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* � e <br /> MEMORANDUM <br />• November 30, 1994 <br /> TO DISTRIBUTION <br /> FROM RON ZURLINDEN, ARCO PROGRAM TECHNICAL COORDINATOR <br /> SUBJECT TRACKING ARCO PROJECTS PROFITABILITY <br /> In order to evaluate the profitability of individual ARCO projects, identify problem projects and <br /> determine the overall profitability of the new ARCO contract, a new tracking system is proposed <br /> for Northern California This tracking will be completed by updating the "Profit Tracking Form" <br /> (see attached example) each month <br /> The profit tracking form (PTF) will use actual revenue that is calculated from project specific <br /> invoices that are sent to ARCO Each ARCO project will be revised when a new invoice is <br /> prepared The Project Control Form 23 (PC-23) wiII be referred to for actual expenses (direct <br /> labor cost and ODC costs) at the time of the invoice As shown on the PTF, the project <br /> profitability and effective labor multiplier for each project will be calculated from the actual revenue <br /> and expenses The project profitability and ELM will be referenced to a particular point in time <br />. and should be a good indicator of project performance <br /> The PTF will be broken into categories/phases Phases 1, 2a, 2b, 3, 4, 5a and 5b These phases <br /> are detailed below <br /> Phase 1 UST Pulls <br /> Phase 2 Preliminary Site Assessment (Drilling) <br /> Phase 2a Fixed Pace Contract Scope (lump sum) <br /> Phase 2b Times and Materials Scope <br /> Phase 3 Design <br /> Phase 4 Construction Management <br /> Phase 5 Advanced Stage Quarterly Monitoring/O&M <br /> Phase .5a Quarterly Reporting <br /> Phase Sb O&MIQuarterly Reporting <br /> By evaluating each phase for profitability and ELM, we can more easily identify areas of <br /> improvements on how we do the specific phases <br /> The overall program profitability and ELM will be calculated by summing the categories To <br /> access the overall profitability of the ARCO program, the analysis will include costs incurred <br /> during the transition period <br /> As mentioned above, this tracking system is proposed for Northern California If you have any <br /> comments for improving this form, please call me <br />