SECTION 208-PUBLIC LAW 812, 76тH CONGRESS, APPROVED OCTOBER 9, 1945 "SEC. 208. (a) The Architect of the Capitol is hereby authorized and directed to carry into effect for the House of Representatives, and to exercise the authorties contained in the resolution of the House of Representatives numbered 34% adopted September 5, 1940, and any other resolution of such House amendatory thereof or supplementary thereto hereafter adopted. Such authority and director shall continue until the House of Representatives shall by resolution otherwis order. "(b) There is hereby established with the Treasurer of the United States a special deposit account in the name of the Architect of the Capitol for the Hou of Representatives Restaurant, into which shall be deposited all sums receive: pursuant to such resolution or resolutions and from the operations thereund and from which shall be disbursed the sums necessary in connection with ti exercise of the duties required under such resolution or resolutions and the operations thereunder. Any appropriation hereafter made from the Treasury of the United States for such restaurant shall be a part of the appropriation 'Continge Expenses, House of Representatives, Miscellaneous Items', for the particular fiscal year involved and each such part shall be paid to the Architect of the Cap by the Clerk of the House of Representatives in such sum as such appropriatio or appropriations shall hereafter specify and shall be deposited by such Archite in full in such special deposit account. "(c) Deposits and disbursements under such special deposit account (1) sh) be made by the Architect, or, when directed by him, by such employees of t. Architect as he may designate, and (2) shall be subject to audit by the Genera Accounting Office at such times and in such manner as the Comptroller Genera may direct: Provided, That payments made by or under the direction of th Architect of the Capitol from such special deposit account shall be conclusive upon all officers of the Government. "(d) The Architect, Assistant Architect, and any employees of the Archite designated by the Architect under subsection (c) hereof shall each give bond is the sum of $5,000 with such surety as the Secretary of the Treasury may approve for the handling of the financial transactions under such special deposit account Mr. YATES. These indicate the authority of the Architect of the Capitol to run the House Restaurants. There will also be added, without objection, the letter of the Honorable George W. Andrews, dated May 22 of this year to the Honorable J. George Stewart, Architect of the Capitol, indicating the decision of this subcommittee to go into this question. (Letter follows:) Hon. J. GEORGE STEWART, Washington, D.C. HOUSE OF REPRESENTATIVES, DEAR MR. ARCHITECT: You will recall that early in April this subcommitt had considerable discussion with you and your associates on the fiscal budget request for financing the rapidly escalating losses incurred in operatiza the food service facilities under the House of Representatives, including t question of exploring the possibility of leasing the facilities for operation u concession. The question was discussed further in executive markup sessions and movsequence, the subcommittee today decided to postpone action on the item uzl the matter could be explored further. I was directed by the subcommittee t appoint a special subcommittee for the purpose, and I have today designated Hon. Sidney R. Yates and Hon. Mark Andrews to seek the cooperation of yo and others to this end. The time schedule for concluding the matter is such that we will need to mo with some expedition, and we will much appreciate your cooperation. With every good wish. Sincerely, GEORGE W. Andrews, Chairman, Subcommittee on Legislative Appropriations PRELIMINARY PROSPECTUS SENT TO VARIOUS PRIVATE FOOD SERVICE FIRMS Mr. YATES. Pursuant to the instructions of this committee, the Architect of the Capitol communicated with various operators of restaurants and suppliers of food to determine whether they would be interested in reviewing the operations of the restaurants and offering suggestions under which they might wish to operate the House restaurants and to receive any proposals they might care to offer. The tentative prospectus and invitation of the Architect of the Capitol, dated May 23, sent out to such operators and suppliers, will be inserted in the record at this point. (Letter follows:) ARCHITECT OF THE CAPITOL, OPERATION OF THE RESTAURANT FACILITIES, HOUSE OF REPRESENTATIVES, WASHINGTON, D.C. A subcommittee of the House Committee on Appropriations, having responsibility to recommend funds for operation of the Legislative Branch of the Government, is interested in exploring the possibility of an outside concessionaire operating the House restaurant facilities. The restaurants are now operated by the Architect of the Capitol as an agent of the House of Representatives. Present restaurant employees are personnel of the House of Representatives (U.S. Government employees). The primary purpose of the subcommittee is to determine whether the restaurants can be satisfactorily run by outside management-if possible-without an operating deficit. The subcommittee has directed that the Architect of the Capitol invite several established firms and/or nonprofit organizations to review the operations of the restaurants and to submit promptly their tentative proposals if they are interested in operating the House restaurant facilities. You are invited to submit such a proposal. It is to be understood that any proposal submitted will be of a tentative nature and will not be binding on either the firm submitting it or the Government, but we do expect that proposals will be as complete, accurate, and meaningful as the time permits. Important: Your proposal should be delivered to this office as soon as possible, but not later than Tuesday, June 4, 1968. During the same week, the subcommittee will no doubt wish to meet with those firms who are interested in operating the House eating facilities. The restaurant facilities consist of the following: In the Capitol: Main restaurant, House side, located in rooms H-117, H-118, H-119, Members' private dining room, in rooms H-130 and H-131. Cafeteria-coffee shop, room HB-9 and adjoining areas used for kitchen, etc. Other rooms are used from time to time for special luncheons, breakfasts, etc. In preparing tentative proposals, firms should make the following assumptions: The Government will furnish (without cost to the firm) subject to any limitation on funds that may be fixed by the Congress for such purposes All fixed and movable equipment and facilities, other than building changs as may be mutually agreed to be necessary to efficient operation and contra of the food service and related functions; Maintenance, repair, and replacement of such fixed and movable equipment facilities; Space for operations within the House Office Buildings and the Hou side of the Capitol (the space now used for such purposes); Cleaning of walls, windows, electric light fixtures, and all necessary broom. cleaning, scrubbing, mopping, and polishing of floors in dining room areas Heat, air conditioning, gas, light, hot and cold water, steam, electr current, local telephone service, sewage disposal facilities, garbage d posal service and facilities; Use of the expendable equipment owned by the House restaurant on th effective date of the contract; and Inventories of food on hand at the time of the effective date of the contract The firm will furnish (without cost to the Government) — Proper food and related services including the sale and dispensing f food, ice cream, candy, gum, nuts, nonalcoholic beverages (beer may b sold), tobacco products, and such other products as may be permitted the Government to be sold within locations detailed herein, including vendin. machines in the locations now used for that purpose or as may be approves hereafter by the parties hereto. Such service shall be provided during ste periods as the agent of the House of Representatives may determine, Expendable equipment such as china, crockery, glass and tableware and kitchen utensils, as they become worn, broken, used, lost, or otherwis disposed of, up to the amount supplied by the Government on the ef tive date of this contract and any additional expendable equipment requires in the operation of the facilities; Inventories of food, expendable equipment, paper goods, and cigar start merchandise shall be maintained so that on the date of expiration of the contract the value of such items shall not be less than the value of suct items made available by the Government to the contractor. Any deficienc" in the value of these items upon the termination of the contract will te paid to the Government by the contractor as a part of the final settlement; Carry public liability, products liability, and property damage insurare || protecting and insuring the Government and the contractor, in such exte panies and within such limits as may be mutually agreed upon; carry workmen's compensation insurance in the amount required by law; Compliance, with respect to licenses and taxes, with all statutes, ordinare and regulations of all Federal, State, county, and city governments and of a** of the departments or bureaus thereof, applicable to carrying on of its bus. under this contract and will secure all necessary licenses and permits that s be required; and Keep at its principal office accurate records of all receipts, costs, and ċbursements of business carried on hereunder and such records shall be ava.... ble for inspection by the agent of the House of Representatives and or General Accounting Office; and such agent and the General Accounting (fshall have the right to have an audit made thereof without expense to contractor at such times as they may determine. Within a reasonable to after the close of each 6-month period, the contractor shall furnish to the ac of the House statements of all receipts, costs, and disbursements of bus conducted by it hereunder. Such statements will include, to the 5practicable, breakdowns reflecting the financial results of the business 2 ducted, on the basis of the separate facilities. All such records shall be se file by the contractor for a period of 2 years, during which time the agen the House, the General Accounting Office, and their representatives, have the right at any reasonable time to inspect and examine all papers. vouchers, invoices, records, books of account and sales slips, and the cont will freely lend its own assistance to making such inspections, examitate and audits. The following information is also furnished for consideration of all interest parties: The subcommittee has in mind providing essentially the same services " House of Representatives as now provided. The subcommittee would wish the quality of the service and food be mainta at least at the existing level. Menu prices would probably be subject to negotiation with the agent vé2 House of Representatives. Current menu prices are available. A performance bond would be required. No liquor could be sold. Beer is sold in certain facilities. The subcommittee would wish to know what wage schedule or wage policy the contractor would intend using. The subcommittee would wish to know to what extent the contractor would continue to use existing personnel. All restaurant personnel, after the effective date of the contract, would be personnel of the contractor and not personnel of the House of Representatives. The contract would probably be made for 1 year, with provision for extension. The Government would reserve the right to terminate the contract by giving the contractor 60 days' notice in writing. It is not possible to determine the effective date of the contract at this time. There are certain standard general provisions, not detailed here, that would be made a part of the contract. Due to space limitations and other structural considerations, it is assumed operation of the restaurants will be continued under the present physical building layouts-for example, the kitchen for the restaurants in the Capitol is located on one floor and the dining facilities on another floor. Operating expenses (including salaries and wages, employee benefits, laundry, china, etc.): 1964 Estimated for 1968: Total sales___ Food sales_. Net loss. NOTE. The years shown refer to fiscal years. 1, 700, 000 1, 447, 000 350,000 |