CONTACTS 
0201 - Department of Natural Resources                                                                                                                                    O-00000395 0301
020101 - Ms. Sarah Bond, Esquire
020102 - Department Counsel

SUBJECTS
Voith Contract Closeout, Schedule for Closeout, General
Contract, 910915 (DNRC #WE-WC-325)
Strategy on Evaluating all Claims
Engineer's duty to determine disputes
Dig Out of the System, Proactive Analysis
Planning Test Analyse Communication Manager
Communication Manager, Analysis Correlations Implications Incite
Aligning Communications to Maintain Shared
Telephone Game Shows Meaning Drift, Need to Maintain Shared
Meaning Drift Causes Bumbling Murphy's Law
Organizational Memory Distorted by Re-telling Stories Incorrectly Tel

3413 -
3413 -    ..
3414 - Summary/Objective
3415 -
341501 - Follow up
341502 -
341503 - On 911004 Sarah has requested I specifically examine the backcharges
341504 - to Voith from Tudor's letter of 891005, ref SDS 3 BY5F and ref SDS 4
341505 - 6912
341507 -  ..
341508 - This record is to consider the elements involved in carrying out the
341509 - whole of the Welch assignment, to communicate my view of it so that
341510 - DNRC can decide whether to adjust the course explained herein.  My
341511 - initial sense is that various key DNRC players have experience and
341512 - perspectives on the Broadwater project that would be helpful to
341513 - jointly discuss toward making a plan of action (see "Planning meeting"
341514 - below).
341516 -  ..
341517 - Perhaps Sarah and I could, as a preliminary step, consider together
341518 - pending issues, then decide whether a planning meeting with a larger
341519 - group would really be helpful.
341521 -  ..
341522 - Sent ref DIT 1 to Sarah.
341523 -
341524 -    Attached copies of Diary Summary to show what I have worked on the
341525 -    past week or so for DNRC, and my Schedule Summary to show what I
341526 -    have scheduled to do.
341527 -
341528 -    Requested her to comment on this memo, but the other docs are for
341529 -    information only, unless she has a comment.
341530 -
341531 -
341533 -  ..
341534 - Telephone Game Changes Understanding - Meaning Drift
341535 - Disconnect Between Management and Details of Work
341536 -
341537 - After discussing the pending Engineer's report with Walt, I am more
341538 - concerned about the need for this planning meeting, because DNRC staff
341539 - believe things are getting done that are not happening.
341541 -  ..
341542 - Sarah said the other day in a meeting on 911004 that DNRC has a report
341543 - which says the Plant conforms to the contract, and that all major
341544 - problems have been corrected, ref SDS 4 3394.  Walt said that neither
341545 - is true, but the Engineer DNRC has hired is preparing a report on
341546 - whether the plant conforms to the contract, ref SDS 7 5830.  However,
341547 - reviewing the letter of authorization to the Engineer does not show
341548 - that examination of the plant and preparing a report on whether it
341549 - meets the original design specifications is included in the scope of
341550 - services.
341552 -  ..
341553 - No one knows the real record.
341554 -
341555 -     [On 911114 discovered that Tudor waived submittal requirements in
341556 -     Voith contract, which makes engineering review critical to
341557 -     determine adequacy of plant for safety, performance and
341558 -     durability. ref SDS 8 3843]
341560 -      ..
341561 -     [On 911116 Tudor did not approve Voith submittals on speed
341562 -     increaser; Voith did not comply with design review requirements.
341563 -     ref SDS 9 4912
341565 -      ..
341566 -     [On 911125 "Lee" is not an engineer and not assigned to determine
341567 -     plant compliance with Tudor project plans. ref SDS 10 0958.]
341569 -      ..
341570 -     [On 911219 expert opinion engineering of the speed increaser was
341571 -     inadequate, including alternate specification. ref SDS 13 1991]
341573 -      ..
341574 -     [On 920120 another example of "meaning drift" in record on Tudor's
341575 -     recommendation to replace the speed increaser. ref SDS 14 8L6F
341577 -      ..
341578 -     [On 960518 "truth is a moving target." ref SDS 16 4488
341580 -      ..
341581 -     [On 971229 telephone game explains problem of "guess and gossip"
341582 -     that changes meaning in constant discussions. ref SDS 17 1526
341584 -      ..
341585 -     [On 990303 re-telling the story changes the meaning. ref SDS 18
341586 -     4510
341587 -
341589 -  ..
341590 - Maybe the thing to do is for me to sit down with Sarah and let her
341591 - talk, and I do the data entry and prompt issues.  This will help get
341592 - what is really a difficult job, done.
341594 -  ..
341595 - Need to do the same thing with Walt and maybe Mike.
341596 -
341597 -     [This was presented to DNRC Director on 911125, ref SDS 11 0700,
341598 -     and later that day planning occurred, ref SDS 12 0076.]
341599 -
341600 -
341602 -  ..
341603 - Propose Planning Meeting
341604 -
341605 - A "planning meeting" would enable DNRC management to coordinate their
341606 - perspectives and pool knowledge into a published "Action Plan" per
341607 - ideas from PMI Asilomar seminar on 900714. ref SDS 1 2299.
341609 -  ..
341610 - We want to get down in "lists" everything that we know about that
341611 - needs to be done or even considered, and how various tasks and
341612 - objectives are related or may conflict, consider the resources needed
341613 - to carry them out and who is going to do what.  If this has been done,
341614 - then I would like to review the plan.
341616 -  ..
341617 - We need to do this for several hours without interuption where we can
341618 - work on a blackboard and have a notetaker -- An evening or a weekend
341619 - would be ideal.
341621 -  ..
341622 - The result will be a macro plan that will then be rolled over into the
341623 - daily micro plan for implementation which is SDS.
341624 -
341625 -     [On 911125 reviewed needs with DNRC Director, ref SDS 11 4729;
341626 -     later that day planning occurred. ref SDS 12 0076]
341627 -
341628 -
341629 -
341630 -
3417 -

SUBJECTS
Voith Contract Closeout, Schedule for Closeout, General
Contract, 910915 (DNRC #WE-WC-325)
Strategy on Evaluating all Claims
Engineer's duty to determine disputes

3806 -
3807 - Welch View of Assignment
380801 -  ..
380802 - Typically an assignment with the scope of the Welch/DNRC agreement
380803 - would entail following elements (the order is not necessarily the one
380804 - shown):
380806 -  ..
380807 - Mobilize
380808 -
380809 -    Set-up office & equipment (this is near completion)
380810 -    Living quarters
380811 -    Meet players  & develop coordination relationships
380812 -    Modify old Broadwater SDS records to v. 3.0 format
380813 -    Download old Tudor computer records to new DNRC computer.
380814 -
380816 -  ..
380817 - Read into the job
380818 -
380819 -    This requires a file of chronological documents between Voith,
380820 -    Tudor and DNRC.  If it is a large record, then an effort would be
380821 -    made to segment it, but my sense is there has not been a great deal
380822 -    of correspondence.  The purpose of "reading into the job" is to a
380824 -            ..
380825 -       (a) get familiar with the total ebb and flow of communications;
380826 -           and...
380828 -            ..
380829 -        b) bring a fresh perspective to the issues presented by the
380830 -           formal record, since in the event of litigation, that is the
380831 -           situation that will be confronted in deciding disputes.
380833 -     ..
380834 -    Upon submission of the record, this will take from 1 - 2 weeks.
380836 -  ..
380837 - Review Voith Contract     2 - 3 days Review Tudor Contract     1 - 2
380838 - days
380840 -  ..
380841 - Prepare CPM for closeout and litigation  1 - 2 days
380842 -
380843 -    This will show the major activities in this analysis and other
380844 -    information devleoped from detailed planning by effected managers
380845 -    (Walt, Sarah, Wayne), as explained above.
380846 -
380847 -       DNRC may a drafting department that can make it look pretty, or
380848 -       it could be done on Primavera or Micro Planner, etc.
380850 -  ..
380851 - Prepare as-built CPM  1 - 2 weeks
380853 -  ..
380854 - Prepare backcharge to Voith using Tudor 891005 closeout letter:
380855 -       ..
380856 -       Organize job record (in progress - Charity and Rod) Assign
380857 -       standard claim ID's according to job history - Rod Review each
380858 -       issue in Tudor file and prepare Voith claim files.
380859 -
380860 -           Rod with input from Walt and Mike or others on history.
380862 -        ..
380863 -       Prepare specific claim against Voith - Rod
380864 -     ..
380866 -     ..
380867 -    Engineer's Decision
380868 -
380869 -    DNRC still has the thorny question of who is going to decide these
380870 -    claims, or whether DNRC is going to overlook the claim provisions
380871 -    of Voith's contract.  Then the question will be asked what other
380872 -    provisions should be overlooked because they are inconvenient?
380873 -
380875 -  ..
380876 - Develop Claim for Repairs performed by DNRC
380877 -
380878 -    This needs to be figured out in order to do presumed damages.
380880 -  ..
380881 - Develop Presumed Damages claim
380882 -    ..
380883 -    This might be viewed as part of the backcharge matter in that
380884 -    it is covered by Tudor's 891005 closeout letter, however, Sarah has
380885 -    segmented this issue with respect to priority.
380887 -     ..
380888 -    We need to define the actual Full Operation Date based on contract
380889 -    language for minor and major malfunctions; then classify the record
380890 -    to identify such occurrances then apply the contract remedy.
380891 -
380892 -       As-built CPM will graphically show our position.
380894 -     ..
380895 -    Should also develop a lost revenue calculation, per Jeff's
380896 -    recommendation.
380898 -  ..
380899 - Review Voith claims to develop response.
380900 -
380902 -  ..
380903 - Litigation Plan
380904 -
380905 - Sarah is working on this because it will contain objectives that lead
380906 - to the structure of a plan of performance, per her remarks at ref SDS
380907 - 3 line 091216.
380908 -
380909 -    Right now this "plan" is in her head.  It therefore has varying
380910 -    degrees of scope from time to time depending upon current events.
380911 -    It is recommended it be reduced to writing so a specific plan can
380912 -    be developed to implement it.  Then as new issues arise, they can
380913 -    be analysed and incorporated as aspects of the existing plan, or as
380914 -    adding to it.  The elements of this "plan" then can be rolled over
380915 -    into the work of the Welch Contract.
380917 -     ..
380918 -    Alternatively, Welch can perform on an assignment basis - e.g.
380919 -    today develop support for backcharges from Sletten contract;
380920 -    tomorrow do this, etc.
380922 -     ..
380923 -    Or, Welch can develop a litigation plan. The difficulty with this
380924 -    is that Sarah has been working with the thing for sereral years and
380925 -    has some definite ideas about what she wants to accomplish and some
380926 -    ideas about how to get there.  It would be nice to apply this
380927 -    investment, if only it could be solidified.
380928 -
380930 -  ..
380931 - Closeout Plan
380932 -
380933 - Here we need to get the supplemental Engineer's report DNRC has
380934 - commissioned.  Combine it with existing knowledge of work that needs
380935 - to be done to closeout the Voith contract.
380936 -
380937 -    It appears today that this report has been commissioned verbally
380938 -    and that it is to inform DNRC of matters that deviate from industry
380939 -    practice, rather than determine whether Voith and/or Tudor complied
380940 -    with the contract.
380942 -     ..
380943 -    Walt explained that if the Engineer reports work that is below
380944 -    industry standards, DNRC will research the contract to deterimine
380945 -    whether it conforms with the contract.
380947 -        ..
380948 -       What about conditions that conform with industry standards, but
380949 -       are still below the level of performance required by Voith's
380950 -       contract?
380952 -  ..
380953 - We should initially make a demand on Voith to supply a CPM for
380954 - finishing their work and indicate that failure to do so will require
380955 - DNRC to commission this step so there is a plan of action, rather than
380956 - a day by day bunch of activities that just arise from whatever
380957 - happened yesterday.
380958 -
380959 -     Walt mentioned today he has requested CPM schedules from Voith
380960 -     before, and they have not responded.  I explained that such
380961 -     conduct would show failure to perform, we just want the record to
380962 -     be written evidence, rather than verbal recollections.
380964 -      ..
380965 -     Walt also indicated today that he has continuing punch lists
380966 -     which <0647 comprise the lists of things to do.  This, it seems to
380967 -     me, may well be supplemented by the pending Engineering report.
380968 -
380970 -      ..
380971 -     Distinguish Contract from Operations
380972 -
380973 -     One way or the other someone should scope out what steps are being
380974 -     done as part of the contract and those that are operations, so the
380975 -     Department is not subject to criticism for commingling them.
380976 -     Second, it is always helpful to have a "plan."
380977 -
380978 -
380980 -  ..
380981 - Tudor
380982 -
380983 - We should develop some tasks that are viewed as Tudor responsibility,
380984 - so there is a (a relatively) clear demarcation between plant
380985 - operations tasks and Project Management services.  The record should
380986 - show an effort was made to segment these in a business like manner.
380988 -      ..
380989 -     Walt showed the Tudor contract files so I can review as needed.
380990 -
380991 -
380992 -
380993 -
380994 -
380995 -
380996 -
380997 -
3810 -
3811 -