    Kennedy Center: More Information on Project Status and Budgets
    Needed to Understand the Impact of Future Funding Decisions
    (15-SEP-04, GAO-04-933).

    Since fiscal year 1995, the John F. Kennedy Center for the
    Performing Arts (Center) has been responsible and received
    federal funding for implementing capital improvement projects and
    operations and maintenance activities. The Kennedy Center's
    Comprehensive Building Plan identifies capital projects needed to
    renovate the Center and bring it into compliance with current
    life safety and accessibility codes. The Kennedy Center currently
    is planning to construct, with private funds, two new buildings
    to open in 2013 on a new plaza to be built adjacent to the
    existing facility. The Kennedy Center expects federal funding to
    operate and maintain these buildings. GAO was asked to examine
    (1) how much the Center has received in federal appropriations
    for capital projects, (2) the status of the Comprehensive
    Building Plan and updates, and (3) the potential impact of the
    Center's plaza project on the need for future operations and
    maintenance funding.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-04-933
        ACCNO:   A12413
      TITLE:     Kennedy Center: More Information on Project Status and
    Budgets Needed to Understand the Impact of Future Funding
    Decisions
         DATE:   09/15/2004
      SUBJECT:   Appropriated funds
    	     Construction costs
    	     Facility construction
    	     Future budget projections
    	     Administrative costs
    	     Maintenance costs
    	     Planning
    	     Safety
    	     Capital improvements
    	     Operations and maintenance costs
    	     Accessibility
    	     Kennedy Center Comprehensive Building
    	     Plan

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    GAO-04-933

    Report to the Chairman, Subcommittee on Interior and Related Agencies,
    Committee on Appropriations, House of Representatives

    September 2004

    KENNEDY CENTER

    More Information on Project Status and Budgets Needed to Understand the
    Impact of Future Funding Decisions

    Contents

    Tables

    Figures

    September 15, 2004Letter

    The Honorable Charles Taylor Chairman Subcommittee on Interior     and
    Related Agencies Committee on Appropriations House of Representatives

    Dear Mr. Chairman:

    The John F. Kennedy Center for the Performing Arts (Center) opened in 1971
    in Washington, D.C., as both a national cultural arts center and a
    memorial to the 35th President. The Kennedy Center, open every day of the
    year, is visited by nearly 5 million people annually. By 1990, the Kennedy
    Center suffered from severe deterioration and a backlog of capital
    repairs. Responsibility for managing the Kennedy Center was shared between
    the National Park Service and the Kennedy Center itself. Officials from
    both agencies acknowledged that the Center had reached a seriously
    deteriorated state due to the lack of a clear mandate as to which agency
    was responsible for identifying and completing capital repairs and
    alterations.

    In 1994, Congress transferred responsibility for the management of the
    Kennedy Center facility from the National Park Service to the Kennedy
    Center. At that time, Congress also required the Kennedy Center to
    develop, and annually update, a comprehensive building needs plan. In
    response, the Kennedy Center developed a Comprehensive Building Plan in
    1995 that included an assessment of the facility and identified the
    capital projects it believed were necessary to restore the Center to the
    standards of a presidential memorial and bring it into compliance with
    current life safety and accessibility codes. The Kennedy Center has been
    gradually renovating the Center since 1995. Among other improvements, the
    Center has renovated its two largest theaters, replaced the roof,
    installed a new fire alarm system and improved its building systems, such
    as its heating and air-conditioning and plumbing systems.

    The Kennedy Center is also working with the U.S. Department of
    Transportation and organizations within the District of Columbia to
    develop a new public plaza adjacent to the current facility, improving
    road and pedestrian access. The plaza project includes two new buildings
    located on the plaza to provide additional office, classroom, and
    rehearsal space and house permanent and rotating exhibits on the history
    of performing arts. These buildings will be constructed with private
    donations, but the Center expects to fund the operations and maintenance
    (O&M) of the buildings with federal appropriations.

    To assist the subcommittee in its oversight role and in making future
    funding decisions related to the Center and plaza building project, our
    report discusses (1) how much the Kennedy Center has received in federal
    appropriations for capital improvement projects1 for fiscal years 1995
    through 2004, (2) the status of the Comprehensive Building Plan and its
    updates, and (3) the potential impact of the Kennedy Center's proposed
    plaza project on the need for future federal funds to pay for the cost of
    operating and maintaining the new buildings and plaza.

    To determine the amount of federal appropriations the Kennedy Center
    requested and received for capital improvement projects for fiscal years
    1995 through 2004, we reviewed the Kennedy Center's Comprehensive Building
    Plan and its updates; its budget justifications and audited financial
    statements; and federal authorization and appropriation laws. To determine
    the status of the Kennedy Center's Comprehensive Building Plan and its
    updates we toured the Kennedy Center facility; obtained a status of the
    projects, including costs, from Kennedy Center officials and its financial
    system; and discussed the projects with Kennedy Center officials. To
    determine the potential impact of the Center's proposed plaza project on
    the need for future federal funds, we calculated the potential O&M costs
    based on museum survey data of facility management practices and the
    Kennedy Center's projected O&M rates. We discussed with Kennedy Center
    officials how these rates were determined, and we verified with the agency
    that conducted the survey that the museum rates provided were accurate. We
    researched building industry sources for estimates of O&M rates and
    determined that the Kennedy Center's projected rates were reasonable given
    the currently available information. We also determined that project
    status and cost data were sufficiently reliable for the purpose of our
    review. We conducted our work from January 2004 through July 2004 in
    accordance with generally accepted government auditing standards (see app.
    I for more information on our scope and methodology).

    Results in Brief

    The Kennedy Center received about $152 million in federal appropriations
    for capital improvement projects for fiscal years 1995 through 2004. In
    each of these fiscal years, the Kennedy Center generally received the
    amount it requested. According to its 2002 Comprehensive Building Plan, to
    complete the projects identified in the plan, the Kennedy Center will need
    an additional $57 million in federal appropriations for capital projects
    for fiscal years 2005 through 2008.

    Most of the capital projects identified in the Kennedy Center's
    Comprehensive Building Plan and its updates have been completed or are
    ongoing. However, we believe that the Kennedy Center will be unable to
    complete all of the capital projects identified in its Comprehensive
    Building Plan with the anticipated future appropriations by the end of
    fiscal year 2008, as planned. Several large projects still remain to be
    done, and project budgets are preliminary and will likely increase as the
    projects are designed. Furthermore, the Comprehensive Building Plan has
    not been updated annually as required by law, and it does not provide
    specific project status and budget information. This limits the usefulness
    of the plan and inhibits Congress's ability to know the impact of funding
    decisions or judge the performance and progress of the Center's capital
    projects.

    We calculated that operations and maintenance costs for the proposed plaza
    project, including the two new buildings, could range from $6 million to
    $11 million annually, in current dollars. However, this is a preliminary
    estimate that will likely change as the building design is finalized. This
    calculation is based on the Kennedy Center's estimate that its operations
    and maintenance costs could range from $15 to $20 per square foot for the
    proposed plaza project. In addition, we estimated that O&M costs for the
    proposed project could be $28 per gross square foot of space. The Kennedy
    Center expects to request federal appropriations for these costs, in
    addition to what it currently receives for operations and maintenance
    costs for the existing Center. In fiscal year 2004, the Center received
    about $16 million for the operations and maintenance of the existing
    Center. The plaza and buildings project is in the early planning phase,
    and decisions made about the project through the design phase will affect
    actual O&M costs. The project is planned to be occupied in 2013, which
    would be the first year annual O&M funds would be needed for the new
    buildings.

    We are making a recommendation to the Kennedy Center President and Board
    of Trustees to improve the usefulness of the Comprehensive Building Plan
    by including project updates, status, and budget information.

    Background

    The Kennedy Center opened in 1971 and is located on 17 acres along the
    Potomac River in Washington, D.C. The Center houses four major theaters
    and several smaller theaters, five public halls or galleries, educational
    facilities, rehearsal spaces, offices, and meeting rooms in about 1.1
    million square feet of space. The Kennedy Center also has a recently
    expanded parking garage. The Center is open 365 days a year, and nearly 5
    million people visit it annually to attend performances or tour the
    facility.

    In 1972, the National Park Service, within the Department of Interior,
    assumed responsibility for services related to the nonperforming arts
    functions of the Kennedy Center facility, whereas the Kennedy Center Board
    of Trustees (Board)2 retained responsibility for all performing arts
    activities. Under this dual management, the Kennedy Center facility
    suffered from severe deterioration and a backlog of capital repairs in
    part because responsibility for identifying and completing capital repairs
    and improvements at the Center was unclear. As a result, legislation was
    enacted in 1990 that directed the National Park Service and the Board to
    enter into a cooperative agreement setting forth their responsibilities
    relating to maintenance, repair, and alteration of the Center. However,
    after the parties were ultimately unable to agree on a methodology to
    enter into the cooperative agreement, which would have been the foundation
    of a capital improvement plan, legislation was enacted in 1994 that gave
    the Board sole responsibility for carrying out capital improvement
    projects at the Kennedy Center facility. A purpose of the legislation was
    to provide autonomy for the overall management of the Kennedy Center,
    which included better control over its capital projects and bringing the
    Kennedy Center building from a state of deterioration to a condition of
    excellence. The legislation further required the Board to develop and
    annually update a comprehensive building needs plan.3

    In response to the legislation, the Kennedy Center developed a
    Comprehensive Building Plan (Building Plan) in 1995 to detail the existing
    condition of the Kennedy Center facility and planned renovations. The
    goals of the renovations were to address accessibility and life safety
    code deficiencies, such as the installation of sprinklers throughout the
    Center, replace inefficient building systems, and improve visitor
    services. The original Building Plan anticipated that the capital projects
    at the Kennedy Center would be completed in two stages. Projects in the
    first stage-fiscal years 1995 through 1999-would address critical issues
    to protect the building from water intrusion, provide critical security
    and life safety measures, and provide improved accessibility. Projects
    undertaken in the second stage-fiscal years 2000 through 20094-would
    eliminate the backlog of deferred capital repair projects. However, the
    Kennedy Center changed its approach to renovating the Center. Rather than
    undertaking broad-scale projects that could disrupt the entire Center, the
    Kennedy Center has taken certain areas or theaters out of service and
    performed all of the necessary renovations in a particular area at one
    time. For example, rather than installing a new sprinkler system
    throughout the entire Center, which would have closed multiple theaters
    simultaneously, the Center is installing sprinklers in each theater as it
    is renovated. Thus, only one theater is closed at a time. According to
    Center officials, this approach minimizes the disruptions to ongoing
    operations in other areas of the Kennedy Center. When the Opera House was
    renovated, for example, it was closed for almost a year but performances
    continued in all of the other theaters.

    The Kennedy Center receives federal funding annually for capital
    improvement projects based on its Building Plan. In fiscal year 2004, the
    Kennedy Center received approximately $16 million in federal funds for
    capital improvement projects. Revenue generated by performances at the
    Center are used for costs associated with the performances and are not
    used for capital projects in the Building Plan.

    In addition to federally funded projects, the Building Plan also discusses
    other major projects that are being funded with private donations or other
    nonfederal funding sources, including the recent garage expansion and the
    proposed plaza project adjacent to the Kennedy Center facility. The plaza
    project, which will connect the Center to the National Mall, will relocate
    roadways to improve transportation and pedestrian accessibility to and
    from the Kennedy Center and surrounding streets. It will include a central
    fountain that runs from 23rd Street NW to the Kennedy Center, a pedestrian

    walkway, and a connection to the waterfront.5 In addition, the plaza will
    include two proposed buildings with about 200,000 gross square feet6 each,
    located on opposite sides of the central fountain (see fig. 1). The
    Kennedy Center plans for one building to house an exhibition devoted to
    the history of performing arts in America, include office space for the
    Kennedy Center staff, and be used as an education center for the
    performing arts. The other building will be used as rehearsal space for
    the Washington National Opera and the Kennedy Center and include some
    additional office space for Kennedy Center staff. These buildings will be
    constructed with private donations, and upon completion, the Kennedy
    Center Board will own, operate, and maintain the buildings and green space
    established on the plaza. In fiscal year 2003, the Center received a
    pledge of $100 million to be used toward the construction of the planned
    plaza buildings. According to Kennedy Center officials, they are in the
    preliminary stages of designing and estimating the cost of the new
    buildings. Construction of the plaza project is expected to begin in
    fiscal year 2010, pending federal funding, and the Kennedy Center is
    expected to begin occupying the buildings in fiscal year 2013.

    Figure 1: The Proposed Plaza Project

    The 1994 legislation that gave the Kennedy Center responsibility for
    capital projects also authorized the Board to carry out the day-to-day
    operations and maintenance activities for the Kennedy Center facility.
    Operations and maintenance funds are used to cover expenses for utilities,
    security, daily cleaning, and maintenance, among other things. In fiscal
    years 2003 and 2004, the Kennedy Center received about $16 million in
    federal appropriations each year for the operations and maintenance of the
    current facility. Federal appropriations are not used for
    performance-related expenses. The Kennedy Center's total operating
    expenses in fiscal year 2003 were about $118 million. The Kennedy Center
    generates the majority of its revenue from programs at the Center,
    contributions, and investments.

    Kennedy Center Has Received Over $150 Million for Capital Projects

    The Kennedy Center has received approximately $152 million in federal
    appropriations for capital projects since it took responsibility for these
    projects in fiscal year 1995. In every fiscal year since 1995, the Kennedy
    Center has generally received the federal appropriations it requested. For
    example, in fiscal year 2004, the Kennedy Center requested $16 million in
    federal appropriations for capital projects and received $15.8 million
    after rescissions to the budget authority were taken into account. (see
    table 1).

    Table 1: Requested and Actual Federal Appropriations for Kennedy Center
    Capital Projects

    Fiscal year Requested federal Federal appropriations available for capital
                      appropriations                                     projects
    1995               $8,983,000                                  $8,982,810a
    1996                9,000,000                                    8,983,000
    1997                9,000,000                                  12,400,000b
    1998                9,000,000                                    9,000,000
    1999               20,000,000                                   20,000,000
    2000               20,000,000                                  19,924,000a
    2001               20,000,000                                  19,956,000a
    2002               19,000,000                                   19,000,000
    2003               17,600,000                                  17,485,600a
    2004               16,000,000                                  15,802,848a
    Total            $148,583,000                                 $151,534,258

    Source: GAO analysis of the Kennedy Center's annual budget justifications
    to Congress, federal appropriations for capital projects, and
    Comprehensive Building Plan.

    aIn these years, the Kennedy Center's appropriations for capital projects
    were reduced by rescissions to the budget authority for most government
    agencies and entities receiving appropriated funds.

    bIn fiscal year 1997, the Kennedy Center received an additional $3.4
    million for capital projects to address anti-terrorism requirements.

    As shown in table 1, the Kennedy Center requested approximately $9 million
    annually for capital projects for fiscal year 1995 through fiscal year
    1998. The Center generally received what it requested in each of these
    years, but the actual funding available was reduced in some of these years
    due to a rescission of budget authority. In fiscal year 1997, additional
    appropriations were provided to the Kennedy Center to address
    antiterrorism requirements. In fiscal year 1999, the Kennedy Center
    requested and received $20 million in federal appropriations for capital
    projects, an increase from the $9 million it originally anticipated
    receiving in its initial 1995 Building Plan. This increase in funding was
    given to the Kennedy Center to address several critical projects over a
    3-year period.7 Center officials requested the increased funding on the
    basis of studies conducted by its architecture and engineering
    consultants, who concluded an increase in "up front" funding could lead to
    overall cost savings on the Kennedy Center renovation in the long term.
    For fiscal years 2002 through 2004, the Kennedy Center gradually reduced
    its annual funding request from $20 million; however, the total requested
    funding for these years was about $17 million more than was anticipated in
    the initial 1995 Building Plan.

    The Kennedy Center uses its Building Plan to communicate to Congress its
    planned capital improvement projects and to provide budget estimates for
    carrying out these projects. The Kennedy Center further describes its
    planned capital projects and requests federal appropriations for these
    projects in its annual budget justifications to Congress. Both the
    Building Plan and budget justifications present budget estimates for broad
    categories of projects, such as interior repair, accessibility, and
    egress, but they do not include budget information for specific projects.
    Unlike the General Services Administration, the Kennedy Center receives a
    lump sum appropriation for capital projects, and the appropriations are
    not dedicated to specific projects. The Kennedy Center has the flexibility
    to change the projects or sequence of projects it plans to fund on the
    basis of such factors as the need to minimize disruptions to the
    operations of the Center and budget constraints.

    The Kennedy Center has requested about $16 million for capital projects in
    fiscal year 2005. The 2002 Building Plan anticipates the Kennedy Center
    will receive another $41 million in appropriations through fiscal year
    2008 to carry out its planned capital projects, for a total of $209
    million. This is consistent with the funding amounts anticipated in the
    1997 Building Plan; however, it is $44 million more than was anticipated
    in the initial 1995 Building Plan to accomplish the same goals.

    It Is Unlikely That Building Plan Will be Fully Implemented by 2008, and
    More Project Information Is Needed in the Plan

    The Kennedy Center has completed or has ongoing 1008of the  projects it
    identified in its initial Building Plan and its updates,9 and has decided
    not to implement or has postponed 15 of the identified projects. Seventeen
    projects are planned for fiscal years 2005 through 2008 and include
    several large projects with life safety components, such as the
    installation of sprinklers. We believe it is unlikely that the Center will
    be able to complete the planned projects by the end of fiscal year 2008 or
    within the appropriation amounts anticipated in the current Building Plan.
    Several large projects remain to be done because, in part, the Kennedy
    Center changed the order of projects to minimize disruption to the
    operations of the Center. The budget estimates for the capital projects
    planned through fiscal year 2008 are preliminary and will likely increase
    as the projects are designed. Furthermore, the Comprehensive Building Plan
    has not been updated annually as required, and it does not provide
    specific project status and budget information. This limits the usefulness
    of the plan and inhibits Congress's ability to know the impact of funding
    decisions or judge the performance and progress of the Center's capital
    projects.

    Status of Projects in Building Plan

    Since the first Building Plan was developed in 1995, 132 capital projects
    have been identified in the plan, and the updates to the plan, to address
    the deterioration and backlog of capital repairs, and an additional 12
    capital projects that were not in the plan have been completed. (See app.
    II for a list of the specific projects and their status.) The completed
    projects that had not been identified in the Building Plan were relatively
    small projects totaling $1.2 million, and include such projects as kitchen
    repairs and engraving restoration. The Building Plan lacks individual
    project information necessary to determine if projects are being completed
    within the original budget estimates and on schedule. Table 2 shows the
    status of all of the Kennedy Center's projects since fiscal year 1995.

    Table 2: Status of the Kennedy Center's Projects Since Fiscal Year 1995,
    as of February 29, 2004

                                                         Actual or estimated cost
    Status                       Number of projects                of projects

                                                                    (in millions)
    Completed                                    74                     $97.6a
    Ongoing                                      38                       67.2
    Planned for future years                     17                      38.5b
    Not implemented or Postponed                 15                      0.6 c
    Total                                       144                     $203.9

    Source: GAO analysis of Kennedy Center data.

    aFive of these projects were completed using O&M funds or energy savings
    performance contracts that are paid for with O&M funds.

    bKennedy Center officials reported that the budgets for these projects
    would be confirmed and adjusted as necessary during design. Estimated cost
    information was not provided for 2 of the projects in this category.

    cCapital project funding was spent to study 2 projects that the Kennedy
    Center later decided not to implement. Estimated cost information was not
    available for the other 13 projects in this category.

    The following describes each of the status categories and examples of
    projects in each category as of February 29, 2004:

    Completed Projects

    Seventy-four capital projects have been completed at a total cost of about
    $98 million. Examples of major projects completed include the replacement
    of chillers; renovation and installation of sprinklers in the two largest
    theaters-the Concert Hall and Opera House; and installation of a new fire
    alarm system throughout the building. Figure 1 shows the Opera House
    during and after the renovation. The Kennedy Center has also completed
    many smaller projects ranging from the installation of safety rails on the
    roof terrace to new directional signs in the Center.

    Figure 2: Kennedy Center Opera House during and after Renovation

    Ongoing Projects

    Thirty-eight capital projects are currently ongoing at a total estimated
    cost of $67.2 million. Many of these projects, originally planned to begin
    in different fiscal years, have been combined into single projects for
    implementation. For example, 15 projects reported in the Building Plan,
    originally planned to begin as early as fiscal year 1998, have been
    combined under the one current site improvements project, beginning in
    fiscal year 2003. Kennedy Center officials expect this project to be
    completed by the end of calendar year 2004. The ongoing projects include
    elevator modernization, the installation of sprinklers in areas outside of
    the theaters, and a smoke evacuation system in the Grand Foyer and Halls
    of State and Nations. According to Center officials, some of these
    projects are in the design phase, and their actual costs could increase.

    Planned Projects

    Seventeen projects are planned for future years (through fiscal year
    2008), with initial budget estimates totaling over $38 million for 15 of
    the projects. The Kennedy Center did not provide an estimate for 2 of
    these projects-design and restoration of the windows on the roof terrace
    level-because officials expect the scope of the restoration project to
    change significantly based on early design work for window restoration on
    other levels. Major projects planned for the future include renovations of
    the Family Theater, Eisenhower Theater, and the Terrace Theater. Kennedy
    Center officials have cautioned that initial budget estimates are
    preliminary and are expected to change as the projects are designed. In
    addition, project estimates are based on the year the project is expected
    to start; as projects are postponed, costs are expected to increase.

    Not Implemented and Postponed Projects

    Fifteen projects will not be implemented or have been postponed beyond
    fiscal year 2008. Eleven of these projects, including the relocation of a
    theater, will not be implemented because Center officials have determined
    the projects were not financially viable or were no longer needed. The
    Kennedy Center spent about $600,000 studying two of the projects it
    decided not to implement. The other 4 projects, related to office
    renovations and public space improvements, have been postponed because
    other projects have higher priority. While the Kennedy Center decided to
    postpone or not implement these 15 projects, the Building Plan did not
    reflect any changes in the amount it reported as necessary to implement
    the plan.

    It is Unlikely the Building Plan Will be Fully Implemented by 2008

    Given the number and size of the renovation projects that remain to be
    done and the current likelihood that project estimates may increase, we
    believe it is unlikely the Kennedy Center will be able to fully implement
    its Building Plan with the anticipated future appropriations by the end of
    fiscal year 2008.

    Each year, the Kennedy Center receives federal funding for capital
    projects at the Center that is not tied to specific projects. Although the
    Building Plan includes a proposed construction order for the projects, the
    Kennedy Center has the flexibility to change the sequence of projects or
    change specific projects that will be done in any given year. According to
    Kennedy Center officials, capital projects are prioritized according to a
    combination of factors, including (1) life safety issues, (2) risk and
    impact to patrons and staff, (3) needed upgrades to the building systems,
    (4) theater accessibility, and (5) the need to minimize disruptions to the
    Center's operations. As a performing arts center, in fiscal year 2003, the
    Kennedy Center generated about 70 percent of its income from performances
    and programs held at the Center and from contributions. Center officials
    stated that it must continue operations during renovations to the extent
    possible to continue generating revenue.

    The need to minimize disruptions to the Center's operations appeared to be
    the key consideration when determining the order of capital projects. To
    minimize disruptions to the Center's operations and patrons, the Kennedy
    Center changed its original approach of doing critical life safety
    projects by the end of fiscal year 1999 to renovating the Center a
    particular area at a time. For example, the recent renovation of the Opera
    House included all necessary projects in the theater, such as the removal
    of asbestos, the installation of a sprinkler system, and the installation
    of new wall coverings. This approach is less disruptive to the operations
    of the Kennedy Center; however, many of the life safety projects that the
    initial Building Plan anticipated would be completed by the late 1990s,
    although currently ongoing, will not be completed until fiscal year 2006.
    In addition, three theaters-Family, Eisenhower, and Terrace-still remain
    to be renovated, including the installation of sprinklers.

    The renovation of the Family Theater is currently being designed and the
    Kennedy Center plans to complete this renovation in fiscal year 2005. The
    Eisenhower Theater renovation is currently in the preliminary design
    phase. The renovation of the Eisenhower Theater was originally planned for
    fiscal year 2006, but according to Center officials, the actual renovation
    has been postponed until fiscal year 2007 or 2008. Finally, the 2002
    Building Plan reports that the complete renovation of the Terrace Theater
    will not be completed until after fiscal year 2008 but indicates complete
    sprinkler coverage and accessible railings would be added to the theater
    by the end of fiscal year 2008.

    Finally, we believe the funding anticipated in the Building Plan may not
    be sufficient to complete all of the planned projects. Since fiscal year
    1995, the Kennedy Center has received almost $152 million for capital
    projects, and the Center anticipates another $57 million in appropriations
    for capital projects, through fiscal year 2008, for a total of $209
    million. As noted earlier, this is $44 million more than was anticipated
    in the initial 1995 Building Plan to accomplish the same goals. As of
    February 29, 2004, the Center has spent over $98 million since fiscal year
    1995 on the capital projects it has completed so far or studied but did
    not implement. It estimates the remaining projects will cost almost
    another $106 million to complete, for a total of about $204 million.
    Although the current project budget estimates fall within the anticipated
    appropriations, many of these estimates are based on preliminary or no
    design work and are expected to change as the project design is refined
    and construction begins. According to the Construction Industry Institute,
    actual project costs may vary by as

    much as 30 percent to 50 percent from project estimates developed in the
    early stages of design.10

    The Comprehensive Building Plan Is of Limited Use in Understanding the
    Status of the Kennedy Center's Renovations

    The Building Plan is of limited use in understanding the Kennedy Center's
    progress in implementing its plan to renovate the Center because it does
    not include the status of projects identified in prior plans or provide
    budget information for individual projects. Instead, the plan includes a
    proposed sequence of work that lists the projects expected to be
    implemented each fiscal year through fiscal year 2008. In addition, budget
    information is provided only at a summary level for seven broad
    categories11 and not for individual projects. For example, the Building
    Plan shows that in fiscal year 2004 the Center planned to spend $7.4
    million on life safety and security but does not show the amounts budgeted
    to individual projects such as the installation of smoke evacuation
    systems. Our 1998 Executive Guide on Capital Planning highlights the
    importance of sound capital planning, noting that clear communication and
    good data are essential to supporting sound capital planning and decision
    making.12

    The Building Plan does not clearly explain how the Center prioritizes and
    restructures capital projects. For example, the Kennedy Center combined
    several life safety projects identified in the Building Plan into one
    project that is currently under way and the Center expects to be completed
    in fiscal year 2006. The Building Plan had originally identified some of
    these projects to be started as early as 1996. While the Building Plan
    updates state that projects may be combined, they do not clearly
    communicate the decision to combine these projects and that this decision
    would delay the Center's progress in meeting life safety codes. In
    addition, Center officials have said that the potential of future federal
    funding below the levels identified in the Building Plan will require some
    projects to be delayed. Without sufficient information in the Building
    Plan on the prioritization of projects, congressional decision makers will
    not be able to gauge the Center's progress in implementing the Building
    Plan or the impact of funding decisions on individual capital projects.

    The Kennedy Center reports monthly to the Office of Management and Budget
    (OMB) the status of individual projects and budget information for ongoing
    projects. Specifically, for each project, it includes the estimated
    budget, expenditures to date, and changes in project schedule, which could
    be used to determine if these projects are on budget and on schedule.
    However, the report does not include information for projects in future
    years. Including information on planned projects as well as ongoing
    projects in the Building Plan would ensure that the Kennedy Center is held
    accountable for the cost and schedule of its capital projects and is
    achieving the goals of the Building Plan. Such information could also help
    the Kennedy Center Board support its requests for appropriations and
    explain the potential effect on the implementation of the Building Plan if
    lesser amounts are appropriated.

    In addition to lacking sufficient information on which to gauge the
    Kennedy Center's progress in implementing the Building Plan, the Building
    Plan has not been updated annually as required in the John F. Kennedy
    Center Act Amendments of 1994. The Kennedy Center recognizes that annually
    updating and implementing the Building Plan could help guard against a
    recurrence of severe deterioration of the facility and over the long term
    should ultimately reduce the public costs of operating and maintaining the
    monument. According to a Kennedy Center official, the Center has continued
    to implement the December 2002 Building Plan but has not updated it
    because officials did not believe there had been significant changes at
    the Center and the plan was still applicable. The Kennedy Center has
    recently hired a new Director of Capital Projects, who expects to issue an
    update to the Building Plan by the end of 2004.

    Kennedy Center Will Likely Request Additional Operations and Maintenance
    Funding for Its New Plaza Project

    In fiscal year 2004, the Kennedy Center received about $16 million for
    operations and maintenance costs for the existing Center and will likely
    need additional federal appropriations for O&M expenses when the new plaza
    project is complete. We calculate that annual additional O&M costs could
    range from $6 million to $11 million, in current dollars, for the proposed
    new plaza and two buildings. However, this preliminary estimate will
    likely change before fiscal year 2013, the first year annual O&M funds may
    be needed. The plaza project is in the early planning phase, and decisions
    made about the project through the design phase will affect actual O&M
    costs. For example, the planning phase could result in smaller buildings
    and a plaza with less square footage, reducing O&M costs.

    O&M Costs for the Existing Center

    The Kennedy Center currently receives federal appropriations for O&M costs
    at the existing Center. O&M refers to activities that keep a facility
    running on a daily basis and routine maintenance required based on the use
    of the facility. Specifically, O&M includes costs for such items as
    utilities, daily cleaning and maintenance for the building and grounds,
    minor repair and maintenance, security, and salaries for support staff. In
    fiscal year 2004, the Kennedy Center received over $16 million in federal
    funds for O&M related to the existing Center.

    O&M Costs for the Proposed Plaza Project Could Range from $6 Million to
    $11 Million

    On the basis of data from a survey of museum facility management practices
    and Kennedy Center data, we calculate that the potential O&M costs for the
    proposed plaza project could range from $6 million to $11 million, in
    current dollars. Kennedy Center officials said they have not formally
    estimated O&M costs for the proposed plaza project because it is in the
    early planning phase and decisions on the design of the buildings, which
    can affect O&M costs, have not been finalized. They expect to estimate O&M
    costs after the project is designed. However, for purposes of our report,
    Kennedy Center officials used current O&M costs and O&M cost data obtained
    from an existing survey of six museums in Washington, D.C., to estimate
    that O&M costs for the proposed project could range from $15 to $20 per
    gross square foot of space, in current dollars. Using a slightly different
    set of assumptions, we estimated O&M costs for the proposed project could
    be $28 per gross square foot of space.

    O&M costs are usually estimated on the basis of cost per square foot; if
    the size of the project changes, the O&M estimate is easily adjusted. O&M
    rates also vary by type of space because different types of space have
    different maintenance needs. For example, cleaning and maintaining private
    office space is generally less expensive than cleaning and maintaining
    space open to the public that gets more traffic and would require items
    such as carpeting to be replaced more often. Building industry data is
    available for the average O&M cost for office space. However, the current
    plaza project plan indicates that a combination of office, museum quality
    exhibition space, and rehearsal space will be included in the proposed
    buildings. Given the combination of the different types of space in the
    proposed buildings, we estimated potential O&M costs per square foot for
    the proposed project on the basis of (1) O&M costs for the current Kennedy
    Center building, (2) a 2002 museum benchmarking survey of facility
    management practices, and (3) Kennedy Center officials' estimates. Using
    these sources, estimates for the potential O&M costs of the buildings were
    developed as follows:

    o Kennedy Center officials determined that the minimum potential rate for
    O&M would be based on the rate for the current building. The Center
    currently pays about $15 a gross square foot for O&M, based on the size of
    the current facility (1.1 million gross square feet).

    o Kennedy Center officials provided O&M data for six Washington, D.C.,
    museums based on a 2002 museum benchmarking survey of facility management
    practices conducted by Facility Management Services Ltd., a consulting
    practice specializing in facility management.13 The survey obtained
    information on the costs per square foot of space for five categories of
    O&M services-janitorial, utilities, building maintenance, exterior grounds
    maintenance, and building security-for each of the six museums. The O&M
    costs per square foot of space for each of these categories varied widely
    among the museums. For example, building maintenance costs ranged from
    $3.38 to $22.88 per square foot of space. Building maintenance costs can
    vary depending on the type of building materials used to construct the
    building and the type of equipment inside the building. Similarly,
    building security costs ranged from $2.66 to $23.43 per square foot of
    space. Factors that could affect building security costs include the value
    of the museum's contents (e.g., fine art) and the location of the
    facility. Because the proposed new plaza buildings are still in the early
    planning phase and many factors, including the size of the proposed
    buildings and the types of building materials used, could change before
    designs are finalized, we estimated the potential O&M rate for the
    proposed buildings by averaging the aggregate O&M costs for the six
    museums. This resulted in an O&M rate of $28 per gross square foot.

    o Kennedy Center officials also estimated the potential O&M rate for the
    proposed buildings using the museum data described above, and adjusted the
    data based on such factors as the size of the other museums relative to
    the proposed new buildings and plaza, estimates from the Kennedy Center's
    current janitorial provider, and the difference in security levels needed
    at the two proposed buildings. In addition, Kennedy Center officials
    discounted the information from the museums with the highest and lowest
    O&M costs and projected O&M costs on the basis of data from the other four
    museums. As a result, Kennedy Center officials estimated that the average
    O&M rate for the two buildings could be $20 per gross square foot.14

    On the basis of the potential O&M rates-$15, $20, and $28 per gross square
    foot-and the current proposed size of the two new buildings-a total of
    about 402,000 gross square feet--we calculate that total O&M for the new
    plaza and buildings could range from $6 million to $11 million annually,
    in current dollars.

    Many Factors Could Substantially Affect Actual O&M Costs

    The plaza and buildings project is in the early stages of the planning
    phase, and many factors could affect the actual O&M costs. Some of the
    factors that will affect O&M costs are within the control of the Kennedy
    Center, and others are not.

    Examples of factors within the Kennedy Center's control that may affect
    O&M costs are as follows:

    o The current plaza proposal includes a large fountain located above a
    roadway that connects the Kennedy Center to the National Mall. Fountains
    are expensive to maintain, and locating the fountain above a roadway could
    present additional security risks from the traffic below, which may
    increase security costs.

    o The size of the plaza and buildings has not yet been finalized.15 A
    reduction or increase in the size of the plaza and buildings would have a
    direct affect on O&M costs.

    o The selection of building materials, such as the current plan to use a
    large amount of glass on the outside of the buildings, will affect O&M
    costs. Buildings with a large amount of glass on the outside are more
    expensive to cool due to the heat that is absorbed by the glass. In
    addition, glass is more expensive to clean than other materials, such as
    brick.

    The plaza and buildings project is not expected to be occupied until 2013,
    and economic factors that are not within the Kennedy Center's control may
    affect actual O&M costs. For example, utility and labor rates have
    generally increased at a higher rate than the rate of inflation. It is
    difficult to anticipate these rates so far in the future. Furthermore, the
    actual O&M costs may not be known until the buildings are in operation for
    at least one annual cycle of using the plaza and for heating and cooling
    the new buildings. At the end of that cycle, the Kennedy Center's
    appropriations request should be based on the actual O&M costs it
    incurred.

    As discussed earlier in this report, Congress currently funds Kennedy
    Center capital improvement projects not related to performances. Given the
    current precedent of providing funding for capital improvement projects at
    the Center, Congress may also be expected to provide additional funds in
    the future for capital improvement costs associated with the plaza
    project.

    Conclusions

    The requirement to develop and annually update a Comprehensive Building
    Plan was intended to help improve management of the Kennedy Center's
    capital projects and, over the long term, help reduce the public costs of
    operating and maintaining the facility. The current plan anticipated that
    projects addressing life safety and accessibility issues-needed to meet
    current codes-would be completed by the end of fiscal year 2008. However,
    it is unlikely the Kennedy Center's Building Plan will be fully
    implemented by 2008, including life safety projects in some areas. This is
    due, in part, to changes in the sequence of its planned projects.
    Furthermore, the current Building Plan has not been updated since December
    2002, and it does not provide individual project budgets or prioritize
    capital projects; thus, it is unclear which projects might be delayed or
    not implemented due to budget constraints. It is also not possible to
    determine from the Building Plan if individual projects are completed
    within project budget estimates. Including this information in its annual
    Building Plan, as well as the progress that has been made in renovating
    the Center and in meeting life safety and accessibility codes, would make
    the Kennedy Center's use of federal funds to carry out its capital
    renovations more transparent and make the Kennedy Center more accountable
    for the use of federal funds. This information could also help the Kennedy
    Center support its request for federal funding and communicate more
    clearly the potential impact of federal funding decisions on the
    day-to-day operations of the Kennedy Center facility.

    Recommendation

    To help congressional decision makers oversee the capital projects at the
    Kennedy Center and make funding decisions, we recommend that the President
    of the Kennedy Center, in conjunction with the Chairman of the Board of
    Trustees, annually update the comprehensive building plan, as required,
    and include (1) the prioritization of projects, (2) project status, and
    (3) updated budget information for planned and ongoing projects.

    Agency Comments

    We provided a draft copy of this report to the President of the Kennedy
    Center. On August 18, 2004, the Kennedy Center President provided us with
    written comments on behalf of the trustees and staff (see app. III). The
    President agreed with our recommendation and stated that Kennedy Center
    staff will plan to implement it immediately. Kennedy Center officials also
    provided technical comments that have been incorporated throughout the
    report, as appropriate.

    The letter also emphasized that the Comprehensive Building Plan is
    primarily a management tool and that other reports are the vehicles for
    keeping Congress informed of the Center's progress in its renovation
    program. As part of our work, we reviewed the reports to the Operations
    Committee and a monthly report to OMB. While some of the information we
    are recommending be included in the Comprehensive Building Plan is
    provided in these reports, other recommended project information is not.
    For example, neither report provides information on project prioritization
    or projects planned for the future. The project information that is
    provided is not presented in a format that allows stakeholders to easily
    track the overall progress of the Kennedy Center renovations or specific
    capital projects from the building plan. It also appears that this
    information is not being conveyed to all congressional stakeholders. We
    believe that having project specific information available in one document
    that is provided to the stakeholders annually, as described in our
    recommendation, will help congressional decision makers and other
    stakeholders oversee the capital projects at the Kennedy Center.

    In addition, the letter did not agree with how we counted the projects
    identified in the Comprehensive Building Plan. However, it stated that the
    Comprehensive Building Plan has not been consistent in how it has
    identified projects and that the most recent plan lists design and
    implementation as two separate projects, while the earlier plans listed
    them as one project. As we noted in our report, the Comprehensive Building
    Plan does not clearly explain how projects are restructured or reported in
    different updates. Since our objective was to compare the actual projects
    undertaken with those reported in the Comprehensive Building Plan, we have
    identified and numbered the projects as listed in the plan and its updates
    to the plan. We understand the Kennedy Center's concern that how the
    projects are counted can change the reported percentage of projects
    completed. Thus, we have deleted the reference to the percentage of
    projects completed as an indication of the Kennedy Center's progress in
    implementing the Comprehensive Building Plan and only report actual
    numbers of projects. We believe that if the Kennedy Center implements our
    recommendation and provides more clear project information, this type of
    analysis should be possible in the future.

    As agreed with your office, unless you publicly announce the contents of
    this report earlier, we plan no further distribution until 5 days from the
    report date. At that time, we will send copies to the appropriate
    congressional committees, the Chairman of the Kennedy Center Board of
    Trustees, and the President of the Kennedy Center. We will also make
    copies available to others on request. In addition, the report will be
    available at no charge on the GAO Web site at http://www.gao.gov.

    If you or your staff has any questions, please contact me on (202)
    512-2834 or at guerrerop@gao.gov. See appendix IV for a list of the major
    contributors to this report.

    Sincerely yours,

    Peter F. Guerrero Director, Physical Infrastructure Issues

    Scope and MethodologyAppendix I

    To determine the amount of federal appropriations the John F. Kennedy
    Center for the Performing Arts (Center) requested and received for capital
    projects for fiscal years 1995 to 2004, we reviewed the Kennedy Center's
    annual budget justification to Congress and Comprehensive Building Plan
    and its updates; federal authorization and appropriation laws; and the
    Kennedy Center's audited financial statements. The Kennedy Center's budget
    justifications to Congress contain the Kennedy Center's request for
    federal funding for its capital repairs and rehabilitation. We compared
    the amount the Kennedy Center requested with the actual appropriations the
    Kennedy Center received from fiscal year 1995 through 2004, taking into
    account rescissions to budget authority. We also compared the amounts of
    the appropriations identified in the law with the amounts identified in
    the Kennedy Center's audited financial statements and verified rescission
    amounts with Kennedy Center officials. Finally, we relied on the Kennedy
    Center's 2002 Comprehensive Building Plan to determine the amount of
    federal appropriations the Center expects to request through fiscal year
    2008. We also reviewed the budget justifications and Building Plans to
    determine why changes were made to the Kennedy Center's funding request.

    To determine the status of the Kennedy Center's Comprehensive Building
    Plan and its updates, we reviewed the initial 1995 Comprehensive Building
    Plan and subsequent updates to the plan. We developed a list of capital
    projects the Kennedy Center reported it was planning to complete. We
    discussed with Kennedy Center officials the project status and cost
    information for these projects and other projects that it had completed
    with federal funds appropriated for capital projects since fiscal year
    1995. We reviewed the Kennedy Center's annual financial statements and
    supporting capital project schedules. We determined that the information
    provided for project costs appeared reasonable based on the annual capital
    expenditures and capital projects in progress listed in the financial
    statements. We toured the Kennedy Center and visually saw many of the
    projects listed in the Building Plan. We also interviewed the Kennedy
    Center's external auditor to determine what testing was performed on
    internal controls over federal expenditures. Thus, we determined that
    project status and cost data were sufficiently reliable for the purpose of
    our review. Finally, we compared the information the Kennedy Center
    provided on the status of the capital projects in the Building Plan and
    its updates and capital appropriations received since fiscal year 1995 to
    evaluate the likelihood that the plan would be fully implemented as
    planned by the end of fiscal year 2008. We did not evaluate whether
    individual capital projects were completed within their original budgets
    or on schedule.

    To determine the potential impact of the Center's proposed plaza project
    on the need for future federal funds, we calculated the potential
    operations and maintenance (O&M) costs based on data from a survey of
    museum facility management practices and the Kennedy Center's projected
    O&M rates. Kennedy Center officials provided data for five categories of
    O&M expenses for six Washington, D.C., museums based on a 2002 museum
    benchmarking survey of facility management practices conducted by Facility
    Management Services Ltd. Since one of the buildings in the proposed plaza
    project will contain space that the Center officials said would be
    maintained at the same level as a museum, we agreed that it was
    appropriate to use museums in Washington, D.C., to estimate the potential
    O&M costs. We estimated the potential O&M rate for the proposed plaza
    project by averaging the aggregate O&M costs for the six museums. We used
    the average O&M costs to develop our estimate because the proposed plaza
    project is still in the early planning phase and many factors, including
    the size of the buildings, could change before designs are finalized. The
    Kennedy Center officials' projections were based on its current O&M costs
    and the O&M cost data for six museums in Washington, D.C., described
    above. Kennedy Center officials believe that the new buildings will cost
    at least as much to maintain and operate per square foot as the current
    Center. They could not identify any category of O&M expenses they believed
    would be less expensive to operate than the current building. The Center
    officials said they disregarded the information from the museums with the
    highest and lowest O&M costs and projected O&M costs on the basis of data
    from the other four museums. According to the officials, they adjusted the
    rates for the different categories that make up the O&M costs, based on a
    number of factors, such as the size of the other museums relative to the
    proposed new plaza project. For example, the Center officials said they
    increased the expected cost of grounds maintenance over the other museums
    because the proposed plaza project includes a large fountain, which will
    be expensive to maintain. In addition, because the plaza will be suspended
    over a roadway, all of the plants will have to be in containers, which
    will also increase operations and maintenance costs. Since there are a
    wide variety of types of proposed space in the buildings, ranging from
    museum space to rehearsal rooms, the Kennedy Center officials said they
    averaged rates based on the different types of space. We independently
    researched building industry groups' rates, including the Building Owners
    and Managers Association and the International Facility Management
    Association, but did not identify any O&M rates that would have been
    appropriate to use for the type of space planned for the proposed plaza
    buildings. We discussed the methodology used in conducting the museum
    survey with Facility Management Services Ltd and discussed the measures
    incorporated into the survey to maximize accuracy of the data. We
    determined that the data on O&M costs for the six Washington, D.C., area
    museums is reliable for purposes of this report and that the Kennedy
    Center's estimated rates were rational given the currently available
    information.

    We conducted our work from January 2004 through July 2004 in accordance
    with generally accepted government auditing standards.

    Kennedy Center Capital ProjectsAppendix II

    The following tables show the cost or expected cost of the Kennedy
    Center's capital projects as identified in its Comprehensive Building Plan
    and its updates. The tables show those projects that are completed,
    ongoing, or planned for future years, and those that have not been
    implemented or have been postponed.

    Table 3: Capital Projects Completed by the Kennedy Center Since Fiscal
    Year 1995, as of February 29, 2004

            Projects identified in     Year plan
               Kennedy Center's       identified   Project status            Cost
            Comprehensive Building   project to be
                    Plana             undertaken
    1  Cooling coils-replacement  Fiscal year   Completed 1996        $305,881
                                     1995
    2  Fountain piping and        Fiscal year   Completed 1996      $1,392,321
          valves-replace             1995
    3  Planters and               Fiscal year   Completed 1996     Included in
          fountains-repair           1995                           project above
                                     Fiscal year
    4  Service tunnel and         1996 moved to Completed 1996     Included in
          drive-repair (phase 1)     fiscal year                    project above
                                     1997
    5  Service tunnel and         Fiscal year   Completed 1997     Included in
          drive-repair (phase 2)     1997                           project above
          Garage ventilation         Fiscal year                      Included in
    6  renovation and piping      1997          Completed 1997   project above
          insulation installation
    7  Condenser water            Fiscal year   Completed 1996      $1,690,345
          tank-repair                1995
    8  Concert                    Fiscal year   Completed 1996     $21,292,808
          Hall-rehabilitation        1996
          Office space-partial
    9  phased renovation          Fiscal year   Completed 1996        $262,624
          (administrative office     1996
          phase 1)
                                     Fiscal year
    10 Sprinkler system (phase 1) 1997 moved to Completed 1996          $4,687
                                     fiscal year
                                     1998
    11 Chiller replacement        Fiscal year   Completed 1997        $209,557
                                     1995
    12 Hall of Nations/States     Fiscal year   Completed 1997        $387,778
          wall lighting-replace      1995
    13 Roof-tear off and replace  Fiscal year   Completed 1998     $16,290,411
                                     1995
          Roof Terrace               Fiscal year                      Included in
    14 paving-removal and         1995          Completed 1998   project above
          replacement
    15 Marble fascias and         Fiscal year   Completed 1998     Included in
          soffits-repair             1995                           project above
          Centrally controlled
    16 security system            Fiscal year   Completed 1998      $2,657,361
          installation (security     1995
          systems phase 1)
          Security                   Fiscal year                      Included in
    17 system-construction (phase 1997          Completed 1998   project above
          3)
    18 Exterior marble wall at    Fiscal year   Completed 1998        $443,138
          Plaza level-clean          1995
          Office space-partial
    19 phased renovation          Fiscal year   Completed 1998        $156,638
          (administrative office     1997
          phase 2)
    20 Plaza paving-interim       Fiscal year   Completed 1999        $207,000
          repair                     1995
                                     Fiscal year
    21 Fire alarm system-replace  1996 moved to Completed 1999        $426,592
          (phase 1)                  fiscal year
                                     1997 and 1998
          Security                   Fiscal year
    22 system-construction (phase 1996          Completed 1999         $37,074
          2)
    23 Remove/replace underground Fiscal year   Completed 1999        $157,649
          storage tanks              1999
                                     Fiscal year
    24 Education/rehearsal space  2001 moved to Completed 1999      $1,716,861
          modifications              fiscal year
                                     1999
    25 Minor repairs-Plaza        Fiscal year   Completed 1999         $97,688
          uplights                   1999
    26 Repairs to technical       Fiscal year   Completed 1999        $795,755
          system                     1999
          Office space-partial
    27 phased renovation          Fiscal year   Completed 1999        $115,808
          (administrative office     1999
          phase 4)
    28 Theater lab renovation     Fiscal year   Completed 1999         $39,488
                                     2001
                                     Fiscal year
    29 Space modification (phase  1997 moved to Completed 2000         $19,647
          2)-loading dock #2         fiscal year
                                     1998
          Office space-partial
    30 phased renovation          Fiscal year   Completed 2000      $1,214,864
          (administrative office     1998
          phase 3)
    31 Roof Terrace safety        Fiscal year   Completed 2000         $11,430
          railing                    1998
    32 Technical systems          Fiscal year   Completed 2000      $1,100,483
                                     2000
    33 North gallery bathroom     Fiscal year   Completed 2000        $354,561
                                     2000
                                     Fiscal year
    34 Memorial Interpretation    2001 moved to Completed 2001     Included in
          (phase 1)                  fiscal year                    project below
                                     1997
                                     Fiscal year
    35 Memorial interpretation    2002 moved to Completed 2001      $2,591,628
          (phase 2)                  fiscal year
                                     1998
                                     Fiscal year
    36 Space modifications at     1997 moved to Completed 2001      $1,503,493
          56-foot and 69-foot level  fiscal year
                                     1999
    37 Administrative office      Fiscal year   Completed 2001     Included in
          69-foot level              2000                           project above
    38 Replace temp Millennium    Fiscal year   Completed 2001      $1,606,106
          Stage                      1999
    39 Backstage repairs to       Fiscal year   Completed 2001      $1,617,125
          concert hall               1999
    40 Minor repairs-Terrace      Fiscal year   Completed 2001         $87,753
          theater catwalk            1999
    41 Administrative office      Fiscal year   Completed 2001         $55,504
          renovation (phase 5)       2000
          Galleries and atrium,      Fiscal year
    42 accessibility and rehab    2000          Completed 2001         $69,832
          interior
    43 Interior signage (phase 1) Fiscal year   Completed 2001        $727,207
                                     2000
    44 Administrative office      Fiscal year   Completed 2001        $354,947
          renovation (phase 6)       2001
    45 Office support (phase 1)   Fiscal year   Completed 2001        $108,516
                                     2001
    46 Technical systems          Fiscal year   Completed 2001        $649,185
                                     2001
          Accessibility (phase       Fiscal year
    47 1)-Grand Foyer             1997          Completed 2002      $2,469,939
          improvements
    48 Rehab Concert Hall public  Fiscal year   Completed 2002     Included in
          lobbies and restrooms      2002                           project above
    49 Terrace Level interpretive Fiscal year   Completed 2002         $22,432
          graphics                   2000
    50 Technical system           Fiscal year   Completed 2002        $633,265
                                     2002
    51 Interior signs (phase 2)   Fiscal year   Completed 2002        $246,628
                                     2002
                                     Fiscal year
    52 Building automation        1995 moved to Completed 2003      $3,501,224
          system-install             fiscal year
                                     1999
          Restaurant kitchen         Fiscal year
    53 rehabilitation/floor       2001 moved to Completed 2003        $889,058
          replacement                fiscal year
                                     2003
          Terrace Theater-install    Fiscal year
    54 Americans with             2003          Completed 2003         $54,298
          Disabilities Act handrails
                                     Fiscal year
    55 Fire alarm system-replace  1997 moved to Completed 2004      $4,551,223
                                     fiscal year
                                     2003
                                     Fiscal year
    56 Opera House renovations    1998 moved to Completed 2004     $22,239,000
                                     fiscal year
                                     2003
    57 Exterior plaza             Fiscal year   Completed 2004      $1,050,669
          lighting-installation      2003
    58 Exterior column            Not in        Completed 2002        $371,465
          restoration                Building Plan
    59 Garage repairs             Not in        Completed 2001         $44,848
                                     Building Plan
    60 Kitchen repairs            Not in        Completed 1997         $23,808
                                     Building Plan
    61 Restaurant planning        Not in        Completed 2001         $90,417
                                     Building Plan
    62 Terrace Theater seats      Not in        Completed 1997        $126,685
                                     Building Plan
    63 Theater accessibility      Not in        Completed 1997         $37,824
          projects (various)         Building Plan
    64 Theatre box seats and      Not in        Completed 1999        $134,735
          theater repairs            Building Plan
    65 Gift shop floor-repair     Not in        Completed 2001         $53,411
                                     Building Plan
          Wheelchair lift in         Not in
    66 American Film Institute    Building Plan Completed 2000         $73,110
          Theater
    67 Grand foyer sconce and     Not in        Completed 2001        $107,056
          mirror-repair              Building Plan
    68 Orientation film           Not in        Completed 2000        $118,851
                                     Building Plan
    69 Engraving restoration      Not in        Completed 2001         $27,175
                                     Building Plan
                                                   Completed using  Energy Saving
    70 Energy conservation (phase Fiscal year   Energy Saving      Performance
          1)                         2001          Performance           Contract
                                                   Contract
                                                   Completed using  Energy Saving
    71 Energy conservation (phase Fiscal year   Energy Saving      Performance
          2)                         2002          Performance           Contract
                                                   Contract
          Ventilation system-garage,               Completed using  Energy Saving
    72 offices, theaters and      Fiscal year   Energy Saving      Performance
          public spaces              2002          Performance           Contract
                                                   Contract
    73 Minor repairs-fire damper  Fiscal year   Completed 1999  O&M funds used
          and separation assemblies  1999
    74 Install fire pump and      Fiscal year   Completed using O&M funds used
          risers                     2003          O&M funds
          Total                                                       $97,626,866

    Source: The John F. Kennedy Center for the Performing Arts.

    aThis table includes 12 capital projects that were not listed in the
    Comprehensive Building Plan but, according to Kennedy center officials,
    were completed using appropriations for capital projects.

    Table 4: Capital Projects Ongoing or Under Way at the Kennedy Center as of
    February 29, 2004

             Projects identified in       Year plan
                Kennedy Center's         identified     Project    Estimated cost
           Comprehensive Building Plan  project to be    status
                                         undertaken
    1  Asbestos removal from         Fiscal year   Ongoing as        $,951,091
          building automation system    1996          needed
                                        Fiscal year   Ongoing as
    2  Elevator and escalator        2001 moved to other            $3,500,000
          modernization-commencement    fiscal year   projects
                                        2005          allow
                                        Fiscal year   Ongoing as
    3  Elevator and escalator        2002 moved to other           Included in
          modernization-continue        fiscal year   projects      project above
                                        2006          allow
                                        Fiscal year
    4  Elevator and escalator        2003 moved to Ongoing         Included in
          modernization complete        fiscal year                 project above
                                        2007
    5  Garage expansion and site     Fiscal year   Under way       $46,532,299
          improvement projects          2003
    6  Design and planning to move   Fiscal year   Under way       Included in
          entrance road                 1998                        project above
    7  Site improvements funded by   Fiscal year   Under way       Included in
          anti-terrorism supplemental   1998                        project above
    8  Repair median                 Fiscal year   Under way       Included in
                                        2000                        project above
    9  Rehabilitate entrance drive   Fiscal year   Under way       Included in
                                        2000                        project above
    10 Improve exterior signage      Fiscal year   Under way       Included in
                                        2000                        project above
    11 Site phase 1-north and east   Fiscal year   Under way       Included in
          sides, service tunnel repairs 2000                        project above
    12 Existing garage-restraining,  Fiscal year   Under way       Included in
          exiting, ventilation, etc.    2000                        project above
    13 Site (phase 2) south side     Fiscal year   Under way       Included in
                                        2001                        project above
    14 Plaza repairs-east Plaza      Fiscal year   Under way       Included in
                                        2001                        project above
    15 West Fascia, planters,        Fiscal year   Under way       Included in
          railing                       2001                        project above
    16 Existing garage systems       Fiscal year   Under way       Included in
          (remove ramp)                 2001                        project above
    17 Fascia and soffits (phase 1)  Fiscal year   Under way       Included in
                                        2002                        project above
          Plaza paving and repairs      Fiscal year                   Included in
    18 (west, north, and south       2002          Under way     project above
          sides)
    19 Plaza planters and fountains  Fiscal year   Under way       Included in
                                        2002                        project above
    20 Site elements (phase 1)       Fiscal year   Under way       Included in
                                        2002                        project above
          Design-complete renovation of Fiscal year
    21 American Film Institute       2004          Under way        $1,195,000
          Theater
                                                      Under way-to
    22 Security system (phase 2A)    Fiscal year   be completed     $2,500,000
                                        2000          fiscal year
                                                      2005
          Visitor services and assisted               Under way-to
    23 listening device              Fiscal year   be completed       $700,000
          desks-install new in Hall of  2003          fiscal year
          States                                      2004
                                                      Under way-to
    24 Security command center       Fiscal year   be completed     $1,000,000
          construction                  2003          fiscal year
                                                      2005
                                                      Under way-to
    25 Design work-new training room Fiscal year   be completed    Included in
          and security break room       2003          fiscal year   project above
                                                      2005
                                                      Under way-to
    26 Training room and security    Fiscal year   be completed    Included in
          break room                    2004          fiscal year   project above
                                                      2005
                                                      Under way-to
    27 Design work-miscellaneous     Fiscal year   be completed       $445,183
          life safety improvements      2003          fiscal year
                                                      2006
          Miscellaneous life safety
          improvements-Grand Foyer,                   Under way-to
    28 Halls of States and Nations   Fiscal year   be completed     $3,769,000
          smoke evacuation system;      2004          fiscal year
          sprinkler systems; create                   2006
          fire rated enclosure
          Fire separation-garage and                  Under way-to
    29 Plaza level and               Fiscal year   be completed    Included in
          rehabilitation interior       1996          fiscal year   project above
          finishes                                    2006
          Egress stairs and exit                      Under way-to
    30 ways-panic hardware and       Fiscal year   be completed    Included in
          egress deficiencies (phase 1) 1996          fiscal year   project above
                                                      2006
          Egress stairs and exit                      Under way-to
    31 ways-panic hardware and       Fiscal year   be completed    Included in
          egress deficiencies (phase 2) 1998          fiscal year   project above
                                                      2006
                                                      Under way-to
    32 Egress stairs and exit ways   Fiscal year   be completed    Included in
          (phase 3)                     2003          fiscal year   project above
                                                      2006
                                        Fiscal year   Under way-to
    33 Sprinkler system (phase 2)    1998 moved to be completed    Included in
                                        fiscal year   fiscal year   project above
                                        2001          2006
          Sprinkler system (phase 3)    Fiscal year   Under way-to
    34 infrastructure for            1999 moved to be completed    Included in
          buildingwide system           fiscal year   fiscal year   project above
                                        2002          2006
          Sprinkler system (phase 4)                  Under way-to
    35 infrastructure for            Fiscal year   be completed    Included in
          buildingwide system           2003          fiscal year   project above
                                                      2006
                                                      Under way-to
    36 East and west Plaza           Fiscal year   be completed     $2,229,000
          curtainwall restoration       2004          fiscal year
                                                      2006
                                                      Under way-to
    37 Design work-motor lobby       Fiscal year   be completed    Included in
          renovation                    2003          fiscal year   project above
                                                      2006
                                        Fiscal year   Under way-to
    38 Motor lobbies renovation      2001 moved to be completed     $3,366,000
                                        fiscal year   fiscal year
                                        2004          2006
          Total                                                       $67,187,573

    Source: The John F. Kennedy Center for the Performing Arts.

    Table 5: Capital Projects Planned for Future Years at the Kennedy Center
    as of February 29, 2004

          Projects identified in     Year plan
          Kennedy Center's           identified                         Estimated
          Comprehensive Building     project to  Project status              cost
          Plan                       be
                                     undertaken
          Design Level A backstage   Fiscal year Planned/ongoing-to  With theater
    1  and support areas          2004        begin fiscal year    renovations
                                                 2002-2008
          Backstage and support area Fiscal year Planned-to begin    With theater
    2  renovations                2005        fiscal year          renovations
                                                 2005-2008
          Design-Roof Terrace        Fiscal year Planned-to begin     Included in
    3  renovations                2005        fiscal year        project below
                                                 2006-2007
          Roof Terrace renovation
          (phase I) to begin after   Fiscal year Planned-to begin
    4  completion of American     2006        fiscal year 2007      $9,107,000
          Film Institute Theater
          renovation
          Design-Roof Terrace
    5  renovation (phase II),     Fiscal year Planned-to begin      $4,515,000
          including sprinkler        2006        fiscal year 2007
          coverage of Roof Terrace
    6  Roof Terrace level         Fiscal year Planned-to begin     Included in
          renovations (phase II)     2007        fiscal year 2008   project above
          Design-Eisenhower Theater  Fiscal year Planned-to begin
    7  renovation                 2005        fiscal year           $1,358,000
                                                 2004-2005
          Eisenhower Theater         Fiscal year Planned-to begin
    8  renovation (phase I)       2006        fiscal year          $11,895,500
                                                 2007-2008
          Eisenhower Theater         Fiscal year Planned-to begin     Included in
    9  renovation (phase II)      2007        fiscal year        project above
                                                 2007-2008
    10 Design-Roof Terrace        Fiscal year Planned-to begin            TBDa
          curtainwall restoration    2007        fiscal year 2008
          Roof Terrace curtainwall   Fiscal year Planned-to begin
    11 restoration                2008        fiscal year                 TBDa
                                                 2008-2009
          American Film Institute    Fiscal year Planned-to begin
    12 Theater renovation         2005        fiscal year 2005      $7,400,000
          commencement
                                     Fiscal year Planned-to begin
    13 Toilet room renovations    2005        fiscal year           $2,580,000
                                                 2006-2009
          Toilet room                Fiscal year Planned-to begin     Included in
    14 renovations-continue       2006        fiscal year        project above
                                                 2006-2009
          Toilet room renovations    Fiscal year Planned-to begin     Included in
    15 (final phase)              2007        fiscal year        project above
                                                 2006-2009
    16 Design Level A visitor     Fiscal year Planned-to begin      $1,648,000
          area renovation            2003        fiscal year 2006
    17 Level A visitor area       Fiscal year Planned-to begin     Included in
          construction               2004        fiscal year 2006   project above
          Total                                                       $38,503,500

    Source: The John F. Kennedy Center for the Performing Arts.

    aBudget will be confirmed and fine-tuned in conceptual design phase.

    Table 6: Capital Projects Not Implemented or Postponed at the Kennedy
    Center as of February 29, 2004

          Projects identified in      Year plan
          Kennedy Center's            identified       Project status        Cost
          Comprehensive Building Plan project to be
                                      undertaken
          Space modifications (phase
    1  3)-modifications at 69-foot Fiscal year 1998 Not implemented        N/A
          level
    2  Relocate American Film      Fiscal year 2000 Not implemented        N/A
          Institute Theater
    3  New office windows          Fiscal years     Not implemented        N/A
                                      2000 and 2002
    4  New production shop         Fiscal year 2002 Not implemented        N/A
          Interpretive theater        Fiscal year 1998
    5  modernization               moved to fiscal  Not implemented        N/A
                                      year 2002
                                                       Not implemented-
    6  Egress from River Terrace   Fiscal year 2002 part of Plaza          N/A
                                                       project
    7  Administrative office       Fiscal year 2002 Not implemented        N/A
          renovation (phase 7)
    8  Administrative office       Fiscal year 2003 Not implemented        N/A
          renovation (phase 8)
    9  Administrative office       Fiscal year 2004 Not implemented        N/A
          renovation (phase 9)
                                                       To be determined;
    10 Design-office renovation    Fiscal year 2004 priority given to      N/A
                                                       other projects
                                                       To be determined;
    11 Office renovations          Fiscal year 2005 priority given to      N/A
                                                       other projects
    12 Public space                Fiscal year 2006 To be determined       N/A
          improvements-commence
    13 Continue public space       Fiscal year 2007 To be determined       N/A
          improvements
    14 Mezzanines (phase           Fiscal year 1998 Studied 1998; not $564,206
          1)-visitor amenities                         implemented
    15 Terrace level               Fiscal year 2000 Studied 2001; not  $55,539
          reorganization                               implemented
          Total                                                          $619,745

    Source: The John F. Kennedy Center for the Performing Arts.

    Comments from the John F. Kennedy Center for the Performing ArtsAppendix
    III

    GAO Contact and Staff AcknowledgmentsAppendix IV

    GAO Contact

    Susan Fleming, (202) 512-4431

    Staff Acknowledgments

    In addition to the individual named above, Omar Beyah, Maria Edelstein,
    Brandon Haller, Nancy Lueke, Julie Phillips, and Susan Michal-Smith made
    significant contributions to this report.

    (543091)
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