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WSPC01926
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Last modified
1/26/2010 11:15:17 AM
Creation date
10/9/2006 3:05:02 AM
Metadata
Fields
Template:
Water Supply Protection
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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<br />00lH6 <br /> <br />Americans and much of the recruiting is accomplished through the Tribal EmploY/!Ient Rights <br />Offices of the Ute Mountain and Southern Ute Tribes. To further enhance the construction skills <br />of the workforce, the compan)' is training a group of Native Americans as heal'!, equipment <br />operators, mechanics and carpelllers to work on the Animas-La Plata project. There will also be <br />opportunities for Tribal Members to fill office alldfield engineering positions as the IVork gains <br />momentum. <br /> <br />The ALP Contracts awarded to the Tribe and perfonned by its contractor, WCA, are negotiated <br />finn-fixed contracts governed by the rules ofP.L. 93-638. Both the BOR and the Tribe foresaw <br />that due to funding and other constraints required smaller individual contracts would need to be <br />issued in the beginning of construction. For this reason, a Master Contract was developed by <br />both parties that would apply to all future contracts awarded and took care of covered every <br />contracting requirement other than the actual negotiated construction work scope. This has <br />. allowed WCA and the BOR to concentrate on the physical work at hand by negotiating and <br />agreeing on the construction of the project. The benefits of this unique P.L. 93-638 negotiated <br />contracting process is that "throughout the contract award process, the [BOR and WCAl shall <br />share all construction project cost infonnation available to them in order to facilitate reaching <br />agreement on an overall fair and reasonable price for the project or part thereof:' <br /> <br />Although this process can be time consuming, it seems that no stone detail is left unturned <br />unaddressed prior to award of the Contract to the Tribe. The work has been planned, analyzed, <br />priced and agreed upon and leaves less room later for disagreement, claims and potentially <br />significant change orders and other cost increases than if the project had been competitively bid. <br />The open-book process allows both parties to have input prior to award of a contract. The <br />current on-going and completed contracts to date have proven that the process is successful, that <br />it has been fair and reasonable and that it has resulted in an agreed upon Contract. Future ALP <br />contracts can benefit from these experiences. It is important to note that under P.L. 638, WCA <br />could have elected to utilize a cost reimbursement contract, but chose instead a fixed price <br />contract, because it was confident that its experience and skill would allow it and not the United <br />States to assume the risk of the cost overruns inherent in a fixed price contract. Also, this <br />experience and skill pennits WCA the opportunity over the full scope of the project to obtain a . <br />fair and reasonable profit for the Tribe. a fair and reasonable profit. <br /> <br />The process by which the Tribe reviews and approves ALP Project Contracts is depicted by the <br />attached flow chart. The Tribe and WCA are provided with Contract Specifications and Plans to <br />prepare a proposal. Labor rates are set by Davis Bacon, equipment rates are detennined by <br />historical and prevailing industry cost data, and suppliers and subcontractors are solicited to <br />provide multiple competitive quotations. WCA compiles all of this bidding documentation and <br />presents it to the BOR in a formal proposal. WCA and the BOR then attend, sometimes <br />numerous, fact finding and negotiation meetings to discuss production rates, construction <br />methods, general requirements, overhead and profit rates, clarifications and quantities interpreted <br />from the contract documents. Revisions to the proposal are made by both the BOR and WCA <br />until an agreement is ultimately reached. The This process is also time consuming but results in <br />an agreement that is fair and reasonable to both parties. After negotiations, WCA provides the <br />Tribe and its ALP Committee with a recommendation for approval of the Contract. The Ute <br />
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