to comply with the rather involved and extensive Government procurement regulations. These are but a few of many cases where we believe the contractors did not submit to your committee both sides or the question which, of course, is understandable. We would like to urge you to give consideration to these facts in your evaluation of the results of your hearings. Again, I repeat, that we are much concerned that an impression may be gained that will lead to unnecessarily high costs. We know, of course, that you and the members of your committee are equally concerned with this most important project and do not want this to happen. If there is any additional information whatsoever you would like to have on this overall program, or any individual contract, we will be most anxious to furnish it to you. Sincerely yours, JOSEPH V. CHARYK, Under Secretary of the Air Force. Mr. SHEPPARD. I am in receipt of a letter from Senator Aiken enclosing correspondence from Mr. Steele T. Griswold which will be inserted in the record. (The letters follow:) Hon. HARRY R. SHEPPARD, COMMITTEE ON AGRICULTURE AND FORESTRY, U.S. SENATE, January 24, 1961. DEAR HARRY: I am sending you herewith copy of a letter which I have received from a small businessman in my State, who is one of the subcontractors in the various missile sites. I understand that his problem is not an isolated one, but one facing many other small contractors all over the country doing similar work. Knowing of your interest in the matter I felt you would like this information I expect the Congress will have to take a hand in order that our defenses not be jeopardized. also. Best regards. Sincerely yours, GEORGE D. AIKEN. Hon. GEORGE D. AIKEN, U.S. Senate, Washington, D.C. ESSEX JUNCTION, VT., January 23, 1961. DEAR SENATOR AIKEN: I am writing to request your support and aid in the transformation of the current ATLAS missile project at Plattsburg, N.Y., from a lump-sum bid basis to at least a cost basis. It is my understanding that future missile projects will be done on a cost-plus-a-fixed-fee basis and it is necessary for the future of small contractors such as myself, that the current projects also be converted to a cost basis. We supply the ready-mix_concrete for the Plattsburg project on a unit price basis under a contract with Raymond-Kaiser-Macco-Puget Sound. Our original contract for a unit price of $15.25 was based on certain conditions and schedule of work obtained from the general contractor. Since the signing of that contract in June 1960 we have experienced a series of delays and change of conditions including the imposition of "wartime" conditions of work. Directives received by us from RKMP, our prime contractor, have required us to almost double our normal labor and equipment costs. The situation has become so critical that our losses now exceed $200,000. For a small company, such a loss is unbearable and we are put in a position where we cannot obtain financing to continue the job. We have been forced to sue our general contractor and unless relief is granted, we will probably have no other choice than to go bankrupt. Our creditors simply will not wait. We do not question the urgency of the missile program nor the good intentions of the Army Corps of Engineers as agent of the Air Force. We feel we are doing a good job on the missile sites. However, the imposition of restrictions and conditions putting my contract on a "wartime" basis after we had bid, is manifestly unfair. If the Government feels that the urgency imposed in these circumstances is necessary, then it should pay for it. Unless some aid is offered, the missile program will be constructed through the unjust bankruptcy of thousands of small businesses such as mine. The larger contractors are big enough to finish and await the claims route; however, unless some aid is afforded us, we will not be able to continue business and both myself, my employees and the community will suffer through no fault of our own. I shall be glad to document in facts and figures my contentions in this letter should you wish it. I have omitted them for the sake of brevity. Very truly yours, S. T. GRISWOLD CO., INC., By STEELE T. GRISWOLD. |