Progress on construction projects during fiscal year 1924—Continued

PLANS, SPECIFICATIONS, AND FIELD SUPERINTENDENCE BY VETERANS'

Progress on construction projects during fiscal year 1924—Continued PLANS, SPECIFICATIONS, AND FIELD SUPERINTENDENCE BY VETERANS' BUREAU-Continued

For reference there is appended a tabulation showing the status of construction program under the second Langley bill segregated in order to indicate all progress under that appropriation. As indicated, most of these projects have been handled by the office of the Quartermaster General, or by the Bureau of Yards and Docks.

During the fiscal year operating and maintenance costs covering construction division activities in the field, and exclusive of construction projects covered in the foregoing tabulations, have amounted to a total of $5,258,754.02. This total includes salaries of permanent employees engaged in the maintenance and operation of buildings, grounds, and utilities, laundry service, telephone service, minor items of maintenance, operation and repair, and fuel, light, and water. Since its organization on November 8, 1923, the maintenance and operation subdivision has completed action upon 2,143 requisitions from the field, and by the substitution of surplus material, analysis of requirements, and simplification of methods has effected a savings in this connection of $851,897.46, of which amount $537,948 is accountable to the use of surplus materials and equipment.

In order to secure uniformity of practice, and to obtain the necessary results at the lowest cost consistent with bureau requirements and with good business procedure, general instructions have been prepared for the guidance of medical officers in charge of hospitals and others concerned with the maintenance and operation of buildings, grounds, and utilities, and physical plant generally.

Daily engine-room log and monthly report form for the operation of power plants have been prepared and issued to the field, in order that by systematic use of these reports the operation of plants may be closely scrutinized in order that service may be improved, wasteful methods detected, and means devised for curtailing unnecessary expenditures at field stations.

Special report forms covering fire-protection equipment and methods have been prepared and filled out by field stations, thus enabling central office to judge of the condition of equipment and to provide for such improvement therein as may be necessary. In connection with new hospitals and existing hospitals not already properly equipped, the shops at Perry Point, Md., have built 10 combination chemical and hose wagons using surplus material and resulting in a direct saving to the bureau of $43,000.

The annual cost of laundry service for all field stations is slightly in excess of $600,000 and in order to improve this service as necessary, and effect such economies as may be practicable, a monthly report of station laundry operations has been instituted with satisfactory results. It is anticipated that substantial reductions in the cost of this service will be effected.

In cooperation with the Bureau of Standards, a detailed survey of telephone service has been undertaken with a view toward improving service and reducing expenses where practicable. This survey has not been completed but has resulted in certain positive improvements in results obtained, has brought to light a considerable amount of surplus equipment, and has resulted in a net annual savings of at least $5,000.

Salaries and allotments for station personnel employed in connection with activities under the supervision of this Division amount to a total annual expenditure of $2,194,049.76. Station personnel reports covering these activities have been received in Central Office and careful study is being given to results obtained at each station, and to the physical aspects of the various stations affecting such costs. Improvements and economies in operating methods are gradually being inaugurated and further material improvements in this connection are to be anticipated. At one large Bureau hospital it has been possible by overhauling of equipment and reformation of operating methods to effect a positive saving of $30,000 per annum in the cost of fuel. At another very large hospital it was found possible, after a thorough study of operating methods and conditions on the ground, to so reorganize the station force as to permit a net reduction of nineteen employees, while at the same time actually improving the quality of service.

Instructions for the care and operation of elevators have been revised and issued to field stations where required, as have instructions governing the operation and maintenance of sewer systems and sewage disposal plant. In order to provided for adequate steam boiler inspection and to accomplish this without duplication of personnel, arrangements have been made by which this work is done periodically at each station by the Steamboat Inspection Service, Department of Commerce.

OVERHEAD COSTS

Any discussion of the overhead costs involved in the design and execution of construction work which does not include a careful analysis of various other related factors can not be complete. The more important of these factors are correctness of original design, cost of construction, total cost and promptness of execution. In general, the importance of any one of these factors will outweigh

that of overhead cost unless this is excessive. The size and character of any project have a very decided bearing on the percentage of overhead cost involved in its design and execution. Thus the percentage of overhead involved in the superintendence of a $50,000 contract requiring the services of a superintendent of construction will be greatly in excess of that required in connection with a million-dollar contract requiring the services of a superintendent of construction assisted by two inspectors and one clerk. In the same way the proportionate cost of preparing plans and specifications will, generally, be much greater in connection with the smaller projects. Any variation in percentage of overhead cost above or below an arbitrary figure assumed as a reasonable average does not necessarily imply a similar variation in the efficiency of performance.

That the work undertaken by the construction division during the past year has been accomplished at a very reasonable expenditure for overhead is indicated by the following:

The preparation of plans and specifications for projects amounting to a total of $5,516,524 has been accomplished at an expense of $106,301.97, or approximately 1.9 per cent. For preparation of plans and specifications for the three largest projects which have been placed under contract, Livermore, Aspinwall, and Perryville, $27,902.33 has been expended, equal to 0.93 per cent of the combined contract amounts. Field supervision for the large construction projects which have been completed, or which are approximately 50 per cent complete, including work at Livermore, Augusta, and North Little Rock, has been accomplished at an average expenditure of 0.91 per cent of the contract amounts. Field supervision for construction projects amounting to $150,000 each, or less, has been accomplished at an average cost of 2 per cent. For all work performed by the division, involving the preparation of plans and specifications and administration of expenditures amounting to a total of $10,775,278, all expenditures for salaries and traveling expenses of personnel detailed to the office and to the field have amounted to 1.8 per cent.

CONCLUSIONS

Although the construction division has been functioning for a period of 12 months only, the results already secured have demonstrated the soundness of the proposition that the Veterans' Bureau should be equipped with an organization for the administration and execution of construction, maintenance, and operation activities.

As an indication of what has already been accomplished by various Government agencies, and as a guide in determining probable future costs of construction, a table has been appended showing the costs of hospitals and time required for construction in connection with all projects handled for the Veterans' Bureau by the War and Navy Departments, and all major projects so far handled by the construction division of the bureau. This table also includes cost figures in connection with certain projects handled by the Treasury Department under the first Langley bill. Detailed data showing the time of execution of Treasury Department projects are not available, and since the projects under the second Langley bill are primarily those involving complete new construction, or large additions to existing facilities,

the Treasury Department projects listed have been selected as far as possible to represent the same character of work.

In arriving at the total cost of the various projects contract amounts have been shown, but total costs per bed have been based on the additions of such items as may be necessary to provide a complete institution ready for operation at the capacities indicated and in accordance with present bureau requirements. These items are mainly made up of necessary recreational and occupational therapy facilities, necessary housing for hospital staff and personnel, interior painting which is not advisable to include in an original construction contract, and various other minor items omitted from the original design or contract for various reasons. Such items representing additional cost have been listed in detail in the footnotes appended to the tabulation.

The cost of new construction at various projects is naturally affected by local conditions of site, labor, and material markets, proximity to communities from which civilian personnel can be secured, and the requirements of various groups of patients for which the institution is constructed. Construction costs also vary over a period of years and are subject to seasonal influences. In view of these various factors, cost figures included are not readily susceptible to use as a basis for other than general conclusions in regard to total costs per bed. The conclusion that it is much less expensive to provide major construction as an addition to an existing hospital than as an entirely new institution may be drawn with entire certainty. It is equally certain that new institutions providing 400 or more beds may be constructed at a much smaller cost per bed than hospitals having a capacity of 250 beds or less.

Cost of hospitals and time required for construction