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ENVIRONMENTAL PROTECTION AGENCY
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Environmental News
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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/
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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.
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