CONTACTS 
0201 - U.S. Army Corps of Engineers                                                                                                                                       O-00000632 0202
020101 - San Francisco District                                                                                                                                           O-00000632 0202
020102 - Mr. Thompson F. Keesling, Architect; Assistant Chief                                                                                                             O-00000632 0202
020103 - Construction Operations Division                                                                                                                                 O-00000632 0202

SUBJECTS
COE Evaluation Communication Metrics
Litigation Support Found Effective
Cost Avoidance on Claims
Cost Savings Increase Span of Management
ROI Communication Metrics
Risk Management, Dispute Resolution
Legal Metrics, Concurrent Discovery
Miracle Management Refuses to be Helped,
Information Overload Highway Compounds Impact of Mistakes Reduces Cha
Oakland Harbor Project Case Study Cost Failure to Use SDS
Miracle on Market Street Oakland Harbor DOD Accepts Free Support for

2913 -
2913 -    ..
2914 - Summary/Objective
2915 -
291501 - Follow up ref SDS 54 0000, ref SDS 52 0000.
291502 -
291503 - Received the memo prepared by USACE District counsel on cost savings
291504 - for Communication Metrics.
291506 -  ..
291507 - Need to address concern about quality assurance. ref DRT 1 1933
291509 -  ..
291510 - Submitted ref DIT 1 0000 to Tom to follow up.
291511 -
291512 -    [On 981029 called Tom on progress. ref SDS 55 4738]
291513 -
291514 -    [On 981104 received report from Tom White on using Communication
291515 -    Metrics at Construction Services Branch. ref SDS 58 0207]
291516 -
291517 -
291519 -  ..
2916 -
2917 -
2918 - Discussion
2919 -
291901 - Com Metrics Saved Another $200K - "Miracle on Market Street"
291902 -
291903 - Follow up ref SDS 54 2520, ref SDS 52 4608.
291904 -
291905 - Received ref DRT 1 0001 from District counsel reporting "...with
291906 - certainty that Communication Metrics saved the government $187,500" on
291907 - the environmental management problem, ref DRT 1 6237  This supports
291908 - work on 970722, ref SDS 32 2838 and a year later on 980723.
291909 - ref SDS 47 3344
291911 -  ..
291912 - It took 10 minutes to provide the report that achieved this, but the
291913 - effort to get management folks to use it seems instructive...
291914 -
291915 -         [On 990316 similar record on Broadwater. ref SDS 68 4410]
291916 -
291917 -         [On 000427 software engineers don't like to use new tools.
291918 -         ref SDS 71 0713
291920 -          ..
291921 -         [On 020522 comparable savings calculated using SDS for Com
291922 -         Metrics to support engineering management for software
291923 -         development work. ref SDS 72 F95F
291925 -      ..
291926 -     On 961015 District Counsel Jim Stout recommended Com Metrics be
291927 -     used to support project management. ref SDS 6 6118  This was
291928 -     approved by the Contracting Officer, Tom Benero, and the Chief of
291929 -     the Construction Division on 961206, ref SDS 10 0001, who
291930 -     requested expanded support to increase savings. ref SDS 10 1204
291932 -      ..
291933 -     On 961226 District Command cancelled Communication Metrics, as not
291934 -     needed, over objections by management, ref SDS 12 0549, similar to
291935 -     work on Broadwater Dam, reviewed at 890324. ref SDS 1 6399
291937 -      ..
291938 -     On 970217 District counsel Merry Goodenough found SDS improves
291939 -     government methods for documentation needed to resolve disputes.
291940 -     ref SDS 21 HK5J
291942 -      ..
291943 -     On 970417 the government needed the history of an issue, but there
291944 -     was not enough time to issue a contract to pay for a report, so
291945 -     district counsel refused to request the report not knowing its
291946 -     content. ref SDS 22 2532  The report was then submitted without
291947 -     charge. ref SDS 22 1536
291949 -      ..
291950 -     On 970624 the report was lost by the government using conventional
291951 -     IT methods that everybody likes. ref SDS 27 9045  Communication
291952 -     Metrics was rejected again as not cost effective, ref SDS 28 7388,
291953 -     so the report was provided again at no cost; it was again nearly
291954 -     lost the next day. ref SDS 29 2450
291955 -
291956 -         This record aligns with IBM's record reported on 941206.
291957 -         ref SDS 3 2952
291959 -  ..
291960 - It is a "miracle" that savings were achieved in the face of strong
291961 - resistance.
291963 -      ..
291964 -     Total savings using Communication Metrics is about $500K, by
291965 -     adding $190K to the District's initial report of $317K on 971008.
291966 -     ref SDS 39 2979   Since the cost was less than $50K, ROI of 10:1,
291967 -     supports the District's original assessment of cost effectiveness.
291968 -     ref SDS 39 5775
291970 -      ..
291971 -     Savings show advantage of Communication Metrics for environmental
291972 -     management and regulatory issues discussed with District Engineer
291973 -     on 961118. ref SDS 7 8833
291975 -      ..
291976 -     Navy Sewer Line solution - chronology reported on 971017 shows
291977 -     role of Com Manager to develop useful "intelligence" that saves
291978 -     time and money for all parties under common administration.
291979 -     ref SDS 40 6430
291981 -      ..
291982 -     On 980803 Max Blodgett reported that the value of Communication
291983 -     Metrics on the Internet is self-evident. ref SDS 49 5141
291984 -
291985 -         [On 981103 District needs this support. ref SDS 57 4483]
291986 -
291987 -         [On 981104 Tom White reported that Communication Metrics on
291988 -         the Internet is "neat." ref SDS 58 4320]
291990 -          ..
291991 -         [On 990202 met with District Counsel to review specific issus
291992 -         in her memo, Counsel endorsed use of Com Metrics in the
291993 -         District. ref SDS 63 0000]
291995 -          ..
291996 -         [On 990422 another miracle Navy Sewer Line was "successful" in
291997 -         light of resistance by contractor, the railroad and USACE to
291998 -         be helped. ref SDS 69 8582]
291999 -
292001 -  ..
292002 - Summarizing and Connecting to Relevant Details Seen as Useful
292003 -
292004 - Merry indicates in para 3 that SDS can be thorough and that the
292005 - summary methodology that links directly to specific details is useful.
292006 - ref DRT 1 2884
292007 -
292008 - Jim Stout made a similar point on 961015. ref SDS 6 3395
292009 -
292011 -  ..
292012 - Communication Metrics on Internet Provides Faster Intelligence
292013 -
292014 - Merry indicates that intelligence delivered via Internet is better
292015 - than her experience on 970417 using Communication Metrics work product
292016 - as printed reports. ref SDS 22 1536  She says this solves the access
292017 - problem, but cites slow access during web "rush hour." ref DRT 1 3587
292018 -
292019 -     [On 981029 got quote for DSL service that increases the speed of
292020 -     Internet transmissions. ref SDS 56 4456]
292022 -  ..
292023 - On 970417 Merry requested a report on a particular subject from the
292024 - SDS record of organizational memory for the Oakland Harbor project.  A
292025 - printed report was provided. ref SDS 22 8033  This experience using a
292026 - printed SDS report and comparing it with getting information by
292027 - clicking in a web browser, guided evaluation of web site access now
292028 - available for Communication Metrics, which was a goal of the system
292029 - formulated on 971021. ref SDS 42 3636
292031 -  ..
292032 - Merry might be asked if this method of Internet access to the SDS
292033 - record would improve her work if adopted more widely?  Would it save
292034 - time?
292035 -
292036 -     [On 981104 report from Tom White on using Communication Metrics at
292037 -     Construction Services Branch, says links are "pretty neat." see
292038 -     ref SDS 58 4320]
292040 -      ..
292041 -     [On 990201 reviewed cost saving issue. ref SDS 62 6925]
292043 -      ..
292044 -     [On 990912 high cost of medical mistakes reported. ref SDS 70 0001
292045 -
292046 -
292048 -  ..
292049 - Government Paid $30M for Claims by Contractor, Another Miracle
292050 -
292051 - Merry says the final contract price was over $73M, or about $30M more
292052 - than the original price. ref DRT 1 7611
292054 -  ..
292055 - On 970625 claims exceeded $60M, so payment of $30M may indicate Com
292056 - Metrics saved the government substantial extra cost.... ref SDS 29
292057 - 7377  Root cause analysis on 970110 indicates claims against the
292058 - governemnt were unsupported, ref SDS 15 7482, and were based on
292059 - incorrect information, see, for example analysis, on 970202,
292060 - ref SDS 18 0000, so settlement of $30M is uncertain with respect to
292061 - how much was actually saved or over paid to the contractor.
292063 -  ..
292064 - On 971008 the District reported the contractor may be entitled to $10M
292065 - additional payment. ref SDS 39 8976  The District, also, estimated
292066 - Communication Metrics contributed to savings on unresolved claims in
292067 - the amount of $3M based on preliminary information. ref SDS 39 8976
292069 -  ..
292070 - Merry does not comment on whether continuing Communication Metrics
292071 - sought by Max on 970107, ref SDS 13 6037, could have moved final
292072 - payment closer to $10M owed for actual increase in project quantities.
292073 - How does risk management theory and practical judgement determine
292074 - whether to invest $100K - $200K to avoid $20M added cost? How much
292075 - work product from Communication Metrics restrained the contractor from
292076 - seeking at trial additional payment above $30M toward the $60M total,
292077 - under reasoning in the letter 970703, ref DIP 1 1471, setting out
292078 - District exposure and defenses. ref SDS 30 7089
292080 -  ..
292081 - USACE experience shows poor communication that costs $M of dollars,
292082 - similar to case study reported on 970525. ref SDS 24 7777
292083 -
292084 -     [On 020504 study shows professional standards for communication
292085 -     practices and requirements on good management specified in FAR,
292086 -     ISO, Health Care, Covey, Drucker, law, contract notice provisions,
292087 -     and 2,000 years of literacy for contemporaneous documentation for
292088 -     alignment and feedback to work intelligently, quickly, and
292089 -     accurately are ignored in government, business, health care, every
292090 -     sector. ref SDS 73 NS6F
292092 -  ..
292093 - An increase of 75% above the original contract price flows in part
292094 - from the project record...
292095 -
292096 -      On 961015 District Counsel recommended that Communication Metrics
292097 -      be used to complete the Oakland project. ref SDS 6 9000
292098 -
292099 -      On 961205 Con Ops changed procedures for progress meetings in
292100 -      order to continue using Communication Metrics without causing
292101 -      objection by the Port of Oakland. ref SDS 9 9477
292103 -       ..
292104 -      On 961206 Chief, Con Ops approved contract extension to use
292105 -      Communications Metrics to complete Oakland. ref SDS 10 3978
292107 -       ..
292108 -      On 961218 example on RFP #19 of communication failure using
292109 -      conventional management practice that rely on personal recall for
292110 -      organizational memory to guide decisions. ref SDS 11 5790
292112 -       ..
292113 -      On 961226 District Engineer disapproved Communication Metrics for
292114 -      compliance with FAR requirements to document the work, as
292115 -      requested by Contracting Officer, Chief Con Ops, and Chief
292116 -      Counse, ref SDS 0 H794, as not cost effective. ref SDS 12 0549
292117 -
292118 -          [On 020504 study shows requirements for good management using
292119 -          accurate communications specified in FAR, ISO, Health Care,
292120 -          Covey, Drucker, 2,000 year tradition of literacy for
292121 -          contemporaneous documentation and feedback to work
292122 -          intelligently are ignored in government, business, health
292123 -          care, every sector. ref SDS 73 NS6F
292125 -       ..
292126 -      On 970108 Max Blodgett, Chief, CON OPS, determined Com Metrics
292127 -      was needed to mitigate USACE exposure to claims, requests scope
292128 -      of services. ref SDS 14 4729
292130 -       ..
292131 -      On 970110 USACE had difficulty assembling information on schedule
292132 -      issues. ref SDS 15 2487  There were 30 Action Items pending that
292133 -      required management support. ref SDS 13 7472
292135 -       ..
292136 -      On 970110 USACE Oakland Harbor project team found Com Metrics
292137 -      provided organizational memory that solved information overload,
292138 -      so that project management was effective. ref SDS 15 2487  This
292139 -      support was eliminated by USACE command.
292141 -       ..
292142 -      On 970116 scope of services for Com Metrics submitted to USACE.
292143 -      ref SDS 16 0001
292145 -       ..
292146 -      Max approves scope of services for Com Metrics. ref SDS 17 4021
292147 -
292149 -       ..
292150 -      On 970117 Port of Oakland objects to Com Metrics for mitigating
292151 -      damages on Oakland Harbor project. ref SDS 17 6288
292153 -       ..
292154 -      On 970212 District preparing contract for Com Metrics to support
292155 -      Richmond and other projects. ref SDS 19 7749
292156 -
292158 -       ..
292159 -      On 970213 report that Port of Oakland does not object to USACE
292160 -      using Com Metrics for mitigating exposure to claims. ref SDS 20
292161 -      7269
292162 -
292164 -       ..
292165 -      On 970217 District counsel Merry Goodenough reviews SDS work
292166 -      product and methodology using SDS program and determines this
292167 -      method works better for dispute resolution than traditional
292168 -      documentation. ref SDS 21 HK5J
292169 -
292171 -       ..
292172 -      On 970202 errors in Dutra's submission of pay quantities impact
292173 -      schedule and acceleration claims. ref SDS 18 8499
292174 -
292176 -       ..
292177 -      On 970417 Com Metrics report on Todd-Snitzer dispute was
292178 -      requested by District Counsel, provided at no cost. ref SDS 22
292179 -      6828
292181 -       ..
292182 -      On 970418 Oakland Harbor project requested Communication Metrics
292183 -      to complete project in order to save money by ensuring effective
292184 -      management. ref SDS 23 5661
292185 -
292187 -       ..
292188 -      On 970606 letter submitted on steps to avoid excessive payout
292189 -      for Oakland claims. ref SDS 26 5100
292190 -
292192 -       ..
292193 -      On 970624 DE disapproved Communication Metrics as not cost
292194 -      effective. ref SDS 28 7388
292196 -       ..
292197 -      On 970625 claims exceed $60M; Chief Con Ops requested help with
292198 -      mounting claims to avoid excessive payout. ref SDS 29 2704
292199 -
292201 -       ..
292202 -      On 970625 reviewed role of leadership. ref SDS 29 8401
292203 -
292205 -       ..
292206 -      On 970703 second letter sent with strategy to mitigate damages;
292207 -      ref SDS 30 7089, reviewed leadership issues. ref SDS 30 9603
292208 -      Follow up on 970708. ref SDS 31 7403
292209 -
292211 -       ..
292212 -      On 970721 USACE did not have enough time to manage claims issues
292213 -      on the Oakland project. ref SDS 33 2026
292214 -
292216 -       ..
292217 -      On 970722 Division Chief noted irony of not having enough time to
292218 -      acquire support for saving time and money. ref SDS 32 5244
292219 -
292221 -       ..
292222 -      On 970723 Claim team leader requests support of Com Metrics
292223 -      to reduce payout to contractor of unjustified claim amounts.
292224 -      ref SDS 33 0001
292226 -       ..
292227 -      On 970723 District counsel Merry Goodenough recommends using SDS
292228 -      for Com Metrics to reduce excessive payout by government of
292229 -      contractor claims. ref SDS 33 0001
292231 -       ..
292232 -      On 970722 District Engineer reported problems on Oakland were
292233 -      beyond his experience and that special expertise was needed to
292234 -      avoid excessive payment to the contractor. ref SDS 32 7488
292235 -
292237 -       ..
292238 -      On 970724 budget for Communication Metrics to support the Corps
292239 -      approved. ref SDS 34 8118  On 970725 scope of services prepared.
292240 -      ref SDS 35 5938
292241 -
292243 -       ..
292244 -      On 970731 procurement approved by Counsel. ref SDS 36 8402  Port
292245 -      of Oakland objected. ref SDS 36 8849
292246 -
292248 -       ..
292249 -      On 970805 District preparing contract for Com Metrics support to
292250 -      avoid excessive payout on disputes involving Oakland Harbor
292251 -      project. ref SDS 37 0000
292252 -
292254 -       ..
292255 -      On 970919 management policies reviewed. ref SDS 38 1960
292257 -       ..
292258 -      On 971008 USACE issued report shows Communication Metrics saves
292259 -      time and money, ROI 10:1. ref SDS 39 2979
292261 -  ..
292262 - Communication Metrics may have avoided excessive payout, as District
292263 - Counsel recommended on 961015. ref SDS 6 9000
292265 -  ..
292266 - On 971017 Com Metrics solved Navy Sewer Line problem, which had
292267 - potential for another $2M payout by USACE. ref SDS 40 2849
292269 -  ..
292270 - New information today that Communication Metrics saved the government
292271 - $200K on a collateral matter, ref SDS 0 7315, supports planning by the
292272 - Contracting Officer on 961015 to use Communication Metrics to complete
292273 - the Oakland Harbor project. ref SDS 6 3395,
292274 -
292275 -      [On 990422 report that Navy Sewer Line was "successful" despite
292276 -      resistance by contractor, the railroad and USACE, suggests
292277 -      continued support would have yielded substantial additonal
292278 -      savings. ref SDS 69 8582]
292280 -  ..
292281 - The letter sent today explains that the $30M additional payment to the
292282 - Contractor provides ample opportunity to have avoided additional
292283 - amounts that supports the overall ROI of 10:1 shown for Communication
292284 - Metrics in the District's report, ref DIT 1 6670, received on 971008.
292285 - ref SDS 39 2710
292287 -  ..
292288 - An example of where this support might have saved time and money is on
292289 - 970110. ref SDS 15 2487
292291 -  ..
292292 - The reason given on 970624 for not continuing Communication Metrics on
292293 - belief that it is not cost effective, ref SDS 28 7388, conflicts with
292294 - the record of actual and estimated savings of $500K for a cost of less
292295 - than $50K, i.e., ROI is 10:1.
292297 -  ..
292298 - The role of leadership needs review for lessons learned under analysis
292299 - on 980307. ref SDS 46 1813
292300 -
292301 -     [On 981104 received report from Tom White on using Communication
292302 -     Metrics at Construction Services Branch. ref SDS 58 0207]
292303 -
292304 -     [On 990202 reviewed source of funding for cost savings methods.
292305 -     ref SDS 65 4050]
292307 -      ..
292308 -     [On 990126 snafus cost time and money. ref SDS 61 4368]
292310 -      ..
292311 -     [On 990204 USACE Op Plan reduces management levels. ref SDS 66
292312 -     6448]
292314 -      ..
292315 -     [On 990912 high cost of medical mistakes reported. ref SDS 70 0001
292317 -  ..
292318 - Merry was unable to open the record of the meeting with Jim Stout on
292319 - 961015. ref SDS 6 0000
292321 -  ..
292322 - I checked and found that the link to the meeting with Jim on 961015,
292323 - ref SDS 6 3395, was entered incorrectly in the letter to Merry on
292324 - 980803. ref DIP 3 3021
292326 -  ..
292327 - I corrected the link address.  Tom can send this directly to Merry by
292328 - entering the following in an email...
292329 -
292330 -       http://welchco.com/sd/08/00101/02/96/10/15/144936.HTM#3395
292331 -
292333 -  ..
292334 - Communication Metrics on Internet Increases Time and Cost Savings
292335 -
292336 - Sent Tom ref DIT 1 0000 with some ideas, and showed how Communication
292337 - Metrics can use the Internet to enable clear, concise and complete
292338 - communications, as developed on 960620, ref SDS 4 1643, by formatting
292339 - Merry's email as a USACE memo, per objective on 971021. ref SDS 41
292340 - 9999
292341 -
292342 -     [On 990202 Merry objected to converting email into a format for
292343 -     correspondence. ref SDS 64 3857]
292345 -  ..
292346 - Merry says in para 6 that quality assurance is needed so that
292347 - information in the SDS record is objective, accurate and relevant....
292348 - ref DRT 1 1933
292349 -
292350 -      [On 990104 Bob Gordon at HQUSACE cited this. ref SDS 59 8232]
292351 -
292352 -      [On 990105 received clarification from Merry. ref SDS 60 6392]
292354 -       ..
292355 -      [On 990303 Merry found SDS record is accurate. ref SDS 67 9499]
292357 -  ..
292358 - The POIMS paper explains that the SDS program supports quality control
292359 - for management, ref OF 1 1108, by linking communications to control
292360 - criteria in contracts, regulations, commitments and prior history.
292361 - This is an entirely new resource that is not now available, which
292362 - anyone can access at any time from anywhere in the world, to verify
292363 - accuracy and relevance.  It is an order of magnitude increase in
292364 - quality assurance that is the source of improved management.
292366 -  ..
292367 - The review process explained by Herb Cheong in his memo on 970407,
292368 - shows how the Communication Metrics record was prepared accurately.
292369 - ref DRP 1 0003
292371 -  ..
292372 - The Port's contention on 961126 that the record was not correct, ...
292373 - ref SDS 8 8845, seems to have been overcome since the government
292374 - saved $200K on the basis of this record.
292375 -
292376 -
292377 -
292378 -
292379 -
292380 -
292381 -
292382 -
292383 -
292384 -
292385 -
292386 -
292387 -
292388 -
2924 -