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B-164031(2) 1 (1971-12-01)

handle is hein.gao/gaobableg0001 and id is 1 raw text is: RETfICMTEI - t~at in be reeaed *Ade the Genieral 1?)S AcoutigOffice except cma the bai .201 f I r a/ 0LRby the 0th of Congr~oszlmaI TES94 : OI-i LLi~ENERALOFT TED S Al Scr~ ~AHINGTON, D. 0148a B-164031(2) DEC (+ f( Dear Mr. Mailliard: On August 31, 1971, you requested our assistance in determining whether further delay in constructing a proposed /9 addition to the Dental Health Center in San Francisco, Cali- fornia, was essentialad in -the best interests of the Gov- ernment. // The Dental Health Center--a facility of the National, Institutes of Health (NIH), Department of Health, Education, and Welfare (HEW)--was-eslablished in 1961 as a center for applied research and training in the dental health field. In fiscal year 1966, $250,000 was appropriated for planning of an addition to the center, and in fiscal year 1968, $2,558,000 was appropriated for construction of the addition. In July 1966 the General Services'Administration, acting on behalf of NIH, awarded a contract to Neill Smith and Asso- ciates for design of the adclolnon which was to be used for research and training purposes. The final designs were com- pleted by the contractor in November 1970. NIH became aware in 1968 that the funds appropriated for construction were no longer sufficient and that an estimated additional $628,000 would be needed. In 1969 funds were re- programmed to meet the then-estimated construction cost of $3,186,000. The General Services Administration informed NIH in March 1970 that the estimated cost of construction, based on starting construction in fiscal year 1971, had again in- creased to $3,986,000. According to NIH officials these in- creases were caused primarily by the escalation of construc- tion costs. NIH officials said that they asked for $2.3 million in their fiscal year 1972 budget request, prepared in 1970, to cover (1) the $800,000 difference between the March 1970 esti- mate of $3,986,000 and the available funds of $3,186,000 and (2) $1.5 million for built-in equipment, such as television equipment for training purposes. An additional $1 million will be needed for non-built-in equipment. 50TH ANNIVERSARY 1921-1971 '

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