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Though the Architect's Annual Report was not printed for the years 1947-75, the data it provides was reported by each of the division heads and Superintendents in their individual and separate reports. By compiling those reports in one booklet in the same order as the appropriations for those divisions appear in the Legislative Branch Appropriations Bill, it was intended that useful comparisons of actual accomplishments with the intended programs funded by the Appropriations bill could be facilitated. Further, the Architect had found the printed reports for years prior to 1947 very useful in analysis and justification for present programs, and determining historic chronology of new construction and subsequent modifications to all of the buildings on Capitol Hill. While the 1947-75 individual reports on file are less convenient for reference, it was not felt to be practicable to edit and publish so many reports so long after the fact; hence the selection of 1976 as the reinstatement year was somewhat arbitrary and related to the available staff time.

The information provided in the report serves also as an additional management tool in analyzing cost control, preventive maintenance and other similar administrative procedures. Compiling the various submissions in one document enables all personnel in property and other management areas, to review the information from others with similar concerns.

ALLEGED THEFTS AT HOUSE OFFICE BUILDING ANNEX NO. 2

Mr. BENJAMIN. I am going to run to vote, but before I do, let me give you something to reflect on.

On November 27, 1978, large-scale thefts from House Annex No. 2 were publicly reported and 36 skilled craftsmen were discharged, none of whom were among the regular employees of the Architect's office. The discharge was labeled a reduction in force because criminal charges could not be proved. Security was apparently intensified. The investigation began eight months previously, when a worker reported that he personally helped build consoles for oyster boats in one of the carpenter shops of the Architect. The FBI conducted the investigation.

Did the Capitol Police participate in the investigations who provided security during the time of the thefts? The work was done inhouse. Didn't any management personnel know about the thefts? How could consoles for oyster boats be constructed in the Architect's carpenter shop without management knowing?

If you will reflect on that, I will return.

Mr. WHITE. All right.

[Brief recess to vote.]

Mr. BENJAMIN. Mr. White, you may proceed.

Mr. WHITE. I have some information about the strike that you mentioned, Mr. Chairman.

Mr. BENJAMIN. Why don't we respond to the last question and then do that?

INVESTIGATION OF THE ALLEGED THEFTS

Mr. WHITE. Certainly. The FBI did make its investigation, as you know. How someone could be doing that without being immediately detected is a question for which I have no answer. People deciding on a mission, I guess, find a way to do that. When it became apparent, of course, we immediately instituted more secure control measures. I think it is appropriate normally to presume that people are honest. When you discover that they are not, then you have to begin to change the way in which you conduct your affairs. The Capitol Police were involved, as a matter of fact, and could find no hard evidence at that time-

Mr. BENJAMIN. Did they conduct the initial investigation?
Mr. WHITE. Prior to the FBI coming in, yes.

Mr. BENJAMIN. When did the Capitol Police start its investigation?

Mr. WHITE. I think there was some indication that there may be trouble there several months-I can't remember the exact length of time-but several months prior to the FBI coming in. The Capitol Police didn't seem to detect anything substantive and, of course, their jurisdiction is only local. The FBI went considerably beyond this locality in order to make determinations, into Maryland and, I guess, Virginia and other places, which is something our Capitol Police couldn't do. So I think there was some problem of that nature.

Mr. BENJAMIN. When this building was acquired, you had joint security there initially, didn't you, with the FBI and Capitol Police, and then the Capitol Police took over?

Mr. WHITE. That is correct.

Mr. BENJAMIN. How many people did they have stationed there? Mr. WHITE. I can't answer that, Mr. Chairman. We could provide it for the record.

[The information follows:]

There are 27 Capitol Police assigned to the security of HOBA No. 2. Eight privates and one officer work on each of three shifts.

Mr. BENJAMIN. But you are a member of the Capitol Police Board.

Mr. WHITE. That is right, but I am not involved in the daily operation. I would guess there would probably be a half dozen or so guards in total, one at either door, and there is a guard in the dock

area.

Mr. BENJAMIN. That is 24 hours a day.

Mr. WHITE. Yes.

STOLEN BUILDING MATERIALS

Mr. BENJAMIN. What did they steal that you know of?
Mr. WHITE. Building materials, primarily.

Mr. BENJAMIN. Wasn't there some mention of air conditioners, too?

Mr. WHITE. I am not sure whether that is true. There was mention of that, but I am not sure. Many of those air conditioners, if not all of them, were window units we had removed from the building.

Mr. BENJAMIN. They had some value.

Mr. WHITE. They would have had some value.

Mr. BENJAMIN. It wouldn't have been a theft otherwise.

Mr. WHITE. That is right. But some of those were being disposed of in the regular way by declaring them surplus or scrapping them. or whatever. So it wasn't clear, at least the report to me was that it wasn't clear whether there was actual theft of those or whether they were just being hauled out in the normal course of affairs and someone presumed they were being stolen.

Mr. BENJAMIN. In the course of either the Capitol Police investigation, the FBI investigation, or the investigation by your appropriate division, which I assume would be the construction manage ment division, was there any determination made of the magnitude of the thefts, particularly of construction material?

Mr. WHITE. There was a guess made by the FBI.
Mr. BENJAMIN. What was the guess?

Mr. WHITE. It was something in the order of magnitude of $100,000, if you added it all together over a period of years, that is my recollection of what I was told. There was no written report, Mr. Chairman.

INTENSIFIED SECURITY

Mr. BENJAMIN. The newspaper account said the security was intensified thereafter. It is just inconceivable to me, if you have guards there, you could walk out with the building material. I presume in an office building, you could walk out with some supplies, but how do you walk out with building materials?

Mr. WHITE. There are trucks moving in and out of a construction site all the time, bringing materials in and out.

Mr. BENJAMIN. Isn't that part of your management, that you have a receipt for these goods; you have somebody on the spot that actually is an employee of the Architect's office?

Mr. WHITE. Yes.

Mr. BENJAMIN. I would assume that person could tell whether you received that which was invoiced and certainly determine if they are also carrying something out.

Mr. WHITE. Well, receiving what was invoiced is much easier than carrying something out, especially when it is being done by in-house people, people working there on a daily basis and who perhaps are legitimately removing materials to be taken to another site or to be delivered around to the other side of the building, or something of that nature.

Mr. BENJAMIN. This job was not one that was let out to a contractor. It was an in-house job, so the supervisory personnel were used, and until somebody blew the whistle, you are telling me your own supervisory personnel didn't know anything about it. Mr. WHITE. That is my understanding.

Mr. BENJAMIN. And even though this fellow alleges that he was building consoles for oyster boats in your carpenter shops, your people didn't know anything about it.

Mr. WHITE. Well, that is what I am told.

Mr. BENJAMIN. Yet when it came time to discharge, you discharged the temporary personnel but apparently nothing was done to your people.

Mr. WHITE. When you say my people

Mr. BENJAMIN. I am talking about the permanent employees that provide the supervision.

Mr. WHITE. That is right; we could find no evidence; none was brought to me by either the FBI or the Capitol Police that there was any involvement of those people except neglect-that there was any criminal involvement.

STANDARDS OF SUPERVISION

Mr. BENJAMIN. Doesn't neglect border on incompetence?

Mr. WHITE. Well, I suppose one could say that, depending upon the judgment one would make in terms of an individual in his other capacities. If you have a very good supervisor, for example,

who presumes honesty, let's say, on the part of the people working for me and is deceived thereby, is that neglect?

Mr. BENJAMIN. That supervisor would have to be possessed of a hearing and visual impairment not to be able to analyze that there were materials going out, particularly when you know on construction jobs that you lose track of things. Everybody knows that. Mr. WHITE. Well, that may be, that is true; it may be that a higher standard should have been expected of him. I made the judgment that it was not neglect to the point of dismissal. Perhaps my judgment was inappropriate.

Mr. BENJAMIN. Was there any analysis of the personnel involved when you made that judgment, or was that a sweeping judgment? Mr. WHITE. No, there was discussion, as a matter of fact, discussions that I had with the FBI concerning the supervisory personnel. Because my initial reaction was similar to yours: how can this happen without your knowing it?

Mr. BENJAMIN. Except that probably my subsequent reaction would be different than yours?

Mr. WHITE. Perhaps. It may be that my judgment was too compassionate, but I tend to be that way.

JAMES MADISON BUILDING CONTRACTS

Mr. BENJAMIN. The James Madison Library Building is apparently nearing completion. Was this a fixed price contract?

Mr. WHITE. Yes.

Mr. BENJAMIN. What was the price of the contract?

Mr. WHITE. Do you mean of the phase now under construction? Mr. BENJAMIN. Now. Are all the contracts involved in the James Madison Building fixed contracts?

Mr. WHITE. Yes.

ADDITIONAL COSTS

Mr. BENJAMIN. Then if there are changes or unforeseen circumstances, then you pay extra; is that right?

Mr. WHITE. That is correct.

Mr. BENJAMIN. And that is one of the dangers of doing a fixed price contract, right?

Mr. WHITE. Yes; but I am not sure you can avoid additional costs for additional work, no matter what kind of a contract you have. Mr. BENJAMIN. The total for the initial contract, what was the total for those?

Mr. WHITE. One hundred six million eight hundred sixteen thousand and nineteen dollars.

Mr. BENJAMIN. And how much do you have in excess at this point?

Mr. WHITE. The figure I gave you includes the additional costs to date, Mr. Chairman.

Mr. BENJAMIN. What were the primary contracts for? Is this both interior and exterior?

Mr. WHITE. Yes.

Mr. BENJAMIN. It involves the total Architect's fund?

Mr. WHITE. Yes.

Mr. BENJAMIN. Does it include land acquisition?

Mr. WHITE. No.

Mr. BENJAMIN. This is just the capital improvements?

Mr. WHITE. That is right; it does not include furniture or furnishings, but it includes equipment.

Mr. BENJAMIN. The only things it does not include is the furniture and furnishings that will not be in your budget, but will be in the Librarian's budget?

Mr. WHITE. That is correct. We apparently will have to supply the detail for the record.

Mr. BENJAMIN. Supply this for the record: the primary contracts and any additions to the primary contracts and any outstanding claims you have not recognized as such and give us a projected total cost.

Mr. WHITE. We will be glad to furnish that for the record.

Mr. BENJAMIN. And for that which is in excess of the primary contract we would like an explanation of why that cost is incurred. Mr. WHITE. We will be happy to supply that.

[The information follows:]

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