THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rodwelch@pacbell.net


S U M M A R Y


DIARY: December 13, 1996 10:00 AM Friday; Rod Welch

Dutra to submit revised updated schedule.

1...Summary/Objective
.....................Project Schedule Analysis
2...Job Completed 971119, Responds to COE Serial Letter #0014
3...Production Based on 2 Days Experimenting with New Methods
4...Dutra Shows Todd/Schnitzer Material Disposal at Redwood Landfill
5...Dutra Makes Interim Response to Cure Notice
6...Claim Resolution Meeting Discussed
7...Alternate Unloader Proposed to Complete Galbraith
8...Dutra's Original Dredging Plan Hampered by Delayed Arrival of Antone

ACTION ITEMS.................. Click here to comment!

1...Does schedule show a task to remove material dumped at Berth 9 in the
2...Tom Keesling advised that Dutra's schedule is based on "standard
3...COE needs to respond to Dutra's serial letter #0205 dated 961212

CONTACTS 

SUBJECTS
Schedule for Construction, 52.236-15
Cure Notice, 0019   Remove concentrated debris Todd and
Schedule Review, Dutra, Port of Oakland,
Production Rates

0806 -
0806 -    ..
0807 - Summary/Objective
0808 -
080801 - Follow up ref SDS 8 0000.
080803 -  ..
080804 - Bill Dutra and Bob Johnston presented Dutra's response to COE's Cure
080805 - Notice, presenting a CPM and other information, including a Work Plan
080806 - that shows in step #3 that Dutra plans to dredge the Outer Harbor from
080807 - West to East and complete it by 970301.  Dutra's schedule shows the
080808 - overall project will be complete by 971119.  COE and the Port
080809 - indicated this would be acceptable if Dutra can complete the work by
080810 - 970315.  Communication Metrics was not used at this meeting, so this
080811 - record was developed from discussions with attendees following the
080812 - meeting.
080813 -
080814 -      [On 961218 Max wrote a letter confirming understandings from this
080815 -      meeting, ref SDS 13 0000.]
080817 -       ..
080818 -      [On 961219 analysis indicates Dutra's schedule lacks support for
080819 -      finding of practicability. ref SDS 14 0000]
080821 -       ..
080822 -      [On 960107 USACE understanding on results of meeting today were
080823 -      different from Dutra's intent. ref SDS 17 3797]
080825 -       ..
080826 -      [On 970110 request for COE staff to pool notes for developing
080827 -      record of this meeting ref SDS 20 2487.]
080829 -       ..
080830 -      [On 970202 spreadsheet analysis revealed errors in Dutra's
080831 -      schedule presentation today. ref SDS 21 0000]
080832 -
080834 -  ..
0809 -
0810 -
0811 - Progress
0812 -
081201 - Does schedule show a task to remove material dumped at Berth 9 in the
081202 - water? ref SDS 6 M43G
081203 -
081204 -     Dutra's serial letter #0205 says it has performed all of the tasks
081205 -     shown in G&B's 961030 memo.
081207 -      ..
081208 -     Where is the report from G&B or COE inspection showing this has
081209 -     been done.?
081211 -  ..
081213 -  ..
081214 - Tom Keesling advised that Dutra's schedule is based on "standard
081215 - depth" dredging practice, but noted that this project does not specify
081216 - that practice.
081217 -
081218 -       [On 961218 Max wrote a letter confirming understandings from
081219 -       this meeting, ref SDS 13 0000.]
081220 -  ..
081222 -  ..
081223 - Dutra submitted serial letter #0205 dated 961212, listing "exhibits"
081224 - that support its schedule presentation today.
081226 -  ..
081227 - Exhibit V is a spreadsheet comparing bid and actual (survey)
081228 - quantities. ref DRT 2 7344
081229 -
081230 -      [On 970202 Dutra's spreadsheet seems erroneous. ref SDS 21 8499]
081232 -  ..
081233 - Actually, Dutra's serial letter #0205 seems to be an exhibit or an
081234 - attachment to Dutra's primary document dated 961213 entitled:
081235 -                      ..
081236 -                     Project Schedule Analysis
081238 -  ..
081239 - Job Completed 971119, Responds to COE Serial Letter #0014
081240 -
081241 - The Project Schedule Analysis includes attachments which seem to
081242 - address requirements in COE serial letter #0014 dated 961119, para 6
081243 - and 7, per COE's letter ref DIP 1 8007, received into the record at
081244 - ref SDS 3 0000 and issued to Dutra at the Progress Meeting on 961119,
081245 - ref SDS 2 4739, discussed at the meeting on 961113, ref SDS 1 5583,
081246 - 190, and on 961121. ref SDS 5 0647
081248 -  ..
081249 - Exhibit #3 is a bar chart schedule showing job completion on 971119.
081250 -
081251 -      [On 970202 review of Dutra's figures supports completion on
081252 -      971119, but errors in figures indicate actual completion will be
081253 -      980528. ref SDS 21 9503]
081255 -  ..
081257 -  ..
081258 - Dutra's "Work Plan," explained by Bill Dutra as implementing the
081259 - schedule, says Dutra will dredge the Outer and Inner Harbors from West
081260 - to East, which reflects the requirement in para 2 of COE's serial
081261 - letter #0014.  Dutra's serial letter #0205, also in the binder, says
081262 -
081263 -     2. The schedule provides continuity of proposed acceptance areas
081264 -        in the most practicable and economical manner. The latitude to
081265 -        alter order of work as related to equipment capabilities within
081266 -        the Outer Harbor or Inner Harbor must be preserved to
081267 -        economically pursue the work. There are alternatives to the
081268 -        described sequences, based on economics.
081270 -     ..
081271 -    [On 970106 Dutra notified COE the "Work Plan" was intended as an
081272 -    "alternate" schedule, ref SDS 17 8445; see analysis on 970109 of
081273 -    possible misrepresentation caused by Dutra. ref SDS 19 0536]
081275 -  ..
081276 - Dutra submits no alternatives that would result in better economics,
081277 - and did not do so at the meeting on 961113. see ref SDS 1 5838
081279 -  ..
081280 - Accordingly, Dutra's schedule to dredge adjacent work areas, may be
081281 - acceptable as a "practicable" schedule in light of the need to accept
081282 - the work in a manner that reduces the impact of shoaling material
081283 - mounding on top of contract pay quantities, as discussed at the 961121
081284 - meeting. ref SDS 5 4729 and ref SDS 5 0384
081286 -  ..
081287 - Production Based on 2 Days Experimenting with New Methods
081288 -
081289 - A key factor in Dutra's schedule is the production rate used for the
081290 - Antone, described in Dutra's serial letter #0205 dated 961212 at para
081291 - 6 & 7.  They seem to rely on only 2 days of data to predict improved
081292 - production over the past 5 months, of 85%.  The document says it
081293 - applies only a 10% improved production rate rather than 85%, however,
081294 - it is questionable if 2 days of data is adequate to justify a
081295 - projection for completing the work over the next year, particularly
081296 - relative to the matter of Cut Depth, raised by Gahagan & Bryant, per
081297 - the meeting on 961121. ref SDS 5 0647
081298 -
081299 -      [On 961219 production on the two dates does not seem to support
081300 -      forecast of improved production. ref SDS 15 9477]
081302 -  ..
081303 - The assumption that the Paula Lee can dredge at 30% of the Antone's
081304 - increased rate needs to be compared with its production relative to
081305 - its history on the project.
081306 - ..
081307 - There was discussion of using the DB 24.  Where is its
081308 - production rate shown?   Increasing the amount of equipment on the job
081309 - seems the most likely means to improve production, as discussed at the
081310 - meeting on Tuesday, ref SDS 8 line 200.  The DB #24's production is
081311 - not included in Dutra's serial letter #0205.
081312 -
081313 -      [See follow up where analysis of Dutra's submission seems to omit
081314 -      the DB #24. ref SDS 21 0730]
081316 -  ..
081317 - There were drawings showing Dutra plans to mobilize a smaller
081318 - offloader at Galbraith to finish that work.
081320 -  ..
081321 - Evidently, COE agreed to changes in the schedule requested by the Port
081322 - of Oakland to have Dutra complete the outer harbor by 970315 rather
081323 - than 970301, as proposed by Dutra at the meeting today.
081325 -  ..
081326 - This change seems to have been based upon a representation by Bill
081327 - Dutra at the meeting today using Dutra's "Work Plan" for implementing
081328 - the updated schedule.  Item #3 in the Work Plan says Dutra will
081329 - complete the Outer Harbor by 970301.  The Port indicated to COE
081330 - separately during a break at the meeting that this would be helpful to
081331 - them because a Port executive had related to shipping interests that
081332 - the Outer Harbor work would ready by 970315; and, so COE indicated to
081333 - Dutra when the full meeting resumed that if it can complete the Outer
081334 - Harbor by 970315, this would be acceptable.
081336 -  ..
081337 - Dutra is to submit a revised schedule on Monday showing these changes.
081338 -
081339 -     [See follow up of defective submission on 961216, ref SDS 11 line
081340 -     37.]
081341 -
081342 -     [See cite to this understanding at ref SDS 14 line 223, and ref
081343 -     SDS 16 line 87.]
081345 -      ..
081346 -     [On 961218 discovery that Dutra's CPM schedule appears to conflict
081347 -     with its offer to complete Outer Harbor by 970301, and its Work
081348 -     Plan step #3. ref SDS 12 8499]
081350 -      ..
081351 -     [On 970106 Bob Johnston advised that Dutra did not intend for the
081352 -     Work Plan to implement its schedule and that the Work Plan was
081353 -     instead a separate and alternative offer from its schedule, which
081354 -     intent was conveyed in a letter that was given only to Tom Benero
081355 -     before the meeting, that explains the intent of Dutra's Work Plan.
081356 -     ref SDS 17 3797]
081358 -      ..
081359 -     [On 970109 received Dutra's serial letter #0206 submitting the
081360 -     "Work Plan." ref SDS 19 5833]
081362 -      ..
081363 -     [On 970202 Dutra's spreadsheet seems erroneous. ref SDS 21 8499]
081365 -  ..
081366 - Dutra Shows Todd/Schnitzer Material Disposal at Redwood Landfill
081367 -
081368 - Dutra did not submit its methodology for performing the work in the
081369 - Todd-Schnitzer Wings, as directed in RFP #19, per discussion at the
081370 - meeting on 961210, ref SDS 8 line 233, following up Contract
081371 - Administration Meeting on 961209, ref SDS 7 line 616.  Schedule
081372 - Exhibit 3 shows a task #850 beginning on 970608 to dispose of material
081373 - from Todd Wing at a Redwood Landfill, rather that at Galbraith.  The
081374 - schedule shows another task also numbered "850" beginning on 970814 to
081375 - dispose of material from Schnitzer Wing at a Redwood Landfill, rather
081376 - than at Galbraith.  Actually there are three separate tasks numbered
081377 - "850."  The activity to "Resolve Environmental Issues/Develop Work
081378 - Plan" is identified as task #850, but it is not described as related
081379 - to Todd and Schnitzer.  This is item #5 in the Dutra's Work Plan, ref
081380 - DRT 2 line 51.
081382 -  ..
081383 - Tom Keesling, Max, Marc, and Tom Benero did not report any discussion
081384 - of this matter during the meeting today.
081385 -
081386 -     [See receipt of Dutra's serial letter #0206, given to Tom Benero
081387 -     at this meeting, but it not discussed until 970106, ref SDS 19
081388 -     line 119.]
081390 -      ..
081391 -     [See discussion about use of activity ID numbers to organize
081392 -     schedule per WBS, at 970106 meeting, ref SDS 17 line 318.]
081394 -  ..
081395 - Dutra Makes Interim Response to Cure Notice
081396 -
081397 - I spoke to Tom Benero on following Monday, 961216, ref SDS 10 9997,
081398 - and he indicated having informed Dutra at this meeting that its
081399 - presentation today would comprise an interim response to COE's Cure
081400 - Notice dated 961206 which required a response on 961216.  Tom
081401 - indicated he will evaluate Dutra's scheduling efforts and work
081402 - performance on or about 970106, and then advise if further direct
081403 - response is required to the Cure Notice.
081404 -
081405 -     [See follow up issuing letter to Contractor requiring correction
081406 -     of schedule submitted today, to conform with Dutra's verbal
081407 -     presentation, ref SDS 16 line 85.]
081409 -      ..
081410 -     [See later representation by Bob Johnston that Dutra gave Tom
081411 -     Benero a letter before the meeting today that explains the intent
081412 -     of Dutra's Work Plan, ref SDS 17 line 61.]
081414 -      ..
081415 -     [See where Dutra specifically responded to COE's Cure Notice via
081416 -     Dutra's serial letter #0206 given to Tom Beneor at this meeting
081417 -     today, ref SDS 19 line 127.]
081418 -
081420 -  ..
081421 - Claim Resolution Meeting Discussed
081422 -
081423 - Apparently Tom Benero suggested a meeting with Dutra to resolve claims
081424 - on 970106, per Marc McGovern on 961220. ref SDS 16 1177
081425 -
081426 -     [On 961219 changed meeting to 960109, per Max at ref SDS 14 9640]
081428 -      ..
081429 -     [On 970108 meeting cancelled because Dutra has not submitted
081430 -     sufficient information to support a negotiation, ref SDS 18 8932]
081431 -
081433 -  ..
081434 - Alternate Unloader Proposed to Complete Galbraith
081435 -
081436 - Tom Keesling advised that Bill Dutra offered to mobilize a different
081437 - unloader to complete the work at Galbraith.  This is reflected by an
081438 - oversized exhibit submitted at the meeting today that does not seem to
081439 - be mentioned in Dutra's submission listing dated 961213.  It also does
081440 - not seem to be mentioned in Dutra's serial letter #0205 dated 961212.
081441 -
081442 -     [This offer is explained in Dutra's serial letter #0206 dated
081443 -     961212, recieved into the record on 970109, ref SDS 19 line 120.]
081445 -  ..
081446 - Mobilizing the unloader is not shown in Dutra's schedule, and it seems
081447 - to conflict with its task #850 to dispose of material from Todd and
081448 - Schnitzer at Redwood Landfill, rather than at Galbraith.
081449 -
081450 -     [Bob Johnston reported at the meeting on 970106 that omission of
081451 -     mobilizing the unloader in the schedule was a mistake; it was
081452 -     later added to the schedule, ref SDS 17 line 334.]
081454 -  ..
081455 - COE needs to respond to Dutra's serial letter #0205 dated 961212
081456 - because it seems to have some representations that require support
081457 - and/or are conflicting, e.g., para 8 and 9, ref DRT 1 line 138.
081458 -
081459 -
081460 -
081461 -
081462 -
0815 -

SUBJECTS
Shoaling
Bid Listing
Failure to Disclose
Delayed Delivery

1206 -
120701 -  ..
120702 - Dutra's Original Dredging Plan Hampered by Delayed Arrival of Antone
120703 -
120704 - A few days later Tom Keesling seemed to recall that Dutra explained at
120705 - this meeting on 961213 that it had originally planned to have the
120706 - Paula Lee dredge soft material and then the Antone would follow
120707 - closely behind to dredge the remaining hard material to grade.
120708 - However, the manufacture of the Antone was greatly delayed and this
120709 - resulted in the Paula Lee moving about the project without reaching
120710 - plan grade in many locations that then resulted in a shoaling
120711 - situation.
120713 -  ..
120714 - Question:
120715 -
120716 -    1.  Was this "plan" reflected in any documents submitted by the
120717 -        Contractor?
120718 -
120719 -    2.  Since the Antone was not listed in Dutra's equipment list, did
120720 -        Dutra's failure to list it deny the Government the opportunity
120721 -        to make a knowing business judgement on Dutra's true ability to
120722 -        perform the work?
120724 -  ..
120725 - This presents an interesting situation, where COE may have had some
120726 - duty to disclose annual shoaling quantities, but Dutra may have had a
120727 - duty to disclose its equipment plan.
120728 -
120729 -     [Dutra later files claim seeking 150 day time extension due to
120730 -     delayed delivery of Antone, ref SDS 20 line 412.]
120731 -
120732 -
120733 -
120734 -
1208 -