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B-189395 1 (1978-04-27)

handle is hein.gao/gaobadfzc0001 and id is 1 raw text is: LTHE TaCOMPTROLLER GENERAL CECISION .OF..0W THE UNITED BTATEE VWASHINGTON, D. C. 2C548 FILE: a-189395 DATE: April 27, 1978 MATTER OF: Department of Air Force-sewage utility contracts DIGEST: Although Environment.l Protection Agency (EPA) contemplates that Federal users of local sewage utility services will pay share of EPA construc- tion grants to utility companies, such payment would be improper where existing contracts between Federal users and utilities do not provide basis for such payments. This is in response to a request by the Department of the Air Force for a decision concerning the pro- priety of renegotiating or terminating existing Air Porce utility (sewage),contracts to comport with the Environmental Protection Agency's (EPA) grant funding policies. The Ail Force has a number of contracts with utilities to provide sewage services for Air Fcrce installations throaghout the nation. These con- tracts follow the prescribed standard format. See Armed Services Procurement Regulation (ASPR) Supplement No. 5, Procurement of Utility Services (Uctuber 1, 1974). Some of these utilities have applied to the EPA for construction grants under the Federal Water Pollution Control Act, 32 U.S.C. 1151 et seg. (Supp. V 1975) to fund expansion or upgra'ing otheir physical plants. However, under EPA ?r6ram Requirement Memorandum No. 75-35 (previously Program Guidance Memorandum No. 62), whenever a planned tratment works will jointly sLrve a municipality and a Federal facility, the portion of construction costs allocable to the Feleral facility is not eligible for EP1 grant funding (with certain -1- - 1 I

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