EXHIBIT 10

This table graphically demonstrates the need for better planning. Such items appear as an increase of 4,839 percent in the cost of relocations on an individual project (authorized in 1945) at a time when the relocation program was only 3 percent completed, and an increase of 3,396 percent in the cost of relocations on another project (authorized in 1941) when only 1 percent of the program had been completed. In the land acquisition category, there are such increases as 815 percent at a time when the land program was 27 percent completed (on a project authorized in 1945), and 1,320 percent when land acquisition was not even started (on a project authorized in 1941).

V. THE DEFINITE PROJECT REPORT ITS DEVELOPMENT AND

PRESENT USE

The procedure of completing the planning for authorized projects and incorporating the details of completed planning in the definite project report was established administratively by the Corps of Engineers in 1936. From then until the present, the content and purpose of the definite project report has been the subject of a series of orders and regulations issued by the Corps of Engineers.

At present, the corps regards the preparation of the definite project report as an important step in the detailed planning of a project because it closes "the gap between the preliminary engineering design completed during the survey stage and the final engineering design necessary to initiate construction of projects." 20

This quotation and statements made in other official documents of the corps clearly express the need for the preparation of the definite project report prior to the time that initial construction funds are requested. This view was stated by General Pick and Colonel Potter in the April 1951 hearings. It was restated several times in the corps' formal answer dated April 16, 1951, to the staff report. Thus, on page 15 in paragraph 19 the formal answer states:

Definite project reports, including revised cost estimates and economic analyses, are prepared before funds for construction of a project are requested. When projects do not meet the current test of economic soundness they are not started.21

As stated earlier, the fact of the matter is that on a large number of projects the Corps of Engineers either had not completed the definite project report, or any section thereof, prior to the time that it requested funds for initial construction of individual projects. This was true in 89 out of the 182 projects in the current civil works program. On an additional 50 projects, the definite project report is not required by the corps and, therefore, has not been prepared. As a result, in 139 out of 182 of the projects, detailed planning and the computation of accurate cost estimates subsequent to the survey report were not achieved.

(a) Development of the definite project report procedure

The corps in its first general regulation dealing with the development of definite project reports, under date of April 12, 1939, stressed the importance of the full development in the definite project report of all the factors involved in projects in order "to crystallize a plan of

20 Civil Works Administration, Initiation of Projects, prepared during 1949-50 for use in the Engineers School at Fort Belvoir, Va.

21 See also p. II-19, par. 33a, and the full discussion by the corps of this point in appendix IV to the formal answer. In pars. 5 and 7 thereof, the corps states unequivocally that the justifications for construction funds presented to the Appropriations Committees are based upon the definite project report.