Document k6dwr3GnxwyJ82xNzVBELb7qD
KAISER ENGINEERS
INTER-OFFICE MEMORANDUM
L. H. Oppenheim
Oakland
DATE FROM
December 15, 1966 H. J. Wolf
J. E. Hughes/
COPIES TO
AT
JOB NO.
6471-00
SUBJECT
Project "600" Work Assigned to McGraw Construction Company
To date McGraw has been given the following work at Middletown on a cost plus a fee basis:
Project Bo.
Description
Amount
7116
Blag Processing Facility
$1,680,482
7112
McGraw Shop
168,677
7109
Hydrogen and Hitrogen Lines
180,000
7105
Water 12 Inch Cross Connection Stiver Pump Station Water Treatment Plant 36 InCh Biver Water Line
66,183 954,056
1,386,900
78.000
Bub-total
4,514,298
In addition McGraw was recently awarded a subcontract for the foundation work for the picklers on a fixed unit price basis
Total
$6,336,254
Through October the total recorded and committed at Middletown was $170,715000. Total amount appropriated $286,575,000. Therefore, McGraw has been assigned 3*7^ of the work recorded and ccnmitted and 2.2$ of the work for which budgets have been appropriated.
McGraw's fee on cost plus a fee work for Project "600" is 4$$ of
their estimated direct cost and overhead. The fee base does not
include contingency or the cost of engineered equipment. The fee
is fixed on the origins] approved estimate of cost and does
change unless there is a change order to the contract. In
event
is applied to the value of the change order.
KEN 008911
L* H. Oppenhsim
2 decernber 15 1966
HcGrmr's overhead varies with each Job and McGrav is paid actual coat.
In preparing their estimate for fee base they use the following guide lines in calculating overhead!
Job Supervision Union Welfare Small tools and temp*
orary construction
Field engineering Payroll taxes & insurance
% of labor and field materials 2% of labor
Hft of labor and field materials 2 of labor and field materials 9 of labor
When HcGrav does work for Axmco in the old East Works their fee is T% of estimated direct cost plus overhead*
BJWifo
KEN 008912
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