Cost Evaluation, Analysis, and Audits

     TechLaw has extensive experience conducting evaluations and analyzing cost estimates to determine whether costs incurred by the federal government, EPA, or other PRPs are technically and legally appropriate. TechLaw evaluates the technical appropriateness of the remedial activities that led to the incurrence of costs and the legal appropriateness of the remedy. For a party to recover costs expended for site remediation, the party must have undertaken its remediation in accordance with the NCP. TechLaw also considers the allowance of costs under the Federal Acquisition Regulations (FAR) during cost evaluations. Generally, contractor costs are allowable if they are reasonable, allocable, and not prohibited by law or contract. TechLaw has saved its clients millions of dollars through cost evaluations.
     TechLaw is also knowledgeable about preparing initial cost documentation packages and conducting cost recovery audits. Cost recovery documentation presents a bottom-line total cost for the investigation and remediation of a hazardous waste site. Cost documentation for a site must generally meet the following four criteria to be sufficient for a cost recovery action:

Proof of authorization to do the work

Proof that the work was performed satisfactorily

Proof of invoice

Proof of payment

     TechLaw has provided support in over 100 cost-recovery cases for EPA Regional or Headquarters personnel since 1986. Extensive experience preparing cost documentation packages, tracking cost recovery activities, interpreting and auditing cost information, and designing cost summary databases has led to the development of case-specific and generic databases capable of producing unique cost summary reports. The reports can be generated by individual cost category, operable unit, contract, date range, or event.

Projects

Sparton Technology

Negotiation support provided by TechLaw for this project has involved reviewing facility cost estimates and developing independent cost estimates for soil vapor extraction and groundwater extraction and treatment technologies. Numerous deliverables pertaining to these technologies were exchanged between TechLaw, EPA, and state technical and legal staff. Conference calls have been conducted between technical, regulatory and legal staff to discuss technical and legal aspects of the site remediation.

Sioux City Army Air Base

TechLaw performed a cost evaluation/cost estimation, which evaluated the appropriateness of past costs incurred by PRPs and analyzed whether the site investigations and remedial actions were in compliance with the National Contingency Plan. A cost/benefit analysis was also conducted by comparing acceptance of a range of percentages versus continuing to litigate. The value of potential assets at the site (buildings, materials, and equipment) was estimated by a certified commercial property appraiser for use in the cost/benefit analysis.

Auburn Road

TechLaw provided support to EPA for a cost recovery referral to the Department of Justice. EPA’s files, including site and contract management files, were reviewed to ensure documentation was available to support the cost recovery package. A report was prepared, including a list of unavailable documentation.

Industri-Plex 128 Site

TechLaw reviewed available cost documentation in order to apportion costs between two sites that had previously been considered one site for eight years. Contractor work assignments were reviewed; knowledgeable personnel were interviewed; and criteria were developed to apportion costs based on level of effort hours and billing rates for the personnel that performed work at each site.

State of New Jersey Contract

TechLaw designed and implemented an image-based document management system, the Cost Recovery Imaging System (CRIS), by converting 5 million documents into electronic images, thereby streamlining NJ’s cost recovery process.

Chemical Control Site

TechLaw completed a cost evaluation project for the NJ Department of Environmental Protection, Division of Law. Nine boxes of invoice, contract, Coast Guard reimbursement, and cleanup contractor files were reviewed. Staff created a database to account for and identify costs and supporting records, and conducted analysis to support NJ’s determination of whether adequate record of payment existed and necessity and reasonableness of costs. A cost audit was also conducted to confirm costs were supported by documentation. Reports were prepared that outlined available and missing information. In order to document the expenditure of reasonable costs, TechLaw prepared a summary of activities over time, including information such as the types of activities, extent of work completed, and necessary precautions due to the hazardous nature of the work. Historical research was included in determining whether expended costs were reasonable. TechLaw's work on this project assisted the state in reaching a $17.4M settlement.