Four years into construction, the Fed still had no agreed maximum price.
A September 29 audit found that the overall guaranteed maximum remained unsettled after more than $2 billion in construction packages had been awarded.
What happened
The OIG found no agreed overall guaranteed maximum price as of July 2026. Without that cap, the construction manager’s 2.95 percent fee could rise with construction costs. GSA announced October 1 that it would serve as project executive.
Why CMCoE cares
Buying individual construction packages before settling the overall maximum left the owner exposed to cost growth the planned contract structure was supposed to constrain.
Regulatory fine print
This is a September audit and October 1 response feature, not a new October 9 award. Individual packages had negotiated prices; staff argued that fixing a maximum with incomplete designs could inflate it. Inflation, design changes and site conditions drove costs. The OIG found no reasonable grounds for a criminal referral or administrative-misconduct finding. The Board agreed with seven recommendations and said it would finish maximum-price negotiations; completion is not verified.
Sources
- Federal Reserve OIG — 2026-FMIC-B-016, full report and response (Federal Reserve OIG, )
- GSA — project executive announcement (GSA, )