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Mr. MALETz. May I ask you a few questions, and then I am sure
that the committee will be delighted to have the explanation. I just
want, if I may, to show you a copy of the contract and ask you whether
it is a true and accurate copy of the contract ?

Mr. STROBEL. Right.
Mr. MALETZ. And you signed the contract; did you?
Mr. STROBEL. Right.

Mr. MALETZ. Now, could you tell the committee why you did not
disqualify yourself from negotiating a contract with Robert & Co.,
in view of the private business relationships between Robert & Co.
and Strobel & Salzman?

Mr. STROBEL. Well, Mr. Chairman, I would like to explain the
development of that contract. We are talking about plans

Mr. MALETZ. Excuse me.
Mr. Chairman, may I offer this contract in evidence?
(The contract referred to is as follows:)


Negotiated contract number



Contract architect: Robert & Co. Associates
Name of project: United States Public Health Service, Communicable Disease

Location: Atlanta, Ga.
Project number: 4GA-02
Fee: $24,240


Article No.
Abandonment, Deferment, or Termination.


Covenant Against Contingent Fees.



Examination of Records.

Fee and Payment-


Nondiscrimination in Employment.

Officials Not to Benefit_



Scope of Services_

Services Furnished by Government-


On this 29th day of September, 1955, the United States of America (herein
called the Government), acting by and through the Administrator of General
Services, represented by the Commissioner of Public Buildings Service, General
Services Administration (herein called the Commissioner), and the firm of Robert
and Company Associates, a corporation incorporated under the laws of the State
of Georgia and having its principal offices at 96 Poplar Street NW., Atlanta 3,
Georgia (herein called the Contract Architect) agree as follows:


The project is identified as follows:
Name: United States Public Health Service, Communicable Disease Center.
Location: Atlanta, Georgia.

Project Number: 4-GA-02.

This project is a research laboratory, plans and specifications for which were
prepared by Roberts and Company Associates under Contract WAlbp 6270, dated
April 14, 1950.

69220–55- -6

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Work under this contract will consist of the following modifications and additions to the present plans and specifications:

(1) The air conditioning of the un-air-conditioned portion of Building No. 1, including air-conditioning machine room above present fan room in the court;

(2) The provision of animal house and runs on roof of Building No. 5; (3) One additional elevator for Building No. 3;

(4) The addition of a bay on the north end of Building No. 6 for the accommodation of an emergency generator set;

(5) A stand-by generator; and
(6) The provision for automatic operation of elevators in all buildings.


The Contract Architect shall perform all professional services necessary for planning, designing and including on present working drawings and in present specifications all items included in Description under Article I. (a) The Contract Architect shall :

(1) Prepare all work under this contract in compliance with applicable state and local building code requirements and shall, if necessary, assist the construction contractor in obtaining permits required by local and state ordinances;

(2) Prepay shipping charges on all charts, sketches, drawings, and documents he sends to the Commissioner; (b) Supervision.-The Contract Architect will not supervise the construction of the project.

(C) Ownership.-All drawings, specifications, and other documents furnished under this contract, shall be the property of the Government.


The Government shall pay the Contract Architect a fixed fee of $24,240.00 which shall constitute full compensation for all services and material outlined in Articles II and V, except as provided in Articles IV and VI.

(a) Payment of the aforesaid amount shall be made when the Commissioner finds that the Contract Architect has satisfactorily completed all the services required.

(b) Prior to the payment the Contract Architect shall furnish the Government with a release of all claims against the Government under this contract, other than such claims as the Contract Architect may except. He shall describe and state the amount of each excepted claim.

(c) The Contract Architect shall have no duties or responsibilities in connection with any furniture or furnishings that are supplied and installed by the Government, and shall receive no compensation on account thereof.


The Commissioner may require the Contract Architect to furnish consulting services beyond those paid for by the fixed fee. If so, the Government shall pay the Contract Architect as provided in this Article: Provided, That the Contract Architect shall not get any per diem fee for consultations about changes or revisions in the drawings or documents that the Commissioner finds are required because of deficiencies for which the Contract Architect is responsible.

The Government shall pay the Contract Architect for consulting services, authorized by the Commissioner, as follows:

(a) If the services are performed in the city where the architectural work is done, at the rate of $35.00 per day.

(b) If the services are performed at any other place, at the rate of $35.00 per day from the time he leaves said city until he returns thereto, together with travel and subsistence expenses in accordance with laws and regulations applicable to Government employees : Provided, That in lieu of actual subsistence expenses, the Government shall pay the Contract Architect not in excess of $12.00 per authorized person for each day in travel status.

(c) If the Contract Architect is a firm or corporation, any of its representatives acceptable to the Commissioner may furnish the consulting services.


Except as provided in Article IV hereof, all travel required to be performed in connection with the services to be rendered under this contract, shall be without additional expense to the Government.


(a) Without additional fee, the Contract Architect shall correct or revise the drawings and documents until the Commissioner approves them in writing.

(b) The Government will pay an additional fee for changes or revisions required by the Commissioner after approval of any material submitted : Provided, That the Government will not pay additional fee for any corrections or revisions (even though required after approval of any material submitted) if the Commission finds that such requirements resulted from deficiencies for which the Contract Architect was responsible.

(c) Such additional fee shall be the actual amount the Contract Architect pays for technical services of engineers, draftsmen, and other technical personnel, and payments required by law. To the total of these payments, there shall be added an amount equal to one and one-half times the total of such payment to cover in full the Contract Architect's supervision, overhead, and profit. The rate the Contract Architect pays for technical services shall not exceed the current rate paid for comparable services in his office, or in other offices in that area.

(a) The Commissioner may change the basic requirements of the project. If, in the opinion of the Commissioner, this requires major revision or abandonment of drawings or other documents, the Government shall pay the Contract Architect for such revisions or for new drawings or documents required to replace those abandoned, an amount to be agreed upon by the parties hereto.


The Government will:
(a) Review all material submitted by the Contract Architect;
(6) Confer with and obtain approvals of occupying agencies;
(c) Duplicate the approved final working drawings and specifications;

(d) Obtain bids, award contracts, approve material samples, and supervise and administer construction of the project.


The Contract Architect warrants that he has read the General Services Administration, Public Buildings Service Handbooks entitled “Instructions to Contract Architects” dated August 1, 1946, and Amendment No. 1, thereto, dated April 1, 1950; also “Drawing Requirements Handbook" dated May 1, 1947. These Handbooks, by reference, are made a part of this contract.


(a) The Commissioner may abandon or indefinitely defer the work at any time he finds it expedient or necessary.

(6) If in the opinion of the Commissioner, the Contract Architect violates any terms or conditions of this contract, or his conduct may jeopardize the Government's interest, the Commissioner may terminate this contract by written notice to the Contract Architect.

(c) If the work is abandoned or deferred or the contract terminated by the Commissioner, the Government shall pay the Contract Architect that proportion of his installment fee that the amount of acceptable work he has actually done on his curren submission of work bears to the whole of that submission. Payment by the Government of such compensation shall be in full and final settlement for all work performed by the Contract Architect. After such payment, all charts, sketches, drawings, and other documents, whether finished or not, shall become the property of the Government.


Except as otherwise provided in this contract, any dispute arising under this contract which is not disposed of by agreement shall be decided by the Commissioner, who shall reduce his decision to writing and mail or otherwise furnish

a copy thereof to the Contract Architect. Such decisions shall be final and conclusive with respect to questions of fact unless within thirty days from the date of receipt of such copy, the Contract Architect appeals therefrom by mailing or otherwise furnishing to the Commissioner a written appeal addressed to the head of the agency. The decision of the Administrator of General Services or his duly authorized representative shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent or capricious or arbitrary or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. Nothing in this “Disputes" clause shall be construed as making final an administrative decision on a question of law. In connection with any appeal under this "Disputes" clause the Contract Architect shall be afforded an opportunity to be heard and to offer evidence in support of his appeal. Pending final decision of a dispute hereunder, including adjudication of any litigation in connection with such decision, the Contract Architect shall proceed diligently with the performance of the contract and in accordance with the Commissioner's decision of any modification thereof which may be made hereunder.

ARTICLE XI. COVENANT AGAINST CONTINGENT FEES The Contract Architect warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except bone fide employees or bona fide established commercial or selling agencies maintained by the Contract Architect for the purpose of securing business. For the breach or violation of this warranty the Government shall have the right to annul this contract without liability or in its discretion to deduct from the contract price or consideration the full amount of such commission, percentage, brokerage, or contingent fee.


No Member of or Delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this contract or to any benefit that may arise therefrom, but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.


(a) The Contract Architect agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after the final payment under this contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the Contract Architect involving transactions related to this contract.

(6) The Contract Architect further agrees to include the following provisions, with appropriate insertions, in all his subcontracts hereunder:

“(Name of Subcontractor) agrees that the Comptroller General fo the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment under prime contract (contract symbol and number) between the United States of America and the Contract Architect, have access to and the right to examine any directly pertinent books, documents, papers, and records of (Name of Subcontractor) involving transactions related to this contract."


In connection with the performance of work under this contract, the Contract Architect agrees not to discriminate against any employee or applicant for employment because of race, religion, color, or national origin. The aforesaid provision shall include, bu not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training, including apprenticeship. The Contract Architect agrees to post hereafter in conspicuous places, available for employees and applicants for employment, notices to be provided by the Commissioner setting forth the provisions of the nondiscrimination clause.

The Contract Architect further agrees to insert the foregoing provision in all subcontracts hereunder, except subcontracts for standard commercial supplies or raw materials.


"Commissioner” as used herein shall include his successor or his authorized representative.

IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year first above written. WITNESSES :

J. H. SIGMAUX, Atlanta, Ga.

By J. W. GREEN, President.



Commissioner of Public Buildings Service. This contract is negotiated under Public Law 152, 81st Congress, approved June 30, 1949, and is authorized by the Acts of July 22, 1954 (Public Law 519, 83d Congress), and August 26, 1954 (Public Law 112, 84th Congress, approved June 30, 1955).

Atlanta, Ga. Communicable Disease Center

Project No. 4GS-02



As required by the following cited section of the Federal Property and Administrative Services Act of 1949 (Public Law 152, approved June 30, 1949), and pursuant to the authority delegated to be by the Administrator of General Services in chapter II, section 201.01 (b) of Manual GS 1, vol. GS 1-2, I hereby determine as follows:

1. In accordance with section 302 (c) (4), that contract GS-00-B-2548 with Robert & Co. Associates is one for professional services.


Commissioner of Public Buildings Service. The CHAIRMAN. Go ahead.

Mr. STROBEL. The project we are talking about is a very large one, expected to cost about $12 million, for a communicable diseases laboratory in Atlanta, Ga. Several years ago Public Buildings Service was given funds to have plans and specifications prepared for quite a number of projects. This was one of them.

I believe these plans were completed something like 3 years ago. They have gone on the shelf ever since.

Now, under the purchase contract law, this project was activated and approved by the Public Works Committee, and is one of the 26 projects that were mentioned the other day.

Even though the plans were completed under contract with the Public Buildings Service at that time by Robert & Co.

Mr. KEATING. You mean the original plans?
Mr. STROBEL. The original plans were completed by Robert & Co.

Mr. KEATING. Long before you had anything to do with the Public Buildings Service?

Mr. STROBEL. Long before I had anything to do with it. And I think their fee at that time was something like $340,000, that is the figure, as far as I can recall it.

Mr. MALETZ. Would the figure be $382,000 ?
Mr. STROBEL. That could be it; yes.

In reactivating this project, the Department of Health, Education, and Welfare wanted some changes and additions made—which is natural, considering that the plans were completed. So, in the makeup of the prospectus for this project there was included an expendi

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