-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-06-665T
TITLE: Capitol Visitor Center: Update on Status of Project's
Schedule and Cost as of April 27, 2006
DATE: 04/27/2006
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GAO-06-665T
* AOC Has Moved Construction Forward, but Delays Continue and
* Our Analysis Indicates Later Opening Dates Than AOC Is Propo
* Construction Work Is Progressing
* Indicators Raise Questions about Proposed Opening Dates
* Project's Schedule Remains Vulnerable to Problems, Challenge
* Estimated Project Cost and Funding
* Contacts and Acknowledgments
* GAO's Mission
* Obtaining Copies of GAO Reports and Testimony
* Order by Mail or Phone
* To Report Fraud, Waste, and Abuse in Federal Programs
* Congressional Relations
* Public Affairs
Testimony
Before the Subcommittee on the Legislative Branch, Committee on
Appropriations, U.S. Senate
United States Government Accountability Office
GAO
For Release on Delivery Expected at 10:30 a.m. EDT
Thursday, April 27, 2006
CAPITOL VISITOR CENTER
Update on Status of Project's Schedule and Cost as of April 27, 2006
Statement of Terrell Dorn, Director Bernard L. Ungar, Director Physical
Infrastructure Issues
GAO-06-665T
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 March 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 (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 March 15 CVC hearing, the CVC team has continued
to move the project's construction forward, and AOC is still proposing the
same opening dates-April 2007 for the base CVC project and May 2007 for
the House and Senate expansion spaces-but we continue to believe, as we
said at the March hearing, that the proposed opening dates do not allow
enough time to complete several critical activities and to address
problems, challenges, risks, and uncertainties. Since the March 15
hearing, the installation of critical interior wall and floor stone has
continued, together with other interior and exterior construction work,
and the sequence 2 contractor has further developed plans to prevent trade
stacking2 during finish work. However, the pace of interior wall and floor
stone installation remained below the targeted pace; the dates for
completing the construction of the overall base project and expansion
spaces were extended; and several activities fell behind schedule-not
enough to affect the overall completion dates yet, but increasing the
potential for future delays. In addition, the sequence 2 contractor met
only 1 of the 13 milestones being tracked for this hearing, and this
contractor's monthly billings indicate that construction work is not
likely to be completed on schedule as AOC anticipated. The CVC's fire
protection system has not yet been approved; critical building systems
still have to be commissioned and tested; and although the project's
overall design is essentially complete, certain design or work scope
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 still possibly be opened to the public with a
temporary cap on visitor occupancy in May 2007 and that the expansion
spaces can likely be opened for occupancy beginning in mid-August to early
September 2007. AOC may be able to reduce some of the time scheduled for
the expansion spaces if it implements a phased opening plan and is able to
perform acceptance testing of the CVC and the expansion spaces
concurrently rather than sequentially-possibilities AOC is continuing to
explore. However, the delays that have occurred since the Subcommittee's
last CVC hearing compound the concern we previously expressed that AOC
will be challenged to meet even the later dates we are projecting because
of the problems, challenges, risks, and uncertainties facing the project.
Accordingly, we plan to reassess the project's schedule again this summer.
1GAO, Capitol Visitor Center: Status of Project's Schedule and Cost as of
March 15, 2006, GA0-06-528T (Washington, D.C.: Mar. 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.
As we reported at the Subcommittee's March 15 CVC hearing, we estimate
that the total cost to complete the entire CVC project is about $556
million without an allowance for risks and uncertainties and $584 million
with such an allowance. To date, about $530 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.
This estimate does not allow for risks and uncertainties and takes into
account funding that AOC plans to use from existing appropriations. In
addition, as we indicated during the March 15 hearing, AOC preliminarily
expects to need about $950,000 in fiscal year 2007 AOC general
administration appropriations that Congress has not yet provided 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 determine if it can reduce the amount needed for this
contractual support; we will keep the Subcommittee apprised of this
situation.
AOC Has Moved Construction Forward, but Delays Continue and Risks and
Uncertainties Remain
AOC and it contractors have made progress in a number of areas since the
Subcommittee's last CVC hearing, particularly in installing wall stone in
the orientation and security lobby and in the south atrium. However, some
milestones were pushed back in March. For example, according to AOC's
March 2006 schedule, the base CVC project will have a temporary
certificate of occupancy on February 21, 2007, 6 workdays later than
indicated in the February 2006 schedule, and the House and Senate
expansion spaces will be substantially complete on December 18, 2006, 1
workday later than indicated in the February 2006 schedule. AOC is still
proposing an April 2007 opening date for the base project and a May 2007
occupancy date for the expansion spaces-dates that it believes will
accommodate possible delays and allow start-up time for operations. 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
Schedule slippages that have occurred since the Subcommittee's March 15
CVC hearing, coupled with the challenges, risks, and uncertainties that
continue to face the project, have heightened our concerns about AOC's
ability to open the CVC to the public in April 2007. Consequently, we plan
to reassess the project's schedule again this summer.
Our Analysis Indicates Later Opening Dates Than AOC Is Proposing
We continue to believe, as we testified in March, that the CVC is not
likely to be ready for opening with a temporary certificate of occupancy
before May 2007, about a month later than AOC is proposing. Our projected
opening date is somewhat later than AOC's because certain critical work,
such as interior stonework for the base project and East Front, has not
generally been proceeding as quickly as planned and CVC team managers and
members believe that certain other work, such as finish work, will take
more time than is scheduled to complete. Our projection also assumes that
AOC will be able to address the challenges it faces and takes into account
the time that AOC believes is necessary to prepare for operations after
construction work is completed. However, schedule slippages in March raise
concerns about AOC's ability to overcome these challenges. 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 for the
expansion spaces more likely for three 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. Third, several activities important to the
on-time completion of expansion-space work slipped in March; and at this
time, the sequence 2 subcontractor responsible for this work believes that
additional slippages in some of these activities are likely. However, AOC
has begun to address the problems affecting the progress of the expansion
spaces and plans to reassess this situation as the construction work
proceeds. The expansion spaces could be ready sooner than late summer 2007
if AOC succeeds in addressing the problems and starts acceptance testing
sooner or opens the expansion spaces in phases-possibilities that AOC is
continuing to explore.
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.
Construction Work Is Progressing
According to AOC's construction management contractor, work on the project
has advanced, in terms of both the dollar value of the work in place and
individual project elements. In dollar terms, the overall CVC project was
about 79 percent complete and the sequence 2 work was about 67 percent
complete as of March 31-up from about 77 percent and 63 percent,
respectively, as of February 28. Additionally, wall stone installation
progressed substantially in the orientation and security lobby and in the
south atrium and continued in other areas, such as the great hall and the
East Front's basement level. AOC's construction management contractor
reported additional progress in the CVC's interior, the utility and House
connector tunnels, the House and Senate expansion spaces, and the
building's exterior, such as on the plaza's east side in preparation for
tree planting, which occurred north and south of the auditorium in April.
In fact, AOC's construction management contractor reported that the CVC's
electrical work was ahead of schedule.
Indicators Raise Questions about Proposed Opening Dates
Despite the progress in these areas, problems and delays occurred in other
areas, and several indicators of construction progress that we have been
tracking for the Subcommittee continue to indicate that construction work
is likely to be completed later than AOC currently anticipates. An update
on these indicators follows.
Sequence 2 contractor continues to miss milestones and completion dates
are extended. Starting with the Subcommittee's June 2005 CVC hearing, at
the Subcommittee's request, we and AOC have been selecting and tracking
sequence 2 milestones to help the Subcommittee monitor construction
progress. These milestones include activities that are either on the
project's critical path or that we and AOC believe are critical to the
project's timely completion. As figure 1 shows, the sequence 2 contractor
has generally missed these milestones. For today's hearing, 13 of these
milestones were due to be completed, according to the project's January
2006 schedule. One was completed ahead of schedule; 2 were completed late;
and none of the remaining 10 had been completed as of April 24. (See app.
I.)
Figure 1: Sequence 2 Contractor's Progress in Meeting Selected Milestones
as of CVC Hearing Dates
According to AOC's construction management contractor, the base project's
overall completion date fell 6 workdays behind in March, from February 13
to February 21, 2007. The February 13 date was set in the project's
January 2006 schedule. This 6-workday delay is the net result of delays in
activities on multiple activity paths. In addition, slippages occurred on
15 of 19 critical and near-critical paths that AOC's construction
management contractor identified as important to meeting the base
project's overall completion date.4 These delays occurred in, but were not
limited to, work on the East Front, the upper level of the orientation and
security lobby, the auditorium, the utility tunnel, the assembly room, and
the orientation theaters, and they ranged from 1 to more than 80 workdays.
According to the CVC team, these project 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. Even more important than the
individual delays themselves, however, is their likely impact on the CVC
team's ability to complete construction work on schedule. So many
activities have now fallen behind schedule that even relatively short
additional delays could push back the CVC's overall completion date.
According to the construction management contractor, there are nine
critical and near-critical activity paths in the project's March schedule
that have so little slack time that an additional delay of 1 to 30
workdays could delay the base project's overall completion date. There
were six such paths in the project's February schedule.
Work on the House and Senate expansion spaces fell 1 workday behind
schedule in March, AOC's construction management contractor reported.5
Additionally, and of even greater concern to us, are delays in a number of
near-critical paths. Some of these paths slipped as much as 29 workdays in
March. Although most of the time that was lost in March did not affect the
overall completion date for the expansion spaces, further delays could do
so. Among the activities that were delayed in March were plumbing
installation on the House service level; duct work installation in space
intended for use by the U.S. Capitol Police; testing and balancing of the
heating, ventilation, and air conditioning systems on the Senate upper
level; and completion of the fire alarm system in the House lower level.
According to the CVC team, these activities were delayed because of
problems associated with sequence 1 or other sequence 2 work, delays in
getting approved shop drawings, and delays in completing necessary
predecessor work or in getting design decisions.
4Construction projects typically have one critical path, which is the
sequence of activities having the longest duration through the schedule.
There is no slack time associated with these activities, meaning that a
delay in a critical path activity will delay the entire project unless a
way is found to reduce the time required for other activities along the
critical path. Some projects have multiple critical paths simultaneously;
the CVC essentially has two concurrent critical paths-(1) East Front
mechanical and (2) East Front fire acceptance testing-and many near
critical activity paths which have little slack time. Generally, the more
critical and near-critical activities a project has, the greater is the
risk of late completion because there are more opportunities for slight
delays that can adversely affect the project's completion.
5According to the project's February and March schedules, the overall
completion of the House and Senate expansion spaces remained the same-May
2, 2007. The contract completion date for this work is March 12, 2007.
In early April 2006, we told AOC we were concerned about the increasing
number of delays in expansion space activities and the potential impact of
these delays on the completion of the expansion space work. As further
cause for concern, we noted that the sequence 2 subcontractor doing the
expansion space work was expecting additional delays in some of these
activities and that, in our view, additional design or scope changes were
possible. Although AOC is not planning to open the expansion spaces until
May 2007, timely completion of the expansion space work is important
because certain expansion space work must be completed before the CVC can
be opened to the public. AOC agreed that continued delays in the expansion
space work are of concern and recognized that risks and uncertainties
associated with the work could cause the work to fall farther behind. AOC
has begun to work with the rest of the CVC team to identify and address
problems that have arisen and risks that threaten the work's on-time
completion.
Value of completed work indicates completion later than scheduled. Another
indicator of construction progress that we and AOC's construction
management contractor have been tracking is the value of the completed
construction work billed to the government each month. Both we and the
construction management contractor believe that the sequence 2
contractor's monthly billings, including the bill for March 2006, have
generally not been sufficient to meet AOC's currently scheduled completion
date. While this indicator has some limitations (for example, billings lag
behind construction and the contract's total value does not include the
value of modifications that are beyond modification 85), it is generally
regarded in the construction industry as a useful measure of how likely a
project is to be completed on time. Figure 2 compares the sequence 2
contractor's billings since May 2003 with the project's scheduled
completion date and indicates that the sequence 2 contractor is not likely
to finish construction work by December 2006, as AOC expects, unless the
value of completed work increases significantly. We believe that a
significant increase will be difficult, given the limited number of areas
that will be ready for finish work at any given time.
Figure 2: Total Billings by the Sequence 2 Contractor for the Entire CVC
Project Compared with the Billings Needed to Finish Construction Work on
Schedule
Notes:
1. The early and late lines on this figure reflect the cumulative
billings that would be required to complete the project through
contract modification 85 ($222.8 million total contact value) by
the early and late finish dates shown in the sequence 2
contractor's schedule.
2. The actual line reflects the sequence 2 contractor's actual
monthly billings.
3. Although bills are typically submitted for payment after work
is completed, it is often likely that construction work will be
completed on schedule when the actual billing line falls between
the early and late lines in the figure. With respect to the CVC,
the actual billing line has been trending below, and in March 2006
went below, the late finish line. Even with the lag in billings,
this trend indicates that the amount of work being completed each
month is not sufficient to finish the project on schedule.
Interior stone installation is progressing, but taking longer than
expected. Overall, about 64 percent of the CVC's interior wall stone has
been installed, according to AOC's construction management contractor, and
the sequence 2 contractor installed 5,079 pieces of interior wall stone
during the last 5 weeks, meeting about 94 percent of its 5,384-piece
production target. By contrast, during the same period, the sequence 2
contractor installed about 3,090 square feet of floor stone, or about
one-third of the 9,300 square feet specified in a preliminary floor stone
installation plan that the contractor provided to AOC shortly after the
February 15 hearing. In addition, 7 of the 13 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
met 1 of these 7 milestones. According to the CVC team, the sequence 2
contractor has missed its stone installation targets for a variety of
reasons, including the need to correct problematic sequence 1 work or
properly prepare certain spaces for the installation of wall or floor
stone, a change in wall stone design, late delivery of floor stone, or
delays in some spaces in finishing certain work, such as ceiling work,
that usually precedes floor stone installation. As we have discussed in
the Subcommittee's previous CVC hearings, delays in wall stone
installation can lead to additional delays in completing follow-on work,
such as floor stone installation and finish work. Although the CVC team
has identified unforeseen conditions and problematic sequence 1 work as
risks that could affect the pace of wall stone installation, the team's
efforts to address the risks have not fully prevented these types of
problems from recurring or adversely affecting the project's schedule.
Figures 3 and 4 show the sequence 2 contractor's progress in installing
interior wall and floor stone since January 23 and February 13, 2006,
respectively.
Figure 3: Progress of CVC Interior Wall Stone Installation Compared with
Targets Set by the Sequence 2 Contractor
Figure 4: Progress of CVC Interior Floor Stone Installation Compared with
Preliminary Targets Set by the Sequence 2 Contractor
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 and March 15 CVC
hearings, we continue to 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 and AOC's plans for addressing them follows:
o Trade stacking could delay completion. As we discussed during
the Subcommittee's previous CVC hearings, trade stacking could
hold up finish work, such as drywall or ceiling installation,
electrical and plumbing work, plastering, or floor stone
installation. This work could be stacked because of delays in wall
stone installation. According to AOC's construction management
contractor, the pace of wall stone installation during March has
not been 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 previous CVC hearings, for the CVC team to closely
monitor construction to identify potential trade stacking and
promptly take steps to address it. The CVC team has also
identified trade stacking as a high risk, and since the
Subcommittee's March 15 CVC hearing, the sequence 2 contractor has
continued to develop area-by-area plans that will show when each
subcontractor will be working in each area. The sequence 2
contractor has finished these plans for most of the work areas and
expects to have plans for the remaining areas completed by the end
of this week. According to the sequence 2 contractor, it has been
meeting with its key subcontractors to reach agreement on the
plans and intends to continue meeting regularly with them to
review and update the plans. The sequence 2 contractor pointed out
that these plans add more detail to the project's schedule and
will serve as a tool for addressing the trade-stacking issue.
Although we and AOC agree that these area-by-area plans are
important and should be helpful, we are still concerned about the
potential for trade stacking because of the delays that have
already occurred and the delays that could occur if shop drawings
for the fire protection system are not approved in time to avoid
slippages in follow-on work or if changes are required as a result
of the Fire Marshal Division's review of the drawings.
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.
During the Subcommittee's March 15 CVC hearing, we noted that the
sequence 2 contractor planned to submit the shop drawings for the
CVC's fire protection system for review by March 17. However, the
contractor has not submitted the drawings for the base project as
of April 24, in part because more time was needed to incorporate
changes, AOC's construction management contractor said. AOC
expects the drawings to be submitted by the end of this week.
Delays could arise if the proposed system does not meet the
project's design specifications or the fire protection code's
requirements.6 AOC's Chief Fire Marshal believes that it will take
at least 4 weeks to review these drawings. In addition, the Chief
Fire Marshal notes that delays could occur if the CVC team does
not adequately pretest the system and correct any problems found
during the pretesting. Since the Subcommittee's last CVC hearing,
AOC's commissioning contractor submitted its plan for testing the
performance of the CVC's smoke control system, which is a critical
component of the CVC's fire protection system and must work
properly before the CVC can be opened to the public. This plan has
not yet been approved. In addition, as we have previously noted,
the Chief Fire Marshal's timely completion of the fire protection
system's acceptance testing depends on his ability to obtain
sufficient funding for a contractor to help perform the tests.
Furthermore, difficulties the CVC team has had resolving scope,
design, and cost issues associated with the CVC's technical
security system could adversely affect the schedule for acquiring
and installing cabling and equipment for this system, including
door hardware. The CVC team and representatives from the U.S.
Capitol Police have been working to resolve these problems.
Nevertheless, according to AOC's construction management
contractor, certain changes to the scope of the security work are
likely to set the schedule back to some extent.
o Building design and work scope continue to evolve. The CVC has
undergone a number of design and work scope changes. Since the
project began, AOC's architectural contractor has issued over 180
design changes or clarifications, and as of April 20, 2006,
reported having another 14 in process. In addition, since the
project began, AOC has executed more than 80 sequence 2 contract
modifications valued at over $23 million for work that was not
anticipated.7 Some of these changes, such as changes in the
exhibit gallery and in the East Front, have resulted in delays. In
addition, shop drawings for a number of project elements, such as
the facility's fire protection system, millwork in the food
service area and assembly rooms, and certain portions of the
exhibit gallery, have not yet been fully approved and are subject
to change, and additional design or scope changes are likely given
the project's experience to date. Project design and scope changes
are typically reflected in the development of potential change
orders (PCO), many of which result in contract modifications.
Figure 5 shows the PCOs submitted for consideration for sequences
1 and 2 since September 2003. Although PCOs are not always
approved, they are often regarded as a reasonably good indicator
of likely future design or scope changes that can affect a
project's cost and schedule. Even more important, the adverse
impact of scope and design changes on a project's schedule is
likely to increase as the project moves toward completion. For
example, certain changes to the fire protection system currently
being discussed are likely, if made, to adversely affect the
project's schedule, according to AOC.
6According to the sequence 2 subcontractor that is fitting out the House
and Senate expansion spaces, the delays in getting approved shop drawings
for the fire protection system have already postponed ceiling close ins in
the expansion spaces, and the subcontractor's CVC project director
believes that further such delays pose the single greatest risk to the
completion schedule for the expansion spaces at this time.
7These data exclude sequence 2 contract modifications for work that was
planned but not included in the sequence 2 base contract. Examples include
the fit-out of the House and Senate shell spaces, the construction of the
utility tunnel, and the purchase and installation of food service
equipment.
Figure 5: Cumulative Number of Potential Change Orders Submitted for CVC
Sequences 1 and 2 between September 2003 and April 2006
As the figure indicates, new PCOs for sequence 1 were submitted until
shortly before, and even for several months after, November 2004, when AOC
determined that the sequence 1 contract work was substantially complete.
Similarly, PCOs for sequence 2 are still being submitted, and we have seen
no indication that their submission is likely to stop soon. While not all
PCOs are approved, many are, and it appears likely to us that some of the
design or scope changes indicated in PCOs could lead to contract
modifications that will affect the project's schedule. AOC agrees that it
is important to minimize the impact of proposed design and scope changes.
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 and
March 15 CVC hearings, 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 CVC visitor occupancy and a
need to construct temporary emergency exits for fire and life
safety protection.8 AOC is proposing this sequential approach
because it believes that conducting acceptance testing for the
fire protection system for the CVC and the expansion spaces
concurrently would delay opening the CVC to the public. AOC's
proposed April 2007 opening date for the CVC depends on the timely
completion of work not only on the base project but also on the
expansion spaces, since certain expansion space work must be
completed before the CVC's opening. Inasmuch as work on both the
base project and the expansion spaces was delayed in March, we
believe that it will be especially important to monitor the
progress of construction to determine what additional work (and
funding) may be needed to meet AOC's planned date for opening the
CVC, including what temporary work may be required in the
expansion spaces for the CVC to open before the expansion space
work is complete. According to AOC, it plans to have its
construction management contractor monitor this situation.
o Risks from insufficient stone deliveries remain, but may be
diminishing. According to the sequence 2 contractor, it has, since
the Subcommittee's last CVC hearing, received 12 of the 12.5
truckloads of interior wall stone it was expecting from the stone
fabricator and expects to receive the remaining wall stone needed
for the base project by mid-June 2006. AOC's construction
management contractor reported that as of last week, almost
all-about 98 percent-of the wall stone needed for the core CVC
itself was on site (either installed or awaiting installation);
about 44 percent of the wall stone needed for the atriums and
about 30 percent of the wall stone needed for the East Front were
on site; and none of the wall stone for the House connector,
Library of Congress, and Cannon tunnels had been delivered.
According to AOC and its construction management contractor,
although the supply of interior wall stone was insufficient in
late 2005 and early 2006, it is adequate for the CVC at this time,
given the amount of space available for wall stone installation
and the quantity of stone on hand-over 6,800 pieces. Furthermore,
they said that they do not expect the wall stone supply for the
base project to cause further delays in the CVC's opening,
provided that the fabricator sustains the pace of deliveries,
particularly for the East Front, whose completion is critical to
the CVC's opening. Also, although none of the wall stone for the
House and Senate expansion spaces was on site yet, the
subcontractor responsible for this work is not anticipating
delivery problems at this time. On the other hand, AOC's
construction management contractor reported that no floor stone
was installed during the week of April 10 because, as a result of
a late delivery from the supplier, the installers ran out of floor
stone for the exhibit gallery. The sequence 2 contractor said this
late delivery was unusual for floor stone and no further problems
with floor stone supply were expected.
Finally, as we have said in previous discussions with AOC, its
construction management contractor, and the Subcommittee, it will
be important for AOC to have adequate analysis and documentation
of the reasons and responsibilities for delays.9 On April 11,
2006, AOC executed a contract modification authorizing its
construction management contractor to have one of its managers who
has not been involved in the CVC project assess the adequacy of
this type of information. AOC expects this assessment to be
completed soon.
As we testified during the Subcommittee's March 15 CVC hearing, we
estimate that the total cost to complete the entire CVC project
will be about $556 million without an allowance for risks and
uncertainties and could be as much as about $584 million with such
an allowance. To date, about $530 million has been provided for
CVC construction. This amount includes about $3.6 million that was
made available for either CVC construction or operations and has
been approved for CVC construction by the House and Senate
Committees on Appropriations.10 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
and March 15 CVC hearings-indicated that AOC would need about $5
million more, or about $25.6 million in additional CVC
construction funds, to complete construction without an allowance
for risks and uncertainties. AOC plans to request the additional
$5 million as a supplement to its fiscal year 2007 budget for CVC
construction. This would bring its total request for fiscal year
2007 CVC construction funds to $25.6 million. In addition, AOC has
indicated that it plans to use about $950,000 of the fiscal year
2007 general administration appropriations it has requested for
contractual support for its Fire Marshal Division.
As we stated in our March 15 testimony, AOC believes that it may
be able to reduce the amount of funds it will need in fiscal year
2007 for contractual support in testing the CVC's fire protection
system and plans to explore ways to do so. AOC expects that its
Fire Marshal Division should receive the shop drawings for the
CVC's fire protection system by the first week in May, and the
Chief Fire Marshal believes that his office will need at least 4
weeks to complete its review. It then plans to determine how much
contractual support it will need to test the system and to explore
cost savings possibilities. We plan to monitor and report on these
costs to the Subcommittee as soon as AOC has a firmer estimate.
Also, at this time, it appears that sufficient contingency funding
may be available within the current CVC budget to cover the cost
increases associated with the security system issues we previously
discussed. We will keep the Subcommittee apprised of this
situation.
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,
Joshua Ormond, Scott Riback, and Regina Santucci.
Source: AOC's January 2006 CVC sequence 2 construction schedule
for the scheduled early completion dates and AOC and its
construction management contractor for the actual completion dates
as of April 24, 2006.
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8According 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.
Estimated Project Cost and Funding
9See for example: GAO, Capitol Visitor Center: Effective Schedule
Management and Updated Cost Information Are Important, GAO-05-811T
(Washington, D.C.: June 14, 2005).
10Public Law 108-447, enacted on December 8, 2004, provided that up to
$10.6 million 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 (including about $1.6 million for CVC construction) of
this $10.6 million, leaving a balance of about $7.7 million that could be
used in the future after a rescission amounting to $84,800. AOC recently
received approval to use about an additional $2 million of these funds for
CVC construction, including, for example, the fabrication and installation
of wayfinding signage and the fit-out of the gift shops, and about $2.3
million for CVC operations. Thus, about $3.4 million of the $10.6 million
remains available for approval for use for CVC construction or operations.
Contacts and Acknowledgments
Appendix I: Capitol Visitor Center Critical Construction Milestones, March
16-April 27, 2006
Scheduled Actual
Activity Location completion completion
Frame Plaster Great Hall 3/17/06 4/14/06
Ceiling
Wall Stone Area 3 East Front Basement 3/20/06
Wall Stone Area 5 Auditorium 3/22/06 4/18/06
Wall Stone Area 2 Orientation Lobby 3/27/06
Upper Level
Wall Stone Area 3 Orientation Lobby 3/31/06 3/09/06
Upper Level
Lath Plaster Great Hall 3/31/06
Ceiling
Wall Stone Area 1 East Front Ground 4/03/06
Grid for Wood Orientation Theater 4/03/06
Ceiling
Plaster Ceilings Great Hall 4/06/06
Wall Stone Area 2 East Front Ground 4/17/06
Install Bronze Food Service 4/17/06
Doors
Install Wood Orientation Theater 4/17/06
Ceiling Panels
Wall Stone Area 4 Orientation Lobby 4/21/06
(543169)
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