Emergency power

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I have an MCC with a built-in manual transfer switch, 120/208v 3-phase system. This project is for the Corp of Engineers at a large dam. They are afraid that something might happen to the MCC or the transfer switch during an emergency. The emergency generator is located in the same room as the MCC. They want to install a fusible disconnect connected to the generator output and within 10' of the generator, for absolute emergency situations. Any ideas about code conflicts?
 
I am probably mistaken I thought this was a power generating dam on secound look at your post that was a great assumption on my part. 708 would not apply but the overcurrent should still be OK.
 
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