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i;~i$1\ Under the PEP Program, the Federal Government, through the Corps of Engineers, will participate in a Market Feasibility Study (MFS) with a non-Federal partner to address a distinct public "need"; for instance, community water supply or wastewater collection and treatment. " The MFS is a short (maximum 12-month) studylailored to fit the needs of the non-Federal partner: · IfIocal planning effor1s are ina prp.limiM'Y stage, the MFS might take the form ofan action plan analyzing infrastruCture needs (for example, potable water to meet projected municlpal4emands), alternatives for meeting those needs; estimated costs,institutioDal constraints, fiMncing options and recommP.nrlations. · If the non-Federal partner is farther along in its planning efforls, the MFS could produce a draft Request for Ploposal (RFP) which the non-Federal partner might use to solicit bids from the private sector (for example, for the delailed design of an infrastructure facility or for a specific service, such as construction of a new facility or operation and maintelllince of an existing facilitY). . The MFS also Identifies public/private partnership opportunities by p.nmining privatization options vis-it-vis traditional public services in terms of relative costs, possible sources of financing, revenue potential, etc. i ~~~~;j) . The FederaI share of a MFSmay be as high as $100,000. LOCAL RESPONSIBILITIES: The non-FederaI partner must be a public or quasi-public entity that lacks the capability and resources to effectively conduct 1his type of study on 118 own. The eligibility guidelines give higher priority to a small, disadvantaged entity over a large, relatively self-sufficient candidate. The non-Federal partner must contribute at least SO percent of the MFS. effort. The non-Federal partner's effort is made in the form of in-kind' services, with credit given for volunteer, in-house, and contracted work, supplies, materillIs,' and other related services. The PEP Program does not allow for Corps of Engineers involvement in follow-up efforts to implement MFS recommendations; for example, construction of a facility. Therefore, if the. non-Federal pll11ner intends to proceed with implementation, It would take the lead in contacting the appropriate State and . Federal agencies and consulting or design firms. . HOW TO REQUEST A MARKET FEASIBILITY STUDY: There is strong competition for limited PEP . funding and a resirlcted "WIndow" for proposals .each year. Therefore, It is imperative that an interested non- Federal partner CODlactthe Corps ofF11gi1V'Mll as quickly as possible. The District will work closely with 1be non-Federal partner to develop a joint MFS proposal to submit to Washington, D.C., where It is screened and ranked with other proposals from around the country. If the proposal is successful, the District and the non-Federal partner will develop and sign a Market Feasibility Study Agreement (MFSA) outIinlng the scope of the MFS effort and each party's areas of responsibility during the MFS. ,,;\ 29 "