The Lower Mon Project

William A. Karaffa, P.E.

Project Manager

Briefing to

Waterways Association of PittsburghApril 14, 2004

The Lower Mon Project

Demolition of Old Dam #2

Braddock Dam

The Lower Mon ProjectBraddock Dam

Demolition of Old Dam #2

The Lower Mon Project

Charleroi Locks

Independent ValueEngineering Study

Project Status

Price

De

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Loc

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Sub 1 Sub 2 Sub 3 Sub 4 Sub 1 Sub 2 Sub 3 Sub 4 Sub 1 Sub 2 Sub 3 Sub 4 Sub 1 Sub 2 Price

Current Design

ML L L L LML

ML L MH MH M L L L ML L H MH MH $415M

Independent VE Proposal

MH MH MH M MH ML ML ML L ML L MH L ML M MH ML MH $390M

Factors Not Included in this Technical Evaluation

LRD & HQ PerspectiveNavigation Industry & Partners PerspectiveCongressional Perspective

Blue Exceptional

Green Acceptable

Yellow Marginal

Red Unacceptable

Low

Predicted Level of Risk

High

Factor D Reliability

Ove

rall

Rat

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Ove

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Rat

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Ove

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Rat

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Medium

Medium Low

Final Evaluation

Medium High

Color Legend Rating

Factor A Technical Approach

Factor B Construction Activities

Factor C Life Cycle Management

Ove

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Rat

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Amount of Risk likely to cause disruption of schedule, increase in cost, degradation of performance, or reduces safety. Risk Level indicates perceived level of contractor emphasis and/or Government monitoring that may be required to overcome difficulties.

The Lower Mon ProjectCharleroi Locks

Independent Value Engineering StudyBest Value Trade-Off Evaluation

The Lower Mon Project

Charleroi LocksIndependent Value Engineering Study

Final Recommendation

● The Evaluation Team and the PRB acknowledged the potential cost savings of $25M was very speculative, due to the preliminary nature of the VE design.

● The PRB concluded that the risks associated with the long term operability, maintainability, and navigation safety of the VE to be unacceptable, regardless of the potential cost savings.

The Lower Mon Project

Charleroi Locks

Project Status

● Right Bank Work Features - Ongoing

● River Chamber Demolition – Ongoing

● New River Wall Construction – Advertise April 26, 2004

● Waterways Site Visit – April 22, 2004

Lower Monongahela River ProjectEfficient & Constrained Funding Streams

0

20000

40000

60000

80000

100000

120000

FY-01

FY-02

FY-03

FY-04

FY-05

FY-06

FY-07

FY-08

FY-09

FY-10

FY-11

FY-12

FY-13

FY-14

FY-15

FY-16

FY-17

FY-18

FY-19

FY-20

Efficient $80M Maximum Constrained Actual Original Project Schedule

Contract delivery at the rate suggested by the ceilings has not been adequately evaluated. The only accurate forecast is that the constrained schedule will delay project completion by at least seven years, to 2019 or beyond.

Efficient = $60 M / Year (Average)

Lower Monongahela River ProjectCurrent Schedule ($30 M / Year)

Remove L/D 3

Braddock Dam - Prior Contracts

Charleroi Locks - Site Development

Charleroi Locks - River Chamber Demolition

Braddock Dam

Charleroi Locks - River Wall

Charleroi Locks - Upper and Lower G-Walls

Charleroi Locks - Middle Wall

Charleroi Locks - River Chamber; Control Tower, Stilling Basin

Charleroi Locks - Land Wall and Chamber

Pool 3 Dredging

Relocations

Lower Monongahela River ProjectImpacts of Constrained Funding

•Completion of Charleroi Locks is delayed 6 years

•Risk of failure at L/D 3 increases significantly; major rehabilitation may be required to extend project life until 2016 when Dam 3 is removed.

•Increased O&M costs to maintain depreciated lock operating equipment at Locks 3 & 4

•Total benefits foregone with FY-05 constrained schedule are estimated at $1.2 billion.

Lower Monongahela River Project

Additional O&M Requirements

•Locks 3 & 4 (Normal Maintenance Schedule)2007 Repair Valves & Gate Miter Sills $2.0 M2010 Lock Gate Replacement or Rehab $1.5 M2017 Repair Valves & Gate Miter Sills $2.2 M

Total (Each Project)

$5.7 M

•Dam 3•Significant potential for foundation failure without major Rehabilitation. Pool 3 could be lost, resulting in significant impacts to Locks 4 stability, Municipal water intakes, and private facilities.