CONTACTS 
0201 - Corps of Engineers, SFD                                                                                                                                            O-00000632 0202
020101 - Mr. Thompson F. Keesling, A.I.A., Assistant Chief
020102 - Construction - Operations Division
0202 - Corps of Engineers, SFD                                                                                                                                            O-00000632 0201
020201 - Mr. Max R. Blodgett, II, P.E., L.S.
020202 - Chief

SUBJECTS
Corps of Engineers, SFD, Scope
Claim Team Review Prepare Meeting with
Subject Index
Changes and Changed Conditions, 52.243-5
Equipment Ownership and Operating Expense
Measurement and Payment, Dredging
0020   Combine RFPs 9-11 and 960312 letter
Justify Increase Unit Price

1210 -
1210 -    ..
1211 - Summary/Objective
1212 -
121201 - Follow up ref SDS 32 0000, ref SDS 31 0000.
121202 -
121203 - Prepared notes and initial analysis of COE claim meeting and
121204 - discussion with Tom Benero.
121206 -  ..
121207 - Began consideration of subject index for Port of Oakland project.
121208 - Looks like the best approach is to use the contract spec sections like
121209 - at PG&E.
121211 -  ..
121212 - Submitted a draft of the discussion with Tom Bonero at ref SDS 30
121213 - 0000, to Max and Tom Keesling.  Got their input on Welch scope and
121214 - application of SDS.
121215 -
121216 -
121217 -
121218 -
1213 -
1215 - ėGO47
1216 - 1313 Discusison Max/Tom
1217 -   ..
121701 - Tom was away from his desk when I went in to see him, but Max
121702 - asked me about the draft I left on his desk.
121703 -
121705 -  ..
121706 - Dutra Claim/RFP Analysis
121707 -
121708 - Max feels the contractor bid his costs but may have put all of the
121709 - profit in the mobilization item, rather than bid construction items at
121710 - below cost, as considered in the discusison with Tom Benero, ref Sds
121711 - 30 7855.  Even if true, this would mean there is no incentive for the
121712 - contractor to perform a lot of extra work for which the contractor is
121713 - essentially not being paid to perform.  Moreover, the question of
121714 - "cost" is always questionable.  Contractor's often err in not
121715 - differnetiating between risk and profit.  The ultimate question
121716 - remains whether the 1M extra yards is a big benefit or a big loss for
121717 - the contractor?
121719 -  ..
121720 - Max noted that a key factor is how the government should compensate
121721 - the contractor for a new piece of equipment for which there is no
121722 - established rental rate? Dutra's submission to COE seeks approximately
121723 - $700K for 12 days work by a particular equipment item.  Max recalled
121724 - this item was not listed by the contractor in bidding the job.  There
121725 - was discussion about correlating the compensation based on producation
121726 - rates being achieved relative to other available equipment.  Max
121727 - explained a major cost factor on this project is the number of moves
121728 - the equipment must make.
121730 -  ..
121731 -
121732 -     Where is contractor's equipment list covered in the bid documents?
121733 -
121734 -        [On 960921 Amend. 0001 may include equipment list. ref SDS 35
121735 -        4883.]
121736 -
121737 -     [See contract provison for determining equip op and ownership
121738 -     expense, ref SDS 35 4833.]
121740 -      ..
121741 -     [On 961015 received list from Tom Keesling. ref SDS 39 5883]
121743 -  ..
121744 - Max noted the government's role is finding the truth, whereas the
121745 - Contractor's aim is expansive in seeking particular outcomes.  There
121746 - was consideration of a government perspective of accomplishing a
121747 - needed public improvement at reasonable cost, and maintaining the
121748 - integrity of the bidding process.  If there is no risk to incompetent
121749 - bidding, then the process will redound to the most incompetent bidder,
121750 - per discussion with Tom Keesling the other day, ref SDS 23 line 94.
121752 -       ..
121753 -      [See follow up discussion with COE counsel, Jim Stout, on Welch
121754 -      support of Claims, ref SDS 42 line 118.]
121756 -       ..
121757 -      [See meeting with Claim Team manager on 970702, ref SDS 54 line
121758 -      130.]
121760 -  ..
121761 - After Tom joined us, Max related ideas on assessing the contractor's
121762 - claim based on the depth of dredging cuts, which are relatively
121763 - shallow, 2 - 3 feet, making the major expense the time entailed in
121764 - moving equipment througout the work area.  Seems like big expensive
121765 - equipment would be inefficient in such a setting.  Max seemed to
121766 - indicate that if harder material is encountered, the excavation is to
121767 - extended 1 foot deeper.
121769 -       ..
121770 -      [Contractor was later directed to address impact of cut depth on
121771 -      practicability of its updated schedule per G&B's observation at
121772 -      961112 Progress Meeting, see COE serial letter #0014 dated 961119
121773 -      prepared at ref SDS 45 line 148.]
121775 -       ..
121776 -      [This matter was analysed later in relation to evaluating the
121777 -      Contractor's schedule, ref SDS 47 line 370.]
121779 -  ..
121780 - Tom said the bid documents gave a delination of material to be
121781 - encountered which is described as "hard" and "soft."  There is not a
121782 - separate pay item based on this delination.
121783 -
121784 -
121785 -
121786 -
1218 -

SUBJECTS
Mobilization, Payment
Commencement, Prosecution, Completion of

1604 -
160501 -  ..
160502 - Dutra Submits Drawings on Completion Status???
160503 -
160504 - Max advised that Bob Johnston left a set of drawings on his desk,
160505 - either before or after the meeting with Tom on the claim/RFP matter at
160506 - 1000 this morning.
160508 -  ..
160509 - Max seemed to indicate the drawings relate to the status of work on
160510 - various "polygon" areas identified in the contract plans.  Tom took
160511 - the drawings from Max for further consideration.  Max seemed to
160512 - indicate the drawings relate to justification for early release of
160513 - demobilization funds, per issue raised by Tom Benero yesterday, ref
160514 - SDS 23 line 81.
160515 -
160516 -
160517 -
1606 -

SUBJECTS
Corps of Engineers, SFD, Scope
Scope Welch Contract, Meeting Notes, Analysis
Writing "everything" down Not Needed to
Aligning Communications to Maintain Shared
Conflict Resolution, Cost/Benefit of Better Communications
Meeting Notes, confirm understandings
Meetings What was Said What Does it Mean
Not Enough Time to Write Notes, Executives
Meetings
Keesling, Tom USACE Meeting Notes Hard to Prepare Effective Record Du

4912 -
491301 -  ..
491302 - Modern "Scribe" Produces "Intelligence"
491303 - Preliminary Analysis of Welch Work Product, SDS Notes
491304 -
491305 - I asked Max and Tom for assessment of the notes on a meeting with Tom
491306 - Benero, as a guage to direct the Welch effort and get it started on
491307 - the right foot.
491309 -  ..
491310 - Max asked yesterday, when I passed him in the reception area, how the
491311 - "Scribe" process is coming, per our original discussion on 960105, see
491312 - ref SDS 9 3999, so I decided to submit informally some work product to
491313 - get some guidance about what they want in relation to "intelligence."
491314 -
491315 -         [On 960924 advantages of organizational memory balanced by
491316 -         fear of accountability. ref SDS 38 O24L
491318 -          ..
491319 -         [On 961101 DE limited role of Scribe, ref SDS 44 5547.]
491321 -      ..
491322 -     "Analysis" Omitted from Notes of Formal Meetings
491323 -     ------------------------------------------------
491324 -     Max generally liked the notes.  He feels that "analysis" (e.g.,
491325 -     ref SDS 30 7588 showing correlations, implications and nuance
491326 -     based on alignment with project requirements and commitments
491327 -     should be omitted until there is an opportunity for him, Tom and
491328 -     other key people to review and approve the analysis.  Max recalled
491329 -     having discussed various matters in the notes with Tom.  He said
491330 -     that so far everyone agrees the record is accurate and effective,
491331 -     but the Corps has a responsibility of review to ensure accuracy.
491333 -          ..
491334 -         [On 961017 complaint that organizational memory is only one
491335 -         person's interpretation that makes people mad, because they
491336 -         remember differently, and don't want to invest time for
491337 -         submitting feedback to correct the record, is precisely why a
491338 -         timely record is essential to provide a framework for
491339 -         discovering differences in communication early enough to avoid
491340 -         mistakes, because people get mad anyway when failure to give
491341 -         notice causes defective work that delays progress and
491342 -         increases cost. ref SDS 41 5832
491344 -      ..
491345 -     Max further indicated that routine discussions like the one I had
491346 -     with Tom Benero yesterday (i.e., the notes I gave to Max and Tom
491347 -     Keesling) do not need to be entered in the SDS record.
491349 -      ..
491350 -     Max cited indefinite, cursory and speculative nature of daily
491351 -     management discussions that should not be noticed by the "scribe"
491352 -     (reflecting the record on communication training at Kwan Henmi
491353 -     showing that executives are unable to align understandings from
491354 -     conversation, ref SDS 25 3421)
491356 -      ..
491357 -     Max indicated such discussions do not warrant Communication
491358 -     Metrics support.
491360 -      ..
491361 -     The scope of Communication Metrics to enable proactive problem
491362 -     handling by discovering issues early, and to avoid errors by
491363 -     maintaining alignment with objectives, requirements and
491364 -     commitments, was considered in our initial meeting on 960105,
491365 -     ref SDS 9 8659, which cited discussion with Wayne Wetzel, Deputy
491366 -     Director, DNRC on 911205, ref SDS 9 1902, to illustrate the
491367 -     process of collaboration conducted by the Communication Manager.
491368 -     ref SDS 3 8402
491370 -           ..
491371 -          [On 970418 USACE issued scope of services and deliverable for
491372 -          Com Metrics. ref SDS 51 958L
491374 -      ..
491375 -     The need to align communication arises from the fact that people
491376 -     draw different meaning from conversation and documents, as
491377 -     reported on 960518, ref SDS 12 3734, that leads to mistakes, delay
491378 -     and extra cost.  Henry Kissinger describes an "Alice in
491379 -     Wonderland" of bumbling due to lack of analysis. ref SDS 5 4238
491380 -
491381 -          [On 971229 management training film illustrates daily
491382 -          communication errors that require proactive solution...
491384 -      ..
491385 -                            Telephone Game
491386 -
491387 -             ... ref SDS 56 1526]
491388 -
491389 -          [On 980403 Max cited managers worry about accountability.
491390 -          see ref SDS 59 6581]
491392 -           ..
491393 -          [On 980307 Andy Grove's book "Only the Paranoid Survive" says
491394 -          mental maps are forgiving of ambiguity, so managers need to
491395 -          take copious notes and ask questions to avoid mistakes. see
491396 -          ref SDS 58 3668  Since managers will not take copious notes
491397 -          and ask questions, Communication Metrics provides the needed
491398 -          intelligence. ref SDS 58 2189]
491399 -
491401 -      ..
491402 -     Concurrent Discovery Avoids Mistakes, Conflicts, Disputes
491403 -     Identify Conflicts - "Hiccups" in Contractor Communications
491404 -
491405 -     Max wants formal meetings captured and linked in SDS to show
491406 -     continuity and/or lack thereof with respect to representations by
491407 -     the contractor.  Max described the goal of identifying "hicups"
491408 -     when the contractor offers conflicting explanations, rationale and
491409 -     intentions on different occassions.  He mentioned reviewing the
491410 -     scope for the Welch contract and intending it to reflect this
491411 -     level of effort, which is traditionally called "claims support."
491413 -            ..
491414 -           [On 961015 District Counsel concurred. ref SDS 40 9000]
491416 -            ..
491417 -           [On 961202 USACE project engineer objects to capturing the
491418 -           record that is disputed by other parties. ref SDS 46 0S6I
491420 -            ..
491421 -           [Cited request in evaluation of Communication Metrics
491422 -           following year, ref SDS 49 7493.]
491424 -            ..
491425 -           [See litigation support for COE on 970417, ref SDS 50 0000;
491426 -           and discussion with Max at ref SDS 52 0000.]
491428 -            ..
491429 -           [On 970606 Max requested claim support. ref SDS 53 5100]
491431 -      ..
491432 -     I explained that Communication Metrics inherently identifies
491433 -     conflicts in the record, through traceability to original sources,
491434 -     in order to alert management of the need to consider adjusting
491435 -     course with the aim of avoiding extra expense and delays, under
491436 -     the concept of "Concurrent Discovery" discussed with Tom Keesling
491437 -     in our meeting on 960906, ref SDS 23 4455.
491439 -      ..
491440 -     I also called this "debugging" management decisions in the meeting
491441 -     with Max on 960105, ref SDS 9 8552.  While the intent is to avoid
491442 -     claims, the deliverable, which is the record showing the alignment
491443 -     Max describes, is helpful in analysing claims, and in dispute
491444 -     resolution through administrative review and litigation, if claims
491445 -     arise, as discussed with Tom Keesling previously in entering the
491446 -     contract. ref SDS 27 7734, ref SDS 27 7558
491448 -      ..
491449 -     Tom joined us about half-an-hour into our discussion after he read
491450 -     the notes of my visit with Tom Benero, ref SDS 30 0000. He
491451 -     concurred with Max about focusing SDS on formal events, and to
491452 -     omit "analysis" in the record of formal events.
491453 -
491455 -      ..
491456 -     Capture Record as Decision Making Resource
491457 -
491458 -     We reviewed objectives of Communication Metrics to avoid disputes
491459 -     and the consequent need for claims and litigation, by improving
491460 -     communications and decisions so that mistakes do not occur that
491461 -     cause disputes, as discussed when we met on 960105. ref SDS 8 8659
491463 -      ..
491464 -     We considered Eric Jenett's article in the January 1994 issue of
491465 -     PM Network on need to improve productivity of business meetings.
491466 -     see review on 940114, ref SDS 4 2290   On 960205 need for support
491467 -     to improve meetings was highlighted in an article published in PM
491468 -     Network. ref SDS 10 5902
491470 -      ..
491471 -     Tom said it is hard to write a useful record during meetings,
491472 -     especially when doing a lot of the speaking (reflecting Lori
491473 -     Brown's comment at CDWR, ref SDS 6 4920).
491475 -      ..
491476 -     On 890809 difficulty capturing organizational memory was discussed
491477 -     with Morris. ref SDS 2 SI4K
491479 -      ..
491483 -      ..
491484 -     Tom commented that going from one meeting to another, there is not
491485 -     always enough time afterwards to capture (write up) understandings
491486 -     and check them against the prior record (per Tom Benero's
491487 -     observation yesterday, ref SDS 30 9834).  Tom Keesling indicated
491488 -     that capturing an accurate, relevant record of understandings to
491489 -     guide daily decision making is a key role for the Communication
491490 -     Metrics effort, as discussed with Max at our first meeting on
491491 -     960105. ref SDS 8 8659
491493 -          ..
491494 -         [On 960924 advantages of organizational memory balanced by
491495 -         fear of accountability. ref SDS 38 O24L
491497 -          ..
491498 -         [On 961023 Monti Jaggers said managers' notes taken during
491499 -         meetings are unreadable. ref SDS 43 2079]
491501 -          ..
491502 -         [On 970123 Intel uses constructive conflict to help people
491503 -         remember accurately. ref SDS 48 1111
491505 -          ..
491506 -         [On 970723 John Azeveda expressed similar concern. ref SDS 55
491507 -         2026]
491509 -          ..
491510 -         [On 980803 Max cited this problem. ref SDS 60 4192]
491512 -          ..
491513 -         [On 980917 Bill at Kwan Henmi cited problem. ref SDS 61 9048]
491515 -          ..
491516 -         [On 020927 the movie "The Maltease Falcon" showed that a
491517 -         common business practice in the 1930s and 40s was for someone
491518 -         to take notes during meetings where important, complex
491519 -         information was presented, so that someone could get it all
491520 -         down. ref SDS 62 W682
491522 -          ..
491523 -         [On 030120 reviewed types of difficulties capturing
491524 -         contemporaneous record of events. ref SDS 63 J148
491526 -      ..
491527 -     I advised that for formal events, SDS meeting notes provide little
491528 -     "analysis."  They mainly relate what was said, assign subjects,
491529 -     integrate documents, identify action items and link everything up
491530 -     with prior understandings, commitments, contracts, documents and
491531 -     so on, so that alignment can be assessed by participants and
491532 -     management, as discussed today.
491533 -
491535 -      ..
491536 -     Daily Follow Up, Subject Organization
491537 -     Confirm Understandings with Participants - Shared Meaning
491538 -
491539 -     Max indicated the Communication Metrics effort should entail
491540 -     contacting attendees at meetings to get their sense about the
491541 -     adequacy of meeting notes, so there is agreement.
491543 -      ..
491544 -     This also relates to building and maintaining "shared meaning"
491545 -     discussed with Max on 960105 as part of the subject indexing work,
491546 -     ref SDS 8 7391, and with Tom on 960209, ref SDS 11 8338, and again
491547 -     on 960920 when we discussed "Follow Up" per and ref SDS 27 7337.
491548 -
491549 -         [On 960921 used contract to setup initial SI. ref SDS 34 3521]
491550 -     ..
491551 -     We considered that this initial Welch contract is to enable
491552 -     COE to assess and discover the best way to apply the SDS tool and
491553 -     how Communication Metrics supports and hopefully enhances COE
491554 -     procedures which have evolved over hundreds of years without an
491555 -     automted tool to support management.  Our discussion today sets a
491556 -     course based on initial impressions from demonstrations of SDS,
491557 -     ref SDS 8 0000, the contract meeting on 960913, ref SDS 27 7337,
491558 -     and review of papers that explain theory, ref SDS 8 3999, with the
491559 -     understanding that some flexibility is needed to position COE
491560 -     management to evaluate new practices that have not previously been
491561 -     possible.
491562 -
491563 -
491564 -
4916 -

SUBJECTS
Claim Team Meeting, Dutra
Executive Not Enough Time, Fear Writing,
Not Enough Time to Write Notes, Executives
Leadership is Talking & Listening
Not Enough Time to Write Notes, Executives

5207 -
5208 - 1437 discussion with Tom
520901 -  ..
520902 - I will submit notes of the claim team meeting via internet, so they
520903 - are available to Tom on Monday morning.  Tom can edit and send them
520904 - back for finalization.  He will get one of their support people to
520905 - show how to create and editable file from a received email, so he can
520906 - just send back an edited version of my email to him.
520907 -
520908 -        [See follow up at ref SDS 36 line 56.]
520910 -  ..
520911 - I may drop by on Monday early, oa 0730.
520913 -  ..
520914 - I asked Tom for a copy of his notes from the meeting yesterday and the
520915 - list of attendees to include in the SDS record.  Tom said he did not
520916 - take any notes (per above), but he gave me a list of attendees,
520917 - including Rob, who is with the Port of Oakland.
520918 -    ..
520919 -    I have to get the formal contact data and post to the notes
520920 -    for the meeting on Thursday.
520921 -
520922 -        [Got names of people from Tom at ref SDS 36 line 80.]
520924 -  ..
520925 - Need to complete notes of meeting with Dutra held today, ref SDS 33
520926 - line 49.
520927 -
520928 -    Who has the sign up sheet???
520929 -
520930 -        [Mentioned this in letter to Tom transmitting notes to him at,
520931 -        ref SDS 37 line 41.]
520932 -
520933 -
520934 -
5210 -