Document jmxR8yOarzXyevDBb4OR0XEMy

1 EXHIBIT * CT-19 Pipe Purchase is THE NASHVILLE TENNKSEAN, frid.y. Pet, 20, I9S7 Plan Defended Waterworks Director Bv FRANK RITTER Robert L. Lawrence Jr., Metro waterworks director, said yesterday be can "find no fault" with purchase prac tices which have resulted in one company supplying prac tically all Metro's iron water pipe the past five years. When asked by a member of Metro Council's purchasing committee why the James B. Clow & Sons Co. consistently bids low on iron pipe in Nashville, Lawrence replied: "I SAY THAT is a good question. But when I make 'comparisons, looking at what other cities are paying, 1 see nothing wrong--unless there, is widespread collusion over the whole country. . "There is nothing to indicate to me that collusion exists between the pipe suppliers. There is nothing we ' could dispute or find fault with at all." ' The waterworks director added that if anyone suspects collusion in patterns of bid ding on -municipal iron pipe, he should counsult with Ute J.S. district attorney general about it. DURING A lengthy and frequently heated session be fore the council committee, headed by Councilman James J. La Penna, Lawrence made these disclosures: Metro is paying more for iron water pipe than such cities as Memphis. Clarksville, Louisville. Cookeville. Cleve land, Tenn.. and Columbia. This, however, is because Defends Pipe Buying (Continued From Page One) Metro buys a superior grade of pipe, Lawrence said. Only about 20% of the cities and other pipe-users across the nation use the so- called "superior" type of pipe now used in Nashville. The other 80% have turned to another, cheaper grade of pipe. He knows of no way, Lawrence said, that the city can save money on its water pipe purchases. "If there was any way," he said, "I would already have done it." Lawrence spoke at length about why he thinks the type of pipe purchased by Metro is superior, explaining that it is thicker and meets federal specifications. FIGURES released last night by the waterworks di rector, however, show that the eight-inch pipe (in diameter) purchased by Metro is only one-hundredth of an inch thicker than cheaper brands. "This one-hundreth of an inch is important," Lawrence said. "We have rocky soil here in Nashville and it can make quite a bit of differ ence." A few minutes later. Coun cilman Paul Blankenship pointed out that Lawrence's figures show that Metro is buying six-inch pipe which is one hundreth of an inch "smaller" in thickness than the cheaper brand. "HOW CAN you argue," Blankenship asked, "that it's better to buy the more ex pensive brand of pipe because it's stronger and then turn around and buy another brand that's not as thick as the cheaper brand, but costs more?" "The thing is." Lawrence replied, "that it's not an exact thing." According to information un covered last August by THE NASHVILLE TENNESSEAN, the Clow company, of Bir mingham, has received more than $2 million In business from Metro in the past five years. In 1966, for example. Clow bid on 40 different con tracts and was awarded 39. In August, it was reported that Metro had awarded 12 bids for $600,000 in iron water pipe. Clow was low bidder on all 12. But although Clow consist ently is low bidder on .iron pipe contracts in Nashville and Knoxville, the V.S. Pipe and Foundry Co.--Clow's com petitor--regularly is low bid der on the same pipe in Chat tanooga and Memphis. "IF THERE'S any collu sion," Lawrence told Uie com mittee, "then it's something lor the federal government to look into. They have a respon sibility in this area." Councilman Frank Griffin rcpiied that he thinks collu sion may exist and added: "There's something wrong with this cast iron business. I'm not saying it's wrong from your (Lawrence's) standpoint, but something is wrong. "I say that if this purchas ing committee can save the taxpayers a million dollars over a 10-year period in pipe purchases, then we ought to do it." LAWRENCE replied:. "I'd be perfectly willing to save." "I think we ought to go to the district attorney." Griffin added, "and ask him to in vestigate this. I don't under stand this." "Well." Lawrence replied. "I don't understand a lot of things myself. I don't under stand why my son is still a prisoner of war in North Viet nam and why I haven't heard from him." (Lawrence's son. Command er William Porter Lawrence, was shot down in June while leading -a combat mission of planes from the aircraft car rier Constellation. He was list ed as missing and presumed captured.) AT THE beginning of last night's meeting. Lawrence was asked by Councilman Martin Garrett why Metro is criticized for paying more for pipe than other southern cities. "It's just not true," Law rence replied. "I have a tab ulation here. I went to con siderable trouble to get it. It shows we're net paying more." The "tabulations." however, showed that Metro was pay ing more in 19 out ol 20 in stances, involving figures Lawrence said he collected from six cities. The director explained that Metro purchases superior grade pipe -- the type which "wo have been using lor the past 40 years." He added: "ITS BETTER to be more cautious with something you've had success with than go another type ol pipe. We might change later, but I'm not convinced the other pipe would do the job. "We are just a little more conservative, perhaps, but we're not quick' to change cverytime somebody comes along and says they've got a better product. "It's just a question of judgment and I'm exercizing my judgment." Griffin replied that be can understand why Lawrence would defend purchase of the more expensive brand ol pipe, but added: "If you've been doing this one way for 40 years, there is about a 98% chance you're doing it wrong." After hearing from Law rence ihe committee voted unanimously to write to other pipe suppliers throughout the country to determine If Metro could purchase the water pipe cheaper elsewhere.