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<br />001144 <br /> <br />not detailed or timely enough to a]]ow sponsors input on construction plans and progress, <br />changing conditions, or other information associated with the construction of the Project. <br /> <br />As a result of this finding, the Project Construction Committee was established by <br />Reclamation in 2001 to provide a system to assure that necessary intema] and external <br />coordination and management of the project occurred during construction. <br /> <br />Reclamation has also reconfigured the Project Construction Committee to improve <br />interaction and communications with the sponsors. It is our opinion that this <br />reconfigured process seems to be working quite we]] at this time. <br /> <br />Conclusion and Next Steps <br />Mr. Chairman, despite the cost increases, Animas-La Plata is still a viab]e.project and a <br />high priority for our customers. Moving the project forward is crucial to satisfying the <br />Indian Water Rights Settlement and meeting future non-Indian.municipa] water supply <br />needs in southwestern Colorado and northwestern New Mexico: <br /> <br />Rec]amation has completed or is taking steps to manage and complete the Project in the <br />most cost effective and efficient way possible. These actions, when fu]]y implemented, <br />will provide the safeguards necessary to avoid similar occurrences on this and other <br />Reclamation Projects in the future. <br /> <br />First, the basic construction cost estimate for the Project has been redone by Reclamation. <br />Management efforts will continue to save costs during scheduling of construction and <br />final design of components of the Project. Second, Reclamation has reviewed its internal <br />organizational approach to construction of the Project and reconfigured the organization <br />as necessary to improve construction management and interaction and communication <br />with sponsors. Third, the ISDEA processes are being reviewed to improve efficiencies in <br />construction of the Project. Fourth, as noted above, Reclamation has reconfigured the <br />Project Construction Committee to improve the external communications with Project <br />sponsors. Fifth, Reclamation will use Va]ue Engineering processes, in cooperation with <br />Project sponsors, to seek additional ways to reduce Project construction costs. Finally, <br />Reclamation is reviewing its procedures for cost estimates and construction to identify <br />and correct process deficiencies that may have led to the Animas La-P]ata Project cost <br />estimate prob]erns. <br /> <br />Thank you for the opportunity to testify today and update this Committee on the progress <br />we are making in constructing the Animas La-P]ata Project. I would be happy to answer <br />any questions you may have at this time. <br />