UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 POSTAGE AND FEES PAID ————— U.S. ENVIRONMENTAL PROTECTION AGENCY OFFICIAL BUSINESS EPA-335 PENALTY FOR PRIV ATE'USG~f5ff0 AN EQUAL OPPORTUNITY EMPLOYER A Environmental News Niles (202) 755-0344 FOR IMMEDIATE RELEASE TUESDAY, AUGUST 10, 1976 EPA PROJECT REVIEW TEAMS TO FOCUS ON TREATMENT PLANT CONSTRUCTION Environmental Protection Agency Administrator Russell E. Train announced today the establishment of a financial-technical review program as a further step toward insuring the integrity of the Agency's multi-billion dollar grant program that helps municipalities build or upgrade waste water treatment facilities. Under the new program, teams of EPA engineers and auditors will conduct thorough on-site reviews of selected projects through- out the Nation during the construction phases of the projects. The jpb of the teams will be to determine whether: —construction contract designs are consistent with the planning; —contract specifications follow and complement the contract plans; —construction management procedures used by the grantee and his architect-engineer (A-E) consultants insure an acceptable project upon completion; —interim and final construction inspectipns are achieving their purpose; —adequate procedures exist to assure compliance with "Federal arid State laws, regulations, arid policies/ (more) Return this sheet if you do NOT wish to receive this material (J, or if change of address is needed ~ (indicate change, including zip code). EPA FORM 1510-1 (REV. 8-72) R-201 ------- -2- Establishment of the review £eams is one of a number of vigorous steps taken by the Agency in recent months to mini- mize the chances of improprieties in the construction grant program which the EPA Administrator has characterized as one of the biggest public works programs in the nation. Train states that no large scale improprieties or irregularities have been discovered, but that in a program of such magnitude, safeguards are necessary to minimize oppor- tunities for financial or technical irregularities. Train points out that the grantees and State agencies (which have primary responsibility in insuring financial and technical integrity of projects under their control) have been doing a good job of overseeing the projects. "However," he said, "EPA must recognize and respond to its its ultimate responsibility for|the proper Expenditure of the ?18 billion in Federal public funds available for this program." Steps already taken by the Agency to help insure the integrity of the program have included: an expanded audit program, institution of value engineering (a double check on cost-effectiveness in design), and the use of inter-agency agreements with the Army Corps of Engineers and General Services Administration to expand inspection capabilities. Also, regulations have been issued governing construction grant contract subagreements. The new review program focusing on construction aspects of the grant process and utilizing engineering expertise, is consistent with the natural evolution of the grant program from the planning and design stage to actual construction, where about 90 percent of the Federal funds will be spent. In addition, it reflects the gradual shift from obligation of funds to a period in which foliar outlays will dominate. # # # US EPA Headquarters and Chemical Libraries EPA West Bldg Room 3340 Maifcode 34G4T 1301 Constitution Ave NW Washington DC 20004 ~ "202-566-0556 R-201 ------- |