3605-0034     OSWER936000
                               8ALLAS, ~-:w
   REMOVAL COST MANAGEMENT MANUAL
               January 1985

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EPAX8605-0034
              PROTECTION
                A.O.P.NCY
             DALLAS, TEXAS

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I!
ACKNOWLEDGEMENTS
                            This  manual was prepared by the Roy F. Veston Head-
                       quarters Technical Assistance Team (TAT) under Technical
                       Direction  Document No.  138410-08 of EPA Contract No.
                       68-01-6669.

                            The EPA Project Officer for the manual was Jim Jowett
                       of the Emergency Response Division of the Office of Emer-
                       gency and  Remedial Response.  Special thanks is extended to
                       the many Regional On-Scene Coordinators, and TAT and U.S.
                       Coast Guard  Strike Team members for their cooperation in
                       providing  interviews and written comments.

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4

 f
                                               Preface
    This manual is designed to provide comprehensive cost management
procedures for use by the Environmental Protection Agency (EPA) at
emergency response actions (removals) authorized under the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA or
Superfund).  Specifically, this document should be used by the On-Scene
Coordinator (OSC) and other on-scene personnel designated by the OSC when
performing cost management activities at a Superfund removal site.

    This manual supercedes cost control procedures detailed in the June
1982 Cost Control Manual for Superfund Removals.  The guidelines and
procedures presented herein reflect CERCLA policy and guidelines under
the:

         •    National Contigency Plan (NCP), July 1982;

         •    Superfund Removal Procedures - Revision #2,
              August 1984;

         •    Delegations 14-1-A, 14-1-B, and 14-2 or
              delegation of removal authority to Regional
              Administrators, April 1984; and

         •    ERGS Users' Manual, October 1983.
Supplemental information can be found in these documents and in those on
the List of References at the end of this manual.

    Questions, comments and recommendations are welcomed regarding the
Removal Cost Management Manual and should be forwarded to the EPA
Project Officer for cost management:
                                  Mr. James Jowett
                                  Emergency Response Division :'WH-543-3)
                                  U.S. Environmental Protecnon Agency
                                  401 M Street,'S.W-.
                                  Washington, D.C. 20460
                                                   ii

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L
                                    TABLE OF  CONTENTS
LIST OF EXHIBITS	v
LIST OF ACRONYMS	vi

1.  INTRODUCTION	1-1
    1.1  Concept of Cost Management	1-1
    1.2  Approach to Cost Management	1-2
             2.   COST PROJECTION	2-1
                 r2.1   Prefunding Cost  Projection	2-1
                 2.2   On-going Cost  Projection	2-7
                      2.2.1  Cost Tracking	2-7
f                     2.2.2  Policy  Regarding Investigatory and Enforcement Costs  .2-11

             3.   COST CONTROL	3-1
. ,                3.1   General Cost Planning	3-1
II                     3.1.1  Identifying Non-Commercial Support Services
^                           and Response Equipment Available to the Region .  .  .  .3-1
                      3.1.2  Identifying Cost-Effective Cleanup Services
f*:    .                       Available to the Region	3-3
H                     3.1.3  Maintaining Field Safety Cost Information	3-3
                      3.1.4  Reviewing Past  OSC Reports for Cost Information.  .  .  .3-4
                 3.2   Cost Monitoring	3-4
                 3.3   Verification of  Contractor Charges	3-5
                      3.3.1  Verifying Personnel Charges	3-6
                      3.3.2  Verifying Equipment Charges	3-7-
                      3.3.3  Verifying Expendable Materials	3-7
                      3.3.4  Verifying Subcontractor Charges	3-8
                      3.3.5  Signing the EPA Form 1900-55	3-9
                      3.3.6  Certifying Vouchers	3-9

             4.   COST RECOVERY	4-1
                 4.1   Justifying that  Removal Actions are Consistent with the NCP  .4-1
                 4.2   Accounting for Costs Actually Incurred	4-2
                 4.3   Ensuring that  Costs are Reasonable and Allowable to cne
                      Project	4-2

             5.   COST DOCUMENTATION	5-1
                 5.1   Information ~o be Documented.   .,.,,    ,   	    .j-i
                      5.1.1  Chronology of Events and Decisions	5-2
                      5.1,2  Entry and Exit  of Personnel and Equipment.   ....    .5-&
                      5.1.3  Contractor Work Planned and Contractor Work
                            Accomplished	5-4
                      5.1.4  Contractor Costs	5-5
                      5.1.5  Site Conditions	5-5
                      5.1.6  Cumulative Project Costs	5-5
                                               iii

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                                     •TABLE OF CONTENTS
                                            (Continued)
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    5.2  Options for Documenting Costs	5-5
         5.2.1  OSC Log	5-6
         5.2.2  Detailed Daily POLREP	5-7
         5.2.3  Entry and Exit Logs	5-7
         5.2.4  Work Report	5-7
         5.2.5  Contractor Cost Report  --  EPA Form  1900-55	5-8
         5.2.6  Incident Obligation  Log	5-8
    5.3  Fulfilling Cost Documentation  Requirements	5-9
LIST OF REFERENCES
             INDEX
             APPENDICES:

             APPENDIX A:   EPA Action Memo Format  for Immediate Removals
             APPENDIX B:   EPA Procedures for  Initiating Immediate and Planned Removals
             APPENDIX C:   Federal  Government  and  TAT Personnel Rates
             APPENDIX.D:   Cost Projection Example
             APPENDIX E:   EPA Administrative  Procedures for Securing Assistance from
                          Other Federal Agencies  at Superfund Sites
             APPENDIX F:   Memorandum of Understanding Between the U.S. Coast Guard and
                          the Environmental Protection Agency
                                                IV

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                                      LIST OF  EXHIBITS
              2-1      Steps  to Develop  Prefunding Cost Projection  	  2-3

 '             2-2      Costs  Counted  Toward Project Ceiling and $1 Million
                       Statutory Ceiling 	  2-9

              2-3      Methods  of Obtaining Removal Cost Data	2-10

 ••           5-1      Cost Documentation Matrix	5-3

              5-2      Example  of an  OSC Log	5-11
 i;
 o
5-3      Example of a Detailed POLREP	5-13

5-4      Example of a Personnel and Equipment  Site Entry  and
         Exit Log	5-15
              5-5       Example  of  a Hot Zone Entry and Exit Log	5-16

 I            5-6       Example  of  a Work Report	5-17

              5-7       EPA Form 1900-55	5-18

^^           5-8       Example  of  an  Incident Obligation Log	5-21

 f            5-9       Example  of  a Cost Documentation Index	5-22~

              5-10      OPPM  Suggested File Structure  (Abbreviated)  	  5-23

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L
                        LIST OF ACRONYMS


AA       Assistant Administrator for the Office  of  Solid Waste  and
         Emergency Response, EPA

CDC      Centers for Disease Control

CERCLA   Comprehensive Environmental Response, Compensation,  and
         Liability Act of 1980  (PL 96-510)

CLP      Contract Laboratory Program

DPO      Deputy Project Officer, EPA

ERCS     Emergency Response Cleanup Services

EPA      Environmental Protection Agency

ERT      Environmental Response Team

FEMA     Federal Emergency Management Agency

FIT      Field Investigation Team

FMD      Financial Management Division,  EPA

FMS      Financial Management System

HQ       EPA Headquarters, Washington, D.C.

IAG      Interagency Agreement

IOL      Incident Obligation Log

MOU      Memorandum of Understanding

NC?      National Contingency Plan

NRT      National Response Team

ISC      On-Scane Coordinator

QSWER    Of fir,?, nf Solid Vasta  and Emergence Response,  EPA

POLREP   Pollution Report

RA       Regional Administrator, EPA

RRT      Regional Response Team, EPA

TAT      Technical Assistance Team, Roy  F.  Weston,  Inc.

USCG     United States Coast Guard

                                    vi

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                                           CHAPTER 1

                                         INTRODUCTION




!                 The Removal Cost Management Manual  outlines  a  comprehensive  cost

.             management system for use by the U.S. Environmental  Protection Agency

             (EPA) at emergency response actions  (removals) authorized  under  the

M           Comprehensive Environmental Response, Compensation,  and  Liability Act

             (CERCLA or Superfund).   This system  requires  that  specific on-scene cost
!
|            information be documented while offering  flexibility to  the OSC  in

,..           documentation techniques.   This manual  modifies  and  updates cost control

1            procedures detailed in the June 1982 Cost  Control  Manual for  Superfund

             Removals.
I
 I            1.1   CONCEPT OF COST MANAGEMENT

•P"             The purpose of on-scene cost  management  is  to  ensure  that public

 1
 *            funds are expended responsibly and  that threats to public health,

 1'           welfare, and the environment are  mitigated in a manner that  is consistent

             with Superfund and the National Contingency  Plan  (NCP).   In  addition,

 I            conscientious cost management strengthens the 7eaerai government's  claims
 i
             when seeking reimbursement  from responsible  parties  for response costs
 r
             incurred during a government-initiated CERCLA removal.



 tf~
                 •Jltimarsly,,  Jn-scane  Coordinators  ^OSCs) are responsible for ensuring

 1            that removal costs are managed and  documented adequately.  As the Federal
 s                                                              •
             decision-makers  on site,  OSCs are often summoned to  justify  actions taken

             and  funds expended under  their command.  Therefore,  it is essential that
                                              1-1

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             OSCs implement a program that ensures that resources are used effectively


             and efficiently and that adequate documentation exists to substantiate


             removal decision-making and expenditures.


t


j                 This manual offers guidance to OSCs on how to develop such a


             program.  Each chapter addresses one of the major elements of an


§             effective cost management program.  Chapter 2:  COST PROJECTION describes


             a method for reasonably projecting and tracking removal costs.  This will

r
I             aid the OSC in avoiding cost overruns and delays associated with seeking


             increases in the project's approved cost ceiling.  Chapter 3:  COST


             CONTROL explores ways to control on-scene costs through general cost


I    •        planning, monitoring contractor cleanup efforts, and verifying contractor


             charges.  Chapter 4:  COST RECOVERY describes the OSC's role in


L,           maintaining legally defensible records that can serve, when needed, to


             support cost recovery actions against responsible parties.  Finally,


             Chapter 5:  COST DOCUMENTATION provides suggestions on how to document


T             costs so that the information necessary for cost projection, cost


             control, and cost recovery is recorded in an easily accessible manner.


             4 list of references and appendices are also provided as support material


             to tne cost management system.





             :.2  APPROACH  TO COST MANAGEMENT


                 A basic ~aner of removal cost management is zhat costs can oe managed


1.            and documented most affectively from the removal-site command pest.  The


             best time to control and document costs is as they occur.  The primary


             responsibility of cost management rests with the On-Scene Coordinator.
                                              1-2

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                 Given the emergency nature of CERCLA removal  actions,  the demands  on

             the OSC's time and attention are great.   It is  understood  that the OSC

             alone will not be able to carry out all  cost management responsibilities,

             and therefore will delegate certain duties  to other on-scene personnel.
i
I             The cost management scheme outlined herein, therefore,  strives to achieve

             effective cost management without excessive paperwork and  duplication  of

H           effort.




                 The  success of the cost management approach is  largely dependent on

             detailed documentation of on-scene activities and costs.   It emphasizes

             the specific information necessary for effective  cost management, rather

L;           than the specific form for recording such information.



i
                 As a result,  particular attention should be given to Chapter 5,  which

             outlines the information that must be provided  by the OSC  for each

             removal  action.   This  information is required,  and  the OSC will be held

(             responsible for ensuring that the information is  recorded  in an easily

f            retrievable .and coherent manner.   To help OSCs  develop cost documentation

             suited Co tneir needs.  Chapter j  aiso outlines  various  documentation

(             tools available to the OSC for fulfilling each  information requirement.

             An  OSC may use any form or combination of forms to  document the required

'             information,  althougti  tne one fern that  is  required to be  completed xs

j,           the Contractor Cost Report (EPA Form 1900-55).  In  addition, each piece

             of  recorded information must be filed in an organized manner for future

             reference.
                                              1-3

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                 The cost documentation approach described herein provides the OSC the

             flexibility necessary to take into account site-specific conditions and

             personal management style when documenting costs.   For example,  some OSCs

'             prefer to place more emphasis on certain documentation options,  such as

             the OSC Log or the Pollution Report (POLREP).  As  long as the required

             information is documented, the manner of presentation is less important.

™           The choice of forms, therefore, is left to the discretion of the OSC.

,  ,           The specific information that must be recorded, however, is consistent

             for all removal actions.
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                                              1-4

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                                         CHAPTER 2


                                     COST PROJECTION
*





f                An OSC must be able to project costs  and  track  funds  expended to-date


.            in order to anticipate initial and on-going funding needs.  Prior to the


^            approval of a removal action, the OSC must  estimate the total project


W          cost (project ceiling) in order to request  sufficient  funds for the


            completion of the action.  Once a removal begins, the  OSC must keep an

f
)            accurate account of funds spent in order  to anticipate the need for


,            increases in the project ceiling and/or an  exemption from the statutory


'            $1 million dollar limit.  This chapter explains  the importance of both


t~          prefunding and on-going cost projections  and  suggests  methods for


            estimating and tracking costs.






            2.1  PREFUNDING COST PROJECTION
                                                                                   \

                The EPA Regional Administrator (RA) or  Assistant Administrator (AA)


            of the Office of Solid Waste and Emergency  Response (OSWER) will deter-


            mine whether to initiate a removal action under  CERCLA based on informa-


            tion provided in an Action Hemo prepared  oy the  OSC i.see  Apoendix A).  An


            important element of the Action Memo is a projection of the total project


            cost broken down into individual cost units ("e.g.,  Technical Assistance


            Team ''"AT}. Stare, Emergency Resnonse "leanup Services 'ERCS^., -PA intra-


            mural).  Once approved, the Action Memo's cost projection becomes the


            formal  project cost ceiling.  The overall'project ceiling is a formal


            limit that may not be exceeded without approval  of  the RA or AA, OSWER,


            as detailed in Appendix B.
                                             2-1

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                 An OSC may avoid the time-consuming approval process that accompanies

             ceiling increases by providing a reasonable prefunding cost projection in

             the Action Memo.  The following discussion suggests an optional 9-step

             approach for preparing prefunding cost projections (see Exhibit 2-1).

             Appendix D provides an example of this cost projection method applied to

             a hypothetical removal project.



                 Step 1:  Conduct a preliminary assessment.   Prior to developing an

             Action Memo, the OSC must assess the need for a Federal action in

             accordance with the NCP.  When conducting a preliminary assessment, the

             OSC must:


                      •    determine the location of the emergency, the
                           extent of contamination, the population at risk,
                           and all details of the situation that will define
                           the objectives of the removal action;

                      •    assess the immediacy and significance of the
|                           threat to public health and/or the environment,          '
                           as well as the precautions that must be taken for
                           the safety of response personnel; and

1                      •    identify whether a non-Federal party (or
                           parties) exists that is ready, willing, and able
f                      '  to undertake a proper response.


,                 Step 2:  Identify objectives of the removal action.  Using the

i             preliminary assessment, the OSC must define the objectives of the removal

             action.  These ob]ectives should identify vhat 
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                                       Exhibit  2-1
              STEPS  TO DEVELOP PREFUNDING  COST PROJECTION
r                                         Step 1
               Conduct a preliminary  assessment of work required  to mitigate the
                 emergency and/or  stabilize the site in accordance with the NCP
r
                                          Step 2
[                          Identify objectives of the removal  action
                                          Step 3
                                     Develop scope of work
                                          Step 4
r
                 Develop a wireframe  for the project, including time allotments
                                        for each phase
                                          Step 5
                Identify equipment and personnel requirements  for scope of work
                                          Step 6
               Determine cleanup contractor costs using ZRC3 ana  otner aommerciaJ
                  rates, and estimate waste transportation and disposal costs
                                          Step
                  Determine direct: £?A. otner Federal assistance  qnd TAT costs
                                          Step 8
                                     Estimate other costs
                                          Step 9
                                Calculate the project ceiling
                                           2-3

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                 Step  3:   Develop  scope  of  work.   After  the  objectives  of  the  removal

             action  have  been  defined, the  OSC  must  develop  the  scope of work  and

             decide  what  specific  tasks  must be performed.   Because  there  may  be

1             significant  data  gaps in the information  available  at this early  stage,

I             the  OSC must make assumptions  about  the nature  and  extent  of  the  tasks  at
i
             hand (e.g.,  the number of drums that must be staged and removed from  the

P           site or the  dimensions of a containment pond that should be

             constructed).  OSCs must use their professional judgment to make  the  best

             estimate  possible given the limited  information available.  At the

             inception of a removal project, the  scope of work should be developed

             independently of  cleanup contractor  input.
[
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                 Step  4:  Develop  a  timeframe  for  the project.  The project's  time
r
             frame will dictate whether  daily, weekly,  or  monthly  ERCS  equipment  races

             are  used  to  calculate costs.   Because monthly rates can  provide a

             substantial  savings for long-term  projects,  accurate projections of

             project length  are an important budget consideration.  Past  experience

             and  OSC reports are probably  the  two  best  sources  of  information  for

             determining  the amount  af time needed to complete  a project.   Site

             conditions  (i.e., hazards,  weather, and mobility of heavy  equipment) have

             in  Important bearing  on determining the length of  the operation.   Time

             mist be allowed for contractor aobil.isaticn,  decontamination,  and

             demobilization  during the project.



                 Step  5:  Identify equipment and personnel.  An OSC should  consider

             the  following factors when  determining the type and quantity of equipment

             and  personnel necessary to  accomplish the  objectives  of  the  removal:
                                              2-4

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                     •    availability of Federal personnel and
                          government-owned equipment;

                     •    availability of contractor specialized
                          equipment (i.e., drum grapplers, portable
                          effluent treatment systems, etc.);

                     •    safety requirements that limit the use of
                          personnel and/or equipment;

                     •    mobilization, decontamination, and
                          demobilization procedures needed;

                     •    necessary waste transportation and disposal
                          operations; and

                     •    local ordinances that require on-going
                          security, fire, and police protection at the site.


                Step 6:  Estimate cleanup contractor, subcontractor, waste

            transportation and disposal costs.  The ERGS contractor price list is

            the major source of information for obtaining rates for the various

            cleanup personnel and equipment identified in Step 5.  When appropriate,

r           it is important to include per diem expenses when estimating the  labor

            costs for the cleanup contractor.  For items not covered by the ERCS

|           price list, the OSC can refer to standard construction cost information
t *
            manuals, commercial price lists obtained from other contractors,  product
T~~
|           literature, and past OSC reports for cost information.  Because there are

            currently no negotiated -pries lists for wasta transportation and  disposal

            charges, the OSC must roughly istimata these costs based jn axperienca

            and pasr. DSC reports.
 r--«
A .


f"               To allow for unforeseen contractor expenses that may arise during a

            removal (i.e., discovery of additional hazardous materials and delays

            resulting from poor weather conditions or equipment failure), a

            contingency allowance of at least 15 percent should be added to the
                                             2-5

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             contractor cost estimate.  The specific percentage rate used for the

             contingency allowance must be determined on a site-by-site basis,

             depending on the particular conditions at each site.



                 Step 7:  Determine direct EPA, other Federal assistance, and TAT

             costs.   An estimate should be made of the costs for direct EPA, other

             Federal agency, and TAT assistance.  Labor rates for Federal Government

             and TAT personnel are listed in Appendix C.  Per diem and travel expenses

             for EPA personnel must be included.  The TAT rate (which is a national

             average) already includes per diem, travel, overhead, and fringe benefits.



                 Step 8:  Estimate other costs.  In addition to the expenses listed

             above,  there are many other costs that may affect the removal cost

             ceiling.  An analysis of previous removals has shown that these cost

             elements generally account for about 15 percent of the total project
                                                                    X
             cost.  Rather than estimate these costs individually, an OSC can add

             15 percent of the major costs (Steps 1-7) to cover costs that include the

             following:
                           support contractor costs,  including the
                           Environmental Response Team contract with
                           IT Corporation,  the national Contract Laboratory
                           Program (CLP), and the Field Investigation Team
'-,                    •    state and local agency sosts obtained by letter
                           contract or cooperative agreement;
r
'                      •    other external costs,  such as utilities,
                           materials,  right-of-way payments,  etc.;
4
                      •    indirect costs, including EPA Regional and
                           Headquarters management and administrative costs;
                           and

                      •    Regional laboratory costs.
                                              2-6
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             The OSC may believe that certain other projected costs will be unusually


             high at the removal site.  For this case, the OSC should individually


             estimate any "other cost" that is expected to be significant and include


             it in the subtotal of Steps 1-7 prior to calculating the 15 percent for


             all other costs.




 •               Step 9:  Calculate the prefunding or project ceiling.   The project


             ceiling should be the sum of all personnel, equipment and other costs


             estimated for the project (Steps 1-8).




 1            2.2  ON-GOING COST PROJECTION


 F               Removal cost projection does not end with the signing of the Action


             Memo.  On-going projection and tracking are essential elements of all


             removals.  OSCs must keep track of remaining funds in order to anticipate

^
•*-         the need for ceiling increases or an exemption to the $1 million


             statutory limit.  If a removal action exceeds the cost ceiling or goes


 /            over $1 million without an exemption, site work must cease immediately,


             and the site must be demobilized until the necessary approval has been


 1            received.  This delay may pose a serious threat to human health ind the


             environment.  Moreover, work stoppage and demobilization are costly and

 f
             an inefficient ase of Federal funds and personnel.  A reasonable on-going


             projection, however, can ,ielp 3SC.S avoid axceeaing statutory or pro jeer


             limits inadvertantly.


 r


                 2.2.1  Cost Tracking


                 The cornerstone of on-going cost projection is accurate daily cost


             tracking.  This cannot be over emphasized.   To estimate the funds
                                              2-7

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jt
remaining to complete a removal, the OSC must have a reasonably accurate

idea of the costs incurred to date.  Therefore, the OSC must develop a

system to track, on a daily basis, the costs being charged against a

project ceiling.



    The task of developing such a system is complicated by the fact that

many costs that count toward the project ceiling and the $1 million

statutory limit are not readily available to the OSC on a daily basis

(e.g., off-site Regional and Headquarters personnel costs).  As a result,

an OSC could exceed a statutory or project ceiling because of charges

beyond his/her direct control or knowledge.  Exhibit 2-2 summarizes the

costs that apply toward the project ceiling.



    As discussed in Section 2.1, data from previous removals demonstrate

that four major cost categories generally account for more than 85

percent of a removal's price tag.  These categories are:
 I                      •    cleanup contract (ERCS) costs, including
                            subcontractor charges such as transportation,
 i"7                          disposal and analytical laboratory costs:
 L
                       "    .support contractor costs, including TAT
 ,                           personnel costs;

                       •    other Federal agency personnel costs ''e.g.,
                            USCG Strike Team. TEiMA") •  -and

 t_                     *    ^?A direct; zos~s '«..j., intramural costs for
                            on-site personnel salaries, travel, per diem).
              Therefore, an OSC can derive an estimate of the cost-to-date of a removal

              by tracking the above four elements on a daily basis and adding 15 percent

              to approximately account for all other costs (i.e., indirect costs, other
                                               2-8

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                                           Exhibit 2-2

                      COSTS  COUNTED TOWARD PROJECT CEILING

                           AND  $1  MILLION  STATUTORY CEILING
Extramural Costs

     •    Clean-up contractor  and  consulting costs, including
          waste transportation and disposal, now provided
          principally under  the Emergency Response Cleanup
          Services (ERGS)  contractor system;

     •    Support contractor costs, including Technical
          Assistance Team  (TAT), Environmental Response Team
          contract with IT Corporation, national Contract
          Laboratory Program (CLP), and Field Investigation Team
          (FIT);

     •    Other Federal agency costs charged to CERCLA,
          generally U.S. Coast Guard (USCG), Federal Emergency
          Management Agency  (FEMA), and Centers for Disease
          Control (CDC), as  either ongoing  activities or through
          a site-specific  Interagency Agreement (IAG);

     •    State and local  agency assistance obtained by letter
          contract or cooperative  agreement; and

     *    Other costs sucn as  utilities, jaatariais,
          ri^nt-ox-way payments, ate.

Intramural 3osts

     "    ~£PA direct ;osts.  including cm-'sita ZP£ personnel
                is,  overtime.,  '-.ravel,  inti oer iiam:
 IT--
t
                           Direct  costs  incurred  by EPA s £nvironmentai
                           Response  Team;

                           Indirect  expenses,  including EPA Regional and
                           Headquarters  management and administrative costs and
                           fringe  benefits;  and

                          -EPA Regional  laboratory costs.
                                              2-9

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                                          Exhibit  2-3

                    METHODS OF OBTAINING  REMOVAL COST  DATA
                   Type of Cost
             Contractor
                                      Method  of Obtaining Cost
                            EPA Form 1900-55  from  cleanup contractor
             TAT
[
L
USCG Strike Team
Other Federal Agency/
Site-Specific
                            Multiply on-site TAT hours by the loaded
                            hourly rate  (see Appendix C).  The total will
                            be an estimate which includes salary, per
                            diem, travel, and overhead.
Strike Team will provide a daily cost
accounting upon request.
When an TAG for special assistance at  a site
is employed (e.g., a FEMA-managed temporary
relocation), the-agency representative should
be able to provide costs of the agency
services to date on a regular basis.
I

f-
State and Local
At the request of the OSC,  State and local
personnel will provide a daily accounting of
costs.^ (Total State and local agency costs
aay not ae available until  che and of "Me
removal acrion."
             EPA/ERT Intramural
                            Multiply on-site EPA/ERT hours by the
                            appronrzate  GS  oay  rare  'see  Aopendix
                            :idd ser  nem .and travel cost.3
                                            2-10

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             laboratory fees, and state and local agency costs).  Exhibit 2-3


             identifies the methods by which daily cost information can be obtained


             for the above four elements.  In addition, Chapter 5 includes a suggested


i             Incident Obligation Log (IOL) that is designed to help the OSC keep a


             running total of overall project costs and individual totals for each


             major cost category (e.g., ERGS, EPA, TAT).  The objective of this form


p           is to organize all cost information on a single sheet, thus allowing the
i

             OSC (or designated cost manager) to track costs toward the overall
I

1             ceiling and the individual category limits (ERCS, TAT, etc.)


             simultaneously.





|                2.2.2  Policy Regarding  Investigatory and Enforcement Costs


                 CERCLA exempts all investigatory and enforcement costs from the
/

             $1 million statutory ceiling and the overall project ceiling.  After a


             removal action begins, it can be difficult to keep separate on-site


             accounts for investigatory or enforcement-related activities.



i

                 In recognition of the difficulty of maintaining separate cost

^
             .accounts for enforcement and investigatory .activities, ;he removal


             program has adopted the policy that all on-site costs that are directed


             by the OSC and performed by response personnel after the removal action


             aas oeen approved ^re ;o be counted is response costs dna therefore are


             co be applied coward cne project cost ceiling.
                                              2-11

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                                         CHAPTER 3



                                       COST CONTROL







                The second element of cost management,  cost control,  ensures  that



            public funds are expended responsibly and that cleanup  resources  are used



f—          effectively and efficiently to avoid unncessary removal costs.  Cost



            control involves three primary tasks:


1

                     •    general cost planning;
!


I                     •    cost monitoring; and



                     •    verification of cleanup contractor charges.





            This chapter explores each of these cost control mechanisms  in turn.







p          3.1  GENERAL COST PLANNING



^              Cost control begins before the removal  action is  initiated by



            planning to ensure that the government secures whenever possible  the most



            cost effective services and equipment available.   This  section identifies



            a number of planning activities that an OSC should undertake to become an



f            effective cost manager.


I




                3.1.1.  identifying Mon-commerciai Support Services and Response

                        Equipment Available to the Region



                Often support services and response equioment may be available



            tnrougn "aaeral. State, IT local agencies at a lower  cost  than through



m          available commercial vendors.  To identify  least-cost resources,  an OSC



            can:
                                             3-1

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                      •    Review National, Regional, and State
                           contingency plans.  Contingency plans often  list
                           expertise and equipment available through
                           different agencies and, therefore, are an
                           important resource for the prospective cost
                           manager.  By reviewing existing contingency
                           plans, the OSC can identify the response
                           capabilities of organizations available to assist
                           the regional project  (e.g., member agencies  on
                           the Regional Response Team).  These plans may
                           also help identify non-commercial sources of
                           response equipment (e.g., emergency lighting
                           through a local maintenance department).

                      •    Identify responsibilities and roles that other
                           Federal agencies may play in response
                           activities.  As delegated in Executive Orders
                           12316 and 86735, a variety of Federal agencies
                           may be called upon by an OSC during the planning
                           or implementation of a response to provide
                           assistance in their respective areas of
                           expertise.  Appendix E provides a description of
                           the assistance other Federal agencies may offer
                           at Superfund response actions.

                      •    Review existing agreements with Federal and
                           State agencies for the performance and
                           reimbursement of Superfund-related activities.
                           EPA has negotiated several standing agreements
*                          with Federal and State agencies for the
                           performance and reimbursement of certain
                           Superfund-related activities.  Such agreements
[                          may take a variety of forms, including Memoranda
                           of Understanding (MOUs) or Interagency Agreements
f                       -   (lAGs) with Federal agencies and cooperative
                           agreements or Letter Contracts with States.  OSC.3
1                           should review existing documents 'such as the
                           January 4, 1982 MOU between the EPA and the  USCG,
                           reproduced in Anpendix F> to learn the terms of
l    .                       the agreements and the resources made available.
                           Tn addition, an OSC should become familiar with
                           cne procedures /or securing ^na compensating
(  •                         Federal .-ma Stats agencies for services rendered
 ~"                         on sire.  Appendix Z summarises cae -urrcnr
                           administrative procedures for procuring such
. "                          .services and includes an axpianation of SPA'j;
                           relationship with the USCG.
                                              3-2

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B
n
f
                3.1.2  Identifying Cost- Effective Cleanup Services Available

                       to the Region


                Designated ERGS contractors are responsible for providing cleanup



            services to EPA.  However, there are limited occasions when EPA may need



            to go outside the ERGS contract (e.g., when the need for an immediate



            response is so acute that it exceeds the response time requirements in



            the ERGS contract, or when a conflict of interest arises for the ERGS



            contractor on a particular removal action).  Under these extreme



            situations, the OSC must obtain authorization from the EPA Procurement



            and Contracts Management Division to use another cleanup contractor.  As



            a result, the OSC should maintain familiarity with the capabilities of



            other cleanup contractors in the Region.  Updated services and cost



            information should be requested periodically, and the service information



            should be verified whenever possible by Regional personnel.  (It should



            be noted that if a waste management facility, is to be used as part of the



            cleanup operations, the NCP requires that the facility be in compliance



            with Subtitle C of the Solid Waste Disposal Act, as amended by RCRA.)






                3.1.3  Maintaining Field Safetv Cost Information



                The level of protection required for workers on site will affect the
r
               -c of a removal action.  The OSC should, therefore, maintain cost
            information on .safety icmiument.  -.osr.3 of operating  -uid maintaining  chat



            equipment 'available' through ZRCS  ;ontractorn),  ina  ..nrormaEiion  in  the



            length of time required to r?erform cleanup tasks in  all levels of



            protection.
                                             3-3

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r
    3.1.4  Reviewing Past OSC Reports for Cost Information

    OSC reports from previous removals generally contain technical

information on field operations, a chronological history of the work

completed, and the costs incurred.  By reviewing these reports for cost

data associated with specific tasks (e.g., staging drums, regrading for

surface drainage), information can be obtained to assist with estimating

the costs of similar tasks at other removal actions.



    Costs in earlier OSC reports may not be directly relevant now that

the ERCS contracts are in place.  Also cost data in the more recent OSC

reports should be cross referenced to current ERCS rates.  Cost data

should be adjusted for inflation.



3.2 COST MONITORING
                                           ^-
    On-scene monitoring of contractor work is an essential feature of

controlling costs at Superfund removal actions.  Monitoring actions as

they occur can lead to significant savings by ensuring that:


         *    -ill vork is ionsisrant vim OSC instructions;

         •    the contractor uses equipment and personnel in
              the jnost cost-effective manner;

         •*    the quality of work ...s adequate ~o protect
              Duoiic aeaith, veifars,  ind the environment; and

         •*    oite worKers adhere co safety protocols and
              demonstrate common sense in their actions.


In addition, the cost monitor can support cost recovery actions by

verifying that a removal's price tag was not inflated by improper or

excessive use of contractor resources.
                                             3-4

-------
                 An OSC's ability to monitor site work adequately is determined



             largely by two factors:  (1) the number of personnel available to oversee



             contractor activities and (2) the number of removal activities (e.g.,



             diking, tank draining, drum staging) that occur concurrently.   The OSC



             should use available resources (i.e., EPA, TAT, USCG, and State



             personnel) to the extent practicable to ensure adequate oversight of



p           cleanup contractor performance.  At the OSC's discretion, non-Federal



             monitors such as TAT or State personnel may observe the contractor and
i


             report any suggestions or problems to the OSC.  Non-Federal employees



             such as TAT perform oversight functions; they only carry out the



             instructions of the OSC and give no direction themselves.  The OSC



*            should make every effort to be on site as much as possible to give proper



             direction.





                                                       s'

                 OSCs must use their professional judgment when deciding how to



             allocate their available personnel among competing site activities.



L,           Invariably, there will be pressure to use available personnel for



             important site duties (e.g., site safety officer and security officer) in



i             addition to cost monitoring.  The OSC, however, must not underestimate



             the importance of cost monitoring.  Indeed, full time supervision may  be



             reauired for certain high cost operations.







             3.3  VERIFICATION  OF CONTRACTOR CHARGES



j                 Under ERCS, the contractor must complete a daily Contractor Cost



             Report (EPA Form 1900-55),  identifying all charges that will be billed to



             che Federal government as a result of each day's service.  (See copy and



             description of EPA Form 1900-55 in Chapter 5.)
                                              3-5

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[
[
                The OSC verifies the EPA Form 1900-55 to confirm that contractor


            services were rendered as stated.  In doing so, the OSC confirms that the


            hours of work charged for personnel, equipment, and any other services


            are correct.  Rate verifications, however, are not the responsibility of


            the OSC (see Section 4.3).  Daily verification of the Contractor Cost


            Report provides a check on possible contractor oversights (and abuses).


            Verification also helps to avoid dispute of specific contractor charges


            in cost recovery actions (see Chapter 4).
                The  following  section describes  suggested methods  for verifying

             (1) personnel  charges,  (2)  equipment charges,  (3)  charges for  expendable

I            materials, and (4) subcontractor charges.   In addition, Section  3.3.6

             explains the procedures  for certifying  contractor  vouchers  and

             reconciling disputes over vouchers.

  v.  •

i,
                3.3.1  Verifying Personnel  Charges

:                Personnel  costs can  constitute a large  portion of  overall  removal

             costs and therefore should  be carefully documented.  The OSC or  other

1             designated on-site personnel can verify personnel  charges by routinely

             recording what  personnel are on-site, the duties that  they  perform,  and

             the \ength of  time that  they remain  on-sita.  This information can then

             he  -ross-referancad with tne oersonnei  "har.^es  orovideci  >n  "he UFA "oral

             1900-55.  The  reliability and effectiveness of  this  technique  is
•*•
i             dependent on how consistently personnel information  is recorded  and  how

             thorough the documentation  is.  Chapter 5 elaborates on how to log

             on-site personnel  activity  for  the purpose  of verifying hours  and costs
                                             3-6

-------
»
for all on-site personnel.  It is also important for the OSC to maintain

a record of personnel hours spent in the hot zone in order to verify

charges for contractor work hours in protective gear.




    3.3.2  Verifying Equipment Charges

    The OSC can improve the cost effectiveness of a removal by ensuring

that equipment charges are correct, and by understanding the ERCS

equipment rate schedule and adjusting work practices accordingly.




    The ERCS contract establishes hourly, daily, weekly, and monthly rate

schedules for the majority of equipment necessary on-site.  OSC decisions

on equipment standby and the length of a working day will dictate which

rates are used and how much the government is charged.  To verify that

equipment charges are accurate, the OSC or other designated on-site
                                           s*
personnel must prepare a record of what equipment was on-site, the length

of time that each piece of equipment remained on site, and whether or not

it was used.  See Chapter 5 for mechanisms to record equipment use.




    For more information on tne ERCS equipment rate schedule, consult the

ERCS Contract or the EPA Headauarters Contracting Officer.




    3.3.3  Vertfving Expendable Materials

    Charges for expendable materials are difficult to verify, as most

verification methods cost more in terms of time and money than are saved

in correcting errors in contractor charges.  However, periodic

inventories of expendable materials can be performed to verify contractor

charges for these materials.  The OSC should include a requirement in the
                                              3-7

-------
              Delivery  Order  for  the ERCS  contractor  to  provide  a  preremoval  inventory


              of  expendable materials and  subsequent  updated  inventories  on a regular


              basis.  The  OSC log should also  note  the arrival of  significant


              quantities of expendable items delivered to  the site.  The  OSC  or  other


              designated on-site  personnel can then verify these inventories  and use


              them  to substantiate expendable  material charges itemized in the EPA  Form


              1900-55.  For further information on  Delivery Orders,  see Chapter  4,  EPA


              ERCS  Users'  Manual,  October  1983.




                 3.3.4 Verifying Subcontractor Charges


                 The OSC  or  other designated  on-site personnel  must verify all  ERCS


              subcontractor charges claimed on the  EPA Form 1900-55  by carefully


              checking  subcontractor invoices.   Current  ERCS  contracts allow  for a

              handling  charge on  subcontractor charges by  ERCS contractors.

                                                       s


                 Under the ERCS  contracts, the authority  of  the Government to consent


              or  not consent  to the award  of any subcontract  rests with the OSC.


              Before consenting to the award of a subcontract, the OSC should ascertain


              liow and why  a particular subconrracror  »as aaiecTad,  including  .aeasuras

              taken to  ensure competition  and  reasonable prices.   The ERCS contractors

I              are required by the  terms of their contract  to  obtain  competition  to  the

              maximum pracricaoie  -ixranr.  and  ~o present r.o me  OSC  upon  demand  ;ne

r-<
              rssuici; of jucn competition,  ;ne record 01 price negotiations,  ana cne


"""             rationale for jsiection or every ^uoconrractor.
•
                                              3-8

-------
    3.3.5  Signing the EPA Form 1900-55




    Once the OSC has verified all the charges listed on the EPA Form




1900-55, the form is signed by the OSC.  The OSC can always refuse to




sign an EPA Form 1900-55 if it cannot be reconciled with the OSC's cost




documentation.  If a discrepancy exists, the OSC and contractor




representative should try to reconcile the difference.  If the difference




is irreconcilable, the OSC then refers the matter to the EPA Headquarters




Contracting Officer.








    Sometimes, actual costs may not be available and estimated costs will




be listed on the EPA Form 1900-55.  In such cases, the amounts should be




clearly marked as estimates, with "await bill" annotated next to the




estimated charge.








    3.3.6  Certifying Vouchers




    Each month, the ERGS contractor prepares a detailed voucher (bill) of




the actual costs incurred on site, a copy of which is sent to the OSC.




Contractor vouchers submitted for payment must be certified promptly by




the OSC.  Mote, however, ;hat certification of a voucher implies only




that the services have been rendered.  Certification does not represent




that invoiced costs are accurate, complete or reasonable.








    If chere xs & portion of tne voucher that cannot be reconciled with




che contractor, the OSC should certify the voucher except for the




disputed amount, clearly state what amount is and is not accepted, and




forward the certification to the Financial Management Division (FMD) in
                                 3-9

-------
Research Triangle Park, N.C.  A copy of this should be immediately




forwarded to the Contracting Officer, who can attempt to resolve the




problem or authorize FMD to withhold payment.








    General procedures for certifying ERGS vouchers are presented in the




EPA ERGS Users' Manual, dated October 1983.
                                 3-10

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                                          CHAPTER 4

                                       COST RECOVERY



                 The  on-site observation and  documentation of site conditions,

             response activities,  and response costs  are important for cost recovery

             actions  brought against responsible parties.  Essential evidence required

             for  a cost  recovery action includes the  following:


                      •    evidence of a release or substantial threat of
                          release of a hazardous substance;

                      •    evidence of responsibility of the defendant(s)
                          for the presence of the hazardous substance;

                      •    proof that the removal action taken was
                          consistent with the National Contingency Plan
                          (NCP);  and

                      •    proof of costs of  the removal action taken by
                          EPA.


                 The  OSC plays a critical role in observing, documenting, and

             preserving  the above  evidence.   In the role of overseeing the on-scene

i             cost management system, the OSC  is responsible in particular for the last

I'            two  kinds of evidence.  In addition, the OSC must ensure that the costs

             ire  raasonaoie and allowable -:o  the project,
r
i
                         tent with the NCP.  The determination of the removal action's consistency

             with the NCP is usually established in the Action Memo authorizing the

             removal  action.  Any  changes in  the scope or nature of the removal activ-

             ities must be collaborated in at least one of several documents, such as
                                             4-1

-------
               the OSC  Log,  POLREPs, or  a ceiling increase request memorandum.  A brief


               description of how  the  removal activity is consistent with the NCP should


               accompany  this documentation.




               4.2 ACCOUNTING  FOR COSTS ACTUALLY INCURRED


                   The  Financial Management System (FMS) which is maintained by the


               Financial  Management Division (FMD), is the Agency's official source for


               fund obligation and disbursement data.  Accordingly, the FMS is the


               primary  source of evidence for costs actually incurred at a removal site


               for cost recovery actions.  However, not all costs currently incurred at


               a  site are identified as  such in the FMS.  Examples include the TAT and


               Contract Lab  Program.




                   Ihe  cost  information  kept on site by the OSC is necessary to


               determine  if  additional cost information needs to be collected directly

t
               from other sources.  It is important to emphasize again that on-site cost


|               documentation is the primary source of information as to how and why


               costs were incurred at  a  removal site.




f               4.3 ENSURING THAT COSTS ARE REASONABLE  AND ALLOWABLE
,                   TO THE PROJECT


                   The  reasonableness  or ail charges oairi inder inv ieiiverv oraer xs
               ihe  responsibilitv of  r,he ^ontracring Officer,, aor ".he ^n-Scene


               Coordinator.  Mlowabilitv is another determination of the Contracting


               Officer.  The OSC has no authority to negotiate prices or rates, or to


               determine alienability of ,;osts.
                                               4-2

-------
                              CHAPTER 5




                        COST DOCUMENTATION








    Successful cost projection,  cost control,  and cost  recovery depend on




accurate documentation of important daily site information.  The  cost




management system in this manual focuses on required information




necessary to fulfill cost management goals.   It does not  establish




required forms that must be used to document this information.  The OSC




must ensure that the cost management and related  information, detailed in




Section 5.1, is documented every day when appropriate.








    The method used to document  the information must be consistent from




day to day at any one site.  The method of documentation, however, may




vary from site to site or region to region.   Each OSC is  responsible for




ensuring that the required information is documented, and that a




Documentation Index is prepared, thus indicating  where  to retrieve each




type of information (see Section 5.3).








    This chapter outlines the six types of cost information  that  must be




documented at %very Superfund removal site.   It also provides alternative




documentation tachniaues-








5.1  INFORMATION TO BE DOCUMENTED




    As mentioned above, the requirement of the on-s.cene removal cost




management system is to record and preserve  specific removal site




information essential for effective cost management.  Briefly, the
                                 5-1

-------
               required information necessary for proper cost documentation includes the

               following:


                        •    chronology of events and decisions;

i                        •    entry and exit of personnel and equipment;

                        •    contractor work planned/authorized and
                             contractor work accomplished;

l~                       •
V-t
c
                        •    contractor costs ;

                        •    site conditions; and

                        •    cumulative project costs.


                   On-scene information can be documented by the OSC and/or by other

               personnel who perform the specific job functions of cost manager, and

               safety and security officer.  The on-scene cost manager documents the

               chronology of events and decisions, contractor work planned/authorized

               and accomplished, contractor costs, cummulative project costs, and

               prepares the Documentation Index (see Section 5.3 for the Index).  The

               on-scene safety and security officer documents site conditions, and entry

               and exit of personnel and equipment.  When the scope of work is limited,

               the cast manager will double as the safety 
-------
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-------
.
why they were taken; problems encountered on-site and how they were




resolved; activities carried out by on site personnel; all meetings with




EPA managers, the contractor, elected officials, and the public; and any




accidents or incidents of exposure.








    A chronology provides an account of site activities for EPA




management, Congress, and the public.  It becomes a historical record




that may be useful for future removals.  It also serves to verify for




cost recovery actions that work completed was consistent with CERCLA and




the NCP, and to verify contractor charges.








    5.1.2  Entry and Exit of Personnel and Equipment




    The names of all personnel and equipment entering and exiting the




removal site and the dates and time of entry and exit must be recorded.




This information is instrumental in verifying ERGS personnel and




equipment charges.   In addition, entry and exit information of personnel




in the hot zone is recommended for site security and personnel safety.




In the event of exposure, the recorded entry and exit information can




heltJ :o identify personnel 'vho -Bignt Aave been exposed.








    5.1.3  Contractor Work  Planned and Contractor Work Accomplished




    The oontracror worx .luthor.-.sed by  :he 3SC -ausi: be ,-ecoraeci along vi*:ii
                 ,;ie suosequent aetai^. of wnat worK tne contractor accomplished.  When




                 recorded,  tnis inrormation can reconcile discrepancies and help to verify




                 the Contractor Cost Report (EPA Form 1900-55).   In addition, this




                 information is a historical record of daily cleanup progress.
                                                  5-4

-------
r
                    5.1.4  Contractor Costs


                    A recorded daily account of all  costs  incurred by the  cleanup


                contractor, including labor, equipment  costs,  and subcontractor  charges,


                is required in the ERCS contract.  Daily cost  information  is  a tool  for


                cost projection,  and is instrumental in cost recovery actions.   This


                information can also uncover inefficient or excessive use  of  labor and


                equipment.





                    5.1.5  Site Conditions


                    It is important to keep a record of weather,  ground  conditions,  and


                other physical conditions  at a removal  site in order to  justify  delays


                and other on-site problems.   Information on site  conditions can  also


                assist in protecting the health and  safety of  on-site personnel.

L



f~                 5.1.6  Cumulative Project Costs


                    All on-site project costs,  including those incurred  by the ERCS


^              contractor, EPA,  other Federal  agencies, and TAT  must be recorded and


                documented on  a daily basis.  Maintaining  a daily accounting  of  project


                costs provides data that can be used in cost; projections.  Daily


                accounting also reduces delays  and costs associated with work .stoppage

I
'                vhile the pro^ec* ceiling  is :inder review  for  in  mcraase  or  che


                II zillion ixempi:ion is seing ipprcvea.





                5.2  OPTIONS  FOR  DOCUMENTING COSTS


                    The information described in Section 5.1 can  be recorded  and


                preserved through a variety of  cost  documentation tools.   The forms


                listed and described below are  currently used  at  many removal actions:
                                                5-5

-------
                          •    OSC Log

                          •    Detailed Daily POLREP

                          •    Entry and Exit Logs

                          •    Work Report

 |~                       •    Contractor's Daily Cost Report --
                               EPA Form 1900-55

 ,                        •    Incident Obligation Log


                     Only one of these forms, the EPA Form 1900-55, is currently required

                 to be completed under the CERCLA removal program.  The other forms are

 i                optional mechanisms to record required site information.  EPA Regions and

                 OSCs have the flexibility to either use the forms presented herein, or

 I                design their own forms to best meet the needs of cost management and

                 documentation at a particular site.  To reiterate, documentation of the
 !
 (
 I                information presented in Section 5.1 is required, while the particular

^Ir             documentation techniques presented below*- (except the EPA Form 1900-55)

                 are optional.


 1
                     5.2.1  OSC Log

 *                   The OSC Log is 9 bound log with detailed daily antries about vork

 ,„              accompiisnea at a CERCLA ramoval sire, meetings held, decisions znaae,

                 etc.  A derailed OSC log can fulfill the following documentation

                 requirements:  chronology of =>,venrs -ina decisions, -iiirrv ina sxit of

                 3ersonne.t ina aauinmeni: -  -onrracror rork piannea/aut:ior.ir:eu ma

 "              contractor work accomplished, and sita conditions.  &n ^xampla of an

                 entry in a detailed OSC log is presented in Exhibit 5-2.
                                                  5-6

-------
                   5.2.2  Detailed Daily POLREP


                   A Pollution Report (POLREP)  may be prepared daily and can include


               extensive information about  activities on  a removal  site.   A POLREP  can


               be used to fulfill  the following documentation requirements:   chronology


1               of events and decisions,  contractor work planned/authorized and


               contractor work accomplished,  site  conditions,  and cumulative project


I               costs.   An example  of a detailed POLREP is presented in  Exhibit 5-3.





L                  5.2.3  Entry and Exit Logs

r
I                   A personnel and equipment  Site  Entry and Exit Log is a record of the


               entry and exit times  of all  personnel  (ERCS,  EPA, TAT, etc.)  and


               equipment on site.  Any person or equipment leaving  the  site for any


               reason, regardless  of the duration  of  time, must be  "logged out." A Hot


 |/~            Zone Entry and Exit Log may  be used to record all personnel entering and


'              exiting the hot zone  and  the level  of  protection worn.   These logs


               satisfy the requirement for  documenting the entry and exit of personnel


{/             and equipment.   An  example of  a  personnel  and equipment  Site Entry and


               Exit Log is presented in  Exhibit 5-4,  and  a Hot Zone Entry and Exit  Log


               is jhown in Exhibit 5-5.
                          Vorx rleocrt


                   The  'Vor'.c  Renort  -an  is  -is«d  to  document  -cntracror  voric  olanned/


               authorized  as well as  the contractor work  accomplished.  The Work Renort


               can  be used prospectively to detail work to  be performed by the


               contractor, vith  a summary  of work  completed added  at the  and  of the


               day.  It can  also be used to summarize oral  work  orders given  to the


               contractor  by the OSC  and to identify what work was performed.  If used


               prospectively,  it is suggested that the contractor  sign the order.  An




                                               5-7

-------
              explanation can also be provided to identify problems and changes in work


              planned/authorized and work accomplished.  A Work Report does not have to
 1

              be prepared daily if a particular phase or type of work is to be


              performed over a matter of days (e.g., drum staging).  An example of a

I
              Work Report is presented in Exhibit 5-6.






JL                 5.2.5  Contractor Cost Report —  EPA  Form 1900-55


r                 As previously mentioned,  the EPA Form 1900-55 is currently the only


              form required to be completed in the cost documentation system, and ful-


j             fills the requirement to document contractor costs.  This report is


              completed and signed by the contractor, and is then reviewed and signed


(             by the OSC.  The EPA Form 1900-55 includes contractor personnel


r             costs, equipment charges, expendable materials, and subcontractor


              cnarges.  A copy of an EPA form 1900-55 is presented in Exhibit 5-7.






                  5.2.6  Incident Obligation  Log


                  The Incident Obligation Log (IOL)  is used to chart cumulative costs.


              It provides daily tracking of all costs that are counted toward the total


              project ceiling.  It also tracks the .limits for individual ^ost


              categories (e.g.. ERGS, TAT,  EPA, and other Federal agencies).  An


              examole of in Incident Obligation I«Dg is presented in Exhibit 5-8,  The


              ioiumns 3n ;ne left l_isr, the  lanuiat-ve  ispenairuras -rnr sacn ".atagory


              (ERCS, EPA, TAT, etc.).  Daily costs are listed in the smaller boxes


              under the appropriate categories.  Cumulative costs are listed in the


              larger boxes.  The columns to the right list daily expenditures,


              cumulative expenditures and funds remaining on a daily basis.
                                               5-8

-------
c
              5.3  FULFILLING COST DOCUMENTATION REQUIREMENTS


                  The OSC is required to document  each  of the six. types of site


              information at a removal action.  The documentation method can


              incorporate any of  the  six forms presented here or other forms that the


              OSC considers  effective (but  always  including the EPA Form 1900-55).




                  The OSC or the  designated on-site cost manager must prepare a Cost


              Documentation  Index similar to  the one in Exhibit 5-9.  This Index serves


              to ensure that each piece of  required information has been documented.


              It also identifies  the  documentation method used, and where the


              information has been recorded.  Without a Cost Documentation Index,


              important site information that has  been  carefully documented may be


              difficult to find,  and  therefore may be rendered useless.


  r

^^^              Once the Cost Documentation Index is  completed, it should becoms part


  «--          of the  removal site document  file.   The Index becomes a key component of


  r           the file because it is  a record of exactly how site information was


              documented.  In addition,  the file must contain all of the information


              that has been  documentad is identified on cae Index (i.e., PQLREPS,
  (

              Entry/Exit Logs, EPA Forms 1900-55).
  (

  i

                  The :':ile structure  used it  ^.acn  removal -sica aust oe  lonsisrent.


              veil-organized ana  routinely  maintained.  Ideally, the site file


  *           .structure jhouid be consistent  with  the Regional file system.  The EPA


              Office  of Policy and Program  Development  (OPPM) (now the Office of


              Program Management) issued a  suggested organizational system for Regional
                                             5-9

-------
CERCLA files.  This file structure, however, appears to be more detailed

than would be necessary for a command post file at a removal action.  As

an alternative, the on-scene cost manager should consider utilizing the

abbreviated file structure presented below.  The file subjects are:



         •    Cost Documentation Index

         •    Action Memo

         •    Entry and Exit Log
                   Site
                     Personnel
                     Equipment
                   Hot Zone
                     Personnel
                     Equipment

         •    EPA Form 1900-55

         •    Incident Obligation Log (IOL)

         •    OSC Log
                                 /
         •    POLREP

         •    Work Report


It must be remembered that the cost manager will be responsible for

uaintaining th^s file on a daily basis whenever possible.



    Maintaining all relevant documents in the above orderly file system
office files.  £xnibir 1-LQ snows  in iDbraviation of  ;:ie  jPPM  .suggested

file .structure, indicating whers ;he jbove aiza documents anouid be

filed.  Complete, well-organized Regional files will  aid  in cost recovery

and facilitate review by the Inspector General's Office.  The  file system

will also provide readily accessible documents if an  OSC  is later called

to testify on a particular removal action.
                                 5-10

-------
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                                                                  5-12

-------
C
                          Exhibit 5-3

             EXAMPLE OF A DETAILED POLREP



                             POLREP

DATE : NOVEMBER 12,1 984

POLREP NUMBER: 10

NAME OF REMOVAL ACT I ON: ABC DRUM SITE, ANYTOWN,  NEW JERSEY

OSC: John Smith, Region II


SITUATION:

 Rain showers fast night have created some  mud  onsite.
 Weather today was partly c loudly, temperatures in the  SO's.
 Immediate Removal Action continues.

 Personnel on scene this date:

   ERCS contractor - 13
   TAT - 2
   EPA -1 COSC)
                             s
 RP has threatened to  deny EPA access to  site if  his  demands
 concerning site conditions  are not met.  OSC and Regional
 enforcement attorney  to meet 11/13 to discuss  the matter.  RP's
 actions have not impeded any cleanup work  to date.   Enforcement
 wi I I  seek court order granting EPA access  to site if necessary.
DSC
         wi ;h
sarnoiinq tf for
2 to 3 weeks.
                    geologist  ~o Di
                   Preliminary  'jsu
                                               cuss  -iiw  state's  qr ounawa
                                               ts  should b~  available wi
r~
        *a  1S6 >:u. /ds 501 t n*?&r  i 
-------
                           Exhibit 5-3
                           (Continued)
          Continue drum excavation staging and sampling.

i
I
 Await soil sample results to determine if  further excavation of
 soil near lagoon is needed.

 Evaluate disposal options for hazardous waste on site,  including
 10 drums of PCB still in warehouse.

COST TO DATE:

ERGS
TAT
EPA
Other
Nov. 12
* 9, 168
650
350
1 , 525
Total to date
* 95,200
6,368
1,751
15,498
 Total               *11,693               4118,817
 Removal action proceeding on schedule.
                             5-14

-------
                       Exhibit 5-4

        EXAMPLE OF A PERSONNEL AND EQUIPMENT
                SITE ENTRY AND EXIT LOG
SITE ENTRY AND EXIT LOG
Work S te
TIME
In













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   I   I
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Comments
                         5-15

-------
                                Exhibit 5-5

                EXAMPLE OF A HOT ZONE ENTRY AND EXIT LOG
I
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Work Site Date
TIME
In














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LEVEL OF PROTECTION














            J	I
        Comments
                                 5-16

-------
r
r
                                     Exhibit 5-6
                            EXAMPLE OF A WORK REPORT
                                   WORK REPORT
          Work Site
          Contractor

          Contractor Rep.
          Work  Planned/Authorized
          Equipment Planned/Authorized
Work Period

From    /  /
                                                          To
OSC
Work Accomplished
Equipment Used
          Comments
          Contractor Signature
          Date
OSC  Signature
Date
                                     5-17

-------
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                                          5-21

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                                          Exhibit 5-9
                       EXAMPLE OF A COST DOCUMENTATION INDEX
  K
•
                                   COST DOCUMENTATION INDEX
               Work Site

               Location —
                   INFORMATION REQUIRED
               Chronology  of Events and
               Decisions
               Entry  and  Exit of Personnel
               and Equipment
Contractor  Work Planned/
Authorized  and  Contractor
Work Accomplished
                                   Period of  Removal  Action.

                                   OSC	
                                        DOCUMENTATION TECHNIQUE
                                       D OSC Log

                                       O POLREP

                                       D Other.  Specify:.
                                       D OSC Log

                                       D Site Entry/Exit Log

                                       D Hot Zone Entry/Exit Log

                                       D Other.  Specify:	
O POLREP

D OSC Log

D Work Report

D Other. Specify:.
                                                        5? A "orm  1900-53  .mandatory,
               S •' * a Conditions
 m
               Cumulative Project  Costs
                                                      G Other. Specify:
                                      D Incident Obligation Log

                                      Q POtffSP

                                      D Other. Specify:	
                                           5-22

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r
                                         Exhibit  5-10


                   OPPM SUGGESTED FILE  STRUCTURE (ABBREVIATED)





                   A.   SITE OVERVIEW SHEET


                             •   Cost Documentation Index


                   B.   RESPONSE MANAGEMENT


                        1.   Technical/Engineering/Construction Work


                             •   POLREP


                             •   Action Memo


 T   .                        •   OSC Log


                             •   Entry and Exit Log


                             •   Work Report


                        2.   Enforcement


*-                      3.   State and Other  Agency Coordination


f                       4.   Community Relations

[/
                        5.   Contracts


                        5.   "-"inanci-il


                             •   Incident Obligation Log (IOL)


i                             •   EPA Form 1900-55
                                          5-23

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                        LIST OF REFERENCES
CERCLA - Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 - Public Law 96-510, U.S. Environmental Protection
Agency, December 11, 1980.

Characterization of Hazardous Waste Sites - A Methods Manual:  Volume I -
Integrated Approach to Hazardous Waste Site Characterization, EPA
Environmental Monitoring Systems Laboratory, Las Vegas, Nevada (to be
released 1985).

Characterization of Hazardous Waste Sites - A Methods Manual:  Volume II -
Available Sampling Methods EPA 600/484076. EPA Environmental Monitoring
Systems Laboratory, Las Vegas, Nevada, November 1984.

Cost Recovery Actions Under CERCLA, U.S. Environmental Protection Agency,
Washington, D.C., May 1983.

Emergency Response Cleanup Services Contracts (ERGS) Users' Manual, U.S.
Environmental Protection Agency, Office of Emergency and Remedial
Response, Washington, D.C., October 1983.

Emergency Response Division Policy Notebook, U.S. Environmental
Protection Agency, Office of Emergency and Remedial Response, Washington,
D.C., and EPA Regional Offices (this notebook is updated periodically as
new guidance becomes available*).

EPA Superfund Guidance Manual, U.S. Environmental Protection Agency,
Office of Emergency and Remedial Response, Washington, D.C., December
1981.  (This manual contains all current Superfund program policy
memoranda and publications, and is updated quarterly to reflect any new
Superfund directives.)

EPA Superfund Removal Procedures - Revision #2. U.S. Environmental
Protection Agency, Office of Solid Waste and Emergency Response,
Washington, O.J., -August 1984.

financial Management Officers User Manual for the Hazardous Substance
Response Program. U.S. Environmental Prorecraon Agency, Offica of
Emergency and Remedial Response, Washington, B.C., July 1982.

joidance an ?'irsu:uig  ,jsr lecaver" -iCT.ions  mcier "HCLri. J.3.
inv-ironmenrai ?roracri.on .igenc-.T  Jt'fica zx Inforcaraent.  Counsel md -he
Jffica of Solid .tas'ca ^nd Emergency Response, ^ugusc 1983.
Guide for Control jr Sovernroenc Property by Contractors. U.S.
Environmental Protection Agency, Office of Management Information and
Support Services, Washington, D.C., November 1981.

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             Interim Emergency Procurement Procedures for the Hazardous Substance
             Response Program - Revision No.  1,  Procurement and Contracts Management
             Division, U.S.  Environmental Protection Agency, Washington, D.C., January
             1982.

             Interim Standard Operating Procedures,  U.S.  Environmental Protection
             Agency, Office  of Emergency and  Remedial Response, Washington,  D.C., May
             1,  1981.   (This manual is designed  to furnish On-Scene Coordinators with
             criteria for selecting appropriate  safety protocols on a case-by-case
             basis  and as a  supplement to current Headquarters/Regional safety manuals.)

             National Oil and Hazardous Substances Contingency Plan (NCP), U.S.
             Environmental Protection Agency, Federal Register, Vol.  47, No. 137,
             Friday, July 16, 1982.

             NEIC Policies and Procedures, U.S.  Environmental Protection Agency,
             Office of Enforcement, National  Enforcement  Investigations Center (NEIC),
             Denver, Colorado, May 1978 (Revised December 1981), EPA-330/99-78-001-R.

             On-Scene Coordinators (OSC) Users'  Guide, U.S. Environmental Protection
             Agency, Office  of Emergency and  Remedial Response, Washington,  D.C., July
             1981,  (Revised  February 1982).

             Procedures for  Identifying Responsible Parties:  Uncontrolled Hazardous
             Waste  Sites - Superfund, Final Draft, Barrett E. Benson, U.S.
             Environmental Protection Agency, National Enforcement Investigations
             Center (NEIC),  Denver, Colorado, February 1982.

 v           Safety Manual for Hazardous Waste Site Investigations, U.S. Environmental
             Protection Agency, National Enforcement Investigations Center (NEIC),
             Denver, Colorado, September 1979.

             Superfund Site  Paper File Structure, U.S. Environmental  Protection
             Agency, Office  of Emergency and  Remedial Response, Washington,  D.C.,
             January 1983.

             Technical Assistance Team (TAT)  User's  Manual, U.S. Environmental
             Protection Agency, "5ffica jf Emergency -ina xansedia^ Response, Washington,
             D,C,,  October 22, 1982,

             Training Manual for SuperfundAdministrative Assistants, U.S.
             Environmental Protection Agency, Office of Emergency and Remedial
             ^esDonse.  Washington,  1.."?,,  oeoramber *.,  '.'J81.   ^Thxs provides  derailed
             uisrr-acr.ions ~:.a Juperfuna idministrar^ve Assistants in asraDiisning ana
                    ning 3 ioc:imenz controi register,  developing account numbers ana
                    g juperfund aoi^ars.,
r
             User' 3  "aide  zo  t:he  Z?A  Contract  Laboratory Program,  U.S.  Environmental
             Protection  Agency, Sample  Management  Office,  August  1982.

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                                               INDEX


              Action Memo, 2-1, 2-2, 4-1, Appendix A


              Ceiling increase request, 4-2, Appendix B
              Certification of vouchers, 3-9, 3-9, 3-10
              Contract laboratory program (CLP), 2-6, 2-9
,              Contractor Cost Report,  (EPA Form 1900-55), 1-3, 2-10, 3-5, 3-6,
                                                          3-S, 5-4, 5-6, 5-3,
                                                          5-18
              Cost
W                control, 3-1
                  documentation, 1-3, 4-2, 5-1, 5-9
                  documentation index, 5-1, 5-9, 5-22
                  documentation matrix, 5-3
,                  investigation and enforcement, 2-11
                  manager, 5-2, 5-9, 5-10
                  monitoring, 3-1, 3-4, 3-5
                  planning, 3-1
                  projection, 2-1, 2-3, 2-7, Appendix D
                       on-going, 2-7
                       Iprefunding, 2-1
                  recovery, 4-1, 5-10
                  tracking, 2-7
i

              Decontamination, 2-4       t   "
              Delivery Orders, 3-8
              Demobilization, 2-4, 2-7


              ERCS, 2-1, 2-3, 2-4, 2-5, 2-8, 2-9, 2-11, 3-3, 3-5, 3-7, 3-8, 3-9, 3-10,
                    5-5, 5-7, Appendix D
              Enforcement costs, 2-11
              EPA Form 1900-55 (see Contractor Cost Seoort^
              jixpencsoie aateriai cnarges, 3-7
              Zxrramurai C.QS~S, 2-9


              Federal government personnel rates, Anpendix C

              7ile Jtrucrure, f--?, 5-10
              ?TT '7iaid rnvestij;aticn ""aam"' , !-•>„ 2--?
              rMD (.Financial Management Division), 4-2
              FMS (Financial Management Systftsi), 4-2


              Hot Zone Entry and Exit Log, 5-7, 5-16


              IAG (Interagency Agreement), 2-9, 3-2, Appendix F
              IOL (Incident Obligation Log), 5-6, 5-8, 5-21
              Intramural costs, 2-9
              Investigatory costs, 2-11

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MOU  (Memoranda of Understanding), 3-2, Appendix F
Mobilization, 2-4
NCP  (National Contingency Plan),  1-1, 2-2, 2-3, 3-2, 4-1, 5-4
OSC  (On-Scene Coordinator)
     Log, 1-4, 5-6, 5-10, 5-11
     responsibilities,  1-1,  1-2,  1-3, 2-1, 2-4, 2-7, 2-11, 3-1, 3-4,
                       3-5,  3-8,  3-9, 4-1, 4-2, 5-1
OSWER, 2-1
Personnel and Equipment Entry and Exit Log  (see Entry and Exit Logs)
POLREP, 1-4, 5-6, 5-7, 5-9, 5-10, 5-13
Per diem, 2-5, 2-6
Preliminary assessment, 2-2
Project ceiling, 2-1, 2-7, 5-9
Regional Administrator, 2-1
Reimbursement, 3-2
Response equipment, 3-2
Response objectives, 2-2
Safety and Security Officer, 5-2
Site Entry and Exit Log, 5-6^ 5-7, 5-15
Standby procedure for equipment, 3-7
Statutory $1 million limit, 2-1, 2-7, 2-11
TAT, 2-1, 2-6, 2-8, 2-10, 3-5, 5-5
    personnel rates, Appendix C
JSCG, 2--3 ,  j-«*
    rabcoircracror ;nar^es ,  3-o
Work Report, 5-6, 5-7/5-17

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                                       APPENDIX A

                   EPA ACTION MEMO FORMAT FOR IMMEDIATE REMOVALS
r
t
L
            Source:  Superfund Removal Procedures - Revision #2 - U.S.  Environmenta1
                    Protection Agency, Office of Solid Waste and Emergency Response,
                    Washington, D.C., August 1984, Appendix 2.

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L
f.

ir
I
       EPA ACTION MEMO FORMAT FOR IMMEDIATE REMOVALS


     This memorandum format is to be used for documentation of threat pursuant
to section 300.65 of the NCP and is a record of decision for both HO and RA
approved immediate removal actions.

I.   HEADING

     SUBJECT:  Immediate Removal Request for the ABC Site, XY2 State —
               ACnCN MEMORANDUM


     Typical Memorandum Heading:

     FROM:     Cn-Scene Coordinator

     TO:        Regional Administrator

     THRU:     Regional Division Director as appropriate

               NOTE:  If the cost of the intnediate removal is expected to
               exceed SI million the Action Memorandum is addressed to the
               AA/CSWER, from the Regional Administrator, through the
               Director/CERR and to the attention of Director/ERD.

II.   PURPOSE
                            /

          Basic Statement of Request:  A short, narrative statement of the
     immediate removal request.

III.  BACKGROUND

     A.    Incident or Site Setting/Description

          '?ic~urs3, diagrams, .raps, ana/cr sxeter.es are encouraged, i
                    1.    Physical location - state the County (or Parish) ,
                         .nccrporatad unit; and State.  Give distances iron nearest
                         populated areas and points of rsfsrar.cs as acsrspriaca,
                         ^arsarai --laractsr -cf sita - descrisa  -~e jica"^  iay -prcoi-^
                         jraaa.  i,^,  .:r^ws. suited -iquxcs, lagccns, scntamir-aca
                         etc.  or; general nature of the incident - in the case of a
                         classic rsl^ase Jascrii» >jcw ihe incident occurrac.
                    3.    Waste management - describe any existing structures, measures,
                         or conditions that would either mitigate or accslsrsts ihe
                         release of »ny materials en site.  For instance, an unstable-
                         dike, a temporary containment system, adverse weather
                         conditions, site security,  fencing, and similar measures.
                          ~
                                             A-f

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          4.   Surrounding Areas - describe the areas adjacent to the incident
               or site in terns of nearby populations and ecosystems, and any
               areas protected by statute such as parks, historic sites,
               sensitive ecosystems, etc.

     B.   Quantity and Types of Substances Present:  Descrioe tne hazardous
          substances in terms of categories or classes of chemicals.   Those
          categories listed in the NFDC Consent Decree (also known as classes
          of priority pollutants) may be used as a convenient reference.   Any
          substances of critical concern (e.g. PCBs, dioxins) should be
          stated.  If estimates of quantities of the classes of materials are
          available, they should be given.

     C.   One sentence should state whether the site is on the NPL.  If the
          site is on the NPL, when later remedial action is expected.
IV.   THPEAT
     A.   Threat of Exposure to Public or the Environment:  The nature of
          the threat at the site should be described in detail, relating the
          threats to factors described in the National Contingency Plan
          section 300.65(a).  Any indications that all or any of the areas
          described in III (A) (4) above, may be exposed to hazardous
          substances should be described.  Compare amounts of hazardous
          substances shown to background or health standards as appropriate.
          (NOTE:  If the removal action will exceed the six-month/Sl million
          statutory limits, the factors in section 300.65(d) of the NCP must
          be addressed).

     B.   Evidence of Extent of Release:  Any contaminated surface water or
          drinking water wells, either private or municipal, should be noted
          as well as any obvious evidence of ecosystem damage.  If of f -sits
          monitoring has been performed (either air or water) the link should
          be made between subs tineas identified and "-hose en the site.
          Concentrations ot oc'f-^ite pollutants snouid ce -presentee in the
               .Tanner as fincse en-site.
     C.   Previous Actions to Abate Threat:  Any Federal, State,  local, or
          privately sccnscrad activities that have ba«n carfcrrsd should be
          sriafl  -1escr:.oacS and  -".e iates. costs, ina -^'factiveness  22  sucr,
                       ci be ^z
     0.   Current Actions to Abate Threat:  Any Federal, State, local, or
          privately sponsored activities tnat are currently  underway snootd
          be briefly described.  The estimated costs  and completion dates of
          these activities should also be given,  if  the 6 month  time clock
          has started, note when the 5 months ends.
                                    A-2

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        V.   ENFORCEMENT (This  information should be referenced  here as  "see
                          attachment" and placed on a separate page entitled
                          Enforcement Sensitive)

             A.   Active/Inactive:  Surrearize the enforcawnt strategy for notifying,
                  negotiating,  and litigating against responsible parties.  The
                  statement should tell whether the State or Federal enforcement
                  attorneys are actively pursuing informal  negotiations, are actively
                  pursuing iicigation, or nave deciaed  to postpone or not pursue
                  litigation.

             B.   Status of Notice Letters/Negotiations:  A statement should be made
                  giving the date(s) that notice letter(s)  were  sent and a suimary of
                  responses of  the recipients.  If negotiations  are underway, describe
                  the activities under discussion.  A projection should  be made on
                  whether to expect responsible party action, or feasibility of
                  issuing an Administrative Order.

        VT.  PROPOSED PROJECT AND COSTS

             A.   Objectives of the Project:  A shore statement  should be made
                  describing the specific tasks involved and the results sought by
                  the removal action as they pertain to the threats(s) discussed
                  in IV.

             B.   The estimated total'project ceiling and an itemized breakout of the
s                  following cost categories which comprise  that  ceiling: extramural
*                  costs  allowed under the RA's $1,000,000 authority  (consisting of
                  cleanup contractor costs, letter contracts with  States, and site
                  specific LAGs), TAT costs, intramural costs, National  Contract  Lab
\S                 Program analytical costs and ERT/EERU costs.   For example, the  RA
                .  may set a total project ceiling in the following manner:

                  Claarup Contractors                                 375C,uCG
                   La-c-sr OCT. cracks  for prccuranenc */ State               :,JGG
                   Interagency agreement                                  7,000
                   IAT ccscs                                              iO,JGC
                   NCLP analytical services                               "20-CCO
                   iTtcramurai  :"iC and
                   \*  any CS3CLA funds  have  alrsady baer. allocated for ihis size, give
                   the anount  and tasks involved.   Indicate obligations to date if
                   appropriate.

              C.    Project Scnedule:  The estimated period of psrfscsanc* should be
                   given.

              D.    If  applicable, describe how actions will be consistent with
                   ranedial plan.
                                              A-3

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VII. REGIONAL FEO»ENDAXICN

     Use a paragraph such as; "Becaus« conditions at the XYZ Site meet the
     NO» section 300.65 criteria for an immediate removal, I reconrend your
     approval of the immediate removal request.  The estimated total project
     coats are SX, of which SY are for extramural cleanup contractor costs.
     You may indicate your approval or disapproval by signing below."  If
     the immediate removal will exceed tha six month/Si million statutory
     limit(s), cite specific criteria of NCP section 300.65(d).
     Approve:             _                     Date:


     Disapprove:  	  Dates
                                      A-4

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                                          APPENDIX B

               EPA PROCEDURES FOR  INITIATING IMMEDIATE  AND  PLANNED REMOVALS
  i

•
               Source:  Superfund Removal Procedures  - Revision #2 -  U.S. Environmental
                       Protection Agency, Office of  Solid Waste and  Emergency Response.
                       Washington, B.C., August 1984, pp. 10-22.

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L
f.
            EPA PROCEDURES FOR  INITIATING  IMMEDIATE AND  PLANNED REMOVALS
     As noted in Section A, the NCP seta forth criteria for determining
whether a release qualifies for an immediate or planned removal.  Further,
the NCP establishes a procedural framework for arriving at that determination.
This chapter provides detailed guidelines to response personnel on how to
apply the NCP framework.

     1.   Conducting the Preliminary Assessment

     The NCP requires a preliminary assessment of reported releases before
initiating a CZRCLA-financed response.  The purpose of the assessment is to
provide an initial indication of the need for a Federal response, in the form
of an immediate removal, planned removal or remedial action.  If the reported
release potentially requires an immediate removal, the CSC should conduct the
assessment as promptly as possible, based on readily available information.
Other releases shall be assessed as scon as practicable.  The preliminary
assessment may include:

          a.   Evaluation of the magnitude of the hazard;

          b.   Identification of the source arid'nature of the release;

          c.   Determination of the existence of a non-Federal party (or
parties) that is ready, willing and able to undertake a proper response;
and                  '                                  "

          d.   Evaluation of factors necessary to determine whether an
immediate removal is necessary.

     The NCP notes that a preliminary assessment at a hazardous waste
management facility may involve the review of data and photographs, personal
interviews, a perimeter (off-site) inspection and, where needed, an on-site
inspection if conditions are such that it may be performed safely.
                       g vie assessment:, v» CSC jncuid aecsraine «netner  -Te .-
             potential release involves a designated hazardous substance or a
             icn-designatad pollutant: cr contaninar.t .  CZXTlA raquirsa criat trie
             or threat of release of pollutants and contaminants may present an imminent
             arc; jucstanc.ajL iancer -.3 •puciz.c :ieai— t 3r -.e^-jars oercra rssnanse ^ar. is
                  A preliminary assessment snould be terminated when the CSC determines:
             there is no release; *±se source rs ^either ^ vessel nor * facility? the
             release involves neither a hazardous substance, nor a pollutant or contaminant
             that may pose an imminent and substantial danger to public health or welfare;
             the amount released does not warrant Federal response; a party responsible
             fcr ihe release, cr any ocner person, is providing appropriate response, and
             on-scene monitoring by EPA is not recontnended or approved, or the assessnent
             is complete.
                                              B-1

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     Vtwn th* cotpleted preliminary assessment indicates tne potential  need
for an uawilate  removal,  the 06C should further determine tr.e appropriateness
of the uanediate  removal using the decision rationale set forth  in  Section
C.2 below.  ttien  the preliminary assessment indicates tnat a planned  removal
may be appropriate, the C6C should conduct an evaluation and determination
of appropriate  response as required by the NCP and described in  Section  C.5
of this document.

     2.   Recommending  an  Immediate Removal

     If a preliminary assessment has indicated the potential need for an
immediate removal, the  06C must further determine the appropriateness of a
Fund-financed immediate removal and whether the response will require SA or
HO approval.  The following decision rationale is suggested for  use by  the
OSCs when further evaluating the need Cor an immediate removal action (also
see Appendix 1) and preparing an action memorandum as described  in Appendix 2.
This action memorandum  replaces the 10-point document previously required.

          a.    Initial  Qnergency Screen

          This  step  is  designed to facilitate responses to clear-cut,
time-critical emergencies  for which only limited data are available,   in tnose
cases, CSCs may have to rely primarily on the findings of the prelimiir.ary
assessment, without significant additional data collection.  Nevertheless,
the analysis and  interpretation of that data must be sufficiently rigorous  to
document that the immediate removal action would oe consistent with the SCP.
Factors the CSC snould  consider are the characteristics of the  incident, v.e
substances  involved, the prooacle impact of the release on public health arxl
environment, and  selection of a mitigative action.  Most of  these  incidents
will fall within  the RA's  authority, as outlined in Section C.3.a below.   It
the incident falls outside tne RA's authority, the Region should rotify HO
that an LTinediate removal  request requiring quick approval will  be  fortr.ocrurc.
Procedures  for  HQ approval are set forth in Section C.3.3. cf this  iocumert.

          -•    Health/Environmental Ttvreat
           '^•.sre  ^~.a CSC "las ^
a ^ore tr.crougn  analysis of the nealtr. and er.vircnner.tai  tr.reats  •».•;.,
tr.rcugn  f'jrtr.ar  j«anpi^ng and analysis) --i.il r« pcssxbla rs:cr* reccnrner--;-c
a CERCLA response.   In conducting tr.is analysis, tne  CSC  snouid ccr.siier v.e
vuraar factors our.nrved :n ir.a =airp_e ac_icn r«mcrar.c;um  •..-. -jypancix ^  sucr.
-ss  -"rsac  -,z  -~a cuc_-- .'eaj.tr. or zr.a -ir.v.rcrsisr.T:.  inc  -~a -ixusr.t :~ -"-a
                                   B-2

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                       c.    Potential  for Non-Federal  Action

                       The Agency does not intend  to conduct a CERCIA-financed umediate
              removal where tiaely action by a potentially responsible party is expected
              or  the response is within the independent financial or technical capabilities
V             of  State and local agencies.   Thus, after characterizing the threat"and
,-             ascertaining that it meets the NCP criteria  for an immediate removal,  the
I              CSC should examine the  alternatives to a  CERCLA removal action.   Factors to
              consider are the status of enforcement actions  and the ability and willingness
              of  State and local agencies to take action.

f                      d.    Recaiinendation of Response Action
E

t
          If the review and  analysis  conducted in steps b and e above verify
the need for a CERCLA  immediate  removal,  the  OSC next should identify and
evaluate response options.   These options should be directly related to
mitigation of the release threat or threats.   Factors to be considered include
the technical feasibility and probable effectiveness of each alternative, the
duration and cost of each response option,  public acceptance, opportunities
for State and local participation, and legal  implications.  Based on this
analysis, the CSC should select  the preferred cleanup option for mitigation
of the threat.

     3.   Initiating the immediate Removal

     After selecting a preferred immediate removal response action, the CSC
must obtain the appropriate  Regional  or HQ approval to coiroence the immediate
removal.

          a.   Regional Authority and Approval Procedures

     Cn April 16, 1984, the  Deputy Administrator signed a new delegation of
authority to Regional Administrators  (RAs)  concerning the selection and
performance of all removal actions costing up to 31,000,000 (see Appendix
*:„  3y ^a.agatisr. .4-i-A, 3A's  ray approve remcva. actions jesting -o cc
31,000,000 •iiat arst 1; -expectac :s  last  up :o 6 .-acntr^, 2! <5xpectsc, iron
the outset of the project, to last longer than 6 months and 3) expected
originally :c -as* jp  co 5 jonsna, Jut ars .acsr iacamuned ;o require
continuation.  Thus, in addition to the SI  million approval authority, this
       iz.cn disc ;ives  ^Ifts me autncrity  *.c ^ranc axemcrz-ons 10 tr.e '-, rscncr.
       se« Section 1 ~f  --.is -:oc.^nen- for ^xancnon
                  With tnis delegation  SAs  are  authorized to initiate removal actions for
             releases at both National  Prioritiss  List (MPL)  sites and ncn-VFL si^ss :.-.
             accordance with the criteria of  the NCP.   RAs may redelegate to their Division
             Directors the authority to approve expenditures up to 51,000,000 for projects
             lasting up to 6 months.  Further,  RAs may redelegate to CSCs authority to
             approve actions costing up to  550,000.   Removal actions costing more dwi
             31,000,000 and continued removal actions after obligations of $1,000,000 must
             be approved by the AA, OSVER in  accordance with Delegation 14-2, described in
             Section C.3.b of this document.
                                              B-3

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          the RA approves an immediate removal, he/she should .make the
deterainatioo that the criteria established by Section 300.65 of the NCP
have been net.  These criteria are also discussed in Section A of this
guidance.  Coordination with Regional enforcement and remedial staff is
important to assure that appropriate enforcement actions and/or subsequent
ranedial responses are initiated.

               (1)  The RA has the authority to obligate up to SI, 000, 000 in
removal costs for each site.  This limit  includes any previous obligations
ac a site and includes all extranurai costs and Headquarters and Regional
intramural costs, except for all enforcement costs.  This means that costs
associated with commercial cleanup contractors, letter contracts for
procurement with States and localities, interagency agreements (IAG*),
response-related national contracts such  as the Technical Assistance Team
(TAT), the National Contract Laboratory Program (NCLP), and the Environmental
Response Team's Environmental Emergency Response Unit (EERU), EPA Regional
Laboratories and Headquarters and Regional direct intramural costs (site
specific salaries, travel, per-diem, overtime) are to be included in the
limit.  Because these costs must all be tracked against the $1 million limit
and the total project ceiling, all action memos must include an estimate of
these costs and an estimated total project ceiling.  For example, the RA may
set a total project ceiling in the following manner:

          Cleanup contractors                                   $750,000
          Letter contract for procurement w/State                  5,000
          Other Federal Agency cost through an Interagency
            agreement (i.e. FEMA, USCG Strike Team)                7,000
          TAT costs                                               10,000
          NCLP analytical services                                20,000
          ERT/EERU                                                20,000
          Regional laboratory services                             5,000
          Intramural (HO and Region)                              45,000
               TOTAL PROJECT CEILING                            $857,000

               't)  T^e "1,000,200 limit  excludes sil -infcreanent Tests.
inforcaner.t costs ara ieiined as:

                    'a)  Payroll hours charged to the site  by  technical
enforcement personnel in tne Regions and  Heaaquarters.

                    'i;  ?ayrcil .Tours rrargaci ~.3 --".a  31-3  :y  Segicnai  and
      artsrs  leqai personnel.
                     '-?)  Enforcement  related  contract support tasks such as
responsible party sec.^hes and  financial  assessments,  \7hia -orx is generally
contracted under the Technical  Enforcement  Support  (TES)  contract.)

                     (d)  Travel costs charged to the site for technical
enforcement and legal personnel in  the Regions and  Headquarters.
                                   B-4

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I1
     Also.excluded  from the $1  million limit are costs associated with CERCLA
 104(b)  investigative  activities undertaken before the initiation of onsite
 cleanup work.  However, the routine documentation and evidence collection
 (e.g.   sampling  to  document presence of a  hazardous substance) to support
 the  initiation of rsncval  activity and possible future cost recovery action
 should  not be considered as enforcement costs,  and thus do count against
 the  $1  million limit.

               {35  The RA may  redelegate  to On-Scene Coordinators (OSCs)
 authority to approve  actions costing up to $50,000 at 1) classic releases
 from transportation accidents,  active or operating facilities, or deliberate
 dumps;  or 2) when there is a risk of death, injury, or catastrophic environ-
 mental  damage from  hazardous substance releases at inactive or abandoned
 facilities or sites.   For  purposes of this delegation the following
 definitions are  provided.

               •   Classic releases mean  those incidents in which hazardous
                    substances  have been released to the enviroment for a
                    relatively  short tine  from either a transportation related
                    source or from an active or operating facility.  Such
                    release is  either the  result of an accident, fire,
                    explosion,  or failure  of a container or handling system
                    or the intentional disposal in a one tine incident to an
                    area not used (previously or presently) to dispose of
                    hazardous substances (i.e.  midnight dunp).
                           s
               •   Risk of death, injury, or catastrophic environmental
                    danage from hazardous  substance releases at abandoned or
                    inactive facilities includes imminent or actual events
                    such as 1)  fire and explosion, 2) release of acutely
                    toxic  liquids or vapors, or 3) acute contamination of a
                    water  supply at the tap in a matter of hours or days.

 The CSC's $"50,000 authority is  -iart cf the '.A'- *!,OCO,COO authority, it  '.3
 not  in  aoaition  to  tnat authority.   The CSC -sust -Jccument *..-. -a Tare to the
 racers  *n accordance  witn  cne action *nemo  format in Appenaix 2 (but aaaressea
 to the  Division  Director,  instead of the ?A; the activation of the SSC.OOC
autnority.  This memo must be prepared within 24 hours of initiating action.
The $50,000 authority "an  *» ..jsed to '.r.itiata rasccnse ^nd :an ^a  jsed ncra
 •jian -nca at i 3ica :er project restarts cue :e ".asr  ,..^s -jnreatar.ing ever.ns.
 but -ict for continuations  3S *ort. .n ^reqrass.   '.:. rnay ~a used ;cr i  rastart
 •_iat: *culcl axcaad ins iiX-mcntr. .^aiz .- ."ie* l.i;? "^irsataniiTg aventj cccur, .
but not for continuations  of routine work.  For such a restart, a request
 for an exemption co tne six-montn limit iiiust oe prepared in accoraance with
 the format in Appendix 8 (but addressed to the Division Director, instead of
 the RA).  The $50,000 authority may not be used for a restart that would
cause total removal costs  to exceed the RAs 51,000,000 approval authority,
 unless  a ceiling increase  is obtained; nor ;ray it ba used past the S3CO,CCO
 checkpoint (described in Section E of this document) unless an HO exemption
 to the  $l million limit is obtained.   In these emergency circumstances
 verbal approval  may be obtained,  but it must be followed up within 24 hours
                                                B-5

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with a ceiling increase request  in accordance with  the action MOD format
in Appendix 4.  Wien activating  the OSC's $50,000 authority the Region must
send a copy of the action name- to ERD within 5 days.

               (4)  vtien using the RA's authority/  the Region must prepare  an
action memo in accordance with the format in Appendix  2.   The request should
be originated by the OSC and forwarded to the RA (or the  Division Director,
if the RA has redelegated that authority).  The  Region must submit to the
Qnergency Response Division (ERD), within 5 days of the initiation of an RA
approved response activity, a copy of the signed action memorandum.   This
submission may be made by Telefax (1202-755-2155) or by overnight Regional
pouch mail.  The Region should also notify the Removal Operations Team by
phone (18-382-2188) or TWX (1710-822-9269) as soon  as  possible when the RA
has approved any removal.

               (5)  If it is necessary at any time  to  discuss a potential
immediate removal action with ERD, contact the Removal Operations lean,
Response Operations Branch, at 8-382-2188.  Removal Operations lean staff
are available to assist in the preparation of inmediate removal requests
either in Regional offices or on-site.

          b.   HQ Authority and  Approval Procedures

          In accordance with Delegation 14-2, signed by the Deputy
Administrator on April 16, 1984  (see  Appendix 3), the  AA, C6WER will approve
iiwediats rsnoval actions for all cleanups initially or ultimately requiring
over $1,000,000 in obligations (as defined in Section  C.3.a.l above).

          Procedures for contacting BQ during duty  and non-^uty hours are as
follows.

               (1)  During REGULAR WORKING HOURS the following approval
sequence shall be used:

                    (a)  The OSC shall notify the Removal Operations Teas,
Emergency Response Division i ERD) or  cne  fteqion's  intent  to racuest HQ
approval co iruciacs an .jnneciata rancvai.   i?r.one  t 3-382-2138, rtagnarax
* 202-755-2155, TWX * 710-822-9269).
                         The OSC  shall  then provide «:.K.a I. ".formation set *crth
   :.ie acticn "nemo  :crrat  :.r.  -"cperwix  2 {previous 10 point
        -BUS* ^s  signed T/  -".a  ?A.  arid  "3s -addrsssecl ic v.s ."•
    Oiractcr, ,2RR*  -c one ittsnt^cn it tr.a Directcr, i^C.
                     !c)  T?5»  asracvai  Cperations Tsam, 23E, will review the
action memo, coordinate  and gain concurrences from other offices as necessary
(e.g., the Office of Waste Programs Enforcement, CQC, and Remedial), and
relay the request and a  reconnendation for approval/denial to the Director,
Office of Qnergency and  Remedial Response (OERR),   The Director, CERR, will
review the request and forward  it with his recommendation to the AA, OSVER,
for final approval.
                                     B-e

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*
                    •(d)   The  ERD will  then communicate the CSVER decision
 back  to  the OBC  aa  quickly as possible.   Written•confirmation of the decision
 will  be  forwarded to  the OSC  by ERD as soon as  practicable.

                    (e)   In an eraergency,  the  initial  request or request to
 exceed SI million may be made verbally.   Within 24  hours,  the OSC shall
 provide  the information  set forth in the  action memo format in Appendix  2
 and Appendix  4 respectively.   The request  must  be signed by the RA.

               (2)  During NON DUTY HOURS  (after 5:00  p.m.  EST on weekdays,
 on Saturday,  Sunday,  and holidays),  the following approval sequence  will be
 used:

                    (a)   The  OSC will  call the  National Response Center  (NRC),
 800-424-8802, identify himself/herself, and ask to  be  put in contact with the
 EPA ERD duty  officer.

                    (b)   The  NRC will  contact the EPA ERD duty officer.

                    (c)   The  ERD duty  officer will  contact the OSC and ask
 for the  information listed in Appendix 2,  and notify the supervisory duty
officer, the  Director, OERR,  and the Assistant  Administrator, OSVCR, who will
approve or deny  the request.

                    (d)   The .ERD duty  officer will  communicate the decision
and the appropriate accounting information to  the OSC as quickly as possible
and will confirm the  decision in writing  by the end of the next work day.
 Until the end of the  fiscal year, if the  decision  is to proceed and the  site
 is new and has no previous site identifier, the ERD duty officer will provide
 the OSC with  a site identification number.   All other accounting information
 (i.e. account number  using the new identification number,  or the document
control number)  snould be obtained from the Regional Office in accordance
with established procedures.   After October 1.  1984, the site identification
                 2a ;ct3i::aDia ^'rcsn -".a ^etj;cnai Office.
                                   (e)  The  formal  request  from the RA in action memo
              fcrra^ „ snail ze 5anc  co £?X>  *;inir.  24  ncurs or on ir.e next «orx;r>g cay.
                   \s •iiscuased  ',n  3r?ct;.on  "„".  leave,  •^medians rsreavai-S ira ioprcvec -y
              cne Segionai Aaninistrator or the  AA,  OS>ER,  with an estimated total project
              ceiling level specifying the  anourt  of funds  available fcr the project.
              In order to exceed this ceiling, a formal  ceiling increase request (see
              Appendix 4) must be approved  by the  RA or  the AA, OSWER,  as detailed below.

                   T!".a amount of information required in a  ceiling increase request will
              vary fron site to site, depending  on the circumstances.   In general, the
              request should include information on  the  current site conditions, actions
              taken to date, costs  to date,  and  the  reasons why the ceiling increase is
              required (e.g., changed site  conditions,  increased volume of waste, revised
              estimates).  It is important  to detail whether  the increase is necessary due
                                                 B-7

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to the need to perform more work to mitigate  the  threat in the original scope
of work, or if there is an additional  threat  to human health,  welfare or the
environment, not previously documented,  requiring additional removal  measures.
If additional threata are disclosed, a new finding should  be made  that they
meet the NCP criteria.

          a.   Regional Approval

          The Regional Administrator's authorities include the ability to
approve ceiling increases up  to 51,000,000 as follows:   as wich the RA's
$1,000,000 approval authority, this authority applies to cleanup contractor
costs, letter contracts with  States, site-specific interagency agreements,
EPA Regional Laboratories, HQ and Regional intramural costs, and costs
associated with TAT, NCLP and the ERT/EERU.   The  Region oust transmit to
ERD, within 5 days of the RA's approval  of the ceiling  increase, a copy of
the signed action memorandum.  This must provide  the information specified
above and should be in accordance with the format specified in Appendix 4.
The submission should be made by Telefax (1202-755-2155) or by overnight
mail.  The Region should also notify the Ranoval  Operations Team by phone
as soon as possible of the ceiling increase approval (18-382-2188) or TWX
(1710-822-9269).

     Delegation 14-2, (see Appendix 3) requires the approval of the AA,
OSVER, for removals initially or ultimately costing more than  $1,000,000.
Therefore, removals begun under the RA's authority should exceed $1,000,000
only due to unforeseen circunstances.   In  these situations, HQ approval is
required.  The unforeseen circumstances  should be fully explained in  the
ceiling increase request to HQ.

          b.   Headquarters Approval

          Ceiling increases to cover costs for projects that exceed  the RA's
51,000,000 authority (see Section C.3.a.)  are approved  by the  AA, QSVER.
Ceiling increase requests that require HQ  approval must be submitted under
the 3igr.af.ur5 of the 3A. include the  information  specified above, and be \n
accordance w.tr. the «omat specified  \n  Appendix  4,   If a SI million exemp-
tion nas not previously oeen  approved  oy cfte  AA,  CSVE3, cne ceiling  increase
car be requested in the SI million exemption  request  in accordance with the
format specified in Appendix  9 (see Section E).   The  request snouid be sent
through -.he Tiractor, CSHR, to the attention  of  the  "Director,  ERE, so that
.•;  13  racsived oy tr.e iccrcpriata  Trrrect  ^fficar in  i!RE  as seen  as pcssicie,
^i;s .3 especial.-/ crv:icai *nen, iecause  of  unforeseen oxrcjnscancas, little
:.me .3 availac^a zc procass  tr.e rsquest.  "•^venever'pcssiciis,  requests sncu-c:
be submitted at least one week before  the  project ceiling will be reacned to
ensure enough time £'or processing and,  ultimately,  to  ensure .that the project
will be continued uninterrupted.   It  is  recommended  that when a request is
urgent, it should be Telefaxed (#202-755-2155) or sent  by overnight mail.
                                   B-8

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I
     5.   Evaluation and  Determination of Appropriate Response

     Section 300.66 of the NCP provides for more extensive  investigation
of an incident to determine appropriate action  (1) upon completion of an
immediate removal action  or (2) when a preliminary assessment made under
5300.64 of the NCP indicates that a Fund-financed response  other  than an
immediate removal may be  necessary.  When either of these two situations
exists, the Region should conduct, as soon as practicable,  further
evaluation of the incidenc to determine whether planned removal or remedial
action is needed.

     In addition to inspections to assess the nature and extent of the
release, the evaluation may include investigations, monitoring, surveys,
testing and other information gathering as appropriate.  The evaluation
should be coordinated with the State.  The decision rationale presented in
Section C.2 of this document for determining the need for immediate removal
may be useful in evaluating the need for planned removal, as well.

     The evaluation may result in a determination by the Region that planned
removal is appropriate, in which case the procedures outlined below in Section
C.6. should be followed.  Alternatively, new information may cone to light
that necessitates further immediate removal.  If so, a request to initiate
(or continue) an immediate removal should be made as described in Section C.3
of this guidance.

     6.   Initiation of Planned Removal

     As mentioned in Section C.3 of this document, the Deputy Administrator,
through Delegation 14-1-A, delegated authority  for all removal actions costing
under 51,000,000 to the RAs, thereby allowing RAs to approve planned removal
actions.  This delegation also allows redelegation to the Division Director
level, authority to approve actions costing up  to 51,000,000, provided, they
do not exceed 6 months in duration.  Further, by this delegation, the RA may
qrant exemptions fron the 6 month limit in accordarca with  the •srxedurss  in
.Section £ ot en 13 oocunent.  I"he information presented in Section C. 3,a.(l)
and  2] jf ;r. is jcosnenc  jr. costs ^nciuaea in,. and exciuced iron, the
51,000,000 limit apply to planned removals as well as immediate removals,
Approval of planned removals costing more than 51,000,000 will be mace oy
the AA. CS>€R, in accordance with ^legation 14-1.

                  ional \corcva-
                      For  RA-approved planned removals,  the following approval sequence
             is  to be used  duririg  ncraal weekday hours {plannec raaovaj. approval requests
            may not occur  during  off-duty hours) :

                            (1)  Because planned removals involve considerable processing,
             tne decision to approve a planned removal should be thoroughly coordinated
            within the  Region.  It  is particularly important to coordinate all requests
             through Regional enforcement personnel to avoid unnecessary processing where
            private party  response  could be  obtained.
                                               B-9

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               (2)  Tt» Region should obtain  a  written assurance fron the
Governor or hit/her designee of  the State's willingness to participate in a
specific planned renoval action  and intent to provide  the  miniaum cost-share
contribution.  The letter  from the Governor or  designee (letter of intent)
should be s«nt to the Regional Administrator  and must  include  the following:

                    (a)  A description of the nature and extent of the release;

                    (b)  A description of actions  taken or underway at the site;

                    (c)  A description of the proposed planned removal; and

                    (d)  Assurances that the  State will pay at least
10 percent of the costs of the action (for a  site  privately owned at the
time of disposal), or at least SO percent (for  a site  owned by the State or
a subdivision thereof, at  the tine of disposal) and 100% of all operation
and maintenance upon termination of the planned removal.  These assurances
are regulatory ones under  the NCP $300.67(5)(4), and are not pursuant to
CERCLA section 104(c)(3).

               (3)  The Region should prepare a planned removal action
memorandum (as described in Appendix 5) and include a  copy of  the letter of
intent from the State's Governor or his/her designee.   The request should be
originated by the OSC and  forwarded to the RA (or  the  Division Director if
the RA has redelegated that authority).  A copy of the action  memo should be
sent to ERD in HO within 5 days  of the approval.

               (4)  Enforcement  will be consulted  to assure that 1) notice
letters, if appropriate, have been sent to all  known responsible parties and
2) that no known responsible parties will take  over the cleanup.  See Section
K.2 of tnis document for more information on  this  subject.

          b.   Headquarters Approval

          Headquarters approval  will be accomplished using the same procedures
listad above ^xcapt that action  ,-nemos are  sr'.ginacad  in tr.e ^ecicn, -signed ry
the ?A, ind jufcmirtad to ".he AA, OSWE3, along with a cscy  of the latter zz
intent iron tne State Governor.  The request  snould be sent through the
Director, OERR-, to the attention of the Director,  ERD. so  that it is received
by the appropriate ERD project officer.  ERD  will  coordinate the request with
CSPR and ^f_K.er '-jQ cfrices, tr.en  forward \- vi^n a  raccrtmendacicn for acprcvai
or ^aniai 13 -"»e director, CEPJR, --^nc  *i_:.  focvard  iz  -3 -~e .4A, 'CSV£3.  icr
^inai decision,  iPD -^ill  notify tne Region of  tnac dec-isicn.

     At this point, the remainder of the procedure for processing a planned
removal depends on whether the -State or EPA will lead  in the action.  The two
procedures are discussed in Sections C.7 and  C.8 below.  These procedures
reflect Delegation 14-1-B, dated April 16, 1984, by which  RAs  have been
delegated the authority to enter into cooperative  agreements and Superfur.d
State contracts (53C) for  removal actions.
                                  BrIO

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L
                 Ceiling  increases and major -changes to the scope of work for planned
             reacval actions will  be prepared in accordance with Sections C.4.b and C.10
             respectively.  Whenever such requests are approved, the SSC or cooperative
             agreement with the State must be amended appropriately.

                 7.   Planned Removals - EPA Lead

                 Concurrent with  the procedure  for procuring a cleanup contractor
             (described  in Section D),  the Region should work with the State to prepare a
            Superfund State Contract (SSC).  The SSC must be coordinated with Regional
            Counsel to  produce a  final document to be signed by the RA, and forwarded to
            the State for signature.  This document is not a procurement contract; rather,
             it outlines EPA's and the  State's responsibilities as wall as payment
            schedules for the State's  cost share and related information.  A sample
            format for  the SSC is in Appendix 7.   Cn-site action will not cauueitc* until
            the SSC is  fully executed.   Contact the Guidance Development Team, ERO, at
            8-382-2200, for further information on preparing and negotiating this document.

                 8.   Planned Removals - State  Lead
                 If a State leads  the  removal,  the  State,  not EPA, is responsible for
            procurement of a cleanup contractor.  Further, instead of an SSC, the State
            and EPA must negotiate a cooperative  agreement.   Since these agreements have
L          been so infrequent  in  the  removal program,  Regional personnel are advised
~          to consult with the ERD Guidance Development Team (8-382-2200) for current
            information en processing  planned removal cooperative agreements prior to
            submitting a State-lead planned removal action.

                 9.   Cost Share Calculations for EPA Lead Actions

                      a.   As discussed above,  States are  required to contribute a cost
            share for planned removals.  This cost  share can  be composed of cash,
            verified State credits, and/or services, pursuant to the provisions cf ".heir
            SSC.  Sucn services .trust c& autncrizea  in advance oy cne CSC as being *
            necessary par-: cf --.e  :iaanup action.   Ccscs .ncurrec cy ine State prior co
            the initiation or after the completion  of the  planned ranoval cannot be
            l.Tcluded .n -~.eir ccst snare.
                      3.   .is jccn  33 ccasiiie  afzar  •cCTcia^isn of v.~a --zRcva-L .icticr
            cne 3ec,ion and ine 5 tats snouic  »acr.  -rsocuca  -j".s:.r raspacnve jita
            cnis guidance and Chapter  1 of the  Federal  Procurement Regulations
            51-15.703.1.  EPA's cleanup contractor costs  will  'oe based on che c'inai
            invoices received by The Financial  Management Division (FMD).

                      c.   The State should submit its  cost  information in the fora of a
            letter to the QSC.  The letter snould include the  following infcmaticn:

                           1)   Identification  of the total  amount being claimed.

                           2)   Listing of the  units of goverment which incurred  the
            costs (i.e., State, county, local).


                                              B-lf

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               3)   The coats for each governmental unit in detail by cost
elenent (i.e.,. labor, travel, equipment, etc.).

               4)   Brief description of specific functions performed by each
governmental unit as it pertains to the site (i.e., as specified in the SSC).

To be allowable, services provided must have been authorized by the CSC.

               5)   A certification that the costs claimed have not been
reimbursed under any other Federal program or grant, nor by non-Federal
sources such as potentially responsible parties.  This certification must be
signed by the State's fiscal manager or the State Agency's financial director.

               6)   The complete name, address and telephone number of the
State official who should receive a billing, if one is necessary.

               7)   Other pertinent information, as appropriate.

          d.   The State's costs will be reviewed by the Region to make a
determination of alienability under CERCLA.  This review will consider the
following specifications:  that the costs claimed were necessary and
reasonable for the specific action, and not a general expense required to
carry out the overall responsibilities of the State Government; that the
costs were EPA authorized; that the costs were not prohibited by State/local
law; and that they are not accountable to or included as costs of any other
Federally financed program.

          e.   EPA and the State wilf discuss and resolve any questions
about costs.  The cost of the allowable State services will then be added to
EPA costs to detennine the Total Project Cost (TPC); the State's cost share
is ten or fifty percent of this figure.  The value of the State services
will be subtracted from the ten percent cost share.

          The following examples, which assure a ten percent cost share, may
help clarify this procedure:
£?A Services
Allowable State Services
             c^ Zest
                                Sice  1
5450,000
  50.000
lequirad I
Allowable State Services
   t 10%
  iu,JCC
 -50,000
   0» No cash
      contribution
      needed from
      State.
5470,000
 30,000
  :o,.;oo
 -30,000
  :c,cco
                                                                  State «ouid
                                                                  owe this  as
                                                                  a cash
                                                                  contribution
                                                                  (could also
                                                                  be satisfied
                                                                  with verified
                                                                  State credits)
                                  B-12

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                                               Site 3

              EPA Services                    $440,000
              Allowable State Services         60,000
                •total  Project Ccat           $500,000
                                                 x 10%
              Itequired State Cost-Share        50,000
              Allowable State Services        -60,000
                                 -10,000 » State contributed services above
                                           and beyond their required cost
                                           share - not reimbursable
i
|                        f.   EPA will  notify the State of these computations,  if the
              State's allowable  costs  for services and verified State credits total less
;              than ten percent (or fifty percent if appropriate) of the TPC, a bill will
              be sent to the State for a cash contribution.
L. ^
          g.    If  the State's allowable costs for services and verified
State credits are  more than,  or equal to, ten percent (or fifty percent if
appropriate) of  the TPC,  a letter acknowledging that the cost share has
been met will be sent to  the  State and the verified State credit,  if any,
will be reduced  by the amount used to satisfy the cost share.  There will
be no reimbursement to the State or increase to the verified State credits
for State costs  which exceed  the cost share requirement.

          h.   All costs  may  be subject to audit by EPA's Office of the
Inspector General.   There is  no statute of limitations as to when  this audit
may be done.  If a discrepancy is found, arrangements will be made to reconcile

u'
NOTE:  A matrix  summarizing all of the approvals contained in Section C has
been included is Aceend.'.s ^-

13.  Cf^anges co  Project Scope of frtork - Immediate and Planned Removals

     If major cnanges/alterations in the project scope of work are necessary
at v. approved  ramcval »cticr.„ rur .^srrec" -cs-s remain  jnaf'fac'ac,  -ie
iccrcwa.., ccrcurrsr.es :r -J~.a iutrenrsa crf^cidi »nc ji^nea one or^gina..
action rserrc  .3  rac^jirsd.   r?i-J »i** provide dccunentar.^cr ".o V.e r-»cc.rd -f
-"s  r'jangs  .r. prc;sc-  jccpa ar.2 .-sflirscricn of cuncs ror the new tasxs to
be performed.

     Changes to  a  project scope of work which increase the total project
ceiling will be  approved/documented in a ceiling increase request.  See
Section C.4 of this dcojnent.
                                                B-13

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                                APPENDIX C



                  FEDERAL GOVERNMENT AND TAT PERSONNEL RATES
L

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I
                      FEDERAL GOVERNMENT AND TAT PERSONNEL RATES








            1.  FEDERAL GOVERNMENT PERSONNEL  RATES




j                a.   Basic Hourly Rates




                The basic hourly rates  below  have  been calculated based on annual




p          gross salaries as  of January  1985.  Future hourly rates can be calculated

L


            using the formula:


r
i





/                     $ Hourly  Rate  = $  Annual Gross Salary

)  ,                                           2,087






            Step:   1	2	3	4	5	6	7	8	9	10




            GS-3   5.49   5.67   5.86  6.04   6.22   6.41   6.59   6.77   6.95   7.14




            GS-5   6.90   7,13   7.36  7.59   7.S2   8.05   8.23   S.51   8.74   3.57




            GS-7   8.54   8.83   9.11  9.39   9.68   9.96  10.25  10.53  10.82  11.10




            GS-9  10.45  10.80  11.14  11.49  11.84   12.19  12.54  12.89  13.23  13.59




'            GS-11 12.64  13.06  13.48  13.90  14.33   14.75  15.17  15.59  16.01  16.43
 x



            GS-12 15.15  15.66  16.16  16.67  17.17   17.68  18.18  18.69  19.19  19.70


P<
            53-12 .3.22  13.o£  19,22  I'-3.32  20.^2   21.J2  21. j2  22.22  22.32  22. *2
i



            GS-14 21.29  22.00  22.71  23.42  24.13   24.84  25.55  26.26  26.97  27.68




I            GS-15 25.04  25.88  26.71  27.55  28.38   29.22  30.05  30.88  31.72  32.55






»•  i              The aoove basic aouriy  rates  ir-i iot  r.iiLv  oaaefl.  "he" io iot




_          include fringe benefits (Federal  health insurance, pension contributions,

I

            etc.) or overhead  (indirect support and management costs).  At a future




            date hourly rates  will  be loaded  to include these factors.  For now, the




            15 percent cost factor  (Step  8  of Section 2.1 in the manual) will cover




            these other costs.
                                               C-1

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    b.  Overtime Hourly Rates




    Overtime hours  (e.g.,  hours  in excess of a "standard day") are priced




at one-and-a-half times  the basic hourly rate.  However, the overtime




hourly rate shall not  exceed  $22.43.  This ceiling is adjusted as the




Federal rate structure changes.








2.  TAT PERSONNEL  RATES




    The on-site average  rate  for TAT personnel is $65/hour as of October




1984.  This is a fully loaded figure that includes per diem, travel,




fringe benefits and overhead.  This rate should be used in calculating




TAT rates (straight and  overtime) on removal sites.
                                    C-2

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                                   APPENDIX D



                             COST PROJECTION EXAMPLE
I
 i(

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                            COST PROJECTION EXAMPLE




           This example goes through the procedures to develop a prefunding cost

       estimate for an imaginary CERCLA site.  A brief background is provided

       about the site in order to develop an estimate of the duration and cost

       of the project.  The example presented will follow the 9 suggested steps

       for development of cost estimates explained in Chapter 2.  The elements

       of the cost estimation that are listed in this example are for

       illustrative purposes.  Presumably there are other approaches to the

       cleanup that could accomplish the task as effectively.




•       1.  BACKGROUND SITE SUMMARY

           A State investigation of a site located in ERGS Zone 1 reveals that

       an estimated 2,000 drums cf various industrial wastes are buried on the
                                  s
       site.  About a hundred of these drums are partially buried and samples

       are taken and analyzed.  The results indicate that there are two major

       categories of hazardous substances:  flammable non-halogenated organic

       solvents and flammable paint waste solids.  Because the partially buried
        irons aave  leteriorataa -ina nave ^.eaKea some of tneir contents,  it is


        assumed that the remaining buried drums are leaking and that the soil is


        contaminated.  Based on compatibility testing of samoles taken from the


        par-idily auriea drums. :ne liauia solvents -an :>e '-mikea.   Sampling if


        ::ie par'^ai^y Buried arums suggests tnat approximately 10 percent of the


        drums contain solid wastes and the remaining 90 percent contain  liquid


        wastes .
                                         D-1

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2.  DEVELOPMENT OF PREFUNDING COST ESTIMATE









    2.1  Preliminary Assessment.   A preliminary assessment of the site




has been conducted and completed  by the  State.  The major findings have




been summarized in the previous background site summary.








    2.2  Identify Response Objectives.   The response objectives are




threefold:  first, to excavate the buried  drums (including the partially




buried drums) and contaminated soil from the site; second, to dispose of




the hazardous material properly;  and third,  to return the site to a




stable condition.








    2.3  Develop Scope of Work.   In order  to meet the response




objectives, the following major tasks will be undertaken:






         •    Mobilize response;




         •    Install silt screens for  erosion control;




         •    Define area of buried drums;




         •    Excavate contaminated soil and drums;




          1    Stage ir\m)3 ;




         •    Bulk liquids;




         •    Transport and dispose hazardous wastes;
                     ica; -ina




          •    Demobilize response.
                                 0-2

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i
                 2.4  Develop Time Frame.  After identifying the major tasks needed

             to complete the removal, the tasks are organized into different phases of

             work, and the resources (e.g., personnel, equipment) that are needed to

             implement each phase are identified.  The OSC has estimated that this

             project will take 27 working days to complete.
I                 2.5   Identify Personnel' and Equipment Requirements.   Based on the

             scope of work and the timeframe of the project,  a detailed list of

L            personnel and equipment needed for the cleanup is developed.   (See

             Exhibits D-l  and D-3.)
r'                2.6  Determine Cleanup Contractor Costs.  The cleanup contractor

             costs for this example are calculated using negotiated ERCS Zone 1

             races.   Services that are provided by ERCS subcontractors should be
                                        s
             identified at this point.  In developing the total cost of the ERCS

             service, a handling charge is normally added to subcontractor costs.  The

,/           percentage rate used to determine the handling charge is different for

             each ERCS zone.  The individual rates and total costs for the ERCS
r
             services are snown in the foI.lowing Exhibits:

f
                 Zxnibit D-i snows a partial list of negotiated ERCS
                 contractor personnel rates fir ^one 1. •

                 Exhibit 0-2 shows -alculatad ZHCS :ontracror personnel
'_               ;as~3 far :li^j ore;.tic~icn

r~*               Exhibit D-3 shows °. partial list of negotiated ZRC3
                 contractor equipment rates for Zone 1;  and

                 Exhibit D-4 shows calculated ERCS contractor equipment
                 ,;osts for chis projection.
                                               D-3

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In addition, transportation and disposal costs must be estimated for the

drum wastes, the empty drums, and the contaminated soil.  Several waste

management facilities have been identified to receive the various waste

material.  The estimates are obtained for the site and are summarized in

Exhibit D-5.
              The OSC estimates that 200 of the approximately
              2,000 buried drums (10 percent) contain solid
              paint wastes which require disposal at a                                1
              hazardous waste management facility, located
              about 100 miles from the removal site.  Three
              truckloads are needed to transport the 200
              drums.  Transportation cost for each fully loaded
              truck is estimated to be $6.30/loaded mile.  The
              disposal cost is estimated at $30/drum.

              The remaining 1,800 drums are assumed to                                '
              contain various non-halogenated liquid organic
              solvents.  Compatibility tests indicate that                            ?
              these solvents can be safely bulked for                                 i
              transportation to another waste management
              facility located 200 miles away.  Incineration
              has been selected as the disposal option.  The
              approximate 99,000 gallons of bulked solvents are                     £
              to be transported usingx!8 truckloads of 5,500                        ™
              gallons each.  The transportation cost for a
              fully loaded truck is $6.30/loaded mile.
              Incineration cost is $0.41/gallon.

              The 1,800 empty drums are to be crushed and                             *
              disposed of in a sanitary landfill.  Six
              truckloads of 300 drums each (approximately 9                           ,
              tcnsN will be transtsor~ad ~o a sanitary landfill
              located 75 Tiiles zuav.   The transportation  -.ast
              for a fully loaded truck is $6.30/loaded mile.
              The disposal cost is SSO/tcn.

              One hundred-seventy v.ibic  Mris  '104 tans'!  TT
              ".onnarainated soil  caused by organic soii/enzj
              leaking from detanorating arums/ must be
              Hxcavataci and disposea -r _r. a wasta icanagemenc
              facility.  Ten loads of contaminated soil will be
              transported to a facility located 100 miles
              away.  The transportation cost for a fully  loaded
              truck is $6.30/loaded mile.  The disposal cost is
              estimated to be $65/ton.
                                   D-4

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                  A contingency allowance is always added to the contractor cost

              estimate to cover unforeseen expenses (i.e., discovery of additional

              hazardous materials and delays due to poor weather conditions or

              equipment failure).  In this case the OSC decides to use a contingency

.              allowance of 20 percent.



f                 2.7  Calculate Direct EPA, other Federal and TAT Personnel Costs.

              The projected costs for direct EPA and TAT personnel are given in

[              Exhibit D-6.  No other Federal personnel are anticipated on site.



                  2.8  Estimate Other Costs.  To cover other EPA intramural costs,
0
 ]    .        such as off-site Headquarters and Regional personnel, indirect support

              and management costs, and fringe benefits, 15 percent is added to the

V-            total cost of the removal.
                                        /


                  2.9  Calculate Project  Ceiling.   After all the above costs have been

              estimated, the project ceiling is now calculated.  Exhibit D-7 provides a

              listing of the various cost categories and the project ceiling estimate.
                                                 D-6

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                          EXHIBIT D-1



         NEGOTIATED ERCS CONTRACTOR PERSONNEL RATES1J
                                      Hourly Rate ($)
Personnel Category
Supervisor
Foreman-Level 2
Cleanup Technician-Level 2
Laborer
Equipment Operator-Level 2
Carpenter
Security Guard
Field Clerk/Typist
Regular
52.50
31.50
25.00
18.00
31.50
23.00
9.50
19.00
Overtime and
Saturday
64.50
42.00
33.00
25.50
41.00
31.50
12.50
27.50
Sunday and
Holiday
69.50
46.50
36.50
28.50
45.50
36.00
12.50
30.50
1J  Partial  list for Zone 1.
                              o-e

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 0
                                       EXHIBIT D-2



                             ERCS CONTRACTOR PERSONNEL COSTS
Personnel Category
Supervisor
Foreman
Cleanup Technician
Laborer
Equipment Operator
Carpenter
Security Guard
Field Clerk/Typist
Quantity
1
1
2
3
3
1
1
1
Duration
27 days
27 days
27 days
27 days
20 days
3 days
26 days
27 days
Cost f$)
14,823
9,072
14,364
15,795
20,040
741
2,626
5,589
 (             Subtotal                                            83,050



*•
 j             Per diem charges  305 diems @ $60/day                    18,300
              TOTAL                                              101,350
                 assume .10 hours/day for weexdays.   (This example assumes no work on

              weekends.1
                                           0-7

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                       EXHIBIT D-3

    NEGOTIATED  ERCS CONTRACTOR EQUIPMENT RATES1-1
                                                Rate  ($)
        Equipment  Category
Backhoe, Cat 225
Front-end loader,  wheel
Grappler, drum hydraulic
Truck, pickup 2J
Trailer, decontamination, 40 ft.
Trailer, office 8  x 30 ft.
Trailer, equipment storage
Pump, trash 3"
Steam jenny
Emergency lighting
Generator - 10 kw
Personal protective equipment-Level B
Metal detector
Hand tools (no power tools)
Tank, portable holding
Drum, 85 gal. overpack
Portable radio
Cascade system
Portable eye wash, 10 gal.
Non-sparking tool  set
Passenger van 2J                 ^
Barrel pump, explosion proof
Daily
556.00
371.00
134.00
62.00
206.00
77.00
41.00
123.50
154.50
62.00
82.50
154.50
31.00
12.50
62.00
100
8
51.50
16.50
56.50
72.00
31.00
Weekly
2503.00
1668.50
540.50
278.00
824.00
309.00
165.00
494.50
618.00
278.00
371.00
—
128.50
51.50
247.00
drums @ 8250
36.00
231.50
72.00
257.50
32^.50
123.50
Monthly
7107.00
4892.50
1631.50
772.50
2884.00
1081.50
463.50
1442.00
1854.00
803.50
1071.00
--
283.00
173.00
695.00

115.50
721.00
230.50
807.50
849.50
360.50
1J  Partial list for Zone  1.

2J  Mileage rate extra - $0.15/mile.
                             0-8

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                                         EXHIBIT D-4

                             ERCS CONTRACTOR EQUIPMENT  COSTS
                   Equipment Category
r
Backhoe, Cat 225
Front-end loader, wheel
Grappler, drum hydraulic
Truck, pickup
Passenger van
Trailer, equipment storage
Trailer, decontamination, 40 ft.
Trailer, office 8 x 30 ft.
Pump, trash 3"

Steam jenny
Emergency lighting

Generator - 10 kw
Personal protective equipment-
  Level B
Metal detector
Hand tools (no power tools)
Barrel pump, explosion proof
Tank, portable holding
Portaoie radio
Cascade system             '
Portable eye wash, 10 gal.
Non-sparking tool set
Drum, 85 gal. overpack
Vehicle mileage surcharge
  Truck, pickup
  Passenger van

TOTAL
                                    Quantity
Duration   RateIJ    Cost ($)
1
2
1
1
1
1
1
1
1

1
1

1
7
1
1
1
1
5
1
1
1
100
20 days
20 days
20 days
27 days
27 days
27 days
27 days
27 days
20 days
(standby on
1 day
27 days
(standby on
3 days
27 days
3 days
3 days
15 days
15 days
27 days
27 days
27 days
27 days

1 @ 50 mi/day 27 days
1 @ 50 mi/day 27 days
M
M
M
M
M
M
M
M
S
site)
D
S
site)
D
D
D
D
2W/1D
2W/1D
M
M
M
M

15C/mi
15C/mi
7,107
9,785
1,632
773
850
464
2,884
1,082
649

155
362

248
29,201
93
38
278
556
578
721
231
808
8,250
202
202
                 D ~ daily, tf - weekly, M - monthly,  S - standby (45% M).   Use the
             time duration to der.ernine vhir.h TiHCS r.it.j ^.o -har^e ror =n  equipment
                     Gwever
                              .: -tie -iszim
                                          :aa rant ion
                                                0-8

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                             EXHIBIT D-5

                TRANSPORTATION AND DISPOSAL COSTS
         Category
   Unit Cost
Solid Waste,  200 drums  incld.

    Transportation (3 loads)
    Disposal
$6.30/loaded mile
?30/drum
   Quantity
100 miles/load
200 drums
Cost ($)
  1,890
  6,000
Bulked Liquid,  99,000 gal.

    Transportation (18 loads)
    Incineration
$6.30/loaded mile
$0.41/gal.
200 miles/load     22,680
99,000 gal.         40,590
Empty Drums, 1800

    Transportation (6 loads)
    Disposal
$6.30/loaded mile
$50/ton
25 miles/load         945
54 tons             2,700
Excavated Soil, 170 yd

    Transportation (10 loads)
    Disposal
$6.30/loaded mile
$65/ton
100 miles/load      6,300
204 tons           13,260
TOTAL
                                       94,365
                                  0-10

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                          EXHIBIT D-6

      DIRECT EPA, OTHER FEDERAL AND TAT PERSONNEL COSTS
    Catetory
Quantity
Hourly Rate
(10 hrs/day)
Duration
Cost  ($)
OSC, GS-12/Step 2
Straight Time
Overtime
Per Diem
Travel
TAT, Level 2

1
1
29

1

$15.66/hrlj
$22.43/hr1J
$60/day

$65 >J

8 hrs/day x 29 days 3,633
2 hrs/day x 29 days 1,301
1,740
200
33 days 21,450
TOTAL
    See Appendix C for explanation of this rate.
                                               28,324
                               0-11

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                             EXHIBIT D-7



     SUMMARY  -- CALCULATION OF PREFUNDING  PROJECT CEILING





	Category	     Cost ($)



ERGS



   Personnel                                                   101,350



   Equipment                                                    67,149



   Transportation and Disposal                                   94,365



      Handling Surcharge (8%1J of ERGS subcontractors for

      transportation and disposal)                                7,549



   Contingency allowance (20%)IJ                                 54,083



Direct EPA, TAT Personnel                                       28,324



Subtotal                                                       352,820



Other Costs (15% of  all costs above)                             52,923
TOTAL                                                          405,743
                                     *s



PROJECT CEILING ESTIMATE                                       410,000
1J  Rates vary among ERCS zones.



2J  See Sec. 2.1, Step 6 of manual  and  Sec. 2.6 of this Appendix for

        -Lcn rf C3nr^nganc7 ilicwanca.
                                 P-12

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                                      APPENDIX E
               EPA ADMINISTRATIVE PROCEDURES FOR SECURING  ASSISTANCE
                    FROM OTHER FEDERAL AGENCIES AT SUPERFUND 3ITES
f
            Source:   Superfund Removal Procedures - Revision #2 - U.S.  Environmental
                     Protection Agency, Office  of Solid Waste and Emergency Response,
                     Washington, D.C., August 1984, pp. 47-53.

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          EPA ADMINISTRATIVE PROCEDURES FOR SECURING  ASSISTANCE FROM
                    OTHER FEDERAL  AGENCIES AT SUPERFUND SITES

                1.   U.S.  Coast Guard

               Only EPA or the U.S.  Coast  Guard (USCG) may provide  the  lead  in responses
          at non-Federal  facilities.  On October 9,  1981,  the USCG  redelegated to EPA
          certain  authorities  previously delegated to USCG under  Executive Order 12316.
r         These  redelegated authorities give EPA the lead  responsibility for removal
          actions  for a release or threat  of release of hazardous substances -at active
          or inactive hazardous waste  management facilities  located in  the coastal
          zone,  Great Lakes waters,  and ports and harbors.

'               The USCG retained the response authorities  in the  coastal zone, Great
          Lakes  waters, and ports and  harbors,  as follows:   responses to releases or
[         threats  of  releases  from vessels;  immediate removal actions concerning releases
i         or threats  of releases at  facilities  other than  active  or inactive hazardous
          waste  management facilities; and immediate removal actions concerning releases
(         or threats  of releases at  active or inactive hazardous  waste  management
[         facilities  when a Coast Guard CSC  determines that  such  action must be taken,
          pending  the arrival  on-scene of  an EPA CSC.  Unless otherwise agreed upon by
jr        EPA and  the Coast Guard, the USCG  will not exercise this  authority unless
|\        the EPA  OSC is  scheduled to  arrive on-scene within 48 hours of notification
1         of the release  or threat of  release.

r*             2*   The Federal Emergency  Management Agency
 1 /
                •ection 101(23)  of CERCIA defines removal to  include evacuation and
          temporary relocation.   Such  activities are undertaken when the public health
'         and welfare is  threatened  by:  1)  the release of a hazardous  substance or
          contaninant;  2)  actual or  potential releases of  a  hazardous substance as a
          result of response efforts,  e.g.,  threat of inhalation  of contaminated dust
f        created  during  response efforts.

 -             Under  CERCIA and the  Disaster Belief  Act of 1974.,  the *-deral 3»r;ency
          Xanagsaenc  .Agency ,?SHA; -a  autnoriad co  oarticipace in  tanccrmry relocation
          jGZiv-.z-ss  ssacciacac. •*itn .aaaediata  ^Bracvais.   e&A'a  participation may
 -         consist  of  technical assistance  to EPA and/or a  State as  well as actual
          lapi.srne.Tcacicn  c: a  caaporary relocation.   EPA and FEMA currently  are
 1         developing  an MDU which vill yismarizs policy and  prccsdura jcveming :he
                      ai  Assistance say  .;-sciace:  ccncrisuting  co  ine  idencificacion of
          relocation options, identifying the necessary elements of a  relocation action
          ard, 3stl!&ating raiccacicn casts.  /E?iA also may assist  in determining the
          need for a temporary relocation, although the final decision rests with EPA.

               Either FEWA or a State may lead the relocation.  "Aen 7S»IA assuaes the
          lead, it Is raspcrsibls fsr the following:  providing ail affected residents
          with adequate housing; ensuring provision of appropriate welfare services;
          and ensuring that maintenance  requirements and costs are covered.  Section
          0.5.C outlines procedures OSCs should follow in contacting and  coordinating
          with ?EHA.
                                              Er1

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     3.   Health and Human Services

     As authorized by section 104{i) of CEBOA, the  Department of  Health  and
Binan Services  (HHS) will establish registries; conduct appropriate health.
surveys and studies; develop and provide testing  for exposed  individuals  in
cases of public health emergencies; develop and maintain  information on
health effects  of toxic substances; and maintain  a list of areas restricted
or closed because of toxic substance contamination.

     BBS activities in support of specific removals  are conducted  by the
Centers for Disease Control (CDC) and the national Institute  or Occupational
Safety and Health (NIQSH).  At the request of the CSC, CDC's  activities may
include on-site data collection and review of site information to  evaluate
the potential for hunan exposure to toxic substances and  to determine  if  any
threat to human health exists.  Following this analysis,  CDC  may issue a
Public Health Advisory that OSCs can use in selecting appropriate  removal
activities.  This health advisory is a tool that  CSCs can use to determine
the need for response, however, it is not a prerequisite  to a removal  action.
EPA CSCs are advised to always obtain such advisories on  dioxin, lead, and
asbestos sites  or other chronic threats which could  lead  to acute  effects.
In addition, during removal operations CDC can monitor the health  of
residents who have been exposed to the hazardous  materials or who  live in
close proximity to the release.  At the request of the 06C, NIOSB  may  provide
technical assistance to OSHA and EPA's Occupational  Health and Safety  staff
in testing worker protection equipment and gathering information for guidance
manuals.

     4.   Other Federal Agencies

     In addition, EPA may use the specialized expertise of other agencies to
assist in providing response actions.  These agencies and their areas  of
expertise are listed below.

          a.    The Department of Agriculture
          ^e w"r.-.2C jtacss £zparsaent of ^grieuiC'-ra  v J5ZA/ manages
agrlcoiturax , ^orssr:,  and  tfildesraassa ^rsaa; prcvicea scientific support jnd
expertise in examining the effects of pollutants on soil,  plants,  and  animals;
prsvices asaiscanos in animal disease outsrsaxa; procures  emergency food
supplies; and conducts damage assessment estimates for natural  rssourcs
                  ihe .-iaticnal Oceanic and ASacapberic /kininiatration
the Department of Camt>rce  (DOC) will provide scientific  support during
response actions on hazardous spills in coastal and marine  areas.   NOAA  also
is responsible for the federal trusteeship for natural resources in coastal
and *arine vatsrs and certain upland areas.  Scientific support provided
during response actions can involve expertise in areas unique to maritime
incidents, including meteorology, hydrology, and oceanography.
                                   E-2

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P
                     c.   The DepaiUuent of Defense

                     The Department of Defense (DOD) provides assistance  in disposing
           of explosive ordnance, engineering support and salvage.   Included within
           the Department of Defense is the U.S.  Army Corps of Engineers, which has
           expertise in flood control, water supply, maintenance of  navigation, and the
           environmental effects of discharging dredged material into navigable waters
           and the oceans.

                     d.   The Department of Energy

                     The Department of Energy (DOE) is capable of evaluating radiolc-
           gically contaminated sites in order to determine if some  response measures
           are warranted to protect public health and safety.  In addition, DOE can
           participate in response actions through the conduct of engineering  studies,
           the removal and disposal of radioactive releases, and certification of  final
           site decontamination.  See Section X of this guidance for further information.

                     e.   The Lepartanent of the Interior

                     Expertise the Department of the Interior (DOD  offers includes
           damage assessment capability and expertise in managing natural resources and
           public lands under its jurisdiction, including those underlying the Outer
           Continental Shelf.  It also provides expertise on the geological and hydro-
           logical movement of hazardous suostances uirougn land surfaces, subsurface
           strata, ground and surface water, and endangered species.

                     f.   The Department of Justice

                     The role of the Department of Justice (DOJ) is  to represent the
j          united States in litigation arising under the CWA and CERCLA,  and assist in
           training officials of the United States and States in matters  relating  to
^         civil and criminal enforcement of law.

                     ;.   "^.a Vuclaar '5ieGul.iC3rv Crsaniasicn
                     The '•Juclaar •tegulacrry "rami^aijn  ,NPC* will  assist  m  rsspcrses
           to incidents involving NRC licensees in accordance with existing  plans
               licensees *i^- 7ont..r!ue .-a 'iciu.r/ -SRC or xnc^cert^s  in  accordance
           aocut the status of eacft incident, and F"EMA and the NPC wil  provide  all
           necessary inforaation *:o ".he MPT,  See Seedier. X of this guidar.cs  fcr further
           inforaation.
                                              E-3

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          h.   The  Department  of

          The Department  of  Labor's  (DDL)  role is to provide advice on labor
and employment related  issues, as  well  as  advice, guidance, and assistance
regarding health and safety  hazards  to  persons involved in oil and hazardous
substance emergency actions.   Regional  OSHA compliance personnel will enforce
existing health and safety standards at the site.  Advice or assistance
provided by the Department of  Health and Hunan Service's National Institute
of Occupational Safety  and Health  in these areas will not preempt the applica-
tion of standards developed  'Jy the Department of Labor's Occupational Health
and Safety Administration under section 4(b)(l)  of the Occupational Safety
and Health Act.

          i.   The  Department  of state

          The Department  of  State  (DOS)  develops joint international
contingency plans and coordinates  international response when an oil
discharge or hazardous  substance release crosses international boundaries
or involves foreign flag  vessels or  facilities.

          j.   The  Department  of Transportation.

          The Department  of  Transportation (DOT) provides expertise on all
nodes of transporting oil and  hazardous substances.  DOT, through the United
States Coast Guard  (USCG), offers  expertise in port safety and security;
maritime law enforcement; ship navigation  and construction; and the manning,
operation, and safety of  vessels and marine facilities.  The USCG also
maintains continuously  manned  facilities which can be used for command,
control, and surveillance during oil and hazardous substance response
operations.  For those  areas where it provides the OSC, the USCG chairs the
Regional Response Team, which  develops,  implements, and revises regional and
local contingency plans as necessary.

     5.   AAninistrative  Procedures

     Uus jection sescricea  current  aaturtiscrative procedures irr arranging
for and compensating technical assistance  from and response activities of
ctfler fecera* agendas  at ncn-feoerai facilities,  for most of cne agencies,
OSCs will use the procedures described  in  Section 0,5,3.- for the TJECG and
           er. '-"a  trccacuras  lijcussetj ..rs 3ecr:.cns 0,5..:. and ",,.5,c.
          a.   General Procedures

          The OSC  is responsible for  identifying whether technical assistance
from another Federal agency  is  needed.   OSCs may contact the Removal Operations
Team (382-2188) of ERD for assistance in making initial contact with and
arranging for the  ir.voly«=E*er.t cf the  pertinent Federal agency.
                                    E-4

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P
           In general,  there are two mechanisms for funding the response and
.response-related  activities of another Federal agency:  that agency's
Superfund  budget  or an interagency agreement (IAG).   The nature of the other
agency's involvement trill  determine the compensation mechanism.  For example,
if the service provided is defined as an "ongoing" activity, for which the
other agency has  received  a Superfund budget,  no further transfer of funds
will occur.  Bowever,  if the service  involves  site specific response actions,
the other  agency  typically will receive reimbursement through an LAG (except
as noted in Sections O.S.fc. and O.5.C.).   IAS  procedures are described in
Section O.S.d. below,  and  QSCs should contact  the ERD Guidance Development
Team for assistance in determining whether the other agency's involvement is
an ongoing activity or site-specific  response  activity requiring an LAG.

           b.   U.S.  Coast  Guard (U50G)

           A Memorandum of  Understanding (MOU)  between EPA and USCG, signed
on January 4, 1982, allows the USCG to use the GERCLA Trust Fund for vendor
(extramural) costs  incurred in Superfund response actions.  Site specific
LAGs are used to  reimburse USCG for out of pocket (personnel and equipment)
costs.

           Coast Guard  QSCs may obligate up to  $250,000 for a single response
to a hazardous substance release,  without first obtaining EPA BQ permission.
They must, however,  obtain special reserved account numbers from EPA during
normal working hours or by contacting tne NRC  during non-duty hours.  The
Coast Guard will  then  use  its own  contracting  mechanism and send a copy of
the contract or other  obligating document as well as certified invoices to
EPA Financial Management (Financial Management Officer, Accounting Operations
Office (MD-32) EPA,  Research Triangle Park, Durham,  N.C. , 27711) for payment.

     If the cost  of  the response exceeds $250,000, then CG obtains funding
fron the EPA Assistant Administrator, OSVER, via a request to ERD.  Likewise,
if the response cost will  exceed $1,000,000, the statutory finding of CERCLA
134 -'c) ',3  prasencad  -.3 "JB M,  3*£2, »nc vill prcv-.cie j'-^ncir^ Jcr ir.e
rssccnse The r3cuest shculd ^cntai:*. iria sane ;nf snaaticn raquiraa -zf i?A CSC3
and described in  Appendix  2.   The  Coast Guard  must submit POLREPS to ERD as
•Jetail-ad Li Section  I.

           £?A legions  sneuid
                                                                     tcra rier-ailsd
                                              E-.5

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          C.   FEMA                                                                 ^

          FEMA participates in removal actions that necessitate evacuation
or temporary relocation.  At the present tine, EPA and FEMA are negotiating
an MOO that will establish the general policies and procedures for FSMA
participation.  In the interim, CSCs should use the following procedures.

          The QSC has responsibility for deciding to undertake evacuation
and/or temporary relocation as part of a removal action.  In carrying out
this responsibility the CSC must coordinate with FEMA and the pertinent
State and local health authorities as follows:                                         ]

               •    The CSC may consider evacuation or temporary
                    relocation on his own or at the request of State                   *
                    and local officials.

               •    In either case, subsection 300.33(b)(6) of the
                    NCP requires the CSC to advise FEMA immediately
                    of any potential major disaster situations as
                    well as situations that may require evacuation
                    or temporary housing.  CSCs should contact their
                    FEMA Regional counterparts.

               •    In order to determine the need for and scope
                    of the evacuation cr temporary relocation, the                    M
                    OSC may request, that FEMA provide technical                       ™
                    assistance by identifying, evaluating and
                    estimating the costs of alternative temporary
                    relocations.  FEMA should report its findings
                    to the CSC as expeditiously as possible.
                                                                                        rii
               e    The CSC also may rely on State and local
                    information and may request a Health Advisory
                    fron CDC to support the iecisicn :c jrder^K3
                    an evacuation or tamccrary rs-Lccac.cn..

          As with other agencies, funding :.s *ithar via 4 Supsrfund
for cngcing activities or an IA3 for site-specific activities.  Until
negotiations are oonnletsd,, the 3C should s«sx issxscancs r'rra  :3D' -  t
                                           rscacures are ciescrii'»cl in  Seccicr.
          d.   IA3 Prpcedures

          Regions will approve, negotiate and award lAGs for site-specific
response actions.  This includes:

               •    JEMA XAGs for temporary relocation.

               •    Coast Guard lAGs for assisting in EPA removals  (Coast
                    Guard intramural costs).
                                    E-6

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          For these  LAGs,  Region personnel should use the following procedures:

               •     Regional Administrator or designee approves the action if
                     it  is  $1 million or less; requests AA, Q6VCR approval  of
                     the action  if  it will cost over SI million.

               •     Regional Program Division prepares the LAG funding package,
                     consisting  of  a Ccramitaent Notice, Transmittal memo and
                     EPA Form 1610-1.

               •     Regional legal and administrative staff review funding
                     package.

               •     Regional Management Division  adds accounting data and
                     commits funds  in their Document Control Register.   A
                     copy of the committnent notice must be sent to FKD
                     Cincinnati  for commidnent in  the FMS.

               •     Regional Grants Office negotiates and signs LAG: sends
                     signed LAG  to  other agency for execution.

               •     Regional Grants office distributes executed LAG to:
                     Regional Management Division  finance staff and Program
                     Division, FMD  Cincinnati, HO  FMD-Financial Reports and
                     Analysis Branch, HQ Budget Division, and CERR Funds
                     Control Center.

          LAG teems  should require that monthly reports on technical program
and costs be sent to the Regional  Program Division.   For Coast Guard LAGs,
the Region will authorize  reimbursement based on  vouchers; FEMA receives a
transfer allocation, processed  by  the Comptroller, at the onset of the
evacuation/tanporary relocation.
              other I*Gs vr.ll •» ^rrxsssed  -ind  forced  at  Seadcuarrars.
Region snouia concact £RD's ftsnoval cceraticns  Ta^ra fs
cypea of IAuo are
                                     E-7

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  ,                                  APPENDIX F
»  t
                       MEMORANDUM OF UNDERSTANDING BETWEEN
                            THE U.S. COAST GUARD AND
                       THE ENVIRONMENTAL PROTECTION AGENCY
  r


   r

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L
r
n
r
                     MEMORANDUM OF UNDERSTANDING
                                   BETWEEN
                           THE U.S. COAST  GUARD
                                     AND
                 THE ENVIRONMENTAL PROTECTION  AGENCY
                                    *  **
         A Mechanism for Funding Vendor Costs Incurred  by the
       U.S.  Coast Guard During Emergency Response to Releases
            or Threats  of Releases  of Hazardous  Substances

PURPOSE;

The U.S. Coast Guard (USCG) and the Environmental Protection Agency (EPA) agree that
a mechanism is required to fund USCG costs incurred during emergency  response to
releases, or the threats of releases of hazardous substances or pollutants or
contaminants. This Memorandum of Understanding establishes the accounting,
contracting, and fund management control policies and procedures for USCG response
actions.
AUTHORITY;

The Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(CERCLA) (94 Stat. 2796; 42 USC 9615) authorizes the President to respond to releases
or threats of releases into the environment of hazardous substances, or pollutants or
?enMnsinar.J3 vhieh T.ay srs&ent in '..Tirninent ind substantial Jarjjpsr :o *±a puolis i«Ai:r.
3r "»«if.irs-  ~sy the USCG in
            response to a specific incident of a release, or threat of a release, of hazardous
            substances.
                                            F-1

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The vendor costs are only those costs which qualify as allowable uses of the Hazardous
Substance Response Trust Fund when the USCG undertakes response activities pursuant
to CERCLA, Executive Order 12316, and the National Oil and Hazardous Substances
Contingency Plan. Examples of vendor costs include, but are not limited to, the
following:
     e   contractor and consulting coats;
     e   lease or rental of equipment; and
     e   supplies, materials, and equipment (including transportation costs) procured for
         the specific response activity and  expended during a response.

Vendor costs do not include USCG out-of-pocket expenses which are:
     •   travel and per diem for military and civilian personnel, and overtime costs for
         civilian personnel;
     e   fuel for  vessels, aircraft, or vehicles used in sisj>port of a response activity; and
     •   replacement or repair costs for non-expendable equipment.

Funding for out-of-pocket  expenses and other non-vendor costs will be the subject of a
separate agreement between the EPA and the USCG.

The Coast Guard will advise  all of its District Commanders, predesignated On-Scene
Coordinators (OSC), and Regional Response Team members of the  terms of this
Memorandum. The  USCG  will  provide to EPA a current listing of District personnel who
will serve as appropriate contacts for EPA on matters relating  to contracting and
accounting for response activity.
CONTRACTING AND ACCOUNTING;

The TJ5CC -ind M*.e "?.i ig-^e '.hat *^e ~?A 'vi.il sarform -tli ^csountiruj -'or -'
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p.
I
Guard, where the USCG OSC if acting in the capacity of first responding Federal
official, pursuant to the National Contingency Plan, shall remain in effect only during
the period that the USCG is  the OSC.

Any contract for immediate removal actions in response to releases, or threats of
releases, of hazardous substances or pollutants or contaminants, entered into by the
Coast Guard pursuant to the authority delegated under Executive Order 12316, and
retained by the USCG in Section (c) of the Instrument of Redelegttion, executed 2
October 1981 by the Secretary of Transportation and consented to on 9 October 1981 by
the Administrator of the Environmental Protection Agency, shall remain in effect only
during the period that the USCG is  acting under this authority.

The USCG and the EPA agree on the following procedures for coordinating the EPA
accounting system and the USCG contracting system.

     1.   Obtain account number
         For each incident where CERCLA funds are obligated, the USCG OSC must
         obtain & ten-digit account number from EPA Headquarters which identifies a
         specific sits/spill irscident.  The number is obtained by calling:
                         Chief, Response Operations Branch
                            Emergency Response Division
                     Office of Emergency and Remedial Response
                         Environmental Protection Agency
                                401 M Street, S.W.
                               Washington, DC 20460
                                  (202) 245-3057

         The uSCG OSC wU provide tn estimate of *^e resDcns* »ssts sancar.itant v:t
         the request for an account number.
                    The *an-dj?it tcccunt -.umfc«r -will -ct "5« Lssuad urJess CI3C1A 'unds IT*
                              .'or cne rssnons* action.
                 2.   Accounting codes
                    Specific accounting information is required by the EPA Financial Management
                    System in order to process response contracts. There are five categories of
                    acceuntir,g and control numbers which must be entered on each contract and
                    financial document.  They are:
                                                 F-3

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    •  Appropriation Number; This number is permanently assigned to the trust
       fund.

                              68-20X8145
    •   Account Number: The ten-digit account number obtained for each incident
        from EPA Headquarters (see II). The Jl and SS portions will vary to
        identify each separate release incident.
                             FTFA72RZSS
       Where:       R  » EPA Region where the release occurred
                    SS  * Site/spill identification number
    e   Document Control Number:  The OSC will develop a set of document
        control numbers for a specific release incident in the following format:


                                RSSXXX

                                                *
        Where:       R * EPA Region where the release occurred
                     SS * Site /spill identification number
                  XXX * Contract document number

        Each contract entered into relative, to each release must have a unique
        document control number issued in ascending numerical sequence beginning
        with XXX = 001 for the first contract issued for that release. The jl and SS
        portions are obtained  from the Account Number.

               For Example:     RSSOOl for 1st contract and its modifications
                                RSS002 for 2nd contract and its modifications

    *   O-'ft'?* Class;  This number !j permanently


                                  2535
                  I.;rtrict .n
3.   Transmit Contract to EPA

    in order ioe £?A to process payments for response contracts, a legible certified
    true copy of the contract and modifications to the contract must be submitted
                                   F-4

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    by certified mail within 72 hours of award by a USCG District Contracting
    Officer to the EPA paying office:
                      Financial Management Officer
                  Accounting Operations Office (MD-32)
                     Environmental Protection Agency
                         Research Triangle Park
                           Durham, NC  27711

    The USCG will assure that the USCG contract number and the EPA accounting
    codes (appropriation number, account number, document control number, object
    class, and dollar amount) are clearly and legibly presented on the contract
    document. The USCG will assure that the EPA accounting codes and USCG
    contract number are made known to the contractor. The original contract will
    be retained by the USCG.

4.  Process Contractor Invoices
    4.1    Contractor Responsibilities;
          The contractor will:
          e Send the original invoice to the EPA paying office. The address for
            the paying office is:
                      Financial Management Officer
                  Accounting Operations Office (MD-32)
                     Environmental Protection Agency
                           •Durham,
          e Submit a duplicate copy of the invoice to the USCG OSC.
          e Assure that the USCG contract number and the EPA accounting codes
                                r urn cum; ir-s jiear:y *nc .j^isiv
             the invoice and its copy.  Contractors submitting invoices for work
             performed uncer a contract are to numoer each invoice sequentially
             beginning with one (1) and make a notation on the last invoice under
             the contract with *..v.e phrase "FINAL INVOICE."

   4.2    USCG OSC Responsibilities;
          e  The USCG OSC must certify each correct and proper invoice.  A
             correct and proper invoice is one in which the services performed are
             acceptable and are consistent with the services billed and the
             accounting data properly transcribed.

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  The certification statement to b« used by OSC1* of both agencies for
  all CERCLA eases.

  "It	       	, certify to the best of my
                  IOSC NAME)
  knowledge and belief that the services have been performed and are
  accepted, and that applicable Pollution Incident Reporting System
  (FIRS) and EPA Spill Prevention Control and Countermeasure (SPCC)
  information has been correctly  and complstely submitted."
                               (OSC's Signature)
                                  (date)
e The OSC will forward by certified mail the accepted and certified
  invoice, within 72 hours of receipt of the invoice from the contractor,
  to the EPA paying office (address shown above).

e The USCG OSC shall not, certify invoices which include discrepancies
  between services performed and services billed. In the event that
  there are discrepancies in the invoices, the USCG representative
  shall, immediately upon receipt of the invoice, take appropriate
  action to notify the  contractor and to resolve the discrepancies.

  Within 72 hours of receipt of an invoice containing unresolved
  discrepancies, the OSC shall  forward the invoice by certified mail to
  *.ne  i?A paviraj -;£!!c-s 'address shown ibo**}. The '.nvoica *n'll b«
  sndorseo  *;tfl --.e
   "This invoice contains unresolved discreoancies. DO NOT PAY THIS
   I^YCICS JliTIL '.'-'J 12C2T/"i .^BITTIM .•rCTZriCATICsI TH.i?
   IS REISSUED."
                               TOSC signature)
                             F-e

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         4.3   EPA Responsibilities;
               •  The EPA hms the responsibility to process contract invoices and to
                  make contract payments in a timely manner.  Contract payments are
                  normally made within 30 days after invoice receipt.
               •  Payment will be contingent on the EPA paying office receipt of the
                  original invoice from the contractor and the USCG OSC* certified
                  copy of the invoice.
               •  The paying office will withhold payment for contractor services if the
                  OSC has not certified the invoice. Payments  will be made when the
                  discrepancies are resolved and the invoice is reissued and received at
                  the paying office.
               •  The paying office will not pay any response costs in excess of the
                  dollar amount of the contract. In the event that a contractor's
                  service exceeds the dollar amount of the contract, the EPA paying
                  office will inform the USCG District Representative who will take
                  appropriate action.
             FINANCIAL^ MANAGEMENT;
 r
             The USCG and EPA agree that the USCG may obligate up to $50,000 per release without
 [            prior approval from EPA. Approval to obligate amounts in excess of the $50,000 ceiling
             must be obtained from:
r
                                         Cp-eraiicns jJrancr.
                                       Hesponse  3ivtsion
                    Office of Emergency and Remedial Response
                          Zr,vijronm*ntai Protection .Agency
                                401 M Street. S. W.
                                   ' 202) 'J-4S-105?

The USCG will modify, as necessary, any existing contracts to reflect each ceiling
increase. Certified copies of the contract modification must be submitted to the EPA
paying office.

The USCG and EPA recognize that CERCLA requires that response actions cease when
$1 million is obligated or 6 months have elapsed from the date of initial response, except
as authorized under Section 104(cXD, thereof.
                                               F-7

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REPORTING REQUIREMENTS:  POLREPS

The USCG and th« EPA agree that tht EPA, toting in the capacity as manager of th«
Hazardous SubfUnoe Response Trust Fund, requires up-to-date information on CERCLA
response actions and the related obligations of CERCLA funds for these actions.
Pollution Reports (POLREPS) are submitted by USCG OSC*t to USCG District
Commanders. POLREPS provide factual operational data relating to a  release and a
current accounting of project coats. The USCG OSC will submit a duplicate copy of all
POLREP's to the Director, Emergency Response Division, EPA, (TWX * 710-«229289) for
the purpose of communicating CERCLA response and fund obligation data to EPA. The
initial POLREP will be sent within 24 hours of initiating a response action, if information
is available. Once the initial report is completed, progress POLREPS should be sent on a
routine basis.
PERIOD OF AGREEMENT:

This Memorandum shall continue in effect until modified or amended by the assent of
both parties or terminated by either party upon a thirty (30) days advance written notice
to th« ether p«?ty.
Nothing in this agreement is intended to diminish or otherwise affect the statutory
authority of the agencies involved.

This Memorandum will become effective at noon on the date of the last signature below.
   r  r>
      .-
CHRIST(*?RXJ. CAPPER
                                                Office or Soua rfasxts *nc
                                                   S.Ti.srjsr.av Gascons*
        DATE                                   '    DATE
                                  p-e

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