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LCD-79-313 1 (1979-05-16)

handle is hein.gao/gaobaazha0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS DIVISION RESTRICTED - Pat to be released outside the General Accoou ng CC77 on the basis of specific approval by the Off-ice of Congressional Helationa .- MAY 16, 1979 3-95136 The Honorable Wyche Fowler, Jr. House of Representatives Dear Mr. Fowler: 109500 As requested in your November 21, 1978, letter, we have reviewed the construction of the Richard B. Russell Federal Building in Atlanta, Georgia. You expressed concern about the costs and the delay in completing the building and requested us to investigate the causes of a cost overrun and thie legitimacy of the claims filed by the construction con- tractor, the Frank Briscoe Company, Inc. (// 0? R02 2.?/ In April 1979, when we completed our review, the General Services Administration estimated the total cost of the Russell Building project, excluding claims, at about $62 million or about $15 million less than the amount authorized by the Congress for the project. Claim awards could signifi- cantly increase the total cost. As discussed with your office, this report does not contain any conclusions or recommendations concerning the validity of the claims because this is an issue pending before the General Services Board of Contract Appeals. The results of our review are contained in the enclo- sure. In summary, we found that: --Most of Briscoe's claims are related to change orders. At the time we completed our review, the General Services Administration had issued 167 change orders on the Briscoe contract. The change orders increased the Briscoe contract by a net amount of $32,387. Other contracts to perform work deleted from the Briscoe contract and additional work requirements increased the construction cost by another $3.15 million. Thus, the total inlpase in construction- cost for change o-r-de-tsaid o'ther contracts amounts-'to $3.18million. Most of the change order amounts were deterfinied uniaterally !Yy General Services and have been-protested by the contractor, giving rise to cla-ms. About 20 additional change orders are being considered by General Services. LCD-79-313 (9 45164) ~1 ~ MUMO

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