This is the accessible text file for GAO report number GAO-08-900T entitled 'Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of June 27, 2008' which was released on July 9, 2008. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Testimony: Before the Subcommittee on the Legislative Branch, Committee on Appropriations, House of Representatives: United States Government Accountability Office: GAO: For Release on Delivery: Expected at 7:00 p.m. EDT: Tuesday, July 8, 2008: Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of June 27, 2008: Statement of Terrell G. Dorn: Director, Physical Infrastructure Issues: GAO-08-900T: 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 May 22, 2008, [Footnote 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. Construction Is Essentially Complete, and Fire Alarm Testing Continues: Since the May 22, 2008, CVC hearing, work on the project has moved forward, and despite issues in certain CVC and expansion space work, AOC still believes the fire alarm testing will be completed late next month and the project will be available to open in November 2008. According to AOC's construction management contractor, in dollar terms, the overall CVC project remains 99 percent complete.[Footnote 2] Some risks to the project's schedule remain in testing some components of the CVC's fire alarm system. Many punch list[Footnote 3] items also remain to be completed, and a steady number of proposed change orders have to be resolved. At this time, AOC does not expect the punch list items or the proposed change orders to affect the project's completion date. Since the last hearing, work on the project's current critical path, [Footnote 4] fire alarm acceptance testing, has continued, and AOC has taken steps to address other concerns. For example, the fire marshal has continued testing the building's smoke exhaust system. Although some issues have arisen during this testing, such as the potential need for additional or larger smoke exhaust fans for a portion of the building, no new significant issues have emerged. AOC still expects to receive a temporary certificate of occupancy for the project on or before July 31, 2008. In addition, the CVC team has continued to gradually reduce the number of punch list items, which we have identified as a concern at the last several hearings. According to AOC, the number of punch list items has been reduced from over 15,000 to about 4,700. Finally, AOC is developing plans to repair the damage to plaza pavers that we discussed at last month's hearing. AOC has determined that substantial rework of the plaza may be required and is planning the repairs to avoid interference with the CVC's opening and with inaugural activities. It is still not clear who will ultimately be financially responsible for the repairs, but we do not anticipate a need for additional appropriations to address this issue. 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 (PCO). However, the number of open orders has increased since our last statement while the number of orders settled during the same period has declined. Sustained attention to this issue is needed to reduce uncertainty about the project's costs. Figure 1 compares the number of outstanding proposed change orders with the number settled each month. Figure 1: Outstanding and Settled Proposed Change Orders by Month, March 2006 through April 2008: This figure is a combination line graph showing outstanding and settled proposed change orders my month, March 2006 through May 2008. The horizontal axis represents the date, and the vertical axis represents the number of PCOs. One line represents Outstanding PCOs, and the other line represents PCOs settled this month. Date: March 31, 2006; Outstanding PCOs: 336; PCOs settled this month: 27. Date: April 30, 2006; Outstanding PCOs: 360; PCOs settled this month: 32. Date: May 31, 2006; Outstanding PCOs: 372; PCOs settled this month: 24. Date: June 30, 2006; Outstanding PCOs: 340; PCOs settled this month: 23. Date: July 31, 2006; Outstanding PCOs: 403; PCOs settled this month: 26. Date: August 31, 2006; Outstanding PCOs: 367; PCOs settled this month: 19. Date: September 30, 2006; Outstanding PCOs: 369; PCOs settled this month: 19. Date: October 31, 2006; Outstanding PCOs: 374; PCOs settled this month: 26. Date: November 30, 2006; Outstanding PCOs: 391; PCOs settled this month: 23. Date: December 31, 2006; Outstanding PCOs: 417; PCOs settled this month: 10. Date: January 31, 2007; Outstanding PCOs: 445; PCOs settled this month: 29. Date: February 28, 2007; Outstanding PCOs: 456; PCOs settled this month: 16. Date: March 31, 2007; Outstanding PCOs: 421; PCOs settled this month: 28. Date: April 30, 2007; Outstanding PCOs: 444; PCOs settled this month: 28. Date: May 31, 2007; Outstanding PCOs: 451; PCOs settled this month: 49. Date: June 30, 2007; Outstanding PCOs: 443; PCOs settled this month: 35. Date: July 31, 2007; Outstanding PCOs: 437; PCOs settled this month: 21. Date: August 31, 2007; Outstanding PCOs: 432; PCOs settled this month: 54. Date: September 30, 2007; Outstanding PCOs: 432; PCOs settled this month: 33. Date: October 31, 2007; Outstanding PCOs: 451; PCOs settled this month: 39. Date: November 30, 2007; Outstanding PCOs: 425; PCOs settled this month: 18. Date: December 31, 2007; Outstanding PCOs: 425; PCOs settled this month: 21. Date: January 31, 2008; Outstanding PCOs: 398; PCOs settled this month: 30. Date: February 29, 2008; Outstanding PCOs: 413; PCOs settled this month: 42. Date: March 31, 2008; Outstanding PCOs: 385; PCOs settled this month: 41. Date: April 30, 2008; Outstanding PCOs: 333; PCOs settled this month: 37. Date: May 31, 2008; Outstanding PCOs: 329; PCOs settled this month: 26. [See PDF for image] Source: AOC's construction management contractor. [End of figure] AOC's Cost Estimate Remains the Same, and Additional Funds Will Be Needed: AOC's current estimate of the cost to complete the CVC project's construction, first reported in September 2007,[Footnote 5] remains about $621 million. We believe this estimate is realistic and contains a sufficient allowance for contingencies, provided there are no unexpected delays over the next month, when construction is scheduled to be complete. To date, about $583.3 million has been approved for CVC construction, and AOC has $2.4 million more in fiscal year 2008 CVC appropriations that it plans to use for construction after it obtains congressional approval to obligate these funds.[Footnote 6] In addition, AOC has estimated that it will still need another $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 finish 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. Contacts and Acknowledgments: 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. [End of section] Footnotes: [1] GAO, Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of May 22, 2008, GAO-08-811T (Washington, D.C.: May 22, 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. [5] GAO, Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of September 25, 2007, GAO-07-1249T (Washington, D.C.: September 25, 2007) [6] 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. [End of section] GAO's Mission: The Government Accountability Office, the audit, evaluation and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. 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