Wisconsin Department of Commerce Newsletter
December 2004
PECFA Usual and Customary Cost Schedule Secondary to the Public Bid Process

The public hearing comments on proposed changes to Comm 47, generated some misconceptions regarding the purpose of the proposed UCC schedule.

The original premise for the statutory requirement to develop a Usual and Customary Cost (UCC) schedule was for a stand-alone mechanism to reduce program costs. However, considering the findings of competitive bidding, it became clear that competitive public bidding, not the UCC schedule, would do a far better job at reducing program costs.

The UCC subcommittee has considered the direct financial impact that the UCC schedule would have on the program and concludes that it will be secondary to public bidding. Public bidding is viewed as the primary means for reducing program costs. In Commerce's review of the hearing comments, it was learned that the Minnesota PETROFUND has come to a similar conclusion in their program.

Consequently, the primary purpose of the UCC schedule and its accompanying rules is to control program costs and at the same time provide a mechanism for all claimants to proceed with necessary investigation or remedial activities until either the site's priority ranking under the proposed rules places the site in a bidding round, or closure is achieved. In summary, the UCC schedule is expected to function as a funding bridge to closure or public bidding, while meeting the intent of section 101.143 of the Wisconsin statutes.

--Berni Mattsson

The newsletter is issued electronically every other month.

Please send comments or questions to Barbro McGinn, editor.

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