Capitol Visitor Center: Update on Status of Project's Schedule and Cost As of November 15, 2006
Published: 2006-11-15T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: We are pleased to assist the Senate Committee on Appropriations, Subcommittee on the Legislative Branch in monitoring progress on the Capitol Visitor Center (CVC) project. Our remarks will focus on (1) the Architect of the Capitol's (AOC) construction progress and problems since the Subcommittee's September 21, 2006, hearing and their impact on the project's schedule; and (2) the project's expected cost at completion and funding situation. As part of this discussion, we will address a number of key challenges and risks that continue to face the project as well as actions AOC has recently taken, and plans or needs to take, to meet its currently scheduled completion date.
section_title: What GAO Found
paragraphs: Since the Subcommittee's September 21 CVC hearing, the CVC team has continued to move the project's construction forward, but the project's scheduled completion date has slipped by 6 weeks, to October 26, 2007,3 and further delays are possible. The 6-week delay was attributable to problems with the project's most critical activity--the fire protection system. Under the current schedule, the construction of the House and Senate expansions spaces will be completed before the CVC's construction, but both the CVC and the expansion spaces will be available for occupancy at the same time because final acceptance testing of both is slated to be done concurrently. During the past month, the CVC team has made progress on the project's heating, ventilation, and air-conditioning (HVAC) system, interior floor stone and ceiling installation, and other interior and exterior construction work. In addition, AOC sent Congress an action plan for improving its execution of the project and the project's schedule, as the Subcommittee requested and we had recommended, and this plan is responsive to our recommendations. AOC is also considering other action not discussed in this plan. Despite this progress, problems have occurred in many important activities besides the CVC's fire protection system, according to AOC's construction management contractor. Although these delays did not add time to the project's schedule this month, additional delays could do so in the future. Recently identified issues associated with the CVC's HVAC system, fire protection system, and security system--including issues associated with their coordination and testing--also pose risks to the project's scheduled completion date. In addition, concerns have arisen about AOC's ability to achieve a high-quality, complete, and usable facility within the current estimated time frame and cost now that the contractual date for completing sequence 2 construction work--September 15, 2006--has passed. In particular, there is a risk that, without negative consequences, the resolve of some major stakeholders to complete the project in a timely and efficient manner could be adversely affected. Finally, all the indicators of progress that we have been tracking for the Subcommittee, together with other risks and uncertainties, suggest that the project is likely to finish later than October 2007. It is too early to tell whether the actions identified in AOC's November 2006 action plan will be effective in curtailing additional schedule slippages. Furthermore, the concerns identified since the Subcommittee's last CVC hearing, particularly those related to the CVC's HVAC system, if not quickly addressed, could adversely affect the project's schedule. Thus, until it is clear that AOC's actions are effective in curtailing additional schedule slippages, we believe that the facility is more likely to be completed in early 2008 than in the fall of 2007.

section_title: Letter
paragraphs: We are pleased to be here today to assist the Subcommittee in monitoring  progress on the Capitol Visitor Center (CVC) project. Our remarks will  focus on (1) the Architect of the Capitol’s (AOC) construction progress  and problems since the Subcommittee’s September 21, 2006, hearing and  their impact on the project’s schedule; and (2) the project’s expected cost  at completion and funding situation. As part of this discussion, we will  address a number of key challenges and risks that continue to face the  project as well as actions AOC has recently taken, and plans or needs to  take, to meet its currently scheduled completion date.
Our remarks today 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 daily  reports on the progress of interior wall and floor stonework. We retained a  mechanical engineering consulting firm (Kincaid/Bryant) to help us assess  the CVC team’s progress in completing the project’s heating, ventilation,  and air-conditioning (HVAC) system. In addition, we reviewed the contract  modifications made to date and the estimates of cost increases provided  by AOC and its construction management contractor, including their  estimates of the costs related to delays, and their preliminary cost  estimates for recent changes to the CVC’s fire protection and security  systems.
At the Subcommittee’s September 21 CVC hearing, we reported that our  assessment of the project’s schedule and expected cost at completion was  somewhat constrained because the CVC team was still analyzing the  impact on the project’s schedule and cost of the recently identified  changes required for certain components of the fire protection and  security systems. We also noted that the team expected to have firmer  schedule and cost information around mid-October. However, the CVC  team did not receive firmer information on the impact of the recent fire  alarm system changes on the schedule until late last week, noted some  remaining uncertainty about how long the pretesting of the fire alarm  system would take, and recently learned of significant changes that would  be needed in the security system and in the sequence for bringing the  CVC’s air handling units online. In addition, the impact of these changes  on the project’s cost is not yet fully known. Therefore, we could not  thoroughly assess the project’s schedule or estimated cost at completion  and are basing our views on the information available as of November 9,  2006, recognizing that our views could change as more information on the  impact of these changes becomes available.
Since the Subcommittee’s September 21 CVC hearing, the CVC team has  continued to move the project’s construction forward, but the project’s  scheduled completion date has slipped by 6 weeks, to October 26, 2007,  and further delays are possible. The 6-week delay was attributable to  problems with the project’s most critical activity—the fire protection  system. Under the current schedule, the construction of the House and  Senate expansions spaces will be completed before the CVC’s  construction, but both the CVC and the expansion spaces will be available  for occupancy at the same time because final acceptance testing of both is  slated to be done concurrently.
During the past month, the CVC team has made progress on the project’s  HVAC system, interior floor stone and ceiling installation, and other  interior and exterior construction work. In addition, AOC sent Congress  an action plan for improving its execution of the project and the project’s  schedule, as the Subcommittee requested and we had recommended, and  this plan is responsive to our recommendations. AOC is also considering  other action not discussed in this plan.
Despite this progress, problems have occurred in many important  activities besides the CVC’s fire protection system, according to AOC’s  construction management contractor. Although these delays did not add  time to the project’s schedule this month, additional delays could do so in  the future. For example, the completion date for wall stone installation in  the East Front basement slipped by 38 workdays since the Subcommittee’s  last CVC hearing, and an additional 17-workday slippage could delay the  CVC project’s scheduled completion date. Similarly, work on the HVAC  system slipped 19 workdays, and an additional slippage of 46 workdays  could delay the project’s scheduled completion date. Recently identified  issues associated with the CVC’s HVAC system, fire protection system, and  security system—including issues associated with their coordination and  testing—also pose risks to the project’s scheduled completion date. In  addition, concerns have arisen about AOC’s ability to achieve a high- quality, complete, and usable facility within the current estimated time  frame and cost now that the contractual date for completing sequence 2  construction work—September 15, 2006—has passed. In particular, there  is a risk that, without negative consequences, the resolve of some major  stakeholders to complete the project in a timely and efficient manner  could be adversely affected. Finally, all the indicators of progress that we  have been tracking for the Subcommittee, together with other risks and  uncertainties, suggest that the project is likely to finish later than October  2007.
As we said at the Subcommittee’s September 21 CVC hearing, AOC will be  able to meet or come close to meeting its scheduled project completion  date only if the CVC team promptly makes significant improvements in its  execution of the project and the project’s schedule. It is too early to tell  whether the actions identified in AOC’s November 2006 action plan will be  effective in curtailing additional schedule slippages. Furthermore, the  concerns identified since the Subcommittee’s last CVC hearing,  particularly those related to the CVC’s HVAC system, if not quickly  addressed, could adversely affect the project’s schedule. Thus, until it is  clear that AOC’s actions are effective in curtailing additional schedule  slippages, we believe that the facility is more likely to be completed in  early 2008 than in the fall of 2007. To improve AOC’s ability to meet its  schedule and to reduce the risks to the project’s schedule and cost facing  AOC now that the contract completion date is past, we are recommending  that AOC (1) promptly work with the CVC team to address the concerns  associated with the CVC’s HVAC system and (2) carefully consider the  existing contractual remedies available to achieve completion of all  necessary work within the current estimated time frame and cost without  otherwise compromising any of the government’s contractual rights or  remedies.
Since the Subcommittee’s September 21 CVC hearing, we have increased  our estimate of the total cost to complete the entire CVC project by about  $8 million to account for the delays and changes identified during this  period, but our estimate is rough because we have not had the  information or the time needed to fully assess the impact of these delays  and changes on the projects’ cost. With this $8 million increase, we now  estimate 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,  recognizing, however, that the extent of AOC’s responsibility for the delay- related costs is uncertain. To date, about $531 million has been provided  for CVC construction. For fiscal year 2007, AOC has requested $26 million  in CVC construction appropriations, plus $950,000 in AOC general  administration appropriations for contractual support to complete  acceptance testing of the CVC’s fire protection system on schedule. During  fiscal year 2007, AOC is also likely to need, but has not yet requested,  additional funds to pay for changes. At the Subcommittee’s last CVC  hearing, we roughly estimated that AOC would need an additional $5  million to $10 million in fiscal year 2007 over and above what it had  already requested for changes unless it decided to use funds slated for  other purposes, after obtaining the necessary congressional approvals.  AOC agrees with this rough estimate at this time and notes that it will  likely need additional money in fiscal year 2008 to replenish these funds  and to cover other costs if they materialize.
subsections: section_title: Construction Progress Has Not Been Sufficient to Offset Impact of Changes and Delays on the Project’s Schedule and Completion
paragraphs: Work on the CVC project has progressed in many areas, but the project  completion date has slipped to October 26, 2007, about 6 weeks beyond  the September 17, 2007, completion date discussed at the Subcommittee’s  last CVC hearing. This 6-week slippage is due to continuing problems  associated with the CVC’s fire protection system, but many other  important activities, including those associated with the HVAC system,  East Front, and security system, have been delayed as well. Last week, at  the request of the Subcommittee and as we had recommended, AOC  completed and sent to Congress an action plan for improving management  execution of the project and its schedule. The action plan was responsive  to our recommendation. However, it is too early to tell whether  implementing the plan will curtail the types of schedule slippages that  have occurred since the Subcommittee’s last CVC hearing and throughout  the project. Moreover, although the CVC team and AOC’s Fire Marshal  Division have agreed on a number of important elements of the CVC’s fire  protection system, they have not yet agreed on all important elements.  Additionally, as noted, concerns have emerged regarding the CVC’s HVAC  system, as well as the impact of the passage of the sequence 2 September  15, 2006, contract completion date. Accordingly, priority should be given  to accomplishing all of the identified critical tasks so that pretesting of the  facility’s fire protection system can begin in the spring of 2007.  Additionally, to ensure that AOC gets a high-quality, fully functional  facility, it is essential that AOC effectively implement the actions it has  identified and give careful consideration to existing contractual remedies  available to it to achieve completion of all necessary work within the  current estimated time frame at a reasonable cost without otherwise  compromising any of the government’s contractual rights or remedies.
subsections: section_title: Progress: CVC Team Has Advanced Interior CVC and Other Construction Work and Has Begun to Implement an Action Plan for Strengthening Its Project Management
paragraphs: According to information provided by AOC and its construction  management contractor and our observations, work on the project has  advanced, in terms of both the dollar value of the work in place and  individual project elements. In dollar terms, AOC’s construction  management contractor reported that, as of October 31, the overall CVC  project was about 88 percent complete and the sequence 2 work was  about 84 percent complete—up from about 86 percent and 77 percent,  respectively, as of the Subcommittee’s last CVC hearing. Progress on  individual project elements includes the following:  Interior CVC work has moved forward, according to AOC’s construction  management and sequence 2 contractors. For example, the CVC team and  AOC’s Fire Marshal Division have reached or nearly reached agreement on  the design for several critical elements of the facility’s fire protection  system. Agreement on these elements is necessary for the system’s  installation to proceed. In addition, the mechanical subcontractor has  completed certain preparations for operating the CVC’s air handling units,  all but two of which passed a required test for leaks as of Monday, and the  CVC team expects conditioned air to begin flowing to certain parts of the  facility later this month. The sequence 2 contractor has also installed  about 65 percent of the CVC’s floor stone, up from about 43 percent at the  time of the Subcommittee’s last CVC hearing, and ceiling installation is  complete or essentially complete in the great hall, south side corridor  (lower level), both orientation theaters, and the food service area. (AOC  notes that blistered ceiling tile in the orientation theaters will have to be  repaired or replaced.)
Surface work continued, including paving and brick gutter work on the  Senate plaza. Work on the House connector tunnel and on linking the  Library of Congress tunnel with the Jefferson Building has also continued.
East Front work continued, including completion of stone installation on  the redesigned archway above the main central staircase from the CVC to  the East Front and installation of ductwork and metal stud framework to  support wall stone at the rotunda and gallery levels.
In the House and Senate expansion spaces, ceiling close-in inspections,  ceiling panel installation, and stone work have continued, and installation  of the circular staircase that will connect all three levels of the Senate  expansion space has begun.
On November 7, 2006, AOC sent Congress an action plan setting forth a  number of steps it has taken, plans to take, or is considering to ensure that  the CVC is ready for occupancy in the fall of 2007. AOC developed this  plan at the Subcommittee’s request in response to recommendations we  made to AOC at the Subcommittee’s September 21 CVC hearing. These  recommendations were aimed at enhancing AOC’s execution of the  schedule and project and at facilitating the Subcommittee’s efforts to (1)  hold AOC accountable for managing the project and (2) work with AOC to  ensure that the schedule implications of proposed scope or design  changes are quickly determined and considered by all appropriate  stakeholders before final decisions on the proposed changes are made.  AOC’s actions included    meeting weekly with the CVC team to deal exclusively with schedule    having its construction management contractor identify areas needed to  meet the project’s schedule that the contractor believes are understaffed  or face obstacles to progress;  identifying sequence 2 and construction management personnel who are  responsible for meeting key schedule dates and resolving identified  problems;   basing the sequence 2 contractor’s future award fee on meeting schedule  reassessing the scope, depth, and time frames associated with the  pretesting and final testing of the facility’s fire and life-safety protection  systems; increasing communication among the CVC team, AOC’s Fire Marshal  Division, and the U.S. Capitol Police; and    discussing proposed significant scope or design changes with Capitol  Preservation Commission representatives before such proposed changes  are adopted and getting the congressional leadership’s approval for  discretionary changes requested by the Senate or House.
The actions AOC has identified are generally responsive to our  recommendations and, if implemented effectively and quickly, should help  AOC improve its project and schedule management as well as help ensure  that the schedule and cost implications of proposed discretionary design  or scope changes are appropriately considered before final decisions on  them are made. However, we have concerns about the usefulness of one  step AOC is considering—the possible establishment of a CVC peer review  panel to assess the approaches planned for the fire protection system’s  pretesting and final testing. We have expressed our concerns to AOC, and  it has agreed to consider them.
Besides the actions it identified in its November 2006 action plan, AOC has  been considering how to deal with the impact of passing the sequence 2  contract completion date, September 15, 2006. This is a complex issue, in  part because its resolution potentially involves preliminary determinations  about the causes of, and responsibility for, project delays during sequence  2 up to September 15. AOC has also been considering other factors, such  as the need to instill a sense of urgency and responsibility to meet the  contractor’s currently established fall 2007 completion time frame; the  possibility of setting a specific date as the new contract completion date  and the implications associated with alternative dates; the constructive  manner in which the sequence 2 contractor has worked with AOC and the  rest of the CVC team to accomplish work and resolve problems; and the  need to ensure that the work necessary to get the facility completed is  done expeditiously at a reasonable cost. We have discussed these issues  with AOC and pointed out that it needs to decide how it intends to  proceed as quickly as possible and also consider the risks that various  options pose. In view of additional schedule slippages that have occurred  and issues that have arisen since the Subcommittee’s last CVC hearing, we  are making additional recommendations to AOC, which we will discuss  later in this testimony.
In addition to the actions identified by AOC, the sequence 2 contractor has  reported adding five superintendents to its CVC staff in the last several  months to help achieve the schedule. Given the number and magnitude of  the changes that have occurred to the sequence 2 contract since it was  initially awarded and the extent to which problems have constrained  progress, we believe that this additional supervision should put the team  in a better position to meet schedule dates and address problems quickly.
section_title: Problems: Required Changes to Fire Protection System and Continued Slippages in Other Important Activities Have Extended the Project’s Schedule and Completion Date
paragraphs: The additional time needed to make design changes to the CVC’s fire  protection system has extended the project’s completion date by about 6  weeks since the Subcommittee’s September 21 CVC hearing—from  September 17, 2007, according to the schedule in effect at that time, to  October 26, 2007, according to the October 2006 schedule issued last  week. In addition, AOC’s construction management contractor reported  slippages in construction work for all of the 20 near-critical activity paths  it identified in its schedule report for October 2006. For many of these  activity paths, the schedule slipped at least 4 weeks. For example, the  contractor reported a 65-workday delay for two East Front elevators due  to late completion of necessary preceding work, a 66-workday delay for  fabrication and installation of bronze doors because of fabrication  problems experienced by the supplier, a 38-workday delay in ceiling close- ins in the upper level security lobby needed to resolve unexpected ceiling  problems, and a 38-workday delay in completing wall stone work in the  East Front basement area attributable to unanticipated design issues. The  contractor also reported a 130-workday delay in the delivery of custom  light fixtures, apparently the result of contractual issues between the  sequence 2 contractor and its supplier. According to the construction  management contractor, there are now five near-critical activity paths— including the HVAC system, East Front work, and work in the upper level  security lobby and assembly rooms, for which additional slippages of 17 to  53 workdays could further delay the CVC’s completion date.
Neither the September 17, 2007, nor the October 26, 2007, project  completion dates included any time for (1) installing artifacts in the  exhibit gallery after a certificate of occupancy has been issued, (2)  preparing for operations, or (3) dealing with risks and uncertainties. AOC’s  October 2006 schedule shows the artifacts installed in the exhibit gallery  by November 30, 2007, but does not allow any time for dealing with risks  or uncertainties associated with completing the work necessary for a  certificate of occupancy, and it is not clear whether the additional time  provided for installing the artifacts will be sufficient to prepare for  operations.
subsections: section_title: Problems with the HVAC System
paragraphs: In work on the CVC’s HVAC system, AOC’s construction management  contractor reported a 19-workday slippage, which the contractor  attributed to a steam pipe support problem and a problem at the Capitol  Power Plant. As we indicated at the Subcommittee’s last CVC hearing, we  asked our mechanical engineering consultant to reassess the status of the  CVC’s air handling units in early November 2006 because the CVC’s HVAC  system affects many activities, has had a number of problems, and poses  significant risks to the project’s successful completion. We asked the  consultant to compare the units’ mechanical readiness to provide  conditioned air to the CVC as of November 1 with their readiness as of his  previous assessment, on September 6, 2006. On November 1, he found that  the installation of controls for the air handling units was nearing  completion, substantial work had been done to insulate 7 of the units, and  all of the units could be ready on schedule with committed effort by the  sequence 2 mechanical subcontractor. He noted, however, that except for  pressure and leak testing and controls installation, little visible work had  been done on 12 of the units to address the issues he had identified during  his September visit. He said he did not see a large number of workers in  the air handling unit areas and the work that was being done appeared to  be on pipe insulation. Moreover, he saw little coordination between work  on completing the air handling units and on the spaces they are to serve,  and he noted a number of concerns about the operational readiness of  both, indicating that delays in providing conditioned air to the facility and  in balancing of the air handling units could potentially delay the project’s  schedule.
Even though the HVAC system’s installation and associated work are  progressing, a number of issues besides those observed by our mechanical  engineering consultant have arisen since the Subcommittee’s last CVC  hearing, heightening our concerns about the CVC team’s ability to meet its  schedule for completing and commissioning the system. Because some of  the spaces to be served by the air handling units were not yet ready, the  sequence 2 contractor recently decided to change the sequence in which  some of the air handling units would be placed in service. However, as of  last week, the technical implications of this change had not been fully  determined. The commissioning contractor has questioned whether  enough people will be available to support the commissioning process   within the scheduled time frames, and, as noted, our mechanical  engineering consultant has raised operational readiness concerns. AOC’s  construction management contractor has also expressed concerns about  these issues, and we have raised the issues in a number of CVC team  meetings, but the responses have not given us confidence that (1) all the  work associated with bringing the air handling units on line and  commissioning them has been sufficiently coordinated among the team  members; (2) all technical issues and risks associated with fully operating  the units have been adequately addressed; and (3) that sufficient staff will  be available to meet the scheduled dates.
According to sequence 2 contractor personnel, these types of problems  and ongoing schedule adjustments to address day-to-day events are not  uncommon in large, complex construction projects. Not all the problems  with the air handling units have to be resolved fully before commissioning  work can proceed, they said, and air handling units are typically turned on  before other work is completed to provide conditioned air for materials  that need it. The sequence 2 contractor said it would work with the  mechanical subcontractor and other parties to ensure that the HVAC  system issues are resolved in a timely manner. Furthermore, according to  the contractor personnel, contractual provisions are in place to address  providing conditioned air to the CVC while construction work is  underway. We understand these points and recognize the progress that has  been made. However, in light of the recurring slippages in the HVAC  system’s schedule, the system’s importance to the pretesting and final  testing of the facility’s fire protection system, and the concerns expressed  by AOC’s construction management contractor and the commissioning  contractor, we believe prompt action is needed to resolve the concerns  and ensure that the schedule for completing the HVAC system work is  realistic and will be met.
section_title: Delays in Completing the Expansion Spaces and the Library of Congress Tunnel
paragraphs: The schedule for essentially completing the construction of the House and  Senate expansion spaces (currently scheduled for April 23, 2007) has  slipped about 6 weeks since the Subcommittee’s last CVC hearing, and  several activities important to completing these spaces have also been  delayed. For example, AOC’s construction management contractor  reported another 14-workday delay in completing the circular stairs in the  atrium areas. Delays have also occurred in, for example, the installation of  the stone arch in the House lower level, because the work is taking longer  than expected, and in the installation of millwork in the House lower level,  because of fabrication delays. In addition, a special fire suppression  system was not installed because it had not been approved. Furthermore,  the sequence 2 subcontractor doing the expansion space work identified a  number of concerns that could affect the project’s completion. For  example, the subcontractor reported that its schedule could be adversely  affected if significant scope or design changes continue. Assuming that  scope and design changes are controlled, the sequence 2 subcontractor  responsible for the expansion space work hopes to recover some of the  lost time and essentially complete its construction work in March 2007. In  addition, the project’s schedule shows that the construction activity  (excluding testing) remaining after the April 2007 essential completion  date is primarily related to work necessary to complete the circular stair in  the House atrium. AOC anticipates that a design change will enable the  circular stairs in both the House and the Senate atriums to be completed  sooner than currently scheduled.
Finally, although not critical to the CVC’s opening, work being done to  connect the Library of Congress’s Jefferson building to the tunnel linking it  with the CVC has fallen more than 3 weeks behind since the  Subcommittee’s last CVC hearing, according to the construction  management contractor, at least in part, because certain stone work has  taken longer to install than anticipated. The subcontractor responsible for  this work, which is currently scheduled for completion on April 24, 2007,  expects to recover lost time and complete the work in March 2007.  Furthermore, the construction management and sequence 2 contractors  report that, for a number of reasons, the work on the tunnel itself has  slipped about 9 ½ weeks beyond the completion date in effect at the  Subcommittee’s last CVC hearing.
section_title: Indicators of Construction Progress Point to Further Delays unless AOC’s Project Execution Significantly Improves
paragraphs: The four indicators of construction progress that we have been tracking  for the Subcommittee, together with the risks and uncertainties that  continue to face the project—which we will discuss shortly—demonstrate  to us that AOC will be unlikely to meet its fall 2007 project completion  date unless it significantly improves its project execution. An update on  these indicators follows:  Sequence 2 contractor has continued to miss most milestones. Starting  with the Subcommittee’s June 2005 CVC hearing, at the Subcommittee’s  request, we and AOC have been selecting and tracking sequence 2  milestones to help the Subcommittee monitor construction progress.  These milestones include activities that were either on the project’s  critical path or that we and AOC believe are critical to the project’s timely  completion. As figure 1 shows, the sequence 2 contractor has generally  missed these milestones. For today’s hearing, the contractor met or was  expected to meet 4 of the 18 milestones that were due to be completed,  according to the project’s September 2006 schedule, and for 1 of these 4,  the work was completed ahead of schedule. However, the contractor was  late in completing work for 4 other milestones and had not completed or  was not expected to complete the work for the remaining 10 milestones by  November 15, 2006. (See app. I.) The sequence 2 contractor attributed the  slippages to a number of factors, including design issues and a need to  relocate ductwork, add steel support for wall stone, and resequence work.
Value of completed work has increased since the last hearing, but trend  reflects the sequence 2 contractor’s difficulties in meeting scheduled  completion dates. Another indicator of construction progress that we and  AOC’s construction management contractor have been tracking is the  value of the completed construction work billed to the government each  month. Overall, the sequence 2 contractor’s monthly billings, including the  bills for March through October 2006, indicate that construction work is  about 2 months behind the late finish curve, which indicates completion  around November 2007. While this indicator has some limitations (for  example, billings lag behind construction), it is generally regarded in the  construction industry as a useful measure of how likely a project is to be  completed on time. Figure 2 compares the sequence 2 contractor’s billings  since May 2003 with the billings needed to complete construction work on  schedule and suggests that AOC faces challenges in meeting its fall 2007  completion date and is more likely to complete the facility later than its  current schedule shows.
Installation of interior wall and floor stone is taking longer than  expected. Overall, about 86 percent of the CVC’s interior wall stone has  been installed (in the CVC, East Front, atrium areas, and tunnels),  according to AOC’s construction management contractor, and the  sequence 2 contractor installed nearly 85,000 of the 129,780 square feet of  interior floor stone required as of November 9. Although the sequence 2  contractor has installed almost all of the wall stone in the CVC itself and  all of the wall stone in the atrium areas, wall stone installation in the East  Front is significantly behind schedule. According to the sequence 2  contractor’s January 2006 wall stone installation schedule, the East Front  wall stone was to be completely installed by July 10, 2006. As of November  10, about 4,700 pieces of wall stone remained to be installed in the East  Front—the same quantity as we reported at the Subcommittee’s last CVC  hearing. During the 8 weeks since that hearing, the sequence 2 contractor  installed about 34,900 square feet of interior floor stone, or about 65  percent of the 52,060 square feet specified in the floor stone installation  plan that the contractor had previously provided to AOC. According to the  construction management contractor, the sequence 2 contractor’s  installation of interior floor stone has been impeded by a lack of available  space and by some work taking longer than expected.
Figure 3 shows the sequence 2 contractor’s progress in installing interior  floor stone since February 13, 2006.
section_title: Project’s Schedule Remains Vulnerable to Challenges, Risks, and Uncertainties
paragraphs: As we have indicated during the Subcommittee’s previous CVC hearings,  we believe that the CVC team continues to face challenges, risks, and  uncertainties in quickly completing the project. Given the project’s history  of delays, the difficulties the CVC team has encountered in quickly  resolving problems that arise, and the large number of near-critical  activities that can affect the project’s overall completion, the CVC team’s  efforts to identify potential problems early and resolve issues quickly will  be even more important from this point forward, because AOC has left no  “slack” in the schedule for contingencies. In our view, the remaining work  associated with the fire protection and HVAC systems poses the greatest  risks to meeting AOC’s fall 2007 project completion date. The steps AOC  has taken to mitigate these risks have been helpful, but much work  remains to be done on these systems and on their linkages with other  building systems. In addition, the project continues to face risks and  uncertainties associated with other work important to its completion, such  as the East Front, and additional design or scope changes. The project’s  current schedule does not provide the 2 to 3 months that a previous  schedule allowed for addressing ongoing challenges, risks, and  uncertainties. Accordingly, we plan to continue to monitor the CVC team’s  efforts to meet its schedule for the fire protection, HVAC, security, and  other building systems and other key near-critical activities as well as the  timeliness of the actions taken by the CVC team to address problems,  concerns, and questions that arise. A brief update follows on the  challenges, risks, and uncertainties the CVC team continues to face and  the team’s plans for addressing them:    Complex building systems remain a significant risk. The CVC will house  complex building systems, including HVAC, fire protection, and security  systems. These systems not only have to perform well individually, but  their operation also has to be integrated. If the CVC team encounters any  significant problems with them, either separately or together, during the  resolution of design issues, installation, commissioning, or testing, the  project could be seriously delayed. The unanticipated problems that  emerged in reviewing the design of the fire alarm system and in  programming it illustrate the impact such problems can have on the  project’s schedule. AOC’s Fire Marshal Division and the CVC team have  recently made considerable progress in reaching agreement on the design  of a number of important elements of the CVC’s fire protection system that  are important to the purchasing and installation of wiring and equipment.  As of November 13, the Fire Marshal Division had approved or essentially  agreed to the designs of the sprinkler, smoke control, and emergency  public address systems as well as most aspects of the CVC’s and East  Front’s fire alarm systems that are related to the ordering and installation  of wiring and equipment. According to the Fire Marshal Division, any  outstanding comments on these system elements are minor. On the other  hand, agreement has not yet been reached on a number of other system  elements, including the sequence of operations for the CVC fire alarm  system, the design for the special fire protection system in the exhibit  gallery, and the plan for final acceptance testing of the facility’s fire  protection system. A sequence 2 subcontractor has identified dates by  which certain elements must be approved to avoid further delays. Thus,  additional delays could occur if the team takes longer than expected to get  necessary remaining approvals or if the fire protection system does not  work effectively individually or in concert with the security or other  building systems. It is because of constraints such as these that we believe  it is so important to address open issues associated with the HVAC system  and to continue coordination with the U.S. Capitol Police on the security  system. Since the Subcommittee’s last CVC hearing, the Capitol Police  have identified another security problem that will require additional work.  The impact of this work, if any, had not been determined as of November  9.
Building design and work scope continue to evolve. The CVC has  undergone a number of design and work scope changes. Since September  15, 2006, AOC’s architectural contractor has issued five design changes or  clarifications. As of November 8, 2006, this contractor reported, another  four were in process. In addition, since the project began, AOC has  executed over 100 sequence 2 contract modifications for work that was  not anticipated. Some of these changes, such as changes in the exhibit  gallery and in the East Front, have resulted in delays. Furthermore,  although shop drawings have been approved for almost all project  elements, according to AOC, further design or scope changes in various  project elements are likely, given the project’s experience to date. Project  design and scope changes are typically reflected in the development of  potential change orders (PCO), many of which result in contract  modifications. Figure 4 shows the PCOs submitted for consideration for  sequences 1 and 2 since September 2003. Although PCOs are not always  approved, they are often regarded as a reasonably good indicator of likely  future design or scope changes that can affect a project’s cost and  schedule. Even more important, the adverse impact of scope and design  changes on a project’s schedule is likely to increase as the project moves  toward completion.
As the figure indicates, new PCOs for sequence 1 were submitted until  shortly before, and even for several months after, November 2004, when  AOC determined that the sequence 1 contract work was substantially  complete. Similarly, PCOs for sequence 2 are still being submitted, and we  have seen no indication that their submission is likely to stop soon. It  therefore appears likely to us that some of the design or scope changes  indicated in PCOs could lead to contract modifications that will affect the  project’s schedule. AOC agrees that it is important to minimize the impact  of proposed design and scope changes.
Trade stacking could delay completion. As we discussed during the  Subcommittee’s previous CVC hearings, trade stacking could hold up  finish work, such as drywall or ceiling installation, electrical and plumbing  work, plastering, or floor stone installation. This work could be stacked  because of delays in wall stone installation. Trade stacking could also  increase the risk of accidents and injuries. Hence, it remains important, as  we said at previous CVC hearings, for the CVC team to closely monitor  construction to identify potential trade stacking and promptly take steps  to address it. The CVC team has also identified trade stacking as a high  risk. The sequence 2 contractor has developed plans that show when  various subcontractors will be working in various areas of the CVC.  According to the sequence 2 contractor, it has been continuing to meet  regularly with its subcontractors to identify and resolve potential issues.  The CVC team identified instances of trade stacking that occurred in an  effort to expedite certain East Front work and in doing millwork and stone  work in the orientation theaters. AOC’s construction management  contractor has noted trade stacking as a potential issue associated with  the compressed time frame for bringing all of the air handling units on  line.
Additional delays associated with the CVC’s new utility tunnel have  resulted, or could result, in additional work or slippages. The delay in  starting up the utility tunnel’s operations has necessitated the use of  temporary humidity control equipment for several areas to avoid damage  to finish work and ceiling tile. Such delays may subject certain work to the  risk of damage or may delay finish or ceiling work in areas not suitable for  the use of temporary humidity and temperature control equipment. For  example, the CVC team installed ceiling tile in portions of the great hall to  take advantage of the scaffolding in place, even though neither the  temperature nor the humidity was controlled in that area. According to the  CVC team, the installed tile could be damaged if the temperature or  humidity is not within specified levels, and certain exhibit gallery  woodwork has been delayed because conditioned air has not been  available. Although the CVC team expected in early August to be providing  dehumidified air to the exhibit gallery by mid-August, the sequence 2  contractor now expects to begin providing conditioned air to the CVC later  this month. However, as noted, the contractor has resequenced the order  for bringing some air handling units on line because some spaces— including the exhibit gallery, which was slated to receive conditioned air  first—were not clean enough for the units to operate. The air handling unit  serving the exhibit gallery is now expected to come on line early in  December. Remaining risks include having sufficient manpower to meet  the scheduled dates for getting the HVAC system fully operational, having  sufficiently clean spaces, and being able to quickly overcome any  problems that may arise in getting the system properly balanced,  controlled, and commissioned, including providing enough manpower  without causing trade stacking.
Late identification or slow resolution of problems or issues could delay  completion. Historically, the project has experienced or been at risk of  experiencing some delays resulting from slow decision-making. In  addition, some CVC team members believe that some of the problems that  have resulted in delays, such as certain problems associated with the East  Front or with problematic sequence 1 concrete work could have been  identified and addressed earlier than they were. In responding to these  comments, the sequence 2 contractor said that although earlier  identification of these types of problems is conceptually possible, it is  difficult in practice. Looking forward, we do not believe that the team will  be able to meet its scheduled completion date if it does not quickly decide  on issues; respond to concerns, questions, and submittals; or resolve  problems. In September 2006, AOC told the CVC team that starting  October 1, the architectural contractor would be decreasing its staff  support to the project. In our opinion, this change increased the risk of  slow responses to design questions or requests for design instructions at a  very critical time, particularly because we have not seen evidence of a  decrease in potential change orders. AOC believes that it will be able to  provide its CVC construction contractors with sufficient architectural  support to respond to appropriate questions or requests in time to avoid  delays. We believe that this situation needs close monitoring as well as  corrective action if problems arise. AOC has not reported any problems in  this area since the last CVC hearing, and has identified steps in its  November 2006 action plan aimed at identifying and resolving design  problems quickly.
Finally, as we noted earlier in our testimony today, AOC’s delay analysis is  even more critical given the passage of the sequence 2 September 15, 2006,  contract completion date and the need to obtain a complete facility  without further delays and unreasonable costs, including delay-related  costs. On April 11, 2006, AOC executed a contract modification authorizing  its construction management contractor to have one of its managers who  has not been involved in the CVC project assess the adequacy of this type  of information. The manager submitted his report to AOC in early June. He  reported generally positive findings but also identified desired  improvements. He made several recommendations to AOC, which AOC  has generally agreed with and plans to implement consistent with the  availability of resources.
section_title: Project’s New Schedule Appears Achievable Only under Certain Conditions
paragraphs: The October project schedule shows that almost all physical construction  work on the CVC, the East Front, and the expansion spaces will be  completed by spring 2007 and that the pretesting and final testing of all fire  protection, life safety, and related systems for these areas will be carried  out between then and late October 2007. This schedule reflects the amount  of time that AOC’s Chief Fire Marshal said he would need to perform his  acceptance testing, although the CVC team is working to see if certain  aspects of the testing can be done differently to save some time. The  October 2006 schedule also calls for completing the installation of artifacts  in the exhibit gallery by November 30, 2007. However, this schedule does  not allow any time for addressing problems, risks, or uncertainties  associated with obtaining a certificate of occupancy or for preparing for  operations.
Given the uncertainty about how much time will be needed to pretest the  fire protection system, the concerns associated with the HVAC system, the  unknown effectiveness of AOC’s recently identified actions to curtail  future schedule slippages, and the limited amount of time we had to assess  the October project schedule, we do not feel that we are in position to  suggest a definitive project completion date. However, in light of the work  we have done, we do not believe AOC will be able to complete the project  by fall 2007 if the actions it has identified are not effective in curtailing  future schedule slippages. Thus, until we see that AOC has satisfactorily  addressed our schedule-related concerns, we believe that the project is  more likely to be completed in early 2008 rather than in the fall of 2007.
section_title: Recommendations
paragraphs: To minimize the risks associated with the CVC’s HVAC system and the  government’s ability to get the CVC completed within the current schedule  and cost estimates and to give Congress and us greater confidence in the  CVC team’s project schedules from this point forward, we recommend that  the Architect of the Capitol promptly take the following two actions:    Work with the rest of the CVC team to ensure that the schedule for  completing and commissioning the HVAC system is realistic, that all the  work necessary for the proper and safe functioning of the HVAC system— including work in the spaces the air handling units are to serve—is  completed in a timely, well-coordinated manner, and that sufficient  resources will be available to meet the schedule without creating a trade- stacking problem.
Carefully consider the contractual remedies available to AOC to complete  all tasks that must precede the start and completion of final acceptance  testing of the CVC’s fire protection and life safety systems within the time  necessary to meet the estimated fall 2007 project completion time frame.
AOC generally agreed with our recommendations.
section_title: Project’s Estimated Cost and Funding
paragraphs: Since the Subcommittee’s September 21 CVC hearing, we have added  about $8 million to our estimate of the total cost of the CVC project at  completion. This increase reflects a rough estimate of the impact on the  project’s cost of the 6-week delay associated with the fire protection  system and other scope and design changes identified during the past 8  weeks; however, the actual costs for changes are not yet known, and we  have not had sufficient time to fully assess the CVC team’s cost estimates  incorporated in our estimate. With this approximately $8 million  increase, we now estimate, on the basis of our limited review, 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. We nevertheless  recognize that the project continues to face a number of uncertainties,  including uncertainty over the extent of AOC’s responsibility for the delay- related costs. (We have not updated our estimate of the project’s cost at  completion with an allowance for risks and uncertainties.)
To date, about $531 million has been provided for CVC construction. This  amount includes about $3.9 million that was made available for either CVC  construction or operations and has been approved for CVC construction  by the House and Senate Committees on Appropriations. An earlier cost- to-complete estimate, prepared for the Subcommittee’s March 2006 CVC  hearing, showed that another $26 million in construction funds would be  necessary to reach the previous cost estimate of $556 million, which did  not include an allowance for risks and uncertainties. AOC has requested  this additional $26 million in its fiscal year 2007 budget for CVC  construction. AOC has also requested $950,000 in fiscal year 2007 general  administration appropriation funds to provide contractual support for the  Chief Fire Marshal’s final acceptance testing of the CVC. During fiscal year  2007, AOC is also likely to need, but has not yet requested, additional  funds to pay for changes. At the Subcommittee’s last CVC hearing, we  roughly estimated that AOC would need an additional $5 million to $10  million in fiscal year 2007 for changes unless it decides to use funds slated  for other purposes, after obtaining the necessary congressional approvals.  AOC agrees with this rough estimate at this time and notes that it would  likely need additional funding in fiscal year 2008 to replenish these funds  and to cover certain additional costs if they materialize.
Mr. Chairman, this completes our prepared statement. We would be  pleased to answer any questions that you or Members of the  Subcommittee may have.
section_title: Contacts and Acknowledgments
paragraphs: For further information about this testimony, please contact Bernard  Ungar at (202) 512-4232 or Terrell Dorn at (202) 512-6923. Other key  contributors to this testimony include Shirley Abel, John Craig, Maria  Edelstein, Elizabeth Eisenstadt, Jeanette Franzel, Jackie Hamilton,  Bradley James, Joshua Ormond, and Scott Riback.
section_title: Appendix I: Capitol Visitor Center Critical Construction Milestones September- November 2006
paragraphs: Elevator VC # 17 East Front  Elevator VC # 12 Orientation Theater  Great Hall AHU # 3 &16   een completed, the litered pnel will need to e repired or replced.
Contining effort re eing mde to ndernd nd develop the quence of opertion (CONOP)  mtrix requirement. The mtrix muspproved y Decemer 8, 2006, to void n impct on the  criticl pth.
Enogh of the dctwork has een relocted to llow hood inlltion to egin. Crrently three of the  ix hoodve een inlled. The bance of hood inlltion i chedled to e complete y  Novemer 24, 2006.
Control pnel re et nd opertionl. Thi ctivity inclded etting cab hell withot finihe. The  cab vendor decided to prefinih the cabsther thn to finih the hell on ite. Finihed cabs re on  ite nd preption re eing mde for inlltion thi week.  ffold for ceiling inlltion has een removed, ffolding has een erected long the  wll in the th theter to inll wood pnel. Thi ffolding will ffect inlltion of the tone  ir tep.   work issentilly completed.  nel inlltion egn on Novemer 9, 2006.
Plaster ceilingve een completed in the min lobbre nd th assemly room. Hnging of  the north assemly room ceiling egn on Novemer 7, 2006.
Inlltion of the nitrt frming was delyed ecause of trctl deign concern. Additionl  cross cing was dded to tiffen the assemly. Wll tone inlltion i to egin thi week.
The work has een delyed ecaustrctteel was dded to support the metd wll t the  easide of ir #37. Upon the completion of metd wll, the tone work i chedled to egin.  The revied rt dte for wll tone on the principl level i Novemer 30, 2006.
Fabric ceiling pnel inlltion has een delyed ecause of del in necessary preceding East  Front work—completion of the East Front rchwtone, ceiling, nd etor inlltion.  Inlltion of the fabric pnel crrently cnnot e completed ntil the etor truss re et to  cler the floor re. Setting of the trussrrently projected to e completed y the end of  Juary 2007.
Because of above-ceiling conflict, the work was requenced to llow the floor tone inlltion to  proceed hed of the ceiling work. Hnging of bulkhe rted in the th creening re on  Novemer 2, 2006 nd i expected to e completed in Novemer 2006.  niclly redy prioritieve een requenced. AHU #1 has een witched with AHU #3 nd  16, which re now chedled for Novemer 15, 2006. AOC’ contrction mgement contrctor  elieve tht thi ctivity issentilly complete. AHU #1 i now chedled for Decemer 6, 2006.  quence 2 nd contrction mgement contrctor expect thi work to e essentilly  completed y cloe of business tody.
The rt of wood pnel inlltion i pending hmidity control within the ce.
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