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<classification authority="sudocs">GA 1.13:HR-97-14</classification>
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 <subject>Hazardous substances</subject>
 <subject>Contract administration</subject>
 <subject>Prioritizing</subject>
 <subject>Cost control</subject>
 <subject>Reimbursements to government</subject>
 <subject>Waste management</subject>
 <subject>Risk management</subject>
 <subject>Contract costs</subject>
 <subject>Administrative costs</subject>
 <subject>Waste disposal</subject>
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 <title>High-Risk Series: Superfund Program Management</title>
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<abstract>GAO reviewed the progress made in correcting weaknesses in the
Environmental Protection Agency&apos;s (EPA) management of the Superfund
program, focusing on EPA&apos;s: (1) limited recovery of Superfund cleanup
costs from responsible parties; and (2) inadequate controls over
contractors&apos; costs.&lt;p/&gt;GAO found that: (1) the magnitude of the hazardous waste problem calls
for the efficient use of available funds to protect the environment and
the public; (2) as GAO has reported in the past, however, certain
management problems have put this investment at risk; (3) since GAO&apos;s
1995 report, EPA and other federal agencies have taken steps toward
addressing these areas; (4) EPA has begun using a risk-based process to
set priorities and allocate some of its fiscal year 1996 cleanup funds
for those sites that are ready to begin the construction of the cleanup
method; (5) however, EPA&apos;s regions make the decisions to allocate the
funds for sites in the earlier phases of the cleanup process, and GAO&apos;s
recent review showed that EPA&apos;s regions varied in the extent to which
they consider risk in making their decisions; (6) other federal agencies
have made uneven progress in: (a) taking the first step toward setting
priorities, that is, developing a complete inventory of the waste sites
that need cleanup; and (b) implementing systems to rank sites for
cleanup according to risk; (7) EPA has made some improvements in its
cost recovery program; (8) EPA has continued to obtain legal agreements
with responsible parties to privately fund the majority of the cleanups;
(9) EPA enforcement officials point out, however, that this approach
generally leaves the more difficult cleanups for cost recovery action
and thus decreases their ability to recover past costs; (10) while some
costs are not expected to be recovered, EPA&apos;s historically low recovery
rate in part results from the agency&apos;s slow pace in completing action on
its 1992 proposed rule to increase the indirect costs that it could
recover; (11) for the past several years, EPA has focused attention on
strengthening its management of Superfund contracts; (12) EPA has
continued to exercise oversight, such as conducting reviews of its
regions&apos; performance in this area, and made other improvements; and (13)
however, GAO&apos;s recent review found that in spite of the agency&apos;s
actions, several problems persist: (a) EPA&apos;s regions are still too
dependent upon the contractors&apos; own cost proposals to establish the
price of cost-reimbursable work; (b) EPA continues to pay its cleanup
contractors a high percentage of total contract costs to cover
administrative expenses rather than ensuring that the maximum amount of
available moneys is going toward the actual cleanup work; and (c) littl*</abstract>
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<identifier type="preferred citation">GAO/HR-97-14</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Hazardous substances</topic>
 <topic>Contract administration</topic>
 <topic>Prioritizing</topic>
 <topic>Cost control</topic>
 <topic>Reimbursements to government</topic>
 <topic>Waste management</topic>
 <topic>Risk management</topic>
 <topic>Contract costs</topic>
 <topic>Administrative costs</topic>
 <topic>Waste disposal</topic>
 <topic>Superfund Program</topic>
 <topic>High Risk Series 1997</topic>
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