USACE 101

Agency Overview

The Basics.

Congress established USACE on March 16, 1802, primarily to support military engineering and fortification needs, focusing initially on building coastal defenses and essential infrastructure for national defense. Over the last two centuries, however, USACE has evolved significantly, broadening its mission and capabilities far beyond its military origins.

In the 19th century, ‘the Corps’ began to engage more actively with civil infrastructure, collaborating closely with civilian communities. It was pivotal in constructing iconic national landmarks, such as the Washington Monument, completed in 1884, and managing critical waterway projects essential for commerce and transportation. During this period, USACE earned recognition for its water management and civil engineering expertise, setting the stage for its future growth. The early 20th century marked a time of profound change, highlighted by the construction of the Panama Canal from 1904 to 1914. USACE was instrumental in overseeing this ambitious project, showcasing American engineering on a global scale.

In the aftermath of the Great Mississippi Flood of 1927, the Corps took on new responsibilities related to flood control and disaster response. This led Congress to pass the Flood Control Act of 1928, which designated USACE as the primary federal agency for flood mitigation. World War II (1939-1945) transformed USACE further, as the Corps rapidly constructed vital military installations, airfields, ports, and other facilities, demonstrating its ability to deploy infrastructure swiftly.

After the war, USACE helped rebuild regions affected by the conflict, solidifying its international presence and expertise in complex construction and logistics. In the latter half of the 20th century, USACE expanded its repertoire by undertaking major civil engineering projects, including dams, reservoirs, navigation locks, levees, and hydroelectric power facilities. Legislation such as the Clean Water Act of 1972 and the Water Resources Development Acts beginning in 1974 broadened the Corps’ focus, requiring a balance between infrastructure development and environmental protection.

Fast-forward to the catastrophic impact of Hurricane Katrina in 2005, which exposed glaring weaknesses in the U.S. Army Corps of Engineers’ emergency response capabilities. The devastation wrought by the storm highlighted the urgent need for comprehensive reforms in risk management, fostering robust community coordination, enhancing disaster response strategies, and strengthening infrastructure resilience. In the years since, the Corps has confronted various emerging challenges, including escalating cybersecurity threats, the far-reaching effects of climate change, and the pressing imperative for sustainable energy solutions.

Structure and Organization

A Global Mission with Military at Its Core.

For federal contractors, USACE is a vital engine behind the military’s global infrastructure. Under the current leadership of Lieutenant General William H. “Butch” Graham Jr., the 56th Chief of Engineers, and General Kimberly A. Colloton, the Deputy Commanding General and Deputy Chief of Engineers, the Corps continues to expand its initiatives in engineering, environmental stewardship, and technology.

Today USACE supports hundreds of military installations worldwide, including direct mission support at 42 Army installations, 13 Air Force bases, and 16 Department of Defense and host-nation partner installations—just within the North Atlantic Division alone. USACE also maintains a presence in over 130 countries, delivering critical services that support U.S. defense and security goals globally.

This unmatched scope positions USACE as a premier federal customer and partner for companies specializing in construction, environmental remediation, cybersecurity, energy performance, and advanced infrastructure systems.

A Deep Bench of Specialized Capability.

USACE’s capabilities are further extended through a network of Centers of Expertise, which federal contractors should understand when aligning their services with agency priorities. These centers fall into two categories: Mandatory Centers of Expertise (MCXs) and Technical Centers of Expertise (TCXs). Each of these centers ensures quality, consistency, and cutting-edge expertise across USACE’s projects while creating entry points for contractors with relevant capabilities to engage deeply with the Corps’ specialized missions.

Mandatory Centers of Expertise

There are 14 MCXs across the Corps, designated by USACE Headquarters for their unique, critical technical capabilities. As of 2025, notable MCXs include:

• Missile Defense: Located at the Huntsville Center, this MCX supports missile defense programs and has announced upcoming contracts and conferences related to its mission
  U.S. Army Corps of Engineers.
• Protective Design Center: Established in 1986, the PDMCX focuses on antiterrorism and force protection, providing expertise in protective design.
• Environmental and Munitions: Provides expertise in environmental remediation and munitions response.
• Dam Safety Modification: Located within the Huntington District, this MCX focuses on dam safety modifications.
• Hydroelectric Design Center: Based in the Portland District, it serves as the MCX for hydroelectric power economic evaluation, engineering, and design.
• Modeling, Mapping, and Consequences Production Center: Located within the Vicksburg District, this center specializes in modeling and mapping for risk assessments

 

Technical Centers of Expertise

USACE operates 26 TCXs, which offer exceptional, specialized support but are not required for use. As of 2025, notable TCXs include:

• HVAC Technical Center of Expertise: Located at the Huntsville Center, this TCX provides expertise in heating, ventilation, air conditioning, and refrigerant systems. It was most recently re-certified by USACE on April 26, 2023 .
• Energy Savings and Performance Contracting/Third Party Financing: Offers expertise in energy efficiency and financing mechanisms for energy projects .
• DD Form 1391 Processor: Specializes in the preparation and validation of DD Forms 1391/3086 for military construction projects .
• Operations and Maintenance Engineering Enhancements: Provides support for operations and maintenance engineering improvements .
• Installation Support: Offers expertise in facilities reduction, repair and renewal, and centralized furnishings.

Contracting and Obligation Trends

Where the Dollars Are Going.

USACE plays a key role in federal contracting. Over the last ten years, it has awarded an average of $21B yearly. In FY23, USACE set a record by awarding $28.9B in contracts, showing its growing importance in national infrastructure and emergency response. Most of USACE’s spending goes to construction and engineering services. GSA’s Multiple Award Schedule (MAS) is the contract type USACE uses most often.

Grant Trends

Where the Dollars Are Going.

USACE is widely recognized for its significant federal construction contracts. However, in the past decade, it has made strides in grant-making, opening up valuable opportunities for academic institutions, nonprofits, and technical partners. Since FY17, USACE grant awards have steadily increased, peaking at an impressive $335M in FY19.

Despite this overall growth, annual grant funding can be quite variable, as it is influenced by shifting mission priorities, congressional directives, and various pilot initiatives. Notably, 98% of USACE grants are structured as cooperative agreements involving substantial government participation in project execution. In contrast, only 2% of these grants are traditional block or formula grants, highlighting the collaborative and mission-driven nature of most USACE awards.

Future Investments and Commitments.

FY25 Standstill.

USACE stands at a critical crossroads in FY25. The most recent CR has froze funding at FY24 levels and blocked all new project starts unless explicitly authorized.

A CR doesn’t just delay progress—it undermines the Corps’ evolution into a forward-facing infrastructure agency. Projects that were shovel-ready in FY25 could sit idle for months or longer.

For USACE, this means:

• Delays to major ecosystem and infrastructure projects
• Missed award cycles for contractors
• Stalled planning horizons on multi-year programs
• Deferred progress for communities facing flood risk and climate vulnerability

Budget Planning vs. Administration Realities.

The current Administration has significantly influenced USACE’s operations and priorities, particularly through actions taken by the Department of Government Efficiency (DOGE) and the Department of Justice (DOJ) Environment and Natural Resources Division (ENRD).

Contract Cancellations and Operational Disruptions

While specific USACE contracts are not enumerated in public records, reports indicate that DOGE has targeted the agency for significant cuts. This includes the abrupt termination of leases for USACE district offices in Chicago, Charleston, and Jacksonville, disrupting regional operations and staff logistics.

Environmental Enforcement Rollbacks

Meanwhile, the ENRD—under Attorney General Pam Bondi—has dismantled core environmental justice efforts by terminating programs and sidelining attorneys with expertise in environmental law. These moves have paused litigation, weakened regulatory oversight, and cast doubt on the government’s commitment to environmental enforcement.

Impact on FY25 Strategy

These administrative actions have directly undermined the intent of USACE’s FY25 Civil Works strategy. Contract cancellations jeopardize forward-looking investments in climate resilience, environmental equity, ecosystem restoration, reduced interagency cooperation, and unpredictable policy shifts. Programs supporting disadvantaged communities, in particular, are vulnerable to disruption.

So What?

Here are our takeaways.

Prioritize

Contracts backed by Congressional earmarks, state delegations, or aligned with influential infrastructure caucuses are less likely to be canceled by DOGE. Track Water Resources Development Act (WRDA) line items, FY26 appropriations bills, and NDAA developments for project-specific directives.

Focus

USACE’s civil works priorities—navigation, flood control, and dam safety—still receive bipartisan support. Rebalance your federal sales pipeline toward projects tied to navigation, critical water infrastructure, or Defense-funded military construction.

Avoid

Given the rollback of environmental justice and research programs by DOJ’s ENRD and DOGE, cooperative agreements and R&D-based grants may face high termination risk. Shift attention to competitively awarded contracts with firm funding and milestone-based deliverables.

Strengthen

USACE decisions are heavily decentralized. District offices still control much of the acquisition and procurement lifecycle. Invest in consistent outreach, local teaming, and district-specific capability statements—especially in regions like the Mississippi Valley, South Atlantic, and Great Lakes and Ohio River Divisions.

Invest

DOGE has cut many environmental programs but supports “efficiency upgrades” and physical infrastructure resilience that align with a cost-saving narrative. Position offerings around flood control system automation, structural rehabilitation, SCADA/cybersecurity upgrades, or power reliability, especially if they reduce long-term O&M costs.