U.S. Embassy, Moscow:

Alternatives for Reconstruction and Their Costs

NSIAD-91-43FS: Published: Dec 28, 1990. Publicly Released: Feb 1, 1991.

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Pursuant to a congressional request, GAO reviewed the Department of State's proposal to reconstruct the partially finished U.S. embassy in Moscow, focusing on the: (1) basis for the current cost estimate of $270 million for demolition and reconstruction; and (2) costs of alternatives for a new embassy.

GAO found that: (1) State based its cost estimate on a security engineering study's estimated reconstruction costs and on its estimates of special security requirements and administrative costs; (2) the $270-million cost estimate could be understated because of an incomplete building design, schedule delays, and revised inflation forecasts; and (3) State considered three other options ranging in estimated costs from $222 million to $336 million, but did not favor them because they did not fully meet security needs, were too costly, or would take too long to complete.

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