CONTACTS 
0201 - Corps of Engineers, SFD            415 977 8400 fax 8483
020101 - Mr. Max R. Blodgett, II, P.E., L.S.
020102 - Chief =415 977 8444; Construction Operations Division =415 977 8480
0202 - Corps of Engineers, SFD            415 977 8400 fax 8483
020201 - Mr. Marc McGovern; Construction Manager =415 977 8467
020202 - Construction Operations Division   =415 977 8480

SUBJECTS
CBD Procurement Communication Metrics
Welch Contract Oakland Claims, 97072401
Sole Source Justification

0905 -    ..
0906 - Summary/Objective
0907 -
090701 - Follow up ref SDS 21 0000, ref SDS 20 0000.
090702 -
090703 - Max gave John Eft the Welch scope of services and advised John that
090704 - Con Ops needs the services on an expedited basis.  John will advise
090705 - Max of his opinion on the justification for sole source procurement.
090706 - Max will provide the District's Communication Metrics report to John
090707 - for considreation in evaluating sole source criteria.  Marc advised
090708 - that Dutra's former president and project manager on Oakland has
090709 - retired.
090710 -
090711 -     [See report John came up with a solution, ref SDS 22]
090712 -
090713 -
090714 -
0908 -
0909 -
0910 - Discussion
0911 -
091101 - Welch Procurement Needs District Counsel Review on Sole Source
091102 -
091103 - Follow up ref SDS 21 0000, ref SDS 19 line 194.
091104 -
091105 - Max was reading his email when I arrived following my meeting at
091106 - Intel.  He had not yet read the notes, ref DIP 5 line 30, for the
091107 - meeting last Friday, ref SDS 19 line 69,
091108 -
091109 - Max said that last Friday afternoon he gave District Chief Counsel,
091110 - John Eft, the Welch contract scope of services, ref OF 1 line 7, per
091111 - my discussion with Tom this morning, ref SDS 21 line 100; and, he told
091112 - John that he believes Communication Metrics is a unique service, and
091113 - that the District needs this support now, due to the deterioriating
091114 - situation on Oakland, ref SDS 16 line 194.  Max said John told him
091115 - that he will review the proposed scope of services for Welch and give
091116 - Max an opinion about whether adequate grounds exist on the Oakland
091117 - project to issue a sole source contract to Welch.
091118 - ..
091119 - I asked Max if he gave John the Communication Metrics report
091120 - that contains a finding by the District that Communication Metrics is
091121 - a unique service based on SDS which has a unique design, ref DRP 1
091122 - line 547 and ref DRP 1 line 560?  Max said he did not give John the
091123 - Communication Metrics report because he could not find it and thinks
091124 - he gave his copy to someone, per our discussion last Tuesday, ref SDS
091125 - 13 line 382.
091126 -
091127 -     [See submission of another copy to Max on 970731, ref SDS 22 line
091128 -     314.]
091129 -
091130 - I went and asked Marc McGovern for his copy of the Communication
091131 - Metrics report so Max can use it to help John Eft recognize the work
091132 - done by the District on determining the uniqueness of Communication
091133 - Metrics.  We discussed briefly Max's objective to make a sole source
091134 - procurement for Welch to help Marc and John on Oakland.  Marc said has
091135 - told Max I am needed to answer the backlog of letters from Dutra.  We
091136 - considered the need to obtain from Ofel the contract documents Tom
091137 - Keesling prepared last December, and use them to prepare a new sole
091138 - source procurement that can be prepared based on input from John Eft
091139 - received by Max.  A draft probably should be reviewed with John before
091140 - it is submitted to him in final form, per discussion with Tom this
091141 - morning, ref SDS 21 line 134.  Marc said he does not have enough time
091142 - to do this.  We considered possible ways to help him with preparing
091143 - the procurement documents.
091144 -
091145 -      [See follow up on Thursday, ref SDS 22 line 250.]
091146 -
091147 - I gave Marc's copy of the Communication Metrics report to Max He
091148 - looked at the cover and thumbed through the report.  He said he has
091149 - never seen the report.
091150 -
091151 - I explained having delivered it to him in a meeting on 970421, ref SDS
091152 - 7 line 99, the day I delivered the letter for Merry Goodenough on the
091153 - litigation support report she needed.
091154 -
091155 - We reviewed the District's findings in the report that Communication
091156 - Metrics and SDS are unique capabalities, ref DRP 1 line 350, ref DRP 1
091157 - line 547, ref DRP 1 line 769.  Since the District has invested
091158 - considerable time, effort and expense to produce the report, it should
091159 - comprise affirmative evidence that Communication Metrics is a unique
091160 - service.  The burden shifts for John or others to produce opposing
091161 - evidence.  This may resolve itself if John reads the report, District
091162 - management comments and the scope of services,
091163 -
091164 - Max will visit with John tomorrow on considering the Communication
091165 - Metrics report.
091166 -
091167 -     [See report that John approved sole source procurement for Welch
091168 -     to perform Communication Metrics, ref SDS 22 line 111, ref SDS 22
091169 -     line 359.]
091170 -
091171 -
091172 - Subcontract to Luster or Others
091173 -
091174 - We considered that if John comes back with an opinion stating sole
091175 - source procurement is not justified, then Max can investigate a
091176 - subcontract arrangement with Luster or some other contractor with whom
091177 - the District has an open contract.  Max said that is how the District
091178 - hired John Lally, who works for Hartman Consulting Company, and is
091179 - assisting John Azeveda on the Oakland project, ref SDS 16 line 111.
091180 - This was the original purpose of Task Order 2 for Luster set on
091181 - 970212, ref SDS 4 line 118.
091182 -
091183 - We still need to do a CBD procurement for Communication Metrics either
091184 - way.
091185 -
091186 -
091187 -
091188 -
0912 -

SUBJECTS
Dutra
Superintendence by the Contractor, 52.236-6
COE, Port, Dutra
Notes of Meetings
Partnering, TQM for Contracts

1408 -
140801 - Bob Johnston Retired from Project, New Superintendent
140802 -
140803 - Followed up work at ref SDS 3 line 101.
140804 -
140805 - When I got the Communication Metrics report from Marc, he showed me
140806 - recent letters from Dutra.  He was quite concerned about the critical
140807 - tone Dutra's letters direct toward the Corps of Engineers.
140808 -
140809 - I examined the latest letter briefly to see who had prepared it.  I
140810 - noticed someone named Stewart had signed the letter.  I asked about
140811 - the status of Bob Johnston who was president of the firm and project
140812 - manager on Oakland.
140813 -
140814 - Marc said Bob retired from the company a number of months ago,
140815 - reflecting concerns expressed by Tom White in our discussion on
140816 - 961219, ref SDS 3 line 104.  It also reflects analysis of increased
140817 - superintendence needed based on review of Dutra's schedule submission
140818 - on 961202. ref SDS 2 9960
140819 -
140820 -
140821 -  ..
140822 - Partnering Used by Dutra Against USACE to Recover on Claims
140823 -
140824 - Marc advised that Dutra is citing understandings they drew from
140825 - partnering meetings as evidence of entitlement on its various claims
140826 - which now exceed $60M.
140827 -
140828 - He feels the Corps has been ill served by partnering.
140829 -
140830 - On 940103 article reported USACE Chief Counsel cited success using
140831 - partnering to reduce payout on claims. ref SDS 1 1236
140832 -
140833 -     [On 981027 USACE paid $30M to settle claims on original contract
140834 -     for $42M. ref SDS 23 9152]
140835 -
140836 -
140837 -
1409 -