Need for Improving Policies and Procedures for Estimating Costs, Evaluating Bids, and Awarding Contracts for Dredging

The General Accounting Office has made a review of the policies and procedures of the Corps of Engineers (Civil Functions), Department of the Army, which relate to the estimating of contract costs, the evaluating of contract bids, and the awarding of contracts for dredging. Our review included a detailed examination of the contracts awarded by the Corps' New Orleans District Office for dredging the Mississippi River-Gulf Outlet project. Our review was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 53), and the Accounting and Auditing Act of 1950 (31 U.S.C. 67). Our review was directed toward an examination of dredging contracts awarded by the Corps of Engineers and was undertaken because of the substantial costs incurred each year by the Corps for dredging. Primary emphasis was directed to those matters which appeared to need attention, including the Corps' policies and practices relating to the preparation of cost estimates used to evaluate the reasonableness of contractor proposals for dredging and the Corps' compliance with the requirements of sections 622 and 624 of Title 33, United States Code, which relate to the methods of performing river and harbor improvements and to the limitations on contracting for such work. Our review was conducted at the Office of the Chief of Engineers in Washington, D.C., and at the Corps' district offices in New Orleans, Louisiana; Galveston, Texas; Mobile, Alabama; Seattle, Washington; New York, N.Y.; and Chicago, Illinois.