This is the accessible text file for GAO report number GAO-08-1172T entitled 'Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of September 24, 2008' which was released on September 24, 2008. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Testimony: Before the Subcommittee on the Legislative Branch, Committee on Appropriations, House of Representatives: United States Government Accountability Office: GAO: For Release on Delivery: Expected at 11 a.m. EDT: September 24, 2008: Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of September 24, 2008: Statement of Terrell G. Dorn, Director: Physical Infrastructure Issues: GAO-08-1172T: Madam Chair and Members of the Subcommittee: I appreciate the opportunity to be here today to assist the Subcommittee in monitoring progress on the Capitol Visitor Center (CVC) project. My remarks will focus on (1) the Architect of the Capitol's (AOC) construction progress since the last CVC hearing on July 8, 2008, [Footnote 1] and (2) the project's expected cost at completion and funding status. Today's remarks are based on our review of schedules and financial reports for the CVC project and related records maintained by AOC and its construction management contractor, Gilbane Building Company; our observations on the progress of work at the CVC construction site; and our discussions with the CVC team (AOC and its major CVC contractors) and AOC's Chief Fire Marshal. We also reviewed AOC's construction management contractor's periodic schedule assessments. Construction Is Essentially Complete: Since the July 8, 2008, CVC hearing, the project has passed a significant milestone--the fire marshal's issuance of a temporary certificate of occupancy--and although issues in certain CVC and expansion space work remain, AOC expects to have the project ready for opening on December 2, 2008, as scheduled. According to AOC's construction management contractor, in dollar terms, the overall CVC project remains 99 percent complete.[Footnote 2] Some risks to the project's schedule remain in completing work needed to start up and open the building as planned. In addition, many punch list[Footnote 3] items remain to be completed, and a number of proposed change orders have to be resolved. At this time, AOC does not expect the punch list items or the proposed change orders to affect the project's opening date. Since the last hearing, the fire marshal has substantially completed fire alarm acceptance testing.[Footnote 4] While the fire marshal has issued a temporary certificate of occupancy, incomplete work in several areas still has the potential to limit preparations for the project's planned opening or make portions of the facility unusable at the opening. For example, repairs to exit stairs are taking longer than planned and, if not completed in October, we believe could delay preparations for the opening. AOC has also requested several changes to the restaurant to accommodate the food service vendor, and although the restaurant is expected to be operational, certain sections of its serving line are likely to be incomplete when the CVC opens. In addition, some repairs to plaza pavers and landscaping work may not be complete by the planned opening. The CVC team has continued to gradually reduce the number of punch list items, which we have identified as a concern at the last several hearings. According to AOC, the number of punch list items has been reduced from over 15,000 to under 3,000. In addition, the planned repairs to the plaza pavers that we discussed at the last hearing have begun and are ongoing. Although it is still not clear who will ultimately be financially responsible for the repairs, we do not anticipate a need for additional appropriations to address this issue. Each month, the CVC team continues to identify proposed change orders. AOC and its contractors have continued to work together to reduce the number of open (outstanding) proposed change orders, and the number of open orders has declined since our last statement. Sustained attention to this issue is, however, needed to reduce uncertainty about the project's costs. Figure 1 compares the number of outstanding proposed change orders with the number settled each month. Figure 1: Outstanding and Settled Proposed Change Orders by Month, March 2006 through August 2008: [See PDF for image] This figure is a combination line graph showing outstanding and settled proposed change orders my month, March 2006 through August 2008. Date: March 31, 2006; Outstanding PCOs: 336; PCOs settled this month: 27. Date: April 30, 2006; Outstanding PCOs: 360; PCOs settled this month: 32. Date: May 31, 2006; Outstanding PCOs: 372; PCOs settled this month: 24. Date: June 30, 2006; Outstanding PCOs: 340; PCOs settled this month: 23. Date: July 31, 2006; Outstanding PCOs: 403; PCOs settled this month: 26. Date: August 31, 2006; Outstanding PCOs: 367; PCOs settled this month: 19. Date: September 30, 2006; Outstanding PCOs: 369; PCOs settled this month: 19. Date: October 31, 2006; Outstanding PCOs: 374; PCOs settled this month: 26. Date: November 30, 2006; Outstanding PCOs: 391; PCOs settled this month: 23. Date: December 31, 2006; Outstanding PCOs: 417; PCOs settled this month: 10. Date: January 31, 2007; Outstanding PCOs: 445; PCOs settled this month: 29. Date: February 28, 2007; Outstanding PCOs: 456; PCOs settled this month: 16. Date: March 31, 2007; Outstanding PCOs: 421; PCOs settled this month: 28. Date: April 30, 2007; Outstanding PCOs: 444; PCOs settled this month: 28. Date: May 31, 2007; Outstanding PCOs: 451; PCOs settled this month: 49. Date: June 30, 2007; Outstanding PCOs: 443; PCOs settled this month: 35. Date: July 31, 2007; Outstanding PCOs: 437; PCOs settled this month: 21. Date: August 31, 2007; Outstanding PCOs: 432; PCOs settled this month: 54. Date: September 30, 2007; Outstanding PCOs: 432; PCOs settled this month: 33. Date: October 31, 2007; Outstanding PCOs: 451; PCOs settled this month: 39. Date: November 30, 2007; Outstanding PCOs: 425; PCOs settled this month: 18. Date: December 31, 2007; Outstanding PCOs: 425; PCOs settled this month: 21. Date: January 31, 2008; Outstanding PCOs: 398; PCOs settled this month: 30. Date: February 29, 2008; Outstanding PCOs: 413; PCOs settled this month: 42. Date: March 31, 2008; Outstanding PCOs: 385; PCOs settled this month: 41. Date: April 30, 2008; Outstanding PCOs: 333; PCOs settled this month: 37. Date: May 31, 2008; Outstanding PCOs: 359; PCOs settled this month: 26. Date: June 30, 2008; Outstanding PCOs: 382; PCOs settled this month: 28. Date: July 31, 2008; Outstanding PCOs: 349; PCOs settled this month: 25. Date: August 31, 2008; Outstanding PCOs: 336; PCOs settled this month: 14. Source: AOC's construction management contractor. [End of figure] AOC's Cost Estimate Remains the Same, and Additional Funds Will Be Needed in 2009: AOC's current estimate of the cost to complete the CVC project's construction, first reported in September 2007,[Footnote 5] remains about $621 million. We believe this estimate is realistic and contains a sufficient allowance for contingencies, provided there are no unexpected delays. To date, about $583.3 million has been approved for CVC construction, and of the amounts approved for operations, AOC includes $1.1 million (net of certain construction items) in its total estimated cost to complete. In addition, AOC has $2.4 million more in fiscal year 2008 CVC appropriations that it plans to use for construction after it obtains congressional approval to obligate these funds.[Footnote 6] Furthermore, AOC has requested $31.1 million in fiscal year 2009 funds for CVC construction; however, in its current cost-to-complete estimate, AOC indicates it may need an additional $3 million in fiscal year 2009 funds to finish the project. According to AOC, if necessary, the additional $3 million could be reprogrammed. Madam Chair, this completes my prepared statement. I would be pleased to answer any questions that you or Members of the Subcommittee may have. Contacts and Acknowledgments: For further information about this testimony, please contact Terrell Dorn on (202) 512-6923 or dornt@gao.gov. Other key contributors to this testimony include Shirley Abel, Michael Armes, Lindsay Bach, Maria Edelstein, Elizabeth Eisenstadt, Jeanette Franzel, Jackie Hamilton, Kara Patton, and Joshua Ormond. [End of section] Footnotes: [1] GAO, Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of June 27, 2008, [hyperlink, http://www.gao.gov/cgi- bin/getrpt?GAO-08-900T] (Washington, D.C.: July 8, 2008). [2] In other words, the sequence 2 contractor has received about 99 percent of the current contract value. This value does not include the costs of unsettled proposed change orders, potential claims, and work performed outside the current sequence 2 contract, such as the fire marshal's fire alarm acceptance testing. [3] A punch list identifies tasks, usually minor, to be completed at the end of a project. [4] All regularly scheduled testing has been completed. However, portions of the system will be retested in the coming weeks to verify the effectiveness of changes made following the initial system tests. [5] GAO, Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of September 25, 2007, [hyperlink, http://www.gao.gov/cgi- bin/getrpt?GAO-07-1249T] (Washington, D.C.: Sept. 25, 2007). [6] For fiscal year 2008, AOC received $28,753,000 (before rescission) in appropriations for the CVC project. Pub. L. No. 110-161. Of that amount, AOC is allowed, but not required, to use up to $8.5 million for operations. AOC is currently planning to use the $8.5 million for operations. 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