Federal Courthouse Construction: Estimated Costs to House the	 
L.A. District Court Have Tripled and There Is No Consensus on How
to Proceed (12-SEP-08, GAO-08-889).				 
                                                                 
Since the early 1990s, the General Services Administration (GSA) 
and the federal judiciary (judiciary) have been carrying out a	 
multibillion-dollar courthouse construction initiative. In	 
downtown Los Angeles, California, one of the nation's busiest	 
federal district courts (L.A. Court), the federal judiciary has  
split its district, magistrate, and bankruptcy judges between two
buildings--the Spring Street Courthouse and the Edward R. Roybal 
Federal Building and Courthouse. In 2000 the judiciary requested 
and GSA proposed building a new courthouse in downtown Los	 
Angeles in order to increase security, efficiency, and space. In 
response, Congress authorized and appropriated about $400 million
for the project. GAO was asked to provide information on the	 
construction of the L.A. courthouse. This report answers: (1)	 
What is the status of the construction of a new federal 	 
courthouse in Los Angeles? (2) What effects have any delays in	 
the project had on its costs and court operations? (3) What	 
options are available for the future of the project? GAO reviewed
project planning and budget documents, visited the key sites in  
Los Angeles, and interviewed GSA and judiciary officials. In its 
comments, the judiciary indicated that the report reflects the	 
project's general sequence of events and circumstances, and GSA  
partially agreed with the report's findings related to the	 
delays. 							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-889 					        
    ACCNO:   A84157						        
  TITLE:     Federal Courthouse Construction: Estimated Costs to House
the L.A. District Court Have Tripled and There Is No Consensus on
How to Proceed							 
     DATE:   09/12/2008 
  SUBJECT:   Appropriated funds 				 
	     Bankruptcy 					 
	     Budgeting						 
	     Construction contracts				 
	     Construction costs 				 
	     Cost analysis					 
	     Cost control					 
	     Facility security					 
	     Federal courts					 
	     Federal procurement				 
	     Financial management				 
	     Funds management					 
	     Government facility construction			 
	     Schedule slippages 				 
	     Security assessments				 
	     Cost estimates					 

******************************************************************
** 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-08-889

   

This text file was formatted by the U.S. Government Accountability 
Office (GAO) to be accessible to users with visual impairments, as part 
of a longer term project to improve GAO products' accessibility. Every 
attempt has been made to maintain the structural and data integrity of 
the original printed product. Accessibility features, such as text 
descriptions of tables, consecutively numbered footnotes placed at the 
end of the file, and the text of agency comment letters, are provided 
but may not exactly duplicate the presentation or format of the printed 
version. The portable document format (PDF) file is an exact electronic 
replica of the printed version. We welcome your feedback. Please E-mail 
your comments regarding the contents or accessibility features of this 
document to [email protected]. 

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. 

Report to Congressional Requesters: 

United States Government Accountability Office: 
GAO: 

September 2008: 

Federal Courthouse Construction: 

Estimated Costs to House the L.A. District Court Have Tripled and There 
Is No Consensus on How to Proceed: 

L.A Courthouse: 

GAO-08-889: 

GAO Highlights: 

Highlights of GAO-08-889, a report to congressional requesters. 

Why GAO Did This Study: 

Since the early 1990s, the General Services Administration (GSA) and 
the federal judiciary (judiciary) have been carrying out a multibillion-
dollar courthouse construction initiative. In downtown Los Angeles, 
California, one of the nationï¿½s busiest federal district courts (L.A. 
Court), the federal judiciary has split its district, magistrate, and 
bankruptcy judges between two buildingsï¿½the Spring Street Courthouse 
and the Edward R. Roybal Federal Building and Courthouse. In 2000 the 
judiciary requested and GSA proposed building a new courthouse in 
downtown Los Angeles in order to increase security, efficiency, and 
space. In response, Congress authorized and appropriated about $400 
million for the project. GAO was asked to provide information on the 
construction of the L.A. courthouse. This report answers: (1) What is 
the status of the construction of a new federal courthouse in Los 
Angeles? (2) What effects have any delays in the project had on its 
costs and court operations? (3) What options are available for the 
future of the project? GAO reviewed project planning and budget 
documents, visited the key sites in Los Angeles, and interviewed GSA 
and judiciary officials. In its comments, the judiciary indicated that 
the report reflects the projectï¿½s general sequence of events and 
circumstances, and GSA partially agreed with the reportï¿½s findings 
related to the delays. 

What GAO Found: 

GSA initially estimated in 2000 that the L.A. Court could take 
occupancy of a new courthouse in fiscal year 2006, but occupancy has 
been delayed by 8 years to fiscal year 2014 at the earliest. GSA has 
spent $16.3 million designing a new courthouse and $16.9 million 
acquiring and preparing a new site for it in downtown Los Angeles. 
Since no construction has occurred, about $366.45 million remains 
appropriated for the construction of a 41-courtroom L.A. Courthouse. 
Project delays were caused by GSAï¿½s decision to design a larger 
courthouse than what was authorized by Congress, slow decision making 
by GSA and the judiciary to reduce scope and stay on budget, unforeseen 
cost escalations, and low contractor interest that caused GSA to cancel 
the entire 41-courtroom courthouse project. 

Due to the delays, estimated costs for housing the L.A. Court have 
nearly tripled to over $1.1 billion, rendering GSAï¿½s currently 
authorized 41-courtroom courthouse unachievable and causing the L.A. 
Courtï¿½s problems to persist. Because current cost estimates exceed 
authorized and appropriated amounts, GSA will need to obtain 
congressional approval to move forward on any plan. Meanwhile, almost 
half of the courtrooms in the L.A. Courtï¿½s Spring Street building do 
not meet the judiciaryï¿½s standards for size or security, and the U.S. 
Marshals have chosen not to use the prisoner passageways that exist in 
the building because they are too dangerous and inefficient. The L.A. 
Court also estimates that current courtroom and support space shortages 
will continue to worsen over time. 

GAOï¿½s analysis showed that four options exist for the L.A. Courthouse 
project, which require balancing needs for courtroom space, 
congressional approval, and additional estimated appropriations of up 
to $733 million. First, GSA has proposed building a 36-courtroom, 45-
chamber courthouse to house all district and senior judges and adding 4 
more courtrooms in the Roybal building to house all magistrate and 
bankruptcy judges. The L.A. Court supports this option, but it is the 
most expensive of the remaining options. Second, GSA has proposed 
constructing a new 20-courtroom, 20-chamber building and adding 12 more 
courtrooms to the Roybal building. GSA could begin construction with 
existing funds, but the L.A. Court opposes this option. Third, GSA has 
proposed housing the L.A. court in the existing buildings by adding 13 
courtrooms to the Roybal building and upgrading security at the Spring 
Street building. GSA could begin work on the project with existing 
funds but the L.A. Court also opposes this option. Finally, another 
option, given the lack of consensus and adequate funding, is to restart 
the planning process. Under this option, the remaining $366.45 million 
appropriated for the courthouse could continue to be available for 
meeting the judiciaryï¿½s needs in Los Angeles or be used for other 
purposes through a transfer or rescission. While GAO takes no position 
on this or the other three options, it is clear the current process is 
deadlocked. 

To view the full product, including the scope and methodology, click on 
[hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-08-889]. For more 
information, contact Mark Goldstein at (202) 512-2834 or 
[email protected]. 

[End of section] 

Contents: 

Letter: 

Results in Brief: 

Background: 

Construction of a New Federal L.A. Courthouse Has Experienced Repeated 
Delays Due to Changes in Project Scope, Unforeseen Construction Cost 
Escalation, and Procurement Issues: 

Delays Contributed to L.A. Project Cost Estimates Nearly Tripling and 
Current Problems Persisting: 

Options for the Future of the Project Require Balancing Court Needs 
with Additional Costs and Other Factors: 

Agency Comments and Our Evaluation: 

Appendix I: Los Angeles Courthouse Construction Project Briefing: 

Appendix II: Comments from the Administrative Office of the U.S. 
Courts: 

GAO Comments: 

Appendix III: Comments from the General Services Administration: 

Appendix IV: GAO Contact and Staff Acknowledgments: 

Tables: 

Table 1: GSA Proposals for a New L.A. Courthouse and Years of Delay 
from Original Schedule: 

Table 2: Current and Projected Space Deficits in the L.A. Court: 

Table 3: List of GSA Proposals for Housing the L.A. Court Since 2000: 

Table 4: Three Options for Housing the L.A. Court Currently under 
Consideration: 

Abbreviations: 

GSA: General Services Administration: 

judiciary: federal judiciary: 

L.A. Court: Federal district court in Los Angeles, California: 

OMB: Office of Management and Budget: 

USMS: U.S. Marshals Service: 

[End of section] 

United States Government Accountability Office:
Washington, DC 20548: 

September 12, 2008: 

The Honorable James L. Oberstar: 
Chairman:
Committee on Transportation and Infrastructure: 
House of Representatives: 

The Honorable Eleanor Holmes Norton: 
Chair: 
Subcommittee on Economic Development, Public Buildings, and Emergency 
Management: 
Committee on Transportation and Infrastructure: 
House of Representatives: 

The Honorable Jose E. Serrano: 
Chairman: 
Subcommittee on Financial Services and General Government: 
Committee on Appropriations: 
House of Representatives: 

Since the early 1990s, the General Services Administration (GSA) and 
the federal judiciary (judiciary) have been carrying out a multibillion-
dollar courthouse construction initiative to address the judiciary's 
growing space needs. In downtown Los Angeles, California, at one of the 
nation's busiest federal district courts (L.A. Court),[Footnote 1] the 
judiciary's operations are split between two buildings--the Spring 
Street Courthouse built in 1938 and the Edward R. Roybal Federal 
Building and Courthouse built in 1992. In 1996, the judiciary concluded 
that the split created operational inefficiencies, that it needed 
additional space in downtown Los Angeles, and that the Spring Street 
building had obsolete building systems and poor security, conditions 
which remain today. Consequently, the judiciary ranked Los Angeles as 
its first priority for courthouse construction in fiscal year 2000. GSA 
agreed in 2000 that the existing buildings did not meet the court's 
expansion and security requirements, and that many of the courtrooms in 
the Spring Street building did not meet court design standards. 
Accordingly, the judiciary requested and GSA proposed building a new 
courthouse in downtown Los Angeles. 

In July 2000, Congress authorized GSA to begin designing a new 
courthouse in Los Angeles and has appropriated approximately $400 
million for the project, which matched GSA's estimate at that time for 
completing the project. In December 2004, we reported, and GSA 
acknowledged, that the government would likely incur additional 
construction and operational costs beyond the estimated $400 million 
for the new courthouse.[Footnote 2] You asked that we provide an update 
of the construction of a new courthouse in Los Angeles. To do that, we 
answered the following questions: 

1. What is the status of the construction of a new federal courthouse 
in Los Angeles? 

2. What effects have any delays in the project had on its costs and 
court operations? 

3. What options are available for the future of the project? 

To determine the status of the construction of a new federal courthouse 
and the effects of any delays on project costs and court operations, we 
reviewed key documents dating from 1996 to present, including a project 
time line, project options analysis, planning studies, proposals, and 
other budget data. We toured the current L.A. federal court sites, 
including the Spring Street Courthouse and the Roybal building to 
observe the operational and security conditions of the facilities. In 
addition, we toured the federal building on Los Angeles Street and the 
planned courthouse site. We also interviewed L.A. district and 
magistrate judges and other court officials, the Administrative Office 
of the U.S. Courts, GSA, and the U.S. Marshals Service (USMS) to obtain 
their perspectives on the L.A. courthouse project and determine the 
options available for the future of the project. We conducted our work 
in Los Angeles, California, and Washington, D.C., from January 2008 
through September 2008 in accordance with generally accepted government 
auditing standards. Those standards require that we plan and perform 
the audit to obtain sufficient, appropriate evidence to provide a 
reasonable basis for our findings and conclusions based on our audit 
objectives. We believe that the evidence obtained provides a reasonable 
basis for our findings and conclusions based on our audit objectives. 
This report presents the information we provided to your staff during a 
May 19, 2008, briefing. The briefing slides are included in appendix I. 

Results in Brief: 

GSA initially estimated in 2000 that the L.A. Court could take 
occupancy of a new courthouse in Los Angeles in fiscal year 2006, but 
projected occupancy has been delayed by 8 years to fiscal year 2014 at 
the earliest. GSA has spent $16.3 million designing a new courthouse 
and $16.9 million acquiring and preparing a new site for it in downtown 
Los Angeles. Since no construction has occurred, about $366.45 million 
remains available for the construction of a courthouse in Los Angeles. 
The reasons for the project delays include GSA's decision to design a 
larger courthouse than what was authorized by Congress, slow decision 
making by GSA and the judiciary to reduce scope and stay on budget, 
unforeseen cost escalations, and low contractor interest in the 
project. In 2000, Congress authorized and later funded the design of a 
new courthouse in Los Angeles, based on a 41-courtroom, 1,016,300- 
square-foot GSA prospectus.[Footnote 3] GSA decided instead to design a 
54-courtroom, 1,279,650-square-foot building to meet the judiciary's 
long-term needs. The 54-courtroom building proposal was subsequently 
rejected by the Office of Management and Budget (OMB), according to 
GSA, and not included in the President's budget in fiscal year 2005. 
GSA then had to return to designing a 41-courtroom building, which, 
combined with the unsuccessful effort to obtain approval for a 54- 
courtroom building, delayed the construction of the building by 2 
years, according to a senior GSA official involved with the project. 
This 2-year delay necessitated additional scope and design changes, 
such as the removal of the building-high atrium from building plans, 
which GSA and judiciary were slow to make. Furthermore, unexpectedly 
high construction cost escalations in the L.A. area required additional 
scope reductions and related design delays. Lastly, GSA canceled the 
project due to low contractor interest in bidding on the project. 

The delays have caused the estimated costs for housing the L.A. Court 
to nearly triple to over $1.1 billion, rendering GSA's currently 
authorized 41-courtroom courthouse unachievable with currently 
available funding and causing the L.A. Court's operational and security 
problems to persist. Because current cost estimates exceed authorized 
and appropriated amounts, GSA will need to obtain congressional 
approval to move forward on any plan. Meanwhile, almost half of the 
courtrooms in the L.A. Court's Spring Street building do not meet the 
judiciary's standards for size or security, and USMS has chosen not to 
use the prisoner passageways that exist in the building because they 
are too dangerous and inefficient. The L.A. Court also estimates that 
current courtroom and support space shortages will continue to worsen 
over time. 

Since 2000, GSA has developed eight different proposals for housing the 
L.A. Court, ranging from constructing a new 54-courtroom building to 
making do with the existing buildings, and the three options still 
being considered require balancing needs for courtroom space, 
congressional approval, and additional estimated appropriations of up 
to $733 million. A fourth option is to restart the planning process 
between GSA the judiciary. The four options are as follows: 

* GSA has proposed building a 36-courtroom, 45-chamber courthouse to 
house all district and senior judges and adding 4 more courtrooms in 
the Roybal building to house all magistrate and bankruptcy judges. This 
proposal is supported by the L.A. Court and would not require GSA to do 
significant construction work in an occupied building, but it is the 
most expensive of the three options, requiring additional estimated 
appropriations of $733 million. 

* GSA also has proposed constructing a new 20-courtroom, 20-chamber 
building and adding 12 more courtrooms to the Roybal building. If this 
proposal is approved, GSA could begin work immediately with the 
existing appropriations and the judiciary could eventually vacate the 
Spring Street building. However, the district judges from the L.A. 
Court unanimously oppose this option because they believe it would 

increase the distance over which district judges would be split based 
on the location of the proposed building. Based on GSA estimates, this 
option would require $301.5 million in additional appropriations. 

* GSA has proposed housing the L.A. court in the existing buildings by 
adding 13 courtrooms to the Roybal building, retaining 17 courtrooms 
and upgrading security at the Spring Street building, and moving some 
support functions into the federal building currently located between 
the Spring Street and Roybal buildings. If this proposal is approved, 
GSA could begin work on the project with existing funds and the project 
would maximize the use of the existing federal buildings in downtown 
Los Angeles. However, the L.A. Court also opposes this proposal and it 
would require GSA to make substantial renovations to two buildings 
while they were in use as courthouses. This proposal also would take 
the longest to complete of the three proposals. Based on GSA estimates, 
this option would cost $282.1 million in additional appropriations, but 
these estimates were based on the assumption that work would have 
started by now, which has not occurred. 

* Since there is neither consensus nor adequate funding, another option 
is for GSA and the judiciary to restart the planning process and 
develop a new proposal to meet the long-term needs of the L.A. Court. 
This option would not solve any of the L.A. Court's immediate space, 
operational, or security challenges, but it would help avoid 
permanently implementing one of the plans the judiciary does not 
support. The remaining $366.5 million appropriated for the project 
could remain in place for meeting the judiciary's needs in Los Angeles 
once a project is agreed upon, or it could be used for other purposes, 
such as addressing GSA's $6.6 billion repair and maintenance backlog by 
receiving congressional approval to transfer or rescind funds. 

We are not advocating any of these options. Our intent is to identify 
current options so that Congress and stakeholders can evaluate them. 
Nonetheless, it is clear the current process is deadlocked. 

In its written comments on a draft of this report, the Administrative 
Office of the U.S. Courts indicated that the report reflects the 
general sequence of events and circumstances that have led to the 
current situation. In its written comments, GSA indicated that it 
partially agreed with the report's findings related to the delays in 
the L.A. Courthouse project. The letters are contained in appendixes II 
and III, respectively. 

Background: 

The L.A. courthouse operations currently are split between two 
buildings--the Spring Street Courthouse built in 1938 and the Roybal 
Federal Building built in 1992. The Spring Street building currently 
consists of 32 courtrooms--11 of which do not meet the judiciary's 
minimum design standards for size.[Footnote 4] It also does not meet 
the security needs of the judiciary. The Roybal Federal Building, on 
the other hand, consists of 34 courtrooms (10 district, 6 magistrate, 
and 18 bankruptcy). The space within the L.A. Court's buildings, like 
most courthouses, are divided into courtroom space with associated jury 
and public spaces, chamber space where the judge and staff office space 
is located, cell blocks and other USMS spaces, and other support 
spaces, such as administrative offices. 

Since 2000, the construction of a new L.A. courthouse has been a top 
priority for the judiciary because of the current buildings' space, 
security, and operational problems. Since fiscal year 2001, Congress 
has made three appropriations totaling about $400 million for a new 
L.A. courthouse. In fiscal year 2001, Congress provided $35.25 million 
to acquire a site for and design a 41-courtroom building, and in fiscal 
year 2004, Congress appropriated $50 million for construction of the 
new L.A. Courthouse. In fiscal year 2005, Congress appropriated $314.4 
million for the construction of a new 41-courtroom building in Los 

Angeles, which Congress designated to remain available until expended 
for construction of the previously authorized L.A. Courthouse. 

Construction of a New Federal L.A. Courthouse Has Experienced Repeated 
Delays Due to Changes in Project Scope, Unforeseen Construction Cost 
Escalation, and Procurement Issues: 

Since 2000 when GSA originally proposed building a new courthouse in 
downtown Los Angeles, the project has experienced repeated delays in 
its schedule. In 2000, GSA projected occupancy of a new L.A. courthouse 
by fiscal year 2006. However, after proposing several changes in 
project scope and design and repeated delays, GSA projected in 2008 the 
completion of a new courthouse by fiscal year 2014--a delay of 8 years 
as of now (see table 1). GSA has spent $16.3 million designing a new 
courthouse and $16.9 million acquiring and preparing a new site for it 
in downtown Los Angeles. Since no construction has occurred, about 
$366.45 million remains in GSA's Federal Building Fund[Footnote 5] for 
the construction of a 41-courtroom L.A. Courthouse. 

Table 1: GSA Proposals for a New L.A. Courthouse and Years of Delay 
from Original Schedule: 

Year of proposal: 2000; 
GSA's scheduled occupancy in new courthouse (fiscal year): 2006; 
Years delayed from original schedule: [Empty]. 

Year of proposal: 2003; 
GSA's scheduled occupancy in new courthouse (fiscal year): 2009; 
Years delayed from original schedule: 3. 

Year of proposal: 2004; 
GSA's scheduled occupancy in new courthouse (fiscal year): 2010; 
Years delayed from original schedule: 4. 

Year of proposal: 2008; 
GSA's scheduled occupancy in new courthouse (fiscal year): 2014; 
Years delayed from original schedule: 8. 

Source: GAO analysis of GSA data. 

[End of table] 

The delays were initially caused by GSA's decision to design a 
courthouse much larger than what was authorized by Congress. In fiscal 
year 2001, Congress appropriated[Footnote 6] funds for project design 
for a 1,016,300-square-foot courthouse that corresponded with plans for 
a 41-courtroom courthouse. In November 2001, however, GSA designed a 
1,279,650-square-foot courthouse that contained 54-courtrooms. GSA 
officials said that GSA increased the scope of the project to 
accommodate the judiciary's stated need. Judiciary officials stated 
that the decision was made jointly with GSA and that changes to GSA's 
planning criteria contributed to the increased scope. GSA officials 
disagreed and stated that GSA's planning criteria did not contribute to 
the increase in the scope of the project. A year and a half later, 
after it had conducted the environmental assessments and purchased the 
site for the new courthouse, GSA informed Congress that it had designed 
a 54-courtroom courthouse in a May 2003 proposal. However, OMB did not 
include the 54-courtroom building plan in the President's fiscal year 
2005 budget, which caused GSA to revise its plans and reduce the number 
of courtrooms in the plans for the new L.A. courthouse to 41. According 
to GSA, the 54-courtroom courthouse plan was designed to be readily 
adaptable to a reduced scope, if a larger scope was not approved. 
Nonetheless, a senior GSA official estimated that the initial decision 
to design a 54-courtroom courthouse delayed the project 2 years due to 
redesign and re-procurement requirements. 

This delay caused the project as initially planned to go over budget 
due to inflationary cost escalations, and GSA needed to make further 
reductions to the courthouse in order to procure it within authorized 
and appropriated amounts. However, GSA and L.A. Court officials were 
slow to reduce scope, which caused additional delays and led to the 
need to make additional reductions. For example, GSA did not simplify 
the building-high atrium and associated curtain wall that were 
initially envisioned for the new courthouse until January 2006 even 
though the judiciary had expressed repeated concerns about the 
construction and maintenance costs of the atrium since 2002. In July 
2005, GSA advised the judiciary that the project could not be 
constructed for the appropriated amounts because of material shortages 
and other market factors, and in January 2006, GSA completed a 
redesigned plan with a simplified atrium and curtain wall. In addition, 
it took 18 months for GSA to formally propose reducing the number of 
courtrooms in an attempt to reduce costs. In March 2006, GSA canceled 
the procurement of the new courthouse due to insufficient competition 
when one of the two construction contractors bidding on the 41 
courtroom project withdrew. Yet, it was not until the following year in 
May 2007 that the judiciary proposed reducing the number of courtrooms 
in a new building to 36, and another 4 months before GSA delivered a 
revised 36-courtroom proposal to Congress. 

Additionally, an unforeseen, rapid increase in construction costs 
contributed to delays in the L.A. courthouse project. According to GSA 
officials, construction costs escalated in the L.A. market at more than 
twice the inflation factor used by GSA, necessitating scope reductions 
and redesigns and causing more delays. GSA officials stated that the 
escalations in construction costs, which went as high as 16 percent in 
2006, were unprecedented and unpredictable. According to information 
provided by GSA, construction costs escalated nationwide and also 
affected the construction of a California State courthouse in Long 
Beach, California, which is near Los Angeles. 

Other issues related to the procurement process for the new courthouse 
also contributed to the delays in the L.A. courthouse project by 
diminishing contractor interest in the project or diverting contractors 
to other projects. For example, GSA solicited bids for the construction 
of the neighboring San Diego and L.A. courthouses around the same time. 
According to GSA officials, in hindsight, this may have limited the 
number of potential bidders for the construction of the L.A. courthouse 
as contractors with limited regional capacity chose to bid on the 
smaller San Diego project instead of the L.A. project. Furthermore, the 
L.A. courthouse project was competing with other public works 
construction in the Los Angeles area. GSA officials estimated that $50 
billion worth of public construction projects in the L.A. market, which 
includes increased spending to renovate local schools, further limited 
the number of potential bidders for the L.A. courthouse project. GSA 
officials also stated that they chose a procurement approach designed 
to provide contractors with flexibility in meeting budgeted 
construction costs, but this approach may in actuality have lowered 
contractor interest by making the contractor responsible for more of 
the risk of cost overruns.[Footnote 7] 

Delays Contributed to L.A. Project Cost Estimates Nearly Tripling and 
Current Problems Persisting: 

Over 8 years of delay in GSA's estimated occupancy of the new L.A. 
courthouse, estimates have nearly tripled, rendering GSA's currently 
authorized 41-courtroom courthouse unachievable. In May 2004, GSA 
estimated the 41-courtroom courthouse project would cost about $400 
million, but current estimates for building a new federal courthouse of 
similar scope now exceed $1.1 billion. At this rate, each day of 
additional delay costs about $54,000, assuming current escalation 
rates, according to GSA. Consequently, every 44 days of additional 
delay cost as much as one 2,400-square-foot district courtroom. 
[Footnote 8] 

GSA is currently at a standstill because current cost estimates for a 
41-courtroom courthouse exceed authorized and appropriated amounts and 
the President's fiscal year 2009 budget request did not include any 
funds for the L.A. courthouse project. Consequently, GSA will need to 
obtain congressional approval to move forward on any plan. 
Specifically, all options currently under consideration would require 
approval of a new prospectus and an estimated appropriation of from 
$282.1 million to $733.6 million if cost estimates are still viable. 

Because of the delays in the courthouse project, the operational, 
space, and security issues that made the new courthouse a top priority 
have persisted and in some cases worsened. 

* The L.A. Court's operational problems continue. Housing district and 
magistrate judges in both the Spring Street and the Roybal buildings 
causes operational inefficiencies, according to judiciary officials. 
For example, judges, prisoners, juries, and evidence must be 
transported between buildings, and many judicial offices need to be 
duplicated. In addition, a high-level L.A. Court official said that the 
judiciary has stopped investing in the parts of the Spring Street 
Courthouse for which it is responsible because it expects the judiciary 
to move into a new building. 

* The L.A. Court's space needs persist. L.A. Court officials said that 
the court does not have chamber or courtroom space for four pending 
district judgeships and that it currently faces growing deficits in a 
number of support areas (see table 2). 

Table 2: Current and Projected Space Deficits in the L.A. Court: 

Court office: Court, chamber, and support space; 
Current deficit (in square feet): 133,838; 
Projected 2011 deficit (in square feet): 197,613. 

Court office: Probation; 
Current deficit (in square feet): 3,292; 
Projected 2011 deficit (in square feet): 6,426. 

Court office: District clerk's office; 
Current deficit (in square feet): 6,165; 
Projected 2011 deficit (in square feet): 25,696. 

Court office: Jury Assembly; 
Current deficit (in square feet): 9,635; 
Projected 2011 deficit (in square feet): 9,650. 

Source: L.A. federal district court. 

[End of table] 

* Severe security problems at Spring Street remain. According to USMS 
officials, the Roybal building has strong security, but security at the 
Spring Street building is poor and cannot be improved due to the age 
and design of the building. The Spring Street building lacks a secure 
parking area and secure prisoner corridors for 20 of its 32 courtrooms. 
In addition, USMS officials said that they do not use the prisoner 
corridors that do exist because they are unsafe and do not have holding 
cells just outside the courtrooms in accordance with judiciary security 
standards. In addition, USMS officials said that the security situation 
is worsening in Los Angeles because logs showed a five-fold increase in 
suspicious activities[Footnote 9] in L.A. federal courthouses from 2004 
to 2007. 

Options for the Future of the Project Require Balancing Court Needs 
with Additional Costs and Other Factors: 

Since 2000, GSA has developed eight different proposals for housing the 
L.A. court. Three of them are still under consideration (see table 3); 
proposals still under consideration are bolded in the table and 
identified as options in the rest of the report. Each of the options 
under consideration would require balancing court needs with costs, 
obtaining a new authorization and appropriation, and considering other 
benefits and challenges. 

Table 3: List of GSA Proposals for Housing the L.A. Court Since 2000: 

1: 
Description: Build a 24-courtroom companion building to the Roybal 
building; 
Year GSA developed the proposal: 2000; 
Currently under consideration: No. 

2: 
Description: 
Build a 41-courtroom building; 
Year GSA developed the proposal: 2000; 
Currently under consideration: No. 

3: 
Description: 
Build a 51-courtroom building; 
Year GSA developed the proposal: 2000; 
Currently under consideration: No. 

4: 
Description: Build a 54-courtroom building; 
Year GSA developed the proposal: 2003; 
Currently under consideration: No. 

5: [Bolded] 
Description: 
Build a 36-courtroom building; 
Year GSA developed the proposal: 2007; 
Currently under consideration: Yes. 

6: 
Description: Build a 17-courtroom building; 
Year GSA developed the proposal: 2008; 
Currently under consideration: No. 

7: [Bolded] 
Description: Build a 20-courtroom building; 
Year GSA developed the proposal: 2008; 
Currently under consideration: Yes. 

8: [Bolded] 
Description: Use existing buildings to house the L.A. Court; 
Year GSA developed the proposal: 2008; 
Currently under consideration: Yes. 

[End of table] 

Source: GAO analysis of GSA data. 

Each of these remaining options expands the use of Roybal as a federal 
courthouse to varying degrees and only one option would continue to use 
the Spring Street building as a courthouse (see table 4). 

Table 4: Three Options for Housing the L.A. Court Currently under 
Consideration: 

Description: Option 1: Construct a new 36-courtroom, 45-chamber 
building to house district judges; add 4 more courtrooms to Roybal to 
house the magistrate and bankruptcy judges; and the L.A. Court vacates 
the Spring Street building; 
Total courtrooms: 74; 
Estimated completion date: 2014; 
Estimated new appropriations needed: $733.6 million. 

Description: Option 2: Construct a new 20-courtroom, 20-chamber 
courthouse to house about half of the district judges; add 12 more 
courtrooms to the Roybal building; and the L.A. Court vacates the 
Spring Street building; 
Total courtrooms: 66; 
Estimated completion date: 2014; 
Estimated new appropriations needed: $301.5 million. 

Description: Option 3: Add 13 more courtrooms in the Roybal building, 
retain 17 courtrooms and upgrade security in the Spring Street 
building, and house the remaining court functions in the federal 
building on L.A. Street (located in between the Spring Street and the 
Roybal buildings); 
Total courtrooms: 64; (some below design standards for size); 
Estimated completion date: 2016; 
Estimated new appropriations needed: $282.1 million. 

Source: GAO analysis of GSA data. 

[End of table] 

Each of these options would require congressional approval beyond what 
GSA has already received. In September 2007, GSA drafted the 36- 
courtroom building proposal, but the President did not include any 
funds for the project in his fiscal year 2009 budget request to 
Congress. Then, in March 2008, GSA developed the 20-courtroom building 
proposal, but it has not been authorized and no funds have been 
appropriated to for it. 

Option 1: Build a 36-Courtroom, 45-Chamber Building and Add 4 
Courtrooms to Roybal: 

GSA estimated that this proposed project would cost $1.1 billion 
[Footnote 10]--$733.6 million more than Congress has already 
appropriated--and be completed by 2014 if construction starts in 2009. 
This project would provide the L.A. Court with 74 courtrooms in total, 
including 36 district courtrooms, 20 magistrate courtrooms, and 18 
bankruptcy courtrooms, all of which would meet or exceed the 
judiciary's current design standards for size and security. The main 
advantage of this project is that it would allow a division of 
operational and support activities between the new courthouse and the 
Roybal building according to the function and responsibilities of the 
judges, which court officials and judges said would be more efficient 
than the current split. All the district and senior judges would be 
housed in the new courthouse, while the magistrate and bankruptcy 
judges would be in the Roybal building. In addition, because this plan 
includes a large new building, its implementation would not disrupt 
court operations by substantially renovating space the court 
simultaneously is using. The court favors this plan, in part, because 
it would fulfill its need for a larger building through courtroom 
sharing among senior judges who would occupy the extra chambers in the 
new building. The challenges of building a 36-courtroom courthouse are 
the high costs and the possibility that GSA would face the same 
problems attracting contractors as it did when it attempted to contract 
for the construction of a 41-courtroom building. 

Option 2: Build a 20-Courtroom, 20-Chamber Building and Add 12 
Courtrooms to Roybal: 

GSA estimated that this proposed project would cost $701.1 million 
[Footnote 11]--$301.5 million more than Congress has already 
appropriated--and be completed by 2014 if construction starts in 2009. 
This project would provide the L.A. Court with 66 courtrooms in total, 
including 36 district courtrooms, 20 magistrate courtrooms, and 10 
bankruptcy courtrooms. With congressional approval, GSA could use 
existing funds to begin planning and constructing the new building. In 
addition, the planned 20-courtroom building may be expandable at some 
future time. This plan would also maximize the use of Roybal as a 
courthouse. The challenges of building the 20-courtroom courthouse are 
that district judges would continue to be split between two buildings 
and it is unclear what support operations would move to the new 
building. In addition, the success of this plan relies on GSA's 
obtaining an authorization and appropriation to add 12 courtrooms in 
Roybal. Without that appropriation, the L.A. Court would likely have to 
remain in the Spring Street building--meaning it would be split between 
three buildings, not just two, as is currently the case. Another 
challenge related to the 20-courtroom building plan is that GSA would 
need to build the new courtrooms in Roybal while the building is 
occupied by the L.A. Court. GSA officials said that this type of 
renovation is possible if the most disruptive work is done at night and 
on weekends. However, judiciary officials said that court officials 
often need to work at nights and on weekends. In addition, the L.A. 
district judges unanimously opposed it because it would split district 
judges over a further distance. The proposed location of the 20- 
courtroom building is about a third of a mile further from Roybal and 
the Spring Street Courthouse is. The L.A. Court also opposes this plan 
because it believes that GSA has underestimated the costs, overstated 
the end capacity, and would have trouble attracting bidders for the 
project. 

Option 3: Add 13 courtrooms to Roybal and Upgrade Spring Street 
Building Security: 

GSA estimated that this project would cost $648.4 million--$282.1 
million more than Congress has already appropriated. In 2008, GSA 
estimated that it could complete the project by 2016, but to do so, it 
would have had to start work in January, which it did not do. For 
example, GSA's time line for this project assumed that procurement of 
the design contract would be completed by April 2008; that work has not 
yet begun. This proposal would provide the L.A. Court with 64 
courtrooms in total, which would be composed of 29 district courtrooms, 
17 magistrate courtrooms, and 18 bankruptcy courtrooms. GSA's proposal 
indicated that some of the courtrooms would not meet the judiciary's 
design standards for size. The advantages of this plan are that it 
would maximize the use of GSA's current stock of owned buildings in 
downtown Los Angeles, and that, with congressional approval, GSA could 
use existing funds to begin working on the project. Another advantage 
would be that GSA could sell the site it initially purchased for the 
new courthouse in order to help offset the costs of the project. The 
plan also would attempt to address the security concerns that currently 
exist in the Spring Street building. However, many of the same 
challenges for the 20-courtroom courthouse also exist for this plan, 
including the need to renovate occupied space and a lack of clarity 
about where different support operations would be located. In addition, 
the court's operations would be split further among the Spring Street 
building, the Roybal building, and the federal building located between 
those two buildings. Also, the estimate only covers security upgrades 
for the Spring Street building, not a complete renovation. This project 
also has the longest time until completion of the three projects, 
putting it at greater risk for additional cost escalations. Finally, 
the L.A. Court considers this the worst of the three options. 

Option 4: Restart Planning Process and Possibly Use Remaining Funds for 
Other Purposes: 

Because there is neither consensus nor adequate funding to complete any 
of the plans currently under consideration, another option is for GSA 
and the judiciary to restart the planning process and develop a new 
proposal to meet the long-term needs of the L.A. Court that all 
stakeholders can support. Since GSA has developed numerous proposals on 
housing the L.A. Court, it is difficult to know which one it believes 
is the best solution, and the district judges assigned to the L.A. 
Court unanimously opposed GSA's most recent proposal to build a 20- 
courtroom building. Restarting the planning process would help avoid 
implementing one of the plans that the judiciary does not support. The 
remaining $366.5 million appropriated for the project could remain in 
place for meeting the judiciary's needs in Los Angeles once a project 
is agreed upon, or the funds could be used for other purposes, such as 
addressing GSA's $6.6 billion repair and maintenance backlog by 
receiving congressional approval to transfer[Footnote 12] or rescind 
the funds.[Footnote 13] This option would not address any of the L.A. 
Court's long-standing space deficits, operational problems with a split 
court, or security and other problems related to the Spring Street 
building, and some of the problems would likely worsen until a long- 
term solution could be found. 

We are not advocating this or any of the other three options. Our 
intent is to identify current options so that Congress and stakeholders 
can evaluate them. Nonetheless, it is clear the current process is 
deadlocked. 

Agency Comments and Our Evaluation: 

We provided the Administrative Office of the U.S. Courts and GSA with 
draft copies of this report for their review and comment. In written 
comments, the Administrative Office of the U.S. Courts indicated that 
the report reflects the general sequence of events and circumstances 
that have led to the current situation. The letter also provided 
technical comments that we incorporated, as appropriate. The letter and 
our comments are contained in appendix II. 

In written comments, GSA indicated that it partially agreed with the 
report's findings related to the delays in the L.A. Courthouse project 
and provided additional technical comments that we incorporated, as 
appropriate. In the technical comments, GSA indicated that the 
judiciary has been reluctant to consider any reduction in the scope of 
the project as requested by GSA. Our report indicates that GSA and the 
judiciary were slow to reduce scope to stay on budget. GSA's written 
comments are contained in appendix III. 

We are sending copies of this report to the GSA Administrator and the 
Director of the Administrative Office of the U.S. Courts. We also will 
make copies available to others upon request. In addition, the report 
will be available at no charge on the GAO Web site at [hyperlink, 
http://www.gao.gov]. 

If you or your staff have any questions regarding this report, please 
contact me at (202) 512-2834 or [email protected]. Contact points for 
our Office of Congressional Relations and Public Affairs may be found 
on the last page of this report. GAO staff that made key contributions 
to this report are listed in appendix IV. 

Signed by: 

Mark L. Goldstein: 
Director, Physical Infrastructure Issues: 

[End of section] 

Appendix I: Los Angeles Courthouse Construction Project Briefing (slide 
presentation): 

1Los Angeles Courthouse Construction Project Briefing: 

A Briefing for Congressional Requesters: 

May 19, 2008: 

The L.A. courthouse has been top-priority project for more than a 
decade: 

The federal judiciary (judiciary) ranked the L.A. courthouse as its 
first priority for courthouse construction in fiscal year 2000. 

In its 2000 proposal to design a new courthouse in Los Angeles, GSA 
noted that the current buildings could not meet the L.A. Courtï¿½s 
expansion requirements and some courtrooms did not meet court 
standards. 

A 1996 judiciary facility plan concluded that one of the federal 
courthouses in Los Angeles had poor security and obsolete building 
systemsï¿½problems that remain. 

Key Questions: 

1. What is the status of the construction of a new federal courthouse 
in Los Angeles? 

2. What effects have any delays in the project had on project costs and 
court operations? 

3. What are the options for the future of the project? 

Scope and Methodology: 

* Reviewed key documents dating from 1996 to present, including project 
time line, project options analysis, planning studies, proposals, and 
other budget data. 

* Toured L.A. federal court sites, including the Spring Street 
Courthouse, the Edward R. Roybal Federal Building and Courthouse, the 
federal building on Los Angeles Street, and the planned courthouse 
site. 

* Interviewed L.A. district and magistrate judges and other court 
officials, the Administrative Office of the Federal Courts, the General 
Services Administration (GSA), and the U.S. Marshals Service (USMS). 

* We conducted our work in Los Angeles, California, and Washington, 
D.C., from January 2008 to May 2008 in accordance with generally 
accepted government auditing standards. Those standards require that we 
plan and perform the audit to obtain sufficient, appropriate evidence 
to provide a reasonable basis for our findings and conclusions based on 
our audit objectives. We believe that the evidence obtained provides a 
reasonable basis for our findings and conclusions based on our audit 
objectives. 

Results in brief: 

* The L.A. courthouse project has been delayed by an increase in scope, 
slow decision making, and unforeseen cost escalation. Despite 
congressional authorization for a 41-courtroom building, GSA designed a 
54-courtroom building based on the federal judiciaryï¿½s updated long-
range request. 

* The delays have caused project costs to nearly triple to over $1 
billion, exacerbated the L.A. Courtï¿½s operational and security 
problems, and forced GSA to stop procurement for a project on which it 
has already spent $33.2 million. 

* All options currently being considered require balancing court needs, 
additional funding, and congressional approval. 

Background: 

U.S. district courthouses in Los Angeles ï¿½ 300 North Spring Street: 

Opened in 1938: 

Currently 32 courtrooms (11 do not meet minimum design standards for 
sizeï¿½the federal judiciary considers 3 of them as hearing rooms, not 
courtrooms). 

Current major tenants: U.S. District Court, U.S. Attorneys, USMS, GSA. 

Figure: Photograph of courthouse building. 

[See PDF for image] 

Source: GAO. 

[End of figure] 

U.S. district courthouses in Los Angeles ï¿½ Roybal Federal Building: 

Opened in 1992: 

Currently 34 courtrooms: 

Current major tenants: U.S. District and Bankruptcy Courts, Satellite 
Library, USMS, Drug Enforcement Administration, U.S. Equal Employment 
Opportunity Commission. 

Figure: Photograph of courthouse building. 

[See PDF for image] 

Source: GAO. 

[End of figure] 

Congress has appropriated $400 million for the new L.A. courthouse: 

FY 2001: $35.25 million for site acquisition and design of a 41-
courtroom courthouse: 

FY 2004: $50 million for construction: 

FY 2005: $314.4 million for construction of 41-courtroom courthouse. 

Figure: Illustration of courthouse building. 

[See PDF for image] 

Source: GSA. Reprinted with permission. 

[End of figure] 

[End of section] 

Location of current and planned court buildings: 

Figure: area map: 

[See PDF for image] 

This figure is an illustration depicting the following buildings: 

A. Roybal Federal Building; 
B. Spring Street Courthouse; 
C. Proposed courthouse site; 
D. Federal building; 
E. Veterans Hospital; 
F. Metropolitan Detention Center. 

Also noted are distances between sites: 
Roybal Federal Building to Spring Street Courthouse: .24 miles; 
Spring Street Courthouse to Proposed courthouse site: .60 miles. 

Source: GAO analysis of GSA and Los Angeles Court maps. 

[End of figure] 

Background: GSA has spent $33.2 million on the new L.A. courthouse: 

$399.65 million appropriated; 
$33.20 million spent; 
- $16.3 million to develop building designs; 
- $2.5 million to purchase site; 
- $14.4 million to demolish building on new site; 
$366.45 million remaining. 

[End of background] 

Objective 1: Status of the L.A. courthouse project: 

Status: L.A. Courthouse construction project has experienced repeated 
delays: 

Table: 

Year of proposal: 2000; 
GSAï¿½s scheduled occupancy in new courthouse (fiscal year): 2006; 
Years delayed from original schedule: [Empty]. 

Year of proposal: 2003; 
GSAï¿½s scheduled occupancy in new courthouse (fiscal year): 2009; 
Years delayed from original schedule: 3. 

Year of proposal: 2004; 
GSAï¿½s scheduled occupancy in new courthouse (fiscal year): 2010; 
Years delayed from original schedule: 4. 

Year of proposal: 2008; 
GSAï¿½s scheduled occupancy in new courthouse (fiscal year): 2014; 
Years delayed from original schedule: 8. 

Source: GAO analysis of GSA data. 

[End of table] 

Status: GSA designed a larger building than Congress approved: 

* In fiscal year 2001, Congress appropriated $35 million for design of 
a 41-courtroom building based on an approved proposal for a 
consolidated courthouse. 

* Despite authorization for a 41-courtroom building, GSA designed a 54-
courtroom building in November 2001. 
- GSA officials said they increased the scope of the project in 
response to the judiciaryï¿½s stated need. 
- Judiciary officials said that the decision to change the scope was 
made jointly by GSA and the judiciary and that changes to GSAï¿½s 
planning criteria contributed to the greater need. GSA officials 
disagreed and said that GSAï¿½s planning criteria did not contribute to 
the increase in scope. 

Status: Design of a building larger than what was approved delayed the 
project 2 years: 

* During design, GSA conducted the environmental assessment and 
purchased the site for the new courthouse. 

* On May 2, 2003, GSA prepared a draft proposal for the congressional 
authorizing committees to increase the project to 54 courtrooms. 

* Office of Management and Budget (OMB) did not include the 54-
courtroom building plan in Presidentï¿½s fiscal year 2005 budget, causing 
GSA to reduce design to 41 courtrooms. 

* A senior GSA official estimated that the initial decision to design a 
54-courtroom courthouse delayed the project 2 years due to redesign and 
reprocurement requirements. 

Status: GSA and L.A. Court were slow to reduce scope: 

* Atrium change: 
- Initial building design included a large, building-high atrium and 
associated glass curtain wall. 
- The judiciary expressed repeated concerns about the atrium. 
- In July 2005, GSA advised the judiciary that the project could not be 
constructed for appropriated amounts because of material shortages and 
other market factors. 
- Redesign with simplified atrium and curtain was completed in January 
2006. 

* Reduction in the numbers of courtrooms: 
- In March 2006, GSA canceled the procurement when one of the two 
construction contractors bidding on the 41-courtroom project withdrew. 
- In May 2007, the judiciary proposed reducing the number of courtrooms 
in the proposed building to 36. 
- In September 2007, GSA submitted a revised proposal to OMB to reduce 
costs by removing one floor in the planned courthouse, thereby reducing 
the number of courtrooms by 5 (to 36 courtrooms). 

Status: Rapid cost escalation exacerbated delays: 

* According to GSA, construction cost escalation in the L.A. market was 
more than double the inflation factor used for budgeting purposes 
ï¿½necessitating scope reductions and redesigns that caused more delays. 

* GSA stated that the escalation in construction costs, which went as 
high as 16 percent in 2006, was unprecedented and unpredictable. 

* Information provided by GSA indicates that the cost escalation was 
nationwide and also affected a state courthouse construction project in 
the L.A. area. 

Status: Other factors reduced contractor interest: 

* GSA bid the construction of the San Diego and L.A. courthouses around 
the same time. In hindsight, according to GSA, this may have limited 
the number of bidders. 

* GSA chose a procurement approach designed to provide contractors with 
flexibility in meeting budgeted construction costs, but the approach 
may have lowered contractor interest by placing more of the risk for 
cost overruns on the contractor. 

* GSA estimated that $50 billion worth of public construction projects 
in the L.A. market, such as increased spending on local schools, 
further limited the number of bidders for the L.A. courthouse project. 

[End of Objective 1] 

Objective 2: Effects of any delays on project costs and court 
operations: 

Effects of delays: Project costs have nearly tripled: 

* In May 2004, GSA estimated that the construction project would cost 
about $400 million. Current estimates are over $1.1 billion. 

* GSA estimates it may be able to build a much smaller courthouse with 
the remaining $366.45 million in appropriated funds. 

* Based on current escalation rates, each day of delay costs $54,000, 
according to GSA. Every 44 days of additional delay incur costs equal 
to the cost of one district courtroom. 

Effects of delays: GSA cannot currently move forward on any plan: 

* Cost estimates for a 41-courtroom building now greatly exceed 
authorized and appropriated amounts. 

* All options now under consideration would require approval of a new 
prospectus and the authorization and an estimated appropriation of from 
$282.1 million to $733.6 million. 

* The Presidentï¿½s fiscal year 2009 budget request did not include any 
funds for the L.A. courthouse project. 

Effects of delays: Operational problems continue: 

* Housing district and magistrate judges in both Spring Street and 
Roybal buildings causes operational inefficiencies. 
- Judges, prisoners, juries, and evidence must be transported between 
buildings. 
- As a result, many offices and activities need to be duplicated. 

* A high-level L.A. Court official said that the judiciary has stopped 
investing in the parts of the Spring Street Courthouse for which it is 
responsible because it expects the judiciary to move into a new 
building. 

Effects of delays: Court space needs are not addressed: 

* The L.A. Court indicated that it does not have chamber or courtroom 
space for four pending district judgeships. 

* The L.A. Court indicated that it also lacks sufficient support space. 

Table: 

Court office: Court, chamber, and support space; 
Current deficit: 133,838 square feet; 
Projected 2011 deficit: 197,613 square feet. 

Court office: Probation; 
Current deficit: 3,292 square feet; 
Projected 2011 deficit: 8,144 square feet. 

Court office: District clerk; 
Current deficit: 6,165 square feet; 
Projected 2011 deficit: 25,696 square feet. 

Court office: Jury assembly; 
Current deficit: 9,635 square feet; 
Projected 2011 deficit: 9,650 square feet. 

Source: L.A. Court. 

[End of table] 

Effects of delays: Severe security problems at Spring Street remain: 

* Secure prisoner corridors do not exist for 20 of Spring Streetï¿½s 32 
courtrooms. In addition, USMS officials said that they do not use the 
existing corridors because they are unsafe and do not have holding 
cells outside the courtrooms. 

* USMS officials believe that security at the Spring Street Courthouse 
is poor and cannot be improved due to the age and design of the 
building, but that Roybal has strong security. 

Effects of delays: Severe security problems at Spring Street are 
worsening: 

* USMS officials said that the situation is worsening. 
- USMS is no longer making security upgrades at Spring Street because 
of its uncertain future. 
- Marshalsï¿½ security logs showed a five-fold increase in suspicious 
activities in L.A. federal courthouses from 2004 to 2007. 

Note: In commenting on this report, a USMS official said that USMS has 
started reinvesting in the Spring Street Courthouse. 

[End of Objective 2] 

Objective 3: Current options for the future of the project: 

Options: GSA has developed 8 different proposals for housing the L.A. 
Court: 

1. 24-courtroom companion building (2000). 

2. 41-courtroom building (2000). 

3. 51-courtroom building (2000). 

4. 54-courtroom building (2003). 

5. 36-courtroom building (2007). 

6. 17-courtroom building (2008). 

7. 20-courtroom building (2008). 

8. Use existing buildings (2008). 

Only options 5, 7, and 8 are still under consideration. 

Options: GSA and the judiciary are considering three options for Los 
Angeles: 

1. Build a 36-courtroom building to house district judges; add 4 more 
courtrooms to Roybal to house the magistrate and bankruptcy judges; 
vacate Spring Street. 

2. Build a 20-courtroom building[A] to house about half of the district 
judges; add 12 more courtrooms to Roybal; vacate Spring Street. 

3. Use existing buildings; add 13 more courtrooms in Roybal; keep 17 
courtrooms and upgrade security in Spring Street; house remaining 
functions in federal building on L.A. Street. 

[A] GSA has chosen to pursue the 20-courtroom building over the 17-
courtroom building. 

Options: There is no consensus among stakeholders on how to proceed: 

* All options require congressional approval. 

* In September 2007, GSA drafted a proposal to build a 36-courtroom 
building, but the President did not include any funds for the project 
in his fiscal year 2009 budget request. 

* In March 2008, GSA proposed building a 20-courtroom building and 
expanding Court use of Roybal, but the district judges unanimously 
opposed this proposal because it could further split court operations. 

Options: Options for housing L.A. Court currently under consideration: 

Table: 

Option: Build 36-courtroom building, add 4 courtrooms in Roybal; 
Total courtrooms: 74; 
Estimated completion date: 2014; 
Estimated new appropriations needed: $733.6 million. 

Option: Build 20-courtroom building, add 12 courtrooms in Roybal; 
Total courtrooms: 66; 
Estimated completion date: 2014; 
Estimated new appropriations needed: $301.5 million. 

Option: Add 13 courtrooms in Roybal, upgrade security at Spring Street; 
Total courtrooms: 64 (some below design standards for size); 
Estimated completion date: 2016; 
Estimated new appropriations needed: $282.1 million. 

Source: GAO analysis of GSA data. 

[End of table] 

Option 1: Build a new 36-courtroom building and continue using Roybal: 

* GSA estimate: $1.1 billion ($733.6 million more needed)ï¿½estimate 
includes $161 million to renovate and add 4 courtrooms in Roybal. 

* Courtrooms: 74 (36 district, 20 magistrate, and 18 bankruptcy); 

* Estimated delivery date:2014 if construction starts in 2009; 

* Advantages: Would consolidate each different type of judge (district, 
magistrate, and bankruptcy) in one of two locations; new construction 
would not require renovation of occupied space; would fulfill courtï¿½s 
need for 41-courtroom building through courtroom sharing by senior 
judges; favored by Court; 

* Challenges: High cost; possible difficulty attracting contractors. 

Option 2: Build 20-courtroom building and add 12 courtrooms in Roybal: 

* GSA estimate: $701.1 million ($301.5 million more needed); 

* Courtrooms: 66 (36 district, 20 magistrate, 10 bankruptcy); 

* Estimated delivery date: 2014 if construction starts in 2009; 

* Advantages: Existing funds available for constructing new building; 
design could incorporate future expansion; would maximize use of Roybal 
as courthouse; Court would leave Spring Street; 

* Challenges: District court split over a greater distance; unclear 
what support operations would move to new building; additional 
appropriation of $320 million needed for Roybal; would require 
renovating Roybal while occupied by Court; Court opposes this plan and 
believes cost estimates are low, GSA would have difficulty attracting 
bidders, and capacity is overstated. 

Option 3: Add 13 courtrooms in Roybal and upgrade Spring Street 
security: 

* GSA estimate: $648.4 million ($282.1 million more needed); 

* Courtrooms: 64 (29 district, 17 magistrate, 18 bankruptcy); 

* Estimated delivery date: 2016 (based on several work items starting 
by now that are not yet underway); 

* Advantages: Could start work using existing funds; the site purchased 
for the planned courthouse could be sold to offset costs; would 
maximize use of current stock; would address some safety concerns in 
Spring Street Courthouse; 

* Challenges: All of the challenges associated with option 2; would 
further split Court with some operations in Federal Building; would 
require that the L.A. Court occupy spaces below its design standards; 
estimate includes security but not a full renovation of Spring Street; 
longest lead time increases risk associated with cost escalation; Court 
considers this the worst option. 

Additional Option: Restart planning and possibly reapply remaining 
funds: 

* Another option is for GSA and the judiciary to restart the planning 
process and develop a new proposal for housing the L.A. Court that all 
stakeholders can support. The $366.5 million appropriated for the 
courthouse could remain available for meeting the judiciaryï¿½s needs in 
Los Angeles or be used for other purposes through a transfer or 
rescission. 

* Advantages: Would avoid permanently implementing one of the plans 
that the judiciary opposes and could allow the appropriated funds to be 
used for other purposes, lessening the financial pressure to do 
something right now; 

* Challenges: Space deficits and problems with a split court and Spring 
Street would remain. 

Concluding observations: 

* Delays from exceeding the congressional authorization and slow 
decision making, paired with unexpectedly high cost escalation rates, 
rendered the currently authorized prospectus for a new 41-courtroom 
building unachievable with currently appropriated funds. 

* Stakeholders do not agree on how to proceed. 

* GSA has developed numerous proposals on the L.A. courthouse and 
currently supports the 20-courtroom courthouse. The federal judges in 
Los Angeles unanimously opposed GSAï¿½s most recent proposal to build a 
20-courtroom building. 

[End of Appendix I] 

Appendix II: Comments from the Administrative Office of the U.S. 
Courts: 

Note: GAO comments supplementing those in the report text appear at the 
end of this appendix. 

Administrative Office Of The United States Courts: 
"A Tradition Of Service To The Federal Judiciary" 
James C. Duff, Director: 
Washington, D.C. 20544: 

August 25, 2008: 

Mr. Mark Goldstein: 
Director, Physical Infrastructure: 
U.S. Government Accountability Office: 
441 G Street, N.W. 
Washington, DC 20548: 

Dear Mr. Goldstein: 

Thank you for the opportunity to review and comment on the Government 
Accountability Office's (GAO) draft report entitled L.A. Federal 
Courthouse Project: Estimated Costs Have Tripled Due to Delays and 
There Is No Consensus on How to Proceed (GAO-08-889). We appreciate 
GAO's efforts to bring some clarity to a very complex series of events. 
Overall, the draft report reflects the general sequence of events and 
circumstances that have led to the current situation. This letter 
includes suggested clarifications to provide an even more accurate 
report to the requesting Congressional Committees. 

The Judiciary has been informed for several years by the General 
Services Administration (GSA) that increasing escalation costs would 
affect the construction of a courthouse of the size originally 
authorized by Congress. Although the Judiciary is not responsible for 
designing courthouses, it exercised due diligence from the onset of the 
budget problems by working collaboratively with the GSA on cost saving 
measures as well as suggesting that GSA modify the project design to 
provide enhanced flexibility and courtroom sharing opportunities. 
Option 1 is the result of the Judiciary using its own funding to 
develop a cost-saving, simplified floor plan for a 36-courtroom, 45-
chambers building, which GSA subsequently endorsed. This solution 
includes utilization of the Edward R. Roybal Federal Building and 
Courthouse (Roybal building) to the maximum extent practical and is the 
most cost-effective solution for the long-term housing needs of the 
district court in downtown Los Angeles. 

History and Planning Criteria: 

* When the project was first initiated in 1997, GSA requested that the 
court project its space requirements for 10 years from design. The 
Judiciary provided the court's 10-year needs (through 2007) for 51 
courtrooms and 54 chambers for district, senior, and magistrate judges. 
When GSA prepared to seek authorization for additional design and 
construction in 2001, it recognized that the delays that had been 
experienced would likely result in a building that would be fully 
occupied and possibly outgrown by the time it was constructed and 
occupied. As a result, GSA requested that the court update its space 
requirements to 2011 and subsequently, GSA submitted a construction 
prospectus for 54 courtrooms and 60 chambers. 

* The rationale for GSA moving forward with a 41-courtroom, 40-chambers 
project was never made clear to the Judiciary. It would be helpful if 
the report explained more clearly why GSA requested a 41-courtroom 
facility and why the original scope was changed in GSA's 2001 design. 
[See comment 1] 

List of GSA Proposals for Housing the Los Angeles Court: 

* On page 13, the draft report states that proposals 5, 7 and 8 are 
under consideration. The Judiciary is only considering proposal 5 (also 
referred to as Option 1) but would also consider proposal 1, if GSA 
were willing to consider constructing a companion building that was 
properly sized on the site of the existing 300 N. Los Angeles Federal 
Building and physically connected to the Roybal building. 

Options for Housing the Los Angeles Court: 

* Option 1: The draft report states at page 15 that the main advantage 
of this project is that all courts (district, magistrate, and 
bankruptcy) would be housed in a single building. This is not correct 
as the Roybal building would continue to be utilized by magistrate 
judges and bankruptcy judges, and the district judges would be in the 
new courthouse. Option 1 would allow a division of operational and 
support activities between the new courthouse and the Roybal building 
according to the function and responsibilities of the judges. [See 
comment 2] 

We suggest that GAO's final report will also reflect the Judiciary's 
concerns about the following non-viable options. 

* Option 2: This option for a 20-courtroom courthouse is reported as 
having expansion capability on the current site. The Judiciary 
understands the cost estimate is based on a four courtroom-per-floor 
layout which leaves insufficient room for expansion. Required security 
setbacks would also limit expansion. A two courtroom-per-floor layout 
would have a different initial build-out cost and difficult expansion 
challenges. [See comment 3] 

* Option 3: The bankruptcy court was never part of the district court 
project, yet this option assumes a certain number of bankruptcy 
courtrooms will be available for district court use without a thorough 
and comprehensive assessment of the bankruptcy court's district-wide 
and future needs. If the assumption of available bankruptcy courtrooms 
is not accurate, there will be far fewer courtrooms available for the 
district court's use. Given the sub-prime market lending issues 
affecting the housing market, bankruptcy filings are already 
increasing. Also, space must be found for bankruptcy judges who will be 
dislocated from another divisional office, whose lease expires because 
that building is planned to be demolished. These factors will certainly 
have an impact on the number of courtrooms that can be built or altered 
for the district court's use as proposed in Option 3. [See comment 4] 

* Options 2 & 3: The Judiciary's reservations regarding undertaking 
major construction activity in an occupied building are significantly 
greater than the report indicates. GSA is required to update code 
requirements and security criteria in major renovation projects which 
will greatly impact building systems such as elevators, heating, 
ventilation, air conditioning, sprinklers, other life safety systems, 
building egress, structure, and building security. These issues, as 
well as the need for swing space and complicated phasing, based on our 
experience with similar projects, have not been fully accounted for in 
the project budget or schedule. [See comment 5] 

* Options 3 & 4: Option 3 suggests that GSA could sell the site it 
initially purchased for the new courthouse and Option 4 suggests that 
the remaining $366.5 million appropriated for the project could be 
transferred to use for other purposes or be rescinded. Given that 
millions of dollars have already been expended to acquire this site and 
design a building that takes into account the site's unique footprint, 
the Judiciary does not believe that selling the site is in the best 
interest of the public. 

Moreover, the Committee report accompanying the House-reported 2009 
Financial Services and General Government Appropriations bill includes 
language in the GSA section stating that funding previously provided 
for the L.A. project and proceeds from any sale of the land cannot be 
used for any purpose other than addressing the housing needs of the Los 
Angeles Division of the Central District of California. The Judiciary 
supports the inclusion of this language in the final Conference report 
on this bill. Additionally, transferring or rescinding the balance 
would make it more difficult to obtain funding for the L.A. project in 
the future because the total cost of the project would have to be 
funded rather than the amount needed in addition to the $366.5 million 
currently available. 

Cost Estimates: 

* The draft report states that costs have nearly tripled from the 
original GSA estimate of $400 million to $1.1 billion. The $1.1 billion 
figure overstates the costs, however, because it includes the cost to 
overhaul the building systems and infrastructure in the Roybal 
building. This cost was never part of the original $400 million 
project. [See comment 6] 

Existing Courtrooms: 

The background section of the report should reflect the following 
information. 

* The correct number of existing courtrooms in the Spring Street 
Courthouse is 32, three of which are undersized and functionally 
unusable for court proceedings. Only half of the remaining courtrooms 
meet the Judiciary's standards for size, and none of the courtrooms 
meet the U.S. Marshals Service criteria for security. 

* The draft report groups all 34 existing courtrooms in the Roybal 
building into one category. The 18 bankruptcy courtrooms, however, lack 
prisoner circulation, holding cells, adequate jury facilities and 
therefore cannot be easily or cost-effectively converted for district 
judge or magistrate judge use. [See comment 7] 

For almost a decade, the need for a new courthouse in Los Angeles has 
been a high facilities priority for the Judiciary. There are serious 
operational, infrastructure, and security concerns with the current 
facilities, which all stakeholders agree must be addressed. The draft 
report suggests there is an option to start over. Delays will only 
increase costs further while the housing needs become more urgent. We 
hope the GAO report will provide sufficient information to enable 
Congress to take timely action in supporting the option for a 36-
courtroom, 45-chambers building that the Judiciary views as the most 
cost-effective solution for the long-term housing needs of the district 
court in Los Angeles. 

We appreciate the cooperative efforts of the GAO team in working with 
the Judiciary on this complex assignment. 

Sincerely, 

Signed by: 

James C. Duff: 
Director: 

cc: 
Honorable Alicemarie H. Stotler: 
Honorable Joseph F. Bataillon: 
Honorable Stephen M. McNamee: 
Honorable Margaret M. Morrow: 

The following are GAO's comments on the Administrative Office of the 
U.S. Courts' letter dated August 25, 2008. 

GAO Comments: 

1. The Administrative Office of the U.S. Courts indicated that 
additional details on the reasoning behind the decision to propose a 41-
courtroom courthouse would be helpful. GSA officials said that the 
decision to propose a 41-courtroom courthouse was based on 80 percent 
of the federal judiciary's stated need at the time--80 percent of 51 
courtrooms is approximately 41--and that the judiciary could fit within 
that space by sharing courtrooms. We added this information to the body 
of the report. 

2. We clarified the report in response to this comment. 

3. We did not do a detailed assessment of the possible 20-courtroom 
courthouse plan and, consequently, did not assess whether it provides 
space for future expansion. However, there may be design concepts that 
would leave sufficient room for expansion on the 3.7-acre site, which 
originally supported the 54-courtroom courthouse plan developed by GSA. 

4. Our report does not make any statements related to the number of 
bankruptcy courtrooms required by the federal judiciary in Los Angeles, 
but does list the number of those courtrooms that GSA projects for each 
of the current options thus shows that the 20-courtroom courthouse 
option would provide 8 fewer bankruptcy courtrooms in Los Angeles than 
the other options currently being considered. 

5. Assessing the validity of GSA's project budget and schedule were 
outside the scope of this report. The U.S. House of Representatives, 
Committee on Transportation, Subcommittee on Economic Development, 
Public Buildings, and Emergency Management requested this information 
from the GSA Inspector General. 

6. We have clarified the report to reflect that the estimated costs to 
house the L.A. Court have tripled. 

7. We clarified the report to reflect that Roybal currently houses 10 
district, 6 magistrate, and 18 bankruptcy courtrooms. 

[End of section] 

Appendix III: Comments from the General Services Administration: 

U.S. General Services Administration: 
GSA Administrator: 
1800 F Street, NW: 
Washington, DC 20405-0002: 
[hyperlink, http://www.gsa.gov] 

August 19, 2008: 

The Honorable Gene L. Dodaro: 
Acting Comptroller General of the United States: 
U.S. Government Accountability Office: 
Washington, DC 20548: 

Dear Mr. Dodaro: 

The U.S. General Services Administration (GSA) appreciates the 
opportunity to review and comment on the draft report, "Los Angeles 
(L.A.) Federal Courthouse Project: Estimated Costs Have Tripled Due to 
Delays and There Is No Consensus on How to Proceed" (GAO-08-889). The 
Government Accountability Office identified delays contributed to the 
LA Courthouse project and options for future consideration for 
completing the project. 

We partially agree with the findings relative to the delays. Technical 
comments that update and clarify statements in the draft report are 
enclosed and incorporated herein by reference. We will work with the 
Administrative Office of the United States Courts and the Congress to 
implement the most viable option for completing the LA Courthouse 
project. 

If you have any questions, please contact me. Staff inquiries may be 
directed to Mr. Kevin Messner, Associate Administrator, Office of 
Congressional and Intergovernmental Affairs, at (202) 501-0563. 

Sincerely, 

Signed by: 

David L. Bibb: 
Acting Administrator: 

Enclosure: 

[End of section] 

Appendix IV: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Mark L. Goldstein, (202) 512-2834, or [email protected]: 

Staff Acknowledgments: 

In addition to the individual named above, David Sausville, Assistant 
Director; Keith Cunningham; Bess Eisenstadt; Susan Michal-Smith; 
Jennifer Kim; and Susan Sachs made key contributions to this report. 

[End of section] 

Footnotes: 

[1] California is divided into four judicial districts and the L.A. 
Courthouse is located in the Central District. 

[2] GAO, L.A. Federal Courthouse Project: Current Proposal Addresses 
Space Needs, but Some Security and Operational Concerns Would Remain, 
[hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-05-158] (Washington, 
D.C.: Dec. 20, 2004). 

[3] GSA officials said that the decision to propose a 41-courtroom 
courthouse was based on 80 percent of the federal judiciary's stated 
need at the time and that the judiciary could fit within that space by 
sharing courtrooms. 

[4] The judiciary considers three of the courtrooms in the Spring 
Street building to be hearing rooms and not courtrooms. 

[5] The Federal Building Fund is a revolving fund used, among other 
things, for GSA's courthouse construction projects. 

[6] Before Congress makes an appropriation, GSA submits to the House 
Committee on Transportation and Infrastructure and the Senate Committee 
on Environment and Public Works detailed project descriptions, called 
prospectuses, for authorization by these committees when the proposed 
construction, alteration, or acquisition of a building to be used as a 
public building exceeds a specified threshold. On July 26, 2000, the 
House Committee on Transportation and Infrastructure and the Senate 
Committee on Environment and Public Works approved a prospectus for the 
L.A. Courthouse project. (See 40 USC S3307). 

[7] In commenting on a draft of this report, GSA indicated that this 
assessment was based on information acquired from the current southern 
California construction market and was specifically related to very 
large, long-term federal projects. 

[8] This estimate does not include all of the support space associated 
with courtroom operations. 

[9] Suspicious activities are acts that may affect the security in and 
around the federal courthouses, including photographing a courthouse, 
surveillance in or around a courthouse, graffiti, loitering, disruptive 
behavior, abandoned property, and suspicious deliveries. 

[10] This estimate does not include the site and design work that has 
already occurred on the project. 

[11] This estimate does not include the site and design work that has 
already occurred on the project. 

[12] According to GSA's appropriation acts, funds in the Federal 
Buildings Fund may be transferred between activities to the extent 
necessary to meet program requirements if the proposed transfers are 
approved in advance per the committees on appropriations. 

[13] The appropriation was designated to remain available for the new 
L.A. courthouse project until expended for construction. 

[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 "E-mail 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. ***