Unobligated balance brought forward.-A total of $16,844,583 from prior year appropriations is brought forward in fiscal year 1967. Of this amount, $3,820,000 is needed for construction of Beltsville Laboratory No. 1, and $15,000 for portable equipment for the Animal Whelping Building. The balance of $13,009,593 is for completion of the current district office modernization program, including construction at Chicago, Denver, New Orleans, Philadelphia, St. Louis, San Francisco, and Seattle.

Headquarters laboratory facilities.-An amount of $950,000 is requested to plan a second laboratory building to house approximately 650 scientific personnel at the Beltsville site.

District office facilities.-A total of $3,130,000 is requested for the field facilities program. Of this amount, $398,000 is requested to provide portable equipment for the St. Louis and San Francisco district offices. Additional construction funds in the amount of $1,732,000 are requested for underfunded planning, site acquisitions, and construction costs at Chicago, Denver, New Orleans, and Philadelphia. An amount of $1 million is requested to permit new fixed equipment contracts for the Chicago, St. Louis, and Seattle district offices.

Planning funds amounting to $245,000 were appropriated in fiscal year 1964. Funds amounting to $3,740,000 were included in the fiscal year 1965 Appropriation Act to prepare a site and construct the building. The following factors are responsible for the delays experienced to date:

1. The original schedule did not consider the FDA reorganization of February 1964. Necessary program changes delayed the project 9 months.

2. Originally, it was estimated that it would take 1 month to award the planning contract. In actuality, it took 3 months, thereby causing a delay of 2 months.

3. Construction was originally planned to take 15 months. Eighteen months now appear necessary, thereby increasing the project delay by 3 months.

4. Originally, it was estimated that approval of the original submission of diagrammatics by the architect-engineer would require 2 weeks. In actuality, the resubmissions have taken an additional 4 months.

5. Delays in approval of diagrammatics and resolution of project funding caused a 5-month lag in the project.

The following table compares the construction schedules for Beltsville Laboratory No. 1:

1 Major reorganization (effective February 1964) changed occupants and program, thus requirements.

FISCAL YEAR 1967 PROGRAM INCREASES

Beltsville Laboratory No. 2

In recent years, funds have been appropriated to provide FDA with modern and efficient laboratory facilities for all of its scientific staff, both at headquarters and in the field. This program of improved laboratory facilities was undertaken to correct the substandard facilities occupied by FDA prior to 1960. The program has been supported by both the executive branch and by the Congress. This program is well along in the field. However, at headquarters, despite

the recent completion of the downtown Washington headquarters building (FB-8), satisfactory housing for all present and future scientific staff is not yet in sight. In fiscal year 1966, conversion of 15,000 square feet of office space to laboratories in FB-8 will ease the space situation slightly, but no major relief will be obtained until the early part of fiscal year 1969 when Beltsville Laboratory No. 1 will be occupied. By then, the headquarters scientific staff again will have expanded beyond our building capacities. FDA's long-range forecast projects a buildup in the headquarters scientific staff of approximately 150 or more per year through fiscal year 1970. This growth is necessary if the agency is to meet the scientific and technological problems that will confront us over the period, and the consequent emphasis that must be placed on our research facilities.

A projection of the FDA scientific staff needing laboratory facilities, assuming a growth rate of about 150 per year, indicates a space deficit for approximately 650 positions in fiscal year 1970 under current facility planning. This is because some space currently occupied must be relinquished in the next several years, and Beltsville Laboratory No. 1 will not be ready for occupancy until the early part of fiscal year 1969.

To alleviate this headquarters space deficit, funds are requested in this budget for planning a second research laboratory building at Beltsville to house a staff of approximately 650 people. This facility, which would become available in fiscal year 1971, would permit FDA to concentrate its scientific staff in two locations: FB-8 and Beltsville. In turn, this will permit better communication between our scientists and administrators and their colleagues in the Washington scientific community.

The fiscal year 1966 President's budget requested funds for a second laboratory at Beltsville. However, planning authority for that facility was not granted in the fiscal year 1966 appropriation. Not having this facility will hamper the agency's research and other scientific projects, and may necessitate continuation of laboratory operation under crowded conditions in substandard space, etc., until facilities are authorized and become available.

An amount of $950,000 is requested for planning this 650-man facility which will. in addition to the scientific staff, make provisions for the necessary maintenance and custodial staff for the Beltsville complex. The construction schedule for Beltsville No. 2 is as follows: Program requirements, December 1966; planning contract award, February 1967; planning phase completed, August 1968; construction contract award, December 1968; construction completion, September 1970.

Funds have been previously appropriated for construction of the facilities and all related fixed (built-in) equipment at two new district offices at St. Louis and San Francisco. There still remains, however, a requirement for portable equipment which is essential to full utilization of these facilities. Funds in the amount of $398,000 are requested for the purchase of this equipment in order to complete all equipment requirements for the district office modernization program.

FISCAL YEAR 1967 PROGRAM INCREASE

(a) Additional district construction costs

Under FDA's district office modernization program initiated in 1958, the first 10 offices were lease-construction facilities built according to commercial standards. In 1963, a change in GSA's appropriation language prohibited this method of facility acquisition. This prohibition necessitated the establishment of a new account, "Buildings and Facilities," in the fiscal year 1964 budget and FDA became involved in direct Federal construction. The seven remaining district offices had to be constructed under more rigid Federal construction standards which, consequently, require higher initial costs. In addition, the increase in price indexes during the construction delays increased the initial costs. It soon became apparent that budgetary construction estimates for these seven projects, developed on the basis of less costly commercial standards, were too low. To remain within appropriated funds, modifications to construction standards were worked out with GSA, where possible. However, these modifications did not reduce construction costs enough and, therefore, a reduction in the size of several districts was determined necessary to prevent further delay in construction. Three districts were selected for reduction by 50-man increments. This revised field construction program was accepted by GSA and repriced to remain within the amount originally budgeted for the districts.

Based on this revised plan, architect and engineering contracts were negotiated by GSA in fiscal year 1965 for all seven of the remaining districts, and site acquisition was permitted to proceed.

In August 1966, we received revised estimates from GSA which show that a total funding deficit of approximately $1.7 million still remains, based on their negotiations with the contract architect (see table below). This deficit relates to underfunded planning, site acquisition, and construction costs at Chicago, Denver, New Orleans, and Philadelphia. After considering the number of adjustments to building sizes and requirements that have already been made, there appears to be no way to adequately finance the projected building program within current resource limitations, short of a further reduction in the planned capacity of all of the buildings.

As the construction schedule now stands, if the necessary funds are made available, GSA will be able to award the construction contracts for the seven remaining districts between November 1966 and March 1967. Otherwise, this program will be deferred even longer. Therefore, funds in the amount of $1,732,000 are requested to insure completion of the current district office construction program.

Underfunded field construction projects

Under the lease-construction program, FDA budgeted for fixed equipment for the buildings. In fiscal year 1962 when the lease-construction program was still in effect, fixed equipment funds were appropriated in FDA's annual appropriation act for the Chicago, New Orleans, and Seattle districts.

In carrying out the Congress' intent to use the funds for that purpose, fixed equipment contracts were executed for these three districts in fiscal year 1962 and FDA planned to notify the contractors of the estimated date of construction completion to allow sufficient time to fabricate and install the equipment. As a

minimum, this normally involves a period of about 5 months. However, because the changeover to direct Federal construction and financing problems delayed the construction program, there has been no need to notify the contractors to proceed on these contracts. In fiscal year 1967, the construction awards for these districts will be let. It is standard and desirable practice to award the fixed equipment contracts at the same time. However, it is not practical to assume that these 5-year-old contracts can be renegotiated to provide the same performance specifications at the same price as was originally budgeted.

The Department intends to bring this matter to the attention of the General Accounting Office, and it is likely that a formal opinion will be rendered. It is also assumed that GAO will allow the existing contracts to be canceled and that new ones will be let. This assumption is based on: (1) the nearly 5-year delay that has occurred on these contracts, (2) the fact that one of the contractors has indicated that he intends to seek cancellation of his contract, and because of the time period involved, he most likely could obtain cancellation, (3) the fact that the building capacities for Chicago and Seattle have been increased, and (4) the developments that have occurred and the experience gained over the years that would tend to make the original equipment specifications unacceptable. Therefore, in anticipation of the current contracts being canceled, funds in the amount of $1 million are requested to provide fixed equipment for the Chicago ($400,000), New Orleans ($400,000), and Seattle ($200,000) districts. The previously appropriated salaries and expenses funds ($755,000) would lapse and revert to the Treasury except for approximately $23,000 which is necessary to reimburse the contractors for expenses incurred and satisfactory work accomplished.

DESIGN, EQUIPMENT, AND PLANNING

Dr. GODDARD. We are requesting an increase of $4 million for buildings and facilities programs; $3.1 million is needed to complete district facilities already in the process of being designed and to provide the equipment they need, and $950,000 is requested to initiate planning for an additional research facility.

DISTRICT OFFICE CONSTRUCTION

The sum of $398,000 is requested for fixed equipment for the St. Louis and San Francisco district offices which are scheduled to be completed in June 1968. This will complete the funding for these buildings.

The sum of $1.7 million is requested to adequately finance construction programs already approved in Chicago, Denver, New Orleans, and Philadelphia. Initial construction funds for these district offices were provided in fiscal years 1964 and 1965. FDA awarded the design contracts for these district offices during the period between February and May of 1965. We have received revised estimates from the General Services Administration which indicate that a funding deficit of approximately $1.7 million still remains. This is based on negotiations between GSA and the contract architects. FDA has, in concert with GSA, made a number of adjustments to the configurations of these buildings. There appears to be no way to adequately finance the projected building program within current resource limitations short of further reduction in the planned capacity of all of the buildings. If the necessary funds are made available, the construction contracts for these district offices will be awarded between November 1966 and March 1967. We request this support for this item in order to insure the completion of the district office construction program as initially intended.