COMMENTS OF THE ARCHITECT OF THE CAPITOL

ARCHITECT OF THE CAPITOL, Washington, D.C., September 27, 1969.

Hon. JENNINGS RANDOLPH,
Chairman, Committee on Public Works,

U.S. Senate.

MY DEAR MR. CHAIRMAN: The following report is submitted pursuant to request for such report received from you, September 23, 1969, on S. 2910 to amend Public Law 89-260 to authorize additional funds for the Library of Congress James Madison Memorial Building. This bill results from action taken by the House Committee on Appropriations and by the House, itself, in approving funds in the 1970 legislative branch appropriation bill for detailed plans, specifications, and related expenses for such building, subject to a requirement that legislation first be enacted adjusting upward the authorized limit of cost for this building to reflect escalated construction costs, before the funds provided in the 1970 bill may be obligated or expended.

The following statement contained in House Report 91-487, September 11, 1969, is self-explanatory with respect to this action of the House committee and the House itself:

"In connection with the proposed James Madison Memorial (third) Library of Congress building, authorized by Public Law 89-260, October 19, 1965, to be constructed on square 732 just east of the Cannon House Office Building, the committee recommends $2,800,000 for detailed plans and specifications and related expenses. The sum of $500,000 was appropriated in 1965 for preliminary plans and designs and cost estimates.

"The budget request is for $18,410,000 which, in addition to the $2.8 million, includes excavation and sheeting, the foundations and walls up to the first floor, and the contract for marble, granite, or other stone. But especially because of an authorization problem. noted below, and the leadtime for preparation of the detailed plans, the committee sees no need to go beyond the $2.8 million figure at this time.

"The committee has coupled to the $2,800,000 for plans and specifications a provision which says:

"That availability of these funds for obligation shall be contingent upon enactment of legislation adjusting the limit of cost of the project (fixed by section 3 of such act) to reflect projected escalated construction costs required to complete the project on the basis of the preliminary plans heretofore approved by the committee and commissions designated in such act."

"The reason is this: The 1965 enabling act, in section 3, carries a specific ceiling of $75 million on the project, and the floor debate in the House is quite clear and unequivocal that it was the intent at the time that nothing should compromise the option of the authorizing committee, or of course the House, to take another look at the matter if unforeseen or unforeseeable conditions should cause the cost of the complete project to breach that ceiling. Construction cost escalation has now done that. The project as projected in the preliminary plans

S. Rept. 91-454

has not changed, but costs have. And the assumption is that they will continue to increase. The currently projected cost, on the basis shown on page 177 of the hearings, is $90 million.

"The committee was told that no increase in the cost limitation had been sought. The effect of the proviso attached to the $2.8 million is to render the funds unavailable until this situation is remedied.

"The committee decided, despite the authorization problem, to put the $2.8 million in the bill on the contingent basis in the thought that by doing so, initiation of the project would be expedited. It is badly needed.

"This committee has been aware of the need, the overcrowded conditions in the Library for a good many years.

"Congress formally recognized the need when it enacted the authorization law in 1965.

"Twice before, a request for the project has been before the committee. Both times, it was deferred without prejudice.

"But the Library continues to grow. Time is running. Growth of a great research library is inevitable. The committee has been told that present space needs increase by roughly 45,000 square feet a year.

"The Library is now scattered in a dozen different locations. Rental and associated costs approximate $1,820,000 in the current budget. The situation will get worse before it can get better. If the project moves forward this year, it will still be mid-1974 at the earliest before the building can be occupied.

"A great deal of information about the details of the project appears on pages 157-184 of the hearings. Besides the $90 million currently estimated construction cost of the project, furniture and furnishings including bookstacks would add roughly $10 million, and the rough estimate of changes and additions at the Capitol powerplant to supply heat and air-conditioning to the building ranges up to another $10 million, for an approximate overall total of $110 million.

"Another noteworthy feature is that the preliminary plans call for a completely flexible design, that is, the building is to be designed so that it can be used as part library stack-part office building, all library stack use, or all office building."

The following pertinent discussions on pages 171-177 of the House hearings give the further basic information bearing on this matter: "Mr. ANDREWS. You don't have any idea what the building as planned will cost?

"Mr. HENLOCK. Mr. Campioli may want to speak to that point. I understand he has been advised by the Associate Architects that all the escalation included in the original $75 million estimate has already been used up, to date.

"Mr. CAMPIOLI. In the original estimate, prepared in 1967, the Associate Architects provided 3.2 escalation for a 4-year period. That 3.2 escalation is now completely absorbed according to present known cost indexes; the Associate Architects estimate that the $75 million project is now up to $90 million.

"Mr. ANDREWs. In other words, instead of $75 million it is now $90 million?

"Mr. CAMPIOLI. Yes, sir.

"Mr. ANDREWS. Under the present authorization only $75 million could be appropriated?

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"Mr. CAMPIOLI. Yes, sir.

"Mr. ANDREWS. It would take legislative action to go beyond the $75 million?

"Mr. HENLOCK. That is correct.

"Mr. ANDREWs. Under the law as of today, this committee or Congress, if they saw fit, could appropriate $75 million? "Mr. HENLOCK. That is correct.

"Mr. ANDREWS. What has been the average annual construction cost escalation since 1965?

"Mr. CAMPIOLI. I have analyzed this escalation on the basis of the 1967 estimate.

"The first year the escalation was 3.24 percent and then last year it was 7.38 percent. The indication, as of the March issue of the Engineering News Record, is that the increase during this year is currently forecast at 9.1 percent. Other agencies indicate 10 to 12 percent as the figures they are now using.

"Mr. ANDREWS. Is that the most current rate?

"Mr. CAMPIOLI. Yes, sir.

"Mr. ANDREWS. What is the rationale for the $90 million? What does it assume in the way of cost escalation?

"Mr. CAMPIOLI. It assumes an escalation from here on in based at 7 percent in lieu of the indicated increase of Engineering News Record of 9.1 percent.

"Mr. ANDREWs. Seven percent each year?

"Mr. CAMPIOLI. Yes, compounded each year on expenditures projected for that year.

"Mr. ANDREWS. Can you update the estimated cost of the work, the $75 million list shown in last year's hearing? We would like to have that and we would want the record to be clear, especially as to the basis of any new cost estimate, the $90 million or whatever figure you have in mind.

"Mr. CAMPIOLI. Yes, sir."

(The table supplied follows:)

LIBRARY OF CONGRESS JAMES MADISON MEMORIAL BUILDING COMPARATIVE ESTIMATES OF COST OF PROJECT 1967 AND 1969

LIBRARY OF CONGRESS JAMES MADISON MEMORIAL BUILDING COMPARATIVE ESTIMATES OF COST OF PROJECT 1967 AND 1969-Continued

4-year cost escalation: 1968-71 3.2 percent compounded annually on cost of work to be done in each year..

4-year cost escalation: 1970-73 7 percent compounded annually on cost of work to be done in each year.

Contingency.

Total.

Total estimated cost of project...

1 Estimated escalation costs during the 4 construction years, 1970 through 1973, were determined by first distributing the total direct building cost of $74,630,000 into annual expenditures and then applying cumulative escalation percentages to each annual amount. Expenditures and escalations are based on the following:

The foregoing table is applicable to expenditures authorized by Public Law 89-260.

With respect to additional expenditures necessary in connection with the project for furniture and furnishings including bookstacks stated in the House report as being presently estimated to cost in the neighborhood of $10 million, this item will, in accordance with past practice, be the subject of a separate authorization bill to be drafted and considered at such future time as occupancy and other details are firmly established and more fully developed to enable preparation of a dependable cost estimate.

With respect to additional expenditures necessary in connection with the projectfor changes and additions at the Capitol Power Plant to supply heat and air-conditioning to the new Library Building, which as stated in the House report also may run as high as $10 million, this item also, in accordance with past practice, will be submitted for consideration in a separate authorization bill for Capitol Power Plant expansion after necessary studies are conducted and completed for additional powerplant requirements to be made under an allocation of $50,000 made available by the House for such study in the 1970 legislative branch appropriation bill.

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In this connection, the House report stated:

"In connection with operation of the Capitol Power Plant, all items in the budget are recommended, and in addition, $50,000 has been added so that a study of powerplant expansion needs to service the Madison Memorial Library building-initial funding of which is recommended by the committee can proceed concurrently with preparation of detailed plans for the Library project. The horseback estimate is that up to $10 million would be so involved."

As matters now stand, enactment of the proposed legislation will meet the requisite conditions prescribed by the House with respect to appropriations and use of funds, it it is the desire of your committee that work under this project proceed further at this time. Yours very truly, J. GEORGE STEWART, Architect of the Capitol.

CHANGES IN EXISTING LAW

In compliance with subsection (4) of rule XXIX of the Standing Rules of the Senate, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

JOINT RESOLUTION APPROVED OCTOBER 19, 1965

(Public Law 89-260)

JOINT RESOLUTION To authorize the Architect of the Capitol to construct the third Library of Congress building in square 732 in the District of Columbia to be named the James Madison Memorial Building and to contain a Madison Memorial Hall, and for other purposes.

SEC. 3. There is hereby authorized to be appropriated not to exceed [$75,000,000 $90,000,000 to construct the building authorized by this joint resolution (including the preparation of all necessary designs, plans, and specifications).