Review of the Relocation of Railroad Facilities, Walter F. George Lock and Dam, Fort Gaines, Georgia, Corps of Engineers (Civil Functions)

The General Accounting Office has made a review of a negotiated firm fixed-price contract awarded by the Mobile District (District), Corps of Engineers (Civil Functions) (Corps), Department of the Army, to a railroad company for the relocation of the railroad's facilities, necessitated by the construction of the Walter F. George Lock and Dam near Fort Gaines, Georgia. 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). Because Corps regulations provide for the use of cost-reimbursable contracts for major relocations, our examination was directed at the justification for the deviation from Corps regulations. We examined the Corps' policies and procedures for awarding contracts for the relocation of facilities and reviewed cost estimates, correspondence, and other pertinent records at the Office of the Chief of Engineers, Washington, D.C.; Office of the Division Engineer, Atlanta, Georgia; and Office of the District Engineer, Mobile, Alabama. We also examined the records of the railroad at Savannah, Georgia, and at Washington, D.C., to verify certain information furnished to us by railroad officials. Although our examination was limited to the circumstances involving one contract and we are unable to state whether similar deficiencies have existed with respect to other relocation contracts, we believe that the deficiencies disclosed were of such significance that specific instructions should be issued by the Chief of Engineers to all division and district engineers in order to minimize the possibility of the occurrence of a situation similar to that described in this report.