# GSA Manages Washington Fed Renovation

On October 1, 2026, the Federal Reserve Board assigned the General Services Administration (GSA) the Project Executive role for remaining renovations to its Eccles and East Buildings headquarters in Washington, D.C. The Inspector General found that the project was mismanaged, citing inadequate early cost estimating and controls and the absence of a guaranteed maximum price; it found no reasonable grounds for a federal criminal-law referral. Reported estimates rose from about $1.3 billion in 2020 to roughly $2.4 billion by December 2024, with one signal citing a revised cost of $2.381 billion and another citing at least $2.5 billion. Completion is targeted for late 2027, and the signals identify no new solicitation or contractor award.

- GSA’s management role makes construction oversight, cost discipline, and project controls central to the remaining work; the reported guaranteed-maximum-price gap is a notable issue for firms involved in major renovations.
- For contractors pursuing comparable federal construction work, the findings underscore the value of comprehensive upfront estimates, defined cost ceilings, and clear allocation of inflation risk. These are procurement lessons, not new requirements announced in the signals.
- No new competition is identified. Businesses should not treat the management transition itself as a solicitation, while firms engaged in the project should account for GSA’s oversight and the late-2027 completion target.

**Jurisdictions:** federal
**Industries:** Construction & Infrastructure
**Topics:** Physical Infrastructure
**Published:** October 03, 2026

### Government Entities
- Board of Governors of the Federal Reserve System (Federal Reserve Board)
- General Services Administration (GSA)
- Office of Inspector General of the Board of Governors of the Federal Reserve System (Federal Reserve OIG)

### Key Quotes
> 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. As the federal government’s primary real estate and building management agency, GSA will work closely with the Chairman and bring its expertise in construction, project management, and federal real estate to get these projects back on track. Together, we will focus on delivering better value for taxpayers and ensuring the Federal Reserve’s facilities are positioned to better serve the American people.
> — Edward C. Forst, GSA Administrator

> We will ensure that the balance of the project is managed to the highest standards and is finished promptly.
> — Kevin Warsh, Federal Reserve Chair

### Sources
- [No criminal wrongdoing in Federal Reserve building renovation, watchdog says, but it was mismanaged](https://www.reddit.com/r/fednews/comments/1wuag1a/no_criminal_wrongdoing_in_federal_reserve) - reddit-fednews
- [The Federal Reserve Taps GSA to Lead HQ Renovations as Chairman Warsh Moves to Rein in Costs | GSA](https://www.gsa.gov/about-gsa/newsroom/news-releases/the-federal-reserve-taps-gsa-to-lead-hq-renovations-as-chairman-warsh-moves-to-r-10012026) - GSA (.gov)
- [Fed watchdog finds no crimes in $2.4B building renovation, only mismanagement](https://www.reddit.com/r/fednews/comments/1wvrcz4/fed_watchdog_finds_no_crimes_in_24b_building) - reddit-fednews