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 [email protected]. 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.

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