Transcript USACE GEEZER BRIEF 2001

Program Development & Management:
U.S. Army Civil Works Program
National Waterways Conference
Annual Meeting
November 7-9, 2007
Gary Loew, Chief, Programs Integration Division
Directorate of Civil Works
U.S. Army Corps of Engineers
Outline
•
•
•
•
FY07 Accomplishments
FY08 Appropriations
FY09 Budget
Future Budget Trends
One Corps, Serving the Army and the Nation
FY 07 ACCOMPLISMENTS

Executed about $6.8 billion in FY07
 $1.6 bil obligated for NOLA System Repair & Strengthening
 5 Planning and 15 Construction project completions scheduled
 Reprogrammings:
* Investigations = $3.5 mil
* Construction = $36.9 mil
* O&M = $48.2 mil
* MR&T = $9.9 mil
 Non-emergency Funding Carryover reduced to ~ $1 bil
 “Payback” requirement reduced to 75 projects for $147 mil
 Almost all new contracts fully funded
* 135 continuing contracts today (as of 30 Jun)
* 18 awarded in FY06
* 1 awarded in FY07
One Corps, Serving the Army and the Nation
FY 07 ACCOMPLISMENTS (cont)
Timely guidance and funding to Field
Timely budget submissions to Administration
Timely information and response to Congress
Progress on 5 Demonstration Watershed Studies
Risk Calculation, Risk Management, Risk Communication
Prioritization, Planning and Construction of Portfolio of Dams
with Dam Safety issues; applied also to leves
Levee Certification Policy and Federal Levee data base
Continued rehab on major projects; more efficient funding
Strategic Planning & Plan implementation
WRDA
One Corps, Serving the Army and the Nation
FY 07 ACCOMPLISMENTS (cont)
CIVIL WORKS CUSTOMER SURVEY
Scale
Mean
Attitude
4.33
Services
4.27
Staff
4.41
Timeliness
3.90
Cost
3.91
Communication
4.29
Overall
4.20
One Corps, Serving the Army and the Nation
TRENDS TO WATCH
Cost of Infrastructure Recapitalization
Improved Inspection Techniques
Modern Design Standards
Cost of meeting ESA and other legal requirements
Cost of Construction
Fuel, Steel, Concrete
Expanding worldwide demand
Continuing Pressure on Budget
Entitlement Programs
Medicare, Medicaid, Social Security
One Corps, Serving the Army and the Nation
FY08 Appropriations
One Corps, Serving the Army and the Nation
Budget & Appns Comparison
FY06
Investigations
95
Operation & Maint. 1,979
Construction
1,637
Miss. River & Tribs.
270
Regulatory Program 160
F.C. & Coastal Emer.
70
F.U.S.R.A.P.
140
Expenses
162
ASA(CW)
Total
4,513
Appn
5,329
Appn>Budget
+216
FY07
FY08
$ Millions
FY09
94
90
2,258 2471
1,555
1523
???
278
260
173
180
81
40
130
130
164
177
(6)
(6)
4,733 4,871
5,334 5,448 Senate
5,584 House
+401 ~+700
One Corps, Serving the Army and the Nation
FY08 Appropriation
Legislation Status
 House Bill – HR 2641, 17 Jul 07
--Report 110-185 Parts I&II
 Senate Bill – S 1751, 9 Jul 07 (Cmte passed)
--Report 110-127
 Continuing Resolutions
--CRA #1 (HJR #52) 1 Oct – 16 Nov
--CRA #2 -- 17 Nov - ~14 Dec
--CRA #3 -- ?
 Final Resolution Possibilities
-- Conference – Conference House Bill and Senate
Cmte Bill (~Nov-Mar?) or
-- Omnibus Bill or Joint Continuing Res. (Jan-Mar?)
--Final Bill about 85% “fat free”
One Corps, Serving the Army and the Nation
FY05 E&WD ACT CW EARMARKS
As a % of the FY05 Appropriation
13%
Total Approp.
Earmarks
87%
One Corps, Serving the Army and the Nation
WRDA Status
 23 Oct -- Sent to President
 2 Nov – President Vetoed
 6 Nov -- House Overode Veto
361-54
 7 Nov – Senate??
One Corps, Serving the Army and the Nation
SUPPLEMENTAL APPRORIATIONS
ARE IMPORTANT TO
PROJECT PERFORMANCE
One Corps, Serving the Army and the Nation
Four FY05-7 Emergency Supplementals
Approp
$ Millions
FCCE
GI
CG
O&M
MR&T
GE
$7,169.0
48.8
687.3
533.7
153.7
1.6
TOTAL
$8,594.1
Four Bills
P.L. 109-62
P.L. 109-148
P.L. 109-234
P.L. 110-228
One Corps, Serving the Army and the Nation
(FY 05)
(FY 06)
(FY 06)
(FY 07)
FY07 Emergency Supplemental
PL 110-28
Approp
$ Millions
FCCE
$1,300.0
107.7
128.4
11.7
3.7
2.6
7.0
GI
8.0
CG
36.5
O&M
TOTAL
3.0
$1,608.7
Comments
LPV & WBV-to auth level
Mississippi
Various damaged projects
Missouri R. Flood
Nor’easter Flood
Texas
Drought Assistance
SELA & Nor’easter Flood
Katrina-dredging, Alabama-Coosa R.
One Corps, Serving the Army and the Nation
FY09 Budget
One Corps, Serving the Army and the Nation
FY09 Civil Works Budget
Supports the President’s Overall
Budget Priorities:
Continue Long Term Economic
Growth
– Win the Global War on Terrorism
– Secure the Homeland
–
• Supports Mission Priorities
– Commercial Navigation
– Flood & Coastal Storm Damage
Reduction
– Aquatic Ecosystem Restoration
One Corps, Serving the Army and the Nation
FY 09 Program Process
Apply Policy Direction and Guidance
• Rank competing investments in each business program
• Demonstrate improved outcomes from added increments
Establish Amounts for Programs with Internal
Performance Metrics
• General Expenses; Regulatory; Flood Control & Coastal
Emergencies; Recreation; Environmental Stewardship;
FUSRAP
Develop Performance Based Metrics for projects in
competing business lines:
• Initial level (No new work, phases or contracts,
previously budgeted projects only)
• Categorize and Prioritize CG projects into Priority levels
• Add Performance Base High Return items and
increments for GI and O&M items
Add to Highest Priority, ongoing projects & contracts
One Corps, Serving the Army and the Nation
Budgeting Metrics
Main Ranking Criteria for Business Lines
•
•
•
•
•
•
•
•
•
•
•
Flood Risk Mgmt. (FRM) - People in 100-year floodplain
FRM- Flood “Risk” Index
FRM, Navigation - Dam safety & seepage stability
FRM, Navigation, Hydropower – Benefit/Cost Ratio
Navigation - Tonnage movements
Navigation, Hydropower - “Risk” Assessments
Environmental - Loss prevention for significant natural
resources
All Business Lines – New or Continuing; Years to
Complete
All Investigations (Studies) - Watershed Elements
All Construction – Endangered Species Act & compliance
needs
ALL O&M - Safety, Caretaker, Compliance, Subsistence
One Corps, Serving the Army and the Nation
FY 08 Construction Budget – National
Priority Projects
Upper Miss.R.
Restoration
Oakland
Harbor
Olmsted
Lock & Dam
Navigtion
Flood Damage Reduction
Sims Bayou
S. Fla. Everglades
Aquatic Ecosystem Restoration
One Corps, Serving the Army and the Nation
New
YorkNew
Jersey
Harbor
Budget Arithmetic – FY08
FY08 Civil Works Budget Ceiling
$4,800 million
Allocate GE, REG, FCCE, REC, FUSRAP…
Allocate Base O&M (~75% of required)
Essential Dam Safety
Assign National Priorities
Continuing Construction at Base Level
Planning Studies
Minimum Essential Allocation =
- 900
- 1,800
- 500
- 400
- 700
- 100
- $4,400
Left for all other CW Projects & Programs
~$ 400 million
THAT’S IT!
One Corps, Serving the Army and the Nation
Future Budget Trends
One Corps, Serving the Army and the Nation
Budgeting from the Top
• Goal and Performance-Based Budgets
–
–
–
–
–
Define strategy, objectives and performance metrics
Budget to achieve those objectives
Systems budgeting—national, regional, local
More emphasis on program, system and regional benefits;
Less emphasis on individual project benefits
• More emphasis on multi-dimensional benefits
• Changing focus
– HQs focus on capital decisions, future revenue, funding strategy
– Field will have more influence over funding for execution
One Corps, Serving the Army and the Nation
Five Year Planning
Example
FY08-12 Five Year Plan
• Construction Wedge, Enhanced Plan, FY08-12
• $2.2 bil available for new starts in next 5 years
• 79 eligible projects @ $9.5 bil
• 131 other projects @ $6 bil
• If past funding trends continue we have ~15%23% of funds needed for approved projects
One Corps, Serving the Army and the Nation
Example
Goal-Based Budgeting for Navigation
Goal: Maintain projects to meet present and future needs
–
Objective: Maintain Ports
• PM 1 – Percent time navigation channels are available to
commercial users
– high-commercial traffic (>10 mil tons @~95%?)
– medium traffic (1-10 mil tons @~85%?)
• PM 2 – Percent project features that exceed Facilities
Condition Index (FCI)
• PM 3 – O&M cost per ton cargo shipped
*PM = Performance Measure
One Corps, Serving the Army and the Nation
Example (cont)
Goal-Based Budgeting for Navigation
Goal: Maintain projects to meet present and future needs
–
Objective: Maintain Inland Navigation Channels
• PM 1 – Segment Availability; no instances where
mechanical failure results in lock closure >24 hours
• PM 2 – Percent high commercial use segments with
sufficient preventive maintenance to achieve good service
level
• PM 3 – Total O&M funds/segment ton-mile (5-yr avg)
• PM 4 – Percent of funding to construct and expand projects
allocated to high return investments
• PM 5 – Percent of navigation asset inventory with recent
structural or operational risk assessments
*PM = Performance Measure
One Corps, Serving the Army and the Nation
Communicating Outcomes
•
•
•
Budget is developed to achieve program
objectives
USACE will be able to display and communicate
on a segment, system and national basis if
funds budgeted and appropriated will achieve
objectives
Thru the 5-yr Plan, USACE will be able to
forecast improving or worsening conditions
– By system, region and nation
– We will be able to forecast progress (or not) towards
national goals
One Corps, Serving the Army and the Nation
Risks and Challenges
•
System Objectives
•
Systems Analysis
•
“High Commercial Traffic” navigation channels
and segments
•
Segment focus vs Systems focus
One Corps, Serving the Army and the Nation
Industry Role
•
Grow with us as we learn to better communicate importance of
infrastructure to the nation’s economic well being, national
defense and quality of life.
•
Stay engaged as we examine funding sources and improve our
decision processes
–
–
–
•
Systems objectives and benefits
Future planning for riverine and coastal systems
Measurement
Support system, regional and national needs
One Corps, Serving the Army and the Nation
One Corps, Serving the Army and the Nation
EARMARKS
Definition
• Reference: January 25, 2007 OMB Memo M-07-09
• It is an Earmark IF:
– A) Add-ons. The Administration asks for $100 million … and
Congress provides $110 million and places restrictions (such
as site-specific locations) on the additional $10 million, the
additional $10 million is … an earmark.
– B) Add-ons. The President budgeted $0 for a project and
Congress added funds, even if there were no written
directions within the Act language, Conference report, House
report, or Senate report, the added amount IS an earmark.
– C) Carve-outs. The Administration asks for $100 million and
Congress provides $100 million but places restrictions on
some portion of the funding, the restricted portion is
counted as an earmark. [Of the $1.5 bil appropriated, $30
mil is for Project XXX…]
One Corps, Serving the Army and the Nation
FY05 E&WD ACT CW EARMARKS
% Earmarked $$ by Account
12%
2% 6%
8%
72%
MR&T
GI
CG
O&M
FC&CE
One Corps, Serving the Army and the Nation
Program Comparison
FY07 Bud
FY07 WP
FY08 Bud FY08 House
FY08 Sen
$ Millions
Investigations
94
Operation & Maint. 2,258
Construction
1,555
Miss. River & Tribs.
278
Regulatory Program 173
F.C. & Coastal Emerg. 81
F.U.S.R.A.P.
130
Expenses
164
ASA(CW)
5
Total
4,738
163
1,975
2,336
397
159
0
139
167
4
5,340
90
2,471
1,523
260
180
40
130
177
0
4,871
One Corps, Serving the Army and the Nation
120
2,655
2,009
278
180
40
130
171
6
5,589
172
2,292
2,059
375
180
50
140
175
5
5,448