Document b5JnNOONG2Oe5XDNxK0r1EQay

C-E Power Systems Combustion Engineering, Inc. 1000 Prospect Hill Road Windsor, Connecticut 06095 Tel. 203/688-1911 Telex1 9-9297 December 23, 1975 P.P.G. Industries P.0. Box 1000 Lake Charles, Louisiana 70601 Attention: Mr. W. M. Stagg Project Engineer Re: P.P.G. Industries Purchase Order #520014 "A" Boilers H2 Conversion OES #12222/53474 Units 2 0 3 Oil Conversion OES #12000/53374 Progress Report #9 lentlemen: The following is the current status of this project: 1. Contract 1. Contractually we are complete. 3. Engineering 1. Engineering, both external and internal, to the boiler is 100% complete. 2. "As Built" drawings remain to be issued. This will be complete a short time after the conversion of Unit #2 is completed. 3. Revised Bailey internal wiring drawings were issued to P.P.G. on 12/17/75. 4. Seven (7) bound and two (2) unbound copieof C-E's Maintenance and Operating Instruction Manuals were issued on 12/17/75 to P.P.G. C. Procurement 1. Procurement is 100% complete. 2. Additional cctic-s of Ccutcontract P/ . '.0 Lonn/o-r i.l'/J.r/c and Sabine Insulation were forwarded to P.P.G. on 12/16/75. I BB 00 12 194 J Construction 1. As of 12/5/75 we were approximately 85% complete with Unit #3 (refer to attached updated Construction Schedule). 2. Hydro of piping system on Unit #3 began 12/22/75. 3. The electrical portion of the project is approximately 90% complete on Unit #3. The electric heat tracing on the unit front remains to be completed. The material required for this as ordered by Sonnier Electric should arrive on site by the week of 12/29/75. 4. The insulation portion of the project is approximately 50% complete * The electric heat tracing on the unit frent is holding up the insulation contractor. This will not affect unit start-up. Schedule 1. Engineering is complete with the excepticn of the "As Built" drawings. 2. Procurement is 100% complete, 3. Completion of the electrical and insulation portion will carry on beyond the current start-up date on gas for Unit #3 of 12/31/75. This will not affect unit operation. 4. C-E Service Engineers have manned the site as of 12/22/75. They have established a schedule for. the various vendors required to be on site for check out of their equipment. 5. Our updated construction completion schedule for Unit #3 is attached. 6. Attached also are three (3) copies of an updated Project Progress Schedule for Units 2 and 3. 7. All materials required for Units 2 and 3 are at the jobsite. 8. C-E will continue to monitor the replacement safety relief valves being furnished by Copes-Vulcan. These two (2) valves are scheduled to ship May, 1976. Temporary valves are currently installed in the desuperheating system. Financial 1. The total current material contract value is $1,191,616. , 2. The total amount which will be subject to escalation is $804,608.00. Of this amount $730,000.00 will be escalated from 11/74 to 10/75. The balance will be escalated based on shipments which began in March, 1975 and completed in November, 1975. Financial (Continued) 3. The current estimate for direct hire labor and subcontract is as follows: Estimated Dollars Expended As of 11/28/75 Direct Hire Labor $532,5SO.00 $180,839.53 Subcontract $144,115.00 Electrical $28,381.55 Insulation Totals $676,665.00 $209,221.08 It is currently anticipated that the direct hire portion will be slightly underrun from a dollar standpoint by about 1-5%. However, the sub contract portion will be overrun by approximately 20%. 4. Invoices issued to date which remain outstanding are: Date Invoice # Amount 9/2/75 5J-629 $176,106.00 11/3/75 5L-629 55,612.00 11/11/75 5L-657 79,460.00 (Material Contract Extras) 11/21/75 5L-1324 74,728.07 (Labor) 5. Terms of payment are Net 30 days. Service 1. The writer previously indicated, in a telephone conversation with J. Antil, that a lead service engineer and a trainee would man the site and P.P.G. would not be charged for the trainee. However, due to schedule requirements, we have instead manned the site with two (2) fully qualified service engineers. P.P.G. will be invoiced for C-E service at our standard rates for both men. 2. Vendor service will be invoiced at cost plus 15%. The 15% represents C-E's overhead fee. -4 j. Service (Continued) 3. As of 12/22/75 the Service Engineers have begun pre-start-tip check out. Very truly yours, COMBUSTION ENGINEERING, INC. C. R. Lewandowski Project Manager C-E Power Systems Services CRL:c cc: Mr. J. A. Antil - P.P.G. - w/att. Mr. D. C. Rhodes - P.P.G. - w/att. Mr. D. H. Sherrod - C-E Mr. G. Dobinson - C-E - w/att. Mr. H. Smith - C-E - w/att. | BB 0012197 (