EP 1165-2-1
30 Jul 99
receive cost sharing credit for such resources unless the Federal
granting agency verifies in writing that such credit is expressly
authorized by statute. (ER 1165-2-131)
g. Project Cooperation Agreement (PCA) Process. Once a
project is authorized for construction, the budget/appropriations
process drives the PCA process. Current policy dictates that PCAs
will not be executed until: (1) the project document has been
approved by HQUSACE; (2) the project is budgeted as a new construction
start or construction funds are added by Congress, apportioned by OMB,
and their allocation approved by ASA(CW); (3) documentation of
compliance with the National Environmental Policy Act (NEPA) and other
associated environmental laws and statutes in the PCA checklist has
been furnished; and (4) the draft PCA has been reviewed and approved
by ASA(CW).
(1) Budgeted New Construction Starts. PCA issues (e.g., items
of local cooperation, cost sharing allocation, credit, sponsor
coordination and understanding of PCA language requirements, etc.) are
to be an integral part of the project document in each stage of report
development. During the Reconnaissance Phase, the Project Manager
will coordinate with the prospective sponsor, communicating the
requirements of study and project cost sharing under WRDA 1986, as
amended. During the Feasibility Phase, the full implications of
local cooperation requirements are discussed with the sponsor within
the context of the current model PCA. The first draft PCA is prepared
by the Project Manager in conjunction with the non-Federal sponsor in
the latter stages of the Feasibility Phase prior to the feasibility
review conference (FRC). Ideally, once the draft PCA has been
reviewed as part of the FRC, the PCA would then require only minor
changes once the project is authorized and budgeted as a construction
new start.
(2) Congressional Adds. After each MSC has coordinated with
HQUSACE (CECW-B) on its recommended implementation plan for work added
by the Congress, the Project Manager will document what the final
project report will be, what it will cover, and the schedule for
development of the complete detailed decision document and PCA package
through submittal to HQUSACE and ASA(CW). Once agreement is worked
out, the Project Manager will follow the same PCA submission
procedures as in 10-1.f(3) below.
(3) Execution. Once a project has been funded by Congress as
a new construction start, the Project Manager shall begin final
negotiations with the local sponsor and submit the draft PCA package
(i.e., transmittal letter with draft PCA, financing plan, and current
approved project document) to HQUSACE (CECW-A). In the district's
transmittal, the Project Manager reaffirms that the draft PCA and
financing plan reflect the project as approved by ASA(CW) in the OMB-
cleared Chief's Report or subsequent report so approved and cleared.
Any changes to the last ASA(CW) cleared report must be fully
documented by the Project Manager in the transmittal memorandum. If a
Limited Reevaluation Report (LRR) is required due to a time lag in the
economic analysis, it should precede any PCA submission. HQUSACE
staff will review the PCA package for policy compliance with the basic
detailed decision document and prior ASA(CW) instructions, and legal
sufficiency. For PCA packages found to be in compliance, CECW-A will
prepare the draft DCW transmittal memo to ASA(CW) and forward it to
the ASA(CW) for approval to execute. For PCAs with outstanding
issues, HQUSACE will return the PCA to the MSC for resolution before
the PCA can be approved for execution. Upon resolution, CECW-A will
transmit the PCA to ASA(CW) for approval to execute.
10-3
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