U.S. Navy Ship Salvage Manual Volume 6 - Oil Spill Response

S0300-A6-MAN-0603-8 FUNDING AND COST ACCOUNTINGCommercial oil spill response equipment and services command premium prices. Costs are significantfor large numbers of people or long-term rentals of equipment. Using equipment and servicesfrom other government agencies can reduce costs of oil spill response operations. Toexpedite arrangements, contingency plans should list federal and state government agencyresources and points of contact.Cost-effective and expedient coordination requires accurate cost documentation and constantcommunication with the other agencies. Cost documentation is particularly important when fundsflow between agencies. There is always risk that an agency will have to terminate an agreementbecause of changing priorities. Interagency coordination is vital for operations to continue efficientlyand to avoid crises.Appendix C describes the fiscal accounting procedures and reimbursement requirements forSUPSALV assets. Cost accounting for other Navy forces is similar. As a general rule, costs attributedto an oil spill response effort should include all costs that would not normally have beenaccrued, such as:• Fuel, lubricants and other consumables used by ships, boats and equipment.• Personnel travel.• Per diem, when personnel subsist on the local economy or cost of berthing and messingif provided on site.• Equipment, aircraft, boat, vehicle and office rental.• Overtime for civilian government employees and contractor personnel.• Full wages, including overtime, for any short-term government or contractor personnelhired specifically for the response.• Equipment mobilization, on-scene maintenance and rehabilitation, including transportationcosts to and from the site, replacement of consumables and repair or replacementof items damaged or destroyed during the response.• Telephone and utility bills.Daily cost summaries should be provided:• To the NOSC by the senior SUPSALV representative or salvage officer when ESSMassets or Navy salvage forces are assisting a NOSCDR in dealing with a large Navycausedspill.3-30