Evening star., 1940-11-23
; Types Of Contracts
Available in BUILDING
Army Camps
Project at Fort Meade
Used New and Speedy
Cost Plus q Fixed Fee

COlCTdClS IOT CONSTRUCTION OF new
facilities at Army camps and
cantonments for the swiftly ac-
celebrating national defense program
are awarded under q system which
takes into consideration labor costs
based on the prevailing wage scale
in the community where construc-
ton is to proceed, it was stated at
the War Department yesterday.
This was learned from War De-
partment officials who pointed out
that there are three different sys-
TENS now for awarding such con-
tracts: One by advertising for bids
and two by negotiation.
In the traditional Government
procedure of advertising for bids,
which takes longer than the other
two systems, contractors are In
vited by advertisements to submit
bids which are opened at a fixed
time. The contract under this sys-.
tenn goes to the lowest responsible
bidder" at a fixed figure, which
includes everything on the job
materials, labor and the contractors
expenses and profits.
The Lump Sum" Contract.
The second plan, bringing into
operation the principle of nego-
tiation between the Office of the
uuartermaster general and one con-
tractor or more, results in lump
sum" contract. This figure includes
everything in the job-materials,
labor and the contractors expenses
and expected profit. If wages go up
during construction, the cost OF
this increase in wages is born by
the contractor.
The third plan, which is the
newest and one of the speedieSt, Is
known as the cost plus fixed
fee" system 1t is the successor to
the old cost-plus system of the
World War, in which the contractor
received a percentage of the entire
cost of the project.
The "cost plus a fixed fee" sys-
tenn was authorized by new law last
summer, which prohibited the sys-
tenn in use during the previous
World War.
In placing the new system in op-
Grafton at the big 100000 project
at Fort Meade, Md, where District
troops soon will go, the first step
was to estimate the cost of actual
construction. This was done by
group of experts on such opnstruc-
ton. They took into consideration
the estimated cost of labor, based
on the prevailing wage scale" in
the area where the work was to be
done.
Advisory Board Recommends.
An advisory board Of three ex-
pert civilians recommended to the
constructing quartermaster gen.
eral the names of three concerns
which, on careful examination. were
by the Advisory Board
not only to be able to do such a job
but also qualified to fit into the
picture" This latter qualification
includes such things as geographical
nearness to the job. Such a con-
tract is not likely to bring a firm
from one end of the United States
10 build a camp on the other side
of the country. At Fort Meade, for
instance, the award went to the
Consolidated Engineering Co. of
Baltimore, not far away, firm
which had previously erected large
buildings for the Government, in
cluding the Department of Com
merce here.
I The list of three firms goes not
only to the constructing quarter
master for his decision but is re-
ferred to the National Defense
Commission, which considers all
contracts over s5O0,O0O in size. The
contract finally is signed by the
Secretary of War and the
contractor notified to proceed
, In the case of such cost plus a
fixed fee contract, any increase in
the wage cost, such as was recently
put in effect at Fort Meade, is part
of the expense which eventually is
met by the Government. The con-
tractor, under such system, op-
crates on the fixed fee," which is
determined on a percentage basis of
not more than 6 per cent of the
estimated cost of the prof.
ect. In most cases the contractors
percentage is less than per cent,
sometimes as low as per cent.
Officer Supervises Job.
Construction is supervised by
quartermaster whose
duty it is to see that the Govern
ment gets what is specified in the
contract.
Authority for paying workmen
time-and-a-half for overtime was
given by the controller general of
the United States in a ruling to the
Secretary of War early this month.
The controller general, in the
course of lengthy ruling. concluded
that 'in order to avoid delay or
other serious interference with the
national defense program to
modify any existing contract to pro-
F4uC bIldb GllC COilGl dCUOI Slldll pay
time-and-a-haf for hours worked
by its employees in excess of 40 hours
per week, and be reimbursed for the
increase in wages thus paid, this
Office will not object to otherwise
proper payments under the contract
so modified"
The constructing quartermaster
In his authority of supervisor, it is
also is to look out for
possible wastage on the job, and in
cases of differences between the
contractor and organized labor to
offer his services or those of his su-
periors in the War Department in
"conciliation. Should a situation
become more serious in this direc-
ton, the National Defense Commits
sion is authorized to step in, investi-
gate and see that justice is done to
all.
In the case of the Fort Meade con-