Overseas Construction:

State Initiates Corrective Actions, but Improvements Still Needed

NSIAD-88-27: Published: Oct 30, 1987. Publicly Released: Dec 8, 1987.

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Pursuant to a congressional request, GAO reviewed the Department of State's efforts to correct long-standing construction management problems in its Office of Foreign Buildings Operations (FBO).

GAO noted that State believes that its hiring of a private-sector program manager to reorganize FBO will improve its worldwide security construction program. GAO found that: (1) FBO operations have programmatic and procedural deficiencies, such as vacant program management positions, policies and procedures which do not meet government regulations, and informal and undocumented cost-estimating procedures; (2) FBO implemented 3 recommendations from a recent GAO report on deficiencies and partially implemented 10 of 20 recommendations noted in an August 1985 State Inspector General report; and (3) deficiencies in cost-estimating procedures prevented a complete assessment of the reasonableness of costs associated with the security construction and renovation program.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: As of August 24, 1988, the Director, FBO, indicated that the respective procedures/procedures manuals have been completed.

    Recommendation: The Secretary of State should direct FBO to develop and implement detailed written operating procedures to provide the necessary managerial framework for planning, awarding, administering, managing, and monitoring the design and construction of FBO construction projects.

    Agency Affected: Department of State

  2. Status: Closed - Implemented

    Comments: As of August 24, 1988, the Director, FBO, indicated that FBO had developed and implemented a systematic cost-estimating process setting forth the specific criteria to be used in developing, regularly updating, and documenting program cost estimates.

    Recommendation: The Secretary of State should direct FBO to develop and implement a systematic cost-estimating process setting forth the specific criteria to be used in developing estimates, the need for regular updating of cost factors, and the requirement for documenting program cost estimates and any changes to them.

    Agency Affected: Department of State

 

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