Chutkow submits another document which identifies subcontractors. The subcontractor form relates to 1368. Dated March 13th, 2003. This is a capital project that requires Wall street financing.

Was there a holdup on this contract? Yes. 

Do you know what caused it? No. 

Did it go ahead? Yes. 

More coughing from Kwame. 

Now discussing email from Latimer to Victor Mercado relating to cancellation of contract 1361. Dated July 14th 2003. The scope of contract added to 1368. In department's best interest to increase scope of 1368 as a money saving measure. 

1368 contract had Ferguson's name on it. 

Chutkow asks why he wrote the email? Latimer says because Mercado asked him to. 

Latimer had written another email on 1361 stating there were other options and there wasn't a need to cancel it.

11:19AM Latimer says his opinion was that 1361 really didn't need to be cancelled. Could reduce price or timing. The contract had already been signed off by director. 

Latimer says he was told to write email. 

Would it save money? Latimer says it might have saved work hours but there were different sources of funding. 

Did Mercado know that? Latimer affirms that he did. 

Why did Mercado change his position after 1361 had already gone through system? After what he had explained to me. 

Where you comfortable with writing it? No. 

Why? Because those were not my words says Latimer. 

Latimer says I didn't ask many questions because we worked in an atmosphere that when you were given a direction you followed it. 

Did you feel comfortable doing it? No. 

Did you tell him? No says Latimer. 

Document sent saying contract was being cancelled. Dated July 15th 2003, Day after the email he was directed to write to Mercado. 

It explains that 1361 will now fall under scope of 1368. Sent from Mercado to Latimer. 

Why did Mercado have you write email about cancellation of contract? No says Latimer I believe...

Thomas objects. Judge sustains. 

Memo copied to a number of engineers. 

Latimer looking at spreadsheet that shows scoring for evaluation team. It is for CM 2014.