Capitol Visitor Center: Update on Status of Project's Schedule
and Cost as of July 31, 2007 (31-JUL-07, GAO-07-1149T).
Since the June 27, 2007, Capitol Visitor Center (CVC) hearing,
the project's construction has progressed, and according to the
latest schedule, Architect of the Capitol (AOC) is still
projecting a June 27, 2008, completion date and a September 22,
2008 opening date. Work has advanced on the project's heating,
ventilation, and air-conditioning (HVAC) system, interior wall
stone and ceiling installation, and other interior and exterior
construction work. However, some delays have occurred in
activities on the project's critical path (i.e., the work on the
fire alarm system) and on most of its near-critical paths, and
further delays are possible. AOC was able to mitigate the delay
in the project's critical path by reducing the time available for
future fire alarm testing. This action may not produce the
desired results, though, given the complexity of the requirements
for fire alarm testing. Delays in near-critical activities such
as the ceiling close-ins and the House and Senate expansion
spaces have reduced the time reserved for contingencies along
those near-critical paths, but have not yet affected the critical
path. Furthermore, a number of risks to the project's schedule
remain. These include potential problems in completing the
installation, integration, operation, and testing of the fire
alarm, security, and HVAC systems. Recently, for example, AOC's
Chief Fire Marshal completed his initial plan for final
acceptance testing of the fire alarm systems and found additional
complexity in testing requirements that has the potential to
delay the project for a number of months. In addition, the Fire
Marshal has added testing requirements for all of the CVC's smoke
detectors, which could further delay the project's completion.
Given these and other risks to the project's schedule, we believe
that a September 2008 opening date is unlikely. In our view, AOC
will be able to meet or come close to meeting the opening date
only if the CVC team promptly makes significant improvements in
its execution of the project and the project's schedule. At the
November 15, 2006, CVC hearing, we reported that the total cost
of the entire CVC project at completion is likely to be about
$592 million without an allowance for risks and uncertainties,
and over $600 million with such an allowance. Because the
project's expected completion date remains uncertain, we have not
updated these estimates. At the committee's last CVC hearing, we
suggested that AOC update its cost estimate. Given the recent
schedule developments, we continue to believe that AOC should
update its estimate of the cost to complete the CVC project. To
date, about $556.2 million has been approved for CVC
construction, including about $25.2 million in fiscal year 2007
appropriations. For fiscal year 2007, AOC has also received an
additional appropriation of $18.6 million for the CVC project,
which AOC has not yet received approval to obligate. AOC has
indicated that of this amount, approximately $6 million will be
used for construction and $12.6 million will be used for
operations. AOC has also requested $20 million in fiscal year
2008 CVC construction appropriations to cover remaining costs,
and we estimate that AOC may need further appropriations in
future fiscal years for construction claims.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-07-1149T
ACCNO: A73702
TITLE: Capitol Visitor Center: Update on Status of Project's
Schedule and Cost as of July 31, 2007
DATE: 07/31/2007
SUBJECT: Construction contracts
Contract administration
Cost analysis
Cost overruns
Facility construction
Federal facilities
Federal funds
Future budget projections
Public visitor-centers
Risk assessment
Schedule slippages
Strategic planning
Cost estimates
Capitol Visitor Center Project
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GAO-07-1149T
* [1]Summary
* [2]Construction Is Progressing, but Delays in Work on Near-crit
* [3]Cost Estimate Remains Unchanged, but Additional Funds Have B
* [4]Contacts and Acknowledgments
* [5]Order by Mail or Phone
Testimony
Before the Subcommittee on the Legislative Branch, Committee on
Appropriations, House of Representatives
United States Government Accountability Office
GAO
For Release on Delivery
Expected at 9:00 a.m. EDT
Tuesday, July 31, 2007
CAPITOL VISITOR CENTER
Update on Status of Project's Schedule and Cost as of July 31, 2007
Statement of Terrell G. Dorn, Director,
Physical Infrastructure Issues
GAO-07-1149T
Madam Chair and Members of the Subcommittee:
I appreciate the opportunity to be here today to assist the Subcommittee
in monitoring progress on the Capitol Visitor Center (CVC) project. My
remarks will focus on (1) the Architect of the Capitol's (AOC)
construction progress since the last CVC hearing on June 27, 2007; and (2)
the project's expected cost at completion and funding status.^1
Today's remarks are based on our review of schedules and financial reports
for the CVC project and related records maintained by AOC and its
construction management contractor, Gilbane Building Company; our
observations on the progress of work at the CVC construction site; and our
discussions with the CVC team (AOC and its major CVC contractors), AOC's
Chief Fire Marshal, and representatives from the U.S. Capitol Police. We
also reviewed AOC's construction management contractor's periodic schedule
assessments, potential change order log, and weekly reports on the
progress of interior wall and floor stonework. In addition, we reviewed
the contract modifications made to date.
Summary
Since the June 27, 2007, CVC hearing, the project's construction has
progressed, and according to the latest schedule, AOC is still projecting
a June 27, 2008, completion date^2 and a September 22, 2008 opening date.
Work has advanced on the project's heating, ventilation, and
air-conditioning (HVAC) system, interior wall stone and ceiling
installation, and other interior and exterior construction work. However,
some delays have occurred in activities on the project's critical path
(i.e., the work on the fire alarm system) and on most of its near-critical
paths, and further delays are possible.^3 AOC was able to mitigate the
delay in the project's critical path by reducing the time available for
future fire alarm testing. This action may not produce the desired
results, though, given the complexity of the requirements for fire alarm
testing. Delays in near-critical activities such as the ceiling close-ins
and the House and Senate expansion spaces have reduced the time reserved
for contingencies along those near-critical paths, but have not yet
affected the critical path. Furthermore, a number of risks to the
project's schedule remain. These include potential problems in completing
the installation, integration, operation, and testing of the fire alarm,
security, and HVAC systems. Recently, for example, AOC`s Chief Fire
Marshal completed his initial plan for final acceptance testing of the
fire alarm systems and found additional complexity in testing requirements
that has the potential to delay the project for a number of months. In
addition, the Fire Marshal has added testing requirements for all of the
CVC's smoke detectors, which could further delay the project's completion.
Given these and other risks to the project's schedule, we believe that a
September 2008 opening date is unlikely. In our view, AOC will be able to
meet or come close to meeting the opening date only if the CVC team
promptly makes significant improvements in its execution of the project
and the project's schedule.
^1GAO, Capitol Visitor Center: Update on Status of Project's Schedule and
Cost as of June 27, 2007, [6]GAO-07-897T (Washington, D.C.: June 27,
2007).
^2This date does not allow time for installing artifacts in the exhibit
gallery or preparing for operations.
^3The critical path is the single longest path of activities through a
project's schedule. Each day of delay in the critical path could delay the
completion of the entire project. Near-critical paths are the next longest
paths through the project's schedule.
At the November 15, 2006, CVC hearing,^4 we reported that the total cost
of the entire CVC project at completion is likely to be about $592 million
without an allowance for risks and uncertainties, and over $600 million
with such an allowance. Because the project's expected completion date
remains uncertain, we have not updated these estimates. At the committee's
last CVC hearing, we suggested that AOC update its cost estimate. Given
the recent schedule developments, we continue to believe that AOC should
update its estimate of the cost to complete the CVC project. To date,
about $556.2 million has been approved for CVC construction, including
about $25.2 million in fiscal year 2007 appropriations.^5 For fiscal year
2007, AOC has also received an additional appropriation of $18.6 million
for the CVC project, which AOC has not yet received approval to obligate.
AOC has indicated that of this amount, approximately $6 million will be
used for construction and $12.6 million will be used for operations. AOC
has also requested $20 million in fiscal year 2008 CVC construction
appropriations to cover remaining costs, and we estimate that AOC may need
further appropriations in future fiscal years for construction claims.
^4GAO, Capitol Visitor Center: Update on Status of Project's Schedule and
Cost as of November 15, 2006, GAO-07-129T (Washington, D.C.: Nov. 15,
2006).
^5This amount includes $950,000 for contract support for AOC's Fire
Marshal, whose office is funded using AOC's General Administration
account. We are currently reviewing whether the CVC appropriation is
available for such purposes.
Construction Is Progressing, but Delays in Work on Near-critical Paths and Other
Risks Could Affect the Scheduled Completion Date
According to AOC's construction management contractor, in dollar terms,
the overall CVC project is 96 percent complete, compared with 95 percent
reported complete at the June 27 CVC hearing. Twenty-one of the CVC's 23
air handling units were reportedly operating full time as of July 20, and
work to test and balance these systems is currently underway.
Work on the project's critical path--fire alarm testing--was delayed 1
week in June, but AOC mitigated the impact of this delay, AOC's
construction management contractor reported, by reducing the time
available for future fire alarm testing. This action may not produce the
desired results, given complexities that have emerged through further
analysis. As we recommended several months ago,^6 AOC's Chief Fire Marshal
completed his initial plan for final acceptance testing in June and found
additional complexity in the fire alarm testing requirements that has the
potential to extend the time needed for testing and to delay the project
for a number of months. In addition, the Fire Marshal requested further
testing for all of the CVC's smoke detectors.
Delays occurred in 10 of 17 near-critical paths in June. Although, as we
noted at the June 27 CVC hearing, the current schedule includes about 3
additional months for slippages, risks, and uncertainties, further
substantial delays in some near-critical paths could extend the project's
completion date. For example, delays in ceiling installation, a
near-critical-path activity, could limit the installation of fire alarm
devices, a critical-path activity. Work on 5 near-critical paths fell at
least 2 weeks further behind in June. While the date for completing the
CVC's construction remains unchanged, the sequence 2 contractor extended
the schedule for completing the construction of the House and Senate
expansion spaces because of delays in the House hearing room and in
several near-critical-path activities, including testing and balancing the
HVAC system, mounting fire alarm devices, and framing ceilings. As a
result, the schedule for completing the expansion spaces slipped by about
3 weeks--to December 12, 2007--according to the project's June 2007
schedule.
One indicator of construction progress we have been tracking--the
completion date for certain work activities--shows that the project is not
progressing as well as planned. As shown in table 1, the sequence 2
contractor completed 3 of 10 activities on time and completed 1 other
activity late.
^6GAO, Capitol Visitor Center: Update on Status of Project's Schedule and
Cost as of February 16, 2007, GAO-07-507T (Washington, D.C.: Feb. 16,
2007).
Table 1: Activities Being Tracked for the Capitol Visitor Center, June
28-July 31, 2007
Scheduled Actual
Activity Location completion completion
Senate lower
Ceiling installation level 7/11/2007 7/12/2007
House lower
Ceiling installation level 7/11/2007
Fabricate and deliver annunciators Life safety 7/1/2007 5/29/2007
Program/Load system Life safety 7/1/2007
Install, terminate, and test
annunciators Life safety 7/5/2007 6/8/2007
Testing and balancing AHU#12 Auditorium 6/30/2007
East Front
Floor stone ground 7/15/2007
Begin pre-testing Life safety 7/11/2007 6/11/2007
Install fabric ceiling panels LOC tunnel 7/13/2007
East Front
Floor stone principal 7/3/2007
Source: AOC and its construction management and construction contractors.
Two major risks to the project's schedule persist. First, as demonstrated
this month, problems in completing the installation, integration,
operation, and testing of complex, major building systems, including the
fire alarm, security, and HVAC systems, remain the greatest risk. Delays
continue, and technical problems remain a risk until these systems have
been installed, integrated, and successfully tested. Moreover, problems
with these systems may not be evident until their final acceptance
testing.
Second, the number of outstanding proposed change orders for sequence II
work continues to pose a risk to the project's schedule. Even though fewer
proposed change orders were resolved in June than in May (35 compared with
49), the total number of open proposed change orders fell slightly from
451 in May to 443 in June. The large majority (over 80 percent) of the
proposed change orders are in the hands of either AOC's construction
management contractor or sequence II construction contractor for
resolution. Proposed change orders that result in contract modifications
for new work or rework could delay the project's scheduled completion, as
well as possibly increase the project's costs. Even though the dollar
values of recent proposed change orders have been relatively small
compared with the project's total cost, unsettled change order requests
are a cause for concern. Figure 1 compares the number of outstanding
proposed change orders with the number settled each month.
Figure 1: Outstanding and Settled Proposed Change Orders by Month, March
2006 through June 2007
Cost Estimate Remains Unchanged, but Additional Funds Have Been Provided and
More Are Likely to Be Needed
Because the project's expected completion date remains uncertain, we have
not updated our cost-to-complete estimate since the November 15, 2006, CVC
hearing--$592 million without provision for risks and uncertainties and
over $600 million with such provision. At the committee's last CVC
hearing, we suggested that AOC update its cost estimate. Given the recent
schedule developments, we continue to believe that AOC should update its
estimate of the cost to complete the CVC project. To date, about $556.2
million has been approved for CVC construction, including about $25.2
million in fiscal year 2007 appropriations.^7 AOC also received an
additional $18.6 million in fiscal year 2007 appropriations for the CVC
project, which AOC has not yet received approval to obligate. AOC has
indicated that of this amount, approximately $6 million will be used for
construction and $12.6 million will be used for operations. AOC has also
requested $20 million in fiscal year 2008 CVC construction appropriations
to cover remaining costs. In addition to this requested fiscal year 2008
funding, we estimate that AOC may need further appropriations in future
fiscal years for construction claims.
Madam Chair, this completes my prepared statement. I would be pleased to
answer any questions that you or Members of the Subcommittee may have.
Contacts and Acknowledgments
For further information about this testimony, please contact Terrell Dorn
at (202) 512-6923. Other key contributors to this testimony include
Shirley Abel, Lindsay Bach, Maria Edelstein, Elizabeth Eisenstadt,
Jeanette Franzel, Jackie Hamilton, Bradley James, David Merrill, and
Joshua Ormond.
(545063)
^7See footnote 5.
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