ML20024B496

Summarizes Results of 771026 Meeting W/Util Re Master Svc Contract Negotiations

ML20024B496
Person / Time
Site:	Crane
Issue date:	10/27/1977
From:	Taynton L BABCOCK & WILCOX CO.
To:	BABCOCK & WILCOX CO.
References
TASK-*, TASK-GB GPU-0279, GPU-279, NUDOCS 8307090031
Download: ML20024B496 (3)

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< THE BABCOCK & Wil.C01 COMPANY W ; *-

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• tSC Negotiations October 27. 1977 l

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1 On October 26, 1977 Steve $aith Law Taynton, John Mullin met with Jeff Fritzen I '

and John Mazella of Met. Ed. The following sumanarizes the results of this i

l meeting. The starting point for negotiations was 8&W proposal A4-83 dated e

May 17.1977.

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/1.1 Agreed that proposal activity at 84W i,-

expense unless agreed to otherwise.

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- -. reed to include both Unit one'and two. _..

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,,,1. 2 Agreed to review Met Ed words defining

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independent contractor.

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Minor changes to 1.2.1 and 1.2.2 l

/.0 Met Ed. to'specify titles of authorized

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representatives.

/3.0 Prior authorization for overtime requirtd.

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/4.0 Invoices to itemize labor material. T&I.

l and upon request, all taxes paid by 3

company for purchases.

./8.0 saw to consider title to pass at site for tax purposes.

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/ Met Ed will honor. 'necessary' termination fi costs.

l Met Ed to prov'de default language".

l 10.1 1-) Add'other quality requirements'to

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warranty.

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2) Add credit option #at purchaser's concurrance I

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3) Change start date to delivery to site

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4) Change period to sixty days s) change replacement ros to 'jobstte' Charles Shapir0 CRgg&pf Doyle Reporting Inc.

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10.2 - 10.5 Met Ed to send draft of detailed coments.

I' Because of time considerations, these articles 7

6 were by passed.

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R&W to consider extension of limitation.

May.azclude indemnification provision of i.

erticle 12.1 12.1

[1) Change "or would be compensated" to S

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"or would be. covered"

2) We n'eed interpretation of B&W exposure L,-

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3) Nuclear clauses should campare with

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negotiated position on spare parts

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- Nuclear clause should agre's hth spare '

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parts contract..

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/8'8W to provide prompt written notification E'. '

of delays. Last three Ifnes deleted to return.

t.1 R&W standard position.

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'. 9 15.0 QA may require a compliance under 10CFR21 p

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/ Requirement to report company init' fated.

--- ~ changes expanded by.' deletion of word

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.,, / Met Ed to propose words requiring 8&W to i

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l document reconnendations within the limits of proprietary information clause.

23.0 Met Ed to propose words to expand ECE l

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28.0 Integration to include reference for F

te sheets and personnel policy.

I 19.0/22.0 Refer to Unit 1 only and should be expanded to Unit 2.

. Selected hardooints/88W Position

1. ' Work will not be performed on cost plus basis. Will not hold rates for

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e existing tasks.

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B&W will not certify that overtime premium reflects increased cost. We use this as an incentive to limit work hours.

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82 task letters will specify when computer time is expected to be used and K:;.

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.when subcontracts are anticipated.

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8 W will not warrant a delivery date.

5. Met Ed states that 8 W rates are high and warranty non-competitive. Will l

use contract only for sole source work.

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Agreed not to add emergency ordering provisions but acknowledged availability of this method.

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Warranty applicability for materials is weak.

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The existing spare parts contract for Unit 2 is an int'erfum agreement only.

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%e new H5C will supercede.

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I do not feel that the standard expanded scope MSC stands up well during

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detailed negotiations such as was conducted with Met Ed.

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Action Items I

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-1) Provide draft copy of contract by October 31..

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2) Obtain QA and spare parts intern:1 review.

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..1), Provide computer and j

- - - - f perser.nel policy o.. construction company rate sheets and copies -...

o n expenses.

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2) Provide draft of acceptable letter of intent for Task 501.

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Terify that Task 501 set.edule is not delayed Joint

1) Complete contract negotiations by Novenber 14. 1977.

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L. A. Giordano G. A. Orlicki J. T. Janis L

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