THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: May 7, 1999 09:18 AM Friday; Rod Welch

Jim at HQUSACE recommends consideration Com Metrics for partnering.

1...Summary/Objective
2...USACE Partnering Team Considering Common Administration
3...Partnering Offers Path to "Paperless" (Less Expensive) Contract Admin
4...Partnering Means "Effective" Communication for Successful Projects
5...Common Administration Using "Metrics" Makes Communication Effective
6...Common Admin Makes Partnering Effective Within Bidding Environment


..............
Click here to comment!

CONTACTS 
0201 - U.S. Army Corps of Engineers         202 761 0011
020101 - Mr. James V. Lovo; Team Leader =202 761 4804 fax 4783
020102 - Construction Management Team, CEMP-EC

SUBJECTS
USACE CESPN CSB Review
Wider Use Communication Metrics
Experience, Need Broader Base
Information Overload
Common Administration
Oakland Harbor Project
Partnering

1409 -    ..
1410 - Summary/Objective
1411 -
141101 - Follow up ref SDS 41 8820, ref SDS 35 2700.
141102 -
141103 - Jim forwarded initiative on Common Administration to the people
141104 - working on partnering.  He explains the link between effective
141105 - partnering and the need for improving communication to solve
141106 - information overload that causes mistakes, loss and conflict.  He
141107 - suggests a pilot test, and indicates direct contact between Welch and
141108 - the HQ team can be fruitful.  Partnering can support USACE business
141109 - practice of competitive bidding. Feedback from counsel and industry
141110 - can shape implementation.
141111 -
141112 - Sent ref DIT 1 0001 to Bob and Jeff, linked to this record on
141113 - potential of partnering to support mutual goals of contractors and the
141114 - Corps for "paperless" contract administration. ref SDS 0 9066  Sent
141115 - copy to Jim and Tom Keesling.
141116 -
141117 -     [On 990509 sent thank you note to Jim. ref SDS 42 3255]
141118 -
141119 -     [On 990510 received feedback from Jim to correct the record....
141120 -     ref SDS 43 4770]
141121 -
141122 -     [On 990513 followed up on partnering. ref SDS 44 8200]
141123 -
141124 -
141125 -
141126 -  ..
1412 -
1413 -
1414 - Progress
1415 -
141501 - USACE Partnering Team Considering Common Administration
141502 -
141503 - Received ref DRT 1 7920 from Jim forwarding my letter, ref DIP 2 0001,
141504 - sent yesterday, on our discussion about Common Administration to make
141505 - partnering more effective for the Corps and for contractors.
141506 - ref SDS 41 3408
141507 -
141508 - This shows leadership cited on 970703, ref SDS 10 9603, to overcome
141509 - ignorance, fear and denial explained on 960624, ref SDS 4 1037, that
141510 - avoids the "inertia of success" that prevents executives from using
141511 - new methods, cited by Grove on 980307. ref SDS 14 3740
141512 -
141513 - The goal is to enable USACE to increase savings using Com Metrics
141514 - cited by District Counsel on 981027, ref SDS 16 7315, and estimated
141515 - previously by the District on 971008. ref SDS 11 2979
141516 - ..
141517 - Letter went to...
141518 -
141519 -               Robert W Chesi, HQ02
141520 -               ROBERT.W.CHESI@HQ02.USACE.ARMY.MIL
141521 -
141522 -               Jeff P Krull, HQ02
141523 -               KRULL@HQ02.USACE.ARMY.MIL
141524 -
141525 - Jim's report explains SDS tools that support Communication Metrics.
141526 - (draft #2) ref DIP 1 8960
141527 -
141528 -
141529 -  ..
141530 - Partnering Offers Path to "Paperless" (Less Expensive) Contract Admin
141531 -
141532 - Partnering provides an ideal path for...
141533 -
141534 -
141535 -                 paperless contract administration
141536 -
141537 -
141538 - ...using Communication Metrics on the Internet.  Other ways of
141539 - describing this goal are...
141540 -
141541 -
141542 -                     paperless office
141543 -                     virtual office
141544 -                     repository of knowledge
141545 -                     enterprise management
141546 -                     business intelligence
141547 -
141548 -
141549 - On 990105 Jim Lovo reported paperless Contracting is struggling to
141550 - reach this goal.  He noted that Communication Metrics does not require
141551 - using any paper. ref SDS 21 5880
141552 -
141553 - Communication Metrics offers an immediate, cost effective path to
141554 - accomplish these objectives with minimal impact on existing USACE and
141555 - Contractor systems.  It is an overarching system that makes everything
141556 - else work better by adding "intelligence" to management.
141557 -
141558 - "Intelligence" is defined in POIMS. ref OF 1 0582
141559 -
141560 - Engineers in the field report this is "pretty neat". ref DRP 2 3587
141561 -
141562 - Savings were reviewed on 990201. ref SDS 23 6925
141563 -
141564 - Reducing mistakes, conflict and stress on 990127. ref SDS 22 8299
141565 -
141566 - An example of paperless administration is Jim's memo to Bob and Jeff
141567 - dated today. ref DRT 1.
141568 -
141569 - Partnering with contractors can achieve these benefits.
141570 -
141571 -
141572 -  ..
141573 - Partnering Means "Effective" Communication for Successful Projects
141574 - Common Administration Using "Metrics" Makes Communication Effective
141575 -
141576 - Jim notes that open, effective communication sustained over the entire
141577 - project is vital to the partnering process of creating and achieving
141578 - common goals and objectives. ref DRT 1 5616
141579 -
141580 - Common Administration was developed on 990328 because conventional
141581 - practice cannot sustain effective communication due to the vagaries of
141582 - personality and pressures of information overload. ref SDS 26 9641
141583 -
141584 - Adding "metrics" makes communication effective. ref SDS 26 9641
141585 -
141586 - Common Administration using Communication Metrics as an independent
141587 - agent reduces the impact of personality, that helps the parties
141588 - accomplish common goals, i.e., the aims of partnering...
141589 -
141590 -     1.  get the job done on time and within budget
141591 -     2.  make some money
141592 -
141593 -
141594 -  ..
141595 - Common Admin Makes Partnering Effective Within Bidding Environment
141596 -
141597 - This can be done without eviscerating competitive bidding which
141598 - requires accountability to ensure good faith participation, and a
141599 - vigorous market.  Partnering cannot decay into a give-away process,
141600 - because that will result in race to the bottom; people competing to
141601 - submit the most meaningless bid in expectation of being made "whole."
141602 - That is not "partnering."
141603 -
141604 - Partnering means, as Jim notes, effective communication.  It also
141605 - means timely, fair dispute resolution.  Communication Metrics helps
141606 - both objectives.
141607 -
141608 - The biggest detriment to effective "partnering" is also the biggest
141609 - detriment to successful projects:  failed communications cause work
141610 - that does align with requirements.  Empowering contractors and the
141611 - agency to align communications with requirements is the most direct
141612 - way to ensure the work is aligned with requirements.  Once mistakes
141613 - are made, if the stakes are high, substantive "partnering" fails
141614 - because interests are in conflict.
141615 -
141616 - Common Administration using Communication Metrics eliminates mistakes
141617 - that cause conflicting interests to explode.
141618 -
141619 - Evidence of effectiveness is the report by contractors that better
141620 - communication helped them.  For example, on 970107 Dutra's president,
141621 - Bob Johnston, who was no friend of Communication Metrics nor the Corps
141622 - of Engineers, found that effective common effort can be achieved,
141623 - despite differences, through Common Administration. ref SDS 7 4953.
141624 -
141625 - On 970110 USACE staff reported benefits of Communication Metrics....
141626 - ref SDS 8 2487
141627 -
141628 - On 990419 Dutra's counsel reviewed Common Administration from an
141629 - industry perspective and indicated support. ref SDS 28 9420
141630 -
141631 - On 940103 USACE Chief Counsel reported in an article published by PMI,
141632 - that "partnering" should save money. ref SDS 2 1236
141633 - ..
141634 - Possible action items...
141635 -
141636 -    Review Common Administration on 990328. ref SDS 26 9641
141637 -
141638 -    Obtain opinion from Chief Counsel based on District Counsel's
141639 -    report in San Francisco on 981022 reporting Communication Metrics
141640 -    on the Internet saves money. ref DRP 1 3587
141641 -
141642 -    Conduct trial on a project, per Jim's letter. ref DRT 1 3163
141643 -
141644 -    Obtain industry opinion through focus groups, professional events,
141645 -    canvasing.
141646 -
141647 -
141648 -
141649 -
1417 -
1418 -
Distribution. . . . See "CONTACTS"