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.

           AOCï¿½s 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 Projectï¿½s 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 Teamï¿½s 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.

           Projectï¿½s 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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