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16 I I I I I I I I I I I I I I I I I I I sufficiently to expose under-estimates of quantities and types of material respectively. Changes and lack of clarity in roles and responsibilities in Reclamation in tlte mid-1990's definitely increased Reclamation's susceptibility to failing to complete initial reviews and further scrubbing of the cost estimate. There was and is a lack of clarity about roles within the organization in managing construction. Prior to the mid-1990's Reclamation's Denver TSC provided direct oversight on design and estimation of Project construction costs. Today, these services are provided only at the request of Area Offices or other units managing construction. The objective and focus of both Reclamation and Project proponents to complete the project within 7 years as allowed for in the law and the lack of a Project ceiling in the 2000 authorization further set the stage for limited scrubbing of the cost analysis. Finally, a significant increase in the 2003 cost estimate is associated with a lack of recognition of the potential impact of the ISDEA contracting process to increase construction costs. Both Reclamation and the Ute Mountain Ute Tribe share responsibility for failing to include this component in Appendix E (1999 PCE) of the 2000 FSEIS. Reclamation's 2003 PCE includes the EDF factor to project the expected costs associated with the ISDEA contracting process. However, it is clear that this is a conservative estimate that is based in part on the results of contracting for about 3 percent of the original Project construction estimate of $337 Million. There is some optimism that the actual amount could be less for the remainder ofthe Project as Reclamation, the Tribe and other Project sponsors work more closely on Project implementation. Despite the identified cost increases, the need for the Animas-La Plata Project remains. It is critical that the Project continue to move forward to satisfy the Indian Water Rights Settlement and meet future non-Indian municipal water supply needs in southwestern Colorado and northwestern New Mexico. NEXT STEPS: Reclamation has completed or is taking several initial steps to manage and cornplete the Animas-La Plata Project in the most cost effective and efficient way possible. These actions, when fully implemented, will provide the safeguards necessary to avoid similar occurrences on this and other Reclamation Projects in the future. . The basic construction cost estimate for the Project has been redone by Reclamation. Efforts will continue to save costs during scheduling of construction and final design of components of the Project.