US'XTED  STATES  Ki;V7.F.C::ME;.T>vL FROTHCTICK AGENCX
                                        Kegj.cn V
                                      NOTICE
TO:       Construction Grant  Program Branch and
            Section Chiefs

FROM:     Todd A. Cayer, Assistant  Divisipn-Director
            for Construction  Grants
DATE:  August 2, 1973
SUBJECT:  Program Requirements  Memorandum {PRM)  No.  79-10   Subject:
          '"Qualification of Major Items of Equipment"
          Attached  for your  information is  a copy of the subject Program
          Requirements Meirsorandum.   Each Branch Chief is hereby requested to
          suggest/recornnxend  implementation  procedures/nethodoiogy, lesd
          responsibility,  etc.,  by  close of business of the fifth full workday
          after the: date of  this notice.  In addition, by copy of t-his notice,
          each State  agency—particularly those with- a State Management
          Assistance  Program,  205 Delegation Agreement, if the content of the
          PRM. pertains to  a  function contained therein--:! s invited to vrite
          or call tr:e SMAP Manager, or me,  to provide consents.

          In the evcm. the implementation procedures require additional copies
          before s'.aff members receive a copy via the EPA/GSA Denver n\ail-out
          contract,- reproduction will be handled centrally.  In the int.trini,
          please re:.rain from  xeroxing copies.

          Attachment

          Cy to:  C.  Sutfin, Director,- 5K
                  J.  Htuilon, SMAP Manager
                  Rr  Lee,  Management System Coordinator
                 *T.  Wallin, Chief, Grant Adm. Section, JEPA
                 *J.  Kreiger,  .Chief, Facilities  Dev.  Branch, IMSPCB
                 *R.  Hinshon,  Chief, Grants Acm. Section,  MDNR
                 *P.  Beaton, Chief, Facilities Section, MPCA
                 *G.  Binder, Chief, Div.  of Public Wastewater, OEPA
                 *P.  Harder, Chief, Gr&r.t-in-Aid Section,  V7DNP.

          *Copy  fon^ardcd  to the respective FPB State Section Chief for inclusior
            in*the daily C03  mailout of State copies of project correspondence.
           02-27-79'

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$3?s1 1    UNITED STATES  ENVIRONMENTAL. PROTECTION AGENCY
    '.•/                      WASHINGTON. O.C.  20460
                               1 2 JUL 1373
                                                            OFFICE OF WATER AND
                                                            HAZARDOUS MATERIALS
                                            Construction Grants
                                            Program Requirements Memorandum
                                            PRM No. 79-10
SUBJECT:   Qualification of Major Items of Equipment

FROM:     John T. Rhett, Deputy Assistant Administrate;  O
          for Hatar Program Operations (WH-546)          f

TO:       Regional Administrator
          Reaions I-X
Purpojie

     This memorandum sets forth guidance for. the qualification of r-z.jor
items of equipment for consti-jction grant projects.  T'r.is guidance -!•• appro-
priate for use daring either Step 2 or Step 3 phases of conxtructior  .
     The following qualification procedures ar«  :cr- optional use by
Environmental Protection Agency (EPA) grantees we  c'esirs to qualify major
ite-,ns of equipment for construction grant projects v;ith the aoprovci of the
EPA regional offices.  Under 40 CFR 35.935-2,^5 FR WO/l , September 27, 1973)
the Regional Administrator may reviev/ grantee procurements including equip-
ment qualification and may request additional grantee actions consistent
with applicable statutes and regulations.

     Qualification is a system that may be used  to ease the administrative
burden of determining responsive, responsible bidders on equipment.  However,
qualification is not a conclusive determination of  responsibility and a
qualified equipment bidder or offerer may be rejected as ncnresponsi ve on
the basis of subsequently introduced information e.g., shop dravnngs.  In all
cases the equipment furnished must comply with the  specifications.

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     There are a number of necessary minimimi requirements for any quali-
fication system.  Whether the qualification procedure is to take place in
Step 2 or Step 3, all of these requirements must ba .-net.  If the qualifica-
tion is to occur during Step 2 the qualification information package will
not contain plans and specifications.  Therefore a qualification information
package containing the relevant information must be prepared.  This package
must contain enough specific detail regarding performance and quality to
assure that equipment sources will thoroughly understand what is required
of the specified equipment,

     Adequate advertisement is critically important to assure that knowledge
of the project is widespread and so that new manufacturers, small firms  and
minority businesses are provided an opportunity to compete. Adequate time
must be allowed for submission of  the necessary information for qualification
review since an overly strict time frame would li.Tsit ccrioetition. This
should conform to 40 CFR 35.938-4(b) ,(43 FR 44080, September 27, 1978),
generally 30 days.  Adequate time must also be provided "or the engineering
evaluation of the qualification packages submitted.
A.  Advertisement

    The grantee is responsible for accomplishing aiic-cuata advertiser'.-it for
qualification. Whether qualification occurs durinc 5':;33 2, or during Step 3,
the advertisement procedure shall conform ~o Section 35.938—l(a) or  lie EPA
regulations.  The advertisement procedure for qualification  shall «";o conform
to the local regulations regarding advertisement?  for construction  .ids.
In addition to advertisements, private mailings to krown equipment  sources
may be made.  Mailing lists of equipment sources are available  from  ~rade
join-rials and technical associations.  The.advertir.r:rn?nt shall contain all
information needed by the sources to properly subrni*: information regarding
their equipment for consideration. The advertisement shall include  ;:ie
following as a minimum:

     1.  Address and telephone number of grantee.

     2.  Name, size and type of plant.

     3.  Name, address, and telephone number of the designer and
         name of contact for inquiries.

     4.  Location where qualification information  package can be obtained.

     5.  Cost of qualification information package — (this  should  not exceed
         the price that bidders must pay to obtain bidding documents).

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     £,  Brief schedule of  equiprent  needed in  che construction project
         that, is to  be qualified  (a.g.,  filter  press).

     7.  Locations of qualification  information for review by interested
         individuals.  These  locations  should be the S2r*e as those used
         for additional information  for contractors interested in bidding.

     8.  Deadline for submittal  of qualification packages by equipment
         sources.  This should  be a  iirinimuni of  30 days  from date of
         advertisement to allow adequate time for equipment sources to
         prepare their qualification  package.  Longer time periods should
         •be provided for qualification  submission for complex systems.

S.  Qualification Information Package

    The  qualification information package, prepar-ed ty  the design engineer,
shall  include the construction  bid package plans and >:;cificaticns or
suitable extracts of this  information if qualification  occurs dur:ng Step 2.
These  specifications snail  be performance specifications  wher* possible and
in  all other-cases conform  to tne tvo brand nsrr.es-or e:.:-al requirerr'.^r.t.  In
addition to the plans and  specifications, a description of the pac'\:::;e the
equipment sources submit for  qualification con si cere: "10:1  should be included.

     The equipment sources  should submit catalog cuts or  readily avi lable
specifications and drawings of  their aquipir.ent  ana 3~y  suppleventsr\ information
that v/ould be helpful  in the  evaluation.  It should re  stressed tlj.~ shop
drawing  quality submittals  are not required or  v^ntsc in  this phas;: :f the
project.

     All equipment manufacturers or distributors Intsrsstsd in supplying their
equipment for the project must submit a aualificaticr. package for .v.v..roval,
including the suppliers who propose to  furnish  the r:suipi~eni: ivhic.r -.:;/
have been preliminarily named to indicate the salient: requirements CT  the
equipment desired.   This  is required so that all s-aui picric offerers rave tne
same opportunity  to  submit  information  for consideration, ar.cl to assure that
the equipment offered  fully-meets all requirements of the specifications.

    •A  time schedule  of  the  qualification and bidding process must be
 included in the qualification information package.

C_   Evaluation

     Evaluation of  the  qualification submission shall be  completed by
the design engineer  within  30 days from date of closing of submittals  of
qualification packages.  At the end of  the review period, the grantee
v/ill notify all proposers  of  their status (fay registered  mail return

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receipt requested).  Such correspondence should contain notice consistent
with EPA protest regulations described below that any protest actions must
take pl'dce within the time limitations described in 40 CFR 3S.939(b), (43
FR 44083, September 27, 1978).  3y addendum to the specifications, the
grantee will' notify the holders of the bid package of the equipment that
has been qualified for the specific project.

D.   Protest Procedures

     Protest procedures regarding qualification must conform to EPA reg-
ulations 40 CFR Section 35.939, {43 FR 44083, September 27, 1978).

     The  proposer  of any  equipment qualified as  a result of a protest
will be  notified by the grantee and a  further addendum to the specifications
will be  sent to the bid package holders.

     In  those cases when  qualification takes place during Step 3  the
entire process  (including pretests to  the  grantee-, if any) should  take  place
within tne  time frame of  the  advertisement for construction bids  and tne  bid
opening.  When qualification  takes place during  the Step 2 adequate time
must be  allowed for sucmittals and prcrapt  determination of qualified
equipment must be  made.   All  protests  should be  resolved before the bidding
process.  In order to satisfy this requirement,  grantees must stite in  the"
qualification information package and  notification to proposers of their
status that any decision  on qualification  is final grantee action  and the
time for  protests  under 40 -CFR 35.939(b),  (43 FR 44083, September  27, 1978),
begins to run from the date the proposers  receive notification of  their
status from the grantee.  Failure to protest within one week of this time
period will result in finding the protest  untimely.  Consistent with the
procedures  of this memorandum, after determination of the qualified equip-
ment  no  other equipment  can  be considered.

     Qualification does not exempt the supplier  from meeting the
specifications.  The specifications are the final authority for acceptance
of equipment.  Approval of a  qualification package does not eliminate the
need for  shop drawing submittals and approvals during construction.


E.  Construction Delays

    If bidding  is  significantly delayed, then the qualification process may
be.reopened by the grantee with the EPA regional office approval  in order-
to, allow  consid"eraMen of equipment sources that may then be interested in
supplying equipment.  In  such cases the previously qualified equipment  need
not be reconsidered.

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F.  Other Qua!ifi cation Procedures

    Qualification procedures consistent with state or local law which
provide the same considerations in terms of competition may be used
in lieu of these procedures.
6.  Public Inspection

    On the c'Jt off date for subtm'ttal of qualification packages for evaluation
a list of all equipment sources that have submitted qualification packages
shall be published.  Whether the packages themselves become available for
public inspection will be decided by local ordinances on the subject of
public disclosure.

H.  Costs

    The cost incurred by the grantee incidental tc qua 1 ification of
major items of ecuipment for inclusion in a construct:or; grant project are
eligible for construction grant funding during the stsp in which tney are
undertaken.
Attachments

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