2.) Facility Conditions Have Generally Had Limited Effects on Access and Collections, but Some Chronic Problems Present Ongoing Risks

Facilities-related problems at the Smithsonian have resulted in a few  building closures and access restrictions and, in some cases, harm to the  collections. In addition to structural deterioration, problems with asbestos have  restricted researchers’ access to certain collections. To date, no major damage to the  collections has occurred. Poor ventilation at the Smithsonian Institution Archives caused high  humidity, resulting in mold damage that made some records unreadable. The Smithsonian is working to address these situations. Smithsonian Has Centralized Its Facilities Management Organization and Budget to Improve the Efficiency and Effectiveness of Its Operations

The Smithsonian has recently reorganized its facilities management  function to improve its operational effectiveness and make more efficient  use of limited staffing and funding resources. Many of the directors, as well as OFEO officials, noted that  reductions in OFEO’s staffing and budget have hindered fully implementing  the reorganization. According to NAPA, this  centralization would promote uniform policies and procedures, improve  accountability, and avoid overlap and duplication. OFEO assumed responsibility for all facility- related programs and budgets that had been divided among four offices the  National Zoo, and each museum or other major facility. Estimated Costs of Facilities Projects Have Grown, Posing Serious Funding Challenge

The Smithsonian currently estimates that it will need about $2.3 billion for  fiscal years 2005 through 2013 for its planned revitalization, construction,  and maintenance projects, but this estimate could change as information is  updated and new facilities are opened or authorized. As of April 2005, of  the 13 funded major revitalization and construction projects that are active  or were completed in fiscal year 2004, most were on time and within  budget. Of  this total amount, about $184.4 million was designated for facilities  revitalization, construction and maintenance. In our High Risk Series report on federal real property, we  highlighted the importance of ensuring credible, long-term budget planning  for sustaining and modernizing facilities. Such planning involves key  stakeholders in government—the property-holding agency, the Office of  Management and Budget, and the Congress—in examining viable funding  options. Officials told us that various funding approaches and  options have been discussed by the staff, the Board of Regents, and with  congressional leaders but said that no consensus for dealing with this issue  has emerged. The  reorganization appears to be going in the right direction, though it is still in  an early stage of implementation and its long-term effectiveness has yet to  be determined. Still, the estimated $2.3 billion in costs for facilities  needs over the next 9 years is beyond the current level of the Smithsonian’s  annual operating revenues from its trust funds and federal appropriations. 1.3. Office of Facilities Engineering and Operations  established. Scope and Methodology

To determine how the condition of the Smithsonian’s facilities affects  public and scientific access to the collections, and the collections  themselves, we toured 11 facilities—the Arts and Industries Building, the  Smithsonian Administration Building, the Garber Center, the Cultural  Resource Center, the National Air and Space Museum, the National  Museums of American History and Natural History, National Zoological  Park, the Renwick Gallery, the Smithsonian Environmental Research  Center, and the Victor Building. To determine how the Smithsonian has changed its facilities management  and prioritizes its revitalization, construction, and minor repair and  maintenance programs, we reviewed a variety of documents including the  National Academy of Public Administration’s (NAPA) 2001 report on the  Smithsonian, the facility organizational chart, Facilities Project  Management Handbook, drafts of the Operation and Maintenance  Handbook, Construction Procedural Guidelines, and Cost Management  Guide (for estimating costs), Facility Revitalization and Construction  Project Code Assignment Matrix, the Flow Chart of the Prioritization  Decision-Making Process for Minor Repairs and Maintenance, minutes of  the Capital Planning Board meetings and the Smithsonian Regents  meetings for 2002 through 2004, the National Research Council’s  Committing to the Cost of Ownership: Maintenance and Repair of  Buildings, Federal Facilities Council’s Budgeting for Facilites  Maintenance and Repair Activities and the Construction Industry  Institute Best Practices Guide. To determine the cost and status of the Smithsonian’s major (more than $5  million) construction and revitalization projects and minor repair and  maintenance projects, we toured 11 facilities (as previously identified) to  view the Smithsonian’s facility problems; we reviewed the NAPA report,  three Smithsonian Inspector General reports on the construction of the  National Museum of the American Indian, the Patent Office Building, and  the Steven F. Udvar-Hazy Center, the 2006 to 2010 Facility Capital Program  Summary, minutes of the Capital Planning Board meetings and the  Smithsonian Board of Regents meetings for 2002 through 2004, individual  project operational reports, monthly executive reports, contractor progress  reports, facility assessments, and other appropriate reports; and  interviewed the OFEO director, the directors of all OFEO offices, and  project executives and project managers responsible for oversight of  projects.
Why GAO Did This Study

The Smithsonian is the world's largest museum complex and research organization, with 18 museums and galleries, 10 science centers, and a zoological park. The age of the structures, past inattention to maintenance needs, and high visitation have left its facilities in need of revitalization and repair. Currently, the Smithsonian estimates $2.3 billion in costs for revitalization, construction, and maintenance projects between 2005 and 2013. This report addresses (1) how the current condition of the Smithsonian's facilities has affected access to the collections, and the collections themselves; (2) what changes the Smithsonian has made to its organization, practices, and prioritization processes to improve its facilities management; and (3) the estimated costs and status of the Smithsonian's facilities projects and their funding sources.

What GAO Found

To date, facilities-related problems at the Smithsonian have resulted in a few building closures and access restrictions and some cases of damage to the collections. For example, structural deterioration has caused closure of the 1881 Arts and Industries Building on the National Mall pending major repair and revitalization, as well as some facilities at the National Zoo. Concern over asbestos in a number of storage buildings has led to restricted access to the items within them. Some artifacts, such as two historic aircraft, have been damaged by water leaks from deteriorated pipes and roofing elements. Stopgap measures, such as draping plastic sheeting over artifacts in areas experiencing leaks, have prevented or minimized damage in other cases. Maintaining desired humidity and temperature levels for conserving the collections is a pervasive problem in some older Smithsonian facilities. These problems are indicative of a broad decline in the Smithsonian's aging facilities and systems that pose a serious long-term threat to the collections. The Smithsonian recently centralized its facilities organization, adopted industry best practices to maximize the effectiveness of its resources, reviewed its operating procedures, standardized its cost-estimating practices, and established processes for prioritizing work and allocating funds. These changes resulted from an internal review and a 2001 report by the National Academy of Public Administration, which recommended that the Smithsonian centralize its then highly decentralized approach to facilities management and budgeting in order to promote uniform policies and procedures, improve accountability, and avoid duplication. The Smithsonian created the Office of Facilities Engineering and Operations (OFEO) in 2003 to assume responsibility for all facilities-related programs and budgets--formerly divided among four administrative offices and the individual museums and centers. Most of the museum and center directors were either positive or neutral about the effectiveness of the reorganization so far. Overall, the reorganization appears to be moving in the right direction, though it has been hindered by reductions in OFEO's staffing and budget. The Smithsonian currently estimates that its planned capital and maintenance projects for 2005 through 2013 will cost about $2.3 billion, though this could grow because it is largely based on preliminary assessments. Of 13 revitalization and construction projects active during our review, most were on time and within budget. The Smithsonian's annual operating and capital program revenues come from its own trust fund assets and its federal appropriation (totaling $904.0 million in fiscal year 2004, with $184.4 million for facilities). Funding at this level would not be sufficient to cover the facilities projects planned for the next 9 years. Ensuring credible, long-term budget planning for sustaining and modernizing facilities involves the Smithsonian, the Office of Management and Budget, and the Congress in examining viable funding options. While Smithsonian officials have discussed funding options internally and with various stakeholders, no consensus has emerged on how to deal with this funding challenge.