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' ------- $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. ------- 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). ------- £, 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 ------- 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. ------- 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 ------- V o 01 o O in its -X t- O o fo -»-> c c. o GJ '»" r~ i i o5 ra c/i o i> >r i- -r- •a CO u o *t- QJ rj c: cu E. u Ti Designers Consid- eration and Evalu- ation Packages 30 days Protest Period (if any) STEP 2 ------- l/l -a CO •p c c o Oi -r- £: •*-* in (J KS (J rd Cr H- O 1-J OJ 4-> C1 •r- (T3 Jo 3 rt) 1/1 Ci- Equipment Sources Prepare'Qualifi- cation Packages 30 days minimum t/i CI) U J- o oo OJ V ^ £ u O- n3 •r- O- ^ CTXJ UJ -r- co c o O O 4-> -a o c Designers Consider- ation and Evaluation Packages 30 -t-J c O) E a. o Protest Period (if any) STEP 3 ------- |