Family Farm Alliance: BOR's "Managing for Excellence" Update

Dear Family Farm Alliance Members and Interested Parties:

Last Thursday, I participated in a panel discussion on “Managing for Excellence” at the Bureau of Reclamation’s managers meeting in Albuquerque , New Mexico . I was joined by George Caan (Executive Director, Colorado River Commission of Nevada) and John Sullivan (Associate General Manager, Water Group, Salt River Project), as the only customer representatives to participate in the meeting. Also, Reclamation last week announced the completion of several products that are posted on its website. The following provides a summary of these developments.

General

“Managing for Excellence” is Reclamation’s response to Managing Construction and Infrastructure in the 21^st Century Bureau of Reclamation, a comprehensive report completed earlier this year by the National Research Council (NRC) of the National Academy of Sciences (NAS). Executing the action plan is a primary initiative for Reclamation this year. This process provides an important opportunity for western water users to find further ways to improve transparency in Reclamation decision-making and make the organization as efficient as possible.

Meeting Overview

John, George and I spoke for about 40 minutes, and participated in 20 minutes of Q&A. I focused on the need for accountability, John addressed the need for transparency, and George provided examples along the Lower Colorado River where customer involvement in both areas has been excellent.

Alliance Involvement with “Managing for Excellence”

I summarized the Alliance ’s involvement in this process. We have spent considerable time and resources in the past year working with the NRC Committee and Reclamation as the Committee developed Managing Construction and Infrastructure in the 21^st Century – Bureau of Reclamation, which was finalized last year. In June of 2005, the Alliance completed our own collection of case studies, titled: The Bureau of Reclamation’s Capability to Fulfill Its Core Mission: The Customer’s Perspective (“Alliance Report”). On June 23, 2005in Washington , D.C. , the Alliance presented its final case study report to the Committee. In May and June of 2005, the NRC Committee also sent out teams of three to tour “case study” sites throughout the West, and committee members met with Alliance representatives at three of these site visits ( Boise , Denver and Sacramento ). Since “Managing for Excellence” was initiated by Reclamation one year ago, the Alliance has been actively engaged in Reclamation’s public meetings and other forums.

Accountability Concerns

On the issue of accountability, I summarized the key findings expressed by our membership in the past two years:

Customers believe they do not have recourse to fully understand and engage with Reclamation in decision-making and related cost estimates;
It is sometimes difficult for customers to pinpoint who is the responsible and accountable individual on Reclamation-managed projects;
The responsibilities and accountabilities (by the involved parties and specific individuals) when federal agencies (not just Reclamation) are involved with water projects often change over time, whereas local irrigation districts can accept responsibility and accountability for completing projects from Day One. When responsibilities shift from desk to desk within agencies, it is difficult to achieve efficiency or sustained progress toward a solution. On the other hand, if a local entity and specific person can provide continuity, leadership, and is motivated to sustain progress and accountability in achieving a defined outcome, real project management efficiency can be realized. If federal agencies are changing roles and responsibilities, and if agency personnel change over time, it is difficult to maintain progress on projects that can take several years to complete.
There is a desire for some irrigation districts to have the ability to assume design and management responsibilities for projects that customers help pay for.

Possible Remedies

I briefly reiterated expectations that Western irrigators have expressed on how accountability can be improved:

· Reclamation requires reporting/tracking for projects that monitor actual Reclamation costs, as well as providing for advance notification to contractors and Congress that there is a material risk that Reclamation will exceed defined Reclamation project costs.

· Reclamation revises the customer interaction process to include written procedures for customer input on current financial circumstances of all Reclamation infrastructure, including cost invested, repayment status, O&M cost allocation, design life, facility condition, etc, and a documented means through which Reclamation used (or didn’t use) this input;

· Reclamation develops and implements a transition plan to achieve an agency with “right-sized” design, estimating and construction management staff;

· Reclamation adopts a policy that contractors who pay for work can elect to use irrigation district personnel or private consultants for design, procurement, construction, and contract and construction management.

To address several of these expectations, Reclamation should institute a policy that requires area managers to encourage full communications and cooperatively develop annual budgets and work plans with its customers, and that accountability for past years’ budgets and work plans are included in that area manager’s annual performance review. Similar cooperative efforts should be directed towards collaborative development of long-term (10-15 year) work plans and budgets.

I also emphasized that a “one size fits all” philosophy is not necessarily the right approach. In some areas – such as the Lower Colorado River , as discussed by George Caan – it is clear that Reclamation and its customers have an exemplary working relationship. George believes that the Lower Colorado customer involvement process could be used as a template for “Managing for Excellence”. However, in other areas, this is not the case. In our view, for those areas where customers are happy – fine, do not change things. Where there is not happiness, efforts like those suggested above should be employed.

Transparency

John Sullivan provided helpful recommendations on how to improve transparency of decision-making at Reclamation, including:

· Annual customer meetings with Reclamation;

· Encouraging local offices to outreach to their constituencies;

· New employee orientation that puts Reclamation hires in direct contact with local entities;

· Early and open communication; and

· Improved justification and communication on project cost estimating processes.

The discussion that occurred with the Reclamation officials in the audience after our presentations was constructive and informative. After the meeting, I had several interesting side discussions with Reclamation folks, including Pacific Northwest Regional Director Bill McDonald, who is taking over Mary Ann Bach’s responsibilities for overseeing the Action Team tasked with “right-sizing” the Technical Services Center in Denver . As many of you know, Ms. Bach recently began work in a new position on a science committee on Capitol Hill.

Action Item Update

Reclamation has made progress in recent months towards completing action items. Many reports and products will be generated during the “Managing for Excellence” project, and Reclamation is soliciting comments on these documents. When these products are ready for your review and comment, they will be placed on Reclamation’s website (http://www.usbr.gov/excellence). You can send a comment by using the "Comments" link or send an email to: excellence@do.usbr.com.

Several Teams have posted their final products. Look for them at: http://www.usbr.gov/excellence/finalproducts.html.

Action Item 4: Identify Decision Making Process Gaps
Final Recommendations
Final Report

Action Item 16: Engineering Standards

Decision Document and Final Report

Action Item 18: Develop process to determine need for major repairs
Decision Memo and Final Recommendations
Final Report

Reclamation Manual Directives and Standards

Action Item 19: Add Value to major repairs
Decision Memo
Final Report

Action Item 20-23: Project Management
Introduction to Project Management

Action Item 25: Financial status reporting

Decision Document

Next Public Meeting

And a reminder, if you have not already, register now for the Public Meeting in Albuquerque :

http://www.usbr.gov/excellence/albpm.html

The meeting will be held at Marriot, 2101 Louisiana Blvd. NE , Albuquerque , New Mexico . February 27, 2007, 1:00 p.m. to 6:00 p.m., and February 28, 2006, 8:00 a.m. to 12:00 p.m. To make reservations at the Marriott, call 1-800-334-2086 or www.marriott.com/ABQNM. To receive a room rate of $70.00 inform the hotel that you are attending the Bureau of Reclamation conference. This rate is available for reservations made by February 12, 2007

Please do not hesitate to contact me if you have any questions about this matter.

Dan Keppen

Family Farm Alliance

(Permission to post from FFA)