Total of cost increases. 1, 333, 297 60, 709 25, 271 1, 419, 277 1, 469, 670 255, 343 129, 643 1,854, 656 2, 802, 967 316, 052 154, 914 3, 273, 933, 000 124.0 CONTENTS Frontispieces: Map showing projects studied in field__ Appropriations history of 182 current civil works projects. Summary. I. Initiation of civil works projects, and their authorization-statutory II. Appropriation of funds to initiate construction of authorized projects. Exhibit 2: Status of definite project report for each of Exhibit 3: 89 projects in the 1951 civil works program Exhibit 4: 50 projects in the 1951 civil works program IV. The 124 percent increase in the cost of the civil works program.. (a) Importance of recomputation of benefit-cost ratio after the Exhibit 6: Benefit-cost ratio tables__. (b) Detailed breakdown by categories of the 124 percent cost Exhibit 7: Inadequacies to indicate extent of increase V. The definite project report-its development and present use. (c) Need for early completion of the Engineering Manual for (d) The paradox in planning projects after authorization- (e) Improvements in the planning procedure either already VI. The "planning report"-a solution designed to assure Congress a (a) The Missouri River. (c) Projects for which the Corps does not require definite proj (f) Contingencies___ VIII. Need for corps to furnish current information to the committee at the time that appropriations are being considered. (a) Gavins Point IX. Handling of public funds by the Corps of Engineers-accounting procedures. X. Reduction in maintenance and operation of projects whose need is negligible.__ XI. Surplus and obsolete material_ XII. Recommendations of committee's staff and corps' position thereon___ Exhibit 11: The 26 recommendations of investigative staff of House Appropriations Committee with respect to policies and procedures of Corps of Engineers, and position of corps with respect to each recommendation.. Appendix.- Chart showing the status of the Engineering Manual for Civil Works_ Development of policies and procedures of the Corps of Engineers for the planning of civil works projects. Page 118 119 119 120 120 121 121 122 122 122 122 123 123 123 123 123 124 124 124 124 124 124 125 126 126 127 127 127 128 128 129 130 130 130 133 135 Summaries of planning for individual projects_ 142 Directives of June 22 and 28, 1951, prescribing improvements in accounting procedures... 147 REPORT OF COMMITTEE COUNSEL SUMMARY The procedure for the initiation of civil-works projects, and their authorization, is regulated by statute and practice. (The authorizations are contained in special acts for individual projects or in omnibus river and harbor and flood-control acts.) However, the steps that follow, looking to the appropriation of money for planning and construction, have not been formalized to the same degree. The result has been that the Corps of Engineers has requested and received tremendous sums of money for these projects without completing the planning of authorized projects, and thereby assuring that sound cost estimates for construction and other important data are furnished to Congress. Such information can be compiled only through careful planning on the part of the Corps of Engineers after the statutory authorization of projects and before funds are appropriated to initiate construction. Once civil works projects are authorized, experience has shown that the cost has increased inordinately-124 percent for the current program up to fiscal year 1952. Included in this increase are items that better planning would have taken into account and on which savings could have been achieved. These items are (1) inadequacies (errors in estimating), (2) unforeseen conditions, (3) changed local needs, and (4) engineering modifications. They are responsible for a cost increase of $800,000,000, amounting to 30.6 percent of the authorization estimate for the current six billion dollar program. Congress authorizes civil works projects on the basis of reports known as survey reports which are submitted by the Secretary of the Army to Congress and printed. Survey reports do not sufficiently develop the details of proposed projects to the extent necessary for 'consideration of the crucial question by the Appropriations Committees of whether to appropriate funds to start construction. Notwithstanding, in 139 of the current 182 projects the Corps asked for initial construction funds on the basis of survey reports, supplemented by general data. To close the gap between the preliminary planning embodied in the survey report and the detailed planning required to initiate construction, the Corps has administratively prescribed that a second report be prepared, based upon detailed planning after the survey report. This second report is known as a definite project report and embodies in detail the necessary engineering and estimating. The definite project report constitutes a sound basis upon which the cost of a project may be computed. The Corps of Engineers has advised the House Appropriations Committee, as recently as April 3, 1951, that construction funds are not requested until after completion of the definite project report, because this report does two things: 1. It furnishes "as sound a figure as possible to determine the cost;" and |