EP 1165-2-1
30 Jul 99
responsibilities. Where non-Federal interests actually undertake
construction of all or part of the authorized project under a specific
statutory authority allowing construction of features of authorized
projects, or construction under the provisions of Section 215 of the
Flood Control Act of 1968, as amended, and Sections 104 and 204 of
WRDA 1986, Section 206 of WRDA 1992 and Section 211 of WRDA 1996, or
for hazardous and toxic waste investigations when deemed warranted by
the government and the sponsor, the sponsor's reasonable, allocable
and allowable costs associated with engineering, design, construction,
supervision, administration, inspection and investigation as well as
the costs of these functions themselves, would be eligible for credit.
The approval of such a request would be formalized in a separate
agreement prepared in accordance with the requlations that govern the
implementation of such actions. Only those actual associated costs
stipulated above are eligible for credit and are to be included in
total project costs and costs shared based on project purposes.
However, the one exception to this rule is that any costs encountered
by the non-Federal sponsor in auditing the Federal records on the
project to assure that their funds were properly used are allowed to
be included in the total project cost and cost shared.
(2) Costs incurred and/or accrued by the non-Federal sponsor
which complement Federal project responsibilities for construction of
the project are not creditable. Such costs include but are not
limited to: participating in and attending meetings to formally
develop and negotiate the PCA; efforts related to developing a
financing plan and costs associated with actually obtaining and
managing local funds; review of the engineering and design documents
related to the construction of the project; a construction inspector
specifically appointed or hired by the non-Federal sponsor to oversee
construction; and attending meetings to discuss the progress of
construction.
(3) While PCAs executed by non-Federal sponsors and the
Federal Government urge close cooperation and joint management of a
project throughout its design and construction, and indeed the sponsor
has the prerogative of conducting such activities in any way they see
fit, it is the reponsibility of the Federal Government's Contracting
Officer to assure that design and construction of a project takes
place in compliance with the plans and specifications and in a timely
and efficient manner. This approach is significantly different from
the approach taken in crediting the non-Federal sponsor for their
efforts in connection with conducting the feasibility study (i.e., all
negotiated costs for efforts performed by the non-Federal sponsor up
to the issuance of the division commander's notice, including but not
limited to: labor (direct and indirect), overhead, supervision and
administration, travel, costs associated with attendance at meetings
(both locally and in Washington, if necessary), are included in total
project cost and cost shared). This distinction must be made clear to
non-Federal sponsors in the earliest stages of PCA negotiation (during
feasibility), in order to avoid confusion and erroneous expectations
as a project progresses toward construction.
i. Credits for Work-in-Kind Performed by Non-Federal Sponsors.
Construction may not be performed by non-Federal sponsors on Civil
Works projects except pursuant to Section 215 of the 1968 Flood
Control Act, as amended; Section 104 of WRDA 1986, as amended (for
flood control); Section 211 of WRDA 1996 (for flood control); Section
204 of WRDA 1986, as amended (for harbor projects); Section 4 of the
Flood Control Act of 1944, as amended (for recreation facilities);
Public Law 84-826, as amended (for beach erosion control projects);
Section 206 of WRDA 1992 (for shoreline protection); or other limited
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