following approval of the Real Estate Planning Report by the military command or agency and approval of the Real Estate Design Memorandum by the Chief of Engineers. It may be well to point out at this time that the Real Estate action takes place at the District level, except where the Real Estate function has been concentrated in the Division or the Division is an operating Division without Districts. Normally, the Division has review and limited approval authority for Real Estate. Authority for policy and procedures and approval of Real Estate Design Memorandums and Reports is retained by the Real Estate Directorate, Office, Chief of Engineers, which also exercises general real estate supervision.

(6) Upon approval of the Planning Report, authority is granted to the Division or District to begin acquisition. This initiates detailed tract analysis to include mapping, descriptions, procurement of title data (usually by contract), appraisals by staff or contract or both, and negotiations in an effort to acquire the lands amicably. If there are title defects and/or disagreement as to price, the land is condemned. Administrative costs include the necessary support to the Department of Justice in resolving the tracts in condemnation.

(7) Other Real Estate activities include management and disposal of real estate, homeowners assistance, records maintenance, and reporting.

2. OGRANIZATIONAL ARRANGEMENT TO ACCOMPLISH THE POSTAL PUBLIC BUILDING

a. Concept

PROGRAM

(1) Construction and Real Estate Services. As evidenced in the preceding discussion, the division-district organization is ideally suited for accomplishing the real estate and construction services required by the Postal Public Building Program. The districts and their project offices are located throughout the United States; in particular, District headquarters are located in the most highly populated cities in their areas. Moreover, the Corps' operating construction and real estate capabilities exist at the district level. In view of the existing capabilities at the district level and the dispersed locations of district and project offices, there is no need to establish a separate system of field offices to accomplish the construction and real estate services solely for the Postal Public Building ing Program.

(2) Design. Whereas any of the existing districts may be assigned construction responsibilities for a post office project, only a few selected Districts will be involved in the design program. In view of the repetitive nature of the postal facilities and the sophisticated nature of the specialized mechanization being incorporated into many of these facilities, it is considered that a higher quality of design can be gained by having a few Districts manage the architect-engineer (A-E) design of many facilities as opposed to having many Districts manage the A-E design of a few facilities. Under this concept, advantage can be taken of the learning curve. Six Districts have been designated to manage the A-E design contracts; they are Sacramento, Kansas City, Fort Worth, Savannah, Norfolk, and New York. This number will be increased or decreased if experience indicates that the design program can be accomplished more economically, and within the established time frames, with a lesser or greater number of design districts. These districts will manage the design of postal facilities for the areas indicated at Tab E.

(3) Management of the Program. The one feature which distinguishes this program from all other major programs, which the Corps has administered or is administering, is that there is a single interface with the customer, and this interface occurs at the Office, Chief of Engineers—Washington level. In the case of the NASA, Air Force, and Army programs, the interfaces are many and they occur at the District level. Accordingly, an agency has been established within the Office, Chief of Engineers to manage the real estate, design, and construction services associated with the Postal Public Building Program; its name is: Corps of Engineers Postal Construction Support Office (CEPCSO). b. Corps of Engineers Postal Construction Support Office

(1) Relationship with Agencies Comprising the Office, Chief of Engineers. (See Tab F for organizational arrangement.)

(a) Military Construction Directorate. CEPCSO is a part of the Military Construction Directorate because certain post office design and construction activities have characteristics closely allied to the complex design and construction activities associated with NASA and certain Air Force and Army projects.

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By being a part of the Military Construction Directorate, CEPCSO is readily able to draw, on an as-needed basis, upon the design and construction expertise now a part of the divisions of the directorate. The Chief of CEPCSO has direct access to the divisions of the directorate and may task these divisions in the name of the Director.

(b) Other OCE Agencies. The Chief, CEPCSO occupies as a second position: Assistant to the Chief of Engineers for Postal Construction Support with the following responsibilities:

1. Advises and assists the Chief of Engineers in matters pertaining to the Corps of Engineers support of the Postal Public Building Program. 2. Provides over-all policy direction and coordination for the Postal Public Building Program.

3. Coordinates the OCE actions relating to the Postal Public Building Program with DOD, DA, and the Post Office Department.

4. Keeps lower echelons of OCE informed of top level decisions and requirements relating to the Postal Public Building Program.

5. Represents the Chief of Engineers in dealings with top Post Office Department officials.

Of primary importance is the fact that as an Assistant to the Chief of Engineers, the Chief, CEPCSO has direct access to the Advisory and Administrative staff as well as the other directorates of the Office, Chief of Engineers.

(c) Summary. Through these relationships, the Chief, CEPCSO is able to draw upon the entire resources of the Office, Chief of Engineers for advice and assistance. This is an economical arrangement in that specialized services such as legal, comptroller, engineering, construction, and contract support can be obtained on an as-needed basis rather than having personnel dedicated to Post Office work but less than fully employed.

(2) Function and Responsibilities. The function of the CEPCSO is to serve as the central agency in the Office, Chief of Engineers for directing and coordinating the accomplishment of real estate, design, and construction services in connection with the Postal Public Building Program. Activities are to be accomplished in accordance with the Memorandum of Understanding developed between the Secretary of the Army and the Postmaster General and the Working Agreement developed between the Chief of Engineers and the Post Office Department. In performance of these activities, CEPCSO is responsible for the following functions:

(a) Develops general operating policies and procedures for over-all management of the Postal Public Building Program to insure expeditious, economical, and effective accomplishment of work within the funds authorized by the Post Office Department.

(b) Provides central management within the Corps of all matters pertaining to the execution of the Postal Public Building program.

(c) Provides Washington level interface between the Post Office Department and Corps of Engineers agencies involved in the execution of this program.

(d) Provides staff supervision and management of the design and construction activities for the Postal Public Building Program, to include issuance of design and construction directives.

(e) Directs and monitors preparation and submission of periodic and special real estate, design, construction, and fiscal reports from Corps of Engineers field offices relating to the Postal Public Building Program. Consolidates such reports with data from OCE level and provides consolidated information to the Post Office Department.

(f) Develops consolidated forecasts and analyses of construction awards for the Postal Public Building Program. Reviews status of contract awards to isolate potential problem areas and institute corrective action. (3) Organization. See Tab G for organization chart.

(a) General. There are three general kinds of functions to be performed: those involving programs, those involving projects, and those involving technical aspects of design and construction.

(b) Program Level. The three assistants for construction, design, and planning and reports constitute program managers and, as such, will be concerned with program aspects as they relate in general to their particular responsibilities as well as be concerned with those matters which relate to two or more projects. In the case of the assistants for design and construction, they will ensure

that lessons learned during the development of one project will be passed-on to succeeding projects. The assistant for planning and reports will be responsible for the total program in terms of receiving information from the assistants for design and construction as well as the Director of Real Estate for consolidation into a total program and transmittal to the Post Office Department. The program managers will serve as the principal interface with the Post Office Department and the Corps field organization on program matters.

(c) Project Manager Level. The project managers constitute the heart of the organization. They will be concerned with matters pertaining to specific projects; when questions are raised with respect to a particular project, the responsible project manager will serve as the point of contact and the interface between the Post Office Department and the Corps field organization. The project manager will be responsible for a project from inception to completion. He will arrange to have analyzed by the appropriate Corps agencies the initial real estate, design, and construction schedules as well as the cost data developed by the Post Office Department, to determine whether the schedules and costs are realistic. When a functional design package is received from the Post Office Department, the appropriate project manager will turn it over to the chief of the specialists to have it reviewed for accuracy and sufficiency. He will attend at least the design concept reviews and will monitor the progress of design to ensure that design is on scheddule. One of the main responsibilities of the project manager is to monitor all schedules: real estate site selection, real estate site selection, real estate site acquisition, construction, as well as design so as to bring to the attention of the Chief, CEPCSO, at an early date, those instances wherein a completion date may have to be changed. All progress reports submitted by the districts and divisions will be reviewed by the project manager. If, at any time, questions arise in the field, within OCE, or within the Post Office Department, regarding a specific project, the project manager is the person to be contacted. (d) Specialist Level. All engineering specialists: architectural, civil engineering, electrical, mechanical, etc., will be formed as one group, the Technical Division. This Division will serve as the source of technical information and advice for the other members of the office. Its principal duties will be associated with the review of functional design packages, review of design conducted by the districts, and advice on construction matters. It is hoped that, by placing all specialists in one division, there will be "ripple" benefits for design and construction on a particular project as well as for the over-all program. For example, if there are certain crucial points regarding a functional design package, they can be followed during the design stage to ensure proper consideration and implementation. Equally, if critical design matters develop during the design stage, these persons will be in a position to ensure that these matters are brought to the attention of the S&I forces who can pay particular attention to them during construction. With regard to the over-all program, lessons learned on a particular project during review of the functional design package, during the various design reviews, or during construction can be applied to subsequent projects. With regard to project criteria, this division will be concerned with specific project criteria whereas the Engineering Division, Military Construction Directorate, will develop general project criteria, which is a normal function of this division.

(4) Staffing.

(a) General. The staffing requirements are based on the Postal Public Building Program for the next three years as envisioned by members of the Post Office Department. The staffing proposed in this paper is considered to be austere. Personnel will be assigned to the organization only as full workloads develop. Otherwise, personnel assigned to the Engineering and Construction Divisions will be employed on a part-time, as needed, reimbursable basis; the Postal Public Building Program will be charged only when services are rendered to the program.

(b) Executive Office. The Executive Office will consist of five persons:

1. The Chief, a brigadier general, will exercise over-all supervision of the program; however, it is expected that he will spend a great deal of his time interfacing with the Post Office Department and the field divisions. 2. The Deputy Chief, a colonel, will be responsible for managing and supervising the activities of the office.

3. The Executive Officer will be responsible for the administrative matters pertaining to the office.

4. The secretary-steno and the secretary will support the Executive Office and the assistant for construction.

(c) The Assistant for Construction and the Assistant for Design. As described previously, these individuals will be responsible for the program aspects of their areas of responsibility. These are envisioned as one-man offices; it is not considered, at this time, that they require assistants. The Assistant for Design will have the additional responsibility of Chief of the Technical Division. (d) The Assistant for Planning and Reports.

1. The Chief will manage his subordinates and will constitute the principal over-all program interface with the Post Office Department so far as concerns general status of real estate, design, and construction activities. 2. The Program Planner will be concerned with future programs and projects which the Post Office Department will be assigning to the Corps. He will also be responsible for preparing or coordinating replies to Congressional correspondence for forwarding to the Post Office Department.

3. The Program Analyst will analyze project progress and fiscal reports which will serve as the basis for preparing analytical reports reflecting program status and highlighting potential problem areas for use within OCE.

4. The Programs Specialist will be responsible for establishing and maintaining the necessary reporting systems so as to provide the information required by the Post Office Department. Formal reports furnished to the Post Office Department will be consolidated by this individual.

(e) Project Managers. The number of Project Managers will depend on the number of projects assigned to the Corps. As a starting point, it is considered that a Project Manager will be able to manage five projects. Experience will indicate whether this number should be increased or decreased. Project Managers will act in two-man teams to ensure continuity and back-up.

(f) Technical Division. Insofar as CEPCSO is concerned, it is considered that two teams will be able to handle the review of functional design packages and the subsequent reviews during the design process. Each team will consist of an architect as a team chief; a structural engineer; a mechanical engineer for heating, ventilation, and air conditioning; a mechanization engineer; and an electrical engineer. A landscape architect is also required for site development matters. The Division is rounded-out with a draftsman, a secretary-steno, and two typists. As mentioned previously, the Assistant for Design will double as Chief of this Division.

3. COSTS

a. Design and Construction Costs. These costs have four principal components: (1) District Design and Construction Costs. These costs include payments to contractors for design, construction, materials, and equipment. (2) Supervision and Inspection (S&I).

(a) Description. S&I of construction is the effort expended for supervision, inspection, and administration of construction contracts and includes but is not limited to services and activities such as: analysis of plans and specifications by the construction staff to establish construction sequence and to become familiar with design and construction requirements; the award and technical administration of construction contracts; review of drawings, manuals, and other information submitted by construction contractors; assurance that construction is performed in compliance with the drawings and specifications; negotiation, and preparation of contract modification documents; review and approval of contractors' construction schedules and progress charts; estimating and verifying quantities and preparation of documents for payments to contractors; and performance of other construction supervision, technical evaluations, management, and inspection not otherwise included in the foregoing summary. In general, S&I costs commence to accrue during or at phases of advertising/bidding/award/mobilization and essentially culminate with final acceptance and demobilization; however, some S&I costs continue to accrue until the contract is financially closed and transfer of records is accomplished.

(b) Where S&I Costs are Incurred. S&I costs are incurred, for the main part, at the District and job site construction offices by direct participation in the supervision, inspection, and administration of construction contracts. Norminal S&I costs are also incurred by the Divisions and OCE and are relatable to technical evaluation of construction in process, consulting services during construction, and material testing at Division laboratories.

(c) Factors which Influence S&I Costs. There are a number of factors which may directly influence the projection and accrual of S&I costs. These factors, which must be known or assumptions made in estimating their influence on S&I costs, are as follows:

1. Since S&I costs are made up primarily of personnel salaries, estimates must be based on a period of service, i.e., the construction schedule. If construction delays are encountered, such as, strikes, suspensions, terminations, weather, etc., the additional S&I costs may be directly proportional to the additional period of service over and above the original period considered in projecting and estimating S&I costs.

2. The program composition has a direct and major impact on S&I costs. The S&I rate will be significantly lower on large projects than on small projects.

3. Location of projects with respect to existing District and Project offices will affect S&I costs. Projects located within commuting distance of existing District offices will reduce travel and personnel relocation expenses. The reverse effect will be true where projects are not within commuting distances of existing Districts or construction project offices.

(3) Supervision and Review of Contract Design (S&R).

(a) Description. S&R costs are those incurred by Corps forces in the technical administration, supervision, and verification of the design of projects by A-E contractors and includes:

1. Predesign contract award activities, such as; development of project criteria, preparation of design contract documents, selection of A-E contractors, and contract negotiation and award.

2. Technical supervision and verification of the preparation of design analyses; bills of materials; cost estimates; and preparation of construction contract documents, such as, project working drawings and technical provisions of the specifications.

(b) Where S & R Costs are Incurred. These costs are incurred primarily at the District level. Design is procured either by:

1. A-E contract, in which case the contract is technically administered and supervised by the District staff, or

2. In-house design effort, in which case the design review is accomplished by separate technical personnel within the District of by the Division staff. For projects of unusual technical complexity, consulting services are provided by Divisions and the Office, Chief of Engineers.

(c) Factors Affecting. S&R costs will be affected by factors associated with the size of a total program, the program size for each design district, the ability of the customer to furnish criteria according to a schedule which permits optimum utilization of design staffs, and the particular geographical relationship of districts to the design contractors. Individual factors contributing will be: the range in project size and complexity, the extent and timing of changed criteria during the design period, the amount of lost design effort, and the length of time scheduled for design completion.

(4) Support Costs.

(a) District:

1. Description. Within a District, support is provided to the technical staffs by the executive, advisory, and administrative staffs plus a portion of the Supply Division. The organizational elements involved are the Executive Office, Comptroller, Public Affairs, Safety, Counsel, Personnel, Administrative Services, Security, and an ADP element (excluding direct support). In addition to salaries, there are miscellaneous expenses, involving printing and reproduction, office supplies, travel, transportation of office equipment and supplies, permanent change of station of District office personnel, and communication. The nature of functions performed by various organizational elements are:

(a) Executive. The District Engineer and Deputy District Engineer manage the activities of the district, review technical aspects of projects, and perform on-site inspections.

(b) Office of Comptroller. Performs functions such as internal review of district activities; preparation and coordination of district budgets; processing fund authorizations; finance and accounting; and management analysis.

(c) Public Affairs Office. Plans and executes programs to accomplish public information objectives; disseminates information to press and other media; and coordinates public displays.