Evening star., 1946-04-17
Addifiona|Funds
Needed byvA
FofHospita|s
Ex-OfficioIs Called
Too Optimistic
On Building Costs

will have to ask Congress fol
more money before it can start
its mass hospital construction
program because construction
officials under former Veterans
Administrator Hines were "toc
optimistic" in estimating build
ing costs.
Disclosing that the s4O0 900 900
already appropriated would not
cover the cost of building IA new
hospitals and As additions, VA
officials yesterday also conceded
that:
l. VA is two months behind In
carrying out the new building pro-
gram and years behind on con-
struction authorized in 1943 and
1914.
2. Although the need for hospital
beds has been so critical that VA
Is borrowing" beds from private
and military hospitals, Col. Frank
H. Dryden. assistant administrator
for construction. supply and real
estate, said he had to start vir-
tually from scratch on hospital
construction when he was ap-
pointed March l.
3. Despite the much publicized
shortage of building materials, con-
struction officials didn't think it was
necessary in January to specify in
opening bids that VA would guar
antee flow of materials to builders.
Cites Eids and Estimates.
Col. Dryden told reporters he had
no idea how much more money VA
would have to ask from Congress
before it could start letting con-
tracts, but he added that bids so
far have been so per cent to 100
per cent higher than the VA esti-
mates.
Congress. he said, appropriated
$5,790000 to build a hospital at
Peekskill, N. Y. This lowest bid
turned in was s11 ,483 900 and the
next higher one was $13,763 900.
AS another example, he cited a
proposed hospital for Providence
R. l., for which $4,000, 900 had been
appropriated The only bid turned
in was for s4,9OO.OOO-a rs per cent
increase over the estimate
Ask to explain why his predeees-
sors in construction had estimated
so low. Col. Dryden said he under
stood the estimates were made In
the spring and summer of 1945 when
VA officials believed that the end of
the war would bring stabilized prices
and full production.
No System on Costs.
In addition to being optimistic, he
said, the then VA construction off,
ciais apparently had no system of
cost accounting. He said they based
their estimates on scattered bids
they had received mostly on addi-
tions to buildings, apparently not
taking into account that a COM
plete new hospital involves different
expenses.
He conceded that VA officials con-
tinued to be optimistic even after
they found themselves unable to
get bids.
The only work now under con-
struction involves about $50 600. 900
appropriated in 1943 and 1914, Col,
Dryden said.
Col. Dryden explained that VA
expects to let all the contracts for
the hospitals and additions between
June and December of this year, but
it can't let contracts unless we've
got the money in our pockets"
Provision for Borrowing.
While the appropriation already
available would make it possible fol
VA-with Budget Bureau approval
to borrow from the funds allotted
for one hospital to pay for another
I'VE would do that only If we were
sure we wouldn't have to leave halt
the hospitals out" Col. Dryden
added.
The agency has already discussed
the possibility of more money with
the Budget Bureau and the House
Appropriations Committee, but nc
figure has been set, Col. Dryden re-
ported. VA expects to go to Con-
gress with formal request for q
supplemental appropriation within a
few weeks.
The construction chief said VA
was hopeful of getting both the ad.
ditional funds and the materials
using the No. l building priority
which has been written into law
Although behind now, he added, the
program is expected to be completed
on schedule-by July, 1948.