This memo represents one of the most consequential reforms in the package, targeting the front end of the USACE project pipeline—where studies are initiated, scoped, and justified. The core problem identified is that feasibility studies are too slow, too costly, and often initiated without sufficient discipline, leading to a backlog of studies that consume resources without producing implementable projects. The issue is compounded by WRDA 2024 expanding the number of authorized studies, further straining an already oversubscribed portfolio (page 1).
The directive fundamentally reframes the investigation phase as a screening and scoping function, not an open-ended analytical process. It introduces a formal requirement to determine Federal Interest up front—before a feasibility study is even scoped, budgeted, or scheduled. This is a major shift: historically, federal interest was often refined during the feasibility process; now it becomes a threshold gate that must be cleared quickly and decisively. The memo also explicitly ties federal interest to core mission areas (navigation, flood risk management, ecosystem restoration) and requires confirmation that a viable, cost-justified alternative exists that could ultimately support a Chief’s Report and Congressional authorization (pages 1–2).
A critical addition is the requirement to evaluate non-federal sponsor capability early, including their legal authority, financial capacity, and ability to meet long-term O&M responsibilities. If federal interest is weak, the Corps is directed to steer projects toward technical assistance authorities instead of full feasibility studies, effectively filtering out projects that should not enter the federal pipeline (page 2). This represents a clear shift toward shared responsibility and sponsor readiness as prerequisites, not afterthoughts.
Beyond FID, the memo significantly tightens governance and oversight of the entire investigation phase. The Office of the Assistant Secretary of the Army (Civil Works) (OASA(CW)) is positioned as an active gatekeeper, requiring concurrence on study scope before feasibility work begins and at key decision points during PED if scope changes occur (page 2). It also emphasizes that investigations are an enterprise responsibility, directing districts to leverage staff and contracting resources across the Corps rather than operate independently. Hiring is discouraged in favor of enterprise-wide staffing and expanded use of contractors, reinforcing broader workforce efficiency directives.
The memo further introduces active portfolio management tools that were not highlighted previously. These include:
- Line-item portfolio reviews and “investigation reset” authority, allowing studies that exceed time/cost limits or drift from priorities to be rescoped or terminated
- A requirement to review the entire active investigations portfolio and report back by March 31, 2026)
- Direction to reassess and streamline the milestone review process (Alternatives, TSP, Command Validation), which has historically contributed to delays
- A comprehensive review of all internal and external review requirements, including Independent External Peer Review (IEPR), with the goal of eliminating outdated or duplicative steps
Finally, the memo reinforces statutory discipline by reiterating that investigations should adhere to the 3-year / $3M limits, with waivers discouraged and exceptions treated as rare. Studies paused beyond their approved timelines are subject to termination, signaling a much more aggressive approach to managing schedule and cost performance.
Keay actions identified in the memo:
Federal Interest Determination
- Require FID of all new FY26 investigations within 45 days at a cost less than $100K
- FIDs should evaluate:
- Federal mission alignment
- Sponsor capability
- Economic and environmental justification
- Require early confirmation of non-federal sponsor capability (financial, legal, O&M responsibilities)
- Redirect low-federal-interest projects to technical assistance authorities
Governance and Oversight
- Require the Office of the ASA CW to concur on study scope before feasibility begins
- Require concurrence for scope changes during PED
- Escalate policy or controversial issues immediately to ASA CW.
- Reinforce 3-year/$3M study limits
- Strongly discourage wavers for time/cost overruns
Enterprise Resource Management
- Treat investigations as an enterprise-wide responsibility
- Require districts to:
- Use shared staffing across districts
- Expand use of contracting support
- Discourage hiring of new staff; prioritize existing workforce optimization
Portfolio Control & Discipline
- Conduct line-item review of al ongoing investigations
- Enable rescoping or termination of non-performing studies
- Terminate studies paused beyond approved timelines
- Deliver portfolio review briefing by March 31, 2026
Process Streamlining
- Reassess and streamline milestone review framework
- Review and eliminate outdated internal/external review requirements
- Evaluate entire lifecycle review process, including:
- Planning
- Construction
- O&M
- IEPR and safety reviews