CONTACTS 
0201 - S J Gallina & Company              510 943 1776 fax 1876
020101 - Mr. Edmond E. Traille; Partner
0202 - Jacobs Associates                  415 434 1822
020201 - Mr. Ted MacDermott; Claims Department

SUBJECTS
Proposal, Contract & Support
Turner, San Francisco
Cost/Benefit of Better Communications
Market Fears Being First to Use New Methods
Communication Manager Fewer People More
Cost Benefit - Increase Usefulness, Reduce
Level of Effort, Calculate Cost Benefit
Overhead Managers are Unproductive

1210 -    ..
1211 - Summary/Objective
1212 -
121201 - Followed up work at ref SDS 4 line 62, ref SDS 2 line 57, re
121202 - line 54.
121203 -
121204 - Was unable to locate a source, information or guidance on calculating
121205 - the value added of level of effort roles for accounting, architects,
121206 - project managers, cost/schedule engineers and Communication Managers.
121207 -
121208 -
121209 -  ..
1213 -
1214 -
1215 - Discussion
1216 -
121601 - Ed said he is unfamiliar with preparing a calculation for the value
121602 - added of a Project Manager, Architect, Cost or Schedule Engineer.  I
121603 - asked if he could calculate the value added of his profession, an
121604 - accountant.  Obviously, each of these jobs have a cost and a
121605 - corresponding benefit that justifies the cost, in the same way that a
121606 - carpenter or computer programmer's work can be evaluated based on the
121607 - income it generates.  For level of effort work, the calculation seems
121608 - like it would be based on risk avoidance.  I asked Ed if he has
121609 - developed a list of project risks that can be quantified?
121610 -
121611 - Ed said he has never encountered a need to do this.
121612 -
121613 - He suggested I call Daniel Kass at Jacobs and Associates on Sansmoe
121614 - Street in San Francisco.  Ed said he has worked with Daniel to testify
121615 - in contract litigation and they may be able to make this calculation.
121616 -
121617 - I interviewed John Nichols with Jacobs in 1984 about testifying in
121618 - Welch v. State of California.
121619 -
121620 -
121621 -
1217 -
1218 -
1219 - 1602 called Jacobs
1220 -
122001 - Daniel Kass is not in the office.  Talked to Ted MacDermott.
122002 -
122003 - Explained objective, ref SDS 4 line 90. Ted said they have not done
122004 - this and have not identified a list of project risks that can be
122005 - quantified.  They mostly consider risk after the fact by calculating
122006 - additional staff a contractor was required to hire to perform the work
122007 - caused by changes in the work, including claims.
122008 -
122009 - I explained the idea of a Communication Manager and the report
122010 - prepared by the Corps of Engineers.  Ted said this role is like a
122011 - Claims Manager.  Jacobs & Associates recommends that their customers
122012 - bring in a Claims Manager early, but this is rarely done. Contractors
122013 - prefer to wait until problems occur then hire Jacobs to help recover
122014 - what is perceived as lost income.
122015 -
122016 - We considered the idea that each month project schedule activities are
122017 - reported as ahead or behind schedule.  Normally, there are no tasks
122018 - reported as on-schedule throughout the entire project. Similarly the
122019 - budget shows accounts above or below target amounts. Managers then
122020 - spend time to improve the activities and budgets that are below
122021 - targets.  Those that are unsuccessful either become claims or are
122022 - accepted as losses.
122023 -
122024 - We should be able to calculate the standard deviations on these
122025 - factors and thereby identify a pool or funds that can be earned by a
122026 - Communication Manager.  This would be especially so, if the schedule
122027 - uses C/SCSC so we can associate cost with delay.
122028 -
122029 - I will submit the CE report on Communication Metrics to Ted.
122030 -
122031 -      [Did this at ref SDS 5 line 58.]
122032 -
122033 -
122034 -
122035 -