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merited at many sites. However,fe the plume is F. OPTIMIZVION AND CONTINUOUS found to be relatively stable, sampling semi-annually, IMPROVEMENT annually, or at some other frequency may be merited, and the number of sampling locations and/or parameters may also be reduced. Provisions in the Continuous improvement can occur by periodically contract should exist to reduce the sampling scope of evaluating goals, performance, and cost-effectiveness work accordingly. and then implementing changes from these evaluations. Reductions in materials and labor: If a metals removal system or another treatment component is no longer Periodic third-party(or independent)reviews of a necessary because influent concentrations meet P&T system that include a review of site documents discharge requirements, that system should be removed and discussions with the site stakeholders are and the associated labor eliminated. recommended. These reviews,when performed.by a team of experts, can provide the following benefits: Example 5 • an unbiased, external review of system Lump sum versus cost reimbursable operation and costs Hypothetical P&T System expertise in hydrogeology and engineering • system addresses polyaromatic hydrocarbons(PAHs) from a former wood treating facility. • extracted water is pumped through an oil/water specific knowledge and experience with new separator and then through large GAC units. or alternative technologies • replacement of GAC units occurs twice every year and costs $20,000 per replacement. experience gained from designing, operating, • electricity rates have varied from$0.05 to$0.10 per or reviewing other systems kWh over the past 5 years. On average 20,000 kWh are used per month(240,000 kWh per year). a fresh perspective on the problems at hand Contracting option 1:lump sum and the current remedy Contractor bids$750,000 lump sum for 3 years of O&M assuming six potential GAC replacements($120,000),a System improvement, however, will only occur if possible electrical rate of$0.12 per kWh($28,800 per recommendations are implemented. year)to account for uncertainly,and$50,000 for non- routine maintenance G. CITED RESOURCES Contracting option 2:combined lump sum/cost ......••• reimbursable Contractor receives$495,000 lump sum for labor, U.S. Anny Cotes of Engineers, Engineer Pamphlet reporting,sampling and analysis for 3 years of O&M. To 1110-1-27. Available at http://www.usace.anny.mil remove uncertainty from the lump sum bid,the site owner pays for GAC replacements,electrical usage,and non- NOTICE: routine maintenance as required(cost reimbursable). This document was prepared by GeoTrans,Inc. for U.S. Scenario: EPA under Dynamac Contract No. 68-C-99-256, During 3 years of O&M, improved filtration and Subcontract No. 91517,Task AD02-105. Mention of trade decreasing concentrations reduce frequency of GAC names or commercial products does not constitute replacement to once per year(3 total),electrical rates are endorsement or recommendation for use. approximately$0.06 per kWh,and$25,000 of non- This document may be downloaded from EPA's Clean Up routine maintenance is required. Information(CLUIN)System at http://www.clu-in.org. Costs for contract 1: $750,000 Hard copy versions are available free of charge from the Costs for contract 2: $623,200 National Service Center for Environmental Publications Difference: $126,800 (NSCEP)at the following address: U.S. EPA NSCEP Lesson: Lump sum is more effective for items that are P.O. Box 42419 highly predictable, and cost reimbursable is more Cincinnati,OH 45242-2419 effective for items that are uncertain. Phone: (800)490-9198 or(513)489-8190 Fax: (513)489-8695 18