

(1) Maintenance associated with the dams is usually limited to mowing of grass areas and

routine and minor structures maintenance. Typical preventive maintenance tasks include greasing

of gates, cleaning the dam equipment and decks, and checking for leaks. The most frequently

observed maintenance problems at Corps-maintained dams involved unaccomplished painting

requirements, primarily for gallery walls, and equipment items. No structural problems were noted

at the sites visited.

(2) Maintenance of pumping plants is in many ways quite similar to maintenance at hydropower

plants, except that pumping plants are used much less frequently. The pumping plant staff visited

as part of this effort was in the process of preparing for a major overhaul of the pump turbine and

associated motor. While no significant lapses of service had occurred, routine maintenance

inspections showed signs of significant deterioration of the turbine blades.

(3) Water control maintenance consists of maintenance to the data collection platform equipment, the transmitters/receivers, satellite links, and the H&H Branch computers used to run the

modified HEC models. Most Corps' districts have entered into contracts with the USGS to install

and remove data collection platforms, rain gauges, and stream gauges. Any malfunctioning

platforms are exchanges for spares and the bad units are normally returned to the local Corps' district

office for examination by electronics technicians who attempt to diagnose and, if possible, fix the

problem. If they cannot, the units are sent back to the manufacturers' authorized service center for

repair.

2. Hydropower

The Corps is the largest operator of hydroelectric facilities in the United States. The Corps

operates and maintains 76 hydroelectric powerplants housing 356 generating units. These powerplants have a combined capacity of nearly 21,000 megawatts, and represent a $13 billion investment.

a. Staffing

The Corps power plants visited by the Study Team are generally manned 24 hours per day, 365

days per year, and use a five shift operation to cover the 168 operating hours per week. Power plant

operator staffing in the Corps sample ranged from a low of 0.65 operators per unit operated to a

IV. ASSESSMENT & ANALYSIS OF CURRENT PROGRAM Page 79
STVDY CONDUCT AND FINDINGS

high of 1.40 operators per unit, with an average of 1.03 operators per unit directly operated (i.e.,

non-remotely operated units). Staffing levels in the non-Corps' plants varied from a low of zero

operators per generating unit to a high of 2.38 operators per unit; the average number of operators

per main unit was 1.82. Maintenance staffing at the Corps' power plants visited varied from a low

of 0.88 maintenance workers per unit to a high of 3.15 maintenance workers per unit; the average

number of maintenance staff per main unit was 2.55 FTE/unit. For non-Corps' sites visited,

maintenance staffing ranged from a low of 2.17 FTE/unit to a high of 8.44 FEE/unit; the average

number of maintenance staff per main unit was 5.89 maintenance workers per unit. While the small

sample size makes definitive statements somewhat difficult, it is quite clear that non-Corps' power

plants are staffed at significantly higher levels than are the Corps' plants. There was no apparent

standard method for establishing staffing levels at any of the organizations visited; the primary

factor most often cited as the basis for staffing decisions was "experience".

b. In-house Capability

The Study Team observed a high level of consistency with respect to maintenance capabilities,

procedures, and philosophy at the Corps' hydropower projects. Maintenance shops at each of the

visited projects possessed a significant level of capability, with adequate personnel and equipment

resources to accomplish most preventive maintenance and breakdown repairjobs in-house. Exceptionally large jobs, and those requiring highly specialized skills, were generally the only types of

work contracted at the projects. Large, recurring work requirements, such as cavitation repair and

mechanical maintenance to turbine equipment, typically are accomplished using in-house labor at

each of the sites, although major electrical work, such as generator rewinding, is performed by

contract.

In every non-Corps' organization visited, contracts were utilized to provide support to the

in-house maintenance labor to at least a minor extent. New construction work is almost universally

contracted and the level of maintenance-related contracting is organization specific. Some organizations, such as Ontario Hydro and BC Hydro, restrict contracts to only the very specialized,

one-time requirements. Other organizations use contracts extensively. In those organizations

which have engineering capability on-site, the contract specifications are generally developed

locally and, depending on the cost of the job, awarded locally as well. Project sites which do not

have engineering staffs are supported by a maintenance facility or engineering office with geographic (area) responsibilities.

Maintenance shops throughout the non-Corps' sample sites varied from modest facilities to

extensive repair organizations. Certain non-Corps' organizations maintain minimal capabilities

necessary to perform preventive and routine maintenance, while others attain as much self-suffiIV. ASSESSMENT& ANAL YSIS OF CURRENT PROGRAM - Page 80
STUD Y CONDUCT A ND FINDINGS

ciency as possible. When queried about the basis for the organization's philosophy, non-Corps'

managers stated that the organizations had evolved into their present structures over time rather than

occurring in a single event. Consistency from plant to plant within the given non-Corps' organization, however, was quite evident.

Organizations which are structured to provide extensive on-site maintenance include British

Columbia Hydro, Ontario Hydro, St. Lawrence Seaway Corporation (U.S.), New York Power

Authority, and Union Electric Company. These organizations generally accomplish both routine

maintenance as well as the heavy work with resources available at the project site. Non-Corps'

organizations which prescribe to the minimal on-site capabilities philosophy include TVA and

Seattle City Light. In each of these organizations, the on-site maintenance effort is limited to routine

maintenance and repair. Maintenance expertise for these organizations is centralized into specialty

repair groups who provide heavy maintenance support for all projects within a geographic area.

These central shops may be co-located with one of the plants or may be remotely located.

Advantages of the centralized maintenance facilities include the effective use of limited personnel

and financial resources, cost-effectiveness and high utilization of expensive maintenance equipment, ability to retain a high level of expertise, and centralized maintenance planning.

c. Preventive Maintenance

Every Corps' project visited maintains its facilities and equipment under the philosophy that

preventive maintenance, performed regularly, results in lower total operation and maintenance costs

as compared with a breakdown mode of operation. While increases in repair requirements

occasionally cause preventive maintenance tasks to be slipped, each of the projects believes planned,

scheduled maintenance is a more effective and efficient use of personnel and financial resources

than A breakdown maintenance policy. Methods of improving the preventive maintenance/breakdown maintenance ratio which are being pursued include modification of manufacturer-recommended preventive maintenance frequencies and tasks, and automated scheduling of the

maintenance ordering process. One area which has received little attention to date at the projects

visited, however, is proactive maintenance evaluation techniques. Each of the projects generally

performs maintenance at regular intervals of time; however, it is widely believed in the non-Corps'

O&M community that predictive techniques could be applied in many instances which would

optimize the frequency of maintenance tasks, thus reducing overall maintenance costs and demands

upon personnel.

Philosophies on preventive maintenance were fairly consistent throughout the non-Corps'

organizations. It was generally considered that a good preventive maintenance system can significantly reduce long-term costs. The single exception was a public utility which is experimenting

IV. ASSESSMENT & ANAL YSIS OF CURRENT PROGRAM- Page 81
STUDY CONDUCT AND FINDINGS

with a pure "breakdown maintenance" approach at two of its sites; this experiment has yet to be

evaluated. Preventive maintenance tasks are usually based on manufacturer's recommendations

and experience of plant personnel. The more complex hydropower plants generally have more

extensive programs. Documentation on performance of preventive maintenance was generally very

good whether it was manually recorded or computerized.

Proactive maintenance evaluation techniques are being explored by a few of the non-Corps'

organizations visited. Ontario Hydro (OH) is a particularly active organization in this field and has

been working with the Electric Power Research Institute (EPRI) in San Francisco, California. In a

joint program with EPRI, OH has installed sophisticated sensing devices on one of its large

turbine-generator units at the Robert H. Saunders plant in Cornwall, Ontario. The on-line monitoring system is controlled by a personal computer and includes readouts on 84 separate operating

characteristics. The effort is expected to provide recommendations on the optimum level of main

unit monitoring for turbine-generator units.

d. Engineering Support

Engineers are stationed on-site at three of the Corps' hydropower projects visited. Their duties

included, but were not limited to, maintenance engineering and management of the crews performing the maintenance work. Engineering work consisted of planning and coordinating maintenance

work for the shops, trouble shooting maintenance problems, coordinating conduct of on-site

turbine-generator testing, reviewing plans and specifications developed by the district for work on

project, and providing contract administration for technical maintenance work.

All of the non-Corps' hydropower organizations visited agreed that significant engineering

design work should be conducted out of a central office which supports multiple plants. There are

two different opinions on the topic of maintenance engineering, i.e., providing on-site engineering

expertise for the repair or replacement-in- kind of components and systems required to keep the

plants operating. One is that maintenance engineering should be done at the project site, and the

other is that alt engineering work should be conducted at the district or area office. Most of the

non-Corps' sites had engineering staffs of some size at the project sites, with the exception of Seattle

City Light and Tennessee Valley Authority plants.

Associated with the amount of maintenance engineering capabilities on-site is the issue of

centralized engineering and design support. Except for one district, project staff receive their

engineering and technical support from their district's Engineering Division. Several districts

visited had civil engineers responsible for construction contract administration or inspections

operating out of project or areas offices. Only one district has established several project level

technical support units, staffed with electrical/mechanical engineers, specifically to serve the needs

IV. ASSESSMENT& ANAL YSIS OF CURRENT PROGRAM - Page 82
S IUD I'CONDUCTAND FINDIN(S

of the project itself. (This district operates a series of large, older hydropower facilities along a

politically and environmentally sensitive waterway. The district does not staff small projects with

technical support units.) The Corps should develop standardized guidelines for determining the

level ot on-site engineering expertise versus concentrating this expertise at the district/division level.

The Corps currently operates several centers of engineering expertise within the United States.

The Hydroelectric Design Center is located in NPD, and there are also two "sub-design centers",

located in MRO and SAM. There is no center of engineering expertise for recreation-related design

requirements, though the Corps has made an effort to standardize in this area by recently issuing

new architectural design standards for project recreation area restrooms and showerhouses.

In every case, the non-Corps' organizations contacted had one centralized group responsible for

all engineering and design (E&D) effort for that organization. The interviewees stated that these

E&D groups provided a level of expertise that was not available at the project and was only necessary

in one location. Additionally, every organization stated that the level of service received from their

E&D organization was satisfactory and, in some cases, excellent.

e. Standard Operating Procedures

Overall power plant operations at the Corps and non-Corps plants were quite consistent and

uniform. The power plant operators' primary duties are to start and stop the turbine-generator units

and monitor their continued operation. Each plant had a Standard Operating Plan which was on

file in the control room. These plans are generally based on the original operating plans provided

with the plant by the construction contractor. The plans address operational procedures for normal

operating conditions as well as contingencies for emergency conditions. Each plant also has sets

of control diagrams and blueprints which are used by the operators and maintenance personnel to

troubleshoot alarm conditions and problems as they occur.

f. Maintenance Management

One area where differences existed among the hydropower facilities visited is maintenance

management. Three of the five hydropower projects visited utilize computer-based systems to

various extents for managing preventive maintenance and repair work requirements. One of these

projects utilizes a computer system to list preventive maintenance tasks as each is due, and records

labor hours expended on preventive and breakdown maintenance. The system does not, however,

record information regarding what maintenance tasks have actually been performed, nor is it used

in the work ordering process beyond preventive maintenance. Trouble reports are completed

manually, and large maintenance jobs are recorded in a maintenance log book. At one large

hydropower project, a computerized system is on-site, but the project staff is experiencing difficulty

in implementation. Another project maintains a very elaborate computer system for management

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STVUDY CONDUCT AND FINDINGS

of preventive maintenance, unscheduled repair, and other maintenance labor requirements. The

other two projects operate without a computer-based system for maintenance management.

The level of maintenance management varied significantly among the non-Corps' organizations

visited, with the larger hydropower plants being the most sophisticated. The New York Power

Authority, Ontario Hydro, British Columbia (BC) Hydro, and the Bureau of Reclamation plants

each had very modem and comprehensive systems for analyzing, plann ing, scheduling, and tracking

maintenance effort. Each of these non-Corps' organizations utilizing formal maintenance management techniques tracks every hour spent by all maintenance personnel and records what type of

work is done, as well as the equipment which is being repaired. Seattle City Light's Boundary

project, which is currently operating in a breakdown-maintenance mode, is considering the development of an automated maintenance management system which will include management of a

preventive management program.

g. Facility Assessment

The power plant control systems at the Corps' hydropower projects visited generally have the

original components which were installed when the plants were constructed. Obtaining replacement

parts is a continuing problem because the systems are no longer being used in industry and often

the original equipment manufacturer is either no longer in business or cannot make replacements.

Finding manufacturers willing to make parts for these old designs is becoming more difficult and

expensive.

In many cases, the facilities and equipment at non-Corps' projects were also essentially

unchanged from the original construction. Control rooms in power plants were more often than not

unchanged from the days of initial construction. At some sites, manual and analog operating

equipment hadbeen replaced with automatic control panels accompanied by CRT (cathode ray tube)

screens. Plants which were constructed in the 1970s or later, or had undergone modernization,

usually had digital recorders rather than the strip chart recorders installed in earlier facilities. In

every case, the control rooms were air conditioned, climate-controlled spaces, which were clean

and comfortable.

An impressive aspect of every Corps' and non-Corps' hydropower plant visited by the Study

Team was the fact that the main generator rooms were always very clean and organized. In only a

few cases were there noticeable maintenance deficiencies and these were limited to water spots

caused by roof leaks. The sheer size of the facilities makes roof leaks a recurring maintenance item.

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S1VDY CONDUCT AND FINDINGS

h. Remote Operation

A trend followed by all non-Corps' sites, with the exception of the New York Power Authority,

was that of increasing automation to reduce staffing. The interviewees often had mixed feelings

over full automation; several expressed reservations over the automation and remote controlling of

plants. While financial pressures were encouraging such automated operations, several managers

felt that the added insurance that comes with a manned station should be considered in the economic

analysis to evaluate future automation projects.

Costs associated with maintaining full operations staffing at most Corps' hydropower projects

are considerable, as Corps' power plants are, on average, staffed with seven operators. These

operators are highly skilled, highly paid tradesmen, whose wages are determined based on special

power plant wage scales rather than the Federal Wage Grade schedules used for most Federal trades

positions. Corps' projects which are remotely operated have demonstrably lower operations costs

than would be incurred with full, on-site operations staffing. However, no standard guidance exists

which identifies conditions under which remote operation of power plants will be pursued. Several

of the Corps' districts visited stated that they believed there were significant savings to be obtained

through additional remoting of power plants under their jurisdiction. One Corps' district visited

stated that it could save more than $500,000 per year if permitted to remote to the extent it desired;

this figure was based on preliminary feasibility studies already completed. Due, however, to the

adverse impact on morale, union opposition, and Congressional actions to prevent the associated

staffing reductions, there is a widespread reluctance to actively pursue these savings.

In many cases, remote operation of hydropower plants can result in significant operations cost

savings, without compromising safety or project integrity. The Study Team believes the Corps

should establish standard guidelines for remote 3perations, and plants should be converted to remote

operation where practical and cost effective.

3. Recreation

a. Operations Activities

(1) OEganizational Structure. Across the country, there is little consistency in the structure of

the recreation management function. Regardless of the size of the facility, the organizational chain

begins with the Park Ranger who reports to a Park Manager or to a Supervisory Park Ranger, who

may also be the Park Manager or the NRM Branch Chief. The Park Manager/NRM Branch

Chief/Supervisory Ranger typically reports to a Project Manager, an Area Engineer/Park Manager,

the Chief of the district's Natural Resources Management Branch, or to the Chief of the district's

Operations Division.

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STUDV CONDUCT AND FINDINGS

The Area Park Manager concept was only observed directly in two districts during the course

of this study. In both cases, the Park Managers of small reservoir projects reported to an Area Park

Manager located physically, as well as organizationally, between the project and the district office.

The role of the Area Park Manager was to provide technical, adm inistrative, and managerial support

to the staff of the individual projects, and to assist them to implement recreation policies issued at

the district, division, and HQUSACE levels. In some cases, this is a cost-effective alternative to

the staffing of redundant support positions at small projects located nearone another. In other areas,

the Area Park Manager concept functions as an additional layer of communications and paperwork

between the field staff and district staff trying to assist them.

Above the Area Park Manager/Engineer, or the Park/Project Manager in most districts, the next

organizational level of recreation management is either the district's Natural Resources Management Branch Chief or the Operations Division Chief. Problems with the use of the stove-pipe

structure into the Natural Resources Management Branch included reduced communications and

planning between functional groups, difficulty in determining long-range allocations of resources

between functions, and the need for redundant support positions where power plant and recreation/resource groups are completely separated organizationally at the project level.

Project recreation staff also frequently interact with other technical elements at the district level.

At most districts, Planning Divisions are responsible for developing Master Plans, visitor center/interpretive services prospectus reviews, and the conduct of some Environmental Impact Statements

which would be required for development of recreation facilities. As discussed in a later section,

project staff are required to perform a variety of the compliance, utilization, and general outgrant

inspections, as well as manage the lakeshore use permit program. Many of the inspection duties

must be accomplished during the conduct of routine patrols and tours.

By comparison, the National Park Service (NPS) has a flatter organizational structure than the

Corps. They have nine multi-state regional offices, similar to the Corps' division offices, and an

Alaska region, which report to the NPS Headquarters in Washington, D.C. The National Park

Service does not have another organizational layer between the individual parks and the regional

offices. They have combined at the regional level those functions which the Corps separates

between its division and district offices. The Park Superintendents, who report to their respective

Regional Superintendents, manage all visitor center, recreation, interpreti',e, historic preservation,

and O&M functions at a given park.

(2) Visitor Cent=. It is the policy of the Corps to plan, develop, manage, and operate visitor

centers at water resource development projects. According to ER 1130-2-401, visitor centers are

intended to educate and inform the public with regard to the history and mission of the Corps, its

IV. ASSESSMENT& ANALYSIS OF CURRENT PROGRAM -Page 86
S "1D1Y V 'ONDUCTAND FINDINGS

role in water resources development, the project, its purpose, benefits, and costs. Visitor center

facilities are classified as Type A Regional Visitor Centers, which are the largest and can only be

authorized by Congress; Type B Project Visitor Centers, which can be authorized by legislation,

cost-sharing, or the division commander; or Type C Visitor Information Centers, which are the most

common and are designed as part of a new or existing project administration office. From a design

standpoint, some inconsistencies were noted. ER 1130-2-401 states that the excessive use of

windows in visitor centers unnecessarily restricts interior development of the building. Most of the

Corps' visitor centers at lock or flood control/hydropower projects have been designed, or at least

remodeled, with large amounts of window space to provide visitors with a view of ships going

through the lock, water passing through the dam gates, or fish leaping up the fishladders.

Most visitor centers are fairly n•ew or have been renovated over the last 10 to 20 years. The

Contractor found no evidence that visitor centers are seen by visitors as old or run-down; those

visited all seemed well maintained, regardlessof the ageof the project. In fact, several were assessed

by the Study Team to be larger and better equipped than one would expect for the visitor center

cl assi fication.

(3) Levels of Service. Overall, the Corps has an excellent reputation for the recreational services

and programs it provides. Many visitors, young and old, were observed listening intently as rangers

told the Corps' story and its relationship to the environment and to their lives. Even during the

middle of the winter, one or two recreational vehicles could be found in most of the recreational

areas visited by the Study Team.

Operating season calendars for Corps' recreation projects are typically set by project management in consultation with the district's Natural Resources Management Branch. The number of

days recreation areas are open annually is directly affected by the funding available to operate and

maintain the facilities. This is manifested in the number of O&M staff positions that can funded

during the months of lowest visitation, given the need to conserve FTE's for the busy summer

months. Project staff attempt to provide the highest level of services possible throughout the year,

within funding limitations.

Many projects do not provide campground staff during the October through March period, but

leave all or some of their campgrounds available for primitive camping at no charge. This is

especially popular in those regions where winter hunting, fishing, and cross-country skiing are

popular sports, and in those areas where winter temperatures occasionally rise to a moderate level.

While no fees are generally charged during the winter months to campers using self-contained

recreational vehicles or to those utilizing pit toilets, rangers or O&M staff must still pick up trash

and make inspections of the facilities on a regular basis. Operating hours are also influenced by the

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S7UDY CONDUCT AND FINDINGS

funding available to staff visitor centers, offer tours, and conduct evening campfire programs and

security patrols. The length of coverage each day must be balanced within the total number of FTE

allocated to the project for the entire year. Corps' projects typically extend visitor and information

center hours, as well as increase patrols and routine tours, during the summer months.

Interpretive staff at projects provide excellent programs using a variety of methodologies.

Rangers and Park Technicians were observed giving lectures, conducting audio-visual programs,

leading tours, providing demonstrations, answering questions, and doing research. Overall, the

Corps' staff of rangers exhibit a high degree of professionalism and pride in their work. As a group,

they spend a great deal of time and effort developing and refining programs for the enjoyment and

enrichment of visitors.

(4) Degree of Contract Utilization. Most, but not all, Corps' projects utilize contract staff to

supplement hired labor in the performance of project operations requirements. More and more, as

available FTE must be shifted to other project priorities such as O&M of flood, hydropower, and

navigation structures, project managers are contracting for recreation area operations services.

Typical contracted services at Corps-operated parks include fee collection, custodial, grounds

maintenance, law enforcement assistance, and trash removal.

(5) Special Recreation User Fee Program. The SRUF funds projects can receive are a portion

of those funds that are collected from recreation sites which are designated as fee areas. SRUF

funds are allocated, on an annual basis (not necessarily proportionately), back to the projects from

which the funds have been collected. These revenues must be expended during the fiscal year that

they were distributed to the project, and may be used at one or all of the fee areas from which the

funds were collected. Expenditures of SRUF funds are authorized for facilities operation and

maintenance, improvements, renovations (including repair or replacement), additions, and consolidations at existing recreation areas. Corrections of sanitary deficiencies are funded separately.

Typical uses of the SRUF funds are the erection and staffing of fee collection stations at fee

campgrounds, upgrading campgrounds to higher use fee classifications, installation of electrical and

water hook-ups when improvement and O&M costs are recoverable, separation of day use and

camping areas to reduce utilization conflicts or to increase fee collections, improve existing restroom

and shower facilities, paving roads, building group use facilities, renovating sewer systems,

providing barrier-free access, and installing water fountains and fire hydrants. Project managers

with recreation area responsibilities utilize SRUF funds to the fullest extent possible. Most of the

funds, however, are used for maintenance activities rather than operations. Typically, SRUF funded

operations are limited to fee collection activities.

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STUDY CONDUCTAND FINDINGS

(6) Real Estate Activities. One of the routine duties of Corps' ranger staff is the accomplishment

of real estate-related permit actions and property inspections. Project lands are required to be zoned

according to the Master Plan for different purposes. One of the most critical and sensitive areas on

a water resource project is its shoreline. In accordance with ER 1130-2-406, "Shoreline Managemcnt at Civil Works Projects," October 1990, project staff are responsible for the implementation

of a shoreline management plan. This ER provides policy and guidance on management of

shorelines of Civil Works projects, including discussions of preparation and approval of the plan,

shoreline allocation, public participation, and the periodic review of the management plan. Other

topics discussed include the use of permits and user fees, facility maintenance, and the density of

private development. The shoreline management plan is designed to maximize the potential value,

both Federal and commercial, and the public use of the area. Operation and Maintenance is

responsible for the daily operation and upkeep of the shoreline areas and is thus affected by any

changes to this regulation or to the management plan.

(7) Boundary Surveying and Monumentation. Routine inspection, and cyclical surveying and

monumentation, of project boundaries are Corps land management responsibilities which are often

delegated to project ranger staff. The protection of Corps' boundaries is important to the security

and sovereignty of the Corps' land holdings. The Corps' goal is to survey and monument 100% of

project boundaries, unless a specific exemption to this goal has been approved by the District

Engineer. The Contractor has identified a cost-saving opportunity in this area. Project staff, in

conjunction with the district Real Estate Division, could rate sections of their project's boundary as

to the likelihood of encroachments by non-Corps' entities, i.e., other Federal, state, or local agencies

or private/commercial parties. Those segments which are contiguous with other governmental

agencies, or which have had historically low encroachment problems, could be placed on a less

frequent re-surveying and re-monumentation schedule. (The Corps could also attempt to cost-share

these tasks with neighboring government agencies with whom they share boundaries.) The project's

resources could then be concentrated on those segments with the highest frequency of encroachments.

b. Maintenance Activities

(1) Organizational Structure. As previously described, there is little consistency in the manner

in which maintenance activities at Corps' recreation areas are organized or managed. Maintenance

staff at Corps' facilities are either hired labor, contract staff, or a mix of both. Recreation area

maintenance requirements are established annually at most facilities through annual inspections,

responses to visitor or staff comments, according to project O&M manuals or Operational Management Plans, and by virtue of what didn't get done the previous year. Only a few projects were found

to use routine preventive maintenance plans for the recreation facilities, and those utilizing

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S1TDY CONDUCT AND FINDINGS

contractors for park O&M were much more likely to conduct routine annual maintenance requirements inspections. There is no consistency in the manner in which maintenance items are identified,

ordered, dispatched, tracked, recorded, or evaluated.

(2) Visit C The condition of visitor centers at Corps' projects ranges from fair to

excellent, and those that are only fair are the exception. Project staff at all levels tend to take very

good care of their visitor centers, even to the extreme in several cases. While enthusiasm and

initiative is commendable, the project's O&M program can be impacted by incremental changes to

the visitor center's structure or scope. Resources available at projects must be weighed and

monitored very judiciously by Corps' management.

(3) Levels of Service. Corps-operated campgrounds are typically well managed, safe, comfortable, and clean. The cost of providing this level of service can be significantly impacted by the

length of the operating season. Projects which provide year-round camping must provide yearround trash removal and other maintenance services. Those which close their campgrounds for

several months each year are often able to furlough some staff occupying seasonal positions or

curtail contracts.

The current and desired levels of service at Corps' recreation facilities, i.e., in terms of the

services, amenities, facilities, and maintenance provided, are open to interpretation. Across the

divisions, there are projects which have campgrounds that resemble small state parks, small "mom

and pop" commercial campgrounds, or small National Park Service or Forest Service campgrounds.

These recreation areas have the minimum amenities that would be required for safe and healthy

camping facilities: a concrete or gravel car pad, picnic table, fire ring, grill, lantern post, restrooms,

water supply, nearby trash dumpsters, some provisions for night-time security, and access to the

river or reservoir. These sites bring in the minimum amount of revenue, but are the least costly to

maintain over the years. There is not much equipment which can break, and repairs or replacements

are not expensive.

At the other end of the spectrum, there are Corps-operated parks that have been developed to

meet the needs of a higher-level camper, i.e., the operator of the large 20- to-40 foot motorhome.

The enhanced level of services at some of these facilities includes: concrete car and recreational

vehicle pull-through sites with water, electrical, and sewer hook-ups; and shower facilities. Other

facilities encountered at Corps' recreation sites included: tennis courts, baseball fields with tower

lights; soccer fields; basketball courts; canopied picnic tables; and campsite curb-side trash removal.

As discussed below, the rationale given to the Study Team for many of these improvements was

the need to keep up with commercial facilities nearby. The effect of these improvements has been

an increase in potential maintenance requirements. Repairs and replacements of individual site

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SlT'D Y CONDUCTAND I'INDINGS

water, sewer, and electrical hook-ups and other features will be more expensive than repairs to the

simpler communal water and sewer outlets. As with visitor centers, vary ing FTE and funding levels

will ultimately have an affect on the level of maintenance services that can be provided to these

upgraded facilities.

(4) Special Recreation User Fee (SRUF) Program. In an effort to make recreation as cost-effective, or cost-neutral, as possible, the SRUF program was developed to help balance income and

O&M expenditures across all Corps' districts. The SRUF funds provided to projects as a portion

of their revenue are intended to supplement the costs of operating, maintaining, and, when practical,

improving campground facilities. The SRUF program is widely publicized so that campground

users can see tangible evidence of the use of their camping fees at the projects. Those projects which

produce very little revenue due to the primitive conditions of their campgrounds often receive more

SRUF funds than they collect in revenue. Those projects having high revenue-producing campgrounds often supplement the "poorer" projects by receiving less SRUF funds than they would

expect given the revenue produced.

Project and district staff interviewed stated that revenue enhancement potential was the driving

force behind SRUF fund usage priorities, rather than using the funds for general maintenance.

Several of those interviewed stated that they felt responsible to maintain the Corps' reputation as,

in their words, "the provider of the best campgrounds for large recreational vehicles (RV) in the

country." Renovations of campgrounds, as well as the addition of utilities and recreation fields,

using SRUF fees, have been justified in the past on the basis of obtaining $1 to $2 a night more per

site or providing improved or additional campsites to attract those who might otherwise go to

commercial campgrounds. As one project manager stated in a memo outlining the project's FY

1989 SRUF work plan to the district office, "We feel that we have the greatest demand on our

facilities and as such should spend every legal dime we can generate improving our facilities."

c. Physical Assessment

(1) Campgr.gounds. Corps-operated campgrounds are in good to excellent condition. Some

provide more services than others, but the physical conditions of the tables, restrooms, and facilities

are good. Road repair requirements within recreational areas were the most common problems

observed. Changes in environmental and sanitary requirements by states continues to be a problem

for some projects. As quickly as possible, project staff are attempting to reprogram the necessary

funds from other activities to upgrade existing sanitary facilities. Erosion damage to campgrounds

due to changing pool elevations and, in some cases, poor design decisions was the next most

potentially expensive problem discussed.

IV. ASSESSMENT & ANALYSIS OF CURRENT PROGRAM -Page 91
STUDY CONDUCT AND FINDINGS

(2) PiAcnicAreas. The Corps has excellent picnic facilities. They have made attempts to blend

these sites into the natu.al landscape and to place them in areas which have a combination of shade

or shelter, playing fields, water and restroom facilities, and a good view of the river or reservoir.

Many of the projects visited had new, well designed, easy to maintain group picnic shelters.

(3) BoatRam,. The condition of Corps boat ramps depends on several key factors: climate,

usage, and pool elevation fluctuations. Those which were subject to frequent freeze/thaw cycles

were not in as good a condition as those in warmer climates. Those in the moderate or warmer

climates, however, tended to show more wear due to the longer boating seasons in those areas.

Changing pool elevations have had a negative affect on boat ramps at many projects. Heavier

maintenance and more frequent replacement is necessary at those projects where boat ramps and

parking lots are flooded on a regular basis.

(4) Restrooms/Bathhouses. There is currently a wide variety of restroom and bathhouse designs

in use at Corps' facilities. The Corps issued a set of Standard Designs for Recreation Structures in

March 1991, which are to be used in conjunction with EM 1110-1-400, Recreation Planning and

Design Criteria, July 1987. These designs have been established in order to reduce design,

construction, installation, and maintenance costs. Many of the projects have been routinely

remodeling their existing restroom facilities to improve lighting and ventilation, and tiling the cinder

block walls to reduce routine cleaning time.

4. Navigation

a. The Corps Navigation Program

The Corps operates and maintains 230 locks and dams on the nation's waterways. The dredging

function performed by the Corps also facilitates navigation, as does the maintenance of breakwaters,

seawalls, and jetties at coastal harbors. Due to the extensive expenditures associated with the

dredging program and its unique nature, a separate discussion of the dredging program is presented.

b. Maintenance

Major maintenance, major rehabilitation, and modernization tasks are performed at Corps' locks

by crews from centralized maintenance facilities and/or by contractor personnel. Four of the five

river systems visited utilize off-site Corps' support for these large work efforts. Each one of the

centralized maintenance support organizations provides a trained staff and a floating maintenance

facility. These crews are each equipped to pull and replace lock or dam gates, construct emergency

dewatering dams, repair minor concrete and timber damage, add rip-rap for erosion or scour

protection, and repair lock control equipment. For large maintenance items, such as constructing

IV. ASSESSMENT& ANAL YSIS OF CURRENT PROGRAM -Page 92
SIlVD Y CONDUCT AND "INIDINaGS

new facilities, instal ling new controls or gate actuating systems, or major concrete wall replacement,

contractor support is procured through the district office.

Those Corps' projects where the navigation system is closed periodically during the winter

utilize these periods for major maintenance of their locks. Corps' locks are dewatered on varying

rotational schedules, depending on the district, of every five to 15 years or more. Work crews

comprised of mechanics from the project and from the district's centralized maintenance group,

where available, and the projects' operations staff can typically complete the major overhaul of one

to three locks during a two-to five-week shut-down period. (Typically, during winter closures, some

of the seasonal position Lock Operators at each site are furloughed for several weeks, some assist

with maintenance on the lock where they are normally stationed, and some join the major

maintenance crew(s) at the lock(s) being overhauled during that period.) In areas where climatic

conditions, i.e., severe icing, do not force the closure of the navigation system naturally, the district

Navigation Branch and the local waterway users group together develop a schedule for lock

maintenance outages based on when and for how long the waterway shipping industry can suspend

operations.

The St. Lawrence Seaway, a major international waterway, is maintained by two separate

entities, the St. Lawrence Seaway Authority (SLSA), which operates the Canadian portion of the

system, and the St. Lawrence Seaway Development Corporation (SLSDC), which operates the U.S.

portion under the aegis of the Department of Transportation. Most major maintenance of the SLSA

locks, as well as that of the SLSDC, is performed when the chambers are dewatered each year during

the annual late December through March winter closure period. In addition to maintenance

personnel, lock operators are also utilized in the seasonal repair work, rather than being furloughed

during the winter. Examples of typical maintenance work accomplished when the locks are

dewatered during the seasonal closure period include concrete repair, painting of miter gates and

valves, and electrical/mechanical work on gates, valves, and appurtenances. Major rehabilitation

work is also accomplished during the closure period, as are inspections and measurements. Due to

considerable heavy equipment capabilities and an extensive level of spare parts, the SLSA and the

SLSDC are able to accomplish most maintenance and repair tasks in-house. The current informal

policy of both organizations is to perform work with in-house labor whenever possible; however,

if the size of the job is exceptionally large, or if specialized skills are involved, the work is contracted

out.

c._Automation

While lock control systems are being rehabilitated or replaced at several Corps' sites, automation

of the lockage process in order to reduce costs and decrease cycle times is not currently being

IV. ASSESSMENT & ANALYSIS OF CURRENT PROGRAM - Page 93
SNi/I)). t 'ONI)U( TAND FINDINGSN "

aggressively pursucd at the ('Corps' locks viitd. The potential may exist, ho)wcvco:-, to improve

lockage efficiency a.1d reduce costs at c•rtain (Corps' lo'ks. Fo:r example, thc lock nearing

conmpleci(,- a't the Blonnevil I Project may he a go,• 1 candidate fir renmote operation from the

poxv.er-house, and hand-licid lock conlrols may have applicalion at several of thc ()thcr (",rps,"' locks

visited.

During the early and mid 1980s, the S1. Lawrence Seaway Authority of(,ana'ndi reduce.d s(talling

on several of the Welland (',rnal locks by increasing the level of automation in the lock operating

process. Where each lock gate had an adjacent control system in the original design of the lock,

the SI-SA centralized control of the two gates into one lock house, thereby reducing the stafting by

one operator at each site. The SI -SA also improved radio communicalions and ship locating system s

in order to reduce transit time through the locks. During the late 199)0 sand early 9 90()s, the traffic

through the St. Lawrence Seaway has been significantly reduced and cost cutting measures are no,w

considered to he most important, even those which may increase the transit time through the locks.

d. Vessel Securini,

Procedures for securing vessels to mooring hitts during the lockage process are not consistent

from district to district. In fact, procedures are not always consistent between lock projects within

the same district. There is no consistent. Corps-wide policy which dictates whether vessel securing

is the Corps' responsibility or that of the shipper. One district visited does not provide securing

assistance to vessel operators at any of its lock project%. Verbal instructions are given to vessel

operators, but no physical assistance is provided. Other district,; visited provide securing assistance

at one or more lock faci lities. At projects where Corps' personnel maintain responsibility for vessel

securing, lock operators often handle lines, although line handler positions exist at some locks

specifically to fasten and unfasten lines to/from mooring bitts. Some projects have as many as two

line handler positions per lock, per shift, dedicated to the vessel securing process. One non-Corps'

navigation organization visited had recently provided securing assistance to vessel operators, but

no longer does so in an effort to reduce operations costs. Primary securing responsibility now resides

with vessel operators, and, as a result, the organization has been able to reduce staffing by two

positions per lock.

The Contractor suggests that significant cost savings would result from a Corps-wide policy

which places securing responsibility upon vessel operators except where the physical characteristics

of the lock or unique safety concerns necessitate Corps' personnel provide assistance. Under such

a policy, most lock projects could reasonably require securing procedures be performed by vessel

operators, thus resulting in significant personnel savings throughout the Corps.

11'. ASSESSMENT& ANAL YSIS OF CURRENT PROGRAM -Page 94
NiU "DIY (LONDI '('1 ANDf) I IDID.%

y. DUwatcrinu FrcQuency

Lock chamber dewatering frequencies were found to vary contsidrahly between districts. The

frequency at which locks were dewatered was inconsistent between all four navigation systems

visited, and there is minimal justification tfr such variance. Since lock dewaterings and associated

maintenance/inspection actions are extremely labor-intensive, and entail delays to commerce if

perlormed during the navigation season, it is critical that the minimum fre(Auency effective

dewatering schedule be employed. ER 1130-2-303 Project Operation - Maintenance Guide, Dec

1967, indicates that dewatering should take place every 10 to 15 years, but that .alt water conditions

may require more frequent dewaterings. In practice, however, the length of time between dewaterings of individual locks often varies due to many factors. In some cases, district maintenance staff

have had to meet demands which are perceived as more pressing than routine dewaterings, which

have resulted in delayed lock dewaterings. In some cases, lock chambers over 20 years old have

never been dewatered. By contrast, locks of the St. Lawrence Seaway Authority (Canada) and the

St. Lawrence Seaway Development Authority are dewatered for maintenance annually during the

three-month seasonal closure period, and locks of the German Federal Waterways System are

dewatered at five-year frequencies along critical-designated waterways, and at eight-year intervals

along non-critical navigation routes.

The Contractor suggesLt that all locks be dewatered on a regular muiti-year schedule. An

example would he to have critical locks dewatered every 10 years and non-critical locks dewatered

every 15 years or, where special circumstances exist, on approval of HQUSACE. Dewatering all

locks on a regular schedule would provide consistency between Corps' projects, and would lead to

standardization of what maintenance tasks are performed during each dewatering. In addition,

advanced planning would facilitate the scheduling of manpower and acquisition of parts and

materials. The shipping industry would also be able to better plan their tow schedules if they knew

in advance when particular locks are scheduled for closure.

f. Bank Stabilization

The purpose of the Corps' bank stabilization program is to protect shore lines and river banks

through prevention/reduction of erosion. This is accomplished in several different ways, depending

on the physical characteristics of the body of water. Construction of jetties, groins, and breakwaters

-ire common ways to protect shore lines. Riprap is often used to stabilize stream and river banks.

The pri mary method of bank stabilization used on the Mississippi River is to sink, or lay, revetment

mats. Revetment mats are made of concrete, and are placed along the river banks by revetment

units. Two districts, within the same division, each own and operate one revetment unit. Operation

of revetment units is labor-intensive. There are approximately 420 crew members per revetment

IV. ASSESSMEINT & ANALYSIS OF CURRENT PROGRAM - Page 95
STUDY CONDUCT AND FINDINGS

unit crew, and there are three crews (one at one district, and two at the other). In each crew,

approximately 65 positions are considered critical-skill positions and are filled year round with

full-time and 50-week seasonal employees. The remaining positions are filled with temporary

employees who work only during the sinking season.

The Corps' revetment program is moving from a construction phase to a maintenance phase, as

revetment mats have been placed along the majority of the river's banks where needed. The division

plans to consolidate revetment opedtions in 1995, as the construction phase of the revetment

program is completed. At this time, the division plans to go to one revetment unit only, which will

be used to maintain the existing revetment mats. The Contractor has identified several opportunities

which can be taken to reduce operational costs of revetment units, both now and after 1995.

5. Dredging

a. The Corps Dredging Program

Dredging is the single largest O&M program in the Corps. Annual dredging expenditures

averaged $291,000,000 during the five-year period from FY 86 through FY 90. In FY 89, over 290

projects were dredged around the country, including harbors, large rivers, and other inland

waterways.

The Corps' dredging program is managed at the district level, using guidance provided by the

Dredging Section at Headquarters. ER 1130-2-307, Dredging Policies and Practices, revised June

1991, provides the principal guidance for maintenance of dredging projects. At the district level,

the Navigation Branch/Office/Section of the Operations Division is usually responsible for management of the dredging function. At many districts, the Engineering Division also has a role in

dredging management. For example, at one district which uses dredging contracts, Operations

Division staff prepare the contract plans and specifications, and perform the hydrographic surveys

for payment purposes, while Engineering Division prepares the Government cost estimate.

When procuring dredging services, a unit price contract is used by a majority of the districts.

In a unit price contract, payment is based on the volume of material dredged or the amount of time

it takes to complete the job. The volume of material removed can be calculated in two ways; the

results of pre- and post-dredge surveys can be compared, or the volume can be determined from the

number of scows or bins the contractor fills and disposes. Under this type of contract, a price is

charged by the contractor for mobilization and demobilization of the dredge, and a separate unit

price is charged for each cubic yard of material removed or each hour worked. Districts, as well as

the dredging industry, favor this type of contract because the amount of payment closely reflects

the amount of work accomplished.

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STUDY CONDUCT AND FINDINGS

Dredging is accomplished by Corps-owned dredges as well as contract dredges. Public Law

95-269 states that the Secretary of the Army "may retain so much of the federally owned fleet as

he determines necessary, for so long as he determines necessary, to insure the capability of the

Federal Government and private industry together to carry out projects for improvements of rivers

and harbors." The Corps' minimum dredge fleet includes four hopper dredges, one pipeline dredge,

three dustpan dredges, three sidecaster dredges, and one special purpose dredge. These dredges are

operated and maintained by the Operations Divisions of eight districts.

b. The In-house Hopper Dredges

A Corps study, entitled "Analyzing the Corps of Engineers Dredge Fleet", was completed in

July 1991 by the Engineer Studies Center. This study addressed, in detail, industry and Corps'

capability with respect to workload, and the cost-effectiveness of Corps' dredges compared with

industry. The study also addressed the need for a "federally owned fleet ... to perform emergency

and national defense work." A decision was made to revise the study after numerous questions and

comments were received from Corps' districts. As of the date of this analysis, the study was still

under revision.

Since 1978, the dredging industry has grown in size and capability, particularly in the field of

hopper dredging. There is currently an agreement between the dredging industry and the Corps of

Engineers that the Corps will limit the use of its own hopper dredge fleet to 920 days per year, or

an average of approximately 230 days per hopper dredge. This allows industry an opportunity to

do a significant portion of the Nation's dredging work, which helps sustain the dredging industry's

base.

The National Association of Dredging Contractors' (NADC) report, "Analysis of the Arm)

Corps of Engineers Minimum Dredge Fleet Requirement", June 1991, shows that the cost per cubic

yard is higher for Corps' hopper dredges than for industry dredges; sometimes by as much as

two-thirds. Corps' personnel stated that the data in the report is skewed because of the different

types of dredging jobs performed by Corps and industry dredges. However, while there is some

validity to this statement, data collected by the Study Team support the NADC's basic conclusion.

The 230-day ceiling does not allow for optimal utilization of Corps-owned equipment or

generation of competitive Government dredging rates. It is unlikely that industry would agree to a

renegotiation of the 230-day ceiling for Government hopper dredges. In fact, the dredging industry

would like to see this ceiling lowered. One alternative which would increase equipment utilization

and decrease costs is to eliminate one Corps' hopper dredge from the minimum fleet and redistribute

the 230 days worked each year by this dredge to the three remaining Corps' hopper dredges.

Nationwide, there would be no change in total working days for Corps' hopper dredges. In those

IV. ASSESSMENT& ANALYSIS OF CURRENT PROGRAM - Page 97
STUDY CONDUCT AND FINDINGS

districts where the number of working days would be increased, the daily rental rate for the dredge(s)

would decrease, resulting in estimated annual savings between $7.5 and $10 million Corps-wide.

"This action would leave the Corps without in-house hopper dredging capability in one area of the

country, and there is concern among districts that a situation like this would allow industry prices

to escalate. However, the potential savings are too great to let these concerns negate further

investigation of this option.

If one dredge were eliminated, the most cost-effective course would be to cease operating a

dredge from a district which only operates one hopper dredge. This would make it possible to

eliminate all costs associated directly with the dredge, including labor and operation and maintenance costs, as well as costs associated with the support staff at the district office. At each of the

two districts that own one hopper dredge, over 60 FTE are associated with operation and maintenance of the dredge.

c. Hydrographic Surveying

Hydrographic surveying is a major element of the dredging function. The surveys are used to

monitor channel conditions, to determine the extent of shoaling, and to determine the amount of

material removed during dredging operations. The quality and timeliness of surveys is crucial to

effective channel maintenance. Project condition surveys and reconnaissance surveys are employed

for the purpose of monitoring channel conditions. ER 1130-2-307 requires that project condition

surveys be performed annually on all projects dredged annually, and that reconnaissance surveis

be performed annually on those projects dredged less than annually. However, it may be possible

to perform reconnaissance surveys in place of many project condition surveys. Reconnaissance

surveys are quicker than project condition surveys and, therefore, less expensive. The Contractor

suggests that, rather than requiring districts to survey all projects annually, using either reconnaissance or project condition surveys, the level of survey detail and frequency of survey performance

at a project be based on the frequency of project dredging, the level of project utilization, and project

traffic type.

Reconnaissance surveys are not as accurate or detailed as project condition surveys, and may

not detect all shoals. However, as technology advances and the use of "sweep" type surveys

becomes more prevalent, the quality of reconnaissance surveys should improve. Under current

operating procedures, the Corps is incurring costs for performance of hydrographic surveys that

may not be essential and for detail that is not always necessary. The suggested guidance provides

a method for districts to decrease the cost of hydrographic surveys, while continuing to maintain

knowledge of current channel conditions and changes in these conditions.

IV. ASSESSMENT & ANAL YSIS OF CURRENT PROGRAM - Page 98
STUD Y CONDUCT AND FINDINGS

d. Impacts of Increasing Environmental Restrictions on the Dredging Program

Federal, state, and local environmental restrictions, or "windows", are playing an increasingly

larger role in the management of the dredging function. Environmental windows are usually

enforced to protect species which may be migrating through an area, or nesting/mating in the area

during dredging operations. For example, in one district dredging is not allowed between November

and March because of white whales, manatees, and turtles in the area. In this same district, dredging

is not allowed between March 15 and May 31 because of striped bass in the area. At another district,

dredging is not al lowed within 500 feet of an oyster bar between April and September, and between

December and February. At a third district, disposal of dredged material on beaches is restricted

from November 1 to May 14 because of turtle nesting. Many districts sponsor an annual meeting

with local resource agencies to discuss the environmental windows and their impact on upcoming

dredging requirements and the anticipated dredging schedule. These meetings have been very

successful in improving communication and enhancing the working relationship between the Corps

and other agencies.

The Corps, in accordance with Section 401 of the Water Pollution Act and Section 307(c) of

the Coastal Zone Management Act of 1972, must seek water quality certification, and in some cases

coastal zone consistency, from a state before dredging and disposal operations may begin. In order

to obtain these documents, the Corps must test the dredged material and the material at the proposed

disposal site, in accordance with the Federal standard, defined in 33 CFR Section 335.7. However,

because the Federal standard is not interpreted and applied consistently throughout the Corps, a

problem arises when the material testing requirements imposed by the state agency(s) exceed those

required by the Federal standard.

33 CFR Section 337.2 states that, " if the state agency imposes conditions or requirements which

exceed those needed to meet the Federal standard, ... the district engineer will accommodate the

state's concerns to the extent practicable." However, the Section also states that additional testing

requirements requested by the state, which exceed those requirements specified by the Federal

standard, shall be funded by the state agency. Section 337.2 further states that if the state will not

fund the additional testing, and "denies or notifies the Corps of its intent to deny water quality

certification or coastal zone consistency, the project dredging may be deferred." Some districts

have chosen to defer dredging in these situations until additional funding is provided or the

additional testing requirements are withdrawn. However, the Study Team is aware of at least one

district that has agreed to perform tests which exceed the Federal standard. The annual costs for

this testing, which is requested by the local government, are in excess of $50,000, and the number

and costs of tests requested is increasing. The local government has refused to issue water quality

certification unless the Corps meets the requirements, but has not agreed to pay for the additional

IV. ASSESSMENT & ANALYSIS OF CURRENT PROGRAM- Page 99
STUJDY CONDUCT AND FINDINGS

testing. The district has determined that funding the additional tests is working to "accommodate

the state's concerns to the extent practicable."

Districts must interact with the local community daily. Currently, each district sets its own

policy regarding performance and funding of testing/tasks beyond what is required by the Federal

standard. This policy allows each district the flexibility to respond to the situation in the local

community and to the varying degrees of environmental concern. Every district stated that rising

public concerns about the environment are increasing the amount of material testing required.

Because environmental regulations are more strict in some areas of the country than others, the

degree to which this impacts each district's operations varies throughout the country. Regardless

of these variations, however, a decision must be made as to what the Corps of Engineers' position

will be with respect to application of the Federal standard.

It is difficult for one district to justify deferral of dredging when another has agreed to incur

additional expense to meet requirements imposed by the state for water quality certification and

coastal zone consistency. The first district may then appear to the public to be unconcerned about

the environment, and unwilling to compromise. Alternatively, there is the problem of a district

trying to justify incurring additional expenses, when other districts are deferring dredging. Lack of

a Corps-wide policy also encourages non-standardized funds expenditure.

The Contractor suggests the following guidance be provided: "Districts shall not exceed the

Federal standard for testing of dredged disposal material, unless the state agrees to fund additional

requirements".

D. PEER COMPARISON

Two key areas of comparison between the Corps and other non-Corps' organizations are worth

noting. They are: (1) the great extent of centralized O&M program management in non-Corps'

organizations and (2) centralized allocation of extensive resources, authority, and responsibility to

operating (field) personnel, both of which run contrary to current trends within twe Corps. The

Corps is evolving in a direction contrary to current management theory and diametrically opposed

to the trend in other Federal and non-Federal entities with similar missions. In today's world of

increasingly expensive technologies, increasing reliance on information systems, and greater

interdependence, an organization which consists of 36 related entities, each of which sets its own

standards on information systems, workload tracking, and organizational structure -- while building

ever-increasing levels of internal review -- will find it very difficult to become, or remain,

cost-effective.

IV. ASSESSMENT& ANAL YSIS OF CURRENT PROGRAM- Page 100
STUDY CONDUCT ND FINDINGS

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT

This chapter presents the Contractor's preferred options for improving the program in those

areas previously discussed. The options will be grouped into High impact, Short-Term and

Long-Term plans. Additionally, the options are separated into Programmatic, General Project

Management and Functional Area categories. The options presented will have a significant impact

on the Corps O&M program by improving the overall management of the program, decreasing the

cost of providing services or improving the level of service.

A. HIGH IMPACT PLAN

The following is a selection of the most significant issues and optiops. These issues show the

highest potential for large savings or program improvements, and are generally multifunctional.

The Contractor estimates the cost of implementing the High Impact Plan to be about $8.5 million.

1. Programmatic

"* Corps' projects and districts have varying interpretations of baseline work items. Similar

projects between districts have significantly different levels of baseline staffing and resources.

Examining the baseline requirements for each non-dredging Corps' O&M project would

provide the basis for guidance of a consistent and equitable baseline rewuirement for all

non-dredging O&M projects.

" The current programming practice includes allocation of a fixed amount of funds to each

district each year for variable work items. Allocating funds for periodic and non-recurring

work items on the basis of Corps-wide priority would maximize the efficiency of the

allocation of resources for variable requirements.

" Funding for dredging projects out of the same fund as other projects allows the funding

volatility of dredging projects to impact upon the remainder of the program. Separating the

iunding for dredging projects would allow the Corps to take advantage of the relative stability

of the funding requirements for non-dredging projects in planning and executing the program.

" The funding level matrix includes guidance which is inconsistent with current practice and

does not provide sufficient clarity for consistent interpretation. Providing clarification,

including expanded definitions to augment the one- or two-sentence matrix descriptions to

bring them in line with current ftnding practices, will enhance conformance to Corps'

guidance and improve the consistency of budg.-t submittals.

V OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 101
STUD Y CONDUCTAND FINDINGS

"* There is no detailed mid-range planning performed with respect to specific periodic and

non-recurring work items. Preparing an annually updated, detailed five-year projection of

these requirements would improve funding allocation decisions.

"* The impact of new programs and policies may not be well understood since it is often difficult

to isolate and identify costs. Requiring identification of all new funding demands over

$25,000 that result from new program requirements would allow such requirements to be

revisited to ensure that the cost of new requirements does not outweigh the beneficial effects,

and that resource conflicts with existing programs are identified.

"* The interim BY budget submittal, and subsequent work allowance request, are not held to the

same level of review as the original BY budget submittal (President's Budget). Applying a

parallel level of review to these interim submittals (or performing random audits) would

ensure that all changes to the O&M program during the period between Congressional

approval and the start of the Budget Year are justified and in accordance with Corps' guidance.

" Monitoring expenditure and obligation goals may influence Corps' managers to make

inefficient expenditure decisions to meet these goals. Eliminating these goals could allow

managers more flexibility to make sound expenditure decisions.

" Current expenditure recording practices may not achieve the desired level of accuracy.

Providing additional sub-FCCs and accounting element definitions and/or clarifying existing

definitions so that all activities are accounted for; clarifying timekeeping regulations; and

performing random periodic audits of recorded expenditures, would provide for improved

accuracy in the recording of O&M expenditures.

" The current presentation of the O&M budget request may not provide the most effective

format for justification of the program. Providing additional summary detail of the division

and Corps-wide requirements for baseline (fixed), variable, and dredging requirements would

provide the reviewer with a better understanding of the Corps' funding requirements, and

would allow the Corps the opportunity to highlight successful management and cost containment practices related to each program component.

" The condition of many Corps' structures has deteriorated due to the inability of these projects

to fund for major maintenance and rehabilitation out of the annual O&M appropriation.

Implementing a recapitalization program for those projects with significant structural features, possibly with funding partially provided by external users, would eliminate much of

the unaccomplished major maintenance and rehabilitation requirements.

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 102
STI 'D' YCOANDUCT AND FINDINGS

2. General Project Management

"* Labor is being charged inconsistently to technical indirect accounts, impacting technical

indirect overhead rates and making cross-district comparisons difficult. Reducing the emphasis on overhead rates as a measure of productivity and, instead, concentrating upon an

analysis of overhead functions, overhead organizations, and total cost per output would

providc a more meaningful assessment of overhead costs and facilitate more accurate cost

comparisons between districts.

"* To improve current performance indicators and cost prediction models, cost-to-output

performance models should be developed. Such performance models have potential as

predictive and monitoring tools for costs associated with O&M functions.

" No formal Corps-wide system exists for the regular identification and tracking of unaccomplished maintenance and repair (UMAR). Establishing an annual reporting procedure for

project UMAR would reduce the possibility of critical maintenance requirements being

overlooked, provide valuable information for monetary and personnel resource allocation

decision-making, and provide better documentation of funding requests.

" Corps guidance on organizational structure for O&M field organizations should be updated

and enforced to reduce management layering and staffing. The guidance would describe the

ideal project, area, and district office organizations, based upon the critical factors (size,

mission, etc.) affecting Corps' districts.

*New guidance on defining, ordering, tracking, dispatching, and managing work orders, to

reflect modem public and private management practices, should be developed. This would reduce

O&M costs over time, improve work flow, and ensure consistency between project policies.

3. Functional Area Specific

" Some visitor center facilities exceed the size, scope, and staffing criteria for the type of center

authorized. Down-sizing facilities where expansion was not or cannot be justified could

potentially reduce resource requirements. Further, projects could be required to submit plans

and justifications to HQUSACE prior to enlargement of visitor center size or scope, to ensure

effective utilization of resources.

" Special Recreation User Fee (SRUF) funds are being used to enlarge, as well as improve,

existing facilities. A policy should be issued that SRUF money be used first to offset O&M

costs, and only secondly to enhance the level of service. SRUF funds should be withheld

until districts provide written justification showing maintenance impacts as well as level of

service benefits.

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 103
STUDY CONDUCT AND FINDINGS

"Hydrographic surveys are required annually at all Corps' dredging projects. The level of

survey detail, frequency and performance should be related to the frequency of project

dredging, the level of project utilization, and project traffic type. This would focus funding

and resources on those projects of economic importance to the region and Nation, and projects

requiring the most maintenance. This would also reduce annual hydrographic survey costs.

" Operation of revetment units is labor and equipment intensive. Modification of current

operating and scheduling procedures would significantly reduce crew sizes and equipment

requirements.

" The number of potential operating days for Government-owned hopper dredges is currently

restricted, thus limiting the cost-effectiveness of this equipment. One hopper dredge could

be eliminated from the Corps' fleet, allowing the remaining dredges to increase annual

operating days. Further, a reduction of one dredge would allow for elimination of all

operation and maintenance costs associated with the dredge, including equipment and hired

labor.

" The Federal standard for testing of dredged material for disposal is not interpreted and applied

consistently. The Corps should adopt a standard policy that testing of dredged material, in

excess of the Federal standard, will not be performed unless additional funds are provided by

non-Federal sources. A standardized policy will ensure Federal funds are spent consistently

from project to project.

" In certain cases, remote operation of hydropower plants can result in significant operations

cost savings, without compromising safety or project integrity. No standard Corps-wide

policy exists, however, for determining when remote control operation of power plants is

justified. Standard guidelines should be established, and plants converted to remote operation

where practical and cost effective.

B. SHORT-TERM PLAN

Following are the Contractor's preferred options for short-term improvement of the program.

These options would create significant advantages for improvement but would have less programmatic impact, as a group, than the High Impact Plan. The Contractor estimates the cost of

implementing the Short-Term Plan at about $7 million.

1. Programmatic

* Decrease the amount of detail required in the baseline budget submittals, to reduce the amount

of resources required to prepare, process and review the submittals.

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 104
STUDY CONDUCT AND FINDINGS

" Develop separate programming policies for dredging projects to better manage the volatility

of the dredging program and to increase the efficiency of programming.

" Issue guidance on how to estimate the budget amount for individual dredging projects, which

would decrease the variance between budget and expenditures for the dredging program.

" Implement a contingency fund for dredging projects at the HQ level to provide for a greater

diversification of the risk of funding shortfalls, and to reduce the risk of funding shortfalls

due to cost overruns.

" Implement a contingency fund for emergency requirements at the HQ level to provide for a

greater diversification and reduction of the risk of funding shortfalls.

"* Maintain the current minimum cost threshold for major rehabilitation funding.

"* Adjust the transfer limit for the O&M, General, account to increase the flexibility to reprogram

funds for relatively small projects.

" Use the current work allowance schedule as the base for monitoring expenditure and

obligation goals for the Command Management Review. This would encourage field

personnel to yield excess funds and decrease pressure to make inefficient funding decisions

to meet stringent obligation and expenditure goals.

2. General Project Management

" To improve the timeliness, cost-effectiveness, and control of the small item procurement

process, establish new procurement request authority limits for Area/Resident/Project Engineers/Managers. The individual limits could be based on the size and scope of the project(s)

managed and the process for determining the limits would be consistent across districts. The

funding verification process could be accomplished by project staff, which could eliminate

an entire step in the district-level request approval process.

" Logistics Management (LMO) and Information Management (IMO) offices are imposing

additional control mechanisms on Corps' project staff. The increased controls, coupled with

limited communication between projects and the LMO/IMO offices, detracts from the

operational effectiveness of the project. Concentrate performance of LMO and IMO interface/liaison duties into an existing Operations Division position. This will provide Operations

with a single point of contact for all LMO/IMO issues.

" Implement a quarterly or semi-annual O&M newsletter to increase the exchange of useful

O&M information relevant to Corps-operated structures and facilities. Practical tips and

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 105
STUDY CONDUCT AND FINDINGS

techniques could be shared, as well as information on innovative technologies and new

methods for the allocation of scarce resources.

" Data cannot be easily shared between field activities due to software incompatibility. Set

file/data compatibility standards for all types of software, and allow divisions to set individual

purchasing policies. This will increase data compatibility within divisions, ensure consistent

support within divisions, allow for simultaneous upgrades to software, and possibly allow for

limited volume discounts on software purchases.

" Establish new Feature Cost Code sub-features to improve the tracking of facility maintenance

and repair vs. additions/enhancement activities Corps-wide and between districts. For

example, there could be separate sub-features which would allow for tracking maintenance

and repair at non-SRUF recreation facilities (629.11) and SRUF recreation facilities (629.91),

and another set for tracking additions or improvements at non-SRUF facilities (629.12) and

SRUF facilities (629.92). In both cases, the decisions to fund routine O&M activities would

be made separately from those to fund recreation facility additions and improvements.

" To increase Corps' maintenance staff productivity, change the current Compressed Work

Week policy to allow the Project Manager to restrict the use of compressed work week

schedules for maintenance staff to those months when there is daylight available for all or

most of the extended work day. This would reduce the need for maintenance staff to work

during the morning or afternoon dark hours, which is a safety hazard.

" Provide all division and district offices with electronic versions of the most up-to-date

regulations to increase field staff understanding of current Corps' policies, rules, and

regulations. The district staff could provide hard or electronic copies of these policies, rules,

and regulations to project staff with information on how the division/district interprets them

operationally.

" Enforce HQ policies regarding distribution of rent and ADP to technical indirect and G&A

costs. Districts currently use varying methods of distributing these costs.

" HQ centralized expenses that are charged tu every district should be distributed based on

direct labor before the effective rate is applied. Currently, differences in district effective

rates unduly affect those districts with higher effective rates.

" Limit the digitization and updating of project structural drawings to new or frequently used

drawings, to cost-effectively use Computer-Aided Design and Drafting (CADD) equipment

by districts and some projects, The process of digitizing and updating drawings is expensive

and labor intensive; the Corps' resources in this matter should be directed to those drawings

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 106
STUDY CONDUCT AND FINDINGS

which have the highest value in terms of frequency of use. All new project "'as built"

drawings should be developed and updated using the CADD equipment.

o Develop and implement a Corps-wide project maintenance inspection program to establish a

comprehensive maintenance planning and funding program. The ability to compare the

maintenance funding requirements from district to district, and the status of project conditions,

would be greatly enhanced by issuing inspection checklists, or standards to be used in

district/project-developed checklists, to be completed and submitted by all Corps' projects

annually. The summaries of the inspection reports would provide HQUSACE with the

information necessary to make cost-effective funding allocations, as well as provide detailed

background information for use when developing requests for maintenance funding.

3. Functional Area

"* Establish guidelines for developing vessel-securing procedures for Corps-operated locks to

reduce vessel operator confusion mad, potentially, lock staffing requirements. Standardized

procedures would increase the operational consistency between locks, which should be

helpful to both the shipping industry and recreational boaters. At some locks, a policy to

require vessel crews to secure their own vessels in the lock chamber could reduce staffing.

"* To reduce seasonal staffing costs, install alarms and fences around cold climate locks rather

than staffing them with full-time Corps' personnel 24-hours a day during seasonal lock closure

periods. The potential savings, for example, of over $390,000 per year in staffing costs in

one district would quickly repay the one-time cost to install alarms and fences at locks in that

district.

" For projects that are dredged intermittently, (i.e., less than annually) and lack commercial or

military traffic, require surveys every two to three years, rather than annually. Districts are

currently required to perform hydrographic surveys of all projects annually, regardless of

project utilization. The suggested guidance will provide a consistent method for prioritizing

surveys, and will reduce survey costs at selected projects.

" Current policy places priority on who (in-house or contract staff) performs hydrographic

surveys for payment purposes, rather than on performance of quality surveys at the lowest

cost. The Corps should develop a policy which specifies the level of quality or standard that

each hydrographic survey must meet, to encourage the use of the most cost-effective method.

" To ensure that the most cost-effective inspection method for hydrographic surveys is used,

revise current guidance to state that a Government inspector will be placed on board the

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 107
STUDY CONDUCT AND FINDINGS

contractor's vessel during survey performance, unless a resurvey of 5% of the area by an

in-house crew is more cost effective.

" Manage hydrographic survey equipment, in-house survey crews, and hydrographic survey

contracts from Operations Division. The organizational location of these functions is

currently not standardized throughout the Corps. Centralization of management in Operations Division will improve efficiency, increase scheduling flexibility, and allow for more

efficient utilization of resources.

" To increase survey equipment utilization and provide more incentive to reduce operating and

maintenance costs, mandate the use of the Revolving Fund for hydrographic survey equipment procurement, thereby eliminating project-owned equipment. Establish a standard stock

level for hydrographic surveying equipment to reduce stores of excess equipment at districts,

and decrease equipment tracking and maintenance.

"* Require that costs for all hydrographic surveys be charged to multiple sub-features within

Feature Cost Code (FCC) 607, Survey, Study and Inspections, to ensure hydrographic survey

costs are consistently charged to the same FCC, and to allow for more accurate accounting

of survey costs. All costs will be captured under one FCC, yet it will still be possible to

separate costs for different types of hydrographic surveys.

"* Develop a standard hydrographic surveying software package for all districts, to reduce

duplication of effort at the district level and reduce software maintenance costs.

"• Improved management and scheduling of in-house resources will decrease the operating costs

of in-house dredges. Make labor from private temporary agencies and local labor halls

available to dredge crews on a short-term basis, and on short notice. This will increase

equipment utilization and crew productivity. Additionally, to ensure cost-effective scheduling, perform a cost analysis for each dredging job which is outside of a crew's normal duty

area, to determine if it is more cost-effective to transport the crew home for each leave period,

or to pay the crew per diem to stay at the job site during the leave period.

" Districts maintain specialized dredge equipment, which in some cases is rarely used. Furthermore, maintenance practices are not standardized, which may lead to over- or under-maintenance of dredge equipment. To reduce equipment maintenance costs, discontinue

maintenance of dredge equipment which is rarely or no longer used. When practical, remove

equipment which is no longer used, or replace it with equipment which will improve operating

efficiency. Additionally, reduce cycles of "cosmetic maintenance" and eliminate the requirement to maintain Corps' dredges in accordance with military specifications.

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 108
STUD Y CONDICT AND FINDINGS

"To improve lock monitoring and increase vessel and personnel security, install closed circuit

television (CCTV) units at selected locks. The use of CCTV cameras can improve the lock

operators' ability to observe vessel positioning in the lock, prevent or respond to accidents

or attempted theft of Corps' equipment, and monitor the functioning of lock filling/emptying

mechanisms. Installation of these camera systems also carries the potential for a future

decrease in staffing requirements.

" Procure multiple sets of large, installed equipment items separately from instailation when it

is more cost-effective to ensure equipment standardization between several similar projects.

This practice can increase parts and equipment interchangeability from site to site, and,

therefore, the sharing of resources, which reduces the number of different items which must

be purchased and stored at each location.

" To decrease training and repair time, and spare parts inventory levels after major maintenance

or rehabilitation efforts, procure multiple sets of large, installed equipment items separately

from installation when it is more cost-effective or to ensure equipment standardization

between similar projects.

" To increase the consistency and cost-effectiveness of major maintenance activities between

districts, dewater all locks on a regular multi-year schedule. Competition for major maintenance funding cannot be eliminated; by establishing guidelines for a specific dewatering cycle

and then scheduling each district accordingly, the distribution would be equitable over the

course of each multi-year cycle.

" Convert unskilled laborers and personnel in non-power trades, who work in power plants,

from the local Power Trades wage classification to the local Department of Labor Wage Grade

scale classification. Since these individuals are not performing the operation and maintenance

of power plant equipment, they should be placed on the same pay scale as other non-power

trades personnel.

"* To more effectively measure power plant performance, compare the amour.t of power

produced vs. the amount requested as well as the other current performance measures.

Assessing performance based on availability of the plant causes Project Managers to ineffectively use overtime to quickly accomplish repairs, regardless of the immediate need for the

unit.

"* Conversion of spillway gates may be cost effective for remote locations or where climatic

conditions hamper manual gate change'. The current practice of evaluating this type of

decision on a case-by-case basis should continue.

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 109
STUDY CONDUCT AND FINDINGS

"* Develop a new "project brochure" format. Rather than expend resources at each district to

develop a new brochure format, all districts could develop individual project brochures based

on a single, professionally developed format. Allow marketing efforts beyond the "approved" brochure format, community involvement, and other traditional forms of public

awareness activities only at significantly underutilized projects.

" Clarify the current regulation concerning district policies on rewards for volunteers. To

ensure safety and effective utilization of volunteers, projects should submit lists of potential

volunteer duties to the district Safety Officer for review and approval.

" To simplify the reservation process, consolidate all campground reservation requests through

a single phone number -similar to that of the National Park Service. A centralized reservation

service is seen as a public service, can enhance revenue, and would take some of the burden

off individual project clerks or fee collectors.

" Change ER 1130-2-400 to require 100% re-surveying/re-monumentation only of boundary

lines contiguous with private, commercial, or local government owned/leased land. Boundary lines between Corps and other Federal lands should only be re-nionumented every four

years, and efforts should be made to cost-share the work with the adjacent agencies.

" To reduce the cost of boundary inspections Corps-wide, change ER 1130-2-400 to require

boundary inspections bi-annually for projects built after 1971 and tri-annually for projects

built before 1971. Due to changes in Corps fee land acquisition policies over the years, some

projects have fee lands extending much farther out from the reservoir pool than do others.

C. LONG-TERM PLAN

The Contractor's preferred options for Long-Term improvement of the program are presented

in the following paragraphs. These options would have less programmatic impact than the High

Impact Plan and would require a longer implementation time than the Short-Term Plan. The

Contractor estimates the cost of implementing the Long- Term Plan at about $20.5 million.

1. Programmatic

"* Implement a non-appropriated trust fund to provide an additional source of funding for

recreation-related and natural resource work items.

"* Standardize budget development formats and practices by developing a PC format for

project/organization budget development to allow for automated budget entry into ABS at

the district level.

V OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 110
STUDY CONDUCTAND FINDINGS

2. General Project Management

"* Combine like services at nearby projects and recreation areas under multi-project or multi-site

support contracts. Some project personnel manage over 25 different custodial or groundskeeping contracts for the same project. Custodial, grounds keeping, fee collection, or minor

maintenance contracts currently managed separately at projects within close proximity could

be combined and managed as single contracts by fewer staff and at lower cost.

" To reduce project O&M costs, improve the level of service, and increase interdistrict

comparability, develop specific Corps-wide Service Contract Guidelines for use at all

projects. These guidelines could help districts choose the most cost-effective contract

instrument for use with each type of service for which a contract is desired.

" Develop indefinite-quantity repair contracts for maintenance services to reduce the time to

procure services. Once established for a variety of equipment systems at each project, these

contracts can be utilized on a short-notice basis at previously established rates.

" Develop project-specific minimum and maximum stock levels as part of the ERGO inspection

process. The level of containment materials to be kept on hand should be related to the types

and risk level of the hazardous materials currently stored at the project.

" Develop a centralized system for recording and maintaining data on Corps' projects. Databases containing project information are developed by different organizations at Headquarters, and, as a result, are inconsistent. Furthermore, there is no single Corps-wide system

which provides access to all project information.

" There are over 300 forms and reports which must be submitted by projects to various Corps,

Army, and non-DoD Federal agencies. Few of these are automated, and require a great deal

of manual effort to complete. Require that district, division, and Headquarters elements

requesting recurring reports provide an electronic format for the project's response and

provide projects' with electronic copies of all appropriate Corps and Army forms.

"* Develop a formula for determining the equipment requirements for a project based on project

size, needs, and purpose to determine the amount of heavy (i.e., engineering or construction)

equipment that should be owned by individual projects, In addition, exph -e the cost-effectiveness of leasing the required equipment from the revolving fund equipment pool rather

than continuing project ownership and maintenance.

"* Revise ER 1130-2-304/303 in a manner similar to ER 25-345-1, and require all projects to

begin development of updated project O&M manuals. Revisions to current manuals should

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page III
STUDY CONDUCT AND FINDINGS

include specific O&M procedures and policies, equipment inventories, operating instructions,

technical specifications, and information on staffing requirements.

" To improve the cost effectiveness of O&M support from technical divisions, Operations

Divisions and technical divisions should agree, in advance, on what level of O&M support

is needed. The agreement should resemble a Fixed-price contract wherein a specific cost of

support is agreed upon in advance. If O&M support can be obtained from outside contractors

more cost effectively than from technical divisions, then Operations Divisions should have

the option to do so.

" The Corps should require a division-by-division analysis of centralized non-management

functions performed for the entire division. If support could be provided more cost effectively

from other sources, then districts should have the option to utilize alternative sources.

" Implement guidance requiring all field units to use a set of standard data, file, and report

specifications in the development of automated maintenance management systems. Most

locally developed automated maintenance management systems in use or under development

by Corps' districts and projects are not compatible with regard to data collected, reports

generated, hardware, or software. Standardization would allow HQUSACE to compare

maintenance workload and outputs between projects or districts.

" Establish centralized maintenance organizations, where practical and cost-effective, within

each district or to serve more than one district, which could reduce maintenance staffing and

costs at each project. A set of single function (lock, power plant, or recreation) crews or one

multi-functional crew could be staffed, and would be responsible for major maintenance

throughout the district. The remaining maintenance staff at each project could be reduced,

since they would only be responsible for preventive and routine minor maintenance.

" Establish a district level review process that encourages the consideration of equipment

interchangeability in routine procurement decisions. Increased interchangeability of parts

will allow projects to share resources, such as spares and trained repair personnel, and increase

operational consistency between similarly constructed projects.

3. Functional Area

"* Use longitudinal hydrographic surveying, rather than cross-section surveying, on projects

dredged by Corps' dredges which would reduce survey costs and increase surveying efficiency by 25% at select projects.

" Encourage development of better communication links between the survey vessel and the

district office to reduce the amount of time dredging contractors must wait for hydrographic

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 112
STUDY CONDUCT AND FINDINGS

survey results. Additionally, revise current guidance to state that "after dredging" surveys

must be complete and distributed within five days.

"* Adjust work schedules throughout the year to compensate for fluctuations in workload to

improve the productivity of in-house hydrographic survey crews.

"* Revise the current OPM hydrographic surveying series and increase the peak grade for

hydrographic surveyors from a GS-08 to a GS-12. At the GS-12 level, the Hydrographic

Survey Engineer could expedite the acceptance of contractor work.

"* Develop and field an automated system for collecting, analyzing, managing, and reporting

hydrographic surveying information, to increase the ability of managers at every level to

evaluate data for potential cost savings or efficiency improvements.

"• Standardize procurement of new survey vessels and transportation equipment to eliminate

excessive capability and allow for standardized survey equipment and crews. Additionally,

develop guidelines for a standard communication system aboard Corps' survey vessels and

surplus excess communication equipment currently in storage.

"* To reduce the cost of inspections, establish Five-year Periodic Inspection Team staffing

guidelines. Where practical, reduce the number of personnel from other districts or projects

participating on the teams, and, if necessary, have a smaller team stay at a project for a longer

period.

"* The use of automated dredge monitoring equipment, such as the silent inspector should not

be encouraged until the procurement of such equipment is economically feasible.

"* Administration of contracts for annual maintenance dredging is labor-intensive and therefore

costly. To reduce contract administration effort and possibly decrease contract unit prices,

combine small dredging jobs within a project into one contract, where practical. Additionally,

for annual maintenance dredging jobs, advertise a one-year i•irm fixed-price contract with

multiple option years. This will also reduce contract administration effort, while providing

the Government the flexibility to evaluate the contractor's performance on an annual basis.

" Assign responsibility for routine maintenance dredging contract preparation to Operations

Division. There is the potential for reduced contract preparation costs and centralization of

the entire dredging contract process.

" Because Corps' dredges do not have to compete with other entities for work, there is no

strong incentive to lower operating costs. To ensure that the most cost-effective service is

provided, require Corps' dredges to submit a cost estimate for each job (except emergencies)

and to compete with industry on ajob-by-job basis. An alternative is to require Corps' dredges

V. OPPORTUNI7TES FOR PROGRAM IMPROVEMENT- Page 113
STUDY CONDUCT AND FINDINGS

to submit an itemized cost estimate to the Project manager before each job and to account for

all costs charged after completing the job. This will allow for more detailed cost accounting,

and will also provide data for analyzing the effectiveness of a particular dredge at a particular

project or project type.

" Current guidance requires that justification for advance maintenance dredging include a cost

analysis. This is difficult at some projects, and the current guidance is not always followed.

Revise the current guidance and require that for those projects where it is difficult to estimate

costs and savings, advance maintenance dredging can bejustified based on historical shoaling

rates and dredging frequencies alone. However, also require that the advance maintenance

at these projects be further justified by a cost analysis within two to three years.

" Develop a standardized maintenance management system for Corps-owned dredges. A

standard, automated system will reduce manual data collection, tracking, and reporting efforts

at districts, will allow for standardized report formats, and will reduce duplication of effort

at the district level.

"* Develop material testing procedures for upland disposal, particularly biological-effects

testing. This will provide standard guidance to districts and help to reduce effort and funds

expenditures, as well as eliminate redundant efforts.

"* Install gate protecting systems in chambers of high volume/high risk lock projects. This will

protect critical navigation systems from being shut down due to gate damage inflicted by

vessels.

" Engineers who are assigned on-site at Corps' projects should design and prepare specifications for in-house or contract work items, within certain cost and functional area parameters.

Each district would establish an internal policy on the parameters, based on the experience

level of the engineers assigned to the project sites. This change would reduce the workload

on Engineering Divisions in some districts, facilitate work scheduling, and simplify the

procurement process.

" U1,4ai all Corps' project and water basin water control manuals on a 10-year cycle. The

manuals need periodic revision so that each one reflects the latest relevant water control,

environmental, climatic, and economic background data, as well as current Corps' philosophy

and flood/drought contingency plans.

" Develop a rating system for the condition of Corps-built, locally operated dams, dikes, and

levees to reduce the frequency of inspections of completed works. Flood protection projects

with excellent maintenance histories should only be inspected by Corps' staff bi-annually.

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 114
STUDY CONDUCT AND FINDINGS

Those with only fair to poor records of local sponsor maintenance would receive a lower

rating and would continue to receive annual inspections. To further reduce costs, rely more

often on Engineers at nearby Corps projects to perform annual or bi-annual inspections of

completed works which are not located near the district office.

"Develop a decision model to be used by districts for the setting of Corps-operated campground

seasons. Based on the monthly visitation (i.e., revenue potential) and the monthly O&M costs

to remain open, the model could help to determine the most cost-effective number of days

each campground should be open to the public each year.

" Develop generic lecture, campfire program, and water/hunting safety class materials through

HQUSACE and make them available to projects for off-the-shelf use. This would provide

project staff with more time for other duties, increase consistency in the level of program

quality, and take advantage of economies of scale.

"* To reduce project encroachment resolution expenses, encourage the use of non-litigative

strategies - such as selling small parcels of land up to $1,000 in value to cure minor

encroachments. While this process should be used only as a last resort before entering

litigation with a boundary line violator, it can be considered as a way of allowing the

reallocation of Ranger resources to other project priorities.

"* Issue guidance that accessibility related renovations at Corps-operated recreational facilities

are planned and executed in an organized and cost-effective manner, and should be accomplished on a limited basis. The centralization of funding decisions for accessibility related

renovations at a higher level will allow the Corps to apply its limited resources to the widest

number of projects possible.

V. OPPORTUNITIES FOR PROGRAM IMPROVEMENT- Page 115
APPENDIX A - REGULATIONS AND POLICIES- Page 116
APPENDIX A - REGULATIONS AND POLICIES

33 CFR Code of Federal Regulations, Navigation and Navigable Waters

36 CFR Code of Federal Regulations, Parks, Forests, and Public Property

AR 1-1 Planning, Programming, Budgeting, and Execution System

AR 5-4 Department of the Army Productivity Improvement System

AR 27-40 Litigation

AR 36-2 Audit Reports and Followup

AR 335-15 Management Information Control System

AR 340-18 The Army Functional Files System

AR 405-70 Utilization of Real Estate

AR 672-20 Incentive Awards

AR 690-500 Position Classification, Pay, and Allowances

EC 11-2-155 USACE Manpower-Civil Program Civilian Force Configuration and

Management

EC 11-2-157 Civil Works Budget Request for the U.S. Army Corps of Engineers -

Fiscal Year 1992

EC 11-2-159 Annual Program and Budget Request for Civil Works Activities,

Fiscal Year 1994

EC 11-8-2 Annual Program and Budget Request for Civil Works Activities,

Fiscal Year 1993

EC 37-8-1 Fiscal Year 1991 Plant Increment Rates

EM 385-1-1 Safety and Health Requirements Manual

EM- 1110-1-400 Recreation Planning and Design Criteria

EM 1110-2-410 Design of Recreation Areas and Facilities - Access and Circulation

EM 1110-2-1003 Hydrographic Surveying

EM 1110-2-1201 Reservoir Water Quality Analysis

EM 1110-2-1301 Cost Estimate Planning and D,-,fign Stages

EM 1110-2-2703 Lock Gates and Operating Equipment

EM 1110-2-3600 Management of Water Control Systems

EM 1110-2-4000 Sedimentation Investigations of Rivers and Reservoirs

EM 1165-2-102 Power in the Navigation and Flood Control Programs

EM 1165-2-106 Control of Releases from Power Plants

EM 1165-2-5025 Dredging and Dredged Material Disposal

EM 1165-2-5026 Beneficial Uses of Dredged Material

EM 1165-2-5027 Confined Disposal of Dredged Material

EP 25-1-1 Index of Publications

EP 1130-2-418 The Performance Monitoring System

EP 1165-2-1 Digest of Water Resources Policies

EP 1165-2-312 Navigation: The Role of The Corps

EP 1165-2-317 Hydropower: The Role of the Corps

APPENDIX A - REGULATIONS AND POLICIES- Page 117
ER 1-1-6 Transfer of Missions and Functions - Providing and Obtaining Support

Services

EP 1-1-8 Influencing Legislation

EP 1-1-90 Management Analysis Activities of Management Branches

ER 10-1-1 Mission and Command Organization of the Chief of Engineers

ER 10-1-2 General Policies

ER 10-1-5 Mississippi River Commission

ER 10-1-8 US Army Engineer Waterways Experiment Station

ER 10-1-16 US Army Coastal Engineering Search Board

ER 10-1-23 US Army Corps of Engineers Water Resources Support Center

ER 10-1-26 U.S. Army Construction Engineering Research Laboratories

ER 10-1-29 US Army Engineer Studies Center

ER 10-1-40 Directory Charts, Position Charts & Statements of Function

ER 10-1-42 Organization and Support of Low Workload Districts

ER 10-1-46 U.S. Army Engineer Marine Design Center

ER 10-1-48 Engineer Reporting Organization Codes

ER 11-1-27 Command Goals and Objectives Program

ER 11-1-29 US Army Corps of Engineers Peer Review Program

ER 11-2-201 Civil Works Activities Funding Work Allowances & Transfer

ER 11-2-290 Civil Works Activities - General Expenses

ER 15-1-20 Corps of Engineers Performance Review Board

ER 15-2-13 Mississippi River Water Control Management Board

ER 25-345-1 Systems Operation and Maintenance Documentation

ER 37-1-24 Operating Budgets

ER 37-2-10 Accounting and Reporting Civil Works Activities

ER 37-2-11 Financial Reporting for Multiple Purpose Projects Including Power

ER 37-2-13 Automation of Revolving Fund and Military Construction S&A Account

Reports

ER 37-2-15 Civil Budget Supporting Data - Civil Works Appropriations

ER 37-2-16 Financial Administration Civil Funds Apportionment

ER 37-2-17 Report on Status of Appropriations and Work Allowances - Civil Works

ER 37-2-18 Collection of Project Funds for Operation of Hydrologic Programs

ER 37-2-19 Civil Works Financial Management Systems Integration

ER 70-1-11 Planning, Programming & Documentation Requirements for the COE

Research & Development Program

ER 70-2-6 Identification of Civil Works Needs

ER 70-2-7 Recreation and Research Demonstration System

ER 200-202 Procedures for Implementing the National Environment Protection Act

ER 335-2-1 Waterborne Commerce Statistics

ER 335-2-5 Annual Report to the Chief of Engineers on Civil Works Activities

ER 350-2-400 Training and Development Program for Hydroelectric Power Plant

Personnel

ER 360-1-1 Public Affairs

ER 385-1-88 Safety Operating Procedures

ER 405-1-12 Real Estate Schedule/Cost and Performance

ER 415-1-11 Bidability, Constructability, and Operability

ER 415-1-14 Corps of Engineers Automated Management and Progress Reporting System

ER 415-2-3 Data for Performance Measurement System Publication

ER 415-2-11 Policies and Practices - Clearing Reservoirs

APPENDIX A - REGULA TIONSAND POLICIES - Page 118
ER 415-3-11 Post Completion Inspection and Design Criteria Feedback Inspection

ER 570-2-I Manpower & Equipment Control Civil Works Activities

ER 570-2-2 Management of Civil Functions Civilian Manpower by the Workyear

System

ER 600-1-9 Operations in the Absence of Appropriations

ER 66-2-2 Uniforms for Civilian Lock Operations and Maintenance Personnel

ER 670-2-3 Uniforms for Floating Plant Personnel

ER 690-291 Reports

ER 690-1-351 Reduction in Force

ER 690-1-965 Merit Placement and Promotion Plan

ER 700-1-1 USACE Supply Policies and Procedures

ER 750-1-1 Material Maintenance Policies

ER 1105-2-10 Planning Programs

ER 1105-2-100 Development of Outdoor Rcý_reation Facilities

ER 1110-2-1 Provisions for Future Hylropower Installation at Corps of Engineers

Projects

ER 1110-2-100 Periodic Inspection & Continuing Evaluation of Completed Civil Works

Structures

ER 1110-2-101 Reporting of Evidence of Distress of Civil Works Projects

ER 1110-2-107 Classification of Civil Works Water Resources Projects in Support of

Mobilization

ER 1110-2-109 Hydroelectric Design Center

ER 1110-2-110 Instrumentation for Safety-Evaluations of Civil Works Projects

ER 1110-2-240 Water Control Management

ER 1110-2-248 Requirements for Water Data Transmission Using the Geostationary

Operational Environmental Satellite Data Collection System

ER 1110-2-249 Management of Water Control Data Systems

ER 1110-2-400 Recreation Planning, Development, and Management Policies

ER 1110-2-1300 Government Estimates and Hired Labor Estimates for Dredging

ER 1110-2-1454 Corps Responsibilities for Non-Fed Hydroelectric Power Development

ER 1110-2-1455 Cooperative Stream Gaging Program

ER 1110-2-2902 Prescribed Procedures for the Maintenance and Operation of Shore

Protection Works

ER 1110-2-4001 Sedimentation Activities

ER 1110-2-4401 Clearances for Power and Communication Lines over Reservoirs

ER 1110-2-8102 Model Testing at Waterways Experiment Station

ER 1110-2-8151 Monitoring Coastal Projects

ER 1125-2-300 Plant - General

ER 1125-2-301 Plant Replacement and Improvement Program

ER 1125-2-303 Plant - Design, Acquisition, and Construction

ER 1125-2-304 Plant - Inspection, Maintenance, Operation and Repair

ER 1130-2-303 Maintenance Guide

ER 1130-2-304 Project Operations

ER 1130-2-305 Project Maps and Index Sheets

ER 1130-2-306 Navigation Lights, Aids, Charts, & Related Data Policy, Practices &

Procedures

ER 1130-2-307 Dredging Policies and Practices

ER 1130-2-308 Claims for Damages from Power Operations

ER 1130-3-310 Inspection of Dredging Operations

APPENDIX A - REGULATIONS AND POLICIES - Page 119
ER 1130-2-320 Equip Failures & Generation Interruptions, Multi Purpose Projects with

Power

ER 1130-2-322 In-Service Dates for Hydroelectric Generating Unis and Monthly Power

Plant Log

ER 1130-2-323 Power Station Operating Log, Multiple Purpose Projects with Power

ER 1130-2-324 Coordination of Hydroelectric Power Operations with Power Marketing

Agencies

ER 1130-2-334 Reporting of Water Quality Management Activities at Corps Civil Works

Projects

ER 1130-2-335 Levee Maintenance Standards and Procedures

ER 1130-2-337 Assignment of Operation and Maintenance Expenses to Proper Cost

Accounts for Multiple Purpose Projects with Power

ER 1130-2-338 Service Rates for Generating Equipment at Multiple-Purpose Projects

Having Hydroelectric Power

ER 1130-2-339 Inspection of Local Flood Protection Projects

ER 1130-2-400 Management of Natural Resources & Outdoor Recreation at Civil Works

Water Resource Projects

ER 1130-2-401 Visitor Center Program

ER 1130-2-404 Recreation Use Fees

ER 1130-2-406 Shoreline Management at Civil Works Projects

ER 1130-2-407 Operating & Testing Potable Water Systems in Compliance with the

"Safe Drinking Water Act"

ER 1130-2-408 Elutriate Test Implementation Guidelines, Ocean Dumping Criteria for

Dredged Material

ER 1130-2-412 Aquatic Plant Control Program

ER 1130-2-413 Pest Control Program for Civil Works Projects

ER 1130-2-414 Natural Resources Management System

ER 1130-2-415 Water Quality Data Collection, Interpretation, and Application Activities

ER 1130-2-417 Major Rehabilitation & Dam Safety Assurance Program

ER 1130-2-418 Cooperative Agreements for Law Enforcement Service at Civil Works

Water Resource Projects

ER 1130-2-419 Dam Operations Management Policy

ER 1130-2-420 Visitor Assistance Program

ER 1130-2-428 Interpretive Services

ER 1130-2-429 The Performance Monitoring System

ER 1130-2-430 Recreation Use Surveys

ER 1130-2-432 The Corps of Engineers Resource Volunteers Program

ER 1130-2-433 Collections Management and Curation of Archaeological and Historical

Data

ER 1130-2-434 Response to Oil and Hazardous Substance Incident

ER 1130-2-435 Preparation of Project Master Plans

ER 1130-2-436 Rewind of Hydroelectric Generators and Motors

ER 1130-2-437 Reports on Hydropower Statistics

ER 1130-1-438 Historic Preservation Program

ER 1130-2-439 Protection of Public Health & Safety at Jetties, Groins, and Breakwaters

Policy and Procedure

ER 1130-2-440 Interim Guidance for Major Rehabilitation Projects

ER 1140-1-211 Support For Others: Reimbursable Work

ER 1145-2-301 Use of Navigable Waters Policy, Practice and Procedure

APPENDIX A - REGULATIONS AND POLICIES- Page 120
ER 1145-2-305 Removal of Wrecks and Other Obstructions

ER 1150-2-302 Annual Report on Local Cooperation Agreements

ER 1165-2-1 Federal Responsibility in Water Resources Development

ER 1165-2-27 Establishment of Wetland Areas in Connection with Dredging

ER 1165-2-30 Acceptance and Return of Required, Contributed, or Advanced Funds

For Construction or Operation

ER 1165-2-114 Use of Excess Power Revenues to Assist in Repayment of Irrigation Costs

ER 1165-2-119 Modifications to Completed Projects

ER 1165-2-121 Flood Control Cost-Sharing Req. Under the Ability-to-Pay Provision

ER 1165-2-122 Federal Project Development Studies

ER 1165-2-124 Construction of Harbor and Inland Harbor Projects by Non-Federal

Interests

ER 1165-2-130 Federal Participation in Shore Protection

ER 1165-2-304 Project Structures

ER 1165-2-400 Recreational Planning, Development, & Management Policies

OM 1-1-84 Command Management Reviews

OM 15-1-14 Corps of Engineers Resource Management Advisory Committees

OM 15-2-3 Civil Works Research and Development Committees

OM 36-1-1 Processing External Audit Reports

OM 37-1-5 Cost Accounting for Civilian Personnel

OM 37-3-2 Relation of Approved Programs and Program Years to No-Year and

Multiple Year Appropriations

OM 335-1-1 Management Information Control System

OM 600-1-2 Variable Work Schedule

PL (Various) Water Resources Development Act

PL (Various) River and Harbor Act

PL (Various) Flood Control Act

PL 85-624 Fish and Wildlife Coordination Act

PL 89-72 Water Project Recreation Act

PL 89-670 The Department of Transportation Act

PL 92-367 National Dam Safety Act

PL 92-500 The Federal Water Pollution Control Act

PL 92-532 Marine Protection, Research and Sanctuaries Act

TL 1110-1-132 Occupational Safety and Health Standards

TL 1110-1-306 Automated Data Acquisition Geotechnical Instrumentation

TL 1110-2-314 Lock Wall Rehabilitation

TL 1110-2-531 Sediment Resuspension Characteristics of Selected Dredges

TL 1110-3-418 Procedures for Automated Control and Monitoring Systems

WRSC-WCUS-98-3 Waterborne Commerce of the United States

APPENDIX A - REGULATIONS AND POLICIES- Page 121
REPORT DOCUMENTATION PAGE 1 O Ap. opove

Publc reportinq brden for this collectiOn of nformation i e•timoeted to awrere I hour per resonse. including the time f4 reviewin mnstrtunwngl earchinq eaung ig data sti'cu

gatherfig a ijentCffl the data neLeded, and comlpetlng and reviewing the colection of informatic. Send Commeni reWding thi burden etaimate or an other aspect of the collection of fnoemai4on. IncludI ng 1 . iOm for redugthi bur den. to Washington lNeadeuatters Services. Directorait for information Operations an RepotI. a1I Jefferson ODavisIn hway. Suite 1204. AnljI~ 202-X 43 a tO the Off ice of Malagement andfudgetl Paperwork Rlad uoInfvope(07044lIS).,Wahngton. DC 3l5J.

1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED

August, 1993

4. TITLE AND SUBTITLE S. FUNDING NUMBERS

Policy and Procedures Options Study for Project Operation

and Maintenance - National Operation and Maintenance

Program Plan of Improvement

6. AUTHOR(S)

James D. Davidson, Study Manager

7. PERFORMING ORGANIZATION NAME(S) AND ADORESS(ES) 8. PERFORMING ORGANIZATION

USACE, Water Resources Support Center REPORT NUMBER

Institute for Water Resources

Navigation Division IWR Report 93-R-11

Casey Building

Ft. Belvoir, VA 22060-5586

9. S-'ONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/ MONITORING

USACE, Headquarters AGENCY REPORT NUMBER

Directorate of Civil Works

Construction, Operations, and Readiness Division

20 Massachusetts Avenue, NW

Washington, DC 20314-1000

11. SUPPLEMENTARY NOTES

Available from the National Technical Information Service, 5285 Port Royal Road,

Springfield, VA 22161, (703-487-4650)

12a. DISTRIBUTION/AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE

Approved for public release; distribution unlimited

13. ABSTRACT (Maximum 200 words)

This report, prepared by the Institute for Water Resources staff, is a summary

of the Contractor's (Management Analysis, Inc.) study and findings and preliminary

review by the Corps. The report is presented in two parts. Part I, Plan of

Improvement, presents and describes actions which will be undertaken to improve the

program. Part II, Study Conduct and Findings, documents the reasons for undertaking

the study, how the study was conducted, and presents the study findings and

conclusions for those readers who are interested in following the process that

supports the need for the improvement actions. The objective of the study is to

assure that Federal expenditures for operation and maintenance of Corps projects

provide justified levels of service in the least cost manner. The output of the

study is to be policies and procedures (practicable measures) to achieve that

objective.

14. SUBJECT TERMS 15. NUMBER OF PAGES

Policy and procedures options, Operations and Maintenance (O&M) 133

Program, improvement, short term/long term plans, assessment and 16. PRICE CuOE

analysis of project

17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACT

OF REPORT OF THIS PAGE OF ABSTRACT

Unclassified Unclassified Unclassified Unlimited

NSN 7540-01-280-5500 Standard Form 298 (Rev 2-89) Prescribed by ANSI Sid Z39-18

298-102