Federal Reserve Taps GSA to Lead HQ Renovations Amid Cost Controversy
Chairman Kevin Warsh of the Federal Reserve has enlisted the help of the General Services Administration (GSA) to oversee renovations at the Fed's headquarters. This decision comes after a scathing report from the Office of Inspector General found that costs for the project ballooned from $1.3 billion in 2020 to $2.4 billion by December 2024, with uncertainty remaining over how much further costs have climbed since.
The GSA will serve as Project Executive for the renovation of the Eccles and East Buildings, which has been plagued by mismanagement under former Chairman Jerome Powell's leadership. According to the report, the Federal Reserve failed to establish a guaranteed maximum price for the project, leading to significant cost overruns.
GSA Administrator Edward C. Forst expressed support for Warsh's efforts to bring greater accountability and cost discipline to the renovation process. 'GSA fully supports Chairman Kevin Warsh's efforts to bring greater accountability, cost discipline, and effective project management to major renovation work across Federal Reserve facilities,' Forst stated.