As the plans were developed, studies were made of various printing plants throughout the United States. The Government Printing Office and our office sent men to practically every important printing plant in the United States. Certain fundamental conditions were developed that, if used here, would result in increased economies.

Funds are not made available to make complete studies, investigations, and drawings prior to authorizations by Congress.

The following statement gives in detail the reasons for the request for an increase in limit of cost, attention being invited to the additional items not originally requested to be included.

Comparative analysis of estimate for construction, etc., upon which the limit of cost was fixed, and for construction, etc., as per developments as of this date

ANNEX NO. 3 AND BUILDINGS NOS. 1 AND 2

280,000

Site (a small parcel acquired not previously considered).

Double windows in lieu of windows similar to present main building and extension.

Thermal glass in lieu of plain glass..

17,500

90,000

20,000

Stone facing and change of architectural design (annex) (required by other Government agencies).

80,000

Items not included in original estimate and which were intended by Public Printer to be submitted as supplemental items, submitted now that all necessary changes may be made at one time:

35,000

Moving and reconnecting existing mechanical equipment and tie to present buildings 2.

25,000

Mezzanine floors and motor platforms.

20,000

Power-house facilities, included in annex to replace existing equipment in buildings nos. 1 and 22

259, 500

Work to be done or provided by the Government Printing Office and which was added by the legislation (rent of temporary quarters, moving, furniture, etc.)1

Total...

Total, annex no. 3 and buildings nos. 1 and 2.

1 Social-security tax. The act authorizing this tax was not in effect when the project was authorized. 2 When the project was in the development stage, it was found necessary to modernize portions of the mechanical equipment of the present building, which could not have been foreseen in the early stage, inasmuch as there had been no field study of the equipment made at the time of submitting the original estimate. 3 These are special items of betterments requested by the Public Printer as very desirable.

4 Was included in the act authorizing this project, though not included in the original limit through a definite understanding with representatives of the Public Printer at the time the estimate was prepared.

Comparative analysis of estimate for construction, etc., upon which the limit of cost was fixed, and for construction, etc., as per developments as of this date-Con.

Mr. WOODRUM. Why could you not have known all that when you made up the original estimate as well as now?

Mr. REYNOLDS. Without going into the special details and changes, I think your criticism of this project is proper, because this building is in the District, but due consideration should be given items not originally asked for inclusion. It must be remembered, also, that this and other estimates were made 2 or more years ago; and in estimating on buildings located geographically from Alaska to the Hawaiian Islands and from Maine to Puerto Rico, we have to make some rather quick estimates at times. As the admiral indicated, we could always cover ourselves by adding excess contingent items to our estimates. We do not do that, however, as it always leads to a demand to spend any excess funds in an appropriation. Rather, we prefer to ask Congress for additional funds as we find it necessary. This building can be built for less money than we are asking for here, but neither the Public Printer nor ourselves believe, in view of the vast amount of study that has been put into this project, that this should be done.

Mr. TABER. When you get all through with the job, how much additional floor space will you have in the new lay-out as compared with what you had before?

Mr. GIEGENGACK. About 40 percent.

Mr. TABER. How much did you figure when you asked for your original limit?

Mr. HANSON. That actual increase is not so much. The main item of increase is the enlargement of the warehouse.

Mr. TABER. You have an increase of 60 percent in the warehouse, and you have about a 7-percent increase in the main building.

Mr. HANSON. That increase in the warehouse is due to the tracks now being inside the building instead of, as under the original plan, being outside the building. So the actual net increase in storage space in the warehouse is not so great.

The actual dimensions of the H Street building are exactly the same as originally contemplated, that is, as to length and width.

There is also increase of size resulting from the fact that what is now an alleyway between the two buildings will be made into basement space. This is 30 feet in width and 384 feet in length, and gives additional floor space added to what we call the H Street, or no. 3 building.

REASONS FOR INCREASED COST OF BUILDINGS NUMBER 1 AND NUMBER 2

Mr. WOODRUM. Admiral, will you proceed with your statement? Admiral PEOPLES. On the buildings no. 1 and no. 2 the original estimate was $100,000 for changes. The estimated cost of work in buildings no. 1 and no. 2 is $265,000; the estimated cost of added powerhouse facilities in building no. 3 to serve buildings no. 1 and no. 2 is $259,500.

At the time the original estimate was prepared, information with respect to what might be found to be necessary was limited, and with the concurrence of the Public Printer an arbitrary sum was set up.

A. Development of mechanical studies showed that to secure the economical operation of buildings no. 1, no. 2, and no. 3 as a unit it would be desirable to change the existing 25-cycle electrical installations to 60 cycles to be installed in new buildings, thus effecting material economies and greater efficiency in operation. This required the rewiring of old buildings for light and power, and changes in motors and other mechanical equipment.

B. The moving and reconnecting of existing mechanical equipment and tie-in to present buildings.

C. Miscellaneous betterments in existing buildings urgently needed to be made and more appropriately made while this building operation was in progress.

D. Additional lifts were found to be necessary for economical operation.

Moving, rent, furniture, and work originally contemplated to be done by the Government Printing Office, and not included in the estimate, amounted to an estimated cost of $613,125.

This item was never included in the original estimates as it was stated it would be taken care of by the Government Printing Office. This item, however, was included in the bill authorizing the appropriation, as stated, to give authority to make any unobligated balances after the award of construction contracts available for this purpose.

The following is a summary of deficits over the original estimate: Warehouse, building no. 4, $267,768; building no. 3, $1,269,607; buildings no. 1, and no. 2, $424,500; additional drawings and specifications, $50,000; moving, rent, furniture, and equipment, $613,125; and for new elevators required in old buildings, $288,000, making a total of $2,913,000.

Throughout the preparation of the drawings and specifications for this project the Procurement Division has worked in constant collaboration, and with the approval of the Public Printer and his assistants. Every effort to meet the requirements of the plant in the most econom

ical way, both from the standpoint of arrangement and construction, has been made and is reflected in the drawings and specifications.

At the time the preliminary drawings and estimates were made information was limited, and as the studies were advanced and complete analyses were made it was found that in the interests of economy, efficiency of operation, and the demands of increased production, major changes in space requirements, relocation of machinery, increased power plant facilities, air-conditioning, insulation, and a large number of important changes and additions were required.

Each has been given careful consideration and engineering study. The results presented are believed to set forth the least expenditures that will provide the facilities immediately required.

GENERAL ANALYSIS OF ENTIRE PROJECT

A general analysis of the entire project shows a total limited cost of $5,885,000.

The details of the general analysis are as follows:

Additional power-house facilities provided in building no. 3 for buildings no. 1 and no. 2...

$265, 000

Increase in cost of drawings and specifications (spent to Sept. 15, 1936, $121,762.50) _

259, 500

Moving, rents, furniture, and equipment, and work to be done by Government Printing Office.

Total estimated cost, exclusive of new elevators..

Available for construction. etc..

Estimated deficit.

Additional amount required for new elevators for old buildings.

Estimated deficit for the entire project...-

That accounts for the difference between the original limit of cost, $5,885,000 plus $2,913,000, the estimated deficit, and the revised estimate of cost of $8,798,000.

Mr. WOODRUM. What is the status of the warehouse now? Mr. MARTIN. It is scheduled for completion this October, and the other building is ready to go on the market or on the market now.

Mr. REYNOLDS. The increase in cost in the District of Columbia from the time this estimate was made affects this group of buildings by the amount of about $1,300,000.

Mr. MARTIN. The bids for the annex will be opened on June 29.

VALUE OF AIR-CONDITIONING

Mr. SNYDER. Let me make this one observation concerning the air-conditioning. You said with reference to the storage and care of paper in the past, that some of this storage of paper was affected by the atmospheric conditions within the plant.

Mr. GIEGENGACK. Yes.

Mr. SNYDER. If you get air-conditioning there will be a general saving?

Mr. GIEGENGACK. Yes, sir.

Mr. SNYDER. In other words, if you had a $100 job, if you get this plant completed as has been outlined here, with the consequent efficiency, the saving from paper would amount to about 10 percent, would it not?

Mr. GIEGENGACK. Yes, sir; I should say there would be efficiency and some saving in the use of paper. At the present time in the press rooms we have not sufficient time to get the paper properly ready for the presses for a particular job. Ordinarily, the paper has to be seasoned for a few days before it is ready for use in the press room in which it is to be run.

At the present time, under our present arrangement, we bring the paper in from the warehouse and put it on the presses on the same day. We have no facilities for seasoning the paper for use in the atmosphere in that particular press room.

There will be a saving of time in the running of the presses, but it is very hard to estimate just what that will be. The figure of 10 percent, I should say, is rather conservative, and I think it is reasonably correct.

Mr. TABER. What percentage of all the Government Printing Office work is regular stuff and what percentage of it is propaganda, colored literature, and all that kind of monkey work?

Mr. GIEGENGA CK. Well, Mr. Taber, the Government Printing Office does not do any color work.

Mr. TABER. They get that done outside?

Mr. GIEGENGACK. That is all done outside, by outside agencies, mostly.

Mr. TABER. How do they get that out? For instance, how does the Bureau of Reclamation get out all of that boloney that they publish?

Mr. GIEGENGACK. They submit the job to us for production, but we are not equipped to do that class of work. We give them permission to go out and get competitive bids and get it produced outside because we have no equipment with which to do color work.

We have no control over the printing. We cannot say whether it is to be produced or not.

Mr. LUDLOW. You printed a cow at one time in the Congressional Record, but it was not in colors.