The new estimate represents the most recent setback for the project, which was temporarily suspended in December 2014 due to a dispute with prime contractor Keiwit-Turner.
The $1.73 billion-estimate, VA officials said, is based on research that was provided by the U.S. Army Corps of Engineers, which agreed to oversee the project following the VA’s latest dispute with Keiwit-Turner, according to the report.
“The estimate includes the cost of construction, contingencies, and Army Corps of Engineers costs, as well as VA’s cost to close out the original contract and continue construction until the Army Corps of Engineers assumes construction management duties this summer,” VA Deputy Secretary Sloan Gibson wrote in a letter to Congress, according to the report.
In his letter to Congress, Mr. Gibson estimated that the VA was working to reprogram about $100 million toward the project, but that there was an “additional funding need of $830 million.”
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