Document 6RvQrX8z6G5rZLBx0oX5JZy46

PLAINTIFFS I EXHIBIT ETCO-46 0 Mr. A. C. Burdick, Jr. G. 6. Hobart* Continuing Contract* for I960 Baton Kouge Batoa Koug* January 11, I960 Thio I* to justify r*n*wing of two contract* for 1960. Drafting and Design Contract - Barnard li Burk This contract i* to furnish sufficient manpower of specified qualifications to supplement th* General engineering manpower, permitting the expeditious handling of extra work as well a* prompt reduction of expenditures for technical manpower upon completion of peak project work. The contract unit cost is $11,100 per man-year. Should Ethyl employ equivalent personnel in lieu of continuing this contract, a hook cost of $11,500 (or an incremental cost of $9,200) would result. The 1959 experience resulted in a contract manpower fluctuation between 11 and 26 which partly justifies the unit cost of contract ever incremental Ethyl cost. Similar fluctuation in contract manpower is expected in 1960. Other justification, based upon morale of Ethyl employees and advantageous recruiting factors, continues. Specifically, Ethyl employee* and applicants feel that the Ethyl Engineering department jobs offer increased security and less routine drafting demand than would be possible without the subject contract. The contract charging rate continues below standard because the original basis of fee negotiation was primarily for hiring service, while in practice it has been essentially equivalent to normal engineering cervices. The 1960 Engineering department budget allows for 26 man-years of work estimated at $290, 000. This figure i* subject to considerable variation depending upon approval to definitively engineer come major construction projects. Th* terms of last year's contract included 50% fee on straight time salaries and 10% fee on overtime salaries. The I960 contract E-08617 Mr. A. C. Burdick, Jr. I- Janmary II, I960 provides for Ike ubqi 50% fee n straight time ulariei even though there has been an increase in payroll harden (fOAB). However, there is an increase In fee from 10% to 25% on overtime salaries to compensate for these engineering services at a rate nearer that of the straight-time fee. Overtime has been controlled te a ynlnlmnan level consistent with construction schedule demands. In 1959 the overtime salary dollars were approximately $5,000 (2.2% of total contract). The Increased fee on $5. 000 would be $750. The increase In FOAB Is estimated at about $900. So the increased terms provide a standoff in meeting Increased payroll taxes and at the same time provide a fee for overtime work more proportional to standard. Concrete Testing Laboratory Services Bids have been taken for I960 concrete inspection and testing services for the Baton Rouge plant from Pittsburgh Testing Laboratory and Shil stone Testing Laboratory. The contract was renewed with Shil stone for 1959 after its original award to Shil stone for 1955 because of poor service from Pittsburgh in 1957. Both laboratories are quoting the same unit cost; however, Shil stone continued to provide good service in 1959. The amount of the contract is indeterminant hut It is estimated that it will be less than $2000. The cost for services provided by this contract is charged to the projects using the concrete. CED/GSR/mew G. S. Roberts E-08618