WSPC01926

• File Number: 8220.106.O
• Description: Colorado River Water Projects - Animas La Plata - Project Funding
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 3/24/2004
• Author: Various
• Title: Animas La Plata Project Funding - Testimony - US Senate Subcommittee on Energy and Water Development - ALP Project - 03-24-04
• Water Supply Pro - Doc Type: Report/Study

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03/26/2004 '13:31

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only responsible action is to complete implementation of the
Settlement Agreement by constructing the Animas-La Plata Project.

The Indian Self-Dete%miDation and Zcmcation Ass1.stanoe Act
(ISDUA)
P.t.. 93-638

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The ISDEAA is designed to provide meaningful involvement by Tribes
in the administration, planning and conduct of Indian programs.
The Act requires the Federal Government to contract with Indian
Tribes for programs, functions, services and activities that are
designed to benefit Indians. The design and construction of ALP
has been made subject to the ISDEAA through the' Colorado Ute
Indian Water Rights Settlement Act of 1988 and we are fully in
support of that settlement provision.

With respect to the ISDEAA or the 638 .process,.. the State. of
Colorado has no experience' other than through the Animas-La'Plata
Project. We understand that a Tribe under ISDEAA is entitled to
negotiate reasonable costs for performing the contract, the costs
for preparing the proposal, reasonable general administration
costs, a reasonable profit, and auditing expenses. The
negotiating process provides the tribes access to project cost
estimates, in this case those of the U.s. Bureau of Reclamation,
in advance of the negotiations. This process may not result in a
project cost as low as what would likely occur through a
competitive bid process. Furthennore, it appears difficult to
identify what the increased cost of working through ISDEAA would
be. Based on information from the Bureau of Reclamation for the
Stage 1 work on the Ridges Basin Inlet Conduit and Ridges Basin
Dam OUtlet Works Excavation, both of which are now complete, the
final contract values have exceeded the original contract values.
Some of this may actually be a savings due to the inclusion of
work that was scheduled for a future phase, but breaking that out
r~quires day-by-day monitoring of the project..

OUr main concern is that the ISDEAA or 638 costs, which are non-
reimburseable by law, be carefully monitored and not passed on to
those that have or potentially could have repayment contracts.
Given the cost increases to the Animas-La Plata Project, we desire
assurances that the ISDEA or 638 costs do not make the cost of
project unaffordable to the end users.
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We appreciate the opportunity to comment before the committee
today on the importance of the Animas-La Plata Project to Colorado
and to the completion of the Ute Water Settlement Agreement.

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