v. CURRENT INITIATIVES This section focuses on the construction and contract management experiment mentioned above, in which two other Corps Districts were asked to present proposals for accomplishing two projects. The remainder of FY 1995 work will remain with the Baltimore District. The decision to undertake, during FY 1995, this construction and contract management experiment is consistent with the spirit of innovation called for in the National Performance Review and emerges from analysis of three broad options described in Section IV. The FY 1995 Construction and Contract Management Experiment Two small to mid-size projects funded in FY 1995 -design and construction of the McClellan Gate Restoration and design of the Custis Walk Replacement -- have been selected for this experiment. The Seattle and Norfolk Army Engineer Districts have each prepared a proposal for management of the work for one of these projects. Upon evaluation of the two written proposals, a decision will be made on accepting either or both of the two proposals. A key factor in this decision is whether or not the District submitting the proposal can deliver a quality product within budget and on a reasonable schedule. The funding available for FY 1995 for each of these projects, together with a description of what each proposal is to address, is explained in the following paragraphs. McClellan Gate Restoration A total of $660,000 is available in FY 1995 for design and construction of the McClellan Gate. The McClellan Gate, a red sandstone structure which was constructed in 1874, needs to be disassembled, the broken stone replaced, and the gate reconstructed. ANC contacted the Seattle District and explored management of this project. The Seattle District has technical expertise in historic structures and building preservation. The District was invited to submit-- and has now submitted-- a written proposal to complete design and manage the McClellan Gate Restoration project through construction. The proposal sets forth the district's execution strategy, to include the identification of which district will perform on-site oversight of the construction contract, a schedule for completion of design and construction, and an indication of whether the district can deliver the project within the cost estimate presented to Congress. Custis Walk Replacement A total of $250,000 is available in FY 1995 for design of the Custis Walk Replacement. The Custis Walk is a concrete walkway, extending one half mile, from Lee Mansion to the intersection of Ord and Weitzel Drive, with steps and resting areas. The existing walk, constructed in 1925, will be replaced. ANC contacted Norfolk District about managing this project. The Norfolk District was invited to submit-and has now submitted-- a written proposal to complete design and manage the Custis Walk Restoration project through construction. The proposal sets forth the district's execution strategy, to include their budget and schedule for the design phase of the project, for which $250,000 is available, and which district will perform on-site oversight of the construction contract. Other Initiatives In addition to the experiment described in this section, other steps to improve the efficiency of the work remaining with Baltimore have also been undertaken. These additional steps are described in detail in Appendix B. They include: > > > Holding off on budget requests for construction of new projects until concept design is 30-35 percent complete; Allocating sufficient funds in ANC's budget so that the necessary work to complete 30-35 percent concept design can be undertaken; Giving full consideration to revising plans for any construction project (where possible) rather than advertize for bids when the fully scoped official government estimate exceeds the amount available in the budget; and Fostering a better partnership between ANC and the In response to the direction given by the Senate Committee on Appropriations, this report has developed three alternative mechanisms for promoting competition and enhancing the range of choice for Arlington National Cemetery (ANC) in obtaining construction and contract management 89-497 0-95 - 3 services. Additionally, an on-going experiment has been described based on the third alternative wherein the Norfolk and Seattle Corps of Engineers Districts have developed proposals for providing support to ANC for selected projects in FY 1995, as an alternative to the Baltimore District. Finally, other corrective actions being taken by the Army, ANC, and the Corps have also been cited, since these actions too have been designed to address the same set of problems, namely cost increases and schedule delays, that led the Committee to ask for this report. The Army's commitment to improved performance at, ANC. must ultimately be borne out by measurable results. As described in this report, the Army's approach to solving the problems that have been identified is clearly incremental, which in turn requires an interim assessment and adjustments as deemed necessary. In evaluating the results of the steps already taken, the Army will ask three questions: > Was the work completed at or below the budgeted Was the work completed in a timely fashion? We are hopeful that this approach will result in efficiencies on ANC projects. If the approach does not work, however, we will continue to pursue other alternatives including the removal of obstacles that would prevent us from implementing the alternatives in the longer run. APPENDIX A LIST OF CONSTRUCTION AND CONTRACT MANAGEMENT SUPPORT SERVICES Functions Which May be Contracted Out to Private Sector Firms' > Managing project schedules and funding through both design and construction; > Performing in-house technical review of A-E designs; > Preparing required environmental documentation; > Performing biddability/constructibility review; > Negotiating with public and private agencies, if needed, for obtaining utility services for new and/or expanded facilities; Coordinating presentations to the National Capital Planning Commission and Commission of Fine Arts, as required; > Functions Inherently Governmental > > Selecting an architect-engineer (A-E) firm and negotiating A-E fees for planning and/or design contracts in accordance with the requirements of the Federal Acquisition Regulation (FAR); Managing and administering A-E design contracts and evaluating A-E performance; for designs performed in-house by Corps employees, managing in-house design progress and schedule; > Preparing construction contract solicitations, advertising for construction, receiving and evaluating bids/proposals, and awarding construction contracts in accordance with the FAR; Performing quality assurance services during construction to include shop drawing review and approval, supervision and inspection of work in progress, pre-final and final inspections, and post-completion inspections; > > Providing complete construction contract administration to include processing of change orders, making progress payments, managing funds, evaluating claims, and managing claims; and > Litigating contractor claims on behalf of the U.S. government. - Although these iters may be contracted out, Government personnel will be required to oversee, review and approve the procedures under which the services are delivered, as well as the products delivered pursuant to the contract. APPENDIX B ACTIONS TAKEN TO IMPROVE THE CURRENT PROCESS Action to improve the efficiency of the current process has already been undertaken. First, we are committed to identifying and funding the planning and engineering studies necessary to define and document project scope and requirements, determine sound engineering solutions, and provide a sound basis for establishing budgetary cost estimates for future design and construction Construction funding for substantial or complex construction projects will not be considered until a validated cost estimate, based on a concept design of at least 30-35 percent completion, is available. We will closely monitor and enforce existing management and contracting controls designed to ensure that we do not solicit or open bids for construction when the official Government estimate for the construction, that is, the estimate which the Government is required by law to produce just prior to bid solicitation, exceeds available funding. In the event the estimate for the full scope project exceeds available funds, we will attempt to restructure the solicitation with the goal of achieving a complete and usable facility within available funds. This can be done through deletion of work and/or redesign, and through the use of additive/optional bid items. Reprogramming will be considered only as a last resort, after exhausting all feasible alternatives. A new comprehensive Master Plan is now being prepared which will provide a vision of the cemetery's priorities and needs well into the next century. The Master Plan will identify future projects and when they will be needed, to include further detailed planning and engineering studies required to further define the cemetery's requirements and the feasibility of proposed capital improvements. As such, the Master Plan will form the basis for programming future projects, to include project planning and feasibility studies needed to support the programming and budgeting process. In addition to these measures, and of equal importance, are efforts to improve communication and the understanding of expectations and responsibilities of all parties involved in design and construction at ANC. To this end, monthly review meetings are being held between the Corps of Engineers project manager and the AC Engineer to discuss the status of all ongoing projects. The Baltimore District Engineer and the Deputy District Engineer for Project Management are meeting with the Superintendent of ANC quarterly to review progress and discuss problem areas. We will continue to work toward improvements in the relationship with the Corps, to include documenting process improvements in a new or revised Memorandum of Understanding, even as we explore other options for executing design and construction projects at ANC. |