Transforming Civil Works for the 21 st Century

1. Transforming Civil Works for the • 21st Century Major General Michael J. Walsh Deputy Commanding General, Civil and Emergency Operations and Steven L. Stockton, P.E. Director of Civil Works National Waterways Conference 27 March 2012

2. Imperatives for Action • We are now in a non-earmark environment • We fund too many studies/projects at less than capability • It takes too long to get studies and projects completed • It costs too much!! • We make sponsors and stakeholders unhappy due to lack of timeliness and cost effectiveness • We try too hard to justify unviable projects • In a budget constrained era, we must do what it takes to Be RELEVANT!! • Adapt or Die!

3. We Must Maintain our Core Competencies to be Relevant • Integrator • National/Global Perspective • Balancer • Systems Thinking • Diverse Technical/ Scientific Workforce • Ability to Marshal Capabilities • Integrated Delivery 3

4. Cross-Cutting Strategies • Systems Approach • Collaboration & Partnering • Risk-Informed Decision Making & Communications • Innovative Financing • Adaptive Management • State-of-the-Art Technology

5. Major Transformation Initiatives Asset Mgmt. & Recapitalization Planning Budget Development Methods of Delivery

6. New Study Paradigm Savannah Harbor Study • $41 Million Study Cost • 30 Inch Report • 16 Year Study Duration • $ 3.0 Million Study Cost • 3 Levels of the USASCE Vertical Team • 3 Year Study Duration • Main Report NTE 100 pages 30 Inches = Full Report

7. Planning ModernizationTop Four Performance Priorities • Improve Planning Program delivery (investigations and CG) and instill Civil Works-wide accountability • Develop a sustainable national & regional Planning operational and organization model • Improve planner knowledge and experience (build the bench) • Modernize planning guidance and processes BUILDING STRONG®

8. Paradigm for Future Planning • Single phase Study Process with clearly defined decision points • Actionable and concise decision documents • Quality engineering, economics and environmental analysis (NEPA) • Identification of areas of risk and uncertainty • A degree of consistency, but adaptable and scalable • Consistent with emerging concepts of revised P&G • Studies completed within 3 years, at a cost less than $3 million, in a binder not more than 3 inches thick (the “3-3-3” goal) • Review current 365 studies in the works, winnow out those unlikely to lead anywhere. BUILDING STRONG®

9. Transforming the Budget Development Process • Establish a goal-oriented, program based approach to budgeting • Establish vertical “mapping/alignment” of programs/BLs to National goals and objectives • Improve justification & defense of budget allocations • Incorporate integrated water resource management concepts into budget framework, as appropriate • Develop budget decision framework to assist in identifying the most important senior leader decisions • Develop timeline for full implementation of new budget process to all business lines that will evolve over multiple years

10. Change from a Program Management Perspective • Manage CW as a multi-year program…. • NOT as a collection of projects • but developed and implemented based on attaining national needs • with appropriate investment levels for programs, not projects • And prioritization of program implementation over 5 years/20 years, not 1 year • Pursue additional Federal and non-Federal direct funding sources • Inland Waterways recapitalization (IWTF) • Coastal federal channel maintenance (HMTF) • Hydropower recapitalization • Implement a recapitalization policy for all infrastructure • De-authorize projects that no longer serve their authorized purposes • Reform program development & prioritization to a ‘team event’ • Encourage, solicit participation by stakeholder & interest groups • Obtain their views on priorities, selection criteria, future planning initiatives, etc. • Other federal agencies w/common goals & priorities • Incorporate risk-based cost and schedule analysis into all budget and program decision-making BUILDING STRONG®

11. Asset Management & Recapitalization-The Aging Challenge • More objectivity for all Business Lines for condition and risk/consequence processes • Consistency, Repeatability and Transparency • Integrate Facilities and Equipment Maintenance (FEM) data into failure curves for critical components • Develop better non-economic risk data • Develop better spatial integration (watershed/system) • Develop better integrated life-cycle approaches • Develop Portfolio Trade-off (within and among projects) • Bottom Line: Will require a corporate approach to be successful

12. Methods of Delivery • Regional and National Production Centers • Regional – one or more within a MSC, but not every district • National – one or more within the Nation, but not every MSC • Business Process Changes • Increased in-house work • Centers of Standardization tweaking • Integrate a Human Capital Plan—the competence factor to delivery

13. Methods of Delivery-Path Forward • Move forward with: • Dam Safety Modification Design • Inland Navigation Design • Centers of Standardization • Military Construction Business Process Doctrine • Initiate plans for Deep Draft Navigation Economic Analysis and Energy / Sustainability • MSCs continue to apply Hedgehog Analysis • Evaluate High Priority/High Risk/Gap to determine where MOD changes are required

14. Managing “Mega-Projects” • A project controls’ team which has integrated program schedules, budget, document and communication controls • A fully integrated Team assigned early in design phase and responsible till completion • Integrated schedules • Quality management/change management Plans and Cost/Schedule Risk Analyses • Periodic project quality evaluations to independently ascertain quality of project execution • Collaboration-Professionally facilitated formal partnering

15. WEST COAST Seattle/Tacoma (>50’) Oakland (50’) LA/LB (>50’) San Diego (47’) Ready for the Panama Canal?U.S. Harbors 45’ or Greater EAST COAST NY/NJ (50’ underway) Baltimore (50’) Hampton Roads (50’) Charleston Morehead City GULF COAST Mobile New Orleans Houston/Galveston/Texas City Corpus Christi Freeport

16. U.S. Ports and Inland Waterways Modernization Strategy • Focus: How Congress should address critical need for additional port and inland waterway modernization to accommodate post-Panamax vessels. • Factors to address: • Costs associated with deepening and widening channels; • Ability of waterways and ports to enhance export initiatives benefitting the agricultural and manufacturing sectors; • Current and projected population trends that distinguish regional ports and ports that are immediately adjacent to population centers; • Inland intermodal access; • Environmental impacts resulting from modernization of inland waterways and deep-draft ports. • Report due to Congress June 2012

17. Final Thoughts • The potential capability of the Corps Civil Works Program is enormous • Our job is to anticipate, advise and shape national policy and action • Stand and deliver • The future is ours to change!

18. Questions ? US Army Corps of Engineers BUILDING STRONG®