US Army Corps of Engineers BUILDING STRONG ® Transforming Civil Works for the 21 st 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

BUILDING STRONG ® Imperatives for Action 2 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!

BUILDING STRONG ® 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

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

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

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

Planning Modernization Top 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 7 BUILDING STRONG ®

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 ® 8

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 9

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 10 BUILDING STRONG ®

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 11

BUILDING STRONG ® 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 12

BUILDING STRONG ® 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 13

BUILDING STRONG ® 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 14

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

BUILDING STRONG ® 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

BUILDING STRONG ® 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!

BUILDING STRONG ® 18 US Army Corps of Engineers BUILDING STRONG ®