Federal Reserve Chairman Kevin Warsh has appointed the General Services Administration to oversee completion of the central bank’s headquarters renovation, ordering an independent cost audit after an inspector general’s investigation documented extensive failures in management and senior oversight.
The watchdog found that the Fed repeatedly departed from contractual cost controls, allowed major spending decisions to proceed without requiring escalation to senior leadership, and reported the project as on track against budget and schedule targets that were repeatedly revised.
Warsh’s response establishes new executive responsibility for the project and directs reviews of spending and contractor performance, including potential recovery of payments for services not delivered.
“Effective immediately, GSA will serve as...
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