Fred Price

Responsible to the Program Director and Executive Vice President for the Project Controls activities on the $2+ Billion Iowa Fertilizer Project, and Project Controls systems development for all Orascom E&C North American projects. Am also the PCM for Weitz, an Orascom subsidiary, on the direct hire civil scope of work.

I am a member of the Orascom E&C USA management team to provide experience and leadership to develop and grow towards a successful, safe and quality driven organization. Also involved with training and mentoring a staff of US and international junior engineers in project management and project controls processes and procedures in not only the “what”, but the “why”.

Developed project management reporting systems from scratch for the (1) $2+ Billion program level as owner, for the (2) $500 MM direct hire civil contractor Weitz (an Orascom subsidiary) and for a (3) $200 MM direct hire mechanical contractor using Access and Excel. Required the development of Work Breakdown Structures, code of accounts, etc. to gather and report actual and earned hours, costs, commitments, contract change order logs, purchase order commitment reports, etc.

Responsible to Exterran’s Alliance Director on Williams’ Mid-Stream Marcellus Shale Gas Program providing project controls, cost engineering, planning / scheduling, document control and financial services. Program consisted of 40+ projects with total CAPEX of $500MM including gas compression, dehydration, gas processing facilities, and NGL fractionation in Pennsylvania, New York, West Virginia and Ohio. Assisted in the contract negotiations with prospective engineering and construction contractors, provided oversight and analysis of their performance and developed project controls reporting systems to support the weekly and monthly cost, schedule and safety reporting requirements to Williams.

Responsible for the staffing, administration, performance and process improvement of ARB’s Project Controls department and support to Primoris on systems development and due diligence of possible acquisitions. I was tasked with selecting a new standard and/or developing the existing PENTA base as an enterprise cost system solution to improve efficiencies compatible with corporate goals and objectives. Another key responsibility was the development, training and mentoring of project staff to provide consistent and quality project controls products, feedback and information.

ARB / Primoris installs large and small diameter pipelines for the transmission of natural gas, crude oil, petrochemical and refined petroleum product. Typical methods of installation include open trench, cut and bore, insertion, and horizontal directional drilling while working in all types of environments, including highly congested urban, suburban, residential, and rural cross-country. ARB / Primoris also provides turn-key construction services for the storage and movement of oil and gas products as well as pumping and compressor stations, ancillary equipment, and piping.

Reported to the Vice President / General Manager of Technip’s Claremont Technology Center (day to day) and was a direct report to the Chief Operating Officer of Technip, USA’s Onshore Division. Main responsibilities included the staffing, administration, performance and process improvement of Claremont’s Project Controls department and support to Technip, USA’s Regional office in Houston, TX. Responsible for departmental budget, P&L, staff utilization, project staffing, development of training / mentoring programs, safety and other corporate training requirements compliance.

I was tasked with selecting an enterprise cost system solution to improve efficiencies compatible with new corporate Oracle software. After selection, I was a Project Champion of the EcoSys Cost System’s implementation program. Originally, EcoSys was to be a Regional system but was later adopted as the Technip worldwide standard.

I was also an integral member of the Primavera implementation and improvement team in the transition from v3 to v6.2 ensuring compatibility with legacy earned value systems and the new cost system.
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I significantly reduced staffing levels, partially due to market conditions but mainly due to improved efficiencies, which improved the productivity, competence and morale of the staff. The staff, originally over 6% of the total office personnel was reduced to slightly over 3%.

Implemented training and mentoring programs for staff, project managers and engineering disciplines including budgeting, forecasting, change management, cash flows, earned value, resource loading and allocation and schedule analysis, etc. I reduced the mysticism by giving real world examples and also the rationale for WHY we do things, not just HOW, or WHERE to put the answer. I empowered the staff to make their own decisions based on well thought out research and analysis and improved the communications with departments, projects and clients by developing efficient and effective reports and graphs. I helped change the culture from “putting numbers in boxes” at the project manager’s direction to actually analyzing the information available and providing meaningful insight and input to project and management.

Systems selection and integration, training, mentoring and administration

I was tasked with selecting an enterprise cost system solution to improve efficiencies compatible with new corporate Oracle software and then became a Project Champion of the EcoSys Cost System’s selection and implementation program. Originally EcoSys was to be a Regional system but was later adopted as the Technip worldwide standard.

I was also an integral member of the Primavera implementation and improvement team in the transition from v3 to v6.2 ensuring compatibility with legacy earned value systems and the new cost system.
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I reduced department staffing levels by over 50%, partially due to market conditions but mainly due to efficiencies resulting from improved productivity, competence and morale of the staff. The Project Controls staff was originally over 6% of the total office staff but was reduced to slightly over 3%.

Implemented training and mentoring programs for staff and disciplines including budgeting, forecasting, change orders, cash flows, earned value, resource loading and allocation and schedule analysis, etc. I helped change the culture from “putting numbers in boxes” at the project manager’s direction to actually analyzing the information available and providing meaningful insight to project and management.

Managing Partner of Behler Publications, LLC, a start-up book publishing company. Developed the legal structure, business model, internal reporting, website design, accounting, and general business management including the necessary contractual and working relationships with suppliers of editing, design, printing, sales and marketing, warehousing and fulfillment services. Revamped the production / sales channel to reduce marginal costs by 50% and greatly increased the volume of “private sales” to improve margins and cash flow.

Consulted to British Petroleum on one of their oil & gas field development projects in Venezuela. Developed an Access database / reporting system to satisfy the BP’s internal requirements and those of their client, Venezuela’s PdVSA. Provided project control and financial reporting support for CAPEX forecasting, scheduling, cash flow requirements, etc.

Database, Processes / Procedures, Management Consulting to Start-up company

Designed, developed and implemented an Access database reporting system for Behler Publications, LLC’s management of over 60 book projects fed from electronic downloads from various sources. Each book had a different author, advance, royalty, subsidiary rights and revenue split which the program had to address.

Significantly reduced costs by consolidating the production, warehousing, marketing and fulfillment of books to the Mid-West which saved roughly $3 per book, or 50% of marginal costs. Greatly increased the “private sales” volume which improved margins and cash flow.

Database Development to capture and report CAPEX costs

I developed an Access database system to satisfy the requirements of BP’s client, Venezuela’s PdVSA. PdVSA required all project costs and invoices to be broken down by one of 100 cost accounts and reported against 8 AFE’s, 4 phases and 200 pieces of equipment, all of which were subject to change. We downloaded the client’s accounting data directly to the database and produced a myriad of cost reports (either hard copy or PDF in English and Spanish) tailored for specific audiences and users. We also used these reports to reconcile the owner’s “actual” costs versus those shown by the various contractors.

I turned what many considered an impossible task into a rather simple process which not only addressed the initial challenge, but performed many other valuable functions, thereby freeing up the existing staff to perform other important tasks. Cost savings are difficult to calculate (because these reports were previously unavailable), but the actual time required to update the database, produce the reports, analyze the data and communicate the findings was probably less than a week per month.

Feasibility Planning and Economic Analysis (Texaco - Timan-Pechora)

I recognized that an interactive economic model could be developed from our initial estimates, schedules and cash flows, and developed a model that provided production profiles (revenue) based upon the quantity and types of production wells drilled. This in turn dictated the capital cost requirements (schedule) for development of facilities and infrastructure to support the production levels and also forecast annual operating costs.

The economics of any development scenario could be reviewed simply by altering the underlying assumptions on one sheet of paper (or screen). Local content (labor and material), exchange rates, wage rates, drilling and workover unit costs, shipping unit rates, work week hours, management costs, contingency were some of the inputs that could be varied to ascertain risk levels. Changing the calendar year input field for first oil from each field could also alter the order, and timing of a particular field‘s development.

The model was so well received; we ran 25-, 50- and 90-year models for the total area of interest that included a total of 11 fields. We were able to alter scenarios from large field first, to small fields first, etc. The results were sometimes totally counter-intuitive to our expected results. Scenarios never contemplated became plausible. The model fed directly to the owner's economic model where taxes, royalties, depletion, recapture, etc. were added to return estimated cash flows and IRR for each scenario.

From the owner's (client's) perspective, they were able to run hundreds of different development scenarios. In certain cases, the host country would request changes to the plan. We could plug these into the model, run the scenario and have a reasonable basis for negotiation or acquiescence to the request.

From Parsons’ perspective, the four-month initial assignment was extended on for two years and Parsons’ capabilities and performance on this demanding project led to additional assignments from other owners and created a virtual open door to discuss development projects in all parts of the world including Alaska, Siberia, Asia and Africa.


Earned Value Assessment, Engineering Reports and Operations (ARCO - Watson & Cherry Point)

I developed a database to catalog information on 5, 000 relief valves and any of their 13 conditions / classifications with appropriate comments. I also recognized that each of the valves required the same basic design (process, mechanical and piping) steps. Fields were added to the database for these steps with a requirement for “X” if the step was complete, “N” if the step was not required and blank if the step was not complete. The results of the database approach with specific report writing specs included:

•The 13 conditions / classifications reports were produced from one source requiring one input. All reports could be produced in real time and all were consistent. This part of the system was compiled into an executable (.exe) file and given to refinery operations for ongoing maintenance.

•“Punch lists” were given to the supervising engineers showing which activities remained to be completed. The engineers then “X’d” out each step for each valve as the work was accomplished. This enabled progress assessment (earned value) to be done on a weekly basis for 60, 000 activities with the enthusiastic participation of the lead engineers.

•The progress assessment from the database input generated an input file used for uploading to the Primavera schedule. Primavera then generated a schedule and earned value information that was downloaded back to the database where progress reports and earned value analysis were presented.

With the implementation of the system, the secretaries, a scheduler and cost engineers moved on to more productive activities on other projects and I maintained the system. From a strict body count, this would represent a 6-1 return. A simple body count does not however, identify a value to the improved productivity of the engineers, the consistency of the product, the progress assessment and analysis of 60, 000 activities a week or the final use of the product by continuing operations. The actual time required to update the database, produce the reports, analyze the data and communicate the findings was probably less than a week per month.

Reduced costs to ARCO by decreasing the reporting staff from 6 to 1, increased revenue and gross profit to Parsons by increasing the assignment period and decreased ARCO’s operational costs by developing the maintenance and reporting system for the refinery operation’s staff.

Financial Exposure Analysis on Lump Sum Bids

I developed various models to forecast monthly actual costs based on the engineering, fabrication and construction schedules, estimated project costs, procurement plans, known terms of the major purchase orders and typical terms for others. I then generated a revenue curve based on the terms of the bid documents, scheduled progress, and project milestones, allowing Parsons the ability to review the procurement plan, schedule assumptions and even the division of work (and risk) between prospective joint venture partners. The reviews turned into an iterative process to determine the best mix or whether a “no-bid” response was appropriate.

Responsible for the overall planning, design coordination, financial management, investment packaging, permitting, construction and operations of various commercial developments including hotels, high-rise office, industrial, retail and restaurant properties. The portfolio included 400 hotel rooms, 350, 000 square feet of office space, 300, 000+ square feet of R&D / industrial space and two restaurants.
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•Worked closely with partners, lenders, investment bankers, CPA, legal and financial consulting firms in addition to managing the design consultants, construction contractors and hotel operator.

Financial Analysis and Investment Packaging - Real Estate Development

I developed and marketed a $20 million investment package with a 25-year financial model that produced pre- and after-tax cash flows, equity, and IRR calculations from a variety on possible scenarios. Variables to the model included possible changes in tax law relative to useful life, investment tax credits (ITC), state and federal tax rates, recapture, hotel occupancy rates, room rates, office vacancy rates, lease rates, and operating costs.

A partner also requested a financial package for a partnership to purchase a Trans-Pac winning ocean racing yacht. I developed an interactive financial model that included the tax implications and cash flows from varying charter rates, charter usage and maintenance costs. The revenues from charters and races were compared to the expenses of debt repayment, maintenance, deadhead transportation, sail replacement, etc. The yacht was successfully purchased by the partnership.

Responsibilities for this consulting firm included providing construction management, contract administration, and project control services to Cities Services (CITGO) on a multi-unit refinery expansion estimated at $338 MM and completed on time for $300 MM. Participated in various operations and capital budgeting studies related to crude slate changes resulting from PdVSA’s investment / acquisition which increased revenue and profit to ORU by extending the assignment period. I was the CITGO representative in contract and claims negotiations with contractors which saved CITGO approximately $10 Million.
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Contract Negotiation and Estimate Analysis

On CITGO’s construction contracts for two major units I recommended a combination of cost plus for direct labor and procured items and fixed fee for the majority of indirect costs. I believed that a well managed cost plus construction effort would cost less than a lump sum contract and more owner input would be possible. I also believed the contractor could manage his own indirect labor, management and material costs and there would be less cause for strife if we did not micro-manage this portion of the work. A major challenge would be to develop a contract that categorized all costs into either reimbursable or fixed costs.

I worked with the contractors to develop a comprehensive checklist of all anticipated cost types and to define which costs would, and would not be reimbursable. When the construction estimates, and their fixed fee proposals were developed, I reviewed the estimates for conformity with the spirit and the letter of the contract and analyzed the fixed fee portions of the estimates relative to the reimbursable direct costs. Using some industry standards and similar estimates produced by the contractors where all costs were reimbursable, I determined that the fixed costs requested by the contractors appeared excessive.

I negotiated with the contractors to reduce the lump sum requests. Negotiations with Contractor 1 were difficult, but we finalized a contract at roughly $14 million, some $2 million less than requested. Contractor 2 was more reasonable and they accepted virtually all the proposed reductions and successfully defended the few that were not implemented. This contract was signed with a fixed cost amount of $11 million, roughly $1 million less than requested.

Claims Negotiations Representing the Contractor

A contractor had completed the construction of facilities for General Motors in Mississippi. The contractor believed that the owner's actions and inclement weather contributed to over $2 million worth of valid claims, but GM disagreed.

I traveled to the contractor's office and began a review of the change order requests, the original estimate, final cost report, a variety of schedules and relevant project notes and inter-office memos, and found most of the claims to be with merit. I performed the reviews and coordinated with the contractor for two weeks and then prepared negotiation strategies and memos. Prior to trial, GM and the contractor settled for the $2 million requested by the contractor.

Claims Negotiations Representing the Owner

CITGO asked me to review and attempt to negotiate settlement on $7 million worth of claims on a previously completed project. I reviewed the 100+ change order requests, the original estimate, the final cost report and a variety of schedules.

I performed the reviews and coordination with CITGO in two weeks and then spent a week in the contractor's Houston office negotiating each change order and found most of the claims to be without merit. Many change orders were negotiated and closed out but several others remained. After final negotiations all claims were closed out for a total of $2 million. My efforts saved CITGO $5 million.

Change Order Negotiation and Planning/Scheduling

A year into construction, the contractor of CITGO’s delayed coking unit claimed the coke pit could not be completed in time to support the project unless drastic measures were taken. The contractor presented four alternatives to expedite completion and each required the fixed cost portion of the contract to be increased (from $500K to $2MM).

I requested a detailed implementation plan including the pour sequence for each of the segments, the pour quantities, cure time, etc. I took this information and developed a schedule using the contractor's proscribed pouring sequence, cure time constraints, manning levels, etc. The schedule I developed required no overtime premiums, no basis for increasing the fixed costs and supported the anticipated completion of the main coking unit. One year later, within a week of the date predicted by my schedule, the coke pit was completed.

I invested approximately two man weeks reviewing and negotiating the original request, reviewing the implementation information, developing the schedule and finalizing negotiations. Savings to the client were $500, 000 to $2, 000, 000 plus the savings from whatever overtime would have accrued.

Financial Analysis - Site Selection for Fabrication Yards

I performed a financial analysis on prospective west coast fabrication sites from San Diego to Canada. I used the preliminary fabrication estimate to forecast the cost differentials between all the technically feasible sites. The analysis included differing costs for each site including lease rates for the fabrications sites, labor productivity, labor availability, workman's compensation and other insurance costs, union work rules, state sales and other taxes, live loading vs. dead loading and other site considerations, ocean transportation from the fabrication site to the north slope, etc.

I also did similar analysis on several Siberian developments although these studies were performed on a worldwide basis and included exchange rate fluctuations in addition to the variables noted above.
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Contract Interpretation - Cancelled Work

ARCO was unable to obtain a permit and construction of the project was cancelled. I reviewed the contract and argued that Parsons should receive a percentage of the “construction” cost as a fee per the terms of the contract. I maintained that Parsons had performed their scope of work and should be paid at least the contractual percentage of the estimated cost. ARCO agreed and Parsons received an additional $200, 000.

Contract Interpretation - Limited Man-hours

Parsons was significantly overrunning the engineering portion, specifically the piping work, on a cost plus project. Parsons offered to limit the number of reimbursable hours for the piping group. I confirmed that ONLY the hours were to be limited, not the cost.

I reviewed the schedule, the earned value and the forecast to complete and developed a plan to maximize Parsons’ revenue. Given the forecast to complete, I recommended that the lowest paid employees (approximately 33% of the staff) immediately begin to charge the project's non-reimbursable account allowing the remaining hours to be charged at higher reimbursable rates. The piping group's hours finished as forecast and Parsons generated approximately $100, 000 in additional gross profit.

Cash Flow improvement - billing for job shoppers / temporary employees

In reviewing the engineering contract, weekly labor reports and invoices to client’s, I noticed that Parsons did not bill for job shop labor until invoiced by the temp agencies. I suggested that since the job shoppers were in the time system and we knew their billing rates, we should bill directly to the client from the payroll system and then reconcile to the job shop invoices as received. I took this suggestion to senior management and the procedure was changed on all projects which improved cash flow by 90-120 days for job shop labor.

Responsible to British Petroleum’s Business Manager providing project controls and financial services on a Venezuelan Oil and Gas Program involving well pads and drill sites, gathering and injection pipelines, central processing and gas compression, gas and water injection, infrastructure and import / export pipelines. Services included the gathering, analysis, forecasting and reporting of program costs for engineering, procurement, freight, customs / duties, construction, Unit Operator Costs (owner costs), pre-commissioning and start-up costs. This required the design, development and maintenance of an Access database system to consolidate owner, engineer and contractor accounting and procurement databases. The database was also used to document and apportion capitalized total project costs (at the invoice, account and AFE level) to specific asset tag items per the requirements of the Venezuelan government.

Responsible as senior staff providing consulting, business development, financial modeling, planning, scheduling and estimating services to determine optimum strategies for long-term multi-billion dollar development of several major oil / gas reserves in arctic regions of Russia (including the Timan-Pechora and Yamal Peninsula). Considerations included mobilization, drill sites, drilling program, pipelines, processing facilities, marine terminals, tanker shipments, operations centers, airports and associated infrastructure, exchange rates, local content, building methods, etc. Analysis included the development of integrated, timing sensitive financial models to assess the expenditure requirements and revenue streams resulting from differing development scenarios. Helped grow this initial 4 month study into a 3 year program by developing the economic model and growing revenue, gross profit and credibility to sell further services on oil / gas field developments. Previously had been responsible for the fabrication, logistics and construction activities related to the proposed multi-billion dollar Northwest Alaskan Natural Gas Conditioning Facilities. Also provided the financial analysis and participated on the Site Selection Committee charged with the selection of the fabrication sites in the Lower 48. Earlier work included the fabrication, logistics and construction activities related to the multi-billion dollar Prudhoe Bay Gas Compression and Conditioning Facilities.
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Responsible to ARCO’s Business Manager providing project controls and financial services on the refinery modification and upgrade program involving two refineries with approximately 50 major units. Responsible for MIS, coordination / planning, turnaround scheduling and cost management for Parsons’ scope. Responsible as the owner's representative for overall project reporting and administration, analysis of all other engineers/contractors, planning, expense/capital budget requests and cash flow projections/analysis. Reduced costs to ARCO by decreasing the reporting staff from 6 to 1, increased revenue and gross profit to Parsons by increasing the assignment period and decreased ARCO’s operational costs by developing the maintenance and reporting system for the refinery operation’s staff.

Responsible as Business Manager to the Port of San Diego’s Senior Director for Public Works for staff providing Project Management Support Services on the District’s San Diego International Airport Capital Improvement Program (CIP) including estimating, cost control, scheduling, document control, graphics support, administrative services and report writing. The program involved approximately 70 distinct airside, landside, terminal, real estate and major maintenance projects which required planning, coordination and control of environmental and other permitting, conceptual and detailed design by in-house and outside consultants, development of construction bid packages and construction management. This was a totally integrated staff where some of my 20 direct reports were District employees.
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Project Manager for staff providing Project Management Support Services on Metropolitan Water District’s $1 Billion Inland Feeder Program. This 45 mile, 12 foot diameter water delivery system included hard and soft rock tunnel segments and buried pipeline sections through developed and environmentally sensitive sections of southern California. Services included estimating, cost control, scheduling, document control, graphics support and technical writing / editing. The work required planning, coordination and control of environmental and other permitting, right of way identification and acquisition, conceptual and detailed design by in-house and outside consultants, development of construction bid packages and production of reports / presentations to the public and MWD’s executive management and Board of Directors. Increased revenues and gross profits by 200% to Parsons by extending the assignment period from 2 to 6+ years.

Responsible as Senior Project Control Manager providing project control services for the County of Hillsborough (Tampa), Florida's 3-year $300+ MM Capital Improvements Program (C.I.P.) involving sewers, water delivery systems, utility/road relocations/improvements and waste water treatment plants. In addition to normal activities, assisted the County Administrator in preparing amendments to the plan and a subsequent 5-year plan for presentation to the Board of Commissioners.