Water Sales Contracts From Missouri River Reservoirs Need To Require Reimbursement for Operation and Maintenance Expenses

CED-82-123: Published: Sep 7, 1982. Publicly Released: Sep 7, 1982.

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During an ongoing review of water resources project operation and maintenance (OM) cost recovery systems established by the U.S. Army Corps of Engineers and the Department of the Interior's Bureau of Reclamation, GAO identified a problem concerning the nonrecovery of OM costs.

Although Bureau water marketing policy requires reimbursement of an appropriate share of municipal and industrial (MI) costs from MI users, the contracts used to sell surplus irrigation water to MI users do not include OM cost recovery provisions. Neither the original Memorandum of Understanding between Interior and the Corps nor any existing or proposed contract with an industrial user addresses OM cost recovery. Neither agency has assumed responsibility for OM cost recovery, and only limited communication has taken place regarding a decision to reallocate a portion of the OM expenses to MI use. The Corps and the Bureau need to assess, recover, and account for an appropriate share of OM costs from current and future MI water users.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: Please call 202/512-6100 for information.

    Recommendation: The Secretaries of the Army and the Interior should require the Corps of Engineers and the Bureau of Reclamation jointly direct that all future water service contracts specifically provide a contract provision for OM cost recovery.

    Agency Affected: Department of Defense: Department of the Army

  2. Status: Closed - Implemented

    Comments: Please call 202/512-6100 for information.

    Recommendation: The Secretaries of the Army and the Interior should require the Corps of Engineers and the Bureau of Reclamation jointly direct that all future water service contracts specifically provide a contract provision for OM cost recovery.

    Agency Affected: Department of the Interior

  3. Status: Closed - Implemented

    Comments: Please call 202/512-6100 for information.

    Recommendation: The Secretaries of the Army and the Interior should require that the Corps of Engineers and the Bureau of Reclamation jointly direct the necessary communication between the two agencies to establish the proper accounting for OM cost recovery.

    Agency Affected: Department of Defense: Department of the Army

  4. Status: Closed - Implemented

    Comments: Please call 202/512-6100 for information.

    Recommendation: The Secretaries of the Army and the Interior should require that the Corps of Engineers and the Bureau of Reclamation jointly direct the necessary communication between the two agencies to establish the proper accounting for OM cost recovery.

    Agency Affected: Department of the Interior

  5. Status: Closed - Implemented

    Comments: Please call 202/512-6100 for information.

    Recommendation: The Secretaries of the Army and the Interior should require that the Corps of Engineers and the Bureau of Reclamation jointly establish a policy to reallocate an appropriate share of OM costs to existing and future MI water sales.

    Agency Affected: Department of Defense: Department of the Army

  6. Status: Closed - Implemented

    Comments: Please call 202/512-6100 for information.

    Recommendation: The Secretaries of the Army and the Interior should require that the Corps of Engineers and the Bureau of Reclamation jointly establish a policy to reallocate an appropriate share of OM costs to existing and future MI water sales.

    Agency Affected: Department of the Interior

 

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