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Agency
DIRECTIVE NUMBER:
9242.3-10
TITLE: Congressional Units for FT' 92 Alternative
Remedial Contracting Strategy (ARCS) Program
Management Costs
APPROVAL DATE: March 16> 1992
EFFECTIVE DATE: >1archl6> 1992
ORIGINATING OFFICE:
GSivER
0 FINAL
D DRAFT
LEVEL OF DRAFT
[3 A Signed by AA or OAA
n B Signed by Office Director
O C Review & Comment
REFERENCE (other documents):
OSWER OSWER OSWER
DIRECTIVE DIRECTIVE
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tinned States
Environmental Protection
Agency
Ctt:ce of
Soiic Waste and
Emergency Response
& EPA
DIRECTIVE NUMBER:
9242.3-10
TITLE: Congressional Limits for FY'92 Alternative
Remedial Contracting Strategy (ARCS) Program
Management Costs
APPROVAL DATE: Maj-ch 16> 1992
16> 1992
EFFECTIVE DATE:
ORIGINATING OFFICE:
El FINAL
D DRAFT
LEVEL OF DRAFT
O A Signed by AA or DAA
Q B Signed by Office Director
LT] C Review & Comment
REFERENCE (other documents):
OSWER OSWER OSWER
DIRECTIVE DIRECTIVE
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obnH OSWER Directive Initiation Request 9242
~__^ u-
.3-10
2. Originator Information
Nime of Contact Person Mail Code .office . . eiecnone Code
Superfund Document Cntr. CnorHr. DS-74S DRRR 9fin-Q7Af)
Congressional Limits for FY'92 Alternative Remedial Contracting Strategy (ARCS)
Program Management Costs
4. Summary of Directive i:nc:ude bnet statement ol purpose)
The purpose of this memorandum is to transmit Congressionally mandated targets and
reporting requirements for ARCS contracts Program Management (PM) costs.
>
5. Keyvvcrcs
6a. Does i n.s Directive Suoer'eae Previous ^irectiveisi1
X : NO i ; Yes What directive (numoer. title)
b 0?es it Supplement Previous Cirectrvels)1 ! j 1
X No ' 1 Yes What directive (number, title)
^ Craft .evei
1 ! A - Signed by AA'OAA ! | B - Signed by Office Cirector C - For Review i Comment |
1 !
8. Document to be distributed to States by Headquarters? 1 , Yes |
D - in Development
:-
This Regu«i( Ma«u OSWER Directives System Format Standards.
9 Signature ol Lead Office Directives Coordinator
10. Name ana Title ot Approving Official
; Date
.Date
i
EPA Form 1315-17 (Rev. 5-47) Previous editions are OPsolete.
OSWER OP'VER OSWER O
/E DIRECTIVE DIRECTIVE DIRECTIVE
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
OSWER Directive #9242.3-10
MEMORANDUM
SUBJECT:
FROM:
TO:
Congressional Limits
Contracting Strategy
Richard J. Guimond
Assistant Surgeon Genjefal"1'
Deputy Assistant Administrator
Office of Solid Waste and Emergency Response (OS-100)
<.
Edward J. Hanl<_ ,
Deputy Assistant Administrator
Office of Administration and Resources Management
(PM-208)
Assistant Regional Administrators
Director, Waste Management Division
Regions I, IV, V, and VII
Director, Emergency and Remedial Response Division
Region II
Director, Hazardous Waste Management Division
Regions III, VI, VIII, and IX
Director, Hazardous Waste Division, Region X
PURPOSE
The purpose of this memorandum is to transmit
Congressionally mandated targets and reporting requirements for
ARCS contracts Program Management (PM) costs.
a
BACKGROUND
ARCS contract PM costs, as a percentage of total contract
costs, have been high over the first three years of the program.
High PM costs were due, in part, to one-time start-up
expenditures, such as capital equipment purchases, coupled with a
smaller-than-expected workload.
Through the concerted efforts of your staff, we have
significantly decreased PM costs, and, in fact, have succeeded in
reducing the PM costs to well below 30 percent of total contract
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-2-
costs. The October 1991 Report of the Administrator's Task Force
recommended an FY'92 goal for PM costs of 20 percent. The
FY'92 Appropriations Bill, however, specified that, "EPA spend no
more than 15 percent of the total ARCS budget on program
management." The House-Senate conferees further requested that
both total ARCS program and PM costs be reported quarterly to the
Committee on Appropriations.
OBJECTIVE
Our objectives are to reduce and monitor ARCS PM costs. Our
goal is to achieve an FY'92 national target of PM to cost ratio
of 15 percent or less. PM to cost ratio is defined as:
$ Program Management Expended
$ Total Contract Expenditures
The Agency is committed to achieve a national PM to cost
ratio of 15 percent under ARCS contracts and to report progress
to Congress 30 days after the end of each quarter. EPA will '
report ARCS dollars expended in order to reflect the intent of
Congress.
IMPLEMENTATION
Each Region should establish PM to cost goals for each ARCS
contract for FY'92. The contract-specific goals should be
achievable and, when aggregated on a Regional basis, reflect the
goal of 15 percent or less for PM costs. The contract specific
goals should be reported to Chief, Design and Construction
Management Branch (OS-220W), by April 3, 1992.
Each Region should continue to provide quarterly information
on: 1) total PM expenditures and 2) total contract expenditures
for each contract to the Procurement and Contract Management
Division (PCMD, attention David Boyd). Headquarters will
consolidate the Regional inputs and report the national average
to Congress.
For further information, call Scott Fredericks, Chief,
Remedial Action and Contracts Section, FTS 678-8346.
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