§624 — Title 33 Navigation and Navigable Waters | U.S. Code

Summary

Private contracts cannot be used for river and harbor improvement work in two cases. If the Secretary of the Army, through the Chief of Engineers, finds government-owned plant can do the job and a private contract would cost more than 25 percent above the estimated government cost. Or if the contract price is more than 25 percent above a fair estimated cost for a well‑equipped private contractor. When making those estimates the Secretary, through the Chief of Engineers, must count labor, materials, depreciation, supervision and overhead, interest on capital (but the interest rate cannot exceed the maximum prevailing rate the United States is paying on current bonds or similar debt), and other appropriate charges. Private-cost estimates must also include workers’ compensation, liability insurance, and state and local taxes.

Title 33, §624

Navigation and Navigable Waters — Source: USLM XML via OLRC

(a)No works of river and harbor improvement shall be done by private contract—

(1)if the Secretary of the Army, acting through the Chief of Engineers, determines that Government plant is reasonably available to perform the subject work and the contract price for doing the work is more than 25 per centum in excess of the estimated comparable cost of doing the work by Government plant; or

(2)in any other circumstance where the Secretary of the Army, acting through the Chief of Engineers, determines that the contract price is more than 25 per centum in excess of what he determines to be a fair and reasonable estimated cost of a well-equipped contractor doing the work.

(b)In estimating the comparable cost of doing the work under subsection (a)(1) by Government plant the Secretary of the Army, acting through the Chief of Engineers shall, in addition to the cost of labor and materials, take into account proper charges for depreciation of plant, all supervising and overhead expenses, interest on the capital invested in the Government plant (but the rate of interest shall not exceed the maximum prevailing rate being paid by the United States on current issues of bonds or other evidences of indebtedness) and such other Government expenses and charges as the Chief of Engineers determines to be appropriate.

(c)In determining a fair and reasonable estimated cost of doing work by private contract under subsection (a)(2), the Secretary of the Army, acting through the Chief of Engineers, shall, in addition to the cost of labor and materials, take into account proper charges for depreciation of plant, all expenses for supervision, overhead, workmen’s compensation, general liability insurance, taxes (State and local), interest on capital invested in plant, and such other expenses and charges the Secretary of the Army, acting through the Chief of Engineers, determines to be appropriate.

Notes & Related Subsidiaries

Editorial Notes

Codification Section is from the Rivers and Harbors Appropriation Act of 1919.

Amendments

1978—Pub. L. 95–269 designated existing provision as subsec. (a), substituted provisions relating to determinations by the Secretary of the Army, acting through the Chief of Engineers, respecting contract prices for performance of works of river and harbor improvement by a Government plant or by a well-equipped contractor as a limitation on performance of the work by private contract, for provisions relating to limitation on use of funds for works of river and harbor improvement pursuant to private contract based on estimation of cost for performance of work by Government plant and factors constituting cost estimation, and added subsecs. (b) and (c).

Statutory Notes and Related Subsidiaries

Compensation for Increased CostsProvision for payment to contractors to compensate for loss occasioned by increased cost of materials during the war with Germany was made by section 10 of act Mar. 2, 1919, and act

June 5, 1920, ch. 252, § 5, 41 Stat. 1014. Repeal of Limitation on CostsA provision for limitation on the costs of projects made by section 1 of act Mar. 2, 1919, was repealed by act

June 5, 1920, ch. 252, § 3, 41 Stat. 1013.

§624 Limitation on Improvement Work by Private Contract