US Army Corps of Engineers Headquarters Performance Measures of Projects: Benchmarking the Future

1. US Army Corps of Engineers Headquarters Performance Measures of Projects: Benchmarking the Future Barry Holliday Navigation Program Manager US Army Corps of Engineers Headquarters Washington, DC Gregory A. Kiker, PhD Environmental Risk and Decision Analysis Team Leader Environmental Lab - Engineering Research and Development Center US Army Corps of Engineers Waterways Experiment Station, Vicksburg MS

2. USACE Navigation Program Issues Introduction to Decision Analysis and ExpertChoice Software Example of ExpertChoice Question and Answer Period

3. Corps Navigation Mission

4. GIWW O&M Issues Shortfall in ’04 funds for dredging and other navigation-related O&M likely to carry over into ’05 program Galveston anticipates funding at about 45% of needs, including $59 million carried over from unmet ’04 program needs Operators reporting more groundings and damage – shoaling continues to increase in both deep draft channels and along GIWW New Orleans has nearly $9 million in backlog along GIWW and over $47 million throughout district for unfunded O&M navigation needs The backlog problem is growing on the Gulf Coast, too, both for our deep draft channels, like Houston, and for the Gulf Intracoastal Waterway. Lack of sufficient O&M funds for ’04 will be carried over into ’05 if reprogrammed funds are not available. Our Galveston Districts anticipates navigation O&M funds to be only about 45% of needed levels, including about $59 million in unmet FY 04 needs that will be carried over. Operators are reporting more groundings and damage to their vessels. The risk of ever more serious accidents or spills increase as more areas shoal. Our New Orleans District also reports a growing backlog of O&M needs along the GIWW ($9 million) and on waterways throughout the district ($47 million). The backlog problem is growing on the Gulf Coast, too, both for our deep draft channels, like Houston, and for the Gulf Intracoastal Waterway. Lack of sufficient O&M funds for ’04 will be carried over into ’05 if reprogrammed funds are not available. Our Galveston Districts anticipates navigation O&M funds to be only about 45% of needed levels, including about $59 million in unmet FY 04 needs that will be carried over. Operators are reporting more groundings and damage to their vessels. The risk of ever more serious accidents or spills increase as more areas shoal. Our New Orleans District also reports a growing backlog of O&M needs along the GIWW ($9 million) and on waterways throughout the district ($47 million).

5. Navigation Objectives and Performance Measures

6. New for FY05:Performance-Based Budgeting OUT Geographic budgeting Budgeting by account Business line balance

7. Ramifications Funding stream and prioritization listing, as well as amounts going to various projects and activities, will vary greatly from that traditionally seen in prior budgets. No business, account or regional element guaranteed a "pot". Therefore all activities will live by their performance.

8. Introduction to Decision Analysis and ExpertChoice

9. The Problem is Complexity

10. General Methodology

11. Multi-Criteria Decision Analysis

12. Requirements for Decision Criteria/Performance Measures A coherent criteria set is: (Roy, 1985) Exhaustive (nothing important left out) Consistent (no secret preferences) Non-redundant (no double counting) Effective criteria are: (Yoe, 2002) Directional (maximum, minimum or optimum) Concise (smallest number of measures) Complete (no significant impact left out) Clear (understandable to others) Criteria are often correlated but can still be acceptable Criteria should be tested throughout the decision process

13. Performance Metrics BCR - the benefit cost ratio for project Commercial tonnage - commercial tonnage impacted Percent reduction in delay costs - % reduction in delay costs (inland only) Sys Ton-miles - the total tons X the total distance from origin to destination

14. Performance Metrics (cont) Percent Available - Percentage of time project is available to perform as designed without limits from deferred maintenance, etc. Public Health/Safety - critical hazardous situation, imminent failure resulting in severe consequences to public. Other proj. purpose - list other purposes (outputs) associated with this project (study)

15. Performance Metrics (cont) Consequences - budget request needed to comply with safety, settlements, etc - what is penalty if not funded this PY Purpose - what the budget amount accomplishes (initiate, continue, complete recon, feas, PED, contract) to ensure justified level of service Remarks - additional information to support budget request that is not in the other fields

16. Multi-Criteria Decision Analysis

17. Comparing Apples and Oranges (or Fish, Ducks and Money)

19. Trade-Offs: Giving up one thing to get another Explicit trade-offs Flood control vs hydropower More of one means less of the other Implicit trade-offs “Habitat cohesion” vs “enhancing aquatic ecosystems” Terms of trade are not following physical laws Value trade-offs 100 acres of woodland vs 100 acres of inaccessible wetland Choice may depend on what each person “values” Good trade-off analysis makes the “implicit” things into “explicit” things

20. ExpertChoice Example Four Fictitious Sites Bayou Raymondo Engler Bend Port Barry Butler Beach Use USACE Performance Measures

21. Decision Matrix

22. Decision Matrix Continued…

23. Decision Matrix Continued…

24. ExpertChoice Example

25. ExpertChoice Example

26. ExpertChoice Example

27. Sensitivity Analysis

28. EC Resource Aligner patent pending What is it? Add-on product to Expert Choice2000 2nd Edition for Groups What does it do? Manages projects, people, and resourceslike a financial portfolio Strategically aligns projects and resources with strategic objectives Optimizes project mix to maximize the collective benefit, while staying within your constraints How does it do it? Through a dynamic link between Expert Choice Group and Resource Aligner, product users can instantly and seamlessly incorporate the project benefit scores that they derived using the Group product into the Resource Aligner’s optimization engine Strongly encourage the download and setting up a personalized web demo with your AE.Strongly encourage the download and setting up a personalized web demo with your AE.

29. Strategies Understand and seek out information on the development and revision of performance measures Do the performance measures tell your story? Iteration is important and valuable This is the beginning of a partnership process… ExpertChoice helps the dialogue…

30. Questions?