US Army Corps of EngineersBUILDING STRONG®

Transforming Civil Works for the 21st Century

Major General Michael J. WalshDeputy Commanding General,Civil and Emergency Operationsand

Steven L. Stockton, P.E.Director of Civil Works

National Waterways Conference

27 March 2012

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Imperatives for Action

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• We are now in a non-earmark environment• We fund too many studies/projects at less than

capability• It takes too long to get studies and projects completed• It costs too much!!• We make sponsors and stakeholders unhappy due to

lack of timeliness and cost effectiveness• We try too hard to justify unviable projects• In a budget constrained era, we must do what it

takes to Be RELEVANT!!• Adapt or Die!

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We Must Maintain our Core Competencies to be Relevant

• Integrator• National/Global

Perspective• Balancer• Systems Thinking• Diverse Technical/

Scientific Workforce• Ability to Marshal

Capabilities• Integrated Delivery

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Cross-Cutting Strategies

• Systems Approach• Collaboration & Partnering• Risk-Informed Decision

Making & Communications• Innovative Financing• Adaptive Management• State-of-the-Art Technology

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Methods of DeliveryBudget

Development

Asset Mgmt. & Recapitalization

Major Transformation Initiatives

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Planning

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$41 Million Study Cost 30 Inch Report 16 Year Study Duration

30 Inches = Full Report

Savannah Harbor Study New Study Paradigm $ 3.0 Million Study Cost 3 Levels of the USASCE Vertical Team 3 Year Study Duration Main Report NTE 100 pages

Planning ModernizationTop Four Performance Priorities

• Improve Planning Program delivery (investigations and CG) and instill Civil Works-wide accountability

• Develop a sustainable national & regional Planning operational and organization model

• Improve planner knowledge and experience (build the bench)

• Modernize planning guidance and processes

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Paradigm for Future Planning• Single phase Study Process with clearly defined decision

points• Actionable and concise decision documents • Quality engineering, economics and environmental

analysis (NEPA)• Identification of areas of risk and uncertainty• A degree of consistency, but adaptable and scalable• Consistent with emerging concepts of revised P&G• Studies completed within 3 years, at a cost less than $3

million, in a binder not more than 3 inches thick (the “3-3-3” goal)

• Review current 365 studies in the works, winnow out those unlikely to lead anywhere.

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Transforming the Budget Development Process

• Establish a goal-oriented, program based approach to budgeting

• Establish vertical “mapping/alignment” of programs/BLs to National goals and objectives

• Improve justification & defense of budget allocations• Incorporate integrated water resource management concepts

into budget framework, as appropriate• Develop budget decision framework to assist in identifying

the most important senior leader decisions• Develop timeline for full implementation of new budget

process to all business lines that will evolve over multiple years

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Change from a Program Management Perspective

• Manage CW as a multi-year program….• NOT as a collection of projects• but developed and implemented based on attaining national needs• with appropriate investment levels for programs, not projects• And prioritization of program implementation over 5 years/20 years, not 1 year

• Pursue additional Federal and non-Federal direct funding sources• Inland Waterways recapitalization (IWTF)• Coastal federal channel maintenance (HMTF)• Hydropower recapitalization• Implement a recapitalization policy for all infrastructure

• De-authorize projects that no longer serve their authorized purposes• Reform program development & prioritization to a ‘team event’

• Encourage, solicit participation by stakeholder & interest groups• Obtain their views on priorities, selection criteria, future planning initiatives, etc.• Other federal agencies w/common goals & priorities

• Incorporate risk-based cost and schedule analysis into all budget and program decision-making

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Asset Management & Recapitalization-The Aging Challenge

• More objectivity for all Business Lines for condition and risk/consequence processes

• Consistency, Repeatability and Transparency

• Integrate Facilities and Equipment Maintenance (FEM) data into failure curves for critical components

• Develop better non-economic risk data

• Develop better spatial integration (watershed/system)

• Develop better integrated life-cycle approaches

• Develop Portfolio Trade-off (within and among projects)Bottom Line: Will require a corporate approach to be

successful

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Methods of Delivery • Regional and National Production Centers

• Regional – one or more within a MSC, but not every district

• National – one or more within the Nation, but not every MSC

• Business Process Changes• Increased in-house work• Centers of Standardization tweaking

• Integrate a Human Capital Plan—the competence factor to delivery

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Methods of Delivery-Path Forward• Move forward with:

• Dam Safety Modification Design• Inland Navigation Design• Centers of Standardization• Military Construction Business Process Doctrine

• Initiate plans for Deep Draft Navigation Economic Analysis and Energy / Sustainability

• MSCs continue to apply Hedgehog Analysis

• Evaluate High Priority/High Risk/Gap to determine where MOD changes are required

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Managing “Mega-Projects”• A project controls’ team which has

integrated program schedules, budget,document and communication controls

• A fully integrated Team assigned earlyin design phase and responsible till completion

• Integrated schedules • Quality management/change

management Plans and Cost/Schedule Risk Analyses • Periodic project quality evaluations to independently

ascertain quality of project execution• Collaboration-Professionally facilitated formal

partnering

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Ready for the Panama Canal?U.S. Harbors 45’ or Greater

WEST COASTSeattle/Tacoma (>50’)Oakland (50’)LA/LB (>50’)San Diego (47’)

GULF COAST Mobile New Orleans Houston/Galveston/Texas City Corpus Christi Freeport

EAST COAST NY/NJ (50’ underway) Baltimore (50’) Hampton Roads (50’) Charleston Morehead City

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U.S. Ports and Inland Waterways Modernization Strategy

• Focus: How Congress should address critical need for additional port and inland waterway modernization to accommodate post-Panamax vessels.

• Factors to address: • Costs associated with deepening and widening channels; • Ability of waterways and ports to enhance export initiatives

benefitting the agricultural and manufacturing sectors; • Current and projected population trends that distinguish regional

ports and ports that are immediately adjacent to population centers;

• Inland intermodal access; • Environmental impacts resulting from modernization of inland

waterways and deep-draft ports.• Report due to Congress June 2012

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Final Thoughts • The potential

capability of the Corps Civil Works Program is enormous

• Our job is to anticipate, advise and shape national policy and action

• Stand and deliver• The future is ours to

change!

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US Army Corps of EngineersBUILDING STRONG®