CONTACTS 
0201 - Gahagan & Bryant Associates, Inc.                                                                                                                              O-00000651 0102
020101 - Mr. Rick Olejniczak; Vice President
0202 - COE, Oakland Harbor Project                                                                                                                                        O-00000646 0101
020201 - Mr. Thomas W. White; Project Engineer

SUBJECTS
Weekly Progress Meeting, 961029
Quality Control
Mud Budket in Todd, Schnitzer, IC 10 - 12,
Contract Disputes, Feel Good Management
Reliance on Feel Good Management Lets Small Problems
Slippery Slope to Murphy's Law, Downsizing
Short Cuts on Sound Management Practice
Less Formal Communications, Advocated by
Contract Expedites Work, Short Cuts Take
Fixing Small Problems Saves Time by
Entropy in Communications/Information
Contract Specify Good Management Because Nobody is Ever Ready to Impr
Contracts When in Doubt Best Policy about What to Do is to Follow the
Bad Management Cheaper than Good Management in the Moment Failure Cos
Bad Management Overwhelming Desire Fear Technology Changes Too Fast N
Overwhelmed Details of Daily Management in SDS Links Complexity Manag

2918 -
2918 -    ..
2919 - Summary/Objective
2920 -
292001 - Follow up ref SDS 24 0000, ref SDS 20 0000.
292002 -
292003 - Developed ideas for addressing the requirement to use a mud bucket in
292004 - designated project areas; and, more broadly using sound management
292005 - practice. Tom and Rick requested the notes of the meeting on 961101.
292006 - Tom suggested that I arrange to visit the site of the work.  He
292007 - expressed appreciation for improvement in project management that
292008 - Communication Metrics has made. ref SDS 0 1220
292009 -
292010 -
292012 -  ..
2921 -
2922 -
2923 - Discussion
2924 -
292401 - Contract Requirements for Performing Work Should be Followed
292402 -
292403 - Discussed notifying the contractor to comply with section 02480 para
292404 - 4.3.
292405 -
292406 - Rick asked about researching the intent to determine if it relates to
292407 - the level of turbidity.
292408 -
292409 -        [On 961107 follow up at ref SDS 26 8862.]
292411 -  ..
292412 - Rick reported flying over the work areas subject to this provision on
292413 - an inspection, and observing both the Antone, which is not using a mud
292414 - bucket, and the Paula Lee which is using a mud bucket. He has also
292415 - been on site and observed from ground level these work operations.
292416 - Rick recalled not noticing any difference in the level of turbidity
292417 - associated with these work operations.  He has photographs showing
292418 - these conditions.
292420 -  ..
292421 - Considered Gahagen and Bryant writing a letter as Quality Assurance
292422 - contractor, reporing on these observations.
292423 -
292424 -        [On 961107 set action item on this. ref SDS 26 0072]
292425 -
292427 -       ..
292428 -      War Was Lost, For Want of a Nail
292429 -      Fixing Small Problems Avoids Big Problems
292430 -
292431 -      [On 961204 Port of Oakland contends failure to use specified
292432 -      equipment and procedures, increased turbidity that led to shut
292433 -      down of Galbraith, then to Contractor moving Liberty Offloader,
292434 -      and may lead to terminating Contractor. ref SDS 32 0884
292436 -       ..
292437 -      [On 970110 Port claims that failure to follow contract provisions
292438 -      caused floating debris in harbor, which led to sanctions and a
292439 -      fine levied by RWQCB. ref SDS 36 6844.]
292440 -
292441 -         See Communication Metrics theory of working small problems so
292442 -         they do not grow into bigs ones, attributed to Murphy's Law,
292443 -         ref SDS 7 5005.
292445 -       ..
292446 -      [On 970321 report that Port was fined for failure to comply with
292447 -      permit requirements, ref SDS 37 8492,
292449 -       ..
292450 -      [On 970722 overpayment to contractor. ref SDS 39 5839]
292452 -       ..
292453 -      [On 980520 Max Blodgett reported District Counsel used record
292454 -      from Communication Metrics to save money for the governement. see
292455 -      ref SDS 43 2405]
292457 -       ..
292458 -      [On 981027 report indicates fine $190K. ref SDS 44 7315]
292460 -  ..
292461 - There was further discussion with respect to the depth specified for
292462 - using the mud bucket.  The section could be read to mean that a mud
292463 - bucket must execavate to the final project depth.  Another meaning is
292464 - that it is only required for the soft material, and that thereafter
292465 - other acceptable excavation methods can be used, such as the
292466 - Contractor's backhoe bucket on the Antone.
292467 -
292468 -      [On 961107 research requirements. ref SDS 26 0000]
292470 -       ..
292471 -      [On 961108 COE issued instructions. ref SDS 27 0000]
292473 -  ..
292474 - Tom White advised that Rob Andrews with the Port of Oakland called
292475 - about the use of mud buckets in the designated areas.
292477 -  ..
292478 - Rick Olejneczak recalled that the amount of water flowing from the
292479 - clamshell bucket on the Paula Lee was significant.  There seemed to be
292480 - discussion that this may have reflected that the rubber flaps intended
292481 - to contain flows from the bucket during extraction and placement of
292482 - material on the scow, have been removed.
292483 -
292485 -  ..
292486 - Slippery Slope to Murphy's Law Nobody Follows Contract
292487 - Contract Management "Best Practices" to Expedite the Work
292488 -
292489 - To support waiving contract provisions above, ref SDS 0 8843, there
292490 - was discussion about the need to work with the contractor using
292491 - judgement and flexibility to accomodate field circumstances in
292492 - applying the contract.
292494 -  ..
292495 - Rick and Tom offered an explanation that the contractor is under a lot
292496 - of pressure to get things done, and so deserves leeway in order to
292497 - expedite the work.
292498 -
292499 -      [On 020504 FAR part 4.803(a)(34) requires waiver of contract
292500 -      terms to be documented. ref SDS 46 KT8J
292502 -  ..
292503 - They feel giving the contractor leeway on complying with provisions
292504 - which the contractor asked to perform in exchange for payment,
292505 - maintains good working relations among the people who interact daily
292506 - on the job, consistent with Dutra's advocacy and use of "less formal
292507 - communications," ref DRP 8 8444, from the Progress Meeting on 961029.
292508 - ref SDS 20 8852
292510 -  ..
292511 - On 921120 reviewed "feel good" management, ref SDS 4 8388, based on
292512 - prior analysis on 911123. ref SDS 3 1331  This method was used on
292513 - Broadwater Dam with disappointing results. see for example the record
292514 - on 880921, ref SDS 1 8526 and ref SDS 1 4896, and a few days later on
292515 - 880930. ref SDS 2 OR7M
292517 -  ..
292518 - On 940611 PMI Asilomar Conference presented scenario of ship crashing
292519 - at sea as a result of expeding to avoid paperwork. ref SDS 5 1763
292520 -
292521 -      [See Contract Admin meeting on 961230, ref SDS 34 4729]
292523 -  ..
292524 - We considered difficulties that arise when contract provisions are
292525 - ignored.  This sets a precedent that undermines enforcement of all
292526 - contract provisions. (see War was Lost, above. ref SDS 0 8008]
292527 -
292529 -  ..
292530 - A slippery slope causes increasing pressure to ignore deviations in
292531 - order that progress can be expedited and people can feel good about
292532 - working together, ref OF 9 7490.  Gradually small deviations grow into
292533 - a gulf that becomes a morass of errors that delay completion, increase
292534 - expenses and result in dissention, disputes, conflict, litigation,
292535 - commonly attributed to "Murphy's Law." ref OF 9 6449
292537 -  ..
292538 - On 941021 "slippery slope" effect was reviewed. ref SDS 6 7488.
292540 -  ..
292541 - The Oakland Harbor project may relate to this slippery slope in some
292542 - respects.
292544 -  ..
292545 - What to do?
292547 -  ..
292548 - One approach is to enforce the contract and show in the record the
292549 - circumstances and reasoning in doing so.
292551 -  ..
292552 - If there is a provision that should not be enforced, as can be the
292553 - case, then the Contractor can point this out, and a then reasoned
292554 - determination can be made.
292556 -  ..
292557 - This procedure fulfills the intent of the contract to be an effective
292558 - instrument for guiding the conduct of business between the parties.
292560 -  ..
292561 - If the contractor wishes to deviate, it can submit a request for
292562 - determination, including any consideration that may be warranted to
292563 - justify a change.  In all cases, the record should show COE's
292564 - consistent good faith, professional, diligent effort to implement the
292565 - agreement with the contractor.
292566 -
292567 -     [On 961108 reviewed with Max, work to update the Project
292568 -     Management Plan, ref SDS 28 0000.]
292570 -      ..
292571 -     [On 961115 reviewed Action Items and good management practice.
292572 -     see ref SDS 30 0000]
292574 -      ..
292575 -     [On 970722 possible overpayment to contractor, ref SDS 39 5839]
292577 -  ..
2926 -
2927 -
2928 - 1416 discussion with Herb Cheong
2929 -
292901 - Advised Herb of above discussions.
292903 -  ..
292904 - Herb feels the Contractor should be notified to conform with the
292905 - contract requirements.
292906 -
292908 -  ..
2930 -
2931 -
2932 - 1436 meeting with Tom Keesling
2933 -
293301 - Advised of above matters.  Tom indicated he will research the EPA
293302 - requirements for rationale of the mud bucket requirement, so we can
293303 - then determine a course of action.
293304 -
293305 -      [On 961107 reviewed regulations. ref SDS 26 4382
293307 -       ..
293308 -      [On 961108 instructions issued to contractor. ref SDS 27 0000]
293309 -
293310 -
293311 -
293312 -
2934 -

SUBJECTS
Schedule for Construction, 52.236-15
Surveys Predredge, Postdredge

3104 -
310501 -  ..
310502 - Schedule Update; Acceptance of Polygons
310503 -
310504 - Tom White and Rick Olejneczak asked about the notes of the meeting
310505 - with the Contractor on 961101 that are cited in the letter issued at
310506 - the Progress Meeting today.
310507 -
310508 - Tom Benero faxed a set of these notes to Dutra following the meeting,
310509 - which were inadvertently omitted from the letter given to the
310510 - Contractor during the meeting, and distributed to COE staff.
310512 -  ..
310513 - This evening I issued via internet the notes to Tom White for
310514 - distribution to others.
310515 -
310516 -    [Note the next day, Monti Jaggers asked about these notes also, and
310517 -    so I submitted them to her via email also.  They bounced back
310518 -    because her email was full.  I called and left a voice mail message
310519 -    on this ponit.]
310520 -
310521 -
310522 -
310523 -
3106 -

SUBJECTS
0019   Remove concentrated debris Todd and

3203 -
320401 -  ..
320402 - Schedule Site Visit
320403 -
320404 - Tom asked me to call Rick Oleniczak tomorrow and advise that Tom White
320405 - would like Rick to make arrangements for me to visit the work.
320406 -
320407 - I indicated I would like to do this on Thursday, and to arrange to
320408 - observe the debris removal operation to research the issues Bob
320409 - Johnston raised this morning. ref SDS 24 5730
320411 -  ..
320412 - Tom said Rick can do this, provided that work is underway on
320413 - Thursday.  He indicated we can visit the Galbraith off-loading site
320414 - which can be accessed by boat.
320415 -
320416 -
320417 -
3205 -

SUBJECTS
Evaluation
Communication Metrics Improves Daily
Facilitate Meetings, Use SDS Record
Port of Oakland Says Not Needed
Organizations, Reports
Learning SDS Requires Experience,
Experience Needed to Understand SDS,

4209 -
421001 -  ..
421002 - Communication Metrics Saves Money
421003 -
421004 - Tom White said he is preparing an evaluation of Communication Metrics
421005 - use on the Oakland Harbor project, for submission to Tom Keesling.  He
421006 - said it will indicate positive results.
421007 -
421008 - Tom explained that the first few weeks he felt SDS was excessive
421009 - overkill, and even harmful to good business relations among the many
421010 - participants on the project because people were getting upset about
421011 - details in the project record (see for example discussion on 961017.
421012 - ref SDS 13 5832
421014 -  ..
421015 - Now he sees the method is turning up important matters that escaped
421016 - attention due to the hectic pace of the work.
421017 -
421018 -     [On 970107 Bob Johnston, president of Dutra, reported that SDS was
421019 -     helpful for saving the contractor money, rather than a threat as
421020 -     he initially expected. ref SDS 35 4953
421022 -  ..
421023 - Tom feels Communication Metrics provides accurate information and
421024 - timely notice of things that need attention, and it shows important
421025 - patterns of events (trends, cause and effect) that are missed in daily
421026 - management because the passage of time between events obscures
421027 - correlations.  He indicated that these factors permit better decisions
421028 - that improve management of the work.
421030 -  ..
421031 - I mentioned Tom Keesling made similar comments in a meeting with Tom
421032 - Benero and Herb Cheong last week, on 961101. ref SDS 22 8888.
421033 -
421034 -      [On 970110 Tom requested an Action Item report from Communication
421035 -      Metrics work product. ref SDS 36 7768.]
421036 -
421037 -      [On 971017 discussed with Jim Jones, HQUSACE CEMP-E cost savings
421038 -      using Communication Metrics to expand span of attention, as Tom
421039 -      White relates today. ref SDS 40 0944]
421041 -  ..
421042 - Tom cited the discussion this morning with Bob Johnston about the
421043 - implications of Dutra's record on the Navy Sewer Line submittal,
421044 - ref SDS 24 7429.
421045 -
421046 -      [On 961112 Dutra had been failing to comply with a series of
421047 -      contract requirements. ref SDS 29 6933]
421049 -  ..
421050 - He feels Communication Metrics is better able to align daily work with
421051 - contract requirements and project objectives so that people do not
421052 - inadvertendly overlook what should be done until it becomes expensive
421053 - to change course, per our discussion above. ref SDS 0 8843 and also at
421054 - ref SDS 0 6121
421055 -
421056 -      [On 980307 Andy Grove's book says analysis is critical to good
421057 -      management. ref SDS 42 3668]
421059 -       ..
421060 -      [On 981104 report issued to CESPN. ref SDS 45 0207]
421062 -  ..
421063 - He said the research in the SDS record is accurate, and has turned out
421064 - to be helpful in ways he had not expected, as discussed at the meeting
421065 - on 961017. ref SDS 13 0880
421067 -  ..
421068 - Tom said the simple solution to the Navy Sewer Line problem that
421069 - became evident from the SDS record, ref SDS 11 4820, had previously
421070 - been viewed as very complex and worthy of COE consideration for a
421071 - change order that would have cost extra money. ref SDS 10 5833
421073 -  ..
421074 - He feels now that linking together what people say in meetings, with
421075 - calls, correspondence and contract requirements, like our discussion
421076 - on the mud bucket matter, above, ref SDS 0 8843, more helpful than he
421077 - had at first thought.
421079 -  ..
421080 - Tom noted the professional manner with which I draw information from
421081 - meeting attendees, and respond during dialog to clarify meaning and
421082 - alignment with objectives, as discussed on 961017. ref SDS 13 0880
421084 -  ..
421085 - I thanked Tom for appreciating the Communication Metrics process that
421086 - raises issues without raising temperatures, so that line managers can
421087 - save time and money.
421088 -
421089 -    [On 961126 Action Item meeting on NSL matter. ref SDS 31 9956]
421090 -
421091 -    [On 961204 meeting with Dutra to solve Navy Sewer Line RR crossing
421092 -    problem without extra cost to government and provide extra payment
421093 -    to Dutra by solving a UPRR problem. ref SDS 33 0000]
421095 -     ..
421096 -    [On 970418 USACE issued report on Communication Metrics covering
421097 -    these points. ref SDS 38 3368 and ref SDS 38 5883]
421098 -
421099 -
4211 -