Module 24Module 24

STEPS 17, 18, & 19STEPS 17, 18, & 19 Project Implementation Project Implementation

Module 24Module 24

STEPS 17, 18, & 19STEPS 17, 18, & 19 Project Implementation Project Implementation

Civil Works Orientation Course - FY 11

OBJECTIVESOBJECTIVESOBJECTIVESOBJECTIVES This module will provide an overview of:

The purpose of the PPA Guidance on PPA development Components of the PPA package PPA review process Congressional Appropriations PPA Approval and Execution

STEP 17STEP 17 Project PartnershipProject Partnership

Agreement (PPA)Agreement (PPA) Draft and Approval Draft and Approval

STEP 17STEP 17 Project PartnershipProject Partnership

Agreement (PPA)Agreement (PPA) Draft and Approval Draft and Approval

What is a PPA ?What is a PPA ?What is a PPA ?What is a PPA ?

Legally binding document (contract) Executed between Corps & Non-Federal

Sponsor(s) Establishes terms of funding, construction,

and OMRR&R of the project

Brief History of PPA’sBrief History of PPA’sBrief History of PPA’sBrief History of PPA’s

Prior to 1970 - Letter of Assurance Flood Control Act 1970 - Section 221 Agreement Supplemental Appropriation Act 1985:

Local Cooperation Agreement (LCA) process Required cost sharing (but not defined) Required financing plan

WRDA 1986 - Further defined project cost sharing Model Project Cooperation Agreements (PCA)

developed by task forces

PPA EvolutionPPA EvolutionPPA EvolutionPPA Evolution

Letter of Assurance Section 221 Agreement Local Cooperation Agreement Project Cooperation Agreement...now to

PPA Guidance -PPA Guidance - Specifically Authorized Projects Specifically Authorized Projects

PPA Guidance -PPA Guidance - Specifically Authorized Projects Specifically Authorized Projects

ER 1165-2-131, Project Cooperation Agreement for New Start Construction (WRDA 2007 will require changes)

Series of Policy Guidance Letters Annual Program Budget EC for CW Action EC 1165-2-206, Delegation of Review, Approval, and

Signature Authority for Project Cooperation Agreements for Specifically Authorized Projects

CONSTRUCTION COST SHARING: Flood Risk Management – varies from

50/50 to 65/35

Ecosystem Restoration – usually 65/35

Inland Navigation - 50/50 (Inland Waterways Trust Fund)

Deep Draft Navigation - proportional to depth of construction: Non-Federal share is 10% to Depths of 20 feet; 25% between 20 and 45 feet; and 50% over 45 feet.

Recreation - 50/50

PPA Guidance -PPA Guidance - Specifically Authorized Projects Specifically Authorized Projects

PPA Guidance -PPA Guidance - Specifically Authorized Projects Specifically Authorized Projects

PPA Required For:PPA Required For:PPA Required For:PPA Required For:

New Start:

- Construction Project

- Separable Element Deficiency Correction Reconstruction Projects

PPA ModificationsPPA ModificationsNot Required:Not Required:

PPA ModificationsPPA ModificationsNot Required:Not Required:

Changes during construction for technical or cost reasons

Modifications due to Section 902 issue

Change in method of Non-Federal Payment

Recreation facilities added at full Non-Federal expense

Development of PPADevelopment of PPADevelopment of PPADevelopment of PPA

Sponsor requirements discussed in Feasibility Phase Model provided to sponsor Tailor PPA for unique project aspects Floodplain Management Plan now a legal requirement

(WRDA 99) Actual negotiation during PED

PPA PackagePPA PackagePPA PackagePPA Package

Draft PPA Certificate of Authority Lobbying Certificate Unsigned Disclosure Form

List of PPA Deviations and Reasons Signed Certificate of Legal Review Federal/non-Federal Allocation Table

PPA Package (cont.)PPA Package (cont.)PPA Package (cont.)PPA Package (cont.)

Non-Federal Financial Analysis: Financial Plan Sponsor’s Self-Certification of Financial Capability

PPA Checklist

(6 Copies of PPA package w/2 copies of Decision Document to RIT)

Washington Review:Washington Review:Washington Review:Washington Review:

Based on PPA package Regional Integration Team - HQ PPA review Consistency with Approved Decision Document Environmental Requirements are Satisfied Consistent treatment of Sponsors Firm project cost estimate Non-Federal cash requirement and LERRD value Financing Plan Credits

Model PPAs - Found on Legal Services homepage

Typical PPA Problems:Typical PPA Problems:Typical PPA Problems:Typical PPA Problems:

Decision Document not approved! District/Sponsor deviations on PPA overruled Incomplete “shaky” 3rd Party Agreement Changes in project definition Poorly defined relocation and disposal area

responsibilities

PPA ApprovalPPA ApprovalPPA ApprovalPPA Approval

HQ notification to District that PPA package is approved by HQ and OASA(CW)

Project has received construction authorization from Congress

Project is included as a new start in the President’s budget or is included in Appropriations Act.

STEP 18STEP 18 Congressional Congressional AppropriationsAppropriations

STEP 18STEP 18 Congressional Congressional AppropriationsAppropriations

See Module 10

The Appropriations Bill becomes law upon signature by the

President

STEP 19STEP 19 PPA ExecutionPPA Execution

STEP 19STEP 19 PPA ExecutionPPA Execution

PPA ExecutionPPA ExecutionPPA ExecutionPPA Execution

Construction funds have been included in the Appropriations Act

Is a media event on many projects Signed by the local sponsor and a representative of

the Army (varies)

PPA ExecutionPPA ExecutionPPA ExecutionPPA Execution

After PPA execution the local sponsor can be instructed to begin acquisition of real estate needed for the project.

Real estate acquisition can be time consuming and a major headache for the sponsor, so many sponsors will begin acquiring real estate prior to PPA execution (even before Congressional authorization).

Early acquisition of real estate is legal, but the sponsor is assuming all of the risk that the project will ultimately be built. The Federal government will not accept any liability for early real estate acquisition.