Capitol Power Plant: Status of Utility Tunnel Projects		 
(01-AUG-07, GAO-07-1150T).					 
                                                                 
The Architect of the Capitol (AOC), through the Capitol Power	 
Plant, operates five walkable utility tunnels containing steam	 
and chilled water pipes associated with serving the heating and  
cooling requirements of the U.S. Capitol and over 20 surrounding 
facilities. In our work last fall, we addressed conditions in the
tunnels and AOC's plans for addressing them. The Office of	 
Compliance (OOC), which is responsible for advancing safety,	 
health, and workplace rights in the legislative branch, and the  
tunnel workers had raised concerns about health and safety issues
in the tunnels. As a result of these concerns, in January 2006,  
OOC issued citations for and asked AOC to address a potential	 
asbestos hazard and heat stress conditions in the tunnels. In	 
addition, in February 2006, OOC filed a complaint against AOC	 
concerning hazards in the tunnels, including falling concrete, an
inadequate communication system for these confined spaces, and	 
inadequate escape exits (egresses). According to OOC officials,  
these conditions had been brought to AOC's attention by OOC	 
inspectors as early as 1999, but AOC had not made sufficient	 
progress in addressing them, and conditions in the tunnels had	 
deteriorated further. In June 2007, AOC reached a settlement	 
agreement with OOC to resolve both the citations and the	 
complaint. The settlement agreement calls for the problems in the
tunnels to be resolved within 5 years of the settlement date.	 
This testimony focuses on the projects and other steps AOC is	 
taking to address the tunnel problems and the current schedule	 
and estimated costs for the tunnel projects.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-1150T					        
    ACCNO:   A73747						        
  TITLE:     Capitol Power Plant: Status of Utility Tunnel Projects   
     DATE:   08/01/2007 
  SUBJECT:   Cost overruns					 
	     Inspection 					 
	     Occupational safety				 
	     Protective equipment				 
	     Public utilities					 
	     Repairs						 
	     Safety regulation					 
	     Safety standards					 
	     Schedule slippages 				 
	     Strategic planning 				 
	     Asbestos						 
	     Cost estimates					 
	     AOC Utility Tunnel Improvement Plan		 
	     Capitol Power Plant (DC)				 

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GAO-07-1150T

   

     * [1]Summary
     * [2]AOC Is Taking Steps to Address Issues in the Tunnels

          * [3]Heat

               * [4]Structure

                    * [5]Egress
                    * [6]Communication
                    * [7]Asbestos

     * [8]Project Schedules and Estimated Costs Continue to Be Revised
     * [9]GAO's Mission
     * [10]Obtaining Copies of GAO Reports and Testimony

          * [11]Order by Mail or Phone

     * [12]To Report Fraud, Waste, and Abuse in Federal Programs
     * [13]Congressional Relations
     * [14]Public Affairs

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
Wednesday, August 1, 2007

CAPITOL POWER PLANT

Status of Utility Tunnel Projects

Statement of Terrell G. Dorn, Director
Physical Infrastructure Issues

GAO-07-1150T

Madam Chair and Members of the Subcommittee:

I appreciate the opportunity to be here today to discuss and update the
work we did last fall related to safety issues in the walkable utility
tunnels (referred to as tunnels) managed by the Architect of the Capitol
(AOC).^1 AOC, through the Capitol Power Plant, operates five walkable
utility tunnels containing steam and chilled water pipes associated with
serving the heating and cooling requirements of the U.S. Capitol and over
20 surrounding facilities.^2 In our work last fall, we addressed
conditions in the tunnels and AOC's plans for addressing them. The Office
of Compliance (OOC), which is responsible for advancing safety, health,
and workplace rights in the legislative branch, and the tunnel workers had
raised concerns about health and safety issues in the tunnels. As a result
of these concerns, in January 2006, OOC issued citations for and asked AOC
to address a potential asbestos hazard and heat stress conditions in the
tunnels. In addition, in February 2006, OOC filed a complaint against AOC
concerning hazards in the tunnels, including falling concrete, an
inadequate communication system for these confined spaces, and inadequate
escape exits (egresses). According to OOC officials, these conditions had
been brought to AOC's attention by OOC inspectors as early as 1999, but
AOC had not made sufficient progress in addressing them, and conditions in
the tunnels had deteriorated further. In June 2007, AOC reached a
settlement agreement with OOC to resolve both the citations and the
complaint. The settlement agreement calls for the problems in the tunnels
to be resolved within 5 years of the settlement date.

My statement today will focus on the projects and other steps AOC is
taking to address the tunnel problems and the current schedule and
estimated costs for the tunnel projects. Today's remarks are based on our
prior work, AOC's quarterly reports on improvements to the utility
tunnels, and discussions with AOC's tunnel project executive and project
managers. We also reviewed the June 2007 settlement agreement between AOC
and OOC related to the tunnels.

^1GAO, Capitol Power Plant Utility Tunnels, [15]GAO-07-227R  (Washington,
D.C.: Nov. 16, 2006).

^2Additional steam and chilled water pipes are buried in covered trenches
referred to as nonwalkable tunnels, which are accessible through manholes.
The nonwalkable tunnels also have repair and maintenance needs that were
outside the scope of our work.

Summary

AOC has established a dedicated management team to oversee the tunnel
improvement work, and the projects AOC is implementing to address problems
in the tunnels are in various stages of planning, design, and
construction. In November 2006, we reported that AOC had started to
address problems in the tunnels, but their condition remained
substantially unchanged. AOC has since made progress in addressing the
high heat in one tunnel, continued to remove concrete at risk of falling,
begun to install additional egresses, expanded the current communication
system, and moved forward with some asbestos abatement. While AOC is
taking steps to address the problems in the tunnels and some progress is
being made, it will take focused and sustained management attention,
additional funding, and several years to resolve the problems.

In August 2006, AOC issued a plan to resolve the problems with the utility
tunnels identified in the OOC citations and complaint. According to this
plan, the work would be completed by the middle of fiscal year 2012 and
would cost about $134 million. AOC has since revised many of the project
schedules and cost estimates in the plan, and further revisions are
likely. As of April 2007, AOC estimated the work would cost over $200
million, an increase of at least 50 percent over its initial estimate. AOC
officials attributed this increase to the development of additional
information about the projects. For example, the contract AOC negotiated
for the installation of additional egresses allowed more time and cost
more than AOC initially anticipated because of the impact of working
conditions in the tunnels on the contractor's bid. This newer estimate is,
however, still an early estimate. It is based on limited information and
preliminary decisions about how best to resolve the tunnel problems, and
is expected to change as decisions are made and projects are designed.
Congress has provided $77.6 million in emergency supplemental funding for
the tunnels in fiscal years 2006 and 2007. AOC has obligated most of the
$27.6 million provided in 2006 and spent about 13 percent of this funding.
AOC has not yet submitted to Congress its obligation plan for the $50
million provided in 2007. Congressional approval of this plan is necessary
before AOC can obligate the funds. At this rate of progress and spending,
it will be difficult for AOC to meet its commitment to resolve the tunnel
problems over the next 5 years.

AOC Is Taking Steps to Address Issues in the Tunnels

AOC recently established a dedicated management team, including a project
executive and two project managers, to oversee the tunnel improvement
work, and projects to address the problems in the tunnels are in various
stages of planning, design, and construction. Since last November, AOC has
made some progress in addressing the problems with high heat, delaminating
concrete,^3 insufficient egress, incomplete communication in the tunnels,
and potential asbestos exposure. While these steps are positive, it will
take focused and sustained management attention, additional funding, and
several years to resolve the problems.

    Heat

In one tunnel, AOC has reduced the extreme heat and the potential for heat
stress for tunnel workers that were raised as a major issue for three
tunnels, but heat remains a problem in two tunnels. The heat issue was
made worse after exhaust fans in the tunnels were turned off because of
concerns about asbestos blowing into the air. After testing one tunnel to
ensure there were no indications of asbestos in the air, AOC turned on the
exhaust fans in that tunnel, lessening the heat there, but high
temperatures remain in the two other tunnels. AOC officials noted that the
high heat in the tunnels has affected and can affect the progress of all
work in the tunnels because workers must take frequent breaks to exit the
tunnels and cool off.

    Structure

Some tunnels have problems with concrete that has delaminated from walls
and ceilings, creating a hazard for workers in the tunnels and weakening
the tunnels' structural integrity. AOC's construction management division
continues to remove delaminating concrete in some tunnel sections to
reduce the hazard from falling concrete and has shored portions of the
tunnels as necessary. AOC also has a contractor removing delaminated
concrete in other tunnel sections. This contract includes provisions for
the contractor, in consultation with a structural engineer, to replace the
concrete if necessary. To date, no areas have been identified for
immediate replacement of concrete. AOC officials said it will continue to
evaluate and repair the delaminated sections as necessary.

^3Delaminating concrete is concrete that is separated from the steel
reinforcing and is in danger of falling from the wall or ceiling.

While assessments have reported that none of the tunnels were in danger of
collapse, AOC determined that the roof of one of the tunnels should be
replaced. AOC contracted with the Army Corps of Engineers for the first
phase of this work, which was to replace the ceiling in 100-foot sections.
However, the work is complicated by the tunnel's location under a public
street, and more recent information shows that portions of the walls in
this tunnel may also need to be replaced. AOC has put the construction of
this project on hold to explore alternative approaches to the work that
needs to be completed.

    Egress

The tunnels are considered to be confined spaces that require regularly
spaced emergency exits, or egresses. Work is underway to install two new
egresses in the tunnels, and AOC expects to install additional egresses to
limit the distance between them to no more than 600 feet. According to AOC
officials, this work has taken longer and cost more than originally
expected, in large part because of working conditions in the tunnels.

    Communication

Working in confined spaces such as the tunnels requires the ability to
communicate with workers outside the tunnels for coordination and
emergency rescue in the event of illness or accident. According to AOC
officials, the current communication system, which uses two-way radios,
has been expanded and is operational in the tunnels. However, routine
operations and inspections have revealed "dead spots" in two tunnels,
which AOC is working to address.^4 AOC plans to explore the installation
of a new communication system for the tunnels that would allow for
communication with the U.S. Capitol Police and rescue workers if
necessary. The new system would also indicate a worker's location
automatically.

    Asbestos

When the utility tunnels were constructed in the 1930s and 1950s, asbestos
was used to insulate the steam pipes. In January 2006, OOC issued a
citation calling for AOC to address the potential asbestos hazards in the
tunnels. Since then, AOC has begun repairing damaged asbestos; begun
asbestos removal in some areas; and required anyone entering the tunnels
to wear protective equipment, including respirators. Federal Occupational
Health, a component of the U.S. Public Health Service, is on site to
conduct asbestos monitoring of each team that enters the tunnels and
reports that the results of the monitoring do not indicate exposure to
asbestos above acceptable levels. At the tunnel workers' request, the
National Institute for Occupational Safety and Health (NIOSH) conducted an
investigation of the employees' exposure to certain hazards. Preliminary
findings from NIOSH indicate that there is currently not a general concern
about asbestos exposure that would require protective equipment to be
worn, but heat is a major concern that could in part be reduced by
eliminating the requirement to wear the protective equipment.

^4One of the two tunnels with "dead spots" is a nonwalkable tunnel.

Project Schedules and Estimated Costs Continue to Be Revised

AOC has committed to OOC to resolve the tunnel problems by June 2012, and
as of April 2007 AOC increased its total cost estimate for this work to
over $200 million. AOC officials attributed this increase to the
development of additional information about the projects. AOC has revised
many of the tunnel project schedules and cost estimates that it originally
reported in its August 2006 Utility Tunnel Improvement Plan.

In November 2006, we reported that AOC's August 2006 plan was incomplete,
in part because AOC had not completed its assessment of the tunnels. In
the August plan, AOC developed an initial schedule and cost estimate for
the projects it considered necessary to resolve the problems in the
tunnels. This estimate relied on information on the condition of the
tunnels that was available to AOC at that time. We expressed concern that
the plan did not contain an analysis or discussion of options for
addressing the needs of the tunnels, and we noted that an ongoing
alternatives study to evaluate the long-term use of the existing tunnels
and options for meeting the Capitol Hill Complex's future utility
distribution needs would not be complete until the end of fiscal year
2008. According to AOC officials, they have requested that their
consultant accelerate the alternatives study for the tunnel with the most
structural damage. As we reported in November 2006, this study will
explore the different options for the improvements and related costs that
are considered the best solutions for resolving the tunnel problems and
maintaining a reliable system for providing heating and cooling services
to the Capitol complex.

While AOC has increased its cost estimate for the tunnel improvements to
over $200 million, much of the work that needs to be done is still in the
planning or design phase, and as the work is designed and contracted for,
the cost estimate is likely to change. Already, the cost estimate has
increased at least 50 percent from the $134 million AOC estimated it would
need in August 2006. Schedules for some projects to address the tunnel
problems have slipped and due to remaining uncertainty, delays on some
projects may continue. For example, the awarding of construction contracts
to replace the roof in one tunnel is being delayed while, among other
things, uncertainty related to working in a public street is resolved.

Congress provided $27.6 million in emergency supplemental funding for
tunnel projects in fiscal year 2006. AOC has obligated most of this money
and expended $3.7 million as of July 26, 2007. In June 2007, Congress
appropriated an additional $50 million in emergency supplemental funding,
and AOC has requested $24.8 million in funding for the tunnels in fiscal
year 2008. AOC has not yet submitted to Congress its obligation plan for
the 2007 appropriation. Congressional approval of this plan is necessary
before AOC can obligate the funds. At this rate of progress and spending,
it may be difficult for AOC to meet its commitment to resolve the tunnel
problems over the next 5 years.

Madam Chair, this completes my prepared statement. I would be pleased to
answer any questions that you or Members of the Subcommittee may have.

For further information about this testimony, please contact Terrell Dorn
at (202) 512-6923. Other key contributors to this testimony include Maria
Edelstein and Elizabeth Eisenstadt.

(545064)

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