CHAPTER |, SECTION 3 CONTRACT HISTORY SECTION 3 After completing the reconnaissance of Bi- kini Atoll as directed in the AEC Field Mana- ger’s letter of 12 June 1952, and reporting the findings of this reconnaissance in the report “Auxiliary Proving Ground, Marshall Islands,” Holmes & Narver, Inc., was authorized to proceed with the design and construction of certain facilities at Bikini Atoll. This authorization was received from the Field Manager in letter MC 162 dated on 24 September 1952. Additional work was authorized by letter MC 231 dated on 17 November 1952. It was apparent, in view of developments during the last half of the calendar year 1952, that Holmes & Narver’s services would be re- quired by the AEC beyond 30 June 1953 (the expiration date of Contract AT-(29-2)-20), and that the appropriated funds obligated under this contract were insufficient for the work contemplated. Therefore, on 29 and 30 December 1952, meetings were held in Los Angeles between representatives of the Atomic Energy Commission and Holmes & Narver, Inc.,for purposes of developing an appendix to the Contract which would extend the period of services, define the work to be accomplished, and negotiate a fixed fee. Due to the lack of firm criteria for much of the program, however, it was determined that token amounts for scientific structures, submarine cables, and miscellaneous construction would be included in the appendix with the ex- In the early part of January 1953, it be- came apparent that the execution of a definitive appendix would require more than one month due to administrative reviews and processing. Therefore, on 15 January 1953, Modification 14, providing for an extension of the period of services under existing contracts beyond 30 June 1953 and an increase of obligated funds in the amount of $9.000.000, was executed. A draft of the proposed Appendix “A” was received by Holmes & Narver, Inc. on 18 March 1953; it was acceptable to Holmes & Narver, as the Contractor, and the AEC was so advised. On 30 April 1953, effective 27 February 1953, Appendix “C” to Contract AT-(29-2)-20 was executed by the Contractor and returned to the AEC for execution, and a copy of the fully exe- cuted appendix was received in the Contractor’s Home Office on 8 May 1953. Modification 16 extended the period of ser- vices through 30 June 1954, defined a portion of the work required, and established a fixed-fee scale based on a composite rate of fee for Titles I, Il, II] and IV work under Job I, “Engineering, Design, Inspection and Construction.” The work and services under each title had been defined, and in general terms were as follows: Title I. press understanding that these amounts were not firm or definitive of the work to be accom- plished, and that the appendix would be subsequently modified when definitive criteria became available. In addition to the above-mentioned items, the preliminary cost estimates for the construc- tion of a camp on Tare and the filling of the crater on Ruby, transmitted on 20 November and 15 December 1952, were to be included in the appendix. It was estimated that approximately one month would be required by AEC divi- sions for the preparation of the appendix and the calculation of the fixed fee. In the meantime, as ceeded to the point where it would be impractical to include current estimates, they were to be included in a subsequent contract modification. engineering work as surveys, studies, layout plans, and reports. Title IT. Design, specifications and estimates of cost. Title TIIl. Architect-Engineer supervigion and inspection, “as-built” drawings, completion and monthly narrative reports. Title IV. additional requirements became known, Holmes & Narver was to submit current cost estimates for inclusion in the appendix if possible. In the event the preparation of the appendix had pro- Preliminary Construction with procurement of necessary materials, equipment and supplies. The estimated cost, period of services and fixed fees for Jobs II, III, IV and V, “Camp Operation Services,” and Management,” “Support Services,” “Maintenance and “Roll-up Services.” respectively, were also established. Page 1-11