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HRD-81-96 1 (1981-05-29)

handle is hein.gao/gaobabbzc0001 and id is 1 raw text is: --t-~r~ UNITED STATES GENERAL ACCOUNTING OFFICE AV WASHINGTON, D.C. 20548 HUMAN RESOURCES DIVISION B-203316 MAY 29, 1981 The Honorable Jamie L. Whitten Chairman, Committee on Appropriations House of Representatives Dear Mr. Chairman: 115361 Subject: ronstruction of Indian Health Service Hospital in Chinle, Arizona (HRD-81-96) House Report No. 96-1147 dated July 2, 1980, required that we provide your Committee with a report on the reasons for a cost overrun on the new Indian Health Service (IHS) hospital project being built in Chinle, Arizona, and the policies and practices followed for designing and constructing IHS health facilities. As arranged with the staff of the Subcommittee on Interior and Related Agencies, we limited our review to an examination of the Chinle project so that information could be provided for the Committee's use during IHS' fiscal year 1982 appropriations hearings. On February 25, 1981, we briefed the Subcommittee staff on the results of our review. This report summarizes the information provided in that briefing. We believe that several factors have contributed to the con- fusion surrounding the Chinle cost estimates. The Public Health Service (PHS) and Office of Facilities Engineering (OFE) developed estimates that differed, because no uniform cost estimating system existed at the time the estimates were prepared and the two organ- izations estimated differently. Although a comparison of PHS' initial $14.6 million cost estimate with estimates prepared by OFE and the construction manager indicates a cost increase, such a comparison reveals little because the estimates were prepared at different times and were based on different cost components and methodologies. Since the Chinle project was first funded, the Department of Health and Human Services (HHS) has taken several steps to improve estimates of IHS health facility construction costs. (102061)

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