September 30, 2014
The CFPB is undertaking a major capital improvement project to fully renovate its headquarters building. The headquarters renovation project is a multiyear project that involves significant resources and poses several challenges. In addition to the challenges related to the renovation, space planning during and after the renovation may also pose a challenge to the CFPB.
The headquarters building that CFPB is leasing has not undergone significant renovation since it was constructed in 1976. The CFPB plans to make workplace and energy-efficiency improvements, including upgrades to the building infrastructure, and it plans to replace aging mechanical and electrical systems that have reached the end of their life cycle. An architectural and engineering firm has been selected, and publicly disclosed renovation cost estimates have reached as high as $145 million. This estimate is exclusive of costs for architectural and engineering services, rent for swing space, costs associated with moving, and additional renovation-related expenses. This multiyear project poses several challenges for the CFPB, including managing and mitigating risks such as potential scope changes, schedule delays, unanticipated expenses, and cost overruns.
To help mitigate risks during the renovation, the CFPB entered into a memorandum of understanding and obligated funds on a reimbursable work agreement with the U.S. General Services Administration (GSA). GSA is currently managing the procurement of the construction management contract and the construction contract.
Space planning will be required during and after the headquarters renovation. In May 2014, the CFPB began moving into swing space needed to accommodate staff members displaced by the renovation. In addition to the swing space, the CFPB currently occupies space in one other building. Once the renovation is complete, not all headquarters personnel will fit into the renovated building and additional space will still be required. To address this issue, the CFPB is planning to consolidate personnel currently located in the other two buildings into one permanent space. Any delays in the renovation schedule could affect the CFPB's planning for both the swing space and the permanent space.
The CFPB is coordinating with GSA to perform space-planning analysis.
