CECW-P

DEPARTMENT OF THE ARMY U.S. ARMY CORPS OF ENGINEERS

441 G STREET, NW WASHINGTON, DC 20314-1000

JAN O 8 2019

MEMORANDUM FOR SEE DISTRIBUTION

SUBJECT: Economic Analyses for Deep Draft Navigation (DON) and Small Boat Harbor (SBH) Feasibility Studies

1. This memorandum provides additional guidance on economic analyses performed for DON and/or SBH feasibility studies including Continuing Authorities Program (CAP) Section 107 Studies-Navigation Improvements.

2. References:

a. United States Army Corps of Engineers (USACE) Operations Order (OPORD) 2012-15 "Designation of the National Deep Draft Navigation Planning Center of Expertise (DDNPCX) as a Mandatory Center for the Production of All Deep Draft Navigation Related Economic Analyses".

b. Section 107 of the Rivers and Harbor Act of 1960, Public Law 86-648, 14 July 1960, as amended (Section 107).

c. Engineer Regulation 1105-2-100, Planning Guidance Notebook, Appendix F #3 Continuing Authorities Program (CAP), August 2018.

d. CECW-P Memorandum dated Jan 19, 2018, Director of Civil Works' Policy Memorandum #1 Subject: Continuing Authority Program Planning Process Improvements.

3. Background:

a. Reference 1 a designates the DDNPCX as a mandatory center for the production and review of all DON and SBH economic analyses. It provides the USACE Commander's Intent (paragraph 3a), Concept of Operation (paragraph 3b), and Tasks to Subordinate Units (paragraph 3c), including establishing the South Atlantic Division (SAD) as responsible for the function of the DDNPCX.

b. The OPORD applies to all DON and SBH economic products including CAP Section 107 Studies. As described in the OPORD, economic analysis is a critical component of navigation studies. USACE created the DDNPCX as a mandatory economic production center to leverage navigation and economic expertise within USACE; to improve quality, efficiency, and consistency in the conduct of economic analyses; and to ensure economic analyses are performed in accordance with Civil Works' policies and technical requirements.

CECW-P SUBJECT: Economic Analyses for Deep Draft Navigation (DON) and Small Boat Harbor (SBH) Feasibility Studies

c. Reference 1 b provides continuing authority for USAGE to plan and construct navigation projects of limited size, cost, scope and complexity not specifically authorized by Congress.1

Section 107 projects may include DON and/or SBH features. 2 Major Subordinate Commands have responsibility for review and approval of CAP feasibility studies (Reference 1c).

4. Although Reference 1 a designated the DDNPCX as a mandatory production center for all DON and SBH economic analyses, not all study types and/or study authorities requiring DDNPCX involvement (e.g. , CAP Section 107 studies, Section 22 of WRDA 1974, as amended (Planning Assistance to States), etc. are specifically listed. Accordingly, Districts have performed the DON and/or SBH economic analyses without DDNPCX involvement for some studies not specifically identified in the OPORD. Execution of those economic analyses is more effective when in compliance with the OPORD and the Commander's intent to ensure the most technically competent, efficient, and cost effective delivery of DON and SBH economic evaluations.

5. Understanding the need to keep study costs commensurate with the scale of the project and the complexity of the analysis, the DDNPCX Technical Director and staff should prepare scopes of work for all navigation studies reflecting the base work required to minimally and fully comply with USAGE policies and technical procedures, regardless of study authority. Contingency plans and unit prices may also be developed by the DDNPCX to address additional work if requested by the home MSC/district. The DDNPCX Director also reserves the right to delegate roles and responsibilities to Divisions and Districts from time to time as he or she sees fit.

6. Requirements:

a. Within the limits of other laws and regulations (such as Office of Management and Budget (0MB) rules), HQUSACE reaffirms to MSCs/Districts that the DDNPCX is responsible for production and oversight of all DON and SBH economic analyses (i.e., data gathering, analysis, modeling, and documentation), regardless of study type or authority through which project improvements are pursued, including CAP Section 107s and Section 22 Planning Assistance to the States;

b. The DDNPCX Director is responsible for Review Management and assignment of Agency Technical Review for all DON and SBH economic products including providing Program Oversight of the Small Boat Harbor Planning Sub Center of Expertise economic reviews.

CJ,Llt~ ~~PH H. REDICAN Acting Chief, Planning and Policy Directorate of Civil Works

Distribution for Commanders: (Cont.)

1 The current federal project limit is $1 OM (for study, design, and construction) ; cost-sharing varies by depth of the project to be constructed . 2 'Deep draft' is defined as navigation channels with depth greater than 14 feet (Engineer Regulation 1105-2-100, paragraph 3-2. Navigation).

2

CECW-P SUBJECT: Economic Analyses for Deep Draft Navigation (DON) and Small Boat Harbor (SBH) Feasibility Studies

Great Lakes and Ohio River Division Mississippi Valley Division North Atlantic Division Northwestern Division South Atlantic Division South Pacific Division

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