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men of certain qualifications not included in this organization were also necessary, but these men would have been needed in any case in connection with the efficient handling of maintenance and operation activities.

A satisfactory solution of the various problems met with in assigning bureau construction work to separate Government departments could only have been obtained by the establishment of an efficient liaison between such departments and the various divisions of the Veterans' Bureau. The needs of the director and of certain division chiefs would necessitate a substantial duplication within the Veterans' Bureau of certain administrative functions dealing with policy, finance, records, and correspondence. That such a liaison could be made thoroughly effective appeared exceedingly doubtful, and that the cost of maintaining such a service would more than absorb any apparent savings which might be effected by the handling of construction work through independent departments appeared certain.

That it is impossible to administer the construction, maintenance, and operation activities of two separate Government agencies operating under separate legislation and reporting to the Executive through separate heads without material duplication of organization and personnel, can not be seriously questioned. No reason was found to indicate that an independent department could perform the functions in question at any ultimate saving to the bureau or to the Government. The continuance of the assignment of these functions to organizations outside of the Veterans' Bureau could not fail to perpetuate elements of complication and sources of delay which had already rendered difficult the administration of this work.

On June 30, 1923, therefore, there was issued a general order creating a maintenance and operation division of the Veterans' Bureau, which was subsequently changed to the construction division, and assigning thereto all personnel previously detailed to the maintenance and repair subdivision of the supply division, the office of the Quartermaster General, and to the Bureau of Yards and Docks. After conference with the officials of the two offices last mentioned, arrangements were made for a continuance of detail of such personnel to those offices as was necessary for the completion of plans already in progress and for the completion of construction work already under contract. These details have been gradually reduced and the personnel of the construction division increased correspondingly during the past 12 months.

FUNCTIONS

Under general order of June 30, 1923, and subsequent orders, the construction division has been charged with the responsibility of maintaining contact with the other divisions of the bureau in order to provide facilities as and when required by the service. It is charged with the preparation of plans, specifications and estimates covering construction, alteration and repair of plant and equipment, and with the supervision of such work. It supervises the maintenance of buildings and grounds under the control of the Veterans' Bureau and the maintenance and operation of utilities including heating, lighting, electric power, plumbing, sewage and refuse disposal, water supply, laundries, fire protection, telephone service, and refrigerating plants.

ORGANIZATION

The organization of the construction division includes the administrative staff and three main subdivisions, as follows:

In the administrative staff are included the functions pertaining to general administration, contact with and superintendence of projects under construction, mail and records, and construction division personnel. The field section, which provides for the superintendence of construction projects, includes 15 job superintendents and 4 supervising superintendents. Of the latter, 2 are detailed to the field in charge of large construction projects and, for reasons of geographical proximity, are used in addition for the exercise of general superintendence over other projects. The other 2 are detailed to central office whence they travel for the purpose of maintaining general superintendence over construction projects in the eastern and central parts of the country. Contact with projects under construction is maintained by three project managers reporting directly to the executive officer. Every project under construction is assigned to one or another of these men, and all correspondence pertaining to a given project is handled by the project manager to whom it is assigned. Project managers are thus responsible for maintaining current all correspondence with the field, and all information relating to a particular project is available at one point in the division.

The detail section includes all personnel detailed to other Government departments who are directly under the executive officer of the division. The detail section will shortly be eliminated.

The functions of the mail and record unit are self-explanatory. This unit reports directly to the executive officer of the division. All matters relating to central office personnel of the division are handled by a personnel clerk, reporting directly to the executive

officer.

The maintenance and operation subdivision is responsible for the administration of maintenance and operation activities at all stations of the bureau, and for general supervision of field personnel who are concerned with construction division activities. This subdivision also handles awards and allotments under the jurisdiction of this division, and maintains records regarding the status of funds available under construction division allotments and the reallocation of such funds.

The technical section of the maintenance and operation subdivision is responsible for the general supervision of field personnel and for the determination of necessary action in connection with maintenance, alterations, and extensions of existing facilities, and for the necessary technical analyses of operating costs.

The award and allotment section of the maintenance and operation subdivision is responsible for the compilation of necessary records covering the status of funds under the jurisdiction of this division, and the distribution thereof among stations. It also prepares award and allotment letters issued by this division, and progress reports covering the status of work in the field.

The design subdivision is responsible for the preparation of all plans and specifications for remodeling of existing work and for all new work in so far as structures, roads, and walks are concerned.

This subdivision is generally responsible for the design of new hospitals and for the coordination of this design with medical and bureau requirements. It is divided into three sections which are responsible for architectural work, structural work, and specification writing, checking, and estimating, respectively.

The engineering subdivision is responsible for the preparation of plans and specifications for mechanical, electrical, and other equipment necessary in connection with bureau hospitals, and for the coordination of this design with architectural and structural design and bureau requirements.

PROCEDURE

In connection with contemplated new construction for the purpose of providing additional beds, consideration is first given to the possibility of providing such beds in connection with an existing Veterans' Bureau hospital. If such procedure is practicable, additional facilities can invariably be provided more quickly and at less expense than in the event that an entirely new hospital has to be established. If it is found impracticable to provide the additional facilities needed in connection with a bureau institution, consideration is then given to the possibility of providing such facilities on Government-owned land. If the needs of the service do not indicate that the additional beds required may be provided in connection with existing hospitals, or on land already owned by the Government, then only is the acquisition of additional land considered, the construction division furnishing such technical advice and information as may be necessary, in addition to data furnished by the medical service, to enable the director to arrive at a decision.

The fact having been established that additional facilities are required at a new site, immediate action is taken to secure an accurate survey of the site; information having been previously secured in regard to transportation facilities, the character of water, sewer, gas, and electric services, if same are available, and the manifold physical characteristics of the site which affect its value as a location for the proposed construction, and which will affect the design and arrangement of buildings to be placed thereon.

In the meantime, exact specifications of the requirements of the medical service are secured and work on sketch plans is begun. During the progress of their preparation these preliminary plans are the subject of repeated conferences in order that the hospital as designed will provide not only the various facilities required for the proper care of bureau beneficiaries, but also for effective and economical administration of the various activities of the hospital, and for future expansion and development should occasion arise.

By the time the preliminary plans are completed the detailed survey of the ground has been accomplished and working plans and specifications are carried forward to completion. As the preparation of sketches and of working plans progresses estimates of cost are prepared and a definite allocation of funds is decided upon and authorized. Upon the completion of working plans and specifications proposals are solicited.

Upon the receipt of proposals award papers are prepared, and upon the execution of the award a superintendent of construction is assigned

to supervise the work in the field and a project manager is assigned to carry on the administration of the work from central office. Contract data are compiled for inclusion in a formal contract which, when completed, is forwarded to the successful bidder for execution. Thereafter until the final completion and acceptance of the work, all correspondence relating to the contract in question and the work being performed thereunder, including semimonthly reports and vouchers for partial payment, is handled by the project manager, consulting with the construction division, to obtain prompt decision in regard to questions arising as to interpretation of plans and specifications and administrative action by the bureau, etc.

New construction work required to accomplish extensive expansions of existing bureau hospitals is handled in the manner described above.

All matters pertaining to proposed additions, extensions, and betterments in connection with existing institutions which are of less than major magnitude, and all matters relating to maintenance and operation activities are referred directly to the maintenance and operation subdivision for such investigation and analysis as may be necessary to arrive at a determination of proper action.

Proposals for service such as electricity, water, gas, garbage disposal, laundry, etc., are analyzed from a technical standpoint by the maintenance and operation subdivision and, if approved, are forwarded to the proper division of the bureau for execution.

All matters affecting station personnel who are engaged in connection with construction division activities are handled by the maintenance and operation subdivision. This subdivision also initiates, receives, and reviews operating reports from the various field stations of the bureau, making such analyses thereof as may be necessary to assure satisfactory and economical operation.

POLICY

The construction division of the Veterans' Bureau is a business organization, and every effort is made to maintain the administration of its affairs along lines which would render it successful in the competitive field of private enterprise; having in mind that the end which it must accomplish is the provision and maintenance of facilities for the adequate hospitalization of bureau beneficiaries as and when needed, and that the means to this end must be such as to result in economical disbursement of Government funds.

As previously indicated, the construction of new hospitals is not considered until it has become apparent that extension of existing hospitals will not fulfill the needs, nor is the acquisition of additional land considered until it has become established that Governmentowned land may not be used to advantage. In the preparation of plans and specifications, careful consideration is given not only to the provision of every facility which is needed but also to the conservation of space, and to such arrangement of buildings and of facilities as will permit of effective and economical operation. The use of special equipment, or of details of construction, or materials for construction, which are not generally accepted as commercially standard, is avoided.

In preparing plans and specifications for construction projects of the magnitude which must be undertaken by the bureau, it is impos

sible to have full knowledge of, or to foresee, every possible contingency, or delineate or define every peculiarity of site, or of various unforseen conditions which will arise during the progress of construction. It is equally impossible to prepare plans and specifications for construction projects of the magnitude in question, each involving many different buildings and necessary utilities, without the inclusion therein of human error. It is the policy of this division to avoid the wording of specifications and of contract in such a manner as to lead the bidder to believe that he must make provision in his proposal against the possibility of being required to perform, without additional compensation, work in addition to that specifically provided for on the plans or in the specifications, and necessary in order to overcome unforeseen conditions for which he is not properly responsible, to satisfy conditions of which he was not advised, or to correct errors in plans and specifications for which the bureau is properly responsible.

This policy is not only fair to the contractor but is to the best interests of the Government. If a bidder has reason to believe that a Government agency is not inclined to accept the responsibility which properly belongs to it he will invariably, and must properly to protect his own interests, discount this inclination by the inclusion in his proposal of a contingent item which is almost certain to be greatly in excess of the actual needs.

During the execution of the contract it is the policy of the division to afford the contractor every proper assistance in expediting his work, to avoid by every possible means any interference with the progress of this work, to decide such questions as may arise with promptness, justice, and finality, and make partial payments, when provided for under the contract, immediately upon presentation and auditing of properly prepared vouchers.

New construction work and extensive alterations, extensions, and betterments are handled by contract unless the nature of the work is such as to make this procedure impracticable or unduly expensive. In certain cases general reconditioning and necessary miscellaneous repairs are, to a considerable degree, indeterminate in extent until actual work has been started, and any attempt at the execution thereof by lump-sum contract would be unsatisfactory both to the Government and to the contractor. In other cases alterations or betterments must be carried on in buildings where patients are being cared for, and the work must therefore be subject to interruption in order that rest hours may be observed. Work of this nature is performed by the purchase of material and hire of temporary labor under the direction of an experienced superintendent of construction. In connection with the administration of maintenance and operation activities, prompt attention is given to every request or proposal received from the field. Requisitions for supplies, materials, equipment, or labor needed in connection with maintenance and operation work must be acknowledged on the date received and must receive final action without avoidable delay.

Surplus equipment and material in the possession of the Veterans' Bureau, or of other Government departments, is used where practicable; and the procurement of material, maintenance supplies, and equipment in larger quantities than can be stored and used to the advantage of the Government is avoided.

17231-24-34

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