United States - —
Environmental Protection
Agency
Of'co of Ermergoncy and
Remedial Response
Washington DC 20460
FPA 540 G-90
August 1990
Superfund
xvEPA
Guidance on Expediting
Remedial Design and
Remedial Action
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EPA/540/G-90/006
OSWER Directive 9355.5-02
August 1990
Guidance on Expediting Remedial Design
and Remedial Action
U.S. Environmental Protection Agency
5. Library (PL-12J)
Office of Emergency and Remedial Response
U.S. Environmental Protection Agency
Washington, DC 20460
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NOTICE
This guidance was developed by the U. S. Environmental
Protection Agency's Office of Emergency and Remedial Response,
Hazardous Site Control Division. It has been subjected to the
Agency's review process and approved for publication as an EPA
document.
The policies set out in this document are intended solely
for the guidance of Government personnel. They are not intended,
nor can they be relied upon, to create any rights enforceable by
any party in litigation with the United States. EPA officials
may decide to follow the guidance provided in this document, or
to act at variance with the guidance, based on an analysis of
specific site circumstances. The Agency also reserves the right
to change this guidance at any time without public notice.
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TABLE OF CONTENTS
NOTICE iii
TABLE OF CONTENTS V
LIST OF FIGURES vii
ACRONYMS USED IN THIS GUIDANCE viii
CHAPTER 1 INTRODUCTION
1.1 Purpose of this guidance 1
1.2 Definitions of terms 1
1.3 Overview of this guidance 1
1.4 Applicability of this guidance 3
1.5 Areas the guidance does not address .... 3
CHAPTER 2 REMEDIAL MANAGEMENT STRATEGY
2.1 Introduction 5
2.2 Pre-design planning 5
2.3 Expediting remedial design
and remedial action 7
2.4 Management considerations 7
2.5 RMS report 10
CHAPTER 3 PHASING
3.1 Introduction 11
3.2 Criteria for phasing 11
3.2.1 Phasing by availability of
existing information 11
3.2.2 Phasing by type of waste 11
3.2.3 Phasing by type of media involved . . 12
3.2.4 Phasing by technology requirements . 12
3.2.5 Phasing by funding availability ... 13
3.3 Management considerations for phasing ... 13
CHAPTER 4 FAST-TRACKING REMEDIAL DESIGN AND REMEDIAL ACTION
WORK ELEMENTS
4.1 Introduction 15
4.2 Projects and remedial work elements
most suited to fast-tracking 16
4.3 Fast-tracking techniques 18
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4.4 Suggestions to implement fast-tracking ... 20
CHAPTER 5 CONTRACTS AND SPECIFICATIONS
5.1 Contract types 23
5.1.1 Fixed-price type contracts 23
5.1.2 Cost-reimbursement type contracts . . 24
5.1.2.1 Incentive type contracts ... 24
5.1.2.2 Time and materials type
contracts 25
5.2 Specifications 25
5.3 Nature of the contract 26
5.3.1 Construction 27
5.3.2 Service 27
5.3.3 Application 28
CHAPTER 6 PROCUREMENT STRATEGIES
6.1 Introduction 31
6.2 Sealed bidding 32
6.2.1 Presolicitation 32
6.2.2 Solicitation and receipt of bids . . 32
6.2.3 Bid evaluation 32
6.2.4 Award 33
6.2.5 Advantages of sealed bidding .... 33
6.3 Negotiated procurement 33
6.3.1 Presolicitation 34
6.3.2 Solicitation and receipt of proposals 34
6.3.3 Evaluation of proposals 34
6.3.4 Discussions 35
6.3.5 Best and final offers 35
6.3.6 Source selection and award 35
6.3.7 Advantages of negotiated procurement 36
6.4 Two step sealed bidding 36
6.4.1 TSSB step one 36
6.4.1.1 Unacceptable proposals .... 37
6.4.1.2 Proposals which are accept-
able, or susceptible to being
made acceptable 37
6.4.2 Step two 37
6.4.3 Advantages of two step sealed bidding 38
6.5 Schedule impacts of procurement strategies . 38
CHAPTER 7 PHASING/FAST-TRACKING ANALYSIS
7.1 Introduction 41
7.2 Phasing analysis 41
7.3 Fast-tracking analysis 44
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LIST OF FIGURES
Figure
Number Figure Title Page
2-1 Pre-design planning phase 6
4-1 Phasing and fast-tracking versus traditional
RD/RA 17
7-1 Phasing analysis 42
7-2 Fast-tracking analysis 45
7-3 Procurement 47
Vll
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ACRONYMS USED IN THIS GUIDANCE
ARCS - Alternative Remedial Contracting Strategy
BAFO - Best and Final Offer
BUREC - Bureau of Reclamation
CA - Cooperative Agreement
CBD - Commerce Business Daily
CERCLA - Comprehensive Environmental Response, Compensation,
and Liability Act of 1980
CFR - Code of Federal Regulations
CO - Contracting Officer
CPM - Critical Path Method
DBA - Davis-Bacon Act
DOL - Department of Labor
EPA - Environmental Protection Agency
ERGS - Emergency Response Cleanup Services
GVS - Greatest Value Score
IFB - Invitation for Bids
OSWER - Office of Solid Waste and Emergency Response
PDTS - Predesign Technical Summary
PRP - Potentially Responsible Party
RA - Remedial Action
RD - Remedial Design
RFP - Request for Proposals
RFTP - Request for Technical Proposals
RI/FS - Remedial Investigation/Feasibility Study
RMS - Remedial Management Strategy
ROD - Record of Decision
RPM - Remedial Project Manager
SSC - State Superfund Contract
TSSB - Two Step Sealed Bidding
USAGE - U. S. Army Corps of Engineers
VE - Value Engineering
Vlll
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CHAPTER 1 INTRODUCTION
1.1 PURPOSE OF THIS GUIDANCE
This guidance examines ways to expedite remedial design and
remedial action (RD/RA) so that cleanup activities can be
completed more quickly. It is intended for use by remedial
project managers, remedial design contractors, and others
involved in planning remediation activities. It should be used
as a means to evaluate whether a project is suited for expediting
and to determine the methods that could be used. The guidance is
intended as a management approach, not a "cookbook," for planning
projects. Each project is unique, and the approach should be
tailored accordingly.
In "A Management Review of the Superfund Program," or the
Ninety Day Study, Administrator Reilly emphasized a bias for
action at Superfund sites. The National Contingency Plan also
emphasizes a bias for actions which eliminate, reduce, or control
site hazards as early as possible. This guidance emphasizes the
same bias—expediting cleanups. It is a complementary guidance
to OSWER Directive 9355.3-06, "RI/FS Improvements, Streamlining
Recommendations."
Application of the concepts in this guidance should not
significantly increase the remedial project managers' workloads.
It may, however, increase the remedial design and remedial
action contractors' workloads to incorporate and coordinate the
approaches.
1.2 DEFINITIONS OF TERMS
The following terms are used in this guidance:
Project - A remedy described in the Record of Decision that
must be accomplished. It may be the remedy for an entire
site or an operable unit.
Remedial work element - A portion of a project that has
been broken out through phasing. This will be a separate
contract package for procurement of remedial design work
elements as well as remedial action work elements.
Steps - The individual pieces or activities required to
complete each remedial work element. The steps are
manipulated to fast-track the element.
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1.3 OVERVIEW OF THIS GUIDANCE
Chapter 2 discusses the Remedial Management Strategy, or
RMS, which is a planning document for the remedial design and
remedial action. Careful RD/RA planning is critical to
successful execution of a project. The RMS, which is typically
prepared by the Remedial Project Manager, is a systematic
consideration of the components of remedial design and remedial
action. The resultant document is a road map for the design of a
project.
As part of the RMS, the RPM, in conjunction with the
designer, should consider phasing, which is covered in Chapter 3.
Through phasing, a project is divided into separate remedial work
elements that can be implemented on different schedules. The
chapter discusses criteria for phasing and management issues that
should be considered.
Once phasing is determined, Chapter 4 discusses how to fast-
track the individual remedial work element. Steps in the RD
process can be eliminated or rearranged to accelerate the
overall schedule. Techniques to analyze a project for fast-
tracking are discussed in detail as well as the suggested
approach.
Chapter 5 deals with types of contracts and specifications.
The two primary contract types are fixed-price and cost-
reimbursement, with variations within these types.
Specifications can be performance, design, or brand name or
equal. The chapter describes these contract and specification
types and considerations for selecting the appropriate type.
Also discussed is the distinction between construction and
service contracts.
Procurement strategies are discussed in Chapter 6.
Different types of work are suited for distinct solicitations.
Those described in Chapter 6 are sealed bidding, negotiated
procurement, and two step sealed bidding. The process for each
solicitation as well as advantages, disadvantages, and schedule
impacts are described.
Finally, Chapter 7 describes how to put these techniques
and concepts together to expedite RD/RA. It includes flow
charts on phasing, fast-tracking, and procurement with
explanations of the decision process.
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1.4 APPLICABILITY OF THIS GUIDANCE
Although the techniques described in the guidance are
directed toward Federal fund-lead projects, the concepts are also
applicable to State- and Potentially Responsible Party-lead
projects. Some projects are more amenable to acceleration than
others. The acceleration techniques covered work best for
smaller projects, but they can apply to all projects.
1.5 AREAS THE GUIDANCE DOES NOT ADDRESS
The use of an innovative technology is an important
consideration in planning RD/RA. The topic, however, is not
specifically addressed in this document but will be the subject
of a separate guidance. Innovative technology can, however, be
incorporated into the concepts discussed.
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CHAPTER 2 REMEDIAL MANAGEMENT STRATEGY
2.1 INTRODUCTION
The Remedial Management Strategy (RMS) is a planning tool
for expediting the remedial design (RD) and remedial action
(RA) . It contains an analysis of the major management
considerations required to achieve the goals of the ROD in a
timely manner. Preparation of the strategy by the lead agency
RPM is essential for the smooth progression of a project through
RD and RA.
2.2 PRE-DESIGN PLANNING
Pre-design planning, as shown in Figure 2-1, moves a
project from the Record of Decision (ROD) into the remedial
design. During this phase, a Pre-design Technical Summary
(PDTS) is developed prior to negotiations with the PRPs to
express EPA's technical requirements in design terms. If the
response action will be financed by the Fund, a decision must be
made as to whether EPA or the State will be the lead agency.
Once the lead agency has been determined, an RMS should be
prepared to establish a strategy for managing the remedial design
and remedial action. The RMS is a working document for internal
use. It is not intended to be cumbersome or difficult to
prepare. The RMS length and complexity should be tailored to the
nature of the project and kept as brief as possible. The lead
agency RPM, with technical assistance from various resources,
such as contractors and other agencies, should develop an RMS
using the following general guidelines:
Identify project goals in the ROD.
Evaluate the project site, including geography,
geology, climate, access, local population, utilities,
evacuation routes, and proximity of hospital and fire
department facilities.
Review the remedial technology to determine the need
for new or innovative equipment, items requiring long
lead-time for procurement, operable units, and
specialty contractor requirements.
Develop schedules and budget projections.
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FIGURE 2-1
PRE-DESIGN PLANNING PHASE
RECORD OF DECISION
PRE-DESIGN TECHNICAL SUMMARY
PRE-DESIGN
PLANNING
PHASE
1
NEGOTIATIONS
WITH PRPs
REMEDIAL MANAGEMENT STRATEGY
1
REMEDIAL DESIGN
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Evaluate funding requirements (such as mixed or
incremental funding.
Review health and safety requirements.
Develop a Remedial Management Strategy that is
consistent with the project's goals and constraints.
Section 2.4 explains the RMS in more detail.
2.3 EXPEDITING REMEDIAL DESIGN AND REMEDIAL ACTION
Careful project planning prior to design can yield great
dividends in expediting both the RD and RA:
The selected approach should be coordinated with the
projected funding and schedule requirements.
Early selection of contract options saves both time
and money.
A comprehensive Remedial Management Strategy developed
after completion of the ROD will result in a smoother
transition to RD and RA by identifying roles and
responsibilities.
An early review of the management risks associated
with the project can prevent designer and RA
contractor claims and provide for strategies to resolve
disputes during the project.
2.4 MANAGEMENT CONSIDERATIONS
Because the significance of individual considerations will
vary from project to project, part of the RMS development
involves analyzing the relative importance of each of the
following factors on the project goals:
Contracting Party. EPA's RPM must determine, based on
EPA policy guidelines, which organization will contract
for RD (State, EPA, USAGE or BUREC) and the RA (State,
ARCS, USAGE or BUREC). Once the selection is made, the
lead agency RPM should utilize the expertise of
contractors and other agencies to help develop the RMS.
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Funding. Funding considerations are of particular
concern in the development of a management strategy,
particularly if the project is a multi-year effort.
The strategy must address the availability of funds
including the State cost share and obligations during
future years. Interagency funding agreements should be
confirmed early to prevent possible delays. The RMS
should include budget planning projections based on the
proposed project schedule and contract packages.
Resources. An analysis must be made to determine the
special technical qualifications for the work, the
workload and availability of the resources required,
and the level of interest of qualified contractors.
Site access. Access to the site is crucial to the
implementation of a remedy. A plan should be
developed to resolve any site access problems and
obtain the necessary rights-of-way.
Regulations and permits. The RMS should also include,
to the extent possible, an evaluation of the logistical
elements involving agencies that have jurisdiction
over the site such as:
Federal agencies
Local planning commissions
Zoning authorities
County building departments
Local water and waste water authorities
Public utilities (gas, electric, telephone)
State industrial safety divisions
Local law enforcement agencies
Local fire departments
Traffic and highway authorities
State environmental offices
Health and safety. The management of the health and
safety program will have an impact on the successful
completion of the project. The health and safety
program and the protective gear requirements will
affect the productivity of the RA personnel and
influence the schedule of the project. An estimate of
these impacts should be made to provide a clearer
picture of the overall duration of the project.
Phasing and fast-tracking. One of the first items to
be evaluated in an RMS is the potential for phasing or
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fast-tracking the project. These approaches will
allow the RA to be implemented sooner than if all of
the steps were treated as a single design and remedial
action. Chapters 3 and 4 explain phasing and fast-
tracking in more detail.
Equipment. The ROD may specify a process or remedy
that requires special or proprietary equipment,
particularly if a new or innovative technology is
recommended. In these instances, it is important to
evaluate the delivery schedule for such equipment.
This would include the time necessary to review shop
drawings, do performance testing, and for shipping
requirements. If these processes are anticipated to
take a long time, consideration should be given to
purchasing the equipment under a separate contract to
ensure its timely delivery to the site.
Weather. When considering weather, it is necessary to
evaluate not only the time of year when the work will
occur but also the geographic location. Extreme
temperatures or high winds may make execution of a
remedial action difficult.
Design reviews. The importance of reviews cannot be
overlooked in planning the management strategy,
especially when multiple agencies are involved in the
project. EPA, USAGE, BUREC, States, PRPs, citizens
groups and local agencies may need to provide input at
various points along the way. The schedule should
reflect the needs of each party so that the project
will not be delayed.
Community Relations. Prior to the initiation of
remedial design, the Community Relations Plan may need
revision to address any new community concerns
anticipated to arise during RD and RA.
Communications. The best way to communicate to all
parties the need for quick response is with a
communication matrix, which can be developed as one of
the products of the RMS. This matrix shows the
procedural flow of information such as submittals,
memoranda, documents, and approvals. These
communications procedures are agreed to by all parties
before the RD begins.
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Disposal issues. Because issues regarding the disposal
of materials, such as off or on-site disposal and
manifests, can affect the RD/RA process, the RPM should
address this element in the RMS. The sooner these
issues are addressed, the easier it will be for the
designer to prepare the RA documents to reflect the
needs of the project.
Procurement. At this point in the project/ it is
necessary to consider the RA procurement options that
are applicable. Once the number and type of remedial
designs and remedial actions have been determined,
procurement methods and types of contracts and
specifications can be analyzed so that the RPM can
formulate a planning approach to procurement.
Chapters 5 and 6 cover contracts and procurement
strategy in more detail.
RD and RA Cost and Schedule. The RMS should develop a
preliminary schedule for the RD and RA. To assist in
the project planning, EPA has developed a series of
generic RD schedules that identify tasks, durations,
and resources for various types of projects. These
standard schedules also account for varying levels of
complexity within the project. The schedule developed
for the RMS should also identify critical tasks that
need to be started early to minimize project delays,
give the designer a road map of how the project should
be managed, and identify the critical milestones to be
met.
2.5 RMS Report
The RMS report should include the following major sections:
Summary
Introduction and project description
Summary of ROD requirements
Summary of collected information
Recommended remedial action approach, including a
schedule and budget projection for the project
Description of all issues that remain to be resolved
or that require further analysis
The chapters that follow cover in more detail methods to
accelerate remedial design and remedial action that could be
incorporated into the RMS.
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CHAPTER 3 PHASING
3.1 INTRODUCTION
Phasing is the division of a project into meaningful
remedial work elements that can be implemented on different
schedules resulting in acceleration of the remedial design and
remedial action. It allows certain elements of a project to be
started ahead of others to lessen the hazards present at the
site and to complete simple prerequisite work elements or
nonhazardous work elements ahead of more complex and hazardous
work elements. Large, complicated projects are separated into
smaller, more manageable remedial work elements. Each element
can move at its own optimum rate to completion, thereby preparing
the site for any further required remediation.
3.2 CRITERIA FOR PHASING
Phasing decisions are based on many criteria, including
availability of existing information, type of waste, type of
media, technology requirements, and funding availability.
3.2.1 PHASING BY AVAILABILITY OF EXISTING INFORMATION
Assessment of existing information for a site can result in
a decision to phase work elements. Where information for part of
the site, or one of several media on the site is already
sufficient for design to begin, phasing that portion of the work
may be appropriate. The decision requires evaluation of
available information, such as type, concentration, and physical
extent of waste and media affected. For example, if information
on one of two media is already available, a work element can be
established for the first medium. Also, certain aspects of the
design, such as road development or utilities installation, can
proceed while data on other aspects of the design is being
gathered.
3.2.2 PHASING BY TYPE OF WASTE
Segregation of non-hazardous and hazardous work elements
may be a simple criterion for project phasing. The engineering
required for the non-hazardous components of a project is
frequently more conventional and may lend itself readily to
accelerated schedules in RD and RA. Examples are access roads,
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fences, and provision of site utilities and buildings. In
addition, these types of work elements are frequently
prerequisites for more complex elements. It may make sense to
begin design and construction of these items as early as possible
in the project to ensure that their construction does not impact
subsequent work and to avoid construction congestion.
3.2.3 PHASING BY TYPE OF MEDIA INVOLVED
It may be desirable to phase different media into discrete
remedial work elements to expedite the start of remedial action.
For example, if a soil or sludge has contaminated the
groundwater, the RD/RA for the source pollution could be
addressed separately from that of the contaminated groundwater
plume. Remediation of groundwater may be approached by initially
installing a limited barrier well/treatment system and then
expanding the treatment scheme as more information is obtained.
This allows for quick action based upon limited design
information with larger scale actions to follow.
Similarly, wastes which are physically separated, although
present in the same medium, can be addressed independently as
separate remedial work elements in order to phase the RA process.
For example, where it may be necessary to excavate contaminated
soil from around and under a number of homes, certain areas where
access has been obtained could be remediated before others. Or,
where several waste ponds are present at a site, one waste pond
may be remediated first to ensure the process works
satisfactorily.
3.2.4 PHASING BY TECHNOLOGY REQUIREMENTS
Simple remedies can obviously be implemented much more
quickly than those requiring detailed equipment design,
fabrication, and specialized operation. Excavation of
contaminated soil and back filling with clean material can be
started without high technology equipment. Conversely, the
design, fabrication, erection, and operation of the on-site
system to treat the same soil could extend over a several month
period. Consequently, it may be best to phase these activities
by setting up two contracts. By separating the overall remedy
into remedial work elements based on the type of technology to be
implemented, the remedial action can be expedited.
Technology requirements may also vary with the media being
remediated, such as air stripping for groundwater and
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solidification for soil. It is reasonable to separate and group
media components to allow independent development of RD and RA
schedules. This allows each element to be implemented as it is
finalized without waiting for completion of the design for
another element.
3.2.5 PHASING BY FUNDING AVAILABILITY
Remedial action funding considerations may result in phased
RD/RA activities. The availability of federal funds to
implement a remedy or the willingness of a State to cost share
all or part of the remedy has a definite effect on the type,
amount and schedule of work which can be performed. The project
may have to be phased using the previous criteria in order to be
consistent with available funding strategies. An example would
be to fund mobilization and construction of an incinerator as
phase one, and fund operation of the incinerator as phase two.
3.3 MANAGEMENT CONSIDERATIONS FOR PHASING
The decision to phase RD/RA activities should include
certain considerations with respect to cost, project schedule,
quality of product, and community relations.
By phasing, the RD/RA is broken down into smaller, discrete
work elements which are more manageable and cost efficient and
less subject to changes or cost increases. Cost estimates for
subsequent work can be more precisely determined by building on
the experience gained from prior work elements at the site.
However, there may be redundancy in areas such as the design and
procurement process, driving up total project cost. Also, the
total cost of the final remedy is not certain until the last work
e1ement i s imp1emented.
For scheduling purposes, the time frames for each work
element will be less than for the project in its entirety. This
situation allows evaluation of schedule trends during the
project, thus allowing tighter control of the schedule.
Improvement of a project's critical path schedule may be achieved
by overlapping work element starts and concurrent actions in
design and construction, such as initiating groundwater pump and
treatment while source control design is still in progress. Be
aware, however, that a project's critical path will not be
improved if the phased work elements are not on the critical
path.
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Quality of individual work element design may be improved
because knowledge obtained from prior work elements, or phases,
can be integrated into design or operational considerations of
subsequent work elements. This advantage does not apply,
however, if the work elements are developed concurrently.
If a project is phased, there will be more than one
contract to administer. Coordination of several contractors may
be difficult, resulting in more administrative burden. Time may
be lost and delay costs incurred if one contractor interrupts
another's work. Therefore, the RMS should be carefully developed
to better manage these projects.
Community perceptions may be improved by taking a phased
work element approach, especially if the approach accelerates
initial on-site activity. Phasing could help to alleviate
concern over a lack of progress on appropriate remedial action.
Phasing can be an effective way to accelerate both a
remedial action start and completion at a project site. As can
be seen, however, the decision to phase involves an evaluation of
many alternatives and considerations. Once the decision to
phase is made, fast-tracking of individual phases should be
evaluated as discussed in the following chapter.
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CHAPTER 4
FAST-TRACKING REMEDIAL DESIGN AND REMEDIAL ACTION WORK ELEMENTS
4.1 INTRODUCTION
Fast-tracking is complementary to phasing. Whereas phasing
is the process in which large complex projects are broken into
smaller more manageable work elements, fast-tracking is a method
to accelerate the implementation of those individual work
elements. Fast-tracking techniques manipulate the internal steps
required to complete each phased element, thereby optimizing the
overall schedule. Depending on the complexity of the project,
fast-tracking can be used in conjunction with phasing or by
itself to achieve these benefits.
The internal steps to implement a phased element are often
interdependent, i.e., some steps will rely on the completion of a
previous step and cannot begin until that activity is completed.
Other activities may have varying degrees of dependency, and
some may be totally unconstrained and scheduled as simultaneous
activities without regard to dependency. Fast-tracking
techniques, which take these interrelationships into
consideration, generally fall into one of the following
descriptions:
Eliminate. Steps in the process are eliminated or
shortened. Because steps are often interrelated,
however, this technique may create problems later on.
For instance, deciding to use existing data previously
collected during the RI/FS instead of collecting
additional data during the remedial design will
expedite the design process. This approach, however,
may result in design delays if the RI/FS data turns out
to be marginal or incomplete.
Rearrange. The sequence or timing in which the steps
are performed is rearranged to accelerate the overall
schedule. An example might be to schedule design
reviews in parallel with continuing design work so they
are not on the critical path. Using this type of
technique is usually done without assuming additional
risk as long as no steps are eliminated or shortened.
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4.2 PROJECTS AND REMEDIAL WORK ELEMENTS MOST SUITED TO FAST-
TRACKING
Most projects can be fast-tracked to expedite their
schedules; however, the less complex the project or remedial work
element, the more receptive it is to being accelerated by fast-
tracking. This is because it is more likely that some standard
tasks can be eliminated or shortened. For example, a simple
project will probably not require a treatability study or value
engineering study. Superfund projects that are more easily
expedited typically exhibit the following characteristics:
Technology. The applied remedy utilizes a proven
technology.
Data requirements. A treatability study is not
required (or has already been completed during the
RI/FS) and only minimal additional field data may be
required.
Value engineering. Based on the screening, a value
engineering study is determined not to be needed.
Intermediate design. Intermediate design submittal
and review are not required. Other design reviews are
done in parallel.
Long-lead procurement. If long-lead procurement or
fabrication is required, it is fast-tracked to keep it
off the critical path.
Real estate. There are no unusual real estate or
permit requirements.
Assuming the above project characteristics, Figure 4-1
illustrates the relative time savings that may be achieved by
phasing and fast-tracking a project. In the traditional
approach, the entire remedial design is completed and then
reviewed before initiating procurement. In the fast-track
project scenario, site preparation construction is phased out of
the remainder of the project using a clean work versus hazardous
work criterion, and it is fast-tracked using standard
specifications for the clean work. The remainder of the design
for hazardous source control continues on the standard route
through design. Assuming all design reviews are conducted in
parallel, the fast-track procedures not only expedite the
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FIGURE 4-1
PHASING AND FAST-TRACKING VERSUS TRADITIONAL RD/RA
I I REMEDIAL MANAGEMENT STRATEGY TO PHASE AND FAST-TRACK
SITE PREP DESIGN (ACCESS, UTILITIES,
FENCING)
DESIGN REVIEW
SITE PREPARATION PROCUREMENT
SITE PREPARATION CONSTRUCTION
PHASE 1
KV\VVOv\\1 SOURCE CONTROL DESIGN
E%%! DESIGN REVIEW
PHASE 2
SOURCE CONTROL PROCUREMENT
SOURCE CONTROL CONSTRUCTION
TRADITIONAL
OVERALL PROJECT
SCHEDULE SAVINGS
REMEDIAL DESIGN
DESIGN REVIEW
PROCUREMENT
REMEDIAL
ACTION
This figure illustrates relative time savings that may be achieved by fast-tracking a project. In this example
site preparatory work is started with a limited design while the design for the source control action continues.
Assuming all design reviews are conducted in parallel, the fast-track procedures not only shorten the time
necessary to initiate construction, but also accelerate completion of the project.
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construction start, but also accelerate the completion of the
project.
4.3 FAST-TRACKING TECHNIQUES
All remedial design and remedial action projects (whether
phased or not) can take advantage of fast-track techniques to
expedite their schedules. Because each project is unique,
however, it is not possible to lay out a generic "cookbook"
formula for fast-tracking. Each project should be analyzed
based on the requirements and interrelationships of requisite
activities. In other words, plan a strategy. The Remedial
Management Strategy described in Chapter 2 is a valuable tool for
this purpose. The following are some possible techniques that
can be used to fast-track RD/RA activities:
Design requirements. Reduce the detail required in the
design package. For many small projects or portions of
larger projects (i.e. soil excavation, dismantling of
structures, simple pump and treat systems), the design
need only include a site layout drawing and a basic
description of the work to be performed. This may be
contrary to the more conservative approach of providing
a design with detailed specifications and drawings, but
significant time and design cost savings may result.
Standard specifications. Use of standard
specifications enables completion of remedial designs
in significantly less time. Standard specifications
are inherently general in order to have a broad range
of application. Since this can lead to vagueness when
applied to a specific project, standard specifications
should be modified as appropriate for the intended
use. Various manufacturers, associations, and
government agencies have developed standard
specifications applicable to Superfund construction
projects. Examples include the U.S. Army Corps of
Engineers' specifications for remediation of hazardous
waste sites, and the American Public Works
Association's generic specifications. Use of these or
similar specifications instead of, or in combination
with, detailed design specifications will simplify and
expedite design and equipment procurement activities.
Specifications from a similar project. Many projects
are similar in scope to projects that have already been
designed. If these specifications are well prepared,
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consider providing them to the designer of the new
project. The specifications can then be modified as
needed rather than starting from the beginning.
Existing plans. During the scoping phase of a Remedial
Investigation, project planning deliverables include a
Health and Safety Plan, a Quality Assurance Project
Plan, and a Community Relations Plan. Reuse these
plans, as they may provide the basis for the doing the
same types of plans required for remedial design and
possibly the remedial action with little modification.
Project continuity. For a Fund-lead project, time is
saved in the transition from the ROD to remedial design
if the same party, i.e., ARCS contractor, does both the
RI/FS and the design. This assumes the contractor is
qualified, has the available resources for the work,
government regulations do not prohibit such work
distribution, and there is no real or apparent conflict
of interest. The benefits are that the EPA already has
a working relationship with the firm, personnel are
familiar with the project, and the firm has an
established project file containing relevant documents
and information.
Site access. When agreements for RI/FS site access are
developed, structure them to also allow for access
during remedial design and possibly remedial action
activities. Access and real estate concerns can be
very time consuming and complicated. If these issues
can be addressed in a comprehensive manner early in the
project, they will pay significant time dividends later
on.
Value engineering. If a value engineering study is
required, schedule to keep it off the design critical
path. The only potential time impact from such a study
should be caused by a design change, not from the value
engineering process itself.
Parallel design reviews. Schedule all design reviews
in parallel with continuing design work so they are not
on the critical path. Do all reviews simultaneously to
expedite the resolution of recommendations.
Early initiation of remedial action. Prepare remedial
action work assignments before completing the remedial
design. The first few weeks of a remedial action work
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assignment are spent doing activities (i.e., preparing
the remedial action work plan and collecting existing
site information) that are not dependent on a completed
remedial design. When the design is completed and
approved, the procurement process can begin without
delay.
Long-lead equipment. Identify in advance any equipment
that requires a significant amount of time to procure.
Order in advance, if possible, to ensure that the item
does not affect the critical path for the remedial
action.
Fast-track construction/staging. Many large projects
can be divided into separate stages of construction.
This is generally accomplished by letting each stage of
work out for construction as soon as the design effort
on that particular stage of work has been completed.
This approach has the advantage that the project will
be started and completed sooner than would be possible
if it were necessary to wait until all design work had
been completed. However, when multiple contracting
efforts are underway simultaneously, more coordination
and administrative oversight is required.
4.4 SUGGESTIONS TO IMPLEMENT FAST-TRACKING
Fast-tracking is a useful method to expedite a project or a
remedial work element. The following suggestions may be helpful
to the RPM when devising a fast-tracking strategy:
Develop a strategy. Make a flow diagram which
illustrates the tasks, durations, and precedence for
the elements required by the project. A Gantt Chart is
a simple example of such a diagram. Computer software
is available which is simple to use, incorporates the
use of classic scheduling techniques and concepts,
provides various report features, and integrates
graphic elements. Use the flow diagram as a project
road map which can be kept current by adding and
deleting elements as they are identified. This map
will identify the critical path of the project and help
ensure that non-critical steps do not become critical.
Communicate. Communications are crucial because fast-
tracking requires numerous concurrent activities which
will be occurring with parallel and concurrent review
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steps. Thus, expedited schedules will afford fewer
defined stop-and-check points. Regular project
communications (meetings, reports, and verbal) among
appropriate decision makers or their representatives
are necessary to eliminate false starts or misdirected
activities.
Target areas to fast-track. The areas most conducive
to fast-tracking are the pre-design and design steps.
During this time, most of the activities can be
expedited. All can become critical if ineffectively
managed (especially treatability studies, field data
acquisition, EPA reviews, permits, and real estate).
On the other hand, typical remedial action activities
are less flexible because these activities may be
constrained by procurement and contracting requirements
discussed in Chapters 5 and 6.
Identification of tasks. Identify all the tasks of a
project that need to be fast-tracked. An overlooked
task can become critical and delay or halt the project.
Evaluate approach changes. When potential shortcuts in
the remedial design or remedial action process are
identified, weigh them prudently. Sometimes these
shortcuts may have a hidden agenda. Eliminating or
circumventing a step during design may significantly
delay the project during remedial action.
The fast-track techniques described in this chapter can
significantly expedite the remedial design and remedial action of
a project. In many cases they are easy to implement and can be
applied to all projects.
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CHAPTER 5 CONTRACTS AND SPECIFICATIONS
5.1 CONTRACT TYPES
The enormous scale and complexity of procurement has
necessitated the development of a wide variety of contract types.
The appropriate contract type to use is based upon a project
specific determination during the development of the RMS. The
term "contract type" has several different connotations. Here it
is used to indicate the methods of pricing arrangements, of which
there are two primary types, fixed-price contracts and cost-
reimbursement contracts.
5.1.1 FIXED-PRICE TYPE CONTRACTS
Fixed-price (unit price, lump sum, or a combination of the
two) type contracts provide for a firm price for the supplies,
services, equipment, or construction being acquired. In fixed-
price type contracts, the total contract price is adjusted only
when required by a supplemental agreement to the contract.
A lump sum (firm fixed-price) contract is an agreement to
pay the contractor a specified price in return for certain
specified performance. The price paid is not subject to
adjustment due to actual costs incurred within the scope of the
contract. The contractor's profit or loss is related entirely to
his ability to control costs. This type of contract places the
maximum risk and cost responsibility upon the contractor, but
also provides the contractor opportunity for increased profits.
Because the contractor's costs incurred are not a factor in
determining compensation under the contract, the administrative
costs to both the contractor and the contracting party are kept
to a minimum.
The lump sum (firm fixed-price) type contract is used when
detailed specifications are prepared and whenever fair and
reasonable prices can be established at the outset. This type of
contract is especially suited to the acquisition of supplies,
services and construction when realistic cost estimates can be
made. If, however, detailed specifications are not prepared,
the use of a lump sum (firm fixed-price) contract is not
appropriate. The reason is that most contractors would place a
significant contingency factor in their contract price to cover
fluctuations in labor or material costs, or to protect themselves
from their inability to accurately estimate the costs.
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In a unit price contract, the quantity required is
indeterminate, but a reasonable estimate is known, and definite
specifications are available for the units to be purchased. The
selection of the contractor is based on his price for the
estimated quantities, and payments are made based on actual
quantities purchased. That is, the actual sum to be paid is the
total determined by the quantity of work actually performed
calculated from the unit price agreed to in the offer. The
burden is on the contracting party to ensure that the estimated
quantities are a reasonably accurate representation of the actual
anticipated needs in light of relevant factors and past
experience. The estimated quantities should offer a reasonable
probability that award to the lowest offerer will, in fact,
result in the lowest ultimate cost to the contracting party.
5.1.2 COST-REIMBURSEMENT TYPE CONTRACTS
The cost-reimbursement type contract provides for payment to
the contractor of all (or sometimes a portion of) his allowable,
allocable, eligible, and reasonable costs. In addition to costs,
most cost-reimbursement contracts also provide for the payment of
a fee (profit) to the contractor. Cost-reimbursement contracts
establish an estimate of total cost for the purpose of obligating
funds and establishing a cost ceiling.
Cost-reimbursement type contracts are suitable for use when
the nature and complexity of the procurement is such that the
costs of performance cannot be estimated with the accuracy
necessary for a fixed-price contract (i.e. detailed plans and
specifications cannot be prepared).
5.1.2.1 INCENTIVE TYPE CONTRACTS
Incentive contracts are designed to harness the profit
motive to stimulate the contractor to perform at a lower cost, to
furnish a better product or service, or to cut down lead time in
delivery dates. The goal when utilizing incentive contracts is
to motivate contractors to strive for excellence throughout
contract performance. Incentive contracts fall into two
categories: those where the quality and efficiency of contractor
performance are determined on an objective basis (by formula) and
those where the quality and efficiency of contractor performance
are determined in a subjective manner pursuant to an evaluation
plan. The fixed-price incentive contract and the cost-plus-
incentive-fee contract are examples in the objective category,
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while the cost-plus-award-fee contract (such as ARCS) is the main
type in the subjective category.
5.1.2.2 TIME AND MATERIALS TYPE CONTRACTS
The time and materials contract (such as ERCS) provides for
the acquisition of supplies, services, equipment, and
construction on the basis of direct labor hours at specified
hourly rates and materials at cost. It is used when it is not
possible at the time of placing the contract to estimate the
extent or duration of the work or to anticipate costs with any
substantial accuracy. This type of contract places a significant
management burden on the contracting party.
5.2 SPECIFICATIONS
Specifications are included in the contract documents and
contain a description of the technical requirements to be met and
the criteria for determining whether these requirements are met.
The description should contain the essential physical
characteristics and functions required to meet the minimum needs
of the contracting party, not the maximum desired. Also, the
manner in which the needs are specified must achieve full and
open competition with due regard to the nature of the supplies,
services, equipment, or construction to be procured.
All specifications must be clear, complete and definite as
well as not be unduly restrictive. Although specifications are
restrictive by their very nature, to avoid being unduly
restrictive, they must be reasonable and necessary to meet the
actual needs of the contracting party. Also, specifications must
include all significant factors (including price) which the
contracting party expects to consider in evaluating sealed bids
or competitive proposals and the relative importance assigned to
each of these factors.
The types of specifications include performance
(functional), design (detailed), and brand name or equal. The
performance specification is preferred and tends to be more
easily and quickly prepared. It permits a variety of products or
services to qualify and contains the range of acceptable
characteristics or the minimum acceptable standards. Performance
specifications can sometimes result in the use of new
technologies.
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Using performance (functional) specifications is neither a
panacea compared to design specifications, nor free from
considerable effort to draft or evaluate. Bonding, insurance,
warranties, guarantees, and cost escalation risks may constitute
impediments to the use of performance specifications. Potential
contractors interpret the specifications, and they provide a
variety of proposals to satisfy the needs of the contracting
party. More often than not, performance specifications rather
than design specifications are used in negotiated procurement
because of the flexibility during negotiations.
The design or detailed specification contains a complete and
exact description of what is required. A limitation of design
specifications is that the contracting party implies a warranty
that if the contractor follows the specifications, the contractor
is not responsible for failure of the final product.
The least acceptable manner to identify the requirements of
the contracting party is by use of a brand name or equal
specification. This specification should only be used when it is
impractical or uneconomical to make a clear and accurate
description of the technical requirements. All known brands that
meet the required need should be cited. Also, the specifications
should list the essential characteristics, oriented to the
minimum needs of the contracting party, which will be used to
objectively evaluate the equality to the named brand(s).
5.3 NATURE OF THE CONTRACT
The EPA defines remedial action to mean those actions
consistent with the permanent remedy taken in the event of a
release or threatened release of a hazardous substance into the
environment, to prevent or minimize the release of hazardous
substances so that they do not migrate to cause substantial
danger to present or future public health or welfare or the
environment. Remedial action can include activities at the
location of the release such as storage, confinement,
neutralization, cleanup of released hazardous substances and
associated contaminated materials, recycling or reuse, diversion,
destruction, segregation of reactive wastes, dredging or
excavations, repair or replacement of leaking containers,
collection of leachate and runoff, on-site treatment or
incineration, provision of alternative water supplies, and any
monitoring reasonably required to assure that such actions
protect the public health and welfare and the environment.
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It should be noted that not all of the activities
contemplated as "remedial actions" are considered the performance
of "construction." Some can be considered as the performance of
"services."
5.3.1 CONSTRUCTION
The Department of Labor (DOL) defines "construction" to mean
construction, alteration, or repair (including dredging,
excavating, and painting) of buildings, structures, or other real
property. For purposes of this definition, the term "buildings,
structures, or other real property" include improvements of all
types, such as bridges, dams, plants, highways, parkways,
streets, subways, tunnels, sewers, mains, power lines,
cemeteries, pumping stations, railways, airport facilities,
terminals, docks, piers, wharves, ways, lighthouses, buoys,
jetties, breakwaters, levees, canals, and channels.
CERCLA requires that all laborers and mechanics employed by
contractors or subcontractors in the performance of construction,
alteration, or repair work funded in whole or in part under
Section 104 of CERCLA be paid wages at rates not less than those
prevailing on projects of a character similar in the locality as
determined by the DOL in accordance with the Davis-Bacon Act
(DBA). The DBA provides that Federal contracts and subcontracts
for the construction, alteration, or repair (including painting
and decorating) of public buildings or public works shall contain
provisions regarding the wages to be paid and how they are paid.
The DBA is also applicable to construction, alteration, or repair
done under a Superfund Cooperative Agreement.
The Federal Acquisition Regulation and EPA's regulations
governing Superfund Cooperative Agreements (41 CFR 31.36) require
performance and payment bonds for any construction contract
exceeding $25,000. This requirement may be waived by the Federal
contracting officer or EPA's award official provided the Federal
government's financial interest is adequately protected.
Generally, the requirement for a performance and payment bond is
waived for cost-reimbursement type construction contracts.
5.3.2 SERVICE
A service contract directly engages the time and effort of a
contractor whose primary purpose is to perform an identifiable
task. It can cover services performed by either professional or
non-professional personnel whether on an individual or
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organizational basis. Some of the areas in which service
contracts are found include the following:
Maintenance, overhaul, repair, servicing,
rehabilitation, salvage, modernization, or modification
of supplies, systems, or equipment
Routine recurring maintenance of real property
Construction or repair of personal property
Consulting services
Engineering and technical services
Operation of government-owned equipment, facilities,
and systems
Transportation and related services
Research and development
Chemical testing and analysis
Data collection, processing, and analysis services
Exploratory drilling (other than as part of
construction)
Geological field surveys and testing
Laboratory analysis services
Landscaping (other than as part of construction)
Surveying and mapping services (not directly related to
construction)
Transportation of property or personnel
Solid waste removal
Tree planting and thinning, and clearing of timber or
brush
Dismantling, demolition, or removal of improvements (if
not followed by construction).
Generally, performance and payment bonds are not required
for service contracts. However, performance bonds may be
required when necessary to protect the Government's interest.
5.3.3 APPLICATION
The distinction between construction contracts and service
contracts for remedial action can be quite difficult to discern
when determining whether the DBA applies. The DOL has ruled that
any contract with $2,000 or more of construction-type work is
covered; however, the General Accounting Office (GAO) looks to
the contract as a whole and has sustained decisions of the
contracting party not to apply the DBA.
A contract for clearing timber or brush from land or for the
demolition or dismantling of buildings or other structures
located thereon may be a contract for construction activity
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subject to the DBA, where it appears that the clearing of the
site is to be followed by the construction of a public building
or public work at the same site. If, however, no further
construction activity at the site is contemplated, the DBA is
considered not applicable to such clearing, demolition, or
dismantling work.
Instances may arise in which, for the convenience of the
contracting party, instead of awarding separate remedial action
contracts for construction work subject to the DBA and for
services of a different type to be performed by service
employees, the contract may include separate specifications for
each type of work in a single contract calling for the
performance of both types of work. For example, offers may be
solicited for the construction of a pump and treat system or an
incinerator, as well as its operation and maintenance. The
installation is considered to be construction covered by the DBA;
whereas, operation and maintenance is a service and not covered
by the DBA.
Also, the provisions of the DBA would apply to parts of a
remedial action contract involving both construction and service
work although the contract is principally for services. The DBA
would be applicable to the construction work in such a hybrid
contract where:
The remedial action contract contains specific
requirements for substantial amounts of construction,
reconstruction, alteration, or repair work, or it is
ascertainable that a substantial amount of construction
work will be necessary for the performance of the
contract. (The word "substantial" relates to the type
and quantity of construction work to be performed and
not merely to the total value of construction work as
compared to the total value of the contract).
The construction work is physically or functionally
separate from, and as a practical matter is capable of
being performed on a segregated basis from, the other
work called for by the contract.
Selecting the appropriate contract and specifications go
hand in hand with determining the procurement strategy for the
project, which is discussed in the following chapter.
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CHAPTER 6 PROCUREMENT STRATEGIES
6.1 INTRODUCTION
The strategy for expediting procurement methods is to match
the appropriate procurement method to the type of work being
procured. For example, the fastest procurement is when sealed
bidding is used to procure work for which standard specifications
are available. The time required to put together the invitation
for bids is short because it simply involves joining standard
contract documents to standard specifications along with a
description of the work. Standard specifications are available
for a broad variety of work including such items as water mains,
wells, pumping systems, some treatment processes, and various
types of earth work. If these items are part of a project, then
the expediting strategy should include the possibility of
separating them out and procuring them through sealed bidding.
On the other hand, sealed bidding can be a slow method of
procurement if used for complex work for which standard
specifications do not exist. The slowness is caused by the need
to develop detailed design specifications in-house. Under these
circumstances, it may be faster to use the negotiated procurement
method with performance specifications, which require less
technical detail. The contractor then submits within his
proposal a plan for the development of detailed specifications
after the award of the contract. Therefore, the award of the
contract for complex work will usually occur sooner if the
negotiated procurement method is used. Another procurement
method discussed below, two step sealed bidding, is similar to
negotiated in this respect; that is, it is suitable for complex
work for which no standard specifications exist.
Considering the above discussion, one time-saving
procurement method is to look for significant work elements which
can be procured early by way of sealed bidding with standard
specifications. This can done be at the same time that requests
for proposals (RFPs) are being developed for the more complex
portions of the project. In this manner, the appropriate
procurement method is matched to specific type of work with the
result that each work element is awarded in the shortest
possible time. This assumes that the various elements of work
are large enough to warrant separate procurement actions, and
that construction schedule issues are taken into consideration.
The following is a description of the essential features of each
solicitation method.
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6.2 SEALED BIDDING
The sealed bidding procurement method provides an
opportunity for all qualified contractors to compete for the work
on the basis of price. The work must be described in detail so
that bidders fully understand what is required of them for the
price of their bids since the bids become the basis of a fixed-
price contract. The description must also be clear to ensure
that all bidders understand the work and are bidding on an equal
basis. For these reasons, sealed bidding is done on the basis of
design specifications and detailed plans.
6.2.1 PRESOLICITATION
Plans and specifications are completed before the work is
advertised. They are included in the bid package in the
invitation for bids (IFB) along with the terms and conditions of
performance. The length of time required to prepare the complete
bid package depends on the nature of the work. For simple
projects, such as excavation or water main installation,
standard specifications can be used thereby decreasing the effort
and time to complete the bid package. Detailed plans and
specifications for more complex technologies may require
considerable effort and time to complete before sealed bids can
be solicited.
6.2.2 SOLICITATION AND RECEIPT OF BIDS
The IFB is advertised in construction journals and the
Commerce Business Daily (CBD). The bidders submit their bids in
sealed envelopes at a prescribed location no later than a
specified date and time set for a public bid opening. At that
time, the bids are opened and read. The apparent low bid is
announced.
6.2.3 BID EVALUATION
The low bid is evaluated to ensure that it is "responsive",
that is, that it complies with all the terms and conditions of
the IFB and contains no irregularities in the cost and price
information. Next, the "responsibility" of the bidder is
evaluated. Responsibility is the bidder's ability to accomplish
the work with regard to financial resources, bonding, facilities
and equipment, record of performance, and ability to comply with
the required schedule.
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6.2.4 AWARD
The contract will be awarded to the lowest "responsive and
responsible" bidder. If the contractor fails to enter into a
contact at that point, then he forfeits any bid guarantee, and
the agency will award to the next lowest qualified bidder. After
contract award, a notice to proceed is issued with dates set for
the period of performance. From this point on, the contractor is
responsible to perform the work as described in the contract.
Any changes in the work can be accomplished only by modifying the
contract through supplemental agreements or change orders while
the work is in progress.
6.2.5 ADVANTAGES OF SEALED BIDDING
One advantage to the contracting party in sealed bidding is
that the method encourages price competition. All bidders are
placed on an equal basis through the bidding process.
Additionally, sealed bidding shifts the risk involved in the
construction of the project towards the construction contractor.
The contractor's bid is his promise to accomplish the required
work for a specific dollar amount. Since the contracting party
has taken the time and effort up front to describe the work in
great detail, the contractor knows precisely what is required of
him when placing the bid. Any changes will be handled through
change orders, but the work bid on will have to be accomplished
as bid. The contractor is allowed relief, however, if unusual
site conditions are encountered or the work is delayed by the
contracting party.
Sealed bidding is the preferred method of solicitation in
Superfund projects where the work is relatively easy to define.
The installation of drinking water wells and water mains will
most often be by sealed bids. Excavation and hauling projects
will also be considered for sealed bid solicitation. More
technologically complex work, such as thermal destruction
projects, will more likely be solicited through negotiated
procurement.
6.3 NEGOTIATED PROCUREMENT
Negotiated procurement differs from sealed bidding in each
phase of the solicitation. In the initial phase, the contracting
party is not required to develop detailed design plans and
specifications. Performance specifications are more common to
negotiated procurement. The basis of the evaluation is a
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combination of technical merit and cost, rather than cost alone.
Some of the risk of performance of the contract shifts back to
the contracting party since the detailed plans and
specifications which are developed by the contractor are
approved as technically acceptable by the contracting party
before award. The following is a description of some of the
high points of negotiated procurement.
6.3.1 PRESOLICITATION
Unlike sealed bidding, where the contracting party will put
a great deal of effort up front to develop detailed design plans
and specifications, for negotiated procurement, the major effort
is in the development of performance specifications and a source
selection plan.
Performance specifications state the requirements of the
project in terms of what must be accomplished and to what level
or standard. The offerers who wish to compete to do the work
will develop in their proposals the methods, materials, detailed
plans, and specifications required to meet the performance
specifications.
6.3.2 SOLICITATION AND RECEIPT OF PROPOSALS
An RFP is advertised in the appropriate journals and the
CBD. The RFP contains the performance specifications and a
description of the evaluation criteria. The relative importance
of the technical criteria and cost will be stated, as will the
basis for award.
6.3.3 EVALUATION OF PROPOSALS
The evaluation involves an assessment of the cost, technical
acceptability of the proposal, and the ability of the firm to
accomplish the work. The cost and technical evaluations are done
separately then combined to come up with a total value score.
Proposals are then categorized as, (1) technically acceptable,
(2) susceptible to being made acceptable, or (3) unacceptable. A
competitive range is determined which includes all proposals that
stand a reasonable chance of being successful. Theoretically, it
is possible to award a contract without discussions on the basis
of the initial proposals if technically acceptable proposals are
received. For large projects, however, the evaluation is usually
just the first step in the process.
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6.3.4 DISCUSSIONS
After the initial evaluation of proposals, discussions are
held with contractors in the competitive range. The goal of the
discussions is to raise as many proposals as possible into the
acceptable category and thereby ensure maximum effective
competition. During discussions offerers are advised of
deficiencies, uncertainties, and suspected mistakes in their
proposals so they have an opportunity to submit the necessary
revisions. These discussions can be at arms length, simply
informing the firms of the deficiencies and allowing them to
revise as best they can, or they can be of a bargaining nature
over the terms of the final offer. In no case, however, should
discussions involve "technical leveling" of proposals by
repeatedly pointing out weaknesses, or "technical transfusion" by
disclosing information between competing proposals. Neither are
any "auctioning" techniques allowed such as indicating a price
that must be met to continue to be considered, or indicating the
relative standings of the various offerers.
6.3.5 BEST AND FINAL OFFERS
After the completion of all discussions, the contracting
party is required to solicit best and final offers (BAFOs) from
acceptable offerers in the competitive range. These BAFOs are
submitted in such a manner that no further discussions will be
required. Technically, the discussions could be reopened after
BAFOs, but this is highly undesirable since having numerous
BAFOs leads to technical transfusion. Final scores are
determined on the basis of BAFOs.
6.3.6 SOURCE SELECTION AND AWARD
Once the final scores are calculated, the proposal with the
greatest value score (GVS) regarding cost and technical merit as
described in the RFP can be selected for award of a contract.
The source selection official, however, is not strictly bound by
the point scores or recommendations of the selection board. It
is possible to take into consideration the significant difference
in the technical merit and the cost of proposals of different
scores. This type of analysis is called a "technical tradeoff
analysis," since technical merit is traded off against
differences in cost and scores. Any such tradeoff analysis must
be supported by the established evaluation criteria in the RFP.
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6.3.7 ADVANTAGES OF NEGOTIATED PROCUREMENT
Negotiated procurement makes available to the contracting
party the technical expertise of the industry in developing the
approach to accomplishing the work. It relieves the contracting
party of the need to develop detailed plans and specifications
for complex technologies for which in-house staff may not be
available. It also allows for a greater weight to be placed on
the technical aspects of the projects. This approach is useful
in the solicitation of treatment processes, new technologies, or
where there are a variety of acceptable solutions to a particular
problem. The disadvantage of negotiated procurement is that the
procurement action can become long and involved and, therefore,
should not be used for simple elements of work.
6.4 TWO STEP SEALED BIDDING
Two step sealed bidding (TSSB) is a procurement method for
which offerers first submit proposals without cost information in
response to a request for technical proposals (RFTP), then submit
sealed bids on their own proposals if those proposals have been
found acceptable in accordance with the RFTP. This method of
procurement attempts to combine the advantages of both
competitive negotiation and sealed bidding, but has attributes
that differ from each. The objective of TSSB is to encourage
contractors to submit proposals for alternative technologies and
products in step one. The proposals are then evaluated in
accordance with established technical criteria. Those proposals
which are determined to be acceptable can then be used as the
basis of a sealed bid in step two. The offerer bids on his own
proposal. The Government selects on the basis of low bid,
thereby gaining the advantage of price competition.
6.4.1 TSSB STEP ONE
The objective in step one is to determine the compliance of
the proposals with the established criteria of the RFTP. This is
a go or no go situation rather than a competitive range
determination. All proposals are categorized as; (1) acceptable,
(2) reasonably susceptible of being made acceptable, or (3)
unacceptable.
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6.4.1.1 UNACCEPTABLE PROPOSALS
Proposals must comply with the essential requirements of the
specifications, but not all the details of the specifications.
The difference between a detail and an essential requirement is
not always apparent. This provides great discretion to the CO in
determining whether or not a proposal is acceptable. This is a
characteristic of TSSB that can easily result in protests, a
possible source of considerable delay.
6.4.1.2 PROPOSALS WHICH ARE ACCEPTABLE, OR SUSCEPTIBLE TO BEING
MADE ACCEPTABLE
Regarding acceptable proposals and proposals that can be
made acceptable, there is no duty to initiate or continue
discussions or clarifications. The CO may proceed to step two
without discussions if there are two or more proposals that are
acceptable as submitted. However, the receipt of two or more
proposals which are acceptable as submitted does not prevent the
CO from deciding to hold discussions with other offerers who have
proposals that are susceptible to being made acceptable.
Generally, it is in the CO's interest to hold discussions to
ensure the greatest number of bids in the second step.
Additionally, firms excluded from submitting a bid in step two
after having expended considerable time and money in responding
to the RFTP will be inclined to protest.
6.4.2 STEP TWO
In general, step two is conducted as a sealed bidding
procurement. There are some differences, however, between TSSB
step two and regular sealed bidding which need to be considered
as follows:
The bidding is limited to those who have successfully
completed step one. The bidders are required to comply
with the specifications and the technical proposal as
developed in step one.
The bidder must comply with the RFTP and also meet any
additional requirements of the IFB, such as price,
schedules, delivery requirements, and bid bond. There
may, however, be a "presumption of responsiveness" that
limits the CO's ability to disqualify bids. This
presumption results from the time, effort, and money
required to participate in TSSB. The Comptroller
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General has allowed bids to stand as responsive in TSSB
when these same bids would have been eliminated in
regular sealed bidding.
Due to the need for the CO to safeguard step one
proposals against disclosure to unauthorized
individuals in accordance with FAR 14.503-l(c),
competitors have no way to determine whether or not the
proposal accepted differs from the RFTP. This violates
the public opening concept of sealed bidding as
required in FAR 14.404-4. Normally, a bid is
nonresponsive if it includes restrictions prohibiting
competitors from knowing the essential elements of the
products offered with regards to quantity, price, and
delivery terms.
6.4.3 ADVANTAGES OF TWO STEP SEALED BIDDING
TSSB has advantages similar to negotiated procurement in
that it allows the owner to accept proposals for alternative
technologies and products; however, it retains in the last step
the cost competition of a sealed bidding environment. It should
be kept in mind that the use of TSSB requires care to ensure that
offerers understand the ways in which it differs from
conventional methods to avoid unmerited protests. Also, COs and
owners need to understand that in exchange for the increased cost
competition of the sealed bidding, they surrender the prerogative
to consider in the basis of award the relative technical merit
between differing proposals. The disadvantage of TSSB is similar
to negotiated procurement in that it should not be used for
simple or standard work.
6.5 SCHEDULE IMPACTS OF PROCUREMENT STRATEGIES
The methods of procurement discussed above each have
different impacts on remedial design and remedial construction
schedule. In sealed bidding, the major demands in terms of time
and resources occur during the design phase. This occurs because
sealed bidding procurement requires the development of detailed
design specifications before bids are invited. Once the detailed
specifications are complete, however, the actual procurement
phase is relatively straightforward and usually shorter than the
negotiated procurement phase.
In negotiated procurement, on the other hand, there is not
the same effort needed during the design phase to develop
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detailed specifications. Instead, the specifications are
performance specifications. The companies that desire to do the
work are required to develop the detailed specifications as part
of their proposals. This shifts a major technical effort to the
industry and can lead to less time and effort being expended
before the procurement phase. The procurement phase for
negotiated procurement, however, tends to be longer than sealed
bidding due the fact that the evaluation process is more
involved, and more than one round of negotiations is usually
required before the BAFOs can be made.
Two step sealed bidding has schedule characteristics similar
to negotiated procurement because performance specifications are
used and the evaluation is more involved than sealed bidding.
Also, there can be several rounds of discussions before sealed
bids are requested.
It is usually not practicable to compare sealed bidding
schedules to negotiated procurement schedules because the methods
lend themselves to different types of work. There may be
projects, however, where the choice is less well defined. For
these, the selection of one method over the other can lead to
time savings in the early stages of the schedule.
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CHAPTER 7 PHASING/FAST-TRACKING ANALYSIS
7.1 INTRODUCTION
This chapter serves as a brief illustration of the
relationship of phasing and fast-tracking considerations that
might be encountered during the planning of a project. It
presents examples of generic flow chart diagrams for the decision
making process associated with phasing and fast-tracking. These
diagrams are not intended to be complete and exhaustive
representations of the analytical process and all the
considerations involved in expediting an RD/RA project. They
are, however, presented to demonstrate the nature of the decision
making process associated with such an analysis and the
interrelationship of the two techniques of phasing and fast-
tracking.
The flow chart diagrams are presented to demonstrate the
relationship of various considerations that might be encountered
during project planning. It is quite possible that the order of
actual considerations may differ from those presented in the
figures. It is also possible and likely that any given project
might present specific opportunities for schedule optimization
that are not presented here. The charts depict a general flow
process from top to bottom and are not intended to depict the
relative duration of process pieces by scale representation. For
individual projects, some pieces of the analysis may require
intricate technical assessment. Others may be so obvious that
decisions are evident after brief contemplation and can be
assessed concurrently with other considerations.
7.2 PHASING ANALYSIS
The process depicted in Figure 7-1 represents the type of
considerations generally encountered during phasing analysis.
Comments regarding the process correspond to the line reference
numbers on the figure.
1. Segregate the project into discrete elements that can
be defined to an extent that permits implementation on
separate tracks.
2. Identify any timing relationships that may exist
between individual elements. For example, does an
access road need to be completed before additional
field activities can be started? After the
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FIGURE 7-1
PHASING ANALYSIS
©
©
©
Identify Discrete
Project Elements
Sequencing
Requirements
Identify &
Optimize
Phase
Based on Physica
haracteristic
Information
Limited
Phase & Pursue
Fast-Tracking
Hazardous/
Non-Hazardous
gregatiq
Phase & Pursue
Fast-Tracking
Fast-Track
as Approach
Phase Based on
Technology
Information
Limited
Phase & Pursue
Fast Tracking
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relationships between the individual elements are
defined in terms of sequence requirements, they should
be analyzed for optimization of implementation. A
critical path method (CPM) analysis is a useful tool
for this purpose.
3. The potential for phasing based on physical criteria
should be considered. Do specific physical
characteristics of a project element increase its
potential for successful segregation from other project
elements and acceleration of the schedule for
implementation? For example, consider source control
versus ground water treatment, or perhaps treatment of
a physically separated mound of contaminated material
located on site. A favorable finding with respect to
this criterion may result in an opportunity to expedite
some aspect of the project.
4. If the analysis is favorable with respect to phasing
based on a given criterion, the next consideration
should be to determine the information requirements
that are prerequisite to implementing the phasing.
Ideally, all information and data requirements for
RD/RA would be a product of the RI/FS. This may not be
the case. If the information needed with regard to the
phasing scheme would result in a large time schedule
demand, it may negate the benefits of phasing based on
the considered criteria. For example, if addressing
the separate mound of contaminated material requires
extensive and time consuming characterization, it
might not warrant segregation for phasing purposes. If
additional requirements preclude the practicality of
phasing, conventional methods should be followed for
that project element.
5. If a favorable assessment is rendered regarding phasing
criteria and considerations, fast-tracking analysis
should then be applied. See section 7.3.
6. Frequently, aspects of a project that address hazardous
material involve more complex and time demanding
efforts to address technical information or regulatory
requirements. For this reason, it is generally
advisable to segregate project elements that deal with
non-hazardous materials. This distinction may present
itself as a straightforward consideration for phasing
potential.
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7. If a favorable assessment is rendered regarding phasing
criteria and considerations, fast-tracking analysis
should then be applied. See section 7.3.
8. The technology employed within a given project element
may also be a useful criterion for assessing phasing
potential. In the simplest example, conventional
technology such as earth moving might present a more
easily implemented procedure than, say, some form of
in situ treatment. For a complex site, it may come
down to assessing the relative schedule demands of
employing various technologies.
9. If the analysis is favorable with respect to phasing
based on a given criterion, the next consideration
should be the information requirements that are
prerequisite to implementing the phasing. Ideally all
information and data requirements for RD/RA would be a
product of the RI/FS. This may not be the case. If
the information needed with regard to the phasing
scheme would result in a large time schedule demand, it
may negate the benefits of phasing based on the
considered criteria.
10. If a favorable assessment is rendered regarding phasing
criteria and considerations, fast-tracking analysis
should then be applied. See section 7.3.
7.3 FAST-TRACKING ANALYSIS
The process depicted in Figure 7-2 is intended to present
the type of considerations generally encountered during fast-
tracking analysis. Fast-tracking should be considered for a
project up front. This presentation represents the process as a
subset of phasing considerations. It should be pointed out that
even if a project does not lend itself readily to phasing, fast-
tracking analysis should still be considered. For purposes of
this presentation, assume that the fast-tracking analysis is for
a phased element of a project. As with the preceding section,
comments regarding the process correspond to the line reference
numbers on the figure.
1. Steps are the discrete activities that, in total,
comprise the implementation of a remedial work element.
Their definition allows a finer level of analysis to be
applied to expediting considerations.
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FIGURE 7-2
FAST TRACKING ANALYSIS
(Assumes Prerequisite Phasing Analysis)
Identify Discrete Steps of
Project Elements
Assess Schedule and Environmental
Implications
Stnd/
Existing Specs
Available
Maximize
Use
Potential for
Step Eliminatio
Identify &
Eliminate
Sequencin
equireme
Identify, Assess
& Optimize
Identify &
Address
Real Estate
Issues
VE
Required
Schedule off
Critical Path
Long Lead
nst Equipme
Identify & Expedite
curement
Employ
Des/Const
tagin
Define Approach
Procurement
Procurement
Construction
See Procurement Flow Chart
Figure7-3
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2. Inherent in the process of expediting a project is the
acceptance that some form of potential cost growth or
schedule slips may occur. Protection of environmental
values should be kept in mind during all decision-
making processes within the expediting process.
3. Any steps within the project element that can be
eliminated should be. A specific area which might
present a large potential for time savings is design.
Maximum use should be made of standard or existing
design specifications where applicable.
4. Sequencing requirements as they apply to the steps
within an element should be identified and factored
into the optimization plan.
5. Real estate issues, such as access and acquisition
requirements, must be identified early in the process
because of their potential to delay the project
schedule. They can essentially be considered as a
specialized sequencing constraint.
6. If the results of a value engineering (VE) screen are
positive, steps should be taken as early as possible to
see that the VE analysis is scheduled to have minimum
impact on the project schedule.
7. Any equipment requirements that present long-lead or
special procurement problems should be identified as
early as possible in the process so that attainment
will not adversely impact the schedule.
8. The potential for design/construction staging should be
assessed and, if appropriate, optimally employed. (See
Chapter 4, section 4.3)
The following comments refer to Figure 7-3 and its relation
to preliminary RD/RA procurement considerations:
1. This figure assumes previous phasing and fast-tracking
analysis.
2. When the procurement stage is reached for RD/RA, the
decision must be made whether to make use of an
existing contract mechanism or procurement of a new on
one. The former approach offers a potential for time
savings.
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FIGURE 7-3
PROCUREMENT
0
©
Fast-Track
Analysis
Existing
Contract Mechanism
Select Appropriate
Contract Type
Select Appropriate
Procurement Strategy
Mechanism Is ^x "0
ppropriate & Available
Employ & Proceed
Fast Track
Analysis
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3. While maximum use of existing contract mechanisms may
be desirable, this may not be a viable option in some
cases. These contracts may be subject to capacity or
scope constraints. If this proves to be the case,
schedule requirements should be reconsidered in the
context of a contract mechanism. The advantages and
disadvantages of various contract types and
procurement strategies are presented in Chapters 5 and
6, respectively.
4. Upon consideration of the appropriate factors, the
approach should be chosen and implemented expediently
so that additional fast-track considerations can be
addressed.
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