The daily banner., 1916-10-26
Navy BIDS SHOW
SCI. !. INC COST
-Four Companies Estimate on
-Four DreadGOughtS.
20 DESTROYER PROPOSALS
The Government Placed Limit OF
$11,5Oo 900 on Each Big Snip and
Bidding is Close.

Washington, Oct 26.-When bids for
four new battlesIi. and twenty de-
s.royers-the largest single or~ef
ever placed by the navy-wer4 o@eled
it was disclosed that The g-vernm N
faces the soaring prices OF s.ruct ri
materials in perfecting tie n-vy build,
ing program.
Although the navy dcpar men, had
! allowed $3,000,000 NOR e~ch "a
tleship than it did last year a--d p ac'
ed a limit of 81, 100000 for lul and
machinery alone, the bidd ng ran
with a close margin.
All bids of the Fore River Ship
building company, controlled by Be h.
lehem Steel, were submitted with &c
express stipulation that they were
| based on current prices for material
| and labor. The company proposed
that the government pay any increase,
or profit by any decrease and let he
| federal trade commission determl.- e
the figures.
The Cramps submitted no figures at
all, but proposed to build the ships al
| cost and take an constructors profit
! of ten per cent. The details of the
bids or to whom the contracts VIII be
| awarded cannot be determined until
| the figures have been studied thor
oughly by the navy construc,o S.
The opinion of the constructors,
based on a hurried examination of the
| bids is that all are sufficien .ly within
the limit of cost, to permit all the
ships being built by private builders
| and there will be no necessi y CT co /.
struction in government yards, rnl 2ss
as a question If policy it shcull lie
| thought desirable.
The limit of cost as to hull and ms.
| chinery has been fixed by the depare
menot at $11,500,000 e'ch.
All bids proposed mod'fi a'ion o.
| the departments specifications in
some respects. The lowest figure quot.
| ed by anv bidder was $10.060,000 by
| the Fore River company, fer two ships
| to be delivered in forty-two and forty
| eight months, respectively.
That bid, however, was under the
| departments proposal for electrically
| propelled vessels and stipulated thai
the department and not TIE Company
| should supply the machinery.
For a single ship within for Wv
months under the same condition the
company bid $10,960,000. For one s'iI
equipped with gear steam turbines
to be supplied and guaranteed by the
company, $11,O16,00O was quoted, ane
for two ships, s10,716,00O each.
All the foregoing bids were entered
under the stipulation that cu~ren
prices of material and labor were used
In making the estimates. The company
proposed that any increase in those
J prices during the period Of the cen
tract should be met by the government
| and that any decrease should be de
| Quoted from the contract price of eacl
/, ship, the federal trade commission
| to determine the figures in either in
stance.
| Where the company assumes all TIE
risk of increased price figure of $40,
$4,000 for each of two ships, elactr' {
propulsion, was quoted, and S11,475,
900 for each Of the two steam-pro
PEELED vessels.
The New York Shipbuilding com
pany submitted bids for stesm-propel
led ships, asking $11,35o,000 for one
ship in forty months, or $11,25N,00'
for each Of two ships. one in fort.
months and one in forty-six months
Should the department desire to pr
vide electric machinery the compan'
proposed to deduct s525,O00 from tn
bid.
Bids for the twenty destroyers range
from $1,370,00O to s1,190,000 each.