CONTACTS 
0201 - Dep Natrl Rscrs & Consvn           406 444 6699 fax 6721
020101 - Mr. Wayne Wetzel
020102 - Mr. Walt Anderson; Hydro Power Section Supervisor =406 444 6659
020103 - Engineering Bureau  fax 406 444 0533
020104 - Ms. Sarah Ann Bond, Esquire
020105 - Department Counsel =406 444 6660; Legal Division
0202 - Voith Hydro, Inc.
020201 - Mr. Greg Snyder; Project Manager; Projects, Western Region

SUBJECTS
Voith Contract Closeout
Engineering Management

0604 -    ..
0605 - Summary/Objective
0606 -
060601 - DNRC's and Voith's technical engineers and consultants will meet in
060602 - early January, 1992 in Voith's offices in York, Pa on technical design
060603 - matters, and a subsequent meeting of Voith and DNRC management will be
060604 - held oa Jan 20, 1991 in Helena to resolve contract management issues
060605 - relative to manufacture of the speed increaser.
060606 -
060607 - DNRC maintains it has not in any way delayed Voith and insists that
060608 - Voith demonstrate that its work complies with the contract.
060609 -
060610 - DNRC is prepared to send its experts to Renk's offices in Germany or
060611 - any other reasonable venue and for any time required in order to
060612 - expedite communication and delivery of all relevant information needed
060613 - to approve the speed increaser in a timely manner.
060614 -
060615 -
0607 -
0608 -
0609 - Discussion
0610 -
061001 - Voith Failed to Submit Required Information
061002 -
061003 - Wayne initially advised Greg that DNRC is concerned that Voith has not
061004 - supplied information to DNRC so as to permit timely manufacture of the
061005 - speed increaser, as demanded by DNRC's Nov 21, 1991 letter, ref DIP 1.
061006 -
061007 - Wayne noted that Voith's six (6) letters of Nov 27 - Dec 10, 1991 (ref
061008 - DRP 1 - 6) do not submit the speed increaser shop drawings and other
061009 - data that show the unit is adequately designed, but instead incorrect-
061010 - ly allege shortcomings in DNRC's requests for information. Wayne indi-
061011 - cated that DNRC intends to point out for the record the errors in each
061012 - of Voith's letters, but as of now Voith's letters, particularly those
061013 - of Dec 5, 1991, show Voith is not performing the contract submittal
061014 - procedures to obtain approval of the speed increaser.  This is a very
061015 - serious concern to DNRC management.
061016 -
061017 -
061018 -
061019 - DNRC will Approve Speed Increaser If it Complies with Contract
061020 -
061021 - Wayne affirmed DNRC's intent to determine whether the speed increaser
061022 - meets the specification and if so to release it for manufacture.  If
061023 - the speed increaser does not conform to the contract, then we need to
061024 - know the scope of deviations in order to fashion a remedy.  So far,
061025 - however, Voith has prevented DNRC from doing this by failing to submit
061026 - speed increaser shop drawings and data that show it is adequate.
061027 -
061028 - Wayne asked Greg how Voith intends to overcome this problem in order
061029 - fulfill its contract as professed in paragraph one of Greg's Dec 5,
061030 - 1991 letter sent via certified mail, ref DRP 2 line 37?
061031 -
061032 -
061033 -  ..
061034 - Joint Technical Review Meeting
061035 -
061036 - Greg Snyder proposed a joint meeting of DNRC and Voith engineers and
061037 - experts at a site where all the design information can be conveniently
061038 - assembled and reviewed as needed.  After the technical meetings, Voith
061039 - and DNRC management can meet to decide how to deal with reported devi-
061040 - ations and schedule manufacture and installation.
061041 -
061042 -      [On 920123 Voith failed to perform. ref SDS 5 5744]
061043 -
061044 - Wayne agreed to this idea.
061045 -
061046 - Wayne advised that DNRC will meet with Voith's technical engineers in
061047 - Germany, York, PA, or such other location as may expedite the timely
061048 - review of all relevant information.  Wayne requested that this be done
061049 - as soon as possible and for as long as necessary (e.g. a day, a week,
061050 - two weeks).  Greg suggested meeting at Voith's office in York.  Voith
061051 - will provide all shop drawing information and make available such
061052 - working areas and administrative support as the parties require to
061053 - make a professional review of the speed increaser design sufficient
061054 - to show Voith's proposed design meets the contract.
061055 -
061056 - The technical review meeting will occur in the early part of January
061057 - 1992, with the exact date to be set after Voith and DNRC verify avail-
061058 - ability of personnel.  DNRC will make every effort to accommodate
061059 - Voith's schedule by causing its consultants to modify their schedules
061060 - so that the meeting takes place as soon as possible.
061061 -
061062 - Greg will coordinate with its people and will advise DNRC by close of
061063 - business December 19, 1991 when and where the meeting is to occur so
061064 - DNRC will have sufficient time to make arrangements.
061065 -
061066 -
061067 -
061068 - Voith to Submit Previously Withheld Information Immediately
061069 -
061070 - Greg said that Voith will continue to supply information previously
061071 - requested by DNRC which Voith has promised but failed to supply,
061072 - including finite element model (FEM) data.  Greg said that Voith has
061073 - withheld some design information in order to limit the scope of DNRC's
061074 - review and approval.  Wayne advised that DNRC insists upon full and
061075 - reasonable review of the entire design as required by the contract.
061076 - Past failures of the speed increaser give Voith and DNRC notice that
061077 - greater care should be exercised in this review.
061078 -
061079 - Greg agreed Voith will submit today the FEM data simultaneously to
061080 - DNRC and Maritech, and Voith will immediately submit all other inform-
061081 - ation as would permit a reasonable engineer to determine the speed
061082 - increaser meets the contract specifications.  The objective is to
061083 - enable DNRC's design consultant's to adequately prepare for the joint
061084 - technical review meeting.
061085 -
061086 -
0611 -