The US Army Corps of Engineers — Formerly Used Defense Sites..1

FUDS

Robert F. Lubbert, PEChief, Environmental Support Team

HQ, US Army Corps of Engineers (CEMP-DE)(202) 761-7504

e-mail: robert.f.lubbert@usace.army.mil

Joint Services Environmental Management Conference

Transformation of The Formerly Used Defense Sites (FUDS)

Program Management and Execution

May 24, 2007

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• Brief FUDS Program Overview

• FUDS Transformation – A long time in the Making

• Transformation of FUDS Management and Execution

• Transformation Study

• Transformation Recap

• Management Schemes 1 and 2

• Role of Geographic District

• Summary and Conclusions

Topics of Discussion

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FUDSWhat is FUDS?

Definition: Real property that was under the jurisdiction of the Secretary and owned by, leased by, or otherwise possessed bythe U.S. and those real properties where accountability rested with DoD but the activities at the properties were conducted by contractors that were transferred from DoD control prior to October 17, 1986.

Goal: “To reduce, in a timely and cost effective manner, the risk to human health and the environment resulting from past DoD activities at formerly used Department of Defense properties.”

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DERP-FUDS Missions

• Correction of other environmental damage -such as unexploded ordnance (Military Munitions Response Program (MMRP))

• Building demolition and debris removal (BD/DR)

• Identification, investigation and cleanup of hazardous, toxic, and radioactive waste (HTRW)

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FUDSFUDS is a Different Animal

• The FUDS Program addresses only DoD generatedcontamination that occurred before 1986, before transfer of property

• DoD does not own the propertythat FUDS is addressing

• Past property owners: Army, Navy,Marines, Air Force, Other Defense AgencyProperties

• We do not certify that theproperty is clean

• We work hand in hand withcurrent property owners andregulators on cleanup efforts

FUDS

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Scope of FUDS ProgramScope of FUDS Program(Data Source: 2006 Report To Congress)(Data Source: 2006 Report To Congress)

• Properties:• Total in Inventory 9,908• Eligible for FUDS Program 6,868• No DoD Action Indicated (NDAI) 3,824• Requiring Response Actions 3,044

• Projects:• Total in Properties Requiring Response Actions 4,653• No DoD Action Indicated (NDAI) 799• Total with costs incurred or planned 4,229• Total with costs in FY06 & Beyond 3,333

• FY07 Cost To Complete (CTC) - $18.7B• MMRP $12,647M (1,364 projs)• HTRW $ 3,144M ( 837 projs)• OTHER $ 37M

• CON/HTRW $ 247M (900 projs)• BD/DR $ 50M ( 91 projs)• PGM MGT $ 2,628M

• FY07 Approved Workplan - $253.7M (CRA)

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0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007 2008*Plus up by Congress

$247

$3434*$3030*

$70.6*$70.6*

$221

$283 $265.7 $262.7$250.3

$50*

$253.7

$26.7*

FUDS POM

FY02-FY06: Actual Budget FY07-FY08: Planned Budget

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FUDSTotal Number of FUDS Properties: 9,808Total Number of Properties Requiring Response Actions: 2,965

NH 28

MA 279

CT 54RI 74

NJ 177

DC 53

DE 36MD 114

OK142

TX657

AR82

LA166

NC 183TN 67

AL171

MS193

GA230

SC206

FL714

NV77 UT

62

CA1094 AZ

262NM254

WA368

MT110

ND66

SD91WY

70

WI68ID

76

MN76

OR122

IA38NE

100CO90 KS

166MO94

ME178

VT 14

NY487

PA171

WV26 VA

291

IN74

OH94

IL212

KY 25

MI231

HI377

AK603

•Northern Mariana Islands32

•Palau (PT) 14•Puerto Rico (PR) 79•U.S. Virgin Islands (VI) 11•American Samoa (AS) 30•Guam (GM) 49

Scope of FUDS Program(by Property)

October 2006

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Pacific Ocean

North Atlantic

Northwestern

Southwestern

South Pacific

South Atlantic

LRD

LEGEND:Division HQ locationDivision boundaryDistrict boundaryState boundary

LEGEND:Division HQ locationDivision boundaryDistrict boundaryState boundary

Pacific

Ocean

Division

FUDS PROGRAM EXECUTION BOUNDARIESFUDS PROGRAM EXECUTION BOUNDARIES

* Huntington District remain as Project Manager for all FUDSProjects in WV in LRD

*

HTRW-CX

MMRP-CX

7

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FUDS TransformationA long time in the making

• Transformation of FUDS Management and Execution preceded by initiatives that improved process and performance:– Engineer Regulation 200-3-1, FUDS Program Policy –

coalesced FUDS Property and Project management and execution strategy

– FUDS Program Management Plan – maintained focus on Customer expectations for delivery of quality products and services in support of Army Cleanup Strategy

– FUDS Annual Workplan – joint effort between HQDA and HQUSACE

– FUDS Information Improvement Program (FIIP) –archiving of documentation that support project decisions

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FUDS TransformationA long time in the making (cont’d)

– FUDS Forum - Developed several management initiatives such as Statewide Management Action Plans (SMAPs), teambuilding with Stakeholders on FUDS Priorities

– Completion of CERCLA PAs for Properties with MMRP – the initial step of the CERCLA Process

– DoD MMRP Site Investigations (SIs) – initiative to complete 765 SIsby FY2010

– Transition of MMRP Response Actions from Removal to Remedial Process – for consistency with the intent of the NCP

– Chemical Warfare Material Scoping Study - completed CWM Scoping Study, reduced FUDS Cost to Complete (CTC) by $1.0B

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Transformation of FUDSManagement and Execution

• Issues driving FUDS Transformation:– Management and execution of FUDS Program was

perceived as too costly.• Army Secretariat challenged USACE to reduce management

and execution costs • Making more funding available for project execution

– Unconstrained growth of management and execution diluted competencies of workforce

• Having 22 Districts management and execute a $250M program resulted in redundant organizations.

• The synergy from concentrating work at USACE “centers of capability” was not being realized

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• A FUDS Transformation Study was conducted in FY2006 to:– Identify a most efficient organization

• Capable of doing “more with less”• With infrastructure to facilitate efficient management and

execution– Promote/ maintain programmatic and technical

competencies• Aggregate work where competencies exist • Prevent dilution of competencies• Across the spectrum of operations (domestic and contingency)

– Structure USACE to execute potential funding increase• Workforce capable of ramping up quickly should funding occur

Transformation of FUDSManagement and Execution

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• Guiding Principles for analysis:– USACE Strategic Directions Statements:

• Using a Consistent Business Process• Careful Stewards of Resources

– Lean Six Sigma concepts• Method of analysis focused on:

– Qualifications– Workload/Size of Program

Transformation of FUDSManagement and Execution

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Transformation Recap

• Pre-Transformation Organization:– 7-RBCs performing regional level FUDS Program

Management– 22-Districts performing Program and Project Management

for FUDS properties within their District boundary

• Post-Transformation Organization:– 7-RBCs– 13-Districts– Two Management Schemes providing desired results

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FUDS TransformationSelected Management Schemes

• FUDS Management Scheme 1:– Four RBCs will perform Regional and District level

Program Management activities (NWD, POD, SPD, SWD):

• Two Districts per Region performing Project Management activities

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FUDS TransformationSelected Management Schemes

• FUDS Management Scheme 2:– Three RBCs will assign one District performing

Regional Program Management activities (LRD, NAD, SAD) and project management

– One additional District per Region (all but SAD) performing Project Management of FUDS properties within their District boundary

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Role of the Geographic District

• Geographic District provides important role: – Member of Project Delivery Team (PDT),– Supports the PM:

• Landowner, lead Regulatory Agency, other Stakeholder Support,

• Real Estate Support, • Public Affairs Office Support, • Contract Oversight Support, • Technical membership on PDT.

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• Summary and Conclusions:- Continuity of Services

• Stakeholder and Regulatory issues addressed• Seamless transformation from losing to gaining Districts• Continuation of FUDS Property and Project response actions• Accomplishment of DoD and Army goals and objectives

– FUDS Transformation is the “Next Step”• Resulting in organizational improvements• Applies Lean Six Sigma concepts• Is in parallel to the Army LSS initiative

– Transformation Results in…• A leaner structure of 7 RBCs/13 FUDS Districts• That will provide more efficient operation, cost avoidance and

improve Customer satisfaction

Transformation of FUDSManagement and Execution

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Questions ???