**GAO-07-1149T**                      Published: Jul 31, 2007. Publicly Released: Jul 31, 2007.                  

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## Highlights

Since the June 27, 2007, Capitol Visitor Center (CVC) hearing, the project's construction has progressed, and according to the latest schedule, Architect of the Capitol (AOC) is still projecting a June 27, 2008, completion date and a September 22, 2008 opening date. Work has advanced on the project's heating, ventilation, and air-conditioning (HVAC) system, interior wall stone and ceiling installation, and other interior and exterior construction work. However, some delays have occurred in activities on the project's critical path (i.e., the work on the fire alarm system) and on most of its near-critical paths, and further delays are possible. AOC was able to mitigate the delay in the project's critical path by reducing the time available for future fire alarm testing. This action may not produce the desired results, though, given the complexity of the requirements for fire alarm testing. Delays in near-critical activities such as the ceiling close-ins and the House and Senate expansion spaces have reduced the time reserved for contingencies along those near-critical paths, but have not yet affected the critical path. Furthermore, a number of risks to the project's schedule remain. These include potential problems in completing the installation, integration, operation, and testing of the fire alarm, security, and HVAC systems. Recently, for example, AOC's Chief Fire Marshal completed his initial plan for final acceptance testing of the fire alarm systems and found additional complexity in testing requirements that has the potential to delay the project for a number of months. In addition, the Fire Marshal has added testing requirements for all of the CVC's smoke detectors, which could further delay the project's completion. Given these and other risks to the project's schedule, we believe that a September 2008 opening date is unlikely. In our view, AOC will be able to meet or come close to meeting the opening date only if the CVC team promptly makes significant improvements in its execution of the project and the project's schedule. At the November 15, 2006, CVC hearing, we reported that the total cost of the entire CVC project at completion is likely to be about $592 million without an allowance for risks and uncertainties, and over $600 million with such an allowance. Because the project's expected completion date remains uncertain, we have not updated these estimates. At the committee's last CVC hearing, we suggested that AOC update its cost estimate. Given the recent schedule developments, we continue to believe that AOC should update its estimate of the cost to complete the CVC project. To date, about $556.2 million has been approved for CVC construction, including about $25.2 million in fiscal year 2007 appropriations. For fiscal year 2007, AOC has also received an additional appropriation of $18.6 million for the CVC project, which AOC has not yet received approval to obligate. AOC has indicated that of this amount, approximately $6 million will be used for construction and $12.6 million will be used for operations. AOC has also requested $20 million in fiscal year 2008 CVC construction appropriations to cover remaining costs, and we estimate that AOC may need further appropriations in future fiscal years for construction claims.

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## Topics

Government Operations

Construction contractsContract administrationCost analysisCost overrunsFacility constructionFederal facilitiesFederal fundsFuture budget projectionsPublic visitor-centersRisk assessmentSchedule slippagesStrategic planningCost estimates