USDA Rural Development
Water & Environmental Programs
WEP
Maine Rural Water Association Conference
PRESENTED BY:
Bob Nadeau,
Community Programs
Director
RD in Rural Maine Fiscal Year 2014
Community
Programs
$48,151,135
Business Programs
$20,568,670
Housing Programs
$336,727,072
Total: $405,446,877
FY 14’ RUS Obligations
Recipients
Loan
Grant
Bingham, Town of
Boothbay Region Water District
Danforth, Town of
Eagle Lake Water & Sewer District
Gardiner, City of
Hartland, Town of
Indian Township
Oxford, Town of
Stonington Water Company
Thomaston, Town of
Van Buren, Town of
Wiscasset Water District
$ 118,000
$ 2,200,000
$ 345,000
$ 300,000
$ 579,000
$ 1,600,000
$13,334,000
$ 757,000
$ 1,000,000
$ 662,000
$ 750,000
$ 177,000
$ 1,200,000
$ 275,000
$ 230,000
$ 241,000
$ 4,800,000
$ 249,400
$10,336,000
$ 443,000
$ 396,000
$ 200,000
$ 450,000
Total FY 14
$ 21,645,000
$18,997,400
WEP Programs Offered
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Water and Waste Disposal Loan/Grants
Solid Waste Management Grants (SWM)
Distance Learning and Telemedicine Grants (DLT)
Technical Assistant and Training Grants (TAT)
Native American Set-Aside Grants
Emergency and Imminent Community Water
Assistance Grants (ECWAG)
Broadband
High Energy Cost Grants
MRWA – Circuit Rider Program
SEARCH, Predevelopment, & Planning Grants
Water and Waste Disposal
Loans & Grants
• Purpose: Funds are used to provide infrastructure for rural areas
with priority to projects that have Health and Sanitary Hazards, or
failed to meet Clean Water or Safe Drinking Water Standards.
• Eligibility: Funds are available to public entities, such as
municipalities, counties, special-purpose districts, and Native
American Tribes. Funds may also be made available for
corporations operated on a not-for-profit basis.
• Where: Rural areas and to cities and towns with a population of
10,000 or less.
• User Cost, similar system cost, and other credit availability control
eligibility.
• WEP funding is exempt from Davis Bacon Wage Rates.
• Current Interest rates range from 2.375%, 3.250%, & 4.000%.
Rural Utilities Service
Eligible Projects for Loan and Grant
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To construct, enlarge, or extend Water, Sewer, Solid
Waste Disposal, and Storm Water Collection Systems
Fees & Engineering
Related Equipment
Land, Easements, Permits
Costs prior to application may not be approved
Funds may not be used for:
1. Loan/Grant finder fees
2. New combined storm and sanitary
sewer facilities
3. Facilities normally provided for a
business, industrial user, or developer
4. Equipment or purposes not directly
related to the facility being funded
RD Grants
• Income Eligibility – Interest rate and
grant eligibility is dependent on MHI and
user costs.
• Maine MHI = $49,754.
• From 80% to 100% of MHI ($23,850 to
$49,754) statutory max. 45% grant.
• Under 80% of MHI – statutory max. 75%
grant.
• All grant eligibility is dependent on user
costs and similar system rates.
What Do I Need:
1. Number of users and equivalent users
(EDU) info with new users.
2. Preliminary Engineering Report with
projected O&M and total project cost.
3. Environmental review.
4. Basic Application Forms with Charter and
By-Laws.
How to Expedite the Process:
1.
PER, PER, PER {Sections 2. d and 6. f) – We strongly
encourage the project engineer/applicant discuss the
financial section with RD prior to submission.
2.
Environmental Report – include all of the proposed
project scope and start early especially if flood zone,
water crossings, etc.
3.
Updated financial audits /financials as soon as possible
with maturity dates of existing loans.
4.
Easements/land purchases – need to identify these
early to avoid delays at obligation and construction
bidding.
5.
Health Hazard letters/back up documentation early as
possible. Send us draft if you aren’t sure.
How to Expedite the Process: (con’t)
6.
PER – include any additional project scope that
could be funded if there are remaining funds left.
7.
SAM registration. If not already registered start
process early. If registered, be sure to renew
annually, do not let the registration expire.
8.
Organizational Documents. These need to be sent
to OGC (our lawyers) approval. Submit early and
complete.
9.
PER Alternatives analysis section. Provide clear,
concise discussion for all practical alternatives, not
just the recommended alternative.
10. Submit early in the year. Avoid the busier times
known as “pooling” dates.
Program Advantages
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Fees. We have none (no application fee, processing
fee, closing fees, or prepayment penalties).
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Grants. Based upon the MHI of the community, grant
funds may be available.
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Davis Bacon. RD is not subject to Davis Bacon
requirements.
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Hands-on. Our Specialists and Engineer works directly
with the applicant/engineer throughout the entire
process.
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Cash Flow. With 40 year financing the annual payment
is lower (when not restricted by state statute).
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Open application cycle throughout the year. No funding
“windows” to hit/remember.
MAINE COMMUNITY PROGRAMS STAFF:
STATE OFFICE:
967 Illinois Ave., Suite 4, Bangor, ME 04401-2767
TEL: (207) 990-9121
FAX: 1.855.589.1098
TDD/TTY: (207) 942-7331
State Director:
VIRGINA MANUEL (Virginia.Manuel@me.usda.gov)
Program Director:
ROBERT J. NADEAU (Robert.Nadeau@me.usda.gov)
Loan Specialist:
BOBBI J. CROOKER (Bobbi.Crooker@me.usda.gov)
Civil Engineer:
SCOTT T. EMERY (Scott.Emery@me.usda.gov)
Architect:
BILL SIEMERLING (Bill.Siemerling@me.usda.gov)
CP Technician:
ANNE EUGLEY (Anne.Eugley@me.usda.gov)
Contact Us
Rural Development State Office
967 Illinois Avenue, Suite 4
Bangor, Maine 04401-2767
Telephone: (207) 990-9121
Fax: 1.855.589.1098
Bangor Area Office
1423 Broadway, Suite 3
Bangor, Maine 04401
Telephone: (207) 990-3676
Fax: 1.855.589.1101
Lewiston Area Office
254 Goddard Road
Lewiston, Maine 04240
Telephone: (207) 753-9400
Fax: 1.855.602.4104
Scarborough Area Office
306 US Route 1, Suite B1
Scarborough, Maine 04074
Telephone: (207) 883-0159
Fax: 1.855.603.3575
Conclusion
We look forward to the opportunity to work with you to
enhance the quality of life for the residents in rural Maine
For more information on our programs visit our website at
http://www.rurdev.usda.gov/me/
Information on our program is available in Spanish at
http://www.rurdev.usda.gov/rd/pubs/factsheets.html
Rural Development
Open & Free Competition Requirements
Scott Emery, P.E., State Engineer
USDA Rural Development
Rural Development
CAVEATS:
• Not going to debate the merits of DI vs PVC vs HDPE
• Please don’t shoot the messenger
• Each consulting engineer’s specs are different based on
project specific criteria
Rural Development
OUTLINE:
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Regulation / Guidance Memo
Examples restricting competition
Specifications
Bid schedule development
When less than normal competition is acceptable
Selection of materials
Pipe bidding requirements
Common PVC considerations / concerns
Questions
Rural Development
REGULATION (7 CFR 1780.70(b)):
• All procurement transactions, whether by sealed bids or
negotiation and without regards to dollar value, shall be
conducted in a manner that provides maximum open and
free competition. Procurement procedures shall not restrict
or eliminate competition.
Rural Development
GUIDANCE MEMORANDUM:
• A guidance memorandum on open and free competition
was re-issued to USDA RD State Engineers May 17, 2012
• Replaces previously issued 2002 document
• Available on request
Rural Development
EXAMPLES RESTRICTING COMPETITION:
• Placing unreasonable requirements on firms in order for
them to qualify to do business
• Requiring unnecessary experience and excessive bonding
• Noncompetitive pricing practices between firms or
affiliated companies
• Organizational conflicts of interest
• Specifying only a brand name product
• Any arbitrary action in the procurement process
Rural Development
SPECIFICATIONS:
Owners procurement procedures will ensure that all solicitations:
1. Incorporate a clear and accurate description of the technical
requirements for the material, product or service to be
procured. When it is impractical or uneconomical to make a
clear and accurate description of the technical requirements,
a “brand name or equal” description may be used to define
the performance or other salient requirements of a
procurement. The specific feature of the name brands which
must be met by the offeror shall be clearly stated; and
2. Clearly specify all requirements which offerors must fulfill and
all other factors to be used in evaluating bids or proposals.
Rural Development
SPECIFICATIONS:
• In specifying materials, the owner and its consultant will
consider all materials normally suitable for the project
commensurate with sound engineering practices and
project requirements.
• The Agency shall consider fully any recommendation
made by the owner concerning the technical design and
choice of materials to be used for a facility.
• If the Agency determines that a design or material, other
than those that were recommended should be considered
by including them in the procurement process as an
acceptable design or material in the water or waste
disposal facility, the Agency shall provide such owner with
a comprehensive justification for such a determination.
Rural Development
SPECIFICATIONS:
• Specifications, bidding and contract documents must not
prevent bidders or contractors from proposing an equal
product during bid period or after award of contract.
• Equal products are evaluated by Engineer and they have
sole discretion to determine whether it meets the
requirements of an equal.
Rural Development
BID SCHEDULE:
• Bid schedules shall not name specific brand products or
material types unless pre-selection was accomplished or
less than normal competition was approved by the Agency.
• Bid schedules set up around a given brand name product
with additive or deductive alternates for other brands are
unacceptable.
• It is also unacceptable to require bidders to list brands in
the bidding documents that they intend to use if awarded
the contract.
Rural Development
LESS THAN NORMAL COMPETITION:
Bid schedules and specifications may list only one type of material
or brand name of equipment if the Agency concurs in writing :
1. With an owner’s written request that project requirements are unique;
2. That it is necessary for interchangeability of parts or equipment;
3. That a process is only available from a single source and the need for
the process was demonstrated in the Preliminary Engineering Report
through either technical justification or cost analysis;
4. That only one type of material will meet technical requirements;
5. That an equipment type required to meet technical requirements of the
project is available from only one source; or
6. That regulatory authorities require the use of proprietary item in a permit
Rural Development
SELECTION OF MATERIALS:
• In specifying materials, the owner and its consultant will
consider all materials normally suitable for the project
commensurate with sound engineering practices and
project requirements.
• The Agency shall consider fully any recommendation
made by the owner concerning the technical design and
choice of materials to be used for a facility.
• If the Agency determines that a design or material, other
than those that were recommended should be considered
by including them in the procurement process as an
acceptable design or material in the water or waste
disposal facility, the Agency shall provide such owner with
a comprehensive justification for such a determination.
Rural Development
SELECTION OF MATERIALS:
• Example – In a case where HDPE, DI or PVC pipe are all
technically feasible for a proposed water system and there
is no Agency approved justification to limit design to a
specific pipe type the specifications and bidding
documents must allow all materials
Rural Development
PIPE BIDDING REQUIREMENTS:
• Contractor must be able to select pipe type
• Cannot put different pipe types on the bid form
• This ensures that the lowest cost, technically feasible
material will be used
Rural Development
RECENTLY BID PROJECTS:
PVC Pipe Option Chosen by Contractor
Town
Approx.
Length
Pipe
Size
Pipe
Price / lf
Total
Project
Cost / lf
New Gloucester
9,275’
8”
$26.35
$86
Norridgewock
9,010’
8”
$45.30
$62
Dexter
4,150’
8”
$85
$138
Wiscasset
3,500’
12”
$73
$133
Jay
4,500’
10”
$46
$83
Livermore Falls
2,300
8”
$45
$85
Rural Development
PIPE COST DIFFERENCES:
Pipe Size
Ductile Iron
$/LF
HDPE $/LF
PVC $/LF
8”
$24.00
$18.00 (10”)
$9.00
10”
$32.00
$22.00 (12”)
$14.00
12”
$40.00
$33.00 (14”)
$19.00
Rural Development
PVC PIPE:
• AWWA C900
• DR 18
• 235 psi working pressure
• 20 foot lengths
• Cast iron O.D.
Rural Development
COMMON PVC CONSIDERATIONS:
• Bedding
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Stone
Gravel
Sand
• Backfill – select native material
• Services
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Saddles
Direct tap - DR 18 & DR 14 in sizes 6” – 12” (haven’t seen this yet)
• Pressure testing – water only
• Tracer wire
• Detectable warning tape
Rural Development
TRACER WIRE:
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Originally used in gas industry
Used on non-conductive mains and services
10 to 12 gauge wire with polyethylene coating
Secured to pipe at frequent intervals (10’)
Access points approximately every 500’ (tracer box)
Continuity testing required
Rural Development
TRACER WIRE:
Rural Development
COMMON PVC CONSIDERATIONS:
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Gasket integral to pipe
Special bit for PVC taps
Do not overbell the pipe – stop at the insertion line
Cold weather impacts insertion force needed to bell pipe
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Bar & block assembly
Railroad/high-lift jack
• Need to follow manufacturers installation instructions
Rural Development
TRACER WIRE BOX:
Rural Development
COMMON PVC CONSIDERATIONS:
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Gasket integral to pipe
Special bit for PVC taps
Do not overbell the pipe – stop at the insertion line
Cold weather impacts insertion force needed to bell pipe
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Bar & block assembly
Railroad/high-lift jack
• Need to follow manufacturers installation instructions
Properly inserted spigot
Improperly inserted spigot
Rural Development
COMMON PVC CONCERNS:
• Petroleum contaminated soils
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Concerns for permeation when there is free product in the soil
Gaskets are integral to PVC pipe and cannot simply be swapped for nitrile
gaskets like D.I. pipe
• Phthalates – NSF letter from January 24, 2011 that states
“Rigid PVC pipe and fittings certified by NSF do not contain
phthalates or phthalate plasticizers.”
Rural Development
FINAL THOUGHTS:
• Market driven process for technically feasible materials
• Process is allowing more pipe to go into the ground at the same
cost
• USDA funds can be used for equipment & spare parts specific
to pipe material
• Follow manufacturers instructions
Rural Development
QUESTIONS?
• Contact information
Scott Emery, P.E.
State Engineer
USDA Rural Development
967 Illinois Avenue
Bangor, ME 04401
207-990-9121
scott.emery@me.usda.gov