10-36-80/5 TD 3030 (DCEC)
February 1, 1963
The Secretary,
The Treasury Board,
Department of Finance,
Confederation Building,
Ottawa, Ontario.
Attention: Mr HA Davis
Dear Sir:
Re: Gap Filler Programs
Construction Status
When the Gap Filler Programme was deferred last year, instructions were issued to Defence Construction (1951) Limited to cease work at all sites and to arrange for termination of the contracts. Revised DND8's were to be issued when contract termination charges were known. DND13's were forwarded to Defence Construction (1951) Limited to cancel all DND8's at sites where contracts had not been awarded.
It has taken considerable time for Defence Construction (1951) Limited to negotiate the termination charges and, to date, it is understood that only two have been forwarded to you for contract amendment confirmation. It is now this Department's intention to proceed with the completion of the programme and provision for this has been made in RCAF estimates for 1963-64. Because of early reactivation of work on sites under contracts it may be more economical to accept delay charges in some instances rather than to terminate. At the present time Defence Construction (1951) Limited does not have sufficient information to make firm recommendations at all sites and they are continuing with their negotiations to determine which is the most economical arrangement, termination or deferment.
A meeting was held on January 21, 1963, attended by Defence Construction (1951) Limited, Department of National Defence and RCAF representatives to review the programme and make recommendations. At many sites where the work is more than 90 percent complete, there is not enough work remaining to warrant a general contractor and, at these sites, it was considered best to terminate the contract. The attached letter has been sent to Defence Construction (1951) Limited confirming these discussions and requesting them to proceed with the negotiations as suggested.
This information is forwarded to you to provide you with the current data and action being taken on the Gap Filler Programme. It is understood that DCL have forwarded to you proposals for terminating the contracts at Nicolet, PQ and Manitouwadge, Ont It is recommended that these contract amendments be approved.
Yours sincerely.
(EB Armstrong)
Deputy Minister