Management Assistance Report: Actions To Address Ongoing Construction Schedule Delays at New Embassy Compound Mexico City Are Needed

Submitting OIG:

Department of State OIG

Date Issued:

Monday, April 17, 2023

Agency Reviewed / Investigated:

Department of State

Submitting OIG-Specific Report Number:

AUD-CGI-23-16

Component, if applicable:

Bureau of Overseas Buildings Operations

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
AUD-CGI-23-16.pdf	2.03 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	Yes
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.
2	Open	No
OIG recommends that the Bureau of Overseas Buildings Operations, working collaboratively with Caddell Construction Co, LLC, develop and implement an action plan to ensure the Project Execution Schedule meets all the purposes outlined in Contract Specification 013205, paragraph 1.4 for Contract SAQMMA17C0287, NEC Mexico City, Mexico.
3	Open	Yes
OIG recommends that the Bureau of Overseas Buildings Operations (OBO), in coordination with the Bureau of Administration, evaluate and respond to the Time Impact Analysis (TIA) prepared by the contractor to determine whether a schedule extension was justified for the unilateral modification P00066 to the New Embassy Compound Mexico City, Mexico. In accordance with the Federal Acquisition Regulation and Department of State policy, OBO, in collaboration with the Bureau of Administration, must (1) prepare a prenegotiation memorandum and a findings of fact that include a TIA, (2) issue a decision on the prenegotiation memorandum, (3) proceed with negotiations, including discussion of the TIA, with the goal of a fair and reasonable settlement for the change, and (4) report the results of the negotiations to the Contracting Officer, including recommendations for a fair and reasonable settlement that include any schedule extensions for the change.
4	Open	Yes
OIG recommends that the Bureau of Overseas Buildings Operations (OBO), in coordination with the Bureau of Administration, assess time as part of their independent government cost estimate process and evaluate and respond to the Time Impact Analysis (TIA) prepared by the contractor for all outstanding requests for proposals to the New Embassy Compound Mexico City, Mexico, project when preparing an independent government cost estimate. In accordance with the Federal Acquisition Regulation and Department of State policy, OBO, in collaboration with the Bureau of Administration, must (1) prepare a prenegotiation memorandum and a findings of fact that include TIAs, (2) issue a decision on the prenegotiation memorandum, (3) proceed with negotiations, including discussion of the TIAs, with the goal of a fair and reasonable settlement for the change, and (4) report the results of the negotiations to the Contracting Officer, including recommendations for a fair and reasonable settlement that include any schedule extensions for the change.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

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.

Open

OIG recommends that the Bureau of Overseas Buildings Operations, working collaboratively with Caddell Construction Co, LLC, develop and implement an action plan to ensure the Project Execution Schedule meets all the purposes outlined in Contract Specification 013205, paragraph 1.4 for Contract SAQMMA17C0287, NEC Mexico City, Mexico.

Open

Yes

OIG recommends that the Bureau of Overseas Buildings Operations (OBO), in coordination with the Bureau of Administration, evaluate and respond to the Time Impact Analysis (TIA) prepared by the contractor to determine whether a schedule extension was justified for the unilateral modification P00066 to the New Embassy Compound Mexico City, Mexico. In accordance with the Federal Acquisition Regulation and Department of State policy, OBO, in collaboration with the Bureau of Administration, must (1) prepare a prenegotiation memorandum and a findings of fact that include a TIA, (2) issue a decision on the prenegotiation memorandum, (3) proceed with negotiations, including discussion of the TIA, with the goal of a fair and reasonable settlement for the change, and (4) report the results of the negotiations to the Contracting Officer, including recommendations for a fair and reasonable settlement that include any schedule extensions for the change.