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IMPACT OF POSTAL BUILDING PROGRAM

ON FEDERAL AGENCIES

(92-13)

HEARINGS

BEFORE THE

OF THE

SUBCOMMITTEE ON
INVESTIGATIONS AND OVERSIGHT.
1.5. Congress House

COMMITTEE ON PUBLIC WORKS.
HOUSE OF REPRESENTATIVES

NINETY-SECOND CONGRESS

FIRST SESSION

JULY 13, 14, 15, 20, AND 22, 1971

Printed for the use of the Committee on Public Works

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1971

68-528

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1971a

JOHN A. BLATNIK, Minnesota, Chairman ROBERT E. JONES, Alabama

WILLIAM H. HARSHA, Ohio JOHN C. KLUCZYNSKI, Illinois

JAMES R. GROVER, JR., New York JIM WRIGHT, Texas

JAMES C. CLEVELAND, New Hampshire KENNETH J. GRAY, Illinois

DON H. CLAUSEN, California FRANK M. CLARK, Pennsylvania

FRED M. SCHWENGEL, Iowa ED EDMONDSON, Oklahoma

M. G. (GENE) SNYDER, Kentucky HAROLD T. JOHNSON, California

ROGER H. ZION, Indiana W. J. BRYAN DORN, South Carolina

JACK H. MCDONALD, Michigan DAVID N. HENDERSON, North Carolina JOHN PAUL HAMMERSCHMIDT, Arkansas RAY ROBERTS, Texas

CLARENCE E. MILLER, Ohio JAMES KEE, West Virginia

WILMER D. MIZELL, North Carolina JAMES J. HOWARD, New Jersey

JOHN H. TERRY, New York GLENN M. ANDERSON, California

CHARLES THONE, Nebraska
PATRICK T. CAFFERY, Louisiana

LAMAR BAKER, Tennessee
ROBERT A. ROE, New Jersey
GEORGE W. COLLINS, Illinois
TENO RONCALIO, Wyoming
NICK BEGICH, Alaska
MIKE MCCORMACK, Washington
CHARLES B. RANGEL, New York
JAMES V. STANTON, Ohio
BELLA ABZUG, New York

PROFESSIONAL STAFF
RICHARD J. SULLIVAN, Chief Counsel
LLOYD A. RIVARD, Engineer-Consultant

LESTER EDELMAN, Counsel
CARL H. SCHWARTZ, Jr., Consultant-Projects and Programs

JAMES L. OBERSTAR, Administrator
CLIFTON W. ENFIELD, Minority Counsel
RICHARD C. PEET, Assistant Minority Counsel
GORDON E. WOOD, Minority Professional Staff Assistant

STAFF ASSISTANTS

DOROTHY A. BEAM, Executive Staff Assistant

ERLA S. YOUMANS, Minority Executive Staj Assistant
MERIAM R. BUCKLEY

TOBY J. STEIN
STERLYN B. CARROLL

CYNTHIA J. VAN SANT
WILLIAM M. CORCORAN
RUTH S. COSTELLO

RICHARD C. BARNETT
ROSEMARI E. GAUGHAN

BRENDA G. JONES
PETER R. JUTRO

LINDA L. WILLIAMS
JOSEPH A. ITALIANO, Editorial Assistant
ROBERT F. LOFTUS, Technical Staff Assistant

SUBCOMMITTEE ON INVESTIGATIONS AND OVERSIGHT

JIM WRIGHT, Texas, Chairman ROBERT E. JONES, Alabama

JAMES C. CLEVELAND, New Hampshire JOHN C. KLUCZYNSKI, Illinois

WILLIAM H. HARSHA, Ohio KENNETH J. GRAY, Illinois

JAMES R. GROVER, Jr., New York FRANK M. CLARK, Pennsylvania

DON H. CLAUSEN, California ED EDMONDSON, Oklahoma

M. G. (GENE) SNYDER, Kentucky HAROLD T. JOHNSON, California

ROGER H. ZION, Indiana W. J. BRYAN DORN, South Carolina

JACK H. MCDONALD, Michigan JAMES J. HOWARD, New Jersey

JOHN PAUL HAMMERSCHMIDT, Arkansas PATRICK T. CAFFERY, Louisiana

WILMER D. MIZELL, North Carolina ROBERT A. ROE, New Jersey

JOHN H. TERRY, New York
GEORGE W. COLLINS, Illinois

CHARLES THONE, Nebraska
MIKE MCCORMACK, Washington
CHARLES B. RANGEL, New York
JAMES V. STANTON, Ohio
BELLA ABZUG, New York

WALTER R. MAY, Chief Counsel
JOHN P. CONSTANDY, Assistant Chief Counsel

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EA 23 dec 71

CONTENTS

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General Services Administration:

Rod Kreger, Acting Administrator, General Services Administration;

accompanied by Herman Barth, Deputy General Counsel, General Page

Services Administration --

2, 52

Arthur F. Sampson, Deputy Administrator for Special Projects and

Commissioner of Public Buildings Service, General Services Ad-
ministration; accompanied by Wilbur H. Sanders, Deputy Com-
missioner for Public Buildings Service, GSA; and Herman W. Barth,
Deputy General Counsel, GSA---

321
General Accounting Office:

The Honorable Elmer B. Staats, Comptroller General of the United

States; accompanied by Gregory J. Ahart, Deputy Director, Civil
Division, General Accounting Office; Milton J. Socolar, Deputy
General Counsel, General Accounting Office; and Michael Zimmer-

man, Supervisory Civil Engineer, General Accounting Office--- 113

U.S. Postal Service:

Henry Lehne, Assistant Postmaster General-Facilities, U.S. Postal

Service; accompanied by Frederick Batrus, Assistant Postmaster

General-Engineering and Logistics, U.S. Postal Service; Robert E.

Isaacs, Technical Advisor for_Construction Programing, U.S.

Postal Service; and James H. French, Deputy Assistant General

Counsel, Real' Property and Procurement Division, U.S. Postal

Service

66

Office of Management and Budget:

Richard P. Nathan, Assistant Director of the Office of Management

and Budget; accompanied by Mr. Charles E. Benton, Assistant

Chief of the General Government Programs Division of the Office

of Management and Budget-

265

U.S. Army Corps of Engineers:

Brig. Gen. George A. Rebh, Chief of the Corps of Engineers,

Postal Construction Support Office, Department_of the Army;

accompanied by Woodrow Berge, Director of Real Estate --- 367, 375

LIST OF EXHIBITS

1. GSA and Post Office correspondence relating to projects from which

Post Office withdrawn..

11

2. GSA Lease Construction Legislative Proposal.

44
3. GSA letter to Hon. Carl Albert, Speaker of the House, dated February
12, 1971, with enclosure..

46

4. (a) Letter from Assistant Postmaster General Henry Lehne to GSA

Commissioner Sampson dated February 23, 1971, and Mr. Sampson's

reply dated March 12, 1971. (b) Letter from Mr. Lehne to Mr.

Sampson dated May 5, 1971. (c) Letter from GSA Administrator

Robert L. Kunzig to Director George P. Shultz, Office of Manage-

ment and Budget, dated May 13, 1971. (d) Letter from Mr. Robert

E. Isaacs, Post Office Department to GSA Commissioner Sampson

dated June 17, 1971. (e) Memo by I. E. Friedlander, GSA, dated

June 28, 1971*.

56

5. Account of total real property leased by GSA and Post Office Depart-

57

ment between January 1, 1961 and 1970.--

*Retained in Subcommittee file.

(III)

}

62

95

6. Ten-year statistics of GSA-Public Buildings Service funding-

7. Spread sheet, “Projects From Which the Post Office Has Withdrawn

Its Requirements”

8. Telegram to Rep. Kenneth J. Gray from Mr. R. A. Nack, February 4,

1971..

9. Letter from the Postmaster General dated May 15, 1970, to Mr.

Robert L. Kunzig, Administrator for GSA.

10. Letter of March 27, 1969, from Major General F. J. Clarke, Acting

Chief, U.S. Army Corps of Engineers to Postmaster General Winton

M. Blount..

11. Memorandum dated April 17, 1969, to Hon. Peter M. Flanigan,

Assistant to the President, from Hon. Robert L. Kunzig, Adminis-

trator, GSA.

12. Letter dated September 26, 1970, to Secretary of Defense Melvin R.

Laird, from Postmaster General Blount.

13. Letter dated October 8, 1970, from Secretary of Defense Laird to the

Postmaster General.

14. Copy of Dispotition Form dated October 7, 1970, prepared by Mr.

Barnes, Corps of Engineers*

15. First Memorandum of Agreement between the Post Office Department

and the Department of the Army providing for postal facilities

acquisition services, dated March 11, 1971.-

16. Second Memorandum of Agreement between the Post Office Depart-

ment and the Corps of Engineers providing for postal facilities

acquisition services, dated March 11, 1971.-

17. Corps of Engineers Circular dated March 19, 1971.

18. Memorandum of working agreement between the Post Office Depart-

ment and the Corps of Engineers dated May 20, 1971..

19. Third Memorandum of Agreement between the Post Office Department

and the Corps of Engineers dated June 28, 1971.

20. Instructions issued to employees of the Corps of Engineers by General

George A. Rebh, May 28, 1971.-

21. Brochure compiled by the Corps of Engineers, dated February 12, 1971.

22. May 5, 1971 memorandum from General George A. Rebh, Corps of

Engineers

23. May 28, 1971 Post Office Department Major Facilities Summary

Report*

24. Corps of Engineers memoranda dated May 7, 1971, and May 6, 1971,

in regards to Jacksonville and Fort Lauderdale Post Office Facilities,

respectively-

25. List of 12 comparable projects constructed by the Corps of Engineers

and received by the General Accounting Office-

26. Letter dated June 30, 1971, from Col. Billy B. Geery, Corps of En-

gineers, to Michael Zimmerman, Supervisory Civil Engineers, GA0*-

27. Group of tters having reference to the agreement between the

Department of the Army and the Post Office Department-

28. Group of letters concerning agreement under which Corps of Engineers

will serve as construction agency for Postal Service.-

*Retained in Subcommittee file.

9. Further correspondence concerning the delegation of authority for the Page construction of Postal facilities by GSA--

325 0. Letter to Mr. John Constandy dated May 26, 1971, from Lawson B.

Knott, Jr., former Administrator of GŠA, and letter dated June 3,
1971, 'to Mr. John Constandy from Lawrence F. O'Brien, former
Postmaster General.-

330 31. A partial list of the kinds of facilities in which GSA has been involved in recent years.

337 32. (a) Memorandum of understanding, dated March 17, 1971, prepared

and signed jointly by A. F. Sampson and Henry Lehne concerning
reimbursement for postal service space. (b) Copy of interim agree-
ment between GSA and U.S. Postal Service, July 1, 1971..

---350, 419 33. (a) List of GSA operated buildings proposed for transfer to the Postal

Service. (b) List of Federal Buildings to be transferred to the Postal
Service*

355 34. Letter dated January 13, 1970, from General Raymond, Corps of

Engineers to Mr. James Wilson, Assistant General Counsel for the
Postal Department*.

379 35. Memo (undated) by General Raymond, Corps of Engineers*.

379 MATERIAL RECEIVED FOR THE RECORD GAO memorandum, “Notification of Appropriation Committees of Cost Increases”

118 GAO memorandum, “Agreement-Congressional Liaison".

132 GAO document, Policies and Practices Followed by the Post Office Department in Leasing and Constructing Facilities. -

149 Post Office Department chart, “Comparison of Planned Versus Actual Accomplishments as of May 28, 1971..

255 Corps of Engineers' submission of contract estimated costs at three Florida Air Force facilities.

406 Post Office Department chart, “Major Milestone Status as of May 28, 1971”.

409 APPENDIX A. Memorandum of Understanding Between Postal Service and GSA, dated March 17, 1971---

419 B. Interim Agreement between Postal Service and GSA, dated July 1, 1971.- 419 C. Letter from Chairman Jim Wright to Hon. Winton' M. Blount, July 23, 1971..

424 D. Letter to Representative Jim Wright from Postmaster General Blount,

July 26, 1971, enclosing "Answers from the U.S. Postal Service--- 425 E. Letter to Mr. Lee B. Holmes, Mortgage Bankers' Association of America, from Representative Jim Wright, July 14, 1971.

443 F. Letter to Chairman Jim Wright from Mr. Lee B. Holmes, Mortgage Bankers' Association of America, July 22, 1971.

444 G. Memorandum to Chairman Jim Wright from Sherman S. Willse of subcommittee staff, July 27, 1971..

447

*Retained in Subcommittee file.

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