U.S. Embassy, Moscow: Alternatives for Reconstruction and Their Costs

Abstract

The State Department's $270 million cost estimate is based on the estimated cost of reconstruction from a security engineering study prepared by the BDM/M.K. Ferguson companies and on the State Department's estimates of special security requirements and administrative costs. Security-related items account for the majority of the $270 million. The State Department considers Moscow to be one of the most technologically hostile intelligence-gathering locations, requiring the highest level of security. The current $270 million cost estimate to demolish and rebuild the office building may be understated because (1) an actual building design has not been completed, (2) the milestones for completing design work and reaching a construction agreement with the Soviet government have been exceeded, and (3) the projected inflation rates used for the $270 million estimate are lower than current projected rates. We estimate that the revised inflation forecasts and schedule delays have increased reconstruction costs by about $13 million.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1990
Accession Number
ADA267364

Entities

Organizations

  • United States Government Accountability Office

Tags

DTIC Thesaurus Topics

  • Agreements
  • Congress
  • Construction
  • Cost Estimates
  • Costs
  • Department Of State
  • Engineering
  • Governments
  • Intelligence Collection
  • International Relations
  • National Security
  • Office Buildings
  • Security
  • Structural Integrity
  • United States
  • Ussr

Readers

  • Government Contracting/Procurement.
  • Government and Public Administration Law.
  • Industrial Economics