PART III--CONSTRUCTION

CHAPTER IX--Construction--CONTRACT ADMINISTRATION

A. Major Contracts

130. General. The first construction work on Palisades Dam and Powerplant began February 20, 1952 by J. A. Terteling and Sons, Inc., under contract No. I2r-19685, specifications No. DC-3586. This contract covered open-cut and tunnel excavation for the power and outlet tunnels and construction of the construction substation, and was completed March 16, 1953.

Work under contract No. I2r-19816, specifications No. DC-3675, was started June 12, 1952, by J. A. Jones Construction Co. and Charles H. Tompkins Co. (Palisades Contractors). This contract included the construction of the dam, powerplant structure, spillway, outlet works, and relocation of roads. Work under this contract was completed in November 1958.

Contract No. 14-06-D-385, specifications No. DC-3904, was awarded May 25, 1953, to Pacific Oerlikon Co. (later changed to United Power Control Corp.). This contract covered furnishing and installing four generators and spare parts. Settlement of the contract was pending as of August 1960.

The completion contract No. 14-06-D-1492, specifications No. DC-4464, was awarded to Gunther and Shirley Co. and E. V. Lane Corp., and work was started August 19, 1955. This contract covered the completion of the powerplant, switchyard and appurtenances and was completed June 17, 1958.

The above contracts are discussed in detail in the following sections.

In the subsequent sections direct and indirect reference is often made to extra work orders, orders for changes, and purchase orders, a number of which are not presented complete in this publication; therefore it is suggested that if the reader desires more detailed information on each type of order, he should consult the "Palisades Dam and Powerplant--Final Construction Report, "volumes I, II, and III (see bibliography).

131. Specifications No. DC-3586--Open-Cut and Tunnel Excavation. The work covered by specifications No. DC-3586 included the excavating of the power and outlet tunnels, located in the left abutment of the dam, and the erection of a temporary construction substation. The purposes of the two tunnels are implied by their names. The power tunnel, in its final use, will serve to convey water from the reservoir to the turbines at the powerhouse for the generation of electrical energy. The outlet tunnel will serve to convey flood and irrigation water, in excess of the needs of the powerplant, from the reservoir to the river channel below the dam. During construction of the earthfill dam, the tunnels served as a means of conveying the diverted river flow from the area of construction operations.

The substation was located approximately one-quarter mile downstream of the toe of the dam on the east bank of the river. The substation structure, which was of a temporary nature, was erected to serve as a means of distributing electrical energy to the Government and the contractors during construction at the Palisades project. Electrical energy was received at the project over a Government-owned transmission line constructed between the Utah Power and Light Company's substation at Goshen, Idaho, and the temporary construction substation at Palisades Dam. Following the installation of the generators in the Palisades Powerplant, this transmission line was used to convey electrical energy from the Palisades project to Goshen, Idaho.

(a) Summary of Bids, Award of Contract, and Execution of the Work.--On November 27, 1951, bids for the work covered by specifications No. DC-3586, open-cut and tunnel excavation, were opened in the office of the Bureau of Reclamation at Idaho Falls, Idaho. Seventeen bids were received. The three lowest bids and the engineer's estimate are listed on the following page:

Contract No. 12r-19685 was awarded to J. A. Terteling and Sons, Inc., the low bidder, for work covered by specifications No. DC-3586 on December 7, 1951. Fortyfive days were allowed for completion of the substation and 230 days were allowed for completion of the tunnels. The contractor received the notice to proceed on December 17, 1951. Therefore, the established dates for completion were January 31, 1952, for the substation and August 3, 1952, for the tunnels. Findings of fact dated April 29, 1952, extended the time for completion of the substation 71 days or until April 11, 1952. Findings of fact dated October 28, 1952, and May 8, 1953, extended the time for completion of the tunnels a total of 113 calendar days, or until November 24, 1952.

The contractor began work on the construction substation on February 20, 1952, and the substation was completed April 11, 1952. The contractor began tunneling operations with open-cut excavation on April 10, 1952, and tunneling was completed March 16, 1953, 112 days after the revised completion date. The contractor signed a release on contract, with four exceptions, on July 8, 1954.

(b) Orders for Changes and Extra Work Orders.--There were no orders for changes and only one extra work order issued under this contract. For a brief description of the extra work performed and the resulting cost adjustment see appendix B. A full description of this work may be found in the final construction report (see bibliography).

(c) Claims by Contractor Against the Government.--In executing the release on contract on July 8, 1954, the contractor excepted claims in the total amount of $244, 600, mostly for additional cost of excavation in the tunnels and for remission of the overbreak penalty in certain portions of the tunnels. It was his contention that the information provided by the contracting agency, consisting of drill cores, logs of test holes, or statements by Government representatives, did not indicate that the ground through which the tunnels were to be excavated was anything but firm andesite; and that the conditions encountered could not have been anticipated at the time of bidding.

The contractor submitted his claim to the Assistant Commissioner and Chief Engineer which was denied on the basis that there were no changes in the basic work and no changed conditions. A record of this incident, including the contractor's subsequent appeals and the final denial of his claim by the Board of Contract Appeals (decision IBCA-27, dated December 31, 1957), is included in the final construction report.

132. Specifications No. DC-3675 (Prime Contract) --Construction of Palisades Dam and Powerplant and Relocation of Roads. The principal features covered by specifications No. DC-3675 are as follows:

Schedule No. 1:

(1) Construction of an earthfill dam approximately 260 feet high and 2, 000 feet long.

(2) Construction of a spillway consisting of an unlined open-cut inlet channel, a concrete inlet structure with two 20- by 50-foot radial gates, a 28-foot inside diameter concrete-lined tunnel, a concrete-lined outlet channel, and an unlined channel section.

(3) Construction of an outlet works consisting of a concrete intake structure with a 19.67- by 28.03-foot fixed-wheel gate, excavation and concrete lining of an inclined entrance shaft and 26-foot inside diameter concrete lining for the existing outlet tunnel, steel tunnel liner, concrete and brick control house, and concrete stilling basin. The metal rolling door in the control house was to be installed under future specifications.

(4) Construction of a power system consisting of a power intake structure with a 19.67- by 28. 03-foot fixed-wheel gate, excavation and concrete lining of an inclined entrance shaft, 26-foot inside-diameter concrete lining for the existing power tunnel, 26-foot inside diameter conduit section, steel tunnel liner, steel penstock manifold, and concrete anchor block; and the construction of a reinforced concrete and brick powerplant building approximately 100 by 246 feet, including installation of embedded parts for four 39, 500-horsepower turbines.

Schedule No. 2:

(5) Relocation of Idaho State Highway No. 29 (U. S. Highway No. 26), consisting of earthwork and structures for approximately 3 miles of highway.

(6) Relocation of Forest Service road (Snake River to McCoy Creek), consisting of earthwork, structures and surfacing for approximately 18 miles of roadway.

(a) Summary of Bids, Award of Contract, and Execution of the Work.--Bids were opened at 10 a. m., April 10, 1952, at Idaho Falls, Idaho. Six bids were received on schedule No. 1 ranging from a low of $28,783,628.00 to a high of $35,756, 241.00; and eight bids were received on schedule No. 2, ranging from a low of $314,039.00 to a high of $495, 445.80. The low bid on schedule No. 1 is 14.3 percent above the engineer's estimate of $25, 191, 190.00, and the lowest bid submitted for schedule No. 2 is 4.3 percent below the engineer's estimate of $328,204.00. However, the three lowest bids submitted on schedule No. 2 were eliminated from consideration because of high total bids on schedules No.1 and 2 and stipulations which precluded consideration of schedule No. 2 alone. Hence, the lowest bid eligible for consideration under schedule No. 2 is $396, 718.00, which is 20.9 percent above the engineer's estimate. The low combined bid of $29, 180, 346.00 for schedules No. 1 and 2 is 14.3 percent above the engineer's estimate of $25,519, 394.00.

The three lowest combination bids (schedules No. 1 and 2) and the engineer's estimate are listed below:

Contract No. I2r-19816, dated April 18, 1952, was awarded to J. A. Jones Construction Co. and Charles H. Tompkins Co. (Palisades Contractors) for work covered by specifications No. DC-3675. Notice to proceed, dated May 8, 1952, was mailed to the contractor May 6, 1952, thereby establishing the following completion dates for various portions of the work:

Schedule No. 1:

Part (1) Clearing borrow area K-- November 4, 1952.

Part (2) All work for relocation of Idaho State Highway No. 29 except the roadbed and structures between stations 1178+00 and 1240+00 of the relocated highway--Before diversion of the river through the outlet tunnel, or November 9, 1953, whichever is earlier.

Part (3) The remainder of the work for relocation of Idaho State Highway No. 29-
November 9, 1953.

Part (4) All work to complete powerplant structure, including equipment installations; all work to complete penstock manifold anchor block, including equipment installation; all work to complete switchyard and cable duct between powerplant and switchyard; and all work to complete access road to powerplant -- March 8, 1956.

Part (5) All work required under these specifications to permit generation of
power from the generating units--January 2, 1957.

Part (6) The remainder of the work--September 9, 1957.

Schedule No. 2:

Part (7) Forest Service roads to the extent necessary to provide for vehicular
traffic-- May 3, 1953.

Part (8) Remainder of the work--November 9, 1953.

Findings of fact dated June 7, 1954 extended the time for part (3) by 43 days, or until December 22, 1953. Findings of fact dated September 18, 1957, provided for a continuing delay for part (6), and work under this part was still in progress as of August 22, 1958.

The contractor began work May 17, 1952, and, except for part (6), all work was completed on time.

(b) Orders for Changes and Extra Work Orders.--There were 13 orders for changes and 35 extra work orders under this contract. For a brief description of the work performed and the resulting cost adjustments, see appendix C. A complete treatment of the orders for changes and extra work orders is given in the final construction report (see bibliography).

133. Specifications No. DC-4464--Completion of Palisades Powerplant and

Switchyard.

The work covered by specifications No. DC-4464 included the installation of the mechanical and electrical equipment and bonded-concrete floors in the powerplant, construction of the switchyard, and electrical installations in the outlet works control house and intake structures.

(a) Summary of Bids, Award of Contract, and Execution of the Work.--Bids were opened at the Palisades Government camp at 3 p. m., October 18, 1955. Twelve bids were received. The three lowest bids and the engineer's estimate are listed below:

1955, was awarded to E. V.
for work covered by specifica-
1955, was mailed to the con-

Contract No. 14-06-D-1492, dated November 10, Lane Corp., and Gunther and Shirley Co., the low bidder, tions No. DC-4464. Notice to proceed dated December 14, tractor December 12, 1955, thereby establishing the following completion dates for various parts of the work:

Part (1) Turbine parts, 390 days or January 7, 1957.

Part (2) All work to permit generation of power, 570 days or July 6, 1957.

Part (3) Switchyard, 335 days or November 13, 1956.

Part (4) Remainder, 670 days or October 14, 1957.

Findings of fact dated December 12, 1956, December 28, 1956, October 2, 1957, and April 25, 1958, extended the completion line as follows:

Part (1) 117 days to August 2, 1957.

Part (2) 254 days to March 17, 1958.

Part (3) 128 days to April 1, 1957.

Part (4) 168 days to March 31, 1958.

The contractor began work January 17, 1956, and the work was substantially completed on time. The work was formally accepted by the Government June 17, 1958. (b) Orders for Changes.-- There were eight orders for changes issued under this conFor a brief description of the work performed and the resulting cost adjustments see appendix D. A complete treatment of the orders for changes is given in the final construction report (see bibliography).

134. Specifications No. DC-3904--Generators for Palisades Powerplant. The work under these specifications consisted of furnishing and installing four 30, 000-kv. -a., 95 percent power factor, 163.6-r. p. m., 11, 500-volt, 3-phase, 60-cycle, vertical-shaft, alternating-current generators, complete with protective equipment assemblies.

(a) Summary of Bids, Award of Contract, and Execution of the Work.--On April 14, 1953, bids were opened in the Bureau of Reclamation office at Denver, Colorado. The three lowest bids and the engineer's estimate are listed below:

Contract No. 14-06-D-385, dated May 25, 1958, for work covered by specifications No. DC-3904, was awarded to Pacific Oerlikon Co., the low bidder. Notice to proceed, dated June 19, 1953, was mailed to the contractor June 16, 1953, thereby establishing the following completion dates:

A cost breakdown for this contract and the orders for changes is not given in the appendix, as final settlement with the contractor has not been made as of the date of this writing (June 1960) owing to equipment operational difficulties.

(b) Orders for Changes.--There were two orders for changes under this contract. A complete treatment of the orders for changes is given in the final construction report (see bibliography).

(c) Organizational Changes.--The generator contractor began operations as the Pacific Oerlikon Co. of Tacoma, Wash. The name was later changed to United Power Control Corp. The generators were manufactured in Switzerland by the Oerlikon Engineering Co. of Zurich. The Oerlikon Engineering Co. furnished a company-trained erector to supervise the generator installation. Pacific Oerlikon Co. furnished an engineer at the beginning of the contract to look after its interests. This arrangement was later changed when an engineer from the Oerlikon Engineering Co. was substituted.