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5. Confirming previous information, the Corps is responding to individual request by USPOD (e.g., DeRussy, Kearny, Memphis) and is preparing to undertake accomplishment of the overall Postal Public Building Program. The development of the Corps organization and plans for management should consider the following factors:

a. Immediate response. b. Establishment of a Class II activities (Not to be named a Division). c. Maximum use of existing Corps organizational elements (OCE and Field).

d. Assign work to both military and civil districts.

e. On-going projects (less than 50% complete), projects under design, and projects to be designed, will be assigned to Corps.

f. Central Postal Service support element to include appropriate capability for:

(1) Management & Control.
(2) Liaison/Interface.
(3) Design Development.
(4) Construction Execution.

(5) Planning and Program. Mr. CONSTANDY. In your statement Mr. Ahart, we come to the March 11 agreement, consisting of a four-page agreement that was signed by Secretary of the Army Resor and the Postmaster General on March 11, 1971. As can be seen, this is an umbrella-type document which covers the basic subjects detailed in the longer memorandum of agreement signed the same day. Why there were two, we do not know.

I have asked one of the staff members to review the briefing on that same day, March 11, 1971, by the Postmaster General before the Post Office and Civil Service Committee in the House of Representatives to see whether there was any discussion or revelation as to the existence of a long agreement and I feel safe to say there was not.

I call attention to the page 2 section on policy.

The Chief of Engineers will perform real estate, design, and construction services in the acquisition of postal facilities as requested by the Post Office Department. Public announcements and congressional liaison will be the exclusive responsibility of the Post Office Department.

May we make that exhibit 15?
Mr. Wright. Without objection, this will become exhibit 15.
(The document follows:)

EXHIBIT 15 MEMORANDUM OF AGREEMENT BETWEEN THE Post OFFICE DEPARTMENT AND THE

DEPARTMENT OF THE ARMY PROVIDING FOR POSTAL FACILITIES ACQUISITION SERVICES

1. INTRODUCTION

1. This Memorandum of Agreement outlines responsibilities and areas of interest under which the Chief of Engineers, under the supervision of the Secretary of the Army, will furnish as requested by, and to, the United States Post Office Department (USPOD) and its successor, the United States Postal Service, the following services in connection with the acquisition of postal facilities: (a) real estate, (b) design and construction, and (c) administration of contracts required to carry out (a) and (b) above.

2. The Chief of Engineers is designated as the Department of the Army rep resentative for all matters pertaining to the acquisition of postal facilities for USPOD.

3. The Chief of Engineers and the USPOD will develop a working agreement implementing the responsibilities and areas of interest covered by this Memorandum of Agreement; the working agreement will be consistent with the rela2. The Chief of Engineers will designate the Contracting Officer and the Corps activity to perform the services in connection with each project.

tionships and principles set forth herein. Further, representatives of the Chief of Engineers and the USPOD will develop such implementing procedures as are necessary.

II. POLICY

The Chief of Engineers will perform real estate, design, and construction services in the acquisition of postal facilities as requested by the USPOD. Public announcements and Congressional liaison will be the exclusive responsibility of the USPOD.

III. CONTRACTURAL SERVICES 1. In entering into and administering contracts for real estate and the design and construction of facilities, the Corps will follow its civil works procedures to include the handling of claims and disputes.

IV. OPERATING PROCEDURES USPOD requests for real estate, design, and construction services will be in writing. The request will include the scope of the services desired, project funding and scheduling limitations, and the project design sttandards and criteria. A. Real estate.

The Corps will furnish all real estate services as requested in writing by the USPOD. In connection with site acquisition, USPOD will designate the real estate and the real estate interest to be acquired. B. Design.

The Corps, either with its own forces or through an Architect-Engineer (A-E), will prepare all drawings, technical specifications, and other construction contract documents necessary for the completion of the projects. C. Construction.

Subject to the provisions of the working agreement to be developed by the Chief of Engineers and the USPOD, the Corps' Contracting Officers will enter into and administer the construction contracts, issue change orders, execute supplemental agreements, decide disputes, and take all other necessary and appropriate actions to assure the successful completion of the projects.

V. BUDGET AND FINANCE

The costs of design, construction, site selection, or real estate acquisition or other real estate services undertaken by the Corps at the request of the USPOD will be funded by USPOD on the basis of total project costs, including costs of settling contractor claims and disputes arising under the provisions of the contracts. For this purpose, project costs are the customary charges which include applicable engineering and design services and construction expenses, whether by contract or hired labor, costs of supervision and inspection of construction, support costs, costs of settling contractor claims and disputes, and, in addition, include the costs attributable to the acquisition of real estate. Labor costs include surcharge rates established to cover employees' leave and government contributions for insurance, health benefits, and retirement.

VI. AMENDMENT AND TERMINATION

1. This Agreement will continue in effect for a period of three years following its effective date, and thereafter as may be agreed by the parties. This Agreement may be modified or amended by written agreement between USPOD and the Department of the Army.

2. In the event circumstances are such that either USPOD or the Department of the Army deems it necessary or desirable to terminate this Agreement before completion of any services initiated hereunder, USPOD and the Department of the Army will consult in advance of such termination date sufficiently in advance so that the parties may make personnel and other adjustments in their operations in light of such termination.

VII. EFFECTIVE DATE

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

Post OFFICE DEPARTMENT,
By BLOUNT,

Postmaster General.

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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 h, 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:)

а

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 obligation 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 subinission 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 under stood 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.

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