Federal officials have unexpectedly delayed the award of a contract for the controversial renovation of the Consumer Financial Protection Bureau’s headquarters building in the nation’s capital.
The delay could add millions to the renovation’s current $216 million price tag.
One construction industry executive whose company bid on the contract told the Washington Examiner it was his understanding the delay was because the CFPB project was “way over budget.”
Costs for CFPB’s headquarters building have spiraled out of control from $55 million to nearly $216 million, according to a June 30 letter from the inspector general of the Federal Reserve.
The General Services Administration, which is managing the renovation, originally told bidders to expect an award announcement between July and September 2014. Neither GSA nor CFPB have announced any award.
But CFPB admitted in an obscure federal contracting document dated Sept. 19 that an award announcement was delayed and the “award is not anticipated until (Blank) 2014.” The bureau blanked out the actual date in the notice.
CFPB also indicated there could be additional unspecified delays stating, “Further, there is potential for this date to be extended as well.”
A bureau spokesman confirmed Monday that the contract had not been awarded but did not respond to Examiner questions about why the project has been delayed.
According to a GSA occupancy agreement, the cost of renting temporary CFPB office space at One Constitution Square in downtown Washington is estimated to be $22.3 million if the new headquarters is ready by October 2015.
But each additional month CFPB employees would remain in the temporary offices adds at least $800,000 to the rent estimate, according to the lease.
The developer of the temporary property is Neil G. Bluhm, a long time personal friend of President Obama who hosted the president’s 49th birthday party at his Chicago-area home.
Bluhm is a major campaign bundler for Obama, raising between $250,000 and $500,000 for the president’s 2008 campaign and more than $500,000 in 2012.
A July 2 House Financial Services Committee statement accused CFPB officials of trying to build a “palace.” The building is across the street from the White House complex.
The $216 million costs cited by the IG translate into $590 per square foot, more than the square-foot costs for Trump Towers, the Bellagio Casino and the luxury Burj Khalifa in Dubai, according to the committee.
CFPB Director Richard Cordray has stated he has no interest in building a palace. Last Jan. 28 before the Financial Services Committee he told lawmakers, “The notion that we would try to build some kind of palace that we don’t own or control makes no sense to me.”
Still, the bureau has not been forthcoming about why the costs are rising and what kind of building it plans to build.
Some details about the building’s exterior include exotic plants, a waterfall and a sitting area for “contemplation.” The building is also to house a “Visitors Center” on the ground floor and a “green” children’s playground on the roof.
The CFPB building now stands empty across from the White House with local retailers struggling to stay in business. More than 1,000 employees were originally housed in the offices at 1700 G St. NW.
The Office of the Comptroller of the Currency, the landlord, allowed a half-dozen small retailers, mainly mom-and-pop stores and restaurants, to continue operations at the ground floor of the old headquarters building during construction.
Washington Examiner intern Sarah Westwood contributed to this story.
