WSPC03491

• File Number: 8220.106.O
• Description: Colorado River Water Projects - Animas La Plata - Project Funding
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 11/1/2003
• Author: DOI-BOR
• Title: Animas La Plata Project - Construction Cost Estimates - Report to the Secretary - November 2003
• Water Supply Pro - Doc Type: Report/Study

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estimate did not account for these additional costs despite the fact that application
of the ISDEA was mandated in the 1988 Settlement Act and the Tribes made it
very clear in the negotiations over the 2000 Amendments that application of the
ISDEA was part of the total settlement. Additionally, the lack of a cost ceiling for
ALP has caused confusion and made it more difficult to determine the true impact
of the ISDEA on the project.8 While the 2003 PCE includes a $43 million
estimate because of the application of the ISDEA, the true costs could be less.

F. Organization and Procedures within Reclamation Associated with
Management of the Project

The review looked at factors within Reclamation's organization and application of
its procedures from January 1999 to July 2003 during completion of National
Environmental Policy Act compliance, Project authorization, and initial
construction activities on the Project. The intent was to determine whether the
necessary procedures were in place and followed in development and review of
cost estimates.

In the early 1990's, Reclamation was reorganized to give Area Offices greater
autonomy to perform design work and manage construction. In addition, all
Reclamation Instructions, including those related to design and construction, were
sunset and new guidance developed on a case-by-case basis. Additional guidance
in the Reclamation Manual for performing design and construction activities was
released in February and September 2000, respectively.

In the case of the Project, WCAO's Durango Field Office had greater
responsibility for project design, eliminating much of the TSC's oversight role.
Prior to the reorganization, the Denver Office had a much stronger role in
oversight of design and construction management. Today, the TSC provides
services to Reclamation's field offices at their request.

The Durango Field Office did request a TSC review of the 1999 PCE prepared by
the Ute Mountain Ute Tribe contractor in November 1999. The TSC indicated the
1999 PCE lacked sufficient detail to complete a full review. This comment also
was provided by Durango Field Office staff to the team preparing the DSEIS.
However, evidence of follow up by Reclamation staff beyond that point was not
found during this review, and the cost estimate subsequently finalized by the
Tribes contractor was included in Appendix E of Reclamation' s 2000 FSEIS. The
Project Management Team and Project Construction Committee established by
Reclamation in 2001 were intended to provide a way to assure that necessary
internal and external coordination and management of the Project occurred
respectively during construction.

8 Most Departmental construction projects have a congressionally authorized cost ceiling. Having
a ceiling helps maintain project costs by providing a clear delineation on the total amount that may
be spent on the project.

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