WSP09090

• File Number: 8273.100.10
• Description: Colorado River Basin Salinity Control - Federal Agency Reports - BOR
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 2/1/1996
• Title: CRBSCP - Report to Congress on the Bureau of Reclamation Basinwide Program
• Water Supply Pro - Doc Type: Report/Study

Conceptual Request for Proposals

Cost effectiveness shall be computed by the offeror in three steps by:

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(a) ~ortizing the capital costs associated with constructing or
impl+menting the proposal. This includes all costs of planning,
NEP./\ compliance, technical assistance, education, design, permitting,
finanicing, construction, mitigation, overhead, and other one-time costs
for w1:Uch the offeror will seek reimbursement from the Government
under the terms of the agreement, If applicable, the estimated cost of
Government assistance shall also be included in the amortization of
capit~1 costs, The amortization will be computed over the useful life of
the ptoject using an interest rate of _ percent, Each proposal shall be
developed to a sufficient level of detail to enable Reclamation to perform
an independent evaluation of the amortization,

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(b) Calculating the average annual costs associated with operating or
implementing the proposal. This includes all annual costs of providing
technical assistance, education, monitoring, facility operation and
maintienance, mitigation operation and maintenance, and other annual
or reo;ccurring costs for which the offeror will seek reimbursement from
the GOvernment under the terms of the agreement. Irregular or non-
uniform annual costs shall first be capitalized to present worth costs and
then 4mortized to uniform annual costs over the useful life of the project
using tan interest rate of _ percent, Replacement costs should be
includ'ed as an annual operation and maintenance cost if these
replac,ements are required to sustain salinity control benefits over the
useful' life of the project and reimbursement will be sought under the
terms iof the agreement, If applicable, the estimated cost of annual or
recurr,ing Government assistance shall also be included in the average
annuail cost calculation, Each proposal shall be developed to a sufficient
level cif detail to enable Reclamation to perform an independent
evaluation of operation, maintenance, and replacement costs,

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(c) A~ding amortized capital costs and average annual costs and
dividirlg this combined annual cost by the annual number of tons of salt
load r~duction, thereby determining the annual cost per ton of salt load
reduction, If projected salt load reduction varies over the life of the
projecd, the average annual salt load reduction should be used to
detenrline the annual cost per ton of salt load reduction,

Each proposal shall be developed to a sufficient level of detail to perform
an ind~pendent evaluation of project benefits; i,e., the annual number of
tons of salt load reduction,

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