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[Clerk's Note.-The following hearings of June 6 and June 10,

relating to House dining facilities, were conducted by a special subcommittee (Representatives Yates of Illinois and Andrews of North Dakota) appointed by the chairman of the Legislative Subcommittee for the purpose of looking into the operations of the House dining facilities :)

THURSDAY, JUNE 6, 1968.
U.S. HOUSE OF REPRESENTATIVES
House DINING FACILITIES

WITNESSES

J. GEORGE STEWART, ARCHITECT OF THE CAPITOL
PHILIP L. ROOF, EXECUTIVE ASSISTANT
CHARLES A. HENLOCK, ADMINISTRATIVE OFFICER
WILLIAM F. RAINES, JR., ASSISTANT TO THE EXECUTIVE

ASSISTANT
KERMIT COWAN, RESTAURANT MANAGER
BERNARD A. BRADY, GENERAL ACCOUNTING OFFICE

Mr. YATES. We have with us today the gentlemen from the Office of the Architect of the Capitol who have, by virtue of the direction of he Legislative Subcommittee, been conducting a preliminary exploration into the possibilities of having the House dining facilities operated under some satisfactory private concession arrangement.

STATUTE GOVERNING PRESENT OPERATIONS

I think the record should contain at this point a copy of Public aw 812 of the 76th Congress, section 208, and a copy of House Reslution 590, 76th Congress.

H. Res. 590, 76TH CONGRESS, AGREED TO SEPTEMBER 5, 1940 "Resolved, That effective October 1, 1940, until otherwise ordered by the louse, the management of the House Restaurant and all matters connected herewith shall be under the direction of the Architect of the United States 'apitol under such rules and regulations as he may prescribe for the operation nd the employment of necessary assistance for the conduct of said restaurant y such business methods as may produce the best results consistent with ecoomical and modern management.

“SEC. 2. The Committee on Accounts after the close of business September 30, 910, is hereby authorized and directed to transfer to the jurisdiction of the rchitect of the United State Capitol all accounts, records, supplies, equipment, nd assets of the House Restaurant that may be in the possession or under the ontrol of the said committee in order that all such items may be available to the

rchitect of the United States Capitol toward the maintenance and operation of he House of Representatives Restaurant."

Section 208—Public Law 812, 76th CONGRESS, APPROVED OCTOBER 9, 194

“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 author: ties contained in the resolution of the House of Representatives numbered gyil, adopted September 5, 1940, and any other resolution of such House amendatory thereof or supplementary thereto hereafter adopted. Such authority and directie shall continue until the House of Representatives shall by resolution otherw

order.

"(b) There is hereby established with the Treasurer of the United States 1 special deposit account in the name of the Architect of the Capitol for the Ho'lof 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 it exercise of the duties required under such resolution or resolutions and the opitations thereunder. Any appropriation hereafter made from the Treasury of thUnited States for such restaurant shall be a part of the appropriation Conting-1.* Expenses, House of Representatives, Miscellaneous Items', for the particula fiscal year involved and each such part shall be paid to the Architect of the Capita 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 Architer* in full in such special deposit account.

"(c) Deposits and disbursements under such special deposit account (1) shaka be made by the Architect, or, when directed by him, by such employees of tb 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 General may direct: Provided, That payments made by or under the direction of the Arghitect 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 Architect 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, indicatin: the decision of this subcommittee to go into this question. (Letter follows:)

HOUSE OF REPRESENTATIVES,
COMMITTEE ON APPROPRIATIONS,

Washington, D.C., May $$, 1968.
Hon. J. GEORGE STEWART,
Architect of the Capitol,
Washington, D.C.

DEAR MR. ARCHITECT: You will recall that early in April this subcommit: had considerable discussion with you and your associates on the fiscal 1945 budget request for financing the rapidly escalating losses incurred in operating the food service facilities under the House of Representatives, including to question of exploring the possibility of leasing the facilities for operation und concession.

The question was discussed further in executive markup sessions and in cosequence, the subcommittee today decided to postpone action on the item unid. the matter could be explored further. I was directed by the subcommittee 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 yom 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
De inserted in the record at this point.
(Letter follows:)

ARCHITECT OF THE CAPITOL,
Washington, D.C., May 23, 1968.

OPERATION OF THE RESTAURANT FACILITIES, HOUSE OF REPRESENTATIVES,

WASHINGTON, D.C. A subcommittee of the House Committee on Appropriations, having responsipility to recommend funds for operation of the Legislative Branch of the Governnent, is interested in exploring the possibility of an outside concessionaire >perating the House restaurant facilities. The restaurants are now operated by he Architect of the Capitol as an agent of the House of Representatives. Present estaurant employees are personnel of the House of Representatives (U.S. Governnent employees).

The primary purpose of the subcommittee is to determine whether the restauants can be satisfactorily run by outside management--if possible without in operating deficit.

The subcommittee has directed that the Architect of the Capitol invite several stablished firms and/or nonprofit organizations to review the operations of the estaurants and to submit promptly their tentative proposals if they are interested n operating the House restaurant facilities.

You are invited to submit such a proposal. It is to be understood that any Droposal submitted will be of a tentative nature and will not be binding on either he firm submitting it or the Government, but we do expect that proposals will De as complete, accurate, and meaningful as the time permits.

Important: Your proposal should be delivered to this office as soon as possible, ut not later than Tuesday, June 4, 1968. During the same week, the subcommittee vill 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,
H-120.

Members' private dining room, in rooms H-130 and H-131.
Office, room H-129.

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 the Rayburn Building:

Cafeteria.
Buffet room.
Members' private dining room.
Banquet room.

Carryout.
In the Longworth Building:

Cafeteria.

Carryout. In the Cannon Building: Carryout. In preparing tentative proposals, firms should make the following assumptions:

The Government will furnish (without cost to the firm) subject to any limitaion on funds that may be fixed by the Congress for such purposes

All fixed and movable equipment and facilities, other than building changes as may be mutually agreed to be necessary to efficient operation and contr. of the food service and related functions;

Maintenance, repair, and replacement of such fixed and movable equip ment facilities;

Space for operations within the House Office Buildings and the Hous side of the Capitol (the space now used for such purposes);

Cleaning of walls, windows, electric light fixtures, and all necessary bronz 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 din posal service and facilities;

Use of the expendable equipment owned by the House restaurant on to effective date of the contract; and

Inventories of food on hand at the time of the effective date of the contri The firm will furnish (without cost to the Government)

Proper food and related services including the sale and dispensing food, ice cream, candy, gum, nuts, nonalcoholic beverages (beer may tu sold), tobacco products, and such other products as may be permitted i the Government to be sold within locations detailed herein, including vende.. machines in the locations now used for that purpose or as may be approp hereafter by the parties hereto. Such service shall be provided during : periods as the agent of the House of Representatives may determine;

Expendable equipment such as china, crockery, glass and tablews and kitchen utensils, as they become worn, broken, used, lost, or other disposed of, up to the amount supplied by the Government on the effe tive date of this contract and any additional expendable equipment requir in the operation of the facilities;

Inventories of food, expendable equipment, paper goods, and cigar sta": merchandise shall be maintained so that on the date of expiration of t.. contract the value of such items shall not be less than the value of sue items made available by the Government to the contractor. Any deficiene in the value of these items upon the termination of the contract will paid to the Government by the contractor as a part of the final settlemer,

Carry public liability, products liability, and property damage insuran protecting and insuring the Government and the contractor, in such cor 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, ordinane and regulations of all Federal, State, county, and city governments and of ? of the departments or bureaus thereof, applicable to carrying on of its busine under this contract and will secure all necessary licenses and permits that is be required; and

Keep at its principal office accurate records of all receipts, costs, and bursements 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 0 shall have the right to have an audit made thereof without expense tocontractor 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 soof the House statements of all receipts, costs, and disbursements of bus-conducted by it hereunder. Such statements will include, to the extr' practicable, breakdowns reflecting the financial results of the business 0.4-ducted, on the basis of the separate facilities. All such records shall be kept file by the contractor for a period of 2 years, during which time the agent * the House, the General Accounting Office, and their representatives, have the right at any reasonable time to inspect and examine all papers, tam vouchers, invoices, records, books of account and sales slips, and the centrs will freely lend its own assistance to making such inspections, examinatic

and audits. The following information is also furnished for consideration of all interes parties:

The subcommittee has in mind providing essentially the same services to House of Representatives as now provided.

The subcommittee would wish the quality of the service and food be maintat least at the existing level.

Menu prices would probably be subject to negotiation with the agent of House of Representatives. Current menu prices are available.

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