Document B1da08Gjb5GOMrOqbx4Qww7k

AFE FILE Stone 6 Webster Engineering Corporation 90 Broad Street, New York 4 NEW YORK ORTON CHICAGO HourroN PITTSBURGH LOR ANGILEC AN PRANCISCO February 11, 1949 Mr. E. LaCrosse Stone & Webster Engineering Corporation 49 Federal Street Boston 7, Massachusetts ETHYL CORPORATION J. 0. 3027A.B.C.D & H AND J. 0. 3147 Dear Mr. LaCrosse: Attached is the signed and accepted original of Mr. Schaefer's letter of February 4th as well as a copy of my transmittal letter returning to him the accepted copy of his letter for the Boston contract file. Mr. Schaefer's letter establishes the fixed fee for the subject jobs on the basis of the present scope of the work as represented by the Status Report as of January 1, 1949. Copies of this letter have been made here for the New York files as well as two for F. A. Stevens. Very truly yours. Enclosures Karl Finsterbusch wni rlLZ. ETHYL CORPORATION Baton Rouge Plant, February k, 19^9 PLCASC AOORCSS RC.PLY To -eox 34.1 BATON POUCC I. LA . Mr. Karl Finsterbusch Vice President Stone & Webster Engineering Corporation 90 Broad Street New York New York ffl fee 14 1betsst Dear Mr. Finsterbuscb: Reference is made to the engineering and construction vork vhich Stone & Webster Engineering Corporation is performing for Ethyl Corporation at Baton Rouge, Louisiana, assigned your J. 0. Nos. 8027 A, B, C, D & H and 8l47. In accordance with our Letter of Authorization, dated September 5, 19^-7, and the Term Contract, dated May 29, 19^5, we now propose to establish the fee percentage applicable thereto and determine your compensation for the work authorized. We submit for your consideration the fol lowing principles to be used in arriving at your compensation for this work. The column of the "Status Report as of January 1, 1949" entitled "Total Authorized" shall be accepted as the starting point for the fee computation. The total of this column represents the April and July, 19^8 Estimate adjusted by Construction Change Orders covering increases and decreases resulting from further definitive engineering of the work authorized. From this total there shall be subtracted the following costs or credits, which, by Agreement or under the Term Contract, will not be included in the amount on which fee Is to be based: (a) Allowances for material escalation. (b) Increases in material prices. (c) Increases in wage rates. (d) Taxes and contributions. TWYi_ CORPORATION BATON BOUSE PLANT Mr. Earl Finsterbusch Page -2February 19^-9 (e) Bebates, discounts, etc. (Since the Total Authorized column does not include any such charges to Ethyl this item vill not be reflected in the fee calculation). .From this total there shall also be subtracted the following estimated item of cost: (f) Normal contingency. To the total obtained after subtracting the amounts covered by (a) to (f) inclusive, above, there shall be added the following estimated item of cost: (g) Normal contingency actually used in the fee base items of the work completed to date and a contingency allowance on the fee base items for the vork remaining to be done, said contingency determined to be $750,000 total. The "Cost of the Work" resulting after these deductions and addition shall be designated hereinafter as the "Fee Base Estimate". The Fee Base Estimate shall be used for the fee computation. In accordance with the Term Contract, the work covered by our authorize tion shall he Class "A" and Inasmuch as the Fee Base Estimate is in excess of $15,000,000, your compensation shall, be based on a fee of five and three-fourths (5~3A$) percent. Tour condensation subject to change resulting only from (l), (2) and (3) below shall be the Fee Base Estimate times five and three-fourths (5-3A$) percent less an amount equal to 'that which Stone & Webster Engineering Corporation would have been required to spend for rental of office space had the Baton Bouge engineering work been carried out at your home office, determined as $27,500. The fee as determined above shall be adjusted for the following reasons only: (l) In the event of a material change in scope of the work as represented by the January 1, 19^9 Status Beport, the Fee Base Estimate shall be increased or decreased in accordance with a mutually acceptable estimate of the cost of work of such changes in scope and the fee determined herein shall be adjusted either up or down in accordance with the Term Contract and the principles herein established. ETT-fYL. CORPORATION / ' BATON ROUSE PLANT Mr. Karl Finsterbusch Page -3February 4, 19^9 (2) Any mutually acceptable changes in the piping costs of J. 0. No. 8027 C, D & H as a result of the Definitive Estimate from take-off now being prepared shall be added to or subtracted from the Fee Base Estimate and the fee determined hereunder shall be adjusted up or down in accordance with the Term Contract and the principles herein established, except that such changes shall not include costs of the type identified as items (a) to (f) inclusive. above (3) Any mutually acceptable changes in the costs of J. 0. No. 8027 A & B not originally in cluded in . the January 1, 19^9 Status Beport under "Total Authorized" shall be added to or subtracted from the Fee Base Estimate and the fee determined hereunder shall be adjusted up or down in accordance with the Term Contract and the principles herein established, except that such changes shall not include costs of the type identified as items (a) to (f) inclusive., above. Based upon the foregoing your fee has been determined in the attached Fee Calculation. If the foregoing principles for determining the fee due Stone & Webster Engineering Corporation for work authorized under J. 0. No. 8027 A, B, C, D & H and No. 8lVf and the attached Fee Calculation dated January 28, 19^9 are acceptable to you, will you please so indicate by signing this letter in duplicate in the space herein provided and return one copy to us. ACCEPTED Date: Title 2S vCrOT CVJ -op EH IA CVJ -W- JI--I CO o o oo . voon 5 -te- RCOv IA IA vIAo v & CVJ Ov IA IA on O IA CO i-l on ia pIfA- -ee- O VO O CO O CVJ r-I CVJ -*&- CO CO on IA on H CVJ* ctoN IA fH Ov O VO VO HIS - o ;> -o3- to-- o ia IA s s o VO t-- ia on vo cvj 'V Ov on o-- CV%J CVJ K CVJ r-1 iH CVJ -w- Ov w co 08 CVJ Q O <3 <' CVJ s -69- OS CCOOv on cvj rH IA CVJ -- 8cvj 8o CVJ r-l JCJON C- on r-l CO H CiaO oOn CoOn J2t OS r-l on H 1 CVJ -w- 88 v v r-l CO VOJ- on H IA VO IA GO on IA O tH IA s Pl-VO IA CVJ 00 r-l O IA on H -69- 8 rH a cvj s ts rH J O a H 3 H 4* S4 CD o a c t1 to H I sI * aa o o o aa a a o h JH a o83 a a -8 a ^949 UfS WB m14 8 a o +a> 0 t 1 W a at w/ \4 W CA*' UK Alntpi A-=3F,LS 0&k# zi3i)ff' Wtauny 11, 1949 % A 4 %- of T*bru**y 4th A1A dotomriiioa the feo far the preeeat Mope of the eoxfc oa oar J. 0. So*. 40274, B, C, 5 ft I *pd C(47 Attached 1* o oopj of this lottor `riileb boo by u* rory truly. dims ootIZB BosB XT HD 712(2) ZUC