Capitol Visitor Center: Results of Risk-based Analysis of	 
Schedule and Cost (15-FEB-06, GAO-06-440T).			 
                                                                 
GAO testified before the Senate Subcommittee on the Legislative  
Branch, Committee on Appropriations to provide the results of a  
risk-based analysis of schedule and cost for the Capitol Visitor 
Center (CVC). Our remarks focused on (1) our assessment of the	 
risks associated with the Architect of the Capitol's (AOC)	 
December 2005 schedule, and our estimate of a time frame for	 
opening the project to the public; and (2) the project's costs	 
and funding, including the potential impact of scheduling issues 
that have arisen since the Subcommittee's November 16, 2005,	 
hearing on the CVC project's schedule and cost. 		 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-06-440T					        
    ACCNO:   A46997						        
  TITLE:     Capitol Visitor Center: Results of Risk-based Analysis of
Schedule and Cost						 
     DATE:   02/15/2006 
  SUBJECT:   Construction contracts				 
	     Contract administration				 
	     Contract oversight 				 
	     Contract performance				 
	     Contractors					 
	     Cost analysis					 
	     Cost overruns					 
	     Facility construction				 
	     Federal facilities 				 
	     Federal funds					 
	     Future budget projections				 
	     Public visitor-centers				 
	     Schedule slippages 				 
	     Cost estimates					 
	     Capitol Visitor Center Project			 

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GAO-06-440T

     

     * Appendix I: Capitol Visitor Center Critical Construction Mil

Testimony

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

United States Government Accountability Office

GAO

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

Wednesday, February 15, 2006

CAPITOL VISITOR CENTER

Results of Risk-based Analysis of Schedule and Cost

Statement of Bernard L. Ungar, Director Terrell Dorn, Assistant Director
Physical Infrastructure Issues

GAO-06-440T

Mr. Chairman and Members of the Subcommittee:

We are pleased to be here today to assist the Subcommittee in monitoring
progress on the Capitol Visitor Center (CVC) project. Our remarks will
focus on (1) our assessment of the risks associated with AOC's December
2005 schedule, and our estimate of a time frame for opening the project to
the public; and (2) the project's costs and funding, including the
potential impact of scheduling issues that have arisen since the
Subcommittee's November 16, 2005, hearing on the CVC project's schedule
and cost.1

Our remarks today are based on our review of schedules and financial
reports for the CVC project and related records maintained by AOC and its
construction management contractor, Gilbane Building Company; our
observations on the progress of work at the CVC construction site; and our
discussions with the CVC team (including AOC and its major CVC
contractors), AOC's Chief Fire Marshal, and representatives from the
United States Capitol Police (USCP). We also reviewed applicable
appropriations legislation and AOC's construction management contractor's
periodic schedule assessments and daily reports on the progress of
interior wall and floor stonework.

With the assistance of a consultant, Hulett & Associates, we assessed the
risks associated with AOC's December 2005 schedule for the base CVC
project and used the results of our assessment to estimate a time frame
for completing the base project with and without identified risks and
uncertainties. In January 2006, we and our consultant interviewed project
managers and team members from AOC and its major CVC contractors, USCP
representatives, and AOC's Chief Fire Marshal to identify the risks they
saw in completing the remaining work and the time they considered
necessary to finish the CVC project and open it to the public. Using the
project's November and December 2005 schedules (the most recent schedules
available when we did our work), we asked the team members to estimate how
many workdays would be needed to complete the remaining work. More
specifically, for each major activity that the members had a role or
expertise in, we asked them to develop three estimates of the activity's
duration-the least, the most likely, and the longest time needed to
complete the activity. Using these three-point estimates and a simulation
analysis to calculate different combinations of the team's estimates that
factored in identified risks and uncertainties, we estimated the
completion date for the base project at various confidence levels based on
AOC's December 2005 schedule. Finally, we reviewed AOC's schedule for the
construction of the House and Senate expansion spaces, but did not assess
the risks associated with the work.2

1See GAO, Capitol Visitor Center: Update on Schedule and Cost, GAO-06-251T
(Washington, D.C.: Nov. 16, 2005).

In addition, we estimated the likely cost of the project at completion,
factoring in risks and uncertainties, using information obtained from our
interviews, contract modifications, the proposed change order log
maintained by AOC's construction management contractor, and the previously
mentioned simulation analysis. We did not perform an audit; rather, we
performed our work to assist Congress in conducting its oversight
activities.

In summary:

Since the Subcommittee's November 16 CVC hearing, AOC and the CVC team
have moved the project's construction forward and significantly revised
the schedule, particularly for the base project. For example, they have
reached agreement with AOC's Chief Fire Marshal on the schedule for
testing the base project's life safety systems and have enhanced the
manner in which the project's operations schedule is incorporated into the
project's master schedule. In addition, they have reviewed and revised the
schedule, postponing the opening dates for the CVC and the House and
Senate expansion spaces by about 2 months each. Under AOC's revised
schedule, the CVC would be open to the public in February 2007 with a
temporary cap on visitor occupancy, and the expansion spaces would be open
in April 2007. However, to allow for possible delays and start-up time for
operations, AOC is proposing to open the CVC in April 2007 and the
expansion spaces in May 2007, at which time the temporary cap on CVC
occupancy would be lifted.

We concur with AOC about the need for postponing the opening dates, but do
not believe that AOC has scheduled enough time to complete several of the
project's critical tasks and to address the problems, challenges, risks,
and uncertainties that AOC and the CVC team are attempting to address. If
they are successful in addressing these issues, we believe that the CVC
can be opened to the public with the temporary cap on visitor occupancy in
May 2007 and that the expansion spaces can be opened beginning in
mid-August to early September 2007. Congress may be able to begin
occupying the expansion spaces earlier if AOC implements a phased opening
plan it is considering. However, if AOC experiences major problems
completing construction, such as with installing interior stone or testing
major building systems, the work could be finished even later than we have
estimated.

2We did not assess the risks associated with the schedule for the
expansion spaces because the CVC team took longer than expected to
complete the December schedule. We did not receive the final December
schedule until January 27, 2006, and therefore did not have enough time to
fully analyze the expansion space schedule before the Subcommittee's
February hearing. Furthermore, CVC project staff told us that they had not
yet had an opportunity to carefully assess the expansion space schedule.

According to our current estimate, the total estimated cost to complete
the entire CVC project is about $555 million without an allowance for
risks and uncertainties. This estimate exceeds our November 16, 2005,
estimate by about $12 million because we and AOC's construction management
contractor are now projecting further delay-related costs. Changes in the
project's design and scope have also been occurring, and more are likely.
For example, the project's fire protection system has been evolving, and
the system is now expected to cost more than previously estimated. To
date, about $528 million has been provided for CVC construction. Thus, we
now estimate that another $25.6 million will be needed to complete
construction without an allowance for risks and uncertainties and taking
into account funding from existing appropriations that AOC is planning to
use. With an allowance for risks and uncertainties, we now estimate that
the project could cost as much as about $584 million at completion, or
about $25 million more than we estimated in November 2005. Estimated costs
for the tunnel connecting the CVC with the Library of Congress are still
within, but are now approaching, the $10 million statutorily mandated
limit.

    AOC Has Moved Construction Forward, Revised the Project's Schedule, and
                            Postponed Opening Dates

AOC and the CVC team have continued to refine the project's schedule since
the November hearing and have made substantive progress in addressing the
issues that we and the Subcommittee have raised, particularly concerning
the base project's schedule. For example, the CVC team reviewed the
sequence and duration of the activities scheduled for interior stonework,
finish work, and work associated with the base project's fire protection
system, including the acceptance testing to be done by AOC's Fire Marshal
Division. To reflect the results of its review, the team revised the
project's December 2005 and January 2006 schedules, and in collaboration
with the team that is planning for CVC operations, enhanced the manner in
which the operations activities are incorporated into the project's master
schedule.3 AOC and its contractors' staff who are involved in planning for
CVC operations agree that the January 2006 schedule identifies the related
construction and operations activities. The CVC team has not yet fully
reassessed the schedule for the expansion spaces and has not yet reached
agreement with the Chief Fire Marshal on the requirements for acceptance
testing of those spaces. Finally, the CVC team has continued to meet
weekly to identify risks facing the project and to discuss mitigation
strategies and actions. As of February 1, 2006, the team had identified 62
risks and developed mitigation strategies for all but 1, which had just
been identified. The plans vary in their level of detail and stage of
implementation.

According to AOC's December 2005 and January 2006 schedules, the CVC base
project will be ready to open to the public with a temporary certificate
of occupancy on February 13, 2007, and the House and Senate expansion
spaces will be ready on April 24, 2007. To allow for possible delays and
start-up time for operations, AOC has proposed an April 2007 opening date
for the base project and a May 2007 occupancy date for the expansion
spaces. By the April opening date for the base project, AOC believes, all
construction work in the CVC and East Front will be completed, but the
CVC's occupancy at any one time will be temporarily limited to 3,500,
compared with about 4,200, the normal anticipated occupancy level. This
temporary limit will be necessary because the "horizontal exits," or
passages, through the expansion spaces, which the life safety code
requires for exiting the base CVC project, will not be available until
later. These horizontal exits cannot be used until the fire alarm system
in the expansion spaces has been fully tested and accepted-work that is
not slated to be completed until after the base CVC is scheduled to open.
Some additional work will likely be required to provide temporary
emergency exit routes from the CVC, but the CVC team does not believe that
this work or its costs should be substantial.

Mr. Chairman, a brief explanation of AOC's rationale for proposing a CVC
opening with a temporary cap on visitor occupancy may be helpful at this
point. The current project schedule calls for completing the construction
of both the CVC and the expansion spaces before December 31, 2006, but
would delay the start of acceptance testing the portions of the fire alarm
system in the expansion spaces until such testing for the base CVC project
is completed in February 2007. AOC is planning this approach because it
believes that starting the acceptance testing for the expansion spaces
earlier would prolong the completion of the acceptance testing in the base
project and thereby delay the base project's opening to the public. More
specifically, the fire protection devices for the atriums, which are a
part of the horizontal exits ultimately required by code for full
occupancy of the base project, would undergo acceptance testing with the
expansion spaces, rather than with the base CVC project. To accommodate
this change, AOC shifted the finish work in the atriums from the base CVC
schedule to the expansion space schedule, and is planning to conduct the
acceptance testing for the atriums and the expansion spaces at the same
time, after the acceptance testing for the base CVC project is done. Until
the acceptance testing for the expansion spaces has been completed, AOC's
Chief Fire Marshal has said that the expansion spaces, including the exits
through the atriums, cannot be used as emergency exit routes, and
therefore AOC must take measures to provide temporary emergency exit
routes from the base CVC project and reduce the number of occupants who
can be in the base project until the exit routes are available.

3The January 2006 project schedule reflects revisions in various
activities, but the completion dates for the CVC and expansion spaces did
not change from the December 2005 project schedule.

  Our Analysis Indicates Later Opening Dates in Light of Problems, Challenges,
                            Risks, and Uncertainties

Our work to date in monitoring the CVC project and the results of our
recently completed risk assessment of the project's schedule point to
later opening dates than the schedule indicates. Although the schedule for
the base project goes a long way toward responding to our concerns about
the amount of time previously provided for a number of activities and
extends their duration, CVC team managers and members we interviewed
believe that certain work will take longer to complete than the revised
schedule allows. For example, they believe that interior stonework and
finish work for the base project and the East Front are likely to take
longer. According to our risk analysis, which reflects the CVC team's
input and assumes that AOC will successfully address the challenges it
faces, the CVC is more likely to be ready for opening with a temporary
certificate of occupancy between late April and mid-May 2007 than in
February, as indicated in AOC's current schedule. AOC is now proposing an
April 2007 opening date to provide time for possible construction
slippages and operations preparation. The additional time AOC says is
necessary for operations preparation after construction completion would
mean that the CVC would be ready for opening with a temporary cap on
visitor occupancy by about the end of May 2007, according to our analysis.
Similarly, our analysis suggests that the House and Senate expansion
spaces are more likely to be ready in mid August or early September 2007
than in April or May 2007. We believe the later time frames are more
likely because (1) AOC has scheduled the acceptance testing of the
expansion spaces after the acceptance testing of the base project and,
according to our work, the base project testing will take longer than
scheduled and (2) AOC's Chief Fire Marshal believes that the acceptance
testing of the expansion spaces will take longer than scheduled.

We have discussed the results of our analysis with AOC, and it continues
to believe that it will be able to meet its April and May 2007 time frames
for the CVC and the expansion spaces, respectively. Furthermore, AOC said
that it and the CVC team will continuously review the schedule to identify
opportunities for improvement. For example, AOC pointed out that it may be
able to have the acceptance testing of the expansion spaces done in
segments so that Members and staff will not have to wait for the entire
facility to be tested before they can occupy their space. AOC also
believes it may be able to revise the scheduling of some East Front
mechanical work to save time. We agree that AOC should continuously look
for ways to improve the schedule and that improvements may be possible.
However, we also believe that AOC will be challenged to meet even the
later opening dates we have identified given the problems, challenges,
risks, and uncertainties the project faces. A discussion of these follows:

           o  Delivery of stone and pace of stone installation remain
           critical. Although the CVC team has made progress in installing
           interior wall and floor stone, work on the wall stone has fallen
           behind schedule in several areas, and the project still faces
           significant challenges, risks, and uncertainties in this area.
           These include whether sufficient quantities of the appropriate
           wall stone will be received in time and whether the pace of
           installation will be sufficient to complete this work as
           scheduled. According to information provided by the sequence 2
           contractor on February 10, the wall stone supplier still had a
           20-truckload backlog and was not shipping wall stone at the
           scheduled rate, resulting in a delivery shortfall of about 6,000
           cubic feet. According to AOC's construction management contractor,
           stone supply is not affecting interior wall stone installation
           because a large quantity of stone is currently on site; however,
           the contractor is concerned about the ability of the stone
           supplier to meet current and future requirements that include
           stone for the East Front, adequate stone to maintain productivity,
           and the 20-truckload backlog. The pace of installation is also an
           issue. The sequence 2 contractor has recently increased the number
           of stone masons working on the project and has begun meeting the
           installation targets in its work plan. However, if the wall stone
           installation targets are not achieved, whether because the masons
           are less productive than planned or work spaces are not ready for
           stonework to begin, completion delays are likely. The sequence 2
           contractor has already encountered work spaces in the service
           level, the orientation lobby, and the East Front that were not
           available for stonework because concrete was out of tolerance or
           masonry walls were not ready for wall stone to be hung. Finally,
           the sequence 2 contractor still needs to install about 120,000
           square feet of floor stone in the CVC and could have problems
           meeting the scheduled completion dates if not enough masons are
           available, the amount of floor space available is insufficient
           because other finish work is not done, or other trades are working
           in the areas where floor stone is to be laid. As of February 10,
           AOC had not received a floor stone installation plan requested
           from the sequence 2 contractor, but the sequence 2 contractor said
           that it intends to finish the plan soon.

           o  Stacking of trades could delay completion. Continued delays,
           particularly in wall stone installation, could adversely affect
           the sequence 2 contractor's ability to accomplish all of the
           required finish work on schedule. The sequence 2 contractor has
           been making progress relative to its current plan for installing
           wall stone in the auditorium and the orientation lobby, but
           according to the current project schedule, wall stone installation
           is delayed in other areas, such as the East Front, the great hall,
           and the orientation theaters' exterior walls. Furthermore, as of
           February 10, although the contractor had completed 10 of the 13
           milestones relating to wall stone that are being tracked for the
           Subcommittee, none of the 10 was completed by the date set in the
           September 2005 baseline schedule, and only 4 were completed by the
           date set in the November 2005 schedule. (See app. I.) If delays
           continue, a stacking of trades such as we described at the
           Subcommittee's November hearing could hold up finish work, such as
           drywall or ceiling installation, electrical and plumbing work,
           plastering, or floor stone installation.4 Such a situation could
           also increase the risk of accidents and injuries. The CVC team has
           also identified "trade stacking" as a high risk. The sequence 2
           contractor acknowledges the risk, but said that it has structured
           its schedule to avoid the risk and plans to monitor progress
           closely to avoid problems. We acknowledge that these steps can be
           helpful; however, the more the wall stone schedule slips, the
           greater is the likelihood of "trade stacking," since more and more
           work will have to be done in less time to meet the schedule. AOC's
           construction management contractor agrees that this is a serious
           potential problem.

           o  Complex building systems remain a significant risk. The CVC
           will contain complex building systems, including systems for
           heating, air conditioning, and ventilation; fire protection; and
           security. These systems not only have to perform well
           individually, but their operation has to be integrated. If the CVC
           team encounters any significant problems with their functioning,
           either individually or together, during commissioning or testing,
           the project could be seriously delayed. AOC and the CVC team are
           aware of these risks and have been taking steps to mitigate them
           as part of their risk management process. Yet despite these steps,
           a significant problem could arise during commissioning or testing,
           and it is important that the team be prepared for such an event.

           o  Building design continues to evolve. The CVC has undergone a
           number of design changes, and design changes are continuing for a
           number of building components, such as the exhibit gallery and the
           fire protection and security systems. Some of these changes have
           resulted in delays, such as in the exhibit gallery and in the East
           Front. In addition, designs or shop drawings for some elements of
           the project, such as aspects of the facility's fire protection
           systems, have not yet been fully approved and are subject to
           change. At this stage of the project's construction, one might
           expect the number of design changes to dwindle. However, this is
           not the case. For example, more than 20 design changes or
           clarifications were issued last month. Additional design changes
           are being considered, and the potential exists for such changes to
           further adversely affect the schedule.

           o  Multiple critical activity paths complicate schedule
           management. In its report on the project's January 2006 schedule,
           AOC's construction management contractor identified 18 critical
           activity paths-4 more than in the contractor's report on the
           project's October 2005 schedule-that are crucial to meeting the
           scheduled completion date. In addition, the construction
           management contractor said that several noncritical activities
           have fallen behind schedule since November 2005, and a number of
           these have moved closer to becoming critical to the project's
           completion. As we have previously said, having a large number of
           critical and near-critical activities complicates project
           management and increases the risk of missing completion dates. We
           believe that the CVC team will be particularly challenged to
           manage all of these areas concurrently and to deal effectively
           with problems that could arise within these areas, especially if
           multiple problems arise at the same time.

           We currently estimate that the total cost to complete the entire
           CVC project is about $555 million without an allowance for risks
           and uncertainties and could be as much as about $584 million with
           such an allowance. As table 1 indicates, our current estimate
           without an allowance for risks and uncertainties is about $12
           million higher than the estimate without such an allowance that we
           presented at the Subcommittee's November 16, 2005, hearing.5 This
           $12 million increase is largely attributable to additional

           o  delay costs estimated by AOC's construction management
           contractor and

           o  actual and anticipated changes in the design and scope of the
           project.

           Table 1: Comparison of November 2005 and February 2006 CVC
           Construction Cost Estimates

           Source: GAO analysis of AOC data.

           In particular, changes in the project's fire protection system,
           which we discussed at the Subcommittee's October 18, 2005, CVC
           hearing, are now expected to cost more than previously estimated.
           Specifically, the system's acceptance testing is expected to be
           more extensive and to take place later than originally
           anticipated, and additional temporary construction may be required
           to ensure fire safety if the CVC is opened to the public before
           the Senate and House expansion spaces are completed. This
           additional construction would involve designing and installing-and
           then removing-temporary walls and perhaps taking other fire
           protection measures to create emergency exits from the CVC. As
           discussed in more detail earlier in this statement, the need for
           temporary construction may be reduced or eliminated if the fire
           safety acceptance testing of the expansion spaces and of the CVC
           can be performed concurrently, rather than over two separate
           periods, as would be likely if the CVC is opened to the public
           before the expansion spaces are completed. We discussed this issue
           during the Subcommittee's July 14, 2005, CVC hearing6 and
           recommended then that AOC estimate the cost of these temporary
           measures so that Congress could weigh the costs and benefits of
           opening the CVC before the expansion spaces are completed. AOC has
           agreed to provide this estimate to Congress when it has more
           information on the status of construction progress on the CVC and
           expansion spaces and the specific steps that will be necessary to
           provide adequate temporary exit routes.7

           We now estimate that the total cost to complete the entire project
           with an allowance for risks and uncertainties could be as much as
           $584 million, or about $25 million more than we estimated in
           November 2005. This increase reflects the potential for the
           project to incur additional costs if

           o  difficulties arise in commissioning and testing its complex and
           sophisticated fire protection, ventilation, and security systems;

           o  significant problems with the building's design are identified
           and need to be corrected during construction;
           o  delays cost more than anticipated;8 and

           o  significant discretionary changes in the project's design and
           scope are requested.

           To date, about $528 million has been provided for CVC
           construction. This amount does not include about $7.7 million that
           was made available for either CVC construction or operations.9
           According to AOC, it expects to use about $2 million of this
           amount for construction. To obtain the additional funding that it
           expected to need to complete the project's construction, AOC, in
           December 2005, requested $20.6 million as part of its budget
           request for fiscal year 2007. This request was based, in part, on
           discussions with us and took into account our November 16, 2005,
           estimate of the cost to complete the project's construction
           without an allowance for risks and uncertainties and funding from
           existing appropriations. The request also reflected updates to our
           November estimate through mid-December 2005. At that time, the
           $20.6 million request for additional appropriations, coupled with
           the additional funds that AOC planned to use from existing
           appropriations, would have been sufficient to cover the estimated
           cost to complete construction without an allowance for risks and
           uncertainties.

           Our work since mid-December 2005 indicates that AOC will need
           about $5 million more, or about $25.6 million in additional funds,
           to complete construction without an allowance for risks and
           uncertainties.10 This increase reflects

           o  the number and magnitude of potential change orders that CVC
           team members and we believe are likely and

           o  additional costs associated with extending the project's
           expected completion date beyond March 31, 2007, the date
           contemplated in our last cost estimate.

           AOC generally agrees with our estimate, particularly with respect
           to having sufficient contingency funds available for necessary
           design or scope changes or for additional delay-related costs.

           Public Law 108-83 limits to $10 million the amount of federal
           funds that can be obligated or expended for the construction of
           the tunnel connecting the CVC with the Library of Congress. As of
           February 14, 2006, AOC estimated that the tunnel's construction
           would cost about $9.8 million, and AOC's total obligations for the
           Library of Congress tunnel construction work totaled about $8.7
           million. AOC's remaining estimated costs are for potential
           changes.

           On February 13, 2006, AOC awarded a contract for the work to
           connect the tunnel to the Jefferson Building. This work is costing
           more than AOC had estimated-a possibility we raised in our
           November 16 testimony before the Subcommittee. Because this work
           involves creating an opening in the building's foundation and
           changing the existing structure, we believe that AOC is likely to
           encounter unforeseen conditions that could further increase its
           costs. Therefore, we included additional contingency funds for
           this work in our $555 million estimate of the cost to complete the
           CVC project's construction. Both AOC and we plan to monitor the
           remaining tunnel and Jefferson Building construction work closely
           to ensure that the statutory spending limit is not exceeded.

           Mr. Chairman, in conclusion, AOC has responded to many of the
           schedule-related concerns we have identified, but its planned
           opening date for the CVC is still somewhat optimistic. For AOC to
           meet even our estimated opening time frame, we believe that it is
           critically important for the CVC team to do the following:

           o  Aggressively take all necessary and appropriate actions to
           install interior wall and floor stone as expeditiously as
           possible, including seeing that sufficient quantities of masons,
           stone, and work space are available when needed to meet the wall
           stonework plan and the forthcoming floor stone installation plan.

           o  Closely monitor construction to identify potential "trade
           stacking" and promptly take steps to prevent it or effectively
           address it should it occur.

           o  Reassess its risk mitigation plans to ensure that the team
           takes the steps necessary to prevent a major building system
           problem during commissioning or testing and has measures in place
           to deal quickly with problems should they arise.

           o  Carefully consider the necessity of proposed scope and design
           changes and attempt to minimize the impact of necessary changes on
           the project's schedule and cost.

           o  Reassess the capacity of the CVC team (AOC and its contractors)
           to effectively manage and coordinate the schedule and work from
           this point forward, particularly with respect to the large number
           of activities that are currently critical, or close to being
           critical, to the project's timely completion.

           o  Identify and consider the pros and cons (including the
           estimated costs) of opening the CVC and expansion spaces at about
           the same time and provide this information to Congress.

           We have discussed these actions with AOC, and it generally agrees
           with them. It pointed out that it would be in a better position to
           assess the pros and cons of opening the CVC and the expansion
           spaces concurrently when construction is further along and it
           becomes clearer when the work will actually be done. This appears
           reasonable to us.

           We would be pleased to answer any questions that you or Members of
           the Subcommittee may have.

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

           Source: AOC's September and November 2005 CVC sequence 2
           construction schedules for the scheduled completion dates and AOC
           and its construction management contractor for the actual
           completion dates.

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           Web site: www.gao.gov/fraudnet/fraudnet.htm E-mail:
           [email protected] Automated answering system: (800) 424-5454 or
           (202) 512-7470

           Gloria Jarmon, Managing Director, [email protected] (202) 512-4400
           U.S. Government Accountability Office, 441 G Street NW, Room 7125
           Washington, D.C. 20548

           Paul Anderson, Managing Director, [email protected] (202)
           512-4800 U.S. Government Accountability Office, 441 G Street NW,
           Room 7149 Washington, D.C. 20548

4Stacking of trades can occur when workers from different trades, such as
stone masons, electricians, plumbers, or plasterers, have to work in the
same area at the same time to meet a schedule, sometimes making it
difficult to ensure sufficient space and resources for concurrent work.

      Estimated Project Costs Exceed Funding Provided as of February 2006

Dollars in millions                                             
                                         February 15, November 16,            
Estimate                                      2006         2005 Difference
With risks and uncertainties                  $584         $559        $25 
Without risks and uncertainties               $555         $543        $12 
Allowance for risks and                                                    
uncertainties/Difference                       $29          $16        $13

5Our work identified one project element-the acquisition and installation
of USCP's technical security equipment-that is now expected to cost less
than budgeted. Although the $12 million net increase reflects a decrease
in estimated cost for this element without an allowance for risks and
uncertainties, our $584 million estimate recognizes that there is some
risk associated with this item and thus includes funding for such risk.

6GAO, Capitol Visitor Center: Update on Status of Project's Schedule and
Costs, GAO-05-910T (Washington, D.C.: July 14, 2005).

7The temporary work necessary will depend on various factors, such as
whether the sprinkler and smoke control systems are fully functional.

8It is important to note that the delay-related costs included in our
estimates have been made for budgetary purposes only and do not reflect an
assessment of the government's responsibility for any delays. Furthermore,
it should be recognized that estimating the government's costs for delays
that occurred after November 2004 is difficult because delays have
occurred for different reasons and it is unclear who ultimately will bear
responsibility for the various delays that have occurred.

9Public Law 108-447, enacted on December 8, 2004, provided that up to
$10.6 million could be transferred from AOC's Capitol Building
appropriation account for the use of the CVC project. The use of the
amount transferred is subject to the approval of the House and Senate
Committees on Appropriations. In June 2005, AOC received approval to use
about $2.8 million of this $10.6 million, leaving a balance of about $7.7
million that can be used in the future after a rescission amounting to
$84,800.

10AOC has asked for additional funds in its fiscal year 2007 budget
request under its general administration budget for contractual support to
its Fire Marshal Division which includes support for acceptance testing
for the CVC. This request is not included in our cost-to-complete estimate
or estimate of additional CVC funds needed for fiscal year 2007.

Estimated Construction Costs for Library of Congress Tunnel Close to, but under,
Limit

                          Contacts and Acknowledgments

Appendix I: Capitol Visitor Center Critical Construction Milestones
November 16, 2005-February 15, 2006

                                     September 2005 November 2005             
                                          scheduled     scheduled      Actual 
Activity          Location           finish date   finish date finish date
Orientation Lobby Perimeter CMU         10/13/05      12/02/05             
                     walls                                           12/29/05
East Front        Interior CMU          10/02/05      12/06/05 
Subbasement       walls                                        
Exhibit Gallery   Wall Stone            10/31/05      12/07/05    12/23/05 
                     Area 2 base                                  
Exhibit Gallery   Wall Stone            11/10/05      12/02/05    12/28/05 
                     Area 3 base                                  
Orientation Lobby Interior CMU          11/15/05                  12/30/05 
                     walls                               12/09/05 
Exhibit Gallery   Wall Stone            11/16/05      12/16/05    01/06/06 
                     Area 1                                       
Congressional     Wall Stone            11/17/05      12/05/05    01/13/06 
Auditorium        Area 2                                       
Congressional     Wall Stone            12/05/05      02/06/06    01/13/06 
Auditorium        Area 3                                       
Upper Level       Wall Stone            12/13/05      01/13/06    01/11/06 
Assembly Room     Area 1                                       
Exhibit Gallery   Wall Stone            12/14/05      01/16/06    01/06/06 
                     Area 3                                       
Upper Level       Wall Stone            12/29/05      01/30/06    01/20/06 
Assembly Room     Area 2                                       
Upper Level       Wall Stone             1/11/06               
Orientation Lobby Area 1                                       
                     Pedestals                           02/09/06 
Upper Level       Wall Stone             1/23/06               
Orientation Lobby Area 2                                       
                     Pedestals                           02/21/06 
Utility Tunnel    Install Walls         11/04/05      12/06/05    12/23/05 
                     Sta. 1+00-                                   
                     2+00                                         
Utility Tunnel    Install Roof          11/28/05      12/16/05    01/05/06 
                     Sta. 1+00-                                   
                     2+00                                         
Utility Tunnel    Install Roof          12/05/05      12/21/05    12/07/05 
                     Sta. 0+00-1+00                               

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