J. FLETCHER LANKTON AND JOHN N. ZIEGELE MAY 31, 1944.-Committed to the Committee of the Whole House and ordered to be printed Mr. PITTENGER, from the Committee on Claims, submitted the following REPORT [To accompany H. R. 4707] The Committee on Claims, to whom was referred the bill (H. R. 4707) for the relief of J. Fletcher Lankton and John N. Ziegele, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. The purpose of the proposed legislation is to authorize the Comptroller General of the United States to settle and adjust the claim of J. Fletcher Lankton and John N. Ziegele on account of the increased costs incurred by the said firm in the performance of its architecturalengineering contract No. WA-1101, dated January 24, 1942, with the Federal Works Agency, by reason of unavoidable delay on the part of other contractors in the construction and completion of the defense housing project at Wilmington, Ill., and to allow in full and final settlement of the claim the sum of not to exceed $8,000. There is hereby appropriated the sum of $8,000, or so much thereof as may be necessary, for the payment of said claim. The Comptroller General of the United States transmitted a request to the Speaker of the House of Representatives for this legislation. Therefore, your committee recommend favorable consideration to the proposed bill. Appended hereto is the letter from the Comptroller General. GENERAL ACCOUNTING OFFICE, The SPEAKER, HOUSE OF REPRESENTATIVES. SIR: Pursuant to the act of April 10, 1928 (45 Stat. 413) I have the honor to transmit herewith my report and recommendation to the Congress concerning the claim of J. Fletcher Lankton and John N. Ziegele against the United States, with the request that you lay the same before the House of Representatives, A duplicate of this report is being transmitted by me to the President of the Senate. Respectfully, The Congress: LINDSEY C. WARREN, Comptroller General of the United States. APRIL 22, 1944. Pursuant to the act of April 10, 1928, (45 Stat. 413) I have the honor to make the following report and recommendation concerning the claim of J. Fletcher Lankton and John M. Ziegele, Peoria, Ill., for additional compensation to cover certain architectural-engineering services furnished by the said firm in connection with the construction of 500 prefabricated demountable housing units at Wilmington, Ill., under contract No. WA-1101, dated January 24, 1942, entered into with the Federal Works Agency. Naturally it was realized by the architect-engineers that the period of time during which they would be required to furnish field and engineering supervisory services on the housing project was a material factor for consideration in fixing the price for which they would agree to perform the contract. Consequently, the question as to the period of performance of the construction work was discussed with the contracting officer prior to the execution of the contract and that official appears to have advised the architect-engineers that the construction contracts subsequently to be entered into would require completion within 120 days. However, the contract as formulated and executed by the parties contained no provision limiting the time of performance but, on the contrary, provided under article 1 thereof, that, for and in consideration of payment of the amount of $32,000, the contractor would "* * render such architectural-engineering services as may be required by the Administrator for the construction of the project * * *", Also, by the terms of article 2 (e) of the contract, it was provided that the contractor would "* perform all necessary field engineering, supervision * * and inspection during construction." On February 24, 1942, the administration of the housing project was transferred to the Federal Public Housing Authority pursuant to Executive Order 9070. Thereafter, on April 6 and May 7, 1942, the latter agency executed the contracts for the construction work and site improvements on the project. The construction contracts specified that the work covered thereby would be completed within 120 days from the date called for in the orders to proceed which were issued on May 6, 1942. However, due to difficulties encountered in procuring the necessary labor and materials for the construction work, the project was not completed until on or about November 1, 1943. As a result, it became necessary for the architect-engineers to furnish supervisory services under their contract for a much longer period than had been contemplated at the time the contract was executed, thereby sustaining a considerable loss in the performance of the contract. The architect-engineers originally claimed the sum of $12,152.37 in addition to the contract price but now have agreed to accept the sum of $8,000 in full and final settlement of their claim. Under the above-quoted provisions of the contract the architect-engineers agreed to render such services as might be required "for the construction of the project" and "during construction." Since they performed no services in addition to those required under the plain terms of the contract; and since the contract did not provide for any increase in the contract price in the event the time during which the services would be required to be rendered should be longer than anticipated, the claim for additional compensation is not a legal claim which may be adjusted under any appropriation heretofore made. However, in view of all the facts and circumstances connected with the making and performance of the contract, the claim does, in my judgment, contain such elements of equity as to be deserving of the consideration of the Congress. Therefore, I recommend to the Congress that an appropriation in the amount of $8,000 be made for payment of the claim. it is If the Congress should agree with my recommendation in this matt suggested that the enactment of a statute in substantially the following form will accomplish that purpose: "Be it enacted by the Senate and House of Representatives of the United States of America in the Congerss assembeld, That the Comptroller General of the United States be, and he hereby is, authorized and directed to settle and adjust the claim of J. Fletcher Lankton and John N. Ziegele on account of the increased costs incurred by the said firm in the performance of its architectural-engineering contract No. WA-1101, dated January 24, 1942, with the Federal Works Agency, by reason of unavoidable delay on the part of other contractors in the construction and completion of the defense housing project at Wilmington, Illinois, and to allow in full and final settlement of the claim the sum of not to exceed $8,000. There is hereby appropriated the sum of $8,000, or so much thereof as may be necessary for the payment of said claim." LINDSAY C. WARREN, Comptroller General of the United States. O |