BGT 04-07

Reclamation Manual
Directives and Standards

Subject: Operation and Maintenance Program Management

Purpose: Outlines the work activities and representative tasks to be included under the Operation and Maintenance Program Management program and appropriate means of funding.

Authority: Reclamation Project Act of 1902 and Supplementary Acts; Title 43 U.S.C. 377, Fact Finders’ Act of 1924, Subsection O, as amended; Act of October 29, 1971, Public Law 92-149, 85 Stat. 416.

Contact: Maintenance Services Office, D-5700

1. Background. Operation and Maintenance Program Management (O&M-PM) is one of a number of Reclamation programs that have been referred to in the past as “Associated O&M”, “Bureauwide”, or “Reclamation-wide” Programs. These programs have been established to fund the non-reimbursable costs of those activities that Reclamation has determined to be inappropriate to charge to funded projects as “project O&M” activities. Often the activities included in this program may be related to many projects throughout Reclamation or the activities are related to a specific project where there is no specific line item in Reclamation’s budget because the activities are minor or non-recurring in nature. Refer to Reclamation Manual Directives & Standards BGT 04-02 ( for general information regarding “Reclamation-wide Program Funding Criteria.”

2. Objective. These Directives and Standards (D&S) are intended to provide a general description of this program, the types of activities that are to be included under this program, and the authorities, as applicable, and rationale for the non-reimbursable funding of the program.

3. Definitions.

A. Funded project. A specific authorized Reclamation project which receives annual appropriations or revenues to fund project O&M activities.

B. Project O&M activities. Activities determined by Reclamation to be performed on behalf of and directly benefiting the ongoing operation and maintenance of a specific project or project feature, and thus are considered to be reimbursable or partially reimbursable.

C. Reimbursable costs. Costs related to project O&M activities that are reimbursed to the Federal government in accordance with established reimbursable cost allocations as determined by the original project authorizations, legislatively approved expansion of project purposes, or current project uses.

4. General Program Description.

A. Business Practices. O&M-PM provides for efficient management and evaluation of Reclamation’s O&M Program. This includes providing assistance to offices in Reclamation to increase awareness of the kinds of business practices that are necessary to be fiscally responsible and accountable to the customers and the taxpayers, and assisting these offices in fulfilling agency goals and objectives in water resource management.

B. Systematic Review and Evaluation. This program also provides for systematic overview and evaluation/analysis of activities related to operation and maintenance of Reclamation facilities, operated by both Reclamation and other entities. This provides for ensuring the safe and proper operation and associated scheduled maintenance of facilities for their intended purposes, the reduction of in-service and breakdown facilities maintenance, and the protection of the Federal investment.

5. Representative Tasks.

A. O&M Evaluation. Evaluation of O&M related processes and procedures to ensure consistent application.

B. O&M Management. Promoting and disseminating O&M management techniques and procedures to be applied to facilities on a Reclamation-wide basis.

6. Funding Criteria.

A. General. Reclamation’s authority to determine which costs to charge customers is governed by general provisions of Reclamation law, project and program specific legislation, and specific provision of contracts that Reclamation enters into with water users. As such, only the costs of those activities considered appropriate by Reclamation to be “project O&M” activities are charged to water users or power customers. The costs of other activities (non-project costs) are typically captured as non-reimbursable costs under the Reclamation-wide Programs.

B. Criteria. Within Reclamation Manual D&S BGT 04-02, criteria is outlined for the establishment of Reclamation-Wide Programs (which includes the O&M-PM program) and the related types of activities appropriate to fund under these programs.

C. Specific Authorities. In addition to Reclamation’s general authority, as cited above, the Fact Finders Act of 1924, Subsection O, as amended, and Public Law 92-149 provide additional basis to support the non-reimbursable funding determination of general engineering and evaluation activities that are conducted for non-specific project purposes.

(214) 03/31/05
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