Viewing page 91 of 151

This transcription has been completed. Contact us with corrections.

-61-

March 14, 1989

[[underlined]] MEMORANDUM [[/underlined]]

To: Messrs. Adams and Anderson

From: Nancy D. Suttenfield, Director ^[[NDS]]
      Office of Planning and Budget

Subject: Overview of Estimated Costs for Programs and Facilities for the National Museum of the American Indian


Attached are estimates of resource requirements related to the National Museum of the American Indian. These estimates are intended primarily for internal use and reference as developments continue to unfold. Some of the estimates for  program planning/coordination and other transition and initial operating costs are reasonably accurate, since they represent known near term requirements. The estimates for eventual program and other operating expenses and for construction are highly preliminary; in keeping with concerns about the need to conduct formalized program planning, with the involvement of other SI staff and representatives of Indian communities, these long term costs only represent "orders of magnitude".

To summarize, construction of the three facilities could run approximately $85 million for the Mall; $63 million for an appropriate Suitland Facility; and $20 million for the NYC Custom House. The current preliminary cost projection for opening exhibits and other one-time expenses is approximately $21 million. Projections of annual program and other operating costs total approximately $38 million, including necessary central support requirements. These three categories of costs appear in Table 1. Capital costs in this table reflect escalation to an assumed midpoint of construction, but all other costs represent FY 1989 dollars.

Table 2 outlines transition and initial operating costs. As part of transition expenses, a project planning/coordination effort, if constituted as presented in the attachment to Table 2, will cost approximately $1.2 million in its initial year. These costs exclude formal building/facility planning and design expenses, but include some initial building concept planning and preliminary drawings as part of the project planning/coordination team effort. We also project an immediate requirement of $0.3 million annually to handle