Report 2020-107 Recommendation 5 Responses

Report 2020-107: California Department of Toxic Substances Control: The State's Poor Management of the Exide Cleanup Project Has Left Californians at Continued Risk of Lead Poisoning (Release Date: October 2020)

Recommendation #5 To: Toxic Substances Control, Department of

To protect against the unsustainably high costs it has incurred thus far in the cleanup project, DTSC should structure its future cleanup contracts to at least partially incorporate fixed prices.

60-Day Agency Response

DTSC has amended the existing cleanup contract, which already contains fixed price elements as recommended in the audit findings, for 450 properties. DTSC will seek to incorporate fixed pricing where possible in all future cleanup contracts. Following are the fixed price elements in the current cleanup contract:

-Project management costs per property,

-Mobilization, permit application and fees per property,

-Pre-excavation confirmation sampling costs per property,

-Property-specific Design Plan per property,

-Vehicle and equipment cost per property,

-Field management costs per property,

-Air and dust monitoring cost per property, and

-Letters of completion cost per property.

Performance standards requiring a minimum number of crews to be provided by the contractor were added to the amendment.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

All Recommendations in 2020-107

Agency responses received are posted verbatim.