"With the price of the project higher than ever imagined, it's important to get a full accounting of the cost. We need to make sure there was no feeding at the federal trough by contractors, and that the EPA managed the task efficiently," Grassley said. "The General Accounting Office may find that every penny of that expense is justified. This was a first-of-its-kind project. I appreciate that the contamination was cleaned up successfully so that it was safe for everybody to return to their offices."
Grassley has received correspondence from the Environmental Protection Agency, which supervised the contractors working to decontaminate the Hart Senate Office Building and other buildings in the Capitol complex, showing the latest estimated clean-up cost including EPA overhead is $41,721,910. That includes external costs of $27.3 million, internal direct costs of $5 million, and an indirect rate of 29.17 percent that is used to account for all Superfund program costs that support the clean-up of sites but is not tracked site specifically, according to EPA officials.
One year ago today, a Senate staff member opened a letter containing anthrax in the Hart building, and the clean-up began thereafter. The final cost took months to estimate because the EPA had to receive and compile contractors' bills, according to the EPA.
EPA hired and supervised contractors for the project, but the Capitol Police Board had the overall responsibility for the management of the clean-up. The three members of the board are the Sergeant at Arms of the House and the Senate, and the Architect of the Capitol.
The latest clean-up cost estimate is significantly higher than initial estimates. In March, the clean-up cost was at more than $23 million, and the tab was still running. Grassley has asked the General Accounting Office to determine what costs the EPA incurred in the clean-up and how the costs were funded; analyze how the contracts were awarded, and to what extent they were awarded on a competitive basis; determine what steps the EPA took to supervise contractors' work and costs and ensure their work and costs were efficient, accurate and reasonable; and explain how financial responsibility for liability was agreed upon. As a part of this review, GAO will examine details of the contracts and the contractors' costs, including materials and supplies, per diem and travel expenses and labor costs.
The GAO's report is expected in 2003. The Capitol Police Board states it must review documents for security reasons before they are released, and the EPA also is conducting a review process of documents and information.
"I appreciate the cooperation the Capitol Police Board has given to GAO so far," Grassley said. "I hope the EPA can also be cooperative, and I'll monitor this closely."