§ 624. — Limitation on improvement work by private contract.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 33USC624]
TITLE 33--NAVIGATION AND NAVIGABLE WATERS
CHAPTER 12--RIVER AND HARBOR IMPROVEMENTS GENERALLY
SUBCHAPTER V--PROSECUTION OF WORK GENERALLY
Sec. 624. Limitation on improvement work by private contract
(a) Determinations respecting comparison of private contract price with
estimation of cost of performance of work by Government plant or
by well-equipped contractor
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) Considerations involved in determinations of estimation of cost of
performance of work by Government plant
In estimating the comparable cost of doing the work under subsection
(a)(1) of this section 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) Considerations involved in determinations of estimation of cost of
performance of work by well-equipped contractor
In determining a fair and reasonable estimated cost of doing work by
private contract under subsection (a)(2) of this section, 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.
(Mar. 2, 1919, ch. 95, Sec. 8, 40 Stat. 1290; Pub. L. 95-269, Sec. 2,
Apr. 26, 1978, 92 Stat. 219.)
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).
Compensation for Increased Costs
Provision 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, Sec. 5, 41 Stat. 1014.
Repeal of Limitation on Costs
A 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,
Sec. 3, 41 Stat. 1013.
