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ENTRANG PERFORDANCE LATING:

DIRECTOR OF PERSONNEL

4. PERSONNEL FOLDER COPY

RO. P. 0.1 1908-23.00

Mr. MALETZ. The main reason for your appointment on April 1 I take it, was to enable you to familiarize yourself with the duties of the Commissioner of Public Buildings!

Mr. STROBEL. That is correct.

Mr. MALETZ. Would you tell the subcommittee what your principal responsibilities are as Commissioner of Public Buildings?

Mr. STROBEL. As Commissioner I am head of the service called Public Buildings Service, which has five basic operations under its jurisdiction. One is the Buildings Management Division, the Real Estate Division, the Design and Conservation Division, the Division for Surplus Real Estate Disposal, and the National Industrial Reserve Division.

Mr. MALETZ. Mr. Strobel, we have a press release issued by GSA on June 14, 1954, announcing your forthcoming appointment as Commissioner. And'if I may, I would like to read just three short paragraphs from that press release summarizing your duties, and ask you whether that is an accurate summary:

The real estate responsibilities which Mr. Strobel assume are customarily measured in 10 figures, exceeding $1 billion,

Major items in the duties of the Public Buildings Service include the parceling out of more than 118 million square feet of floor space among Federal agencies, furnishing operating services to 113.3 million square feet in and out of Washington, D. C., and making necessary repairs and improvements in 103 million square feet in more than 5,500 Federal buildings outside Washington, D. C.

The other important responsibilities include the national industrial reserve with 45 industrial plants, and 9,000 pieces of industrial equipment in the laidaway or operating status; the Government inventory of surplus real property, with an estimated acquisition cost of $209.6 billion at the close of the last fiscal year, and the provision of communications and other public utility services to Federal agencies. In the last fiscal year the Service had in progress, in design, or construction stages, 132 major building projects, estimated to cost $214.2 million.

Is that an accurate summary in general?
Mr. STROBEL. That is basically.
Mr. MALETZ. I offer this press release in evidence, Mr. Chairman.

Mr. STROBEL. The picture changes in size and scope of operation from year to year.

Mr. MALETZ. I offer this document. The CHAIRMAN. It will be accepted. (The document is as follows:)

[For release to morning papers, Monday, June 14, 1954)

GENERAL SERVICES ADMINISTRATION

OFFICE OF PUBLIC INFORMATION AND REPORTS

GSA-275 As the newly appointed Commissioner of the Public Building Service, Peter A. Strobel, Denmark-born consulting engineer and construction executive, will become responsible for the world's largest operation in real-estate management on June 30.

The appointment was announced today by Edmund F. Mansure, Administrator of General Services. The Public Buildings Service is 1 of the 4 operating arms of the General Services Administration which is charged with the management of Federal records, supplies, real property, and expansion of production and purchase of materials for the national stockpile.

Mr. Strobel will succeed W. E. Reynolds whose retirement at the end of June will close 21 years of supervision of the Government's public buildings.

In commenting on the appointment, Mr. Mansure said:

“We are fortunate in being able to enlist the services of Mr. Strobel. His outstanding record in construction and engineering assures economy and efficiency in the complex operations of the public buildings—from new construction on through the day-to-day tasks necessary to keep the buildings in good working condition.

"Let me add that he accepted the post in gratitude for the opportunities the United States accorded him after he came here as a fledgling civil engineer recently graduated from the Royal Technical University of Copenhagen. He has built his successful professional career, in its entirety, in the United States.

"Mr. Strobel is a worthy successor to Mr. Reynolds whose long career has been marked by an exceptional combination of technical skills and loyal devotion to his duties. He has made many valuable contributions to much of the notable public construction of the past 22 years."

At the same time, Mr. Mansure made public a letter to Mr. Reynolds expressing appreciation for his leadership in the design and construction of public buildings. The text is attached.

Mr. Mansure pointed out that the new appointee relinquished all active participation in the management of the consulting engineering firm of Strobel & Salzman, of New York, N. Y. Mr. Strobel makes his home in New Rochelle, N. Y.

The real estate responsibilities which Mr. Strobel will assume are customarily measured in 10 figures exceeding $1 billion.

Major items in the duties of the Public Buildings Service include the parcelling out of more than 118 million square feet of floor space among Federal agencies furnishing operating services to 113.3 million square feet in and out of Washing. ton, D. C., and making necessary repairs and improvements in 103 million square feet in more than 5,500 Federal buildings outside Washington, D. C.

Other important responsibilities include the national industrial reserve, with 45 industrial plants and 9,000 pieces of industrial equipment in the laid-away or operating status; the Government inventory of surplus real property, with an estimated acquisition cost of $207.6 million at the close of the last fiscal year, and the provision of communications and other public utility services to Federal agencies. In the last fiscal year the Service had in progress, in design or construction stages, 132 major building projects estimated to cost $214.2 million,

A biographical outline of Mr. Strobel's career is given below:

Nationally prominent engineer and construction executive. Born in Denmark, May 22, 1901. Came to the United States in 1925. Educated at the Royal Technical University, Copenhagen; master of science in civil engineering, 1925.

Started as structural steel draftsman, becoming successively designing engineer, field inspector, chief engineer, and consulting engineer.

Partner in the firm of Strobel & Salzman, consulting engineers. For the past 25 years has been engaged in major engineering projects throughout the country. Chief structural engineer for New York World's Fair, 1939, Inc.

Chief engineer of James Steward & Co., Inc., designed many large mills and plants, essentially of heavy industrial character, for manufacture of steel, steel tubes, aluminum tubes and other aluminum products, airplaine turrets, and assembly of airplanes.

Engaged in many important projects for the armed services. Invented, de signed, detailed, and supervised erection of portable airplane hangers. Wrote War Department technical manuals on erecting portable hangers. Designed packaging of portable hangars for transport by air. Designed for the Corps of Engineers prefabricated Army barracks, insulated type, for use in field operations.

Developed for the Chief's Office, Corps of Engineers, standard construction drawings and specifications for many types of warehouses and hangars.

Member of a committee reporting to the Atomic Energy Commission on economy in planning and construction of new atomic-energy projects. Shared in construction for atomic research of Nuclear Physics Laboratory and Accelerator Building at Cornell University; and building for the 3-billion electronic volt cosmotron at Brookhaven National Laboratories.

In United States participated in construction of industrial plants, manufacturing plants, and warehouses; material-handling facilities; cement and powerplants; armories; hangers; railroad stations; garages; commercial buildings; shopping centers; hospitals and churches; laboratories and research centers; college and unversity buildings; and apartments and housing.

Typical projects are: Airplane assembly plant, Hagerstown, Md.; 15-story printing, storage, and office building for New York Times; Central State Hospital, Islip, N. Y.; Albert Einstein College of Medicine, Bronx, N. Y.; Sedgwich Houses for New York City Housing Authority; and Westgate Shopping Center, Fairview, Ohio.

Professional services devoted largely to construction within the United States, but has designed military and industrial installations for construction in Argentina, Canada, China, Libya, Saudi Arabia, and Turkey.

Married, has a daughter who is a graduate of Architectural School of Design, Harvard University. Home, New Rochelle, N. Y. Member of the American Society of Civil Engineers; New York Society of Professional Engineers; New York Building Congress; Architectural League of New York (1953 cha an, engineering committee, Architectural League gold medal award); Engineers Club of New York, and New York Association of Consulting Engineers.

GENERAL SERVICES ADMINISTRATION,

June 8, 1954. Mr. W. E. REYNOLDS, Commissioner of Public Buildings, Public Buildings Service,

General Services Administration, Washington, D. C. DEAR BERT: In your retirement from the General Services Administration, we all are acutely conscious that the Federal Government is losing a loyal and outstanding servant. Your contributions are truly genuine, visible, and lasting in value.

In your long career as Commissioner of the Public Buildings Service and its predecessor agency you guided with competence and skill the design and construction of many notable public buildings. They have enriched the Nationin the District of Columbia and in the many cities throughout the land.

The long list of new landmarks contains significant accomplishments in modern architecture. The rare combination of economy, efficiency, new materials, and techniques has rewarded the Government with many fine examples of functional design. Pioneering achievements of outstanding character stand to your credit in the General Accounting Office, the handsome terminal buildings of the Washington National Airport, the United States courthouse, and the Clinical Center of the National Institutes of Health in greater Washington—to name only a few.

These buildings will long attest your leadership during the past 22 years. Now that the hour of your retirement is near, I convey to you, in a very limited way, the recognition which your contributions merit.

May I add a personal word of gratitude for the grand way we have worked together. In particular, my thanks for deferring your retirement for many months while your successor was selected, and had the benefit of your wise consultation in learning the scope of the Public Buildings Service, which has been aptly described as the world's largest operation in real-property management. Cordially yours,

EDMUND F. MANSURE,

Administrator of General Services. Mr. MALETZ. Is it one of your responsibilities as Commissioner to administer the recently enacted lease-purchase program for Federal building construction?

Mr. STROBEL. That is correct.

Mr. MALETZ. Now, would it be correct that the lease-purchase legislation authoritizes Federal building construction to be financed by private investors who will be repaid by GSA thereafter with interest in equal installments like rent in 10 to 25 years?

Mr. STROBEL. That is correct.

Mr. MALETZ. Now, do you, Mr. Strobel, as Commissioner, have responsibility for selecting private architects for Federal building .construction on a negotiated rather than a competitive-bid basis?

Mr. STROBEL. The selection of architects and engineers, in other words, services for professional work, has been judged to be outside the necessity of calling for competitive bidding. And it is therefore done on the basis of selection, and on the basis of qualifications, as I explained in my statement.

The CHAIRMAN. You mean by that that the selection is primarily on a negotiated rather than on a competitive bidding basis?

Mr. STROBEL. That is correct, it is on a selective basis.
Mr. FINE. Mr. Chairman, who promulgated that policy?

Mr. STROBEL. That is an old policy that has been in effect for many years before my time. We have not changed that system at all.

Mr. MALETZ. Isn't it correct that the rules of the architectural and engineering societies require members to negotiate contracts rather than to do business on a competitive-bid basis?

Mr. STROBEL. That is correct. I doubt very much if we asked for competitive bids on architectural service, I don't think we would get any answer.

Mr. KEATING. Anyway architects' charges are quite uniform, aren't they?

Mr. STROBEL. That is correct. Mr. KEATING. More uniform than lawyers! Mr. STROBEL. In that respect we do not argue or trade or negotiate with the prospective architectural contractor about the fee. We have fee curves from which we size up the amount of money a certain project is worth, and we tell these architects, "Take it or leave it"; we do not dicker with them on the money.

Mr. MALETZ. Mr. Strobel, your responsibility in addition to construction under the lease-purchase program applies to construction under other Federal buildings programs; is that correct?

Mr. STROBEL. That is correct.

Mr. MALETZ. Would you tell us how many buildings are to be constructed under the lease-purchase program?

Mr. STROBEL. The lease-purchase program got its start last year by the passing of the public building purchase contract law. We have at the present time 26 projects approved by the Public Works Committees of the House and the Senate. Those projects are approved on an individual basis after they have been approved by the Bureau of the Budget. Those 26 projects amount to a construction cost, I should say upper-limit cost, of $91 million. We expect to submit to the Bureau of the Budget as well as the Public Works Committees projects that will amount to a total of $346 million by the end of this

fiscal year.

Mr. MALETZ. Can you give us an idea of the total fees that you estimate private architects will obtain under this program?

Mr. STROBEL. I would like to answer that this way: That the fee varies in accordance with the type of project and also the size of the project; in other words, the amount of over-all cost of construction. On small projects, that is, projects under a million dollars, I think our fee would be slightly over 4 percent for the services we are asking for. And they are limited to the making of plans and specifications. We ourselves would handle the supervision of construction after contracts have been let. On large projects the fee for that service goes slightly below 4 percent.

So if we are talking about a total of, let's say, $91 million, take an average of 4 percent of that, that would be something like three or four million dollars in architect-engineer fees for those 26 projects. Mr. MALETZ. Now, I would like to ask you about Strobel & Salz

Do you have a partnership arrangement with Mr. Salzman? Mr. STROBEL. It is a partnership.

Mr. Malerz. Would that partnership arrangement have been entered into on January 1, 1952!

man.

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