MURPHY & WISCHMEYER JUNE 23, 1949.-Committed to the Committee of the Whole House and ordered to be printed Mr. DENTON, from the Committee on the Judiciary, submitted the following REPORT [To accompany S. 1296] The Committee on the Judiciary, to whom was referred the bill (S. 1296) for the relief of Murphy & Wischmeyer, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. The facts will be found fully set forth in Senate Report No. 378, Eighty-first Congress, first session, which is appended hereto and made a part of this report. Your committee concur in the recommendation of the Senate. [S. Rept. No. 378, 81st Cong., 1st sess. PURPOSE The purpose of the proposed legislation is to pay the sum of $3,323.90 to Murphy &Wischmeyer, architects, of 911 Locust Street, St. Louis, Mo., in full settlement of its claim against the United States in connection with its architectural-engineering contract, No. WA-1064, dated January 5, 1942, with the Federal Works Agency, for the construction of a defense housing project at East Alton, Ill. STATEMENT The proposed legislation was originally submitted to the Speaker of the House by the Comptroller General. The claimants entered into a contract with the Federal Works Agency for architectural-engineering services in connection with the construction of 200 prefabricated demountable housing units as part of defense housing project No. Ill. 11082, East Alton, Ill. The contract which was executed did not contain a provision limiting the time during which the claimants would be required to furnish field and supervisory services on the project. As this was a material factor in determining the price for which the work would be done, however, it was discussed by the claimants with the contracting officer before the contract was executed, and the claimants were apparently advised by the contracting officer that no prolonged delays were anticipated. Shortly after the contract was executed. the administration of the housing project was transferred, pursuant to Executive Order 9070, to the Federal Public Housing Authority. This agency executed a contract on May 25, 1942. for the construction and erection of the dwelling units which contract specified a completion period of 100 days. The project was, in fact, not completed for nearly a year. The delay was caused principally by a reorganization required under Executive Order 9070 and in part by difficulties in procuring priorities for the materials for the work. As a result it was necessary for the claimants to furnish supervisory services under the contract for a period much longer than was contemplated at the time the contract was executed. The claimants sustained a considerable loss, and have agreed with the General Accounting Office to accept the sum of $3,323.90 in full settlement. * * The Comptroller has written: "* the contractor performed no services in addition to those required under the plain terms of the contract and the claim for additional compensation is not a legal claim which may be adjusted under any appropriation heretofore made. However, in view of all the facts and circumstances connected with the making and performance of the contract, the claim does, in my judgment, contain such elements of equity as to be deserving of onsideration of the Congress. Accordingly, I recommend to the Congress that an appropriation in the amount of $3,323.90 be made for the payment of the claim.' It is the view of the committee that this is a meritorious claim. Attention is invited to the following report and recommendation dated December 22, 1944, from the Comptroller General: The Congress: COMPTROLLER General of the United STATES, Pursuant to the act of April 10, 1928 (45 Stat. 413), I have the honor to make the following report and recommendation concerning the claim of Murphy & Wischmeyer, St. Louis, Mo., for additional compensation to cover certain architectural-engineering services furnished by the said firm in connection with the construction of 200 prefabricated demountable housing units as part of defense housing project No. Ill. 11082, East Alton, Ill., under contract No. WA-1064, dated January 5, 1942, entered into with the Federal Works Agency. Naturally, it was realized by the architect-engineers that the period of time during which they would be required to furnish field and supervisory services on the project was a material factor for consideration in fixing the price for which they would agree to perform the contract. Consequently, the question as to the period of performance of the construction work was discussed with the contracting officer prior to the execution of the contract and that official appears to have advised the architect-engineers that he anticiapted a short period of performance without any prolonged delays. However, the contract as formulated and executed by the parties contained no provision limiting the time of performance but, on the contrary, provided under article 1 thereof that for and in consideration of payment of the amount of $17,830, the contractor would * * * * render such architectural-engineering services as may be required by the Administrator for the construction of the project Also, by the terms of article 2 (e) of the contract if was provided that the contractor would (* * * perform all necessary field engineering, supervision, and inspection during construction.' " On February 24, 1942, the administration of the housing project was transferred to the Federal Public Housing Authority pursuant to Executive Order 9070. Thereafter, on May 25, 1942, the latter agency executed the contract for the construction and erection of the dwelling units which contract specified a completion period of 100 days. However, due to delays resulting principally from the reorganization required under Executive Order 9070, supra, and from difficulties encountered in procuring priorities for the necessary materials for the work, the project was not completed until April 1943. It therefore became necessary for the architect-engineers to furnish supervisory services under their contracts for s much longer period than had been contemplated at the time the contract was executed, thereby sustaining a considerable loss in the performance of the contract, The architect-engineers have agreed to accept the sum of $3,323.90, in full and final settlement of the claim. Under the above-quoted provisions of the contract the architect-engineers agreed to render such services as might be required "for the construction of the project" and "during construction." Furthermore, the contract made no provision for any increase in the contract price in the event the time during which the services would be required to be rendered should be longer than anticipated. Hence, the contractor performed no services in addition to those required under the plain terms of the contract and the claim for additional compensation is not a legal claim which may be adjusted under any appropriation heretofore made. However, in view of all the facts and circumstances connected with the making and performance of the contract, the claim does, in my judgment, contain such elements of equity as to be deserving of consideration of the Congress. Accordingly, I recommend to the Congress that an appropriation in the amount of $3,323.90 be made for the payment of the claim. If the Congress should agree with my recommendation in this matter, it is suggested that the enactment of a statute in substantially the following form will accomplish that purpose: "Be it enacted by Senate and House of Representatives of the United States of America in the Congress assembled, That the Comptroller General of the United States be, and he hereby is, authorized and directed to settle and adjust the claim of Murphy & Wischmeyer on account of the increased costs incurred in the performance of the said firm's architectural-engineering contract No. WA-1064, dated January 5, 1942, with the Federal Works Agency, by reason of unavoidable delays on the part of other contractors in the construction and completion of the defense housing project at East Alton, Ill., and to allow in full and final settlement of the claim the amount of, not to exceed, $3,323.90. There is hereby appropriated the sum of $3,323.90, or so much thereof as may be necessary, for the payment of the said claim." LINDSAY C. WARREN, Comptroller General of the United States. 1st Session No. 892 LABOR-FEDERAL SECURITY APPROPRIATION BILL, 1950 JUNE 23, 1949.-Ordered to be printed Mr. FOGARTY, from the committee of conference, submitted the following CONFERENCE REPORT To accompany H. R. 3333] The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 3333) making appropriations for the Department of Labor, the Federal Security Agency, and related independent agencies, for the fiscal year ending June 30, 1950, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the Senate recede from its amendments numbered 9, 10, 12. 13, 15, 19, 26, 29, 35, 36, 37, 38, and 40. That the House recede from its disagreement to the amendments. of the Senate numbered 1, 2, 3, 4, 5, 6, 7, 8, 16, 17, 18, 20, 27, and 28, and agree to the same. Amendment numbered 11: That the House recede from its disagreement to the amendment of the Senate numbered 11, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $1,975,600; and the Senate agree to the same. Amendment numbered 14: That the House recede from its disagreement to the amendment of the Senate numbered 14, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $16,600,000; and the Senate agree to the same. |