ML20138H420
| ML20138H420 | |
| Person / Time | |
|---|---|
| Site: | South Texas  |
| Issue date: | 07/15/1985 |
| From: | Jordan D HOUSTON LIGHTING & POWER CO. |
| To: | HOUSTON LIGHTING & POWER CO. |
| References | |
| OL-I-CCANP-077, OL-I-CCANP-77, NUDOCS 8510290034 | |
| Download: ML20138H420 (3) | |
Text
50- M r/Y W st E-ecAy 77 4
Houston Lighting & PoNI do~mpany EMh 804c6 y:
'65 OCT10 49 4 OFFICE MEMOR ANDUM To South Texas Project File September 15, 1981 v.ac<
00CEIN;'iNM_"
rrom D. D.' Jordan oRANCh Subject Meeting with Project Partners and with Mr. Tom Feehan, President of Brown,& Root t
The CE0's of the partners on the South Texas Project met today at 9 a.m.
to discuss whether or not some change should be made in the engineering construction ~ management or construction of the South Texas Project.
A detailed presentation was made to the group by Jerry Goldberg in which he outlined proposals from Westinghouse, Ebasco, Stone & Webster and Bechtel.
The conclusion was that the Westinghouse bid was not responsive and that it offered no prospect for improvement to the project.
Bids from Ebasco, Stone & Webster and Bechtel were responsive, and all three made a distinct effort to support the project with organization and experienced people.
We determined that the Stone & Webster and Bechtel bids offered the most organizational strength and there was little difference in the commercial terms.
It was, therefore, suggested that Houston Lighting & Power Ccmpany
>se e cen ract with Bechtel to take over the engineering and construction management of the project and that Brown & Root continue to serve as the constructor.
After detailed discussion, the owners unanimously agreed with the succestion.
I meet with Mr. Feehan in the Brown & Root offices at 3 p.m. today to inform him of the decision made by Houston Lighting & Power Company and the owners of the project to r.emove Brown & Root T. om the engineering and construction Ys management on South Texas.
Mr. Feehan had been informed on three prior o
'S occasions that consideration was being given to replacing Brown & Root r uo on portions or all of the work at South Texas and was, therefore, familiar
- o8 with the possibility that Brcwn & Root would be removed.
The initial reaction oo
'y seemed to be one of surprise in that he really did not believe it would happen.
He indicated that others had also had problems with the construction ca mao of nuclear power plants and that he thought Brown & Root cold do as well as anyone else.
We reviewed the history of the project, discussed the problems which have continued in engineering throughout the project's life, Cc(HOP and the fact that Brown & Root either could not or would not respond to
{#77 our recuast to " employ the strongest people available in the world" which was made over two years ago.
I informed him that we had no confidence that Brown & Root could complete the engineering in a reasonable time
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OFFICE MEMOR ANDUM To From Meeting with Project Partners and with Mr.
Tom Feehan, President subject of Brown & Root - page 2 frame and [ hat we in effect had decided to change engineering and constructio'n managers in order that we could get the engineering people we believe the project needs.
Mr. Feehan said that he agreed they had problems in the engineering group and that if foresight was as good as hindsight, we probably should have made the change in 1974.
We informed him that it would be necessary for us to make an oral statement to the licensing board through our attorney, Jack Newman, informing them that consideration was being given to reassignment of certain responsibilities on the project.
I gave -
him a preliminary statement and told him that we were sensitive to the Brown & Root public image question, we needed and wanted their cooperation in the transition, and we would accept any sound changes he wished to make in the announcements as long as they were true..
We discussed the contract, and he was informed that Houston Lighting & Power Company had the right, under the contract, to take the action proposed.
He was also left with a preliminary list of activities which Brown & Root was asked to participate in.
These included a request to meet during the week of September 22 with our people and hopefully the new architect / engineer to discuss transition plans, to assign the necessary people in his organization to effect the transition; and to meet with us, the new architect / engineer and the Nuclear Regulatory Co=ission to discuss this change.
He indicated he would talk to his people about the change and would be prep,ared to discuss it with us later.
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