Washington, DC 20400
R Directive Initiation Request
2. Originator Information
1. Directive Number
9295.2-04
Maa Cod*
OS-220
Office
HSCD
Telephone Code
3. Till*
EPA/US Army Corps of Engineers Payment Process/ Direct Cite/
Revised Reimbursement Methods
4, Summary ol Directive (include Cnef statement of purpose)
Transmits new procedures for the disbursement of funds to the U.S.
Army Corps of Engineers under EP lead Superfund projects.
5. Keyword*
Interaoencv Agreements/ 'USAGE/ Superfund/ Cleanups/ remedial design/actr
This Dir
oe>. ooes I nis uirecuve super seoe rrevious uirecuveis;.
b. Dots It Supplement Previous Di4ctrve(s)7
No
No
Yes What directive (number, tide)
Yet What drectrve (number. We)
7. Dnfi Level
A-SiflnedbyAA/DAA
B - Signed by Office Director
C - For Review & Comment
D - Hi Development
8. Document to be distributed to States by Headquarters? I I Y«* |3 NO
This Request Meets OSWER Directives System Format Standards.
9. Signature of Lead Office Directives Coordinator
Betti C. VanEpps, Superfund Documents Coordinator
10. Name and Title ol Approving Official
Henry L. Longest II / Davide P. Ryan, John Chamberlin
Date
3/21/90
Date
3/21/90
EPA Form 1315-17 (Rev. $-17) Previous editiona are obsolete.
Copies of this document may be obtained from the Superfund Docket
and Information Center - OS-245, Telephone 202-382-6940
OSWER OSWER OSWER O
VE DIRECTIVE DIRECTIVE DIRECTIVE
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USE,
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
MAR Z1 1990
OFFICE Of
SOLID WASTE AND EMERGENCY RESPONSE
OERR 9295.2-04
MEMORANDUM
SUBJECT: EPA/U.S. Army Corp
Direct Cite/Revis
FROM:
ayment Process,
Metl
Henry L. Longest
Office of Emerg
TO:
Administration
David P. Ry
Office of
John C.
Offic
Addressees
Purpose
The purpose of this memorandum is to transmit new procedures
for the disbursement of funds to the U.S. Army Corps of Engineers
(USAGE) under EPA lead Superfund projects.
Background
USACE provides engineering and construction management
services to assist EPA in the implementation of the Superfund
program. USACE services include remedial investigation and
feasibility studies, -remedial design, remedial action, oversight
of potentially responsible parties, and technical assistance.
These services have been provided since 1982 through several
Memorandums of Understanding.
Currently, USACE costs are charged to USACE appropriations
and then reimbursed by EPA. Prior to reimbursement, payment
requests undergo a lengthy review and approval process within
EPA. This reimbursement method increases the complexity of the
payment process leading to delays in payment to the USACE.
frvud OH Rtcycltd faptr
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In an attempt to improve the payment process, a proposal
entitled "Direct Cite/Modified Transfer Allocation Method for
Funding IAGS" was issued on October 14, 1988. The direct cite
method expedites payment to USAGE contractors by having EPA make
payments directly to the contractor based on USAGE certification.
This method provides for the EPA review process to occur after the
payment is made and any corrective action taken on subsequent
payment requests. A monthly transfer allocation was proposed to
cover USAGE in-house cost.
A demonstration project to test this method was conducted
between January and June of 1989. Evaluation criteria were
developed and an evaluation team formed to meet and assess the
payment methods in accordance with the criteria. The test was
evaluated using the criteria in late June and results reported to
the evaluation team members in July. Comments from the team
members were received and incorporated into a written report on
the demonstration project. The evaluation team recommended that
the direct cite process be initiated for all new USAGE Superfund
projects. The team wanted additional time to further assess the
transfer allocation process for in-house costs prior to making any
final recommendations on this process. A revised reimbursement
process was recommended as an interim payment process for in-house
USAGE costs.
Objective
Modification of the current payment processes between EPA and
USAGE will reduce the complexity of the payment process and the
resulting payment delays. The proposed changes will also remove
the EPA RPM from the direct line of approval. This change will
reduce payment process time and the stress on the EPA RPM to take
immediate action on a payment request.
Implementation
Nev Projects: Implementation of the direct cite process for
contract costs and the revised reimbursement process for in-house
costs shall be initiated on March 1, 1990. Interagency
agreements (ZAGs) for"projects initiated after this date shall
reflect both the direct cite and revised reimbursement processes.
The following clause is recommended in lieu of the clause found in
attachment B of the Model lAGs:
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7. Other EPA Involvement
a. Payment to USAGE contractors is contingent upon
receipt of a USAGE certified payment request.
Reimbursement to USAGE for in-house costs is
contingent upon receipt of a USAGE certified
reimbursement request (SF 1080). Final project
payments for specific contracts and in-house cost
shall be reviewed and approved by the EPA Regional
program office.
The following payment processes will be used for all new
USAGE projects.
Contractor Costs - In this direct cite process (please refer
to Figure 1) the remedial design or remedial action
contractor shall submit a signed payment request to the USAGE
Project Engineer. The request will be reviewed and
certified by USAGE and forwarded to the EPA Cincinnati
Financial Management Center (CFMC). CFMC will make payment
directly to the contractor. USAGE will also send a copy of
the payment request to the EPA RPM for his review. If the
EPA RPM disagrees with the payment request, the problem shall
be discussed with the USAGE Project Manager. Any changes
required to subsequent pay requests will be documented in a
memorandum from the EPA RPM to the USAGE Project Manager.
CFMC will be sent a copy of this memorandum. EPA RPM review
and concurrence shall be obtained prior to the final contract
payment.
USAGE In-House Costs - Compensation for USAGE in-house costs
will continue to be handled under the existing reimbursement
process with the revision that the payment will be made prior
to EPA RPM review (see Figure 2). Monthly, USAGE shall
provide EPA a schedule/bill of their in-house costs on a SF
1080 form. This form shall be certified by the USAGE and
sent directly to CFMC for payment. A copy shall be sent to
the EPA RPM for review. Resolution of disagreements shall be
handled in a similar fashion as the direct cite process. EPA
RPM review and concurrence shall be obtained prior to the
final project payment to USAGE.
Existing Projects: Existing USAGE contracts would have to be
amended, along with existing lAGs, to initiate the direct cite
payment process. Although complete implementation has merit, the
retrofitting of existing projects will be difficult. For this
reason, the revised reimbursement payment process shall be
implemented for all payment requests made by USAGE for existing
projects (please refer to Figure 3). USAGE certified SF 1080
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forms for reimbursement of contractor payments and in-house costs
shall be sent directly to CFMC for payment. USAGE shall send the
EPA RPM copies of all reimbursement requests for review. If the
EPA RPM disagrees with the request, the problem shall be discussed
with the USAGE Project Manager. Any changes required to
subsequent pay requests will be documented in a memorandum from
the EPA RPM to the USAGE Project Manager. CFMC will be sent a
copy of this memorandum. EPA RPM review and concurrence shall be
obtained prior to the final project payment to USAGE.
This memorandum shall be considered a unilateral amendment to
all existing lAGs between EPA and USAGE implementing the revised
reimbursement payment process. Effective March 1, 1990, all pay
requests for existing USAGE Superfund projects shall be certified
by USAGE and forwarded directly to CFMC for payment with a copy to
the appropriate EPA RPM.
USAGE is aware of this action and is issuing its own guidance
to their staff.
Addressees: Director, Waste Management Division
Regions I, IV, V, VII, VIII
Director, Emergency and Remedial Response Division
Region II
Director, Hazardous Waste Management Division
Regions III, VI
Director, Toxics & Waste Management Division
Region IX
Director, Hazardous Waste Division
Region X
Assistant Regional Administrators for
Administration and Management
Regions I through X
Financial Management Officer, Superfund Accounting
Branch
Cincinnati Accounting Operations Office
Attachment
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EPA / USAGE PAYMENT PROCEDURES
Figure 1
Direct Cite Payment Process for New Projects
CONTRACTOR
Submits Pay Request
EPA FINANCE
USAGE Project Manager
Pays Contractor
Reviews & Certifies Payment
Payment to Contractor
EPA Regional Project Manager
o Reviews after Payment
o Discusses Variances with
USACE Project Manager
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EPA / USAGE PAYMENT PROCEDURES
Figure 2
Revised Reimbursement Payment for USAGE In-House Costs
USAGE Project Manager
Submits Certified Pay Request
EPA FINANCE
EPA Regional Project Manager
o Reviews after Payment
o Discusses Variances with
USAGE Project Manager
Reimburses USAGE
Reimbursement to USAGE
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EPA /USAGE PAYMENT PROCEDURES
Figure 3
Revised Reimbursement Payment for Existing Projects
CONTRACTOR
Submits Pay Request
USAGE Project Manager
^Payment to Contractor
Reviews & Certifies Payment
EPA Regional Project Manager
o Reviews after Payment
o Discusses Variances with
USACE Project Manager
EPA FINANCE
Reimburses USACE
Reimbursement to USACE
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
JAN 30 1990
OSWER Directive Number 9835.3 - 1A
MEMORANDUM
SUBJECT: Model Administrative Order on Consent for CERCLA
Remedial Investigation/Feasibility study
FROM: Bruce M. Diamond, Director'
Office of Waste Programs Enforcement
Glenn L. Unterberger
Associate Enforcement Counsel for Waste
Office of Enforcement and Compliance Monitoring
TO: Addressees
Attached is a model Administrative Order on Consent to be
used for Remedial Investigations and Feasibility Studies (RI/FSs)
conducted by potentially responsible parties under CERCLA. This
model should be used in conjunction with a document transmitted
to the Regions on June 2, 1989, entitled "Model Statement of Work
for a Remedial Investigation and Feasibility Study Conducted by
Potentially Responsible Parties" (from Bruce Diamond, OWPE, OSWER
Directive 19835.8).
The purpose of this model order is to improve the quality of
RI/FSs conducted by potentially responsible parties by laying out
in detail exactly what is expected during the RI/FS process for a
quality project. It should also promote consistency among
Regions aae\ cut down on the time involved in preparing for
settlement 'negotiations . It is consistent with the "Guidance for
Conducting. Remedial Investigations and Feasibility Studies Under
CERCLA" (October 1988, OSWER Directive 19355.3-01), and other
relevant guidance documents and regulations.
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Any questions or additional insights you have should be
directed to Deborah Hartman of OWPE at 382-2034. Helen Kennedy
of OECM is also available to provide further advice at 382-3082.
Attachment
Addressees:
Waste Management Division Directors, Regions I-X
Regional Counsels, Regions I-X
CERCLA Enforcement Branch Chiefs, Regions I-X
Regional Counsel, CERCLA Branch Chiefs, Regions I-X
Henry L. Longest, OERR
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"\ UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
JAN 30 1990
OSWER Directive Number 9835.3 - 1A
MEMORANDUM
SUBJECT: Model Administrative Order on Consent for CERCLA
Remedial Investigation/Feasibility Study
FROM: Bruce M. Diamond, Director"
Office of Waste Programs Enforcement
Glenn L. Unterberger
Associate Enforcement Counsel for Waste
Office of Enforcement and Compliance Monitoring
TO: Addressees
Attached is a model Administrative Order on Consent to be
used for Remedial Investigations and Feasibility Studies (RI/FSs)
conducted by potentially responsible parties under CERCLA. This
model should be used in conjunction with a document transmitted
to the Regions on June 2, 1989, entitled "Model Statement of Work
for a Remedial Investigation and Feasibility Study Conducted by
Potentially Responsible Parties'* (from Bruce Diamond, OWPE, OSWER
Directive #9835.8) .
The purpose of this model order is to improve the quality of
RI/FSs conducted by potentially responsible parties by laying out
in detail exactly what is expected during the RI/FS process for a
quality project. It should also promote consistency among
Regions an* cut down on the time involved in preparing for
settlement*»egotiations . It is consistent with the "Guidance for
Conducting. Remedial Investigations and Feasibility Studies Under
CERCLA" (October 1988, OSWER Directive 19355.3-01), and other
relevant guidance documents and regulations.
-------
-2-
Any questions or additional insights you have should be
directed to Deborah Hartman of OWPE at 382-2034. Helen Kennedy
of OECM is also available to provide further advice at 382-3082.
Attachment
Addressees:
Waste Management Division Directors, Regions I-X
Regional Counsels, Regions I-X
CERCLA Enforcement Branch Chiefs, Regions I-X
Regional Counsel, CERCLA Branch Chiefs, Regions I-X
Henry L. Longest, OERR
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