Inadequate Contract Administration on Housing Renovation Project at Malmstrom Air Force Base

GAO was requested to investigate the renovation work performed on a housing project at Malmstrom Air Force Base near Great Falls, Montana. The renovation was to provide more modern kitchens and bathrooms, larger dining areas, and improvements to the exterior privacy on about 490 housing units originally constructed in the early 1950's. Scheduled for completion in October 1978, the work is still not fully finished and many work discrepancies remain. As of November 1979, there were 41 contract modifications adding about $263,000 to the original contract price. Estimates to correct the remaining discrepancies and complete the project range from $1.2 million to $1.9 million or from 8 to 12 times the amount the Air Force retained to cover inadequate or complete contractor work. The contractor, Praxis Limited, claimed the Air Force still owed it about $1.9 million because of Air Force caused delays and work it performed outside the scope of the contract.