33 U.S.C. § 624 : US Code - Section 624: Limitation on improvement work by private contract

Search 33 U.S.C. § 624 : US Code - Section 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.