a ee rr rr ae ar er er er er
GOENFIDENTIAL
PART JI, CHAPTER 13
CHAPTER 13
FUNDING AND ACCOUNTING
18.1
structure, and that specific structure
The major financial problems encountered
will be charged with the cost of all
such items,
during Operation HARDTACK were:
a.
The receipt of Plant Acquisition and
Construction funds was in conflict
with the operational period. The bulk
of major additiona] 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
permanent plant instead f to scientific construction.
Current-use stores inventory levels
were too low preceding the start of
Operation HARDTACK. The Contractor’s cost ceiling limitations on
inventcry 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.
Discrepancyin the Contractor’s cost
of installed equipment was noted
13.2
For Operation HARDTACK,considerable
progress was made in expediting the publi-
cation and circulation of timely test construction
Cost and Estimate Reports. For previous operations, this report had been compiled by the Los
Angeles Office of the Contractor. By moving the
responsibility for compiling and issuing this report to Jobsite through thecritical construction
stage, information was available to participants .
as much as three weeks earlier than during pre-
vious operations, Also, as shown in Figs. 3-11A-C.
a new report, entitled Cost and Estimate Report
—Expendable Test Construction and Test Site
Operations, was instituted. The principa! purpose of this report was to associate cost with the
scientific participant responsible for the cost. To
this end the report has proved successful, parti-
cularly in disclosing to the Users the varving
costs of providing temporary camps and auxiliary
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
early in the Operation, but it was too
in connection with AEC participation in Opera-
Operation. Equipment procured for
a particular structure or facility was
charged to that structure or facility,
sented herewith as Fig. 3-10, Summaryby Cosz
late to effect a correction during the
despite the fact that subsequent plan-
ning 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 differ-
tion HARDTACK, Phase I. This report is pre-
Budget Category, and is supported by Figs.
3-11A-C, Expendable Test Construction and
Test Site Operations.
13.4
Fig. 3-10 reflects the ALO 3000 Prograrr.
full-scale activity and related reimbursable work costs by organization and bythe fo!-
lowing major cost categories:
ent facility at no charge to that pro-
ject (considered as Government Furnished Equipment). Obviously, this
created gross overstatement of costs
in the first instance and equally gross
understatement of costs in the latter
instance.
3831 Expendable Test Construction
3832 Test Site Operations
13.5
breakdowns of cost as follows:
Fig. 3-11A — Expendable Test Construction detailed by major items
This problem was subse-
quently corrected by establishing an
or types and bv Users
inventory of equipment, normally
considered as installed, which will be
Figs. 3-11B & C — Test Site Opera-
charged with the cost of all the
equipment on hand (not physically
installed) and subsequently procured.
Costs supporting Fig. 3-10 reflect further
tions detailed by subfunctions and
by Users
The inventory will be credited with
13.6
drawn for installation in a specific
cost factors to population factors. The data used
the value of the equipment with-
Also included are two charts which pre-
sent graphically the relation of certain
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