The U.S. Army Corps of Engineers: an Evaluation of the Project Partnership Agreement Process
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A Report by a Panel of the NATIONAL ACADEMY OF PUBLIC ADMINISTRATION A Report to the Secretary of the Army The U.S. Army Corps of Engineers: An Evaluation of the Project Partnership Agreement Process November 2018 Front Cover Photo Poplar Island, recently on the verge of disappearing, is today a national model for habitat restoration and the beneficial use of dredged material. Just off the Chesapeake Bay coastline, about 34 miles south of Baltimore in Talbot County, Maryland, the U.S. Army Corps of Engineers (USACE) is working to return Poplar Island to its former size and important ecological function while helping to ensure the economic vitality of the region. Working in partnership with the Maryland Port Authority and other federal and state agencies, the USACE is using approximately 68 million cubic yards of dredged material from the Baltimore Harbor and Channels Federal navigation projects to develop 735 acres of wetlands, 840 acres of uplands, and 140 acres of open water embayment. A Report by a Panel of the NATIONAL ACADEMY OF PUBLIC ADMINISTRATION November 30, 2018 The U.S. Army Corps of Engineers: An Evaluation of the Project Partnership Agreement Process A Report to the Secretary of the Army PANEL OF FELLOWS Joseph Westphal*, Chair Peter Basso* Gerald Galloway* Kingsley Haynes* Mamie Parker* *Academy Fellow Officers of the Academy Anne Khademian*, Chair of the Board Jeffrey Neal*, Vice Chair Teresa W. Gerton*, President and Chief Executive Officer Myra Howze Shiplett*, Secretary Jonathan Fiechter*, Treasurer Study Team Roger Kodat, Program Area Director Pamela Haze*, Project Director Ken Ryder*, Senior Advisor Maria Rapuano, Senior Advisor Jonathan Tucker, Senior Advisor Hailey Ellsworth, Research Associate Richard Pezzella, Research Associate Luke Lockwood, Intern *Academy Fellow The views expressed in this report are those of the Panel. They do not necessarily reflect the views of the Academy, as an institution. National Academy of Public Administration 1600 K Street, N.W. Suite 400 Washington, DC 20006 www.napawash.org November 30, 2018 Printed in the United States of America Academy Project Number: 10228 About the Academy The National Academy of Public Administration (the Academy) is an independent non-profit, non-partisan organization established in 1967. Chartered by Congress in 1984, the Academy provides expert advice to government leaders in building more effective, efficient, accountable, and transparent organizations. To carry out this mission, the Academy draws on the knowledge and expertise of its over 900 Fellows— including former cabinet officers, Members of Congress, governors, mayors, and state legislators, as well as prominent scholars, business executives, and public administrators. The Academy assists public institutions address their most critical governance and management challenges through in-depth studies and analyses, advisory services and technical assistance, congressional testimony, forms and conferences, and online stakeholder engagement. Learn more about the Academy and its work at www.NAPAwash.org. i This page is intentionally blank Foreword The U.S. Corps of Engineers (USACE) works in collaboration with nonfederal entities in the development of water resource projects. The USACE and nonfederal sponsors enter into Project Partnership Agreements (PPA) that define legal requirements for cost sharing and assign responsibilities for the completion of projects for flood and coastal storm risk management, commercial navigation, aquatic ecosystem restoration, and other purposes. The USACE plays a critical role in maintaining and supporting a strong and resilient water infrastructure system for the nation. Section 1013 of the Water Resources Reform and Development Act of 2014 directs the Secretary of the Army to contract with the National Academy of Public Administration (the Academy) for a comprehensive review of the PPA process and to submit the Academy’s findings to the Senate Committee on Public Works and House Committee on Transportation and Infrastructure.1 Pursuant to this direction, the Academy conducted an evaluation of the PPA process under contract with USACE and with guidance and input from the Assistant Secretary of the Army for Civil Works [ASA (CW)]. This report of a Panel of five Academy Fellows provides the results of their extensive information collection and analysis, based on research, interviews, and site visits conducted over the period of April – August 2018. The report describes the process for developing, negotiating, and approving PPAs; assesses recent changes in the process; evaluates sponsor and stakeholder input; and includes recommendations to improve the process. As a congressionally chartered non-partisan and non-profit organization with over 900 distinguished Fellows, the Academy brings nationally recognized public administration experts together to help public organizations address future challenges. We are pleased to have had the opportunity to work with the U.S. Army to conduct this review. We appreciate the constructive engagement of the ASA (CW) and USACE and the contributions of many sponsors and other stakeholders, all of whom were generous with their time and thoughtful input. I extend my thanks to the Academy Panel who offered their invaluable expertise and keen analysis and to the professional study team that provided critical support throughout the project. I expect this report will contribute to improvements in the PPA process and help the USACE and their nonfederal sponsors. Teresa W. Gerton President and Chief Executive Officer National Academy 1 Water Resources Reform and Development Act (WRRDA), P.L. 113-121 (2014) ii This page is intentionally blank Contents About the Academy ................................................................................................................................................................... i Foreword .................................................................................................................................................................................... ii Acronyms and Abbreviations ............................................................................................................................................ iii Executive Summary ................................................................................................................................................................ 1 Report Recommendations .............................................................................................................................................. 3 Recommendation 3.1 ........................................................................................................................................................ 3 Recommendation 3.2 ........................................................................................................................................................ 3 Recommendation 3.3 ........................................................................................................................................................ 4 Recommendation 3.4 ........................................................................................................................................................ 4 Recommendation 3.5 ........................................................................................................................................................ 4 Recommendation 4.1 ........................................................................................................................................................ 4 Recommendation 4.2 ........................................................................................................................................................ 4 Chapter One: Introduction ................................................................................................................................................... 5 The U.S. Army Corps of Engineers ............................................................................................................................... 5 The Academy’s Charge ..................................................................................................................................................... 7 Project Methodology ......................................................................................................................................................... 8 Organization of the Report ............................................................................................................................................. 9 Chapter Two: Organization and Background............................................................................................................. 11 Organizational Structure and Responsibilities .................................................................................................... 11 Project Partnerships ....................................................................................................................................................... 12 Project Authorization and Funding .......................................................................................................................... 13 Project Development ...................................................................................................................................................... 15 Changes Since 2014 ........................................................................................................................................................