TJ I UNITED STATES ENVIRONMENTAL PROTECTION AGENCY *' WASHINGTON. D.C. 20460 JUL 29 1992 OFFICE OF SOLID WASTE AND EMERGENCY RESPONSE OERR Directive #9242.3-09 MEMORANDUM SUBJECT: Use of Time and Materials and Cost Reimbursement Subcontracts for Remedial Actions under the Alternative Remedial Contracting Strategy Contracts FROM: Henry L. Longest II, Director Office of Emergency and T" David jr. O'Connor, Director Procurement and Contracts Manement Dvision TO: Addressees PURPOSE To establish agency guidance on the use of time and materials and cost reimbursement contracts for remedial actions. This directive will address the use of time and materials and cost reimbursement contracts in general and provide specific instruction regarding the use of these approaches in sub- contracting under the Alternative Remedial Contracting Strategy (ARCS) contracts. BACKGROUND The Office of Solid Waste and Emergency Response issued a report entitled Suoerfund 30-Day Task Force Report. Accelerating Superfund Cleanups and Evaluating Risk at Superfund Sites on July 19, 1991. The report identified Superfund contracting procedures as an obstacle to the rapid implementation of remedies at some types of Superfund sites. One option discussed within the report was expanding the types of remedial contracts to match the current flexibility of the removal program's contracting mechanisms. Traditionally, we use time and materials and cost reimbursement contracts for removal activities. As implemented through the Emergency Response Contract Strategy contracts, these contracts are beneficial for quick response actions where time is not available to develop detailed plans and specifications. The removal concept also can extend to remedial projects where tir.e ------- - 2 - spent in preparing a detailed design package would not substantially reduce the uncertainty associated with the type of work to be preformed or quantity of material to be remediated. It may be possible to shorten or eliminate the design phase at certain types of sites and proceed directly to remedial action through the use of these types of contracts. Examples include: 1) excavation and off site disposal of contaminated soils and debris, 2) the dismantling and decontamination of contaminated tanks and buildings, 3) stabilization of soils, 4) placement of temporary soil covers, 5) lagoon or pond closures, and 6) interim ground water plume control measures. Regardless of the project lead - EPA contract, U.S. Army Corps of Engineers, State, or Potentially Responsible Party; time and materials and cost reimbursement contracts offer an alternative to the traditional design, procure, and build approach. IMPLEMENTATION Regions are encouraged to consider the use of alternative contracting approaches to speed the start of remedial actions. Time and material or cost reimbursement contracts can be used with any of the potential project leads available to the Superfund program. In lieu of a formal set of plans and specifications, the time and material or cost reimbursement type contractor relies heavily on direction provided by the contract manager and the Remedial Project Managers. This approach requires routine, continuous and concise direction to the contractor. When consideration is given to using one of these alternative contracting mechanisms, Regional staff should be aware that these contract types place additional liability on the Agency. Experience gained from the management of the removal ERGS contracts would be appropriate in gaging resource and oversight requirements for these projects. There are no restrictions in the current ARCS contracts that preclude the use of time and materials or cost reimbursement subcontract approaches to expedite remedial actions at Superfund sites. The ARCS prime contractor becomes the time and materials or cost reimbursement subcontract manager responsible for the routine, continuous, and concise direction of the subcontractor. The ARCS contractor would be expected to have substantial on-site presence to provide this direction. Remedial Project Manager oversight also, will be required, but not on a full time basis. ------- -3- When considering such actions, Regions are encouraged to consult with the Hazardous Site Control Division (HSCD) and the Procurement and Contracts Management Division (PCMD) for recommendations and guidance in the use of time and materials or cost reimbursement subcontract types. The point of contact in HSCD is William Zobel, FTS 703/308-8354, and the point of contact in PCMD is Sue Anderson, FTS 202/260-9170. ------- Addressees: Region I John F. Kennedy Building Room 2203 Boston, MA 02203 FAX (617)565-3488 Merrill S. Hohman Director, Waste Management Division Dennis Huebner Chief, NH/RI Waste Management Branch Ira Leighton Chief, CT Waste Management Branch Frank Ciavattieri Chief, ME/VT Waste Management Branch Gerald Levy Chief, MA Waste Management Branch Alice Fitzgerald Comptroller Region II 26 Federal Plaza New York, NY 10278 FAX (212)264-8100 Kathleen Callahan Director, Emergency and Remedial Response Division John Frisco Associate Director, New Jersey Programs George Pavlou Associate Director, NY/Caribbean Programs Ron Borsellino Chief, New Jersey Remedial Action Branch Willaim McCabe Chief, NY/Caribbean Remedial Action Branch Raymond Basso Chief, New Jersey Compliance Branch Carole Peterson Chief, NY/Caribbean Compliance Branch James Foley Chief, Facility & Administration Management Branch Region III 841 Chestnut Street Philadelphia, PA 19107 FAX (215)597-7906 Tom Voltaggio Director, Hazardous Haste Management Division Abraham Ferdas Director, Superfund Office Peter Schaul Chief, Superfund Remedial Branch Ken Kryszczun Chief, Superfund Program Branch Robert G. Reed Comptroller Region IV 345 Courtland Street, N.E. Atlanta, GA 30365 FAX (404)347-4486 Don Guinyard Director, Waste Management Division Doug Lair Chief, Emergency & Remedial Response Branch Robert Jourdan Chief, North Superfund Remedial Branch Doug Mundrick Chief, South Superfund Remedial Branch John Gardner Deputy Assistant Regional Administrator ------- Region V 230 South Dearborn Street Chicago, IL 60604 FAX (312)886-9096 David Ullrich Director, Waste Management Division Norm Niedergang Acting Associate Division Director, Superfund John Kelly Acting Chief, Remedial & Enforcement Response Branch Jodi Traub Acting Chief, Superfund Program Management Branch Elissa Speizman Chief, Contracts and Grants Branch Region VI 1445 Ross Avenue 12th Floor, Suite 1200 Dallas, TX 75202 FAX (2J.4) 655-2142 Allyn M. Davis Director, Hazardous Waste Management Division Carl Edlund Chief, Superfund Programs Branch Sam Becker Chief, Superfund Enforcement Branch Betty Williamson Acting Chief, Superfund Information Management Branch Jane Moore Chief, Financial Branch Region VII 726 Minnesota Avenue Kansas City, KS 66101 FAX (913)236-2845 David A. Wagoner Director, Waste Management Division Bob Morby Chief, Sup si-fund Branch Larry Kalwei Acting Chief, Comptroller Branch Region VIII One Denver Plaza, Suite 1300 999 18th Street Denver, CO 80202-2413 FAX (303)293-1647 Robert L. Duprey Director, Hazardous Waste Management Division Wanda Tawton Acting Chief, Superfund Remedial Branch Paula Cifka Acting Chief, Superfund Management Branch Martha Nicodemus Chief, Grants & Superfund Contracts Branch Region IX 215 Fremont Street San Francisco, CA 94105 ------- FAX (415)744-1070 Jeffrey Zelikson Director Toxics and Waste Management Division David Jones Chief, Remedial Action Branch Alexis Strauss Chief, Enforcement Branch Don White Chief, Field Operations Branch Paul Helliker Chief, Support Services Branch Region X 1200 Sixth Avenue Seattle, WA 98101 «& FAX (206)442-4672 •9 v Charles E. Findley Director, Hazardous Waste Division Philip G.,Millam Chief, Superfund Branch Jonell Allamano Chief, Support Services Branch ------- |