Statement on the Works Progress Program.

The President today by Executive Order No. 7083 prescribed rules and regulations relating to methods of prosecuting projects under the Works Progress Program.

As laid down in the regulations all projects must be prosecuted under one of four methods—force account, fixed price contract, limited price contract and management contract. The method may be designated in the application for the allotment, but be subject to the approval of Works Progress Administrator Harry L. Hopkins, who may designate another method to be used.

On each job, by whatever method prosecuted, not fewer than 90 percent of all employees, with some few possible exemptions, must be taken from relief rolls and be certified by the United States Employment Service.

As defined in the regulations the "force account method" involves the employment and supervision of all persons employed on a project by the supervisory agency, which is defined as meaning the department, Federal agency, State, Territory, Possession, Subdivision or agency thereof, municipality, the District of Columbia or public bodies thereof, which conducts the project.

The fixed price contract method calls for awards based on competitive bidding involving the payment to the contractor of a fixed sum for the entire job or specified units, which shall cover all items of cost except materials, supplies and equipment which are to be supplied by the Government.

The limited price contract provides for awards based on competitive bidding calling for the payment of fixed sums for completed projects or specified units thereof, which will include all items of cost other than labor employed at the site of the project, and the cost of materials and equipment to be furnished by the Government.

On this type of contract the contractor must pay those employed on the job the wages fixed by the President for those taken off relief, for which payment the contractor will be reimbursed.

The management contract is to be awarded on the basis of competitive bidding on specifications requiring the contractor to administer, supervise and manage the project, provide all materials and equipment save such as the Government may provide and pay all persons employed on the job wages fixed by the President for persons taken off relief and be paid a fixed amount for supervision and management of the project and for the use of equipment plus all wage payments.

Every contractor on the job will have the right, subject to disapproval of the Works Progress Administration, to dismiss any employee or return any employee to the United States Employment Service for reclassification.