10-36-80/5 TD3030 (DCEC)
Defence Construction (1951) Limited,
No 4 Temporary Building,
Ottawa, Ontario
Dear Sir:
Re: Gap Filler Programme
Status of Construction Contracts.
The portion of the Gap Filler Programme which is under contract was reviewed at a meeting held on 21 January 1963 in the offices of the DCL. Representatives from DCL, ADM (C&P) and RCAF/CCE were in attendance. Contracts have been awarded at 25 sites and the construction progress varies from 10 percent to 95 percent. The preparation of plans and specifications is under way for the remaining 20 sites.
When the decision was made to defer the Gap Filler Programme, the revised estimated RCAF expenditure for the 1962-1963 fiscal year was based on the assumption that all termination charges would be paid before 1 April 1963. However, since the programme has now been approved as carry-over into 1963-1964 it may be more economical in some instances to negotiate with the contractor and accept delay rather than termination charges. Although no physical work is to be done before 1 April 1963, all termination and delay charges should, if possible, be paid this fiscal year. It was agreed the DCL would investigate the status of each contract to determine the best arrangements for termination or deferment and would advise DND of their findings.
As discussed the RCAF is revising the specifications for the access roads to all sites where the road is not yet completed. This revised specification will require the general contractor to provide suitable access for his own construction and for subsequent operation of tracked vehicles.
It was noted that none of the diesel units have been installed. In general the RCAF indicated at a meeting that possibly the most economical method of installation of these units would be one contract for this work at all sites. Where there is limited other work to complete it is possible that final cleanup can be undertaken more economically by the service itself rather than by extending contracts.
Attached at Appendix "A" are some general comments that will serve as a guide for the negotiations. DND concurrence should be obtained before any action to amend contracts is taken. The RCAF wil issue a revised DND8 if the present contractor is to proceed with the project and/or such revised specifications and new DND8's as required to complete the projects.
Yours truly,
(EB Armstrong)
Deputy Minister
APPENDIX "A"
TO: 10-36-80/5 TD 3030 (DCEC)
Algonquin Park, Ont. - Complete except for diesel. Not sufficient work left to warrant general contractor. Recommend termination.
Atikokan, Ont. - Complete except for diesel. Does not warrant general contractor. Recommend termination.
Batchawana, Ont. - DCL to investigate whether termination or delay charges are the most economical. Revised specifications required.
Biscotasing, Ont. - Road turned over to ADC for maintenance. DCL to investigate and make recommendations although delay charges appear preferable.
Belleterre, Que. - Project almost complete. Not sufficient work to warrant a general contractor. Recommend termination.
Bridgetown, NS - DCL to investigate whether termination or delay charges are the most economical; termination preferred.
Chapleau, Ont - Road passable. DCL to investigate whether delay or termination charges are the most economical.
Elliot Lake, Ont. - Not sufficient work remaining to warrant general contractor. Recommend termination.
Formosa, Ont - Not sufficient work remaining to warrant general contractor. Recommend termination.
Lac Ste Marie, Que - Not sufficient work remaining to warrant general contractor. Recommend termination.
La Tuque, Que - Present information indicates delay charges most economical. DCL to negotiate.
Marathon, Ont - Some difficulty terminating. However RCAF representatives consider termination preferable even though termination charges may be high due to extra charges for road work. Contractor would probably claim an extra in either case.
Nicolet, Que - Insufficient work remaining to warrant use of general contractor. It is understood termination charges are favourable and that DCL have asked TB approval. Recommend termination.
Oba, Ont - Delay charges appear most economical. Recommend DCL negotiate deferment.
Nipigon, Ont - Contractor may have claims for major extras. RCAF representatives recommended that termination appears advisable.
St Joseph, NS - Not sufficient work left to retain general contractor. Recommend termination.
Scotch Settlement, NB - Work remaining does not warrant general contractor. Recommend termination.
Timmins, Ont - Complete except for diesel. Recommend termination.
Tobermory, Ont - Project almost complete except for diesel. Recommend termination.
Todd Mtn, NB - Not sufficient work left to warrant general contractor. Termination recommended.
Westport, Ont - DCL to investigate and negotiate delay charges if possible. If present contract is terminated new plans and specifications will be required.
Summerville Centre, NS - DCL to investigate both termination or delay charges and make recommendations.
Lucknow, Ont - Road passable. DCL to investigate and if possible negotiate delay charges.
Manitouwadge, Ont - It was agreed that termination was best choice at this site. The termination of this contract has been passed to TB for approval.
Sparta, Ont - Road Passable. DCL to investigate whether termination or delay charges are the most economical.