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B-177148 1 (1973-04-17)

handle is hein.gao/gaobaagfv0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED 5-OTES WASHINGTON. D.C. 205483 B-177148 APR 1 7 1973 The Honorable Thomas F. RaisbackIIIIIIIII 11111 l House of Representatives LM096398 Dear Mr. Railsback: In response to your requests of September 26, 1972, and January 24, 1973, and discussions with your office, we examined the _ontrac awrd for constructingapubjc ho siig oject (ILL.-18-6) for the qer in Rock Island, Illinois. The Department of Housing and Urban Development (HUD) is financing the project under its low- rent housing program. We examined (1) HUD's basis for rejecting the proposal submitted by the Waters Construction Company (Waters) and th selection of the Com-Fam Corporation (Com-Fam) as the project developer and (2) ques- tions raised by Mr. Chris Maiwald in his letters to you dated Septem- ber 21 and November 8, 1972. Enclosed is a copy of our report to Congressman Robert H. Michel on consideration givem to a proposal submitted by C. Iber & Sons, Inc. (Iber), Peoria, Illinois. We interviewed officials and reviewed records at HUD headquarters, Washington, D.C., and HUD regional and area offices in Chicago, Illi- nois, and the Rock Island Housing Authority (authority). We also interviewed Mr. Maiwald and Mr. Loren Benson of Maiwald-Benson and Associates, the architects for Waters. Our review is discussed in the following paragraphs and in enclosure I. Exhibits A and B contain the first floor plans included in the Waters and Com-Fam proposals, respectively. BACKGROUND On May 5, 1971, HUD approved a project for developing a 200- dwelling-unit high-rise building for the elderly im Rock Island, The authority chose the turnkey method for providing t.e low-rent housing units. Under this method a local housing authority (LHA) solicits proposals from developers to build low-income housing of their oin design and of good design, quality, and workmanship on a suitable site of the d(veloper. The turnkey method differs from the conventional bid method in which an LHA solicits competitive bids for the construc- tion on its site in accordance with its detailed plans and specifica- tions. Because proposals received by the LHA under the turnkey method Zi~'~ _____

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