VII. EFFECTIVE DATE

This Agreement will be effective commencing with the 11th day of March, 1971.

POST OFFICE DEPARTMENT,
By BLOUNT,

Postmaster General.

DEPARTMENT OF THE ARMY,

By RESOR.

Secretary of Army.

Mr. CONSTANDY. We then address ourselves to what we term the "long agreement," 23 pages in length, signed by General Clarke on behalf of the Corps of Engineers and by Mr. Blount as the Postmaster General. That is also dated March 11, 1971. It contains appendices A through G and they provide in addition to other things, under appendix F the postal public building program for fiscal year 1971 consisting of 14 projects which were then suggested as being projects for which design and construction have been assumed or will be assumed in the near future by the Corps of Engineers. Their dollar volume is $68 million plus.

Section 2H, appendix F, under the title "construction" had a breakdown of two subsections; one of them "under construction" which consisted of six projects totaling in value $153 million-plus and section b. projects which were to be advertised for construction in the near future, consisting of three projects totaling $8 million plus, and section III of appendix F, projects to be assigned for design and construction, including under subsection A preferential facilities, there being 10 of those totaling $76 million and subsection B bulk handling facilities consisting of four projects totaling $145 million.

The total for all the above projects is $222 million plus, so that that March 11 agreement specified the intention of the parties as of that date and they had-I must parenthetically add-worked up their agreement to the detail that permitted them to give projects in those categories for fiscal years 1971 and 1972.

Mr. WRIGHT. The Chair thinks the inclusions under subsection B of title 2 of Addendum F1 of Waikiki, Honolulu, a construction value of $500,000, may possibly shed some additional light upon questions that were posed yesterday with respect to the abandonment by the Postal Service of a project previously authorized by Congress for a multiple use in Hawaii.

Without objection, this document will become exhibit 16. (The document follows:)

EXHIBIT 16

MEMORANDUM OF AGREEMENT BETWEEN THE POST OFFICE DEPARTMENT AND THE CORPS OF ENGINEERS, DEPARTMENT OF THE ARMY, PROVIDING FOR POSTAL FACILITIES ACQUISITION SERVICES

I. INTRODUCTION

1. This Agreement establishes the responsibilities, terms, and conditions under which the Corps of Engineers (Corps), Department of the Army, will furnish to, for, and on behalf of the Post Office Department (USPOD) pursuant to the Memorandum of Agreement signed by the Postmaster General and the Secretary of the Army, dated March 11, 1971, and as requested by the USPOD, the following postal facilities acquisition services: site selection; cite acquisition; design; construction; preparation, award, and administration of design and construc

tion; preparation, award, and administration of design and construction contracts, including mechanization; inspection and supervision of construction; architectural and engineering services during construction; acceptance of completed facilities; and ancillary services specified herein.

2. It is understood that the USPOD desires to utilize the services of the Corps under this Agreement, and that the Corps desires and is in a position to furnish such services, for the principal purposes of providing needed, highly functionaltype postal facilities on strict time schedules at minimum cost. Accordingly, it is mutually agreed that all requests for services, transmittals, reviews,approvals, and other actions required by or in furtherance of this Agreement, will be performed with a consistently maintained high level of priority, cooperation, and dispatch; and it is further agreed that the Corps will investigate and, whenever in its judgment significant time or cost savings or superior construction can be achieved by contracting for the use of advanced construction techniques and materials, by phased contracting, or by contracting for construction on a basis other than fixed price, the Corps will so contract after obtaining the written approval of the USPOD.

II. POLICY

1. The Corps will recommend and acquire postal facility sites and perform all design, construction, and acceptance services for projects on which such services are requested by the USPOD. The USPOD will provide funds to cover the work to be performed by the Corps in accordance with the provisions of section V of this Agreement. Public information releases and announcement of projects covered by this Agreement will be made by the USPOD; thereafter, public information releases pertaining to the day to day operational aspects of the services being provided by the Corps for these projects are to be coordinated with the local postmaster. All public announcements involving policy and the overall program will be made by the USPOD. Congressional liaison relating to any matter covered by this Agreement will be the exclusive responsibility of the USPOD. Congressional inquiries received by the Corps regarding all work performed under this Agreement will be sent with the Corps' suggested response, on a priority basis, to the USPOD's Congressional Liaison Office for disposition. 2. A Corps of Engineers Postal Construction Support Office will be established by the Corps in the Office of the Chief of Engineers, and will be the primary point of contact in the Office of the Chief of Engineers for purposes of this Agreement. Any communication made to or received from the Corps of Engineers Postal Construction Support Office by the USPOD will be deemed for all purposes of this Agreement to have been made to or received from the responsible Corps authority. The Office of Program Management, Facilities Department, USPOD, will be the primary point of contact in USPOD for purposes of this Agreement. Any communication made to or received from the USPOD office of Program Management by the Corps will be deemed for all purposes of this Agreement to have been made to or received from the responsible USPOD authority. The Corps of Engineers Postal Construction Support Office, the USPOD Office of Program Management, and higher authorities in the Corps and the USPOD, may from time to time designate in writing additional offices or officials within their respective agencies to originate and receive specified communications.

3. In performing site selection and acquisition services under this Agreement, the Corps will act as agent for the USPOD. Any contracts necessary to the acquisition of land, and acceptances thereunder, will be executed by the Corps for and on behalf of the Postmaster General of the United States. In all title deeds, the legend, "The above-described premises are acquired for and on behalf of the Post Office Department", will be inserted directly following the metes and bounds description.

4. In performing design and construction contracting services under this Agreement, the Corps will contract in the name of the United States of America in accordance with usual Corps procedures, and will make disbursements to contractors pursuant to the terms of such contracts.

5. All requests for services under this Agreement will be made in writing by the USPOD. Each request for services will include, to the maximum extent practicable, all Corps services desired by the USPOD in connection with the same project. Each such request will specify the intended beneficial occupancy date of the facility and the scope of the Corps services desired. Each request will be accompanied by a USPOD Project Authorization which will authorize the obli

gation of funds within specific limitations for the services requested. Promptly after receiving each request for services under this Agreement, the Corps will acknowledge the request in writing and will specify the Corps Activity, or Activities, responsible for performing the services requested.

6. The Corps and the USPOD will consult and endeavor to agree upon a solution whenever, in the opinion of either party, any person employed by the other party in the provision of any services under this Agreement, is incompatible, lacking in competency, or otherwise objectionable.

III. REAL ESTATE SERVICES

A. Site selection.

1. In connection with each USPOD request for site selection services, the USPOD will specify the place or area in which a site is desired, the approximate size of site desired, the access and operational requirements, and other applicable criteria. Subject to extension of time by mutual agreement, the Corps' site selection services will be accomplished within a target period of 30 days following receipt by the Corps of the USPOD's specifications and criteria.

2. The Corps will provide site selection services as requested by the USPOD including the following:

a. Location, analysis, and comparison of alternative sites in and around the place or area designated by the USPOD and conforming generally to the criteria specified by the USPOD. The Corps' site review team will include a representative of the USPOD.

b. Preparation and submission to the USPOD for designation by the US POD of the site to be acquired, or other action, of a Real Estate Planning Report. The Report will include the Corps' gross estimate value of each site considered, the Corps' siting recommendation, and the factors on which the recommendation is based.

B. Site acquisition.

1. In connection with each USPOD request for site acquisition services, the USPOD will specify the site to be acquired and the kind of real property interest to be acquired. The applicable USPOD Project Authorization will state the approved gross estimate value of the site and will authorize the obligation of funds in accordance with the provisions of this Agreement.

2. The Corps will provide site acquisition services as requested. It is understood and agreed that, if the apparent total cost of any site as evidenced by offers to sell obtained by the Corps through negotiation plus the total appraised value of any parcel or parcels which the owners refuse to sell exceeds the USPOD Project Authorization gross estimate value of the site by more than the percentages allowed by Engineer Regulation 405-1-620 as in effect on December 1, 1970, the Corps will consult with the USPOD and will not commence purchasing parcels until after a determination is made by the USPOD as to whether to abandon the site, acquire some or all of the offered parcels by purchase, or proceed against some or all of the offered parcels by condemnation in lieu of purchase. If necessary, a revised USPOD Project Authorization will be issued.

3. With regard to lands, or interests therein, under the jurisdiction, custody, or control of other Government agencies, including lands in the pulic domain, the Corps will arrange for the use by, or transfer to, the USPOD of such lands of interests and will prepare and transmit to the USPOD, for signature and forwarding, of requests for such use or transfer.

IV. DESIGN AND CONSTRUCTION SERVICES

A. Contractual services generally.

1. The Corps will enter into and administer any necessary contract for the design and construction of projects for which such services are requested under this Agreement. Suject to the provisions of this Agreement, th civil works contract procedures normally followed by the Corps, including the handling of claims and disputes, will be followed by the Corps in entering into and administering contracts hereunder. The Corps will keep the USPOD currently advised concerning contractor claims by submitting the Corps' claims reports, and revisions thereof, to the USPOD.

2. All contractual matters referred by the Contracting Officer to higher authority for decision or approval will be brought to the attention of the USPOD. 3. If, after consultation, the USPOD requests termination of any contract for the convenience of the Government, the Corps will so terminate such contract.

B. Design.

1. For each project on which the Corps' design services are requested, the USPOD will provide the Corps with applicable project design standards, specific design criteria, general functional requirements, mechanization requirements, and any descriptive material or sketches needed to define the general quality of construction, space allocation, functional layout, and operating characteristics to be incorporated into the design of the project. An agreed time schedule within which the design services are to be completed by the Corps will be established.

2. The Corps will prepare or cause to be prepared, either by Corps personnel or by an Architect-Engineer (A-E) all designs, plans, drawings, specifications, and technical requirements necessary for the completion of the project in accordance with the USPOD Project Authorization and the USPOD design standards, criteria, general functional requirements and layout, and mechanization requirements. The Corps also will make, or cause to be made, soil tests and sub-surface investigations as needed either for selection as between alternative sites or for project design and construction. Whenever the services of an A-E are to be used, the A-E will be selected by the Corps, with the USPOD having membership on the A-E Selection Board.

3. The Corps will submit to the USPOD for approval, outline specifications and concept drawings, to include site plans, floor plans, building elevations, building cross-sections, space allocation, functional layout, and operating characteristics, including mechanization. This submission will also contain the Corps' estimated completion date of the project and its estimated costs of the project. Subsequent development of drawings and specifications for the project will be accomplished under the supervision of the responsible Corps activity in accordance with the established time schedule and Project Authorization limitations, and in conformity to the USPOD-approved concept drawings and design concepts.

4. The Corps' reviews and approvals of intermediate phase drawings will be accomplished in the office of the A-E. The reviews and approvals of the final phase submittals may be accomplished in the appropriate District office. The Corps will notify the USPOD of the time and place of all such reviews as much in advance as possible so that the USPOD may arrange to have personnel present to participate in the reviews. All final working drawings will be approved by the USPOD as to conformity to the approved concept drawings and design concepts. If at any time during the course of the project any change or revision in the project cost estimate is made, such change or revision will be reported immediately to the USPOD together with a statement of the reasons therefor, and, if the change or revision is an increase, possible alternatives to reduce or eliminate the increase. If necessary, a revised USPOD Project Authorization will be issued. C. Construction.

1. The USPOD Project Authorization accompanying each USPOD request for the Corps' construction services will state the construction project funding limitation and will authorize the obligation of funds within specific limitations for the services requested and the construction project funding limitation.

2. The Corps will contract for construction of the project, including mechanization, in strict accordance with the USPOD Project Authorization construction project funding limitation, scheduled occupancy date, and approved final working drawings, plans, and specifications furnished by the USPOD or prepared by or under the direction of the Corps pursuant to this Agreement, and will perform all necessary inspection, supervision, and other architectural and enginering services during construction. Subject to the provisions of this Agreement, the Corps Contracting Officer will advertise, award, and administer the construction contract, issue change orders, execute supplemental agreements, decide disputes, and take all other necessary and appropriate action to assure the successful completion of the project. In contracting for facilities which are to contain mechanization, the Corps will include both construction and mechanization in a single prime contract unless the Corps determines that significant time and/or cost savings will result from separate contracting, and so advises the USPOD.

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3. The Contracting Officer will take all pre-award actions including the preparation and issuance of the solicitation for bids or proposals for construction of the project. The Contracting Officer will not reject all bids, nor award a contract for a price exceeding the runuing limitation in the applicable USPOD Project Authorization, without first obtaining the concurrence of the USPOD and a USPOD Project Authorization revision if funding adjustments are necessary. The USPOD will be afforded the opportunity to send representatives to the preconstruction conference held after award.

4. Approved shop drawings, including manufacturers' literature, will be made available to USPOD personnel for review at the project site. As-built drawings will be furnished to the USPOD within 60 days after transfer of accountability for the facility to the USPOD.

5. Representatives of the USPOD will visit the site from time to time as the USPOD deems necessary or desirable during construction and will report any observed deficiences to the Corps. The Contracting Officer will modify the construction contract if necessary to comply with the written requirements of the USPOD. A USPOD Project Authorization revision will be issued if additional funding is required.

6. The Corps will not extend the time for completion of any project by more than a total of 30 days beyond the scheduled completion date, nor negotiate supplemental agreements for work outside the scope of the contract, without the prior written approval of the USPOD. The Corps will not, without the prior written approval of the USPOD, issue any single change order or contract modification which increases the contract price by more than $100,000 unless otherwise agreed in writing. However, notwithstanding the foregoing limitations, nothing in this Agreement shall be construed as limiting the Contracting Officer's. or a Board of Contract Appeals', authority to decide any dispute concerning a question of fact arising under a contract pursuant to the Disputes Clause thereof and to grant whatever relief the contractor is determined to be entitled to. If at any time the Corps determines that the cost of the project will, or is likely to, exceed the USPOD's construction project funding limitation, or that the completion of the project will, or is likely to, be delayed beyond the scheduled completion date, the Corps will so advise the USPOD, giving the estimated amount of the anticipated excess or delay, and the reason or reasons therefor. If necessary, a USPOD Project Authorization revision will be issued.

7. Upon completion of a project, representatives of the USPOD and the Corps will make a joint final inspection to determine whether the work has been completed satisfactorily. In the event of deficiencies resulting from design error or failure of the contractor to comply with the plans and specifications, the Corps will take necessary action with the contractor to correct the same. Acceptance of the completed facility, including the fixed mechanization, will be effected by the Corps with the concurrence and assistance of the USPOD. Transfer of accountability for the facility will be accomplshed by the use of a DD Form 1354. The USPOD will assume the custody, operation, and maintenance of the building on the effective date of the transfer of accountability. Any construction deficiencies which, with the USPOD's acquiescence, are not corrected prior to acceptance, will be listed on the reverse of DD Form 1354. The Corps will be responsible for action with the contractor for correction of all deficiencies listed on the reverse of DD Form 1354 at the earliest practicable time. However, the transfer of accountability for the facility will not be delayed pending such correction.

8. All necessary parts lists and maintenance and operating manuals and instructions, and all warranties and guaranties required by the conract specifications, will be delivered to the USPOD at the time of transfer of accountability for the facility to the USPOD. The Corps will make all necessary arrangements for, and will conduct all inspections and operational tests of the fixed mechanization and other equipment in the facility, notifying the USPOD well in advance of the dates set for such inspections and tests so that USPOD personnel may be present. The Corps will contract for and will take necessary action with the contractor for accomplishing the training of USPOD personnel in the operation and maintenance of the building and the fixed mechanization. Such training will be scheduled so as to be completed in time for the USPOD's assumption of the operation and maintenance of the building and the fixed mechanizaiton, respectively. The USPOD will assume the operation and maintenance of the fixed mechanization after successful completion of the operational tests. The Corps will schedule these tests to commence before or concurrenly with the USPOD's