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B-164570 1 (1974-05-15)

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             ~i.              COT2 L.Zt ,jL OF TPL UNI    L0STA.L2l







           Tho      reb    nrv S.

                           sut:;   ~ t2 a1                                   LM095877



              Cai -jr Chairmzn:

                As your office recucstcd on 1Farch 29, 1974, we are reporting on
            the 3 uveaj of Reclration' _ cost of covstructi~g the Garrison divcrson
            unit, one cfr the riittcrs ycu jnclu~cd in your' rtquect of hovexrter 14,
            1973.

                 The expenei incrase in project ccst discissed herein are issues
            whiich we t_-iev , to be r.atcrial an~d rclevant to the con~jressionfl over-
            siqht and ai;ro riatiors coiumitl,_as in censidcring t-.  Bureau of
            Rclamation*S aP roprizLion- request fcr fizcal year 1975.
                   Our  in~l.,s are tentative as wo have not tLolltdorrve
            wok   'hE C    t t 3      I n rMore oCEaii Or, dti 0.'e YsS c.;-c
            quested in tha near future.

            INTRODUCTIM~

                 The Garrison diverslcn unit, a nultiporpose water reSOiircqs develop-
            ment project hbeing ccnstric:.-d in Ncrtn Loa .za uy the Burea.u of RectAr;a-
            tior1, was ,uthorized cy Pu-iic Law 6-10a' eractUJ Augdst 5, 19-55. Under
            SQction   Of U12 aCt, V1. Lc~nress eszabiisrca d, ceilinqj on appropria-
            t~cns for consiructina th, p~roject cf $2&ZV7 -million, Pius or rninus such
            amot,;nts, if L-Xy, as r.zy t, justified by reasm' of ordinary fluctuations
            in constructicn cos-.s as ir icatc4 LY engineering cost in.~exes applicaole
            to the ty~cs of construCLion Invamv.,i in Ma~ raject.

                 According to the 2-urvcti's appro-Iriation justification for fiscal
            yedr l7,ccn;SL,'U~tiC-r o,' t-io Girrisn unit v.as estiratcd to be about
            18 percer.t c%-       'Akte.  Yic  ureau ri2c ruce-ivcd aitotr:_nts totaling

            Lional for -4-scal )ZL.r IL'7:, ard n_ c estiz-ated trie talance to comolete
            tha- orojecL a . 211.4 z-fll;3n. TY,: Furc~u et-tdth-2 total FPderal



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