Federal Reserve Board Chairman Kevin Warsh announced that the U.S. General Services Administration will serve as Project Executive for the central bank's renovation of its headquarters in the Eccles and East Buildings.
The move follows a critical Office of Inspector General report that found serious mismanagement of the renovation project under previous Chairman Jerome Powell. According to the report, project costs ballooned from an initial estimate of $1.3 billion in 2020 to $2.4 billion by December 2024, with uncertainty remaining over how much further costs have climbed since. The Federal Reserve also failed to establish a guaranteed maximum price for the project.
Warsh enlisted GSA to work "in the task of finally bringing the renovations to a speedy and successful completion," according to a letter he sent to Inspector General Horowitz. GSA Administrator Edward C. Forst said the agency would bring expertise in construction, project management and federal real estate to "get these projects back on track" with a focus on delivering better value for taxpayers and ensuring the Federal Reserve's facilities serve the American people.
According to the Federal Reserve, the renovation project covers major building systems and infrastructure at the agency's Washington headquarters. The Commission's oversight authority relates solely to the terms and conditions of the contracts for utility service and financial protections.