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GAO-07-414R 1 (2007-02-15)

handle is hein.gao/gaocrptauxb0001 and id is 1 raw text is: Sai Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 February 15, 2007 The Honorable Richard G. Lugar Ranking Minority Member Committee on Foreign Relations United States Senate Subject: UVdate on the United Nations' Capital Master Plan Dear Senator Lugar: Since 2000, the United Nations (UN) has been developing a Capital Master Plan (CMP) to renovate its headquarters complex in New York City to bring it into compliance with current life safety and building codes. The planned renovation will also enable the UN to address technology and security needs. Since 2001, we have reported on the UN's efforts to develop the CMP.' As we finalized our most recent report in November 2006, the UN Secretary-General released the latest progress report on the CMP and recommended that the UN General Assembly approve a scope, schedule, budget, and funding mechanism for the CMP. The Secretary-General's report also included an updated cost estimate of $1.88 billion for the project.2 This estimate for the CMP is about $128 million higher than the previous estimate, which was released in 2005. As the host country and largest contributor to the UN, the United States continues to have a significant interest in the success of the renovation. In this report, we (1) analyze the changes in the latest cost estimate and (2) describe the latest decisions the UN General Assembly made in regard to the CMP and the resulting cost to the United States to fund the project. To analyze the changes in the latest cost estimate, we reviewed pertinent UN documents, including the Secretary-General's third and fourth annual progress reports for the CMP.3 We also examined construction cost inflation projections from the Department of Defense, Global Insight, and Means Construction Cost Indexes to assess the inflation assumptions used in the 1GAO, United Nations: Planning for Headquarters Renovation Is Reasonable: United States Needs to Decide whether to Support Work, CGAO-01-788 (Washington, D.C.: June 15, 2001); United Nations: Early Renovation Planning Reasonable, but Additional Management Controls and Oversight Will Be Needed, iAO- 03-56(; (Washington, D.C.: May 30, 2003); United Nations: Weaknesses in Internal Oversight and Procurement Could Affect the Effective Implementation of the Planned Renovation, GAO-06-877T (Washington, D.C.: June 20, 2006); and United Nations: Renovation Planning Follows Industry Practices, but Procurement and Oversight Could Present Challenges, GAO- 07-3 1 (Washington, D.C.: Nov. 16, 2006). 2The Secretary-General reported the estimated total project cost for the CMP to be $1,876.7 million. For this report, we have rounded the estimate to $1.88 billion. 3United Nations Secretary-General, Third Annual Progress Report on the Implementation of the Capital Master Plan, A/60/550 (New York, 2005), and Fourth Annual Progress Report on the Implementation of the Capital Master Plan, A/61/549 (New York, 2006). GAO-07-414R UN Capital Master Plan

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