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CED-82-10 1 (1981-11-10)

handle is hein.gao/gaobabcqk0001 and id is 1 raw text is: jv UNITED STATES GENERAL ACCOUNTING OFFICE 1 670 WASHINGTON, D C 20548(aS00 November 10, 1981 COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION 8-205392 The donorable Donald W. Riegle, Jr. 167 United States Senate 116870 Dear Senator Riegle: Subject- Information on tne Arny Corps of Engineers' Contracting for Dredging 4ork on tie Great Lakes (CED-82-10) In accordance with your May 14, 1981, request and subsequent agreements with your office, we have reviewed the Army Corps of Engineers' contracting policies and procedures for dredging on tne Great Lakes. On April 24, 1981, a constituent wrote to you questioning the Corps' policies and procedures in awarding such contracts on tne Great Lakes in view of Public Law 95-269 (92 Stat. 218) dhich, among other things, provides that dredging work is to be carried out principally by contract when feasizle and cost effective. The act also provides that the Coros of Engineers maintain a minimum number of federally owned dredges necessary to perform emergency and national defense work. On September 17, 1981, we briefed your office on the resdlts of our review. This report summarizes the information provided to you at tnat time. --The Corps of Engineers' policy is to contract with private industry for its dredging work when feasi- ble and cost effective. In terms of total dredging dollar workload, private industrv's share of the Corps' Detroit district's work on the Great Lakes has increased from about 12 percent in fiscal year 1977 to about 66 percent in fiscal year 1981. --Because of tne Corps' metnod of preparing cost estimates for dredging work on the Great Lakes, individual pro3- ect estimates may not reflect the best information available on anticipated costs. Since these estimates are critical in determining whether a private contractor will or will not be awarded a dredging contract, in- accurate cost estimates may result in the wrong decision (080572)

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