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 Page 67 7°