CHAPTER 1, SECTION 3
CONTRACT HISTORY
SECTION 3
After completing the reconnaissarce of Bikint Atoll as directed in the AEC Field Manager’s Ictter of 12 June 1952, and reporting the
tindings of this reconnaissance in the report
“Auxillary Proving Ground, Marshali 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
In the early part of January 1953, it became apparent that the execution of a definitive
appendix would require more than one month
on 17 November 1952.
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 cxecuted appendix was received in the Contractors
Home Office on 8 Mav 1953,
work was authorized by letter MC 231 dated
It was apparent, in view of developments
during the last half of the calendar vear 1952.
that Holmes & Narver’s services would be required 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 devcloping 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 tack 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 express understanding that these amounts were
not firm or definitive of the work to be accomplished, and that the appendix would be subsequently modified when definitive criteria became available.
In addition to the above-mentioned ‘{-ms.
the preliminary cost estimates for the cor i:muction of a camp on Tare and the filling of the
crater on Ruhy, transmitted on 20 November
and 15 December 1952, were to be includrd in
the appendix. It was estimated that approxim-
ately one month would he required by AEC divi-
sions for the preparation of the appendix and the
calculation of the fixed fee. In the meantime, as
additional requirements became known, Ho!mes
& Narver was to submit current cost estimates
for inclusion in the appendix if possible. In the
event the preparation of the appendix had pro-
ceeded to the point where it would be imprac-
tical to include current estimates, they were to
be included in a subsequent contract modification.
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 39,000,000, was executed.
Modification 16 extended the period of services through 30 June 1954, defined a portion of
the work required. and established a fixed-fee
scale hased on a composite rate of fee for Titles
1, Il Wf and {V work under Job 1, “Enginecring, Desiyn, Inspection and Construction.” The
work and services under each tith had been
defined. and in general terms wereas follows:
Title I.
Preliminary cogimecring Work a>
surveys, studies, lavout plans, and °
reports.
Title HT.
Design, specifications and estimates
Title UL.
Architect-Engineer supervision and
inspection, “as-built” drawings,
completion and monthly narrative
reports.
T tle IV.
Construction with procurement of
necessary materials. equipment and
supplies.
of cest.
’ The estimated cost, period of services ann
fi.ed fees for Jobs I], III, [IV and V, “Camp
Cperation and Management.” “Maintenance
& rvices,” “Support Services.” and “Roll-up
S. rvices,”” respectively, were also established.
Poge 1-11