OIG recommends that the Bureau of Overseas Buildings Operations (OBO), in coordination with the Bureau of Administration, comply with Department of State guidance to address the schedule delay for New Embassy Compound Mexico City, Mexico. Specifically, OBO, in coordination with the Bureau of Administration, must (1) determine the type of delay (excusable, nonexcusable, or compensable), (2) document the delay, (3) develop the government’s position, (4) discuss the government’s position with the contractor, (5) adjust the government’s position based on the discussions with the contractor, and (6) prepare a final decision.