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<br />Ranking Process and Criteria <br /> <br />..... <br />M-'" <br />c.c <br />o <br /> <br />Reclamation's Salinity Program will be administered. through existing <br />contracting techniques and regulations rather the adoption of new regulations. <br />Reclamation will solicit proposals through a formal "Requests for Proposal" <br />(RFP) process. The major advantage of the RFP process is that it allows the <br />ranking criteria to evolve as we continue to gain experience in implementing <br />the program. <br /> <br />Proposals would be requested and ranked each year for implementation in the <br />following years. It is envisioned that projects may be scheduled for <br />implementation in advance, so that project sponsors may adequately prepared <br />for funding. <br /> <br />The RFP's will include the ranking criteria. Proposals will be ranked by a <br />composite score in three main categories: <br /> <br />. Cost effectiveness <br />. Risk factors <br />. Bnvironmental factors <br /> <br />Proposals would be only be qualified if they passed the following criteria: <br /> <br />. Can be implemented within budget limitations <br />. Construction agreement limited to 3-yrs (renewable through RFP process) <br /> <br />Cost effectiveness will be computed on a cost-par-ton basis. Risk factors <br />will evaluate monetary risks and uncertainties in the project's salt load <br />reduction potential. Environmental factors will include both positive and <br />negative impacts. In addition, all proposals will have to fit within the <br />budget conetraine imposed by Congress and Reclamation. Capital improvement <br />projects would be limited to 3 years of funding unless renewed through' the REP <br />selection process. Generally, no one proposal would be accepted which <br />monopolizes the appropriations allocated by Congress. <br /> <br />The proposals will be ranked by a Technical Proposal Evaluation Committee <br />(TPEC). TPEC members will be selected to avoid any conflict of interest which <br />would bias their choices. The TPEC members will individually and collectively <br />evaluate and rank the technical proposals. The TPEC will be made up of <br />representatives from the two cost sharing partners: Reclamation representing <br />the federal government and the Basin States. Other federal agencies, <br />environmental interests, and the public may also participate on the TPEC. <br /> <br />Cost-Effectiveness <br /> <br />Cost-effectiveness (the cost to control each ton of salt) is the government's <br />primary criteria for ranking its implementation priorities. In implementing <br />its new program, Reclamation will adjust the ranking (not cost effectiveness) <br />to consider a variety of risk factors. These will include the uncertainty in <br />both costs and tonnage reductions. <br /> <br />In 1984, the salinity Control Act was amended to direct the Secretary to give <br />preference to units which reduce salinity at the least cost per unit of <br />salinity reduction (or cost effectiveness). Cost-effectiveness is defined as <br />the cost per ton of salt prevented from entering the river system. <br />Conceptually, cost-effectiveness is analogous to determining the cost per mile <br />to own and operate a car. It combines the annual costs to service the debt <br />(loan payments) with the annual operating expenses (gas, maintenance, etc) and <br />divides by the miles travelled each year. <br /> <br />14 <br />