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RMK-BRJ
RMK-BRJ was an American construction consortium of four of the largest American companies, put together by the United States Navy during the Vietnam War. Its purpose was to build critically needed infrastructure in South Vietnam, so that the Americans could escalate the introduction of American combat troops and materiel into Vietnam. This construction contract, amounting to $1.9 billion (equivalent to $14 billion in 2017 dollars), completed a construction program deemed to be the largest in history up to that time. The consortium derived its name from its four constituent companies: Raymond International, Morrison Knudsen, Brown & Root, and J.A. Jones.
Over the ten-year life of the contract, RMK-BRJ trained 200,000 Vietnamese workers in construction and administrative trades. The use of a civilian contractor and construction force in an active theater of combat operations was authorized for the first time in U.S. history.
In the 1950s, the United States Department of Defense assigned responsibility for contract construction in support of military assistance and military construction in regions around the world to the three major branches of defense: the Army, Navy and Air Force. The navy was assigned as the Department of Defense contract construction agent in Southeast Asia, among other regions.
In late 1961, the United States Navy's Bureau of Yards and Docks, known after 1966 as the Naval Facilities Engineering Command (NAVFAC), entered into a contract with some of the largest American construction companies to build infrastructure in Vietnam in support of the Republic of Vietnam. Based upon their experience with dams, ports, highways, and roads, Raymond International was selected in partnership with Morrison Knudsen, known for heavy international construction. Raymond had extensive experience driving piles around the world, including Mexico and Tokyo, as well as The Pentagon in World War II. They had both been part of a consortium to build naval bases in the Pacific Ocean in World War II with a $1.5 billion contract. Morrison Knudsen was designated as the managing partner for the new contract. This consortium was then known as RMK.
By August 1965, it had become clear that the construction program was growing much larger than originally expected, so the navy broadened the construction consortium by adding Brown & Root and J.A. Jones Construction. The consortium then became known as RMK-BRJ. The consortium was also known informally as "The Vietnam Builders".
The original letter contract (NBy-44105) with a fixed price was signed on 8 December 1961. But as the security condition in Vietnam deteriorated and new construction requirements arose, the contract was changed to a cost-plus contract with a fixed percentage management fee. RMK-BRJ could then be directed to begin projects before design was started or completed, at remote sites, with uncertainty of the local labor forces, and reduced freedom of action due to the security situation. In 1966 as the value of the contract approached $1 billion, the contract was renegotiated to lower the management fee commensurate with the increased scope and award the fee percentage based upon the contractor's performance, a cost-plus-award-fee contract. Under this contract, the navy provided all materials, equipment, shipping, and transportation.
Construction work under the contract was completed in June 1972, and the contractor facilities in Saigon were turned over to the South Vietnamese government on 3 July 1972. The final closeout report was presented in October 1972. The final contract value was $1.865 billion, which does not include the value of government-furnished materials, equipment, shipping and transportation.
The Contracting Officer for the navy was the Officer in Charge of Construction, Republic of Vietnam (OICC-RVN), with its main office in downtown Saigon. The OICC directed the contractor's work program as well as observing the construction and evaluating the contractor's performance. In February 1967, OICC staff was 1,050, including 90 Navy Civil Engineer Corps officers, at 47 sites and 782 separate projects.
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RMK-BRJ
RMK-BRJ was an American construction consortium of four of the largest American companies, put together by the United States Navy during the Vietnam War. Its purpose was to build critically needed infrastructure in South Vietnam, so that the Americans could escalate the introduction of American combat troops and materiel into Vietnam. This construction contract, amounting to $1.9 billion (equivalent to $14 billion in 2017 dollars), completed a construction program deemed to be the largest in history up to that time. The consortium derived its name from its four constituent companies: Raymond International, Morrison Knudsen, Brown & Root, and J.A. Jones.
Over the ten-year life of the contract, RMK-BRJ trained 200,000 Vietnamese workers in construction and administrative trades. The use of a civilian contractor and construction force in an active theater of combat operations was authorized for the first time in U.S. history.
In the 1950s, the United States Department of Defense assigned responsibility for contract construction in support of military assistance and military construction in regions around the world to the three major branches of defense: the Army, Navy and Air Force. The navy was assigned as the Department of Defense contract construction agent in Southeast Asia, among other regions.
In late 1961, the United States Navy's Bureau of Yards and Docks, known after 1966 as the Naval Facilities Engineering Command (NAVFAC), entered into a contract with some of the largest American construction companies to build infrastructure in Vietnam in support of the Republic of Vietnam. Based upon their experience with dams, ports, highways, and roads, Raymond International was selected in partnership with Morrison Knudsen, known for heavy international construction. Raymond had extensive experience driving piles around the world, including Mexico and Tokyo, as well as The Pentagon in World War II. They had both been part of a consortium to build naval bases in the Pacific Ocean in World War II with a $1.5 billion contract. Morrison Knudsen was designated as the managing partner for the new contract. This consortium was then known as RMK.
By August 1965, it had become clear that the construction program was growing much larger than originally expected, so the navy broadened the construction consortium by adding Brown & Root and J.A. Jones Construction. The consortium then became known as RMK-BRJ. The consortium was also known informally as "The Vietnam Builders".
The original letter contract (NBy-44105) with a fixed price was signed on 8 December 1961. But as the security condition in Vietnam deteriorated and new construction requirements arose, the contract was changed to a cost-plus contract with a fixed percentage management fee. RMK-BRJ could then be directed to begin projects before design was started or completed, at remote sites, with uncertainty of the local labor forces, and reduced freedom of action due to the security situation. In 1966 as the value of the contract approached $1 billion, the contract was renegotiated to lower the management fee commensurate with the increased scope and award the fee percentage based upon the contractor's performance, a cost-plus-award-fee contract. Under this contract, the navy provided all materials, equipment, shipping, and transportation.
Construction work under the contract was completed in June 1972, and the contractor facilities in Saigon were turned over to the South Vietnamese government on 3 July 1972. The final closeout report was presented in October 1972. The final contract value was $1.865 billion, which does not include the value of government-furnished materials, equipment, shipping and transportation.
The Contracting Officer for the navy was the Officer in Charge of Construction, Republic of Vietnam (OICC-RVN), with its main office in downtown Saigon. The OICC directed the contractor's work program as well as observing the construction and evaluating the contractor's performance. In February 1967, OICC staff was 1,050, including 90 Navy Civil Engineer Corps officers, at 47 sites and 782 separate projects.
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