United States
Environmental Protection
Agency
Hazardous Waste Engineering
Research Laboratory
Cincinnati OH 45268
Research and Development
EPA/600/S8-87/049  Dec. 1987
Project Summary
Remedial Action Costing
Procedures  Manual

Brian Burgher, Mike Culpepper, and Werner Zieger
  The full manual provides  specific
procedures for the cost estimating and
economic analysis steps required for
preparing engineering cost estimates
for selecting remedial action alterna-
tives in response to the requirements
of the Comprehensive Environmental
Response, Compensation, and Liability
Act (CERCLA) and the National Con-
tingency Plan (40 CFR 300). The
manual  is designed to be used  in
conjunction  with  EPA's  manual
entitled Guidance on Feasibility Stu-
dies Under CERCLA. The audience for
this  manual includes EPA  Regional
Project Officers,  remedial investiga-
tion/feasibility study contractors, and
state and local remedial action person-
nel   and  other  Federal agencies.
Detailed procedures are provided for
generating estimated  capital and
annual operating  costs, calculating
annual costs and  present worth for
each remedial action alternative, and
performing sensitivity analyses of the
cost estimates to determine the impact
of changes to various  cost  input
parameters. Worksheets are provided
to assist  the  user in developing the
feasibility cost analyses. An example
cost analysis is provided to illustrate
these procedures.
  This Project  Summary was devel-
oped by EPA's Hazardous Waste Engi-
neering Research  Laboratory, Cincin-
nati, OH, to announce key findings of
the research project that is fully doc-
umented in a separate report of the
same title (see Project Report ordering
information at back).
Introduction
  As the number and scope of remedial
actions at uncontrolled hazardous waste
disposal  sites increase, there is a cor-
responding need for standard procedures
for preparing engineering cost estimates
for  proposed remedial solutions. The
National Contingency Plan (NCR) of 1982
outlines a general approach for conduct-
ing remediation  at Superfund sites. The
purpose  of the manual is  to provide
specific procedures for the cost estimat-
ing and economic analysis steps required
for the various remedial action planning
phases. These phases are:

• Preparing an initial assessment  of
  remedial action  alternatives to estab-
  lish a general cost for the remedial
  investigation/feasibility process and
  initial  remedial measures,
• Screening  remedial action alterna-
  tives  during  feasibility analysis  to
  eliminate those alternatives for which
  the costs are  substantially greater
  than other alternatives and yet do not
  provide a commensurate public health
  or environmental benefit,
• Preparing detailed cost estimates for
  feasibility studies to aid in selecting
  a remedial action alternative.

  The  full manual  presents procedures
and provides worksheets to accomplish
the cost analysis objectives of the
phases.  The  guidance presented has
been developed for generalized condi-
tions at  uncontrolled hazardous waste
disposal  sites. The user should modify
these  procedures  where necessary  to
accommodate site-specific conditions.

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   The anticipated audience for this
 document  includes  those  persons
 responsible  for  Superfund remedial
 actions: EPA Regional Project Officers,
 remedial investigation/feasibility study
 contractors,  state and local  remedial
 action personnel,  and other  Federal
 agencies. This manual should also  be
 useful to those  involved  in  planning
 state- and private-lead and voluntary
 actions,  particularly  to demonstrate to
 the public and other interested  parties
 that the  selection of a remedial action
 alternative was conducted  according to
 EPA approved procedures.

 Discussion
   Chapter 2 of the full manual addresses
 initial site planning cost estimating. Site
 response assessment  costing  is impor-
 tant  because it sets the tone for  the
 remedial  investigation and feasibility
 study, and gives a rough estimate of the
 level  of effort and funding  necessary to
 address site problems under Superfund.
 It is  a fairly  straightforward procedure
 requiring minimal  time and  effort to
 complete. It should be noted that these
 initial costs will be superseded by costs
 derived  during  the feasibility  study
 process.
   The purpose of Chapter 2 is to define
 the steps of  the  site response assess-
 ment process and offer guidelines as to
 how  costs for each of these steps may
 be derived.  With  this data the reader
 should be able to:

  • Construct a site response assessment
    report outline and identify  areas
    which require  estimating.
       • Assign order-of-magnitude costs to
         the applicable  sections of the  site
         response assessment report format.

       • Determine  total order-of-magnitude
         costs  for  site  RI/FS  activities  and
         remedial alternatives available at the
         site assessment stage.

         Chapter 3 describes standard proce-
       dures for preparing cost estimates for
       remedial action alternatives being eval-
       uated during feasibility analysis. Initial
       site planning cost estimating  efforts,
       discussed in Chapter 2, are based solely
       on existing  data  and are  performed to
       provide general cost data associated with
RI/FS activities.  Remedial Removal
measures,  and  remedial alternatives.
Feasiliby study cost estimating is aimed
solely at providing remedial altnernative
costs using information collected during
the investigation. The sections in Chapter
3  provide an overview of the costing
process for both screening and detailed
feasibility analysis of alternatives; proce-
dures for economic analysis; guidance on
the use of  sensitivity analysis; and an
example illustrating these cost analysis
procedures. Additionally, worksheets are
provided to assist the user to estimate,
analyze, and present costs for  remedial
action alternatives.
         Brian Burgher and Werner Zieger are with JRB Associates, McLean, VA 22102;
           Mike Culpepper is with CHtM Hill, Atlanta, GA 30339.
         Doug/as Ammon is the EPA Project Officer (see below).
         The complete  report, entitled "Remedial Action Costing Procedures Manual,"
           (Order No. PB 88-113 691/AS; Cost: $14.95.  subject to change) will be
           available only from:
                 National Technical Information Service
                 5285  Port Royal Road
                 Springfield, VA 22161
                 Telephone: 703-487-4650
         For information Donald Banning can be contacted at:
                 Hazardous Waste Engineering Research Laboratory
                 U.S. Environmental Protection Agency
                 Cincinnati, OH 45268
United Stales
Environmental Protection
Agency
Center for Environmental Research
Information
Cincinnati OH 45268
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