United States Government Accountability Office

GAO Testimony

Before the Subcommittee on the 

Legislative Branch, Committee on 

Appropriations, House of Representatives 

CAPITOL VISITOR 

CENTER 

Update on Status of 

Project’s Schedule and Cost 

as of April 15, 2008 

Statement of Terrell G. Dorn, Director, 

Physical Infrastructure Issues 

For Release on Delivery

Expected at 1:30 p.m. EDT

Tuesday, April 15, 2008

 

GAO-08- 677T 
Capitol Visitor Center

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 March 12, 2008,1

 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) and 

AOC’s Chief Fire Marshal. We also reviewed AOC’s construction 

management contractor’s periodic schedule assessments, proposed 

change order log, and weekly reports on construction progress. In 

addition, we reviewed the contract modifications made to date. 

Since the March 12, 2008, CVC hearing, the project’s construction and fire 

alarm acceptance testing have moved forward, and despite continued 

delays in certain CVC and expansion space work, AOC still believes that 

the project will be ready to open in November 2008. According to AOC’s 

construction management contractor, in dollar terms, the overall CVC 

project remains 99 percent complete.

2

 However, risks to the project’s 

schedule remain in several time-critical activities, including the fire alarm 

acceptance testing. Many punch list3

 items also remain to be completed, 

and a steady number of proposed change orders have to be resolved. At 

this time, however, AOC does not expect the punch list items or the 

proposed change orders to affect the project’s completion date. 

Construction Is 

Nearly Complete, but 

Risks Remain 

Since the last hearing, work on portions of the project’s current critical 

path,4

 fire alarm acceptance testing, has continued, and no new significant 

 1

GAO, Capitol Visitor Center: Update on Status of Project’s Schedule and Cost as of 

March 12, 2008, GAO-08-545T (Washington, D.C.: Mar. 12, 2008). 

2

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 Sequence 2 contract, such as the

fire marshal’s fire alarm acceptance testing. 

3

A punch list identifies tasks, usually minor, to be completed at the end of a project. 

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. 

Page 1 GAO-08- 677T 
Capitol Visitor Center

issues have emerged. Issues with the fire alarm wiring and smoke exhaust 

system that we discussed last month are being addressed, and AOC does 

not expect them to delay its receipt of a temporary certificate of 

occupancy for the project, planned for July 31, 2008. AOC officials 

recognize that if equipment for the smoke exhaust system is not delivered

on time, completion of the acceptance testing could be impacted. AOC is

investigating ways to mitigate that risk by expediting the delivery. 

An updated schedule for March 2008 was not available from AOC to 

review for this hearing. Consequently, it is unclear exactly how much time 

has been lost in less time-critical work in areas such as the East Front, the 

Exhibit Gallery, and the House Hearing Room. Delays in addressing items 

on the project’s extensive punch list, which now includes about 8,800 

tasks, pose further risks to the CVC’s schedule and call for continued 

prompt attention by AOC and its contractors. For example, some fire 

alarm acceptance testing in the Library of Congress tunnel has been 

delayed pending completion of certain work in the tunnel. Moreover, as 

discussed last month, damage to pavers on the East Front plaza has not 

been repaired. AOC has determined that substantial rework may be 

required to prevent further damage. AOC is investigating but has not yet 

determined how much the rework will cost and who is responsible for it. 

Each month, the CVC team continues to identify proposed change orders. 

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.

Page 2 GAO-08- 677T 
Capitol Visitor Center

Figure 1: Outstanding and Settled Proposed Change Orders by Month, March 2006 

through March 2008 a 

a The most current proposed change order data were complete through March 27 

rather than through the last day of the month, as for the previous months.

Since the last hearing, AOC has reviewed its estimate of the CVC’s cost at 

completion. While some line item costs have increased or decreased, the

bottom line estimate of about $621 million remains the same as we 

reported in September 2007. We believe this estimate is realistic and 

contains a sufficient allowance for contingencies, provided there are no 

unexpected delays over the next three months, when construction is 

scheduled to be complete. To date, about $569.5 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.5

 In addition, AOC 

AOC’s Cost Estimate 

Remains the Same, 

and Additional Funds 

Will Be Needed 

 5

 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.

Page 3 GAO-08- 677T 
Capitol Visitor Center

has estimated that it will still need an additional $2.6 million in fiscal year 

2008 to fund CVC construction. Furthermore, AOC has requested $31.1 

million in fiscal year 2009 funds for CVC construction. Given its current 

cost-to-complete estimate, AOC may need an additional $2 million in fiscal 

year 2009 to complete the project. 

Madam Chair, this completes my prepared statement. I would be pleased

to answer any questions that you or Members of the Subcommittee may 

have. 

For further information about this testimony, please contact Terrell Dorn 

on (202) 512-6923 or dornt@gao.gov. Other key contributors to this 

testimony include Shirley Abel, Michael Armes, Lindsay Bach, Maria 

Edelstein, Elizabeth Eisenstadt, Jeanette Franzel, Jackie Hamilton, Kara 

Patton, and Joshua Ormond. 

Page 4 GAO-08- 677T 

Contacts and 

Acknowledgments 

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