United States Department ofthe

BUREAU OF RECLAMATION

Washington, D.C. 20240

IN REPLYREFERTO: SEP 261991

D-5200

WTR-4. 00

MEMORANDUM

To: Regional Director, PN, MP, LC, UC, GP

Attention: PN-1000, PN-3300, MP-100, MP-440, LC-1000, LC-4450, UC-100,

UC-446, GP-1000, GP-2100

-Director, Policy and External Affairs

Attention: W-1500 ‘0-

Director, Operations

Attention: W-6000

From: Eluid L. Martine

Commissioner

Subject: Policy for Collecting Operation and Maintenance ociated with the

Administration ofWater-Related Contracting Activities

This memorandum sets forth a Bureau of Rek~lamation-wide (Reclamation) policy for

implementation of an equitable fee to collect operation and maintenance (O&M) costs for

water-related contracting activities. This policy, which is attached, is effective immediately.

These O&M costs will be assessed for services relevant to contracting activities for water users

benefitting from Reclamation activities.

Itshould be noted that while the attached policy provides some variation in collecting O&M

costs associated with the administration of water-related contracting, Reclamation is required

by law to collect O&M costs. Therefore, unless a situation arises such as those addressed in

the “exemptions” section, Reclamation has no discretion but to collect O&M.

When it was discovered that Reclamation does not currently have consistent methodology for

the collection of costs, under my direction, a team composed of a representative from each

region and the Program Analysis Office was formed. The team’s task was to develop an

equitable.structure to collect these O&M costs.

The team considered only those activities associated with water-related contracting activities.

However, the methodology employed in computing such O&M costs under the structure may

be used in most instances where Reclamation provides a direct benefit through the performance

of a service or activity.

c3~-j
?

2

The philosophy maintained by the team is consistent with the philosophy of the Administration (7 in that it recovers Reclamation’s cost ofdoing business related to the O&M of a project. I -~

believe this policy will provide the foundation for an equitable and uniform schedule when

collecting O&M costs related to the administration of water-related contracting activities, and

should be implemented immediately. The Solicitor’s Office has reviewed the policy and

concurs that it is within Reclamation’s authority pursuant to Reclamation Law.

Members of the team included Ryan Patterson (PN), Kay Moore (MP), Margot Selig (LC),

Mike Loring (IJC), Jim Beadnell (GP), and Sandie Simons (PAO). Any ofthese team

members may be contacted to answer questions.

CC~ ‘•~~

Attachment

cc: Manager, Portland OR, Attention: LCA-1000

Manager, Yakima WA, Attention: UCA-lOOO

Manager, Boise ID, Attention: SRA-1000

Manager, Grand Coulee WA, Attention: G§P-1000. ci.;.

Manager, Folsom CA, Attention: CC-100

Manager, Fresno CA, Attention: SCC-lOO

Manager, Shasta Lake CA, Attention: NC-100

Manager, Klamath Fails OR, Attention: KO-100

Manager, Carson City NV, Attention: LO-100

Mana~r, Sacramento CA, Attention: CVO-lOO

Manager, Phbenix AZ, Attention: PxAO-1000

Manager, Yuma AZ, Attention: YAO-1000

Manager, Boulder City NV, Attention: LCDFO-1000

Manager, Boulder City NV, Attention: BCOO-lOOO

Manager, Temecula CA, Attention: SCAO-lOOO

Manager, Albuquerque NM, Attention: ALB-100

Manager, Grand Junction CO, Attention: WCAO-ND

Manager, Provo UT, Attention: PRO-iQO

Manager, Farmington NM, Attention: FCO-100

Manager, Salt Lake City UT, Attention: UC-600

Manager, Billings MT, Attention: MT-100

Manager, Grand Island NE, Attention: NK-AM

Manager, Loveland CO, Attention: EC-iQO

Manager, Mills WY, Attention: WY-lOO
3

Manager, Oklahoma City OK, Attention: TX-100

Manager, Bismarck ND, Attention: DK-lOO

(w/attachment to each)
,-25~a eS~9S)

Buteau o~, Reclamation UNITED STATES

DEPARTMENT OF TI-fE INTERIOR

BUREAU OF RECLAMATION

RECLAMATION MANUAL TRANSMITTAL SHEET

~ffective Date September 26, 1997 Release No. 63

Manual Number and Title

WTR 02-01 Collection of Operation and Maintenance (O&M) Costs Associated With the Administration of WaterRelated Contracting Activities

Summary of Changes

New release..

FIlIng Instructions:

Remove Sheets

None

Insert Sheets

WTR 02-01 (1 sheet)

Filed by: Date:
S

Reclamation Manual

Directives and Standards

Subject: Collection of Operation and Maintenance (O&M) Costs Associated With The

Administration of Water-Related Contracting Activities

Purpose: To set forth a Reclamation-wide Directives and Standards for implementation of

an equitable fee structure to collect O&M costs for water-related contracting

activities.

Authority: The Reclamation Act of 1902 (Act ofJune 17, 1902; 32 Stat. 388); Reclamation

• Extension Act (Act of August 13, 1914; 38 Stat. 686); The Omnibus Adjustment

Act (Act of may 25, 1926; 44 Stat. 636); and Reclamation Project Act of 1939

(Act of August 4, 1939; 53 Stat. 1187).

Contact: Reclamation Law, Contracts and Repayment, D-5200

1. - Direct Charge. Prior to entering reimbursable contract activities, regional offices will

collect estimated costs up front. The direct charge will be comprised of actual costs.

Actual costs include salary, overhead, travel, materials, and other costs as applicable.

Depending on actual costs, this fee may be adjusted up or down, thereby requiring either

additional moneys to be collected up front or a refund to the entity. These rates differ

from region to region based on overhead costs. Regional finance offices should be

contacted annually to update these rates.

2. Exemptions. The fee will not apply in the following situations:

A. Where explicitiy prohibited by legislation or exectitive order.

B. Right-of-way application, leases, license, permits, etc., for the use of project lands

and facilities for which fees are covered under a variety of authorities.

(Departmental Manual, 346 DM 4.1, prescribes the Department’s policy and

- procedures for rights-of-way projects.)

C. Where the Government is already committed by statute to perform an activity

benefitting the public generally and the costs associated with that activity would be

incurred regardless of the fact that specific individuals and entities may be

incidentally benefitted. Examples include statutorily prescribed land use planning

and statutorily prescribed programmatic environmental statements.

I). Where the contract action is being taken for the primary benefit of a party other than

the contractor or its benefactor (e.g., contracts for the acquisition of water for

Federal purposes or contracts benefitting the public generally). This exception does

not apply where a contract is intended to mitigate harm to the public interest, e.g., a

contract providing that a certain percentage of water be used for instream flows or a

k ~9/26/97

i’JEW RELEASE

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WTR 02-01

Reclamation Manual

Directives and Standards

certain amount of habitat be created as a prerequisite for authorizing a contractor to

take some action.

(63) 9/26/97

NEW RELEASE.

Page 2