Certified to be a true copy of a Minute of a Meeting of the Committee of the Privy Council, approved by His Excellency the Governor General on the 26th November 1942.
The Committee of the Privy Council have had before them a report dated 26th November, 1942, from the Minister of Munitions and Supply representing that Order in Council P.C. 5051 of July 9, 1941 and subsequent amendments thereto, authorized entry into a contract, at a ceiling price of $5,342,015.00, with Anglin-Norcross Maritime Limited, Montreal, P.Q., covering the construction of certain buildings at the Naval Training Centre, Nelson Barracks, Halifax, N.S., required by the Department of National Defence (Naval Services);
That the Department of National Defence (Naval Services) has now requested the department to arrange for additional construction work necessary as a result of a. decision to expand the said training centre, consisting of: (1) alterations to signals and asdic building; (2) guard house; (3) workmen's camps; (4) changes in power substation; (5) C.P. & P.O. building; (6) physical training centre; (7) additional sewer, water and road facilities; (8) additions to Block "A".
That in view of the close relation of this additional work to the work already being carried out at the site by the present contractor it is considered that such additional work can best be performed by the present contractor and that it is not practicable to call for tenders;
That the contractor has accordingly been asked to quote on the additional work, and has submitted prices as follows:
(1) Alterations to signals and
asdic building $ 80,743 00
(2) Guard house 106,088 00
* (3) Workmen's camps 225,000 00
(4) Changes in power substation 8,250 00
(8) Additions to Block "A".. 3,000 00
That it is proposed to award the work for the above listed items on the basis of the prices quoted subject, however, to the provision that such prices are to be considered as ceiling prices and that in no event will the contractor be paid an amount greater than the actual cost of the. work plus 5% of such cost. The actual cost will be determined in accordance with the terms of the original contract;
That the plans for the three remaining items are not yet complete so that it is not possible to obtain quotations for them. The estimated cost of such items is as follows:
(5) C.P. & P.O. Building .... $621,887 00
(6) Physical training centre.. 638,000 00
(7) Additional sewer, water
and road facilities 300,000 00
That it is proposed to award the work for
these three items on the understanding that the contractor will quote prices for them as soon as possible, which prices will then be considered as ceiling price, subject to the provision above described;
That it is proposed to cover the above additional work by an amendment to the existing contract;
That funds to cover the estimated additional expenditure of $1,982,968, are provided by Department of National Defence (Navy) Financial Encumbrance No. 5721 as amended October 27, 1942.
The committee, therefore, on the recommendation of the Minister of Munitions and Supply advise that authority be granted for an amendment to the said contract with Anglin-Norcross Limited in accordance with the foregoing.
A. D. P. Heeney, Clerk of the Privy Council.
The Minister of National Defence.