Construction of a military shopping and entertainment complex near Kaiserslautern, Germany, has been hampered by cost, schedule, and performance problems that require stronger management controls, GAO has said.
It said problems facing the Kaiserslautern Military Community Center — known as "K-Town – include construction flaws, vandalism of property, repeated work stoppages and slowdowns by contractors, and ongoing criminal investigations.
Financial problems facing the project has caused the number of workers on-site to drop from several hundred to less than 50, which should lead to further delays, according to GAO-07-1039T.
It said neither the German government construction agency — LBB-Kaiserslautern — in charge of building the 800,000 square-foot facility, nor the Air Force has a reliable estimated completion date or final cost for the project, which was originally estimated at $150 million and scheduled for completion early in 2006.
From the beginning the project was at risk as an overseas project controlled by a construction agency while financial risks were carried by the Air Force and its funding partners, GAO said, adding that the construction agency did not effectively manage the design and construction of the project.
Rather than increase controls to mitigate project risks, the Air Force has provided minimal oversight and in some cases circumvented controls to expedite the invoice payment process in an attempt to complete the project, according to the report.
Further, it said that because the project is funded partly by non-appropriated funds that military service members, civilians and their families could bear some of the increased costs.
