United States General Accounting Office

GAO Testimony

Before the Subcommittee on Oversight of Government

Management, Restructuring and the District of Columbia

Committee on Governmental Affairs, U.S. Senate

For Release on Delivery

Expected at

1 p.m.

Monday,

March 9, 1998

DISTRICT OF COLUMBIA

PUBLIC SCHOOLS

Availability of Funds and

the Cost of FY 1997 Roof

Projects

Statement of Gloria L. Jarmon

Director

Health, Education, and Human Services Accounting and

Financial Management Issues

Accounting and Information Management Division

GAO/T-AIMD-98-95

Mr. Chairman and Members of the Subcommittee:

We are pleased to be here today to discuss the results of our review of the

District of Columbia Public Schools’ (DCPS) efforts to repair school roofs

during the summer of 1997. You indicated that your Subcommittee had

received widely varying information on the cost of the roof repair work

ranging from $11 to $19 per square foot, and that there were divergent

views on when funds were available to do that work, ranging from as early

as April 1997 to July 1997. Consistent with your request, we focused on

when funds were available to pay for the roof work and the cost, including

the cost per square foot, of the work completed in fiscal year 1997. These

issues are discussed in greater detail in our report, which is being issued

today to the Subcommittee.1

My statement today covers three points:

• when funds were made available to pay for roof repairs;

• the cost of the roof repairs, including the cost per square foot; and

• additional roofs to be repaired in fiscal year 1998 and beyond.

Background Roof repairs were done at 61 D.C. schools during fiscal year 1997. The

General Services Administration (GSA) managed the work at 10 schools

and DCPS at 51 schools. The majority of District public schools were built

over 50 years ago, generally have not been well maintained, and,

consequently, substantial deferred maintenance existed. In addition,

concerns about safety and problems with leaky school roofs have been

widely reported. We and others have documented the less-than-adequate

condition of the District’s public schools in several reports.2

Availability of Funds Sufficient funding was available to begin roof work when schools were

closed for the summer on June 20, 1997. Bond proceeds of $11.5 million

that became available in October 1996 were being used to fund the

GSA-managed work. Additional funds later became available for the

1

District of Columbia Public Schools: Availability of Funds and the Cost of the FY 1997 Roof Projects

(GAO/AIMD-98-82, March 9, 1998).

2

School Facilities: Condition of America’s Schools (GAO/HEHS-95-61, Feb. 1, 1995); School Facilities:

America’s Schools Report Differing Conditions (GAO/HEHS-96-103, June 14, 1996); School Facilities:

Profiles of School Condition by State (GAO/HEHS-96-148, June 24, 1996); District of Columbia Draft

Emergency Supplemental Funding Request for District of Columbia Public Schools

(GAO/HEHS-97-116R, May 5, 1997); and GSA’s study, Determination and Prioritization of the District of

Columbia: Public Schools Projects (February 18, 1997).

Page 1 GAO/T-AIMD-98-95
DCPS-managed work: $18 million in March 1997 and an additional

$20 million in June 1997. Thus, when D.C. schools closed for the summer,

at least $38 million was available for DCPS-managed roof repairs.

Although these funds were available when schools closed, the

DCPS-managed roof work was delayed to the third week of July. DCPS was

not prepared to start making repairs immediately because it had not

completed sufficient initial work, such as determining the scope of work

on individual projects that forms the basis for seeking bids. One reason for

DCPS not being prepared to start work was the almost complete turnover in

technical capital project staff during the school year. Also, work was

delayed because of difficulties in securing bids. DCPS told us that at the

time the long-range plan was submitted in February 1997, it expected to

complete roof work by the end of October 1997 but accelerated it in

response to a court order that roof work not be done while classes were in

session. Consequently, the work was accomplished under a highly

compressed schedule.

Cost of Repairs Our review showed that DCPS spent about $37 million for roof

replacement/repair in fiscal year 1997. This cost included an extensive

amount of work to ensure that facilities were structurally sound and

watertight. A significant, but not determinable, amount of these costs was

attributable to factors other than what would be strictly interpreted as

roof replacement/repair work. Among these were structural integrity, fire

damage, the general deterioration from deferred maintenance, and

warranty stipulations. Extensive work was performed to repair and

replace masonry, cornices, flashing, and coping and to clean drains. As a

result, the costs were higher than what would have been incurred for

roofing work only.

DCPS had initially budgeted $22 million for roof work, which according to

DCPS officials, did not address the complexity of the roof areas and other

issues. Subsequently, based on the detailed evaluations done at the

individual schools as a basis for contracting for work during fiscal year

1997, the aggregate cost estimates—which we understood considered the

relevant factors—was $31.7 million. The contracts for work at 54 of the 61

schools totaled about $32.7 million. Work on the remaining seven schools

was done primarily by DCPS in-house maintenance staff. As of February 4,

1998, DCPS had provided us with change orders totaling about $2 million

for the 54 schools, which brings the total repair costs reported to date to

Page 2 GAO/T-AIMD-98-95
about $34.7 million. In addition, DCPS incurred about $2 million for

consulting, contract administration, and construction management fees.

Considering the costs for all the work involved, the average per square

foot cost was about $20. For GSA-managed contracts, the average cost per

square foot was about $13 whereas, for DCPS-managed contracts, the

average cost per square foot was about $22. DCPS officials attributed the

higher square-foot costs of their contracts to extensive roof-related work

that was required to achieve sound facilities. Also, GSA issued task orders

against its existing contracts and did not have to seek bids when the

market was saturated with roof work, its projects were done over longer

time frames and required less overtime pay, and its contracts covered only

flat roof work whereas DCPS contracts covered multiple roof areas and

materials, which are costlier.

The individual schools worked on by DCPS contractors had square foot

costs ranging from $4.19 for Ketcham Elementary to $77.27 for Cook

Elementary. The square foot cost for GSA-contracted work ranged from

$10.10 for Shadd Elementary to $27.43 for Spingarn Gym. According to

GSA, it encountered unusual conditions at Spingarn Gym because of fire

damage, the installation of a new roof deck and supporting structures, and

a significant amount of asbestos removed.

DCPS officials indicated that the wide range in per square-foot costs among

schools resulted primarily from roof-related work. For example, less than

20 percent of Cook Elementary’s total cost was related to roof

replacement. Most of the cost was related to the repair of an ornamental

cornice just below the roof level. The cornice had deteriorated, and

portions of it were at risk of falling off; therefore, Cook was considered a

major safety concern. In addition, the cornice had to be repaired from a

crane. Further, DCPS officials stated that much work was done to repair the

skylight and to repair coping with new stainless steel covering.

For MacFarland Junior High ($64.45), DCPS officials and engineering

consultants stated that large amounts of masonry repair (repointing and

replacement of broken brick), installation of metal panels on high parapet

walls, and skylight repair were performed. In addition, the flashing was

repaired, the stone coping was replaced, and drains were cleaned.

Insufficient data exist to ascertain with any certainty the added cost

associated with the degree of deferred maintenance encountered in this

extensive project. Years of neglect and inadequate repair and maintenance

Page 3 GAO/T-AIMD-98-95
practices all served to increase costs over what could be expected in well

managed, adequately financed entities. Material suppliers would not

provide or honor extended warranties unless prescribed roof-related and

other preventive maintenance was completed concurrently with the

roofing repairs or replacement. According to GSA, DCPS, and the

architectural and engineering firm overseeing the work, these factors

precluded a more economical solution to the school roofing project.

Future Roof Work For fiscal year 1998, the DCPS Capital Improvement Program budget

indicates that about $35 million will be spent on 40 school-roof projects.

DCPS has about $41.8 million to get an early start on these projects. DCPS

has engaged an engineering consultant to (1) identify the scope of work

and (2) develop cost estimates. DCPS informed us that as of November 3,

1997, they completed roof repair work on five schools for which the scope

of work and cost estimates had been completed in fiscal year 1997. DCPS

officials anticipate that roof repair work at the remaining 35 schools will

begin in the spring and will be completed during the 1998 summer recess.

DCPS told us that as of February 27, 1998, the engineering consultant had

inspected 26 of the remaining 35 school roofs and developed scope of

work and cost estimates. According to DCPS officials, scope of work and

cost estimates for the remaining 9 schools will be prepared some time in

May 1998.

Currently, DCPS has 45 closed schools, which it intends to sell or lease. DCPS

officials stated that they intend to use the proceeds from those schools to

help finance fiscal year 1998 and later school projects. An additional

$63 million for school roof repair or replacement is included in the DCPS

Proposed Capital Improvement Program Plan for Fiscal Years 1999 to

2004.

Mr. Chairman, this concludes my statement. I will be happy to answer any

questions that you or members of the Subcommittee may have.

(916249) Page 4 GAO/T-AIMD-98-95
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