CONTENTS

Hearings held Thursday, February 25, 1960..

Hearings held Friday, February 26, 1960..-

Statement of-

Newman, William A., Jr., Director, Defense Accounting and Audit-

ing Division, General Accounting Office; accompanied by E. T.

Johnson, Assistant Director, Defense Accounting and Auditing

Division; John Flynn, Office of Defense Accounting and Auditing

Division; and John Moore, Office of the General Counsel...

Wilson, Maj. Gen. Walter K., Jr., Deputy Chief of Engineers for

Construction, Corps of Engineers; accompanied by Lt. Col. George

E. Hesselbacher, Jr., Assistant Chief of Military Construction for

Central Divisions, OCE; and E. M. Seltzer, General Counsel.

Letters, statements, etc., submitted for the record by-

Barry, Hon. Robert R., a Representative in Congress from the State

of New York: Excerpt from a press release issued by the House

Government Operations Committee, February 20, 1960-

Corps of Engineers:

Design Directive No. 24-Fiscal Year Family Housing Program

(CONUS), June 10, 1955.

Memorandum from Charles C. Finucane, Under Secretary of the

Army, re family housing construction, June 10, 1955.

Names of the contracting officer and individuals who participated

in negotiation and execution of the contract for family housing

construction at Granite City Engineer Depot.

Dawson, Hon. William L., a Representative in Congress from the

State of Illinois, and chairman, House Government Operations

Committee: Excerpt from the Comptroller General's report on

Granite City, Ill. housing..

Department of the Army:

Legal analysis re Report of the Comptroller General concerning

award of contract No. DA-11-032-Eng-3304 for family

housing at Granite City Engineer Depot, Ill...

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Letter from Lt. Gen. E. C. Itschner, USA, Chief of Engineers,

to Hon. William L. Dawson, March 18, 1960..

General Accounting Office:

Information listing the number of houses and the grade of the

officers, and the price per house, showing how the limitation

of $642,000 is computed..

Information re the cost of 50 refrigerators

Names of companies referred to in the General Accounting Office

report...

Indritz, Phineas, counsel, Executive and Legislative Reorganization

Subcommittee:

Excerpt from statement of Maj. Gen. Walter K. Wilson, Jr.

Excerpt from the public exigency clause of the Armed Services

Procurement Act.

Excerpt of a letter from Dewey Short, Assistant Secretary of the
Army, to Assistant Director for Defense Accounting and Auditing
Division, U.S. General Accounting Office, January 29, 1959

Telegram from Philip P. Kromer, Jr., district engineer, Chicago

district, Chicago, Ill., to G. H. Sternberg & Co., Granite City,

Ill., S. M. Wilson & Co., Granite City, Ill., M. H. Wolfe & Co.,

Granite City, Ill., and General Contracting Co., Granite City,

Ill., December 24, 1955..

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22

III

Letters, statements, etc., submitted for the record by-Continued
Moore, John, Office of the General Counsel, Department of Defense:
Excerpt from the Department of Defense Armed Services Pro-
curement Regulations revised, January 1, 1956– –

Letter from Hon. Joseph Campbell, Comptroller General of the
United States, to Hon. William L. Dawson, March 14, 1960--

Newman, William A., Jr., Director, Defense Accounting and Auditing

Division, General Accounting Office:

Amount by which the statutory limitation was exceeded, as

computed by the General Accounting Office

Excerpt from the Antideficiency Act (31 U.S.C. 665).
Excerpt from the Armed Services Procurement Act of 1947.
Poland, Orville S., general counsel, Government Operations Com-
mittee: Excerpt from statement of William A. Newman, Jr.-

Wilson, Maj. Gen. Walter K., Jr., Deputy Chief of Engineers for

Construction, Corps of Engineers:

Excerpt from the Armed Services Procurement Regulations... –

Fiscal year 1956 family housing program-Locations at which

same house design as at Granite City Engineer Depot was

used_
Memorandum from Maj. Gen. E. C. Itschner, U.S.A., Chief of
Engineers, to Division Engineers, re contracting for construc-
tion subject to statutory cost limitations, December 3, 1958___

Regulations-Corps of Engineers, U.S. Army, re contracts,

engineer contract instructions, February 10, 1960.......

APPENDIXES

Appendix I.-Report to the Congress of the United States-Review of

family housing construction at Granite City Engineer Depot, Granite

City, Ill., Department of the Army, by the Comptroller General of the

United States, January 13, 1960.

Appendix II. Additional documents supplied by Corps of Engineers.--.