    Capitol Visitor Center: Update on Status of Project's Schedule
    and Cost as of September 21, 2006 (21-SEP-06, GAO-06-1058T).

    This testimony's aim is to assist the Senate Committee on
    Appropriations, Subcommittee on the Legislative Branch in
    monitoring progress on the Capitol Visitor Center (CVC) project.
    Our remarks will focus on (1) the Architect of the Capitol's
    (AOC) progress in achieving selected project milestones and in
    managing the project's schedule since the Subcommittee's August
    2, 2006, hearing on the project; (2) our assessment of the
    project's currently scheduled completion date; and (3) an update
    on the project's expected cost at completion and funding
    situation. As part of this discussion, we will address a number
    of key challenges and risks that continue to face the project, as
    well as actions we believe that AOC will need to take to meet its
    currently scheduled completion date. This testimony is based on
    our review of schedules and financial reports for the CVC project
    and related records maintained by the AOC and its construction
    management contractor, Gilbane Building Company; our observations
    on the progress of work at the CVC construction site; and our
    discussions with the CVC team (AOC and its major CVC
    contractors), AOC's Chief Fire Marshal, and representatives from
    the U.S. Capitol Police. We also reviewed AOC's construction
    management contractor's periodic schedule assessments, potential
    change order log, and daily reports on the progress of interior
    wall and floor stonework. We retained a mechanical consulting
    engineering firm (Kincaid/Bryant) to help us assess the CVC
    team's progress in completing the project's heating, ventilation,
    and air-conditioning (HVAC) system. In addition, we reviewed the
    contract modifications made to date and the estimates of cost
    increases provided by AOC and its construction management
    contractor, including their estimates of the costs related to
    delays, and their preliminary cost estimates for recent changes
    to the CVC's fire protection and security systems. Our assessment
    was somewhat constrained because the CVC team is still analyzing
    the impact on the project's schedule and cost of the recently
    identified changes required for certain components of the fire
    protection and security systems. The team expects to have firmer
    schedule and cost information around mid-October, at which time
    we may have to revise our estimates if this later information
    differs significantly from the current information.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-06-1058T
        ACCNO:   A61265
      TITLE:     Capitol Visitor Center: Update on Status of Project's
    Schedule and Cost as of September 21, 2006
         DATE:   09/21/2006
      SUBJECT:   Construction contracts
    	     Contract administration
    	     Cost analysis
    	     Cost overruns
    	     Facility construction
    	     Federal facilities
    	     Federal funds
    	     Future budget projections
    	     Public visitor-centers
    	     Risk management
    	     Schedule slippages
    	     Cost estimates
    	     Capitol Visitor Center Project

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    GAO-06-1058T

         * Construction Has Progressed, but the Scheduled Completion Da
              * AOC's Scheduled Completion Dates Have Slipped
              * Construction Work Is Progressing
              * Schedule Slippages in Critical and Key Near-Critical Paths H
              * Indicators of Construction Progress Do Not Instill Confidenc
              * Project's Schedule Remains Vulnerable to Challenges, Risks,
              * New Project Schedule Appears Achievable Only under Certain C
              * Recommendation
         * Project's Estimated Cost and Funding
         * Contacts and Acknowledgments
         * Appendix I: Capitol Visitor Center Critical Construction Mil
              * Order by Mail or Phone

    Testimony

    Before the Subcommittee on the Legislative Branch, Committee on
    Appropriations, U.S. Senate

    United States Government Accountability Office

    GAO

    For Release on Delivery Expected at 10:30 a.m. EDT

    Thursday, September 21, 2006

    CAPITOL VISITOR CENTER

    Update on Status of Project's Schedule and Cost As of September 21, 2006

    Statement of Terrell Dorn, Director

    Bernard L. Ungar, Director Physical Infrastructure Issues

    GAO-06-1058T

    Mr. Chairman and Members of the Subcommittee:

    We are pleased to be here today to assist the Subcommittee in monitoring
    progress on the Capitol Visitor Center (CVC) project. Our remarks will
    focus on (1) the Architect of the Capitol's (AOC) progress in achieving
    selected project milestones and in managing the project's schedule since
    the Subcommittee's August 2, 2006, hearing on the project; (2) our
    assessment of the project's currently scheduled completion date; and (3)
    an update on the project's expected cost at completion and funding
    situation.1 As part of this discussion, we will address a number of key
    challenges and risks that continue to face the project, as well as actions
    we believe that AOC will need to take to meet its currently scheduled
    completion date.

    Our remarks today are based on our review of schedules and financial
    reports for the CVC project and related records maintained by AOC and its
    construction management contractor, Gilbane Building Company; our
    observations on the progress of work at the CVC construction site; and our
    discussions with the CVC team (AOC and its major CVC contractors), AOC's
    Chief Fire Marshal, and representatives from the U.S. Capitol Police. We
    also reviewed AOC's construction management contractor's periodic schedule
    assessments, potential change order log, and daily reports on the progress
    of interior wall and floor stonework. We retained a mechanical consulting
    engineering firm (Kincaid/Bryant) to help us assess the CVC team's
    progress in completing the project's heating, ventilation, and
    air-conditioning (HVAC) system. In addition, we reviewed the contract
    modifications made to date and the estimates of cost increases provided by
    AOC and its construction management contractor, including their estimates
    of the costs related to delays,2 and their preliminary cost estimates for
    recent changes to the CVC's fire protection and security systems. Our
    assessment was somewhat constrained because the CVC team is still
    analyzing the impact on the project's schedule and cost of the recently
    identified changes required for certain components of the fire protection
    and security systems. The team expects to have firmer schedule and cost
    information around mid-October, at which time we may have to revise our
    estimates if this later information differs significantly from the current
    information.

    1GAO, Capitol Visitor Center: Update on Status of Project's Schedule and
    Cost as of August 2, 2006,  GA0-06-828T (Washington, D.C.: Aug. 2, 2006).

    2The estimates for most of the delay-related costs were provided by AOC
    and its construction management contractor for budgetary purposes only and
    do not reflect any judgments by GAO of the validity of any potential
    contractor claims.

    In summary:

               o  Since the Subcommittee's August 2 CVC hearing, the CVC team has
               continued to move the project's construction forward, but the
               project's overall targeted completion date has slipped
               significantly. The schedule for the project's most critical
               activity-the fire protection system-has slipped about 4 months,
               bringing the new targeted overall completion date to mid-September
               2007, and other important activities have also been significantly
               delayed. Unlike the previous CVC schedule, the new schedule (1)
               does not allow any time to address problems that may arise or to
               prepare for operations after a certificate of occupancy has been
               issued; (2) assumes that AOC will be able to bring exhibits into
               the CVC before a certificate of occupancy has been issued; and (3)
               provides for opening the CVC and the House and Senate expansion
               spaces at the same time. It is not yet clear to us whether the
               need for time to prepare for operations or for a certificate of
               occupancy to receive the exhibits will affect the facility's
               opening date, but these factors should not delay the completion of
               construction.
               o  During the past month, work on the project has progressed in a
               number of areas. For example, the sequence 2 contractor expects to
               have dehumidified air in the exhibit gallery by around
               mid-October. In addition, critical interior floor stone
               installation has continued, together with other interior and
               exterior construction work. Almost all of the interior wall stone
               for the CVC itself (excluding the East Front and the tunnels) is
               now installed.
               o  A number of problems have developed in connection with the
               CVC's fire protection system, which is the principal cause of the
               completion date's slippage and continues to be the single greatest
               source of risk to meeting the project's new scheduled completion
               dates. Although the CVC team has worked closely with AOC's Chief
               Fire Marshal and has made substantial progress in resolving
               issues, the resolution, along with necessary changes to certain
               security system-related components, has resulted in a need for
               significant additional work. The CVC team based its mid-September
               2007 project completion date on its preliminary estimate of the
               time needed to do this additional work. Although the team believes
               that the time it added to the schedule should be sufficient, it
               will not make a definitive determination until it completes its
               analysis of the required changes, which it expects to do by
               mid-October.
               o  Several other activities important to the CVC's completion,
               such as the HVAC system's installation and East Front work, have
               been delayed since the Subcommittee's last CVC hearing-an outcome
               anticipated by our assessment of the CVC team's performance
               against the indicators of progress that we and the Subcommittee
               have been tracking. For example, during the last 7 weeks, the
               sequence 2 contractor did not meet its overall target for interior
               floor stone installation and continued to experience delays in
               installing wall stone in the East Front. In addition, the sequence
               2 contractor met only 2 of the 17 milestones that we have been
               tracking for this hearing. The project continues to face risks and
               uncertainties, such as getting its complex building systems to
               function together as well as separately and trade stacking.3

               According to our assessment of the project's new schedule, the
               revised completion date is achievable if the CVC team confirms
               that it has added enough time to the schedule to make the
               necessary changes to the fire protection and security system
               components and if, and only if, the team promptly makes
               significant improvements in its execution of the project and its
               schedule. To facilitate such changes, we are recommending that AOC
               develop and submit to Congress an action plan as soon as possible,
               but no later than mid-October 2006, setting forth the specific
               steps it will take to meet its scheduled completion dates. We are
               identifying specific actions that we believe AOC should consider
               in developing this plan, including, for example, (1) making more
               aggressive, visible, and focused efforts to keep the work on
               schedule, with particular emphasis on critical and key
               near-critical activities; (2) making sure sufficient work is
               performed to meet the scheduled dates and quickly identifying and
               addressing problems that arise; and (3) promptly responding to
               design questions and concerns and requests for design instructions
               and clarifications. AOC generally agreed with our recommendation.
               AOC's prompt development and effective implementation of this
               action plan is critical because the construction work that has to
               be done in the next 3 to 4 months is a prerequisite to other work
               that is essential to the CVC's completion, including the CVC
               team's pretesting of the fire protection system and the Chief Fire
               Marshal final acceptance testing of the CVC. In addition, Congress
               can use this plan as a mechanism for holding AOC accountable for
               managing the project and as a vehicle for working closely with AOC
               to ensure that the schedule implications of all proposed scope or
               design changes are quickly determined and considered by all
               appropriate stakeholders before final decisions on the proposed
               changes are made.

               We previously estimated that the total cost to complete the entire
               CVC project would be about $556 million without an allowance for
               risks and uncertainties and $584 million with such an allowance.
               Our updated assessment indicates that the estimated cost of the
               entire CVC project at completion is likely to be about $584
               million without an allowance for risks and uncertainties and about
               $596 million with such an allowance-increases of $28 million and
               $12 million, respectively. Delay-related costs (which AOC and its
               construction management contractor have estimated for budgetary
               purposes only) are the largest component of the increase, followed
               by the additional costs estimated by the CVC team for changes to
               the fire protection and security systems and additional
               contingency funds for future changes. Our estimate could change if
               the additional costs turn out to be significantly different from
               the preliminary estimates. To date, about $531 million4 has been
               provided for CVC construction. For fiscal year 2007, AOC has
               requested $26 million in CVC construction appropriations, plus
               $950,000 in AOC general administration appropriations for
               contractual support to complete acceptance testing of the CVC's
               fire protection system on schedule. During fiscal year 2007, AOC
               is also likely to need, but has not yet requested, some additional
               funds to pay for changes. Although AOC agrees that it will likely
               need additional funds, it does not believe that it will need as
               much as we have estimated. We believe our estimate is reasonable.
               In addition, AOC notes that it may be able to cover at least part
               of the increased costs from funding sources other than new
               appropriations after obtaining the necessary congressional
               approvals.

               Construction Has Progressed, but the Scheduled Completion Date Has
    			  Slipped Further, and Several Actions Are Needed to Meet the Current
    			  Schedule

    			  Work on the CVC project has continued, but the scheduled
               completion date has slipped about 4 months beyond the date
               discussed at the Subcommittee's August 2 CVC hearing. At that
               hearing, we said that despite some improvement in the indicators
               of progress we have been tracking, we were losing confidence in
               the ability of the CVC team to meet its scheduled completion
               dates, given the delays experienced thus far and the risks and
               uncertainties facing the project. Unfortunately, our concerns
               materialized. For example, certain important work related to the
               CVC's fire protection and HVAC systems and the East Front was not
               completed on time, and further delays occurred in the schedules
               for these areas-all of which are important to the project's timely
               completion. Although AOC significantly enhanced its management
               control over the design of the CVC's fire protection system, as we
               had recommended, the team determined that it will take more time
               than previously expected to install certain components of the fire
               protection and security systems to meet life safety and security
               requirements. The CVC team is still determining the precise impact
               of this additional work on the schedule, but has developed
               preliminary time estimates that it believes it can achieve and may
               even be able to shorten after its analysis is done. Recognizing
               these uncertainties, the team has established a mid-September 2007
               date for completion and possible occupancy for both the CVC and
               the House and Senate expansion spaces.5 Our discussions with CVC
               team managers and staff, analysis of the project's current
               schedule, and observations, together with the results of our
               mechanical consultant's work, indicate that this September 2007
               time frame is reasonable and achievable, pending the completion of
               the team's analysis, if and only if meaningful and significant
               changes occur in the project's execution from this point forward.
               We will discuss the necessary actions shortly.

               AOC�s Scheduled Completion Dates Have Slipped

    			  According to the June 2006 project schedule-the schedule in effect
               at the Subcommittee's last CVC hearing-the base CVC project was to
               be completed in May 2007 (except for the exhibit gallery), and the
               House and Senate expansion spaces were to be completed in August
               2007, although their physical construction work was to be
               substantially completed in January 2007. The project's current
               schedule (August 2006) shows both the base CVC project and the
               expansion spaces completed on September 17, 2007, although the
               physical construction work in the expansion spaces is now
               scheduled to be substantially completed in March 2007. However,
               this schedule is based on a preliminary estimate and provides no
               time for additional delays. Specifically, the sequence 2
               subcontractor responsible for the installation of certain fire
               protection and security system components is still analyzing the
               impact on the schedule of changes needed to meet life safety and
               security requirements. This subcontractor has made a preliminary
               estimate that it believes is reasonable and achievable pending the
               completion of its analysis, but it will not commit to a date until
               its analysis is completed, which it believes will be around
               mid-October. In addition, unlike the June and July schedules, the
               current schedule for completing the base project allows no time
               for additional delays, for starting up operations, and for
               delivering exhibits to the exhibit gallery after a certificate of
               occupancy is issued. Although the sequence 2 contractor believes
               it may be able to shorten the time in the current schedule for
               making changes to the fire protection and security system
               components, this possibility has not been confirmed, and it is
               uncertain whether the elimination of schedule time for the three
               items discussed above will be problematic.

               As we have previously testified, most of the physical construction
               work in the CVC, the East Front, and the expansion spaces is
               scheduled to be completed by December 31, 2006; however, some work
               extends into 2007-as far as May 2007 for the exhibit gallery and
               certain East Front work, April 2007 for the gift shops, and March
               2007 for the installation of wayfinding signage and turnover of
               audio-visual equipment in the orientation theaters. Certain other
               construction work, such as the completion of space for the Capitol
               guide service and the installation of seats in the auditorium,
               also extends into 2007. Neither the CVC nor the expansion spaces
               can be opened until the Chief Fire Marshal has completed
               acceptance testing for the fire protection and life safety
               systems, now scheduled for September 2007 for the CVC and the
               expansion spaces. However, unlike the previous project schedules,
               the current schedule shows that AOC's Chief Fire Marshal plans to
               begin testing the expansion spaces before he completes his testing
               of the base CVC building so that some of the testing will be done
               concurrently. Previous project schedules showed that the expansion
               space testing would not start until the base building testing was
               complete. According to the CVC team and the Chief Fire Marshal,
               this change should eliminate the need for temporary construction
               measures and a temporary certificate of occupancy for the base
               building and for limited retesting of the base building after the
               expansion spaces have been tested. Also, according to AOC's Chief
               Fire Marshal, AOC may be able to open certain parts of the
               expansion spaces earlier than mid-September 2007. As we have
               discussed in previous CVC testimonies, AOC is continuing to
               explore this possibility.

               Construction Work Is Progressing

    			  According to information provided by AOC and its construction
               management contractor and our observations, work on the project
               has advanced, in terms of both the dollar value of the work in
               place and individual project elements. In dollar terms, AOC's
               construction management contractor reported that, as of August 31,
               the overall CVC project was about 86 percent complete and the
               sequence 2 work was about 77 percent complete-up from about 84
               percent and 74 percent, respectively, as of the Subcommittee's
               last CVC hearing. Progress on individual project elements includes
               the following:

               o  Interior CVC work has moved forward, according to AOC's
               construction management and sequence 2 contractors. For example, 9
               of the CVC's 21 air-handling units were reportedly capable of
               providing cool air to certain parts of the building. In addition,
               the sequence 2 contractor is expecting to charge the CVC's entire
               HVAC system with chilled water this week and to start providing
               dehumidified air to the CVC soon. The sequence 2 contractor has
               also installed all of the floor stone in the exhibit gallery and
               inside the great hall. The installation of wood ceiling panels is
               essentially complete in one of the two orientation theaters; the
               installation of ceiling drywall is complete in the food service
               area; and ceiling framing has been ongoing in the assembly rooms,
               auditorium, and great hall lobby.
               o  Surface work continued, including the installation of stone
               pavers above the CVC and seat wall stone around the great hall
               skylights. Work on the House connector tunnel and on linking the
               Library of Congress tunnel with the Jefferson Building has also
               continued.
               o  Wall stone has now been fully installed in the food service
               area, upper level west lobby, East Front basement and ground
               levels, and atrium areas. As of last week, only about 130 pieces
               of wall stone had not been installed in the CVC itself, excluding
               the upper two levels of the East Front and the tunnels.

               o  In the House and Senate expansion spaces, preparations for wall
               and ceiling close-in inspections have continued.

               Schedule Slippages in Critical and Key Near-Critical Paths Have
    			  Worsened, Significantly Extending the Project�s Completion Dates
    			  and Complicating Project Management

    			  During the Subcommittee's last CVC hearing, we expressed
               considerable concern about the risk of delay in work on the CVC's
               fire protection system, as well as on other important areas, such
               as the CVC's HVAC system, the East Front, and ceiling close-ins in
               the upper level security lobby. Together, delays in these areas,
               according to AOC's construction management contractor, have
               extended the CVC's completion date by 95 workdays, from May 2007,
               as projected for the Subcommittee's last CVC hearing, to September
               2007, as shown in the project's August 2006 schedule. This delay
               was primarily driven by slippages in the schedule for completing
               the CVC's fire protection system, which constitutes the CVC
               project's critical path-the single longest path through the
               project's schedule, meaning that each day the system's completion
               is delayed, the CVC's completion could also be delayed. AOC has
               significantly improved its control over the design of the
               facility's fire protection system, and the CVC team has been
               working closely with AOC's Chief Fire Marshal and U.S. Capitol
               Police representatives. We believe that these steps have resulted
               in improved coordination and communication and facilitated quicker
               resolution of problems and issues than previously occurred.
               However, the changes that have to be made to certain fire
               protection and security system components to address life safety
               and security issues have added considerable time to the schedule.
               These include (1) changes to the fire alarm system's programming;
               (2) architectural changes in a number of locations to enhance
               their fire protection capability; (3) wiring changes associated
               with having to add a major new fire alarm system control panel,
               enhance the fire damper monitoring system, use a different testing
               method, and link a security system component with a fire
               protection system component; and (4) changes associated with
               adding fire alarm system control panels to meet security
               requirements. According to the CVC team, the amount of time added
               to the August schedule to make these changes reflects the team's
               best thinking but is preliminary pending the team's receipt of all
               the detailed information it needs to estimate the impact of these
               changes on the schedule. The team has received much of this
               information and expects to receive the rest within the next
               several days. The needed information consists largely of shop
               drawings being prepared by the sequence 2 fire alarm
               subcontractor, which reflect the changes required for life safety
               and security. The team believes that it will be able to make a
               firm estimate by around mid-October.

               As we have pointed out in our previous CVC testimonies, this
               project has many near-critical paths that can also affect its
               completion date, some with relatively small slippages. Such a
               situation greatly complicates project management because problems
               arising in multiple areas can adversely affect the completion
               date, and the team must focus on a number of important areas
               simultaneously to avoid delaying the project's overall completion.
               AOC's construction management contractor identified 21
               near-critical paths in the August schedule, 5 of which the CVC
               team considers particularly important because of their potential
               impact on the project's completion. These are the CVC's HVAC
               system, ceiling close-ins in the upper level security lobby, and
               three East Front paths. According to the CVC team, further delays
               in these areas could postpone testing of the CVC's fire alarm
               system, which, in turn, could delay the project's completion.
               According to AOC's construction management contractor, these areas
               have slipped by 74, 68, and over 100 workdays, respectively,
               compared with the schedule in effect at the Subcommittee's last
               CVC hearing. According to this contractor, these slippages
               occurred because of an electrical problem and problems with steam
               condensate that affected the HVAC system; problematic sequence 1
               and preceding work that complicated the ceiling close-ins; and
               multiple issues that limited progress on the 3 East Front
               near-critical paths, including lead abatement requirements;
               electrical, ductwork, and structural conflicts; competition for
               space for workers; and a need to redesign and order new stone for
               the archway above the stair and escalators on the East Front.

               Because the CVC's HVAC system affects many activities, has had a
               number of problems, and poses significant risks to the project's
               successful completion, we asked our mechanical engineering
               consultant to assess the status of the CVC's 21 air-handling
               units. He observed the status of the units on August 11, and
               September 6, 2006, and compared their actual and scheduled
               mechanical readiness to provide conditioned air to the CVC. On the
               basis of his observations at the CVC site on those 2 days, he
               reported the following:

               o  The units' actual and scheduled stage of completion did not
               always match; some units were ahead of and some were behind
               schedule.
               o  The scheduled completion dates for the units did not always
               match those for work in the spaces where the units have to be
               balanced or where the space has to be clean for the units to
               operate safely, suggesting a possible misalignment of priorities
               for finishing the spaces and finishing the units.
               o  Only limited progress was made between his visits to the site.
               Remaining work included insulating pipe, wiring control units, and
               cleaning the units and ducts.
               o  On both visits, he saw relatively few workers near the units,
               and little work was being performed on them.

               We discussed these observations with AOC's sequence 2 and
               construction management contractors, as well as the sequence 2
               subcontractor responsible for the work. The construction
               management contractor confirmed that efforts to finish the units
               had been limited, and the sequence 2 contractor and the
               subcontractor committed to completing all the work necessary for
               all 21 units be operational by December 31, 2006, except for the
               final commissioning of some units. The sequence 2 contractor said
               that it would ensure the alignment of the schedules and priorities
               for finishing the units and the spaces they are to serve. Last
               Friday, AOC's construction management contractor said that
               finishing the scheduled work for the CVC's air-handling units in a
               timely manner is important, and completing the work necessary to
               get steam and chilled water to all the units over the next 3 weeks
               is critical to meeting the project's revised completion schedule.
               Accordingly, we have arranged for our mechanical engineering
               consultant to reassess the status of this work in October.

               The construction management contractor reported slippages in all
               of the remaining near-critical paths since the Subcommittee's last
               CVC hearing. In the 2-month period covered by the schedules
               between this hearing and the last one, 5 near-critical paths lost
               at least 100 workdays and 11 lost at least 40 workdays. For
               example, the exhibit gallery path slipped 105 workdays; the bronze
               door path slipped 43 workdays; the auditorium path slipped 98
               workdays; and the orientation theater path slipped 85 workdays, as
               reported by AOC's construction management contractor. Slippages
               occurred for various reasons. For instance, according to the
               construction management contractor, the orientation theater path
               slipped because of slow progress in installing wood ceiling panels
               and in the sequence 2 contractor's resequencing of work; the
               exhibit gallery path slipped because of problems in finishing the
               ceiling and schedule logic changes; and the bronze door path
               slipped because of production problems at the fabricator's plant.

               Several activities important to completing the House and Senate
               expansion spaces have also been delayed since the Subcommittee's
               last CVC hearing. For example, AOC's construction management
               contractor reported a 23-workday delay in completing the circular
               stairs in the atrium areas. This delay occurred because the spaces
               housing the stairs were not available while sequence 2-related
               work was being done in those areas. Also delayed were ceiling
               close-ins that had to wait for approval of the fire alarm system,
               a special fire suppression system that was not installed because
               it had not been approved, and millwork that was not installed in
               the Senate lower level because of delays in getting approved shop
               drawings. Furthermore, the sequence 2 subcontractor doing the
               expansion work identified a number of concerns that could affect
               the project's completion. For example, the subcontractor reported
               that ceiling close-in delays could postpone testing and balancing
               of the HVAC system; a lack of conditioned air could adversely
               affect certain casework and ceiling tile work; and changes being
               considered in the design of the expansion spaces could delay their
               completion, including work that could affect the testing and
               balancing of the HVAC system.

               Finally, although not critical to the CVC's opening, work being
               done to connect the Library of Congress's Jefferson building to
               the tunnel linking it with the CVC has fallen about a month behind
               because of an asbestos problem. This delay was shorter than
               initially estimated. Overall, the project's schedule today,
               compared with the schedule in effect at the Subcommittee's
               September 15, 2005, CVC hearing, reflects an average loss of about
               3 out of every 4 weeks due to schedule slippages.

               Indicators of Construction Progress Do Not Instill Confidence in
    			  the CVC Team�s Ability to Meet Scheduled Completion Dates

    			  The four indicators of construction progress that we have been
               tracking for the Subcommittee support extension of the project's
               schedule and suggest that changes in the project's execution will
               be necessary to achieve the scheduled dates. An update on these
               indicators follows:

               Sequence 2 contractor has continued to miss most milestones.
               Starting with the Subcommittee's June 2005 CVC hearing, at the
               Subcommittee's request, we and AOC have been selecting and
               tracking sequence 2 milestones to help the Subcommittee monitor
               construction progress. These milestones include activities that
               were either on the project's critical path or that we and AOC
               believe are critical to the project's timely completion. As figure
               1 shows, the sequence 2 contractor has generally missed these
               milestones. For today's hearing, the contractor met 2 of the 17
               milestones that were due to be completed, according to the
               project's June 2006 schedule, and for both, the work was completed
               ahead of schedule. However, the contractor was late in completing
               work for 2 other milestones and had not completed the work for the
               remaining 13 milestones as of September 15, 2006. (See app. I.)
               The sequence 2 contractor attributed the slippages to a number of
               factors, including the need to replace water-damaged insulation,
               necessary preceding work taking longer than expected, and a
               resequencing of work by the contractor.

               Figure 1: Sequence 2 Contractor's Progress in Meeting Selected
               Milestones as of CVC Hearing Dates

               Value of completed work has increased since the last hearing, but
               trend reflects the sequence 2 contractor's difficulties in meeting
               scheduled completion dates. Another indicator of construction
               progress that we and AOC's construction management contractor have
               been tracking is the value of the completed construction work
               billed to the government each month. Overall, the sequence 2
               contractor's monthly billings, including the bills for March
               through August 2006, indicate that AOC is more likely to finish
               closer to its new scheduled completion dates than its previously
               scheduled completion dates. While this indicator has some
               limitations (for example, billings lag behind construction), it is
               generally regarded in the construction industry as a useful
               measure of how likely a project is to be completed on time. Figure
               2 compares the sequence 2 contractor's billings since May 2003
               with the billings needed to complete construction work on schedule
               and indicates that a late summer 2007 completion date is
               reasonable.

    3Trade stacking can occur when workers from different trades, such as
    stone masons, electricians, plumbers, or plasterers, have to work in the
    same area at the same time to meet a schedule, sometimes making it
    difficult to ensure sufficient space and resources for concurrent work.

    4Since we last updated information on the amount of funding provided for
    CVC construction, the House and Senate Committees on Appropriations
    approved an AOC request to reprogram about $1 million from CVC operations
    funding to CVC construction.

    5AOC's June and July schedules provided time between the base project's
    completion and the CVC facility's opening to prepare for operations and to
    install the exhibits in the exhibit gallery because the CVC team believed
    that a certificate of occupancy was required before the exhibits could be
    brought into the building. The team now believes that it may be able to
    fully prepare for opening and install the exhibits before it has a
    certificate of occupancy. As of September 15, it was not clear to us that
    these assumptions had been validated.

    Construction Work Is Progressing

    Schedule Slippages in Critical and Key Near-Critical Paths Have Worsened,
    Significantly Extending the Project's Completion Dates and Complicating Project
    Management

    Indicators of Construction Progress Do Not Instill Confidence in the CVC Team's
    Ability to Meet Scheduled Completion Dates

    Figure 2: Total Billings by the Sequence 2 Contractor for the Entire CVC
    Project Compared with the Billings Needed to Finish Construction Work on
    Schedule

    Notes:

    1. The early and late lines on this figure reflect the cumulative billings
    that would be required to complete the project through contract
    modification number 126 ($232.5 million total contact value) by the early
    and late finish dates shown in the sequence 2 contractor's schedule, which
    is based on the September 2006 contractual completion date.

    2. The actual line reflects the sequence 2 contractor's actual monthly
    billings.

    3. Although bills are typically submitted for payment after work is
    completed, it is often likely that construction work will be completed on
    schedule when the actual billing line falls between the early and the late
    lines in the figure. With respect to the CVC, the actual billing line has
    been trending below, and in March 2006 went below, the late finish line,
    where it remained through August 2006. Even with the lag in billings, this
    trend indicates that the amount of work being completed each month is not
    sufficient to keep the project on schedule.

    Installation of interior wall and floor stone is taking longer than
    expected. Overall, about 86 percent of the CVC's interior wall stone has
    been installed (in the CVC, East Front, atrium areas, and tunnels),
    according to AOC's construction management contractor, and the sequence 2
    contractor installed 1,325 pieces of interior wall stone during the last 7
    weeks. Although the sequence 2 contractor has installed almost all of the
    wall stone in the CVC itself and all of the wall stone in the atrium
    areas, wall stone installation in the East Front is significantly behind
    schedule. According to the sequence 2 contractor's January 2006 wall stone
    installation schedule, the East Front wall stone was to be completely
    installed by July 10, 2006. As of September 15, about 4,700 pieces of wall
    stone remained to be installed in the East Front. During the same 7-week
    period, the sequence 2 contractor installed about 24,040 square feet of
    interior floor stone, or about 73 percent of the 33,000 square feet
    specified in the floor stone installation plan that the contractor
    provided to AOC. According to the construction management contractor, the
    sequence 2 contractor installed the floor stone inside the great hall
    sooner than planned, but work has been impeded in other areas by the lack
    of available space.

    Figure 3 shows the sequence 2 contractor's progress in installing interior
    floor stone since February 13, 2006.6

    6We have discontinued presenting the figure we previously included in our
    testimonies comparing actual to targeted wall stone installation because
    all targeted quantities were to have been installed by August 7, 2006,
    according to the sequence 2 contractor's January 2006 installation plan.

    Figure 3: Progress of CVC Interior Floor Stone Installation Compared with
    Preliminary Targets Set by the Sequence 2 Contractor

    Project's Schedule Remains Vulnerable to Challenges, Risks, and Uncertainties

    As we have indicated during the Subcommittee's previous CVC hearings, we
    believe that the CVC team continues to face challenges, risks, and
    uncertainties in completing the project. Given the project's history of
    delays, the difficulties the CVC team has encountered in resolving
    problems that arise quickly, and the large number of near-critical
    activities that can affect the project's overall completion, the CVC's
    efforts to identify potential problems early and resolve issues quickly
    will be even more important from this point forward, since AOC has left no
    "slack" in the schedule for contingencies. In our view, the remaining work
    associated with the fire protection system poses the greatest single risk
    to meeting AOC's mid-September 2007 completion date. The steps AOC has
    taken to mitigate this risk have been helpful, but much work remains to be
    done on the CVC's fire protection system and its linkages with other
    building systems. In addition, the project continues to face risks and
    uncertainties associated with other work important to its completion, such
    as the CVC's HVAC system, the East Front, and ceiling close-ins. AOC's
    current project schedule does not provide the 2 to 3 months that its
    previous schedule allowed for addressing the ongoing challenges, risks,
    and uncertainties. Accordingly, we plan to continue to monitor the CVC
    team's efforts to meet its schedule for the fire protection system and
    other key near-critical activities as well as the timeliness of the
    actions taken by the CVC team to address problems, concerns, and questions
    that arise. A brief update follows on the challenges, risks, and
    uncertainties the CVC team continues to face and the team's plans for
    addressing them:

               o  Complex building systems remain a significant risk. The CVC
               will house complex building systems, including HVAC, fire
               protection, and security systems. These systems not only have to
               perform well individually, but their operation also has to be
               integrated. If the CVC team encounters any significant problems
               with them, either separately or together, during the resolution of
               design issues, installation, commissioning, or testing, the
               project could be seriously delayed. The unanticipated problems
               that emerged in reviewing the design of the fire alarm system and
               in programming it illustrate the impact such problems can have on
               the project's schedule. Additional delays could occur if the team
               takes longer than expected to get approved shop drawings, if the
               proposed system does not meet the project's design specifications
               or the life safety code, or if the fire protection system does not
               work effectively with the security or other building systems.7
               Additionally, the Chief Fire Marshal noted that delays could occur
               if the CVC team does not adequately pretest the system and correct
               any problems found during the pretesting. On March 23, AOC's
               commissioning contractor submitted its plan to the CVC team for
               testing the performance of the CVC's smoke control system, which
               is a critical component of the CVC's fire protection system and
               must work properly before the CVC can be opened to the public. As
               of September 13, this plan had not yet been submitted to or
               approved by the Fire Marshal Division. Moreover, as we have
               previously noted, the Chief Fire Marshal's timely completion of
               the fire protection system's acceptance testing depends on his
               ability to obtain sufficient funding for a contractor to help
               perform the tests.

               o  Trade stacking could delay completion. As we discussed during
               the Subcommittee's previous CVC hearings, trade stacking could
               hold up finish work, such as drywall or ceiling installation,
               electrical and plumbing work, plastering, or floor stone
               installation. This work could be stacked because of delays in wall
               stone installation. Trade stacking could also increase the risk of
               accidents and injuries. Hence, it remains important, as we said at
               previous CVC hearings, for the CVC team to closely monitor
               construction to identify potential trade stacking and promptly
               take steps to address it. The CVC team has also identified trade
               stacking as a high risk. The sequence 2 contractor has developed
               plans that show when various subcontractors will be working in
               each area of the CVC except the East Front. According to the
               sequence 2 contractor, it intends to continue meeting regularly
               with its subcontractors to review and update the area plans. The
               CVC team identified one recent instance of trade stacking that
               occurred in an effort to expedite certain East Front work. In
               transmitting the team's monthly progress report for August, AOC
               noted that the compressed time frame for bringing all of the
               air-handling units on line will require bringing more technicians
               and mechanics to complete the work and may result in trade
               stacking.

               o  Building design and work scope continue to evolve. The CVC has
               undergone a number of design and work scope changes. Since the
               Subcommittee's August 2 CVC hearing, AOC's architectural
               contractor has issued nine design changes or clarifications. As of
               September 14, 2006, this contractor reported, another six were in
               process. In addition, since the project began, AOC has executed
               over 100 sequence 2 contract modifications for work that was not
               anticipated.8 Some of these changes, such as changes in the
               exhibit gallery and in the East Front, have resulted in delays.
               Furthermore, although shop drawings have been approved for almost
               all project elements except the fire protection system, according
               to AOC, further design or scope changes in various project
               elements are likely, given the project's experience to date. In
               fact, in reporting on the August schedule, AOC's construction
               management contractor noted that anticipated changes to the House
               expansion space could affect ceiling close-ins. Project design and
               scope changes are typically reflected in the development of
               potential change orders (PCO), many of which result in contract
               modifications. Figure 4 shows the PCOs submitted for consideration
               for sequences 1 and 2 since September 2003. Although PCOs are not
               always approved, they are often regarded as a reasonably good
               indicator of likely future design or scope changes that can affect
               a project's cost and schedule. Even more important, the adverse
               impact of scope and design changes on a project's schedule is
               likely to increase as the project moves toward completion.

    7According to the sequence 2 subcontractor that is fitting out the House
    and Senate expansion spaces, the delays in getting approved shop drawings
    for the fire protection system have already postponed ceiling close-ins in
    the expansion spaces, and AOC believes that further such delays, along
    with possible requests for design changes, pose the greatest risks to the
    completion schedule for the expansion spaces.

    8These data exclude sequence 2 contract modifications for work that was
    planned but not included in the sequence 2 base contract. Examples include
    the fit-out of the House and Senate expansion spaces, the construction of
    the utility tunnel, and the purchase and installation of food service
    equipment.

    Figure 4: Cumulative Number of Potential Change Orders Submitted for CVC
    Sequences 1 and 2 between September 2003 and August 2006

    As the figure indicates, new PCOs for sequence 1 were submitted until
    shortly before, and even for several months after, November 2004, when AOC
    determined that the sequence 1 contract work was substantially complete.
    Similarly, PCOs for sequence 2 are still being submitted, and we have seen
    no indication that their submission is likely to stop soon. It therefore
    appears likely to us that some of the design or scope changes indicated in
    PCOs could lead to contract modifications that will affect the project's
    schedule. AOC agrees that it is important to minimize the impact of
    proposed design and scope changes.

    Additional delays associated with the CVC's new utility tunnel have
    resulted, or could result, in additional work or slippages. As we have
    previously testified, the delay in starting up the utility tunnel's
    operations has necessitated the use of temporary humidity control
    equipment for the orientation theaters to avoid damage to finish work and
    ceiling tile. Moreover, delays in getting conditioned air inside the CVC
    have resulted in the sequence 2 contractor's bringing additional temporary
    equipment into the auditorium area. Such delays may subject certain work
    to the risk of damage or delay finish or ceiling work in areas not
    suitable for the use of temporary humidity and temperature control
    equipment. For example, the CVC team installed ceiling tile in portions of
    the great hall to take advantage of the scaffolding in place, even though
    neither the temperature nor the humidity was controlled in that area.
    According to the CVC team, the installed tile could be damaged if the
    temperature or humidity is not within the specified levels. The CVC team
    has been providing cool air to the food service area and on the service
    level, but planned to turn off the chilled water supply to the CVC this
    week so that it can charge the entire CVC system with chilled water. At
    the Subcommittee's last CVC hearing, we reported that the CVC team had
    expected to have steam running to the CVC and to be providing dehumidified
    air to the exhibit gallery by mid-August. However, as we discussed
    earlier, the team experienced problems. The CVC began receiving steam
    earlier this week and now expects to be able to provide dehumidified air
    to the CVC by mid-October. Remaining risks involve having sufficient
    manpower to meet the scheduled dates for getting the HVAC system fully
    operational and being able to quickly overcome any problems that may arise
    in getting the system properly balanced, controlled, and commissioned.

               o  Late identification or slow resolution of problems or issues
               could delay completion. Historically, the project has experienced
               or been at risk of experiencing some delays resulting from slow
               decision-making. In addition, some CVC team members believe that
               some of the problems that have resulted in delays, such as certain
               problems associated with the East Front or with problematic
               sequence 1 concrete work could have been identified and addressed
               earlier than they were. In responding to these comments, the
               sequence 2 contractor said that although earlier identification of
               these types of problems is conceptually possible, it is difficult
               in practice. Looking forward, we do not believe that the team will
               be able to meet its scheduled completion date if it does not
               quickly decide on issues; respond to concerns, questions, and
               submittals; or resolve problems. Last week, AOC told the CVC team
               that starting October 1, the architectural contractor will be
               decreasing its staffing support to the project. In our opinion,
               this increases the risk of slow responses to design questions or
               requests for design instructions at a very critical time,
               particularly since we have not seen evidence of a decrease in
               potential change orders. AOC believes that it will be able to
               provide its CVC construction contractors with sufficient
               architectural support to respond to appropriate questions or
               requests in time to avoid delays. We believe that this situation
               needs close monitoring, as well as corrective action if problems
               arise.

               o  Risks from insufficient stone deliveries appear to be
               diminishing. Although wall stone shortages have caused delays in
               the past, they have not recently been a problem. All of the wall
               stone for the base project and atrium areas has been delivered,
               and AOC does not anticipate a problem with the remaining wall
               stone deliveries. According to the construction management
               contractor, about 2,400 pieces of wall stone for the East Front
               and all of the wall stone for the tunnels still have to be
               delivered. For a time, the sequence 2 contractor did have a
               problem with the delivery of floor stone for the exhibit gallery,
               but that problem has been resolved, and the contractor does not
               anticipate problems with floor stone deliveries for other areas.
               The sequence 2 subcontractor doing the House and Senate expansion
               space work said that some wall stone for the expansion spaces has
               been delivered and at this time he does not anticipate a delivery
               problem with the remaining wall stone.

               Finally, as we have said in previous discussions with AOC, its
               construction management contractor, and the Subcommittee, it will
               be important for AOC to have adequate analysis and documentation
               of the reasons and responsibilities for delays.9 On April 11,
               2006, AOC executed a contract modification authorizing its
               construction management contractor to have one of its managers who
               has not been involved in the CVC project assess the adequacy of
               this type of information. The manager submitted his report to AOC
               in early June. He reported generally positive findings but also
               identified desired improvements. He made several recommendations
               to AOC, which AOC has generally agreed with and plans to implement
               consistent with the availability of resources. As we have
               previously stated, we believe it is important for AOC to complete
               its analysis of delays expeditiously given the September 15, 2006,
               sequence 2 contract completion date and the impact this analysis
               is likely to have on delay-related costs. AOC has been working
               with the sequence 2 contractor to address this issue.

               New Project Schedule Appears Achievable Only under Certain Conditions

    			  Last week, the CVC team completed the development of a new project
               schedule-the August 2006 schedule-that reflects the results of its
               preliminary analysis of the impact on the schedule of recent
               changes to certain components of the fire protection and security
               systems. While the team believes that its preliminary estimate is
               likely to provide sufficient time to accomplish the needed work,
               it does not believe it can make a definitive determination until
               after it has had a chance to fully analyze the changes to these
               systems. Although the team was striving to have all the necessary
               submittals approved by October 1, this is not likely. However, the
               sequence 2 contractor and its subcontractor responsible for most
               of the related work believe that they expect to have enough of the
               needed information in the next several days and will be able to
               make a definitive determination on the amount of time needed by
               around mid-October. The team plans to reflect any changes
               necessary in the September project schedule, which it expects to
               issue at about that same time.

               The August project schedule shows that all physical construction
               work on the CVC, the East Front, and the expansion spaces will be
               completed by spring 2007 and that the pretesting and final testing
               of all of fire protection, life safety, and related systems for
               these areas will be carried out between then and mid-September
               2007. The schedule reflects the amount of time that AOC's Chief
               Fire Marshal said he would need to perform his acceptance testing,
               although the team is working with him to see if certain aspects of
               the testing can be done differently to achieve some time savings.
               Unlike the previous project schedule, the new schedule does not
               allow any time for addressing problems, risks, or uncertainties or
               for preparing for operations; it also assumes that the exhibits
               can be delivered and set up before the final acceptance testing of
               the facility has been completed. The team assumes that it will be
               able to arrange for the delivery and set up of the exhibits and to
               prepare adequately for operations before it receives a certificate
               of occupancy, but had not confirmed this assumption as of
               September 15, 2006.

               Accordingly, we are focusing the results of our schedule
               assessment on the completion of the CVC's construction, including
               the facility's acceptance testing but excluding preparations for
               operations and the delivery and setup of the exhibits. Although we
               would feel more comfortable if the schedule did contain some time
               for addressing problems, risks, and uncertainties, our analysis of
               the schedule; observations of the team's progress; discussions
               with CVC team managers and members, U.S. Capitol Police
               representatives, and AOC's Chief Fire Marshal; and the results of
               our mechanical engineering consultant's work indicate that the
               mid-September time frame for completing the project is achievable
               subject to two conditions:

               o  The team's remaining analysis of the impact of the fire
               protection and security system changes shows that the team can
               finish the necessary work within the scheduled time.

               o  The team promptly makes significant changes in its execution of
               the schedule and project.

               Recommendation

    			  Given the magnitude of the recent schedule slippages and the
               consequences of the risks that have materialized, the time it has
               taken the team to identify and resolve problems, the team's
               performance relative to the indicators of progress that we and the
               Subcommittee have been tracking, and the risks and uncertainties
               that continue to face the project, we are convinced that the team
               will not be able to meet the new schedule or any schedule with
               completion dates close to mid-September 2007 unless it quickly and
               substantively changes its execution of the project and schedule.
               We are recommending that the Architect of the Capitol promptly
               develop an action plan setting forth specific steps that AOC and
               the CVC team will take to enhance AOC's execution of the schedule
               and project. Types of actions the team should consider are as
               follows:

               o  Make more visible, aggressive, and focused efforts to manage
               activities in the project's critical and key near-critical paths
               according to the schedule, making sure that priority activities
               receive priority attention.

               o  See that sufficient effort is applied to meet important dates.
               The CVC team may wish to consider including the use of targeted
               acceleration when it is justified and will save time without
               adversely affecting worker safety, work quality, or facility
               functionality or causing trade stacking. In addition, any
               consideration of acceleration should balance its impact on the
               schedule against its potential impact on cost.

               o  Ensure that mechanisms are in place to identify and quickly
               resolve problems, issues, risks, questions, and concerns raised by
               construction contractors or others; provide needed design guidance
               and instructions; and respond to submittals effectively and
               quickly, including closely monitoring the turnaround time for
               architectural support from this point forward.

               o  Continuously ensure the effective operation of mechanisms put
               in place to coordinate work among the many contractors and
               subcontractors constructing the building and to coordinate with
               AOC's Chief Fire Marshal, U.S. Capitol Police, and the Capitol
               Power Plant.

               o  Continue to see that requests for discretionary changes to the
               project's scope or design are promptly brought to the attention of
               the Capitol Preservation Commission, along with the impact of such
               requested changes on the project's schedule.

               AOC agreed that additional actions are needed to improve the
               extent to which the CVC team meets its scheduled dates and said
               that it would identify and take such actions. To help put the CVC
               team in a better position to meet the project's scheduled
               completion date, after considering the actions we have identified,
               the Architect of the Capitol should promptly provide the Capitol
               Preservation Commission, the House and Senate Committees on
               Appropriations, and the Senate Committee on Rules and
               Administration and the Committee on House Administration with a
               plan setting forth the actions it and the CVC team will take to
               enhance their execution of the project and its schedule -
               particularly to accomplish all of the critical work that needs to
               get done in the next 3 to 4 months. AOC should submit the plan as
               soon as possible, but no later than mid-October 2006. Congress can
               then use this plan to hold AOC accountable for managing the
               project and to work closely with AOC to ensure that the schedule
               implications of all proposed scope or design changes are quickly
               determined and considered by all appropriate stakeholders before
               final decisions on the proposed changes are made.

               Project�s Estimated Cost and Funding

    			  Relying on cost estimates provided by AOC and its construction
               management contractor, we now estimate that the total cost to
               complete the entire CVC project will be about $584 million without
               an allowance for risks and uncertainties and could be as much as
               about $596 million with such an allowance. This updated $584
               million estimate is about $28 million greater than our previous
               estimate of $556 million, which did not include an allowance for
               risks and uncertainties, and matches our previous estimate of $584
               million, which did include an allowance for risks and
               uncertainties. The $28 million increase consists of estimated
               costs related primarily to additional delays and, to a lesser
               extent, the recently identified changes to the CVC's fire
               protection and security systems and provision for future changes.
               (AOC estimated the additional delay-related costs for budgetary
               purposes only and did not provide for possible concurrent
               delays.).Moreover, with additional risks and uncertainties, we
               believe the entire project could cost another $12 million at
               completion ($596 million minus $584 million). The mounting costs
               of delays are a major reason for our emphasis on the need for AOC
               and its other CVC team members to make significant changes in
               their project management.

               To date, about $531 million has been provided for CVC
               construction. This amount includes about $3.9 million that was
               made available for either CVC construction or operations10 and has
               been approved for CVC construction by the House and Senate
               Committees on Appropriations. Our previous cost-to-complete
               estimate showed that another $26 million in construction funds
               would be necessary without an allowance for risks and
               uncertainties to reach the previous cost estimate of $556 million.
               AOC has requested this additional $26 million in its fiscal year
               2007 budget for CVC construction. AOC has also requested $950,000
               in fiscal year 2007 general administration appropriation funds to
               provide contractual support for the Chief Fire Marshal's final
               acceptance testing of the CVC. Given the new cost-to-complete
               estimate, AOC will likely need some additional funding for changes
               during fiscal year 2007.

               AOC agreed that it would likely need additional funds but did not
               believe it would need quite as much as we had estimated for future
               changes and contingencies. Given the project's experience with
               cost growth and the trends in the number of potential change
               orders submitted, we believe our estimate is reasonable. In
               addition, AOC noted that it could possibly use some funds that
               have been slated for covering sequence 2 delay-related costs for
               other CVC-related costs during fiscal year 2007, assuming that
               some of this delay-related funding may not be needed for some
               time. AOC recognized, however, that it may need additional funding
               for potential delay-related costs if it were to do this. AOC also
               noted that it may be able to cover some portion of the increased
               costs by reprogramming funds from other sources after obtaining
               the necessary congressional approvals.

               Mr. Chairman, this completes our prepared statement. We would be
               pleased to answer any questions that you or Members of the
               Subcommittee may have.

               Contacts and Acknowledgments

    			  For further information about this testimony, please contact
               Bernard Ungar at (202) 512-4232 or Terrell Dorn at (202) 512-6923.
               Other key contributors to this testimony include Shirley Abel,
               John Craig, Maria Edelstein, Elizabeth Eisenstadt, Jeanette
               Franzel, Jackie Hamilton, Bradley James, Joshua Ormond, and Scott
               Riback.

               Source: AOC's June 2006 CVC sequence 2 construction schedule for
               the scheduled completion dates, AOC and its construction
               management and sequence 2 contractors for the actual completion
               dates, and the sequence 2 contractor or subcontractors for reasons
               for delay

               aWork is substantially complete.

               bAssembly of the upper level air-handling units has been slowed
               during replacement of water-damaged insulation.

               cBronze door installation has been resequenced to make upper level
               security doors the highest priority.

               dInstallation has been slowed while coordinating with the
               audio-visual contractor on the installation of above-ceiling
               equipment.

               eTest could not be done because preceding work had not been
               completed.

               fInstallation of wood doors has been resequenced; a template was
               developed to prevent delays of follow-on work.

               gInstallation of principal level wall stone has been affected by
               ductwork revisions and metal stud design issues.

               hAspiration wall-stone installation has been delayed because
               preceding work took longer than expected.

    Appendix I: Capitol Visitor Center Critical Construction Milestones,
    July-September 2006

                                                            Scheduled  Actual
    Activity                           Location          completion completion
    Lower level - Hang VP drywall      Congressional     7/20/2006  9/9/2006a
    ceiling                            auditorium
    Wall stone Area #6                 Congressional     7/20/2006  9/11/2006a
                                          auditorium
    Install AHU-EF-1/AHU-EF-2          Mechanical system 8/1/2006   b
    Install bronze doors               Food service      8/3/2006   c
    Grid for wood ceiling              Orientation       8/8/2006   d
                                          theater
    Pre FPT controls test              SF fans           8/15/2006  e
    Wood doors and frames              Food service      8/21/2006  f
    Finish paint                       West lobby        8/21/2006
                                          assembly
    Install wood ceiling panels        Orientation       8/22/2006  d
                                          theater
    Wall stone Area #1                 East Front        8/28/2006  g
                                          principal
    Ceiling fabric                     Congressional     8/28/2006
                                          auditorium
    Install stone                      Exhibit gallery   8/31/2006  h
    Plaster ceiling                    East Front        9/5/2006
                                          Basement
    Controls Pt. to PT. check          AHU-01            9/8/2006   8/5/2006
    Wall stone Area #2                 East Front        9/12/2006  g
                                          principal
    Ceiling panels                     Orientation lobby 9/12/2006
    Floor stone                        Food service      9/19/2006  9/4/2006

    9See, for example, GAO, Capitol Visitor Center: Effective Schedule
    Management and Updated Cost Information Are Important, GAO-05-811T
    (Washington, D.C.: June 14, 2005).

    10Public Law 108-447, enacted on December 8, 2004, provided that up to
    $10.6 million (reduced to $10.5 million by a subsequent budget recission
    of $84,000) could be transferred from AOC's Capitol Building appropriation
    account for the use of the CVC project. The use of the amount transferred
    is subject to the approval of the House and Senate Committees on
    Appropriations. AOC has now received approval to obligate the entire $10.5
    million.

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