    Smithsonian Institution: Facilities Management Reorganization Is
    Progressing, but Funding Remains a Challenge (25-APR-05,
    GAO-05-369).

    The Smithsonian is the world's largest museum complex and
    research organization, with 18 museums and galleries, 10 science
    centers, and a zoological park. The age of the structures, past
    inattention to maintenance needs, and high visitation have left
    its facilities in need of revitalization and repair. Currently,
    the Smithsonian estimates $2.3 billion in costs for
    revitalization, construction, and maintenance projects between
    2005 and 2013. This report addresses (1) how the current
    condition of the Smithsonian's facilities has affected access to
    the collections, and the collections themselves; (2) what changes
    the Smithsonian has made to its organization, practices, and
    prioritization processes to improve its facilities management;
    and (3) the estimated costs and status of the Smithsonian's
    facilities projects and their funding sources.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-05-369
        ACCNO:   A22559
      TITLE:     Smithsonian Institution: Facilities Management
    Reorganization Is Progressing, but Funding Remains a Challenge
         DATE:   04/25/2005
      SUBJECT:   Appropriated funds
    	     Cost analysis
    	     Facility construction
    	     Facility maintenance
    	     Facility management
    	     Facility repairs
    	     Federal facilities
    	     Internal controls
    	     Maintenance costs
    	     Museums
    	     National parks
    	     Strategic planning
    	     Cost estimates
    	     Maintenance operations

    ******************************************************************
    ** This file contains an ASCII representation of the text of a  **
    ** GAO Product.                                                 **
    **                                                              **
    ** No attempt has been made to display graphic images, although **
    ** figure captions are reproduced.  Tables are included, but    **
    ** may not resemble those in the printed version.               **
    **                                                              **
    ** Please see the PDF (Portable Document Format) file, when     **
    ** available, for a complete electronic file of the printed     **
    ** document's contents.                                         **
    **                                                              **
    ******************************************************************
    GAO-05-369

                     United States Government Accountability Office

                         GAO Report to Congressional Requesters

    April 2005

    SMITHSONIAN INSTITUTION

    Facilities Management Reorganization Is Progressing, but Funding Remains a
                                       Challenge

                                           a

    GAO-05-369

    [IMG]

    April 2005

    SMITHSONIAN INSTITUTION

    Facilities Management Reorganization Is Progressing, but Funding Remains a
    Challenge

      What GAO Found

    To date, facilities-related problems at the Smithsonian have resulted in a
    few building closures and access restrictions and some cases of damage to
    the collections. For example, structural deterioration has caused closure
    of the 1881 Arts and Industries Building on the National Mall pending
    major repair and revitalization, as well as some facilities at the
    National Zoo. Concern over asbestos in a number of storage buildings has
    led to restricted access to the items within them. Some artifacts, such as
    two historic aircraft, have been damaged by water leaks from deteriorated
    pipes and roofing elements. Stopgap measures, such as draping plastic
    sheeting over artifacts in areas experiencing leaks, have prevented or
    minimized damage in other cases. Maintaining desired humidity and
    temperature levels for conserving the collections is a pervasive problem
    in some older Smithsonian facilities. These problems are indicative of a
    broad decline in the Smithsonian's aging facilities and systems that pose
    a serious long-term threat to the collections.

    The Smithsonian recently centralized its facilities organization, adopted
    industry best practices to maximize the effectiveness of its resources,
    reviewed its operating procedures, standardized its cost-estimating
    practices, and established processes for prioritizing work and allocating
    funds. These changes resulted from an internal review and a 2001 report by
    the National Academy of Public Administration, which recommended that the
    Smithsonian centralize its then highly decentralized approach to
    facilities management and budgeting in order to promote uniform policies
    and procedures, improve accountability, and avoid duplication. The
    Smithsonian created the Office of Facilities Engineering and Operations
    (OFEO) in 2003 to assume responsibility for all facilities-related
    programs and budgets-formerly divided among four administrative offices
    and the individual museums and centers. Most of the museum and center
    directors were either positive or neutral about the effectiveness of the
    reorganization so far. Overall, the reorganization appears to be moving in
    the right direction, though it has been hindered by reductions in OFEO's
    staffing and budget.

    The Smithsonian currently estimates that its planned capital and
    maintenance projects for 2005 through 2013 will cost about $2.3 billion,
    though this could grow because it is largely based on preliminary
    assessments. Of 13 revitalization and construction projects active during
    our review, most were on time and within budget. The Smithsonian's annual
    operating and capital program revenues come from its own trust fund assets
    and its federal appropriation (totaling $904.0 million in fiscal year
    2004, with $184.4 million for facilities). Funding at this level would not
    be sufficient to cover the facilities projects planned for the next 9
    years. Ensuring credible, long-term budget planning for sustaining and
    modernizing facilities involves the Smithsonian, the Office of Management
    and Budget, and the Congress in examining viable funding options. While
    Smithsonian officials have discussed funding options internally and with
    various stakeholders, no consensus has emerged on how to deal with this
    funding challenge.

    United States Government Accountability Office

    Contents

      Letter

    Results in Brief
    Background
    Facility Conditions Have Generally Had Limited Effects on Access

    and Collections, but Some Chronic Problems Present Ongoing Risks

    Smithsonian Has Centralized Its Facilities Management Organization and
    Budget to Improve the Efficiency and Effectiveness of Its Operations

    Estimated Costs of Facilities Projects Have Grown, Posing Serious

    Funding Challenge Conclusion Recommendation for Executive Action Agency
    Comments

    1 4 7

    12

    22

    30 51 52 53

    Appendixes

    Appendix I:

    Appendix II:

    Appendix III:

    Appendix IV:

    Appendix V:

    Appendix VI:

                                        Appendix VII: Appendix VIII: Appendix IX:

    Funding Sources and Statutes Related to the Smithsonian's
    Revitalization, Construction, and Minor Repair and
    Maintenance Programs 54

    Smithsonian Institution's Status on the Implementation of
    the National Academy of Public Administration's
    Recommendations 66

    Organization and Responsibilities of the Smithsonian's
    Office of Facilities Engineering and Operations 71

    Smithsonian's Efforts to Implement Leading Practices in
    Capital Decision-Making 73

    Facility Revitalization and Construction Project Code
    Assignment Matrix 76

    Flow Chart of the Prioritization Decision-Making Process for
    Minor Repair and Maintenance 77

    Scope and Methodology 78

    Comments from the Smithsonian Institution 80

    GAO Contacts and Staff Acknowledgments 82
    GAO Contacts 82
    Staff Acknowledgments 82

                                        Contents

    Tables Table 1: Appropriated and Estimated Costs of Smithsonian Capital
                              and Maintenance Programs, Fiscal Years 2005-2013 31
               Table 2: Estimated Costs for Major Revitalization Projects as
                       Reported by NAPA in 2001 and Identified by the
                                    Smithsonian in 2005                        39
                 Table 3: Status of Fiscal Year 2004 Funded or Completed Major
                                 Projects as of April 2005                     46

    Figures	Figure 1: Figure 2:

    Figure 3:

    Figure 4: Figure 5:

    Figure 6:

    Figure 7:

    Figure 8: Figure 9:

    Location of Smithsonian Institution Facilities
    Growth in Major Facilities Owned by the Smithsonian, in
    Square Feet
    Arts and Industries Building, 1977 (left) and February
    2005 (right)
    Sloth Bear Facility, National Zoo
    Measures to Shield Collections from Asbestos, Garber
    Facility, Suitland, MD
    Water Stain on Wing of Lilienthal Hang Glider, National
    Air and Space Museum
    Rust on Fuselage of Douglas Skyrocket, D558, Caused by
    Water Leak, National Air and Space Museum
    Flooded Mechanical Room at the National Zoo
    Alcohol-Preserved Specimens Stored on Open Shelves at
    the National Museum of Natural History

    Figure 10: Nonexplosion Proof Lighting Fixtures and Switches in Alcohol
    Storage Rooms at the National Museum of Natural History

    Figure 11: Organization of Smithsonian's New Office of Facilities
    Engineering and Operations

    Figure 12: Failing Heating, Ventilation and Air Conditioning System at
    National Air and Space Museum

    Figure 13: Antiquated Fire Suppression System, National Air and Space
    Museum

    Figure 14: Flooding in High-Voltage Room, National Museum of American
    History

    Figure 15: Leak in the Room 4303 (History Storage Room) at the National
    Museum of American History

    Figure 16: Site Footprint of Planned Alcohol Storage Unit (Pod 5) to be
    Added to the Museum Support Center, Suitland, MD

    Figure 17: Estimated Maintenance Project Costs, by Type (dollars in
    millions)

                                           8

                                           10

                                         13 14

                                           15

                                           17

                                         18 19

    21

    21 24 34 35 36 37

    38 43

    Contents

    Abbreviations

    CII Construction Industry Institute
    COTS Commercial Off the Shelf
    CPPB Capital Program Planning Board
    ERP Enterprise Resource Planning
    FONZ Friends of the National Zoo
    FY Fiscal year
    HVAC Heating, ventilation and air conditioning
    Maintenance Minor repair and maintenance
    Mall National Mall
    NAPA National Academy of Public Administration
    National Zoo National Zoological Park
    NHPA National Historic Preservation Act
    NMAH National Museum of American History
    NMNH National Museum of Natural History
    NRC National Research Council
    OFEO Office of Facilities Engineering and Operations
    OMB Office of Management and Budget
    OPP Office of Physical Plant
    PC Priority Code
    PFITS Capital program cuff system
    PT&I Predictive testing and inspection
    RCM Reliability Centered Maintenance
    RR&A Renovation, repair and alteration
    S&E Salary and expenses
    SAO Smithsonian Astrophysical Observatory
    SFS Smithsonian Financial System
    Smithsonian Smithsonian Institution
    VERITAS Very Energetic Radiation Imaging Telescope Array System

    This is a work of the U.S. government and is not subject to copyright
    protection in the United States. It may be reproduced and distributed in
    its entirety without further permission from GAO. However, because this
    work may contain copyrighted images or other material, permission from the
    copyright holder may be necessary if you wish to reproduce this material
    separately.

    A

    United States Government Accountability Office Washington, D.C. 20548

    April 25, 2005

    The Honorable Bill Shuster

    Chairman, Subcommittee on Economic Development, Public Buildings, and
    Emergency Management Committee on Transportation and Infrastructure House
    of Representatives

                          The Honorable Eleanor Holmes Norton

    Ranking Democratic Member, Subcommittee on Economic Development, Public
    Buildings, and Emergency Management Committee on Transportation and
    Infrastructure House of Representatives

    In January 2004, the Smithsonian Institution (the Smithsonian) closed its
    1881 Arts and Industries Building to the public over concern about its
    deteriorating roof structure. During 2003, the roofs of two historic
    buildings of similar age and design had partially collapsed under heavy
    snowfall.1 Arts and Industries-used most recently for special exhibits and
    administrative offices-will need major renovation and revitalization work,
    including the replacement of its aging electrical, plumbing, and heating
    and cooling systems, before it can be returned to service. The failing
    condition of this National Mall (the Mall) landmark is the most extreme
    example of what a Smithsonian official has characterized as a "broad
    decline" in its extensive physical plant.

    This decline can, paradoxically, be linked to the Smithsonian's remarkable
    success in carrying out its mission: "the increase and diffusion of
    knowledge among men." In the years since its founding in 1846, the
    Smithsonian Institution has preserved-and shared-our nation's most
    precious objects and become an international leader in scholarship and
    scientific discovery. From its original building on the Mall (commonly
    known as "the Castle"), the Smithsonian has evolved into the world's
    largest museum complex and research organization, with 18 museums and
    galleries, 10 science centers, a zoological park, and various other
    facilities-in total, more than 660 owned and leased buildings and other
    structures, with an estimated replacement value of about $4.7 billion for
    owned space as of June 2004. About 143.7 million objects and specimens

    1The roofs of the B&O Railroad Museum in Baltimore, Maryland, and the O
    Street Market in Washington, D.C., collapsed under the weight of a heavy
    snowfall in February 2003.

    are safeguarded, studied, and displayed within its facilities, including
    research collections in natural history and biology, as well as icons of
    our national history such as the Fort McHenry "Star Spangled Banner" and
    the Apollo 11 command module.2 Two of the Smithsonian's museums on the
    Mall are the most visited in the world, with a third rivaling visitation
    at the British Museum and the Louvre.

    With this tremendous physical expansion and popularity, however, have come
    related facilities problems that include the structural deterioration of
    aging buildings; heating, cooling and electrical systems that are well
    past their normal life expectancy; leaks from roofs and pipes that
    jeopardize the collections; inadequate exhibition and storage space; and
    maintenance levels that have not kept pace with the wear and tear from
    millions of visitors each year. A 2001 report by the National Academy of
    Public Administration (NAPA)-based on a review requested by the Congress-
    highlighted the need for major changes in the Smithsonian's facilities
    management practices to help address these problems. In response to NAPA's
    recommendations, as well as its own internal review, the Smithsonian has
    been transforming its approach to facilities management. The NAPA report
    also found that, prior to 2000, the Smithsonian underestimated its
    revitalization needs, which were significantly larger than were identified
    in its budget requests. The Smithsonian has updated its funding
    requirements and has a 9-year estimate for the revitalization of its older
    buildings, new construction, and minor repair and maintenance
    (maintenance)3 work that now stands at about $2.3 billion.4

    In light of ongoing concerns over the state of its facilities, you asked
    us to review the Smithsonian's facilities management. Accordingly, we
    addressed the following questions:

    2In addition, the Smithsonian has approximately 166.3 million archival
    items, such as 50,000 cubic feet of paper documents and 7 million
    photographs, as of 2003.

    3Minor repair and maintenance includes the upkeep of property and
    equipment necessary to realize the originally anticipated useful life of a
    fixed asset. It does not materially prolong the design life of property or
    equipment, or add to the asset's value.

    4This number includes estimates for projects that have not been through a
    design phase. According to the Construction Industry Institute, these
    types of estimates can vary by plus or minus 30 to 50 percent. Therefore,
    the Smithsonian's overall $2.3 billion estimate should be viewed only as
    an approximation based on the best current information.

    o 	How does the current condition of the Smithsonian's facilities affect
    public and scientific access to the collections, and the collections
    themselves?

    o 	What changes to its organizational structures and practices has the
    Smithsonian put in place to manage its facilities, and how does the
    Smithsonian now prioritize its revitalization, construction, and
    maintenance projects?

    o 	What are the estimated costs and status of the Smithsonian's major
    revitalization, construction, and maintenance projects, including those
    that have been deferred, and what are the funding sources for these
    projects?

    In addition, you asked us to provide information on how the Smithsonian
    uses its trust fund resources and federal appropriations to fund its
    operations, as well as information on the basic legal authorities under
    which the Smithsonian runs its revitalization, construction, and
    maintenance programs. This information is included as appendix I of this
    report.

    To address these issues, we visited 11 Smithsonian facilities to view and
    discuss problem areas with staff from the Smithsonian's Office of
    Facilities Engineering and Operations (OFEO) and the directors of the
    individual facilities. The Smithsonian identified these facilities as
    having significant facilities-related problems. Several facilities that we
    visited consisted of multiple buildings, such as the National Zoological
    Park (the National Zoo), which has more than 40 buildings. We interviewed
    the OFEO director and other appropriate OFEO staff, project executives,
    and project managers, as well as the Smithsonian's chief financial
    officer, associate general counsel, and 16 directors of museums,
    galleries, the National Zoo, a program and a research center (all internal
    customers of OFEO). We reviewed a variety of Smithsonian handbooks and
    guidance related to facilities project management, prioritization
    criteria, decision-making processes, and best practices. We also reviewed
    the NAPA report, the Smithsonian inspector general's reports, and other
    appropriate reports. We researched the Smithsonian's enabling legislation,
    the statutes under which it currently operates, including appropriations
    acts and numerous statutes authorizing Smithsonian Institution facilities
    from the 1950s. We also reviewed the Smithsonian's congressional budget
    requests and audited financial statements for fiscal years 2002, 2003, and
    2004. The information we gathered was sufficiently reliable for the
    purposes of our review. We

    conducted our work between April 2004 and April 2005 in accordance with
    generally accepted government auditing standards. See appendix VII for a
    more detailed explanation of our scope and methodology.

    Results in Brief	Facilities-related problems at the Smithsonian have
    resulted in a few building closures and access restrictions, and some
    cases of harm to the collections. The problems range from major structural
    deterioration to chronic leaks that have damaged a few collections and
    threatened others. While the impact of these problems thus far has been
    limited, ongoing deterioration continues to present serious long-term
    risks to the collections' accessibility and safety. A few facilities have
    deteriorated to the point where access must be denied or limited. The 1881
    Arts and Industries Building on the Mall was closed to the public in 2004
    for an indefinite period, pending repair of its weakened roof panels,
    renovation of its interior (which has been damaged by water intrusion),
    and replacement of aging systems such as heating and cooling. Another
    example is the National Zoo, where deterioration has led to closures, such
    as the sloth bear facility and the flight cage for birds of prey, and
    problems with major systems could jeopardize the operation of other zoo
    facilities. In addition, concern over asbestos in some Smithsonian storage
    buildings has led to restrictions on access to the collections kept inside
    them. Water leaks caused by deteriorated piping and roofing elements,
    along with humidity and temperature problems in buildings with aging
    systems, pose perhaps the most pervasive threats to artifacts in the
    museums and storage facilities. For example, leaks have damaged two
    historic aircraft at the National Air and Space Museum. Quick action by
    staff and stopgap measures, such as draping plastic sheets over materials
    exposed to leaks, has helped to prevent or minimize damage in other cases.
    For example, Smithsonian Institution Archives staff told us that they have
    had to deal with 19 "water emergencies" since June 2002; some of their
    materials have been damaged by mold.

    The Smithsonian has taken steps to improve its facilities management in
    response to recommendations by NAPA in 2001 and its own internal review.
    At that time, the Smithsonian's facilities management was highly
    decentralized, with a complex, multilayered management structure and
    multiple budgets. Noting that this decentralization had a direct and
    sometimes adverse impact on effective management, NAPA recommended that
    the Smithsonian centralize its facilities-related functions, including the
    budgets for capital (revitalization and new construction) and maintenance
    programs in order to promote uniform policies and procedures, improve

    accountability, and avoid duplication. In 2001, the Smithsonian began
    developing OFEO, which assumed responsibility for all facilities-related
    programs and budgets previously divided among four administrative offices,
    individual museums and science centers and the National Zoo. This office
    is also adopting a variety of recognized industry best practices for
    managing facilities projects, such as the use of benchmarking and metrics
    recommended by the Construction Industry Institute and leading capital
    decision-making practices.5 In addition, the office has assigned
    responsibility for prioritizing projects to two offices under its
    direction- one for capital projects and the other for maintenance
    projects. Each of these offices follows a defined, consistent
    priority-setting process for projects under its jurisdiction at all
    Smithsonian facilities. Because the newly centralized facilities
    management organization has been in place with its own budget for only
    about a year, it is too early to assess its full impact. However, the
    process appears to be moving in the right direction. Of the 16 directors
    of museums, galleries, research centers, the National Zoo, and a program
    office that we contacted (all internal customers of OFEO), 5 said that
    facilities services had substantially improved, and 9 others were
    generally positive or neutral about the reorganization. Two directors said
    that services had deteriorated since the reorganization. Various
    directors, including the 2 who expressed negative views noted that OFEO's
    funding and staffing have been reduced due to budget constraints and a
    Smithsonian-wide staff "buy out," thereby hindering full implementation of
    the reorganization. Also, several directors, including some with positive
    reactions to the reorganization, noted that communications from OFEO to
    its internal customers could be improved.

    The Smithsonian currently estimates that it will need about $2.3 billion
    through fiscal year 2013 for its currently identified revitalization,
    construction, and maintenance programs. This estimate exceeds NAPA's 2001
    estimate of $1.2 billion because it reflects more recent and comprehensive
    assessments of the Smithsonian's revitalization needs, covers new
    construction (including about $103 million to address security
    requirements),6 and incorporates more complete information about the
    maintenance projects. The Smithsonian is also standardizing its cost
    estimation process. Estimated costs could increase, since they are largely

    5GAO, Executive Guide: Leading Practices in Capital Decision-Making,
    GAO/AIMD-99-32 (Washington, D.C.: December 1998.)

    6NAPA's estimate did not cover new construction because the Congress did
    not ask NAPA to review the Smithsonian's construction program.

    based on preliminary needs assessments and early design documents. A big
    "unknown" is the timing and cost of the recently authorized National
    Museum of African American History and Culture, which is likely to cost
    hundreds of millions of dollars.7 Recent additions to the Smithsonian's
    building inventory-the National Museum of the American Indian and the
    Steven F. Udvar-Hazy Center-and the planned 2006 reopening of the
    revitalized Patent Office Building will add to the Smithsonian's annual
    maintenance costs. Of 13 major revitalization and construction projects
    (those in excess of $5 million) being funded at the time of our review,
    most were on time and within budget. Finding the funding needed for the
    full range of planned capital and maintenance projects is an imposing
    challenge for the Smithsonian. The institution's annual operating and
    capital programs revenue, which comes from a percentage of its trust
    assets and its federal appropriation, amounted to $904 million in fiscal
    year 2004,8 with about $184.4 million of this total for facilities.
    Revenues at this level would not be sufficient to cover the $2.3 billion
    in estimated costs for the institution's planned facilities projects and
    maintenance needs over the next 9 years. Officials told us that various
    funding approaches and options have been discussed by the staff, the Board
    of Regents, and with congressional leaders, but that no consensus for
    dealing with this issue has emerged. It remains unclear at this time the
    extent to which the Smithsonian will secure the funding to carry out all
    of its planned facilities projects.

    We are recommending that the Secretary of the Smithsonian establish a
    process for exploring options for funding its facilities needs and
    engaging the key stakeholders-the Smithsonian Board of Regents, the
    Administration, and the Congress-in the development and implementation of
    a strategic funding plan to address the revitalization, construction, and
    maintenance projects identified by the Smithsonian. We provided a draft of
    this report to the Smithsonian for comment. The Smithsonian concurred with
    our findings and recommendation and offered some technical comments and
    updates that were incorporated where appropriate.

    7The founding Council of the Smithsonian's National Museum of African
    American History and Culture held its first meeting on February 8, 2005,
    and adopted bylaws and discussed possible collections for the Museum.
    Building costs will be equally divided between congressional
    appropriations and privately raised funds.

    8The $904 million is based on the Smithsonian's audited financial
    statements for fiscal year 2004.

    Background	The Congress established the Smithsonian Institution in 1846 to
    administer a large bequest left to the United States by James Smithson, an
    English scientist, for the purpose of establishing in Washington, D.C., an
    institution "for the increase and diffusion of knowledge among men." In
    accepting Smithson's bequest on behalf of the nation, the Congress pledged
    the "faith of the United States" to carry out the purpose of the trust.9
    To that end, the act establishing the Smithsonian provided for the
    administration of the trust, independent of the government itself, by a
    Board of Regents and a Secretary, who were given broad discretion in the
    use of the trust funds. The board was composed of both private citizens
    and members of all three branches of the federal government, in order to
    ensure "the wise and faithful use" of the Institution's funds.10 The trust
    funds were permanently loaned to the Treasury to be maintained in a
    separate account; and the principal was to be maintained and the interest
    from that money used for the operation of the Institution. Although the
    Smithsonian has grown greatly since its founding nearly 160 years ago, it
    retains its essential character as a trust establishment of the United
    States.

    Over the last 150 years, the Smithsonian's facilities inventory has
    expanded to include 18 museums and galleries, 10 science centers, a zoo,
    and other facilities-most located in or near Washington, D.C., with others
    in Massachusetts, New York, Florida, Arizona, Hawaii, and the Republic of
    Panama. (See fig. 1.) These facilities include about 660 buildings and
    structures, owned and leased, ranging from major museum buildings to
    storage buildings and storage sheds. There are about 8.6 million square
    feet of owned space and 1 million square feet of leased space. The
    Smithsonian has estimated the replacement value for owned space at about
    $4.7 billion as of June 2004. In 2003, an estimated 25 million people
    visited Smithsonian museums, and researchers made 39,000 visits to use its
    facilities.

    9A trust is a fiduciary relationship involving a right of property held by
    the trustee for the benefit of another.

    10The specific composition of the board has changed somewhat since 1846 by
    law, but it is still a mixture of government and private individuals. At
    present, the board is composed of the Chief Justice of the United States,
    the Vice President, three senators appointed by the President of the
    Senate, three representatives appointed by the Speaker of the House, and
    nine citizens appointed by Joint Resolution of Congress-two from the
    District of Columbia and seven from the states.

    Figure 1: Location of Smithsonian Institution Facilities

    Source: Smithsonian Institution.

    The major buildings owned by the Smithsonian range in age from about 160
    years old to less than a year old, with most of the facilities growth
    occurring since the 1960s. (See fig. 2.) More than half of these buildings
    are more than 25 years old, 6 are designated as National Historic
    Landmarks,

    and about 40 are listed on the National Register of Historic Places or
    otherwise eligible for special consideration under federal guidelines for
    historic buildings.11 Not all of these buildings involved new
    construction. For example, the Patent Office Building, Renwick Gallery,
    and Cooper-Hewitt Museum were transferred to the Smithsonian after they
    were built, and the Victor Building was purchased for use as
    administrative offices. The two latest additions to the Smithsonian are
    the Steven F. Udvar-Hazy Center (phase I), which is part of the National
    Air and Space Museum and opened in December 2003, and the National Museum
    of the American Indian, which opened in September 2004. The Smithsonian's
    growth will continue with the construction of an aircraft restoration area
    at the Udvar-Hazy Center (phase II), which the Smithsonian plans to
    complete in 2008,12 and the design and construction of a National Museum
    of African American History and Culture, authorized by the Congress in
    2003. Beyond this, some members in both houses of Congress have expressed
    interest in developing a National Museum of the American Latino
    Community.13

    11According to Smithsonian officials, these classifications increase the
    difficulty of maintaining buildings because they involve federal
    requirements for revitalization and maintenance. The National Historic
    Preservation Act (NHPA) of 1966 outlines specific actions required of
    federal agencies (of which the Smithsonian is considered to be for the
    purposes of NHPA) to protect cultural resources listed, or eligible for
    listing, in the National Register of Historic Places. The standards
    require owners to maintain the original structure, fabric, and character
    of the site (both interior and exterior) when making additions or
    upgrades.

    12The construction of the Steven F. Udvar-Hazy Center was divided into two
    phases to allow for the Smithsonian to raise the private funding needed
    for the project.

    13Several bills were introduced in the 108th Congress to study the
    creation of a National Museum of the American Latino Community. These
    bills were not enacted.

    Figure 2: Growth in Major Facilities Owned by the Smithsonian, in Square
    Feet

    Square feet in millions National Museum of the American Indian 10

    9

    8

    7

    6

    5

    4

    3

    2

    1

    0 1850 1860

         1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

    Year

    Source: Smithsonian Institution.

    Note: This figure tracks the square footage for all owned buildings as
    they were added to the inventory over time. Only the major facilities are
    named in the figure, although the square footage of smaller buildings is
    included.

    In 1995, a commission established by the Smithsonian's Board of Regents
    reported that the Institution's facilities were deteriorating at an
    accelerated rate because of their age, the large number of visitors, and
    the Smithsonian's failure to invest sufficient resources to repair,
    revitalize, and maintain them. The commission concluded that over the next
    decade, a total of $50 million a year would be needed to restore the
    Institution's facilities (excluding the National Zoo) to the point of
    being safe for people

    and appropriate for collections.14 This estimated annual need was more
    than double the fiscal year 1995 appropriation for these purposes.

    Generally, the Congress provided increased funding in the late 1990s, but
    in 2000 the newly appointed Secretary of the Smithsonian testified that he
    believed the Smithsonian's buildings were in poor condition and that the
    cost to restore them would be substantially more than previously
    identified.15 The Secretary stated that the Smithsonian "has hesitated to
    represent to Congress the full scale of the need. Instead, we've tried to
    make do." In response, the Congress directed the Smithsonian to contract
    with NAPA for a review to obtain a better understanding of the use of
    funds that had been provided to date. Specifically, NAPA was to determine
    (1) how the Smithsonian had expended federal funds for repair and
    restoration of its facilities, (2) what progress had been made in
    restoring the facilities, and (3) what tasks lay ahead.16

    NAPA reported in July 2001 that the federal funds appropriated for the
    Smithsonian's facilities had been used properly; the Smithsonian's
    facility requirements exceeded the amounts provided in the institution's
    annual budgets; and the Smithsonian's 2000 estimates were based on a
    reasonable, building-by-building approach and were more realistic than
    previous estimates.17 NAPA found that the Smithsonian had used the funds
    for highpriority repair and restoration projects but that its needs were
    far greater than those identified in its budget requests. While validating
    the Smithsonian's 10-year estimate of about $1.2 billion in repair and
    revitalization projects, NAPA noted that this estimate could increase to
    at least $1.5 billion because it was not adjusted for the effects of
    inflation and reflected only rough "orders of magnitude" estimates for
    later-year

    14Report of the Commission on the Future of the Smithsonian Institution,
    1995.

    15The Secretary testified before the U.S. Senate Committee on Rules and
    Administration on June 27, 2000.

    16H.R. Rep. No. 106-914, at 183-184 (2000).

    17National Academy of Public Administration, A Study of the Smithsonian
    Institution's Repair, Restoration and Alteration of Facilities Program,
    (Washington, D.C.: July 2001). This report examined repair, renovation,
    and alteration but did not examine new construction.

    requirements.18 The report also recommended management improvements,
    including centralizing the Smithsonian's decentralized facilities
    management under a single organization and implementing a more structured
    maintenance program. At the beginning of our review, the Smithsonian had
    implemented 25 of the 30 recommendations, including a fundamental
    reorganization of its facilities management organization, funding, and
    staffing and the other 5 recommendations were in the process of being
    implemented. (See app. II for a listing of NAPA's recommendations and the
    status of the Smithsonian's implementation of them.) In addition to the
    need for management improvements, NAPA highlighted the importance of a
    "continuing and substantial infusion of funds" to address facilities
    needs.

    We alluded to the Smithsonian's facilities problems in our High Risk
    Series report on federal real property. The Smithsonian is one example of
    the problem facing agencies across the federal government, which have
    accumulated significant backlogs of maintenance and renovation needs and
    face serious deterioration problems. Overall, we found that the condition
    of federal facilities is one of alarming and accelerating deterioration.19

    Facility Conditions Have Generally Had Limited Effects on Access and
    Collections, but Some Chronic Problems Present Ongoing Risks

    Facilities-related problems at the Smithsonian have resulted in a few
    building closures and access restrictions and, in some cases, harm to the
    collections. The problems range from major structural deterioration to
    chronic leaks that have damaged a few collections and threatened others.
    While the impact of these problems thus far has been limited, ongoing
    deterioration continues to present serious long-term risks to collections'
    accessibility and safety.

    18Such estimates are based on feasibility studies. Order-of-magnitude
    estimates can vary by plus or minus 30 to 50 percent.

    19GAO, High-Risk Series: Federal Real Property, GAO-03-122 (Washington,
    D.C.: January 2003), pp. 2, 15, 25.

    Restrictions on Access	Serious structural problems have led to the closure
    of the third-oldest building in the Smithsonian's inventory, the Arts and
    Industries Building, as well as several buildings at the National Zoo. The
    roof panels of the Arts and Industries Building, which opened in 1881,
    have deteriorated to the point where they are considered unsound. The
    building was closed to the public in 2004 and will be closed to staff in
    2005. Prior to its public closure, the Arts and Industries Building housed
    collections and received more than 900,000 visitors annually. The building
    also provided the Smithsonian with a venue for functions related to
    fund-raising. No date has been set for reopening this museum. Figure 3
    shows a comparison of the North Hall of the Arts and Industries building
    in 1977 and February 2005.

    Figure 3: Arts and Industries Building, 1977 (left) and February 2005
    (right)

    Source: Smithsonian Institution.

    At the National Zoo, facilities such as the sloth bear enclosure and the
    flight cage for birds of prey have been rendered unusable because of
    deterioration. In 2002, the National Zoological Park Director testified to
    the Congress that over half of the National Zoo's buildings have seriously
    compromised structural, mechanical, electrical, and fire and life-safety
    systems. The National Zoo has begun a revitalization program that

    currently is being funded. Figure 4 shows the deterioration at the zoo's
    sloth bear facility.

    Figure 4: Sloth Bear Facility, National Zoo

    Source: GAO.

    In addition to structural deterioration, problems with asbestos have
    restricted researchers' access to certain collections. At the Garber
    Facility, a complex used for storage and other support purposes,
    researchers' access to 5 of the complex's 40 buildings has been restricted
    because of asbestos. In these 5 buildings, the stored items must be
    covered with plastic, and access is limited to a few staff. Figure 5 shows
    the interior of building 16 at the Garber Facility, which provides storage
    for artifacts for the National Museum of American History.

    Figure 5: Measures to Shield Collections from Asbestos, Garber Facility,
    Suitland, MD

                            Source: Smithsonian Institution.

    Both public and researchers' access to facilities and collections also can
    be temporarily restricted by revitalization projects. For example, the
    Patent Office Building, the second oldest building in the Smithsonian's
    inventory, has been closed to the public since 2000 for revitalization.20
    This building is the home of the National Portrait Gallery and Smithsonian
    American Art Museum. The Smithsonian has tried to limit the impact of the
    closure for revitalization by loaning art work from these collections to
    other museums or having traveling exhibits. Parts of the National Museum
    of American History, the National Museum of Natural History, and the
    National Zoo also have been closed to the public during revitalization
    projects. At the

    20The Patent Office Building was acquired by the Smithsonian in 1958 after
    escaping proposed demolition. This historic "Greek Revival" building was
    constructed in several stages and completed in 1867.

        National Museum of Natural History, the mammal collection was closed to
     researchers for 2 years while the exhibit hall was undergoing revitalization.

    Damage and Threats to Collections

    Besides affecting access to the collections, the condition of Smithsonian
    buildings can also affect the collections themselves. The greatest dangers
    to the collections to date have been posed by water. For example, at the
    National Air and Space Museum, Smithsonian officials showed us that leaks
    have damaged both the Lilienthal Hang Glider, which helped pioneer early
    flight design by influencing the Wright Brothers, and the Douglas
    Skyrocket, D558, the first airplane to break Mach 2. (See figs. 6 and 7.)
    Water also damaged 200 books at the Smithsonian Institution Archives due
    to a drain back-up.

    Figure 6: Water Stain on Wing of Lilienthal Hang Glider, National Air and
    Space Museum

    Source: Smithsonian Institution.

    Figure 7: Rust on Fuselage of Douglas Skyrocket, D558, Caused by Water
    Leak, National Air and Space Museum

    Source: Smithsonian Institution.

    Smithsonian officials identified several incidents and vulnerabilities
    related to water, including:

    o 	In February 2005, a broken pipe at the National Zoo's mechanical room
    that supports the pools for the seals and sea lions flooded the room with
    8 feet of water and damaged controls, pumps, and motors. The pipes were
    scheduled for replacement this spring. See figure 8.

    Figure 8: Flooded Mechanical Room at the National Zoo

    Source: Smithsonian Institution.

    o 	At the Smithsonian Institution Archives, 19 water emergencies have
    occurred since June 2002, and the facility has formed an emergency
    response team to deal with them. "We are excellent drapers of plastic,"
    according to an Archives official. Some of the leaks were directly above
    collections, but quick action by the staff averted damage to the
    collections.

    o 	At the National Museum of African Art, breaches in the roof membrane,
    malfunctioning valves, and clogged pipes often leak over galleries,
    collection storage areas, and offices. Replacing the roof and the water
    condensate system could address these problems, but other, higher
    priorities have received funding instead.

    o 	At the Renwick Gallery, gutters have leaked into the Grand Salon and
    adjacent gallery, but damage to artwork has been avoided. Repairs are
    scheduled for fiscal year 2005.

    o 	At the Freer and Sackler Galleries, water has leaked many times in
    storage areas and the library, and condensation poses a serious problem in
    the Freer Gallery's exhibition areas. To date, no major damage to the
    collections has occurred.

    Another area of concern is related to fluctuating temperature and
    humidity, particularly in a museum setting where collections must be
    stored and displayed in precise ways. While we toured various facilities,
    operations and maintenance managers showed us aging heating, ventilation,
    and airconditioning systems that, the managers said, were no longer
    consistently maintaining the temperature and humidity needed to protect
    collections from deterioration. At the Renwick Gallery, for example,
    fluctuations in temperature and humidity produced by steam outages have
    caused weeping of the plaster on the gallery walls and could potentially
    damage art work. Poor ventilation at the Smithsonian Institution Archives
    caused high humidity, resulting in mold damage that made some records
    unreadable.

    Lastly, safety concerns and hazardous materials also threaten some
    collections. For example, at both the National Museum of Natural History
    and the Smithsonian Environmental Research Center, biological specimen
    collections are preserved in an alcohol solution that poses a safety risk
    from fire or explosive vapor that has to be controlled. Additionally, at
    the Smithsonian Environmental Research Center, collections are stored in
    deteriorating surplus trailers, many of them over 20 years old. Figures 9
    and 10 depict problems with the storage of specimens stored in
    alcohol-filled containers of various sizes at the National Museum of
    Natural History. Several large rooms of about 10,000 square feet are used
    to store these containers, though current code limits such rooms to 500
    square feet for safety purposes. Figure 9 shows that the storage
    containers are not enclosed, and figure 10 shows alcohol storage rooms
    that do not have current code-required explosion proof electrical
    equipment and fixtures.

    Figure 9: Alcohol-Preserved Specimens Stored on Open Shelves at the
    National Museum of Natural History

    Source: Smithsonian Institution.

                            Source: Smithsonian Institution.

    The Smithsonian is working to address these situations. Containment for
    these collections that is up to code is costly and will require new
    construction, which is currently under way.

    Smithsonian Has Centralized Its Facilities Management Organization and
    Budget to Improve the Efficiency and Effectiveness of Its Operations

    The Smithsonian has recently reorganized its facilities management
    function to improve its operational effectiveness and make more efficient
    use of limited staffing and funding resources. In July 2001, NAPA reported
    that the Smithsonian's decentralized organizational structure and
    management practices, in some cases, had a direct and adverse effect on
    the planning, design, and construction activities that were integral to
    the institution's revitalization, construction, and maintenance programs.
    In response to NAPA's recommendations for improvement and its own internal
    review, the Smithsonian began in fiscal year 2001 to centralize its
    facilities management, adopted a variety of industry best practices for
    managing facilities projects, and established a priority process for
    facilities management. Because of the relative newness of the
    reorganization, it is too early to assess its effectiveness, though it
    appears to be moving in the right direction. Smithsonian museum, program,
    and center directors (the internal customers directly affected by the
    reorganization) had generally positive or neutral reactions to the
    reorganization, although several directors believed that OFEO needed to
    improve communications with them. Many of the directors, as well as OFEO
    officials, noted that reductions in OFEO's staffing and budget have
    hindered fully implementing the reorganization.

    Smithsonian Has Centralized the Responsibility for Facilities Management

    At the time of NAPA's 2001 report, the Smithsonian's facilities operations
    were decentralized. Three distinct organizations-the offices of Physical
    Plant, Environmental Management and Safety, and Protection Services- were
    loosely integrated under the central Office of Facilities Services, but
    each organization had its own director and budget. The Office of Physical
    Plant was further divided into 14 different divisions and offices. These
    organizations were responsible for facility planning, design,
    construction, and maintenance activities for the museums and research
    facilities. However, the National Zoo had its own budget and on-site staff
    to perform these functions for itself and for its Conservation and
    Research Center at Front Royal, Virginia. In addition, each museum or
    other major facility had its own separate funding and organization for
    providing custodial services, loading dock management, trash collection,
    and minor maintenance.

    In its 2001 report, NAPA found that the sheer size of the Office of
    Physical Plant (with a span of control encompassing 14 different units)
    and the wide diversity of its functions (operations, repair, restoration,
    planning, design, and maintenance) led to a hybrid organization that was
    awkward to manage, diffused responsibility and accountability, and did not
    facilitate a focus on the office's three primary responsibilities: (1)
    operation and maintenance of the physical plant; (2) repair and
    restoration of facilities; and (3) new construction. NAPA also noted that
    the functions and tasks associated with operating and maintaining
    facilities were common to all of the Smithsonian buildings and that
    overlap and duplication were likely when more than one organization was
    responsible for carrying out the same functions. NAPA concluded that
    centralizing facilities management should enable the Smithsonian to
    provide more efficient and effective services by putting a single
    organization in charge. According to NAPA, this centralization would
    promote uniform policies and procedures, improve accountability, and avoid
    overlap and duplication.

    In March 2001, before NAPA issued its report, the Smithsonian hired the
    former director of Facilities Engineering at the National Aeronautics and
    Space Administration to lead the reorganization of the facilities program
    and to head the new organization. The Director met with the NAPA team and
    studied its findings and recommendations. He also met with the
    Smithsonian's senior leadership and, with the help of a small internal
    team, listened to priorities and suggestions from various customers,
    stakeholders, and other Smithsonian staff in developing a plan for the
    reorganization.21

    The result of this effort was the creation, in fiscal year 2004, of the
    Office of Facilities Engineering and Operations (OFEO), a new, flatter
    facilities management organization. OFEO assumed responsibility for all
    facilityrelated programs and budgets that had been divided among four
    offices the National Zoo, and each museum or other major facility. OFEO
    consists of eight offices-Project Management; Facilities Planning and
    Resources; Engineering, Design, and Construction; Facilities Reliability;
    Facilities Management; Protection Services; Safety and Environmental
    Management; and the Smithsonian Tropical Research Institute Facilities
    Operations-all reporting directly to the OFEO director and funded through
    one budget (see fig. 11). OFEO received its first budget in fiscal year
    2004.

    21Museums and Facilities: Critical Assessment and Improvement Objectives,
    September 2001.

    Management Source: Smithsonian Institution.

    Appendix III provides a detailed description of the responsibilities of
    each OFEO office. While all eight OFEO offices play a role in the
    facilities program, the Office of Project Management oversees all
    revitalization and construction projects, and two offices-Facilities
    Management and

    Facilities Reliability-manage maintenance projects. The Office of Project
    Management develops preliminary project scopes, schedules, and budgets;
    monitors, directs, and reports on updated scopes, schedules and budgets
    for projects; and coordinates the efforts of stakeholders, designers, and
    construction execution.22 Major projects (in excess of $5 million) are
    overseen by project executives, small projects ($5 million and less.) by
    project managers. For major projects, such as the construction of the
    National Museum of the American Indian and the revitalization of the
    Patent Office Building, monthly reports indicate the status of each
    project's cost and schedule. The OFEO director attends a monthly
    operational review of major revitalization and construction projects with
    museum directors, and the Smithsonian's deputy secretary/chief operating
    officer, general counsel, and chief financial officer are briefed
    approximately quarterly on the major projects. The Office of Project
    Management is also responsible for the initial prioritization of
    revitalization and construction projects.

    The Office of Facilities Management provides day-to-day facilities
    maintenance services, including preventive maintenance, janitorial and
    grounds maintenance, transportation and mail delivery, building management
    for leased facilities, landscaping, and system start-ups for newly
    completed facilities. The responsibility for maintenance is divided among
    eight zones. A zone may consist of one or more buildings. Each zone has a
    manager who is responsible for maintenance in that zone. If Facilities
    Management staff cannot perform the work, then the work is sent to the
    Office of Facilities Reliability.

    22A revitalization or construction project consists of three main steps:
    (1) project planning and development, which covers the initial project
    identification, scope and cost development, prioritization, and any
    project steps up to design; (2) design, which includes developing the
    design criteria package, obtaining architectural and engineering services,
    and preparing, reviewing and approving the final design; and (3)
    construction, which includes bid packages, a request for technical
    proposals, procurement of a construction contract, and contract
    administration and management procedures.

    The Office of Facilities Reliability provides strategic planning and
    oversight for maintenance, manages the Reliability-Centered Maintenance
    program,23 develops tasks and processes and then monitors work efforts,
    collects and analyzes data and metrics on the maintenance program,
    purchases utilities, manages agencywide service contracts, operates
    building automation services, and repairs large equipment in central
    shops. The office uses both in-house and contractor personnel to
    accomplish its objectives. When a minor repair is too large for Facilities
    Management, Facilities Reliability uses its staff or contracts out the
    work. About 15 percent of minor repairs are performed in-house, and about
    85 percent are contracted out. Working with Facilities Management and
    others, Facilities Reliability is responsible for prioritizing minor
    repair projects. When we concluded our review in April 2005, the offices
    of Facilities Management and Facilities Reliability were being
    consolidated into one office that will be responsible for all maintenance
    projects.24

    Smithsonian Has Adopted Industry Best Practices to Improve Its Management
    of Facilities Projects

    In reorganizing its facilities management, the Smithsonian is
    incorporating recognized industry best practices so that its resources
    would go as far as possible toward addressing its rapidly growing
    revitalization, new construction, and maintenance workload.

    For example, OFEO's framework for project management is considered a best
    practice, according to an independent review of an OFEO project by a
    contactor working for the Smithsonian Inspector General. OFEO also has
    been developing several handbooks to establish procedures and provide
    guidance on various aspects of facilities management. Its Facilities
    Project Management Handbook specifically addresses the Construction
    Industry Institute's (CII) practices of benchmarking and metrics,
    partnering, and

    23Reliability-centered maintenance is a maintenance strategy that
    logically incorporates the optimum mix of reactive, preventive, predictive
    testing and inspection, and proactive maintenance practices.

    24The merger is taking place now but will not be reflected in the budget
    until fiscal year 2006.

    preproject planning.25 OFEO has begun to implement these practices by, for
    example, establishing and tracking metrics, such as holding contract
    schedule growth to 10 percent or less and contract cost growth to 2
    percent or less. Both Facilities Management and Facilities Reliability
    periodically survey their internal customers to determine their level of
    satisfaction with the services provided to them. Furthermore, OFEO has
    adopted CII's Pre-Project Planning Handbook and uses CII's Project
    Definition Rating Index26 to evaluate the progress of projects at various
    stages-both tools recommended by CII to support the best practice of
    preproject planning. OFEO has also just begun to use CII's Estimate Score
    Program,27 a tool designed to enhance the accuracy of early estimates.
    CII's best practices form the core of the practices taught to OFEO staff,
    and according to OFEO officials, these practices are routinely used in
    various phases of projects. In addition, staff participate in CII
    committees and teams, including those that develop best practices and
    participate in Federal Facilities Council committees.28

    The Smithsonian has also adopted leading practices in capital decision
    making, such as identifying its inventory of assets, determining their
    condition and the gap between current and needed capabilities, and ranking
    and selecting projects according to their priority, type of work, and

    25The Construction Industry Institute is a research organization composed
    of construction contractors and owners seeking to improve the construction
    and capital investment process. The institute has identified 14 best
    practices, 8 of which-alignment, benchmarking and metrics, change
    management, disputes prevention and resolution, implementation of
    products, partnering, preproject planning, and team building-are aimed at
    owners such as the Smithsonian and 6 of which are aimed principally at
    contractors and manufacturers.

    26This is a checklist of 64 scope definition elements in a 1,000-point
    scoring system; each element is weighted on the basis of its relative
    importance to other elements. The overall rating determines whether the
    project should proceed through the budget cycle, allowing the Smithsonian
    to make better investment decisions.

    27This is a tool for measuring how well an estimate has been prepared for
    a particular project. It gives a score based on rating each of 45 elements
    that can have a significant impact on an estimate. It provides a reality
    check on the estimate for better decision making.

    28The Federal Facilities Council's purpose is to promote continuing
    cooperation among sponsoring federal agencies, and among the agencies and
    other elements of the building community in order to advance building
    science and technology-particularly with regard to the design,
    construction, acquisition, evaluation, and operation of federal
    facilities. The Smithsonian Institution is a sponsoring entity of the
    Federal Facilities Council.

    fiscal year.29 (See app. IV for more detail on how the Smithsonian is
    implementing these practices.) Other industry practices that OFEO has
    adopted include reliability-centered maintenance, which covers predictive
    testing and inspection, and preventive maintenance.

    Smithsonian Has Established a Prioritization Process for Allocating
    Limited Funds to Revitalization, Construction, and Maintenance Projects

    OFEO's Offices of Project Management and Facilities Reliability share
    responsibility for prioritizing projects-Project Management for
    revitalization and construction projects and Facilities Reliability for
    maintenance projects. Other organizations throughout the Smithsonian have
    input into these decisions. The Smithsonian's Capital Planning Board,30
    Secretary, and Board of Regents approve prioritizations of revitalization
    and construction projects in the institution's 5-year capital program, and
    the OFEO director approves prioritizations of maintenance projects.

    The Office of Project Management, working with the museums and other
    facility groups, develops an annual list of new and previously submitted
    projects to be prioritized for inclusion in the annual 5-year capital
    plan. Using OFEO's priority code assignment matrix, the office assigns
    each project one of four condition levels (catastrophic, critical,
    routine, and can defer) and one of five project types (shell/system
    failure, code compliance/security, nonroutine capital repairs,
    energy/operational efficiency, and alterations and modifications). This
    assignment determines the project's priority code, which may be from one
    to five. For example, a shell/system failure project assigned a
    catastrophic condition level would receive a top priority code of "one"
    for the budget year in which funding is sought. (See app. V for the
    priority code assignment matrix and definitions of its elements.). After
    Project Management completes the prioritized list, it sends the list to
    the Smithsonian under secretaries and directors for review and approval.
    Project Management then uses the approved list to update the 5-year
    capital plan and sends the updated plan to the Smithsonian's Capital
    Planning Board for review. The Capital Planning Board reviews the plan in
    the context of the Smithsonian's guidelines and needs. Only projects
    supported by this review and then by the Smithsonian Secretary's review

    29GAO/AIMD-99-32 (Washington, D.C.: December 1998.)

    30The Smithsonian's Capital Planning Board is made up of the chief
    financial officer (chairperson); deputy secretary and chief operating
    officer; under secretaries for Science, and Art; chief executive officer
    of Business Ventures; general counsel; director of Policy and Analysis;
    chief information officer; and OFEO director.

    are included in the updated 5-year capital plan, which accompanies the
    annual budget submission to the Office of Management and Budget. The Board
    of Regents approves the Smithsonian's annual budget submission, including
    the 5-year capital plan. According to Smithsonian officials, this process
    ensures that the institution's limited capital funding is allocated to the
    highest priority needs.

    The Office of Facilities Reliability, in conjunction with the museums and
    other facility groups, identifies maintenance projects, taking into
    account customer input; annual safety, health and environmental
    inspections; code and regulatory requirements; and facility assessments.
    Facilities Reliability then ranks these projects on a scale from 1 to 10.
    For example, a project to address an imminent facility failure that poses
    a potential safety, health, or environmental issue is ranked as a 1, the
    highest priority; a project to address a moderate disruption to a
    facility's functions is ranked as a 6, and a project that involves no
    expectation of failure or effect on safety or health is ranked as a 10,
    the lowest priority. Facilities Reliability then uses a funding matrix to
    determine which projects will be funded. Any projects that cannot be
    funded go into the office's inventory of projects. (See app. VI for the
    priority decision-making flowchart and maintenance ranking scale.)
    According to Facilities Reliability officials, if facilities-related
    emergencies occur during a year, funds obligated for other projects may
    have to be deobligated.

    Directors Generally Expressed Positive or Neutral Reactions to OFEO but
    Noted That Restructuring Has Been Hindered by Staffing and Budget
    Reductions

    The 16 Smithsonian directors of museums, galleries, research centers, the
    National Zoo, and a program office that we interviewed expressed a range
    of opinions about the reorganization's impact on facilities services. Five
    directors said that services had improved substantially and 9 others were
    generally positive or neutral about the reorganization. Two directors said
    that services had deteriorated since the reorganization. Various
    directors, including the 2 that had expressed negative views, pointed out
    that after OFEO was reorganized, the Smithsonian had a staff buyout31 that
    led to staffing and funding reductions in OFEO. In total, OFEO lost 109 of
    about 1,750 staff and the funding for their positions-59 in maintenance,
    39 in security, and 11 in other OFEO offices, according to a Smithsonian
    official. These reductions, together with the recent opening of the
    National

    31The buyout was available to all Smithsonian employees but was mostly
    taken by individuals already eligible for retirement or early retirement,
    according to a Smithsonian official.

    Museum of the American Indian, have negatively affected both maintenance
    and security services, according to various directors. Also, several
    directors, including some with positive reactions to OFEO, noted that
    communications from OFEO to its internal customers could be improved.

    Although implementation of the centralization effort is still a work in
    progress, senior OFEO officials believe the reorganization is progressing
    well. While full implementation has been hindered by both staffing
    shortages and budget constraints, OFEO has obtained permission to fill 19
    of these positions in crucial areas.32

    Estimated Costs of Facilities Projects Have Grown, Posing Serious Funding
    Challenge

    The Smithsonian currently estimates that it will need about $2.3 billion
    for fiscal years 2005 through 2013 for its planned revitalization,
    construction, and maintenance projects, but this estimate could change as
    information is updated and new facilities are opened or authorized. As of
    April 2005, of the 13 funded major revitalization and construction
    projects that are active or were completed in fiscal year 2004, most were
    on time and within budget. Given its level of annual operating and capital
    program revenues (about $904 million in fiscal year 2004, including about
    $184.4 million for the facilities) for all of its activities, it is
    unclear how the Smithsonian's planned facilities needs will be funded over
    the next 9 years.

    Current $2.3 Billion Estimate Reflects Updates but Could Change

    The Smithsonian's $2.3 billion estimate for the next 9 years includes
    about $1.43 billion for revitalization projects (including facilities
    planning and design), about $136.2 million for construction projects, and
    about $713.9 million for its maintenance program. Table 1 breaks down
    these estimates by project and year. Like all estimates, these are based
    on the information that is available at the time they are made, and they
    are subject to change as new information becomes available. Additionally,
    the estimates for revitalization and construction, which total almost
    $1.57 billion, are largely based on preliminary planning documents, such
    as master plans and facility assessments, (some still in progress), and on
    preliminary designs. According to Smithsonian documents, about 86 percent
    of the estimates for revitalization and construction projects, which
    account for about $1.27

    32The 19 positions include 1 doctor for the employee health clinic, 1 real
    estate specialist, and 17 operation and maintenance positions.

    billion-or nearly 81 percent-of the $1.57 billion total, are
    "order-ofmagnitude" estimates. Such estimates have a range of accuracy of
    plus or minus 30 to 50 percent. Thus, the $1.57 billion estimate for
    revitalization and construction projects could fall as low as about $875
    million or rise as high as about $2.3 billion.33 The cost estimates for
    maintenance projects are based on facility assessments, guidance issued by
    the National Research Council and the Federal Facilities Council, and a
    formula Facility Reliability has developed for estimating maintenance
    costs.

    Table 1: Appropriated and Estimated Costs of Smithsonian Capital and Maintenance
                            Programs, Fiscal Years 2005-2013

                                  Dollars in millions

    Appropriated funds Estimated costs for fiscal year(s)a Total

    Prior fundingb 2005 2006 2007 2008 2009 2010 2011 - 2013 2005 -2013

                                    CAPITAL PROJECTS

                                  Major revitalization

    Arts and Industries
             Building       $13.2 $23.4 $5.8 $11.3 $57.0 $61.0 $64.0       $222.5
          Freer Gallery                                         1.0  $10.0
         Hirshhorn Museum                                 2.0        20.0
          Museum Support                       1.0       10.0        24.0
              Center
         National Air and
              Space
              Museum                                                 59.0
        National Museum of
         American History     4.8 10.0  18.4 13.1                    50.0
        National Museum of
         Natural History    101.4 10.0  15.8 33.2  34.0  32.0  33.0  125.5  283.5
    National Zoological  43.9  21.4  14.0 28.9  23.5  24.1  25.6  107.6  245.1
               Park
          Patent Office     121.0 44.4
             Building
            Quadrangle                                               60.0
         Renwick Gallery                                        4.0  25.0    29.0
           Smithsonian
           Institution
          Building (the       1.0                                    87.0    87.0
            "Castle")

    Silver Hill/Suitland
    Facility 23.0 23.0

    33This range is calculated on a weighted average based on the four types
    of estimates (1) order of magnitude, (2) factored, (3) control and (4)
    detailed/definitive. See the paragraph following table 2 for a discussion
    of this estimating process.

    (Continued From Previous Page)

    Dollars in millions

    Appropriated funds Estimated costs for fiscal year(s)a Total

    Prior fundingb 2005 2006 2007 2008 2009 2010 2011 - 2013 2005 -2013

                                    CAPITAL PROJECTS

                                  Major revitalization

    Smithsonian Tropical
        Research Institute                    3.2   6.0  1.2   1.8   1.8
    Other revitalization 63.2  6.0  15.0 37.0  23.5  15.1  16.1  51.7    164.4
               c,d
    Facilities Planning
               and
             Designe              3.0   4.0   7.8   6.0  4.6   4.5   8.9
             Subtotal            118.2 73.0 135.5 150.0 150.0 150.0 653.5
          revitalization                                                  1,430.2

    Construction

          Museum Support Center
                  Pod 5                12.3        6.9        9.0        14.5
           SAO -VERITAS Control
            Building (Arizona)                     1.0

    National Museum of
    African American History
    and Culture (planning
    and design) 2.0

        Antiterrorism             8.9   15.6   14.2  15.3   23.8   25.0     102.8
         protectiond
           Subtotal        7.9   17.9   32.1   14.2  15.3   23.8   25.0     136.2
         construction
    Subtotal capital $126.1  $90.9 $167.6 $164.2 $165.3 $173.8 $678.5 $1,566.4
          projectsf
    MINOR REPAIR AND
         MAINTENANCE
          PROJECTSg       38.2   45.7   90.0   90.0  90.0   90.0  270.0     713.9
            Total       $164.3 $136.6 $257.6 $254.2 $255.3 $263.8 $948.5 $2,280.3

    Source: Smithsonian Institution.

    aThese estimates are in current 2004 dollars.

    bThese amounts are in year-appropriated dollars.

    cIncludes funding for 95 other revitalization projects. Projects in this
    category are smaller in scale than major projects, usually involve systems
    or pieces of equipment for a single building, and typically cost between
    $100,000 and $5 million.

    dThe funding for two categories-other revitalization projects and
    antiterrorism protection-is planned for projects at multiple Smithsonian
    sites.

    eIncludes cost estimates for the design of other revitalization projects
    and master planning.

    fIncludes funding for major revitalization, other revitalization, facility
    planning and design projects, and construction.

    gRepresents total funding for maintenance program, including staff costs,
    minor repair and maintenance projects, and other contracts, supplies,
    materials and equipment. For fiscal year 2005, this is the amount
    appropriated for the program, according to the Smithsonian. For fiscal
    year 2006, this is the amount in the Smithsonian's fiscal year budget
    submitted to Congress, according to the Smithsonian.

    The revitalization and new construction costs presented in table 1 are
    driven, in part, by the need to modernize or add systems-fire detection
    and alarm; security; electrical; heating, ventilation, and
    air-conditioning (including environmental ventilation) systems, and
    elevators and escalators-and to comply with newer code requirements, such
    as those for air pressurization to keep stairwells clear of smoke34 and
    handicapped accessibility to buildings and restrooms. Figures 12 through
    15 show revitalization projects that are included in the Smithsonian's
    estimate of $1.43 billion. Figure 16 illustrates new construction planned
    to address the safety problems with alcohol storage depicted in figures 9
    and 10 that are included in the Smithsonian's estimate of $136.2.

    34The purpose of stair pressurization is to inject fresh air into the
    stairwells during a fire scenario and provide a positive pressure
    differential in relation to adjoining spaces. In other words, the positive
    pressure created will prevent smoke from entering the stairwell as people
    enter it.

    Source: Smithsonian Institution.

                            Source: Smithsonian Institution.

                            Source: Smithsonian Institution.

    Source: Smithsonian Institution.

    Smithsonian Has Updated NAPA's Estimate and Implemented Other
    Recommendations to Improve Cost Estimation

    Source: Smithsonian Institution.

    The Smithsonian's current $2.3 billion estimate exceeds NAPA's $1.2
    billion estimate because it reflects more recent and comprehensive
    assessments of the Smithsonian's revitalization needs, covers new
    construction (including about $103 million to address security
    requirements),35 and incorporates more complete information about the
    maintenance program. After NAPA issued its July 2001 report, the
    Smithsonian implemented NAPA's recommendations that it revalidate its
    revitalization requirements and separate its maintenance budget from its
    revitalization budget. In September 2001, the Smithsonian issued a report
    outlining its revitalization objectives,36 and it has since been updating
    facility assessments and completing master plans to identify further
    revitalization costs. It has also taken other steps to improve its cost
    estimation, including establishing a

    35NAPA's estimate did not cover new construction because the Congress did
    not ask NAPA to review the Smithsonian's construction program.

    36Museums and Facilities: Critical Assessment and Improvement Objectives,
    September 2001.

    cost-engineering unit and attempting to implement a NAPA recommendation
    that calls for linking requests for construction funding to progress in
    completing design drawings. Table 2 provides the Smithsonian's January
    2005 cost estimates for major revitalization projects, NAPA's July 2001
    estimates, and summaries of the reasons for differences between the
    estimates. Further discussion of the Smithsonian's cost estimation methods
    follows the table.

     Table 2: Estimated Costs for Major Revitalization Projects as Reported by NAPA
                      in 2001 and Identified by the Smithsonian in

                                  Dollars in millions

    2001 2005 Smithsonian NAPA Smithsonian facilities estimate estimate
    Difference Reasons for difference

        Arts and  $105.0 $235.7  $130.7 Continuing deterioration, particularly of
                                                 the roof, prompted a decision to
    Industries        ($36.6               close the building and move tenants
                                               instead of allowing them to occupy
        Building         funded)        the building during a phased renovation.
                                        Of the $131 million difference,
                                        $34 million is for permanently relocating
                                        the staff and $10 million is for
                                         replacing the roof-originally a separate
                                                 project, but now included in the
                                        overall renovation. Design development
                                        has revealed more substantial
                                           systems replacement and structural
                                            reinforcement needs; substantial
                                           work is also needed to restore the
                                             building to its original state.

    Freer Gallery $3.5  $11.0  $7.5   Further investigation has revealed needs
                                                   for modifying the courtyard to
                                       improve accessibility, modifying the fire
                                               protection systems, adding
                                        shade structures for the skylights, and
                                            installing new gallery lighting.
         Hirshhorn   $11.0 $22.0 $11.0 Further investigation has revealed the
                                       need for additional work on the
          Museum                       building envelope to stop water intrusion.

           Museum     $16.0 $35.0 $19.0 Further investigation has revealed the
                                        need for additional work on the
    Support Center                      electrical system and one emergency
                                               generator. The revalidated
                                         estimate also includes funding for a new
                                                   requirement to renovate Pod 3,
                                         once alcohol-preserved collections are
                                                 relocated to Pod 5. The
                                         renovation will include the construction
                                               of two floors to replace the steel
                                                  system now in place.

    National Air and $45.0 $59.0 $14.0     Design development has revealed the
                                                  need for more extensive systems
         Space Museum                     replacement. The project has also been
                                                 postponed several years,
                                          adding a minimum of $5 million in
                                          escalation cost to the NAPA report's
                                                         estimate.

    National  $35.0     $96.3     $61.3 Further investigation has revealed the
                                                  need for more extensive systems
    Museum of       ($4.8 funded)        replacement. The fire-detection and
                                                alarm system, elevators and
    American                             escalators, and security system need
                                              upgrading. Stair pressurization
        History                             and restrooms must also comply with
                                                  newer code requirements.
                                             Extensive renovation of the public
                                            areas, not included in the original
                                           project, is also needed to accommodate
                                                   an exhibit replacement program
                                             funded by the Behring Foundation.

    (Continued From Previous Page)

    Dollars in millions

    2001 2005 Smithsonian NAPA Smithsonian facilities estimate estimate
    Difference Reasons for difference

          National     $200.0 $387.9  $187.9 The NAPA report's estimate was based
                                                 on a 1980's estimate, which
          Museum of           ($111.4            projected a 10-year construction
                                             period. Lack of funding has extended
    Natural History        funded)         the project, causing its costs to
                                             escalate. Furthermore, the project's
                                               scope has changed. The plans now
                                                call for a more comprehensive
                                              renovation of the entire building,
                                             including modifying the interior to
                                             provide refurbished space for museum
                                                 activities. New requirements for
                                             environmental ventilation,
                                             additional fire protection, and
                                             lighting have
                                                 also increased the estimate.

    National $171.0 $289.0

    Zoological Park	($65.3 funded)

    $118.0	Investigation of building and utility distribution systems was just
    beginning in 2001, and little was known about the magnitude of the
    deficiencies. A 2003 study by a contractor updated the cost to restore the
    National Zoo to at least $250 million over the next 10 years. Also,
    systems have continued to deteriorate, and the estimated costs to replace
    them have increased. The current estimate will change further as specific
    studies of individual buildings progress over the next 5 years. Finally, a
    catastrophic fire in the wetlands exhibit that occurred after the
    contractor's 2003 study has added about $10 million in estimated
    restoration costs.

        Patent Office  $151.0    $166.0     $14.4 A design development and scope
                                                  change to convert about 60,000
          Building               ($165.7           square feet of administrative
                                                  space to public space required
                                                     modifications to building
                                 funded)             systems and architectural
                                                             finishes.
                                                   The original estimate covered
                       $44.0      $60.0     $16.0     replacement of the roof
         Quadrangle                                       structure, but
                                                    since the project has been
                                                    delayed, replacement of the
                                                            mechanical
                                                   systems has been added to the
                                                             project.
                                                  Costs have escalated with
                       $23.0      $29.0      $6.0 delays in starting the project
    Renwick Gallery                            due to lack of
                                                             funding.
                                                          The master plan for the
         Smithsonian   $57.0      $88.0     $31.0      complete renovation of the
                                                            "Castle" building and
                                                     systems and finishes has
         Institution          ($1.0 funded)        progressed to the 65-percent
                                                           level, giving
        Building (the                             better cost data than when the
                                                       NAPA report was done.
          "Castle")
                                                    New requirements have been
           Silver       New       $23.0     $23.0    identified since the NAPA
                                                              report.
        Hill/Suitland
         Facilities

    Smithsonian New $14.0 $14.0    New requirements have been identified since
                                                                 the NAPA report.
        Tropical
        Research
        Institute

    Source: Smithsonian Institution.

    To estimate the costs of its revitalization projects and construction, the
    Office of Project Management may use facility assessments, fire and safety
    inspections, customer input, contracted cost estimates of projects,
    feasibility studies, design documents at various stages (preliminary, 35
    percent, or 100 percent), and the input of the various experts in OFEO,

    according to OFEO officials. The developmental phase of a project
    determines the types of information that are available for use in
    estimating its cost. Depending on the types of information used, Project
    Management can assign a range of accuracy to an estimate, applying a
    four-class system that the Construction Industry Institute (CII) uses to
    categorize cost estimates.37 Estimates in each class-order of magnitude,
    factored, control, and detailed/definitive-are based on different,
    increasingly reliable documents and have increasingly narrow ranges of
    accuracy. Whereas an order-of-magnitude estimate could be based on a
    feasibility study alone and would have an range of accuracy of plus or
    minus 30 to 50 percent, a detailed/definitive estimate could be based on
    detailed drawings and could have a narrower accuracy range of plus or
    minus less than 10 percent. As discussed, the majority of the
    Smithsonian's estimates for revitalization and construction projects are
    order-of-magnitude estimates.

    To provide better estimates of its future needs, OFEO has established a
    Cost Engineering Division, which recently has been fully staffed. This
    division is to provide revitalization and construction cost estimates for
    projects at the project development stage.38 The division is also to
    revise construction cost estimates for each project throughout its life
    cycle to reflect changes and current market conditions. The recently hired
    associate division director has developed a draft Cost Management Guide
    that is currently being reviewed. According to the associate division
    director, the guide is to standardize the estimating process throughout
    OFEO, including the process for developing cost estimates for the
    Smithsonian's 5-year capital plan, and to provide an audit trail for
    estimates. He is also introducing CII's Estimate Score Program to enhance
    the accuracy of early estimates. He expects his division to have a major
    role in developing all future project estimates.

    37The CII defines four classes of cost estimates: (1) "order of
    magnitude," which is based on feasibility cost/capacity curves and has an
    accuracy range of plus or minus 30 to 50 percent; (2) "factored," which
    applies major equipment factors for costs and has an accuracy range of
    plus or minus 25 to 30 percent; (3) "control," which is based on
    quantities from mechanical, electrical, and civil engineers' drawings and
    has an accuracy range of plus or minus 10 to 15 percent; and (4)
    "detailed/definitive," which is based on detailed drawings and has an
    accuracy range of plus or minus less than 10 percent.

    38Planning and project development are the initial stage and covers
    initial project identification, scope and cost development, prioritization
    and any project steps up to design.

    NAPA recommended that, to improve its cost estimates, the Smithsonian not
    request construction funding from the Congress until it has completed
    partial (35 percent) design drawings for its projects. According to the
    OFEO director, OFEO is having difficulty meeting this recommendation
    because of chronic underfunding in the design category. OFEO currently can
    barely keep up with the requirements for complete (100 percent) design
    drawings for the next year's capital program, the director said, and
    little funding is available to meet the longer-term requirements for
    partial (to 35 percent) designs. Ideally, the 35-percent design drawings
    should be complete before OFEO develops the request for construction
    funding to the Office of Management and Budget. The director believes that
    if OFEO had a larger pool of design funds, he could provide the Congress
    with more accurate information for making funding decisions and develop
    projects in a timely manner.

    Smithsonian Now Tracks As NAPA recommended, the Smithsonian separated
    maintenance costs

    Maintenance Project Costs from revitalization and construction costs and
    now tracks and manages

    Separately from Revitalization them through separate offices. Using
    facility assessments, the Office of

    and Construction Project Costs	Facilities Reliability determined an
    inventory of about $329 million in deferred maintenance projects as of
    October 2004. Figure 17 shows the breakdown of the inventory by type and
    total dollar value.

    Figure 17: Estimated Maintenance Project Costs, by Type (dollars in
    millions)

    $11.6

    Electrical/utility systems Electrical distribution ($5.7) Utility systems
    ($5.9)

    $14.9

    HAZMAT abatement Asbestos abatement ($14.9)

    Life safety Fire electrical ($17.4) Fire mechanical ($7)

    Mechanical systems HVAC ($22.8) Plumbing ($14.0)

    Site construction repairs Renovation--minor ($25.6) Site repairs ($71.1)

    Structural/architectural Architectural ($5.8) Accessibility ($1.9)
    Conveyances ($14.9) Exterior facade ($9.3) Interior finishes ($33.6)
    Roofing ($20.0) Structural ($59.5) Source: Smithsonian Institution.

    According to Facilities Reliability officials, the yearly cost estimates
    for maintenance projects in table 1 provide for maintaining facilities at
    their current levels in fiscal years 2005 and 2006 as well as reducing the
    inventory of deferred maintenance in fiscal years 2007 through 2013 if
    funded at these levels. To calculate these estimates, Facilities
    Reliability first (1) considers the building's condition, as measured
    against a facility condition index that ranges from 1 (the worst
    condition) to 5 (the best condition); (2) determines an allowance (between
    2 percent and 6 percent, depending on the building's condition) of the
    building's current replacement value; and (3) applies a formula that
    includes the building's

    total square footage.39 Facilities Reliability then adjusts the results of
    its calculations according to the type of maintenance work and the input
    of staff. Finally, Facilities Reliability combines the estimated
    maintenance costs for all the buildings to determine the estimated
    maintenance needs for a fiscal year. The deferred maintenance inventory
    rises and falls as maintenance projects are completed, new projects are
    identified, and the estimated replacement value of the facility inventory
    changes. Underfunding maintenance needs in a given year increases the
    deferred maintenance inventory.

    Cost Estimates Could Change	For a variety of reasons, the Smithsonian's
    cost estimates for revitalization, construction, and maintenance could
    change. First, as noted, the estimates for about 86 percent of the
    revitalization and construction projects are order-of-magnitude estimates
    with an accuracy range of plus or minus 30 to 50 percent. An OFEO official
    pointed out that the costs are not likely to fall unless the projects are
    reduced in scope. Additionally, the estimates could increase further
    because assessments for the National Museum of Natural History, the
    National Zoo, and the Smithsonian Astrophysical Observatory are still in
    progress and could identify new needs. Moreover, as other facilities
    continue to deteriorate, additional revitalization needs could arise.

    Second, the annual costs for maintenance are expected to increase due to
    the addition of the National Museum of the American Indian and the Steven
    F. Udvar-Hazy Center to the Smithsonian's building inventory in fiscal
    year 2004, and with the planned completion of the Patent Office's
    revitalization in 2006. According to the National Research Council's
    standards for maintenance, the Smithsonian's maintenance budget should
    increase by at

    39According to the National Research Council, the appropriate level of
    spending for maintenance is 2 to 4 percent of a facility's current
    replacement value. This range is most valid for estimates developed for a
    large inventory of buildings for periods of several years, such as the
    Smithsonian has done. The range covers current requirements only and does
    not provide for work that was deferred in the past. The Federal Facilities
    Council suggests that one way to estimate the costs of reducing the
    inventory of deferred maintenance is to increase the range by some
    arbitrary percentage. The Smithsonian has increased its range by 2 percent
    to cover the deferred maintenance. As a result, the range now extends to 6
    percent. For example, a condition index of "1" equates to 6 percent of a
    building's current replacement value, and a condition index of "5" equates
    to 2 percent of a building's current replacement value. Also, if the
    current replacement value per square foot exceeds $300, in order to be
    conservative, Facilities Reliability applies only one-fifth of the
    percentage allowance for replacement value of $300 per square foot. For
    example, if the percentage allowance is 5 percent, Facilities Reliability
    uses only 1 percent of the allowance for amounts over $300 a square foot.

    least 2 percent of these buildings' current replacement value to cover
    their maintenance. However, a Smithsonian official told us that the
    Smithsonian received an increase in maintenance funding for fiscal year
    2005 to provide for the National Museum of the American Indian of only
    $700,000 of the $2.5 million needed. Unfunded maintenance costs increase
    the Smithsonian's deferred maintenance inventory.

    Third, the estimated costs for both construction and maintenance do not
    include the National Museum of African American History and Culture, which
    Congress authorized in 2003. This new museum is in its planning stage, and
    the timing and cost of its construction are still unknown, though it is
    likely to be several hundreds of millions of dollars. In addition, some
    members of Congress have expressed interest in developing a National
    Museum of the American Latino Community.

    Most Funded Major Revitalization and Construction Projects Are on Time and
    Within Budget

    The Smithsonian has 13 funded major revitalization and construction
    projects that are currently active or were completed in fiscal year 2004.
    As table 3 indicates, 8 of the 13 projects were within budget and on time
    (or were completed on time) as of April 2005.40 Of the remaining 5
    projects, 1 was both over budget and behind schedule (Museum Support
    Center, Pod 5); 2 had increases in their budgets, but were on schedule
    (Ocean Exhibit and Patent Office Building, Phase II); 2 were behind
    schedule, but within their budgets (Patent Office Building Phase I and
    Mall-wide Permanent Security Barriers). For each major project, table 3
    identifies the budget, current working estimate, schedule, and comments.

    40We counted two of the projects, Asia Trail I and Asia Trail II, as being
    within budget because their total budget did not change but one budget
    increased and one budget decreased because part of the Asia Trail II
    project was moved to Asia Trail I.

      Table 3: Status of Fiscal Year 2004 Funded or Completed Major Projects as of
                                       April 2005

    Dollars in millions

                                     Current
                                     working
                         Project    estimate
    Major project      budget      (CWE)     Schedule      Comments

                                Revitalization projects

    Arts and Industries $44 $34 On time  o  This project covers closure, staff
                                                     relocation and chilled water
            Building                             connection to GSA system.
                                              o  Two leases for space signed.
                                           o  Relocated Discovery Theater opened
                                                          on time.
                                           o  North hall tarp removed, structural
                                                     investigation and
                                            implementation of temporary repairs
                                                         completed.
                                                   o  Relocated Smithsonian Early
                                                      Enrichment Center opened on
                                                         schedule.
                                           o  Federally funded through
                                           Smithsonian's capital program.

    National Museum of  o  This public space renewal project is being done in
    four phases, American History or "packages"; only the first two phases are
    supported by (NMAH) federal appropriations.

    Package I (supports 4.5 4.47 On time  o  Construction is complete and the
    exhibit opened on time. The
    Price of Freedom cost indicated reflects only the federal appropriation
    Exhibit) component.

    Package II (supports 80.0 80.0 65 percent Star Spangled (45.5 capital
    (45.37 design Banner Exhibit) funds) capital delivered

    funds)3/28/05, three days ahead of schedule.

    o  Design development under SD-410 review (Smithsonian internal review).

    o  Notice to proceed given to contractor for value engineering on parts of
    the project.

    o  Scope of work for construction documents (up to 65 percent) under
    development.

    o  Construction documents (up to 65 percent) to be funded from federal
    funds in hand.

    o  $45.5 million is to be federally funded through Smithsonian's capital
    program. The remainder is to be funded through the Smithsonian trust
    funds.

    National Museum of Natural History (NMNH)

    Ocean Exhibit 34.11 40.47 (16.0 capital (18.27 funds) capital funds)

    On time  o  Renovation costs have grown by $2.2 million because HVAC
    requirements have increased. The museum is using funds from other projects
    to cover the additional costs.

    o  Exhibit costs have grown by $4.2 million to include specific projects
    of interest to the donor. The donor may cover the additional costs; if
    not, the additional exhibits will not be included.

    o  $18.27 million is to be federally funded through Smithsonian's capital
    program. The remainder is to be funded through the Smithsonian trust
    funds.

    (Continued From Previous Page)

    Dollars in millions

                                     Current
                                     working
                         Project    estimate
    Major project      budget      (CWE)     Schedule      Comments

                                National Zoological Park

                                                   o  Asia Trail II otter exhibit
    Asia Trail I  48.44      50.44     On time     scope added to Asia Trail I
                                                                      project for
                                                       construction. Asia Trail I
                    (41.59  (43.6 capital           construction budget increased
                                                                         by otter
                                                          construction budget ($2
                    capital    funds)              million); total project budget
                                                                        increased
                    funds)                         from $48.44 million to $50.44
                                                             million.
                                                  o  $43.6 million is to be
                                                  federally funded through
                                                  Smithsonian's
                                                  capital program. The remainder
                                                  is to be funded through the
                                                     Smithsonian trust funds.

    Asia Trail                              o  Otter exhibit moved to Asia
           II      62.71   60.71  Design is on Trail I project. Asia Trail II
                                               budget
                  (37.85  (35.85      time       reduced by otter construction
                                                    budget of $2.0 million.
                                                   o  Friends of the National Zoo
                  capital capital                (FONZ) is evaluating feasibility
                                                                               of
                  funds)  funds)               raising $30 million matching funds
                                                     for elephant facility.
                                               o  Architect/engineer responding
                                               to 35 percent design review.
                                                       o  $35.85 million is to be
                                                         federally funded through
                                                                    Smithsonian's
                                               capital program. The remainder is
                                               to be funded through the
                                                    Smithsonian trust funds.

    Kids Farm 5.193 5.193 Opened on  o  $4.989 million federally funded
    through Smithsonian's capital time program. $204,000 in trust funds of
    which $82,000 was funded by FONZ.

                                 Patent Office Building

    Phase I 166.0 166.099 days behind schedule due to unexpected construction
    problems found during the renovation.

    o  CWE within $166 million after executing scope reductions (security,
    exterior signage, furniture, elevator maintenance, and lighting) and
    transferring approved costs to trust fund budgets (wireless, build-out,
    collection move, Lunder Visible Conservation Center equipment).

    o  Substantial completion projected to April 2006 (99-day delay) for a
    limited number of specific areas. Working to isolate delays and minimize
    overall impact to exhibit effort.

    o  National Capital Planning Commission Submission anticipated on 4/15/05
    for hearing on 5/5/05.

    o  Federally funded through Smithsonian's capital program.

    Phase II 50.0 51.7 On time  o  Funding is from trust funds.

    o  Working on strategy that maintains $44.3 million budget and completion
    date 1/31/07. Smithsonian decision pending next contract funding
    increment.

    o  Increased cost reflects potential desired enhancements.

    (Continued From Previous Page)

    Dollars in millions

                                     Current
                                     working
                         Project    estimate
    Major project      budget      (CWE)     Schedule      Comments

                                    New construction

                     Museum Support     30     42.7       Design is 4
                     Center, Pod 5                        months
                                                          behind
                                                             schedule

    o  The schedule and funding have been adjusted to address this design
    delay.

    o  The Smithsonian is including an option for a laboratory in the contract
    documents for Pod 5 for an estimated $9.8 million. This $9.8 million plus
    an increase in design cost of $400,000 accounts for $10.2 million between
    the budget and the current working estimate.

    o  Review of cost estimates resulted in a $2.5 million increase due to
    longer contract period and later separate contract awards.

    o  Federally funded through Smithsonian's capital program.

                                                        o  About $119 million was
    National Museum of 219.3 219.3   Opened on        federally funded through
                                                                    Smithsonian's
          the American                                   capital program. The
             Indian                   time, on Sept. remainder was funded through
                                                                 the
                                         22, 2004      Smithsonian trust funds.
           Steven F.      219.8 218.3                o  Does not include funding
           Udvar-Hazy                   Opened on    provided by Commonwealth of
             Center                      time, in         Virginia for site
                                                            improvements.
                                                     o  The $210.3 million was
                                         December    funded through the
                                                     Smithsonian trust
                                                     funds. About $8 million in
                                           2003      design funds was federally
                                                     funded
                                                        through Smithsonian's
                                                           capital program.

    Mall-wide Permanent Security Barriers

    0 33Phase 1 National Air and Space Museum construction contract awarded 2
    months behind schedule

    o  Smithsonian needs to resolve Mall-wide 35-percent design issues.

    o  Funding requested in fiscal year 2006 to design & construct barriers at
    NMNH.

    o  Funding projected in fiscal year 2007 to complete barriers at NMAH.

    o  Federally funded through Smithsonian's capital program.

    Smithsonian Institution  o  No major projects are planned until 2011 to
    2013.
    Building (the "Castle"),
    National Air and Space
    Museum, Freer Gallery,
    Hirshhorn Museum,
    Quadrangle, Renwick
    Gallery

    Source: Smithsonian Institution.

    o 	The current working estimate of the National Museum of Natural
    History's Ocean exhibit increased from about $34.1 million to $40.5
    million. This $6.4 million increase reflects higher costs for renovations
    ($2.2 million for heating, ventilation, and air-conditioning [HVAC] work
    required to support the planned exhibits' advanced technology and

    more interactive components) and $4.2 million for specific additional
    exhibits that the donor has suggested. The National Museum of Natural
    History is reprioritizing its capital projects to cover the higher HVAC
    costs. The donor will provide the $4.2 million in additional funds for the
    specific exhibits requested, or the additional exhibits will not be
    included in the project.

    o 	The current working estimate of Phase II of the Patent Office Building
    renovation was increased to reflect desired enhancements should additional
    trust fund monies become available. The current courtyard enclosure is
    within the original target.

    o 	The current working estimate of the Museum Support Center Pod 5 project
    increased from $30.0 million to $42.7 million. The additional costs
    include $9.8 million for a laboratory, $400,000 for further design work,
    and $2.5 million41 due to a longer contract period,42 delays in obtaining
    program funds,43 and later separate contract awards. The purpose of this
    Pod is to store collection specimens preserved in alcohol-filled
    containers in a code-compliant building. According to the project manager,
    the design costs were higher than expected because it is difficult to
    design a storage facility to contain such a large quantity of alcohol.

    Delays in the three projects that were behind schedule were due to
    unexpected construction problems during renovation (Patent Office
    Building, Phase I), a design problem (Museum Support Center, Pod 5), and
    the late award of a construction contract (Mall-wide Permanent Security
    Barriers). According to a Smithsonian official, they are trying to
    minimize the impact of the construction delay on the Patent Office
    Building so that the public spaces can be opened on time. The project
    manager for the Museum Support Center believes that they can make up the
    delay. The project manager for the Mall security barriers is still working
    to determine the potential effects of the delay.

    41This estimate was prepared by OFEO's cost-estimating section.

    42Contract period was extended from a planned period of 9 to 18 months to
    24 to 30 months.

    43Funding requests were moved from fiscal years 2005 and 2006 to fiscal
    years 2005, 2006, and 2007.

    In fiscal years 2002 and 2003, the Smithsonian's Office of Inspector
    General completed management reviews of three Smithsonian projects-the
    construction of National Museum of the American Indian, the Steven F.
    Udvar-Hazy Center, and the revitalization of the Patent Office Building.
    The reviews of the National Museum of the American Indian and of the
    Steven F. Udvar-Hazy Center showed that, overall, project management
    practices were effective and financial management controls were adequate
    to ensure compliance with contract terms.44 The third review, on the
    Patent Office Building, was performed by a contractor for the Office of
    Inspector General who found that adequate controls were in place to
    oversee the project's management and the existing cost-accounting system
    was effective in tracking the project's execution costs, which were
    managed by OFEO.45 While all three reports were generally positive, they
    included recommendations on how OFEO could improve its operations. OFEO
    has taken actions to adopt the recommendations.

    Funding Its Planned Revitalization, Construction, and Maintenance Remains
    a Key Challenge for the Smithsonian

    NAPA's report focused strongly on improvements to the Smithsonian's
    facilities management. But the report also drew attention to the need for
    a substantial and ongoing infusion of funds to deal with the deterioration
    of the physical plant. Funding the $2.3 billion in planned facilities
    programs is an imposing challenge for the Smithsonian, the Administration,
    the Congress, and private sector supporters of the institution.

    Funding for the Smithsonian's annual operations and capital programs comes
    from two general sources: its trust funds and federal appropriations.
    Trust funds are used to carry out innovative research, expand the national
    collections, fund new exhibits, and support outreach activities to
    communities. The Smithsonian has been successful in attracting substantial
    philanthropic contributions to its trust fund that have been critical to
    the development and construction of new facilities. For example, most of
    the Udvar-Hazy Center's $218 million construction cost and $100 million of
    the $219 million of the National Museum of the American Indian's
    construction cost were funded through the trust funds. Smithsonian

    44Smithsonian Institution Office of the Inspector General, Report on
    Project Management of the National Museum of the American Indian Mall
    Museum (Washington, D.C.: Sept. 30, 2002), and Report on Project
    Management of the Steven F. Udvar-Hazy Center (Washington, D.C.: July 31,
    2003).

    45Smithsonian Institution Office of the Inspector General, Project
    Management Review: Patent Office Building Renovation Project (Washington,
    D.C.; Mar. 31, 2003).

    officials noted, however, that it is difficult to attract donor support
    for general revitalization and maintenance projects. Therefore, in these
    types of efforts, federal appropriations have been important. According to
    the Smithsonian, Congress first began to provide the Smithsonian with
    annual federal funding in 1858 to cover the cost of caring for objects of
    art and natural history belonging to the United States. Today, federal
    appropriations are used to operate, maintain, and protect the
    Smithsonian's facilities; conserve the national collections; sustain basic
    research; educate the public; provide administrative and support services;
    and support revitalization and construction. (See app. I for additional
    details on the Smithsonian's trust funds and appropriations.)

    For fiscal year 2004, about 34 percent of Smithsonian's $904 million in
    revenues for operations and capital programs came from its trust fund
    assets, with the remainder coming from direct federal appropriations. Of
    this total amount, about $184.4 million was designated for facilities
    revitalization, construction and maintenance. While recognizing that
    future funding decisions could result in different levels of funding,
    annual revenues at the 2004 level would fall well short of the $2.3
    billion estimate for the revitalization, construction, and maintenance
    needs identified for the next 9 years. In our High Risk Series report on
    federal real property, we highlighted the importance of ensuring credible,
    long-term budget planning for sustaining and modernizing facilities.46
    Such planning involves key stakeholders in government-the property-holding
    agency, the Office of Management and Budget, and the Congress-in examining
    viable funding options. In the case of the Smithsonian, the importance of
    this approach is underlined by the trust-trustee relationship that defines
    the relationship between the institution and the federal government. We
    asked Smithsonian officials if a strategic approach had been developed for
    funding the planned facilities work. Officials told us that various
    funding approaches and options have been discussed by the staff, the Board
    of Regents, and with congressional leaders but said that no consensus for
    dealing with this issue has emerged.

    Conclusion	As an organization that relies heavily on federal support to
    maintain its facilities, the Smithsonian Institution is part of the
    general challenge facing the federal government in real property
    management. As we noted in our

    46High Risk Series: Federal Real Property, p. 46.

    2003 High Risk Series report on federal real property, the overall
    condition of the federal facilities portfolio is one of alarming
    deterioration, with the problem accelerating in recent years due to the
    age of the buildings. Greatly improved management processes and tens of
    billions of dollars will be needed to restore federal real property assets
    and make them fully functional. At stake with the Smithsonian are not just
    the buildings themselves, but the irreplaceable scientific and cultural
    assets that they contain.

    To address its own set of problems, the Smithsonian has taken major steps,
    in line with NAPA's 2001 recommendations, to reorganize its facilities
    management structure to achieve improved accountability and operational
    efficiency. OFEO is incorporating industry best practices for facilities
    management and has established processes for prioritizing work with the
    aim of leveraging its limited staffing and funding resources to the
    institution's best advantage. OFEO has also put processes in place to
    develop more accurate estimates of its facilities funding needs. The
    reorganization appears to be going in the right direction, though it is
    still in an early stage of implementation and its long-term effectiveness
    has yet to be determined. Full implementation of the restructuring effort
    has been hindered by staffing and funding reductions that have occurred
    throughout the Smithsonian due to budget constraints.

    Along with recommending management improvements, NAPA pointed to the need
    for a continuing and substantial infusion of funds for maintaining and
    improving existing and new facilities. The federal government has
    responded in recent years with increased levels of appropriations for the
    Smithsonian's facilities needs, and the Smithsonian itself has
    successfully raised its share of private sector funding for the
    construction of its two newest museums. Still, the estimated $2.3 billion
    in costs for facilities needs over the next 9 years is beyond the current
    level of the Smithsonian's annual operating revenues from its trust funds
    and federal appropriations. At present, it is unclear how, when, or to
    what extent the planned projects will be funded.

    Recommendation for 	Given the critical importance of correcting the
    deteriorating condition of the Smithsonian's facilities, we recommend that
    the Secretary of the

    Executive Action	Smithsonian Institution establish a process for exploring
    and analyzing, in a structured and reportable manner, various options for
    funding its facilities needs (including options that may require
    legislative authorization), together with the advantages and disadvantages
    of each.

    This process would culminate with a method and time frame for engaging the
    key stakeholders-the Smithsonian Board of Regents, the Administration, and
    the Congress-in the development and implementation of a strategic funding
    plan to address the revitalization, construction, and maintenance projects
    identified by the Smithsonian.

    Agency Comments	We provided a draft of this report to the Smithsonian for
    comment. In response, the Smithsonian provided us with both oral and
    written comments, indicating that it concurred with our findings. In oral
    comments, the Director of Government Relations stated that the Smithsonian
    agreed with our recommendation. The Smithsonian also offered some
    technical comments and updates that we incorporated where appropriate. A
    letter from the Secretary of the Smithsonian commenting on our report is
    included as appendix VIII.

    As agreed with your office, unless you publicly announce its contents
    earlier, we plan no further distribution of this report until 30 days
    after the date of this letter. At that time, we will send copies of this
    report to the appropriate congressional committees, the Secretary of the
    Smithsonian Institution, and the Director of the Office of Management and
    Budget. We will make copies available to others upon request. In addition,
    this report will be available at no cost on the GAO Web site at
    http://www.gao.gov. If you have any questions about this report, please
    contact me at (202) 5122834 or goldsteinm@gao.gov. Key contributors to
    this report are listed in appendix IX.

    Mark L. Goldstein Director, Physical Infrastructure Issues

    Appendix I

    Funding Sources and Statutes Related to the Smithsonian's Revitalization,
    Construction, and Minor Repair and Maintenance Programs

    The Smithsonian uses funding from a variety of public and private sources
    for revitalization, construction, and minor repair and maintenance
    (maintenance) of its facilities. Currently, maintenance is funded
    primarily through appropriations, according to a Smithsonian official. The
    Smithsonian's funding can be classified into two broad categories: trust
    funds and congressional appropriations.

    Trust Funds 	Unrestricted trust funds-These funds are not subject to any
    donorimposed or legal restrictions on the use of the monies. The Board of
    Regents may expend these funds in any manner they deem appropriate in
    promoting the Smithsonian's mission. The unrestricted trust fund includes
    income from investment earnings; income from Smithsonian Business
    Ventures, which includes revenue from the Smithsonian's magazines and
    other publications, museum stores, mail-order catalogs, concessions, IMAX
    theater, and licensing and media enterprises; and income from government
    grants and contracts. Unrestricted trust funds are often devoted to
    programs, collections, and general administration, but could be used for
    revitalization, construction, and minor repair and maintenance. Various
    government agencies and departments provide grants and contracts for
    projects that only the Smithsonian can conduct because of its expertise in
    a particular area of science, history, art, or education and because of
    its ability to respond quickly to certain needs. At the end of fiscal year
    2004, government grants and contracts accounted for about 12 percent of
    the Smithsonian's revenue. At the end of fiscal year 2004, the
    Smithsonian's unrestricted operating revenues totaled $399.4 million, of
    which $173.1 million was spent to operate the Smithsonian's businesses
    that generated $195.0 million in revenues, according to its audited
    financial statement.

    Temporarily restricted trust funds-These funds include donations, earnings
    on endowments, and private grants that are subject to donorimposed
    stipulations on how the money is spent. The types of restrictions imposed
    by donors include limitations on the use of funds for the construction or
    renovation of a specific museum or facility or support for a specific
    program or exhibit. For example, the construction of the Steven F.
    Udvar-Hazy Center was funded by numerous private contributions that were
    classified as temporarily restricted and could only be spent on
    construction of the Hazy Center. At the end of fiscal year 2004, the
    Smithsonian's temporarily restricted operating revenues totaled $83.9
    million, according to its audited financial statement.

                                       Appendix I
                      Funding Sources and Statutes Related to the
                      Smithsonian's Revitalization, Construction,
                       and Minor Repair and Maintenance Programs

    Permanently restricted trust funds-These funds include donations, earnings
    on endowments, and bequests that are subject to donor-imposed stipulations
    that the principal be maintained permanently. Donors of these funds permit
    the Smithsonian to use all or part of the income earned from these funds
    for either general or donor-specified purposes. James Smithson's original
    bequest is included within this category. At the end of fiscal year 2004,
    the Smithsonian's permanently restricted operating revenues totaled $0.5
    million, according to its audited financial statement.

                             Direct Federal Appropriations

    Regular congressional appropriations for the Smithsonian began in 1858,
    according to a Smithsonian official. In 1879, the Congress authorized and
    appropriated $250,000 for construction of a National Museum (now known as
    the Arts and Industries Building). Today, 20 U.S.C. S: 53(a) provides that
    appropriations are authorized for repairs and alterations of the
    Smithsonian's buildings and grounds. According to a Smithsonian official,
    this is the authority the Smithsonian uses to perform revitalizations and
    major repairs when there is no specific congressional authorization for a
    project. For fiscal year 2004, federal appropriations were $596.3 million,
    according to the audited financial statement.

    We were told by a Smithsonian official that major Smithsonian facilities
    (those that represent national landmarks or are otherwise significant)
    have all been legislatively authorized by the Congress. According to a
    Smithsonian official, it has built or replaced facilities without
    congressional authorization, but those projects did not exceed a $1
    million cost ceiling agreed to with congressional staff and primarily have
    consisted of administrative, utility, and laboratory facilities. Further,
    recent appropriation acts have required the Smithsonian to consult with
    the Appropriations Committees before planning or commencing any
    construction projects, according to the same official. While the Congress
    has authorized major new museums and facilities, the Congress has moved
    away from fully funding the construction of these facilities beginning in
    1982, when authorizing the construction of a building for the National
    Museum of African Art and a Center for Eastern Art. The Congress limited
    the federal funding to $36.5 million-just less than half of the estimated
    $75 million total cost of the project. The legislation directed that no
    appropriated funds be obligated or expended except for planning,
    administration, management expenses, and architectural or consulting
    services until the Smithsonian had sufficient private funding in hand
    which, when combined with federal funding, could complete the project.

                                       Appendix I
                      Funding Sources and Statutes Related to the
                      Smithsonian's Revitalization, Construction,
                       and Minor Repair and Maintenance Programs

    More recently, the Congress required that not more than two-thirds of the
    total cost of planning, designing, and constructing the National Museum of
    the American Indian come from federal appropriations. The Congress
    authorized the Udvar-Hazy Center and appropriated money for the design,
    but it did not allow any appropriations to be used for construction. The
    Smithsonian built the facility with private donations and a $78 million
    general obligation bond. In 2003, the Congress authorized the Smithsonian
    to plan, design, and construct a building for a National Museum of African
    American History and Culture. The authorization provided that half of the
    costs are to come from nonfederal sources.

    Currently, maintenance projects are funded primarily through
    appropriations, although the maintenance staff are funded by both
    appropriations and trust monies according to a Smithsonian official. A
    Smithsonian official also told us that the institution is moving toward
    trying to get private donors to allow part of their donations to be set
    aside for repair and maintenance of exhibits. Exhibits such as America on
    the Move and The Price of Freedom have planned maintenance budgets of
    about $1 million each, some of which has already been raised from the
    private sector. For The Star Spangled Banner, the Smithsonian is planning
    an endowment fund of $4 million for maintenance. One donor has agreed to
    let the Smithsonian use $1 million of his original gift for this exhibit
    to help fund the endowment.

    Selected Smithsonian Institution Legal Authorities Relating to
    Construction and Revitalization of Facilities

    Enabling Laws	Act of 18361 - Accepted James Smithson's bequest of his
    property to the United States for the purpose of founding in Washington,
    D.C., the Smithsonian Institution, an establishment for the increase and
    diffusion of knowledge among men. Among other things, the act required the
    Treasurer

    1An Act to Authorize and Enable the President to Assert and Prosecute with
    Effect, the Claim of the United States to the Legacy Bequeathed to Them by
    James Smithson, Late of London, Deceased, to Found at Washington, Under
    the Name of the Smithsonian Institution, an Establishment for the Increase
    and Diffusion of Knowledge Among Men.

                                       Appendix I
                      Funding Sources and Statutes Related to the
                      Smithsonian's Revitalization, Construction,
                       and Minor Repair and Maintenance Programs

    of the United States to account separately from all other accounts of his
    office all sums received by virtue of Smithson's bequest and for the funds
    to be spent in such manner as the Congress later directed.

    Act of 18462 - Established the Smithsonian Institution in its present form
    and provided for the administration of the Smithsonian Institution trust
    by a Board of Regents. The act appropriated from federal funds an amount
    from the interest on Smithson's bequest for the erection of suitable
    buildings and other expenses of the institution. The act stated that all
    appropriations and expenditures that would be made for the purpose of the
    institution would be from the interest accrued and not from the principal
    of the fund. The act authorized the Board of Regents to select a suitable
    site for a building and contract for the construction of a suitable
    building necessary for the institution. The act authorized the Secretary
    of the Board of Regents to take charge of the building and property of the
    institution. The act also reiterated that all money recovered by, or
    accruing to the institution, would be paid into the United States Treasury
    and separately accounted for as provided by the 1836 act.3

    Current Statues	20 U.S.C. S: 41 - Establishes the Smithsonian Institution
    for the increase and diffusion of knowledge among men, with the powers,
    limitations, and restrictions contained in the act.

    20 U.S.C. S: 42 - Establishes the members of the Board of Regents.

    20 U.S.C. S: 46 - Provides for the Secretary of the Board of Regents to
    take charge of the buildings and property of the Institution.

    20 U.S.C. S: 53 -Provides that all laws relating to the protection of
    public property in the District of Columbia shall apply to the lands,
    buildings, and other property of the Smithsonian Institution. Also
    provides that all money recovered by or accruing to the Smithsonian
    Institution shall be paid into the Treasury of the United States, to the
    credit of the Smithsonian bequest, and separately accounted for.

    2An Act to Establish the Smithsonian Institution for the Increase and
    Diffusion of Knowledge Among Men.

    3The permanent provisions of the Act of 1846 were reenacted in the Revised
    Statutes of the United States in Force on the First Day of December, One
    Thousand Eight Hundred and Seventy-Three (1875) as S:S: 5579-5594. Current
    statutes relating to the Smithsonian Institution are located in 20 U.S.C.
    S:S: 41-70.

                                       Appendix I
                      Funding Sources and Statutes Related to the
                      Smithsonian's Revitalization, Construction,
                       and Minor Repair and Maintenance Programs

    20 U.S.C. S: 53a - Provides that appropriations are authorized for repairs
    and alterations of buildings and grounds occupied by the Smithsonian
    Institution in the District of Columbia and elsewhere.

    20 U.S.C. S: 54 - Provides that interest is appropriated for perpetual
    maintenance and support of the institution. Also provides that all
    expenditures and appropriations made from the Smithsonian Institution
    treasury account for the purposes of the institution are to be made from
    the interest and not the principal in the account.

    20 U.S.C. S: 55 - Provides that the Secretary is authorized to receive and
    deposit in the Treasury on the same terms as the original bequest of James
    Smithson's, such sums that the Regents see fit to deposit. This section
    specifically states that this shall not operate as a limitation on the
    power of the Smithsonian Institution to receive money or property by gift,
    bequest, or devise, and to hold or dispose of the same to promote the
    purposes of the institution.

    20 U.S.C. S: 56 - Authorizes the Smithsonian Institution Board of Regents
    to dispose of any money which has accrued as interest on the Smithsonian
    fund, or not appropriated, as they deem best suited for the promotion of
    the purpose of James Smithson's bequest.

    Annual Appropriations Acts - Appropriates funds for maintenance,
    alteration, repair, revitalization, lease, and construction of
    facilities.4

    Selected Statutes Enacted Since 1955 Authorizing Smithsonian Institution
    Facilities

    An Act to Authorize the Construction of a Building for the Museum of
    History and Technology Including the Plans and Specifications5

    o 	Authorized the Board of Regents to prepare drawings and specifications
    for, and to construct a suitable building for, a Museum of History and
    Technology. Authorized to be appropriated such sums not to exceed
    $36,000,000 as may be necessary to carry this out.

    4For example, see Consolidated Appropriations Act for Fiscal Year 2005,
    P.L. 108-447, 118 Stat. 2809, at 3088 and 3089 (2004); Department of
    Interior Appropriations Act for Fiscal Year 2004, P.L.108-108, 117 Stat.
    1241, at 1297 and 1298 (2003); and Consolidated Appropriations Act for
    Fiscal Year 2003, P.L. 108-7, 117 Stat. 11, at 265 and 266 (2003).

    5Act of June 28, 1955, Ch. 201, 69 Stat. 189.

    Appendix I
    Funding Sources and Statutes Related to the
    Smithsonian's Revitalization, Construction,
    and Minor Repair and Maintenance Programs

    An Act to Authorize the Plans and Specifications for the Construction of a
    Building for a National Air Museum6

    o 	Authorized the Board of Regents to prepare plans, including drawings
    and specifications, for the construction of a suitable building for a
    National Air Museum and authorized to be appropriated such sums as may be
    necessary to carry this out.

    An Act for the Establishment of the Joseph H. Hirshhorn Museum and
    Sculpture Gardens7

    o 	Authorized the Board of Regents to remove any existing structure,
    prepare architectural and engineering designs, plans, and specifications
    and to construct a suitable museum and sculpture garden for the use of the
    Smithsonian Institution within the area designated within the act for the
    establishment of the Joseph H. Hirshhorn Museum and Sculpture Garden.
    Pledged the faith of the United States to provide such sums as may be
    necessary for the upkeep, operation, and administration of the Joseph H.
    Hirshhorn Museum and Sculpture Garden. Authorized to be appropriated not
    to exceed $15,000,000 for the planning and construction of the Joseph H.
    Hirshhorn Museum and Sculpture Garden and such additional sums as may be
    necessary for the maintenance and operation of the museum and sculpture
    garden.

    An Act to Authorize the Smithsonian Institution to Plan Museum Support
    Facilities8

    o 	Authorized the Board of Regents to prepare plans for museum support
    facilities to be used for (1) the care, curation, conservation, deposit,
    preparation, and study of the national collections of scientific,
    historic, and artistic objects, specimens, and artifacts; (2) the related
    documentation of such collections of the Smithsonian Institution; and (3)
    the training of museum conservators. Authorized to be appropriated such
    sums as may be necessary to carry this out. Provided that the museum shall
    be located on federally owned land within the metropolitan area of
    Washington, D.C., and authorized any federal

    6P.L. 85-935, 72 Stat. 1794 (1958). 7P.L. 89-788, 80 Stat. 1403 (1966).
    8P.L. 94-98, 89 Stat. 480 (1975).

    Appendix I
    Funding Sources and Statutes Related to the
    Smithsonian's Revitalization, Construction,
    and Minor Repair and Maintenance Programs

    agency to transfer land under its jurisdiction to the Smithsonian
    Institution for the site without reimbursement.

    An Act to Authorize the Smithsonian Institution to Construct Museum
    Support Facilities9

    o 	Amended an Act to Authorize the Smithsonian Institution to Plan Museum
    Support Facilities, P.L. 94-98, to authorize the Smithsonian Institution
    to construct museum support facilities. Authorized to be appropriated
    $21,500,000 to carry this out.

    An Act to Authorize the Smithsonian Institution to Plan for Development of
    the Area South of the Original Smithsonian Institution Building10

    o 	Authorized the Board of Regents to plan for the development of the area
    south of the original Smithsonian Institution Building adjacent to
    Independence Avenue at Tenth Street, Southwest, in Washington, D.C.
    Authorized to be appropriated $500,000 to carry this out.

    An Act to Authorize the Smithsonian Institution to Construct a Building
    for the National Museum of African Art and a Center for Eastern Art11

    o 	Authorized the Board of Regents to construct a building for the
    National Museum of African Art and a Center for Eastern Art together with
    structures for related educational activities and authorized to be
    appropriated $36,500,000 to carry this out. Provided that only funds
    appropriated pursuant to this act may be obligated or expended for
    planning, administration, management expenses, and architectural or other
    consulting services, and no other funds appropriated pursuant to this act
    shall be obligated or expended until such time as there is available to
    the Board of Regents, from private donation or other nonfederal sources, a
    sum combined with any appropriated funds in an amount sufficient to carry
    this out.

    9P.L. 95-569, 92 Stat. 2444 (1978). 10P.L. 96-36, 93 Stat. 94 (1979).
    11P.L. 97-203, 96 Stat. 129 (1982).

    Appendix I
    Funding Sources and Statutes Related to the
    Smithsonian's Revitalization, Construction,
    and Minor Repair and Maintenance Programs

    An Act to Authorize the Smithsonian Institution to Purchase Land in Santa
    Cruz County, Arizona12

    o 	Authorized the Smithsonian Institution to purchase land in Santa Cruz
    County, Arizona, for the permanent headquarters of the Fred Lawrence
    Whipple Observatory and authorized to be appropriated $150,000 to carry
    this out.

    An Act to Authorize the Administrator of General Services to Transfer to
    the Smithsonian Institution Without Reimbursement the General Post Office
    Building and the Site Located in Washington, D.C.13

    o 	Authorized the Administrator of General Services to transfer to the
    Smithsonian Institution, without reimbursement, for use for art galleries
    and related functions the General Post Office Building with any attached
    underground structures and the site of the building located between
    Seventh and Eighth Streets Northwest and E and F Streets Northwest, in
    Washington, D.C. Authorized to be appropriated to the Board of Regents of
    the Smithsonian Institution $40,000,000 for renovation and repair after
    the transfer of the building is made to the Smithsonian Institution.

    An Act to Authorize the Smithsonian Institution to Plan and Construct
    Facilities for Certain Science Activities14

    o 	Authorized the Board of Regents to plan and construct facilities for
    the Smithsonian Astrophysical Observatory and the Smithsonian Tropical
    Research Institute. Authorized to be appropriated $4,500,000 for the
    Smithsonian Astrophysical Observatory and $11,100,000 for the Smithsonian
    Tropical Research Institute.

    An Act to Authorize the Smithsonian Institution to Construct the Charles
    McC. Mathias, Jr., Laboratory for Environmental Research15

    12P.L. 98-73, 97 Stat. 406 (1983). 13P.L. 98-523, 98 Stat. 2433 (1984).
    14P.L. 99-423, 100 Stat. 963 (1986). 15P.L. 99-617, 100 Stat. 3488 (1986).

    Appendix I
    Funding Sources and Statutes Related to the
    Smithsonian's Revitalization, Construction,
    and Minor Repair and Maintenance Programs

    o 	Authorized the Board of Regents to construct the Charles McC. Mathias,
    Jr., Laboratory for Environmental Research in Edgewater, Maryland.
    Authorized to be appropriated $1,000,000 to carry this out.

    An Act to Establish the National Museum of the American Indian within the
    Smithsonian Institution16

    o 	Authorized the Board of Regents to plan, design, and construct a
    facility to house the portion of the National Museum to be located in
    Washington, D.C. at a site specified in the act. Provided that the Board
    of Regents shall pay not more than two-thirds of the total cost of
    planning, designing, and constructing the facility from funds appropriated
    to the board with the remainder of the costs coming from nonfederal
    sources.

    o 	Authorized the Administrator of General Services to lease to the
    Smithsonian Institution, at a nominal charge, space in the Old U. S.
    Custom House in New York to house the portion of the National Museum to be
    located in New York and designated as the "George Gustav Heye Center of
    the National Museum of the American Indian." Authorized the Board of
    Regents to plan, design, and construct a facility for the National Museum
    in the Old U. S. Custom House in New York and authorized the Administrator
    of General Services to plan, design, and construct an auditorium and
    loading dock for the shared use of all the occupants of the Old U. S.
    Custom House in New York. The act provided that the Board of Regents shall
    pay one-third of the costs of planning, designing, and constructing the
    National Museum in New York from funds appropriated to the board with the
    remainder of the costs coming from nonfederal sources. The act limited the
    obligation of federal funds for construction of the National Museum in New
    York in any fiscal year, until nonfederal sources have paid to the Board
    of Regents the nonfederal share of the costs which the board estimated
    will be incurred in any such year. The act noted that New York City and
    New York State each agreed to pay $8,000,000 or an amount equal to
    one-third of the costs for planning, designing, and constructing the
    facility, whichever is less. The act provided that after construction of
    the National Museum in New York is completed that repairs and alterations
    of the facility shall be the Board of Regents responsibility.

    16P.L. 101-185, 103 Stat. 1336 (1989).

    Appendix I
    Funding Sources and Statutes Related to the
    Smithsonian's Revitalization, Construction,
    and Minor Repair and Maintenance Programs

    o 	Authorized the Board of Regents to plan, design, and construct a
    facility for the conservation and storage of the collections of the
    National Museum at the Museum Support Center of the Smithsonian
    Institution with a total aggregate square footage of at least 400,000
    square feet.

    o 	Authorized to be appropriated to the Administrator of General Services
    from the Federal Buildings Fund $25,000,000 to carry out the plan, design,
    and construction of the auditorium and loading dock and to make repairs
    and alterations to the portion of the Old U. S. Custom House that is not
    leased to the Board of Regents.

    o 	Authorized to be appropriated to the Board of Regents such additional
    sums as may be necessary to carry out the planning, design, and
    construction of the National Museum to be located in Washington, D.C., the
    National Museum to be located in New York, and the Museum Support Center
    for the collections of the National Museum.

    An Act to Authorize the Smithsonian Institution to Plan, Design,
    Construct, and Equip Space in the East Court of the National Museum of the
    Natural History Building17

    o 	Authorized the Board of Regents to plan, design, construct, and equip
    approximately 80,000 square feet of space in the East Court of the
    National Museum of the Natural History Building. Authorized to be
    appropriated $30,000,000 to carry this out.

    An Act to Provide for Planning and Design of a National Air and Space
    Museum Extension18

    o 	Authorized the Board of Regents to plan and design an extension of the
    National Air and Space Museum at Washington Dulles International Airport
    and authorized to be appropriated $8,000,000 to carry this out.

    An Act to Authorize the Smithsonian Institution to Plan, Design, and
    Construct the West Court of the National Museum of the Natural History
    Building19

    17P.L. 101-455, 104 Stat. 1067 (1990). 18P.L. 103-57, 107 Stat. 279
    (1993). 19P.L. 103-151, 107 Stat. 1515 (1993).

    Appendix I
    Funding Sources and Statutes Related to the
    Smithsonian's Revitalization, Construction,
    and Minor Repair and Maintenance Programs

    o 	Authorized the Board of Regents to plan, design, and construct the West
    Court of the National Museum of the Natural History Building. Provided
    that no appropriated funds may be used to pay any expense for the
    planning, design, and construction of the West Court.

    An Act to Authorize Construction of a National Air and Space Museum Dulles
    Center at Washington Dulles International Airport20

    o 	Authorized the Board of Regents to construct the Smithsonian
    Institution National Air and Space Museum Dulles Center at Washington
    Dulles International Airport. Provided that no appropriated funds may be
    used to pay for any expenses of construction.

    An Act to Authorize the Smithsonian Institution to Plan, Design,
    Construct, and Equip Laboratory, Administrative, and Support Space for the
    Smithsonian Astrophysical Observatory Submillimeter Array21

    o 	Authorized the Board of Regents to plan, design, construct, and equip
    laboratory, administrative, and support space to house base operations for
    the Smithsonian Astrophysical Observatory Submillimeter Array in Hilo
    Hawaii. Authorized to be appropriated specific amounts in various fiscal
    years to carry this out.

    Smithsonian Facilities Authorization Act22

    o 	Authorized the Board of Regents to plan, design, construct, and equip
    additional special use storage and laboratory space at the museum's
    support facility in Suitland, Maryland. Authorized to be appropriated
    specific amounts in various fiscal years and such additional sums as
    necessary to carry this out.

    o 	Authorized the Board of Regents to plan, design, and construct
    improvements to the interior and exterior of the Patent Office Building,
    including the construction of a roof covering for the courtyard. Provided
    that funds to carry this out will be from nonappropriated sources.

    20P.L. 104-222, 110 Stat. 3025 (1996). 21P.L. 106-383, 114 Stat. 1459
    (2000). 22P.L. 108-72, 117 Stat. 888 (2003).

    Appendix I
    Funding Sources and Statutes Related to the
    Smithsonian's Revitalization, Construction,
    and Minor Repair and Maintenance Programs

    National Museum of African American History and Culture Act23

    o 	Authorized the Board of Regents, in consultation with the National
    Museum of African American History and Culture Council, to plan, design,
    and construct a building for the museum. Provided that 50 percent of the
    costs to carry this out will be from federal funds and 50 percent of the
    costs to be from nonfederal sources. Authorized to be appropriated such
    sums as necessary to carry this out.

    An Act to Authorize Construction and Related Activities for Support of the
    VERITAS on Kitt Peak, Arizona24

    o 	To authorize the Board of Regents of the Smithsonian Institution to
    carry out construction and related activities in support of the
    collaborative Very Energetic Radiation Imaging Telescope Array System
    (VERITAS) project on Kitt Peak near Tucson, Arizona. Authorized to be
    appropriated $1,000,000 to carry this out.

     23P.L. 108-184, 117 Stat. 2676 (2003). 24P.L. 108-331, 118 Stat. 1281 (2004).

    Appendix II

    Smithsonian Institution's Status on the Implementation of the National
    Academy of Public Administration's Recommendations

    Status of

    implementation Recommendations by area plans Smithsonian comments

    1. Evaluation of the renovation, repair and alteration (RR&A) requirements

    1.1. Revalidate the total backlog Implemented.    Completed September 2001
          of RR&A requirements. This                          with publication of
          revalidation should include                     Museums and Facilities:
        completing detailed facilities                        Critical Assessment
         condition assessments for all                and Improvement Objectives.
            museums and other major
         facilities that have not been
    surveyed for this purpose within
        the preceding 3 years. In-house
             capability should be
          supplemented with contract
         assistance, if necessary, to
             expedite completion.

    1.2. Develop a fully integrated and prioritized 10-year plan for
    Implemented. Briefings with OMB and congressional staff held
    executing the revalidated backlog of requirements and brief Spring 2002
    based on Museums and Facilities:
    the Office of Management and Budget (OMB) examiners and Critical
    Assessment and Improvement
    congressional staffs on the total facilities requirements, even
    Objectives; subsequent briefings held annually
    though the annual budget constraints may preclude requesting to apprise of
    progress.
    the full amount of funding actually needed.

    1.3. Cost estimates for all the capital improvements projects
    Implementation Project Management Handbook includes this that are included
    in the Smithsonian's annual budget requests under way. provision.
    Discussions have already taken place to OMB and Congress should be based
    on the completion of with OMB on this topic. Additional funding in at
    least 35 percent of final design, with cost escalation Facilities Planning
    and Design will be required included to improve the accuracy and
    reliability of the before the Smithsonian can consistently estimates.
    complete 35-percent design of future year

    projects before requesting construction funding.

    1.4. Implement and adhere to strict control      Implemented. Implemented.
    measures over
    project scope and cost increases. For selected
    major capital
    improvement projects, such as the Patent Office
    Building,
    consider establishing a formal review group to
    help control
    increases in project scope and cost.

        1.5. The budget format for the   Implemented.   Fiscal Year (FY) 2003 and
            RR&A program should be                           2004 budgets reflect
           changed and simplified to                  new format of project
          succinctly state the actual                 descriptions. New
        requirements, estimated costs,                structure for entire
          and construction schedules.                 facilities program budget
                                                      request implemented with FY
                                                      2004 request.

    2. Responsiveness to Congress and OMB

    2.1. Place significantly increased emphasis on responding to Implemented.
    All requests since 2002 have been dealt with
    congressional questions and requests in a timely and accurate
    expeditiously.
    manner.

    3. Facilities maintenance

    3.1. Develop and implement a well-structured maintenance Implemented. Plan
    provided to OMB and Congress January program that includes preventive
    maintenance, periodic testing 2002. Funds received in FY 2004 and
    requested and inspection, and programmed maintenance. for FY 2006 will
    begin to address capability to

    focus on planned maintenance activities, as

    guided by Reliability Centered Maintenance

    (RCM).

    Appendix II Smithsonian Institution's Status on the Implementation of the
              National Academy of Public Administration's Recommendations

                             (Continued From Previous Page)

    Status of

    implementation Recommendations by area plans Smithsonian comments

    3.2. Reorder budget priorities to provide for an increase to at
    Implementation under Increase of $5.4 million received in FY 2004 least
    $10 to $15 million annually in a preventive maintenance way. Salaries and
    Expenses (S&E) appropriation as category. an initial increment of
    increase. Additional

    increase of $4.7 million included in FY 2006 request to Congress. Estimate
    of total requirement revised upward to reflect National Research Council
    (NRC) guidelines of 2-4 percent of physical plant Current Replacement
    Value.

    3.3. Consider budgeting all maintenance and minor repair Implemented.
    Budget restructured to create Facilities requirements, excluding personnel
    costs, in one separate Maintenance line item in the S&E portion of the
    account in the RR&A budget to provide improved visibility and
    Smithsonian's FY 2004 budget request. funds control. Decision to include
    in S&E rather than Capital

    portion of the budget discussed with OMB and

    congressional staff.

    3.4. Consider adopting the RCM approach that many federal agencies use.
    RCM is a maintenance philosophy that incorporates an effective mix of
    proactive, preventive, predictive testing and inspection, and reactive
    maintenance practices that focus on reliability and risk management.

    Implemented.	Associate Director for Reliability hired in August 2002.
    Implementation plan developed and Office Facilities Engineering and
    Operations (OFEO) staff trained. Predictive testing and inspection (PT&I)
    equipment purchased for vibration analysis, thermography, and ultrasonic
    thickness. Performance metrics identified and key processes are being
    revised and validated. PT&I tests were added as part of acceptance testing
    to Hazy, National Museum of the American Indian, and Patent Office
    Building projects.

    4. Smithsonian "backlog"

          4.1. Use commonly accepted    Implemented.        The engineering study
          definitions for facilities                      Museums and Facilities:
          maintenance and repair as                    Critical Assessment and
    spelled out in the numerous NRC                       Improvement
           reports on this subject.                  Objectives contains specific
                                                             definitions that are
                                                         in accord with NRC.

    4.2. Properly identify the Smithsonian's very significant Implemented. The
    Smithsonian no longer uses the term backlog of specific major repair and
    restoration requirements "maintenance backlog," and appropriately and
    refrain from attempting to identify all facilities deficiencies defines
    major repair and restoration and needs under the misleading term
    "maintenance backlog." requirements under "Facilities Capital--

    Revitalization Requirements."

    5. Facilities management organization

           5.1. Centralize facilities                        Office of Facilities
        management functions, including   Implemented. Engineering and Operations
                      the
          National Zoo, under a single                        established.
         facilities organization. This
        change would improve operational
                 efficiency and
          effectiveness, cost control,
              quality control, and
                accountability.

    5.2. Director of OFEO should be designated the principal Implemented.
    Director of OFEO has been given these Smithsonian official for managing
    the facilities maintenance responsibilities by the Secretary. activities,
    the RR&A program, and the construction program.

    Appendix II Smithsonian Institution's Status on the Implementation of the
              National Academy of Public Administration's Recommendations

                             (Continued From Previous Page)

    Status of

    implementation Recommendations by area plans Smithsonian comments

    5.3. The Office of Physical Plant (OPP) should be restructured to place a
    stronger emphasis and focus on its three primary responsibilities: (1)
    operation and maintenance of the Smithsonian's physical plant, (2) repair
    and restoration of facilities to reduce the extensive backlog, and (3)
    construction of new facilities.

    Implemented.	Former Office of Physical Plant has been reorganized into
    three separate entities to focus upon specific facilities management
    functions.

    5.4. If the Smithsonian's RR&A program is substantially Implementation under The
                       Smithsonian received some staff to support

    increased, the OFEO staffing should accordingly be increased to
    effectively manage the larger program.

                                          way.

    the capital program in FY 2003 and FY 2004; construction supervision and
    administration staff has been paid with project funding since FY 2003.
    Remaining staffing requirements for a larger capital program will be
    requested in future budgets as the program increases.

    6. Contracting out considerations

    6.1. Conduct a comprehensive and detailed analysis to Implementation
    determine whether or not the facilities operations and under way.
    maintenance functions that are performed by the OFEO inhouse workforce
    could be accomplished more efficiently and cost effectively if they were
    contracted out.

    In FY 2003, the Smithsonian awarded a contract for operations and
    maintenance of the Hazy Center in lieu of adding new staff, and contracted
    out Heating, Ventilation and Air Conditioning (HVAC) maintenance at
    Smithsonian Environmental Research Center. Maintenance resources added in
    FY 2004 are being used primarily to augment staff capacity with contracts
    for inspection, testing, and preventive maintenance of automatic doors;
    electrical panels; fire alarm systems and fire sprinklers; testing and
    cleaning of cooling towers; and thermographic and vibration analysis. More
    analysis of contracting opportunities will be conducted upon completion of
    reorganization and filling of new positions in OFEO.

    6.2. Conduct a similar analysis of the facilities operations and
    Implementation The Smithsonian contracts for a number of maintenance
    functions for the National Zoological Park under way. maintenance
    activities at the National Zoo, (National Zoo). including HVAC
    maintenance. More analysis of

    contracting opportunities will be conducted upon completion of
    reorganization and filling of new positions in OFEO.

    7. Capital Program Planning Board (CPPB)

    7.1. The CPPB membership should be realigned and updated Implemented. A
    new charter for the board, now named the

    to accommodate the Smithsonian's current organization.	Capital Planning
    Board, reflects the current Smithsonian organization.

    7.2. The Director of OFEO should be designated the Implemented. The
    board's charter assigns overall Smithsonian's principal and lead official
    for developing, responsibility for the board to the Chief Financial
    presenting, and defending all facilities programs and budgets Officer. The
    Director, OFEO, has been directed to the CPPB and to external
    organizations, such as OMB and to lead the board's deliberations for
    facilities Congressional staffs, where required. capital programs.

    Appendix II Smithsonian Institution's Status on the Implementation of the
              National Academy of Public Administration's Recommendations

                             (Continued From Previous Page)

    Status of

    implementation Recommendations by area plans Smithsonian comments

    7.3. The CPPB should meet on a regularly scheduled basis to Implemented.
    The board meets on a regular basis.
    review and recommend approval of the annual budget request
    for the RR&A program, the maintenance program, and the
    construction program, as well as the 5-year plans for each of
    these facilities programs. Minutes of each meeting should be
    recorded and provided to board members.

    7.4. Board review results should be provided in the form of Implemented.
    Board recommendations are incorporated into formal written recommendations
    to the Secretary of the overall budget recommendations made to the
    Smithsonian Institution. Secretary.

    8. Budgeting and financial management

    8.1. Routinely include specific data in annual budget requests
    Implemented. The Smithsonian budget requests since FY on how the
    Smithsonian applied its RR&A funding from the 2003 include this prior year
    information in prior year. summary and by major project.

    9. More effective financial system

    9.1. The current Smithsonian Financial System (SFS) should Implemented.
    Phase I of the Institution's new Enterprise
    be replaced with an updated system. The Smithsonian should Resource
    Planning (ERP) PeopleSoft
    ensure that the updated system is fully compatible with the implemented
    October 1, 2002. Capital Program
    standards set by the Joint Financial Management managers are participating
    in planning for Phase
    Improvement Program and reports obligations and outlays at II
    implementation, which will include the Asset
    the program and project level. The Smithsonian should ensure Management
    Module.
    that program and major-unit managers, as well as working
    level fund-control personnel, are consulted in the process of
    defining requirements for the new system.

    9.2. In the interim, terminology used in the SFS reports should
    Implemented. Terminology clarified as part of ERP
    be clarified. If practical, SFS reports should be revised to development.
    provide actual obligation data. Key personnel should be
    trained to correctly apply the terms used in the federal
    appropriation process and those used in internal operations.

    9.3. Recognize that managers will continue to rely on separate
    Implemented. Capital Program cuff system (PFITS) will be cuff systems
    unless and until a new system is in place that retained and has been
    updated to match new provides managers with the program and project-level
    PeopleSoft coding structure. Commercial Off information they need and in
    which the managers have The Shelf (COTS) project management software
    confidence. systems are being evaluated for potential use in

    the future.

        9.4. The cuff records used by   Implemented. Merger of National Zoo PFITS
          the National Zoo should be                               with PFITS was
    modified to more readily provide              completed in September 2003.
             a basis for tracking                    All National
            obligations as well as                      Zoological Park PFITS
                 commitments.                                obligations,
                                                     commitments and expenses are
                                                     now being
                                                               tracked.

        9.5. Survey managers to determine   Implemented. Information on reporting
              which SFS reports are                         requirements gathered
         actually providing useful data,                 as part of new financial
           which should be changed with                        system (ERP)
        the current system's capabilities,                     development.
               and which should be
                  discontinued.

    9.6. Modify SFS basic reports to provide separate reporting for
    Implemented. Separate codes have been established to

    OPP and National Zoo transactions.	distinguish between OFEO and National
    Zoo Facilities Capital financial activity.

    Appendix II Smithsonian Institution's Status on the Implementation of the
    National Academy of Public Administration's Recommendations

                             (Continued From Previous Page)

                                           Status of
                                         implementation
            Recommendations by area          plans        Smithsonian comments
        9.7. Until a unified system is                  Backups have been trained
    available, a sufficient number of  Implemented.        to support the OFEO
          people should be trained to                   cuff system for the
    operate the various cuff systems                 Capital Program (PFITS).
    the Smithsonian uses so that the
              absence of any one
          individual does not hamper
                  operations.

                            Source: Smithsonian Institution.

    Appendix III

    Organization and Responsibilities of the Smithsonian's Office of
    Facilities Engineering and Operations

                          Office/Sub-offices Responsibilities

    Office of Facilities The office is responsible for facilities planning,
    master planning, and resource management including facility Engineering
    and project budget advocacy, development, policy and standards, fiduciary
    accountability, program oversight and Operations analysis. The office is
    also responsible for architectural history and historic preservation and
    real estate

     policy utilization, guidance, and reporting, as well as facilities management
                                        systems.

    1. Office of Project The office provides comprehensive management of the
    Smithsonian's facilities revitalization and

    Management construction. It develops preliminary project scopes,
    schedules, and budgets; monitors, directs, and reports on the updated
    scope budget and schedule of individual projects and major construction;
    and coordinates the efforts of stakeholders, designers and construction
    execution on multiple projects.

    2. Office of Facilities The office serves as the focal point for
    facilities master planning and space-management issues and efforts.
    Planning and It advises management on architectural history and historic
    preservation, conducts historic preservation Resources reviews,
    comprehensive facilities master planning studies, and space utilization
    studies, space inventories

    and analysis of these issues. It also coordinates with government and
    community groups on facilities planning, space management, and
    preservation matters and provides financial and administrative services
    regarding facilities issues.

    3. Office of Engineering, Design and Construction With oversight from the
    Office of Project Management, this office is responsible for project
    design and construction oversight for all new construction and
    revitalization contracts.

        3.1 Engineering and The office administers architectural and engineering
             services for facility construction, revitalization and repair

    Design Division that include developing design scopes for projects. It
    oversees contracted design efforts, provides limited inhouse architectural
    and engineering design services, and is responsible to provide and ensure
    thorough project reviews and code compliance.

    3.2 Construction The office provides construction administration services
    and operates field offices (resident engineer) at

    Management Division	large project sites. It directs and oversees contract
    services of construction contractors and construction managers and is
    responsible for contract change order negotiations.

    3.3 Cost Engineering The office provides construction cost estimates for
    projects at the project development stage. It provides

    Division	revised construction cost estimates throughout the project life
    cycle to reflect changes and current market conditions.

    3.4 Geo-Spatial The office consolidates and maintains a comprehensive
    Geographical Information System database that

    Conversions	includes computer-aided drawings for Smithsonian facilities.
    It provides a central archive for facility documentation, project files,
    drawings, specifications, operations and maintenance, equipment and shop
    drawings files, as-built drawings and an improved as-built drawing
    capability for facilities management and project development.

    4. Office of Facilities The office provides strategic planning and
    oversight to facilities operations and maintenance efforts. Its goal

    Reliability is to reduce breakdowns and increase planned maintenance. It
    runs the Reliability Centered Maintenance program utilizing predictive
    testing and inspection tools to manage facility equipment. It develops
    tasks and processes then monitors work efforts, collects and analyzes data
    and metrics of the maintenance programs, and adjusts the operation and
    maintenance process to gain further efficiencies. It also purchases
    utilities, manages agency-wide service contracts, operates building
    automation services, and repairs large equipment in central shops. It uses
    both in-house and contractor personnel to accomplish its objectives. It is
    directly involved with new facility design inputs, new system start-ups
    and commissioning efforts.

    5. Office of Facilities The office performs day-to-day facilities
    maintenance services, including preventive maintenance, janitorial

    Management and grounds maintenance; transportation and mail delivery
    services, building management services for leased facilities; landscape
    services and is involved in new facility system start-ups upon completion.
    It accomplishes its work through in-house; and contracted services.
    Currently comprised of seven zones, due to its visibility it plays a
    critical role as ambassadors for OFEO.

    Appendix III
    Organization and Responsibilities of the
    Smithsonian's Office of Facilities
    Engineering and Operations

    (Continued From Previous Page)

                          Office/Sub-offices Responsibilities

    6. Office of Protection The office ensures the safety and security of
    staff, visitors, properties, and collections through the use of Services
    security forces, technology, and facility design and construction.

    7. Office of Safety and The office ensures the Smithsonian provides safe
    spaces for employees and visitors, oversees fire prevention Environmental
    and protection, industrial hygiene and occupational health, environmental
    management, and radiation safety. Management Conducts all safety,
    environmental, industrial hygiene, and occupational health compliance
    audits for the

    Institution.

    8. Smithsonian Tropical The office is responsible for both capital
    projects and operations, and minor repair and maintenance. Research
    Institute

                            Source: Smithsonian Institution.

    Appendix IV

    Smithsonian's Efforts to Implement Leading Practices in Capital
    Decision-Making

                     Principles and practices Smithsonian's efforts

    I. Integrate organizational goals into the capital decision-making process

    1. Conduct comprehensive Secretary's Strategic Plan provides goals and
    specific objectives for all areas of the Institution. assessment of needs
    to meet Annually, OFEO aligns its goals with the strategic plan. These
    goals include targets for percentage results-oriented goals and completion
    on particular projects, overall program performance, and targets for cost
    growth. objectives.

    2. Identify current capabilities, In September 2001, OFEO did a study
    Critical Assessment and Improvement Objectives, which including the use of
    an inventory provides an inventory of assets and a comprehensive list of
    all the studies, design, and construction of assets and their condition,
    and to that date, along with a cost estimate for outstanding work and the
    basis for the estimates. Every 2 determine if there is a gap to 3 years
    facility assessments-in-depth condition reviews of a facility- are
    performed by the Facility between current and needed Assessment Branch.
    Zone Managers consolidate and advocate all facility requirements,
    including capabilities. noncapital minor repairs and maintenance.

    3. Decide how best to meet the OFEO has engaged in several noncapital
    approaches designed to maximize the buying power of the gap by identifying
    and evaluating funding received. Among these approaches is the use of
    continuing contract authority. This permits alternative approaches
    (including multiyear funded major revitalization projects, such as the
    restoration of the Patent Office Building, to noncapital approaches).
    proceed in a measured way in partnership with the contractor, so that
    current year funds can be

    efficiently used, while not holding up the project until all funding is
    received. OFEO employees at all levels are members and active participants
    in both the Federal Facilities Council and the Construction Industry
    Institute. Both organizations promote best practices such as comprehensive
    preproject planning, value engineering and constructability reviews that
    ensure the best use of available dollars through project team alignment
    and technical innovation and flexibility.

    II. Evaluate and select capital assets using an investment approach 4.
    Establish review and approval OFEO's Office of Project Management leads
    the annual formulation and revision of the Smithsonian's framework
    supported by capital design and construction program. The process of
    evaluation and selection of projects begins analyses. with consultation
    with all Smithsonian Institution units, in conjunction with the Office of
    Facilities

    Reliability and the Office of Facilities Management. The staff of the
    Smithsonian units and the staff of the Offices of the Deputy Secretary,
    the Under Secretary for Science and the Under Secretary for Art
    participate in this process. Projects are rated and ranked according to
    criteria based on health and safety concerns first, code compliance and
    security, and the need for repairs and operational efficiency.

    5. Rank and select projects based on established criteria.

    Once the cross-functional teams working at each facility rate and rank
    their projects by priority, type of work and fiscal year, the plan is
    presented to the Smithsonian's Capital Planning Board. The board under the
    direction of the Chief Financial Officer meets throughout the year to
    consider capital requests and balance needs of the design and construction
    program against other capital investments.

    6. Develop a long-term capital

    A 5-year Facilities Capital Program Summary for funding is developed. The
                                combined efforts of OFEO

    plan that defines capital asset decisions.

    and the Capital Planning Board ensure that the capital program receives
    wide-ranging review and approval from all areas of the Smithsonian. The
    Audit and Review Committee of the Board of Regents reviews the
    institution's finances and the Board of Regents authorizes the submission
    of the budget, which includes the 5-year plan to Congress.

      Appendix IV Smithsonian's Efforts to Implement Leading Practices in Capital
                                    Decision-Making

                             (Continued From Previous Page)

                     Principles and practices Smithsonian's efforts

    III. Balance budgetary control and managerial flexibility when funding
    capital projects.

    7. Budget for projects in useful As previously mentioned, continuing
    contract authority is used for multiyear funded major

    segments. revitalization, which allows for phased funding of projects and
    allows a project to proceed in a measured way in partnership with the
    contractor. This process is also used for new construction such as the
    recently completed National Museum of the American Indian on the Mall. The
    vast majority of the Smithsonian's Capital projects are under $1 million
    in cost, so the need for phased work is only present in the very largest
    capital projects. A goal of OFEO, given adequate resources in the
    Facilities Planning and Design account, is to have designs funded 2 years
    in advance of project execution, and to have at least 35 percent of the
    design complete prior to final funding decisions.

    8. Consider innovative Within the recent environment of constrained
    funding for the capital program, the Smithsonian has approaches to full
    up-front engaged in unprecedented fund-raising for design and
    construction. Fully one third of the total project funding. costs of the
    National Museum of the American Indian on the Mall come from privately
    raised funds, as

    does the entire construction of the National Air and Space Museum's Steven
    F. Udvar-Hazy Center. This kind of partnership with the private sector
    will continue to be an important source of support in the completion of
    the Patent Office Building revitalization, the overhaul of the major
    exhibitions halls at the National Museum of American History, and the
    future construction of the National Museum of African American History and
    Culture.

    IV. Use project management techniques to optimize project success.

    9. Monitor project performance Monitoring project performance is the
    fundamental responsibility of OFEO's project, design and and establish
    incentives for construction managers. The requirements for project
    schedules, cost estimates, milestone accountability. submissions and
    regular project meetings are outlined fully in the Project Management
    Handbook. In

    addition, on the largest projects, monthly executive meetings with museum
    directors and the OFEO director are held, as well as quarterly oversight
    meetings with the deputy secretary/chief operating officer and chief
    financial officer. There are two primary incentives for accountability:
    project status is reported regularly to individuals outside the project
    authority, as noted above; and, project managers' performance evaluations
    are based on qualitative and quantitative execution of their individual
    capital programs.

    10. Use cross-functional teams to OFEO project teams consist of a lead
    project manager, design manager, resident engineer, client

    plan for and manage projects. representatives, and contracting specialists
    and, during design reviews, representatives of the Offices of Safety and
    Environmental Management, Protection Services, Facilities Planning and
    Resources, Information Technology and others. Also see items II. 4. and
    IV. 9. above.

    V. Evaluate results and incorporate lessons learned into the
    decision-making process 11. Evaluate results to determine Performance
    metrics are a monthly feature of project management in OFEO. Measures of
    overall if organizationwide goals have capital performance, monthly
    contract obligations, time and cost growth on the largest projects and
    been met. preproject planning are included within the larger program of
    OFEO performance metrics. The

    preproject planning reporting is particularly helpful in measuring
    customer satisfaction, as it monitors the team's alignment on scope
    throughout the life of the project, while there is still time to do
    something about it if disagreements occur.

      Appendix IV Smithsonian's Efforts to Implement Leading Practices in Capital
                                    Decision-Making

                             (Continued From Previous Page)

                     Principles and practices Smithsonian's efforts

    12. Evaluate the decision-making Documents such as the Project Management
    Handbook and the SD-410 are only useful if they are process: reappraise
    and update up-to-date and used. Currently, both documents are being
    revised. Both revised documents are in the to ensure that goals are met.
    review process and will be incorporated into OFEO standard practices.
    External evaluation of OFEO

    projects is a useful tool for the largest and most complex projects.
    Within the past 2 years, the Smithsonian's Inspector General's office has
    audited three projects and the Smithsonian has adopted the recommendations
    made. Also sharing lessons learned outside the organization is a valuable
    means of achieving feedback and OFEO staff has participated in events for
    numerous professional organizations such as the Federal Facilities Counsel
    and the Construction Industry Institute.

                            Source: Smithsonian Institution.

    Appendix V

    Facility Revitalization and Construction Project Code Assignment Matrix

                                      Project type

    Condition Level                   Revitalization and       Construction
                                               renewal
                                                            C D
                              A         B Nonroutine Energy/            E
                        Shell/System  Code compliance/ Capital     Alterations
                                      Operational
                           failure        Security Repairs      and modifications
                                             efficiency
    I - Catastrophic Priority code    PC -1 PC - 2 PC - 2     Not applicable
                           (PC) -1
        II - Critical      PC - 2        PC -2 PC - 3 PC - 3         PC - 3
        III - Routine      PC - 3        PC -3 PC - 4 PC - 4         PC - 4
        IV - Can defer     PC - 5        PC -5 PC - 5 PC - 5         PC - 5

    Source: Smithsonian Institution.

    Notes:
    Priority codes (PC)
    PC-1 equals the budget year.
    PC-2 equals the budget year plus 1 year.
    PC-3 equals the budget year plus 2 years.
    PC-4 equals the budget year plus 3 years.
    PC-5 equals the budget year plus 4 years.

    Condition level

    Catastrophic -Significant projects requiring immediate funding in order to
    correct severe safety hazards, active failures, and prevent the loss of
    facilities. Asset Impact: Detrimental or irreversible failure, immediate
    implementation.

    Critical - High priority projects requiring funding in the next fiscal
    year to avoid failure or correct serious safety/security deficiencies.
    Asset/Program Impact: Imminent failure, program begins in 1 to 3 years.

    Routine - Predicted work that needs funding within 4 years. Asset/Program
    Impact: Moderate risk, program begins in 4 to 5 years.

    Can defer - Work that can be deferred for 5 years. Asset/Program Impact:
    Negligible risk, program begins within 5+ years.

    Project type examples

    Shell/System failure -Roof leaks, building piping leaks, and utility
    system and equipment failures.

    Code compliance/Security - Replacement/upgrade/modification to fire
    detection/suppression systems, life safety/accessibility systems and
    security systems, and building modifications.

    Nonroutine capital repairs -One-time repair work to correct significant
    problem (i.e., all the doors in a building or a single HVAC component).

    Energy/Operational efficiency - Projects with a 7-year cost-effective
    payback period.

    Alterations and modification -Approved master plan projects and work to
    sustain existing or changing missions.

    Appendix VI

    Flow Chart of the Prioritization Decision-Making Process for Minor Repair
    and Maintenance

                            Source: Smithsonian Institution.

    Appendix VII

    Scope and Methodology

    To determine how the condition of the Smithsonian's facilities affects
    public and scientific access to the collections, and the collections
    themselves, we toured 11 facilities-the Arts and Industries Building, the
    Smithsonian Administration Building, the Garber Center, the Cultural
    Resource Center, the National Air and Space Museum, the National Museums
    of American History and Natural History, National Zoological Park, the
    Renwick Gallery, the Smithsonian Environmental Research Center, and the
    Victor Building. We visited these facilities because the Smithsonian
    identified them as having the most serious problems. The Garber Center has
    about 40 buildings, the National Zoological Park has in excess of 40
    buildings and the Smithsonian Environmental Research Center has in excess
    of 30 buildings. We interviewed OFEO zone mangers and building mangers for
    the facilities we visited, and contacted directors of other Smithsonian
    facilities, both local and nationwide, asking them to identify their
    problems.

    To determine how the Smithsonian has changed its facilities management and
    prioritizes its revitalization, construction, and minor repair and
    maintenance programs, we reviewed a variety of documents including the
    National Academy of Public Administration's (NAPA) 2001 report on the
    Smithsonian, the facility organizational chart, Facilities Project
    Management Handbook, drafts of the Operation and Maintenance Handbook,
    Construction Procedural Guidelines, and Cost Management Guide (for
    estimating costs), Facility Revitalization and Construction Project Code
    Assignment Matrix, the Flow Chart of the Prioritization Decision-Making
    Process for Minor Repairs and Maintenance, minutes of the Capital Planning
    Board meetings and the Smithsonian Regents meetings for 2002 through 2004,
    the National Research Council's

    Committing to the Cost of Ownership: Maintenance and Repair of Buildings,
    Federal Facilities Council's Budgeting for Facilites Maintenance and
    Repair Activities and the Construction Industry Institute Best Practices
    Guide. We also interviewed the director and chief of staff of the Office
    of Facilities Engineering and Operations (OFEO) and the eight heads of the
    offices making up OFEO, the staff responsible for prioritizing both
    capital projects and minor repair and maintenance, and the head of the
    Smithsonian's Capital Planning Board.

    To determine the cost and status of the Smithsonian's major (more than $5
    million) construction and revitalization projects and minor repair and
    maintenance projects, we toured 11 facilities (as previously identified)
    to view the Smithsonian's facility problems; we reviewed the NAPA report,
    three Smithsonian Inspector General reports on the construction of the

    Appendix VII Scope and Methodology

    National Museum of the American Indian, the Patent Office Building, and
    the Steven F. Udvar-Hazy Center, the 2006 to 2010 Facility Capital Program
    Summary, minutes of the Capital Planning Board meetings and the
    Smithsonian Board of Regents meetings for 2002 through 2004, individual
    project operational reports, monthly executive reports, contractor
    progress reports, facility assessments, and other appropriate reports; and
    interviewed the OFEO director, the directors of all OFEO offices, and
    project executives and project managers responsible for oversight of
    projects. OFEO also provided cost estimates for revitalization and
    construction projects and the minor repair and maintenance program. We
    assessed the reliability of the estimates by reviewing the processes used
    to determine both revitalization and construction estimates, and minor
    repair and maintenance estimates. As noted in the main body of this
    report, most of the revitalization and construction estimates are
    "order-of-magnitude" estimates that can vary by plus or minus 30 to 50
    percent. Because such variation is typical for these types of cost
    estimates and our objective is to use these figures to provide the
    estimated costs of the Smithsonian's facilities projects, we believe that
    these data are reliable for the purposes of our report.

    To determine under what basic authorities the Smithsonian operates its
    revitalization, construction, and minor repair and maintenance programs,
    and how the Smithsonian uses its federal appropriations and trust monies
    to fund these programs, we researched the Smithsonian's enabling
    legislation; the statutes under which it currently operates, including
    appropriations acts and numerous statutes authorizing Smithsonian
    Institution facilities from the 1950s; congressional budget requests;
    fiscal year 2002, 2003, and 2004 audited financial statements and
    management letters;1 and project operational review reports. We
    interviewed the chief financial officer, assistant general counsel, and
    other appropriate staff. We conducted our work between April 2004 and
    April 2005 in accordance with generally accepted government auditing
    standards.

    1The auditor expressed unqualified opinions on the fiscal year 2002, 2003,
    and 2004 financial statements. They issued management letters with
    suggested improvements that the Smithsonian agreed to implement.

                                     Appendix VIII

                       Comments from the Smithsonian Institution

    Appendix VIII
    Comments from the Smithsonian Institution

    Appendix IX

                         GAO Contacts and Staff Acknowledgments

    GAO Contacts	John Finedore, (202) 512-6248 Tom Keightley, (202) 512-5225

    Staff 	In addition to those named above, Bess Eisenstadt, Susan
    Michal-Smith, Faye Morrison, and Lisa Wright-Solomon made key
    contributions to this

    Acknowledgments report.

    The Government Accountability Office, the audit, evaluation and

    GAO's Mission ~investigative arm of Congress, exists to support Congress
    in meeting its constitutional responsibilities and to help improve the
    performance and accountability of the federal government for the American
    people. GAO examines the use of public funds; evaluates federal programs
    and policies; and provides analyses, recommendations, and other assistance
    to help Congress make informed oversight, policy, and funding decisions.
    GAO's commitment to good government is reflected in its core values of
    accountability, integrity, and reliability.

    The fastest and easiest way to obtain copies of GAO documents at no
    costObtaining Copies of is through GAO's Web site (www.gao.gov). Each
    weekday, GAO postsGAO Reports and newly released reports, testimony, and
    correspondence on its Web site. To

    have GAO e-mail you a list of newly posted products every afternoon,
    goTestimony to www.gao.gov and select "Subscribe to Updates."

    Order by Mail or Phone The first copy of each printed report is free.
    Additional copies are $2 each.

    A check or money order should be made out to the Superintendent of
    Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more
    copies mailed to a single address are discounted 25 percent. Orders should
    be sent to:

    U.S. Government Accountability Office 441 G Street NW, Room LM Washington,
    D.C. 20548

    To order by Phone: ~Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202)
    512-6061

    To Report Fraud, Contact:

    Waste, and Abuse in Web site: www.gao.gov/fraudnet/fraudnet.htm

    E-mail: fraudnet@gao.govFederal Programs Automated answering system: (800)
    424-5454 or (202) 512-7470

    Gloria Jarmon, Managing Director, JarmonG@gao.gov (202)
    512-4400Congressional U.S. Government Accountability Office, 441 G Street
    NW, Room 7125 Relations Washington, D.C. 20548

    Public Affairs ~Paul Anderson, Managing Director, AndersonP1@gao.gov (202)
    512-4800 U.S. Government Accountability Office, 441 G Street NW, Room 7149
    Washington, D.C. 20548

                               PRINTED ON RECYCLED PAPER
    *** End of document. ***