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

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.

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 Cannon House Office Building Renewal ($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.

We recommend the Architect of the Capitol (AOC) recover 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.