EP 1165-2-1
30 Jul 99
(2) Preconstruction Engineering and Design (PED). PED studies
presume that the recommended project will be authorized for
construction. Accordingly, PED studies should follow the same rules
defined in subparagraph e below (Postauthorization Studies).
c. Continuing Authorities Studies. For potential projects
pursued under the Continuing Authorities Program (Sections 14, 103,
107, 111, 205 and 208), the same procedures apply as for Feasibility
Studies above, except that the financial analysis requirement are
adjusted for the complexity and cost of the project involved. Often,
the construction of these projects can be completed under one contract
and, therefore, the non-Federal cooperation is provided in advance of
construction. In such cases, the financial analysis requirement can
be satisfied by a statement of financial capability and financial plan
in the form of a letter from the sponsor and a short narrative in the
"Findings and Conclusions" section of the Detailed Project Report. In
more complicated cases, appropriately more of the financial analysis
requirements for a feasibility study will apply.
d. Ecosystem Restoration Studies (Section 1135 of WRDA 1986;
Section 204 of WRDA 1992; and Section 206 of WRDA 1996). Prior to
approval to initiate a study under these authorities, the non-Federal
sponsor must provide a letter of intent stating its understanding of
the cost-sharing requirements and its capability and willingness to
participate as the sponsor for the proposed project. The project
approval document will be accompanied by a draft PCA which has been
fully coordinated with the sponsor and a financial analysis. When a
feasibility phase report is prepared, the report will contain a
discussion of the sponsor's responsibilities.
e. Postauthorization Studies. A final PCA is required,
pursuant to Section 221, as a prerequisite to initiating construction.
Consequently, during the postauthorization planning, the emphasis is
on ensuring that the items of non-Federal cooperation for the
authorized project, as identified in the report cited in the
authorizing language, are specified and that the non-Federal sponsor
can comply with them. Inasmuch as a considerable period of time may
have passed since the project was authorized for construction, the
items of non-Federal cooperation should be reviewed for compliance
with current policy. When a policy change affects an item of non-
Federal cooperation, the post authorization study should address the
question of whether the policy change is applicable to the authorized
project and whether the non-Federal sponsor is willing to continue
into construction of the project subject to the change in the
particular item(s) of non-Federal cooperation. The postauthorization
planning document will recommend items of non-Federal cooperation only
if they are directly related to: implementation of the recommended
Federal project; achievement of specified objectives of the Federal
project; or realization of benefits attributed to the Federal project.
Cash contributions generally are expressed as percentages of
construction cost to allow the Chief of Engineers to make final
determinations without further Congressional action. It is not
necessary to list all routine requirements of generally applicable
Federal legislation such as those for pollution control, civil rights
and safety. PCAs are not required for projects to construct or
improve the inland waterway transportation system where all of the
costs are assigned to the Federal Government. To add recreation
improvements though, PCAs are required.
f. Payment. Project costs are sometimes shared by assignment
of specific items of work, such as acquisition of land, provision of
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