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Management of the military facilities procurement program. Final report (1971)

Chapter: Design Construction Subsystem

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Suggested Citation:"Design Construction Subsystem." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
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Page 128
Suggested Citation:"Design Construction Subsystem." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
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Page 129
Suggested Citation:"Design Construction Subsystem." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
×
Page 130
Suggested Citation:"Design Construction Subsystem." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
×
Page 131
Suggested Citation:"Design Construction Subsystem." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
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Page 132

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(102) A B i l l a u t h o r i z i n g the m i l i t a r y c o n s t r u c t i o n program i s i n t r o d u c e d i n the Senate and r e f e r r e d t o t h e Committee on Armed Services (103) Subcommittee on M i l i t a r y Cons t ruc t ion ho lds hear ings and c lea rs an a u t h o r i z a t i o n B i l l I n connect ion w i t h these h e a r i n g s , SEC DBF, ASD's, S/A, ASA'S w i l l r e q u i r e p r e p a r a t i o n o f more j u s t i f i c a t i o n i n - f o r m a t i o n a t OSD, OSA, DCSLOG, and OCE (104) Senate considers and passes an a u t h o r i z a t i o n B i l l (105) D i f f e r e n c e s between House and Senate B i l l s r e c o n c i l e d by conference committee Compromise B i l l passed by bo th Houses and presented t o Pres ident (106) A B i l l a p p r o p r i a t i n g funds f o r the m i l i t a r y c o n s t r u c t i o n program I S i n t r o d u c e d m the House and r e f e r r e d t o the Committee on y ^ p r o - p n a t i o n s (107) Pres ident s igns a u t h o r i z a t i o n B i l l (108) Subcommittee on M i l i t a r y Cons t ruc t ion holds hear ings and c l ea r s an a u t h o r i z a t i o n B i l l I n connect ion w i t h these h e a r i n g s , SEC DEF, ASO's, S/A, ASA'S w i l l r e q u i r e p r e p a r a t i o n o f more j u s t i f i c a t i o n i n - f o r m a t i o n a t OSD, OSA, DCSLOG, and OCE (109) House considers and passes an ^ p r o p r i a t i o n B i l l and messages i t t o the Senate (110) A B i l l a p p r o p r i a t i n g funds f o r the m i l i t a r y c o n s t r u c t i o n program i s i n t r o d u c e d m the Senate and r e f e r r e d t o the Committee on ^ p r o p n a - t i o n s (111) Subcommittee on M i l i t a r y Cons t ruc t ion holds hear ings and c lea r s an a i i t h o n z a t i o n B i l l I n connect ion w i t h these h e a r i n g s , SEC OEF, ASD's, S/A, ASA'S w i l l r e q u i r e p r e p a r a t i o n o f more j u s t i f i c a t i o n i n - f o r m a t i o n a t OSD, OSA, DCSLOG, and OCE (112) Senate considers and passes an ^ p r o p n a t i o n B i l l (113) D i f f e r e n c e s between House and Senate B i l l s r e c o n c i l e d by conference committee Compromise B i l l passed by bo th Houses and presented t o Pres ident (114) Pres ident s igns a p p r o p r i a t i o n B i l l The sums o f money se t f o r t h f o r each l i n e i t e m i n the B i l l are i n t ended t o cover engineer design costs (E§D), s u p e r v i s i o n and i n s p e c t i o n o f c o n s t r u c t i o n costs (S§A) , as w e l l as the con t rac t c o n s t r u c t i o n cost o f each l i n e i t e m (115) Bureau o f Budget appor t ions funds t o DOD (116) Ass i s t an t Secretary o f Defense, C o m p t r o l l e r , appor t ions funds t o D/A (117) A s s i s t a n t Secretary o f the Armr, F i n a n c i a l Management, appor t ions funds t o major commands O v e r a l l , the major weaknesses i n t h i s system are (1) B u d ^ t e s t i m a t i n g procedures are based on p n o r year costs p lus a r - b i t r a r y e s c a l a t i o n f a c t o r s (2) P r o j e c t d e s c r i p t i o n s on DD1391's, which govern subsequent des ign , r e - f l e c t e x i s t i n g design c r i t e r i a and do n o t a n t i c i p a t e de s ign , b u i l d - i n g m a t e r i a l , o r c o n s t r u c t i o n techniques l i k e l y t o be a v a i l a b l e m t h e des ign-cons t ruc t phase (3) P repara t ion o f f i s c a l - y e a r c o n s t r u c t i o n programs a t i n s t a l l a t i o n and command l e v e l s i s done m an "ask f o r e v e r y t h i n g " atmosphere, and the process f o r e s t a b l i s h i n g program p r i o r i t i e s i s no t r igo rous c Design and Cons t ruc t ion Subsystem The design and c o n s t r u c t i o n subsystem conpnses two major i n g r e d i e n t s a design process and a c o n s t r u c t i o n process 60

Design Process The design process comprises i tems 118 through 142 i n Figure 14 A l t h o u ^ t h i s process i s i l l u s t r a t e d as b e i n g siibsequent t o t h e l a s t s t ep m the f u n d i n g subsystem, s tep 118 i n the desigp process can occur s h o r t l y a f t e r steps 90 , 95 , and 98 o f the f u n d i n g subsystem, the goal i s t o have the l a s t s t ep o f t h e design process completed p r i o r t o s tep 117 o f t h e f u n d i n g subsystem The i tems m t h e design process are (118) C h i e f o f Engineers issues d i r e c t i v e o r Corps o f Engineers Opera t ing Program (CEOP) au thor izes D i v i s i o n s and D i s t r i c t s t o proceed w i t h design o f f a c i l i t i e s l i s t e d m the d i r e c t i v e o r CEOP based on f u n c - t i o n a l , t e d i n i c a l , and budgetary da ta i n c l u d e d m t h e DD1391's f o r the f a c i l i t i e s (119) Engineer ing D i v i s i o n decides which p r o j e c t s w i l l be designed i n - house and which p r o j e c t s w i l l be designed by a r c h i t e c t - e n g i n e e r f i r m s Around 20% o f t o t a l design e f f o r t per formed in-house Sequence o f events f o l l o w i n g i s f o r a r c h i t e c t - e n g i n e e r des ign process (120) A§E N e ^ t i a t i o n s Sec t ion c u l l s q u a l i f i e d a r c h i t e c t - e n g i n e e r f i r m s f r o m f i l e o f brochures and conple ted a r c h i t e c t - e n g i n e e r q u e s t i o n - a i r e s E f f o r t i s made t o s e l e c t i n v i c i n i t y o f p r o j e c t I f A§E fee i s t o be less than $25,000, no i ^ p r o v a l o f A§E c o n t r a c t r e q u i r e d beyond l e v e l o f C h i e f , Engineer ing D i v i s i o n , SPK I f f ee i s t o be between $25,000 and $100,000, SPK D i s t r i c t Engineer has f i n a l ^ p r o v - a l a u t h o r i t y I f fee i s t o be between $100,000 and $500,000, SPD D i v i s i o n Engineer has f i n a l iq>proval a u t h o r i t y I f f e e i s t o be over $500,000, C h i e f , Engineer ing D i v i s i o n , DMC, OCE, has f i n a l ap- p r o v a l a u t h o r i t y T y p i c a l l y , the A§E fee i s on t h e o r d e r 5% o f es- t i m a t e d c o n s t r u c t i o n costs and f o r an average p r o j e c t a t SPK, w h i d i I S on the o rde r o f $500,000 o f c o n s t r u c t i o n , the ASE fee i s u s u a l l y w i t h i n the range t h a t can be ^ p r o v e d by the C h i e f , Eng ineer ing D i v - i s i o n I n s t a l l a t i o n i s asked i f i t has A^E p re fe rence and i s n o t i - f i e d o f A§E se l ec t ed There i s some hes i t ancy about d i o o s i n g an A§E w i t h o u t p n o r experience des ign ing MCA because o f h i s l ack o f f a m i l - i a r i t y w i t h OCE des ign and s p e c i f i c a t i o n procedures ( p a r t i c u l a r l y the open s p e c i f i c a t i o n ) New f i r m s are a l l e g e d t o have a h i £ ^ r a t e o f design changes t o make (on the o r d e r o f 50%), whereas o l d e r f i r m s are apt to^haye a r a t e o f 20 t o 25% (121) P r o j e c t Engineer ing Sec t ion convenes predes igf i conference o f ASE and f a c i l i t y Engineer Conference may be h e l d a t SPK o r a t i n s t a l l - a t i o n P r o j e c t Engineer ing Sec t ion reviews con tac t p o i n t f o r p r o j e c t i n SPK u n t i l a f t e r c o n s t r u c t i o n i s completed (122) A r c h i t e c t - E n g i n e e r prepares concept p l a n s , s p e c i f i c a t i o n s , and bud- get cos t est imates (Design i s a t t he 10% stage) and stibmits t o SPK (123) P r o j e c t Engineer ing Sec t ion d i s t r i b u t e s A§E submission t o i n s t a l l - a t i o n ,command, and Engineer D i v i s i o n I f p r o j e c t has es t imated con- s t r u c t i o n cost s u d i as t o r e q u i r e OCE appTowal o f A§E s e l e c t i o n , A§E sid>mission sent t o OCE f b r review (124) Technica l Operations Branch reviews A § E ' s u b m i s s i o n i n c l u d i n g budget est imates (125) I n s t a l l a t i o n s Brandi reviews A§E submission and sends comments t o Engineer D i v i s i o n Comments are a l l e g e d t o be a f t e r "des igner- d i o i c e " comments r a t h e r than f u n c t i o n a l review comments (126) Engineer ing Branch reviews A§E submission and sends comments t o En- g ineer D i v i s i o n A g a i n , comments are a l l e g e d t o be a f t e r "des igner- d i o i c e " type comments F u r t h e r , comments are a l l e g e d t o seek t o change the scope o f the p r o j e c t tO' something o t h e r than t h a t s t i p - u l a t e d i n DDI391 61

(127) Technica l Operations Branch reviews i n s t a l l a t i o n and command com- ments, disapproves "des igner -cho ice" comments and nego t i a t e s f u n c - t i o n a l comments Transmits conso l ida ted comments t o Engineer D i s - t r i c t (128) Technica l Review S e c t i o n , w i t h he lp f r o m t h e E s t i m a t i n g and Mech- E lec t Design Sections o f t h e Design Branch, reviews A^E submission (129) P r o j e c t Eng ineenng Sec t ion reviews a l l comments w i t h A|E (130) A r c h i t e c t - E n g i n e e r c a r r i e s design t o complet ion i f e s t ima ted con- s t r u c t i o n cost I S under $300,000 I f over t h a t , design e a r n e d i n steps t o 25% and 50%, and a t each stage the re would be a r e p e t i t i o n o f I tems 123 through 129 except t h a t i t e m 124 would be a p e r f u n c - t o r y review i n deference t o the review i n i t e m 128 (131) Technica l Review S e c t i o n , w i t h he lp f r o m t h e E s t i m a t i n g , S p e c i f i c a - t i o n s , and Mech-Elect Design Sections o f the Design Branch, reviews AQE submission (132) P r o j e c t Eng ineenng Sec t ion reviews a l l comments w i t h A^E (133) A r c h i t e c t - E n g i n e e r m o d i f i e s work and submits f m ^ l p l a n s , s p e c i f i - c a t i o n s , and c o n s t r u c t i o n cost es t imate (134) Technica l Review Sec t ion v e r i f i e s f i n a l submission and sends t o Siqp- p l y D i v i s i o n f b r r e p r o d u c t i o n , d i s t n b u t i o n t o i n s t a l l a t i o n and com- mand, and advert isement f o r c o n t r a c t o r b i d s (135) Si;pply D i v i s i o n reproduces plans and s p e c i f i c a t i o n s and d i s t n b u t e s (136) Technica l Operations Branch reviews about 5% o f f i n a l designs—pre- dominant ly those accoii ; ) l ished in-house by Engineer D i s t r i c t (137) M i l i t a r y Sec t ion reviews f i n a l design and s p e c i f i c a t i o n s f o r "con- s t r u c t i b i l i t y " (138) I n s t a l l a t i o n s Branch reviews f i n a l design and sends comments t o En- g ineer D i v i s i o n (139) Eng ineenng Brandi reviews f i n a l design and sends comments t o E n g i - neer D i v i s i o n (140) Techn ica l Operations Branch assenbles i n s t a l l a t i o n and command com- ments, nego t i a t e s d i f f e r e n c e s w i t h command, sends conso l ida t ed com- ments t o Engineer D i s t r i c t Receipt o f these comments by M i l i t a r y Branch as w e l l as comments f r o m M i l i t a r y Sec t ion f r e q u e n t l y occurs a f t e r Si:;>ply D i v i s i o n has a d v e r t i s e d f o r c o n s t r u c t i o n b i d s (141) P r o j e c t Eng ineenng Sec t ion reviews comments and determines i f and how changes w i l l be made Most f r e q u e n t l y changes are e f f e c t e d m - house, not by A§E, a l though the A§E may be asked t o "s top by " (142) M i l i t a r y Design Sec t ion makes necessary changes i n f i n a l plans and s p e c i f i c a t i o n s Some telephone contac t i s made w i t h A§E By and l a r g e , the p a r t i c i p a n t s m the system--Engineer D i v i s i o n , Engineer D i s t n c t , Axmy Command, and Arniy I n s t a l l a t i o n - - a r e s a t i s f i e d w i t h the design process and i t s r e s u l t s There a r e , however, s eve ra l p o i n t s o f disagreement between the Corps s t r u c t u r e and the Army s t r u c t u r e For example, t he Corps s t r u c t u r e f e e l s t h a t the eng inee r ing design fee ( c u r r e n t l y 7 3% a t SPK, which covers design a d m i n i s t r a t i o n , in-house performance o r A^E f e e , con- s t r u c t i o n b i d adver t isement , c o n s t r u c t i o n eng inee r ing , and design o f p r o j e c t s which do no t go fo rward t o c o n s t r u c t i o n ) i s t oo low, the Army s t r u c t u r e f e e l s I t I S too h i ^ I n a d d i t i o n , the Army s t r u c t u r e f e e l s i t pays unnecessary costs when the ac tua l design i s performed by an A§E Why, asks the A m y s t r u c t u r e , can i t no t nego t i a t e d i r e c t l y w i t h the A^E and thus save the SPK overhead ' The Corps s t r u c t u r e f e e l s , f i r s t , t h a t i t i s i m p r a c t i c a l f o r the 62

Corps t o p e r f o r m a l l o r even the g rea tes t share o f the des ign because o f the " f e a s t o r famine" na tu re o f t h e wozlcload and, second, t h a t the Army s t r u c t u r e does no t t r u l y have the in-house c a p a b i l i t y t o d e l i n e a t e and review the t e c h n i c a l aspects o f the A§E's work From a managerial p o i n t o f v i ew, the design process hieis s e v e r a l weaknesses The uneveness o f the work load ( h i ^ percentage o f O^M p r o j e c t s come i n t o the design process d u r i n g May and June and are scheduled f o r co]q>let ion b e f o r e 30 June) reduces the amount o f t ime a v a i l a b l e f o r review o f MCA designs The use o f dual c o n t r o l s on the personnel loadings ( t he r e are bo th personnel c e i l i n g s as w e l l as f i s c a l requirements) i n h i b i t s p roper s t a f f i n g ( I n c i d e n t a l l y , i t should be no ted t h a t the average age o f engineers a t SPD i s i n the 50 's and t h a t these engineers have an average s e r v i c e t ime w i t h the Corp o f between 15 and 30 years Many o f these personnel w i l l r e t i r e m the next few yea r s , and replacements are d i f f i c u l t t o get ) The i n a b i l i t y o f the Engineer D i v i s i o n s and D i s t r i c t s t o determine i n advance the work load t o be e3q>ected i n any f i s c a l year reduces apprec iab ly the management p l a n n i n g t h a t can be performed by these o rgan iza t ions From a t e c h n i c a l p o i n t o f v i ew, the design process a l so has s eve ra l weaknesses The source o f i n f o r m a t i o n f o r de s ign , most p a r t i c u l a r l y "as- b u i l t " drawings used f o r u t i l i t y i n f o r m a t i o n as w e l l as i n s t a l l a t i o n - f u r n i s h e d s i t e plans showing l o c a t i o n o f proposed f a c i l i t y , cannot be t r u s t e d w i t h o u t f i e l d v e r i f i c a t i o n U n c e r t a i n t i e s w i t h respect t o founda t i on cond i t ions and design crea te "anxious moments" i n the subsequent c o n s t r u c t i o n phase The i n a b i l i t y o f the Government t o s p e c i f y p a r t i c u l a r mechanical equipment creates t o o many "space i n t e r f e r e n c e " problems m the siibsequent c o n s t r u c t i o n phase Although o n l y a smal l percentage o f the nimiber o f designs t h a t go t o c o n s t r u c t i o n e n t a i l change o r d e r s , t h e b igges t source o f change orders i s design d e f i c i e n c y , most p a r t i c u l a r l y discrepancies between plans and s p e c i f i c a t i o n s Cons t ruc t ion Process The c o n s t r u c t i o n process comprises i tems 143 through 170 i n Figure 14 These i tems are (143) Ch ie f o f Engineers issues d i r e c t i v e a u t h o r i z i n g D i v i s i o n s and D i s t r i c t s t o award c o n s t r u c t i o n con t r ac t s on p r o j e c t s l i s t e d m the d i r e c t i v e (144) Supply D i v i s i o n adver t i zes f o r c o n s t r u c t i o n c o n t r a c t b i d s (145) Con t rac to r submits limip-simi c o n s t r u c t i o n b i d (146) Supply D i v i s i o n i s tasked t o q u a l i f y b idde r s I n a c t u a l p r a c t i c e , any b i d submi t ted i s accepted, the re i s a s t r o n g ques t ion o f how t o r u l e ou t poor o r suspected poor c o n t r a c t o r s (147) Cons t ruc t ion D i v i s i o n convenes b i d opening sess ion and opens a l l b id s tendered I f low b i d i s over a p p r o p r i a t e d amount o f f u n d s , con t r ac t i s not awarded I n o r d e r t o advance the p r o j e c t , the design process may be repeated us ing a reduced design scope, o r e l se a request t o exceed the a p p r o p r i a t i o n must be generated, processed t h r o u ^ OCE channels t o OOD, and approved by OOD To m i t i g a t e t h i s , p r o j e c t s are o f t e n designed showing a l t e r n a t i v e "add-on" o r "deducts " I f low b i d i s over 85% o f app rop r i a t ed funds , con t r ac t i s awarded w i t h t r e p i d a t i o n because o f i n s u f f i - c i e n t contingency allowance C148) D i s t r i c t Engineer s igns c o n s t r u c t i o n c o n t r a c t C o n s t r u c t i o n D i v i s i o n can award con t rac t s o f less than $10,000 w i t h o u t 63

approval Over $10,000, approval o f Awards Comii|ittee (Eng inee r ing D i v i s i o n C h i e f , Cons t ruc t ion Operations D i v i s i o n C h i e f , and Supply D i v i s i o n C h i e f ) i s r e q u i r e d (149) Resident Engineer ho lds p r e c o n s t r u c t i o n meeting w i t h c o n t r a c t o r t o e x p l a i n Government r e g u l a t i o n s , s p e c i f i c a t i o n reqtarements , and t o develop mutual unders tanding o f the j ob CPM i s g e n e r a l l y r e q i u r e d on $10,000 p r o j e c t s o r over and those regarded as hav ing s p e c i a l problems, computerized CPM i s used (150) Con t r ac to r i n i t i a t e s work and sometimes submits shop drawings (151) Resident Engineer approves miscel laneous shop drawings , forwards s t r u c t u r a l and m e c h a n i c a l - e l e c t r i c a l shop drawings t o D i s t r i c t (152) Cons t ruc t ion Branch approves m e c h a n i c a l - e l e c t n c a l shop drawings (153) M i l i t a r y Design Sec t ion approves s t r u c t u r a l and o t h e r ma jo r shop drawings A ^ se rv ices no t used, a l though t h e r e may be te lephone contac t A l l t o l d , about 25% o f c o n t r a c t o r ' s submissions r e q u i r e complete resi ibmission Even w i t h Con t r ac to r Q u a l i t y C o n t r o l , prime con t r ac to r s do not review submissions o f subcont rac tors (154) Cons t ruc t i on Branch sends c o n t r a c t o r s u b m i t t a l s t o Resident Engineer (155) Resident Engineer sends s i i b m i t t a l s t o c o n t r a c t o r (156) Resident Engineer performs o n s i t e i n s p e c t i o n s , continuous on l a r g e r p r o j e c t s , weekly on s m a l l e r p r o j e c t s , g e n e r a l l y a f u n c t i o n o f work load (157) Cons t ruc t ion-Opera t ions Branch performs p e r i o d i c i n s p e c t i o n s , seeks t o v i s i t each job at l e a s t once (158) Cons t ruc t i on D i v i s i o n o c c a s i o n a l l y v i s i t s jobs (159) Con t rac to r i n d i c a t e s need f o r work m o d i f i c a t i o n s Need f o r m o d i f i c a t i o n sometimes a r i ses as a r e s u l t o f design reviews which a r r i v e d subsequent t o c o n t r a c t award, o r as a r e s u l t o f i n spec t ions (160) Resident Engineer can approve m o d i f i c a t i o n s i n v o l v i n g vp t o $10,000 (There i s a s t r o n g f e e l i n g t h a t t h i s l i m i t shou ld be $25,000) For l a r g e r sums. Resident Engineer forwards Con t rac to r q u o t a t i o n and d e s c r i p t i o n o f work t o be performed (161) Contrac t M o d i f i c a t i o n Sect ion sends Resident Engineer s u b m i t t a l s t o p r o j e c t Engineer Sec t ion A u t h o r i z a t i o n f o r emergency m o d i f i c a t i o n s can be g iven almost immediately (162) P r o j e c t Engineer ing Sec t ion d i s t r i b u t e s s u b m i t t a l s as necessary t o M i l i t a r y Design Sec t ion ( i f a r c h i t e c t u r a l o r s t r u c t u r a l work i s i n v o l v e d ) , t o Mech-Elect Design Sec t ion o f Design Branch ( i f medi- e l e c t work i s i n v o l v e d ) and t o E s t i m a t i n g Sec t ion and S p e c i f i c a t i o n Sec t ion o f Design Branch The es t imates made on m o d i f i c a t i o n work are "not too good" according t o Cons t ruc t ion-Opera t ions D i v i s i o n , be- cause there i s l i t t l e a c t u a l l o o k i n g a t t he work i n v o l v e d , t ime es t imates are t oo o p t i m i s t i c , and t h e r e i s t o o heavy r e l i a n c e on s tandard e s t i m a t i n g giudes which are on ly a p p l i c a b l e t o new, f r e s h work (163) Mech-Elect Design, E s t i m a t i n g , and S p e c i f i c a t i o n s Sect ions p rov ide t e c h n i c a l m a t e r i a l j (164) M i l i t a r y Design Sec t ion provides t e c h n i c a l m a t e r i a l (165) P r o j e c t Engineer ing Sec t ion coordinates t e c h n i c a l m a t e r i a l (166) Contract M o d i f i c a t i o n s Sec t ion d r a f t s m o d i f i c a t i o n o rde r D r a f t must be approved by C h i e f , Cons t ruc t ion-Opera t ions D i v i s i o n , C o m p t r o l l e r , General counsel , and C h i e f , Supply D i v i s i o n b e f o r e issuance Consider- able n e g o t i a t i o n w i t h c o n t r a c t o r may be r e q u i r e d (167) D i s t r i c t Engineer s igns m o d i f i c a t i o n o rde r I f amovmt i n v o l v e d w i l l cause exceeding o f appropr i a t ed funds , m o d i f i c a t i o n must f i r s t be processed through OCE channels f o r DOD approval b e f o r e s i g n i n g (168) Con t rac to r executes m o d i f i c a t i o n and completes woiic A p u n c h - l i s t 64 I

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