The Daily Alaska empire., 1940-03-31
By Commander R. E. THOMAS tCEC), U.S.N., Officer in Charge
 of Construction

proved and signed a contract De- tween the Navy Department and
 combination of three large con-
 tracting companies for the con- struction of two new Naval Air Sta tions to be located at Sitka, and in Kodiak. Alaska. The three contract ing companies, namely Siems-Spo- kane Company, of Spokane and St. Paul. Johnson, Drake and Piper of Minneapolis, and the Puget Sound Bridge and Dredging Company Of Seattle, were specially selected to perform this important work after careful Investigation had proven to the Navy Department that they were the best fitted among 108 of the largest concerns in the United States who were in competition.
 The particular contract form or type is known as cost plus fixed fee" and this was specially author ized for this work by the Congress of the United States. Under this form of contract all items of cost or expense to the contractors arising from their operations on or incl dent to the work, after payment by them are reimbursed by the Gov ernment. In addition to such re-
 imbursement the contractors are paid fee fixed at definite amount in the contract for compensation for their experience, managerial skill, construction knowledge. profit, etc. With this contractual relationship certain fundamentals are establish ed, among which are the follow ing:
 (a) In effect the contractors are acting as agents of the Government.
 (b) Any action or occurrence which increases or decreases the cost of the work performed directly increases or decreases the cost to be paid by the United States.
 Co The cost of the work per formed or fluctuations therein do not affect in any way the amount of the fee to be paid to the con- tractors as profit or otherwise.
 Federal Mandate
 The Navy Department has Speci- fled and emphasized by repetition that the Sitka and Kodiak projects are to be prosecuted to completion with the utmost of economy, speed, and certainty" The Department has itself a mandate from the Congress and th e President of the United States to see that this is done. The contractors and the Officer in Charge of Construction acting eith- CT as agents or representatives of the Navy Department have been given the direct responsibilities involved in carrying out this mandate, and they have no alternative but to pro- ceed accordingly, overcoming all re- sistance which interferes and well coming all assistance which can be secured.
 The sole reason for which these two stations are being constructed is for the improvement of the na- tional defenses of our country. That | consideration is and must remain paramount. If they did not possess great importance in this respect it | is only logic that the Navy would not have been given the funds and the means to provide them. The extent to which these projects both , during construction and while in operation can contribute to the ec- onomic welfare of Alaska is rec ognized and it has importance, but this importance can be only sec- ondary to the interests of national defense.
 Offices in Seattle
 The main central offices of the contractors nd the Officer in Charge of Construction are located in Seattle Branch subordinate of fices are located at the sites of the ! work, and all offices are staffed with the necessary personnel. to take care of employment, purchasing of and supplies, engineering, accounting, supervision, and project generally. Plans and policies for all work either at Sitka or Kodiak must of necessity be for in the Seattle offices.
 Within but short interval after the signing of the contract men were actually at work on each site, and the forces on the projects have been steadily increased until now a grand total of about TOO are en- ployed either directly or indirectly. Gratifying progress has been made, put still greater progress is demand ed. The large majority of the em- oloyees at the sites are Alaskan res dents and the contractors will maintain these majorities just as ong as the Territory can supply the required adequate men in the re- luired adequate numbers and at the required times. Preference from the beginning has been given to the en- oloyment of Alaskan residents. and [ am assured that this preference will be continued as the demands for more employees at the sites in- crease. It is estimated that at the peak of the construction period there will be about 800 employees on the ! project at Kodiak and about 400 at 1 Sitka If