EP 1165-2-1
30 Jul 99
CHAPTER 10
CONSTRUCTION
10-1.
Requirements of Project Cooperation.
a. General. Prior to the initiation of construction, the non-
Federal sponsor of a water resources project and the Government must
enter into a binding agreement in the form of a Project Cooperation
Agreement (PCA) as required by Section 221 of the Flood Control Act of
1970 (Public Law 91-611), as amended, and by Section 101(e) {Harbors}
and Section 103(j) {Flood Control and Other Projects} of the Water
Resources Development Act (WRDA) of 1986 (Public Law 99-662), as
amended. The PCA must describe, among other things, all of the
requirements and responsibilities relating to construction of the
project including items of local cooperation required from the non-
Federal sponsor. Local cooperation requirements typically include
that the non-Federal sponsor pay a percentage share of the costs of
construction. The required percentage varies depending on the project
purpose (e.g., harbor navigation projects, flood control) and is
generally prescribed by law (see, for example, Sections 101, 103 and
1135 of WRDA 1986, as amended). In addition, a non-Federal sponsor
must also provide all lands, easements, rights-of-way, and suitable
borrow and dredged or excavated material disposal areas required for
the project (except in the case of navigation projects where dredged
material disposal areas are part of the general navigation features
(GNF) under Section 201 of WRDA 1996) as well as perform or ensure the
performance of all necessary relocations (collectively referred to as
LERRD requirements; see Section 101(a) and (e), Section 103(a) and (j)
of P.L. 99-662). Generally, the value of the required LERRD provided
by the non-Federal sponsor will be credited against the non-Federal
sponsor's percentage share of the costs of construction. The portion
of the non-Federal sponsor's required share of costs that remains
after LERRD credit is afforded must be paid to the Government in cash.
If construction of the project will be completed within one fiscal
year, the cash payment must be made in a lump sum prior to
solicitation of the first construction contract. If construction of
the project will not be completed within one fiscal year, the non-
Federal sponsor must make cash payments each fiscal year in proportion
to the Government's estimated financial obligations for construction
in each fiscal year. (ER 1165-2-131; Chapter 12, ER 405-1-12).
b. PCA Approval. The PCA for a project is initially
negotiated between representatives of the district and the non-Federal
sponsor following the terms of a model PCA if one has been approved
for the project purpose by ASA(CW). For structural flood control
projects, District commanders have authority to execute PCAs for
projects with a Federal cost of less than million for PCAs which
do not deviate from the flood control model. Division commanders may
execute PCAs with Federal cost greater than million if the model
is used. Delegated authority for PCA execution with use of an
approved model also applies to the continuing authorities and the
Section 1135 and Section 204 programs. PCAs for other purposes
without approved models must be approved by the ASA(CW).
c. Projects Specifically Authorized by Congress. n addition
to the general requirement imposed by law, there may be further
required items of local cooperation provided in the authorizing
legislation for the projects or in any report referenced therein.
Therefore, such legislation and reports must be carefully reviewed to
10-1
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