Semiannual 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, September 21, 2023

Agency Reviewed / Investigated:

Architect of the Capitol

Submitting OIG-Specific Report Number:

OIG-AUD-2023-07

Location(s):

Washington, DC

United States

Type of Report:

Audit

Questioned Costs:

$88,025

Funds for Better Use:

$17,199

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
Semiannual-Change-Order-Final-Report-Memofinal.pdf	987.78 KB

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
We recommend the Architect of the Capitol review its potential change order (PCO) notification criteria and implement the following: • Ensure that any diagrams or flowcharts referencing the criteria for PCO notification forms are consistent with the criteria outlined in the Planning and Project Management Memorandum (PPM Memo). • Ensure the criteria in any PCO notification form templates are consistent with the criteria outlined in the PPM Memo.
2	Open	No
We recommend the Architect of the Capitol (AOC) evaluate the $2,320 in questioned costs related to improper application of markups for the following projects: • Russell Stone Exterior Envelope Repair and Restoration $2,105 - contractor’s improper application of overhead and profit markups to first-tier subcontractor work. • Thurgood Marshall Federal Judiciary Building Administrative Office Space Realignments $215 - 1st tier subcontractor’s improper application of markups on a 2nd tier subcontractor. The AOC should recover any erroneously awarded costs to the extent legally and administratively possible.
3	Open	No
We recommend the Architect of the Capitol (AOC) evaluate the $288 in questioned costs for duplicative overhead costs awarded as direct costs for the Russell Stone Exterior Envelope Repair and Restoration. The AOC should recover any erroneously awarded costs to the extent legally and administratively possible.
4	Open	No
We recommend the Architect of the Capitol review the insufficiently supported questioned costs identified within the Russell Stone Exterior Envelope Repair and Restoration ($66,449) and the Thurgood Marshall Federal Judiciary Building Administrative Office Space Realignments ($18,968) 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 ensure that it uses the contractual markups when preparing Independent Government Estimates to ensure that the resulting price is consistent with the costs allowed under the contract and avoids overpayment (Funds Put to Better Use $17,199).

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/

Search form

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

Related Open Recommendations