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GAO-08-382R 1 (2008-01-31)

handle is hein.gao/gaocrptawih0001 and id is 1 raw text is: Sai Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 January 31, 2008 Congressional Addressees Subject: Feasibility of Outsourcing the Management and Operation of the Capitol Power Plant The Capitol Power Plant (CPP), managed by the Architect of the Capitol (AOC), provides heating and cooling for the U.S. Capitol and surrounding facilities. This plant, which provides steam and chilled water year-round for about 16 million square feet of space in 24 facilities,' consists of 4 main components-the steam plant, the East Refrigeration Plant, the West Refrigeration Plant, and the administration building. In 2003, CPP awarded a construction contract that involved a major effort both to expand the capacity of the plant to meet the growing heating and cooling needs of the U.S. Capitol and to update plant equipment. The centerpiece of this expansion effort is the West Refrigeration Plant Expansion project, a $100.9 million project scheduled for completion in March 2008. For more than a decade, potential overstaffing at CPP has been a principal concern. In 1996, an AOC engineering consultant for CPP asserted that CPP was overstaffed and recommended reducing staff as a way to deliver CPP services more cost- effectively. In 2004, in response to a congressional mandate to assess CPP operations and infrastructure, we recommended that AOC update the consultant's 1996 study and examine the advantages and disadvantages of outsourcing CPP operations. Such assessments have been occurring in the federal government for some time. This approach became an emphasis for the federal government in 2001 and is seen as a way for federal agencies to improve their operational efficiency and performance by determining whether services should continue to be provided in-house or be outsourced.2 'CPP provides chilled water to 19 of the 24 facilities and steam to all 24 facilities. Five of the buildings are not part of the Capitol Hill Complex; however, they are served by CPP and are billed for services provided. CPP will also serve the 580,000-square-foot Capitol Visitor Center upon completion. 2For most of the federal government, the process for determining whether commercial activities should be performed by the public or private sector is set forth in the Office of Management and Budget's Circular No. A-76. The circular is only applicable to executive branch agencies and not to AOC or CPP. However, according to an AOC official, if AOC were to look at guidelines for making future sourcing decisions, it would attempt to follow the spirit of the A-76 process. GAO-08-382R Architect of the Capitol

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