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    Subject Term: "Construction costs"

    12 publications with a total of 33 open recommendations
    Director: Anne-Marie Fennell
    Phone: (202) 512-3841

    3 open recommendations
    Recommendation: The Secretary of the Army should direct the Chief of Engineers and the Commanding General of the U.S. Army Corps of Engineers to systematically review data on municipal and industrial water storage agreements stored within the OMBIL system and correct errors, as appropriate, to ensure that the data are accurate and complete.

    Agency: Department of Defense: Department of the Army
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Secretary of the Army should direct the Chief of Engineers and the Commanding General of the U.S. Army Corps of Engineers to develop policy and implementing guidance directing staff to conduct systematic reviews of M&I water storage agreement data in OMBIL.

    Agency: Department of Defense: Department of the Army
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Secretary of the Army should direct the Chief of Engineers and the Commanding General of the U.S. Army Corps of Engineers to collect and analyze data on the length of time it takes to complete the reallocation process.

    Agency: Department of Defense: Department of the Army
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Michele Mackin
    Phone: (202) 512-4841

    3 open recommendations
    Recommendation: To ensure the Milestone Decision Authority has an accurate and credible cost estimate for the Milestone C program review, Naval Sea Systems Command Cost Engineering and Industrial Analysis Group (NAVSEA 05C) should update the cost estimate for CVN 79 as part of the Ford-Class program life-cycle cost estimate. This estimate should be prepared in accordance with cost estimating best practices and include current shipbuilder performance data. The Naval Center for Cost Analysis (NCCA) should review the new CVN 79 cost estimate as part of the planned independent cost assessment. Further, the Secretary of Defense should direct the CAPE to include the new CVN 79 cost estimate as part of the planned independent cost estimate, which should form the basis of the program budget request. If the independent cost estimate for CVN 79 should exceed the cost cap, the Navy should submit to Congress a request to revise the cost cap.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: Starting with CVN 80, NAVSEA 05C should develop program life-cycle cost estimates for each individual ship in the Ford-Class program baseline. Development of these estimates should be provided at milestone reviews that should be aligned with major aircraft carrier funding events. In particular, for CVN 80, a program life-cycle cost estimate should be developed prior to the request for ship construction funding. For all ships in the class after CVN 80, a program life-cycle cost estimate should be aligned with milestone reviews that correspond with the receipt of any advance procurement funding and the first year of the request for ship construction funding. These estimates should be prepared in accordance with best practices and updated regularly with actual cost data. The Secretary of Defense should further direct the Office of Cost Assessment and Program Evaluation to develop independent cost estimates for these ships prior to the listed events. The Secretary of the Navy should direct NCCA to conduct independent cost assessments for these ships prior to the listed events.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: To improve insight into cost changes for individual ships in the Ford Class, the program office should prepare cost summary and funding summary sections for each individual ship in the class as part of the SAR for the overall Ford-Class program.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Michael J. Courts
    Phone: (202) 512-8980

    4 open recommendations
    Recommendation: To better assess OBO's performance, the Secretary of State should determine whether the existing OBO program performance measure and annual target of moving 1,500 people into safe, secure, and functional facilities is still appropriate or needs to be revised.

    Agency: Department of State
    Status: Open

    Comments: OBO stated that it would perform a multi-year, comprehensive evaluation of this performance metric and determine whether the target remains appropriate. As of October 2017, OBO anticipated this evaluation to be completed in fiscal year 2019.
    Recommendation: To better assess OBO's performance, the Secretary of State should establish additional performance measures applicable to the new goals of the Excellence approach in support of the Capital Security Construction Program.

    Agency: Department of State
    Status: Open

    Comments: As of October 2017, OBO had stated it would develop Excellence-related performance metrics to assess the execution and delivery of its projects. Specifically, these would be tied to the Bureau's strategic plan, which is reviewed annually and updated every three years. The next strategic plan update was estimated to occur in early 2020.
    Recommendation: To better assess OBO's performance, the Secretary of State should finalize the mechanisms OBO will use to better track and evaluate the actual operations and maintenance performance of its buildings--whether Excellence or SED--and document through appropriate policies, procedures, or guidance.

    Agency: Department of State
    Status: Open

    Comments: As of October 2017, OBO was engaged in a life cycle cost analysis methodology project intended to take an in-depth look at OBO's processes, practices, and procedures, compare and contrast them with best industry practices, and make recommendations to the bureau. OBO anticipated finalizing this by early 2018.
    Recommendation: To better assess OBO's performance, the Secretary of State should finalize the mechanisms OBO will use to centrally manage project management data (to include project cost and schedule information), currently termed the Ideal Operational State, and document through appropriate policies, procedures, or guidance.

    Agency: Department of State
    Status: Open

    Comments: As of October 2017, OBO was working on the implementation of its Ideal Operational State initiative, which it envisioned as a multi-year effort subject to budget realities. OBO anticipates having an integrated program schedule by early 2018, although full implementation would take longer.
    Director: Brian J. Lepore
    Phone: (202) 512-4523

    3 open recommendations
    Recommendation: In order to help ensure that DOD and the military departments are providing timely and consistent information on privately financed construction projects to Congress under DOD Instruction 7700.18, the Secretary of Defense should direct the Under Secretary of Defense for Personnel and Readiness--in collaboration with any other relevant DOD stakeholders--to identify the categories of privately financed construction projects, including gifts of major construction, that should be reported through the process outlined in DOD Instruction 7700.18; revise DOD Instruction 7700.18 and any other related policies, as appropriate, to clarify which project types are to be included in and excluded from this reporting process; and require that the military departments update their relevant policies to incorporate the revised policy.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: In order to ensure that Congress receives all desired information on all gifts of major construction in a timely manner, the Secretary of Defense--in collaboration with any other relevant DOD stakeholders--should identify the lead organization(s) within DOD that will be responsible for developing DOD-wide policy for reporting gifts of major construction that are not reported through the process outlined in DOD Instruction 7700.18, as appropriate.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: In order to ensure that Congress receives all desired information on all gifts of major construction in a timely manner, the Secretary of Defense--in collaboration with any other relevant DOD stakeholders--should establish DOD-wide policy, as appropriate, on congressional notification of gifts of major construction to cover all such gifts that are not to be reported to Congress through the process outlined in DOD Instruction 7700.18, and require that the military departments update their gift acceptance policies--and any other relevant policies--to incorporate procedures to support DOD's notification requirements.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Brian Lepore
    Phone: (202) 512-4523

    1 open recommendations
    Recommendation: To better enable DOD to provide congressional decision makers with complete and reliable information on the total anticipated costs for the JIAC consolidation efforts, the Office of the Assistant Secretary of Defense for Energy, Installations, and Environment's Basing Office--in coordination with the Office of the Assistant Secretary of the Air Force Installations, Environment and Energy-- should update future construction cost estimates for consolidating the JIAC at RAF Croughton using best practices for cost estimating as identified in the GAO Cost Estimating and Assessment Guide. Specifically, cost estimates for the JIAC consolidation should fully incorporate all four characteristics of a high-quality, reliable estimate.

    Agency: Department of Defense: Office of the Secretary of Defense: Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics: Office of the Assistant Secretary of Defense for Energy, Installations, and Environment
    Status: Open

    Comments: In commenting on this report, DOD did not concur with our recommendation. DOD agreed that many components in the GAO Cost Estimating and Assessment Guide are broadly applicable in the decision process leading up to a military construction budget request. However, DOD further stated that once military construction funds are authorized and appropriated by Congress, the department transitions to a project management mode, and it would be a waste of resources to continue to generate cost estimates once they have transitioned to managing project execution using actual cost data. However, as we note in the report, DOD guidance for estimating construction costs, DOD?s Unified Facilities Criteria 3-740-05, states that in the MILCON program, construction cost estimates are prepared throughout the planning, design, and construction phases of a construction project to account for the refinement of the project?s design and requirements. The final estimate should document the department?s assessment of the program's most probable cost and ensure that enough funds are available to execute it. As of October 2016, the military construction funds had not been authorized by Congress for the third phase of the JIAC construction project. According to DOD officials, construction is not scheduled to begin until fall of 2017, and the contract has not yet been awarded. Further, the GAO Cost Estimating and Assessment Guide states that regardless of whether changes to the program result from a major contract modification or an overtarget budget, the cost estimate should be regularly updated to reflect all changes. This is also a requirement outlined in OMB?s Capital Programming Guide. The purpose of updating the cost estimate is to check its accuracy, defend the estimate over time, and archive cost and technical data for use in future estimates. After the internal agency and congressional budgets are prepared and submitted, it is imperative that cost estimators continue to monitor the program to determine whether the preliminary information and assumptions remain relevant and accurate. Keeping the estimate updated gives decision makers accurate information for assessing alternative decisions. Cost estimates must also be updated whenever requirements change, and the results should be reconciled and recorded against the old estimate baseline. Therefore, we continue to believe that DOD?s implementation of our recommendation to update future JIAC cost estimates using the best practices identified in the GAO Cost Estimating and Assessment Guide would assist in ensuring that decision makers have complete and reliable information about costs associated with the JIAC consolidation and as the third phase of the JIAC project is authorized. Implementing our recommendation would also ensure that DOD develops a reliable historical record for the cost of the JIAC that can be used to estimate other similar projects in the future. As of June 2017, the agency had not taken any action to implement this recommendation.
    Director: Russell, Cary B
    Phone: (202) 512-5431

    6 open recommendations
    Recommendation: To improve DOD's management and oversight of contingency construction in the CENTCOM area of responsibility and in other geographic combatant commands where applicable, and to improve DOD's awareness of how much O&M funding the department uses for construction projects to support contingency operations, the Secretary of Defense should direct the Secretaries of the military departments, in coordination with the Under Secretary of Defense (Comptroller), to track the universe and cost of ongoing and future contingency construction projects that are funded from O&M appropriations under section 2805 of Title 10, U.S. Code (unspecified minor military construction authority).

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: To improve DOD's management and oversight of contingency construction in the CENTCOM area of responsibility and in other geographic combatant commands where applicable, and to improve DOD's ability to quickly fund contingency construction projects that are not ideally suited to the current standard Military Construction and Operation and Maintenance processes and time frames and reduce reliance on funding approaches that pose risks regarding the appropriate use of funding, negative operational impacts, and unnecessary duplication, DOD should evaluate and improve the use of existing processes and authorities to the extent possible; determine whether additional authorities are needed to support urgent construction needs; and revise existing departmental processes or seek additional authorities, as appropriate.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: To improve DOD's management and oversight of contingency construction in the CENTCOM area of responsibility and in other geographic combatant commands where applicable, and to help ensure that DOD limits demands on available resources to those necessary to meet contingency construction project requirements and communicates those requirements effectively, the Secretary of Defense should, in coordination with the Secretary of the Army, direct the Army Corps of Engineers to develop a control activity for documenting level-of-construction determinations before the Army Corps of Engineers designs the projects and estimates their costs.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: To improve DOD's management and oversight of contingency construction in the CENTCOM area of responsibility and in other geographic combatant commands where applicable, and to ensure that DOD avoids constructing facilities that may be unneeded to support U.S. forces and to comprehensively document the results of its reviews of ongoing construction projects when changes in mission requirements occur, the Secretary of Defense should, in coordination with the Chairman of the Joint Chiefs of Staff, direct the Secretaries of the military departments and the Commander of CENTCOM to develop implementing guidance for the review and verification of ongoing contingency construction projects when mission changes occur.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: To improve DOD's management and oversight of contingency construction in the CENTCOM area of responsibility and in other geographic combatant commands where applicable, and to improve the awareness of the combatant and service component commands' responsibilities to record and share lessons learned and to ensure that important contingency-construction-related lessons are recorded, the Secretary of Defense should, in coordination with the Chairman of the Joint Chiefs of Staff, direct the Commander of CENTCOM to revise Central Command Regulation 415-1 or issue other guidance as appropriate to specifically detail the role of the combatant command and service component commands in recording contingency construction lessons learned from the CENTCOM area of responsibility in the Joint Lessons Learned Information System.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: In light of potential concerns regarding the appropriate use of funding raised by several of the examples identified in this report, the Secretary of Defense should direct the Secretaries of the Army and the Air Force to review these and, as appropriate, other construction projects in the contingency environment presenting similar circumstances to ensure that funds were properly used.

    Agency: Department of Defense
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Michele Mackin
    Phone: (202) 512-4841

    3 open recommendations
    Recommendation: To improve the use of warranties and guarantees in Navy shipbuilding, the Secretary of the Defense should direct the Secretary of the Navy, in arrangements where the shipbuilder is paid to correct defects, to structure contract terms such that shipbuilders do not earn profit for correcting construction deficiencies following delivery that are determined to be their responsibility.

    Agency: Department of Defense
    Status: Open

    Comments: In providing comments on this report, the Department of Defense partially concurred with this recommendation, and has completed a study reviewing our findings. The study, conducted by the CNA Analysis and Solutions, found that our recommendations were well founded and appropriate. In response to our report and the study, the Navy states it will provide written guidance by the end of 2017 to prevent shipbuilders from earning profit for correcting shipbuilder-responsible defects.
    Recommendation: To improve the use of warranties and guarantees in Navy shipbuilding, the Secretary of the Defense should direct the Secretary of the Navy to establish and document a clear objective for using a guaranty, and then create guidance for contracting officers that illustrates how to implement a guaranty that meets this objective. This guidance should describe how contracting officers should use aspects of the guaranty, including determining an appropriate limitation of liability, to achieve the objective and include considerations as to when a guaranty should be a separate contract line item.

    Agency: Department of Defense
    Status: Open

    Comments: In providing comments on this report, the Department of Defense partially concurred with this recommendation, and agreed to conduct a study to determine what policy and guidance changes are necessary to provide guidance on the many factors that should be considered to effectively implement warranty and guaranty provisions. As of April 2017, this study is complete and the Navy states that it now concurs with our recommendation. In doing so, the Navy is drafting an instruction, including a decision template, laying out the considerations underlying the decision to use warranties, guarantees or other mechanisms. This instruction will help contracting officers choose an appropriate tool and document the decision in a business clearance memorandum. The Navy plans to implement the instruction by the end of 2017.
    Recommendation: To improve the use of warranties and guarantees in Navy shipbuilding, the Secretary of the Defense should direct the Secretary of the Navy, for future ship construction contracts, to determine whether or not a warranty as provided in the FAR, provides value and document the costs, benefits, and other factors used to make this decision. To inform this determination, the Navy should begin differentiating the government's and shipbuilder's responsibility for defects and track the costs to correct all defects after ship delivery.

    Agency: Department of Defense
    Status: Open

    Comments: In providing comments on this report, the Department of Defense partially concurred with this recommendation, and has completed a study reviewing our findings. The study, conducted by the CNA Analysis and Solutions, found that our recommendations were well founded and appropriate. In response to our report and the study, the Navy states it will include separate contract line items for FAR-type warranties in at least two solicitations for ship construction. In addition, the Navy states that it plans to revise data requirements to better gather and track contractor responsible defects, and then develop analytical methods to help make better determinations in the future as to the optimal guaranty duration and limit of liability. They expect to complete these activities by December 2017.
    Director: Frank Rusco
    Phone: (202) 512-3841

    2 open recommendations
    Recommendation: The Architect of the Capitol, prior to undertaking future major capital projects related to its energy needs, should fully update its long-term energy plan while following key leading capital-planning practices. As part of this effort, the agency should (1) fully assess the complex's long-term needs and identify any performance gaps, while taking into account the effects of possible changes in demand--including the impacts of ongoing and planned energy conservation measures and other factors that could affect the demand for CPP's services; (2) identify and evaluate a range of alternatives for how to best meet the agency's needs, including non-capital options and energy conservation measures that could reduce the demand for CPP's services; and (3) identify key assumptions and risks of the alternatives considered and perform valid sensitivity and uncertainty analyses to determine which alternatives could prove the most cost-effective under a range of potential future conditions.

    Agency: Architect of the Capitol
    Status: Open

    Comments: In December 2016, AOC said that it was updating its long-term strategic energy plan in accordance with the best practices we identified. AOC was not certain when they would complete the plan.
    Recommendation: As AOC updates its long-term energy plan, the Architect should seek a review of the plan by an independent panel of experts to ensure it follows key leading practices and provide the results of the review to Congress.

    Agency: Architect of the Capitol
    Status: Open

    Comments: In December 2016, AOC said that it was updating its long-term strategic energy plan in accordance with the best practices we identified. AOC was not certain when they would complete the plan.
    Director: Michele Mackin
    Phone: (202) 512-4841

    1 open recommendations
    Recommendation: The legislated cost cap for Ford-class aircraft carrier construction provides a limit on procurement funds. However, the legislation also provides for adjustments to the cost cap. To understand the true cost of each Ford-class ship, Congress should consider revising the cost cap legislation to ensure that all work included in the initial ship cost estimate that is deferred to post-delivery and outfitting account is counted against the cost cap. If warranted, the Navy would be required to seek statutory authority to increase the cap.

    Agency: Congress
    Status: Open

    Comments: This recommendation remains open to allow Congress time to consider legislation amending the cost cap for the Ford class of aircraft carriers. The current version of the fiscal year 2018 National Defense Authorization Act (H.R. 2810) does not amend the current cost cap legislation.
    Director: Susan Fleming
    Phone: (202) 512-2834

    1 open recommendations
    Recommendation: To improve transparency and provide Congress and the public greater visibility into the types of highway activities funded with Highway Trust Fund monies, the Secretary of Transportation should direct the FHWA Administrator to explore the costs, feasibility, and options for collecting and publicly reporting consistent aggregate project-level spending data.

    Agency: Department of Transportation
    Status: Open

    Comments: FHWA agreed with the recommendation and stated that it was reviewing the feasibility and options for collecting and reporting aggregate project-level highway spending data, and that it intended to complete this review by December 2015. In December 2015, the President signed the Fixing America's Surface Transportation Act or "FAST Act". Sec. 1402 of the Act requires DOT to annually report, for all projects administered by FHWA with a total estimated cost of $25 million or more (and for all other projects to the extent practicable), on the total cost of funded projects, the amount of federal funds obligated, and other information, and to make this information "available in a user-friendly manner on the public Internet website of the Department of Transportation." GAO is monitoring DOT's efforts to implement this provision of the Act and the extent to which it fulfills GAO's recommendation.
    Director: David C. Trimble
    Phone: (202) 512-3841

    3 open recommendations
    Recommendation: To identify lessons learned from and provide assurance of preventing recurrence of cost increases for the MOX facility and WSB, and to develop reliable cost estimates for the Plutonium Disposition program, the Secretary of Energy should direct the DOE and NNSA Offices of Acquisition and Project Management and the NNSA office responsible for managing the Plutonium Disposition program, as appropriate, to revise and update the program's life-cycle cost estimate following the 12 key steps described in the GAO Cost Estimating and Assessment Guide for developing high-quality cost estimates, such as conducting an independent cost estimate to provide an objective and unbiased assessment of whether the estimate can be achieved.

    Agency: Department of Energy
    Status: Open

    Comments: DOE is currently evaluating dilute and dispose as a potential alternative approach to the MOX approach. As a result, DOE does not plan to update the Plutonium Disposition Program life-cycle estimate until a decision is made on which approach to pursue. We will continue to monitor this situation and update the status of this recommendation once DOE has made a decision on the approach taken by this program.
    Recommendation: To identify lessons learned from and provide assurance of preventing recurrence of cost increases for the MOX facility and WSB, and to develop reliable cost estimates for the Plutonium Disposition program, the Secretary of Energy should direct the DOE and NNSA Offices of Acquisition and Project Management and the NNSA office responsible for managing the Plutonium Disposition program, as appropriate, to ensure that the MOX contractor revises its proposal for increasing the cost of the MOX facility to meet all best practices for a high-quality, reliable cost estimate--for example, by cross-checking major cost elements to determine whether alternative estimating methods produce similar results.

    Agency: Department of Energy
    Status: Open

    Comments: DOE is currently evaluating dilute and dispose as a potential alternative approach to the MOX approach. As a result, DOE does not plan to update the proposal for increasing the cost of the MOX facility until a decision is made on which approach to pursue. We will continue to monitor this situation and update the status of this recommendation once DOE has made a decision on the approach taken by this program.
    Recommendation: To ensure that future DOE projects benefit from lessons learned that reflect the underlying causes of cost increases or schedule delays experienced by other projects, and that Congress and DOE have life-cycle cost estimates for DOE programs that include individual construction projects, the Secretary of Energy should revise DOE's project management order or otherwise implement a departmentwide requirement by requiring life-cycle cost estimates covering the full cost of programs that include both construction projects and other efforts and activities not related to construction.

    Agency: Department of Energy
    Status: Open

    Comments: DOE revised its project management order in May 2016 but did not make any changes in regards to this recommendation. We will continue to monitor DOE activities, if any, related to this recommendation.
    Director: Goldstein, Mark L
    Phone: (202)512-3000

    3 open recommendations
    Recommendation: In order to improve the planning and oversight for future courthouse construction projects, to increase the efficiency of courtroom usage through courtroom sharing, and to ensure that future courthouses are built within the congressionally authorized gross square footage, the Administrator of GSA should establish sufficient internal control activities to ensure that regional GSA officials understand and follow GSA's space measurement policies throughout the planning and construction of courthouses. These control activities should allow for accurate comparisons of the size of a planned courthouse with the congressionally authorized gross square footage throughout the design and construction process.

    Agency: General Services Administration
    Status: Open

    Comments: GSA has provided information to support closing this recommendation that GAO is evaluating.
    Recommendation: In order to improve the planning and oversight for future courthouse construction projects, to increase the efficiency of courtroom usage through courtroom sharing, and to ensure that future courthouses are built within the congressionally authorized gross square footage, the Administrator of GSA should, in order to avoid requesting insufficient space for courtrooms based on the AnyCourt model's identification of courtroom space needs, establish a process, in cooperation with the Director of the Administrative Office of the U.S. Courts, by which the planning for the space needed per courtroom takes into account GSA's space measurement policy related to tenant floor cuts if a courthouse may be designed with courtrooms that have tenant floor cuts.

    Agency: General Services Administration
    Status: Open

    Comments: GSA has provided information to support closing this recommendation that GAO is evaluating.
    Recommendation: In order to improve the planning and oversight for future courthouse construction projects, to increase the efficiency of courtroom usage through courtroom sharing, and to ensure that future courthouses are built within the congressionally authorized gross square footage, the Administrator of GSA should report to congressional authorizing committees when the design of a courthouse exceeds the authorized size by more than 10 percent, including the reasons for the increase in size.

    Agency: General Services Administration
    Status: Open

    Comments: GSA has provided information to support closing this recommendation that GAO is evaluating.