Problems in Constructing Embassy Facilities in Cairo, Egypt

GAO testified on the State Department Foreign Buildings Office's (FBO) difficulties in constructing embassy facilities in Cairo, Egypt. GAO noted that: (1) design problems and changes caused delays and added costs; (2) FBO inadequately evaluated the contractors' financial and technical capabilities; (3) FBO inadequately monitored the site project manager's activities; and (4) the project manager inadequately monitored construction, failed to reject unsatisfactory materials and workmanship that did not comply with the contract, and failed to report problems to his supervisors. GAO found that: (1) FBO did not comply with State Department policies and regulations in building the embassy facilities; (2) delays and costs of the construction were excessive; and (3) State Department officials should have been more cautious since they had previous experience and problems in constructing facilities in Egypt.