House panel presses Corps on project delays, cost estimating and contracting reforms

The House Appropriations Subcommittee opened a hearing on the Army Corps of Engineers’ civil works program with bipartisan concern about recurring project delays and cost growth and with a request that the Corps provide follow-up materials within four weeks.

The hearing’s central question was how the Corps will reduce optimism bias in cost and schedule estimates and improve procurement and project management. Lieutenant General Butch Graham, Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers, told the panel the Corps is focused on three priorities: “get the engineering right, get the project management right, and get the business right.” He said the Corps currently measures an on-schedule rate of 73% across its portfolio and that he expects that percentage to rise “well above 80%” if reforms take hold.

Why it matters: Members said taxpayers and local sponsors bear the cost of overruns and delays and urged the Corps to sign off only on projects with sufficiently mature engineering. Graham said he will only sign chief’s reports when he is satisfied the engineering is mature enough to support the cost estimate. The Corps described a design‑maturity threshold of roughly 35% as a baseline for reliable cost estimates.

Members and witnesses traded examples of projects that illustrated the problem and discussed programmatic steps the Corps is taking. Graham attributed much of the recent cost pressure to market forces, citing five‑year construction inflation figures from the Associated General Contractors and tight labor markets for skilled trades. He described internal remedies including monthly portfolio reviews at division and headquarters levels, consolidating specialized design work into production centers, and leveraging acquisition strategies that better allocate risk with industry.

Several members pushed the Corps on contractor capacity. Members noted a shrinking pool of firms able to carry very large bonds for multibillion‑dollar projects and asked the Corps to expand small business development and hold “industry days” so local firms can better plan to grow into larger roles. Major General Mark Quander and division commanders described regional industry events and design‑center consolidation as part of the response.

The hearing produced no formal votes. Chairman Fleischman asked that written materials and responses be delivered in final form within four weeks to the subcommittee record.

The committee signaled continued oversight: members said they will press the Corps for metrics that can be used to evaluate progress and warned that absent measurable improvement, projects and sponsors will face growing uncertainty.