THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: December 26, 1996 07:59 AM Thursday; Rod Welch

Called Tom Keesling on additional support for sole source on Welch.

1...Summary/Objective
2...Tom indicated DE feels Communication Metrics on the Richmond project


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CONTACTS 
0201 - Corps of Engineers, SFD            415 977 8400 fax 8483
020101 - Mr. Thompson F. Keesling, Architect; Assistant Chief =415 977 8473
020102 - Construction Operations Division =415 977 8480

SUBJECTS
Increase Budget, Port of Oakland
Tom Keesling, Modify Welch Contract
Contract DACW07-96-P-0705
Facilitate Meetings, Use SDS Record
Communication Manager
Cancels Com Metrics Contract Contrary to Recommendations of District

0808 -    ..
0809 - Summary/Objective
0810 -
081001 - Follow up ref SDS 23 0000, ref SDS 22 0000.
081002 -
081003 - Does Tom need any additional material, per ref SDS 22 3092, including
081004 - the report Max requested on RFP #19. ref SDS 22 8811
081005 -
081006 - He will look for the report in Max's office to use in his meeting with
081007 - John today oa 0900.
081008 -
081009 - If he cannot find it in Max's office and feels they need it or
081010 - anything further to finalize or otherwise reach a decision on the
081011 - Welch contract modification, then he will let me know.
081012 -
081013 -
081014 -  ..
0811 -
0812 -
0813 - 1306 called Tom back
0814 -
081401 - Any follow up with DE from our discussion on 961224? ref SDS 23 8499.
081402 -
081403 - Tom said he got an email from DE saying that he feels Communication
081404 - Metrics is no longer needed on the Oakland harbor project because it
081405 - is not cost effective.  I am stopped as of today.  COE is preparing
081406 - authority to pay Welch through today.  I am to produce no more work
081407 - for them.
081408 -
081409 -       [On 970107 DE's position reflects Port of Oakland's interest to
081410 -       avoid accountability on the Oakland project. ref SDS 26 7493
081411 -
081412 -       [On 970131 Contracting Officer advises DE will not approve
081413 -       Communication Metrics because Port objects. ref SDS 27 6905]
081414 -
081415 -       [On 970624 met with District Engineer. ref SDS 29 7388
081416 -
081417 -       [On 981027 government paid $30M (75%) above the contract price
081418 -       to settle Oakland project. ref SDS 31 9152]
081419 -
081420 -       [On 981027 government paid $50K for Communication Metrics and it
081421 -       saved $500K. ref SDS 31 7315]
081422 -
081423 -  ..
081424 - Tom indicated the DE is accomodating requests by the Port of Oakland
081425 - for the Corps to stop using SDS.  The Port doesn't want an accurate
081426 - record that supports accountability.  In a partnering meeting on
081427 - 961205 the Port objected to Com Metrics. ref SDS 15 3425
081428 -
081429 - Even though USACE HQ policy calls for accountability, individuals
081430 - within the Port want to avoid accountability for lack of compliance
081431 - with certain environmental requirements. (see also below ref SDS 0
081432 - 8491)  The DE has not worked regularly with the SDS record, so he is
081433 - not aware of how effective it is improving daily management.  Tom
081434 - recalled that using SDS daily for several months reveals a deeper
081435 - awareness of value than merely having it explained, as he reported
081436 - previously on 961101. ref SDS 7 8888
081437 -
081438 -  ..
081439 - Tom thinks the DE feels that removing SDS solves an immediate
081440 - political problem with the Port, without realizing the exposure this
081441 - gives the Corps.  If the Port is not accountable, then the Corps will
081442 - be forced to bear accountability for problems caused by the Port.
081443 - Moreover, claims are mounting by the contractor which require
081444 - expertise that SDS supports to ensure extra payment is justified by
081445 - added value to the work, and to avoid inflated charges, as recommended
081446 - by USACE legal counsel Jim Stout on 961015. ref SDS 4 9000
081447 -
081448 -       [On 981027 government paid $30M (75%) above the contract price
081449 -       to settle Oakland project. ref SDS 31 9152]
081450 -
081451 -       [On 981027 government paid $50K for Communication Metrics and it
081452 -       saved $500K. ref SDS 31 7315]
081453 -
081454 -  ..
081455 - Tom feels objections raised by CESPN legal counsel, John Eft, on
081456 - 961223 were merely a convenient way for John to accomplish DE's
081457 - objective to stop the procurement Tom prepared and Max approved to
081458 - continue SDS support. e.g., ref SDS 22 5849, and ref SDS 22 6206.
081459 -
081460 -  ..
081461 - Tom said he met with John Eft this morning.  John is working with
081462 - Monti to prepare a modification to pay Welch through today.  Tom
081463 - advised I will get a call from him to prepare a final invoice for COE.
081464 -
081465 - Tom seemed to relate plans to meet with DE tomorrow about maintaining
081466 - the current course on the Oakland project using Communication Metrics
081467 - based on Jim Stout's recommendations on 961015. ref SDS 4 9000
081468 -
081469 - He does not expect this will be successfull because Jim has now
081470 - retired and John Eft is lead counsel for the District.
081471 -
081472 -      [On 961227 this subject was not actually discussed with DE, but
081473 -      may be addressed on 970102, ref SDS 25 8883.]
081474 -
081475 -  ..
081476 -
081477 - Tom indicated DE feels Communication Metrics on the Richmond project
081478 - would be useful and acceptable.  He thinks the only problem is that
081479 - the DE is acceeding to the Port of Oakland's objections to using
081480 - Communication Metrics, as reported on 961206. ref SDS 17 5002  Cost
081481 - effectiveness cited above, ref SDS 0 0549, is not a sound basis for
081482 - standing down on support.  With claims mounting, now is the time extra
081483 - help is needed.
081484 -
081485 -       [On 970131 Contracting Officer advises DE will not approve
081486 -       Communication Metrics because Port objects. ref SDS 27 6905]
081487 -
081488 -       [On 970624 DE stated in a meeting though that Communication
081489 -       Metrics is not cost effective. ref SDS 29 7388]
081490 -
081491 -       [On 970722 DE seems to disclose he does not have experience to
081492 -       deal with Oakland problems. ref SDS 30 7488]
081493 -
081494 -  ..
081495 - Tom expects a procurement for Communication Metrics on Richmond would
081496 - be prepared by CON OPS rather than the Engineering Division.
081497 -
081498 -       [On 970526 submitted memo to implement. ref SDS 28 7305]
081499 -
081500 -      It is unclear why the Oakland Harbor project which is under a
081501 -      Cure Notice and has some 30 pending Action Items, which are not
081502 -      otherwise evident in COE's management systems, does not need
081503 -      Communication Metrics support, but that the Richmond project
081504 -      would need such support?
081505 -
081506 -      How can Communication Metrics be cost effective on Richmond which
081507 -      has no problems as yet, and not be cost effective on Oakland
081508 -      which is a "time bomb" of cascading problems, as reviewed with
081509 -      Jim Stout on 961015. ref SDS 4 3120
081510 -
081511 -         [On 970624 DE advised Communciation Metrics is not cost
081512 -         effective. ref SDS 29 7388]
081513 -
081514 -         [On 970722 Max advised of excalating claims on Oakland, DE
081515 -         lacks experience solving this problem. ref SDS 30 7488]
081516 -
081517 -  ..
081518 - Tom also seemed to advise that DE recognizes Welch provides sole
081519 - source capability with the SDS program; however, DE seems to view this
081520 - as not compatible with COE computer systems. i.e., a negative rather
081521 - than a plus that supports sole source procurement to satisfy John
081522 - Eft's concern, per ref SDS 22 5849.  Tom seems to gather from DE's
081523 - communication that DE expects other vendors can perform Communication
081524 - Metrics without SDS, by using other support tools.
081525 -
081526 -  ..
081527 - Tom seemed to mention DE cites in his email response to Tom that SDS
081528 - is a DOS application rather than a Windows 95 program, as grounds for
081529 - seeking other vendors and/or supporting a determination that SDS is
081530 - not suitable for use within COE San Francisco Division.
081531 -
081532 -      We did not discuss today that COE's RMS system is described as a
081533 -      DOS application in COE's Nov 1996 issue of "Construction News,"
081534 -      with no specific plans to convert to Windows, ref SDS 24 8055.
081535 -      SDS is therefore compatible with COE's plan to use RMS as its
081536 -      primary management tool.
081537 -
081538 -      Moreover, there is no other tool that performs SDS functionality
081539 -      and no known plans by any vendor to produce such a tool.  This
081540 -      has occurred because the tool must be used in order to discover
081541 -      its value and so nobody has been led to configure a tool that
081542 -      accomplishes the secret of converting information into knowledge.
081543 -
081544 -     [On 970624 met with DE on these matters. ref SDS 29 9488]
081545 -
081546 -
081547 -
081548 -
081549 -
081550 -
081551 -
081552 -
081553 -
081554 -
081555 -
081556 -
081557 -
081558 -
081559 -
Distribution. . . . See "CONTACTS"