Review of the Architect of the Capitol’s (AOC’s) Multimillion-Dollar Construction Project Change Orders

Submitting OIG:

Architect of the Capitol OIG

Date Issued:

Thursday, March 30, 2023

Agency Reviewed / Investigated:

Architect of the Capitol

Submitting OIG-Specific Report Number:

OIG-AUD-2023-04

Location(s):

Washington, DC

United States

Type of Report:

Audit

Questioned Costs:

$722,083

Funds for Better Use:

$19,675

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
Change-Order-MemoFinal-Revised-Final.pdf	3.3 MB

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
We recommend the Architect of the Capitol (AOC) perform the following: a. Recover the questioned costs of $6,464 identified within the R-Tunnel Project to the extent legally and administratively possible. b. Review the questioned costs of $68,940 ($75,404 - $6,464) identified within the CHOBr ($53,663) and R-Tunnel ($15,277) projects to determine if the costs are allowable in accordance with contract requirements; and as applicable, recover any additional amounts resulting from the application of items like overhead and profits to the unallowable costs. c. Ensure future change orders adhere to the contractual language regarding overhead costs not being allowed as direct costs; and when the AOC determines that overhead costs are allowable as direct costs, document how and why that determination was made.
2	Open	No
We recommend the Architect of the Capitol (AOC) perform the following: a. Review the questioned costs of $167,628 once the AOC determines whether Clark/Christian, A Joint Venture (CCJV) met the incentive fee requirements; if CCJV does not meet the incentive fee requirements and the 100 percent unspent project contingency funds are not awarded, the AOC should recover to the extent legally and administratively possible the AOC’s proportional share of the of the questioned costs. b. Ensure project funds are not used to pay for damages caused by the contractor, even if those funds may be earned by the contractor at a later date.
3	Open	No
We recommend the Architect of the Capitol perform the following: a. Review the questioned costs of $6,958 identified within the Cannon House Office Building Renewal Project for potential improper overhead and profit markups by the first-tier subcontractor for a second-tier subcontractor’s work. b. Review and modify the contract language to specify the allowable markups on change orders aligns with the memorandum dated June 26, 2017.
4	Open	No
We recommend the Architect of the Capitol perform the following: a. Recover the questioned costs of $2,716 identified within the R-Tunnel Project to the extent legally and administratively possible. b. Review the insufficient supported questioned costs of $478,557 ($481,273 - $2,716) identified within the Cannon House Office Building Renewal ($367,315) and R-Tunnel ($111,242) projects to determine if the costs are supported and allowable; for any of the costs deemed unsupported and/or unallowable, recover the costs to the extent legally and administratively possible; as applicable, recover any additional amounts resulting from the application of items such as overhead and profits to the unallowable costs.
5	Open	No
We recommend the Architect of the Capitol recover the unsupported questioned costs of $6,944 identified within the Cannon House Office Building Renewal ($226) and R-Tunnel ($6,718) projects to the extent legally and administratively possible.
6	Open	No
We recommend the Architect of the Capitol work with the contractor to ensure proposals submitted for change orders are factually sound, contain the required cost detail and exclude unallowable costs.
7	Open	No
We recommend the Architect of the Capitol (AOC) comply with the sequence of review and approval for its change orders as prescribed by its policies and procedures and ensure sufficient documentation is maintained. If the AOC deviates from its policies and procedures, the AOC should fully document the reason for the deviation.
8	Open	No
We recommend the Architect of the Capitol recovers or not award the questioned costs of $3,551 identified within the Exterior Stone & Metal Preservation, Phase III project to the extent legally and administratively possible and ensure the contractor excludes subcontractor profit prior to applying contractual markups.

Architect of the Capitol OIG

Architect of the Capitol

Vision

The Architect of the Capitol's (AOC) Office of Inspector General (OIG), promotes efficiency and effectiveness to deter and prevent fraud, waste, and abuse in AOC operations and programs. We do this through value-added, transparent, and independent audits, inspections and evaluations, and investigations. The OIG is a high-performing team, promoting positive change and striving for continuous improvement in AOC management and operations. We foster an environment that inspires AOC workforce trust and confidence in our work.

Mission

The OIG promotes efficiency and effectiveness to deter and prevent fraud, waste and mismanagement in AOC operations and programs. We do this through value-added, transparent and independent audits, evaluations and investigations. We strive to positively affect the AOC and benefit the taxpayer while keeping the AOC and Congress fully informed.

The AOC Inspector General (IG) Act of 2007, codified at 2 U.S.C. § 1808, established the OIG. This legislation applies some sections of the IG Act of 1978 as amended, specifically Sections 4, 5 (other than Subsections (a)(13) and (3) and (e)(1)(B) thereof), 6 (other than Subsection (a)(7) and (8) thereof), and 7. The IG is under the general supervision of the Architect of the Capitol. The mission of this independent office is to:

1. Conduct, supervise, and coordinate audits, inspection and evaluations, and investigations relating to AOC programs and operations.

2. Review existing and proposed legislation and regulations that impact AOC programs and operations and comment in the semiannual report regarding the impact on the economy, efficiency, or the prevention and detection of fraud and abuse of such legislation and regulations.

3. Recommend policies for AOC activities to promote economy and efficiency or prevent and detect fraud and abuse in its programs and operations.

4. Provide a means of keeping the Architect of the Capitol and the Congress fully and currently informed about problems and deficiencies relating to the administration of Agency programs and operations and the need for and progress of corrective action. This is generally done by issuing the Semiannual Report to Congress.

“Legislative Branch agencies including the Architect of the Capitol are not subject to the Whistleblower Protection Act or the Whistleblower Protection Enhancement Act; however, AOC employees are covered under the Congressional Accountability Act of 1995, as amended.”

The AOC OIG is a member of the Council of Inspectors General for Integrity and Efficiency.

https://aocoig.oversight.gov/

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Review of the Architect of the Capitol’s (AOC’s) Multimillion-Dollar Construction Project Change Orders

Related Open Recommendations