The Corps of Engineers Has Expanded Fiscal Year 1982 Appropriations for Libby Dam Units 6, 7, and 8

Gao ID: EMD-82-81 May 3, 1982

Pursuant to a congressional request, GAO examined the Corps of Engineers' fiscal year 1982 appropriations to determine whether funds were being spent in furtherance of units 6, 7, and 8 at Libby Dam, Montana. Specifically, GAO was asked whether: (1) transformer units being procured by the Corps will in any way be in furtherance of units 6, 7, or 8; and (2) the Corps has applied any of its fiscal year 1982 appropriations to contracts for units 6, 7, or 8.

Due to several court rulings, construction on parts of the Libby Dam project has been stopped. As a result, Congress provided guidance on how the Corps was to spend its 1982 appropriations on Libby. However, in spite of congressional guidance not to spend money in furtherance of units 6, 7, and 8, GAO found that the Corps contracted for two double transformers custom designed for Libby Dam. GAO stated that the Corps' procurement of the double transformers, in effect, enhances the future economic viability of Libby units 6, 7, and 8. GAO also found that a major portion of the Corps' fiscal year 1982 appropriations for Libby are being used to acquire generator components and other parts in furtherance of units 6, 7, and 8. This represents funds to cover contractual obligations made before fiscal year 1982.



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