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<br />( <br /> <br />( <br /> <br />requirements of the Independent Offices Appropriation Act, <br /> <br />1952 (31 U.S.C. 483(a); 65 Stat. 268, 290) which provides <br /> <br />that government charges shall take into consideration direct <br /> <br />aDd indirect cost to the government, value to the recipient, <br /> <br />and other pertinent facts. l~e relevant excerpt from the <br /> <br />last cited Act is attached as Appendix No.3. <br /> <br />b. Contractual Form <br /> <br />(1) The vendor should be the United States acting by and through <br /> <br /> <br />the Secretary of the Army and th~ Secretary of the Interior. Such joint <br /> <br />contracting should resolve the question of ",hi-ch <lEer,cy has the appro- <br /> <br />priate r.mrketing authority for tnainstem reservoirs. Hore iqlOrtant, <br /> <br />perhaps, such joint contractin3 should doubly bnttl:ess the eovernr:ent 1 s <br /> <br />r~rketiug authority. And a joint statcl~~nt in the pr.eliminary recitals <br /> <br />could be used to es tablish the fact that the water sold is surplus to <br /> <br />uses planned lender tlw PSHnp. <br /> <br />(2) The vendee could be the state, or one of its agencies or <br /> <br />subdivisions. TIle advantage here would be that any needed compliance <br /> <br />\lith state laws could be assumed. The continuing interest of the state <br /> <br />in the H&I program ,,'ould also be thereby assured. TIw disadvantage <br /> <br />hE:re would be that cop-tractual, arrangemcntG 'lith a Gtate or \lith one of <br /> <br />its agencies can be complex. An election may be required as a condition <br /> <br />to contract execution where the vendee is a conservancy district or a <br /> <br />municipality. The use of an auction system to establish bel!efits and <br /> <br />price would also be p.ecluded. <br /> <br />(3) Contract provisions could be similar to those in existing <br /> <br />H&I contracts. The vendee could be obliged to furnish most of the <br /> <br />material needed fo. an environ~ntal impact determination. <br /> <br />18 <br /> <br />'I <br /> <br />I <br /> <br />I <br />t <br />I <br />I <br />, <br />i <br />I <br />r ,I <br />