Board of Governors of the Federal Reserve System

Marriner S. Eccles Building and 1951 Constitution Avenue Building Project

Frequently Asked Questions

What are the goals of the project?

The Federal Reserve takes seriously the responsibility to be a good steward of public resources. The project will reduce costs over time by allowing the Board to consolidate most of its operations. It involves a complete overhaul and modernization that preserves two historic buildings that have not been comprehensively renovated since their construction in the 1930s and includes:

• Remediation and updates to make the buildings safe, healthy, and effective places to work by removing asbestos and lead contamination, and accommodating modern workplace technology.
• Complete replacement of antiquated systems such as electrical; plumbing; Heating, Ventilation, and Air Conditioning (HVAC); and fire detection and suppression systems.
• Major structural work to bring the buildings up to modern code, including current accessibility, security, and safety standards.

The work will also restore and enhance space for the public along the National Mall.

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What state and federal entities did the Board consult with?

The Board consulted with a range of state and federal agencies as part of the project, including:

• The Commission on Fine Arts
• The National Capital Planning Commission (NCPC)
• The DC Public Space Committee
• The DC State Historic Preservation Office
• The National Park Service

The Board informed congressional oversight committee leadership of the plan to consolidate operations at an early stage. The Board also presented the project to its DC Advisory Neighborhood Commission as well as to its federal building neighbors.

What were the main reasons for cost increases over the course of the project?

Various factors have driven cost increases. Key factors include:

• Changes to original building designs as a result of consultation with review agencies;
• Differences over time between original estimates and actual costs of materials, equipment, and labor; and
• Unforeseen conditions (for example, more asbestos than anticipated, toxic contamination in soil, and a higher-than-expected water table).

How is marble used in the project?

The Eccles and 1951 Constitution Avenue buildings were originally built with marble in the façades and stonework. The project has salvaged the original exterior marble to be reinstalled and will use new domestic marble where the original was damaged or where needed to keep with historic preservation guidelines and to address concerns raised by external review agencies.

Is there a new VIP dining room?

No new VIP dining rooms are being constructed as part of the project. Eccles has conference rooms, which are being renovated and preserved. They are also used for mealtime meetings.

Is there a VIP elevator?

No. The original elevators are being rehabilitated, including an elevator that services historic conference rooms that are also used for mealtime meetings. A short extension of this rehabilitated elevator will make the space more accessible for people with disabilities. There are no elevators where access is limited to governors.

Do you have new water features?

No. The Board’s initial design included new water features for 1951 Constitution Avenue, but they have been eliminated. Fountains that were original to the Eccles Building are being restored.

What are the "garden terrace" and "vegetated roofs" in the 2021 submission to the National Capital Planning Commission?

The term "garden terrace" in the 2021 submission to the National Capital Planning Commission refers to the ground-level front lawn of 1951 Constitution Avenue, which serves as the roof of the parking structure beneath. There are other references to "vegetated roofs," often referred to as green roofs, which are commonly used to help with stormwater management and to increase building efficiency and roof longevity. Green roofs are found on other federal government buildings, like the Departments of Justice, Interior, and many others, and are encouraged by the General Services Administration.

 

Who oversees the project?

The project is overseen by the members of the Board of Governors, all of whom are Senate-confirmed. It was first approved by the Board in 2017. It has been subject to annual budget approval by the Board since then.

The Board's independent Office of Inspector General (OIG) has had full access to the project information on costs, contracts, schedules, and expenditures and receives monthly reports on the construction program. The OIG conducted an audit in 2021 to assess the Board's process for planning and managing multiple renovation projects as well as procuring services under various renovation-related contracts.

Has the Eccles Building been comprehensively renovated before?

No. While periodic maintenance and work has been done to keep the building occupiable (including a project in the late 1990s), there has been no comprehensive renovation since it was constructed nearly 100 years ago.

How is the Federal Reserve accountable?

The Board believes it is of the utmost importance to provide transparency for our decisions and to be accountable to the public through the Congress for our work. We take seriously our commitment to transparency. We respect the critical importance of the constitutionally derived congressional oversight of our activities, and we work collaboratively and cooperatively with members of Congress to answer questions and to provide information on a broad range of issues.

Specifically, Chair Powell has said:

“With independence comes the responsibility to provide the transparency that enables effective oversight by Congress, which, in turn, supports the Fed's democratic legitimacy. At the Fed, we treat this as an active, not passive, responsibility, and over the past several decades we have steadily broadened our efforts to provide meaningful transparency about the basis for, and consequences of, the decisions we make in service to the American public. We are tightly focused on achieving our statutory mandate and on providing useful and appropriate transparency.”

To that end, the Federal Reserve regularly engages with and is accountable to the United States Senate and the United States House of Representatives, specifically the Senate Banking, Housing, and Urban Affairs Committee and the House Financial Services Committee. We frequently answer questions about our own actions and positions and provide technical assistance at their request for pending legislation.

Additionally, the Federal Reserve Chair testifies to each house of Congress twice per year on monetary policy. During two sequential days of hearings, members of the House and Senate have the opportunity to question the Fed Chair on any topic, and then submit questions in writing after the hearings. As part of these hearings, the Federal Reserve publishes a semiannual Monetary Policy Report, detailing recent economic and monetary policy developments.

The Federal Reserve also publishes a semiannual Supervision and Regulation report, detailing banking system developments, as well as a semiannual Financial Stability Report, similarly detailing recent financial stability developments and trends.

In addition, the Federal Reserve regularly responds to numerous letters and requests on a wide range of issues from those committee members as well as any member of Congress. The Chair and other members of the Board regularly initiate requests for meetings with members of Congress to keep them apprised of relevant issues and actions by the Board.

The Federal Reserve is also overseen by an independent Inspector General (IG), which conducts audits, investigations, and other reviews to assess the economy, efficiency, and effectiveness of programs and operations, compliance with laws and regulations, and internal operations. The independent IG publishes a semiannual report with its outstanding recommendations related to the Fed’s programs, operations, and compliance with laws and regulations.

The Board is also subject to numerous reviews of its activities by the Government Accountability Office (GAO) each year, with public results, and the Board is responsible to address its efforts related to recommendations in the GAO reports. Additionally, the Board publishes an Annual Report, which is posted on its website and delivered to Congress, detailing the Board’s activities.

To further ensure financial accountability, the Federal Reserve publishes its balance sheet weekly. The financial statements of the Board of Governors and of the Reserve Banks are also published and audited annually by an independent outside auditor.

Describe your engagement with the National Capital Planning Commission to date on the Eccles and 1951 Constitution Avenue building project?

Since the project started, the Board has enjoyed a constructive, collaborative, and fruitful engagement with the NCPC. The Board voluntarily submitted project designs for the Eccles/1951 construction project, and sought and received NCPC approval for designs in both 2020 and 2021. We have welcomed and appreciated the NCPC’s input and worked collaboratively to address the issues they raised. During its September 2, 2021, meeting, NCPC commissioners approved the plans and noted that the Board was highly cooperative with its staff and credited the Board for being responsive to requests and feedback. One commissioner said that the Federal Reserve had been “really put through its paces...and the Federal Reserve deserves a lot of credit.” Another said that it has “been an excellent working relationship.” A third commissioner said that they appreciated the Federal Reserve’s “receptivity and collaboration.”

The Federal Reserve is committed to good stewardship of the public’s resources and has therefore sought feedback and perspectives from a wide range of external groups on its building projects, including the NCPC. Although the Board is not generally subject to the direction of NCPC with respect to its building projects, we voluntarily collaborated with the NCPC and benefitted from robust and collaborative engagement with the commission in earlier stages of this project. The NCPC’s core plan review authorities are advisory only and do not extend to review of project funding.¹ The NCPC has never exercised a role in overseeing the financial costs of any Federal Reserve projects. Moreover, Congress, through the Federal Reserve Act, vested the Board with control of its buildings and both the responsibility and authority to determine all of its expenses and obligations.

Do changes that the Board has made to its original project designs approved by NCPC warrant further review by NCPC?

As noted above, the Board generally is not subject to direction from the NCPC on its building projects. We note, however, that even if the Board were subject to NCPC direction, guidance from the NCPC states that covered agencies should submit revised project information for covered projects only if substantial changes are made in either the design or plan of the project after NCPC review. Beginning in 2023, the Board made a small number of design changes to remove certain elements and added no new elements. These changes were intended to simplify and hasten the remaining construction, decrease complexity, and reduce the possibility of further cost overruns and delays. The Federal Reserve does not regard any of those changes as warranting further review. We are committed to continuing our work as a responsible agency in the federal government and a good citizen in Washington, D.C.

What is the process for procurement of labor and materials for the project?

In general, all aspects of the project are procured through a competitive bid process. Contracts are awarded to the bidder that can provide the greatest overall benefit in response to the requirements of the project, meaning that there is high confidence that the contract can be completed on time, with sufficient quality, and for a competitive price.

In addition to firms in the Washington, D.C., area, contracts for work on the project have been awarded to firms throughout the United States, including from California, Florida, Kansas, New York, Pennsylvania, South Carolina, and Texas.

Materials and equipment for the project are sourced from 32 states and the District of Columbia. For example, structural steel for the project is being supplied from firms in Arkansas, Alabama, Indiana, Ohio, South Carolina, and Texas. Pipe and iron fittings are being supplied from California and Pennsylvania. Electrical and lighting equipment are being supplied from California, Illinois, Maryland, Massachusetts, New Jersey, New York, and South Carolina. Heating, ventilation, and air conditioning equipment are being supplied from Arkansas, California, Florida, and Illinois.

Why is a renovation needed of Federal Reserve buildings?

Major systems in both buildings were obsolete and in need of replacement for health and safety reasons. They included plumbing, electrical, fire suppression, water connections, and HVAC. Some systems dated to the construction of the buildings in the 1930s.

The project also remediates safety issues by removing hazardous materials such as asbestos and lead and will bring the buildings up to modern code. While periodic work has been done to keep the buildings occupiable, neither building has seen a comprehensive renovation since they were constructed.

Interior spaces are also being made more accessible for people with disabilities, including providing step-free access to main lobbies and a short extension of an original elevator to eliminate the need for a ramp to access historic conference rooms.

What is the history of the buildings and what challenges are posed by renovating historic buildings?

The Eccles Building was constructed between 1935 and 1937 as the headquarters for the Federal Reserve Board. The 1951 Constitution Avenue Building was constructed in 1932 for the U.S. Public Health Service, and over its history, housed a variety of government agencies, including the Combined Chiefs of Staff during World War II, the Atomic Energy Commission, the National Science Foundation, and the Department of the Interior. Both buildings are listed in the District of Columbia Inventory of Historic Sites, and the 1951 Constitution Avenue Building is listed on the National Register of Historic Places.

The construction project identified key architectural features to preserve the historic integrity of the buildings, such as stonework, including marble, façades, meeting rooms, and other spaces. Historic preservation work in the Eccles Building also includes elevators that are original to the building, and historic conference rooms.

Construction involving the preservation of historic spaces requires specialized processes and methods, which are generally more complex and have increased costs compared with new construction or renovation of spaces that are not historically significant or located on the National Mall.

Will the project reduce costs for the Fed?

Yes. Over time, the Board has needed to lease space in several commercial office buildings to support its operations. This project allows the Board to consolidate its operations and reduce expenses on leased space elsewhere.

Were changes made to the project?

Yes. Some features on the buildings, including rooftop spaces and new water features on the building grounds, were scaled back or eliminated as the project moved forward. In addition, in light of higher-than-expected construction costs, the Board in 2024 canceled a separate planned renovation of its New York Avenue Building.

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1. 40 U.S.C. 8722(b)(1) Return to text