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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
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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.
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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.
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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
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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
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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
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Charles E. Findley Director, Hazardous Waste Division
Philip G.,Millam Chief, Superfund Branch
Jonell Allamano Chief, Support Services Branch
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