Capitol Visitor Center: Status of Project's Schedule and Cost as
of March 15, 2006 (15-MAR-06, GAO-06-528T).
This testimony discusses the Architect of the Capitol's progress
in achieving selected project milestones and in managing the
project's schedule since Congress's February 15, 2006, hearing on
the project. As part of this discussion, we will address a number
of key challenges and risks that continue to face the project, as
well as actions AOC has taken or plans to take to address these
risks. In addition, we will discuss the status of the project's
costs and funding.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-06-528T
ACCNO: A49157
TITLE: Capitol Visitor Center: Status of Project's Schedule and
Cost as of March 15, 2006
DATE: 03/15/2006
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-06-528T
* Appendix I: Capitol Visitor Center: Critical Construction Mi
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, March 15, 2006
CAPITOL VISITOR CENTER
Status of Project's Schedule and Cost as of March 15, 2006
Statement of Bernard L. Ungar, Director Terrell Dorn Assistant Director
Physical Infrastructure Issues
GAO-06-528T
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 the Architect of the Capitol's progress in achieving selected
project milestones and in managing the project's schedule since the
Subcommittee's February 15, 2006, hearing on the project.1 As part of this
discussion, we will address a number of key challenges and risks that
continue to face the project, as well as actions AOC has taken or plans to
take to address these risks. In addition, we will discuss the status of
the project's costs and funding.
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 U.S.
Capitol Police. We also reviewed AOC's construction management
contractor's periodic schedule assessments and daily reports on the
progress of interior wall and floor stonework.
In summary:
Since the Subcommittee's February 15 CVC hearing, the CVC team has
continued to move the project's construction forward, but we continue to
believe, as we said at the February hearing, that AOC's proposed opening
dates-April 2007 for the base CVC project and May 2007 for the House and
Senate expansion spaces-do not allow enough time to complete several
critical activities and to address problems, challenges, risks, and
uncertainties. During the past month, the CVC team has essentially
maintained the pace of critical interior wall stone installation,
developed a draft work plan for floor stone installation, started to
develop a work plan to prevent a stacking of trades2 during finish work,
and maintained the opening dates that AOC announced at the February CVC
hearing. However, the number of activities critical to the project's
timely completion has increased, and several of these activities are now
scheduled to take longer to complete than planned. In addition, wall stone
deliveries are still backlogged, critical building systems still have to
be commissioned and tested, and although the project's overall design is
essentially complete, certain design elements are still incomplete or are
being clarified or refined. If the CVC team is successful in addressing
these issues, we believe that the base CVC project can be opened to the
public with a temporary cap on visitor occupancy in May 2007 and that the
expansion spaces can be opened for occupancy beginning in mid-August to
early September 2007. Congress may even be able to occupy the expansion
spaces earlier if AOC implements a phased opening plan it is considering
and if AOC is able to perform acceptance testing of the CVC and the
expansion spaces concurrently rather than sequentially-a possibility AOC
is continuing to explore. Nonetheless, we believe that AOC will be
challenged to meet the later dates we are projecting because of the
problems, challenges, risks, and uncertainties facing the project.
1GAO, Capitol Visitor Center: Results of Risk-based Analysis of Schedule
and Cost, GA0-06-440T (Washington, D.C.: Feb. 15, 2006).
2Trade stacking can occur when workers from different trades, such as
stone masons, electricians, plumbers, or plasterers, have to work in the
same area at the same time to meet a schedule, sometimes making it
difficult to ensure sufficient space and resources for concurrent work.
We currently estimate that the total cost to complete the entire CVC
project is about $556 million without an allowance for risks and
uncertainties. This estimate exceeds our February 15 estimate by about $1
million because AOC now preliminarily estimates that it will need about
that much to pay for contractual support needed to complete acceptance
testing of the facility's fire protection system in time to meet the
project's schedule. AOC plans to use its general administration
appropriations for this work, including funds for fiscal year 2006 that it
has on hand and about $950,000 in fiscal year 2007 funds that Congress has
not yet provided. To date, about $528 million has been provided for CVC
construction. We continue to estimate that AOC will need about $25.6
million more in CVC construction funds to complete the entire CVC project
without an allowance for risks and uncertainties and taking into account
funding AOC plans to use from existing appropriations. Our $584 million
estimate of the cost to complete the entire project with an allowance for
risks and uncertainties remains unchanged because the cost of acceptance
testing is one of the uncertainties covered by this allowance.
AOC Has Moved Construction Forward, but the Project Continues to Experience
Delays and Face Risks and Uncertainties
AOC's February 2006 schedule shows, as did its January 2006 schedule, that
the CVC base project will be ready to open to the public with a temporary
certificate of occupancy on February 13, 2007, and that the House and
Senate expansion spaces will be ready for occupancy 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. AOC expects all construction work
in the CVC, East Front, and expansion spaces to be completed by the April
opening date for the base project, 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.3
Our Analysis Indicates Later Opening Dates Than AOC Is Proposing
We continue to believe, as we testified in February, that the CVC is more
likely to be ready for opening with a temporary certificate of occupancy
by about the end of May 2007 than by April 2007, as AOC is proposing. Our
projected opening is somewhat later than AOC's because CVC team managers
and members we interviewed believe that certain work, such as interior
stonework and finish work for the base project and East Front, will take
longer to complete than the revised schedule allows. Our projection also
assumes that AOC will be successful in addressing the challenges it faces
and takes into account the time that AOC believes will be necessary to
prepare for operations after construction work is completed. Similarly, we
continue to believe 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, as AOC is proposing. We consider the later time frames more
likely for two reasons. First, AOC has scheduled the acceptance testing of
the expansion spaces after the acceptance testing of the base project and,
according to our analysis, the base project's testing will take longer
than scheduled. Second, AOC's Chief Fire Marshal believes the acceptance
testing of the expansion spaces will take longer than scheduled. However,
the expansion spaces could be ready sooner if AOC advances the schedule
for the acceptance testing-a possibility AOC is exploring.
3This 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.
Although construction work has been progressing and the sequence 2
contractor has met several schedule milestones, delays have continued in a
number of areas, and ongoing risks and uncertainties could cause further
delays. AOC's construction management contractor reported that, in terms
of the dollar value of the work in place, the overall CVC project was
about 77 percent complete and the sequence 2 work was about 63 percent
complete as of February 28-up from about 74 percent and 59 percent,
respectively, as of January 31. Furthermore, as of March 13, the sequence
2 contractor had completed work on five of the nine schedule milestones
that were due to be completed by today's hearing, according to the
project's January 2006 schedule. Three of the five were completed on time
or ahead of schedule. (See table 1 in app. I.) According to AOC's
construction management contractor, during the last 4 weeks, the sequence
2 contractor installed 4,363 pieces of interior wall stone, compared with
its 4,794-piece wall stone installation target, but installed only 1,590
square feet of its preliminary 3,600 square-foot floor stone installation
target. (See table 2 in app. I.) In addition, in measuring the sequence 2
contractor's February performance against the project's January 2006
schedule, AOC's construction management contractor reported delays in 12
of the 20 activity paths identified as important to meeting the base
project's overall completion date. These delays included, but were not
limited to, work in the East Front, the exhibit gallery, the auditorium,
the utility tunnel, the great hall, and the orientation theaters and
ranged from 2 to 36 work days, but did not affect the base project's
overall completion date.4 According to the CVC team, the delays occurred
for a variety of reasons, such as design changes, problematic sequence 1
work, late submissions or approvals of shop drawings, and changes in the
sequence of work activities by the sequence 2 contractor. Finally, in its
CVC progress report for February, AOC's construction management contractor
said that the sequence 2 contractor's monthly billings (reflecting the
value of construction work done relative to the project's schedule) were
generally not sufficient to meet AOC's currently scheduled completion
date.
The construction management contractor's February progress report also
showed that several House and Senate expansion space activities had fallen
behind the project's January 2006 schedule. These activities involved work
on the House and Senate circular stairs, the House and Senate lower
levels, and space intended for use by the U.S. Capitol Police on the
service level. The CVC team said these activities were delayed because of
(1) problems associated with sequence 1 or other sequence 2 work, (2)
redesign resulting from the CVC team's misunderstanding of congressional
requirements for certain space, or (3) security-related design changes.
According to the CVC team, these delays will not affect the schedule for
opening the expansion spaces, but could delay the base CVC project's
opening if the lost time cannot be recovered, since certain expansion
space work must be completed before the CVC can be opened to the public.
At this time, the sequence 2 subcontractor doing the expansion space work
believes that most, if not all, of the lost time can be recovered and that
all expansion space construction work necessary for the CVC's opening will
be completed by December 31, 2006.
4However, several activities, including interior wall stone installation,
penthouse mechanical work, and East Front fire protection system
acceptance testing, were delayed to the extent that even relatively short
additional delays could affect the CVC's overall completion date.
Project's Schedule Remains Vulnerable to Problems, Challenges, Risks, and
Uncertainties, Despite Actions AOC Has Taken and Plans to Take
As we indicated during the Subcommittee's February 15 CVC hearing, we
believe that AOC will be challenged to meet even the later opening dates
we have identified, given the problems, challenges, risks, and
uncertainties facing the project. A brief update on these, as well as on
AOC's actions and plans for addressing them, follows:
o Delivery of stone and pace of stone installation remain
critical. In the 4 weeks preceding today's hearing, the sequence 2
contractor reported receiving 9 of the 10 truckloads of interior
wall stone it was expecting from the stone fabricator, but had not
received any of the 20-truckload backlog. According to AOC, the
supply of interior wall stone is adequate for the CVC at this
time, given the quantity on hand, providing that the fabricator
continues to deliver about 1,000 pieces a week for the next 12
weeks. However, AOC said that the pace of installation is such
that additional delays are likely to occur if the fabricator does
not deliver the needed stone on time. According to AOC's
construction management contractor, the sequence 2 contractor has
installed 4,363 pieces of interior wall stone since the last
hearing, meeting about 91 percent of its production target. By
contrast, the sequence 2 contractor has installed only about 1,590
square feet of floor stone, or about 44 percent of the quantity
specified in a preliminary floor stone installation plan that the
contractor provided to AOC shortly after the February 15 hearing.
In addition, seven of the nine schedule milestones that AOC and we
have been tracking for the Subcommittee for today's hearing are
related to interior wall stone installation, and the sequence 2
contractor has met three of these seven milestones. Although the
sequence 2 contractor has recently increased the number of stone
masons working on the project, delays are likely if the targets
for interior wall and floor stone installation are not achieved.
The targets could possibly be missed if the masons are less
productive than planned, work spaces are not ready or available
for stonework to begin, or the fabricator fails to deliver stone
on time. During the February 15 hearing, we noted that it was
critically important for the CVC team to aggressively address this
area. AOC and its construction management contractor agreed and
have been tracking interior wall stone installation daily. In its
February CVC progress report, AOC's construction management
contractor noted that interior wall stone delivery was the most
critical issue at that time.
o Trade stacking could delay completion. As we discussed during
the Subcommittee's February 15 CVC hearing, trade stacking could
hold up finish work, such as drywall or ceiling installation,
electrical and plumbing work, plastering, or floor stone
installation. This work could be stacked if wall stone is not
installed on schedule. Although the pace of wall stone
installation was essentially maintained in February, it is not,
according to AOC's construction management contractor, sufficient
to eliminate the risk of trade stacking and delays in finish work.
Such a situation could also increase the risk of accidents and
injuries. Hence, it remains important, as we said at the February
CVC hearing, for the CVC team to closely monitor construction to
identify potential trade stacking and promptly take steps to avoid
or, if necessary, address it. The CVC team has also identified
trade stacking as a high risk, and the sequence 2 contractor has
begun to develop area-by-area plans that will show when each
subcontractor will be working in each area. The sequence 2
contractor expects to complete these plans over the next few weeks
and to meet regularly with its subcontractors to review and update
the plans. We believe this is a positive step but note that
further delays in completing wall stone installation could still
limit the available work space, making it difficult for all the
trades to complete their work on schedule. AOC agrees and plans to
monitor this situation during its weekly risk management meetings
with the CVC team.
o Complex building systems remain a significant risk. The CVC
will house 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 also has to be integrated. If
the CVC team encounters any significant problems with their
functioning, either individually or together, during commissioning
or acceptance testing, the project could be seriously delayed. The
shop drawings for the CVC's fire protection system, which are
expected by the end of this week, have not yet been approved by
AOC's Chief Fire Marshal. Delays could arise if the proposed
system does not meet the design specifications or fire protection
code requirements. In addition, the Chief Fire Marshal notes that
delays could arise if the CVC team does not adequately pretest the
system and correct any problems found during the pretesting. The
CVC team is aware of these risks and has been taking steps to
mitigate them as part of its risk management process. During the
Subcommittee's February 15 CVC hearing, we suggested that the CVC
team reassess its risk mitigation plans to ensure that it has
identified the steps necessary to prevent major problems during
the building systems' commissioning or testing and has measures in
place to deal quickly with any such problems should they arise.
AOC agreed and said that the CVC team will be continuously
assessing this situation as part of its risk management process.
It is also important to note that the Chief Fire Marshal's timely
completion of the fire protection system's acceptance testing
depends on his ability to obtain sufficient funding for a
contractor to help his staff perform the tests. We will discuss
this funding issue later in our testimony.
o Building design continues to evolve. The CVC has undergone a
number of design changes. Some of these changes, such as changes
in the exhibit gallery and in the East Front, have resulted in
delays. In addition, designs or shop drawings for some elements of
the project, such as certain security features, space for the
Capitol guide service, and aspects of the facility's fire
protection systems, have not yet been completed or fully approved
and are subject to change. Moreover, eight design changes or
clarifications have been issued since January 25, 2006. Additional
design changes are being considered and have the potential to
cause further delays. During the Subcommittee's February 15 CVC
hearing, we said it would be important for the CVC team to
carefully consider the need for proposed scope and design changes
and try to minimize the impact of necessary changes on the
project's schedule and cost. AOC agreed and said it plans to make
only necessary design changes.
o Multiple critical activity paths complicate schedule
management. In reporting on the project's February 2006 schedule,
AOC's construction management contractor identified 20 critical
activity paths that are important to the project's on-time
completion-2 more paths than the contractor identified in
reporting on the project's January 2006 schedule. According to the
contractor's report on the project's February 2006 schedule,
several of these activities fell behind schedule during the month
and could delay the project's completion if the lost time cannot
be recovered. As we have said in a number of our previous
testimonies on the CVC, 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. During our February 15 testimony,
we said that it would be important for the CVC team to reassess
its capacity to effectively manage and coordinate the schedule and
work for the remainder of the project. According to AOC, the CVC
team has done this and believes that it has the needed capacity.
While we believe that the steps being taken by the sequence 2
contractor to address trade stacking should, if effectively
implemented, help in managing these critical activities, we
continue to be concerned about this issue and plan to monitor it
closely as the project proceeds.
o Opening the CVC and expansion spaces at different times is
likely to result in a temporary cap on CVC occupancy and increase
costs. As we reported during the Subcommittee's February 15 CVC
hearing, AOC's current plan to open the CVC in April 2007 before
the expansion spaces are scheduled for completion is likely to
result in a temporary cap on visitor occupancy and a need to
construct temporary emergency exits for fire and life safety
protection.5 AOC is proposing this sequential approach because it
believes that conducting the acceptance testing for the fire
protection system for the CVC and the expansion spaces
concurrently would delay opening the CVC to the public. Although
AOC has not yet estimated the additional costs associated with the
temporary measures that would need to be taken, it does not
believe they will be substantial. During our February 15
testimony, we said that it would be important for AOC to 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. AOC agreed and said that a
senior superintendent with its construction management contractor
will be evaluating this situation and that AOC will provide the
information to Congress when the evaluation is complete.
Finally, as we have said in previous discussions with AOC, its
construction management contractor, and the Subcommittee, it will
be important for AOC to have adequate analysis and documentation
of the reasons and responsibilities for delays.6 We discussed this
issue with AOC and its construction management contractor again
last week, and they agreed to reassess this area and get back to
us after the reassessment is done. They said that although they
had received requests related to accelerating sequence 2 work,
they had not yet received any requests from contractors for
payment of costs related to delays encountered during sequence 2.
However, they consider such requests likely in the future and
agree that they need good information for evaluating them.
In February, we estimated that the total cost to complete the
entire CVC project would be about $555 million without an
allowance for risks and uncertainties and could be as much as
about $584 million with such an allowance. 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.7 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. Our
subsequent work-completed in preparation for the Subcommittee's
February 15 CVC hearing- indicated that AOC would need about $5
million more, or about $25.6 million in additional funds, to
complete construction without an allowance for risks and
uncertainties. AOC has indicated that it plans to request this
additional $5 million as a supplement to its fiscal year 2007
budget for CVC construction.
In February 2006, AOC contracted with a fire protection
engineering firm, in part, to help AOC's Fire Marshal Division
inspect, test, and review plans for the CVC's fire protection
system. AOC has not yet received the final shop drawings for this
system, but it preliminarily estimates that these contractual
support services will cost about $1,150,000. According to AOC, it
may be able to reduce these expected costs and it will be
exploring ways to do so. On the basis of AOC's preliminary
estimate and belief that the expected costs may be reduced, we
added $1 million to our $555 million estimate of the cost to
complete the entire project without an allowance for risks and
uncertainties, bringing our total estimate to $556 million. We did
not, however, change our $584 million estimate of the cost to
complete the entire project with an allowance for risks and
uncertainties, since contractual support costs for acceptance
testing would be covered under such an allowance. Nor did we
change our $25.6 million estimate of the additional CVC
construction funds AOC would need because AOC has used and plans
to use a different appropriation account to pay for this
contractual support. AOC has used and plans to use its general
administration account because this contractual support is needed
to accommodate an overall increase in the Fire Marshal Division's
workload, including its CVC-related work. AOC plans to use a total
of $200,000 in fiscal year 2006 general administration
appropriations to pay for contractual support for the CVC's
acceptance testing and has requested another $450,000 in fiscal
year 2007 general administration appropriations. After AOC has
received the final shop drawings for the CVC's fire protection
system and has explored ways to reduce the cost of needed
contractor support, it plans to reprioritize its fiscal year 2007
general administration budget request to obtain the remainder of
the funding needed. At this time, AOC expects this amount to be
somewhat less than $500,000, which would bring the total fiscal
year 2007 funding needed for contractual support for CVC
acceptance testing to about $950,000. We plan to monitor and
report to the Subcommittee on these costs as soon as AOC has a
firmer estimate.
Mr. Chairman, this completes our prepared statement. 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,
Scott Riback, and Regina Santucci.
Table 1 compares the actual with the scheduled completion dates
for critical sequence 2 construction milestones scheduled to be
completed by March 15, 2006. Table 2 compares the actual with the
targeted pace of wall and floor stone installation. The targets
for wall stone installation are related to the wall stone
milestones identified in table 1. The preliminary targets for
floor stone installation are related to milestones that are
scheduled to be completed after March 15, 2006.
5According to AOC, the CVC's occupancy at any one time would be
temporarily limited to 3,500, compared with about 4,200, the normal
anticipated occupancy level, until acceptance testing of the fire
protection system for the expansion spaces has been completed.
6See for example: GAO, Capitol Visitor Center: Effective Schedule
Management and Updated Cost Information Are Important, GAO-05-811T
(Washington, D.C.: June 14, 2005).
Need for Additional Funding Has Grown
7Public 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. AOC recently received approval to use more of these funds; we
will discuss this in our testimony for the next CVC hearing.
Contacts and Acknowledgments
Appendix I: Capitol Visitor Center: Critical Construction Milestones and
Stone Installation Targets, February 16-March 15, 2006
Table 1: Critical Construction Milestones, February 16-March 15, 2006
Scheduled Actual
Activity Location completion completion
Wall Stone Area 2 East Front Basement 3/06/06
Wall Stone Area 2 Orientation Lobby Upper Level 2/16/06 3/08/06
Pedestals
Wall Stone Area 1 Orientation Lobby Upper Level 2/20/06 2/20/06
Base
Wall Stone Area 1 Orientation Lobby Upper Level 3/06/06 3/02/06
Wall Stone Area 3 Orientation Lobby Upper Level 3/10/06 2/20/06
Base
Interior CMU East Front Subbasement 2/06/06 2/21/06
Walls
Hang VP Drywall Congressional Auditorium Lower 3/13/06
Ceiling Level
Wall Stone Area 1 East Front Basement 2/20/06
Install Pipe Sta. Utility Tunnel 3/08/06
0+00-2+00
Source: AOC's January 2006 CVC sequence 2 construction schedule for the
scheduled completion dates and AOC and its construction management
contractor for the actual completion dates as of March 13, 2006.
Table 2: Targets for Wall and Floor Stone Installation through March 11,
2006
Pieces of interior wall stone Square feet of interior
stone floor
Week starting Target Actual Preliminary target Actual
13 Feb. 2006 1,060 1,054 500 150
20 Feb. 2006 1,280 1,214 500 0
27 Feb. 2006 1,180 1,046 1,200 740
6 Mar. 2006 1,274 1049 1,400 700
Total 4,794 4,363 3,600 1,590
Source: Sequence 2 contractor for targets and AOC's construction
management contractor for actual amounts installed. According to the
sequence 2 contractor, the targets for floor-stone installation are
preliminary and may change.
(543165)
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