Evening star., 1941-08-29
City Heads Deny
Irregularities
In Paving Bids
Letter to Senate
Eluborutes on
Earlier Answer

CndrgeS OF irregular practices IN
the District system of awarding con-
tracts for street paving work were
categorically denied by the Com =
miSsioners in letter sent to the
president of the Senate today.
The letter contained formal and
detailed reply to the allegations Of
improprieties in paving contracts,
which were contained in a report
filed with Congress last week by
Controller General Lindsay C. War
rem.
The city heads previously had de-
MED the charges, and today's letter
simply elaborated on the reasons for
their earlier denial.
Report Not Warranted.
The Commissioners, saying they
had carefully examined the con-
troller generals report and the rec
ords of the engineer department, de-
clared:
I'VE are of the opinion that the
contracting and bidding procedure,
specifications and other related ma
| terial for handling bids, contracts,
and execution of highway and street
improvements and repair projects,
conform to standard practice The
Controller Generals report is. there
fore, not warranted. The Commits
sloners find no reason for any
change in procedure"
| The letter said that the procedure
| followed in the District for ap-
/ proXimately 20 yearS-that of unit
price contracts with allowable per-
centage varlation-iS the accepted
practice Throughout the United
States. The work is properly per-
formed and accounted for and the
District and its citizens receive full
value for the money invested, they
declared.
Loaded Bids" Charged.
The irregularities alleged by the
Warren report were summarized
under the following general head
ings:
! One, violation of general laws.
Two, improper transfer of appro-
prlatlons between appropriated items
OF the Highway Department as well
as between other District depart
ments and the Highway Depart
ment.
Three, proposal form with esti-
mates OF quantities that are made
quate, inaccurate and overstated. re-
sultlng IN the submission, recent
and acceptance of unbalanced or
loaded bids.
Four, provisions in specifications
lor increasing or decreasing GUAM
tltles within contract limitations. as
WeH as adding items of work through
assigning additional projects.
rive, performance bonds.
The Commissioners said the War;
rem report does not specifically
charge District authorities with
violating any law, but that it does
lnslnuate" that the law is not be-
ing followed in all cases. Such is
not the fact, the Commissioners de-
clared.
In Accord With Laws.
On the question of improner
transfer of appropriations. the Com
mlSSloners pointed out that the an
nual District Appropriation Act
makes clear provisions for trans
Ierrlng appropriated funds among
the various items. Furthermore.
the Commissioners said, the transfer
OF funds between other District de-
partmentS and the highway DEPART
ment is necessary for proper ac-
countings and is in full accord with
all existing laws.
Replying to the charge that ap-
preparations are used for purposes
not specifically defined, the COM
miSsloners declared this was a gen.
eral allegation of incorrect practice
not founded on fact, and added:
Not one dollar of the highway ap-
preparation is used for purposes not
authorized by the appropriation act.
The Warren report said an inves-
tlgation had disclosed that "inade-
quate, inaccurate and overstated
estimates have been and are being
used in requesting bids and that
such practice has resulted in the
submission, receipt and acceptance
of unbalanced or loaded bids.
Many Factors Affect Prices.
Denying the charge, the Com
missioners said a detailed examina-
ton OF pids, contracts and other
documents proved the opposite"
AS evidenced of unbalanced and
loaded bids, the Warren report cited
the TACT that on several occasions, a
{ single bidder submitted unit prices
on estimated quantities of material
and work on as many as three diff
ferent jobs on or about the same
. date, and that, while his prices were
low on one or two successful bids,
his prices on the same items in un-
successful bids showed wide varia-
. tionS.
On this point, the Commissioners
pointed out that many factors enter
into determination of unit prices for
separate jobs, and denied that they
have accepted loaded or unbalanced
bids or awarded any contracts to
any one other than the low bidder.
The Warren report also said that
, confirmation of unbalanced or
, loaded bids was found in the fact
, that during the period from Febru-
r ary Is, 1887. until July IT, 1910, there
was close to an even division of
/ work between the four principal
/ contractors engaged in street and
i highway work in the District.
Standard Provisions.
At this point, the Commissioners
pointed out that the District let 125
r separate contracts for paving and
! similar work during the period men
5 toned, and of this number only 81
l were awarded to the four contrac-
E tors mentioned in the Warren re-
port.
| THE report is so drawn" the city
5 heads said, las to leave the impress
sion that the four contractors named
{ were in collusion. which resulted in
substantially equal division of the
work, and that such contractors per-
!. formed all of the highway work OF