Information concerning the New Federal Office Building in Indianapolis, Indiana

GAO reviewed the following aspects of the construction of a new Federal office building in Indianapolis, Indiana: the rejection by the General Services Administration (GSA) of a food-service bidder's offer to install cafeteria equipment; the investors in the participation certificates related to the building contracts; and the ultimate cost of the building.

The principal reasons for GSA's rejection of the food-bidder's offer were: a contract holder who furnished equipment would have an unfair advantage over competitors in bidding for subsequent awards; and when contractors change, service would be interrupted probably for several months while one contractor removed its equipment and the other installed its own. Funds for the construction of the building and four other Federal buildings were obtained in 1972 from the sale of 30-year participation certificates in the total amount of $196.5 million. The series of certificates that corresponded approximately to the award for the Indianapolis project amounted to $22.7 million. GAO estimates that the purchase payments allocable to the Indianapolis building (principal, interest, administrative costs, and taxes), together with the other payments from appropriated funds, will amount to about $63.7 million when the Government takes title to the building.