Department of the Army Historical Summary: FY 1982

11

Special Services

Civil Works

The Assistant Secretary of the Army (Civil Works) supervises, directs, and manages the Army Civil Works Program. In that capacity he has exercised leadership in setting forth the Reagan administration's policy of increased cost sharing and upfront financing for planning, constructing, operating, and maintaining federal water resources projects. Legislation was introduced this year, but not enacted, to recover capital operational and maintenance costs for deep draft and inland waterway projects. Initially, recovery would be sought for the starts of both new project construction and new feasibility studies and for recreational development.

Development of "Two-Phase" Planning

During fiscal year 1982, the administration's policy of greater reliance on state and local initiative and the reduction of federal outlays was extended to planning studies for potential new civil works projects. The Assistant Secretary of the Army (Civil Works), in conjunction with Corps of Engineers planners, developed a proposal for two-phase planning, under which costs for an initial reconnaissance study would be borne entirely by the federal government, but costs for a full feasibility report and environmental impact statement would be shared with local project sponsors.

Testifying before the Subcommittee on Energy and Water Development, House Appropriations Committee, in February 1982, Assistant Secretary of the Army William Gianelli stated:

I am concerned with the length of time it takes to complete a typical feasibility study, the high cost of individual studies, and the high proportion of unfavorable studies upon which substantial resources have been expended I, therefore, feel it is imperative that we take steps to allow the Corps to concentrate its planning resources, manpower and budgetary, on the more important studies which have the best chances of implementation.
I am proposing that, beginning in fiscal year 1983, all new studies pertaining to specific problem areas be undertaken in two phases. The first phase will be a reconnaissance phase financed 100 percent with

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Federal funds and normally completed within a year. The second phase will be a feasibility study to be cost shared with local project sponsors. I would view the reconnaissance study to be fully funded when it receives its initial appropriation. It would establish: the definition of the problem and its potential solutions; a determination of whether or not study proceed further, based on a preliminary appraisal of costs, benefits, and environment impacts of alternative solutions; an estimate of the costs of the second phase of the feasibility study; and identification of local sponsors and indications of their willingness to participate in the feasibility study on a cost-sharing basis.
I believe that this procedure will not only speed up the planning process, but will increase the proportion of studies which leads to successful solutions of problems.

The Corps of Engineers reviews applications for permits for dredge and fill projects and other construction-related activities in U.S. waters. Under Section 404 of the Clean Water Act, Section 10 of the Rivers and Harbors Act, and Section 103 of the Marine Protection Research and Sanctuaries Act, 16,800 permit applications were reviewed and decisions reached in fiscal year 1982. Tens of thousands of additional minor activities are covered each year by general permits, which are issued to the public at large and eliminate the need for formal processing of individual permit applications.

The regulatory program of the Corps of Engineers had become needlessly burdened by red tape that caused excessive delays in the processing of individual permit applications. Consequently, the program was designated for review by the Task Force on Regulatory Relief, chaired by Vice President George Bush. On 7 May 1982, the task force announced a series of reform measures the Corps would undertake to streamline its regulatory program.

These reforms, to be implemented over an extended period of time, addressed the following areas: reducing uncertainty and delay in the processing of permit applications, giving the states more authority and responsibility, reducing conflicting and overlapping policies, expanding the use of general permits, and clarifying the jurisdictional scope of the program.

Pursuant to the task force directive, in July the Army signed new memoranda of agreement with the Environmental Protection Agency and the Departments of Interior and Commerce. These agreements sought to alleviate "to the maximum extent practicable, duplication, needless paperwork, and delays in the issuance of permits."

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These federal agencies have the responsibility of commenting to the Corps about the environment, wildlife, and other aspects affected by proposed dredging or filling operations. The previous memoranda had provided for four layers, or elevations, of automatic review of individual permit decisions whenever a commenting agency disagreed with the approach adopted by the Corps. This procedure often resulted in long delays, which would be greatly reduced by the new memoranda.

In addition, on July 22, the Corps issued its first formal regulations implementing some reforms. The regulation primarily covered administrative procedures to reduce processing time and the expansion of nationwide (general) permits.

In May 1982, President Reagan directed the Secretary of Defense to prepare a comprehensive plan for the long-term solution of flood control and navigation maintenance problems in the Mount St. Helens area. The eighteen-month $1.25-million investigation was scheduled for completion in November 1983. An emergency situation arose at Spirit Lake caused by the rising water level, which heightened concern over the stability of the debris avalanche trapping the lake. The increased potential for failure of the debris dam during the 1982-1983 water year and the resulting damages downstream on the Toutle and Cowlitz rivers caused President Reagan to make an emergency declaration on 19 August 1982, calling for both interim and long-range solutions to the problem. The Portland District Office contracted to have an interim solution-pumping-in place and operating by November 1982 to alleviate the immediate emergency. The cost estimate for this was $11.5 million, which was funded with Public Law 84-99 supplemental funds provided by Public Law 97-216.

The Dam Safety Assurance Program, initially funded in fiscal year 1980, examines older completed Corps of Engineers dam projects in order to identify and modify those which are considered potential safety hazards. Studies of potential problems, and all preconstruction, planning, and construction estimates of under $5 million, would be accomplished with Operation and Maintenance funds. All construction estimated to cost over $5 million would be done with Construction, General, funds. Fiscal year 1980 appropriations included $8 million of Operation and Maintenance, General, funds for studies and designs involving 170 projects, while from fiscal year 1981 appropriations came $20.3 million for 130 projects. Fiscal year 1982 appropriations included $21 million of Operations and Maintenance, General, funds for studies and designs on 124 projects and $9.3 million for construction on 3 projects.

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In the EPA (Environmental Protection Agency) Superfund (toxic and hazardous waste clean-up) field, an interagency agreement between EPA and the Army, signed on 3 February 1982, allowed the Corps to carry out design, construction, and technical assistance programs for the EPA. Assignments through fiscal year 1982 were the following:

Construction:

Design: None
Technical assistance: Seven assignments under way

EPA provided a general fund of $200,000 to cover small and miscellaneous tasks, which could be authorized at the EPA headquarters level.

Work assignments from the EPA regions came more slowly than first expected, and by the end of fiscal year 1982, it appeared that the workload would not reach full momentum until fiscal year 1984. Since the EPA Superfund program was an opportunity to demonstrate the Corps' ability to perform work for other agencies, responsive service and close working relationships with the EPA regions were critical for success. The design center concept was being implemented at the Corps' Missouri Division, which provided the specialized expertise and capabilities necessary to perform Superfund assignments. Central to this concept was the development of "centers of competence" in specific technical disciplines that could support the entire Corps. For the Superfund, these disciplines included chemists, chemical engineers, toxicologists, and industrial hygienists. Integrating chemical health and safety aspects into Corps design and construct activities was a major responsibility of the design center.

A five-year, $8-million Shoreline Erosion Control Demonstration Program to develop, demonstrate, and disseminate information on low-cost shore protection was completed. The program involved the evaluation of means, including vegetation, that private property owners on low wave-energy shorelines could use to protect against erosion damage. More than 250 devices were investigated, while over 70 were planned, designed, constructed, and monitored by selected Corps of Engineers coastal districts at sixteen sites. Data was analyzed and a series of reports was

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prepared. A final report on the program detailed the experience with each device at the sites and included extensive evaluations of the structural and functional behavior, along with time, cost, and maintenance estimates. This report was submitted to the Secretary of the Army on 1 June 1982.

The major results of the program, however, were the production of a 36-page, full-color brochure, which presented an overview of the program, and three reports that took specific site results and transformed them into generic design and decision criteria for three specific audiences. The first report, for the private property owner, instructed the reader on how to make rational decisions on whether or not to commit responsibilities on the problems, actions, and consequences involved with shoreline erosion and control. A series of workshops was conducted to transfer the results of the program effectively and efficiently to the Corps coastal districts. In addition, an audio-visual package was prepared to assist district personnel in disseminating the results of the Section 54 program to the public.

Section 12 of the Water Resources Development Act of 1974 (Public Law 93-251) enabled the Secretary of the Army to review annually and recommend to Congress deauthorization of selected water resources projects. As a result of this program, seven annual reports have been submitted to Congress and 465 projects have been deauthorized. The aggregate construction value is $4.43 billion in terms of actual dollars calculated at the time of the last update of project costs-in some cases, in the late 1800s. The funding appropriated for this program to date was $1.9 million. Key benefits included the clarification of federal intent for potentially affected local residents, improved management of information, and more accurate representation of the backlog of unconstructed projects.

During fiscal year 1982, the Army revised and published AR 200-1, "Environmental Protection and Enhancement." This regulation brought Army policy into line with national goals for protecting and enhancing the environment. Major policy changes were put into effect in the areas of hazardous waste management, environmental noise abatement, and toxic and hazardous material management.

To implement the National Environmental Policy Act, the Army published Interim Change 101 to AR 200-2 on 22 December 1981. It emphasized the need to integrate environmental

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documents with other planning documents, rescinded the requirement to prepare environmental impact statements (EIS) for ongoing missions, and provided for major command processing of certain EISs. On 15 September 1982, these interim changes were incorporated into Change 1, AR 220-2.

In the field of waste management, Congress passed the Military Construction Codification Act, Public Law 97-214, on 12 July 1982. This law increased the amount of proceeds from the sale of recyclable materials that could be spent at a military installation from $50,000 to $2,000,000. The scope of the recycle programs was expanded beyond wastepaper, used oil, aluminum, and glass to all material sold as scrap or waste. Reporting requirements were deleted. In addition, several important decisions were made in the field of hazardous waste management. On 26 July 1982, the Environmental Protection Agency promulgated final regulations for hazardous waste land disposal facilities. This was the final step needed for Army facilities that handled (treated, stored, or disposed) regulated hazardous wastes to obtain full permit status. This process, however, would take several years and would depend on EPA and state priorities. In addition, the Army identified its requirements for hazardous waste storage facilities for Defense Logistics Agency programming action under policies set forth in DOD Defense Environmental Quality Program Policy Memorandum, DEQPPM 81-3, "DOD Hazardous Material Disposal Policy." This cooperative effort should culminate in the construction of adequate facilities to store hazardous materials that meet regulatory permit conditions and is expected to continue beyond fiscal year 1985. DEQPPM 81=5, "Department of Defense Installation Restoration (IR) Program," was published in December 1981. It directed DOD components to revise their IR programs to conform to a new concept plan. Additionally, the Army was to develop a charter for an IR technical coordination committee, which it would chair. Both actions were completed during the fiscal year.

On 20 April 1982, the Assistant Secretary of the Army (Installations, Logistics, and Financial Management) directed the Assistant Chief of Engineers to establish a hazardous materials management working group at the Army staff level to develop a streamlined approach to managing hazardous material. Under the leadership of the Environmental Division, the group drew up a list of issues with milestones and conducted several work sessions. Major changes in functional responsibility for Army staff elements should follow upon acceptance of the group's recommendations.

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The EPA issued the National Oil and Hazardous Substances Contingency Plan (NCP) on 16 July 1982 with an effective date of 10 December 1982. The NCP named the Department of Defense as the on-scene coordinator for oil or hazardous substance releases from DOD facilities or vessels and provided procedures to be followed in such emergencies.

Aberdeen Proving Ground, Maryland, won the Secretary of the Army Environmental Quality Award for its superior program during 1981. Fort McClellan, Alabama, was selected as first runner-up, and the Red River Army Depot, Texas, was picked as second runner-up. An Army staff environmental committee of the Army staff judged seven competing installations on the overall quality of their written presentation and their program achievements. Secretary Marsh presented the award at Aberdeen Proving Ground on 22 October 1982.

AR 11-27, "Army Energy Program," was extensively revised to update and consolidate responsibilities and to provide guidance on the Army energy program. For the first time, the program required full-time energy management offices at all levels, down to and including installations.

The Army's energy goal for fiscal year 1982 was a 15.6percent reduction from a baseline consumption level in fiscal year 1975 of 288.15 trillion British thermal units (BTU). It only achieved a 13.5-percent reduction because of increased training requirements and equipment modernization. While the goal was not met, the reduction represented the equivalent of saving 6.7 million barrels of oil for a cost avoidance of $355 million.

The DOD Energy Conservation Investment Program (ECIP) promotes energy conservation by retrofitting existing buildings. It remains the backbone of the Army's Facilities Energy Conservation Program. To accomplish Army energy goals, $955 million is required for the program in fiscal years 1983-1987. Since fiscal year 1976, $356,543,000 has been appropriated for ECIP. When all ECIP projects have been completed, the Army expects to realize a yearly savings of $68,690,000. In addition, an annual savings equivalent to 3.1 million barrels of oil is anticipated.

In 1976, the Army initiated the Energy Engineering Analysis Program (EEAP) to reduce energy consumption in existing facilities. Since then, energy conservation techniques at each major Army installation have been studied to determine their practicability and to calculate energy savings and cost. Techniques

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analyzed included both major and minor building and equipment modifications, equipment replacements, energy management and control systems, and operational and procedural revision. The results of the EEAP studies were listed by project and given a priority rating in terms of energy savings and economic considerations for funding under ECIP or by military construction authorizations. Low- and no-cost projects were developed for implementation by installation personnel. In addition, conversion from critical petroleum-based fuels to coal or renewable energy sources such as solar or biomass was analyzed on a selective basis.

The Energy Monitoring and Control System (EMCS) controls the operation of mechanical and electrical systems in building to optimize energy consumption and reduce energy and operating costs. During fiscal year 1982, FMCS suppliers and installers continued to experience significant delays in fielding new systems. The most notable problems were in the areas of the development of computer program software and the inability to demonstrate required system operating capabilities as specified in the procurement contracts. An EMCS Program Management Plan was developed and implemented which provided for a consistent and coordinated approach to solving EMCS problems. In addition, the Corps of Engineers began developing a new guide specification that covered the preparation of new buildings to be serviced by EMCS. It also continued work on seven new guide specifications dealing with requirements for EMCS transmission media and fielded requests for EMCS descriptive literature, as well as coordinated and developed joint-service EMCS training courses for both construction inspection and operating personnel.

In fiscal year 1975, the Office of the Chief of Engineers directed field offices to include solar heating, cooling, and domestic hot water heating on MCA projects in order to demonstrate the potential of solar energy and to allow the field offices to become experienced in the design and construction of these systems. The initial effort was limited to sixteen projects three bachelor enlisted quarters, three dining facilities, three reserve centers, a school, a dental clinic, a hospital, and a range operations center. The remaining three projects (a headquarters and classroom building, a family housing unit, and a central plant for forty housing units) were partially funded by the Department of Energy. Since cost effectiveness was not a prime consideration, these systems probably will not meet current economic requirements.

A solar energy requirement was included in the fiscal year

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1979 (PL 95-356) and fiscal year 1980 (PL 96-125) Military Construction Authorization acts. Essentially these acts required that engineering economic studies be undertaken and that solar energy systems be installed, where cost effective, in all new facilities. As a result, in fiscal year 1982, 8 solar projects were operational, including approximately 950 housing units. In addition, close to 115 other projects were studied and were found not to be cost effective. A few projects were cost effective, but could not be constructed because of a lack of funds.

Several incidents during the late 1970s at command, control, and communication (C3) facilities crucial to the national defense had caused considerable concern within the Office of the Joint Chiefs of Staff (OJCS) over the reliability of power supplies. Following an investigation of the incidents, conducted by the National Academy of Engineers, the OJCS recommended to the Secretary of Defense that the Secretary of the Army be the executive agent for a program to assure power reliability at critical C3 facilities. The Secretary of Defense agreed and in December 1981 directed the Secretary of the Army to develop and implement a program through the Corps of Engineers; the secretaries of the Air Force and Navy and the directors of the Defense Communications Agency (DCA) and the Defense Nuclear Agency (DNA) would provide support. The Corps of Engineers assigned responsibilities for technical program management to the U.S. Army Facilities Engineering Support Agency (USAFESA) and the Huntsville Division Engineer. They proceeded to develop and implement the Power Reliability Enhancement Program (PREP) for six C3 sites that the OJCS had identified as first priority. The sites were visited, a management plan developed, and a study advisory group (SAG) appointed to advise the program managers. The Director of Engineering and Construction for the Corps of Engineers chaired the SAG, which was composed of senior technical managers from the services and other agencies. The technical program managers developed the scope of the work and awarded contracts for gathering data at these first sites in February 1982. Subsequent contracts were awarded for analyzing the data and for preparing documentation for projects or work to correct deficiencies. Corrective actions would be programmed for funding over five years beginning in fiscal year 198.4. The technical program managers would also continue to evaluate sites and ensure that corrective actions were completed and that all work performed at the sites contributed to and did not detract from power availability and reliability.

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The Director of the Office of Small and Disadvantaged Business Utilization (SADBU) reported directly to the Secretary of the Army as his principal adviser and assistant for the implementation and administration of all matters under the Small Business Act, Labor Surplus Areas, and Woman-owned Business Programs. The SADBU office developed policies and procedures to implement the Army's small business programs, established and monitored the agency's goals, and ensured that offices at major commands were properly staffed to execute these programs effectively. The office conducted outreach, liaison, and source development activities and seminars. It also cooperated with and consulted on a regular basis with the Congress, the Office of the Secretary of Defense, the Small Business Administration, and other government and industrial organizations in order to carry out its program.

In fiscal year 1982, the Department of the Army awarded $5.94 billion in small business prime contracts, or 24.4 percent of the amount awarded to all businesses. This was very close to the goal of 24.6 percent. Beginning in fiscal year 1982, small business goals were expressed in percentages instead of dollars. Set asides exclusively for small businesses-those items which could only be bid on by small businesses-increased from $2.6 billion to $3.3 billion, or 13.7 percent of the total dollars awarded. This was the highest percentage of small business set-asides attained by the Army in any fiscal year. Contract awards to small disadvantaged firms totaled $859 million in fiscal year 1982 against a goal of $676.1 million. This was an increase of $58 million over the previous fiscal year. These figures do not include subcontracting dollars. It was estimated that an additional $1.5 billion in subcontracting dollars was awarded to small business firms during the year.

Federal policy states that businesses owned by women shall have the maximum opportunity to participate in contracts awarded by the government. Although there was no requirement to give preference to such firms, Army contracting offices put forth their best efforts to assist businesses owned by women to compete for awards. These businesses received a total of $166.6 million in fiscal year 1982 awards, which significantly exceeded the goal of $108.2 million.

During fiscal year 1982, the Department of Defense initiated the Defense Small Business Advanced Technology Program (DESAT) to promote innovative solutions to important scientific

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and technical problems facing the defense community by using the resources of small science and technology firms. The Army awarded thirty-nine contracts under this program, totaling $1.87 million. Among the areas under investigation were chemical vapors; cryogenic milling, carbon-carbon rotating turbine components, ceramic gun barrels, artificial intelligence, laser gas containers, fuel cells, and water purification.

On 22 July 1982, the President signed into law the Small Business Innovation Development Act (Public Law 97-219), which directed that small businesses get a fixed, minimum percentage of research and development awards made by federal agencies with sizable R&D budgets. The program was administered in the same manner as the DESAT program. Small businesses would be asked for proposals of up to $50,000 for phase I, with a possibility of $500,000 for phase II efforts.

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