Duncan, McCaul: New GAO Report Shows Mismanagement of DHS New Headquarters Project Costs Taxpayers Billions

Press Release

Last week, at a hearing held by U.S. Rep. Jeff Duncan, R-S.C., chairman of the Subcommittee on Oversight and Management Efficiency, the Government Accountability Office (GAO) released a new report, entitled "DHS and GSA Need to Strengthen the Management of DHS Headquarters Consolidation."

The 77-page report, originally requested by Subcommittee Chairman Duncan and Rep. Michael McCaul, R-Texas, chairman of the Committee on Homeland Security, details the mismanagement of Department of Homeland Security's (DHS) project to establish a new consolidated headquarters at St. Elizabeths. The project is over budget and schedule by $1 billion and 10 years.

GAO found that DHS and the General Services Administration's (GSA) plans for the headquarters do not reflect leading best practices for capital decision making and reliable cost and schedule estimates. Furthermore, GAO recommends that Congress make future funding for the project contingent upon DHS and GSA developing new plans for St. Elizabeths that follow these established guidelines.

"The truth is that DHS and GSA don't have any idea how much St. Elizabeths will cost or when it could be finished," said Duncan.

The GAO report made several recommendations and called on Congress to make funding contingent on the agencies strengthening their plans. "Congress should heed GAO's recommendation that no new funding be appropriated until DHS and GSA get their act together," said Duncan.

"GAO found that this project is another example of DHS and GSA not consistently following their management policies and best practices," said McCaul. "In a time of tight budgets and increased threats from around the world, it is all the more important that taxpayer dollars on homeland security are used appropriately for DHS's vital missions. I urge the department to follow GAO's recommendation to reassess this project, and any further funding from Congress should be conditional to their creation of a new plan."

In January, Duncan released a majority staff report, which reviewed the potential areas of cost growth, selection and planning issues, and the effects of green initiatives and the site's historic status on construction costs at St. Elizabeths. The report also questioned why DHS has not conducted a major reassessment nor considered a new approach to headquarters consolidation.

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