see a be md eee ce ee WSnanthel ade deltasbeidal aihon'sWicis 1bae caeSots PART Ill, CHAPTER 13 CHAPTER 13 FUNDING AND ACCOUNTING 13.1 structure, and that specific structure The major financial problems encountered during peration HARDTACKwere: a. Thereceipt of Plant Acquisition and Construction funds was in conflict with the operational period. The bulk of major additional and replacement permanent construction had to be accomplished concurrently with the scientific test facilities. This contributed to excessive peaking manpower requirements and the diversion of much needed construction stores to permanentplant instead of to scientific construction. ! Current-use stores invéntory levels were too low preceding the start of Operation HARDTACK. The Contractor’s cost ceiling limitations on inventory levels made it impossible to stockpile sufficient long lead-time and scarce materials. This contributed to “crash” procurement, expensive airlift, and the disruption of construction planning schedules pending receipt of key materials. Discrepancy in the Contractor's cost of installed equipment was noted early in the Operation, but it was too late to effect a correction during the Operation. Equipment procured for a particular structure or facility was charged to that structure or facility, despite the fact that subsequent planning may have deleted the requirementfor the installation of the equipment. The equipment that had been charged but not installed was then available for installation in a different facility at no charge to that pro- will be charged with the cost of all such items. 13.2 tions, this report had created gross overstatement of costs in the first instance and equally gross understatement of costs in the latter instance. This problem was subse- —Expendable Test Construction and Test Site Operations, was instituted. The principal purpose of this report was to associate cost with the scientific participant responsible for the cost. To this end the report has proved successful, particularly in disclosing to the Users the varying costs of providing temporary campsandauxiliary facilities, including operation and maintenance. 13.3. Based on data furnished the Manager, ALO, by the participating organizations, a report has been compiled covering the ALO cost for test construction and test site operations in connection with AEC participation in Operation HARDTACK, Phase I. This report is presented herewith as Fig. 3-10, Summary by Cost Budget Category, and is supported by Figs. 3-11A-C, Expendable Test Construction and Test Site Operations. 13.4 drawn for installation in a specific Fig. 3-10 reflects the ALO 3000 Program full-scale activity and related reimbursable work costs by organization and by the fol- lowing major cost categories: 3831 Expendable Test Construction 3832 Test Site Operations 13.5 Costs supporting Fig. 3-10 reflect further breakdowns of cost as follows: Fig. 3-11A — Expendable Test Con- struction detailed by major items quently corrected by establishing an inventory of equipment, normally considered as installed, which will be charged with the cost of all the equipment on hand (not physicall installed) and subsequently procured. The inventory will be credited with the value of the equipment with- been compiled by the Los Angeles Office of the Contractor. By moving the responsibility for compiling and issuing this report to Jobsite through the critical construction stage, information was available to participants as much as three weeks earlier than during previous operations. Also, as shown in Figs. 3-11A-C, a new report, entitled Cost and Estimate Report ject (considered as Government Fur- nished Equipment). Obviously, this For Operation HARDTACK,considerable progress was made in expediting the publication and circulation of timely test construction Cost and Estimate Reports. For previous opera- or types and by Users Figs. 3-11B & C — Test Site Operations detailed by subfunctions and by Users 13.6 Also included are two charts which present graphically the relation of certain cost factors to population factors. The data used Page 67