Estimated obligations and expenditures, fiscal years 1955-61, additional House Office Building project

APPROPRIATIONS, OBLIGATIONS, AND EXPENDITURES

Mr. NORRELL. How much has actually been obligated to date? Mr. STEWART. A total of $61,500,000 has been appropriated for the additional House Office Building project, to date. In the fiscal years 1955, 1956, 1957, 1958, and 1959, obligations totaling $33,188,551 were incurred. In the fiscal year 1960 obligations totaling $51,362,894 have been incurred to March 25, 1960, and additional obligations totaling $943,828 are expected to be incurred during the remainder of the fiscal year-or a total obligation of $52,306,722 for the fiscal year 1960. In the fiscal year 1961, the amount of obligations to be incurred is estimated at $5,420,000. This makes a grand total obligation estimated and actual-of $90,915,273 for the fiscal years 1955, 1956, 1957, 1958, 1959, 1960, and 1961.

Of these obligations $23,236,073 have been liquidated to March 1, 1960, and $51,263,927 are expected to be liquidated during the period March 1, 1960, to June 30, 1961-or a grand total liquidation of $74,500,000 for the fiscal years 1955, 1956, 1957, 1958, 1959, 1960, and

1961.

As the appropriations available to cover these liquidations total $61,500,000, an additional appropriation of $13 million is requested for the fiscal year 1961.

Mr. NORRELL. How closely has this $13 million cash request been figured?

Mr. STEWART. It has been figured as a result of the award of the superstructure contract made about 6 weeks ago-actual contract figures. There is a certain amount of estimation in each and every fiscal year which is hard to determine to the penny. It depends on the progress of the work.

Mr. NORRELL. How can you possibly expend $35 million on the building erection contract in fiscal year 1961 if the work is not to be completed until June 1963?

Mr. STEWART. I have considerable material, such items as marble and granite, that will have to be purchased the minute they are quarried, sometimes even in the rough. That is the big item, that together with mechanical equipment.

Mr. NORRELL. Have you entered into contracts for that?

Mr. STEWART. Yes, all contracts have been let for the completed building with the exception of (1) landscaping to be done around there; and (2) the furnishings of the buildings; plus the subways.

Mr. Bow. Mr. Stewart, do I take from the sheet that I find on page 134 of the justifications that the estimate of the total cost of the additional House Office Building when completed is $90,915,273 ?

Mr. STEWART. That is our total obligation estimated through 1961. Mr. Bow. That is through 1961. What is your present estimate as to what your cost will be at completion in 1963?

Mr. STEWART. $105 million. That includes the remodeling of the present two buildings.

Mr. Bow. So the present estimate of the entire cost of the additional House Office Building project, including the remodeling of the two present buildings, is $105 million?

Mr. STEWART. That is what we estimate.

Mr. Bow. That includes the hotel?

Mr. STEWART. Yes, sir.

Mr. Bow. The whole project?

Mr. STEWART. The whole project.

Mr. Bow. The acquisition of properties and all?
Mr. STEWART. Yes, sir.

Mr. Bow. Now what do you estimate the completed cost of the additional House Office Building will be?

Mr. STEWART. The construction and equipment of the additional House Office Building, including the new sewer, will be $66 million. Mr. Bow. Does that include land?

Mr. STEWART. No. The land purchased for the project is $8 million, including the Congressional Hotel.

Mr. Bow. I would like to get down to the cost of this one building including the cost of the land.

Mr. STEWART. The building occupies some land which you already owned-the parking lot.

Mr. HENLOCK. I believe it was about $1.5 million for the other square we acquired for the building itself.

Mr. STEWART. That is $1.5 million out of the $8 million, which gives $6.5 million for the surrounding properties.

Mr. Bow. So for the completion of the building, the structures and land, it will run over $70 million, is that correct?

Mr. STEWART. Yes, but we have architectural and engineering fees and miscellaneous administrative expenses.

Mr. Bow. I am talking about everything that goes in this additional House Office Building. Give me an estimate of the cost of the engineering and architectural fees and everything in that one building.

Mr. STEWART. I wonder if I might pass this sheet to you and see if that is the information you want.

Mr. Bow. This goes into the remodeling of the old buildings. I want to ascertain the cost of the additional building.

Mr. STEWART. That is $66 million.

Mr. Bow. But that does not include the land?

Mr. STEWART. No.

Mr. Bow. So we have to add land of about $3 million?

Mr. STEWART. No, $1.5 million and about $3.5 million for fees and my expenses.

Mr. Bow. So we are going to run over $70 million?

Mr. STEWART. That is right.

Mr. Bow. And you estimate your completion date on that to be what?

Mr. STEWART. Total completion date for contract purposes is 1963. It is about a 3-year job.

Mr. Bow. You think you will be moving Members and committees in 1963?

Mr. STEWART. Without question some of the building will be ready for partial occupancy prior to that.

Mr. Bow. Prior to 1963 ?

Mr. STEWART. Yes, sir.

Mr. Bow. But you believe you will have it completed in 1963?
Mr. STEWART. Yes, sir.

Mr. Bow. What is the present plan so far as the remodeling of the other buildings is concerned?

Mr. STEWART. The remodeling work has been held in abeyance on orders of the House Office Building Commission until such time as the new building is completed and occupied.

Mr. Bow. Did I understand you to say you had a carryover of $9 million this year from previously appropriated funds?

Mr. STEWART. I think we have more than that.

Mr. Bow. What was your carryover of previously appropriated funds?

Mr. HENLOCK. We had disbursed $19,630,000 through June 30, 1959, and in that same period we had appropriated $45 million.

Mr. Bow. What do you have on hand now unobligated and unspent?

Mr. HENLOCK. We have cash of $38 million, in round figures.
Mr. Bow. What are your anticipated obligations for fiscal year

1961?

Mr. HENLOCK. $5,420,000.

Mr. Bow. $5,420,000?

Mr. HENLOCK. Yes, sir.

Mr. Bow. You mean you are only anticipating the expenditure of $5 million

Mr. HENLOCK. I thought you said obligations.

Mr. Bow. I probably mixed you up as well as myself. How much do you anticipate you will spend?

Mr. HENLOCK. We have expended to March 1, 1960, $23,236,073, and we expect to liquidate $51,263,927 during the period March 1, 1960, to June 30, 1961, or a grand total liquidation of $74,500,000 through June 30, 1961.

Mr. Bow. What do you have now and what do you intend to spend? Mr. HENLOCK. We expect to spend $51 million.

Mr. Bow. This coming fiscal year?

Mr. HENLOCK. That is right. We had $38 million and we need $13. million more.

Mr. Bow. I misunderstood some of your earlier testimony, then. Mr. HENLOCK. Page 134 has a list of the expenditures, Mr. Bow. Mr. Bow. The point I was trying to make, and I guess you have made it, is you have to get $13 million or you will run out of money? Mr. HENLOCK. Yes, because we have $38 million and we need $13 million more to meet the obligations.

SUPERSTRUCTURE AND EQUIPMENT FOR ADDITIONAL HOUSE OFFICE

BUILDING

Mr. Bow. For superstructure and equipment for the additional House Office Building, your contract obligations for 1960 were $50,

973,000 and in 1960 you expended $1,500,000, and you are anticipating a $35 million expenditure in fiscal 1961. Now the $35 million looks like a lot of money to spend on that contract in that period of time.

Mr. HENLOCK. Mr. Stewart explained most of the big money will come in the first year for concrete, marble and granite, and items of that nature.

Mr. Bow. Do you have a breakdown of that?

Mr. HENLOCK. Mr. Banks' field office prepared that estimate.

Mr. BANKS. That is based on estimates.

Mr. Bow. Can you summarize it so that if we are faced with it on the floor we will have it in summary form?

Mr. STEWART. We will be very happy to.
Mr. Bow. Because that is really a big item.
Mr. STEWART. Yes, sir.

(The information requested follows:)

Breakdown of estimated expenditure of $35 million for superstructure of additional House Office Building, fiscal year 1961

General and special provisions, including contractor's profit and

Mr. Bow. And we have no additional anticipated purchases of land on this side of the Capitol?

Mr. STEWART. There has been talk of some further expansion.
Mr. Bow. But there is nothing in this bill for it?

Mr. STEWART. Nothing at all.

Mr. Bow. And nothing would be purchased unless there was first a request for funds?