GUIDANCE: COSTS
- CAPITAL COSTS AND OPERATING & MAINTENANCE
COSTS
ENVIRONMENTAL COMPLIANCE
PROGRAM
NATIONAL OCEANIC
AND ATMOSPHERIC ADMINISTRATION
U.S. DEPARTMENT OF
COMMERCE
Office of Procurement,
Grants, and Administrative Services
Construction Staff
August 28, 1995
COSTS
- CAPITAL COSTS AND O&M COSTS
This document provides
guidance for determining capital costs and operating and maintenance
(O&M)
costs. Under the Office of Management and Budget's Circular A-11 (Preparation
and Submission of Budget Estimates of June 1995) capital costs
are used to determine the cost of "Pollution Control and Treatment
Projects" (see sections 12.4(g) and 12.5(d)(1)) and "Remedial
Environmental Projects" (see section 12.5(u)). O&M costs are
used to determine NOAA's "Wastes and Hazardous Materials Management
Activities", and under the U.S. Environmental Protection Agency's Federal
Agency Environmental Management Program Planning Guidance the O&M
costs are part of the "Program Management" costs (see pages
2-12, 2-22 and 2-28).
The distinction between
capital costs and O&M costs is important because of the assigned responsibilities
in NOAA Administrative Order 216-17 (NAO 216-17) for funding projects
and activities. NAO 216-17 identifies O&M costs as Line Office
responsibility (see section 6.03). In addition, NAO 216-17 identifies
capital costs for "Pollution Control and Treatment Projects",
or compliance activities, to be funded from the Environmental Compliance
Program. Finally, NAO 216-17 identifies "Remedial Environmental
Projects", or cleanup activities, as a joint responsibility of
both the Line Office and NOAA's Environmental Compliance Program.
The following "Exhibits" from
EPA's Federal Facility Pollution Prevention Project Analysis of
July 1995 (see pages 12-13) are to be used as guidance for determining
capital costs and O&M costs: (1) "Exhibit 2-1 Inventory of
Potential Capital Costs", (2) "Exhibit 2-2 Inventory of Potential
Operating Costs".
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