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Overseas Construction: Problems in Constructing Embassy Facilities in Cairo, Egypt

NSIAD-86-101 Published: Apr 18, 1986. Publicly Released: May 19, 1986.
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Highlights

In response to a congressional request, GAO examined the Department of State's Foreign Buildings Office (FBO) construction practices for the ambassador's residence and the chancery in Cairo, Egypt, specifically its procedures in contracting for and ensuring quality construction of those structures.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of State In view of the construction difficulties experienced in Egypt, and the costly and time-consuming changes made to previous plans there, the Secretary of State should direct FBO to follow departmental procedures for the design and construction of facilities in Egypt.
Closed – Implemented
A new PMC program was initiated at FBO. FBO instituted a new management procedure via outside contractors under its program manager contractor, who will provide personnel, facility, and Egypt to manage and give administrative support to FBO for each capital project. It will be required to follow all draft procedures to build capital projects.
Department of State In view of the construction difficulties experienced in Egypt, and the costly and time-consuming changes made to previous plans there, the Secretary of State should direct FBO to ensure that necessary attention is directed toward deciding the height of the chancery building.
Closed – Implemented
A decision to build 16 stores, plus a penthouse, was made by FBO for the Cairo Office Building on August 6, 1986.
Department of State In view of the construction difficulties experienced in Egypt, and the costly and time-consuming changes made to previous plans there, the Secretary of State should direct FBO to require that future decisions regarding the ambassador's residence be based on an examination of the costs and benefits of alternatives.
Closed – Implemented
FBO claims that it made a decision to keep the Zawalike residence and only make minor additions to the present residence.

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Topics

Construction contractsConstruction costsContract administrationContract performanceEmbassiesFinancial managementGovernment facility constructionInternational relationsConstructionEmbassies