Document 5kx1QZ5NnVN5MVx9LD9xqE1mR

INTER-OFFICE MEMORANDUM TO L. H. Oppenheim. at Oakland date "om January 18, 1968 D. A. Daly copies to See Distribution at Middletown v jos no. 62*71-00 subject Summary Cost and Comparison to Estimate Report - December, 1967 Middletown Works Expansion Program, Armco Steel Corporation Attached is .the December, 1967 Summary Cost and Comparison to Estimate Report for the Middletown Works Expansion Program. Project 62*71-00, Indirect Management Costs for 1967, was closed out this month with an overall project saving of $9,5>l8 below the appropriation, and project 61*71-08, Oxygen Systems, was closed out with an overall project saving of $81*,020 below the appropriated amount. A supplemental appropriation for project 62*71-10, Power Distribution, was received in the amount of $751,000 covering scope changes recognized by Armco and reduces the indicated appropriation overrun by the same amount. No changes were reflected in projects 62*71-13, Railroads and Rolling Stock; 62*71-12*, Locker Rooms; 61*71-50, Green Coil Storage Building; 61*71-56, No. 2* Strip Pickier Facilities; 62*71-59, No. 5 Strip Pickle Line; and 62*71-60, Tandem Cold Mill. Major changes are in 62*71-28, Basic Oxygen Shop, which increased $558,122*, and in 62*71-2*8, Hot Strip Mill, which increased $591,820. Details of these significant changes are as follows: 62*71-28, Basic Oxygen Shop - Increase in structural steel quantities for the B0F Shop - Decrease in structural and miscellaneous steel quantities for the Lab and Office Structure - Decrease in foundation concrete and related work in the Pump Enclosure - Increase for Steam Tracing, pipe insulation, and field wiring in the Gas Handling System - Increase for cost of instrumentation control panel for Gas Handling System - Increase in concrete encasement quantities for B0F Shop Raceways - Increase in Engineering & Staff to cover preparation of bills of material, abandoned engineering and additional engineering required for authorized changes and electrical drawings deleted from Chemico'swork - Minor changes 190,770 (119,2*08) ( 98,800) 255,000 50,000 88,700 202,000 ( 10,138) 558,12i* KEN 009819 L. H. Oppenheim -2- January 18, 1968 6871-88, Hot Strip Mill - Increase in Metalwork accounts required by remaining work to complete the fume elimination ductwork, walkways and platforms, and final payments to structural steel subcontractor - Increase in major mill equipment (United) to cover escalation payment - Increase to cover reworkfor month of December - Increase for minor changes 53,280 Ii69,800 58,230 10,510 591,820 The increase for 6871-28, Basic Oxygen Shop is offset by a reduction of $558,121; in contingency, and the increase for 61*71-88, Hot Strip Mill is offset by a reduction of $591,820 in Evaluated Exposure. Other significant changes during December include increases of $30,1*25 in 61*71-05, Water Systems; $9,000 in 61*71-86, Slab Mill; $25,000 in 6871-86, Pollution Abatement, Pickling Waste Disposal; and a decrease of $77,200 in 6871-09, Gas-Fuel Systems. The remaining projects show either minor changes or offsetting minor increases and decreases for a net increase of $5,782. DADrms Distribution: Oakland W. F. Bort J. L. Friedman J. E. Hughes E. D. Lowell*-''"'^ H. 0. Tracy R. J. Wolf Butler R. D. Sahlberg Middletown C. Billings (3) H. C. Boucher R. C. Hulseman J. W. Irvin F. X. Kast G. L. Roberts B. H. Scott R. Auld E. J. Denner J. J. Healy K. D. Killin C. R. Schwalen C. C. Smith R. D. Smith S. Wortman (7110) (7183,-85,-86,-88) (7150,-56,-59) (7150,-56,-59) (7183,-85,-86) (7160) (7186) (7128) KEN 009820 GeteD KAISER ENGINEERS R. J. Wolf Oakland COPIES TO INTER-OFFICE MEMORANDUM DATE December 22, 1967 FROM AT E. D. Lovell OKlulNAL SuirtEQ *4 ED. LOWELL Oakland JOB NO. 6L71-00 SUBJECT Indirect Costa for Middletown In reference to Don Laly*a moo dated December 11, 1967 on the same object, ve have prepared a study on prior EE jobs with the following results: A. Percent contractor's field overhead, construction plant, engineering, supervision sad procurement costs are of total direct construction costs, all vith 100$ overhead on engineering, etc. costs, and based on costs at the time of construction. Job Ho. 551H - Pontans Job Ho. 59^2/6227 - Ashland Job Ho. 5522/55100 - Ravensvood Job Ho. 6326 - D. R. Mill, Fontana Sumnary of preceding jobs 12.62% 11.9*4 13.37$ 12.19$ 12.89$ B. Percent contractor's field overhead, construction plant, engineering, supervision end procurement costs are of total direct construction costs. The 100$ overhead applied to aetail design only vith the balance at 20$. Job Ho. 55111 - Fontana Job Ho. 59^2/6227 - Ashland Job Ho. 5522/55100 - Ravensvood Job Ho. 6326 - D. R. Mill, Fontana Summary of preceding jobs 12.00$ 11.19$ 12.76$ 11.38$ 12.25$ Attached is a copy of ay worksheet for your records. 5 I have not sent a copy of this material to Don as 1 vae not sure that ve vould vent it in the Middletown area at this time. EDLjov Attach. KEN 009821 6h71 STF.FL PLANT FACTLTTIES ARMGO, MIDDLETOWN, OHIO KEN 009818