Winter Leader Conference February 4, 2009 “ Building Strong “1 The FY 2011 CW Program Mr. Pete...

Winter Leader Conference February 4, 2009 “ Building Strong “ 1

The FY 2011 CW Program

Mr. Pete LuisaMr. Pete Luisa1 March 2010 1 March 2010 PNWAPNWA


• US Ports & Waterways convey > 2B Tons Commerce • Foreign Trade alone creates > $160 B Tax Revenues

Recreation areas 376 M Visitors/yrGenerate $15 B in economic activity,

500,000 jobs

11,000 miles of Commercial Inland

Waterways:½ the cost of rail1/10 the cost of

trucks

400 miles ofShore protection

8500 Miles of Levees

299 Deep Draft Harbors

EmergencyOperations

Stewardship of11.7 Million Acres

Public LandsEnvironmental

Restoration

627 Shallow Draft Harbors

Regulatory

¼ of Nation’s Hydropower: $500 M + in power sales

Civil Works Value to the NationCivil Works Value to the Nation


PROGRAM STRUCTURE

Business LineNavigation Coastal harbors; Inland WaterwaysFlood Damage Reduction Riverine Floods; Coastal StormsEnvironment Aquatic Ecosystem Restoration Stewardship Formerly Utilized Site Remedial Action HydropowerRecreationWater SupplyEmergency Regulatory

AccountInvestigations Construction Operations & Maintenance Mississippi River & Tribs Regulatory Program Formerly Utilized Sites Remedial Action Program Expenses Flood Control & Coastal Emerg


Budget Reviewed & Presented to SecArmy

(Jun - Aug )

OMB Passback( Nov )

Budget Submitted to OMB ( Sep )

President’s Budgetto Congress ( Feb )

All Offices DevelopProgram Requirements

( Feb - May )

Appropriations Bills( Jul - Sep )

Cong. Hearings ( Mar - Apr )

President Signs Approp. Bill ( Sep - Oct )

OMB-ASA GUIDANCE ( FEB-MAR )

Funding Alloc. To Field Offices

( Oct - Dec )


FY 09 PROGRAM PROCESS

Use Performance Measures and Policy Direction Guidance memo to: · Rank competing investments in each business program · Demonstrate improved outcomes from added increments

Develop amounts based on their own internal performance metrics for: · GE; REG; FCCE; REC; ENV Stewardship; FUSRAP

Develop Performance Based program for project competing business lines: · Initial level (No new work, phases or contracts, previously budgeted projects only) · O&M at 75% of last 5 years budget; Investigations same as PY-1. · Categorize and Prioritize CG projects into Priority levels · Add Performance Base High Return items and increments for GI and O&M items

Add to the Highest Priority, ongoing projects & contracts to “Final Budget”


Budgeting Measures

Construction

FRM & NAV & HYDRO - Benefit to Cost Ratio

FRM & NAV - Dam Safety & Seepage Stability

FRM – Construction Flood “Risk” Index

ENR - Loss prevention for significant natural resources

O&MNAV – Tonnage movements

FRM & NAV & HYDRO – “Risk” Assessments

ALLNew/Continuing/Completing/Years to Complete

Watershed Elements

ESA & compliance needs

Safety, Caretaker, Compliance, Subsistence


PROGRAM COMPARISON($ millions)

FY08 App FY09 Bud FY09 App FY10 Bud FY10 App FY11 Bud Investigations 167 91 168 100 160 104Operation & Maintenance 2244 2475 2202 2504 2400 2361Construction 2294 1402 2142 1718 2031 1690Miss. River & Tribs. 387 240 384 248 340 240Regulatory Program 180 180 183 190 190 193Flood Control & Coastal Em. 0 40 0 41 0 30F.U.S.R.A.P. 140 130 140 134 134 130Expenses 175 177 179 184 185 185OASA(CW) 5 6 4.5 6 5 6

Total 5592 4741 5403 5125 5445 4939


Budget Arithmetic

Civil Works Budget Math $4,800 mil

• Allocate GE, REG, FCCE, REC, FUSRAP… - 900• Allocate Base O&M (~75% of required) - 1,800• Essential Dam Safety - 500• High Performing Construction - 700• Life Projects - 200• Environmental Requirements - 200• Planning Studies - 100

• Minimum Essential Allocation = - $4,400

• Left for all other CW Projects & Programs ~ $ 400 mil*• Use the $400 mil to restore project O&M to prior year levels


NEW ACTIVTIES & HIGHLIGHTS

Construction – Louisiana Coastal Area, LA., Onion Creek, TX.

Investigations – Water Priorities Study Water Resources P&G Support

O&M – Coastal Data Information Program Global Change Sustainability Program

$82.3 M from the IWWTF$764.4 M from the HMTF$58 M to be cancelled from the MR&T


CW Funding Through FY11 Budget

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Thousa

nds

Budget Request Final Approp.


And for the Out Years …

• Expect a major debate on Federal funding priorities to commence with the FY 11 budget and continue beyond

• We will continue to place a high priority on execution of all that is appropriated

• We will seek to improve our budget ‘defense’ of the value to the nation of the water resources infrastructure for which we are responsible


ARRA Breakdown by Account

SUMMARY OF APPROPRIATIONS

($Billions)• Investigations $0.025

Construction $2.000• O&M $2.075• MR&T $0.375• Regulatory $0.025• FUSRAP $0.100• TOTAL $4.600


American Recovery and Reinvestment ActSelection Criteria - I

Purposes of the Law:

To preserve and create jobs and promote recoveryTo assist those impacted by the recessionTo provide investment needed to increase economic efficiency by spurring

technological advance in science and healthTo invest in transportation, environmental protection, and other

infrastructure that will provide long term economic benefits To stabilize State and local government budgets

Criteria in Conference Report refer to project, programs or activities that will:

(1) be obligated/executed quickly; (2) result in high, immediate employment; (3) have little schedule risk; (4) be executed by contract or direct hire of temporary labor; and (5) complete either a project phase, a project, or will provide a useful service

that does not require additional funding.


Stimulus-Project Selection Criteria *

Criteria Implementation

Obligate/execute quickly;

High, immediate employment

Sort and select by awards and/or completions dates

Little schedule risk Districts filter out all projects with schedule risk

Complete phase, project, element, or will provide a useful service with no additional funding

Districts prepare work packages accordingly

Execute by contract or direct hire of temporary labor

No in-house labor except for OH/E&D/S&A

No reimbursements

No land purchase

* No cost sharing with Inland Waterways Trust Fund Significant “transparency” requirements for tracking, monitoring and reporting of specific metrics All unobligated funds (except for E&D, S&A and claims) expire 30 Sep 2010.


Civil Works Recovery Act Status

Programs Planned

($M)

Obligated

($M)

Outlays

($M)

Projects

Planned/Started

(#)

Operation & Maintenance

$2,075 74%

$1532

23%

$486

533/521

Construction $2,000 53%

$1049

11%

$221

175/147

Mississippi River & Tributaries

$375 58%

$218

31%

$117

45/37

Formerly Utilized Sites Remedial Action Program (FUSRAP)

$100 90%

$90

13%

$13

10/10

Investigations $25 64%

$16

24%

$6

66/54

Regulatory Program $25 46%

$12

33%

$8

1/1

Program Status:• Congress appropriated and U.S. Army Corps

of Engineers (USACE) Civil Works Program planned to spend $4.6 billion in the Recovery Act funds.

• U.S. Army Corps of Engineers (USACE) obligated $75 million during the week ending, January 29 bringing the cumulative obligation total of Recovery Act funds to $2,917 million, 63% of the appropriation.

• USACE cumulative total outlays as of January 29 was $851 million, 19% of the appropriation.

• End of March obligation target = 76%

830/770


# o

f C

on

trac

ts

FY10 Civil Works ARRA Execution All Programs

Data a/o 29 January 2010

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

$ M

illi

on

s

0

100

200

300

400

500

600

700

800

900

Basic Sched 64 127 328 333 613 77 89 230 289 180 272 57 26 39 18 24 26

Current Sched 110 223 381 454 771 84 103 208 292 192 345 58 22 32 14 20 18 16

Actual Aw ds 124 267 434 453 738 103 134 209 175

Basic Sched (cum) 228 535 899 1,308 2,214 2,404 2,562 2,733 3,050 3,286 3,667 3,743 3,881 3,955 4,072 4,144 4,266

Current Sched (cum) 228 535 899 1,308 2,214 2,404 2,568 2,801 3,065 3,294 3,680 3,771 3,903 3,985 4,099 4,188 4,331 4,431

Actual Oblig (cum) 228 535 899 1,308 2,214 2,405 2,569 2,803 2,948

May-09

Jun-09 Jul-09Aug-09

Sep-09

Oct-09Nov-09

Dec-09

Jan-10Feb-10

Mar-10

Apr-10

May-10

Jun-10 Jul-10Aug-10

Sep-10

FY 2011


ARRA PLANNED ACCOMPLISHMENTS

Hydropower

35 projects repaired or improved

Environmental Infrastructure

148 Local water supply & wastewater project constructed

Recreation 460 recreation areas maintained or upgraded

Navigation 48 Locks repaired or improved

Flood Risk Management• 122 Dam safety

• 76 Local Protection

• 96 Dams repaired or improved

• 10 Emergency bank protection

• 820 Levee inspections


How We All Contribute

• USACE: – Develop the vision, goals, objectives in an open, collaborative way– Implement the Strategic Plan

• Administration: – “Walk the performance-based budget talk.”

• Stakeholders:– Contribute to vision, Goals, Objectives, Metrics

• ALL: Keep Communicating! - A Vision to be the desired future state of water resources and the desire to have a water resources infrastructure that will serve this Nation’s economic, quality of life needs, today and into the future.

Winter Leader Conference February 4, 2009 “ Building Strong “1 The FY 2011 CW Program Mr. Pete...

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