MCGEE BEND RESERVOIR, TEXAS (Cont'd)
The requested amount of $9,600,000 will be applied to:
Initiation of establishment of sedim. & degrad. ranges
Local interests are required to reimburse the Federal Government for water supply benefits
by contributing $3,000,000 toward the first cost of the project and an additional $10,000,000 at the rate
of $200,000 annually for a period of 50 years after completion of the project.
STATUS OF LOCAL COOPERATION: A formal contract with the Lower Neches Valley Authority embodying the assurances of local cooperation was approved by the Secretary of the Army on 22 January 1957.
COMPARISON OF FEDERAL COST ESTIMATES: The current Federal cost estimate of $57,900,000 is an increase of
$500,000 from the latest estimate ($57,400,000) submitted to Congress. The increase includes $1,350,000 due
to higher price levels, $198,000 due to net overrun of quantities and cost on completed work and awarded
contracts, $47,000 due to final negotiations on relocations contracts, and $92,000 based on detailed study of
requirement for recreation facilities. The increase is partially offset by decreases of $844,000 due to low
bid received, $256,000 due to more detailed engineering studies, and $87,000 due to reanalysis of requirements
for engineering and design and supervision and administration.