Architect of the Capitol: Management Challenges Remain		 
(21-FEB-06, GAO-06-290).					 
                                                                 
The Architect of the Capitol (AOC) is responsible for the	 
maintenance, renovation, and new construction of the Capitol Hill
complex, which comprises more than three dozen facilities and	 
consists of nine jurisdictions, such as the U.S. Capitol and the 
Senate and House Office Buildings. In 2003, at the request of	 
Congress, GAO issued a management review of AOC that contained	 
recommendations in seven areas to help AOC become more strategic 
and accountable. GAO reported on AOC's progress in implementing  
those recommendations in January and August 2004. In 2005 and	 
2006, GAO briefed Congress on AOC's recent progress in		 
implementing GAO's recommendations and on issues related to AOC's
project and facilities management. This report summarizes GAO's  
(1) assessment of AOC's progress in implementing previous GAO	 
recommendations and in improving project and facilities 	 
management and (2) delineation of remaining management		 
challenges.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-06-290 					        
    ACCNO:   A47366						        
  TITLE:     Architect of the Capitol: Management Challenges Remain   
     DATE:   02/21/2006 
  SUBJECT:   Accountability					 
	     Agency evaluation					 
	     Agency missions					 
	     Facility management				 
	     General management reviews 			 
	     Internal controls					 
	     Performance measures				 
	     Strategic planning 				 

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GAO-06-290

     

     * Report to Congressional Requesters
          * February 2006
     * ARCHITECT OF THE CAPITOL
          * Management Challenges Remain
     * Contents
          * Results in Brief
          * Progress Made on Prior Recommendations but AOC Has Not
            Implemented Some Key Recommendations in Critical Areas
          * Progress and Challenges in Project Management
          * Progress and Challenges in Facilities Management
          * Agency Comments and Our Evaluation
     * Summary of AOC's Progress on General Management Review Recommendations
          * Strategic Management
          * Human Capital Management
          * Worker Safety
          * Recycling
          * Financial Management
          * IT Management
          * COO Action Plan
     * Progress and Challenges in Improving Project Management
          * Recommendations in September 2005 Briefing
     * Progress and Challenges in Improving Facilities Management
          * Recommendations Made in December 2005 and January 2006 Briefings
     * Status of AOC's Progress on Recommendations
     * Major Contributors

Report to Congressional Requesters

February 2006

ARCHITECT OF THE CAPITOL

Management Challenges Remain

Contents

Table

February 21, 2006Letter

The Honorable Jerry Lewis Chairman The Honorable David Obey Ranking
Minority Member Committee on Appropriations United States House of
Representatives

The Honorable Wayne Allard Chairman The Honorable Richard Durbin Ranking
Minority Member Subcommittee on the Legislative Branch Committee on
Appropriations United States Senate

The Honorable Trent Lott Chairman The Honorable Christopher J. Dodd
Ranking Minority Member Committee on Rules and Administration United
States Senate

The Architect of the Capitol (AOC) is responsible for the maintenance,
renovation, and new construction of the Capitol Hill complex, which
comprises more than three dozen facilities, nearly 15 million square feet
of space, and 370 acres of ground developed over 200 years.
Organizationally, AOC consists of a centralized staff that perform
administrative functions and staff who oversee nine "jurisdictions" or
operational units that handle their own day-to-day operations. AOC's
jurisdictions include the buildings and grounds of the U.S. Capitol, the
Library of Congress, and the Supreme Court; the House and Senate Office
Buildings; the Capitol Power Plant (CPP); the Botanic Garden, and Security
Programs. AOC operates in a challenging environment: the agency must
preserve and modernize these high-profile, historic buildings while
meeting the needs of Congress-including its leadership, committees,
individual members, and staffs-and the visiting public. AOC has managed
major projects at the Library of Congress, the Supreme Court, and CPP, and
is currently managing the construction of the Capitol Visitor Center
(CVC)-the largest increment of growth in the history of the Capitol.
However, Senate and House Appropriations Committees have raised concerns
about management

documented, and transparent process for evaluating and prioritizing
projects. To improve worker safety, AOC developed several broad
performance measures, including two measures of the extent to which unsafe
conditions exist within AOC and two measures to assess employees'
perception of safety.

o AOC's progress on individual recommendations, while commendable,
represented only initial steps toward the agency's goal of becoming a more
strategic and accountable organization. Substantial work remained to
achieve sustained, long-term management improvements, and greater effort
would be needed to expedite these improvements.

o Sustained commitment and assertive involvement of AOC's leadership would
be key to addressing AOC's long-standing weaknesses and instilling lasting
change.

o The COO's plan-issued in December 2003-included action items related to
several critical areas of improvement, such as strategic planning,
organizational management and structure, project management, customer
service, and communications. However, the plan was not sufficiently
detailed to guide and communicate the agency's performance and progress in
these areas.

Our most recent efforts to monitor AOC's progress included an evaluation
of (1) the agency's overall progress in responding to our recommendations
in seven areas-strategic management, human capital management, project
management, worker safety, recycling, financial management, and
information technology (IT) management; (2) issues related to project
management, including the extent to which AOC meets its original budget
and schedule targets for major construction projects (i.e, projects over
$250,000), and the initiatives that AOC is implementing to improve project
management;5 and (3) issues related to facilities management, including
the extent to which AOC tracks facilities management performance and the
initiatives that AOC is implementing to improve facilities management. We
provided briefings to our congressional requesters on the results of our
work in September and December 2005 and January 2006. This report
summarizes those briefings and supplements the information presented in
the briefings with examples from our other recent work related to AOC's
CVC project and financial management efforts.

To evaluate AOC's progress in responding to our recommendations, we
interviewed AOC officials responsible for implementing the recommendations
and analyzed documents related to AOC's actions. To assess AOC's progress
and challenges in improving project management, we interviewed AOC
officials, analyzed project budget and schedule data, and conducted seven
project case studies.6 To assess AOC's progress and challenges in
improving facilities management, we interviewed AOC officials, interviewed
officials from comparable organizations (including the Smithsonian
Institution, the state capitol complexes of Iowa and Virginia, and the
University of Virginia), compared the performance measures for facilities
management that AOC currently tracks with those used by industry
associations and similar institutions, and analyzed information about
facilities management initiatives at AOC. We conducted our work on the
three reviews from December 2004 through January 2006 in accordance with
generally accepted government auditing standards.

Results in Brief

Overall, AOC is making progress in fulfilling some previous
recommendations and in improving project management and facilities
management. For example, AOC has implemented 21 of 54 recommendations made
in previous reports (primarily related to strategic management, human
capital management, worker safety, and recycling, although work remains to
be done in each of these areas), established a central organization
dedicated to managing major projects, and completed assessments of nearly
all of the agency's facilities, which will enable AOC to better monitor
the condition of its facilities and develop a comprehensive plan for
facility maintenance and building renewal. Furthermore, AOC has
initiatives for additional improvements planned or underway, such as a
"Strategic Performance Initiative"-a year-long effort to develop and
implement meaningful performance measures and link these measures to daily
activities and resource requirements. AOC is also evaluating its project
management information systems to provide better data and replacing the
existing computer-aided facility management (CAFM) system to enhance
tracking and reporting capabilities. AOC's progress is encouraging but,
since these initiatives are in their early stages, it is too early to
determine their success.

Despite progress in some areas, AOC still has a significant amount of work
ahead to reach its ultimate goal of establishing a strong strategic
management and accountability framework. Specifically, two critical
issues-communication with external stakeholders and internal
controls-underlie challenges that have been highlighted in previous GAO
recommendations or in independent audits of AOC's 2003 and 2004 balance
sheets, such as:

o developing and implementing an effective communication strategy with
congressional stakeholders;

o establishing a strong foundation of financial accountability and
control, including an effective internal control framework and cost
accounting system;

o establishing sound procurement practices; and

o improving IT management, including information security.

These issues affect a wide range of AOC operations. For example,
communication with congressional stakeholders is essential to establish
and clarify service and expectation levels and to obtain input on AOC's
initiatives. An effective cost accounting system is necessary for several
project and facilities management improvements, such as developing a
method to more accurately account for project costs and establishing and
tracking performance measures for facilities management costs. Sound
procurement practices are critical to improve the integrity of AOC's
project management and other procurement processes. Finally, improved IT
management is necessary to effectively safeguard AOC's data and
information assets.

Leadership support is vital to ensure that needed improvements are given
urgent attention; this support is also essential to ensure that
improvements that have already been made are continuously evaluated and
refined, as needed. However, the senior leadership positions of COO, the
Chief Financial Officer (CFO), the Chief Administrative Officer (CAO), and
the Director of the CPP are currently open. Other key management positions
have been created recently, but are currently vacant, such as the Director
of Congressional and External Relations and the Director of Planning and
Project Management. Furthermore, the term for the current Architect of the
Capitol will expire in less than one year. The agency is at a critical
juncture in its transformation efforts. It is essential for AOC to quickly
fill the management positions that are currently vacant to sustain
improvements that have already been achieved, support further
transformation efforts, and have a cohesive management team in place in
the event of a turnover in the position of the Architect of the Capitol.
AOC is in the process of hiring for the positions that are currently open.
To help mitigate the impact of so many vacancies in key leadership
positions, AOC recently appointed an Acting COO-who is also temporarily
serving as the Acting CFO-and an Acting CAO to help guide the agency until
the positions are filled. Once a permanent COO is in place, it will be
particularly important for this person to provide strategic direction for
AOC, including updating the COO action plan to help guide and communicate
the agency's transformation efforts.

We provided a draft of this report to AOC for review and comment. AOC
officials provided oral comments in which they generally agreed with the
content of this report that includes the implementation status of
recommendations made to AOC in our previous reports and those
recommendations made based on our recent reviews of project management and
facilities management. AOC also provided technical corrections, which we
have incorporated, as appropriate.

The following summarizes our three briefings, augmented with examples from
other recent work.

Progress Made on Prior Recommendations but AOC Has Not Implemented Some
Key Recommendations in Critical Areas

AOC has implemented 21 of 54 recommendations that span seven
areas-strategic management, human capital management, project management,
worker safety, recycling, financial management, and IT management. The
agency is making progress primarily in the areas of strategic management,
human capital management, project management (covered in the next
section), worker safety, and recycling. For example, to improve strategic
management, AOC released accountability reports in fiscal years 2003 and
2004, developed a summary document to track key performance goals,
established processes for obtaining employee and customer feedback, and
initiated several new methods for communicating with employees. However,
AOC has not implemented a key recommendation related to communicating with
external stakeholders-to develop protocols that establish and clarify
service and expectation levels with congressional stakeholders. AOC's
Acting COO recognizes the importance of communication with congressional
members and staff. Since October 2005, the Acting COO has met regularly
with congressional stakeholders, including Appropriations Committee staff,
and is developing further strategies to improve communication with
congressional stakeholders. AOC is also hiring a Director of Congressional
and External Relations who will be responsible for developing and
maintaining positive relations with congressional members and staff.7

In addition, to strengthen human capital management, AOC has, among other
things, linked its employee evaluation system to mission-critical goals,
established monthly management meetings to share and assess data from
employee relations offices, and identified a number of ways to collect,
report, and analyze workforce data. However, with a large portion of
employees with knowledge in specific trades eligible for immediate
retirement, AOC leadership needs to ensure progress continues to identify
current and future workforce gaps and develop strategies to address these
gaps. To improve worker safety, AOC has made progress in developing safety
policies, implementing a system to track investigations of incidents and
follow up, completing a job hazard analysis process to report hazards, and
establishing a safety-training curriculum that fully supports the goals of
the safety policies. From fiscal year 2000 to 2005, AOC's injury and
illness rate declined from 17.9 to 5.7 injuries or illnesses per 100
employees. However, until AOC's safety policies are fully implemented, the
agency will not have a comprehensive picture of safety hazards. To improve
recycling, AOC has significantly expanded the recycling program; developed
a clear mission, goals, and performance measures for the program; and
issued an environmental program plan. However, the agency still needs to
evaluate the impact of the new performance measures on its current
evaluation criteria and make any necessary changes.

While AOC has made progress in financial management, substantial work
remains to fulfill recommendations related to this area. For example, AOC
had independent audits of its balance sheets for fiscal years 2003 and
2004

conducted.8 AOC received an unqualified or "clean" opinion of the balance
sheets, but the audits identified a number of material weaknesses related
to internal controls. For example, the audit for fiscal year 2004 found
that AOC's procurement system lacked controls to ensure that contract
modifications were properly executed prior to initiation of the work,
project costs were properly classified, and contract executed amounts were
compared to contract value. Similarly, our separate, ongoing monitoring of
the CVC project showed that AOC needed to take additional steps to ensure
that it was: (1) receiving reasonable prices for proposed contract
modifications, (2) obtaining adequate support for contractors' requests
for reimbursement of incurred costs, (3) adequately overseeing its
contractors' performance, and (4) taking appropriate steps to see that
contractors were not doing work before it was appropriately authorized
under approved contractual arrangements.9 AOC is working to correct these
weaknesses.

To further improve financial management, AOC is developing an agencywide
internal control framework and a cost accounting system, which are
essential to improving accountability across all AOC operations. The
internal control framework initiative is scheduled to be implemented by
June 30, 2006, while the cost accounting system is scheduled to be
implemented by September 30, 2006. However, this schedule is likely to be
delayed by a lack of funding and qualified staffing resources. At the
beginning of fiscal year 2006, AOC requested the contractors leading these
initiatives to significantly scale back their development efforts, citing
a lack of fiscal year 2006 funding resources. At that time, the Office of
the CFO estimated that 10 positions-including senior manager level
positions to help lead these initiatives-would be needed to implement the
initiatives on schedule. AOC recently transferred authority to fill some
of the positions from within AOC and reprogrammed funds to help continue
these initiatives; as of January 2006, the contractors have resumed their
development efforts. However, AOC transferred authority for only 4 of the
estimated 10 positions, none of which were at the senior manager level. 
10 As of February 8, 2006, AOC had posted vacancy announcements to fill
three of the four positions, but filling these positions could take
several months.11 Leadership support-especially from the Architect, COO,
and CFO-is critical to ensure that these important initiatives are
appropriately funded, staffed, and monitored. Until these initiatives are
implemented and operating effectively, AOC faces substantial risk in
financial management.

AOC also has begun several initiatives to improve IT management, but
substantial work remains, particularly in information security. To improve
information security, AOC has issued a policy and a plan for performing
risk assessments, issued and implemented an IT security training policy,
and developed a plan to monitor and evaluate the effectiveness of IT
security policies and controls. However, AOC has yet to establish and
implement key information security practices, such as completing risk
assessments on all of its major applications, documenting the identified
risks in system security plans, and developing and implementing
appropriate security controls to mitigate the risks-including developing
contingency plans for all systems and applications. Until AOC implements
key information security practices, it will be challenged to effectively
safeguard its data and information assets.

As part of our review of AOC's progress in responding to previous
recommendations, we followed up on our recommendation related to the COO
action plan-issued by AOC's previous COO in December 2003. In August 2004,
we found that the plan was not sufficiently detailed to guide and
communicate the agency's performance and progress and recommended that the
Architect of the Capitol and the COO consult with members of Congress and
key committees on the specific information regarding AOC's plans,
policies, procedures, actions, and proposed organizational changes in
order to enhance the usefulness of the COO action plan. The COO
subsequently departed AOC and, despite the absence of a permanent COO, the
agency has been continuing to follow the steps laid out in the action
plan. For example, AOC has made progress in addressing elements of AOC
project management that were recommended to be included in the action plan
and has consulted with congressional stakeholders on project management
initiatives, such as prioritizing projects and establishing a new project
management organization. According to AOC officials, the action plan will
be updated when a permanent COO is in place.

Appendix I provides a more complete summary of AOC's progress in
responding to recommendations. Appendix IV lists all 54 recommendations
from previous reports-as well as recommendations from the recent project
management and facilities management reviews-and details AOC's progress on
each recommendation.

Progress and Challenges in Project Management

According to AOC, 84 major construction projects (all 41 projects that
were completed since January 1, 2003, in addition to all 43 active
projects) were meeting budget targets as of September 2005. However, in
some cases, AOC's budget targets included higher construction contingency
allowances than are typical for industry or AOC's guidance. Furthermore,
the budget status of projects constructed "in house" by AOC's Construction
Branch (rather than by contractors) could not be accurately determined
because overhead costs for the branch may not have been charged to the
appropriate project. AOC officials believe they are using appropriate
contingency allowances, but acknowledged that estimating and accounting
for the costs of projects could be improved. AOC also reported that about
half of the projects were behind schedule based on the original estimated
contract completion date, in part because of scope changes and unforeseen
conditions. However, additional measures that reflect the customer's
needs, such as the "beneficial occupancy date," could provide a more
complete picture of AOC's schedule performance.

AOC has initiatives-such as establishing an organization dedicated to
managing major construction projects and reinstating a quarterly report on
the budget and schedule progress of projects-that should improve project
management and related communications with congressional stakeholders.
However, AOC's major construction projects generally take between 5 and
eight years to complete, so it is too early to determine the results of
AOC's initiatives to improve project management. Meanwhile, better
internal controls are needed to improve management and accountability,
particularly in establishing and tracking budget targets, revising
guidance manuals, and implementing controls concerning the quality of
reports. We made recommendations aimed at improving internal controls in
these areas, and AOC has made progress on these recommendations since we
provided the briefings in September 2005. For example, AOC has begun an
internal review of its Construction Branch operations and included a
"beneficial occupancy date" in tracking project schedules.

Appendix II provides a more complete summary of AOC's progress in
improving project management.

Progress and Challenges in Facilities Management

AOC tracks performance measures for the quality and timeliness of its
facilities management services, but does not track comprehensive cost
measures or evaluate ("benchmark") its performance against that of any
similar facilities management organizations. AOC's current measures show
that AOC's customers are satisfied with the quality of AOC's services and
that AOC is meeting or exceeding the targets for its timeliness measures.
However, the timeliness measures could be improved to better represent the
amount of time required for-and spent on-specific tasks. Industry best
practices that would improve accountability and provide useful information
on trends in costs include developing and tracking cost performance
measures and benchmarking performance against that of other organizations.
AOC officials plan to develop cost measures after the completion of the
new cost accounting system and the installation of a new CAFM system.

To improve facilities management, AOC has several initiatives, including
assessing the condition of its facilities to develop a comprehensive plan
for facility maintenance and building renewal and switching to a new CAFM
system that should enhance AOC's tracking and reporting capabilities.
These initiatives can help improve AOC's ability to develop facilities
management cost measures to facilitate the benchmarking of performance, as
well as improve overall facilities management. However, assessing facility
conditions has brought to light the magnitude of AOC's deferred
maintenance and other projects-at least $2.6 billion over nine years as
initially estimated by an AOC contractor (and now being validated by
AOC)-and the challenge of funding these projects. In addition, the new
CAFM system will not be fully effective until, among other things, it is
linked to the planned cost accounting system, the development and
implementation of which has been delayed. In our briefings in December
2005 and January 2006, we made recommendations aimed at improving AOC's
facilities management performance measures and the effectiveness of the
new computer system.

Appendix III provides a more complete summary of AOC's progress in
improving facilities management.

Agency Comments and Our Evaluation

We provided the Architect of the Capitol a draft of this report for review
and comment. We received oral comments from AOC officials stating that
they generally agreed with the content of the information presented in
this report-including the implementation status of recommendations made to
AOC in our previous reports and recommendations based on our recent
reviews of project and facilities management. AOC officials emphasized
that GAO's findings regarding project management largely reflected past
problems and that AOC's new Project Management Organization (now a
division within AOC) is proceeding with a number of initiatives that are
targeted to correct past problems and has plans to start additional
initiatives. AOC officials also provided technical corrections to the
report, which we have incorporated, as appropriate.

We are sending copies of this report to the appropriate congressional
committees. We are also sending this report to the Architect of the
Capitol. We will make copies available to others upon request. In
addition, this report will be available at no cost on the GAO Web site at
h  ttp://www.gao.gov. Contact points for our Offices of Congressional
Relations and Public Affairs may be found on the last page of this report.
If you or your staff have any questions about this report, you may contact
me at (202) 512-2834 or at d  [email protected], or Sara Vermillion at (202)
512-9913 or at v  [email protected]. Major contributors to this report
are listed in appendix V.

Patricia A. Dalton Managing Director, Physical Infrastructure Team

Summary of AOC's Progress on General Management Review
Recommendations Appendix I

Under the congressional mandate to monitor the Architect of the Capitol's
(AOC) progress, we evaluated AOC's response to 54 recommendations in seven
areas: strategic management, human capital management, project management,
worker safety, recycling, financial management, and information technology
(IT) management. We provided briefings on our work in September 2005.
Appendix IV lists all 54 recommendations and details AOC's progress on
each recommendation. Appendix IV also includes the most recent
recommendations resulting from our review of AOC's project management and
facilities management.

AOC has implemented 21 of 54 recommendations and is making progress
primarily in the areas of strategic management, human capital management,
project management (discussed in detail in app. II), worker safety, and
recycling, although work remains in all of these areas. While AOC has also
made progress in financial management and IT management, substantial work
remains to fulfill recommendations related to these areas, particularly in
financial management. Many of the recommendations that have not been
implemented require significant organizational changes; leadership support
for these changes is vital to ensure their success as well as the
continued success of initiatives that AOC has in place.

Strategic Management

Strategic management recommendations were designed to help AOC improve
strategic planning efforts and organizational alignment, establish
meaningful performance measures, obtain feedback from employees and
customers, improve internal and external communications, and strengthen
the relationship between AOC and congressional stakeholders. In response,
AOC released accountability reports for fiscal years 2003 and 2004 and
developed a summary document to track performance for each of its
strategic goals. The agency has also established processes for obtaining
feedback from employees and customers, which should improve communications
with these groups. To further improve communication with employees, AOC
has implemented a variety of communication methods to convey information
to employees, including a weekly newsletter on project updates, policy
announcements, management and communication tips, and other agencywide
messages. However, AOC still needs to improve communication with external
stakeholders. For example, AOC has not fully implemented protocols to
establish and clarify service and expectation levels with congressional
stakeholders. Without such protocols, neither AOC nor congressional
stakeholders can be assured that agency efforts and resources are targeted
to their highest priorities. The Acting Chief Operating Officer (COO)
recognizes the importance of communication with congressional members and
staff. Since October 2005, the Acting COO has been meeting regularly with
congressional stakeholders, including Appropriations Committee staff, and
is developing further strategies to improve communication with
congressional stakeholders. AOC is also in the process of hiring a
Director of Congressional and External Relations who will be responsible
for developing and maintaining positive relations with congressional
members and staff. In addition, AOC has not developed a comprehensive set
of outcome-based and performance-based measures that would enable AOC and
Congress to assess AOC's progress. AOC has developed a document-the "AOC
dashboard"-that includes several high-level indicators to track
performance for each of its strategic goals as well as a target goal for
each indicator. The dashboard is a positive step that needs further
development as AOC revises its goals and objectives and assign measures to
each area in fiscal year 2006.

Human Capital Management

Human capital management  recommendations were aimed at strengthening
AOC's human capital policies and performance. In response, AOC implemented
a performance management approach by developing strategic goals and
measuring performance and linked its employee evaluation system to
mission-critical goals. In addition, AOC management has improved the way
it gathers and assesses data from employee relations offices by holding
monthly meetings to share and discuss data, make recommendations, and take
action. AOC has also identified a number of ways to collect, report, and
analyze workforce data and has developed a report that forecasts future
workforce needs. However, with a large portion of employees with knowledge
in specific trades eligible for immediate retirement, AOC leadership needs
to ensure progress continues to complete ongoing efforts to identify gaps
in current and future workforce needs and develop strategies to address
these gaps. Completing these efforts should further improve its employee
evaluation system and AOC's ability to strategically plan for future
workforce needs.

Worker Safety

Worker safety recommendations were designed to enhance AOC's ongoing
efforts to establish a strategy for the worker safety program by
developing performance measures for safety goals and objectives, establish
policies for reporting hazards, establish a system for conducting
investigations and follow-up, and implement a safety-training curriculum.
In response, AOC has developed 23 of 35 specialized safety policies;
implemented a system to track investigations of incidents and follow-up;
completed a job hazard analysis process to report hazards; and established
training that supports the goals of the safety policies. Overall, AOC's
injury and illness rate declined from 17.9 in fiscal year 2000 to 5.7 in
fiscal year 2005. However, until AOC fully implements the specialized
safety policies, particularly a policy on hazard assessment and control,
the agency will not be able to develop a comprehensive picture of AOC
hazards. During our Capitol Visitor Center (CVC) monitoring work, we noted
that worker injury rates for the CVC construction site were higher than
the rates for comparable sites and that gaps existed in the management of
worker safety at the CVC site. AOC has taken action to address this issue;
the injury and illness rate for the CVC project declined from 9.1 in 2003
and 12.2 in 2004, to 5.9 for the first 10 months of 2005-below the 2003
industry average of 6.1.

Recycling

Recycling  recommendations were designed to help AOC adopt a strategic
approach to recycling by developing a mission and goals for the recycling
program, establishing performance measures for the program, examining the
roles and responsibilities of recycling staff, and holding staff
accountable for achieving goals. In response, AOC has developed a clear
mission, goals, and performance measures for AOC's recycling program and
issued an environmental program plan. AOC has also included recycling
tasks in recycling staff position descriptions and recycling objectives in
AOC's evaluation system for recycling managers. However, AOC still needs
to evaluate the impact of the new performance measures on its current
evaluation criteria and make any necessary changes.

According to AOC officials, the AOC recycling program has undergone
significant expansion over the past five years, while at the same time
becoming more efficient. Initially consisting of recycling of paper, cans,
bottles, and scrap metal, the AOC recycling program has now been expanded
to include items such as toner cartridges, carpeting, concrete, ceiling
tiles, batteries, pallets, wooden spools, hard plastics, and electronic
wastes such as computers. The program has also been expanded by increasing
the number of locations at which recycling is taking place. The paper
recycling program has maintained a "zero percent off-specification"
(formerly referred to as "contamination") rate for the past two years,
down from historical contamination rates as high as 50 percent.

Financial Management

Financial management  recommendations were aimed at helping AOC improve
financial management by institutionalizing sound financial management
practices; strengthening accountability and control through senior
management's visible support for efforts to prepare auditable financial
statements and implement internal controls; and enhancing the successful
development of appropriate cost accounting and meaningful financial, cost,
and performance reporting. AOC made progress in financial accountability
by issuing its initial agencywide accountability reports in December 2004
and February 2006, in which the results of audits covering AOC's fiscal
year 2003 and 2004 balance sheets, respectively, were presented;
requesting a full-scope audit of a complete set of its financial
statements and related note disclosures for fiscal year 2005; and
beginning development of an AOC-wide internal control framework and a cost
accounting system. While these initiatives reflect progress, until they
are implemented AOC will continue to face significant risk in financial
management and program operations.

The AOC received an unqualified or "clean" opinion on its balance sheet
for fiscal year 2003 and its comparative balance sheet for fiscal years
2003/2004. However, the Independent Auditor's Report on Internal Control
for fiscal year 2003 noted a number of internal control weaknesses that
AOC has been working to correct, including weaknesses in the areas of: 
capitalizing work-in-process expenses, allocating overhead to project
costs, accounts payable cutoff, capital and operating leases, payroll
record retention, and IT controls. As reported in AOC's 2004
Accountability Report, the AOC has fully addressed six out of seven
material weaknesses identified in the fiscal year 2003 auditor's report.
The fiscal year 2004 auditor's report identified weaknesses in the areas
of: internal control assessments, annual leave processing, timekeeping
controls, procurement system controls for contracts, procurement processes
for capital and operating leases, and IT security.

To further improve financial management, AOC is developing an agencywide
internal control framework and a cost accounting system, which are
essential to improving accountability across all AOC operations; however,
it is unlikely that these initiatives will be completed by their scheduled
implementation dates of June 30, 2006, and September 30, 2006. During
fiscal year 2005, AOC approved the establishment of an AOC-wide internal
control framework. AOC began developing a process to formally evaluate,
document, and recommend improvements on the effectiveness of the design
and operations of its internal control structure. In developing this
framework, AOC has begun to identify key financial and operational
processes, updating process documentation and flowcharts, perform risk
analyses, update and benchmark controls, and document any identified
deficiencies. In addition, in an effort to move AOC's financial system
from a budget-based system to a performance-based system, AOC is
developing a cost accounting system, which would align goals, activities,
and outputs; it would also improve systems and reporting across the
agency, including project management and facilities management. AOC plans
to implement the new performance-based system in phases to make an orderly
transition from the current budget-based financial system. Those plans
include pilot deployment of an interim cost structure for managers through
fiscal year 2006, followed by the development of a structure for general
and administrative cost reporting, and the development of a structure for
jurisdictional services in fiscal year 2007. However, AOC's schedule for
implementing these key initiatives is likely to be delayed by a lack of
funding and qualified staff resources. At the beginning of fiscal year
2006, AOC requested the contractors leading the internal control and cost
accounting initiatives to significantly scale back their development
efforts, citing a lack of fiscal year 2006 funding resources. At that
time, the Office of the Chief Financial Officer (CFO) estimated that 10
positions-including senior manager level positions to help lead these
initiatives-would be needed to implement the initiatives on schedule. AOC
recently transferred authority to fill some of the positions from within
AOC and reprogrammed funds to help continue these initiatives; as of
January 2006, the contractors have resumed their development efforts.
However, AOC transferred authority for only four of the estimated 10
positions-none were at the senior manager level.1 As of February 8, 2006,
AOC had posted three of the four vacancy announcements (two Senior
Accountant positions and one Junior Accountant position), but filling
these positions could take several months. Leadership support-especially
from the Architect of the Capitol, COO, and CFO-is critical to ensure that
these important initiatives are appropriately funded, staffed, and
monitored. Until these initiatives are implemented and operating
effectively, AOC faces substantial risk in financial management.

In total, the extent of progress on the financial management reporting
improvement efforts has been limited. Successful completion of the
development and implementation of these important financial management
initiatives will require additional AOC funding and qualified staff, close
monitoring, and strong and visible support of these initiatives by AOC
leadership. AOC will continue to face significant risk in financial
management and its program operations until these key accountability and
management control initiatives are fully implemented.

IT Management

IT management  recommendations were designed to help AOC adopt an
agencywide approach to information management by: developing and
implementing IT investment management processes to support informed
executive decision making; developing, implementing, and maintaining an
enterprise architecture2 to guide and constrain IT investments throughout
AOC; and establishing and implementing an information security program. In
response, AOC established a Director of the Office of Information and
Resource Management to manage IT across the agency. AOC has also taken
important initial steps to address the management and structure needed to
establish a sound IT investment management process, such as assigning
roles, responsibilities, and the authority needed to manage its IT
investment portfolio. AOC, moreover, is in the process of instituting an
approval process and mechanism to screen all proposed IT projects using
standardized criteria. Further, AOC has established the management
structure for developing, implementing, and maintaining an enterprise
architecture, such as designating a chief enterprise architect to guide
architecture development and maintenance and developing an updated version
of its architecture that was approved by the senior policy committee,
which includes senior representatives from across the agency. In addition,
AOC has established some aspects of an effective information security
program, such as issuing a policy and a plan for performing risk
assessments; issuing and implementing an IT security training policy; and
developing a plan to monitor and evaluate the effectiveness of IT security
policies and controls.

However, more work remains to be done to fully implement our
recommendations. In particular, AOC has yet to fully develop and implement
important key steps in their IT investment management process, such as
developing an overall approach to portfolio management that incorporates
existing and proposed projects into the investment decision making process
and documenting and implementing a sound investment control process to
monitor all current and proposed IT investments. Furthermore, AOC has yet
to establish and implement key practices associated with developing,
implementing, and maintaining an enterprise architecture, such as ensuring
that the architecture addresses security and ensuring that metrics are
used to measure progress, quality, compliance, and return on investment.
Moreover, as stated above, the agency has yet to establish and implement
key information security practices, such as completing risk assessments on
all of its major applications, documenting the identified risks in system
security plans, and developing and implementing appropriate security
controls to mitigate the risks-including developing contingency plans for
all systems and applications. Until AOC completes and implements plans for
improvement that are consistent with all our recommendations, it will be
challenged in its ability to effectively use IT to optimize mission
performance.

COO Action Plan

As part of our progress review, we followed up on our recommendation
related to the COO action plan-issued by AOC's previous COO in December
2003-which recommended that the Architect of the Capitol and the COO
consult with members of Congress and key committees on the specific
information regarding AOC's plans, policies, procedures, actions, and
proposed organizational changes in order to enhance the usefulness of the
COO action plan. The agency has been continuing to follow the steps laid
out in the action plan, despite the absence of a permanent COO. For
example, AOC has made progress in addressing elements of AOC project
management that were recommended to be included in the action plan.
According to AOC officials, the action plan will be updated when a
permanent COO is in place.

Progress and Challenges in Improving Project Management Appendix II

To evaluate AOC's efforts to improve project management, we (1) determined
the extent to which AOC is meeting it original budget and schedule targets
for major construction projects (projects costing over $250,000, not
including four construction projects-building the CVC, modernizing the
Supreme Court, expanding the West Refrigeration Plant, and increasing
Perimeter Security) and (2) identified initiatives that AOC is
implementing to improve project management and challenges that remain. We
provided briefings on this work in September 2005.

At the time of our briefings, AOC reported that all recent major projects
were meeting budget targets. However, AOC's budget targets are based on
cost estimates that include construction contingencies that are sometimes
5 percent higher than both industry standards and AOC's own guidance.1
Although higher budget targets reduce the need for AOC to request
additional funds to complete projects, higher targets could also reduce
the incentive for AOC to prudently manage project funds and tie up excess
funds that could be used for other capital projects. For example, 41
projects completed from January 2003 to April 2005 had excess funding
totaling about $5.5 million. In addition, the overhead costs of projects
constructed "in house" by AOC's Construction Branch (rather than by
contractors) may not have been accurately charged to the correct project
because these charges do not receive the same level of review as those of
outside contractors. According to AOC officials, using a contingency
higher than 10 or 15 percent requires documented rationale for why the
percentage is higher than prescribed by AOC guidance. AOC officials stated
that they believe that their contingency allowances are appropriate for
the environment in which AOC operates, but acknowledged that estimating
and accounting for the costs of projects could be improved.

AOC also reported that about half of recent projects were behind schedule
based on the original estimated contract completion date, in part because
of scope changes, unforeseen conditions, and changes in jurisdictions'
(the customers') priorities. However, additional measures that reflect the
customers' needs, such as the "beneficial occupancy date" could provide a
more complete assessment of AOC's schedule performance. Since our
briefings, AOC has tracked the beneficial occupancy date, as well as the
original estimated contract completion date.

AOC has initiatives in several areas-planning, project management
organization and accountability, and communication-that are designed to
improve project management. For example, AOC continues to refine its
planning process to identify, develop, and prioritize capital projects.
The most recent refinements include adding the results of completed
facility condition assessments and using two new criteria to evaluate
projects-"urgency" and "type of project." AOC also implemented a Project
Management Organization to align project and construction management to
provide "cradle to grave" project oversight. Under this new organization,
AOC is:

o using "jurisdictional executives" as liaisons with jurisdictions;

o tracking performance measures for budget and completion dates and
quality of project design;

o using a governmentwide system to evaluate and record contractor
performance;

o maintaining central files for key project documentation to improve
access and accountability; and

o enforcing liquidated damages against contractors on delayed projects to
motivate them to meet contract commitments.2

Finally, AOC has reinstated a quarterly report to Congress to communicate
the budget and schedule status of ongoing projects.

While these initiatives are promising, AOC faces the challenge of
developing better internal controls to improve management oversight and
accountability. Meeting this challenge will improve the chances of success
for AOC's initiatives. For example, AOC's planning process would benefit
from more complete information on the initial scope of projects. For the
new Project Management Organization, AOC has not implemented a customer
satisfaction survey to track the quality of construction services, fully
clarified staff roles and responsibilities, or updated guidance manuals.
The quarterly report does not accurately reflect the performance of
projects constructed by AOC's Construction Branch because the agency does
not have a method for calculating current working estimates for this
branch. Furthermore, the quarterly report must be compiled manually
because AOC's information systems do not adequately support project
management and reporting needs.

Recommendations in September 2005 Briefing

To improve internal controls related to project management, we recommended
that AOC:

o develop a method to establish and track more accurate budget targets,
which could include tracking and reporting on the accuracy of cost
estimates compared with bids, the accuracy of project budgets compared
with final project costs, the amount of excess project funds and how these
funds are used, and cost data for the Construction Branch;

o expedite the development of a customer satisfaction survey for
construction services;

o clarify the roles and responsibilities of staff in the new Project
Management Organization;

o revise project management guidance manuals; and

o develop or modify information systems to provide needed cost and
schedule data on projects and track reasons for changes across all
projects.

AOC generally agreed with our recommendations and, since September 2005,
has made progress in addressing these recommendations by

o developing and tracking new cost measures on a monthly basis,

o piloting the use of a project closeout sheet to verify reallocation of
excess funds,

o initiating an internal review of AOC's Construction Branch's operations,

o initiating the development of a customer satisfaction survey for
construction services,

o communicating and clarifying staff roles through regular staff meetings,
and

o analyzing the Project Management Organization's information needs to
determine the requirements for a new or revised information system.

Progress and Challenges in Improving Facilities Management Appendix III

To evaluate AOC's efforts to improve facilities management, we reviewed
(1) the extent to which AOC tracks facilities management performance and
(2) the initiatives AOC is implementing to improve facilities management
and the challenges that remain.1 We provided briefings on our work in
December 2005 and January 2006.

AOC tracks performance measures for quality and timeliness of facility
management services; these measures indicate that AOC's customers are
satisfied with the quality of AOC's services and that AOC is providing the
services in a timely manner. For example, in 2004, all but one of AOC's
quality ratings were above 80 percent and almost half were above 90
percent. AOC is also meeting or exceeding its timeliness targets. For
example, in September 2005, AOC closed 88 percent of the demand work
orders that were closable that month and completed 95 percent of the
orders in less than 30 days.2 However, AOC's timeliness measures could be
improved to better represent the amount of time required for specific
tasks. AOC uses a standard timeliness measure of 30 days for all tasks,
even though many tasks take less time to complete. For example, the Senate
jurisdiction allots 24 hours for decorative paint repair, 1 week to paint
an entire area, and 2 weeks to refinish furniture. The Smithsonian
Institution, an organization with characteristics similar to AOC, tracks
multiple time frames that are more relevant for specific tasks, such as 24
hours, 3 days, and within 30 days. Not tracking more specific timeliness
measures hinders AOC in accurately determining whether tasks are completed
in a timely manner, and identifying which tasks may need additional
resources.

AOC does not track comprehensive cost performance measures or evaluate (or
"benchmark") its performance with that of similar facilities management
organizations. While AOC has the capability to track a limited number of
annual complex-wide cost measures, it does not comprehensively and
routinely track specific cost measures, such as the cost per square foot
of cleaning or maintenance and repairs. By not tracking these performance
measures, AOC cannot understand how those costs compare with those of
similar institutions, or identify how its costs may be increasing or
decreasing over time. However, to track cost performance measures, AOC
must first develop and implement a cost accounting system. As discussed
earlier in this report, development and implementation of this cost
accounting system has been delayed due to lack of adequate resources and
personnel. Furthermore, while AOC internally compares the performance of
individual jurisdictions in areas such as customer satisfaction and
timeliness, the agency does not benchmark its performance against that of
external organizations. Even though AOC's facilities are somewhat unusual,
benchmarking could help identify areas where costs may be high or cost
trends differ. AOC officials told us that the agency has implemented cost
accounting pilot initiatives in several jurisdictions and acknowledge that
benchmarking performance against that of comparable external organizations
would be beneficial.

AOC has several initiatives under way that should help improve its ability
to develop and track cost performance measures and benchmark performance.

o Conducting facility assessments to develop a comprehensive plan for
facility maintenance and building renewal: The Facility Condition
Assessment (FCA) initiative establishes an ongoing process for monitoring
facility conditions and enables AOC to develop a comprehensive plan for
facility maintenance and building renewal. FCAs help AOC prioritize
projects for budget requests and increase AOC's accountability, since they
enable AOC to directly link facility needs and budget plans. AOC has
completed all but two FCAs-for the Library of Congress Building and
Grounds and the Supreme Court. While FCAs have enabled AOC to develop a
comprehensive plan for facility maintenance and building renewal, the
assessments have also documented the magnitude of AOC's deferred
maintenance and other projects-$2.6 billion over nine years-and the
challenge of funding these projects. Funding for only a limited number of
these projects has been integrated into AOC's Capital Improvement Plan
process. According to AOC officials, they plan to discuss funding needs
with appropriators as part of the Capital Improvement Plan process, using
the FCA results to help appropriators better understand the funding needs.

o Switching to a new Computer-Aided Facility Management (CAFM) system to
enhance tracking and reporting capabilities: AOC uses its current CAFM
system to track demand work orders, but does not consistently track
preventive maintenance work orders (even though the current system is
capable of tracking these work orders).3 By not tracking preventive
maintenance work orders, AOC cannot compare how much preventive
maintenance jurisdictions are performing with how much is recommended. AOC
is replacing its existing CAFM system because the vendor is phasing out
support for that system. According to AOC officials, the new system will
have improved tracking and reporting capabilities, which will make it
easier for the jurisdictions to use the system to track preventive
maintenance work orders, as well as develop cost performance measures.
However, the new CAFM system must be used in conjunction with a new cost
accounting system (as noted above, development and implementation of this
system has been delayed) before AOC will be able to fully utilize data
provided by the new CAFM system.

o Consolidating service contracts to save money on contract
administration: AOC jurisdictions consolidate contracts for some services,
such as elevator maintenance and hazardous waste disposal. Currently, 20
percent of services conducted in multiple jurisdictions are under
consolidated contracts. Contract consolidation can save money because the
administrative functions for the contract are centralized; AOC could also
gain from additional economies of scale. AOC officials acknowledge that
there are additional opportunities for consolidation, including window
cleaning and fire alarm testing and certification.

o Standardizing facility inspection practices to make inspections
consistent across jurisdictions: AOC has a comprehensive, jurisdictionwide
inspection program. For example, over 95 percent of AOC's assets are being
inspected through modes such as FCAs and Night Custodial Inspections.
Although jurisdictions currently conduct inspections independently using
their own procedures, AOC plans to evaluate the inspections and merge them
into a comprehensive inspection manual that standardizes the preferred
inspection procedures across jurisdictions. According to AOC officials,
the standardization of inspections across jurisdictions will help ensure
that inspections are performed consistently across jurisdictions and that
they are completed as efficiently as possible using a minimum of
resources.

Recommendations Made in December 2005 and January 2006 Briefings

To improve how AOC measures its performance in the areas of timeliness and
cost, the agency should:

o develop and track more specific timeliness measures that more accurately
reflect the amount of time required to complete tasks;

o develop the capability to comprehensively and routinely track cost
measures; and

o benchmark appropriate existing and new performance measures against
those of similar institutions, such as the Smithsonian Institution and
state capitols.

AOC should use the new CAFM system to track preventive maintenance and
demand work orders across all jurisdictions, including the time taken to
complete work orders.

AOC generally agreed with our findings and the areas identified for
improvement, such as developing cost measures, benchmarking, and tracking
preventive maintenance work orders. AOC officials noted that they also had
identified these areas and have taken steps toward implementing
improvements.

Status of AOC's Progress on Recommendations Appendix IV

The following table includes all recommendations made as part of our
general management review. In addition, the table includes new
recommendations resulting from our reviews of project management and
facilities management. For recommendations that have been implemented, the
"status" column includes the month and year of the GAO report that
acknowledges the completion of that recommendation.

Table 1:

GAO Recommendation                                      Status             
Strategic management                                    
1. Improve strategic        Making progress: AOC has   
planning and organizational involved congressional and 
alignment by involving key  other stakeholders in      
congressional and other     strategic planning efforts 
external stakeholders in    and organizational         
AOC's strategic planning    changes. For example, AOC  
efforts and in any          sought input and guidance  
organizational changes that from congressional         
may result from these       stakeholders and GAO on    
efforts.                    its efforts to align its   
                               activities, core           
Jan. 2003                   processes, and resources   
                               with its mission and       
                               strategic goals, which     
                               resulted in a revised      
                               organizational structure.  
                               In addition, AOC has       
                               shared its strategic plan  
                               and its performance plan   
                               with its congressional and 
                               other stakeholders and has 
                               received guidance on how   
                               to improve future reports. 
                               AOC has also worked with   
                               congressional and other    
                               stakeholders on several    
                               management changes such as 
                               instituting a Capitol      
                               Visitor's Center Executive 
                               Director and a Director of 
                               Congressional and External 
                               Relations. In a November   
                               2005 letter to             
                               appropriators, the         
                               Architect of the Capitol   
                               provided an update on      
                               several key strategic      
                               planning efforts and plans 
                               for fiscal year 2006. The  
                               Acting COO currently       
                               provides periodic          
                               briefings to congressional 
                               stakeholders including     
                               information on updates to  
                               the strategic plan. AOC is 
                               in the process of hiring a 
                               permanent COO, who will be 
                               responsible for continuing 
                               to consult with Congress   
                               on AOC's strategic         
                               planning efforts and       
                               organizational changes.    
2. To strengthen the        Making progress: Although  
relationship between AOC    AOC has not developed a    
and its congressional and   comprehensive set of       
other stakeholders, we      performance measures, the  
recommend that the          agency has developed a     
Architect of the Capitol    document-the AOC           
direct the COO to actively  dashboard-that summarizes  
consult with Congress on    performance in each of its 
the design and              strategic focus areas:     
implementation of           project management,        
meaningful outcome-based    facilities management,     
and performance-based       human capital management,  
measures that are useful to and organizational         
both AOC and Congress. This excellence. The dashboard  
will enable AOC and         includes several           
Congress to assess AOC's    high-level indicators to   
progress.                   track performance for each 
                               of the strategic goals as  
Aug. 2004                   well as a target goal for  
                               each indicator. AOC plans  
                               to revise goals and        
                               objectives and assign      
                               measures to each area in   
                               fiscal year 2006. AOC is   
                               in the process of hiring a 
                               permanent COO, who will be 
                               responsible for consulting 
                               with Congress and          
                               communicating AOC's        
                               progress on the design and 
                               implementation of a        
                               comprehensive set of       
                               outcome-based and          
                               performance-based          
                               measures.                  
GAO Recommendation                                      Status             
3. Develop a comprehensive  Implemented February 2006: 
strategy to improve         AOC has established a      
internal and external       process for obtaining      
communications by providing employee input and         
opportunities for routine   feedback and finalized a   
employee input and          process manual for         
feedback.                   employee feedback. The     
                               process manual provides    
Jan. 2003                   guidance for obtaining     
                               employee feedback using a  
                               four-step approach:        
                               identifying concerns,      
                               obtaining data, giving     
                               feedback, and following up 
                               on results. The process    
                               manual also details        
                               responsibilities for staff 
                               and provides an            
                               implementation plan. While 
                               AOC has provided           
                               opportunities for routine  
                               employee feedback, it is   
                               important for AOC to       
                               collect a consistent and   
                               comprehensive set of data  
                               on a regular basis in      
                               order to monitor progress  
                               against an established     
                               baseline.                  
4. Gather and analyze       Implemented February 2006: 
employee feedback from      AOC held focus group       
focus groups or surveys     sessions in September 2004 
before fiscal year 2005, as and has communicated       
well as communicate how it  planned actions to         
is taking actions to        employees by issuing three 
address any identified      brochures. According to    
employee concerns.          AOC, it has begun to       
                               implement several of the   
Jan. 2004                   planned actions and will   
                               continue to communicate    
                               with employees as each     
                               action plan is             
                               implemented. In addition,  
                               AOC has issued a focus     
                               group guide that outlines  
                               procedures for conducting  
                               focus groups and reporting 
                               on the results.            
5. To improve               Implemented February 2006: 
communications with         AOC implemented the basic  
employees, we recommend     framework in its           
that the Architect of the   communications plan        
Capitol direct the COO to   through a variety of       
fully and effectively       communication methods to   
implement the basic         convey information to      
framework as defined in its employees including a      
communications plan and     weekly newsletter on       
process manuals, and        project updates, policy    
finalize its draft employee announcements, management  
feedback manual to assure   and communication tips,    
that the current progress   and other agencywide       
already made is maintained. messages. AOC has also     
                               distributed a process      
Aug. 2004                   manual for employee        
                               feedback.                  
6. Develop a comprehensive  Making progress: According 
strategy to improve         to AOC officials, the      
internal and external       protocols that AOC drafted 
communications by           were not considered to be  
completing the development  viable by congressional    
of congressional protocols  stakeholders. AOC is       
by involving stakeholders.  developing an alternative  
                               to formal protocols by     
Jan. 2003                   documenting internal       
7. Conduct a pilot of its   procedures for             
congressional protocols in  communicating with         
one or more of its          congressional staff such   
jurisdictions to determine  as returning calls within  
how well its protocols      24 hours and written       
                               requests within 5 days.    
would work in addressing    AOC's Acting COO/CFO       
customer requests for       explained that this effort 
service, while balancing    would help clarify service 
the need of multiple        and expectation levels.    
requests with the strategic                            
plan and corresponding                                 
project priorities of the                              
agency.                                                
                                                          
Jan. 2004                                              
8. Develop a comprehensive  Implemented February 2006: 
strategy to improve         AOC has fulfilled our      
internal and external       recommendation through the 
communications by improving release of its fiscal year 
annual accountability       2003 accountability report 
reporting through annual    and its plans to publish   
performance planning and    its fiscal year 2004       
reporting.                  accountability report and  
                               fiscal year 2005           
Jan. 2003                   performance and            
                               accountability report. In  
                               addition, AOC released a   
                               performance plan in April  
                               2005 that details steps to 
                               achieve its strategic      
                               goals and objectives. AOC  
                               staff, AOC Audit Committee 
                               staff, GAO, and other      
                               congressional stakeholders 
                               are involved in the        
                               development of these       
                               reports. AOC plans to      
                               monitor the progress       
                               toward meeting milestones  
                               outlined in its            
                               performance plan through   
                               monthly assessment         
                               meetings.                  
GAO Recommendation                                      Status             
9. Develop a comprehensive  Implemented January 2004a: 
strategy to improve         AOC fulfilled our          
internal and external       recommendation by          
communications by           implementing the annual    
continuing to regularly     building services customer 
measure customer            satisfaction survey.       
satisfaction AOC-wide.      Information from the       
                               survey will be             
Jan. 2003                   incorporated into AOC's    
                               business plan and will be  
                               useful in monitoring the   
                               quality of AOC's services  
                               and the progress of AOC's  
                               improvement initiatives.   
10. To strengthen the       Implemented February 2006: 
relationship between AOC    AOC has fulfilled our      
and its congressional and   recommendation by          
other stakeholders, we      releasing the results of   
recommend that the          the 2003  building         
Architect of the Capitol    services customer          
direct the COO to expedite  satisfaction survey in its 
the release of the 2003     2004 report. The report    
building services customer  tracked customer           
satisfaction survey, as a   satisfaction between 2002  
transparency and            and 2004. In addition, AOC 
accountability mechanism    provided customers with    
and to provide Congress and letters detailing actions  
other stakeholders          planned to address their   
assurance that actions are  concerns.                  
being taken in response to                             
their feedback.                                        
                                                          
Aug. 2004                                              
11. Establish               Implemented January 2004a: 
action-oriented             AOC fulfilled our          
implementation goals over   recommendation by issuing  
the long term and a time    its draft performance plan 
line with milestone dates   in March 2003, which was   
to track the organization's prepared to satisfy a      
progress towards achieving  congressional requirement  
those implementation goals. for the development of a   
The Architect of the        management improvement     
Capitol should work with    plan. This draft           
key congressional and other performance plan for       
stakeholders to develop     fiscal years 2003-2007     
plans.                      established                
                               action-oriented            
Jan. 2003                   implementation goals over  
                               the long term and a time   
                               line with milestone dates  
                               to track the               
                               organization's progress    
                               toward achieving those     
                               goals.                     
GAO Recommendation                                      Status             
12. To enhance the          Making progress: AOC       
usefulness of the COO       cannot fully implement     
action plan, we recommend   this recommendation until  
that the Architect of the   a permanent COO is in      
Capitol and the COO consult place. In the interim, AOC 
with members of Congress    has made initial progress  
and key committees on the   in addressing elements of  
specific information        AOC project management     
regarding AOC's plans,      that were recommended to   
policies, procedures,       be included in the action  
actions, and proposed       plan. For example, AOC has 
organizational changes. As  implemented a process to   
part of this effort, the    prioritize projects. To    
Architect and the COO       monitor projects, AOC has  
should work with Congress   issued quarterly reports   
to determine Congress's     to Congress on the cost    
information needs and the   and schedule of active     
timing and format of        projects, including        
delivery of that            real-time performance      
information that will best  metrics and budgetary-risk 
meet Congress's needs.      forecasting, based on      
Furthermore, consistent     feedback from              
with our findings and       congressional staff. To    
recommendations with        benefit from lessons       
respect to congressional    learned, AOC has developed 
and other stakeholder       a design services survey   
involvement in general and  and has plans to implement 
the Capitol complex master  a construction services    
plan in particular, as well survey. To improve         
as our original January     accountability, AOC has    
2003 management review,     established a project      
specific emphasis should be management organization    
placed on AOC's project     with a project manager     
management. Particular      dedicated to each project  
issues to be discussed      from start to finish.      
could include how:          AOC's Director of Project  
                               Management holds periodic  
AOC's projects' priorities  briefings with             
are determined;             congressional staff in     
                               order to better understand 
AOC monitors and controls   their information needs as 
project cost, quality, and  it relates to project      
timeliness;                 reporting. In addition,    
                               project performance        
AOC uses lessons learned    measures are included in a 
from projects and seeks to  document called the AOC    
incorporate best practices; dashboard that summarizes  
                               performance in each of its 
project management          strategic focus areas.     
accountability is assigned                             
and managed; and            Once a permanent COO is in 
                               place, AOC leadership      
AOC determines the best mix needs to complete an       
of in-house and contractor  action plan that addresses 
support when designing      items outlined in this     
projects.                   recommendation. Time       
                               frames, action items,      
Subsequent COO action plans issues, progress, and      
and status reports will     milestones on each of      
likely be most helpful to   these items should be      
Congress to the extent that included as key elements   
they are rigorously         in the action plan. GAO    
specific as to the problem  continues to believe that  
or issue that needs to be   it is critical for the new 
addressed, the actions that COO to actively consult    
are being taken in          with members of Congress   
response, the progress to   and key committees on the  
date, and milestones for    development and            
additional actions.         implementation of this     
                               plan, including providing  
Aug. 2004                   specific information on    
                               AOC's plans, policies,     
                               procedures, actions, and   
                               proposed organizational    
                               changes.                   
13. Further refine its      Making progress: AOC has   
employee feedback efforts   established the results of 
by establishing a method(s) its 2004 focus groups as a 
to collect consistent and   baseline for its work      
comprehensive information   environment assessment.    
on a regular basis and to   According to AOC, its      
allow AOC to track results  Quality Management group   
over time against an        will issue a specific      
established baseline.       guide to consistently      
                               follow up the work         
Oct. 2005                   environment assessment as  
                               a separate effort from the 
                               regular annual employee    
                               feedback research. AOC     
                               does not plan to follow up 
                               on its focus groups for at 
                               least three years.         
14. Improve its             Making progress: AOC's     
communications strategy for Quality Management group   
employee feedback (as       has prepared a second      
documented in its employee  version of the employee    
feedback manual) to ensure  feedback process manual to 
that employees and external reflect GAO                
stakeholders receive an     recommendations on         
adequate level of detail    stakeholder communication. 
about employee feedback     As of December 2005, the   
initiative results and      manual is undergoing       
related agency actions in a review by the quality      
timely manner. The          council prior to being     
communications strategy     submitted for signature.   
should also emphasize the                              
need to summarize the                                  
documents and provide a                                
consistent level of detail.                            
                                                          
Oct. 2005                                              
GAO Recommendation                                      Status             
Human Capital Management    
15. Strengthen performance  Implemented February 2006: 
measurement and strategic   AOC has implemented a      
human capital management by performance management     
developing annual goals and approach that includes     
measuring performance.      strategic planning, annual 
                               performance planning and   
Jan. 2003                   reporting, and assessment  
                               of AOC's progress in       
                               meeting agencywide         
                               milestones and measures.   
                               AOC has identified four    
                               strategic goals:           
                               facilities management,     
                               project management, human  
                               capital management, and    
                               organizational excellence. 
                               AOC has also identified a  
                               number of measures to      
                               monitor and evaluate       
                               performance, and these     
                               measures will serve as the 
                               basis for employees'       
                               annual performance goals   
                               as well as the assessment  
                               of AOC's overall success   
                               in meeting its strategic   
                               goals. The measures        
                               include quality facility   
                               management; projects       
                               delivered on time, on      
                               budget, and of high        
                               quality; highly skilled    
                               and motivated employees;   
                               and effects of managerial  
                               oversight. In addition,    
                               AOC has developed a        
                               document-the AOC           
                               dashboard-that summarizes  
                               performance in each of its 
                               strategic focus areas:     
                               project management,        
                               facilities management,     
                               human capital management,  
                               and organizational         
                               excellence. The dashboard  
                               includes several           
                               high-level indicators to   
                               track performance for each 
                               of the strategic goals as  
                               well as a target goal for  
                               each indicator.            
16. Strengthen performance  Implemented February 2006: 
measurement and strategic   AOC has fulfilled this     
human capital management by recommendation. AOC's      
creating "a line of sight"  senior executive           
linking AOC's senior        performance management     
executive and employee      system and its employee    
performance management      performance evaluation     
systems to mission-critical system are linked to AOC's 
goals.                      mission-critical goals.    
                               Employees are expected to  
Jan. 2003                   ensure completion of a     
                               performance plan that      
                               outlines performance       
                               standards for each         
                               critical task related to   
                               the employee's position.   
                               The employee's performance 
                               is evaluated against the   
                               established performance    
                               plan as it relates to      
                               AOC's strategic goals and  
                               objectives. The employee   
                               is given a rating of       
                               "outstanding," "fully      
                               successful," or            
                               "unsuccessful" for each    
                               element, as well as a      
                               summary rating.            
17. Strengthen performance  Making progress: AOC has   
measurement and strategic   identified core            
human capital management by competencies for all       
establishing agencywide     positions. AOC is in the   
core and technical          process of developing      
competencies and holding    competencies for all AOC   
employees accountable for   employees through the use  
these competencies as a     of a skills survey. AOC's  
part of the performance     Workforce Planning and     
management system.          Management Office will     
                               compare the survey results 
Jan. 2003                   with established           
                               competencies before        
                               including the competencies 
                               in its evaluation system.  
18. Strengthen performance  Making progress: AOC's     
measurement and strategic   Workforce Planning and     
human capital management by Management Office has      
developing the capacity to  identified numerous ways   
collect and analyze         to collect, report, and    
workforce data.             analyze workforce data.    
                               Several data sources have  
Jan. 2003                   been identified and used   
                               for analysis, resulting in 
                               reports on the agency's    
                               workforce, such as         
                               retirement reports. AOC    
                               plans to use the           
                               information in these       
                               reports for agencywide     
                               planning. AOC has          
                               developed a system to      
                               report and monitor         
                               full-time equivalents      
                               (FTEs). However, GAO       
                               continues to have concerns 
                               about the reliability of   
                               the data AOC is            
                               collecting, particularly   
                               related to AOC's ability   
                               to estimate, track, and    
                               report on FTEs.            
19. Strengthen performance  Making progress: AOC's     
measurement and strategic   Workforce Planning and     
human capital management by Management Office recently 
identifying current and     developed a report on      
future workforce needs and  agencywide retirement that 
developing strategies to    forecasts future workforce 
fill gaps.                  needs on the basis of      
                               anticipated retirements,   
Jan. 2003                   turnover trends, and       
                               historical hiring          
                               practices. AOC plans to    
                               use the report's findings  
                               to identify gaps in        
                               current and future         
                               workforce needs. AOC needs 
                               to develop strategies to   
                               address workforce gaps.    
GAO Recommendation                                      Status             
20. Strengthen AOC's human  Implemented February 2006: 
capital policies,           AOC has approved a policy  
procedures, and processes   development schedule to    
by continuing to develop    revise human capital       
and implement agencywide    policies as part of its    
human capital policies and  human capital plan. In     
procedures and holding      addition, AOC developed a  
management and employees    document for supervisors,  
accountable for following   Supervisors' Tools of the  
these policies and          Trade, which provides      
procedures.                 supplemental guidance on   
                               human capital policies as  
Jan. 2003                   needed. Supervisors are    
                               rated for performance in   
                               human capital management   
                               as part of AOC's           
                               evaluation system.         
                               However, it is important   
                               that AOC continue to       
                               monitor whether            
                               supervisors and managers   
                               are fairly administering   
                               the policies as the        
                               revisions are implemented. 
21. Strengthen AOC's human  Implemented February 2006: 
capital policies,           AOC has fulfilled this     
procedures, and processes   recommendation by holding  
by assessing ways in which  monthly meetings between   
AOC management could better the Human Resources        
gather and analyze data     Director, Equal Employment 
from the various employee   Opportunity and            
relations offices and       Conciliation Program       
employee advisory council   Director, the chair of the 
while maintaining employee  employee advisory council  
confidentiality.            and the employment         
                               council, and the employee  
Jan. 2003                   assistance program manager 
                               and the Deputy Chief of    
                               Staff to review and        
                               discuss employee relations 
                               data. The group makes      
                               recommendations to senior  
                               management based on        
                               findings and takes action  
                               on the items. According to 
                               AOC, the importance of     
                               maintaining employee       
                               confidentiality is         
                               emphasized at each         
                               meeting.                   
22. To improve              Closed - not implemented:  
communications with         Although AOC has not       
employees, we recommend     completed an assessment of 
that the Architect of the   the capacity of existing   
Capitol direct the COO to   offices to resolve         
conduct an analysis of both employee concerns and      
AOC management and employee issues and does not plan   
needs with respect to       to do so, the agency has   
resolving employee concerns implemented a variety of   
and issues, as well as      mechanisms to resolve      
assessing the capacity of   employee concerns and      
existing offices to fulfill issues. According to AOC,  
those needs.                multiple offices and       
                               programs address employee  
Aug. 2004                   concerns and issues,       
                               including the Equal        
                               Employment Office, the     
                               Employee Assistance        
                               Programs, the standard     
                               grievance process, and the 
                               external Office of         
                               Compliance process. In     
                               addition, AOC holds        
                               monthly meetings between   
                               representatives of these   
                               offices to review and      
                               discuss employee relations 
                               data. The group makes      
                               recommendations to senior  
                               management based on        
                               findings and takes action  
                               on the items. Employees in 
                               bargaining units are also  
                               represented by the union   
                               and have a process in      
                               place to resolve           
                               individual employee        
                               issues. In October 2005,   
                               AOC issued a brochure to   
                               all employees on all Equal 
                               Employment Office policies 
                               and the available          
                               programs. In addition, AOC 
                               is currently developing a  
                               proposal that would        
                               establish a mediation      
                               program as part of AOC's   
                               operational business       
                               strategy. After            
                               implementing the pilot     
                               program, AOC plans to      
                               assess its use and         
                               effectiveness and make any 
                               needed modifications       
                               before making it a         
                               permanent program and      
                               expanding the group of     
                               trained mediators. AOC     
                               should continue to monitor 
                               the effectiveness of the   
                               programs through employee  
                               feedback.                  
23. Establish a direct      Implemented February 2006: 
reporting relationship      AOC has not had an         
between the ombudsperson    ombudsperson on staff for  
and the Architect of the    several years. According   
Capitol consistent with     to AOC, if an ombudsperson 
professional standards.     is needed, a direct        
                               reporting relationship     
Jan. 2003                   between the ombudsperson   
                               and the Architect would be 
                               established once hired.    
GAO Recommendation                                      Status             
Worker safety               
24. Identify performance    Making progress: Although  
measures for safety goals   AOC has made significant   
and objectives, including   progress to develop        
measures for how AOC will   written safety policies,   
implement the 43            full implementation of the 
specialized safety programs safety policies has not    
and how superintendents and occurred. As of December   
employees will be held      2005, 23 of AOC's 35       
accountable for achieving   safety policies have been  
results.a                   written and approved by    
                               the Architect's office.    
Jan. 2003                   The AOC has developed      
                               workbooks to help AOC      
                               staff implement the safety 
                               policies. AOC plans to     
                               include a schedule for     
                               releasing the remaining    
                               safety policies in the     
                               Office of Safety and       
                               Health Program Plan. GAO   
                               will continue to monitor   
                               the progress of the safety 
                               policies.                  
25. Establish clearly       Making progress: AOC has   
defined and documented      completed a job hazard     
policies and procedures for analysis (JHA) process     
reporting hazards similar   including describing the   
to those that apply to      steps associated with each 
injury and illness          job task, identifying      
reporting.                  potential hazards          
                               associated with each task, 
Jan. 2003                   developing appropriate     
                               controls to eliminate or   
                               reduce the hazards,        
                               developing a training      
                               program to perform JHAs,   
                               and assisting first-line   
                               supervisors with           
                               performing qualitative     
                               JHAs. In addition, AOC has 
                               completed a "step-by-step  
                               plan" that provides a      
                               general approach for       
                               jurisdictions to manage    
                               implementation of the JHA  
                               process. Finally, AOC has  
                               included a telephone       
                               number for reporting       
                               hazards in its monthly     
                               safety newsletters, which  
                               are distributed AOC-wide.  
                               AOC is currently in the    
                               process of finalizing its  
                               hazard assessment and      
                               control policy for         
                               distribution to agency     
                               reviewers.                 
26. Establish a consistent  Implemented February 2006: 
AOC-wide system for         AOC fulfilled this         
conducting investigations   recommendation with the    
and follow-up.              approval of its interim    
                               incident notification,     
Jan. 2003                   investigation, and         
                               reporting policy. AOC also 
                               implemented the incident   
                               analysis module, a         
                               component of the facility  
                               management assistant       
                               program. This module       
                               provides an electronic     
                               recordkeeping approach to  
                               track the investigation of 
                               incidents associated with  
                               AOC personnel and          
                               property. In addition, the 
                               module interfaces with the 
                               facility management        
                               assistant program by       
                               creating a deficiency      
                               report when corrective     
                               actions associated with an 
                               incident are identified.   
                               Moreover, an AOC-wide      
                               incident investigation     
                               form has been implemented  
                               across the jurisdictions.  
                               Finally, lessons learned   
                               are shared in a number of  
                               ways, including through    
                               AOC's safety support       
                               group.                     
27. Establish a             Implemented February 2006: 
safety-training curriculum  AOC has fulfilled this     
that fully supports all of  recommendation in          
the goals of the safety     establishing training that 
program and further         supports the goals of the  
evaluate the effectiveness  current safety policies.   
of the training provided.   For example, during the    
                               implementation review      
Jan. 2003                   process, AOC revalidated   
                               training requirements      
                               against regulatory         
                               requirements. Moreover,    
                               Safety Policy Managers     
                               have worked with the Human 
                               Resources Management       
                               Division (HRMD) to ensure  
                               that training required by  
                               upcoming policies has been 
                               identified. In addition,   
                               AOC has completed a        
                               training workbook exercise 
                               to assess the overall      
                               impact of required safety  
                               policy training on its     
                               budget. Also, central      
                               staff safety professionals 
                               continue to audit training 
                               courses and provide        
                               feedback to course         
                               instructors. Finally, the  
                               AOC has been using injury  
                               and illness data to        
                               identify training needs.   
28. Assign clear            Making progress: AOC has   
responsibility for tracking chosen a data management   
and recording training      system-AVUE-that will,     
received by AOC employees,  among other things, track  
including maintaining an    and record the training,   
inventory of employees'     licensing, and             
certifications and          certification requirements 
licenses.                   received by employees.     
                               Safety personnel have met  
Jan. 2003                   with AVUE designers to     
                               ensure that the designers  
                               fully understand AOC's     
                               safety training needs. AOC 
                               is working with AVUE to    
                               obtain a delivery          
                               schedule.                  
GAO Recommendation                                      Status             
29. Clarify and explore the Implemented February 2006: 
possibility of expanding    AOC has fulfilled this     
the role of the Office of   recommendation by working  
the Attending Physician     with OAP to ensure that    
(OAP) in helping AOC meet   the lists of medical       
its safety goals,           surveillance program       
consistent with the broad   participants are current.  
responsibilities laid out   In addition, OAP is        
in the 1998 Memorandum of   providing reports to AOC   
Understanding between AOC   jurisdictions when         
and OAP.                    employees are either (1)   
                               due or (2) past due for    
Jan. 2003                   their medical surveillance 
                               exams. AOC is also         
                               drafting a document on the 
                               scope of medical           
                               surveillance services to   
                               better define and          
                               communicate the agency's   
                               requirements to OAP to     
                               ensure a common            
                               understanding and set of   
                               expectations.              
30. Establish a senior      Implemented August 2004b:  
management work group that  AOC has fulfilled this     
will routinely discuss      recommendation by          
workers' compensation cases developing performance     
and costs, and develop      measures to assess the     
strategies to reduce these  long-term impact and       
injuries and costs.         trends of workers'         
                               compensation injuries and  
Jan. 2003                   costs. In addition,        
                               through the Safety,        
                               Health, and Environment    
                               Council (SHEC), safety and 
                               human resource officials   
                               are exchanging information 
                               and data in order to       
                               control workers'           
                               compensation injuries and  
                               costs. Finally, through    
                               SHEC, the relationship     
                               between safety and         
                               workers' compensation      
                               injuries and illnesses is  
                               being promoted.            
31. To enhance worker       Making progress: AOC plans 
safety performance measures to include safety-related  
at AOC, the Architect of    questions as part of an    
the Capitol should direct   agencywide work            
the COO to expand upon its  environment assessment.    
safety perception survey by AOC's Quality Management   
developing a more rigorous  group is currently         
methodological approach and developing a guide for     
collecting such information conducting the work        
on a more regular basis.    environment assessment.    
                               The worker safety          
Aug. 2004                   questions should be        
                               designed to elicit full    
                               and honest views on worker 
                               safety.                    
Recycling                   
32. Develop a clear mission Implemented February 2006: 
and goals for AOC's         AOC has fulfilled this     
recycling program with      recommendation. AOC        
input from key              drafted a mission          
congressional stakeholders  statement, goals, and      
as part of its proposed     performance measures for   
environmental master plan.  its recycling program and  
AOC may want to establish   shared this draft with     
reasonable goals based on   congressional              
the total waste             stakeholders. The mission  
stream-information it plans for the recycling program  
to obtain as part of its    is to foster an            
long-term environmental     environment that           
management plan-that could  encourages recycling by    
potentially be recycled.    the legislative branch     
                               staff through convenient   
Jan. 2003                   and efficient programs,    
                               resulting in the diversion 
                               of wastes from the solid   
                               waste stream. AOC          
                               established three main     
                               goals for its recycling    
                               program: (1) increase      
                               overall recycling rates by 
                               diverting office wastes,   
                               (2) increase overall       
                               recycling tonnage by       
                               diverting non-office       
                               wastes, and (3) improving  
                               communication and          
                               coordination among         
                               interested Legislative     
                               Branch agencies by         
                               establishing a recycling   
                               working group by the end   
                               of fiscal year 2006.       
33. To further assist AOC   Implemented February 2006: 
in developing a more        AOC has fulfilled this     
strategic approach for its  recommendation. AOC relied 
recycling programs and to   on input from internal and 
ensure that congressional   external stakeholders,     
input is obtained when it   including congressional    
would be most useful, we    stakeholders, to assist in 
recommend that the          the development of the     
Architect of the Capitol    mission, goals, and        
direct the COO to obtain    performance measures as    
preliminary input from      part of its recycling      
congressional stakeholders  program.                   
on its environmental                                   
program plan-particularly                              
as the plan relates to the                             
mission and goals of AOC's                             
recycling programs-prior to                            
the completion of the plan.                            
                                                          
Aug. 2004                                              
GAO Recommendation                                      Status             
34. Develop a performance   Making progress: AOC       
measurement, monitoring,    submitted performance      
and evaluation system that  measures that support the  
supports accomplishing      recycling program mission  
AOC's recycling mission and and goals to congressional 
goals.                      stakeholders on November   
                               3, 2005. AOC plans to      
Jan. 2003                   evaluate the impact of the 
                               new performance measures   
                               on its current evaluation  
                               criteria and will make     
                               changes as needed in 2006. 
                               Recycling managers are     
                               currently rated in AOC's   
                               evaluation system for      
                               success in several         
                               recycling-related tasks.   
                               In addition, AOC has an    
                               environmental services     
                               indefinite-delivery,       
                               indefinite-quantity        
                               contract that, according   
                               to AOC, will allow for the 
                               quick procurement of       
                               consultant services and    
                               other services in support  
                               of the implementation      
                               plan.                      
35. Examine the roles and   Making progress: AOC has   
responsibilities of AOC's   included recycling tasks   
recycling program staff to  in position descriptions   
ensure that they are        and has included recycling 
performing the right jobs   responsibilities for       
with the necessary          supervisors in its         
authority, and holding the  evaluation system. For     
staff accountable for       example, the performance   
achieving program and       evaluation system includes 
agency results through      recycling objectives in    
AOC's performance           the ratings of recycling   
management system.          managers. In addition, AOC 
                               has included recycling as  
Jan. 2003                   an objective in its        
                               business plan for the      
                               House and Senate. AOC      
                               plans to evaluate the      
                               impact of the new          
                               performance measures on    
                               its current evaluation     
                               criteria and will make     
                               changes as needed in 2006. 
Financial management        
36. Continue to improve     Making progress: AOC       
AOC's approach to financial continues to make progress 
management by developing    institutionalizing         
strategies to               financial management best  
institutionalize financial  practices to support       
management practices that   efforts to improve         
will support budgeting,     budgeting, financial       
financial, and program      management, and program    
management at AOC. Such     management. AOC continued  
strategies could include    its efforts to annually    
developing performance      produce audited financial  
goals and measures and      statements and took action 
associated roles aimed at   in March 2005 to authorize 
increasing the              the development of an      
accountability of           AOC-wide internal control  
nonfinancial managers and   framework. To date, AOC    
staff, such as              reports that it has        
jurisdictional              partially completed the    
superintendents, program    development of this        
managers, and other AOC     framework. Also, important 
staff-whose support is      work has begun to identify 
critical to the success of  changes to systems,        
AOC's financial management  procedures, and reporting  
initiatives-and ensuring    methods needed to          
that these staff received   implement a new financial, 
the training needed to      cost, and performance      
effectively carry out their reporting system (the cost 
roles and responsibilities. accounting system), which  
                               is intended to provide     
Jan. 2003                   operating managers with    
                               timely and useful          
                               information to enhance     
                               their management and       
                               oversight. However, AOC's  
                               progress has been slower   
                               than originally            
                               anticipated and            
                               insufficient resources     
                               have delayed               
                               implementation of these    
                               initiatives. As a result,  
                               significant work remains   
                               to be done to successfully 
                               implement many of the      
                               initiatives and,           
                               collectively, to           
                               institutionalize the range 
                               of financial management    
                               best practices envisioned  
                               by this recommendation. To 
                               do so, it is imperative    
                               that adequate resources be 
                               continually identified and 
                               provided to implement and  
                               maintain these improvement 
                               efforts. The initiatives   
                               represent significant      
                               cultural and operational   
                               changes that will directly 
                               affect many of AOC's       
                               operations. Successfully   
                               dealing with these changes 
                               will require strong and    
                               visible senior management  
                               support to help ensure     
                               that the initiatives'      
                               implementation is          
                               effectively monitored and  
                               that, if necessary,        
                               actions are taken to keep  
                               the implementation on      
                               track. The Office of the   
                               CFO has thus far relied    
                               extensively on contractor  
                               support to plan and        
                               initiate actions needed to 
                               implement many of these    
                               initiatives. By not having 
                               AOC staff resources        
                               actively involved in the   
                               planning stages of these   
                               important accountability   
                               initiatives serves to      
                               limit the transfer of      
                               institutional knowledge    
                               that was developed by the  
                               contractor to the AOC      
                               staff.                     
GAO Recommendation                                      Status             
37. To help strengthen and  Making progress:           
sustain AOC's emerging      Organizationally, AOC made 
foundation of financial     progress in strengthening  
accountability and control, its foundation of          
we recommend that the       financial accountability   
Architect of the Capitol,   and control by issuing its 
the COO, the Chief          first and second           
Financial Officer, and      agency-wide accountability 
other senior management     reports in December 2004   
provide strong and visible  and 2005, in which the     
support for efforts to      results of audits covering 
prepare auditable financial AOC's fiscal year 2003 and 
statements and implement an 2004 balance sheets,       
effective internal control  respectively, were         
framework by monitoring the presented; requesting a    
implementation and related  full scope audit of a      
milestones for each effort, complete set of financial  
ensuring the commitment to  statements and related     
and support to for each     footnote disclosures for   
effort by participating AOC fiscal year 2005;          
units, and acting to        beginning the development  
resolve any impediments     of an AOC-wide internal    
that may arise.             control framework.         
                                                          
Aug. 2004                   However, the extent of     
                               this progress has been     
                               limited because (1) the    
                               scope of the follow-up     
                               financial audit, which was 
                               originally planned to      
                               cover all of AOC's         
                               financial statements, was  
                               again limited to AOC's     
                               balance sheet, (2) the     
                               internal control           
                               framework, which was       
                               initially planned to be    
                               designed and authorized by 
                               the start of fiscal 2005,  
                               was authorized for         
                               development in March 2005, 
                               and (3) due to a lack of   
                               fiscal year 2006           
                               resources, development and 
                               implementation work on the 
                               internal control framework 
                               has been delayed. Based on 
                               what we have learned, we   
                               believe AOC's schedule for 
                               full implementation of     
                               this framework (June 2006) 
                               will likely slip. While    
                               these initiatives reflect  
                               a degree of progress,      
                               until they are implemented 
                               AOC will continue to face  
                               increased risk in          
                               financial management and   
                               in its program operations. 
                                                          
                               The AOC received an        
                               unqualified or "clean"     
                               opinion on its balance     
                               sheets for fiscal years    
                               2003 and 2004. However,    
                               both of these audits       
                               identified a number of     
                               internal control           
                               weaknesses that AOC has    
                               been working to correct,   
                               the 2003 auditor's report  
                               included weaknesses in the 
                               areas of: capitalizing     
                               work-in-process expenses,  
                               allocating overhead to     
                               project costs, accounts    
                               payable cutoff, capital    
                               and operating leases,      
                               payroll record retention,  
                               and information technology 
                               controls. As reported in   
                               AOC's 2004 Accountability  
                               Report, the AOC has fully  
                               addressed six out of seven 
                               material weaknesses        
                               reported in the 2003       
                               report. In the fiscal year 
                               2004 auditor's report, the 
                               auditor's reported         
                               weaknesses in the areas    
                               of: (1) Internal Control   
                               Assessments - AOC lacks a  
                               formal and systematic      
                               process to assess and      
                               evaluate the design and    
                               operation of internal      
                               controls, (2) Annual Leave 
                               - AOC lacks controls to    
                               ensure differences in      
                               leave balances across      
                               systems were identified,   
                               manual adjustments were    
                               approved, monitored, and   
                               reversed upon system       
                               posting, and leave earning 
                               rates were consistent with 
                               years in service, (3)      
                               Timekeeping Controls - AOC 
                               did not have effective     
                               controls over time and     
                               attendance processing to   
                               detect time charge         
                               modifications after        
                               supervisory approval had   
                               been made, to require      
                               employees and supervisors  
                               to regularly sign and      
                               attest to the accuracy of  
                               timesheets, (4)            
                               Construction               
                               Work-In-Process (this      
                               weakness was also reported 
                               in the fiscal year 2003    
                               audit report of the CVC    
                               Base Building) - AOC does  
                               not maintain a formal      
                               system that ensures        
                               execution of a contract or 
                               modification before the    
                               initiation of work, (5)    
                               Capital and Operating      
                               Leases - AOC does not have 
                               an effective policy to     
                               timely identify the        
                               execution or modification  
                               of lease agreements and    
                               perform the requisite      
                               analyses to determine if   
                               they are capital or        
                               operating leases for       
                               financial reporting, and   
                               (6) Information Technology 
                               Controls - AOC does not    
                               have an                    
GAO Recommendation                                      Status             
                                                           effective          
                                                           information system 
                                                           security program   
                                                           resulting in       
                                                           weaknesses in      
                                                           their information  
                                                           system control     
                                                           environment.       
                                                                              
                                                           With regard to the 
                                                           specific focus of  
                                                           this               
                                                           recommendation-the 
                                                           need for visible   
                                                           and strong senior  
                                                           management support 
                                                           for audit and      
                                                           internal control   
                                                           initiatives-senior 
                                                           management will    
                                                           need to increase   
                                                           its focus on       
                                                           managing and       
                                                           overseeing these   
                                                           important          
                                                           accountability and 
                                                           control            
                                                           initiatives that   
                                                           are in process in  
                                                           order to help      
                                                           ensure their       
                                                           success.           
38. To enhance the          Making progress:           
successful development of   Organizationally, AOC has  
useful financial, cost, and made progress in           
performance reporting for   developing a cost          
major operating units and   accounting system and      
appropriate cost            useful financial and       
accounting, we recommend    performance reports for    
that the Architect of the   major operating units. The 
Capitol direct the COO and  Office of the CFO reports  
the Chief Financial Officer progress in conducting     
to work with operating      analyses designed to       
managers to assess the      identify the changes       
usefulness of               needed to improve cost and 
financial-statement-level   performance-based          
information, take an active management, systems, and   
role in AOC near-term       reporting methods. The     
efforts to develop          analyses-performed by      
agencywide performance      outside                    
measures, and review all    contractors-assessed the   
available options to        current cost and reporting 
determine whether           systems and made           
substantial work can begin, recommendations related to 
prior to fiscal year 2006,  defining common lines of   
on the analyses needed to   business and activities,   
identify changes necessary  identifying                
to implement useful cost    activity-related outputs,  
accounting at AOC.          and linking activities and 
                               outputs to strategic goals 
Aug. 2004                   and performance outcomes.  
                               Acknowledging that         
                               financial-statement-level  
                               information was not        
                               directly useful to line    
                               managers, the Office of    
                               the CFO has met with the   
                               jurisdictions to identify  
                               financial-related          
                               information and reports    
                               that managers can use to   
                               enhance their operational  
                               management and oversight.  
                                                          
                               AOC management was briefed 
                               on the results of the      
                               analyses and related       
                               recommendations and plans  
                               to implement the new       
                               performance-based system   
                               in phases to make an       
                               orderly transition from    
                               the current budget-based   
                               financial system. Those    
                               plans include pilot        
                               deployment of an interim   
                               cost structure for         
                               managers through fiscal    
                               year 2006, followed by the 
                               development of a structure 
                               for General and            
                               Administrative cost        
                               reporting, and development 
                               of a structure for         
                               jurisdictional services in 
                               fiscal year 2007.          
                               Currently, due to lack of  
                               fiscal year 2006 resources 
                               all work being performed   
                               by the contractor has been 
                               delayed. AOC plans to      
                               resume work using in-house 
                               staff whose positions have 
                               been funded and approved,  
                               but currently these        
                               positions remain unfilled. 
                               AOC plans to request       
                               fiscal year 2007 funds to  
                               continue involvement of    
                               the contractor to work     
                               with this staff going      
                               forward on an "as needed"  
                               basis. It is likely that   
                               this shortage of resources 
                               will delay the scheduled   
                               date (9/30/2006) for full  
                               system implementation.     
                               With regard to the focus   
                               of this                    
                               recommendation-that the    
                               COO and the CFO work with  
                               operating managers on each 
                               of these initiatives-the   
                               Acting COO/CFO will need   
                               to closely monitor and     
                               oversee the development of 
                               these initiatives and work 
                               to ensure that managers    
                               use the information to     
                               improve their operational  
                               management and oversight.  
GAO Recommendation                                      Status             
39. To enhance the          Making progress: As noted  
successful development of   in our analysis of AOC's   
useful financial, cost, and progress in implementing   
performance reporting for   the previous               
major operating units and   recommendation, AOC has    
appropriate cost            made progress in efforts   
accounting, we recommend    to develop cost accounting 
that the Architect of the   and useful financial,      
Capitol direct the COO and  cost, and performance      
the CFO to have senior      reporting for major        
management visibly          operating units. However,  
demonstrate its continuing  with regard to the focus   
commitment to and support   of this recommendation-the 
for making AOC-wide system, need for senior management 
procedural, and cultural    to visibly demonstrate its 
changes necessary to        continuing commitment to   
provide managers with       and support for the        
timely financial, cost, and changes needed to          
performance information by  implement these important  
monitoring the efforts'     management initiatives by  
implementation and related  monitoring implementation  
milestones, ensuring the    efforts, ensuring the      
commitment to and support   commitment and support of  
for the efforts by          participating AOC units,   
participating AOC units,    and acting to resolve any  
and acting to resolve any   impediments that may       
impediments that may arise. arise-AOC senior           
                               management will need to    
Aug. 2004                   take concerted action to   
                               visibly demonstrate its    
                               commitment and support to  
                               making the AOC-wide        
                               system, procedural, and    
                               cultural changes necessary 
                               to provide managers with   
                               timely financial, cost,    
                               and performance            
                               information needed to      
                               improve their oversight    
                               and management of          
                               operations.                
                                                          
                               With many of AOC's top     
                               leadership positions       
                               currently vacant,          
                               including the COO, the     
                               CFO, the Director of       
                               Congressional and External 
                               Relations, and the         
                               Director of Planning and   
                               Project Management, AOC    
                               will have difficulties in  
                               the short-term effectively 
                               achieving the level of     
                               leadership called for by   
                               this recommendation.       
                               Furthermore, the term for  
                               the current Architect of   
                               the Capitol will expire in 
                               less than a year. In an    
                               attempt to mitigate the    
                               impact of so many          
                               vacancies in key           
                               leadership positions, AOC  
                               recently appointed an      
                               Acting COO, and asked this 
                               individual to also         
                               temporarily fill the       
                               position of the Acting CFO 
                               to guide the agency's      
                               transformation efforts     
                               until qualified permanent  
                               candidates can be hired.   
                               It is essential for AOC to 
                               quickly fill the           
                               management positions that  
                               are currently vacant to    
                               sustain improvements that  
                               have already been          
                               achieved, support further  
                               transformation efforts,    
                               and have a cohesive        
                               management team in place   
                               in the event of a turnover 
                               in the position of the     
                               Architect of the Capitol.  
Information technology      
management                  
40. Establish a chief       Implemented January 2004a: 
information officer or      AOC fulfilled this         
comparable senior           recommendation by issuing  
executive, with the         a centralized IT           
responsibility, authority,  management policy that     
and adequate resources for  assigned a senior          
managing IT across the      executive-namely, the      
agency, who is a full       Office of Information and  
participant in AOC's senior Resource Management (OIRM) 
decision making processes   director-the role,         
and has clearly defined     responsibility and         
roles, responsibilities,    authority for managing IT  
and accountabilities.       across the agency,         
                               including the development, 
Jan. 2003                   management, and oversight  
                               of IT. In addition, the    
                               policy made the OIRM       
                               director a key participant 
                               in executive decision      
                               making, such as serving as 
                               the principal adviser to   
                               the Architect of the       
                               Capitol in applying IT to  
                               improve business           
                               processes. The OIRM        
                               director's role also       
                               includes controlling AOC's 
                               IT budget and chairing the 
                               IT project management      
                               board.                     
GAO Recommendation                                      Status             
41. Develop and implement   Making progress: The AOC   
IT investment management    IT investment review board 
processes with the full     charter was approved by    
support and participation   the Deputy Chief of Staff  
of AOC's senior leadership. in July 2004. This board   
Specifically, the Architect includes senior-level      
of the Capitol must develop managers across the        
a plan for developing and   agency. AOC reports that   
implementing the investment it is in the process of    
management processes, as    implementing a project     
appropriate, that are       review board to oversee    
outlined in our IT          all IT projects and to     
investment management       monitor schedules, costs,  
guide. At a minimum, the    and risks. AOC recently    
plan should specify         approved a new IT          
measurable tasks, goals,    investment management      
time frames, and resources  policy which describes the 
required to develop and     roles and authority of the 
implement the processes.    boards involved in         
The Architect of the        overseeing IT investments  
Capitol should focus first  such as the Enterprise     
on the management processes Architecture Executive     
associated with controlling Steering committee and the 
existing projects and       Business Systems           
establishing the management Modernization Office. The  
structures to effectively   IT investment management   
implement an IT management  policy also describes the  
process.                    process for requesting     
                               funding and monitoring     
Jan. 2003                   such investments. AOC has  
                               taken important initial    
                               steps to address the       
                               management and structure   
                               needed to establish a      
                               sound IT investment        
                               management process, such   
                               as assigning roles,        
                               responsibilities and the   
                               authority needed to manage 
                               its IT investment          
                               portfolio. However, the    
                               agency has yet to provide  
                               a plan that lays out its   
                               efforts to implement the   
                               processes and to control   
                               existing investments which 
                               includes specifying the    
                               measurable tasks, goals,   
                               time frames, and           
                               resources.                 
42. Plan for and implement  Making progress: AOC       
those practices in our IT   reports that, to           
investment management guide prioritize investments, it 
associated with corporate,  is using an IT request     
portfolio-based investment  form to quantify           
decision making, such as    investment requests by     
(1) implementing criteria   their urgency, value, and  
to select investments that  risk. Although AOC is in   
will best support the       the process of instituting 
organization's strategic    an approval process and    
goals, objectives, and      mechanism to screen all    
mission, (2) using these    proposed IT projects using 
criteria to consistently    standardized criteria, it  
analyze and prioritize all  has yet to fully develop   
IT investments,             and implement important    
(3) ensuring that the       key steps in their IT      
optimal investment          investment process. For    
portfolio with manageable   example, AOC has yet to    
risks and returns is        develop an overall         
selected and funded, and    approach to portfolio      
(4) overseeing each         management that            
investment within the       incorporates existing and  
portfolio to ensure that it proposed projects into the 
achieves its cost, benefit, investment decision-making 
schedule, and risk          process and document and   
expectations.               implement a sound          
                               investment control process 
Jan. 2004                   to monitor all their       
                               current and proposed IT    
                               investments.               
GAO Recommendation                                      Status             
43. Develop, implement, and Making progress: AOC has   
maintain an enterprise      (1) developed a written    
architecture (EA) to guide  and approved agencywide IT 
and constrain IT projects   policy that provides for   
throughout AOC. The         developing, implementing,  
Architect of the Capitol    and maintaining an EA; (2) 
should implement the        assigned responsibility    
practices, as appropriate,  for guiding EA development 
as outlined in the Chief    and obtaining approval of  
Information Officer         the EA from the agency's   
Council's architecture      senior leadership team,    
management guide. As a      which includes senior      
first step, the Architect   representatives from       
of the Capitol should       across the agency, such as 
establish the management    the Director of            
structure for developing,   Congressional and External 
implementing, and           Relations, the Chief       
maintaining an EA by        Administrative Officer,    
implementing the following  and the superintendents of 
actions:                    the House and Senate       
                               offices and of the Capitol 
developing an agencywide    buildings; (3) designated  
policy statement providing  a chief enterprise         
a clear mandate for         architect, who is          
developing, implementing,   responsible for EA         
and maintaining the         development and            
architecture;               maintenance; and (4)       
                               developed an architecture  
establishing an executive   that was approved by the   
body composed of            senior leadership team on  
stakeholders from AOC       November 1, 2004. However, 
mission-critical program    the EA is not yet          
offices to guide the        complete, although AOC's   
strategy for developing the plans call for evolving    
EA and ensure agency        the architecture through a 
support and resources for   series of incremental      
it; and                     versions. According to AOC 
                               officials, the other       
designating an individual   practices needed to        
who serves as a chief       effectively develop,       
enterprise architect to     implement, and maintain    
develop policy, lead the    the architecture,          
development of the EA, and  contained in relevant      
manage it as a formal       guidance, such as GAO's    
program.                    enterprise architecture    
                               management maturity        
Jan. 2003                   framework, have not yet    
                               been implemented. For      
                               example, AOC has not       
                               developed and implemented, 
                               among other things,        
                               communications,            
                               configuration, quality,    
                               and risk management plans; 
                               employed an independent    
                               verification and           
                               validation (IV&V)          
                               contractor; or developed   
                               metrics for measuring and  
                               reporting EA compliance.   
                               According to AOC, it has   
                               recently awarded a         
                               contract to a qualified    
                               vendor to work with its    
                               Chief Enterprise Architect 
                               and Business Systems       
                               Modernization Office in    
                               performing an IV&V of      
                               AOC's EA against GAO's     
                               framework for assessing    
                               and improving enterprise   
                               architecture. Work under   
                               the contract began,        
                               according to AOC, in       
                               January 2006 and will      
                               continue through April     
                               2006.                      
44. Plan for and implement  Making progress: According 
the practices in our        to AOC, in December 2005,  
architecture management     the executive steering     
guide associated with       committee approved its     
leveraging an EA for        updated EA (EAFY06). In    
organizational              developing the             
transformation, such as (1) architecture, AOC used the 
ensuring that adequate      federal enterprise         
resources are devoted to    architecture framework and 
the program (funding,       this version contains both 
people, tools, and          an "as is" and a "to be"   
technology); (2) ensuring   architectural description  
that the architecture       and a sequencing plan.     
describes both the "as is"  However, the architecture  
and the "to be"             does not include all the   
environments in terms of    elements of a well-defined 
performance; (3) ensuring   architecture. For example, 
that architecture business, the "as is" and "to be"    
performance, information    descriptions do not        
and data, applications and  address security as laid   
services, and technology    out in AOC's security      
descriptions address        plan. AOC officials stated 
security; and (4) ensuring  that the alignment between 
that metrics are used to    the EA and security system 
measure EA progress,        development life cycle is  
quality, compliance, and    in progress. AOC also      
return on investment.       stated that it plans to    
                               continue to refine and     
Jan. 2004                   expand on the              
                               architecture, based on the 
                               agency's goals,            
                               objectives, and business   
                               needs. Further, AOC stated 
                               that, once selected, the   
                               verification and           
                               validation contractor will 
                               measure EA progress,       
                               quality, compliance, and   
                               return on investment using 
                               metrics.                   
GAO Recommendation                                      Status             
45. Require disciplined and Making progress: In August 
rigorous processes for      2005, AOC completed its    
managing the development    new IT investment          
and acquisition of IT       management policy. In the  
systems and implement the   policy, AOC states that    
processes throughout AOC.   the system development     
Specifically, these         lifecycle is used          
processes should include    throughout the investment  
the following:              management process to      
                               provide guidance and       
quality assurance           documentation support for  
processes, including        the project. In addition,  
developing a quality        AOC officials said that    
assurance plan and          its draft system           
identifying applicable      development lifecycle      
process and product         guidelines address         
standards that will be used acquisition processes such 
in developing and assessing as configuration           
project processes and       management and risk        
products;                   management and that its    
                               quality assurance          
configuration management    processes have been        
processes, including        developed and are being    
establishing a repository   refined to ensure the use  
or configuration management of standardized project    
system to maintain and      documentation. However, we 
control configuration       have not received evidence 
management items;           that these acquisition     
                               processes have been        
risk management processes,  implemented throughout the 
including developing a      agency.                    
project risk management                                
plan, identifying and                                  
prioritizing potential                                 
problems, implementing risk                            
mitigation strategies, as                              
required, and tracking and                             
reporting progress against                             
the plans; and                                         
                                                          
contract tracking and                                  
oversight processes,                                   
including developing a plan                            
for tracking contractor                                
activities, measuring                                  
contractor performance and                             
conducting periodic                                    
reviews, and conducting                                
internal reviews of                                    
tracking and oversight                                 
activities.                                            
                                                          
Jan. 2003                                              
GAO Recommendation                                      Status             
46. Establish and implement Making progress: AOC has   
an information security     (1) designated a security  
program. Specifically, the  officer with the authority 
Architect of the Capitol    to implement an agencywide 
should establish an         security program;          
information security        developed a security plan  
program by taking the       (dated September 2004);    
following steps:            and, according to AOC      
                               officials, assigned        
designate a security        resources (funding and     
officer and provide him or  staff) to implement the    
her with the authority and  security program; (2)      
resources to implement an   developed and issued a     
agencywide security         policy for performing risk 
program;                    assessments as well as a   
                               plan for performing risk   
develop and implement       assessments on its 50      
policy and guidance to      major applications by      
perform risk assessments    March 2008; (3) acquired   
continually;                risk assessment technology 
                               to assess and manage the   
use the results of the risk technical controls on all  
assessments to develop and  AOC general support        
implement appropriate       system; (4) developed and  
controls;                   issued a policy for IT     
                               security training and      
develop policies for        completed the annual       
security training and       awareness training for all 
awareness and provide the   employees, but has not     
training; and               implemented training based 
                               on user roles and          
monitor and evaluate policy responsibilities; and (5)  
and control effectiveness.  developed a plan to        
                               monitor and evaluate the   
Jan. 2003                   effectiveness of policies  
                               and controls.              
                                                          
                               However, AOC does not have 
                               any systems certified and  
                               accredited and has not     
                               completed risk assessments 
                               on all of its major        
                               applications; documented   
                               the identified risks in    
                               system security plans; and 
                               developed controls to      
                               mitigate the risks, such   
                               as developing contingency  
                               plans for all systems.     
                               According to AOC, its      
                               certification and          
                               accreditation process has  
                               been planned, resourced,   
                               and initiated and phase I, 
                               which addresses the        
                               general support systems    
                               and mission critical       
                               applications, is expected  
                               to be completed by the     
                               second quarter of fiscal   
                               year 2006. However, in the 
                               interim, AOC's internal    
                               systems and applications   
                               remain potentially         
                               vulnerable and AOC has not 
                               developed and implemented  
                               a risk-mitigation strategy 
                               to carry it through this   
                               interim period. AOC stated 
                               that they believe that     
                               their strong perimeter     
                               defenses (i.e., firewalls) 
                               and polices will help      
                               carry the agency through   
                               the interim while they     
                               mitigate internal risks.   
                               According to AOC, it       
                               cannot evaluate the        
                               effectiveness of IT        
                               security controls until it 
                               determines if its security 
                               policies meet the minimum  
                               security standards         
                               established by the Chief   
                               Information Officers       
                               Council and National       
                               Institute of Science and   
                               Technology's Federal       
                               Information Technology     
                               Security Assessment        
                               Framework. AOC officials   
                               stated that a self         
                               assessment of its IT       
                               security polices was       
                               conducted and documented.  
                               They also added that they  
                               plan to mitigate the       
                               results of the findings    
                               through a plan of action   
                               and milestones. However,   
                               no time frame was          
                               provided.                  
Project management          
GAO Recommendation                                      Status             
47. Develop a Capitol       Making progress: AOC is    
complex master plan and     currently developing the   
complete condition          Capitol complex master     
assessments of all          plan and has completed     
buildings and facilities    facility assessments for   
under the jurisdiction of   most of the facilities     
AOC.                        within the complex. The    
                               Capitol complex master     
Jan. 2003                   plan has three components: 
                               (1) vision statement, (2)  
                               framework (concept) plan   
                               and (3) jurisdiction       
                               plans. The draft vision    
                               statement has been         
                               completed. The framework   
                               plan is in progress. An    
                               expert advisory panel      
                               reviewed the vision        
                               statement in December 2004 
                               and the draft concept plan 
                               in March 2005, and the     
                               planning models are being  
                               refined and expanded in    
                               response to the panel's    
                               input. Jurisdiction plans  
                               have been launched in each 
                               jurisdiction except the    
                               Supreme Court. The master  
                               plan is scheduled for      
                               completion by the end of   
                               2006. The draft will be    
                               prepared in the spring of  
                               2006, and extensive        
                               consultations will occur   
                               in the spring, summer, and 
                               fall of 2006 before the    
                               master plan is finalized.  
                                                          
                               AOC has completed all      
                               facility condition         
                               assessments except those   
                               for the Library of         
                               Congress and the Supreme   
                               Court. AOC has not         
                               received funding for the   
                               Library assessment and     
                               plans to conduct the       
                               assessment for the Supreme 
                               Court after renovations    
                               are completed.             
48. In order to improve     Making progress: AOC has   
Capitol complex master      involved congressional     
planning efforts, we        stakeholders and AOC       
recommend that the          stakeholders in the        
Architect of the Capitol,   development of the Capitol 
with support from the COO,  complex master plan. For   
lead efforts to ensure that example, the House         
congressional and other     Jurisdiction plan was      
stakeholders are engaged    accelerated ahead of the   
early and throughout the    remaining master plan      
development of the Capitol  because of early funding   
complex master plan.        provided by the House.     
                               According to AOC,          
Aug. 2004                   throughout this process,   
                               there was extensive        
                               consultation with House    
                               leadership, congressional  
                               members, staff, and        
                               stakeholders. In addition, 
                               briefings were conducted   
                               at standing meetings       
                               between AOC and House      
                               leaders and consultations  
                               with AOC staff were        
                               conducted. GAO will        
                               continue to monitor        
                               stakeholder involvement    
                               throughout the development 
                               of the master plan.        
49. Develop a process for   Implemented February 2006: 
assigning project           AOC has fulfilled this     
priorities that is based on recommendation. AOC        
clearly defined,            implemented a program      
well-documented,            development process in     
consistently applied, and   2003 that rated projects   
transparent criteria.       in five categories: (1)    
                               historic preservation and  
Jan. 2003                   stewardship, (2) fire,     
                               life, safety, and code     
                               compliance, (3) impact on  
                               mission, (4) economics,    
                               and (5) security, with a   
                               score from 1 to 100. In    
                               the spring of 2004, AOC    
                               improved the program       
                               development process by     
                               establishing extensive     
                               procedures designed to     
                               ensure that project scopes 
                               fully met both customer    
                               needs and all criteria and 
                               standards. The project     
                               evaluation criteria are    
                               currently being expanded   
                               to include urgency (such   
                               as immediate, high,        
                               medium, or low) and        
                               classification of a        
                               project (such as deferred  
                               maintenance or capital     
                               improvement). This         
                               expansion of the           
                               evaluation criteria        
                               results from information   
                               being received from FCAs.  
                               In September 2005, the     
                               AOC's project              
                               prioritization panel will  
                               evaluate these recommended 
                               changes. Assuming          
                               approval, they will be     
                               applied to projects in the 
                               fiscal year 2007 budget    
                               submission and fully       
                               implemented effective with 
                               the project call of 2006.  
GAO Recommendation                                      Status             
50. In order to improve the Making progress: AOC has   
process for prioritizing    held and continues to hold 
projects, we recommend that regular briefings with     
the Architect of the        congressional staff since  
Capitol, with support from  developing a program       
the COO, lead efforts to    development process.       
ensure that AOC informs and According to AOC           
obtains agreement from      officials, the agency has  
congressional and other     received positive feedback 
stakeholders on how and why and a high level of        
specific projects are       support for the process.   
submitted for funding.      As we reported previously, 
                               although the               
Aug. 2004                   prioritization process is  
                               a useful tool, it does not 
                               address the underlying     
                               need to inform and get     
                               agreement from             
                               congressional and other    
                               stakeholders on how and    
                               why AOC submits projects   
                               for funding.               
51. Develop tools to        Making progress: AOC has   
effectively communicate     developed and communicated 
priorities and progress of  the program development    
projects, as a part of a    process prioritization     
broader communication       procedures to all parties  
strategy.                   through various means,     
                               including regular          
Jan. 2003                   briefings to congressional 
                               stakeholders. AOC has also 
                               developed quarterly status 
                               reports on the budget and  
                               schedule status of         
                               projects that are released 
                               to congressional           
                               appropriators. However,    
                               AOC still needs to develop 
                               a method to more           
                               accurately account for     
                               overhead costs charged by  
                               its construction branch    
                               and calculate current      
                               working estimates for      
                               projects constructed by    
                               the branch. AOC is         
                               currently conducting a     
                               peer review of             
                               Construction Branch        
                               operations. In addition,   
                               AOC needs to automate the  
                               generation of the          
                               quarterly report to        
                               provide timely and         
                               accurate data.             
52. Define                  Making progress: AOC has   
project-management-related  reported on construction   
performance measures to     schedule and budget        
achieve mission-critical    performance measures. AOC  
strategic and annual        also established a survey  
performance goals.          and performance measures   
                               on the quality of design   
Jan. 2003                   and project management     
                               services. AOC is           
                               developing a similar       
                               survey of performance      
                               measures for quality of    
                               construction services.     
53. To strengthen the       Making progress: In 2003,  
relationship between AOC    AOC implemented a program  
and its congressional and   development process that   
other stakeholders, we      rated projects in five     
recommend that the          categories: (1) historic   
Architect of the Capitol    preservation and           
direct the COO to work with stewardship, (2) fire,     
Congress on the design and  life, safety, and code     
implementation of a         compliance, (3) impact on  
transparent process to      mission, (4) economics,    
facilitate an understanding and (5) security, with a   
between AOC and its         score from 1 to 100.       
congressional stakeholders  Through this process, AOC  
about how AOC targets its   created its first capital  
efforts and resources to    improvement plan in 2004   
the highest project         and a fiscal year 2005     
priorities and how          line item construction     
strategic and tactical      program that included      
decisions and trade-offs    consideration of these     
are made.                   ratings. In the spring of  
                               2004, AOC improved the     
Aug. 2004                   program development        
                               process by establishing    
                               extensive procedures       
                               designed to ensure that    
                               project scopes fully met   
                               both customer needs and    
                               all criteria and standards 
                               requirements. In addition, 
                               AOC enhanced procedures    
                               for determining project    
                               costs, and these           
                               improvements were          
                               reflected in the           
                               procedures used in         
                               determining the fiscal     
                               year 2006 line item        
                               construction program. AOC  
                               recently approved a        
                               predesign manual to help   
                               ensure correct project     
                               scopes. The COO will be    
                               responsible for continuing 
                               to work with AOC's         
                               congressional stakeholders 
                               as this process is         
                               refined.                   
54. Align project           Implemented February 2006: 
management staff and        AOC has fulfilled this     
resources with AOC's        recommendation. In October 
mission-critical goals.     2005, AOC implemented a    
                               project management         
Jan. 2003                   organization. The          
                               organization includes 32   
.                           personnel with             
                               responsibilities for       
                               project management,        
                               construction management,   
                               and inspection. The        
                               organization is focused on 
                               "cradle-to-grave" project  
                               delivery. Duties           
                               considered to be           
                               "collateral," such as      
                               design reviews, are being  
                               reassigned to other AOC    
                               officials outside of the   
                               new organization.          
GAO Recommendation                                      Status             
55. Develop a method to     Making progress: AOC has   
establish and track more    established two measures,  
accurate budget targets.    which will be tracked on a 
This method could include   monthly basis, to help     
tracking and reporting on   develop more accurate      
the following to help AOC   budget targets. These      
refine targets:             measures are: (1) ratio of 
                               the government estimate to 
Accuracy of cost estimates  the average of the bid     
compared to bids,           amounts and (2) the        
                               contract award cost versus 
Accuracy of budget compared the government estimate.   
to final project costs,     AOC is also planning to    
                               add an additional measure  
Amount of excess project    for the accuracy of the    
funds and how funds are     budget compared to final   
used,                       project costs. In          
                               addition, AOC's project    
Cost data for the           management organization is 
Construction Branch,        piloting the use of a      
including current working   project closeout sheet     
estimates.                  that project managers are  
                               required to complete at    
Sept. 2005                  the conclusion of each     
                               project. The sheet, among  
                               other things, requires the 
                               project manager to list a  
                               final project cost and the 
                               amount of money available  
                               to give back to the        
                               jurisdiction. Finally, AOC 
                               is examining what plans,   
                               tools, and measures are    
                               used to conduct            
                               construction branch work   
                               as part of an ongoing      
                               internal review of         
                               construction branch        
                               operations.                
56. Expedite the            Making progress: AOC is    
development of a customer   developing a customer      
satisfaction survey for     satisfaction survey for    
construction services.      construction services      
                               which AOC expects to be    
Sept. 2005                  completed by the end of    
                               the first quarter of       
                               calendar year 2006.        
57. Clarify roles and       Making progress: According 
responsibilities of staff,  to an AOC official, AOC's  
including the role of       new organizational         
Jurisdictional Executives   structure has been         
and responsibility for      approved. However,         
developing Programs of      position descriptions are  
Requirements.               still undergoing an        
                               internal review that is    
Sept. 2005                  not expected to be         
                               completed until the middle 
                               of next year. However, AOC 
                               is clarifying roles of the 
                               newly aligned project      
                               management organization    
                               through regular staff      
                               meetings. AOC has          
                               developed a project        
                               development document that, 
                               once approved, will be     
                               used to define the roles   
                               of planning and project    
                               managers.                  
58. Revise project          Making progress:           
management manuals to       Currently, AOC revises its 
reflect changes in how AOC  project management and     
plans for, designs, and     pre-design manuals         
constructs projects;        revisions every two years  
develop management controls and the manuals were last  
to ensure compliance with   revised in 2004. The       
manuals.                    pre-design manual will be  
                               updated once the project   
Sept. 2005                  development document used  
                               to clarify the roles of    
                               planning and project       
                               managers is approved. AOC  
                               does not plan to revise    
                               the project management     
                               manual until the end of    
                               2006.                      
59. Develop or modify       Making progress: AOC has   
information systems to      created a steering group   
provide needed cost         (the Project Information   
schedule data on projects   Center Business            
and track reasons for       Reengineering Task Force,  
changes across all          which meets every 2 weeks) 
projects.                   to conduct an enterprise   
                               architecture analysis-a    
Sept. 2005                  requirements analysis of   
                               its information system.    
                               According to AOC, the task 
                               force will identify AOC's  
                               information system needs,  
                               then AOC will determine if 
                               the system needs           
                               replacement, modification, 
                               or better support. AOC     
                               plans to include a funding 
                               request in its fiscal year 
                               2007 budget request for    
                               whatever course of action  
                               is recommended.            
Facilities management       
60. To improve how AOC      New                        
measures its performance in                            
the areas of timeliness and                            
cost, the agency should:                               
                                                          
develop more specific                                  
timeliness measures that                               
more accurately reflect the                            
amount of time required to                             
complete tasks, develop the                            
capability to                                          
comprehensively and                                    
routinely track cost                                   
performance measures, and                              
                                                          
benchmark performance                                  
measures against those of                              
similar institutions, such                             
as the Smithsonian                                     
Institution and state                                  
capitols.                                              
                                                          
Dec. 2005                                              
GAO Recommendation                                      Status             
61. Use the new CAFM system New                        
to track preventive                                    
maintenance and demand work                            
orders across all                                      
jurisdictions, including                               
the time taken to complete                             
work orders.                                           
                                                          
Dec. 2005                                              

Current Status of Recommendations

aGAO, Architect of the Capitol: Status Report on Implementation of
Management Review Recommendations, GAO-04-299 (Washington, D.C.: Jan. 30,
2004).

bGAO, Architect of the Capitol: Midyear Status Report on Implementation of
Management Review Recommendations, GAO-04-966 (Washington, D.C.: Aug. 31,
2004).

Major Contributors Appendix V

Shirley L. Abel William B. Bates Carole J. Cimitile John C. Craig George
A. Depaoli Tamera L. Dorland Sharon E. Dyer Elizabeth R. Eisenstadt Elena
P. Epps Brett S. Fallavollita Denise M. Fantone Kara A. Finnegan-Irving
Jeanette M. Franzel Mark L. Goldstein Randolph C. Hite Neelaxi Lakhmani
Steven G. Lozano Kieran McCarthy Susan Michal-Smith Amanda K. Miller Sara
Ann Moessbauer John J. Reilly, Jr. William H. Roach, Jr. Matthew C.
Rosenberg Kris Trueblood Sarah E. Veale William F. Wadsworth

(543152)

www.gao.gov/cgi-bin/getrpt? GAO-06-290 .

To view the full product, including the scope

and methodology, click on the link above.

For more information, contact Patricia A. Dalton at (202) 512-2834 or
[email protected].

Highlights of GAO-06-290 , a report to congressional committees

February 2006

ARCHITECT OF THE CAPITOL

Management Challenges Remain

The Architect of the Capitol (AOC) is responsible for the maintenance,
renovation, and new construction of the Capitol Hill complex, which
comprises more than three dozen facilities and consists of nine
jurisdictions, such as the U.S. Capitol and the Senate and House Office
Buildings. In 2003, at the request of Congress, GAO issued a management
review of AOC that contained recommendations in seven areas to help AOC
become more strategic and accountable. GAO reported on AOC's progress in
implementing those recommendations in January and August 2004. In 2005 and
2006, GAO briefed Congress on AOC's recent progress in implementing GAO's
recommendations and on issues related to AOC's project and facilities
management. This report summarizes GAO's (1) assessment of AOC's progress
in implementing previous GAO recommendations and in improving project and
facilities management and (2) delineation of remaining management
challenges.

What GAO Recommends

The implementation status of recommendations made in our previous reports
along with recommendations made following our recent reviews of project
and facilities management is summarized in this report. In commenting on
this report, AOC generally agreed with its content.

Overall, AOC is making progress in implementing GAO's previous
recommendations and in improving project and facilities management. For
example, AOC has implemented 21 of 54 recommendations, established a
central organization for managing major projects, and completed
assessments of nearly all of the agency's facilities, for use in
developing a comprehensive facility maintenance and building renewal plan.
AOC has also begun initiatives to develop meaningful performance measures
and to restructure its project management information systems to provide
better data for monitoring and reporting. These initiatives, though
encouraging, are in their early stages, and it is too early to determine
their success. In recent briefings provided to AOC management and
congressional staff, GAO made additional recommendations to improve the
accountability and effectiveness of AOC's project and facilities
management initiatives.

AOC has made progress in some areas, but still has a significant amount of
work ahead to achieve its ultimate goal of establishing a strong strategic
management and accountability framework. Specifically, it has not
completed initiatives to address two critical issues-communication with
external stakeholders and development of internal controls-identified in
previous GAO recommendations or in independent audits of AOC's 2003 and
2004 balance sheets. These issues affect a wide range of AOC operations.
For example, communication with congressional stakeholders is essential to
establish and clarify service and expectation levels. Internal controls,
such as a reliable cost accounting system, sound procurement practices,
and a comprehensive information security program, are necessary to,
respectively, improve project and facilities management, strengthen the
integrity of AOC's procurement processes, and effectively safeguard AOC's
data and information assets.

Leadership support is vital to ensure that needed improvements are given
urgent attention; this support is also essential to ensure that
improvements that have already been made are continuously evaluated and
refined as needed. However, the key leadership positions of Chief
Operating Officer, Chief Financial Officer, Chief Administrative Officer,
Director of the Capitol Power Plant, Director of Congressional and
External Relations, and Director of Planning and Project Management are
currently vacant. Furthermore, the term for the current Architect of the
Capitol will expire in less than a year. AOC is at a critical juncture in
its efforts to become more strategic and accountable. Quickly filling the
vacant management positions with qualified people is essential for AOC to
sustain and extend its recent improvements and to have a cohesive
management team in place in the event of a turnover in the Architect of
the Capitol position. AOC is now attempting to fill the vacant leadership
positions, and, to mitigate the impact of these vacancies, it recently
appointed an Acting Chief Operating Officer--who is also temporarily
serving as the Acting Chief Financial Officer-and an Acting Chief
Administrative Officer to help guide the agency's improvement efforts.
*** End of document. ***