An Act to amend the acts of August 11, 1888, and March 2, 1919, pertaining to carrying out projects for improvements of rivers and harbors by contract or otherwise, and for other purposes.
PL 95-269 (H.R.7744), enacted 04/26/1978

92 STAT. 218 
PUBLIC LAW 95-269—APR. 26, 1978 
Public Law 95-269 
95th Congress 
Apr. 26, 1978 
[H.R. 7744] 
Rivers and 
harbors, 
improvements. 
Study. 
Submittal to 
Congress. 
An Act 
To amend the Acts of August 11, 1888, and March 2, 1919, pertaining to carrying 
out projects for improvements of rivers and harbors by contract or otherwise, 
and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress a^semhled^ That section 3 of the 
Act of August 11, 1888 (25 Stat. 423; 33 U.S.C. 622), is amended to 
read as follows: 
"SEC. 3. (a) The Secretary of the Army, acting through the Chief 
of Engineers (hereinafter referred to as the 'Secretary'), in carrying 
out projects for improvement of rivers and harbors (other than sur-
veys, estimates, and gagings) shall, by contract or otherwise, carry 
out such work in the manner most economical and advantageous to the 
United States. The Secretary shall have dredging and related work 
done by contract if he determines private industry has the capability 
to do such work and it can be done at reasonable prices and in a timely 
manner. During the four-year period which begins on the date of 
enactment of this subsection, the Secretary may limit the application 
of the second sentence of this subsection for work for which the 
federally owned fleet is available to achieve an orderly transition to 
full implementation of this subsection. 
"(b) As private industry reasonably demonstrates its capability 
under subsection (a) to perform the work done by the federally owned 
fleet, at reasonable prices and in a timely manner, the federally owned 
fleet shall be reduced in an orderly manner, as determined by the 
Secretary, by retirement of plant. To carry out emergency and 
national defense work the Secretary shall i-etain only the minimum 
federally owned fleet capable of performing such work and he may 
exempt from the provisions of this section such amount of work as he 
determines to be reasonably necessary to keep such fleet fully opera-
tional, as determined by the Secretary, after the minimum fleet 
requirements have been determined. Notwithstanding the preceding 
sentence, in carrying out the reduction of the federally owned fleet, 
the Secretary 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. 
For the purpose of making the determination required by the preced-
ing sentence the Secretary shall not exempt any work from the 
requirements of this section. The minimum federally owned fleet shall 
be maintained to technologically modem and efficient standards, 
including replacement as necessary. The Secretary is authorized and 
directed to undertake a study to determine the minimum federally 
owned fleet required to perform emergency and national defense work. 
The study, which shall be submitted to Congress within two years 
after enactment of this subsection, shall also include preservation of 
employee rights of persons presently employed on the existing fed-
erally owned fleet.". 
PUBLIC LAW 95-269—APR. 26, 1978 
92 STAT. 219 
SEC. 2. Section 8 of the Act of March 2, 1919 (40 Stat. 1290; 33 
U.S.C. 624), is amended to read as follows: 
"SEC. 8. (a) No works of river and harbor improvement shall be 
done by private contract— 
"(1) if the Secretary of the Army, acting through the Chief 
of Engineers, determines that Government plant is reasonably 
available to perform the subject work and the contract price for 
doing the work is more than 25 per centum in excess of the 
estimated comparable cost of doing the work by Government 
plant; or 
"(2) in any other circumstance where the Secretary of the 
Army, acting through the Chief of Engineers, determines that the 
contract price is more than 25 per centum in excess of what he 
determines to be a fair and reasonable estimated cost of a well-
equipped contractor doing the work. 
"(b) In estimating the comparable cost of doing the work under sub-
section (a) (1) by Government plant the Secretary of the Army, act-
ing through the Chief of Engineers shall, in addition to the cost of 
labor and materials, take into account proper charges for depreciation 
of plant, all supervising and overhead expenses, interest on the capital 
invested in the Government plant (but the rate of interest shall not 
exceed the maximum prevailing rate being paid by the United States 
on current issues of bonds or other evidences of indebtedness) and such 
other Government expenses and charges as the Chief of Engineers 
determines to be appropriate. 
"(c) In determining a fair and reasonable estimated cost of doing 
Mork by private contract under subsection ^a)(2), the Secretary of 
the Army, acting through the Chief of Engineers, shall, in addition 
to the cost of labor and materials, take into account proper charges for 
depreciation of plant, all expenses for supervision, overhead, work-
men's compensation, general liability insurance, taxes (State and 
local), interest on capital invested in plant, and such other expenses 
and charges the Secretary of the Army, acting through the Chief 
of Engineers, determines to be appropriate.". 
Approved April 26, 1978. 
— 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-605 (Comm. on Public Works and Transportation), 
SENATE REPORT No. 95-722 (Comm. on Environment and Public Works). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): Sept. 27, considered and passed House. 
Vol. 124 (1978): Apr. 5, considered and passed Senate, amended. 
Apr. 13, House agreed to Senate amendments. 
39-194 O~80-pt. 1 
18 : QL3