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


S U M M A R Y


DIARY: January 8, 1997 09:00 AM Wednesday; Rod Welch

Called Max on status of Communication Metrics at COE.

1...Summary/Objective
2...Marc indicated his schedule is very busy at this time. He has a lot
3...COE Prepare Form 2626 Evaluation on Communication Metrics
4...Dutra's Ability to Perform
5...Meeting on 970109 Re "Issues" Cancelled
6...Based on foregoing, submitted letter to Max listing additional support


..............
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CONTACTS 
0201 - Corps of Engineers, SFD            415 977 8400 fax 8483
020101 - Mr. Max R. Blodgett, II, P.E., L.S.
020102 - Chief =415 977 8444; Construction Operations Division =415 977 8480
0202 - Corps of Engineers, SFD            415 977 8400 fax 8483
020201 - Mr. Thompson F. Keesling, Architect; Assistant Chief =415 977 8473
020202 - Construction Operations Division   =415 977 8480
0203 - Corps of Engineers, SFD            415 977 8400 fax 8483
020301 - Mr. Thomas Benero; Chief =415 977 8511; Contracting Division
0204 - Corps of Engineers, SFD            415 977 8400 fax 8483
020401 - Mr. Marcus Tikotsky; Contract Specialist =415 977 8509
020402 - Contracting Division

SUBJECTS
Increase Budget, Port of Oakland
Contract DACW07-96-P-0705
Sole Source Justification
Mentoring, COE Staffing
Facilitating Meeting Begins with SDS Record
Proactive Management Discovers Problems
70% of Day Wasted in Meetings, Only 10% of
Port of Richmond
Communication Manager
Welch Scope of Services

1512 -    ..
1513 - Summary/Objective
1514 -
151401 - Follow up ref SDS 22 0000, ref SDS 19 0000.
151402 -
151403 - Submitted letter confirming ideas developed yesterday and met with Max
151404 - and Tom to develop a common understanding of Welch procurement status,
151405 - including continued support for Oakland project.  Marc McGovern was
151406 - asked to begin a new procurement effort which may take several months.
151407 - Marcus Tikotsky advised the $98K procurement may be adequate if
151408 - submitted under different authority.
151409 -
151410 - Prepared ref DIT 1 0000 setting out the range of support discussed
151411 - over the past several months, ref SDS 15 0000.  Decided not to submit
151412 - this record for now in order to avoid stifling review by providing a
151413 - lot of information to absorb and manage.
151414 -
151415 -     [See follow up at ref SDS 25 line 400; later on 970403, ref SDS 28
151416 -     line 236; and memo to DE on 970422, ref SDS 30 line 77.]
151417 -
151418 -
1515 -
1516 -
1517 - 0927 Discussion
1518 -
151801 - Talked to Tom Keesling.  He has talked to Tom Benero about finalizing
151802 - the current Welch contract.  He had not seen the email sent this
151803 - morning, ref DIP 8 0000.
151804 -
151805 - Tom Keesling advised of his understanding that COE will advertise for
151806 - sole source status on the Richmond project, but that the District
151807 - Engineer believes Communication Metrics is no longer needed on the
151808 - Oakland project, as he advised on 961226, ref SDS 19 0549, which is
151809 - why a final contract is being prepared to close out that effort.
151810 -
151811 - Tom will follow up to ensure that Ofell completes the Welch closeout
151812 - contract by tomorrow, so I can submit an invoice before Tom leaves on
151813 - vacation at the end of this week.
151814 - ..
151815 - Talked to Max.
151816 -
151817 - He had not received my email either.
151818 -
151819 - Max seems to have expected that Tom Keesling was developing funding to
151820 - continue Communication Metrics on the Oakland project.
151821 -
151822 - I explained the above understandings from Tom that the DE feels
151823 - Communication Metrics is no longer needed on the Oakland project.
151824 -
151825 - Max asked if there is any money in the current Welch budget for me to
151826 - continue?
151827 -
151828 - I explained the purpose of the present modification was to provide
151829 - interim funding, and since it has not been approved, this effort is
151830 - unfunded.
151831 - ..
151832 - Max indicated he was not aware of this circumstance.
151833 -
151834 - I suggested we meet with Tom to clarify the situation.
151835 -
151836 - Max said he is backed up with other matters, so he does not have
151837 - enough time to meet now.
151838 -
151839 - We considered the difficulty of Tom leaving on vacation next week and
151840 - being assigned to other duties. This requires management support by
151841 - others for continuing Communication Metrics, if that is what the
151842 - District wants to accomplish.
151843 -
151844 - Max said he will discuss this with Tom.  He asked me to call him back
151845 - in an hour.
151846 - ..
151847 - Printed copy of the letter, ref DIP 8 0000, submitted via email
151848 - yesterday, ref SDS 22 4752; and, prepared a current set of Action
151849 - Items. see the record at ref SDS 22 7472
151850 -
151851 -
151852 -
151853 -  ..
1519 -
1520 -
1521 - 1311 visited Max and Tom Keesling
1522 -
152201 - Submitted the letter, ref DIP 8 0000 in printed form per above, on our
152202 - discussion yesterday, ref SDS 22 0000, including the list of pending
152203 - Action Items. ref SDS 22 4752
152204 -
152205 -    [On 970110 advised Tom White about Action Item report to Max. see
152206 -    ref SDS 24 7768]
152207 - ..
152208 - Initially, Tom confirmed his understanding that DE seems to have
152209 - indicated Communication Metrics is no longer needed on the Oakland
152210 - Harbor project, but it can be used on Richmond, per ref SDS 19 8491.
152211 -
152212 -    [On 970109 called Tom Keesling ref SDS 23 8552
152213 -
152214 -    [On 970110 discussed with Tom Benero and Max the DE's feeling about
152215 -    continuing Communication Metrics. ref SDS 24 6482]
152216 -
152217 - Max posed the prospect that DE remains concerned philosophically about
152218 - Welch speaking at meetings, discussed on 961206. ref SDS 8 8851.
152219 -
152220 - DE feels COE staff should conduct meetings.
152221 -
152222 -     We did not discuss today the broad range between "speaking" at
152223 -     meetings, conducting meetings, and facilitating meetings.
152224 - ..
152225 - Max set out CON OPS' position that Communication Metrics should
152226 - be used on the Oakland Harbor project in order to mitigate the
152227 - government's exposure to claims by the contractor, as discussed on
152228 - 960920. ref SDS 1 8854
152229 -
152230 - Tom noted that, to accomplish this objective, the DE will need help in
152231 - understanding the critical circumstances of the project and the unique
152232 - support Communication Metrics provides, as reviewed by former District
152233 - Counsel Jim Stout on 961015. ref SDS 2 3395
152234 -
152235 -     [On 970624 DE disclosed personal belief that Com Metrics is not
152236 -     cost effective. ref SDS 31 7388
152237 -
152238 -     [On 970625 claims grew to $60M, criminal investigation launched.
152239 -     ref SDS 32 2704
152240 -
152241 -     [On 970722 DE advised that claims on Oakland project present
152242 -     problems outside his experience and that USACE needs specialists
152243 -     to support the government. ref SDS 33 7488
152244 -
152245 -     [On 981027 government paid $30M to settle $60M in claims on a $42M
152246 -     contract. ref SDS 34 9152]
152247 - ..
152248 - Max related his understanding that DE's only concern is to
152249 - maintian good relations with the Port of Oakland, from discussion
152250 - yesterday. ref SDS 22 7493
152251 -
152252 - Reviewed again the critical need to maintain continuity of capturing
152253 - the record on Oakland, discussed yesterday, ref SDS 22 6037, and to
152254 - accomplish specific tasks for risk management to mitigate exposure on
152255 - claims, as disucssed on 960920. ref SDS 1 2565 and ref SDS 1 2875
152256 -
152257 - This point was explained yesterday when we met. ref SDS 22 6037
152258 -
152259 -     [On 970110 Max addressed this objective with the Oakland Project
152260 -     Team. ref SDS 24 2487]
152261 -
152262 - Accordingly, some review may be warranted with DE, per discussion
152263 - yesterday as set out in the 970107 letter, ref DIP 8 0000, to ensure a
152264 - reasoned decision is made on this point in order to avoid having a
152265 - break in the support for current initiatives, ref SDS 22 7044, e.g.,
152266 - updating the schedule, Todd-Schnitzer problem, RFP #20, determining
152267 - pay quantities, Galbraith discharge protocols, capturing the record of
152268 - meetings and maintaining Action Items, Navy Sewer Line, etc.
152269 -
152270 -     [On 970110 some form of review occurred with DE on this matter by
152271 -     Max and Tom Benero. ref SDS 24 5739.]
152272 - ..
152273 - Max indicated that the scope of work for Communication Metrics
152274 - needs to have Welch prepare COE staff prior to meetings and review
152275 - results afterwards, as a critique. Max indicated this would be
152276 - acceptable to DE.
152277 -
152278 - He characterized it as a "mentoring" process that facilitates meetings
152279 - without proactive support during meetings.  Max raised this objective
152280 - previously on 961204. ref SDS 5 8420
152281 -
152282 - There was discussion that these steps are being performed under the
152283 - current scope, per Welch letter to COE dated 961205 issued at ref SDS
152284 - 6 9477, and analysis of Eft's memo, ref SDS 16 line 373.
152285 -
152286 - Tom Keesling commented that at this time the Oakland Harbor project
152287 - needs real-time proactive support.  Incomplete, conflicting
152288 - understandings conveyed during meetings, as seems to have occurred at
152289 - the meeting on 961213 by Dutra, causes delays, anger, frustration and
152290 - wastes time and expense to recover.
152291 -
152292 -      [See where Max requests Oakland Project staff assemble their
152293 -      notes on the 961213 meeting, ref SDS 24 line 515.]
152294 - ..
152295 - Marc McGovern joined the discussion confirmed need for proactive
152296 - support.  He related how Communication Metrics has been used this past
152297 - month to step Dutra, COE and UPRR through a series of actions to move
152298 - the Navy Sewer Line work forward, where previously activity had
152299 - stopped under a managerial impasse for four (4) months, ref SDS 3 line
152300 - 55.
152301 -
152302 - As well, since Max instituted weekly Contract Administration meetings
152303 - they have become an effective instrument, which was the goal in using
152304 - Communication Metrics.  Marc noted that COE staff, including Leonard
152305 - and himself, have many projects to follow and so it is challenging to
152306 - keep abreast of the fast moving job record in sufficient degree to
152307 - conduct effective meetings, as discussed previously in connection with
152308 - the need for increased staffing, ref SDS 13 line 77.  The process of
152309 - performing Communication Metrics necessarily places Welch in command
152310 - and control of the record because by definition it accounts for and
152311 - aligns decisions with prior understandings.  This positions Welch to
152312 - facilitate meetings and provide a dynamic visible learning experience
152313 - which the COE staff can apply to other matters.  In this way the
152314 - current practice provides mentoring each day by showing the value of
152315 - creating and using an accurate, complete job record to conduct
152316 - productive business meetings.
152317 - ..
152318 - There was discussion that Marc would develop a scope of services
152319 - to advertise for Communication Metrics support.  Max wants the initial
152320 - effort to be generic support for the Resident Engineer's office, so
152321 - the allocation of the time can be applied to different projects as the
152322 - need arises.  Marc will coordinate with Leonard SooHoo on what is
152323 - needed.  There was discussion about using the language in the recent
152324 - modification that was not approved due to the matter of sole source
152325 - contracting.
152326 -
152327 -  ..
152328 -
152329 - Marc indicated his schedule is very busy at this time.  He has a lot
152330 - of tasks to perform on other matters and so may not have time to
152331 - prepare the scope of services Max has in mind.
152332 -
152333 -     [See follow up preparing scope of services, ref SDS 26 line 86.]
152334 -
152335 -
1524 -
1525 -
1526 - 1450 visited Tom Benero
1527 -   ..
152701 - Tom said he received my email, ref DIP 8 line 28, but was unable
152702 - to read it.  He could not get the attachment, which is the primary
152703 - communication, to show up on his screen. I suggested he try while we
152704 - were meeting.  He was successful in opening the attachment and said he
152705 - will read it later.
152706 -
152707 - Tom said he is working on the contract to pay Welch for closing out
152708 - the prior work and expects to have this done by Friday.  Tom said he
152709 - understands from Tom Keesling that Welch is to provide some final work
152710 - product as part of closing out the current contract.  I indicated that
152711 - I agreed to do the notes for the Contract Administration meeting on
152712 - 961230, and that was performed at ref SDS 21 line 43.  A copy was sent
152713 - to Tom Benero.  We did not discuss whether he has read it.
152714 -
152715 - Tom asked me to coordinate with Tom Keesling tomorrow before he leaves
152716 - on vacation about this point.
152717 -
152718 -     [Did this at ref SDS 23 line 102.]
152719 -
152720 -
152721 -
152722 -
1528 -

SUBJECTS
2626 COE Contractor Evaluation
Evaluation

1705 -
170501 -  ..
170502 - COE Prepare Form 2626 Evaluation on Communication Metrics
170503 -
170504 - I asked about getting a 2626 evaluation of the Welch contract.  Tom
170505 - asked me to contact him after Tom Keesling returns from vacation in 3
170506 - weeks on this.
170507 -
170508 - Max mentioned earlier he felt the Communication Metrics effort had
170509 - been productive and helpful to COE.
170510 -
170511 -    [On 980418 received COE evaluation dated 980328 with endorsements
170512 -    from Max, Leonard, Herb and Marc. ref SDS 29 3368]
170513 -
170514 -
170515 -
170516 -
1706 -

SUBJECTS
Dutra
Cure Notice

1905 -
190501 -  ..
190502 - Dutra's Ability to Perform
190503 -
190504 - Tom advised of having information that Dutra has filed for chapter 11
190505 - protection, posing the possibility that its bonding company may have
190506 - to support the Oakland Harbor project.  He feels the period ahead will
190507 - require increased management support.
190508 -
190509 -
190510 -  ..
190511 - Meeting on 970109 Re "Issues" Cancelled
190512 -
190513 - Tom advised that the meeting scheduled for tomorrow on "issues" has
190514 - been deferred until further preparation is accomplished, following up
190515 - schedule meeting with Dutra on 961213. ref SDS 11 6640
190516 -
190517 - This reflects the fact that Dutra has failed to respond to RFP #20 and
190518 - has failed to submit a methodology to perform Todd-Schnitzer as COE
190519 - directed.
190520 -
190521 -
190522 -
1906 -
1907 -

SUBJECTS
Increase Budget, Port of Oakland
Tom Keesling, Modify Welch Contract
Contract DACW07-96-P-0705
Sole Source Justification
Submit Plan Integrate Comm Metrics and COE

2508 - 1515 discussion with Marcus Tikostksy
2509 -   ..
250901 - As I was leaving the Contracting Office area after talking to
250902 - Tom Benero, Marcus was leaving, as well.  He asked me about the status
250903 - of the Welch modification.
250904 -
250905 - I explained it has not been approved and so there may be an entirely
250906 - new initiative to advertise for management support, per above.
250907 -
250908 - Marcus said he read John Eft's memo dated 961220 and felt that it
250909 - reflected the wrong procurement method was used.  He indicated that
250910 - misscommunication within the procurement effort resulted in using the
250911 - wrong forms and FAR authority, which were different from those he and
250912 - Tom Benero discussed two weeks ago.  His sense of the matter seems to
250913 - be that COE can accomplish the Welch scope developed by Tom Keesling
250914 - and rejected by Chief Counsel John Eft, under a corrected procurement
250915 - submission.  This reflects analysis at ref SDS 16 line 166.
250916 -
250917 -    [See follow up discussion with Tom Benero and Max Blodgett on
250918 -    970110, ref SDS 24 line 792 and at ref SDS 24 line 811, but that
250919 -    DE disapproved the procurement, ref SDS 24 line 842.]
250920 -
250921 -
250922 -  ..
2510 -
2511 -
2512 - 2327 submitted plan to Max
2513 -
251301 - Based on foregoing, submitted letter to Max listing additional support
251302 - he wants Communication Metrics to perform, ref DIT 1 0001, per meeting
251303 - on 961206, ref SDS 8 1204 and discussion with Tom Keesling on 961220.
251304 - ref SDS 15 5773
251305 -
251306 - Decided not to submit this record for now, so that the record before
251307 - COE does not stifle review.
251308 -
251309 -    [On 970109 delivered letter to Max and Tom. ref SDS 23 0001]
251310 -
251311 -    [On 970115 submitted proposed scope of services requested by Max.
251312 -    ref SDS 25 5287]
251313 -
251314 -    [On 970117 Max approved proposed scope. ref SDS 26 4021]
251315 -
251316 -    [On 970225 meeting on SDS to implement Contract Administration
251317 -    practices, in the letter at ref DIT 1 3961, in a meeting on the
251318 -    Richmond project, ref SDS 27 8440]
251319 -
251320 -
251321 -
251322 -
251323 -
251324 -
251325 -
Distribution. . . . See "CONTACTS"