This is the accessible text file for GAO report number GAO-08-475T entitled 'Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of February 7, 2008' which was released on February 8, 2008. 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 Webmaster@gao.gov. 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. United States Government Accountability Office: GAO: Testimony: Before the Subcommittee on the Legislative Branch, Committee on Appropriations, House of Representatives: For Release on Delivery: Expected at 10:00 a.m. EST: Thursday, February 7, 2008: Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of February 7, 2008: Statement of Terrell G. Dorn: Director, Physical Infrastructure Issues: GAO-08-475T: 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 November 14, 2007,[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, potential change order log, and weekly reports on construction progress. In addition, we reviewed the contract modifications made to date. Summary: Since the November 14, 2007, CVC hearing, the project's construction has progressed, and AOC is still anticipating an early November 2008 opening date. But risks to the project's schedule remain in several time-critical activities, especially fire alarm acceptance testing, which, under the current schedule, must be completed on time for the CVC to open on time. Delays in work on the East Front, the Exhibit Gallery, and the House Hearing Room also pose risks to the project's schedule, as do the many items on the project's punch list 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.[Footnote 2] AOC has estimated that it will need an additional $5.9 million in fiscal year 2008 to fund construction, and it has requested $31.1 million in fiscal year 2009 funds for CVC construction. Based on its current cost-to-complete estimate, AOC believes it may need an additional $2 million to complete the project in fiscal year 2009. Construction Is Nearly Complete, but Risks Remain: According to AOC's construction management contractor, in dollar terms, the overall CVC project is 99 percent complete,[Footnote 3] as compared with 98 percent reported at the November 2007 CVC hearing. Yet even at this late stage in the construction process, delays in a number of time-critical activities related to the fire alarm system pose risks to the project's schedule. Work on the project's current critical path,[Footnote 4] fire alarm acceptance testing, is underway and is within a week of being on schedule. Since the last CVC hearing, delays have occurred in this activity because of required changes in the fire alarm system's planned sequence of operations. However, prompt attention by the CVC team reduced the time lost to 3 days and AOC still expects the CVC to be ready to open on November 3, 2008. Moreover, the opening could be sooner if AOC reduced the amount of fire alarm acceptance testing required, as AOC's consultants have suggested. Nonetheless, AOC's fire marshal has determined that the fire alarm acceptance testing will proceed as planned. 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 4 weeks after AOC determined that additional sprinkler heads would be needed and other design changes were required. Work in the Exhibit Gallery was delayed by 3 weeks when AOC did not receive replacement pieces for the glass floor as scheduled. Delays in addressing items on the project's extensive punch list pose a further risk to the CVC's schedule and call for continued prompt attention by AOC and its contractors. For example, work in the Exhibit Gallery may fall behind schedule while AOC and its design team address deficiencies in the Wall of Aspirations, which failed a test of its fire protection system. In addition, damage to pavers on the East Front plaza has not been repaired, and extensive work may be required to prevent further damage. Efforts to relocate PEPCO electrical vaults, which are too high for the current landscaping plan, are still unresolved and may delay completion of the work in that area by 5 months. Proposed change orders continue to pose risks to the project's schedule and 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 December 2007: [See PDF for image] This figure is a multiple line graph illustrating the Outstanding and Settled Proposed Change Orders by Month, March 2006 through December 2007. The vertical axis of the graph represents number from 0 to 500. The horizontal axis of the graph represents monthly dates from March 31, 2006 to December 31, 2007. Lines depict the following change orders: Outstanding PCOs: between approximately 380 on March 31, 2006 and approximately 450 on December 31, 2007; PCOs settled this month: approximately 40-60 per month. Source: AOC's construction management contractor. [End of figure] AOC's Cost Estimate Remains the Same, and Additional Funds Will Be Needed: In September 2007, AOC increased its estimate of the cost to complete the CVC project's construction to about $621million, which remains unchanged. The $621 million estimate includes, among other things, contingency amounts for delays, change orders, and remaining uncertainties related to the project's fire alarm testing. 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. AOC has estimated that it will need an additional $5.9 million in fiscal year 2008 to fund construction, and it has requested $31.1 million in fiscal year 2009 CVC appropriations for construction. Based on its current cost-to-complete estimate, AOC believes it may need an additional $2 million to complete the project in fiscal year 2009. Madam Chair, this completes my prepared statement. I would be pleased to answer any questions that you or Members of the Subcommittee may have. Contacts and Acknowledgments: For further information about this testimony, please contact Terrell Dorn at (202) 512-6923. Other key contributors to this testimony include Shirley Abel, Lindsay Bach, Maria Edelstein, Elizabeth Eisenstadt, Jeanette Franzel, Jackie Hamilton, Bradley James, David Merrill, and Joshua Ormond. [End of section] Footnotes: [1] GAO, Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of October 31, 2007, GAO-08-227T (Washington, D.C.: Nov. 14, 2007). [2] For fiscal year 2008, AOC received $28,753,000 (before rescission) in appropriations for the CVC project. Pub. L. No. 110-161. Of that amount, AOC is allowed, but not required, to use up to $8.5 million for operations. AOC is currently planning to use the $8.5 million for operations. [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: fraudnet@gao.gov: Automated answering system: (800) 424-5454 or (202) 512-7470: Congressional Relations: Ralph Dawn, Managing Director, dawnr@gao.gov: (202) 512-4400: U.S. Government Accountability Office: 441 G Street NW, Room 7125: Washington, D.C. 20548: Public Affairs: Chuck Young, Managing Director, youngc1@gao.gov: (202) 512-4800: U.S. Government Accountability Office: 441 G Street NW, Room 7149: Washington, D.C. 20548: