220387501

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     5 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                      WASHINGTON, D.C. 20460


                         FEB I 2 1988
MEMORANDUM
                                                        OFFICE OF
                                                      ADMINISTRATION
                                                      AND RESOURCES
                                                      MANAGEMENT
SUBJECT:  Guide  for  Preparing  and Reviewing Superfund
          Cooperative  Agreements

FROM:     tfarvey^GTtPipP^t^.p
          Director
          Grants Administration Division (PM-216F)

          Paul Nadeau  (.^^
          Acting Director^*
          Hazardous  Site  Control Division  (WH-548E)

TO:       Assistant  Regional Administrators
            for  Planning  and Management
          Regions II,  III,  IV,  VI, VII, VIII, IX

          Planning and Management Division Directors
          Regions I  &  V

          Management Division  Director
          Region X

          Waste  Management  Division Directors
          Regions I  -  X
     We are providing  for  your  use and that of your staff  the
recently completed  "Guide  for  Preparing and Reviewing
Superfund Cooperative  Agreements".  The Guide was developed
as a joint effort between  our  Divisions with considerable
input from other affected  offices.  It is to be used to more
clearly assign  responsibilities and contacts in the process
and is the most current  and accurate guidance on the
inclusion of  special conditions.

     In order to assure  the copies in your respective  Regions
remain current, it  is  important that you notify the Chief,
Grants Policy and Procedures Branch (GPPB), Grants
Administration  Division  of each recipient's name and address.
Several reserved sections  will  be completed in the near
future and policy changes  will  be incorporated as they occur.
     We know you will  find  this to be a useful tool as you
develop and manage  Superfund cooperative agreements.  If  you
have comments  for changes  or enhancements, be sure to provide
                                D!S. Environmental Protection Agency
                                Region V, Library
                                230 South Dearborn Street
                                Chicago, Illinois  60604
those to the Chief, GPPB.
Attachment

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GUIDE FOR PREPARING AND REVIEWING SUPERFUND COOPERATIVE AGREEMENTS
                           Prepared by:
               U.S. Environmental Protection Agency
                  Grants Administration Division
                     Hlth the assistance of:

                       Roy F. Heston,  Inc.
                     955 L'Enfant Plaza, S.H.
                      Hashlngton, D.C. 20024

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                               TABLE OF CONTENTS

Section                                                             Page

INTRODUCTION 	    1

CHAPTER 1:  OVERVIEW OF COOPERATIVE AGREEMENT REVIEW AND
            APPROVAL PROCESS 	    2

     1.1  SUPERFUND MEMORANDUM OF AGREEMENT (SMOA)  	    2

     1.2  SUPERFUND COMPREHENSIVE ACCOMPLISHMENT  PLAN (SCAP)  ...    4

     1.3  PREAPPLICATION/APPLICATION REVIEW PROCESS	    4

CHAPTER 2:  COOPERATIVE AGREEMENT APPLICATION, AWARD AND
            AMENDMENT	    6

     2.1  COOPERATIVE AGREEMENT APPLICATION	    6

          2.1.V    General  Summary Information 	    6
          2.1.2    Project  Approval Information	    6
          2.1.3    Budget Information	    7
          2.1.4    Project  Narrative Statement 	    9
          2.1.5    Assurances	    9
          2.1.6    Attachments	11

     2.2  COOPERATIVE AGREEMENT AWARD	13

     2.3  COOPERATIVE AGREEMENT AMENDMENT	13

     2.4  MULTI-SITE AGREEMENTS	14

     2.5  CORE PROGRAM FUNDING	   17

     2.6  PRE-REMEDIAL COOPERATIVE AGREEMENTS 	   18

     2.7  ENFORCEMENT PROGRAM FUNDING  	   18

     Exhibit 1:  Cooperative Agreement Review and Approval
                   Process  	    3

     Exhibit 2:  Model  Cooperative Agreement Application  	   20

     Exhibit 3:  Model  Cooperative Agreement Award 	    39

     Exhibit 4:  Model  Cooperative Agreement Amendment 	   46

     Exhibit 5:  Model  Multi-Site Cooperative Agreement	51

CHAPTER 3:  SPECIAL MANAGEMENT CONCERNS FOR COOPERATIVE
            AGREEMENTS	52

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                         TABLE OF CONTENTS (Continued)
Section
Page
     3.1  GENERAL ASSISTANCE REQUIREMENTS	52

          3.1.1    Applying for Assistance	52
          3.1.2    Cost Sharing, Payments, and Determining
                     Allowable Costs 	  53
          3.1.3    Recordkeeplng and Reporting 	  53
          3.1.4    Quality Assurance Project Plan	53
          3.1.5    Financial Management and Use of Funds	54
          3.1.6    Property Acquisition and Management 	  54
          3.1.7    Changing the Assistance Agreement 	  56
          3.1.8    Project Audits and Closeout 	  56
          3.1.9    Noncompllance Measures	57
          3.1.10   Exceptions from the Regulations	57
          3.1.11   Dispute Resolution	57

     3.2  PROCUREMENT REGULATIONS	57

          3.2.1    Responsibility for Recipients 	  57
          3.2.2    Contractor Qualifications 	  58
          3.2.3    Code of Conduct	58
          3.2.4    Methods for Procuring Assistance	58
          3.2.5    Promoting Competition 	  59
          3.2.6    Types of Subagreements	60
          3.2.7    Minority/Womens Business Enterprises	61
          3.2.8    Submission of Information 	  61
          3.2.9    Documentation	61
          3.2.10   Specifications	61
          3.2.11   Bonding and Insurance 	  62
          3.2.12   Federal Cost Principles 	  62
          3.2.13   Cost and Price Consideration	62
          3.2.14   Profit	  62
          3.2.15   Model Subagreement Clauses	62

     3.3  OTHER ASSISTANCE PROVISIONS	63

          3.3.1    Debarment and Suspension	63
          3.3.2    Letter-of-Credit Procedures 	  63

     3.4  POST AWARD COOPERATIVE AGREEMENT MANAGEMENT	65

          3.4.1    Post Award Management	65
          3.4.2    Audit/Audit Resolution	65

CHAPTER 4:  PREAPPLICATION AND ADMINISTRATIVE REVIEW CHECKLIST  .  .  66

APPENDIX A: Superfund Activity Code List for
            Cooperative Agreements 	  A-1
                                      11

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                       (FOLD HERE)
 This guide will be updated periodically as new procedures
 are developed and new replacement pages will be added to
 the document.  Receipt of the replacement pages is necessary
 to ensure that all concerned staff are operating in a current
 and consistent manner.  To ensure inclusion on the update
 mailing list, please fill out the form below, fold on the
 dotted lines as indicated, and return to the address provided
 on the reverse side.
Please place my name on the Update Mailing List for the
document Guide to Preparing and Reviewing Superfund
Cooperative Agreements.
NAME

POSITION

EMPLOYER

ADDRESS
                           ill

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Seal here with tape,


      FOLD #2
 Chief, Policy and Procedures Branch
 Grants Administration Division
 (PM-216F)
 U. S. Environmental Protection Agency
 Washington, D.C. 20460
      FOLD #1
         XV

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                                  INTRODUCTION


This  guide  1s   designed  to  provide  an  outline  for .reviewers of  Superfund
Cooperative  Agreements  to follow.   The  technical  review  for adequacy  of the
proposed work. Is the responsibility of the Program staff, while the definition
of   and  review  of   adherence   to  administrative    requirements   1s   the
responsibility  of  the  Grants  Administration  Division  and  the  Assistance
Administration Units  (AAU)  1n the Regions.  The guidance  more clearly defines
respective  roles and  explains the  process  to be  followed  In  reviewing and
awarding a  Cooperative Agreement.   Use  of  this  guide  and  a well-coordinated
Implementation of Regional  Program Office and AAU roles will assure that each
Cooperative  Agreement  Is  consistent  with the Agency's high  standard of fiscal
Integrity.

The paper reflects  two recent changes In the Superfund Cooperative Agreement
process:   (1)  a new  90-day  deadline  for  EPA review  of  these  applications
(mandated by the Superfund  Amendments  and  Reauthor1zat1on  Act); and  (2) the
notion  that  AAU  staff  need  to  become  more  Involved  1n  the  review and
development  of  Superfund Cooperative Agreements.   Interim  guidance  from the
Superfund  Headquarters  Office  suggests  that  Regions  offer "preappllcation
assistance"  to   States  seeking  Cooperative   Agreements,    to   ensure  that
applications  can  be reviewed  and  revised  within  the  90-day  limit.   It  1s
Important that both  Regional  Program Office and AAU  staff be  Involved  In the
preapplication assistance as well  as the application review.

this paper offers AAU staff guidance on how to:

     •    Determine whether  a Cooperative Agreement application
          provides sufficient Information to  make an  accurate
          assessment of the proposed project;

     •    Determine   whether   the  State   assurances   1n   the
          Cooperative   Agreement   application   will   ensure
          successful  completion of the proposed project; and

     •    Identify  additional  State assurances  or  conditions
          that must  be added  to  the application  or  the  award
          document.

The paper consists of four chapters.  Chapter  1 presents  a   brief  overview of
the  Cooperative  Agreement  review and approval  process.  Chapter  2 describes
Cooperative  Agreement applications,  amendments,  and award documents.  Chapter
3 presents  an in-depth  discussion of special  management  concerns that should
be  considered when reviewing  Cooperative Agreement  applications.   Chapter   4
presents a checklist  that Regional Office staff may  use to  guide them through
preappllcation assistance and application review processes.

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  CHAPTER 1: OVERVIEW OF THE COOPERATIVE AGREEMENT REVIEH AND APPROVAL PROCESS


The  process  of developing a  Cooperative  Agreement  between EPA and  a  State,  a
political subdivision thereof,  or  an Indian tribe* actually begins  during two
preappHcation planning phases:  Superfund  Memorandum of Agreement (SMOA), and
Superfund Comprehensive Accomplishments Plan  (SCAP).   Once the final SCAP has
been prepared, a  State  may submit a Cooperative Agreement application  for one
or more  sites  Identified  In  the SCAP.   This  chapter briefly  describes  these
early  planning phases,  then  discusses  the Cooperative Agreement application
submlttal, review,  and  approval  process.   (See  Exhibit  1)    Throughout  this
discussion,  the  appropriate   roles  of   the  Superfund  Program  Office  and
Assistance Administration Units staff are Identified.


1.1 SUPERFUND MEMORANDUM OF AGREEMENT (SMOA)

The  revised   National  Contingency  Plan  (40  CFR   300)  creates,   an  EPA/State
Superfund  Memorandum of  Agreement  (SMOA)   to describe  State •Involvement  1n
Superfund response activities  and to Improve EPA/State  partnerships.   The SMOA
Is a written document executed  by  an  EPA Regional Administrator  and  the head
of  a  State  agency.   Entering  into  SMOAs  is  not  mandatory  but  strongly
encouraged.  The  SMOA Introduces  the  concept of "lead"  and  "support"  agency,
which will shift  depending  on whether a  site  is  EPA-lead or  State-lead.  It
defines  the   roles  and  responsibilities  of  the  lead  and  support  agency
regarding  review  of  key  documents  and/or   decision  points   in  pre-remedlal,
remedial  and  enforcement  responses.   The SMOA 1s  not  site-specific,  and will
apply  to  all  future  response actions  undertaken  by  the  designated lead and
support  agencies.   It  is  not  a  substitute for  a  Cooperative  Agreement.
Instead,  the  site-specific  Cooperative   Agreements,  which will  specify  all
technical  oversight  responsibilities,  should  be  consistent  with  the  general
oversight requirements agreed  to in the SMOA.

The  revised  NCP  also stipulates that  the SMOA will describe  a time frame and
process whereby EPA  and  the  State will jointly  determine priorities  and lead
responsibility for   pre-remedlal,  remedial  and  enforcement  responses  to  be
conducted  during  each  fiscal year.   During  these discussions,  EPA  and the
State  should  also  discuss  future  priorities  and  long-term  requirements for
response.

Development of  a  SMOA  will  largely  be  the  responsibility  of  the Superfund
Program Office staff and  their  State equivalents.   However, it will  be useful
if the  SMOA  identifies the  role of Assistance Administration Unit staff and
their  State  equivalents  in   the  development,  implementation,  and  management
oversight  of  Superfund  Cooperative  Agreements.   For  instance,  two  points
should  be  added  in  the  SMOA  specifying  that,  in  general,  for   any  response
activity to be funded:
     The term  "State,"  as defined  in the  revised National  Contingency Plan,
     includes  Indian  tribes  meeting  certain  requirements  who  wish  to  be
     treated as States with  respect to certain provisions  of CERCLA.  Section
     300.515 of  the  NCP  describes  these  requirements  for  Indian  tribes.
     Throughout  this   guidance,  the  term  "State"  means  "State  or  Indian
     tribes".  A  cooperative  agreement with a political  subdivision requires a
     three-party  agreement (EPA, .the- state, and the political subdivision).

                                  -2-

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                     EXHIBIT 1:
      COOPERATIVE AGREEMENT REVIEW
           AND APPROVAL PROCESS

      Superfund Memorandum of Agreement (SMOA)
    — Lead/support agencies' roles, responsibilities are defined
  Superfund Comprehensive Accomplishments Plan (SCAP)
          — Project funding needs identified, approved
     Cooperative Agreement Preapplication Assistance
  Early Regional/State consultation on what should be in CA application
    Submittal of Final Cooperative Agreement Application
        — Must be approved or disapproved within 90 days
                  Application Review
Involves Regional Program Office and Assistance Administration Unit staff
               Regional/State Consultation
       — Any outstanding issues are addressed and resolved
      •IHiHHHI^HBiiHH^IHIHIH^BHIHlHHHIHHHIHHHHHHHH

    Cooperative Agreement Award Document/Award Offer
                   — Prepared by Region
             Regional Administrator Approval
               — The RA signs the award offer

    Two Copies of Cooperative Agreement Sent to State
                — State must sign the award
  One Copy of Cooperative Agreement Returned to Region
               — Kept on file in Regional office

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     •    Lead  and  support  Agency  Program  Office  staff  are
          responsible  for   ensuring  that   the   response   1s
          consistent with  all  requirements 1n  the NCP  (40 CFR
          300).

     •    Lead and  support  Assistance Administration  Unit staff
          are   responsible  for    ensuring   that   state-lead,
          CERCLA-funded,   site-specific response   complies  with
          all   provisions   1n:     40  CFR   Part   2   (Public
          Information);  40  CFR   Part 4  (Uniform  Relocation
          Assistance and  Real  Property Acquisition for  Federal
          and  Federally  assisted  programs);  40 CFR  Part  29
          (Intergovernmental Review of  Environmental  Protection
          Agency  Programs  and  Activities);   40  CFR  Part  30
          (General  Regulation  for Assistance Programs);  40 CFR
          Part  32;  and  40  CFR  Part  33  (Procurement  under
          Assistance Agreements).

These  two  statements  would  Introduce  the  notion  early  In  the  Superfund
planning process  that both  the  Assistance Administration  and  Program  Office
staff at both  the Federal and State  levels are  essential for effective program
oversight.


1.2 SUPERFUND COMPREHENSIVE ACCOMPLISHMENT PLAN (SCAP)

The SCAP 1s  the official  mechanism through  which funding needs  for proposed
Superfund  activities  are  approved.   All  activities  must  be on  the approved
SCAP to  receive funding.   The Superfund   Program Office coordinates  with the
Regional  SCAP  contact  to ensure  that  Information  on  the SCAP Is accurate, and
that sufficient funding  has  been  budgeted to maintain  site progress.  Identi-
fication of funding needs Is an EPA Superfund  Program Office responsibility.


1.3 PREAPPLICATION/APPLICATION REVIEW PROCESS

EPA faces  a  stringent  time limit for review of Superfund Cooperative Agreement
applications.   To  ensure  that  Cooperative  Agreement  applications  are  not
disapproved  because  of  Insufficient  time  for  review  and  revisions,  EPA
Regional  Program Office and AAU staff  should  provide  preapplication assistance
to  States  Intending  to   submit  applications.   Regional  Program  Office  staff
should  request that  State  Program  Office  staff  provide  a  preappl1 cation
outline of activities  that  would  be  included under the  Cooperative Agreement.
Regional  Program Office  staff  should review  the  outline  and consult  with the
State on how to  structure  the application so  that 1t  demonstrates compliance
with NCP requirements as  well as 40  CFR 29,  30,  32,  and  33.   Regional Program
Office staff should  also check, to make sure that the  activities in the outline
are Included in the SCAP.

Regional  AAU staff  should  also  review  the  outline,  and should  contact the
State  Program  Office  and  Assistance  Administration  staff  to  discuss  the
assistance  requirements  that  they must  meet  (in particular,  the provisions
from 40 CFR 30 and 40 CFR 33).
                                  -4-

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Regions should Initiate preappllcation assistance a_t  least  two quarters before
the  target quarter  for funding.   This  will  allow  the  State enough  time to
prepare Its application.

The  Cooperative  Agreement  review  process  begins  when  an  application  1s
formally submitted by a State.  The application must be dated  and entered  Into
GICS  by the  Assistance Administration  Unit  (AAU),  which  forwards  1t  to the
Program  Office.   Section  104(d)(l)(A)  of  the  Comprehensive  Environmental
Response,  Compensation,   and   Liability  Act  (CERCLA),  as  amended  by  the
Superfund  Amendments  and ReauthoHzatlon  Act  (SARA), requires  EPA  to  make a
determination  on   Cooperative  Agreement  applications  within   90  days  of
receipt.   If  an  application 1s  Incomplete and cannot  be completed  within 90
days,  or  If  consensus  cannot  be reached  on  the  terms  of the  Cooperative
Agreement within the 90-day limit, then EPA must disapprove the application.

Once a  Cooperative  Agreement  application has been submitted, 1t  Is reviewed by
Regional  Program Office  and  AAU  staff  for  compliance  with   technical  and
administrative requirements.   (Chapter  4 of this document Includes a checklist
that  AAU  staff  should  use  1n  their   review  of   Cooperative  Agreement
applications.)

When the  review Is  completed,  the Region  contacts  the  State to  discuss  any
Issues  pertaining  to the  application.   Both the Program Office  and AAU staff
from the  Region and  the State  should  participate 1n  these  discussions.   If
agreement  can be reached on these Issues, Regional Program Office or AAU staff
will fill  out EPA  Form 5700-20C or 5700-20A  ("C"  replaced "A";  use  "A" until
supply  exhausted),  which functions as. the offer  of award.   Depending on the
nature of the application  Issues,  the  Region may want to Include some special
conditions 1n the document.  Special conditions may be added to:

     •    Emphasize   to  a   State  the  need  to  comply  with  a
          particular requirement;

     •    Correct   deficiencies   In    the   content   of   the
          application; or

     •    Add requirements  not  contained In the  application or
          regulations.

Depending  on  the  Region,  the  Program Office  or  AAU staff  will  prepare  the
award package and obtain all  necessary concurrences.  The  AAU sends the award
offer to the  Regional  Administrator  (RA)  for  signature  and sends  two signed
copies  with  a cover letter to  the  State.   After signing the  offer,  the State
returns one copy of  the agreement to the Region's AAU (i.e., Award Official).
                                  -5-

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      CHAPTER.2:   COOPERATIVE AGREEMENT APPLICATION,  AWARD,  AND AMENDMENT


2.1  COOPERATIVE AGREEMENT APPLICATION

To apply  for a  Cooperative  Agreement under  CERCLA,  the  State  must use  the
"Application for Federal  Assistance  -  State  and  Local Nonconstructlon  Pro-
grams" (EPA Form 5700-33,  Rev.  11-86).   The  form consists of  five  parts,  plus
attachments:

     1.   Part I   - General  Information, Signature and Certification
     2.   Part II  - Project Approval Information
     3.   Part III - Budget Information
     4.   Part IV  - Project Narrative Statement, with Scope of Work.
     5.   Part V   - Assurances
     6.   Attachments

(See model  Cooperative  Agreement application,  Exhibit 2,  at  the end of  this
chapter).


2.1.1  Part I - General Summary Information (SF 424)

This  section  provides  general  administrative  information  about  the applicant
and project.  For example, it asks for total proposed  project  funding,  project
start and end  dates,  project duration, and an  administrative  contact (project
manager).   Detailed Instructions for completing the form appear on the form.


2.1.2  Part II - Project Approval Information

This section requires responses  to  eleven questions, and must  be completed to
assure  compliance  with   Federal  regulations.   (See  "Part  II"  of  the  model
Cooperative  Agreement  application   in  this  chapter).   Each  of  the  eleven
questions   has  a "Yes"  or  "No" response.   For each "Yes",  the   State  must
provide some additional Information.

EPA  Regional   Office  reviewers  must  compare  Information   1n  Part  II  of  the
application with other sections, such as the Statement of Work,  and  comments in
the Intergovernmental  Review Section.  For instance:

     •    If  Item  #2  (Does  this  assistance  request  require
          State  or  local   advisory,   educational,   or  health
          clearances?)    has    a   "Yes"   response,   then    the
          Identified   agency   should   be   included   in   the
          intergovernmental review.   Similarly,  if the proposed
          project is  covered by an  approved  comprehensive  plan
          (Item  #5),   then   the  appropriate   planning  agency
          should  also  be  included  in  the  intergovernmental
          review.  (A "comprehensive  plan"  could be  a  land  use
          plan, public health  plan,  or environmental management
          plan  for a State or local  government jurisdiction.)
                                  -6-

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          If the  project will  cause  the  displacement  of  any
          Individual,  family,  business,  or  farm,  a  relocation
          task,  should  be  in  the applicant's Statement  of  Work..
2.1.3  Part III - Budget Information

This section  Identifies  total  costs  for  all
part of the  proposed  project.    The Budget
sections:
                                         activities  to be
                                          Information  Part
                                          undertaken  as
                                          Includes  six
     Section A:
     Section B:
     Section C:
     Section D:
     Section E:
     Section F:
              Budget Summary—identifies  the  cost per  response
              activity,  (remedial,  removal,  or enforcement)  to
              be funded.

              Budget Categories—displays detailed breakdown  of
              costs   by   phase   of   response   (pre-remedlal,
              remedial,  removal, or  enforcement),  by site,  and
              by  activity   (PA/SI,   RI/FS,   remedial   design,
              remedial action).*
              Non-Federal    Resources—provides   an
              listing funding  sources  and  amounts
              those provided by EPA.
                                    area
                                  other
 for
than
              Forecasted  Cash
              Needs—projects   drawdowns  for
                 first-year  budget period, by
                   each quarter of  the
                   response  activity.
              Budget  Estimates—projects  funds   necessary   to
              complete  the  project.    For   instance,   if   an
              application is for RI/FS  work,  Section E is where
              the applicant estimates costs for remedial  design
              and remedial  action.

              Other	Budget	Information—lists      other
                                   direct  charges,   previously
                                     charges,   and   Includes   a
                                    Under  Item   22   ("Indirect
                                     section,   States   Indicate
                                   rect   cost   rate   has   been
                                   approved by  the  recipient's
                                   (It  is also   acceptable   to
                                   s  being negotiated.)
                   out-of-the-ordi nary
                   negotiated  indirect
                   "remarks"   section.
                   charges")   of   this
                   whether    their   indi
                   negotiated with  and
                   cognizant   agency.
                   include  a  rate  that 1
     A  complete  listing   of   obligation   codes  is  available   in   Financial
     Management  of  the  Superfund  Program,   1987.   These  codes  are  used  in
                                                       the
making  the  award
letter of credit.
and  in  tracking  drawdowns  by  the  State  against  its
Contact the Financial Management Division for details.
                                  -7-

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EPA Regional Office reviewers  should  evaluate these budget  sheets  for several
factors:

     •    Sufficient  level  of  detail:   The  budget  Information
          sheets  summarize  Federal  and State  costs  for  each
          proposed activity.   Sections  A  and B of  the "Budget
          Information" forms 1n the model  Cooperative  Agreement
          (Exhibit 3)  show  the 'appropriate level of  detail  for
          activities.    In  Section  B,   costs  for  each  site/
          activity  are  further   divided   by  object   class
          category.   Object class  categories  Include  personnel,
          fringe  benefits,   travel,  equipment,  materials  and
          supplies,  contractual  services,  construction,  other
          direct costs, and  Indirect costs.

     •    Consistency   with   Statement  of  Work.:    The  budget
          Information   sheet provides   summary  budget  figures,
          while  the  Statement  of  Work (SOW)  in  the  Project-
          Narrative    (Part   4)   provides   a   detailed  budget
          breakdown.   In the Statement  of  Work,  cost  estimates
          are  broken  down  for each  activity.    The  aggregated
          costs  in  the Statement  of  Work  must match   those  in
          the Budget Information sheets.

     •    State  Cost   Share:    The  State   must  identify  both
          Federal  and  non-Federal  costs   for   each  activity.
          Section 10A(c)(3)  of  CERCLA requires  States  to  share
          1n  the  cost  of  remedial  actions funded  by  EPA's
          Superfund  program.   States are  required  to  pay  10
          percent of  remedial  action costs  at  sites  that were
          privately   operated   and  owned    at   the    time   of
          disposal.    For facilities  operated  by  a  State  or
          political  subdivision, States are required  to pay at
          least  50  percent   of   all   response  costs  at  the
          facility  (including   past   Fund-financed   remedial
          planning,   remedial    actions,  removals,   enforcement
          activities).*  The cost  share  may   be in  the form of
          cash and/or  services  (i.e.,  in-kind  contributions).

     •    Allowable  Costs:  Costs  included in  the  application
          must   be    allowable  for   payment   under   CERCLA.
          Allowable  costs are  defined  as  those  costs  that  are
          "eligible,   reasonable,   necessary,   and   allocable."
          All  costs  must be   consistent  with  Section  111   of
          CERCLA  and  with  OMB Circular A-87  "Cost  Principles
          for    State    and    Local    Governments."     Final
          determination  of   the   reasonableness  of   the   cost
          estimates  in the application will  be made  by  EPA.
     SARA amended  this  provision.   Previously,  the requirement was  that  States
     paid 50 percent  of all  response  costs at publicly-owned facilities;  and
     the  definition  of  "response"  did not  include  enforcement activities.
                                  -8-

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     •    Indirect Cost Rate:  The  rate  for  indirect costs must
          be  negotiated  with  and  approved  by  the recipient's
          cognizant agency.   (It is also acceptable  to include
          a  rate  that  is being  negotiated.)   Federal cognizant
          agencies are assigned  by  the Office  of Management and
          Budget.


2.1.4  Part IV - Project  Narrative  Statement

This  part  of  the  application   is a  description  of  the  type of  response
activities  to  be  performed  by   the  recipient.   In  general,  the  Project
Narrative  Statement  Includes  a  site  description,  activities,  schedule,  and
milestones.

The  schedule  and  milestones  identified  in   the  Project  Narrative Statement
should  be used by AAU  staff to  monitor the progress  of that response action.
If  the  AAU  staff  notices that  a milestone  has been missed,  he  or  she should
bring 1t to the attention of the appropriate Regional Program Office staff.

Because  the  Project   Narrative   Statement  information  can be  so  helpful   in
monitoring a project's  progress, the Regional  Program Office  and AAU may want
to  specify  a minimum  level  of detail,  and a  format  that  States  are requested
to  follow.   This Regional  request  should  be  conveyed to the  States  during
preapplication assistance.   It  is  suggested   that  Regional Program  Office and
AAU  staff  develop  guidance  for  States on  the  desired  level  of  detail  for
SOWs.   This   guidance   could   then  be  discussed   with   the  States  during
preapplication assistance.

The  SOW  describes  the  purpose  and  scope  of  activities  to be carried  out  as
part of the  proposed  project.   For each  activity,  the  SOW should  include
estimated start  and  completion milestones.   Where  appropriate,  the  SOW should
also identify outputs and should  contain cost  estimates  for each  activity: (1)
pre-remedial; (2) remedial; (3) removal; and (4) enforcement.

The determination of  an acceptable level of detail  for the Statement  of  Work.
will vary  from Region  to Region.   The  model   Cooperative  Agreement  at  the end
of  this  chapter  shows one  appropriate  level of  detail;  but  there  may   be
others,  depending on  Regional  practices.   However, it 1s the responsibility  of
the Regional Program  Office  and  AAU to make sure  that the Statements  of  Work
have enough detail   to   allow  the  Region  to evaluate  whether  EPA will   be
"getting what it  pays for."

The SOW should also  include  tasks for  the development of a number of plans and
management reports, including a  Community Relations Plan,  a Quality Assurance
Project  Plan,  and a  Site  Safety  Plan (if they are not already attached to the
Cooperative Agreement application).


2.1.5  Part V - Assurances

Part V  of  the application  form   identifies  standard assurances  to  which  the
recipient must  agree  in  signing the Cooperative  Agreement application  form.
The recipient must:
                                  -9-

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     •    Possess legal authority to apply for the award.

     •    Comply with  Title  VI  of the Civil  Rights  Act  of 1964
          (P.L. 88-352), regarding:

               who will benefit from the award; and

               prohibiting discriminating employment practices.

     •    Comply with  requirements  of provisions of the Uniform
          Relocation Assistance  and Real  Property Acquisitions
          Act of 1970 (P.L. 91-646).

     •    Comply with  provisions  of the Hatch Act,  which limit
          the political activity of employees.

     •    Comply  with  the  minimum   wage   and   maximum  hours
          provisions of the Federal Fair Labor Standards Act.

     •    Establish   or   maintain   safeguards   to   prohibit
          employees from using  their  positions for private gain
          for themselves,  their  families,  their  businesses,  or
          others with whom they have ties.

     •    Give the recipient agency and. the  Comptroller General
          access  to all  records,  books,  papers,  or  documents
          related to the grant.

     •    Comply  with  all  requirements  imposed by  the  Federal
          award agency.

     •    Ensure that  facilities  under Its ownership,  lease, or
          supervision  that  are  used  to carry  out  the  project
          are   not   listed   on   EPA's   11st  of   "Violating
          Facilities."

     •    Comply  with  the  flood   insurance  requirements  of
          Section  102(a) of  the  Flood Disaster Protection  Act
          of 1973  (P.L. 93-234),  which pertains to the purchase
          of flood insurance.

Although these assurances  are  clearly identified  in the  application form, EPA
Regional Office  staff  may choose to  emphasize  one or  more  of  these  in the
"special conditions" section of the award offer (5700-20 C/A).

A variety  of other  assurances  that   do  not  appear in  the  application  form
should be included  as  special  conditions,  e.g., not to  award subagreements to
firms/individuals  on   EPA's  Master   List   For   Suspended,  Debarred,   and
Voluntarily Excluded Persons.  These requirements are discussed 1n Chapter 3.
                                  -10-

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2.1.6  Attachments                                       '

There  should  be  at  least  three  attachments  to  a  Cooperative  Agreement
application:

     •    A  certification  letter  from  the  State  Governor  or
          Attorney General;

     •    Evidence    of    compliance    with    the    State's
          Intergovernmental  review process; and

     •    A procurement system certification form.


Certification Letter

The  State  must have  submitted  a  letter  to EPA  with  the application  package
certifying that the  State agency submitting the  application  has  the legal and
administrative authority to  enter into a Cooperative Agreement  with  EPA and to
make  any  CERCLA  Section 104 assurances  (e.g.,  state  cost  share) that  are
necessary  to -complete  the  project.   The  letter  may  be  from  the  State's
Governor or Attorney General.

The  letter does not  need  to be  site-specific;  a State may prepare  one letter
applying  to  all  of  its  NPL  sites  and  submit  a copy with  each  application.
However, the  State has the  obligation  to inform EPA of  any  changes   in  the
State's  law  or policy that affects  its  certification letter and  to provide a
new certification letter if  needed.


Intergovernmental  Review (E.G. 12372) Requirements

The State lead agency must send out a Cooperative  Agreement  application to the
state's  SPOC  for  review and  comment by appropriate State and  local agencies.
The  subsequent,  formal  application  to EPA must  evidence  compliance with  the
state's  process  before  EPA can  offer an  award.   Executive  Order  12372 allows
States  to  establish  their  own  process  for   reviewing   Federal   financial
assistance proposals.  Under this order,  States are required  to:

     (1)  Inform each Federal agency which of its  programs  are
          Included in the  State review process;

     (2)  Provide  assurances   that  they  have  consulted  with
          local  officials before revising the  list  of selected
          programs  that  fall   under   State   Intergovernmental
          review processes;

     (3)  Submit  official   State  process  recommendations  (if
          any)  to  EPA  through  the  State's   "Single  Point  of
          Contact."
                                  -11-

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If States  do  not develop their own review  process,  then existing consultation
requirements from other  statutes  continue In effect,  (I.e.,  Sec.  204,  Demon-
stration Cities  and Metropolitan Development Act; Sec.  401,  Intergovernmental
Cooperation Act of 1968).

EPA win award  a Cooperative Agreement only after receipt of Intergovernmental
review  comments,  after receipt of  documentation that  a review  was  conducted
and there  were no  comments,  or  after  the  review period ends  and no comments
were received.   The  model  Cooperative Agreement application has  an example of
an Intergovernmental review package.

States  are responsible for  ensuring  that  applicants  comply with  the  State's
Intergovernmental review  requirements.   AAU  staff  should refer  to the Inter-
governmental  review  requirements  of  a  particular  State   on  file  1n  AAU's
office,  and  should  review  the  Cooperative Agreement application  with  this 1n
mind.    EPA's  Administrative  Assistance Manual  provides further   guidance  on
this (see Chapter 6 of that document).


Procurement System Certification Form

Each  application  must  be  accompanied  by  a  completed  Procurement  System
Certification (EPA Form 5700-48).   The State must Include a  signed original of
this form  In Its application package.   To  complete this form, the State must
determine  whether   its  procurement  system  meets the   requirements  of  EPA's
procurement regulation (40  CFR  Part 33).  A  responsible  official  must  certify
on the  form  whether  the  State's procurement  system  meets the  requirements of
this regulation.

If the  State  does not  certify  its system,  the State  must  Indicate that  Its
procurement activities  will be conducted  in accordance  with  the requirements
of Part  33.   States  that do  not  certify are subject  to EPA  review and pre-
award approval of all  proposed  procurement actions.   States  are subject to the
provisions  In  40 CFR  33,  Appendix. A  if they  have  not  certified their  pro-
curement system.   EPA reserves the right to review a  recipient's procurement
system or any State  procurement action  funded wholly or  in part  by the Agency
regardless of whether the State  has  certified its procurement system.

A  State's  certification  is valid  for  two years or   for  the length  of  the
project  period  in  the  award,   whichever  is  greater,   unless  the  recipient
substantially changes  its   procurement  system.    If  the  State  has previously
provided  its  required  certification,  a  responsible official   should  complete
Part A of the Certification Form, indicating  the month and year  in which this
certification was submitted.

The procurement requirements in  40 CFR 33 are numerous  and fairly  complex.   If
a  State  submitting  a Cooperative  Agreement application  has  self-certified  its
procurement system,  the  AAU should try to  determine  whether:   (1)  the  State
has  a   thorough  understanding  of  these provisions;  and (2)  the State  pro-
curement regulations actually have all  of the necessary provisions  found  in 40
CFR 33.   AAU  staff can  make   these  determinations  by contacting State  pro-
curement administration staff to  discuss these  concerns  during  preapplication
assistance,  and/or  during  review  of  the  Cooperative  Agreement  application.
Here again,  the  checklist  in  Chapter  4  should assist AAU  staff  in  these
efforts.
                                  -12-

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2.2  COOPERATIVE AGREEMENT AHARD DOCUMENTS

When the  State and  EPA have  resolved all  of  the  Issues  pertaining  to  the
Cooperative Agreement application,  the EPA fills out EPA Form 5700-20C/A, "EPA
Assistance Agreement  Amendment,"  which replaces  the 5700-20A  "EPA Assistance
Agreement".   This  form,  when properly  completed and  signed,  serves  as  the
Cooperative Agreement award  document.   (See model award  document  1n Exhibit 3
at  the  end of Chapter  2).   The  Information in  the  award document corresponds
with the model application included  in this Chapter.  It  should  be noted that
EPA  Form  5700-20C  can  serve  as  the  award  document  for  a  new Cooperative
Agreement and can be used to amend an existing Cooperative  Agreement by adding
or  removing  funds.  When  the form is being  used for a new  award (as in this
example), lines 30 through  38 on page 1  will  have  no  entries 1n  the "Former
Award"  column.   Only the second column  ("This Action") needs  to  be filled in
for new awards.

Part I  of the award document requires  EPA to  provide  some  basic information
about the project.   The requested Information  Includes:  project manager's name
and  telephone number;  statutory  authority; regulatory  authority; description
of project; location of project;  budget period; and amount of award.

Part II  requires   EPA  to provide  Information on  the  approved budget.  Because
the model  award  document  in  Section  2.2  covers RI/FS  work.,  only  Tables  A
("Object  Class Category')  and B ("Program  Element Classification") are filled
in.  Table C calls  for fairly detailed  construction cost estimates.

Part III  of  the  award document provides  space for  EPA Regional Offices to add
any special conditions  that  they  deem necessary.   This  is  determined jointly
by Assistance Administration  Unit  and  the Regional  Program Office staff.  The
example Illustrates  that, even  though  the State  had  a fairly  complete appli-
cation,  EPA  thought  it prudent  to include  a  few  more conditions.   In this
example,  EPA  decided  that  the oversight role  needed  to be emphasized;  all  of
the special  conditions  pertain to  EPA's monitoring  and  oversight responsibi-
lities.   As  mentioned  previously,   possible  reasons  for   adding  special
conditions Include:  (1)  to  emphasize  a particular requirement;  (2) to correct
a  substantive deficiency  In  the  Cooperative Agreement  application;  or (3)  add
requirements   not   contained  In  the  application   or  regulations.   Examples  of
special conditions  that apply to  all  EPA  financial  assistance   programs  and
that may  be  added  by  the  AAU  staff are  found In  Chapter 3.   Other fiscal
provisions unique to the Superfund  program may also be required.


2.3  COOPERATIVE  AGREEMENT AMENDMENTS

A model amendment  document  at the  end of  this  chapter  (Exhibit  4)  shows  how
EPA Form  5700-20C  or 5700-2QA  is  used  to amend Cooperative Agreements.  The
example is based  on  the  premise  that  the  project  identified  in  Section  2.1
(the original  application)  is now  moving  into the remedial design phase.

Part I  of the  form  is filled  out differently if  1t  is  used  to  amend  an
existing  Cooperative  Agreement.   In remedial  cases, all  three columns should
be filled  out for   lines- 30  through  38.   This   gives  the  Regional   Office  a
complete  picture of original, amended,  and total  award.  In  Part II  of  the
form,  only Tables A and  B are filled in,  since the  proposed  new  work does  not
cover construction.
                                  -13-

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The  special  conditions  are  especially  Important on  a Cooperative  Agreement
amendment,  particularly  if  the  project  is  moving  into a  new  phase.   For
example,  projects  proceeding  into  the  remedial  design  and  remedial  action
phases may require one or more of the special conditions noted below:

     •    The State will  submit  its remedial design  to EPA for
          review.

     •    The State  will provide  for  all O&M  for the  life  of
          the remedy.

     •    The State  will  pay  10  percent   of  remedial  action
          costs  at  privately  owned and  operated  sites.   (For
          sites  operated  by a State  or political  subdivision
          thereof,  the   State   will  pay  50  percent  of  all
          response costs).

     •    If  the remedial  action  includes  off-site  treatment,.
          storage,  or  disposal   of hazardous  substances,  the
          State  will   find  a  RCRA facility  to handle  these
          substances that is acceptable to EPA.

     •    The need  to  identify  private  property  for  response
          purposes may raise the  issue of acquiring  an interest
          in the property.   The  Assistant Administrator for the
          Office of  Solid Waste  and  Emergency  Response,  with
          concurrence   of  the  General   Counsel,  will  determine
          when   the   purchase   of  a   property   interest   is
          necessary.    If  such  a  determination  is  made,  the
          State   must   acquire   the    interest   before   the
          fund-financed action can begin.

     •    Beginning  October   17,   1989,   the  State   will   be
          required to  assure EPA that it has adequate capacity
          to dispose of  or  treat all hazardous  wastes  expected
          to be  generated by  that State in  the  next 20 years.
          (States  may  enter  into   inter-regional  compacts  to
          assure this  capacity.)

It must  be  emphasized  that  the  conditions  used  in  this  example  may  not  be
required  for  every  site.  The  EPA  Project  Office staff  must  make a judgment
about whether  site-specific  circumstances  warrant  the need  for  any  special
conditions.    The  distinction   between  conditions  that   all  applicants  must
comply  with  and  those  that might  be  applied  on   a   case-by-case  basis  is
explained more fully in Chapter 3.


2.4  MULTI-SITE/MULTI-ACTIVITY COOPERATIVE AGREEMENTS (MSCA)

An  MSCA  is  an  "umbrella"   Cooperative Agreement   that,  under  one  funding
document, may include  several response  activities at more  than  one  site within
a State.  This  concept provides  States  with the flexibility to  select from a
                                  -14-

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range of  options  In  developing MSCAs covering State-lead projects and/or State
participation in  Federal-lead  projects.   Although all costs must  be  accounted
for  on  a site-specific basis, one  important  attribute  of an MSCA  is  the ease
with  which  obligated funds  may  be  transferred  among activities  and/or sites
covered within the same MSCA.

An MSCA may  be  developed either as  a  new Cooperative  Agreement or by adding
several sites/activities  to an existing,  site-specific  Cooperative Agreement.
After the Initial  award, MSCAs can be amended at any time to  include  funds for
additional   sites   and/or  activities.   Two  or   more   existing  single-site
Cooperative Agreements  can  be  combined to create  an MSCA  by closing  out one
(or  more)  agreement(s) at  the  conclusion  of  a remedial  activity  and  then
amending the remaining single-site Cooperative Agreement.

An MSCA can fund various activities within the following program categories:

     •    Pre-remedial

     •    Remedial

     •    Removal

     •    Enforcement

Generally, MSCAs  must  follow the  same requirements  as  single-site Cooperative
Agreements.   The  following  paragraphs  describe special  requirements  relating
to MSCAs.

Intergovernmental  review  notification  of various activities  can  be handled by
a  single  letter,  which  specifies  site  names  and  locations  covered,  the
problems at each site, and likely activities.

In applying,  EPA  Form 5700-33 (Rev. 11-86)  is  used.  A separate  budget sheet
1s  required  for  each  site.   Separate  project narrative  statements  may  be
needed depending  on  the activities covered.   Site management,  accounting,  and
other procedures do not vary significantly from single-site agreements.

Funds  cannot  be shifted  between  Cooperative Agreements  without  undergoing  a
formal deobligation/reobligation process.  It  is particularly difficult if the
shift  occurs  in  a  fiscal  year  later  than  the  one  in  which  the  original
obligation was  made.    In  such a  case,  the  funds are  classified as carryover
and  must  be   recertified   to  the  allowance  holder  before   they   can  be
reobligated.    With    single-site    Cooperative   Agreements,   the  need   for
recertification made  it difficult to move funds from a site  where actual costs
were  less  than  projected  to  another  where  additional  funds  are  required.
MSCAs, however, allow  the  shifting of funds among  sites and activities.   EPA
does not  require  formal  deobligation of funds for  accounting changes  under an
MSCA  1f  the  activity  or  site to which  funds  are being  moved  is  clearly
encompassed by  the scope  of the  MSCA.   This  is because  the use  of the funds is
still considered to be  for  the purpose of the  initial  obligation.   Therefore,
with  the  Award  Official's  approval  (via a formal amendment),  funds  within an
MSCA may be transferred from:
                                  -15-

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     •  One site to another site in the MSCA; or

     •  One activity at a site to another activity  at  that site
        if the second activity is included in the MSCA.

States need not receive  funding for all sites/activities  in the  initial  MSCA
award  for  those  sites/activities   to  be within  the  scope of  the  MSCA  and,
therefore, to qualify for potential transfer of funds.

Transfer  of  funds  between  sites  or  activities  within  an  MSCA  must  be
accomplished through  the  Cooperative Agreement  amendment process  since  funds
are   obligated   on   a  site-specific/activity-specific   basis   (except   for
pre-remedial activities).  While this  will   result  1n  a  financial  transaction
that appears to be  deobllgation/reobligation,  it will  not  be  reported as such
and will not  require recertification of funds to  the allowance  holder.   The
AAU is responsible  for  developing  the amendment and ensuring  that the amounts
proposed for transfer  have  not been drawn  down  or expended  by the  State.   A
different Document  Control  Number  (DCN)  must be assigned  to each amendment to
ensure  that the  date of  the  amendment  is  recorded  in  the  EPA  Financial
Management  System,   thus   allowing  site  activities  to   be   tracked.    All
cost-sharing is site-specific.   State  costs  incurred  at one  site may  not  be
used to meet the State's cost-sharing obligation at another site.*

Because of the financial advantages associated with MSCAs,  both  the  State and
the Superfund  program staff  need  the AAU  to monitor whether  the  addition of
more  sites  or  activities  to  a   Cooperative  Agreement  makes  sense.   The
usefulness  of  an   MSCA   can   be  quickly   eroded   if   the   administrative
responsibilities associated  with proper accounting (obligation and  drawdown)
and recordkeeping become a  burden  to both  EPA  and  the State.   Therefore, AAUs
must  work  closely  with  the  program staff to  ensure  that MSCAs  reflect  a
logical progression of work  and responsibilities.   For instance,  one MSCA may
contain the  pre-remedial  activities that  a State  is  performing;  another may
contain  all  the   management  assistance   activities   associated  with  State
Involvement  during   a  Federal-lead  response;  another  may  contain  remedial
Investigation/feasibility studies at several  sites; another may cover remedial
design and  remedial action  activities   (including  State  cost-sharing).   (See
MSCA Model, Exhibit 5.)


Site-Specific Accounting

Since  EPA  seeks   to  recover  costs   for   Fund-financed  response   actions,
management of Superfund dollars  requires a  detailed  accounting  structure.   A
State's  MSCA  application  must  allocate  all   projects   costs  to  a   site  and
activity (RI/FS/RD,  etc.)  except   for   pre-remedial   work,  which  is  handled
differently.  This  should  be done  in  two  ways.   First,  the budget  sheets  in
the application  should display the  Federal  and non-Federal cost of the project
   Note:   Statutory credits  earned at one site  may be used to offset  the cost
          share  required at another site ire some circumstances.   CERCLA credit
          provisions are  complex;  AAUs  should  work closely  with  FMOs  and
          program staff when credit questions arise.
                                  -16-

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by site  and  activity;  second,  the award document should obligate Federal funds
by site and activity.


The Application

For  pre-remedlal   activities,  the  budget  categories  1n  Section   B  of  Form
5700-33 must be broken  Into separate activities.  Sites  are  listed separately
1n the MSCA application.  The award of funds for this phase of  response  1s not
done by site but rather by activity only.

For remedial, removal, and enforcement activities the  application must reflect
the  budget  for each phase  of  response at each  site  separately.   For example,
site  xyz/RI/FS or  site  xyz/RD  or  site xyz/RA.   For multi-site  cooperative
agreements,  the  display might be  a  combination of sites  and  activities, but
each must still be displayed separately.


The Award Document

Funds  are  obl-igated using  EPA's  10-digit  account  number.   See  Figure  1.
States are  not allowed  to  draw funds  from one account  to  cover expenses for
another phase  of  response,  or  in an  MSCA at  another  site,  without  the Award
Official's  approval.   The letter of  credit  assurances/special  conditions for
each Superfund Cooperative Agreement must be followed.


Cost Sharing

As for single-site Cooperative  Agreements, states are required  to share  in the
cost of response as follows:

     •  10 percent  of  the remedial  action for  privately owned
        and operated sites;

     •  50 percent of all  response  costs for  publicly operated
        sites;   the   50  percent  cost   share  for  previously
        fund-financed  activities  is   required  at   the  time
        remedial action is funded;  and

     •  Statutory credits may  be used  to offset this  required
        assurance;  and,   although  advance  match  is no  longer
        permitted, pre-SARA agreements  with advance  match  will
        be honored.   AAUs should refer  to  program  guidance and
        FMD  guidance on  credits  if  the  State wants   to  use
        credit/advance match.
2.5  CORE PROGRAM COOPERATIVE AGREEMENTS

     (Reserved)
                                  -17-

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2.6  PRE-REMEDIAL COOPERATIVE AGREEMENTS



     (Reserved)





2.7  ENFORCEMENT PROGRAM FUNDING



     (Reserved)
                                  -18-

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                                         FIGURE  I
                         SUPERFUND  ACCOUNT  NUMBER  EXAMPLE
               te
                                                                           Aeaprt Numbaf
        1965
Superfuna P'ogrim EI«m«nT
Allowance Hotd»r * R«gior 3
Regional ld»ntifi«r , Resoonsibiiity
Activity Cod«     .. ..
Sita/Spill Identifier Code
                                               -19-

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               EXHIBIT 2



MODEL COOPERATIVE AGREEMENT APPLICATION
                 -20-

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       FEDERAL ASSISTANCE
    1. TYPE
     OP
     SUBMISSION
              Q NOTICE OF WTENT (OPTIONAL)

              D PREAPPUCATION
                    APPUCAT1ON
                                        2. APPU-
                                          CANTS
                                          APPLI-
                                          CATION
                                          CENTV
                                          FKR
                                                      •.NUMBER
b.DATE
                                                            IW MOM*
                                                         86   2   10
3.-STATE
  APPU.
  CATION
  CENTV
  F1ER
M7TXTOBE
ASSIGNED
•Y STATS
                                                                                   •L NUMBER
b. DATE
  ASSIGNED
                                                                                                  10
   4. LEGAL APPLICANT/RECIPIENT
   •. A**** NOT  Dept. of Water Resources
              i* Environmental  Services  Division
cSkwi/p.o.BO«  Ecology Building, Room  2002
&oxy          Help                        •.coiMy  Sand
tsiM         Euphoria                   o,apcoo». 00013
h. Comet PranfNMt  |_.G. Smith
                        DWR (613^555-1003
                                                                           9. EMPLOYER IDENTIFICATION NUMBER (EM)
                                                                           e.
                                                                           PRO-
                                                                           GRAM

                                                                           (FnmCFDA}
                                                                                  •.NUMBER   1 6 |  6| * | 8 1 0| 2


                                                                                  	MULTIPLE D
                                                                                      D. TITLE Hazardous  Substanci
                                                                                      Response Trust Fund
   7, TITLE OF APPLICANTS PROJECT (UM MCton IV of Mi term to prevW* • «jmnwy tto«uipUun of to
                                                                        t. TYPE OF APPLICANT /RECIPIENT
     Albatross Chemical  Co.,  Hazardous Waste  Site
     Remedial  Investigation,  Feasibility  Study
                                                                                                fiMtr
   9. AREA OF PROJECT IMPACT (N*ma •/cum. tmaha. mm. «t>
    Toxland, Seaside,  Hilltop (cities),
    all in  Sand  County
                                                     10. ESTIMATED NUMBER
                                                     OF PERSONS BENEFTONQ
                                                      65,000
                                                                        11. TYPE OF ASSISTANCE
   12.
           PROPOSED FUNDING
   a FEDERAL
   b. APPLICANT
   •.OTHER
       Totf
                     301.999.oo
                             .00
                             .00
                             .00
                             .00
                     301,999.00
                             13.
                                          CONGRESSIONAL DISTRICTS OF:
                                                                           14. TYPE OF APPLICATION
                             «. APPLICANT

                                    2
                                15. PROJECT START
                                       it  86  09 01
                             It. DATE DUE TO
                               FEDERAL AGENCY I
                                                      b, PROJECT
                                                                            IT. TYPE OF CHANGE Iff Mtm
                                                   1t. PROJECT
                                                     DURATION
                                                                                                           N/A
                                                              24
                                                     -1>    N/A
   IB. FEDERAL AGENCY TO RECEIVE REQUEST
                                 U.S. EPA, Region XII
   «. ORGANIZATIONAL UNIT (IF APPROPRIATE)
     Suoerfund Branch
                                                                                         20. EXISTING FEDERAL GRANT
                                                                                            CENT1FICATON NUMBER
                                               b. ADMINISTRATIVE CONTACT I* KNOWN)
                                                                      Joseph Klutz
                                                                                                  N/A
     ADDRESS  999 west  57th  Street
              Lanview,  Euphoria    00014
   22.
   THE
   APPLICANT
   CERTIFIES
   THAT*
              To *w b«« ol tiff krtr**dQf wtd t*»*,
                                    ft. YES. THIS NOTICE OF INTENT/PflEAPPUCATION//
                                      EXECUTWEORD6R-12372 PROCESS FOR REVIEW ON;
                                                                                         21. REMARKS ADDED
                                                                                    I WAS MADE AVAILABLE TO THE STATE
                                       b. NO. PROGRAM IS NOT COVERED BY E.O. 12372 D            _
                                         OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW D
    23.
    REPRE-
    SENTATIVE
          I TYPED NAME AND TTOE

             Heidi  M.  Kleen, Director
                                                                b.»QNATUR£
   24. APPLJCA-
      TION
      RECEIVED  It
              r^» ^^_^ ^^
              C^ ^^BJM OT7
                                       25. FEDERAL APPLICATION IDENTIFICATION NUMBER
                                                                             28. FT3ERAL GRANT DENTIFICATKM
O
27. ACTION TAKEN

Q 4. AWARDED
Ob. REJECTED
Qt RETURNED FOR
    AMENDMENT
  & RETURNED FOR
    tO. 12372 SUBMISSION
    BY APPLICANT TO
    STATE
Q •• DEFERRED
O I WITHDRAWN
                                    FUNDING
                         •.FEDERAL
                         b. APPLICANT
                      c. STATE
                         tf. LOCAL
                         •- OTHER
                              TOTAL
                                                  ao
                                                  ao
ao
ao
ao
ao
                                                        2t. ACTION DATE*
                                                                            1t
   31. CONTACT FOR ADOmONAL INFORMA-
      TION (Nun* «W *W*Ht mumttr)
                    32.
                    ENDING
                    DATE
                                                                                         STARTING
                                                                                         DATE      it
                                                                                                   Imr
                                                                                                      1t
                    33. REMARKS ADDED
                                                                                               Y«    D NO
EPA Form 5700-33 (Rev. 11-86) Previous editions are obsolete.
                                                                                  STANDARD FORM 424 PAGE 1 
-------
                                                        PART II

                                         PROJECT APPROVAL  INFORMATION
                                            Form Approved.
                                            OMB No. 2030-0020
                                            ApprovaLexpires 7-31-89
Itam 1.
Does thit assistance request Suit, local, regional, or other priority
rating?
Nama of Govemi
Priority Rating
                                  U.S.  EPA
                                  i  n  • __ • .  ,  i j
                                  l  rrlurUy  L
                                                      .No
                                                                             (already listed)
Item 2.
Does this assistance request require State or local advisory, edu-
cational, or health clearances?
         Nama of Agancy or
          Board	
                                         .Yet
.No      (Atttch Documfnationt
                           (Note:    If  required  with
                comments;    submittal  by State  process),
Itam 3.
Does this assistance request require clearinghouse review in ac-
cordance with Executive Order 12372?
                                          Yet
.No
Itam 4.
Does thit a'uittanoa rwquatt require Stata, local, ragional or other
planning aporoval?
                                         .Ya«
.No
         Nama of Approving Agency.
Itam 5.
It  tha  proposed  protect  covered by an  approved comprehensive
plan?
                                         .Yai
.No
Check ona:  Stata     O
           Local     O
           Ragional  D
Location of Plan    __
Itam 6.
Will the assistance raquattad atrva a Fadaral inttallation?
                                         .Yai
 No
         Name of Fadaral in«t«n»tinn
         Fadaral Population banaltting from Projact ,
Item 7.
Will tha aniitanea raquattad be on Federal land or initallation?
                                         -Yet
.No
         Name of Federal Installation ,
         Location of Federal Land _
         Percent of Project ______
Item!.
Will  tha  auifUnce  raquettad haw an Impact or effact on  the      See instruction! for additional information to be provided.
environment?
                                         .Yet
.No
      No negative  impact.
Item 9.
Ha* tha protect  for which aninanca  It requetted cauted, tinea
January 1, 1971. or will it cauta, tha displacement of any individual,
family, butinen, or farm?
                                         .Yes
.No
         Number of:
          Individual*.
          Families __
Hem 10.
It  there other related assistance on this protect previous, pending,     Sae instructions for additional information to be provided.
or anticipated?
                                         .Yet
.No
ham 11.
It project In a Oattgnatad Flood Hazard Ana?
                                         -Yet
                                                     .No
EPA Form 5700-33 (Rev. 11-86) Previous editions are obsolete.
                                                                                                           PACE S OF 12

-------
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-------
                                                                                          Form Approved.
                                                                                          OMB No. 2030-0020
                                                                                          Approval expires 7-31-69
bgv • SECTION B - SCHEDULE • - BUDGET CATEGORIES
7 Program Eltmcnti
Remedial Investigation/
"' Feasibility Study
b.
c.
d.
•.
f.
g.
h.
i. Totil Prognnt Et«m*mi
1. STATE TOTAL
FUNDING
(1) FEDERAL
* 301,999







*
'301,999
(2) NON-FEDERAL
$







%
»
(3) TOTAL
* 301, 999







s
» 301, 999
(4)
MAN-
YEARS










EPA Form 5700-33 (Rev. 11-86) Previous editions are obsolete.
PACE • Of 12
                                                   -25-

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-------
                                                                                            Form Approved.
                                                                                            OMB No. 2030-0020
                                                                                            Approval expires 7-31 -69
                                                      PARTY
                                                   ASSURANCES
    The Applicant agrees and certifies that he or she will comply with the regulations, policies, guidelines, and
    requirements, including OMB Circulars No. A-102 and A-87, and Executive Order 12372, as they relate to
    the application, acceptance, and use of Federal funds for this Federally assisted project.  Also, the Appli-
    cant agrees and certifies with respect to the grant that:
     1.  H possesses legal authority to apply for the grant; that
        a resolution, motion or similar action has been duly
        adopted or passed as an official act of the applicant's
        governing body, authorizing the filing of the applica-
        tion, inctnotng" all  understandings and  assurances
        contained therein,  and directing and authorizing the
        person identified as the official representative of the
        applicant to act in connection with the application and
        to provide such additional information  as  may be
        required.

     2.  It will comply with Title VI of the Civil Rights Act of 1964
        (P.L. 88-352) and in accordance with Title VI of  that
        Act, no person in the United States shall, on the ground
        of race, color, or  nation origin, be excluded from
        participation in,  be denied the  benefits of,  or  be
        otherwise  subjected to discrimination under any pro-
        gram  or activity for which the  applicant receives
        Federal financial assistance and will immediately take
        any measures necessary to effectuate this agreement.

     3.  It will comply with Title VI of the Civil Rights Act of 1964
        (42 USC 20000) prohibiting employment discrimina-
       tion where (1) the primary source of  a grant Is to
       provide employment or (2) discriminatory employment
       practices will result in  unequal treatment of persons
       who are or should be benefiting from the grant-aided
       activity.

    4.  It will comply with requirements of the provisions of the
       Uniform Relocation Assistance and Real Property
       Acquisitions Act of 1970 (P.L 91-646) which provides
       for fair and equitab'e treatment of persons displaced
       as a result of Federal and federally assisted programs.

    5.  It will comply with the provisions of the Hatch Act which
       limit the political activity of employees.

    6.  It win comply with the minimum wage and maximum
       hours provisions of the Federal Fair Labor Standards
       Act, as they apply to employees of institutions of higher
       education, hospitals, other non-profit organizations,
       and to employees of State and local governments who
       art not employed In Integral operations in areas of
       fraditional governmental functions.

    7.  H wlH establish safeguards to prohibit employees from
       u*lng their positions for a purpose that is or gives the
       appearance of being motivated by a desire for private
       gain for themselves or others, particularly those with
       whom they have family, business, or other ties.
  8. It will give the grantor agency and the  Comptroller
    General through  any authorized representative the
    access to and the right to examine all records, books,
    papers, or documents related to the grant.

  9. It will comply with all requirements imposed by the
    Federal grantor agency concerning special require-
    ments of law, program requirements, and other ad-
    ministrative requirements.

10. It will Insure that the facilities under its ownership,
    lease or supervision  which  shall  be utilized in the
    accomplishment of the project are not listed on the
    Environmental Protection Agency's (EPA) list of violat-
    ing Facilities and that it will notify the Federal grantor
    agency  of the receipt of any communication from the
    Director of the EPA Office of Federal Activities indicat-
    ing that a facility  to be used in the project is under
    consideration for listing by the EPA.

11. It will comply  with the flood insurance  purchase
    requirements of Section 102(8) of the Flood Disaster
    Protection Act of  1973, Public Law 93-234, 87  Stat.
    975, approved  December 31, 1976. Section 102(a)
    requires, on and after March 2,1975. the purchase of
    flood insurance m communities where such insurance
    is available as a condition for the receipt of any Federal
    financial assistance for construction or acquisition
    purposes for use in any area that has been identified
    by -he Secretary of the Department of Housing and
    Urban Development as an area having special  flood
    hazards.

12. It will comply  with  all applicable  requirements  o'
    Section  13 of the Clean Water Act  Amendments of
    1972 (P.L. 92-500) if the grant is awarded urder any
    grant authority  of that Act.  which provides that no
    person in the United States shall, on the ground of sex
    be excluded  from participation in,  be denied the
    benefits  of, or be otherwise subject to discrimination
    under any program or activity under the said Clean
    Water Act Amendments for which the applicant re-
    ceives fmancia1 assistance and will take all necessary
    measures to effectuate this agreement.
EPA Form 5700-33 (Rev. 11-86) Previous editions are obsolete.
                                            : 1.2OF ta

-------
       ALBATROSS CHEMICAL CO.,  SITE HISTORY AND INVESTIGATION OBJECTIVES .


Background

The  Smith  Road  facilities  of  the Albatross  Chemical  Company,  located  near
Toxland  1n  Sand  County,  were  constructed  1n  1968.    The  plant  produced
arsenic-based herbicides such as monosodlum  methylarsenate (MSMA) along with a
wide  spectrum  of  phenolic  and  amine-based  herbicides.   The  arsenic-based
product of  MSMA and  the  raw materials  required for  Its  production  are  the
major sources of the problems at Albatross.

During the  plant operations,  both raw  and finished  containerized  materials
were  stored  1n  the  open,  on  the   ground.    These   materials   subsequently
spilled/leaked  Into  the surface  soils.   In  addition,  the  spread  of  arsenic
materials outside  of the process  areas  occurred  in  June  1976,  when rainfall
events caused the wastewater ponds to  overflow  the plant site.

Although  the  perimeter dikes   initially contained the  wastewater  on  site,
subsequent sampling  indicated overflows  and  seepage to the  adjacent drainage
ditches, which  discharged into  Brays  Bayou.   These discharges of  arsenic waste
water led to  litigation between  the State and Albatross  Chemical Company.   To
solve the  wastewater problems,  the company  applied to the  Department for an
injection well  permit  in September 1978.   The  Department requested proof of
subsurface  ownership,   which  Albatross  supplied  in the  summer of  1979.   The
hearing on  the application  convened  March  11,  1980  and  closed on July  31,
1981.  In  October 1981,  Albatross  declared  bankruptcy  under Chapter  7.   The
site was left flooded with arsenic-contaminated wastewaters.
Present Status

An emergency action by EPA 1) dewatered  the  site,  2) filled  in  the  ponds with
contaminated soils, 3)  temporarily  capped  most of the plant site with 6 Inches
of clay, and  4)  added topsoil  and  seed.  Currently,  ground water and  surface
water contamination  have  been  recorded  at the  site.   It  is  anticipated that
erosion of the clay could  create an air problem of arsenic dust particles.


Investigation/Feasibility  Plan Objectives

The objectives of the investigation study are to:

1.   Identify  target  receptors  (population  at  risk,  sensitive  ecosystem,
     threatened resources).

2.   Establish rate and direction of migration (if any) of wastes from site.

3.   Determine local  geological  conditions,  hydrology,  and site suitability.

4.   Establish  waste  characteristics   and   volumes  in  order  to  determine
     possibilities for reuse, treatment,  or destruction.

The objectives of the feasibility study are to:
                                  -28-

-------
1.   Develop  and  evaluate  alternative  viable  remedial  measures  considering
     economic  feasibility,  technology  feasibility,   environmental   impacts,
     regulatory constraints,  and timeliness of completion.

2.   Develop  technological  feasibility  through  data  review  and  bench/pilot
     testing.

3.   Determine operations  and  maintenance options  (including  cost)  for  the
     alternative  remedial  measures considered.
Structure

The  remedial  investigation  activities  described  in  the  attached  work, scope
will be undertaken by the Department directly or by  contract.   However, during
the  course  of the project,  some changes  may be required as  each  activity is
completed and more is  learned  about the condition of  the  site.  Such changes
1n  the  work plan must  be approved  by  the  Department and  EPA.   Only changes
that  are considered  to  be  significant  by  the Department  and  EPA  Project
Officers will require an  Amendment  to this Cooperative Agreement.   EPA and the
Department  each  agree  not to  release any   information  gathered or  decisions
made as  a result  of  the  investigation activities carried  out pursuant to this
Agreement prior  to consultation with the  other party.

This  program   Includes   extensive   review  of  existing  data,   followed  by
identification of  missing data  elements  prior  to  actual  data  collection and
evaluation.    Following   the  submission  of  the  site  investigation  report,  a
decision will be made by EPA  in consultation with the State  as to  the severity
of  the  problem  and the  need  for further  actions at  this site.  If problems are
Identified,  the  EPA will notify the  State to  proceed with  specific  feasibility
studies designed to address said problems.


Authorization to Execute Cooperative Agreements and  Contracts

The  67th Euphoria Legislature enacted  Subchapter   H  into  the  Euphoria Water
Code, authorizing the Euphoria  Department of  Water Resources (the  Department),
to  enter into contracts  and  cooperative  agreements  with the  federal government
to carry out removal  and  remedial actions  under Section 104(c)  (3)  and 104(d)
(1)  of  CERCLA.   Subchapter  H  also  established  the  Disposal Facility Response
Fund, currently at 5.6  million  dollars,  to  provide for the  State's required
matching funding.  In addition,  Subchapter  H also authorizes  and  requires the
Department:

1.   To  assure  future  maintenance  of  the  removal  and  remedial   actions  is
     provided for  the  expected  life of  those  actions  as  determined  by  the
     federal government;

2.   To  assure   the   availability  of  a  hazardous   waste  disposal  facility
     acceptable  to the  federal  government  that complies with Subtitle C of the
     federal  Solid   Waste  Disposal   Act  (42  U.S.C.   6921   et seq.)  for  any
     necessary off-site storage,,  destruction,  treatment, or  secure disposition
     of the  hazardous substances,  pollutants, or contaminants; and
                                  -29-

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3.   To assure payment by the State of:

     a.   10 percent  of the  costs  of the remedial actions.  Including  1001 of
          maintenance; or

     b.   at least  50 percent of  the costs  as  determined  appropriate  by the
          Federal  government, taking Into account  the degree of responsibility
          of  the  State  for  any  amount  spent 1n  response  to  a release  at  a
          disposal  facility  that  was  operated  by  the  State  or  political
          subdivision.

Finally by letter of  February 8,  1986 to Walter L1ly,  Regional Administrator,
U.S. EPA  Region XII,  Governor  Tree formally designated the  Department  as the
lead agency  authorized  to  enter  Into  cooperative  agreements  and  contracts
under  Section  104  of  CERCIA.    Copies of Subchapter   H,  the  Department's
appropriations relating  to  the  Disposal   Facility  Response  Fund,  and  Governor
Tree's  February 8, 1986 letter are enclosed  as Attachment I.


Time and Personnel Schedules

The time  schedule presented  in  this application  begins  following the execution
of  a  contract  between  the  Department  and  the  selected   contractor.   It  is
estimated  that  it  will  take  approximately  120  days  from the date of award
until  a contract  is  negotiated  with the  selected  contractor.   In  the  interim,
the Department will  initiate certain chargeable  management activities  and work
tasks necessary to comply with the Cooperative Agreement.
                                  -30-

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                           DETAILED BUDGET BREAKDOWN
                 COST  BREAKDOWN -  ALBATROSS CHEMICAL CO.  SITE

                                     RI/FS
PERSONNEL COSTS
                             Management Activities
Position

Hydrologist IV
Hydrolog1st/Eng,
Hydrologist/Eng.
Hydrolog1st/Eng.
Hydrologlst/Eng.
Hydrologist/Eng.
Admin. Tech IV
Hydrologist II
Admin. Tech I
Annual Salary
                   Work Years

III
III
III
III
I






$ 30,744
32,844
32,844
32,844
32,844
26,088
25,248
28,800
14,052



.11
.23
.16
.06
.06
.16
.10
.18
.06
Total Personnel Cost
Fringe Benefits (? 251
Indirect Costs § 20%
                              Costs

                               381.84
                               554.12
                               255.04
                               970.64
                               970.64
                               174.08
                               524.80
                               184.00
                               843.12
                           $32,858.00
                             8,215.00
                             6,572.00
                                           $ 3,
                                             7,
                                             5,
                                             1,
                                             1,
                                             4
                                             2,
                                             5,
TRAVEL COSTS

Title

Hydrolog1st/Eng. Ill
Hydrologist IV
Hydrologist/Eng. Ill
Hydrologist/Eng. I
Hydrologist II
Admin. Tech IV
Vehicle rental/fuel
Origin/Destination

Euphoria/Confusion
Euphoria/Confusion
Euphoria/Confusion
Euphoria/Confusion
Euphoria/Confusion
Euphoria/Confusion
                         5
                         2
                         8
                         6
                         5
                         5
                               Costs

                                725
                                330
                              2,750
                              2,550
                                725
                                825
                              2,000
                                   Total Travel Costs
                                           $  9,905
EQUIPMENT COSTS

Equipment

Air packs (2)
Containment Suits (2)
Air Sampling Kit (1)
  Dally Usage Fee
  $ 5
  $10
  $20
(2)
(2)
                    No Days
                                   Total
            60
            60
            60
Equipment Costs
  Cost

$  600
 1,200
 1.200
$3,000
                                  -31-

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SUPPLIES

Postage                                                              $  500
Locks (6)                                                                50
Disposal safety equipment (40 man-days)                               3,000
Camera                                                                  200
Fire Extinguisher                                                        50
Chemical Manuals (2)                                                    100
Sampling Equipment:  sample jars 25
                     sample vials 50
                     teflon liners 50
                     bailers (6) 300
                     sample tags 25
                     packaging 150

                               Total Supplies Costs                     600
                                                                     $4,500

OTHER COSTS

Publication/Document Fees                                            $1,000
Reproduction                                                            800
Long Distance Telephone                                               1.200
                               Total Other Costs                     $3,000

CONTRACTUAL COSTS

Facilities (offices, equipment, station) &
 Services (water, utilities, etc.)                                   $22,600
Worker Safety Plan                                                    6,250
Site Survey                                                           4,600
Determine depth of soils contamination                                6,500
Establish Surface Water Quality                                       5,000
Geotechnical Investigation                                           168,999
Report Findings                                                      20,000
                               Total Contractual Costs              $233.949
                  TOTAL COST INVESTIGATION     301.999
                                  -32-

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                               STATE ASSURANCES


The  Euphoria  Department  of Water  Resources  1s  the  designated State  agency
responsible  for  implementing   the   cooperative   agreement.   The  Department
provides the following assurances:

(1)  It will agree to the following conditions of letter of credit financing:

     (a>  Cash drawdowns will occur only when needed for disbursements.

     (b)  Timely reporting  of  cash disbursements  advance and  balances  will  be
          provided,  as required by the EPA Letter of Credit Users Manual

     (c)  The  same   standards  of  timing  and  reporting will   be  Imposed  on
          secondary  recipients, if applicable.

     (d)  When  a  drawdown  under the  letter of  credit occurs,  the  recipient
          will show on  the  voucher (Form TFCS-5805) the  cooperative  agreement
          number,  the  appropriate  EPA account number,   and  the  drawdown amount
          applicable to each site/activity  account.  The  eighth digit of  the
          account  number  (see  Item  39,  page 1 of the Cooperative Agreement)  is
          the code to the appropriate  activity assignment:

          L - Remedial  Investigation/Feasibility Study
          N - Remedial  Design
          R - Remedial  Action
          J - Pre-remed1al Activities
          S - Operation and Maintenance
          I - Removal  Actions
          3 - State  Liaison
          7 - General  Support and Management

     (e)  When funds for  a  specific  activity have  been  exhausted  but  the work
          under the  activity has  not  been completed, the  State will  not  draw
          down from  another activity or  site account.   At  the  request of  the
          recipient,  the  EPA Award Official  may cause   funds from  one  activity
          to be transferred to  another.

     (f)  Funds remaining in an account after completion of  an  activity may  be
          either returned  to EPA or  adjusted to  another activity or  site,  at
          EPA's discretion.

     (g)  When an  activity  is  completed,  the State will  submit a  Financial
          Status Report (Standard  Form  269)  within  90  days to the EPA  Award
          Official.

     (h)  The  State  will   also  submit  the   Standard  Form 269   within  90  days
          after the  close  of  each budget   period.   If  the budget period  is
          longer than one year,  the report  will  be submitted   annually,  based
          on the anniversary'month of  the  award.
                                  -33-

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(2)  The  Department  agrees  to $[     ] as  the fair  share  dollar  amount  for
     minority   business   enterprises   and   women's   business   enterprises
     (MBE/WBE).  The  fair share will  be used to award  MBE/WBE subagreements.
     The Department will submit to the EPA Award Official  a  completed Standard
     Form 334  within  30  days  after  the end  of each Federal  fiscal  quarter
     until the last subagreement has been awarded.

(3)  The  Department will  conduct  the activities 1n this  cooperative agreement
     1n a manner consistent with the existing National Contingency  Plan (NCP),
     40 CFR 300.

(4)  The Department agrees to  11st all  nonexpendable  personal  property In  the
     recipient's  property  records  and  agrees  to  follow  federal  property
     management standards contained 1n 40 CFR Part  30.531.   Property Inventory
     reports  will   be  1n  accordance  with  40 CFR   30.505.   Disposition  of
     property will  be  In accordance with 40  CFR 30.532.

(5)  In  accordance  with 40  CRF  Parts  30 and 33.  the Department  will  retain
     records generated  under this  Cooperative Agreement  for three  years  from
     the date of submission  of the final Financial Status  Report or until  any
     litigation, audit,  claim or  cost  recovery  actions  begun  during  the
     project are resolved,  whichever is  longer.   The Department will  contact
     the  EPA  Project  Officer  in  advance of  the  proposed  disposition  of  any
     records from the files  developed for this project.   No files or documents
     concerning  this   Cooperative  Agreement  shall  be   disposed  of  without
     notifying  EPA  in  advance.  Upon  notification,  EPA  may require that  the
     document be retained by  the  State for  an  additional  specified  period.
     Alternatively,  EPA  may  require  that the documents   be  transferred to  EPA
     for  retention.   State  and  State  contractor  files,  and  any  additional
     documentation  for  cost  recovery purposes,  can  be  retained in microform,
     If the documents  are  suitable  for  microform copying and  If the microform
     can be reproduced  as  an accurate hard  copy version  of  the original.   The
     State or its  contractor will   obtain EPA approval  of the  process before
     copying or disposal  of  the  original  documentation.   Original  documents
     must be  retained  for those  types  of  documents  that are  not  capable  of
     being  completely   and  accurately  microformed  (such  as large  documents,
     photographs or blue prints).

     The  Department  also  will   notify  EPA  of any request   to  dispose  of
     documents  received  from a State  contractor.   EPA  will  impose the  same
     requirements for  retention or  disposal  on State  contractor  records  as on
     States.

(6)  The Department will maintain  an  accounting system that will  document  all
     Superfund costs,  including costs of  subagreements,  incurred on  a  project
     and  will   identify   these   costs   by  the   EPA  Cooperative  Agreement
     Identification Number.  Costs  entered  into the system will  be  classified
     by  the  standard  object  class  categories  used   in   the  Cooperative
     Agreement.   Costs  will  also  be documented site-specifically.

     The  Department  will  develop  and   implement   procedures   to control  the
     receipt,  obligation,  and  disbursement  of  funds, and  will  provide  for
                                  -34-

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system  audits  and Internal  reporting  of  financial  status  on a  regular
basis.   If the  Department  Is  charging  Indirect  costs,  the  methodology
used and  the  rate will  be negotiated, approved  by the  cognizant  Federal
agency, and periodically audited.

The  Department  will  support all  entries  1n  Its accounting  system  by
maintaining  appropriate  source  documentation   and  records.   Supporting
documentation will Include complete records that explain each transaction.
                             -35-

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                         [SAMPLE CERTIFICATION LETTER]

                            OFFICE OF THE GOVERNOR
                                 STATE CAPITAL
                            HELP, EUPHORIA    00013

                                February 8, 1986
Maureen Tree
GOVERNOR
Ms. Jolene Champion, Regional Administrator
U.S. Environmental Protection Agency
999 West 57th Street
Lanvlew, Euphoria   00014

Dear Ms. Champion:

In  response  to   your   letter  concerning  the   Comprehensive   Environmental
Response, Compensation  and  Liability  Act of 1980 (CERCLA), I want to take this
opportunity to formally designate  the  Euphoria  Department of  Water Resources
as  the  lead  agency  authorized  to  enter  into  cooperative  agreements  and
contracts under Section 104 of CERCLA.  Historically,  the  Euphoria  Department
of  Water  Resources has  been the  state  agency responsible  for  monitoring and
regulating hazardous  waste  sites.   I  have every confidence that  this agency
and  the   Environmental  Protection  Agency   can   continue   to   maintain  the
cooperative working relationship that has  been established.   Additionally, the
Department  can  facilitate   any  appropriate   communications  with other  state
agencies relative to the Act.

Again,   I  appreciate  the  opportunity  to  formally  designate  the   Euphoria
Department of Water resources as Euphoria's lead  agency  in  accordance  with the
Comprehensive Environmental Response, Compensation and Liability Act of 1980.

If I can be of any further assistance, please  let me know.


Sincerely,
Maureen Tree
Governor of Euphoria
cc:  Ms. Harriet Martin
     Department Executive Director
     of Water Resources
                                  -36-

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                   [SAMPLE INTERGOVERNMENTAL REVIEH LETTER]

                         Department of Hater Resources
                        Environmental  Services  Division
                           Ecology Bldg., Room 2002
                             Help,  Euphoria 00013


Ms. Oolene Champion,  Regional Administrator
U.S. Environmental Protection Agency
999 West 57th Street
Lanvlew, Euphoria  00014


Dear Ms. Champion:

Under 40 CFR  Part 29,  the State of Euphoria  has adopted  an Intergovernmental
review process which designates  Ms. Amy Whitbauer (title) 1n the Department of
Environmental Quality Control  (DEQC)  as  the  single  point  of  contact  to whom
all applications  for EPA financial assistance under  CERCLA  must be submitted.
This  letter  is  to  certify  that  a  copy   of   this  Cooperative  Agreement
application  was   sent  to  Ms.  Whltbauer  in   DEQC,   who  sent   It  out  to all
appropriate State and  local  agencies  for their review.   We have  received no
comments from-any agency on the application.


Sincerely,
Heidi Kleen
Director
cc:  Amy Whltbauer, DEQC
                                  -37-

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3
A££
EPA
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. DC 20460
PROCUREMENT SYSTEM CERTIFICATION
JCANT'S NAME
JDept. of Water Resources
mvironmental Services Division
Form Approved
OMB No 2000-0453
Approval axpires 10-31
-87
ASSISTANCE APPLICATION NUMBER
  APPLICANT'S ADDRESS
     Ecology  Bldg.  Room  2002
     Help,  Euphoria  00013
                                        SECTION I - INSTRUCTIONS
     The applicant must complete and submit a copy of this form with each application for EPA Assistance. If the
     applicant has certified its procurement system to EPA within the past 2 years and the system has not been
     substantially revised, complete Part A in Section II. then sign and date the form. If the system has not been
     certified within the past 2 years, complete Part B, then sign and date the form.
                                        SECTION II - CERTIFICATION
 A. I affirm that the applicant has within the past 2 years certified to EPA that its procurement
    system complies with 40 CFR Part 33 and that the system meets the requirements in 40
    CFR Part 33. The date of the applicant's latest certification is:	
                                                                                    MONTH/YEAR
 B. Based upon my evaluation of the applicant's procurement system, I, as authorized representative of the
    applicant: (Check one of the following:)
       1.  CERTIFY that the applicant's procurement system will meet all of the requirements of 40 CFR Part 33
          before undertaking any procurement action with EPA assistance
*
se furnish citations to applicable procurement ordinances and regulations
    EU Statutes 222,  Part  F

    EU Regulatory Code 33,  Parts  A and  C
   jLJ 2.  DO NOT CERTIFY THE APPLICANT'S PROCUREMENT SYSTEM. The applicant agrees to
          follow the requirements of 40 CFR Part 33, including the procedures in Appendix A, and
     	allow EPA preaward review of proposed procurement actions that will use EPA assistance.
 TYPED NAME AND TITLE
     Heidi  M. Kleen, Director
                                     SIGNATURE
DATE
EPA Form S700-48 (Rev. 5-84) Previous edition is obsolete

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            EXHIBIT 3



MODEL COOPERATIVE AGREEMENT AHARD
           -39-

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                                                                       for...
                U.S. ENVIRONMENTAL PROTECTION AGENCY
              EPA ASSISTANCE AGREEMENTOMeSSBBM
              PART I • ASSISTANCE NOTIFICATION INFORMATION
                                                              1. ASSISTANCE ID NO.
                                                               V1103161A
                                                              3. DATE OF AWARD
                                                                       9/1/86
                                                                                           2. LOG NUMBER
                                                                                             XYX-1111ZZ
                                                                                   4. MAILING DATE
                                                                                     9/ 4/86
   VQHEEMENT TYPE
 ura
          Agreement
        •eement
 Aaittance Amendment
                                 6. PAYMENT METHOD

                                   LJ Advene*     L_J Reimbursement
                                                                              Letter
                                                                                          68-XX-llll
                                 Send Payment Requeet To:

                                              N/A
                                                                             7. TYPE OF ACTION
                                                                                             Award
   8. RECIPIENT
                                                        9. PAYEE
        Department of Water  Resources
        Environmental Services Division
        Ecology Building, Room 2002
        Help,  Euphoria    00013
                                                             Same
   EIN NO.

     376002957
              	[ ZONO

              	I
                                                 10. RECIPIENT TYPE

                                                               State
   11. PROJECT MANAGER AND TELEPHONE NO.

        L.G.  Smith
        ESD,  DWR
        613-555-1003
                                                 12. CONSULTANT (WWT Construction Grant* Only)
                                                           N/A
   13. ISSUING OFFICE (Ctty/Statt)

        Region XII, Lanview,  EU
                                                 14. EPA PROJECT/STATE OFFICER AND TELEPHONE NO.
                                                      B.T.  Doe
                                                      EPA Waste Management Division
                                                      613-555-6134
   15. EPA CONGRESSIONAL LIAISON & TEL. NO.
J
                   ?n?-3R?-4/UU
                                 16. STATE APPL ID (Cl*aringhoiu*l

                                 	Enter State ID*	
                               17. FIELD OF SCIENCE

                                    N/A
                                 18. PROJECT STEPfWWT CC

                                           N/A
     ATUTORY AUTHORITY
PL  96-510, Section  104
                                         20. REGULATORY AUTHORITY

                                          40 CFR Part  300
                                                              21. STEP 2 «• 3 & STEP 3 (WWT Construction Only)
                                                              •. Trvctmant Laval
                                                                     b. Pro)«ct Typ*
                                                                     c. Tra>Tm»nt Proecn
                                                                      d.
 22. PROJECT TITLE AND DESCRIPTION
        RI/FS for Albatross  Chemical  Hazardous Waste  Site
                                        23. PROJECT LOCATION (Area* Impacted by Proftct)
 Cltv/PI*
             Toxland
                                           County
                                              Sand
                                                                  SUM
                                                                   EU
                                             Congrvnionil Dlnrict

                                                      5
 24. ASSISTANCE PROGRAMfCFDA Program No. A Title}
Haz.  Subst. Resp. Tr.  Fund  66-802
                                    26. PROJECT PERIOD
                                                9/1/86-9/1/88
                                                                  26. BUDGET PERIOD
                                                                       9/1/86-9/1/88
 27.
    COMMUNITY POPULATION f WWT CC
    Onty)
                            28. TOTAL BUDGET PERIOD COST
                                301,999
                                                                  29. TOTAL PROJECT PERIOD COST
                                                                     301,999
            FUNDS
                                  FORMER AWARD
                                                               THIS ACTION
                                                                                           AMENDED TOTAL
 30. EPA Amount Thte Action
                                                     301,999
 31. EPA In-Kind Amount
 32. Unexpended Prior Year Bilcnce
 33. Other Federal Funds
 34. Recipient Contribution
 35. State Contribution
 36. Local Contribution
     ither Contribution
     lloweble Prefect Con
                                                              301.999
   Program

   TFAY9A
                   FY
           86
                 Appropriation
                 68-XX-llll
                               Doc. Control No.
Z84444
                                                Account Number
7TFA07L848
Ob|ect Claei

 33.33
Oblioatlon/Deobllg. Amount

     301,999
                                                '• r  „ CT<-"> ioft v.,h,rh
                                                                       bp uspd until supplies are exhausted

-------
PART II-APPROVED BUDGET ASSISTANCE IDENTIFICATION NO.l 	 __
TABLE A - OBJECT CLASS CATEGORY
(Non— construction)
\. PERSONNEL
2. FRINGE BENEFITS
^•fcBAUEL
^HtmPMENT
5. SUPPLIES
6. CONTRACTUAL
7. CONSTRUCTION
8. OTHER
9. TOTAL DIRECT CHARGES
10. INDIRECT COSTS: RATE ?n a BASE "}£ ftl^p.
11 TOTAL (fhitrr: *?i»ripr—t'. P . ., % F*rf»r« /..IpO «y

)2. TOTAL APPROVED ASSISTANCE AMOUNT
TABLE B - PROGRAM ELEMENT CLASSIFICATION
( Non— construction)
,. Remedial Planning
2.
3.
4.
5.
6.
7.
B.
9.
lio.

m
\^ TOTAL (Share1 Recipient— — — % y»H»r*i 100 %}

13. TOTAL APPROVED ASSISTANCE AMOUNT
TABLE C - PROGRAM ELEMENT CLASSIFICATION
(Construction)
\. ADMINISTRATION EXPENSE
Z. PRELIMINARY EXPENSE
3. LAND STRUCTURES. RIGHT-OF-WAY
4. ARCHITECTURAL ENGINEERING BASIC FEES
5. OTHER ARCHITECTURAL ENGINEERING FEES
6. PROJECT INSPECTION FEES
7. LAND DEVELOPMENT
B. RELOCATION EXPENSES
9. RELOCATION PAYMENTS TO INDIVIDUALS AND BUSINESSES
10. DEMOLITION AND REMOVAL
11, CONSTRUCTION AND PROJECT IMPROVEMENT
12. EQUIPMENT
13. MISCELLANEOUS
14. TOTAL (Una* 1 thru IS)
15. ESTIMATED INCOME (It appHcaMa)
16. NET PROJECT AMOUNT (Lint 14 mtnut IS)
17. LESS: INELIGIBLE EXCLUSIONS
k. ADD: CONTINGENCIES
19 TOTAL f Share- Recipient^— _% Feefwra !_____%,)

20. TOTAL APPROVED ASSISTANCE AMOUNT
TOTAL APPROVED ALLOWABLE
BUDGET PERIOD COST •
32.858
8.215
9.905
^ nnn
4.500
233.949
n
3.000
295.427

301,999
s

?m ,9Q9










301,999
s




















$
EPA  Farm 5700-20A (Rav. 5-82)
                                                                                                                     PAGE 2 0

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                                     PART IU-AWARD COKOITIOHS


   GENERAL CONDITIONS

       recipient covenants and agrees that it will expeditiously initiate and timely complete the project work for
       h assistance has been awarded under this agreement, in accordance with all applicable provisions of 40 CFR
       ter I, Subpart B. The recipient warrants,  represents, and agrees that it, and its contractors, subcontractors,
   employees and representatives, will comply with:  (1) all applicable provisions of 40 CFR Chapter I, Subchapter 8,
   INCLUDING BUT NOT LIMITED TO the provisions of Appendix A to 40 CFP Part 30, and (2) any special
   conditions set forth in this assistance agreement or any assistance amendment pursuant to 40 CFR 30.425.


b. SPECIAL CONDITIONS

   (For cooperative agreements include identification or summarization ol EPA responsibilities that reflect or
   contribute to substantial involvement.)
        The  following special  conditions  are added:

        1.   The recipient agrees  to maintain  an  accounting system that will  Keep  an
             accurate,  current,  and  complete  accounting  of all  financial  transactions
             under  this  Cooperative  Agreement by  site,   by activity,   and   by  object
             class.   Records together with  supporting  documents  showing  the  source  and
             application  of  all project  funds will  be maintained.  (40  CFR 30.510)

        2.   The  EPA  Project Officer   will  conduct  periodic   reviews   and   visits  to
             evaluate  project   activities  to  assure   compliance  with  applicable  EPA
             requirements  and  regulations.   The State  Project Officer agrees to  ensure
             that  schedules  and reporting  requirements   are met.   All   State  proposed
             modifications to  schedules  or  activities will be  reported  immediately to
             the EPA Project Officer  for approval.

        3.   The  State  agrees  to  submit progress  reports  to  the  EPA Project Officer
             within 30  days  of  the end  of  the Federal fiscal  quarter.   These reports
             shall  include  itemizations  of expenditures  by object class  and  by  each
             activity  in  the  SOW  (expenditures  to  date  and   expenditures   since  the
             previous  report);  estimates  (percentages)   of work,  completed for  each
             activity  in  the   SOW,   including  a  description  of   the  basis   for  the
             estimates;  and  estimated   variances  (cost and time)  expected  at project
             completion.
EPA Form 5700-20* (Rev. 5-82)                                                                 PAGE 3 OF 4

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                                                         ASSISTANCE IDENTIFICATION NO..
 b. SPECIAL CONDITIONS (Continued)
                                                     PART IV
NOTE:  The Agreement must be completed in duplicate and the Original returned to the Grants Administration
   Division for Headquarters awards and to the appropriate Grants Administrations Office for State and local
   awards within 3 calendar weeks after receipt or within any extension of time  as may be granted by EPA.

   Receipt of a written refusal or failure to return the properly executed document within the prescribed time, may
   result in the withdrawal of the offer by the Agency.  Any change to the Agreement by the recipient subsequent
    o the document being signed by the  EPA Award Official which the Award Official determines to materially
    Iter the Agreement shall void the Agreement.
                                             OFFER AND ACCEPTANCE
The United States of America, actine bv and through the U.S. Environmental Protection Agency (EPA), hereby offers

 assistance/amendment to the  State  Of  Euphoria	
 ior.
     100
                                                                         ORGANIZATION
% of all approved costs incurred up to and not exceeding S3Q1 .999
                                                                               Asl »TANCF.
 for the support of approved budget period effort described in application (including all application modifications)
     AlbatrOSS  Chemical  Site              2/10/86	  included herein by reference.
ISSUING OFFICE (Grants Administration Office)
ORGANIZATION/ ADDRESS
EPA, Region XII
Grants Management Branch
Lanview, EU 00014
AWARD APPROVAL OFFICE
ORGANIZATION/ ADDRESS
EPA, Region XII
Reaional Administrator
Lanview, EU 00014
                 THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
SIGNATURE OF AWARD OFFICIAL
                                     TYPED NAME AND TITLE
                                        Jolene Champion,  Regional  Administrator
                                                                                  DATE
                                                                                     9/1/86
This Agreement is subject to applicable U.S. Environmental Protection Agency statutory provisions and assistance
regulations. In accepting this award or amendment and any payments made pursuant thereto, (1) the undersigned
represents that he is duly authorized to act on behalf of the recipient organization, and (2, the recipient agrees
   «that the award is subject to the applicable provisions of 40 CFR Chapter I, Subchapter B and of the provisions
   this agreement (Parts I thru IV), and (b) that acceptance of any payments constitutes  an agreement by the payee
   t the amounts, if any found by EPA to have been overpaid will be refunded or credited in full to EPA.
BY AND ON BEHALF OF THE DESIGNATED
SIGNATURE
RECIPIENT ORGANIZATION
TYPED NAME AND TITLE
DATE
EPA Form 5700-20A (R«v. 5-82)
                                                                                                      PAGE « OF

-------
                                                             OMB NOS. 9999-0001 AND OMO-001T
                                                             EXPIRES: APRIL 30, 1990
        MBE/WBE* UTILIZATION UNDER FEDERAL GRANTS, COOPERATIVE
         AGREEMENTS, AND OTHER FEDERAL FINANCIAL ASSISTANCE
P PART
1. (NEGATIVE REPORTS MAY BE REQUIRED)
1A. FEDERAL FISCAL YEAR
19 Rg
1B REPORTING QUARTER {Crtec* aooropnaw oox)
[3 1» (Oo.-Dec.». Q 2nd . Q 3rd (Aor.-Jun.), Q 4

tn Uul-Seo.)
 2.   FEDERAL FINANCIAL ASSISTANCE AGENCY
     (DeoarcmenvAgency, Bureau/Administering Office, Address)

   U.S.  EPA, Region XII
   999 West 57th St.
   Lanview, Euphoria  00014
                                          3.   REPORTING RECIPIENT (Name «na Address)

                                              Department of Water Resources
                                              Environmental Services Division
                                              Ecology Building, Room 2002
                                              Help, Euphoria  00013
2A.
4A.
REPORTING CONTACT
B.T. Doe ,
PHONE:
613-555-6134
FINANCIAL ASSISTANCE AGREEMENT 10 NUMBER
V1103161A
3A. REPORTING CONTACT
Heidi M. Kleen
PHONE:
614-554-1234
4B. FEDERAL FINANCIAL ASSISTANCE PROGRAM
Haz. Subst. Resp. Tr. Fund 66.802
4C.  TYPE OF FEDERAL ASSISTANCE AGREEMENT

         GRANT                COOPERATIVE AGREEMENT
                                                      OTHER FEDERAL FINANCIAL ASSISTANCE
5A.  PERIOD WHEN PROCUREMENT UNDER THIS AWARD WILL
    OCCUR

    START DATE-
                                                     12/31/86
                                          END DATE:
SB.
AMOUNT OF TOTAL PROJECT
DOLLARS PLANNED FOR
PROCUREMENT THIS FISCAL YEAR
       301,999
5C.  RECIPIENTS MBE/WBE GOALS (Percent of total procurement dollars (5t» for eacn>

            15  percent
                          MBE
                                 WBE
                                                                               10 percent
50.  MBE.WBE PROCUREMENT ACCOMPLISHED THIS QUARTER

    MBES                WBES 10,100
                                          3E.  NEGATIVE REPORT (Check)

                                                  SEE INSTRUCTIONS
6.   COMMENTS.
7.
8.
1
NAME OF AUTHORIZED REPRESENTATIVE
Heidi M. Kleen
TITLE
Director, DWR
SIGNATURE Of AUTHORIZED REPRESENTATIVE
DATE
• WH rieorling tt apian* •! !*• diractlOft ot *•
                                   MflMOMOB to* LOCAL
                                                                             fTANO*M} KMM X
                                                                       •r OOMTMOTT or OOMMIW
                                           -44-

-------
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-------
              EXHIBIT 4



MODEL COOPERATIVE AGREEMENT AMENDMENT
                -46-

-------
                                                                     Form Approved. O*  wo. 
      Region XII
                                                     14. EPA PROJECT/STATE OFFICER AND TELEPHONE NO.

                                                             B.T.  Doe
                                                             EPA Waste Management Division
                                                             613-555-6134
  IS. EPA CONGRESSIONAL LIAISON & TEL. NO.
      0.  Jones   202-382-4444
                                     16. STATE APPL ID fCteorinfhouM>
                                       Enter State  I0#
                              17. FIELD OF SCIENCE
                                       99
                                                                                     18. PROJECT STEPfWWT CC
   tfATUTORY AUTHORITY

      P.L.  96-510, Section  104
                                     20. REGULATORY AUTHORITY

                                         40 CFR  Part  30 0
                              21. STEP 2 «• 3 * STEP 3 (WWT Conttnictton Only)
                              a. Traitrnvnt L*v«*
                                                                 b. Pro)«et Typa
                                                                   e. Tr««tr
                                                                            tPr«M
                                                                   d. Sludg*
22. PROJECT TITLE AND DESCRIPTION

         RD  for  Albatross Chemical  Hazardous Waste  Site
                                      23. PROJECT LOCATION (Artot Impacted by
Clty/PU
            Toxland
                                          County
                                                  Sand
                                  SUM
                                    EU
                                                                               Congri
                                     n«l Dlnrlct
                                       5
24. ASSISTANCE PROGRAMfCFOA frogmm No. 4k Titlil
Haz.  Subst.  Resp.  Trust Fund 66.802
                                        26. PROJECT PERIOD
                                           9/1/87  - 9/1/89
                                  26. BUDGET PERIOD
                                     9/1/87  - 9/1/89
27, COMMUNITY POPULATION (WWT CO
   Only)
         N/A
                                28. TOTAL BUDGET PERIOD COST
                                           608,570
                                  ». TOTAL PROJECT PERIOD COST
                                          608,570
           FUNDS
                                FORMER AWARD
                                                              THIS ACTION
                                                                                        AMENDED TOTAL
30. EPA Amount Thte Action
                               301,999
                       306,571
                                   608,b/U
31. EPA In-Kind Amount
32. Unaxpvndad Prior Y**r
33. Othw F*dM»l Fund*
34. Raclplant Contribution
35. Statt Contribution
36. Local Contribution
     «r Contribution
      w«bl* Pro|*et Cott
                               301,999
                                                 6087570
  Program EMmant
                FY
                  87
                      Appropriation


                     68-XX-im
Doc. Control No.


Z8459
                                                       Account Number
7TFA07N849
Objact Claai


 33.34
                                                                                       Oblloatlon/Daobllft. Amount
$306,571
                                                                                                    -47-

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PART II-APPROVED BUDGET
AeeiCTAwrF inFNTIFlCATION NO.
I TABLE A - OBJECT CLASS CATEGORY
| r/Von— construction)
| i. PERSONNEL
^j rm«GE BENEFITS
^BTPAWFL
P^EQUIPMENT
5. SUPPLIES
6. CONTRACTUAL
7. CONSTRUCTION
8. OTHER
9. TOTAL DIRECT CHARGES
10. INDIRECT COSTS RATE 20% "-BASE. 46,932
0 1 OC
11 TOTAL (Share' Recipient ____'7. F •«*•»•! , „



7.J

12. TOTAL APPROVED ASSISTANCE AMOUNT
TABLE B - PROGRAM ELEMENT CLASSIFICATION
( /Von— construction)
i. Remedial Planning (RI/FS)

z. Remedial Design (RD)
3.
4.
S.
6.
7.
a
'•
1,0.
b
12 TOTAL ("Sham' p*fiptrpf "- Feilrr*1 r ^^

".J

13. TOTAL APPROVED ASSISTANCE AMOUNT
TABLE C - PROGRAM ELEMENT CLASSIFICATION
(Construction)
1. ADMINISTRATION EXPENSE
2. PRELIMINARY EXPENSE
J. LAND STRUCTURES. RIGHT-OF-WAY
4. ARCHITECTURAL ENGINEERING BASIC FEES
S. OTHER ARCHITECTURAL ENGINEERING FEES
6. PROJECT INSPECTION FEES
7. LAND DEVELOPMENT w
B. RELOCATION EXPENSES
t. RELOCATION PAYMENTS TO INDIVIDUALS AND BUSINESSES
10. DEMOLITION AND REMOVAL
11. CONSTRUCTION AND PROJECT IMPROVEMENT
12. EQUIPMENT
13. MISCELLANEOUS
14. TOTAL 
-------
                                         PART HI-AWARD CONDITIONS

 '•  GENERAL CONDITIONS

    The recipient covenants and agrees that it will expeditiously initiate and timely complete the project work for
       ich assistance has been awarded under this agreement, in accordance with all applicable provisions of 40 CFR
       apter I, Subpart B. The recipient warrants,  represents, and agrees that it, and its contractors, subcontractors,
     fnployees and representatives, will comply with:  (1) all applicable provisions of 40 CFR Chapter I, Subchapter B,
    INCLUDING BUT NOT LIMITED TO the provisions of Appendix A to 40 CFP Part 30, and (2) any special
    conditions set forth in this assistance agreement or any assistance amendment pursuant to 40 CFR 30.425.

 b.  SPECIAL CONDITIONS

    (For cooperative agreements include identification or summarization of EPA responsibilities that reflect or
    contribute to substantial involvement.)



      1.   All  special  conditions  and State assurances  in  the original  Cooperative Agreement
          remain in  effect.


      2.   The  State  will submit its  remedial  design to  EPA for  review at the  following
          points:   the preliminary design  (30  percent  complete), the  intermediate
          design (60 percent complete), and  the final  design  (100 percent complete).
EPA Form 5700-20A (R«v. 5-82)                                                                       PAGE3OF4
                                                  -49-

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                                                       ASSISTANCE IDENTIFICATION NO.
 b. SPECIAL CONDITIONS fConunu.d;
                                                    PART IV
NOTE:  The Agreement must be completed in duplicate and the Original returned to the Grants Administration
   Division for Headquarters awards and to the appropriate Grants Administrations Office for State and local
   awards within 3 calendar weeks after receipt or within any extension of time as may be granted by EPA.

   Receipt of a  written refusal or failure to return the properly executed document within the prescribed time, may
   result in the  withdrawal of the offer by the Agency.  Any change to the Agreement by the recipient subsequent
   to the document being signed  by the  EPA Award Official which the Award Official determines to  materially
   alter the Agreement shall void the Agreement.
                                            OFFER AND ACCEPTANCE
The United States of America, actine bv and through the U.S. Environmental Protection Agency (EPA), hereby offers

weixtaaKK/amendment to the  State of Euphoria. Department of Water Resources
      .                                                        RECJP'fc" f OH
tor - L2iL% of all approved costs incurred up to and not exceeding S  608,570
                                                                      f OHOANCZ A TION
                                                                              a£ a T A r*i C £ AMOL't
 for the support of approved budget period effort described in application (including all application modifications)

      AlbatrOSS Chemical  Site        2/10/86	 included herein by reference.
         ISSUING OFFICE (Grants Administration Office)
                                                                       AWARD APPROVAL OFFICE
ORGANIZATION/ADDRESS
 EPA,  Region  XII
 Grants Management  Branch
 Lanview,  EU   00014
                                                        ORGANIZATION/ADDRESS .
                                                            EPA,  Region XII
                                                            Regional Administrator
                                                            Lanview, EU  00014
                 THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION  AGENCY
SIGNATURE OF AWARD OFFICIAL
                                     TYPED NAME AND TITLE
                                         Jolene Champion, Regional  Administrator
                                                                                          DATE
                                                                                           9/1/87
This Agreement is subject to applicable U.S. Environmental Protection Agency statutory provisions and assistance
regulations.  In accepting this award or amendment and any payments made pursuant thereto, (1) the undersigned
represents that he is duly authorized to act on behalf of the recipient organization, and (2, the recipient agrees
fa) that the award is subject to the applicable provisions of 40 CFR Chapter I, Subchapter B and of the provisions
u. this agreement (Parts I thru IV), and (b) that acceptance of any payments constitutes an agreement by the payee
  ;at the amounts, if any found by EPA to have been overpaid will be refunded or credited in full to EPA.
BY AND ON BEHALF OF THE DESIGNATED
SIGNATURE
RECIPIENT ORGANIZATION
TYPED NAME AND TITLE
DATE
EPA Form 5700-70A (R»v. 5-82)
                                                                                                    PAGE 4 Ol

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              EXHIBIT 5
MODEL MULTI-SITE COOPERATIVE AGREEMENT

              (Reserved)
             -51-

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      CHAPTER 3:  SPECIAL MANAGEMENT CONCERNS FOR COOPERATIVE AGREEMENTS


Cooperative Agreements developed under CERCLA are subject to  several  legal  and
administrative requirements.   Some of  these  are known  as  "general  assistance
requirements," because they  apply  to  all  financial  assistance  agreements  from
EPA.   Recipients  receiving  financial  assistance   from EPA   are  subject  to
certain requirements  In  40  CFR 30 (EPA's  "General  Regulation  for  Assistance
Programs") and 40 CFR 33 ("Procurement Under Assistance Agreements").

It  Is the  responsibility  of AAU staff  to determine  whether or  not  recipients
are  able  to meet all  of these  general assistance requirements.  This  can be
learned during  preappllcatlon assistance and/or during administrative  review
of  the Cooperative Agreement application.   If these Investigations reveal that
a  State  is  unfamiliar  with,  or  will   have  difficulty  complying  with  a
particular requirement, EPA  and the State should work  together to correct the
deficiency before the award Is made.   As  part" of this effort,  the AAU may opt
to  Include  this  provision  as a special condition in  the Cooperative Agreement
award document.   This  action will  emphasize the importance of  the requirement
to  the  recipient,   and  will   "flag"  that   provision  as  a  potential  future
compliance problem.   The  checklist in  Chapter 4 will  help  to  guide  AAU  staff
in this review and evaluation effort.

The  Superfund  program also  has  its   own  set of  requirements  that   apply  to
Cooperative Agreement  applicants.   Some  of  these  may  be  included as special
conditions in the award document,  depending  on site-specific conditions.


3.1  GENERAL ASSISTANCE REQUIREMENTS

One set of EPA regulations  for recipients of financial  assistance  is found in
40  CFR  Part 30  (General  Regulation for Assistance Programs).   The  main  areas
covered by  this  Part  are  procedures for-  applying for assistance,  requirements
for  cost  sharing,  determination of allowable  costs,  recordkeeping,  reporting,
quality assurance,  financial  management and  use  of funds,  property acquisition
and  management,   changes   to  the  assistance agreement,  project  audits  and
close-out, noncompllance measures,  exceptions to the  requirements,  and dispute
resolution.  These are described in the following sections.


3.1.1  Applying  for  Assistance

To  be  eligible   for  assistance, the  applicant  must  meet  criteria related to
financial  and organizational  resources,  past  performance  record,  accounting
and  auditing  procedures,  procurement  standards, property  management systems,
and compliance with  various  other  statutory  requirements.   (40  CFR 30.301) EPA
also requires a  standard  application,  as  described and  illustrated  in Chapter
2, and CERCLA assistance  recipients must, in addition,  submit   a  schedule for
development of  a quality  assurance  plan  within  30 days  of  award.   (40 CFR
30.302)    When  the  application is  approved,  EPA   will  prepare  and  sign  an
assistance  agreement  and  send it  to  the  State for  signature.   It  must be
signed and returned within  three  weeks unless an extension is  requested.   If
the  application  is  disapproved or  deferred,  EPA will  provide  written notice.
Disapproval  can  be  appealed.   (40  CFR  30.305)
                                  -52-

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3.1.2  Cost Sharing. Payments, and Determining Allowable Costs

Cost  share  requirements  can  be  satisfied with cash or  In-kind contributions,
but not with Federal funds or with property or  services  received under another
assistance agreement unless  specifically  authorized by statute.  Contributions
must  be  specified  1n  the assistance agreement, be  verifiable,   be  used exclu-
sively for  one project,  and  be  properly  allocable to and  allowable under the
project.   (40 CFR 30.307)

Costs  may  not be  Incurred  before  the  assistance agreement  Is  signed by both
parties.   (40 CFR 30.308)

In  the  Superfund   program,  payment  Is  made  by  letter  of  credit  which  1s
discussed In  Section 3.3.2.   Allowable costs  are  determined according  to OMB
Circular A-87.  (40 CFR 30.410)


3.1.3  Recordkeeplng and  Reporting

Project records must include  amount of funds received and expended, direct and
Indirect project  costs,  property  purchased,  time  and  attendance  records  and
other  supporting   data,  and  documentation  of  compliance  with  statutes  and
regulations that apply to  the project.  These  records  are to be  kept  by site
and  activity,  according   to  object  class.   Contractors must  maintain similar
records pertinent  to the  project.   (40 CFR 30.500)  All  these  records must be
kept  for  three  years  after  the  submission  of  the  final  Financial  Status
Report, or  longer  if questions remain  (audit,  litigation,  etc.).   Records  on
real  property and  nonexpendable personal  property are  to be  kept for three
years  after final  disposition  of  the property.   (40  CFR  30.501)  EPA,  the
Office of  Inspector General,  the  Comptroller  General,  and  the Department  of
Labor must be allowed access  to these records.  (40 CFR 30.502)

The  assistance agreement  also  requires  Interim  and  final  progress reports.
Financial Status Reports  (SF  269)  must be  submitted  to an  EPA  Award Official
within 90  days after  the end of each  budget period,  within  90  days after the
completion of  an  activity,  and  within 90  days after  the  end  of  the overall
Cooperative Agreement  (see  3.2.2,  Letter-of-credit requirements),  as  well  as
upon completion of each project.


3.1.4  Quality Assurance  Project PTan

Quality assurance  practices  consist of policies,  procedures,   specifications,
standards,   and  documentation  that  will  produce data adequate  to meet project
objectives   and limit  loss  of  data  caused  by  uncontrolled  conditions  or
malfunctions.   A  quality  assurance project  plan  must  be  submitted  with the
application  (this  may consist of  a  schedule for plan  development)   if  the
proposal   involves   environmental  measurements  or  data  generation.   This  QA
program must be acceptable to the Award Officials.  Plan components  include:

     •   Project  title,  principal   investigators,  description,
         organization,  and responsibilities;
                                  -53-

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     •   Quality   assurance   objectives   and   criteria   for
         determining    precision,    accuracy,    completeness,
         representativeness, and compatibility of data;

     •   Sampling and sample custody procedures;

     •   Analytical  and  calibration  procedures and  frequency,
         plus traceabllity of standards;

     •   Data reduction,  validation, and reporting;

     •   Internal  quality  control  checks  and  performance  and
         system audits;

     •   Preventive maintenance;

     •   Procedures  for  assessing  data  precision,  accuracy,
         representativeness, and comparability;

     •   Corrective action for out-of-control situations; and

     •   Quality   assurance   reporting  procedures.    (40   CFR
         30.503)

Quality  assurance  requirements  listed  here  include  some  Superfund-specific
items from the National Contingency Plan.


3.1.5  Financial Management and Use of Funds

A  financial  management  system must  provide  accurate,   current  and  complete
accounting,  including  source  and  use  of  funds,  obligations,  unobligated
balances,  assets,  liabilities, outlays,  and  Income.   The  system must  track.
expenses  by  site  and  activity according  to object  class  as well as  provide
control, accountability, and  assurance that funds, property, and  other  assets
are used only  for their  authorized purpose.  The ability to compare actual and
budgeted costs by object class is required, as are  procedures to  ensure  prompt
disbursement  of  Federal  funds  and  procedures  for  determining  allowable,
allocable, and reasonable costs.  An audit must  be  conducted  every other year,
and a  method to  resolve  audit findings and recommendations  must  be  in  place.
(40 CFR 30.510)

State agencies may  retain  interest earned on  an EPA  advance.  (40 CFR 30.526)
Any  program  income  should  be  used  to  fund  additional  eligible  project
activities, but not the non-Federal share.  (40 CFR 30.525)


3.1.6  Property Acquisition and Management

Personal Property

Purchase of  personal  property  (e.g.,  equipment and  supplies)  is allowed  if
authorized in  the assistance  agreement.   Award Official approval  Is required
                                  -54-

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for each  Item  that costs $10,000 or more.   Purchased  property must be used on
the site for which it was acquired as  long  as needed whether  or  not  EPA fund-
ing continues.   EPA's interest  must  be adequately  reflected  and protected in
compliance with  the  Uniform Commercial  Code.   EPA  has  the right  to transfer
title  to  the Federal  Government or a  third party  upon  project  completion if
the  property  costs   $1,000  or  more  and  is  identified  in  the  assistance
agreement.  (40 CFR 30.530)

Property management standards for personal property  include:

     •   Recordkeeplng  (description,  source,  owner, date  acquired  and cost.
         Federal share, location, use,  and disposition);

     •   An  inventory at least every two years,  including  reconciliation with
         property  records  and  verification  of  current  use and  need  for  the
         property;

     •   A loss, damage, and theft control system;

     •   Adequate maintenance procedures;

     •   Sales procedures to ensure the highest possible return; and

     •   Identification of Federally owned property.  (40 CFR  30.531)

Personal  property  costing $1,000  or  less may  be  kept or  sold  upon  project
completion.  If  nonexpendable  property  cost  more than  $1,000, EPA Is entitled
to  compensation  proportionate  to  its  share  of  the   current  market  vaTue.
Expendable personal property may not be used on other Federal  projects.  If it
1s sold,  EPA must  receive a share of  the proceeds   In proportion  to  Its share
of the purchase cost.   (40 CFR 30.532)


Real Property Acquisition

EPA funds may  be used  to  purchase  real  property if  approved  by  the award
official.   It  may  be  used  only  for the purpose for  which it was purchased.
EPA's   approval  is required  to use the property  for other  Federally supported
projects or programs.   Otherwise, the property may be disposed of according to
EPA instructions,  with compensation in  proportion  to  Federal and non-Federal
shares .of the purchase price.  (40 CFR  30.535)

At  some NPL  sites,   EPA  may  determine  that  there is  a  need  to  acquire an
interest in the property.  If EPA makes this  determination,  it is the Agency's
policy  that  the  State  should  acquire  the  interest before  the   Fund-financed
action  can proceed.   AAUs  should ensure  that the  program and  State  staff  are
aware   .of   EPA's  regulations  on  real   property  acquisition  and disposition.
Other  special  Superfund property requirements are found  in  Appendix  T of State
Participation in the  Superfund  Program  (the "Purple  Book").
                                  -55-

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Equipment Purchase with CERCLA Funds

CERCLA's requirements  related to  equipment  purchase and  use differ  somewhat
from those contained  1n  40 CFR 30.  Therefore,  the  AAU and program staff need
to work together to ensure that all requirements are met.   Under  a Cooperative
Agreement,   a  State  purchasing  equipment  with  CERCLA funds  must  agree  to
allocate equipment costs  in  proportion to the  equipment's  use  on  the  project
being  funded.    The  State  must  also  agree  to submit  documentation  on  any
non-CERCLA equipment use  and  to reimburse EPA  for  any non-CERCLA  work..   When
the  work  is  completed,  the  State  must  comply   with  EPA Instructions  on
disposition  of  the  equipment.   Disposition   could   Include   returning  the
equipment to EPA  or  reimbursing EPA for the Agency's share for the equipment's
residual value.   For MSCAs,  the State must  agree  to allocate equipment  costs
among the projects  In  proportion  to the equipment's use on each.   If the State
Intends to use the equipment for projects outside the  scope  of  this Agreement,
the  State  must agree  to submit a  formula for  allocating  costs  for equipment
use, to obtain  prior  approval from  the  EPA Award  Official, and  to carefully
document all  use.  When the  equipment  is  no longer being  used for the CERCLA
activities  listed above,  the  State must agree  to  submit  documentation on  any
non-CERCLA equipment usage and to reimburse EPA for any non-CERCLA work.


Other Issues

Use of  Federally  owned property must be negotiated with the  award official.  A
lease agreement will be  required,  as  well  as  an  annual  inventory.   EPA will
advise on return of the property when the project 1s complete.  (40 CFR 30.536)

Contractors must  comply with  EPA  property  policies If  personal  property 1s
acquired with  EPA funds  and-the subagreement specifies that ownership rests in
the State or EPA.  (40 CFR 30.537)


3.1.7  Changing the Assistance Agreement

The  assistance agreement  can  be  changed  by   formal  amendment   or Informally
(e.g., by letter).  Minor  changes  in the project consistent with its objective
and within  the scope of work do not require a formal  amendment.   However, such
changes do  not obligate EPA  to pay  for  any costs in excess  of  the assistance
agreement unless  approved  in  advance.   (40 CFR  30.710)  A  formal  amendment is
required  to  transfer  the  award  to  another   recipient,   change   the  project
objectives,  assistance amount,  or  scope, or  to rebudget  between construction
and  non-construction  activities,  direct and indirect  costs, or  training  and
other cost  categories.   (40 CFR 30.700)


3.1.8  Project Audits and Closeout

Audits may  be performed  before  award,  during a  project, and  at  the conclusion
of  the  project.   States  must  comply  with  the  audit  requirements  of  OMB
Circular A-128,  which  requires an  audit every year in most cases.   (40  CFR
30.540)
                                  -56-

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If  the  Award  Official  determines at project doseout that the State owes money
to  the  Federal  Government,  the  amount must  be reimbursed.   (40  CFR  30.802)
Project records must be maintained as described In 3.1.3.


3.1.9  Noncompllance Measures

Noncompllance  with  the  assistance  agreement  can  lead  to  Issuance  of  a
stop-work order; withholding  of  payment;  suspension, annulment  or termination
of  the  agreement;  debarment  or  suspension as  an  eligible  recipient;  or other
administrative or judicial action.  (40 CFR 30.900)


3.1.10  Exceptions from the Regulations

EPA will consider  requests  for  exceptions on a case-by-case  basis.  A written
request for  an  exception must include  name, "assistance identification number,
date and amount of award,  section  of  the  regulation for  which  an exception is
requested, justification,  and a  statement of whether such a deviation has been
requested in  the past  and why.   (40 CFR  30.1003)   The Director  of the  Grants
Administration Division approves or disapproves the request.


3.1.11  Dispute Resolution

Disagreements should be  resolved at the lowest level possible.   If the dispute
cannot be resolved, the recipient/applicant may request  a review under Subpart
L procedures.   The EPA  dispute  decision official's  decision  Is final  unless
appealed 1n writing within 30 days.  (This is the  Individual  designated  by the
award official to resolve disputes concerning the assistance agreement.)


3.2  PROCUREMENT REGULATIONS

Recipients are  required to  meet procurement provisions  in 40  CFR 33.   These
pertain to  Items   such  as: free  and  open  competition;  small,  minority,  and
women's businesses; documentation;  and contractor  qualifications.  Some of the
provisions in Part  33  are noted  below.   Volume II  of State  Participation in
the Superfund Program discusses  Superfund-specific requirements.


3.2.1  Responsibility for Recipients

States must ensure  that  contractors perform in accordance  with all applicable
contract  requirements.   This  means   that  the  State  must  have  the  legal
authority to  enforce  the provisions  in   the  contract  and  that  it must  have
sufficient staff to periodically monitor  the  contractor's progress.   (40  CFR
33.210).   In  enforcing   the  subagreement provisions,  the  State  may  request
technical  and legal assistance from EPA;  but the  State  is  solely responsible
for enforcing the  subagreement provisions.
                                  -57-

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3.2.2  Contractor Qualifications

States may only  award  subagreements  to responsible contractors,  as  defined by
40 CFR 33.220.   This subsection specifies that a responsible contractor has:

     •   Financial   resources   and   technical   qualifications
         sufficient to effectively Implement the project;

     •   Resources  to meet the completion schedule;

     •   A  satisfactory   performance  record  for  completion  of
         subagreements;

     •   Accounting and auditing  procedures  adequate  to control
         property,  funds,  and assets;  and

     •   Demonstrated  willingness  to  comply with  requirements
         under  40 CFR 30.

In  addition,   no  contracts  may  be   awarded  to  contractors  who  have  been
suspended, debarred,  or  voluntarily  excluded under  40 CFR  Part 32.   States
must  ensure  that their contractors  comply with  the  appropriate  provisions 1n
Part 33 when the contractor awards a subagreement.


3.2.3  Code of  Conduct

States are required to have a written code  of  conduct for State  officials in
dealing with contractors.   This  code should stipulate  that  no State employee
may solicit or accept any  gratuities, gifts,  favors,  loans,  or anything of
monetary  value from  anyone who  has   obtained,  is obtaining,  or may  seek to
obtain subagreements from the  State.   The code of  conduct  should also protect
against conflicts  in  which a  State employee  has a share  in, or  could benefit
from,  any subagreement under State administration.  (40 CFR 33.270)


3.2.4  Methods  for  Procuring Assistance

40  CFR Part   33  requires  States  to use  only  four  methods  for  procuring
assistance:  formal  advertising;  competitive negotiation;  small  purchase; and
noncompetitive  negotiation.   Each of  these  must be conducted in  a manner that
meets  EPA specifications.   They are described in greater detail  below.

     •   Formal Adverti sing.   For  this approach,  the  following
         must be met:

             The State  must  draft a complete,  adequate,  and
             realistic specification  or  purchase  description  of
             what is required.
                                  -58-

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             There must be at least two  responsible  bidders who
             are  willing  and  able to  compete  effectively for
             the State's business.

             It  must  result  In  the award  of  a  fixed-price
             subagreement.

             Selection  of the  successful  bidder  must  be  made
             principally on the basis of price.

         This   approach   1s   used   primarily   1n   procuring
         construction services, for remedial  actions.

     •   Competitive  Negotiation.   Competitive  negotiation may
         only  be  used  If conditions  are not  appropriate  for
         formal advertising.   It  has been  used for  procuring
         services   in:  engineering   for  RI/FS  and  designing;
         construction management;  claims  management; operations-
         assistance; and bidability/constructability review.

     •   Small   Purchase.    These   may   be   used  only   for
         procurement  actions  not  exceeding  $10,000.   Recipients
         must  not  divide  a procurement  into  smaller amounts to
         avoid    the    dollar    limitation    for    competitive
         procurement.   Small  purchase  procurement   can  be  used
         when acquiring equipment, services,  and materials  that
         are under $10,000.

     •   Noncompetitive Negotiation.  This can  be  used  only if
         the other  three  procurement methods  are  inappropriate
         because:

             Products  or   services are  available  only  from  a
             single source;

             Public exigency/emergency;  or

             There is inadequate competition.

Award  Official  approval  and public  exigency or  emergency are  other circum-
stances justifying  noncompetitive  negotiation.   A  few  additional  restrictions
apply  to  these procurement methods.  A  State  may  not use  a method  other than
formal  advertising  to  procure construction  services  during  remedial  action
unless  it  has  the  approval  of  the  EPA Award  Official.   EPA  rarely approves
noncompetitive negotiation for use in the Superfund remedial program.


3.2.5  Promoting Competition

EPA's  regulation  requires that State  procurement  procedures  provide "maximum
open   and   free  competition."    States   are  prohibited   from  using  unduly
restrictive procurement practices, such as those listed below (40 CFR 33.230):
                                  -59-

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             Noncompetitive practices between firms;

             Organizational conflicts of interest;

             Unnecessary experience and bonding requirements;

             State  or  local  laws, ordinances,  regulations,  or
             procedures  that   give   preference  to   local   or
             In-state bidders;

             Placing  unreasonable   requirements  on   firms   1n
             order for them to qualify to do business; and

             Placing   unduly    restrictive   specifications   on
             firms, as described in 40 CFR 33.255.

3.2.6  Types of Subagreements

There  are  several  types  of  subagreements  possible  under  EPA  assistance
awards.  The two used most frequently are:

     •   Fixed-Price   Subagreements.    The   State   and   its
         contractor  agree  on  a  price  for  the  services  to  be
         provided.   The price  is  then fixed, no matter what the
         final   costs  of  the  project  are.   Total  cost  to  the
         State    is  changed   only   if  a   change  order   is
         negotiated.   A  fixed-price  contract   is  used  when  a
       .  project scope can  be  precisely defined, such as in the
         procurement of  construction  contractors  when  bidding
         documents include construction drawings.
         Cost-Plus-Fixed-Fee
         made  up  of  direct
         contractor  fee  are
         are used when  it  is
         scope of the  work to
Subagreements.    A  cost  ceiling,
              costs,  and a  fixed
              These  subagreements
                        define the
and  indirect
established.
difficult to accurately
be performed.
Other types of  subagreements  are
States are prohibited from using:
    also available.   There are two, however, that
         Percentage-of-Construction-Cost   Subagreements.    The
         price of a project  is established  as  a  percentage  of
         construction  costs.

         Cost-Pius-Percentage-of-Cost  Subagreement.    A  multi-
         plier,  which  includes a  profit,  is applied  to direct
         costs of a  project to determine total  costs.
                                  -60-

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3.2.7  Minority Business Enterprises. Momen's Business Enterprises

States  must consider minority business enterprises  (MBE)' and women's business
enterprises  (WBE)  when  awarding  subagreements and must  submit reports  to EPA
on  their  utilization  of these  firms.   States  must submit  Standard  Form 334
"MBE/WBE Utilization  under  Federal  Grants,  Cooperative Agreements,  and other
Federal  Financial  Assistance," within  30 days  after  the  end  of each Federal
fiscal  quarter  following  the  first  subagreement  award.   Each State  must also
negotiate  with  its Region  a  "fair  share"  agreement for  awarding  MBE and WBE
subagreements.  The State must either agree to a  specific  dollar  amount as its
fair   share   objective   and  Incorporate  that  amount  Into  the  Cooperative
Agreement,  or 1t  must  negotiate  a  fair  share  objective with  EPA  prior  to
procuring  supplies  or  services.   This  fair  share  dollar  amount  must  be
included on Standard Form 334.

In  addition  to this  regulation,  the Superfund  Amendments and Reauthorization
Act (SARA) amends  CERCLA  to require that EPA must report  annually  to Congress
on  MBE/WBE contracts for response  activities.   Therefore, States  must report
this information to the EPA Regions  every year.


3.2.8  Submission of Information

The State must inform the appropriate Department of  Labor  office  in the Region
of  construction  agreements  totalling  over  $10,000  a  year.    (40  CFR 33.211)
The following  information must  be  submitted  within  10  days  of  award  of each
construction  subagreement:  contractor data,  amount of award, expected starting
and completion  dates,  project number,  name,  and location.  In  addition, the
State  must  submit  a  list  of  all  bids  and  offers and .name of  each bidder and
offeror to the appropriate divisional Inspector General.


3.2.9  Documentation

States  must  ensure  that procurement  records  and  files   for  purchases  over
$10,000  include the  basis  for  contractor  selection,  basis  for   award  cost
(including price analysis under  33.290) documentation of  negotiation;  written
justification  for   selection   of  the  procurement  system,  for  use  of  any
specification that does  not promote maximum competition,  and for the  type  of
subagreement; and reasons for  rejecting  any or all bids.  (40 CFR 33.250)


3.2.10  Specifications

State's   procedures   for    establishing    specifications   must   meet   EPA
requirements.  (40 CFR  33.255)   In particular,  they must  incorporate  a clear
and accurate  description of  the  technical   requirements   for  the   item  to  be
procured.  The  specifications may  not  contain  features  that  unduly  restrict
competition  unless  necessary  for   a  special  test   or  demonstration  or  for
interchangeability   of  parts   or  to  promote  innovative  technologies.   The
specification  should  describe  the  item  qualitatively,  set  forth  minimum
essential  characteristics  if   necessary,  and  avoid   use of  detailed  product
specifications.   The use of "brand name or  equal" description is acceptable as
long as the salient requirements  that must be met are specified.
                                  -61-

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3.2.11  Bonding and Insurance

State  procurements  must meet  EPA requirements for  bonding  and Insurance.  If
construction subagreements  are  for $100,000 or less,  the  State's  requirements
may  be used.   The award  official  may accept  State requirements  for larger
subagreements  If  Federal  interests  are  protected.  For   subagreements  over
$100,000,  the  State must obtain a bid guarantee of  5 percent of the bid price,
a  performance  bond of  100 percent  of  the subagreement  price, and  a payment
bond  of 100 percent  of the  subagreement  price.   Bonds must  be obtained from
companies  holding  certificates  of  authority  as acceptable  sureties  (Treasury
Circular  570  "Surety  Companies  Acceptable on  Federal Bonds).   Recipients and
contractors must also meet  flood hazard area requirements contained In 40 CFR
Part 30.   (40 CFR 33.265)


3.2.12  Federal Cost Principles

State  procedures   for   determining  allowable  costs  must meet specified EPA
principles.   (40   CFR   33.275)   Allowable  costs  for  State   governments  are
determined  under  OMB  circular  A-87.   Contractors  and   subcontractors  are
governed by Federal Procurement Regulations (Title 48, Chapter  31 and others).


3.2.13  Cost and Price Consideration

State procedures must allow  for consideration of cost and price,  as  specified
by  EPA requirements.    (40  CFR  33.290)   A cost analysis  is required  for all
negotiated change orders  regardless of  cost  and all  negotiated subagreements
estimated  to  exceed  $10,000.   A  price  analysis   is required for  formally
advertised procurements  estimated  to  exceed  $10,000  if  there  are  fewer than
three  bidders.   Contractors  and  subcontractors  must submit   cost  or pricing
data in support of proposals for negotiated procurements.


3.2.14  Profit

Only  "fair  and  reasonable"  profits  may  be  paid  to  contractors  awarded
subagreements  under EPA assistance  agreements.   The  recipient is responsible
for  assuring  this  by negotiating  profit  as  a  separate  element  of  price  if
there  is   no  price  competition.   If  two  or  more   bids  are  received,  profit
included in a formally advertised,  competitively bid,  fixed-price  subagreement
shall be considered reasonable.   (40 CFR 33.235)


3.2.15  Model  Subagreement Clauses

40 CFR  33.1030 provides a  series  of  model  subagreement clauses  that must be
used by recipients  when  appropriate.  Among them are  topics  such as "Differing
Site Conditions,"  "Suspension of Work," and "Remedies."
                                  -62-

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3.3  OTHER ASSISTANCE PROVISIONS

3.3.1  Debarment and Suspension

Under 40  CFR Part 32, EPA will  not  participate In awards made  to contractors
that have  been  debarred or  suspended by  EPA.   The State  1s responsible  for
making sure  that  all  contractors hired under a Cooperative  Agreement have not
been debarred or suspended.


3.3.2  Letter-of-Credit Procedures

The type of  financing  used  most frequently  In  remedial  Cooperative Agreements
Is the Issuance of  a letter-of-credit from  EPA to the  State.  Once the letter
has been  Issued, the State may  "draw  down" the amount to cover  project costs.
The  letter-of-credit  drawdown procedures  can  be   somewhat confusing  to States
that have  never  used  them  before.   For  this  reason,  1t  1s suggested  that  a
State entering  Into  a Cooperative  Agreement for  the  first  time demonstrate
that It has  a thorough understanding of  these  financing procedures,  and  that
It will  use  Superfund  account numbers properly.   This provision will probably
not need to  be  addressed  when a  State  submits an  application for amending  a
Cooperative  Agreement, unless  the financing procedures  have  changed  since the
initial  agreement  was made.

States  should   include   a   letter-of-credit  provision  in  all  Cooperative
Agreement  applications  to  ensure  that  they  use Superfund  account  numbers
properly.   Then,  in expending  funds  from a  site/activity  account,  the State
must  draw  down   as  appropriate.   The  account  codes   shown  below  also  are
applicable when a State provides  management assistance  during  a Federal-lead
remedial  response activity.   For  example,  when  a  State provides  management
assistance during an RI/FS,  the State should charge all  activities to the "I"
account.    Likewise,  the  State  should    charge  management  assistance  during
remedial  design to  the "N"  account,  and  so on for each activity during site
response.

Appropriate wording  for this  special  condition is  shown below:

"In accepting this  Cooperative  Agreement, the recipient agrees  to the follow-
ing conditions for the  letter-of-credit method of  financing:

     •   Cash  drawdowns  will   occur   only   when   needed   for
         disbursements.

     •   Timely  reporting  of  site  disbursements  and  balances
         will be  provided,   as   required  by  the  EPA  Letter-of-
         Credit  Recipient's  Users Manual.

     •   The   same  standard  of  timing  and  reporting   will  be
         imposed on  secondary recipients,  if any.

     •   When a  drawdown under  the  letter-of-credit occurs,  the
         recipient will  show on the  voucher  (Form  TFCS-5805)
         the  Cooperative Agreement  number,  the appropriate  EPA
                                  -63-

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         account number,  and the drawdown  amount  applicable to
         each site/activity  account.   The  eighth  digit of  the
         account  number   is  the  code   for   the  appropriate
         activity assignment:

         J - Pre-Remedial  Activities
         L - Remedial Investigation/Feasibility Study
         N - Remedial Design
         R - Remedial Action
         S - Operation and Maintenance
         E - Removal Actions
         3 - State Liaison
         7 - General Support and Management

         (Note:   The  definition  of these  codes is  provided in
                 Appendix  A.)

     •   When funds  for a specific  activity have been exhausted
         but  the   work,   under  the   activity  has   not   been
         completed,   the  recipient   may   not  draw  down  from
         another  activity  or   site   account   without  written
         permission from the EPA Award Official.

     •   Funds remaining  in  an  account  after  completion  of an
         activity may  be  either  returned to  EPA or  adjusted to
         another activity  or site,  at EPA's discretion.

     •   Financial  Status  Reports  (SF-269S)  are to be submitted
         to an EPA  Award  Official,  and report  Information on a
         site- .and activity-specific basis as follows:

             Within  90 days  after  the   close of  each   budget
             period.   If  the budget  period  is longer  than one
             year the  report must  be  submitted annually,  based
             on  the anniversary date of the award;

             Within  90   days   after  the   completion  of   an
             activity, as  listed in d) above;

             Within  90  days  after  the  end  of  the  overall
             Cooperative Agreement.

Failure on the part  of the recipient to  comply with the  above  conditions may
cause  the  unobligated portions  of  the letter-of-credit to  be  revoked and the
financing method changed to a reimbursable basis."
                                  -64-

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3.4  POST AHARD COOPERATIVE AGREEMENT MANAGEMENT
3.4.1 Post Award Management
      (Reserved)

3.4.2 Audit/Audit Resolution
      (Reserved)
                                  -65-

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   CHAPTER 4:   PREAPPLICATION ASSISTANCE  AND ADMINISTRATIVE REVIEW  CHECKLIST


Chapter 4  contains  a checklist that Regional  AAU  staff may  use to  (1)  assess
States' capabilities to meet  general  assistance requirements; and  (2)  identify
Cooperative Agreement  special  conditions  that  will  help to ensure  the  fiscal
integrity of the proposed project.

Part  I of the  checklist  covers   the   preapplkatlon  assistance  phase.   It
Includes  a series  of  questions  to help  AAU staff  identify potential  Issues
regarding  general assistance requirements.   The questions focus on  both:   (1)
review  of  any outline  for  a Cooperative  Agreement  application   submitted  by
States; and  (2) discussions with  State  staff.  If any  Issues  are discovered,
they   can  be   tracked   during   the  review   of   the   Cooperative   Agreement
application.    The   preapplication  phase  of  the   checklist  can   provide  more
generic assessment  of  States'  capabilities.  Once  this section  1s  completed,
and AAU staff  are  satisfied  that the  State can meet certain  requirements, they
no longer  need to be concerned  with these items during the application review.

Part II of the checklist allows AAU staff  to  conduct an administrative review
of  the Cooperative  Agreement  application.   It contains  a  detailed  11st  of
possible  provisions  to  include  in  a  Cooperative Agreement.  The  reviewer, can
indicate whether a  provision is  already in  the application,  should be  put   in
the application, or  should  be  made a special  condition in  the  award document.
This portion of  the checklist  should  be filled out  prior to meeting  with the
State  to  discuss the adequacy  of the  application.   When completely filled out,
Part II of the checklist provides a complete record of:

     •   State assurances made  in the  application;

     •   AAU   staff  position  on  what   additional  assurances*
         should be  added to the application;

     •   AAU  staff   recommendation  on   any  special  conditions
         that  should be added to the award document.

     •   Agreements   reached by  EPA  and   the  State  on  any other
         revisions  to the award document; and

     «   Any   follow-up  actions  needed  (such  as  items  that
         should be  clearly monitored).

Once completed,  the  checklist  should  be signed by  the  AAU   staff  and included
as part of the official file.
     Assurances  are  what  the  State
     application.  Special Conditions
provides  in  its  Cooperative  Agreement
are added by  EPA in the Award  document.
                                  -66-

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                       SUPERFUND COOPERATIVE AGREEMENTS:
                      ADMINISTRATIVE MANAGEMENT CHECKLIST
                       PART  I:   PREAPPLICATION ASSISTANCE
Applicant: 	               Date: _
Program: 	           Name of Project: __
Type of Project: 	
Has recipient entered Into a SMOA with EPA?    Yes 	  No
If yes,  list any SMOA  provisions  that should be reflected  In  the Cooperative
Agreement:
1.  	
2.  	
3.  	
4.  	
5.  	
Does  the  SMOA  Identify roles  and  responsibilities  for  both  State  and  EPA
Regional   Program   Office   and   Assistance   Administration   staff?    Yes
No 	
If so, what are they?	
Is the proposed project listed in the SCAP?   Yes 	  No
Review of Outline on Draft Cooperative Agreement Submitted by State:
                                                             Yes     No
•    Are lead and support agencies identified?               	    	
•    Are responsibilities of each for document review
     and decisionmaking clear?                               	    	
•    Does it include appropriate general  oversight
     requirements?                                           	    	
•    Is the process  and timing for priority setting for
     responses described?                                    	
                                  -67-

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Revtew of Outline on Draft Cooperative Agreement (cont.)

                                                             Yes     No

•    Are responsibilities and participation of both State
     and Federal  Program Office and Assistance Administration
     unit (AAU)  staff described?                             	    	


•    Has the State self-certified Its procurement system?    	    	

•    Is the certification form Part A completed?             	    	

•    If not, does the State demonstrate Its compliance
     with EPA procurement requirements (40 CFR 33)?          	    	

•    Are there any procurement issues requiring
     further review?                                         	    	

     If so, what  are they?
•    Has the State  prepared a draft budget?

     If yes:

         Are Federal  and State costs for each activity
         Identified?

         Are costs  shown by object class?

         Is  the  draft budget consistent with the
         draft  statement of work.?

         Is  State  cost-share amount correct?

         Do  all  costs appear allowable  (eligible,  reason-
         able,  necessary,  and allocable) and consistent
         with OMB Circular A-87?

         Has the indirect  cost rate been approved  by
         the recipient's cognizant agency?
     If no:
         Does  the  State  have  the  information  it needs
         to prepare  an adequate budget?
                                  -68-

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Review of Outline on Draft Cooperative Agreement (cont.)

                                                             Yes     No

•    Project Narrative Statement:  does It have enough       	    	
     detail on the proposed activities to allow AAU
     staff to monitor progress (I.e., enough mile-
     stones)?
     If no, what type of information must be Included
     In the Cooperative Agreement application?
•    Statement of Work.:   Does it have enough information
     to allow AAU staff to monitor effectively?

     If no, what type of information must be included
     in the cooperative agreement application?
Discussions with State Assistance Administration Staff

Name and Title of State staff contacted:	

Agency/Address	

Phone Number
     Is the State self-certified?

     If yes:
         Based on discussions with State staff,
         does it appear that their procurement regulations
         comply with 40 CFR 33?

         If no, what provisions should be examined
         further?
     Is the State aware of all  40 CFR 30 and 40 CFR 33
     requirements (see Chapter  3 of "Managing a Superfund
     Cooperative Agreement")?
                                  -69-

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Discussions with State Assistance Administration Staff (cont.)

                                                             Yes     No

List  any  areas  where the  state  lacks  understanding  or may  have  difficulty
complying:
•    Has the State prepared a letter certifying the legal
     administrative authority of the applicant agency for
     this or a previous application?

•    Does the State have an intergovernmental review
     process, as per 40 CFR 29?

Based on review of application outline and/or conversations
with State staff,  what issues warrant further examin-
ation when the application is submitted?
     What Issues  need not be considered further?
                                   Name of AAU Reviewer:
                                  -70-

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                       SUPERFUND COOPERATIVE AGREEMENTS:
                      ADMINISTRATIVE MANAGEMENT CHECKLIST
                         Part  II:   APPLICATION  REVIEH
                                                          Date:
Applicant:	Program:
Assistance Agreement Number:_
         [CHECK ONE]  New	               Continuation,
                      Draft	.              Final	
Date Received by AAU:	
Date Sent to Program: 	
Type of Project:	
Was preappllcatlon assistance provided?                     Yes	   No 	
Did  results   of   that  review  indicate  any  areas   that  may  require  special
attention?  Yes 	   No 	
List:
PART I:  COMPLETENESS OF APPLICATION
                                                             Yes     No
•   All pages of application form filled out?                	   	
•   Narrative statement included with scope of work?         	   	
•   Intergovernmental  review?                                	   	
•   Certification letter signed by Gov.  or designee?         	   	
•   Authorized representative identified?                    	
                                  -71-

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PART II:  BUDGET INFORMATION
Was a draft budget reviewed during preapplication assistance?
If yes, review primarily for changes 8. response to issues raised.
                                                             Yes     No
Sections A and B:  Broken out by site and activity?          	   	
Section B:         Activities divided into object class      	   	
                   categories?
All numbers consistent with Statement of Work.?               	   	
If not, identify inconsistent areas:	
                                                             Yes     No
State cost-share required?                                   	   	
What percentage? 	
Cost share calculated accurately?                            	   	
Use of State credits identified?                             	   	
Are all costs allowable?                                     	   	

Identify any problem areas	
What is the indirect cost rate?
Are all identified enforcement costs allowable?
List any problem areas:	
                                  -72-

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SUMMARY OF BUDGET INFORMATION

Total Project Costs               $.
Unallowable Costs Identified:     $_
EPA Funds Requested:              $_
Non-Federal Funds Budgeted:       $_
Special Conditions Required for Budget Information:
PART III:  PROJECT NARRATIVE
Was a draft project narrative reviewed during the preapplicatlon phase?
(If yes, review primarily for changes and response to Issues raised.)
                                                             Yes     No
Does Site Description Include:
•   Background/history?                                      	   	
•   Current status                                           	   	
•   Purpose/objectives                                       	   	
•   How project will  be Implemented?                         	   	
Does Statement of Work Include:
•   A week-by-week implementation schedule?                  	   	
•   A description of  project scope?                          	
•   Detailed budget breakdowns for each object class
    category?
                                  -73-

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PART IV:  COOPERATIVE AGREEMENT PROVISIONS—REVIEW CHECKLIST (AAU Review)

                                                        Should
                                              Already   be         Should
                                              in        Added to   be a
                                              Appli-    AppU-     Special
                                              cation    cation     Condition
General Assistance Provisions (40 CFR 30):

•   Cost Sharing:

    Review Notes:  	   	    	
•   Recordkeeptng for State & Contractors:

    Review Notes:
    Access to Records
    Review Notes:
    Progress Reports:

    Review Notes:,
                                  -74-

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                                              Already
                                              In
                                              Appli-
                                              cation
Should
be
Added to
Appli-
cation
Should
be a
Special
Condition
    Financial  Status Reports:

    Review Notes:
•   Quality Assurance Project PIa_n:

    Review Notes:
    Financial  Management System:

    Review Notes'.
•   Property Acquisition (Real/Personal)

    Review Notes:
•   Property Management (Real/Personal):

    Review Notes:
                                  -75-

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                                                        Should
                                              Already   be         Should
                                              In        Added to   be a
                                              Appli-    Appll-     Special
                                              cation    cation     Condition
    Audits:
    Review Notes:
Procurement Provisions (40 CFR 33):

•   State responsibility for contractors:


    Review Notes:
    Contractor Qualifications:

    Review Notes:
    Code of Conduct:
    Review Notes:
•   Methods for Procuring Assistance:

    Review Notes:
                                  -76-

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                                              Already
                                              1n
                                              Appli-
                                              cation
Should
be
Added to
Appli-
cation
Should-
be a
Special
Condition
    Promoting Competitlon:

    Review Notes: 	
•   Acceptable Types of Subagreements

    Review Notes:       	
•   Minority Business Enterprises, Women's
    Business Enterprises:

         Fair Share Objective:

         Commitment to submit SF 334
         on a quarterly basis:
    Review Notes:
                                  -77-

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                                              Already
                                              In
                                              Appli-
                                              cation
Should
be
Added to
Appli-
cation
Should
be a
Special
Condition
    Submission of Information to EPA
    (If not certified):

    Review Notes: 	
*   Documentation of procurement records

    Review Notes:
    State procedures for establishing
    specifications:

    Review Notes:
*   Bonding and Insurance:

    Review Notes:
•   Federal  Cost Principles:

    Review Notes:
                                  -78-

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                                              Already
                                              1n
                                              Appli-
                                              cation
Should
be added
to
Appli-
cation
Should
be a
Special
Condition
•   Cost and Price Considerations:

    Review Notes:
*   Cost Sharing Assurances:

    Review Notes:
Other Provisions

•   Letter of Credit:
         Demonstrated understanding of draw-
         down procedures:
    Review Notes:
*   Debarment and Suspension:

    Review Notes:
                                  -79-

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Summary of Issues
What items should be added to the award document as "special  conditions?"
What State staff were contacted to discuss these Items?
    Name:
    Agency.
    Title:
    Telephone Number:
    Date Contacted:
Did the State staff protest adding any of these items as special conditions?
    Yes 	    No 	
If yes, which ones?
What was the outcome of these discussions?
                                .  -80-

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Follow-Up Actions

List  any  Items  or  potential  Issues  that  need  to  be  closely  monitored
throughout project  Implementation.  	
Name of AAU Reviewer                                           Date
                                  -81-

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                   APPENDIX A:   SUPERFUND ACTIVITY CODE LIST
                           FOR COOPERATIVE AGREEMENTS
3 -  PRE-REMEDIAL ACTIVITIES

     To be used  for  all  remedial  site efforts  from Inception  through  ranking
     for  the  NPL.   This  Includes  Initial  review of site  documents,  discovery
     and  notification,   initial  site  review,  preliminary  assessments,  site
     Inspections,  and NPL  ranking  activities.   Usually  charged to  accounts
     with "ZZ" In the Identifier position.

L -  REMEDIAL INVESTIGATION/FEASIBILITY STUDY

     Further  Investigate  extent of  problems  and provide  data  to define  and
     assess the  merits  of  alternative  remedial actions.  Field  data obtained
     are  used  to  support  design  and  enforcement.    Evaluate  and  analyze
     remedial  alternatives  and recommend a  cost-effective  approach.   Includes
   .  forward planning.  Also  used  for management assistance support  during  a
     Federal-lead RI/FS.

N -  REMEDIAL DESIGN

     Includes  all   costs  associated  with  design   efforts,   Including  the
     development of  final plans,  specifications,  and  documents   necessary  to
     implement  the   selected   remedial   action.    Also  used  for  management
     assistance support  during a Federal-lead RD.

R -  REMEDIAL ACTION

     Includes operable units where  minimum engineering design  services  are not
     required  to  prepare  bid  packages.    Also  includes  major,  long-term
     remedial  actions, involving Implementation, following design,  of remedial
     measures  and  construction  management  services  during remedial  action.
     Also used for  management  assistance support during a Federal-lead RA.

S -  OPERATION AND MAINTENANCE

     It 1s not  EPA's  policy to fund operation  and  maintenance  of  a  completed
     remedy.    EPA  will,   however,  fund  that part  of  remedial action,  for  a
     period not  to exceed  one  year, to  ensure that  the  installed  remedy  is
     operational  and  functional.   EPA  will  fund up  to 10 years of operation of
     such treatment or measures  involved  with the restoration  of contaminated
     ground or  surface  water  or until  levels that assure protection of human
     health and the environment are achieved, whichever occurs  first.   Both of
     these situations are considered part of remedial action,  and,  therefore,
     must be funded under the  "R"  code.

E -  REMOVAL ACTIONS

     Includes  all  costs  associated  with  the cleanup  or  removal  of  hazardous
     substances from  the  environment;  such  actions as may  be  necessary taken
     1n the event  or  the  threat of  release of  hazardous  substances  into the
                                      A-l

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                                                r
environment.  This  includes  but  is  not  limited
other measures  to  limit access, provision of alte
temporary  evacuation,  etc.   Other   costs  include
management;   documentation;   and   coordinatioi
Federal  agencies.
  security  fencing or
native water supplies,
 site-specific  removal
1th   State/local/other

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     environment.   This  includes  but  is  not  limited  to  security  fencing  or
     other measures  to  limit access,  provision of alternative  water  supplies,
     temporary evacuation,  etc.  Other   costs  include  site-specific  removal
     management;   documentation;   and   coordination   with   State/local/other
     Federal  agencies.

3 -  STATE LIAISON

     This activity includes assistance provided to State governments  that  have
     entered   into  an   enforcement   cooperative  agreement with  EPA  to  fund
     support, management  and oversight  costs,  pre-enforcement and  litigation
     at  sites  designated  as State  enforcement  lead  or  to  assist  States  In
     gaining   expertise   by  co-managing   or  overseeing   sites   with  Federal
     government lead.

7 -  GENERAL  SUPPORT AND MANAGEMENT

     Includes  all  support  and  management  costs  that   benefit  the  overall
     Superfund program's  management  including  all  approved  costs  associated
     with the Core Program.
                                     A-2

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