Architect of the Capitol: Attempts Have Begun to Update Cannon Property Business office Building’s Renovation Cost and Timetable Estimates

What GAO Located

The Architect of the Capitol (AOC) has considerably done three of five prepared phases to renovate the Cannon Household Place of work Developing (Cannon job). AOC completed Stage utility operate the Period 1 get the job done to renovate the building’s west aspect, the Period 2 function to renovate the building’s north aspect and get the job done is underway on Period 3 of the building’s east aspect.

Cannon Household Business Creating, Washington, D. C.

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From 2009 to 2018, AOC constantly believed the project cost at $753 million, In 2014, GAO uncovered that AOC’s price estimate of $753 million reflected numerous of GAO’s main procedures for significant-high quality, trusted price tag estimates, together with that AOC had carried out a possibility and uncertainty examination. GAO discovered that AOC’s cost estimating procedures and assistance did not need a quantitative hazard and uncertainty examination nor the reporting of the resulting assurance amount of the estimate. GAO designed recommendations for AOC to integrate primary techniques into agency steerage and submit confidence degrees of price tag estimates to Congress. AOC executed our tips. In January 2018, AOC up-to-date its assessment of dangers by enterprise an integrated charge-program chance investigation. AOC’s 2018 assessment arrived at the identical summary as its earlier analysis—that the project’s believed $753 million whole charge was enough to finish the task. Nonetheless, AOC’s 2018 evaluation indicated that inaccurate estimates of expenditures for danger mitigations, unidentified dangers, and optimistic assumptions about the influence of possibility mitigations on the project’s cost and schedule could have an affect on its overall cost. AOC up-to-date the evaluation in December 2019 and approximated the task price tag at $890 million.

Two unknown pitfalls materialized immediately after the December 2019 estimate: the effect of COVID-19 and the January 2021 security events–their impact on the project is unsure. In its March 2021 task summary, AOC described that a revised spending budget would be formulated immediately after the completion of an analysis in December 2021. Towards this conclusion, in May possibly 2021, AOC began updating its built-in price tag-plan possibility examination, with the intention of much more correctly figuring out the extent to which the project’s charges are increasing and its approximated value at completion.

Why GAO Did This Research

In its Cannon project, the AOC intends to preserve the historic character though improving upon the features of the 113 calendar year-previous Cannon Building—the oldest congressional business building—as perfectly as handle deterioration to the building and its factors. The project—nearing calendar year 7 of its prepared 10-yr duration—is being applied in 5 sequential phases with an initial stage (Period ) for utility get the job done and 4 subsequent phases (Phases 1 via 4) to renovate the north-, south-, east-, and west-experiencing sides of the developing. Each and every stage is scheduled all-around a 2-yr congressional session.

This assertion describes: (1) the position of the Cannon job and (2) alterations to the project’s approximated price tag at completion. This statement is centered on GAO’s prior experiences in 2009 and 2014 and ongoing monitoring of the project. To watch the project, GAO has been observing the ongoing construction, attending venture conferences, and examining AOC files.

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