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while these and other steps have resulted in improved estimating, the Smithsonian will continue to face special problems in estimating because of the complexities of maintaining and renovating its many historic buildings as well as its requirements for exacting standards in the environmental controls for its museums. In discussion with the Committee Mr. Peyton said that the difficulties in estimating the cost of storage equipment for the Museum Support Center were attributable to the industry's inability to respond to its pioneering design.

At the Committee's invitation, Mr. Anderson reviewed recent developments with respect to the Smithsonian's safeguards in maintaining and repairing its 57 high-voltage electrical transformers which contain potentially toxic PCB's as a coolant. He outlined the nature of the Environmental Protection Agency's inspection report, said that the Institution is contracting for the repair of all leaks and malfunctioning switches, and noted that the Smithsonian will continue to try to budget for the replacement of these transformers by 1990 in accordance with new EPA regulations.

Mr. Anderson gave a brief overview of the processes followed by the Smithsonian's Office of Audits and Investigations in the course of working from its draft reports to its final recommendations. He pointed out that a recent review indicated that a substantial number of recommendations had not been fulfilled and that, as a result of special efforts and fine-tuning of follow-up procedures, many of these "open recommendations" have not been satisfied. At the suggestion of the Committee it was agreed that it would be prudent to assign a completion date for each audit recommendation.