Capitol Visitor Center: Update on Status of Project's Schedule	 
and Cost as of March 12, 2008 (12-MAR-08, GAO-08-545T). 	 
                                                                 
Today's remarks are based on our review of schedules and	 
financial reports for the Capitol Visitor Center (CVC) project	 
and related records maintained by Architect of the Capitol (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, proposed change order log, and weekly reports on	 
construction progress. In addition, we reviewed the contract	 
modifications made to date.					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-545T					        
    ACCNO:   A81283						        
  TITLE:     Capitol Visitor Center: Update on Status of Project's    
Schedule and Cost as of March 12, 2008				 
     DATE:   03/12/2008 
  SUBJECT:   Accountability					 
	     Construction contracts				 
	     Contract administration				 
	     Contract modifications				 
	     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			 

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Product.                                                 **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************
GAO-08-545T

   

This is a work of the U.S. government and is not subject to copyright 
protection in the United States. It may be reproduced and distributed 
in its entirety without further permission from GAO. Because this work 
may contain copyrighted images or other material, permission from the 
copyright holder may be necessary if you wish to reproduce this 
material separately. 

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 1:30 p.m. EST: 
Wednesday, March 12, 2008: 

Capitol Visitor Center: 

Update on Status of Project's Schedule and Cost as of March 12, 2008: 

Statement of Terrell G. Dorn, Director: 
Physical Infrastructure Issues: 

GAO-08-545T: 

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 February 7, 
2008,[Footnote 1] and (2) the project's expected cost at completion and 
funding status. 

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, proposed change order log, and weekly 
reports on construction progress. In addition, we reviewed the contract 
modifications made to date. 

Summary: 

Since the February 7, 2008, CVC hearing, the project's construction has 
continued, and AOC is still anticipating a November 2008 opening date, 
but risks to the project's schedule remain in several time-critical 
activities, especially fire alarm acceptance testing. This testing has 
been slowed by problems identified in the wiring of the fire alarm 
system and the capacity of the smoke exhaust system. According to AOC 
officials, these problems are being addressed and sufficient 
contingency funds exist to address the costs. Under the current 
schedule, the fire alarm acceptance testing must be completed on time 
for the CVC to open on time. In addition, delays in work on the East 
Front, the Exhibit Gallery, and the House Hearing Room have continued, 
reducing the extra time built into the project's schedule for 
contingencies. These delays pose risks to the project's construction 
schedule, as do the many items on the project's punch list[Footnote 2] 
and a steady number of proposed change orders. At this time, however, 
AOC does not expect the punch list items or the proposed change orders 
to affect the project's completion date. 

AOC's current estimate of the cost to complete the CVC project's 
construction, first reported at the September 25, 2007, hearing, is 
about $621 million. We believe this estimate is reasonable, provided 
there are no unusual delays. To date, about $566.2 million has been 
approved for CVC construction, and AOC has $16.2 million more in fiscal 
year 2008 CVC appropriations that it plans to use for construction 
after it obtains congressional approval to obligate these funds. In 
addition, AOC requested and was recently granted authority to transfer 
$3.2 million from other activities to fund CVC construction. AOC has 
estimated that it will still need an additional $2.6 million in fiscal 
year 2008 to fund CVC construction. Furthermore, AOC has requested 
$31.1 million in fiscal year 2009 funds for CVC construction. Based on 
its current cost-to-complete estimate, AOC believes it will still need 
an additional $2 million in fiscal year 2009 to complete the project. 

Construction Is Nearly Complete, but Risks Remain: 

According to AOC's construction management contractor, in dollar terms, 
the overall CVC project remains 99 percent complete.[Footnote 3] Delays 
in a number of areas, especially in time-critical activities related to 
the fire alarm system, pose risks to the project's schedule. 

Since the last hearing, work on portions of the project's current 
critical path,[Footnote 4] fire alarm acceptance testing, was slowed by 
two issues. Costs and schedule effects of the two issues are uncertain 
at this time, but AOC's preliminary estimates are that working 
additional shifts will eliminate any schedule delays and that 
sufficient project contingency funds exist to address cost issues. The 
first issue was associated with the wiring of the fire alarm system. 
According to the fire marshal, the installed wiring system did not 
sufficiently minimize the negative results of a simulated electrical 
short circuit. AOC plans to remediate the problem by installing 
additional wiring to supplement the existing wiring. Furthermore, 
problems with the CVC's smoke exhaust system, a critical part of the 
building's life safety system, surfaced during pre-testing. The current 
system did not fully meet the design requirements, and according to 
AOC, several large components will have to be replaced. Their 
replacement will take several weeks, AOC says, but since the problem 
was discovered early in the testing process, AOC does not expect it to 
delay AOC's receipt of a temporary certificate of occupancy for the 
project, planned for July 31, 2008. 

Delays in less time-critical areas such as the East Front, the Exhibit 
Gallery, and the House Hearing Room also continued. For example, in the 
East Front Upper Levels, the planned work schedule slipped by 3 weeks 
to allow investigation of a concern raised by the contractor about 
possible movement in the stair treads. The design architect 
investigated the issue and has since determined that the movement was 
acceptable. In addition, work in the House Hearing Room was delayed 
almost 2 weeks because the new steel structure had to be modified to 
support stone and millwork finishes. 

Delays in addressing items on the project's extensive punch list pose 
further risks to the CVC's schedule and call for continued prompt 
attention by AOC and its contractors. For example, work in the Exhibit 
Gallery may continue to fall behind schedule while AOC and its design 
team address fire protection design issues in the Wall of Aspirations. 
In addition, damage to pavers on the East Front plaza has not been 
repaired, and extensive work may be required to prevent further damage. 
Since the last hearing, a design solution was reached for relocating 
the pre-existing PEPCO electrical vaults, which are too high for the 
current landscaping plan. Some landscaping and other work in that area 
will be delayed by about 5 months, and the final cost is uncertain, but 
AOC is comfortable that the project's contingency funds are sufficient. 

Proposed change orders continue to be identified by the CVC team each 
month. AOC and its contractors have continued to work together to 
reduce the number of open (outstanding) proposed change orders, but the 
number of open orders has remained essentially unchanged. Sustained 
attention to this issue is needed to reduce uncertainty about the 
project's costs and to avoid risks to the project's schedule as new 
proposed change orders come in. 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 February 2008[A]: 

[See PDF for image] 

This figure is a multiple line graph depicting outstanding and settled 
proposed change orders by month, March 2006 through February 2008. The 
vertical axis of the graph represents number of PCOs from 0 to 500. The 
horizontal axis of the graph represents various dates, beginning with 
March 21, 2006 and concluding with February 28, 2008. A line depicting 
outstanding PCOs varies between approximately 370 on March 31, 2006 and 
approximately 420 on February 28, 2008. A line depicting PCOs settled 
this month (for each date represented) varies between approximately 30 
and 60 throughout the total time period. 

[A] The most current proposed change order data were complete through 
February 28 rather than through the last day of the month, as for the 
previous months. 

[End of figure] 

AOC's Cost Estimate Remains the Same, and Additional Funds Will Be 
Needed: 

AOC's current estimate of the cost to complete the CVC project's 
construction, first reported at the September 25, 2007, hearing, is 
about $621 million. We believe this estimate is reasonable, provided 
there are no unusual delays. To date, about $566.2 million has been 
approved for CVC construction, and AOC has $16.2 million more in fiscal 
year 2008 CVC appropriations that it plans to use for construction 
after it obtains congressional approval to obligate these funds. In 
addition, AOC requested and was recently granted authority to transfer 
$3.2 million from other activities to fund CVC construction. AOC has 
estimated that it will still need an additional $2.6 million in fiscal 
year 2008 to fund CVC construction. Furthermore, AOC has requested 
$31.1 million in fiscal year 2009 funds for CVC construction. Based on 
its current cost-to-complete estimate, AOC believes it will still need 
an additional $2 million in fiscal year 2009 to complete the project. 

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 on (202) 512-6923 or [email protected]. Other key contributors to this 
testimony include Shirley Abel, Michael Armes, Lindsay Bach, Maria 
Edelstein, Elizabeth Eisenstadt, Jeanette Franzel, Jackie Hamilton, 
Kara Patton, and Joshua Ormond. 

[End of section] 

Footnotes: 

[1] GAO, Capitol Visitor Center: Update on Status of Project's Schedule 
and Cost as of February 7, 2008, GAO-08-475T (Washington, D.C.: Feb. 7, 
2008). 

[2] A punch list identifies tasks, usually minor, to be completed at 
the end of a project. 

[3] In other words, the sequence 2 contractor has received about 99 
percent of the current contract value. This value does not include the 
costs of unsettled proposed change orders, potential claims, and work 
performed outside the current contract, such as the fire marshal's fire 
alarm acceptance testing. 

[4] The 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. 

[End of section] 

GAO's Mission: 

The Government Accountability Office, the audit, evaluation and 
investigative arm of Congress, exists to support Congress in meeting 
its constitutional responsibilities and to help improve the performance 
and accountability of the federal government for the American people. 
GAO examines the use of public funds; evaluates federal programs and 
policies; and provides analyses, recommendations, and other assistance 
to help Congress make informed oversight, policy, and funding 
decisions. GAO's commitment to good government is reflected in its core 
values of accountability, integrity, and reliability. 

Obtaining Copies of GAO Reports and Testimony: 

The fastest and easiest way to obtain copies of GAO documents at no 
cost is through GAO's Web site [hyperlink, http://www.gao.gov]. Each 
weekday, GAO posts newly released reports, testimony, and 
correspondence on its Web site. To have GAO e-mail you a list of newly 
posted products every afternoon, go to [hyperlink, http://www.gao.gov] 
and select "Subscribe to Updates." 

Order by Mail or Phone: 

The first copy of each printed report is free. Additional copies are $2 
each. A check or money order should be made out to the Superintendent 
of Documents. GAO also accepts VISA and Mastercard. Orders for 100 or 
more copies mailed to a single address are discounted 25 percent. 
Orders should be sent to: 

U.S. Government Accountability Office: 
441 G Street NW, Room LM: 
Washington, D.C. 20548: 

To order by Phone: 
Voice: (202) 512-6000: 
TDD: (202) 512-2537: 
Fax: (202) 512-6061: 

To Report Fraud, Waste, and Abuse in Federal Programs: 

Contact: 

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

Congressional Relations: 

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

Public Affairs: 

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

*** End of document. ***