The Federal Reserve Board, not the General Services Administration (GSA), is responsible for contracting the renovation of its headquarters buildings – the Marriner S. Eccles Building and the 1951 Constitution Avenue NW Building. The Federal Reserve System has specific statutory authority under the Federal Reserve Act to procure goods, services, and real property, and is not subject to the same regulations as other federal agencies.
While the Fed does consult with the National Capital Planning Commission (NCPC) on the renovation plans, their involvement is described as voluntary and doesn't extend to the financial oversight of the project. The renovation has drawn attention and criticism, particularly regarding its rising costs, from the Trump administration and its allies. Federal Reserve Chair Jerome Powell has defended the project, citing the need for significant structural repairs and updates to the historic buildings.
The project involves a comprehensive renovation to address aging infrastructure, meet modern building codes, and remove hazardous materials like asbestos and lead. The renovation is also intended to improve accessibility and consolidate operations.
In essence, while the GSA has a broad role in managing federal property and construction, the Federal Reserve operates under its own procurement authority for its headquarters renovation project.
Who is responsible for contracting the new Fed headquarters ?
The responsibility for contracting federal building projects, including the Federal Reserve's headquarters renovations, primarily falls under the General Services Administration (GSA). Specifically, the GSA's Public Buildings Service (PBS) handles the design, construction, and maintenance of federally owned buildings. The GSA engages private-sector architects and engineers for design and construction through its Design Excellence Program.
However, the Federal Reserve Board (.gov) has stated that it has the legal authority to manage its own buildings and finances, including building projects, as a self-funded entity, with approval from Congress for major expansions or renovations. The Fed's Chairman, Jerome Powell, has defended the current renovation project in recent weeks, explaining it involves the overhaul of two historic buildings with necessary upgrades like removing asbestos and lead contamination, and replacing antiquated systems such as electrical, plumbing, HVAC, and fire suppression systems.
https://www.google.com/search?q=who+is+responsible+for+contracting+the+new+Fed+headquarters
Currently, there's a debate about who is responsible for the $700 million in cost overruns on the renovation project for the Federal Reserve headquarters, also known as the Eccles Building in Washington D.C.
The Trump administration, particularly the Office of Management and Budget (OMB) Director Russell Vought, has criticized Federal Reserve Chair Jerome Powell, accusing him of mismanaging the budget for the renovation and questioning the necessity of some features, according to CNBC. Some White House advisors have suggested this could be grounds for potentially removing Powell from his position.
On the other hand, Jerome Powell has responded to these criticisms, defending the project's necessity due to structural repairs, hazardous materials removal, and upgrades to antiquated systems. He also stated that the project has been under strict oversight and subject to annual approval by the Fed Board, and that the Fed's Inspector General has access to all project information including costs. He also requested the Fed's Inspector General to review the project costs in detail.
This issue has become intertwined with political tensions, as President Donald Trump has been critical of Powell for not lowering interest rates, and the renovation project has been used as a new line of attack. Some, like Senator Elizabeth Warren, have suggested that the scrutiny of the renovation is politically motivated, according to The New York Times.
The Fed has also attributed some cost increases to unforeseen conditions like asbestos removal and toxic contamination, as well as changes to the original designs and fluctuations in the cost of materials, equipment, and labor, according to Yahoo Finance.
The major renovation project currently underway at the Federal Reserve headquarters began construction in 2021. The original building was built in 1937.
The major renovation project currently underway at the Federal Reserve headquarters began construction in 2021.
While the project was approved by the Federal Reserve Board in 2017, the National Capital Planning Commission (NCPC) approved the final site and building plans in September 2021.
This
renovation involves the Marriner S. Eccles Building and the Federal Reserve
Board-East Building. The project addresses a backlog of upgrades, changes in
building codes and regulatory requirements, and the need to accommodate modern
information technology, security, and environmental standards.
https://www.google.com/search?q=when+did+the+renovation+begin+on+the+Fed+Headquarter+begin
The
specific contractor for the ongoing renovation of the Federal Reserve
headquarters buildings in Washington D.C. has not been definitively identified
in the recent public discussion and news reports.
However,
some potential contractors that may be involved in or related to the project
include:
· Gilbane and Balfour
Beatty: These companies are listed as main contractors for Federal Reserve
Building excavations by Keller North America, which is providing dewatering and
water treatment for the renovation.
· Conti
Federal: This company states it is a "contractor of choice for
building the nation's mission critical projects" and has a history of
working with the U.S. federal government. While they haven't been explicitly
named as the primary contractor for the Fed renovation, their expertise aligns
with such a project.
· Mortenson: Another company specializing in federal government contracting, particularly on a design-build basis, and lists the U.S. Army Corps of Engineers, Navy Facilities Engineering Command, and GSA as customers.
It's
important to note that the renovation project involves multiple stages, from
design and planning to construction. The Federal Reserve Board, through its
Public Buildings Service (PBS), manages the project and the procurement of
services, including architect-engineer (A-E) design and construction management
(CM). The Fed had also stated it would soon solicit bids for a construction
firm for the Eccles/1951 renovation project in March 2021.
While
news reports have highlighted the rising cost of the renovation and the
criticisms surrounding it, the focus has not been on explicitly naming the main
general contractor for the renovation itself.
The
renovation project for the Federal Reserve's headquarters in Washington, D.C.,
is estimated to cost $2.5 billion, according to NPR. This figure has
drawn criticism, particularly from the Trump administration, which views the
cost as excessive. The project has been ongoing for several years, with
the initial estimated cost rising from $1.9 billion to the current $2.5 billion.
https://www.google.com/search?q=what+is+the+total+cost+of+renovating+the+Fed+headquarters
Comments
The fault for the $700 million Cost Overrun is the use of Multiple Contractors during Multiple Administrations. The building was built in 1937 and the renovation began in 2021. The building was 83 years old. A single General Contractor should have been selected and managed to be under budget and early .
The fact that the Federal Reserve, the National Capital Planning Commission and the GSA are all involved is symptomatic of the overspending problem in the US Federal Government.
Congress needs to assign responsibility for buildings to the GSA. It looks like the Fed Chairman takes the blame because he seized the authority in 2021.
Congress also needs to redefine the Fed’s Responsibilities and Methods and have it signed into Law.
Norb Leahy, Dunwoody GA Tea Party Leader
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