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

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