United States General Accounting Office

GAO Report to Congressional Requesters

March 1998 KENNEDY CENTER

Information on Facility

Management

Capability

GAO/GGD-98-56

GAO United States

General Accounting Office

Washington, D.C. 20548

General Government Division

B-278994 

March 25, 1998

The Honorable John H. Chafee

Chairman

The Honorable Max Baucus

Ranking Minority Member

Committee on Environment and Public Works

United States Senate

The Honorable Jay Kim

Chairman

The Honorable James A. Traficant, Jr.

Ranking Minority Member

Subcommittee on Public Buildings and Economic Development

Committee on Transportation and Infrastructure

House of Representatives

This report responds to your request for information on the status of the

John F. Kennedy Center for the Performing Arts’ (Center) efforts to define

and implement (1) facility management positions; (2) a facility

management system; and (3) facility project and financial reports, since

Congress, in 1994, transferred responsibility for the operation and

maintenance of the Center1

 from the National Park Service (NPS) to the

Center’s Board of Trustees (Board). In response, Center managers began

making changes to create a facility management organization to operate

the facility. According to both Center officials and records, the changes

continue, particularly in regard to the management systems and reports.

The John F. Kennedy Center Act Amendments of 19942

 (the Amendments)

provided that the Board was to plan, design, and construct each repair or

improvement project and provide the maintenance, repair, alteration,

janitorial, security, and other services and equipment necessary for the

operation of the facility. The Amendments3

 also provided for the transfer,

to the Board, of NPS employees assigned to duties related to functions

transferred to the Board.

1

The John F. Kennedy Center Act Amendments of 1994, Public Law 103-279, 108 Stat. 1409 (1994).

2

Section 4(a) (F),(G),(H) of the John F. Kennedy Center Act Amendments of 1994, Public Law 103-279,

108 Stat. 1409, 1411-1412 (1994), which amended Section 4 of the John F. Kennedy Center Act, 20

U.S.C. 76j.

3

The John F. Kennedy Center Amendments of 1994, Public Law 103-279, 108 Stat. 1409, 1413-1414

(1994), which amended section 5 of the John F. Kennedy Center Act 20, U.S.C. 76k.

Page 1 GAO/GGD-98-56 Kennedy Center
B-278994 

This report, in so far as it discusses management of the capital repair

program at the Center, updates information contained in our 1993 report

on the Center’s program.4

 While the 1993 report focused on the use of

appropriated funds, we also noted that the Center lacked an in-house

federal contracting officer as well as architects, engineers, or other

occupations that would be associated with capital projects.

Results in Brief The Center managers, including the Board, determined that the Center’s

facility management program would be operated by a few managers

supported by a small in-house staff and contractor technical staff.

Currently, six facility-related managerial positions have been established

and, according to Center officials, they do not anticipate a need for

additional positions in the future.

The six managerial positions include the Vice President for Facilities; the

Directors of Contracting, Facilities, Security, and Auxiliary Services; and

the Project Executive. All but the Vice President for Facilities and the

Director of Auxiliary Services positions were established in 1994 and 1995.

In August and September 1996, the Center created the Director of

Auxiliary Services and Vice President for Facilities positions, respectively.

With the exception of the Vice President for Facilities, the managers in

these positions use contractors to either support operations that they are

responsible for, such as parking, or provide management support. In the

latter instance, the Project Executive—in so far as major construction

projects are underway—uses contracted technical management expertise,

particularly for project planning, design, construction, and construction

management.

Several committees have been established to assist in coordinating facility

operations with performing arts schedules and to provide a forum for

decisionmaking. These committees bring together managers and staff from

throughout the Center. The committees consider a range of facility issues

and problems, varying from those associated with the day-to-day

execution of construction contracts to resolving policy-level issues such as

the approval of the appropriated funds budget.

To provide facility operating information to key managers, the Center has

purchased and is implementing a computer-integrated facility management

(CIFM) system. To date, the Center is progressing with implementation of

four modules, Property Portfolio, Asset Manager, Maintenance Manager,

4

Kennedy Center: Information on the Capital Improvement Program (GAO/GGD-93-46, Feb. 9, 1993).

Page 2 GAO/GGD-98-56 Kennedy Center
B-278994 

and Preventive Maintenance. We did not evaluate the usefulness of the

system or the output that managers obtain because of the recent and

ongoing implementation of the system. In addition to the CIFM system, the

Center staff developed 11 reports for use in managing appropriated funds.

These reports are to provide managers with information for tracking items

such as appropriated funds usage, contractor progress on work, and

contract payment approvals.

Background The Kennedy Center, established in 1964 as both a national cultural arts

center and a memorial to the 35th President, opened in September 1971.

Shortly thereafter, in 1972, the Secretary of the Interior, through NPS,

assumed responsibility for building maintenance, security, interpretative,

janitorial, and all other services necessary for the nonperforming arts

functions of the Center. The Board, however, retained responsibility for all

performing arts activities. The relationship was formalized in a July 1973

agreement between NPS and the Board.

In the early 1990s, the Board petitioned Congress for complete control of

all facility operations at the Center. In part, the Board based its request on

the difficulty encountered in managing the Center under the dual

responsibility established by the July 1973 agreement. In response,

Congress, in the 1994 Amendments, transferred responsibility for the

operation and maintenance of the facility from NPS to the Board and

authorized appropriations to be made to the Board for this purpose. With

the implementation of the Amendments the Board assumed responsibility

for managing the day-to-day operation and maintenance related to the

performing and nonperforming arts functions as well as the long-term care

of the facility.

The development of an overall organizational structure for the Kennedy

Center was one item we discussed in a 1972 report.5

 In discussing the

direction in which the new Center could proceed, we stated that the

Center should establish an organizational structure that clearly defines

and specifically assigns responsibility for performance of functions while

delegating appropriate authority to perform such functions.

Subsequently, in a February 1993 report6

 we noted that the Center did not

have individuals on staff with certain professional and technical skills,

5

Finances and Operations of the John F. Kennedy Center for the Performing Arts, B-154459, Aug. 8,

1972.

6

Kennedy Center: Information on the Capital Improvement Program (GAO/GGD-93-46, Feb. 9, 1993).

Page 3 GAO/GGD-98-56 Kennedy Center
B-278994 

such as a federal contracting officer or architects and engineers that

would be associated with managing capital projects. However, our report

noted that, on the basis of our discussions with Center officials, there

appeared to be no reason that—with sufficient time and funding—the

Center could not acquire the necessary management capability.

In August and September 1995, a Center consultant evaluated the Center’s

operational and maintenance functions to identify strategies for improving

the efficiency and effectiveness of the facility management staff and

operations. The consultant’s September 1995 report7

 noted in part that

there were no clear lines of responsibility within the existing facility

management structure and that job descriptions were not clearly defined.

The consultant recommended that mechanisms be developed to

(1) establish clear lines of responsibility and authority, (2) consolidate all

services related to the maintenance of the facility under one authority, and

(3) develop specific and detailed job descriptions for each position.

Further, the consultant’s report also noted that “An organized system

should be developed for managing information concerning the facility

operations to be used to monitor performance against established

standards.”

Objectives, Scope,

and Methodology

The objectives of our work were to develop information on the status of

the Center’s efforts to (1) define and implement facility management

positions; (2) develop or procure and implement a facility management

system; and (3) develop facility project and financial reports, since the

1994 transfer of facility responsibilities from NPS to the Board. Therefore,

we limited our inquiries to identifying the facility management positions

that were created by the Center since the 1994 transfer. We also identified

the management systems and reports that support the facility management

positions. We did not attempt to assess whether the persons filling facility

management positions had the expertise or experience necessary for those

positions or whether the definitions of the roles or responsibilities of the

positions were complete. Further, we did not assess whether the

management systems and reports had the capability to or were being used

properly to assist facility managers.

We defined the scope of facility management functions in accordance with

guidelines of the International Facility Management Association.8

 The

7

Facility Management Assessment, Phase I; Wiss, Janney, Elstner Associates, Inc., Trammell Crow

Company, and Environmental Systems Design, Inc., Sept. 1995.

8

International Facility Management Association, The IFMA Report #1, 1984.

Page 4 GAO/GGD-98-56 Kennedy Center
B-278994 

guidelines provide that facility management coordinates the physical

workplace with the people and work of the organization. In general, the

scope of responsibilities can begin with the parking lot and extend to the

grounds; building exterior; building systems; building services; and the

layout, furniture, and furnishing of staff work space. The Association notes

that 8 groups of similar activities, comprising 41 responsibilities, are

commonly involved in managing facilities. The eight groups involve real

estate, long-range planning, space management, interior planning, interior

installations, maintenance and operations, architecture and engineering

services, and budgeting.

To obtain information on the development of facility management

positions and their associated roles and responsibilities, we obtained

Center organizational charts, discussed the roles and responsibilities of

each managerial position with the current occupant, and obtained the

position description. Since our objective was to provide information on

the status of the creation of positions, we did not assess the

appropriateness of organizational structures.

To obtain information on the status of changes in the facility management

systems and reports, we interviewed Center officials; reviewed

documentation prepared by the Center or its vendors and obtained

information on implementation schedules. To gain an understanding of the

potential assistance the systems and reports could provide managers, we

interviewed Center officials; reviewed contracting records and vendor

materials; and reviewed documentation provided by finance and project

officials, which demonstrated the types of reports that have been designed

and implemented. Since our objective was to provide information only on

the status of systems and reports, not the accuracy of the output of the

systems, we did not test the accuracy or the completeness of the outputs

we obtained.

We did our work between January and December 1997 in accordance with

generally accepted government auditing standards. On February 17, 1998,

we provided a draft of this report to the Chairman of the Kennedy Center

for review and comment. The Center’s oral comments are discussed near

the end of this report.

Six Facility

Management

Positions

Responsibility for the various facility management functions, transferred

to the Center by the Amendments, is currently delegated to six facility

Page 5 GAO/GGD-98-56 Kennedy Center
B-278994 

management positions. Officials to whom we spoke told us that they do

not anticipate a need for additional facility management positions.

Figure 1: Facility Management Structure

Board of Trustees

Operations Committee

President

Vice Presidents Meeting

Vice President for Facilities

Building Operations

 Coordinating Committee

Project Executive

Construction Coordinating

Committee

Director of Facilities Director of Contracting Director of Security Director of Auxiliary

Services

Source: Kennedy Center Organization Chart, February 1997.

Four Facility Management

Positions Were Defined

Early in the Transition

The Center’s facility management organization includes four managerial

positions that either were transferred from NPS or were created and staffed

shortly after the Amendments. A synopsis of the history of each position

and the positions’ roles and responsibilities is presented below.

Project Executive. On December 25, 1994, the NPS architect responsible for

the capital work at the Center was transferred from NPS to the Center as

the Project Executive responsible for the management of the capital

program in the Center’s Project Management Office. The position

Page 6 GAO/GGD-98-56 Kennedy Center
B-278994 

description for the Project Executive summarized the roles and

responsibilities as including (1) directing capital repair projects;

(2) managing, along with the Controller and Director of Contracting, the

obligation and control of funds appropriated for the capital repair

program; and (3) serving as the principal advisor to senior Center

managers on matters pertaining to the capital repair program and facility

improvement program planning.

Director of Facilities. From September 1995 to December 1996, the Project

Executive, in addition to his role as Project Executive, was also

responsible for the functions of this position. Effective December 3, 1996,

the role was transferred to, and became an additional responsibility of, the

Director of Security. On July 20, 1997, the Director of Security, who had

performed the duties of Director of Facilities in an acting capacity, was

appointed the Director of Facilities while retaining the responsibilities of

Director of Security. Officials to whom we spoke told us that, although

one person has been given responsibility for both positions to reflect the

close relationship between facilities and security needs in regard to

operation of the Center, neither position had been abolished. They said

that the Center could at any time appoint separate individuals to each

position.

The position description for the Director of Facilities summarized the

roles and responsibilities as principal advisor to the Vice President of

Facilities (1) on all matters pertaining to facilities and infrastructure,

(2) on all matters pertaining to maintenance and operations, and (3) for

the development and justification of the Center’s annual utilities budget.

Additionally, the Director is responsible for managing all security, fire, and

life safety matters.

Director of Contracting. On February 27, 1995, the Center posted a

vacancy announcement to fill the position of Contracting Officer. The

position description summarized the roles and responsibilities to include

(1) the head of the contracting activity for the Center; (2) responsibility for

the organization and management of the Office of Procurement;

(3) management and control of the Center’s appropriated fund contracting

procedures; and (4) management of all aspects of the procurement cycle,

including planning, negotiation and administration of construction,

personal services, technical services, maintenance, supply, and related

contracts in accordance with the Federal Acquisition Regulation and

Center guidance. The position was filled on June 11, 1995, by a contracting

officer with prior experience in federal facilities contracting.

Page 7 GAO/GGD-98-56 Kennedy Center
B-278994 

Director of Security. On November 30, 1994, the Center employed its

former Secret Service liaison as the Director of Security. The position

description summarized the roles and responsibilities as including

(1) serving as the principal advisor to Center management on matters

affecting safety and security; (2) implementing and administering

procedures affecting safety and security; (3) assisting the Contracting

Officer in managing the contract guard force; (4) maintaining liaison with

pertinent federal and local law enforcement authorities; and (5) managing

the security budget. On July 20, 1997, the Director of Security was also

designated as the Director of Facilities, thus combining the roles and

responsibilities of both positions. However, Center officials told us that

because neither position had been abolished, but simply had been staffed

by the same individual, the Center could at any time appoint separate

individuals to each position.

Two Additional Facility

Management Positions

Were More Recently

Defined

Director of Auxiliary Services. On August 7, 1996, the position of Director

of Auxiliary Services was established and filled. According to Center

officials, this was an area of facility management that had not previously

received sufficient attention. The document appointing the director

outlined the position’s responsibilities as including consolidating

responsibility for and overseeing the Center’s concessionaire operations,

such as the parking contractor, shuttle bus service arrangements, and taxi

dispatching services. Subsequently, the job description covering this

position was expanded to include liaison with the contracted restaurant

service.

Vice President for Facilities. On September 27, 1996, the President of the

Center announced the creation of a senior management structure that

included a Vice President for Facilities. The announcement creating the

Vice President for Facilities highlighted the importance of the new

position to the Center’s strategic plans during the next few years.

According to the announcement, among the responsibilities assigned to

the new position were those of overseeing all appropriated funds

operations and working with other departments to implement a host of

new facility related initiatives, including the expansion of the parking

garage and the large-screen format theater.

Further, the announcement established a formal management reporting

structure in which the incumbents in the key facility management

positions report to the Vice President for Facilities.

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B-278994 

Contract Personnel

Support Managers in

Facility Management

Positions

The Center managers, including the Board, determined that the Center’s

facility management program would be operated by a few managers

supported by a small in-house staff and contractor technical staff. As a

result, the Center relies on contractor employees for technical facility

management expertise. To develop information on the Center’s use of

contractor employees, we focused our inquiries on the contractor

technical support that the Project Executive employs in managing the

capital improvement program. Briefly, the management support supplied

by contract employees includes the following:

Management of construction work. In 1995, the Center entered into a

Memorandum of Agreement with the U.S. Army Corps of Engineers -

Baltimore District, for technical assistance, including architect-engineer

contract management, project design reviews, awarding and managing

construction contract(s), contract reviews for legal sufficiency, and other

related services.

Project design services. The Center currently retains the services of

architect-engineer firms through a source selection panel process to

prequalify firms. Prequalified firms are awarded a 5-year contract with a

small monetary guarantee and placed on the contractor prequalified list.

From this list, prequalified firms may be selected for engagements for new

design work or to do design reviews of work done by others. Both types of

work can be awarded to a firm under a task order issued under the 5-year

contract.

Other design work. The Center plans to continue employing the services of

NPS under an existing Interagency Agreement, dated September 23, 1994.

The scope of this work may include landscape design and site planning or

work requiring previous experience at the Center.

Administrative support. The Center has entered into a Memorandum of

Understanding and Agreement with the General Services Administration

under which the Center receives accounting services including, in part,

accounting and financial reporting.

Page 9 GAO/GGD-98-56 Kennedy Center
B-278994 

Management and Staff

Committees Provide a

Forum for Facilities

Management

Decisionmaking

In addition to the six facilities management positions, several committees

that relate to facility management assist managers in establishing facility

policy, coordinating facility work with other Center activities, and

managing the day-to-day contractual aspects of facilities projects. Meeting

on a regular basis, the committee’s membership ranges from Board

members and senior management at the Operations Committee level to

contract managers and technical support contractors at the Construction

Coordinating Committee level. The committees include the following:

Operations Committee. The Operations Committee, a committee of the

Board, involves Board members and senior staff in quarterly briefings and

presentations on policy issues or operating problems. In this regard, we

were advised that the committee provides policy guidance, resolves the

most serious issues requiring Board input, and functions as the Board’s

eyes and ears in Center operations.

Architectural Review Committee. This committee, also a committee of the

Board, was previously referred to as the Fine Arts Review Committee. The

committee reviews and provides guidance to staff on detailed aspects of

project design and construction work, thus, according to officials, acting

as the Board’s project oversight mechanism between Operations

Committee meetings. The Committee recently focused on the Concert Hall

renovation project, and officials told us that they expect the Committee to

provide similar guidance on future projects.

Vice Presidents’ Committee. The members of this committee are the

Center’s president and six vice presidents. The meetings of these senior

managers serve as the mechanism for elevating problems and policy

questions concerning facility work to the attention of the president.

Building Operations Coordinating Committee. This committee, headed by

the Vice President for Facilities, focuses on facility projects’ progress,

schedules, problems, or open issues requiring the vice president’s input or

decision. The committee, which generally meets biweekly, except weekly

in response to issues such as budget preparation, includes facility

managers and others, such as the Director of Production, whose

responsibilities may affect or be affected by facility projects work.

Construction Coordination Committee. This committee, under the Project

Executive, includes Center project staff and, as needed, consultants and

technical support staff in weekly meetings focused on resolving detailed

Page 10 GAO/GGD-98-56 Kennedy Center
B-278994 

issues involving progress and problems with contracts, scheduling, or

future work.

CIFM System and

New Management

Reports Designed to

Assist Managers

The Center has purchased and is currently implementing a CIFM system.

Further, the Center developed in-house, and has implemented, a number

of project status and financial tracking reports.

CIFM System Is Designed

to Track Numerous Facility

Operations to Assist in

Decisionmaking

On August 9, 1996, after announcing its intent in the Commerce Business

Daily, the Center purchased a system to assist in managing the facility. The

vendor’s literature for the CIFM system procured described a system

directed toward control and management of an organization’s resources,

including real estate, equipment, personnel, space, leases, maintenance,

cabling, and project budgeting. The system has nine modules, each

focused on one aspect of facility management, and affords managers the

opportunity to produce various analyses of operations.

Page 11 GAO/GGD-98-56 Kennedy Center
B-278994 

Table 1: CIFM System Components

Module title Module description

Asset Management Provides a fully automated inventory catalog system to control all

assets by tracking price, location, warranty, service data, and

maintenance history.

Cable Management Assists in managing the many communication and network

cables, terminals, devices, and sockets in buildings.

Lease Management Assists in managing all aspects of the administration and

planning of property and building leases.

Maintenance Manager Addresses three areas of maintenance: (1) demand maintenance

or help-desk functions, (2) planned preventive maintenance, and

(3) maintenance projects. It is linked to the Asset Management

and Materials Handling modules. After a work order is generated

and the task completed, used parts are deducted from inventory

and appropriate assets are updated to reflect improvements or

repairs.

Materials Handling Permits users to identify, track, and report on materials or assets

from furniture, to stocked materials and supplies, to office

equipment.

Project Budgeting Assists in managing different types of projects from major

construction to remodeling by developing building blocks of

information, which include information on materials required,

estimated labor time, and costs associated with each task.

Property Portfolio The core database through which data entered from other

modules is maintained.

WinStack Permits the creation of floor and organization layouts within a

building to facilitate space planning and management.

Space Analysis An automated workstation planning module that aids designers

and managers in developing new and tracking old workspace

programs.

Source: Vendor product literature.

Center officials provided us with the schedule for implementing the

software modules listed in table 1. The officials advised us that they have

focused implementation efforts on the Property Portfolio, Asset Manager,

Maintenance Manager, and Preventive Maintenance modules. The

information provided to us indicated that the first three modules are

operational, with the Preventive Maintenance module anticipated to be

operational by the end of the first quarter of 1998. Regarding the remaining

modules, officials advised us that they have no current time frame for

implementing them since they first focused on those modules that most

affected the day-to-day operation and maintenance of the facility.

In a related facility management matter, officials advised us that they have

evaluated scheduling software for use in preparing a comprehensive

Page 12 GAO/GGD-98-56 Kennedy Center
B-278994 

facility utilization schedule/calendar. The schedule/calendar would include

utilization of various segments of the facility, by a number of Center

departments, and would reflect requirements of special events, theater

events, rehearsal usage, meeting room reservations, public space usage,

and temporary storage. The officials expect to have the software in use

during the second quarter of 1998.

Management Reports Developed In-house Designed To Track Use Of

Appropriated Funds. The Center’s Project Management Office (PMO),

Contracting Office, and Finance Office share responsibility for managing

the funds appropriated for capital improvements. The PMO officials to

whom we spoke provided us a list of the 11 management reports that have

been developed and implemented to facilitate the tracking of federal

funds. The following are examples of the reports and their purpose.

Monthly Requisition Summary Report. This report is to capture all types of

PMO contracting and purchasing information, including the purchase order

number, requisition and obligation amounts, vendor, type of

goods/services, and budget/function code. Since all types of contracting

and purchasing actions are to be captured, the report includes

administrative costs, construction contracts, design and consulting

contracts, as well as the costs for contract staff, such as the Corps of

Engineers.

Architect/Engineer Contract Summary Report. This report is to present the

entire history of a particular contractual relationship with the Center. The

information contained in the report includes the contract start and end

dates, the contract purpose, the original contract amount, any adjustments

to the original amount, and the current adjusted amount of the contract.

Payment Recommendation and Approval Report. This report is to present

information required for processing and approving a contract payment

request. The report also is to provide a contract’s historical payment

record as well as the percentage of the contract work completed as of the

last payment.

Agency Comments We provided copies of a draft of this report to the Chairman, John F.

Kennedy Center, for comment. On March 10, 1998, the Center’s Vice

President for Facilities provided us with oral comments on the draft

report. The Vice President advised us that the Center generally agreed with

the information in the report. The Vice President also provided comments

Page 13 GAO/GGD-98-56 Kennedy Center
B-278994 

to clarify some of the information presented in the report, which we have

incorporated where appropriate.

We are sending copies of this report to the Chairmen and Ranking

Minority Members of the Senate Subcommittee on Transportation and

Infrastructure, and the House Committee on Transportation and

Infrastructure, and the Chairman of the John F. Kennedy Center for the

Performing Arts. Copies will be made available to others upon request.

Major contributors to this report are listed in the appendix. If you have any

questions about the report, please call me on (202) 512-8387.

Bernard L. Ungar

Director, Government Business

 Operations Issues

Page 14 GAO/GGD-98-56 Kennedy Center
Page 15 GAO/GGD-98-56 Kennedy Center
Appendix I 

Major Contributors to This Report

General Government

Division, Washington,

D.C.

Ronald King, Assistant Director, Governmentwide Facility Management

 Issues

Thomas Johnson, Evaluator-in-Charge

Hazel Bailey, Communications Analyst

John Parulis, Senior Evaluator

(240259) Page 16 GAO/GGD-98-56 Kennedy Center
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