CHAPTER 13.1 GENERAL The formal initiation of procurement operations for the Project, which were ultimately to involve the expenditure of approximately $16,000,000, was substantially coincident with the approval of the Re- connaissance Report of January 7, 1949. An analysis had been previously made of the main problems presented by the special nature of the work so that over-all planning could be made at all company levels in scheduling the work progress. Site survey teams of both Management and Engineering personnel had taken note of the engineering and construction obstacles; the problems posed for communication and transport by the remote project lecation; and the requirements of security. It was apparent that procurement operations, involving as they must the acquisition of large quantities of materials for use at a site far removed from the sources of supply, would be of major importance. To assure the necessary flexibility in procurement activities, the Contract provided: Job No. 2, Engineering,Design and Inspection - Title II 6. Procure all materials, equipment, supplies and facilities (not furnished by the Commission) required for the effective prosecution of the work under this Title; and procure any special materials, equipment, supplies and factlities which the Commission may request. Provided that any single pur- chase at a cost of $50,000.00 or more must have the prior approval of the Commission. Job No. 3, Construction Services 2. The A-E-C-M shall schedule and coordinate the construction work; negotiate and award subcontracts; direct and supervise work of subcontractors; store material and equipment for use in connection with the project; procure all materials, equipment, supplies and facilities (not furnished by the Commission) required for the work under this contract; and procure any special materials, equipment, supplies and facilities which the Commission may request. Provided that any single purchase in excess of $50,000.00 must have the prior approval of the Conmission. Job No. 4, Camp Operations, Maintenance & Management 1. The A-E-C-M shall furnish all labor, equipment, materials, tools and supplies for, and manage, operate and maintain the facilities including but not limited to housing, messing, commissary, medical services, (first aid and emergency treat- ment) and recreational facilities as are necessary to adequately meet the requirements of the Commission, the Los Alamos Laboratory, other authorized parties and the A-E-C-M at the site. 13-1