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<br />I-'- <br />"'-'" <br />c.o <br />N <br /> <br />. Cost Risks (cost to government) - The concept is to reward proposals <br />which minimize the possibility of cost overruns to the government. For <br />example, the following practices would typically rank from lowest risk <br />to highest risk: <br /> <br />Proposals which have a fixed cost which will be paid by the <br />government upon completion and certification, <br /> <br />Proposals which have limited exposure to l-year at a time and a <br />record of success in preceding years. <br /> <br />Proposals <br />Example: <br />costs are <br /> <br />which have <br />Aquachem's <br />indexed. <br /> <br />fixed costs but are subject to cost indexing. <br />desalting proposal where energy and other <br /> <br />Proposals by proponents which have a history of controlling costs. <br />Example Uncompahgre Valley Water Users Association has been able <br />to privately construct facilities at 60 percent of the <br />government's estimated cost. <br /> <br />Cost reimbursable proposals where costs are estimated, but <br />government reimburses actual expenses. <br /> <br />. Effectiveness Risks (tons} - Proposals which have measurable results or <br />verified salt load reduction potential will be rated above those that <br />are less certain. For example, the following practices would typically <br />rank from lowest risk to highest risk: <br /> <br />Industrial processes with measured (weighed) product. Measurement <br />of salt is extremely accurate and only influenced by moisture <br />content,. scale accuracy, or laboratory analysis errors. Error in <br />tonnage reduction is less that 5 percent. <br /> <br />Physical improvements like canal and lateral lining which are <br />least Subject to "management" risk. Canal and lateral lining has <br />been verified as relatively effective in monitoring studies. <br />Canals and laterals that are lined do not leak, The only <br />\U1certainty comes from the. salt loading estimate. Error in <br />tonnage reduction is less that 20 percent. <br /> <br />Physical' improvements like sprinkler systems or automated <br />irrigation system which are less prone to "management" risk. <br />These types of improvements are subject to uncertainty in the <br />actual management of the system as well as the salt loading <br />estimate. Error in tonnage reduction is less than 50 percent. <br /> <br />Irrigation improvements which heavily rely on good management. <br />These types of improvements are highly sensitive to a high level <br />of irrigation management that is less reliable than automated <br />improvements. These practices also have all the uncertainty of <br />the salt load estimates. Error in tonnage reduction may be on the <br />order of 50 percent. <br /> <br />Rangeland management where effectiveness is highly variable. This <br />may be one of the least verifiable methods of salinity control due <br />to the difficulty in measuring the impacts. The actual ealt <br />loading from a basin is highly variable due to natural variations <br />in precipitation. Error in tonnage reduction may be over 80 <br />percent. <br /> <br />16 <br />