Federal Bureau of Prisons Management of Construction Contracts

Report No. 02-32
August 2002
Office of the Inspector General

Our audit did not specifically address the precontract-award side of the BOP’s management of construction contracts.  However, during our review we noted that the Big Sandy, Kentucky construction project is expected to cost the BOP $162 million to complete, or about $20 million more than similar construction projects.  BOP officials explained that the costs are higher for this project because extensive work was needed to stabilize the ground the prison was to be constructed on; the site was a former coalmine.  BOP officials further stated that although other sites in Eastern Kentucky were considered, only the Big Sandy location met the BOP’s requirements.  They did not select other nearby sites for reasons that included unacceptable soil conditions and locations, inadequate acreage, and negative effects from past mining activity.  In our judgment, it is unclear why some of the other locations were excluded, taking into consideration the overall condition found in Big Sandy.  The BOP files did not show that the costs of conditioning these properties were considered when BOP officials made their selection.