DESIGN QUALITY

CONTROL PLAN

Spencer Engineers, Inc. (SEI) has prepared construction contract

drawings and specifications for more than 1800 construction
projects during the past 34 years. SEI engineers believe that the
contract documents that we prepare are only an instrument
required for the first step toward construction of a facility, which is
normally our final objective. The Engineers with SEI are
construction oriented and are very experienced at performing
construction contract administration. This assures the
constructability of the construction contract documents that we
create. SEI has an in-house design quality control plan that assures
that our project contract documents are as error free as possible.
The SEI project manager is the key person for all of our project
quality design and construction projects. All decisions,
information, and communications are processed through the
project manager.
1. RESULTS OF SEI QUALITY CONTROL PROGRAM:
SEI has produced excellent results with our in-house Quality Control Program.
The ACASS summary (Department of Defense AE contract performance
summary maintained by the Corps of Engineers) printout on 30SEP96 for SEI
indicates 21 completed projects with one excellent performance rating, one above
average rating, and the remaining 19 projects with an average performance
rating. ACASS summary printout 08MAY00 reveals 11 projects with one above
average rating and 10 projects with an average rating. A copy of this summary
sheet is included behind the form 254’s. The complete ACASS report indicates
that all but two of these DoD projects were completed without contract
modifications due to design deficiency. These two project modification amounts
totaled less than $10,000.00. The construction value amounted to more than
$60,000,000.00. This report indicates that all of the projects had the low bid
within the funds available, that the AE services were performed within the time
frame allocated, and that all projects were awarded construction contracts. A
copy of this report is included behind the form 254’s. SEI has commendation
letters (1986 & 1987) from U S Army personnel commending SEI for our AE
project management performance. These commendations are in reference to the
total project including programming, design, management, cost control, timely
service, quality of work and construction contract administration. SEI must be
performing to the satisfaction of these clients, or SEI would not have been
awarded such a continuous stream of projects.

2. PROJECT MANAGEMENT:
All coordination between our project manager and your organization will be
documented to as much detail as written word and sketches permit. All meetings
and telephone conversations are followed with written confirmation of all items
discussed and decisions made at that meeting. All verbal instructions from our
clients are confirmed in writing. This documentation is in the form of
confirmation notices numbered in sequence so that continuity of numbered
notices assures each recipient that they have all of the coordination
documentation on the project. We do not miss any of our clients directions due to
misinformation. We want Government user input into the design.
3. REVIEW MEETINGS:
We have periodic formal coordination review meetings during design with all
disciplines involved. These meetings allow each design discipline to be informed
of the actions of other disciplines, and allow information flow concerning actions
of one discipline affecting other disciplines. All project designs are coordinated
by the Architect (or other lead discipline) for purposes of overall coordination and
integrating the various disciplines into the project. Our clients are always
welcome to and encouraged to attend these meetings. Client input at these
meetings is an important part of the design process working to satisfy the needs of
the client. The principal of the firm who is the project manager conducts this
meeting. All principals attend design review meetings. The principals of the firm
approve or disapprove the design concept at each stage of the design process that
retains control in detail by the principals of the firm.

4. PROCESS FOR COMPLIANCE WITH PROJECT SCHEDULE:

SEI has always emphasized completing our work within the time frames allotted,
within budget and with no field change orders. These are the three things that all
of our clients require, in addition to a facility that meets their facility
requirements. We always meet our schedules, even if the schedules require effort
above and beyond normal expectations. Gerald Spencer, P.E., President,
Chairman, and 100% stockholder is responsible for all operations, and is solely
responsible for the scheduling of efforts as required for meeting schedules.

5. PROCESS FOR COST CONTROL:

All of the SEI designers in each discipline are also the construction cost
estimators that prepare the "Final Government Cost Estimates" that are used at the
project bid openings in accordance with the FARS & DFARS. SEI believes that
all of the designers should also be the cost estimators. This keeps SEI designers
cost conscious in lieu of ivory tower type designers whose designs are too
expensive to construct. SEI also believes that the designers should perform the
Construction Contract Administration for the projects that they design in order to
assure the constructability of their designs to the point that construction problems
are minimized. Construction cost control is emphasized by all of our licensed
professionals and by all of the SEI designers.
5.1. COST ESTIMATING:
SEI updates cost estimates during the design phase and advises the client
when it appears the cost estimate will exceed allowable construction funds.
SEI has ten years experience with the U S Army MCACES computer aided
cost estimating system and has completed interim partial design progress
construction cost estimates and the Final Government Cost Estimates for
more than 40 Army & NASA construction projects during the past 4 years.
Any construction cost estimating consultants will report directly to Mr.
Spencer. Mr. Spencer is in charge of our construction cost estimating and is
responsible for assuring that our designs can be constructed within the
available construction funds.

5.2. PROGRAM, CONCEPT, PARAMETRIC AND EARLY

PRELIMINARY CONSTRUCTION COST ESTIMATING:
SEI designers have many years’ experience and can prepare cost estimates
for funding purposes without a design or documentation.

5.3. CONSTRUCTION COSTS DURING DESIGN:

All SEI designers are normally the construction cost estimators for their
portion of a project. We use M-CACES for interim construction cost
estimating at various stages of design. We advise clients of projected
construction costs and recommend changes when they exceed project
funding.

5.4. COST ANALYSIS:

SEI has reviewed many construction cost estimates for construction contract
modification proposals.

5.5. VALUE ENGINEERING:

SEI relies on U. S. Cost, Inc. for value engineering requirements. They
provided value engineering services for the Mine Warfare Center project at
Ingleside, TX.
5.6. COST CONTROL:
All SEI designers are cost estimators. We perform construction contract
administration for our projects to assure the constructability of our designs
and to minimize construction problems.

6. CADD:
Our CAD systems have greatly enhanced the appearance of our drawings. This
has allowed us to utilize standard proven details recalled from our central files or
from other projects with great ease. This allows greater plan coordination
between disciplines insofar as locations of features and equipment is concerned.
This allows us to perfect our standard designs.

7. SPECIFICATIONS:
We have used the SPECSINTACT program for the last six years. We subscribe
to the CCB and get the up-dated CD-ROMs have all the DoD specifications from
the various branches that participate in the SPECSINTACT program. We have
the latest versions of Microsoft® Word and Wordperfect® to use as word
processing software. We have prepared specifications for more than 500
federally funded projects during the past 33 years.

8. EXPERIENCE:
SEI completed more than 30 projects for the U.S. Army Corps of Engineers; more
than 70 projects for NASA Johnson Space Center; more than 80 projects for the
Dallas Postal Service; more than 20 projects for Exxon USA; more than 10
projects for The Methodist Hospital, MD Anderson Cancer Center and Baylor
College of Medicine in Houston, during the past 10 years. These projects were all
completed successfully with respect to cost control, quality of work and
compliance with project design schedules. Our record of being selected as the AE
of record for many different projects over the past 30 years for these repeat clients
plus many other different clients should indicate that our approach to quality
control is the correct approach that satisfies the needs of our clients. For the last
few years we have been the AE or record for the Department of State, National
Imagery & Mapping Authority (DoD), and The City of Houston Aviation
Department.
9. REDICHECK:
We use "REDICHECK INTERDISCIPLINARY COORDINATION" for in-
house quality control that is supplemented with our in-house created checklists.

10. CONSTRUCTABILITY:
Keeping our designers assisting construction contract administrators keeps our
designers thinking about the construction, so that their designs do not have
constructability problems. This is not possible on extremely large projects with
extended design and construction time frames, but designers are used as
substitutes when the “construction monitor” is absent due to vacation, illness, etc.
All projects do not need full time CA services, and SEI offers a cafeteria plan
where the USAF can involve SEI as much or as little as desired. We can perform
constructability analysis and review similar to the Corps of Engineers analysis for
our privately funded projects.

11. CONSTRUCTION ORIENTATION:

All of the SEI architects, engineers, and designers are construction oriented. SEI
architects and engineers have participated in many team design/construction
projects where the building foundation and sitework was designed as a separate
package, bid and constructed while the remainder of the building design drawings
were completed. Normally the remainder of the design drawings, except for user
fit-up, could be completed, bid, and contracted for during the time required for
sitework and foundation construction. SEI has also performed as the General
Construction Contractor on special occasions when our clients request this
service, and when they are willing to pay a premium for expedited team concept
design & construction on a cost plus basis. SEI was the AE and the general
contractor for the Exxon Paleo Lab Relocation project in 1985. Our definition of
Contract Management is controlling the acquisition and construction of projects.
The amount of Construction Management desired depends upon the speed in
which the project is needed, project location if unusual labor and/or material
supplies considerations need attention, and the scope of the project in terms of
size and dollars. SEI personnel have performed as General Contractor and/or
Construction Manager when time constraints prevent normal economical
acquisition of the construction through competitive bidding. We can provide
varying degrees of additional assistance when acquisition of construction is
needed quicker than by employing the most economical processes of bidding.
12. QUALITY ASSURANCE:
Final design drawings and specifications for each discipline are checked and
stamped (certified) by an officer of the firm registered in that particular design
discipline prior to issue for bidding or construction. Final design documents are
also cross checked by officers registered in other disciplines insofar as
coordination between disciplines is required (also spelling, graphics, and etc.).
We also have formal checklists for each discipline that are required for final
approval.