EPA Construction Grants:

Information on the North River Wastewater Treatment Plant Contracts

RCED-86-96FS: Published: Apr 3, 1986. Publicly Released: May 6, 1986.

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Pursuant to a congressional request, GAO obtained information pertaining to New York City's North River Wastewater Treatment Plant, including: (1) salary information for certain contractor employees; and (2) the contracting process that the city followed in awarding contracts for the plant's construction. The project is funded through an Environmental Protection Agency (EPA) grant to the city's Department of Environmental Protection.

GAO found that: (1) the master mechanic employed on the project earned $129,649 during 1984; (2) the four working teamster foremen employed on the project earned between $34,881 and $61,319 during the same period; (3) the salaries for the specified employees are paid pursuant to a collective bargaining agreement; (4) various government and union officials stated that the salaries were not unusual; (5) none of the applicable regulations or the solicitations for the construction contracts contained any limit on maximum wages; and (6) the city awarded each of the eight largest contracts for the project to the lowest bidder after competitive bidding, in accordance with applicable EPA regulations.

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