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APPENDIX B

U.S. SENATE,

Washington, D.C., May 11, 1960. Re Food and Container Institute (military construction bills H.R. 1777, S. 3006). Hon. JOHN STENNIS, Chairman, Subcommittee on Military Construction, Senate Armed Services Com

mittee, Senate Office Building, Washington, D.C. DEAR. SENATOR STENNIS: I have just been informed that the Senate Armed Services Committee is proceeding to a consideration of the above bills for military construction authorization legislation, which in the Senate version, you will recall, includes an item for “Quartermaster Research and Engineering Center, Mass.: Research, development and test facilities, and troop housing, $3,628,000" (p. 3, lines 3–5).

At the conclusion of the hearing in which you kindly received our testimony and that of other spokesmen from the Middle West in opposition to this item and in favor of retaining the Food and Container Institute in the Midwest, you may remember that an opportunity was expressly given for the presentation of further data to the committee concerning the costs of building comparable facilities in Chicago, and other material which might be relevant to the decision on this item. I am therefore enclosing for your information at this afternoon's meeting a letter which has just come from Mr. R. J. Spaeth, vice president of the Illinois Institute of Technology, which I believe to be of great importance to the recommendation which you may make from your subcommittee to the full committee.

It is clear from this letter that the earlier, higher estimates of construction costs in Chicago were based upon very informal conversations, for an area of space nearly two and three times the amount now being discussed at Natick and without benefit of any specifications provided by the Quartermaster Corps. The Illinois Institute has, therefore, recomputed these figures on the basis of 121,235 square feet as proposed for the new installation at Natick, and on the basis of a construction cost of $22 per square foot, which is soundly rooted in the costs of a research building currently under construction in Chicago.

With the savings in the smaller costs of relocation, the construction cost figures come to only slightly more than the figures recommended by the Quartermaster Corps in the pending bill ; namely, only $62,000.

If these costs are therefore so nearly the same (which I had hoped your staff might have a little more time to determine more completely), then the other factors of convenience of location to the food and container industries and the principal research establishments in these fields would seem to me to prove conclusively that this installation should be kept in Chicago, as urged by so many representatives of those industries.

In addition, I am enclosing a second item furnished to me by the Chicago Association of Commerce and Industry, which shows that the great preponderance of contracts let by the Food and Container Institute for research outside of its own facility are with firms in the Middle West and West. This merely confirms the obvious fact that the location of the Food and Container Institute will be more convenient in Chicago for the outside contracts which must be let as a part of its work.

May I express to you and to the other members of your subcommittee and of the full committe my earnest hope that the, to us, obvious advantages of maintaining this facility in Chicago will be given your most careful consideration. I only regret that the Quartermaster Corps did not give the Illinois Institute or those in whose behalf I requested it from the Chicago Association of Commerce and Industry a full opportunity to go into all of these details last fall before they ever brought up this recommendation to your committee. With kindest regards. Faithfully yours,

PAUL H. DOUGLAS.

EXHIBIT No. 1

ILLINOIS INSTITUTE OF TECHNOLOGY,
OFFICE OF THE VICE PRESIDENT,

Chicago, May 9, 1960.
Senator PAUL H. DOUGLAS,
U.S. Senate,
Washington, D.C.

DEAR SENATOR DOUGLAS: In your letter of April 28, 1960, to the Chicago Association of Commerce and Industry regarding retention of the Food and Container Institute of the Quartermaster Corps of the U.S. Army in Chicago FOH asked that the institute check its earlier figures on the relative costs of building this facility in Chicago, and then prepare a new proposal based upon using the same square footage and type of facilities in Chicago as the Army proposed at Natick, Mass.

One of the institute's problems in negotiations with the Quartermaster Corps was our failure to get a set of specifications of their requirements. As a result, we have never been able to provide the Quartermaster Corps with a specific proposal. The institute's proposals were in informal conversations.

The report to the Committee on Armed Services, House of Representatives, by the Comptroller General of the United States, in April 1960, on page 29, first paragraph, stated that the facilities and equipment cost of the installation at Illinois Institute of Technology would be an estimated $5,940,000. The following paragraph states that the construction cost of these facilities at the institute was considered to be on the order of $9,700,000. The institute has no idea of how either of these two figures was determined, although general discussions mentioned a facility providing from 200,000 to 300,000 square feet of space. This amount of space with the necessary equipment might justify figures of this size.

The proposal submitted to Congress by the Quartermaster Corps, however, page 53 of the backup book, Quartermaster Research and Engineering Center, Mass., research and development, test facilities, and troop housing $3,628,000, requests facilities as follows:

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Office and heavy laboratory building, partially air-conditioned, 59,375 square

feet, at $21.25, plus site and utility costs.--
Relocation of equipment.--------
New equipment.--
Development b'ilding, addition and conversion, 52,800 square feet, at $16.75,

plus site and utility costs.----
Relocation of equipment.----
New equipment.--
Animal laboratory, 7,000 square feet, at $21.50, plus site and utility costs -
Barracks for 16 men, 2,060 square feet.

$1,336, 0001

$141,000

soft't 306, 000 991, 0001131) ------------ **) 235,000 155,000 | MAU517,000

13,000 34,000 23

B A LE 2,516,000 1 1, 212, 000 E

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Total square feet 121,235...
Total project.---

3,628,000 4,212,000

If the above is a correct statement of the needs of this facility, then it could be built adjacent to the Institute campus practically within the budgeted figures requested.

The institute currently has under construction a research building substantially better than the space described in the Quartermaster Corps' request to Congress. The institute building is entirely air-conditioned, consisting of 60,000 square feet, with a total cost, including architects' fees, site preparation, utility extensions, and full construction of $21.10 per square foot. Allowing for a small increase in construction costs and the fact that this building will require some extended utility lines, but also providing better space than anticipated, we estimate the following costs :

121,235 square feet at $22.

--- $2, 667, 170 100, 000 square feet of land..

100, 000 Total construction and land costs_.

- 2, 767, 170 Probable savings in relocation of equipment from amounts budgeted :

Estimated cost Chicago to Natick------------------- $376, 000
Less probable savings in cost of trucking from 39th
St. to 31st St. in Chicago------

----- 275,000

100, 000 New equipment, same as in congressional request----

823, 000

Total

--3, 690, 170 The institute was visited last week by a site selection committee for the food radiation laboratory, which laboratory rightfully belongs immediately adjacent to the Food and Container Institute and food research program of the Quartermaster Corps. They stated this laboratory would require an area of approximately 20,000 square feet. If this 20,000 square feet were added to the above project at a cost of approximately $22 per square foot, the entire Food and Container Institute and radiation laboratory could be housed in Chicago for a total construction and land cost of approximately $3,250,000.

We hope that these figures will be of help to the Quartermaster Corps and Congress in their consideration of retaining these facilities in Chicago. Sincerely,

R. J. SPAETH, Vice President and Treasurer.

EXHIBIT 2

CHICAGO ASSOCIATION OF COMMERCE AND INDUSTRY

CHICAGO 3, ILL.

MAY 2, 1960.

RELOCATION OF FOOD AND CONTAINER CONTRACTS

Through research assistance from private industry, the Government saves countless manpower hours each year. Sixty percent of the institute's cost contracts and over 45 percent of its no-cost agreements are with firms in Chicago or the Midwest. If the institute were moved to Natick, there would be a tremendous increase in the cost of supervising these contracts resulting from increased travel and telephone expense as well as travel time required. A breakdown of contract locations follows: A. Cost contracts based on dollar value: Midwest--

-- $1, 039, 334. 37 East (including New York, Pennsylvania, Washington, D.C.) -----

422, 301.00 West Coast---

888, 602.00 South (Georgia, Florida, West Virginia)--

189, 655. 87 (These figures do not include an item for the Surgeon General in the amount of $849,000 because the work is being done at Fitzsimons Gen

eral Hospital, Denver.) B. Cost contracts based on percentage of total number of contracts: Percent East--

22. 5 Midwest--

-- 49.3 West--South

- 5.7 (The item for the Surgeon General is not included in these figures.) C. No-cost contracts :

Firms Midwest (mostly Chicago)---------------------------------------- 17

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