EPA Construction Grants: Information on the Milwaukee Area Sewerage System Improvement Program

In response to a congressional request, GAO obtained information on the Milwaukee Metropolitan Sewerage District's Water Pollution Abatement Program, specifically: (1) whether the district meets federal criteria for an eligible grantee and how it safeguards federal funds; (2) how the district funds its projects; (3) the extent of competitive bidding for architect and engineering work; (4) why the job site rule limiting allowable overhead billings was not applied to the prime contractor responsible for the program's management oversight and technical integrity; (5) the federal role in the district's decision to use rock removed from a project site to build a recreation island; and (6) approaches for measuring the reasonableness of architect and engineering costs.