The Kennedy Center  receives annual appropriations to fund operations and maintenance as well  as construction. Garage Expansion and Site Improvement Project Estimates

As of July 2003, Kennedy Center officials estimated the cost of the garage  expansion and site improvement project at $88 million. The garage expansion is to include 525 new parking  spaces. Kennedy Center officials  estimated that the site improvements will be completed in the summer of  2004. The July 2003 estimates of the project’s costs, time frames, and scope vary  substantially from estimates that the Kennedy Center provided to Congress  in 1997 and 1998. At that time, Kennedy Center officials estimated that the  garage expansion would cost $25 million and would include 900 to 1,000  parking spaces, and that the site improvements would cost $3 million and  include construction of a new front-entry driveway. Kennedy Center  officials estimated that the project would be completed by August 2000. Kennedy Center  officials acknowledged that they should have better informed Congress of  the preliminary nature of the 1997 and 1998 estimates and the subsequent  events in the planning and bidding phases of the project that affected the  project’s costs, time frames, and scope. As a result, these officials said that  they now have monthly meetings with congressional stakeholders to  discuss the status of ongoing construction projects. Kennedy Center Faces Challenges in Managing Its Construction Program

In addition to problems associated with the planning and bidding phases of  the project, we found that the Kennedy Center faces a number of  challenges in managing large construction projects. The Kennedy Center  lacks (1) adequate policies and procedures to guide the planning and  management of the construction process, (2) some timely construction  data on schedules and costs for effectively overseeing construction  projects and measuring results, and (3) key human capital resources and  expertise that would be highly beneficial in managing the construction  process. Addressing these challenges will become  increasingly important as the Kennedy Center undertakes the larger, more  costly, and more complex plaza and buildings project. However, in the case of the Kennedy Center garage  expansion and site improvement project, early estimates proved to be  especially problematic and were based on unrealistic assumptions. Although making improvements in these areas is no  guarantee of project success, such improvements would strengthen the  construction program and reduce risk by providing greater effectiveness in  managing and overseeing future projects and measuring results.
Why GAO Did This Study

In the mid-1990s, John F. Kennedy Center for the Performing Arts (Kennedy Center) officials recognized a need for additional parking and better site access. As a precursor to a planned project to construct an 8-acre plaza and two additional buildings at the site, the Kennedy Center is currently in the process of constructing a garage expansion and site improvement project. GAO did this study because of congressional concerns over project delays and costs as well as challenges that the Kennedy Center faces as it pursues this major construction effort. GAO's objectives were to (1) compare the garage expansion and site improvement project's current costs, time frames, and scope with the estimates provided to congressional stakeholders in 1997 and 1998 and (2) identify what challenges the Kennedy Center faces in managing large construction projects.

What GAO Found

As of July 2003, Kennedy Center officials estimated that the garage expansion and site improvement project would cost $88 million, the garage expansion will be completed in December 2003, the site improvements will be completed in summer 2004, and the project will include 525 parking spaces and various traffic flow improvements. These estimates vary substantially from estimates that Kennedy Center officials provided to congressional stakeholders in 1997 and 1998. At that time, Kennedy Center officials estimated that the project would cost $28 million, would be completed by August 2000, and would include between 900 and 1,000 parking spaces. According to Kennedy Center officials, the initial estimates were preliminary in nature and were based on some unrealistic assumptions. They acknowledged that they should have done a better job of informing Congress of the preliminary nature of the estimates and the subsequent events in the project's planning and bidding phases that affected the costs, time frames, and scope. Kennedy Center officials said that they now hold monthly meetings with Congress about the status of ongoing projects. The Kennedy Center faces certain challenges in managing large construction projects. Specifically, the Kennedy Center lacks (1) adequate policies and procedures to guide the planning and management of the construction process, (2) some timely construction data on schedules and costs for effectively overseeing construction projects and measuring results, and (3) key human capital resources and expertise that would be highly beneficial in managing the construction process. Kennedy Center officials are now working to address these challenges. Although making improvements in these areas is no guarantee of project success, these types of improvements would strengthen the construction program and reduce risk by providing greater effectiveness in managing and overseeing projects and measuring results.