assure the health and safety of the public who come to our projects. Regarding lower priority commercial projects, these were evaluated initially based upon the officially reported amount of commercial tonnage on that project. Subsequent evaluation factors were designation as a defense port, criticality of commodities carried, housing of US Coast Guard facilities at that harbor, and finally recreational usage of that project. Senator JOHNSON. Is O&M or any project being eliminated? LTG HEIBERG. O&M of projects is not being eliminated but deferred where the impact on users is minimized. Channel condition surveys and user reports will be monitored in the year of execution so that shoaling rates and locations do not force the closure of channels to navigation traffic, thus reducing the impediment to any local industry or commerce. Senator JOHNSTON. Provide for the record a full list of those projects impacted. LTG HEIBERG. The Corps FY 1989 recreation program reflects a reduction in order to allow budgeting for follow-on requirements of projects and studies in the FY 1988 Continuing Resolution Act, while remaining consistent with the Bipartisan Budget Agreement. The attached listing shows by state and by project potential activity approximating the amount that our requested FY 1989 recreation program is exceeded by the FY 1988 program. Since dredging needs vary significantly from year to year, such a list represents only a current estimate of future priorities. Overall, dredging of recreation and low-use commercial harbors has been scheduled such that the impact on users is minimized. Channel condition surveys and user reports will be monitored in the year of execution so that shoaling rates and locations do not force the closure of channels to navigation traffic, thus reducing the impediment to any local industry or commerce. We will also continue to evaluate how best to absorb the reduction below FY 1988 levels at recreation areas of completed projects. If our proposed user fee legislation is enacted we will request appropriation of any additional receipts to enhance the budgeted level of recreation area operation and maintenance. State OPERATION AND MAINTENANCE, GENERAL AR NORFORK LAKE 211 OPERATION AND MAINTENANCE PROJECTS CURTAILED Senator JOHNSTON. Provide for the record a list of those O&M projects curtailed or deferred due to policy reasons, including the amount needed to provide an optimum level of maintenance. General HEIBERG. The only O&M projects which we have curtailed or deferred due to policy reasons are those low-priority commercial and recreation projects which I will furnish for the record in response to one of your earlier questions plus those in caretaker status and the FY 1988 items on which we did not take action. I will furnish a listing on the latter two categories for the record. (1) Project was included in Senate Report 100-159. However, this is not an authorized Corps of Engineers project and funds cannot be expended. CONSTRUCTION PRODUCTIVITY ADVANCEMENT RESEARCH Senator JOHNSTON. A new program for construction productivity advancement is to be initiated in 1988 with reprogrammed funds. Could you explain the purpose and need for this program? Mr. PAGE. The need for the program stems from the fact that levels of construction research and development spending over recent years, both by government and private industry, have been deficient. The result has been a loss of competitiveness and productivity by the U.S. construction industry, not only in this nation but abroad. This has further resulted in unnecessarily high costs for both public and private construction. Cost savings from increased productivity would accrue directly to the Corps of Engineers water resource construction program, as well as benefit the construction industry and nation in general. Senator JOHNSTON. You propose to reprogram $300,000 to determine the feasibility and potential for a joint program with the private sector. does it take $300,000 to make this determination? Why Mr. PAGE. This is a new program and a new approach to Corps research and development. New research and development programs require effort and funds to develop. This particular program involves not only the normal costs associated with such a research and development program but entails efforts to make the program widely known to industry, professional and industry associations, academia, and other government agencies. Construction Productivity Advancement Research has to be explained to these potential participants because without their participation there can be no program since cost sharing is an essential feature of the program. It takes considerable effort to do this. Senator JOHNSTON. Are the funds to be reprogrammed from within the Research and Development budget? Will committee approval be required? Mr. PAGE. The funds are to be reprogrammed from within the General Investigations Research and Development budget. We are desirous of working together with Congress on this proposal and toward that end, we have informed the committee of our plans to reprogram $300,000 from the seven program areas of the overall General Investigations Research and Development program. Senator JOHNSTON. Provide for the record a detailed breakout of how the funds are to be used, including a table breaking down the request by object classification. Mr. PAGE. The reprogrammed funds will be used to develop the details of the proposed program, including identification and description of technologies the Corps believes need improvement and technologies the Corps has under development on which industry may wish to join in a cost sharing effort; detailed procedures for program management; detailed briefings and briefing materials to describe the program to industry; preparation and printing of brochures and other written material to describe the program; preparation and distribution of advertisements and direct mail material describing the program and announcing meetings regarding the program; and preparation of responses to inquiries concerning the program. These activities require involvement of Corps research and development personnel, travel, printing and other direct and indirect costs which are shown in the following table by object classification. *Contracts, printing of brochures, advertisements, conference facilities Senator JOHNSTON. What level of funding is included in the FY 1989 budget to continue this program? Mr. PAGE. We have included no funds for the Construction Productivity Advancement Research program in the FY 1989 budget request, pending identification of research needs and sources of non-Federal financing through joint efforts by the Corps of Engineers and industry, professional associations, academia, and other representatives. If these initial efforts are successful, we would anticipate advising this subcommittee and Congress at some later date of our plans to continue the effort within the total General Investigations resources proposed in the FY 1989 budget. Senator JOHNSTON. 5 years. Provide a funding profile for this activity for the next Mr. PAGE. It is not possible at this time to provide a funding profile over the next five years since we have not yet had the opportunity to interact with industry and other non-Federal representatives to determine if they will participate in the cost-shared Construction Productivity Advancement Research program and to what extent they may participate. We will be in a better position to make an estimate of such a funding profile after our initial efforts to inform industry and others of the Construction Productivity Advancement Research program are complete. Senator JOHNSTON. This proposal appears to run counter to Administration efforts to have the private sector take over more of the activities performed by the federal government? Mr. PAGE. In the area of technology transfer both Congress and the Administration support an active federal program to enhance productivity in U.S. industry. Through the Stevenson-Wydler Technology Innovation Act of 1980, Public Law 96-480, as amended by Technology Transfer Act of 1986, Public Law 99-502, Congress has authorized cooperative efforts between the private sector and the Federal Government to meet these needs. The legislation recognized that: no comprehensive national policy exists to enhance technological innovation for commercial and public purposes. There is a need for such a policy, including a strong national policy supporting domestic technology transfer and utilization of the science and technology resources of the Federal Government. P.L. 96-480, as amended by P.L. 99-502, Section 2.8. In his April 10, 1987 statement accompany Executive Order 12591, implementing the Act, President Reagan stated: I believe a vigorous science and technology enterprise involving the private sector is essential to our economic and national security as we approach the 21st century. The Corps of Engineers Construction Productivity Advancement Research Program is a comprehensive attempt to support the goals of the Act in the specific area of construction related technology. The Construction Productivity Advancement Research Program is designed to facilitate: technology transfer from our laboratories; and the utilization of the science and technology resources of the Corps of Engineers. Studies by the National Research Council, the Office of Technology Assessment, and others have shown that the construction industry has historically spent very little for research and development. The construction industry spends only four percent of sales on research and development which is less than any other mature industry spends. This low spending is a result of the low capitalization and small size of most construction firms. The lack of research and development in the construction industry has resulted in falling productivity, higher construction costs, and a loss of competitiveness by the U.S. construction industry both at home and abroad. active federal program, as envisioned by Congress and the Administration, is necessary to reverse these problems by helping the private sector to help itself. The Corps Construction Productivity Advancement Research program consists of the appropriate elements to facilitate this goal. Senator JOHNSTON. Why should federal resources be used to get the private sector to invest in research and development? An Mr. PAGE. The 1983 report of the White House Science Council's Federal Laboratory Review Panel states: The ultimate purpose of federal support for research and development is to develop the science and technology base needed for a strong national defense, for the health and well-being of U.S. citizens, and for a healthy U.S. economy. Federal laboratories should recognize that they are an important part of the partnership with universities and industry in meeting this goal. A strong cooperative relationship must exist between federal laboratories, universities, industry and other users of the laboratories research results. The Construction Productivity Advancement Research Program is designed to change the traditional patterns of construction related research and development spending in the U.S. by creating a cooperative relationship between the Corps laboratories and the construction industry. The Construction Productivity Advancement Research Program will use the existing authorities of the Stevenson-Wydler Technology Innovation Act of 1980, Public Law 96-480, as amended by Technology Transfer Act of 1986, to establish this Corps-Construction industry research and development partnership. In these Acts Congress realized the necessity of utilizing federal resources to enhance and stimulate private sector research and development. In summary, the dedication of federal resources to the Construction Productivity Advancement Research Program is a realization of stated Congressional and Administration policy to support the private sector through collaborative effects to develop technology. Senator JOHNSTON. Would not the long-term continuity and success of an initiative of this type be better assured if it were founded first on the commitment of the private sector through existing industry-wide associations? Mr. PAGE. We expect to work closely with all parts of the construction industry and certainly would include efforts with industry-wide associations where possible. It should be noted though, that industry-wide association research and development spending has been no better than private firm spending which has led, in part, to the present situation of low productivity. We plan for the Construction Productivity Advancement Research Program to develop cost-sharing partnership research and development efforts with all segments of the U.S. construction industry to include private firms, industry associations, professional societies, academia, and other governmental agencies, federal, state and local. We also plan to work closely with all these elements to identify the greatest construction research and development needs and most promising technological opportunities to meet these needs and provide improvements in construction productivity. |