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ASSOCIATED UNIVERSITIES, INC. U. S. Department of Energy BEST COPY AVAIMBLE I spoke to you early in .July about the cost overruns on our II’ ‘60 budget for the Marshall Islands Program and told you I would review carefully the justification for ezrh item before I sent you a lettex.. I have taken that actioii, znd I no~? forwzrd to you a request totalling $46,000, which is a hard and well defezded figure. YOU will iecall that in lfGven5~~ of last year a Ions memorandum from Hugh Pratt pro”Jided an analysis of thefwn existicg ‘oudEet of $583,000 and described $297,000 of additional costs which then appeared to be necessary. On November 14th you and I met with Bili Burr, Hal Hollister, Joe Blair, Vic Bond, al~d Hu~h’Pratt in the Forrestal Building to discuss tha~ budget. The final outcome, as you way remexber, was a list of priorities of add–ens written on the board hy }Ial Hollister. Th~ order of that priority list and sums involved were the following: Likiap survey for $134,000, upgrading af the medical records $21,000, educational pro~ram $57,009, 25 year report $15,000. These four items, totalling $227,000, were given the highest priority. The remaining items were: $29,000 for a third survey, $18,000 for unanticipated administrative costs, $9,000 for travel expenses to be paid by BNL that ~~ere previously paid throush PASO, $5,000 of additional travel throush PASO, and $4,000 for microfisching records. As you know, a numbc:r of these activities were never carried out, so the present requirement for $4G,000 represents only those items which ~ould not be covered, even if some additional fun?s wel-e made available through the canccllatiol~ of several anticipated activities. The follouing items represent existing commitments ~.?hicl]cannot be covered by the bud~et remaining for this fiscal year: 1) Tabershaw Contract: This contract was let by UN]. at the request of DOE. It was understood that reimbursement would be made for all incurrc:d expenses. To date invoices and inclirec.t costs for this effort. amol]nt to $15,000. These invoices cannot be paicl until ailcli:ional
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funds are received. 2) Preparation of the 25 year report was to be --- perfomecl by a consultant. Although the best estimate for this item in November was $15,009, it has turned out that Dr. Donald Paglia’s assistance has been extremely valuable, and the report, which is currently being prepared will cost $22,000 in FY ’80. This will cover consultation fees paid to Drs. Conarcl and E’aglia. 3) Payment of travel costs of resident personnel. At the November meeting it was pointed, out that BNL personnel were traveling under different travel policies, and it was agreed that it would be appropriate for J3NL to support intra-island travel expenses for BNL personnel, although these previously had been reimbursed by PASO. In fact, the BNL budget has not been increased to cover these expenses, and the cost of intra-island travel paid for by Brookhaven over two fiscal years is $9,000, including indirect costs. The expenses of the very large survey that was recently completed, and the expenses of the survey that ended last October and were therefore charged to the N ’80 bulget’have not left any funds available for us to pay Tabershaw or the additional expenses that were not foreseen at the time of the original budget submission. The total of $46,000 is much less than we were considering last lJovember, but w~ will.negd that much in addition to our financial plan, in order to close o~ut F’Y ’80 with a balanced budget. Very sincerely yours,. .-,..