Architect of the Capitol: Efforts Have Begun to Update Cannon House Business Building’s Renovation Charge and Schedule Estimates

What GAO Located

The Architect of the Capitol (AOC) has considerably finished a few of five prepared phases to renovate the Cannon Property Place of work Building (Cannon task). AOC completed Stage utility work the Phase 1 do the job to renovate the building’s west aspect, the Period 2 get the job done to renovate the building’s north aspect and operate is underway on Period 3 of the building’s east aspect.

Cannon Household Workplace Constructing, Washington, D. C.

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From 2009 to 2018, AOC regularly approximated the task value at $753 million, In 2014, GAO discovered that AOC’s expense estimate of $753 million reflected numerous of GAO’s foremost practices for higher-quality, reputable value estimates, like that AOC experienced done a possibility and uncertainty assessment. GAO identified that AOC’s expense estimating guidelines and guidance did not require a quantitative danger and uncertainty assessment nor the reporting of the resulting confidence level of the estimate. GAO designed recommendations for AOC to integrate primary tactics into agency assistance and submit self esteem stages of cost estimates to Congress. AOC applied our recommendations. In January 2018, AOC up-to-date its investigation of dangers by endeavor an integrated expense-routine possibility examination. AOC’s 2018 analysis arrived at the exact same summary as its before analysis—that the project’s approximated $753 million whole value was adequate to complete the job. Having said that, AOC’s 2018 evaluation indicated that inaccurate estimates of prices for chance mitigations, not known dangers, and optimistic assumptions about the result of risk mitigations on the project’s price and timetable could have an impact on its complete charge. AOC up-to-date the evaluation in December 2019 and believed the task charge at $890 million.

Two not known threats materialized following the December 2019 estimate: the impact of COVID-19 and the January 2021 stability events–their effect on the challenge is uncertain. In its March 2021 challenge summary, AOC documented that a revised finances would be formulated just after the completion of an examination in December 2021. Towards this finish, in Might 2021, AOC started updating its built-in cost-program hazard assessment, with the purpose of extra properly figuring out the extent to which the project’s charges are escalating and its believed price tag at completion.

Why GAO Did This Analyze

In its Cannon task, the AOC intends to preserve the historic character whilst improving upon the features of the 113 12 months-previous Cannon Building—the oldest congressional business building—as perfectly as deal with deterioration to the developing and its components. The project—nearing calendar year 7 of its planned 10-yr duration—is being executed in five sequential phases with an preliminary period (Phase ) for utility do the job and 4 subsequent phases (Phases 1 via 4) to renovate the north-, south-, east-, and west-struggling with sides of the creating. Just about every stage is scheduled close to a 2-yr congressional session.

This assertion describes: (1) the position of the Cannon task and (2) modifications to the project’s estimated charge at completion. This assertion is dependent on GAO’s prior reports in 2009 and 2014 and ongoing checking of the task. To observe the project, GAO has been observing the ongoing design, attending undertaking conferences, and analyzing AOC paperwork.

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