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November 18, 1975 Request (continued)
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Question 11. Provide a description of the FY '75 ail construction program goals and your progress against these.

Fiscal Year 1975 planned to continue the accelerated pace of construction for the Rapid Rail Transit System while design and rightsof-way acquisition obligations decline. Phase I operations was planned to commence during this period. All of Phase I would be under construction and approaching completion. All structural, finish and stage contracts would be underway for Phase III, as well as all structural, most finish and stage contracts for Phase IV. Most Phase V structural contracts would have commenced and most design contracts for Phase VI. The 1975 program would involve design contracts covering approximately eight project units while the construction program would involve advertising 13 construction" contracts, six finish contracts and five stage contracts for a total of 117 prime contracts under construction

concurrently.

Through Fiscal Year 1975, there are two stations completed, 39 stations and over 45 miles of the system under construction. Construction is underway for 19.3 miles from north of Silver Spring to Rockville Pike and the Beltway (1-495) on the Glenmont/Rockville Routes; for 19.9 miles from south of National Airport to the New Carrollton service yard on the Huntington/New Carrollton Routes; for 2.2 miles from Gallery Place Station to Waterfront Station on the Greenbelt/Branch Routes; for 2.9 miles from Rosslyn to west of Glebe Road Station on the Vienna Route; and for 1.1 miles between the Pentagon and East Potomac Park on the L'Enfant Plaza/Pentagon Route across the Potomac River. The Phase I portion of the system is now scheduled for revenue operation during Fiscal Year 1976 due to late delivery of metrorail cars.

November 18, 1975 Request (continued)
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Question 12. Provide detailed support for the $57 million increase necessary to reach the $4.65 billion total cost.

A breakout of the $57 million increase is incorporated under

Table 1 of the supporting documentation submitted for Question 8.

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Question 13. Submit supporting documentation for the 37 percent fuel price inflation rate.

The estimate of diesel fuel costs for the FY 1977 Metrobus

Operations Budget was based upon a unit price of 45 cents per gallon.

The price per gallon used in estimating the cost of fuel in the FY 1976 Budget was 32.7 cents per gallon. The 1977 estimate represents an increase of 12.3 cents or 37.6 percent over the 1976 estimate for fuel.

The factors considered in arriving at the 45 cents per gallon

estimate are as follows:

1.

2.

3.

4.

5.

Since acquisition of the bus companies in early 1973 to the date of estimate, the price of diesel oil from principal suppliers had increased from 11.85 cents per gallon to 31.95 cents per gallon, an increase of 170 percent.

At the time of making the estimate, it appeared certain that price control on petroleum products would be lifted before FY 1977, thus opening the door to increased prices.

Indications had been made by foreign oil resources that
increases in oil were being planned.

Normal inflationary factors dictated increased fuel costs.

Inquiries into the petroleum industry gave indications
that a price of 45 cents per gallon was not unrealistic.

Since date of estimate, price of diesel oil had increased to over
34 cents or 6 percent per gallon. Accordingly, it was the considered
judgment of the Authority that an amount of 45 cents per gallon for
fuel was justifiable for estimating purposes.

November 18, 1975 Request (continued)
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Question 14. Submit documentation of your consultants with C-O, DOT and UMTA concerning your selection of 15 percent as a contingency factor.

Fifteen per

The May 8, 1975 GAO report to Senator Byrd, identified numerous imponderables and unforeseeable delays. Discussions with UMTA revealed that UMTA required a contingency of an unspecified amount. cent is the maximum contingency acceptable to UMTA without special justification.

UMTA reviewed the possible use of a 20 percent contingency,

as suggested by the District of Columbia, and concluded that 15 percent
was adequate. Attached is a copy of UMTA's Phase A Grant with the
15 percent contingency approved.

Subsequently, this was discussed with DOT with no objections

or revisions.

62-418 O 76 Pt. 2 - 14

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I am pleased to advise you that your application for capital
assistance under the Interstate Substitution provisions of the
1973 Federal-Aid Highway Act (23 U.S.C. 103(e)(4)) has been
approved in the maximum amount of $235,560,000. We have reserved
the full $286,560,000 for this project.

To assist your staff in administering this project, we are enclosing
a copy of our Guidelines for Project Administration as well as
UMTA computer information forms which should be completed and
submitted to us. Two copies of the approved project budget are also
enclosed.

We have also prepared seven (7) counterparts of an Offer of Contractual
Assistance. I suggest that this project agreement be executed by
UMTA, the Government of the District of Columbia (the District) and
the Washington Metropolitan Transit Authority (WMATA) at an early
and mutually convenient time and place. Execution of the agreement
should be in accordance with appropriate resolutions or similar
authorizing documents of WATA and the District, and such document
should be certified by Counsel to each. In the event that Counsel
for either WMATA or the District of Columbia is unable to make
the certification because of pending legislation which might affect
the timely implementation of the project, a concise description of
the reasons should be forwarded to UMIA prior to execution of the
grant agreement.

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