Capital Development – Building Capacity (CD-BC) ProgramHRSA-12-115

Notice of Award

Technical Assistance

Describe the outcome of the Capital Development – Building Capacity (CD-BC) Program applications

Discuss critical compliance requirements Review the terms and conditions of the CD-BC Notice of

Awards (NoA) Explain the process for CD-BC post-award submission and

review

Objectives

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HRSA awarded $629 million in CD-BC awards to 171 health center Award Recipients for capital projects with a 3-year project period

The funded applications include 48 alteration/renovation projects and 123 construction projects

Awards

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HRSA Activity Code: C8A Catalog of Federal Domestic Assistance (CFDA) number:

93.526 Announcement Number: HRSA-12-115 Separate PMS sub-account code located in Box 17 of the

NoA Funds must be accounted for and reported separately (from

section 330 funds and from other Affordable Care Act (ACA) funds)– If other sources of funding exist, CD-BC funds should be

drawn down proportionately to approved total (Federal and non-Federal) costs

Administrative Notes

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Health centers could propose one (1) distinct, site-specific, stand-alone facility project for either:– Alteration/Renovation (A/R) for an existing facility– Construction for a new site or expansion of existing site

Projects

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Costs incurred before 90 days prior to the award date Costs that do not meet federal procurement guidelines as

listed in 45 CFR 74.40 – 74.48 or Part 92 Land and building purchases or lease payments Operating costs (e.g., funding direct health care services,

clinical full-time equivalents, rent, mortgage payments) Permanent relocation costs Expenditures for personnel unrelated to the project Mobile vans EHR systems and licenses Abatement of site and building hazardous material Disposable office, medical, or educational supplies

Ineligible Costs

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Review all terms and conditions of the NoA Submitted project budgets should reflect the total project

related costs (Federal and Non-Federal) Prior to receiving final HRSA approval, Award Recipients

may only incur costs related to non-construction activities:– preparation/preliminary work (site plans, architectural and

engineering schematics, environmental and historic preservation requirements)

– Purchase of moveable equipment– All project conditions must be lifted prior to beginning physical

construction or renovation (including abatement, demolition, or grading)

Once HRSA has approved the required submissions, a revised NoA will be issued that clearly lifts the restrictive condition, indicating that work may proceed with the project

Beginning Projects

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A grant handbook for the C8A grant has been created in the Award Recipient’s portfolio in EHB

The project director needs to ensure he/she has added the CD-BC grant to the portfolio and that the correct Award Recipient staff are assigned to roles and functions in the C8A Grant Handbook

The following EHB Help Resource can guide you through these processes:– https://grants.hrsa.gov/webexternal/help/hlpPage.asp?hF

=grants_management#HowToAdd

Grant Handbook

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Roles - Project Officer

Monitor conditions Review revised budgets, schematics, concept/site plans,

and construction timelines Assist with pre-implementation Review and process prior approval requests Ongoing program/project monitoring and technical

assistance Closeout

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Roles - Grants Management Specialist

Review revised budgets, federal interest, lease documentation

Process prior approval requests Approve Project Director changes Provide ongoing financial and grants management

monitoring and technical assistance Closeout

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Electronic Document Submissions in EHB

Award Recipients submit all documents required as a condition of award or reporting requirement on the NoA directly to EHB

HRSA Program or Grants Office Personnel may also request other information through the EHB

By default, the project director will have access to all reports and submissions

All other users must be given privileges to view, edit, or submit by the Project Director or other user with the ability to Administer User Privileges in the Grant Handbook

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Condition Deliverables and Due Dates

If an extension to a submission deadline is needed:– Please discuss with your assigned C8A Project Officer

and/or Grants Management Specialist – Sufficient justification will be needed when requesting an

extension; also, describe the impact of the extension on the overall construction timeline

Conditions with Award Issue Date deadlines. Please be aware that the actual deadline for these conditions is from the date the awards are released to Award Recipients, which may be a later date than the Award Issue Date in Box 1 of the NoA.

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The federal government always retains interest in property constructed, acquired, or improved with federal funds:

• All construction projects, regardless of cost, must file a Notice of Federal Interest (NFI)

• A/R projects with total (federal and non-federal) costs more than $500,000 (excluding moveable equipment) must file a Notice of Federal Interest (NFI)

• Applicants not required to file an NFI (A/R projects with total federal and non-federal costs less than $500,000)

– Federal Interest still exists– Maintain documentation regarding protection of all

Federal Interest Resources can be found at

http://bphc.hrsa.gov/policiesregulations/capital/nfifilingguide.pdf

Federal Interest

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Federal Interest – Leased Property

Lessors/property owners must agree in writing to the proposed A/R or construction project and to the federal government’s Interest of the federal government before work begins. The lessor/property owner must agree to include in the lease agreement clauses that indicate the continued rights of the recipient/federal government in the event that the lessor of record changes.

Award Recipients must maintain documentation to include communications between the lessor/property owner and the lessee (Award Recipient) related to protecting such interest, in accordance with the standard award terms and conditions.

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Funds may not be used to pay lease costs Funds for a leased property cannot address needs that are part of the terms of

the lease (i.e., the responsibility of the lessor) If funds address improvements that would impact terms of the lease (e.g.,

double paned windows) applicants must have written evidence of negotiated offset in the rent

The Landlord Letter of Consent/Statement of Agreement from the facility owner must address the following components:– Approval of the scope of the project– Agreement to provide the applicant health center reasonable control of the

project site for required number of years– Agreement to file an NFI in the land records of the local jurisdiction before

the project begins (if applicable) HRSA will determine if the term of the lease is sufficient for the full value of the

grant-supported improvements to benefit the grant activity. HRSA will take into account the purpose and duration of the grant, the expected life of the facility, and the use of the facility for grant-supported purposes.

The lease agreement must provide the applicant reasonable control

Leasehold Improvements

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Most construction and A/R projects will include several conditions for environmental and/or historic preservation reviews and compliance with federal laws– DO NOT begin construction or draw down funds for

demolition, site preparation, or construction activities until these conditions have been approved and are lifted

– PLEASE PLAN ACCORDINGLY in project schedules; consultation under Section 106, takes a minimum of a month to prepare, while an Environmental Assessment may take several additional months to prepare, review, and distribute for public comment

– Grant recipients should work closely with their Project Officer and environmental reviewer

Technical assistance for environmental and historic preservation requirements is available at http://bphc.hrsa.gov/policiesregulations/capital/environmentandhistoric/capitaldevelopment.html/

Environmental and Historic

Preservation Conditions

Award Recipients must use CD-BC funding to renovate or construct space that will be utilized directly by the health center to support health center operations consistent with the 330 program

CD-IFI funds may not be used to support space which will be utilized and/or rented by other entities, to include sub-recipients or sub-contractors

Utilizing federal funds to generate revenue (e.g., charging rent for space constructed with CD-BC funds) is an ineligible use of federal funds

Per the NFI, use of the space as collateral for mortgage/financing, or change in use of space (leasing, sale, etc.) must have prior approval from HRSA; requests must be submitted through the GMS

Use of Space

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Procurement Rules

Award Recipients are reminded to comply with procurement regulations that apply to federal Award Recipients– Technical assistance on this topic is available at

http://bphc.hrsa.gov/policiesregulations/capital/– ALL goods and services equal or greater than $100,000

must be competitively bid The simplified acquisition threshold applies to work <

$100,000– Recipients should keep in mind that they still need to get

more than one quote (not bids) for the work to determine that the costs are reasonable, and the threshold shall not be broken down into several purchases or artificially reduced to smaller quantities to permit negotiations under simplified acquisition procedures

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Other Policy Requirements

Projects must be also compliant with the following: – Uniform Relocation Assistance, 45 CFR Part 15– ADA Accessibility Guidelines for Building and Facilities (28

CFR Part 36), and the 2010 Standards for Accessible Design)

– Real Property insurance, maintenance, disposition, and federal interest, 45 CFR Part 74.31-.37, and 92.31 and DHHS Grants Policy Statement

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Award Recipients are encouraged to consider the following: NFPA 101 Life Safety Code (2000 edition) AIA Guidelines for Design and Construction of Hospital and

Health Care Facilities (2009 edition) Sustainable design practices for both renovation and

construction– Green Guide for Health Care http://www.gghc.org/ – Leadership in Energy and Environmental Design principles

(LEED) http://www.usgbc.org/ Sustainable Equipment Purchases

– Electronic Product Environmental Assessment Tool (EPEAT) Silver Rated products http://www.epeat.net

– Energy Star Products http://www.energystar.gov

Design Considerations

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Routine Reporting

Quarterly Progress Reports (starting October 1, 2012) – quarterly in EHB– Project completion status (percent complete)– Actual versus projected budget information – uses of CD-BC

grant funds– Construction Schedule

Federal Financial Report (FFR)– PMS Quarterly Cash Transaction Report– Annual submission

Federal Funding and Transparency Act Reporting (FFATA)

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Monitoring—Required

The following documentation must be submitted during the course of the project:– Project Implementation Certification (120 days from award

issue date)– Certification of Final Design (270 days from award issue

date)– Bonding Coverage Certification (270 days from award issue

date)– Construction Contract Information (270 days from award

issue date)• a copy of the selected contract, certified by the hired

architect• the formal recommendation of award • a statement of determination that the selected contractor is

not on the US General Services Administration Lists of Parties Excluded from Federal Procurement or Non-Procurement Programs (debarred list)

• if the contract is awarded to any qualified bidder other than the lowest bidder, provide proper documentation for your decision

• a copy of the award letter(s) Templates can be found at:

http://bphc.hrsa.gov/policiesregulations/capital/

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Monitoring (as necessary)

Additional documentation may be requested to verify the status of the project, such as:– Milestone chart/construction schedule– Field observation reports– Application and certificate for payment (AIA G702)– Specific documentation (such as permits and invoices) as

necessary

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Closeout and Property Reports

Closeout documentation is required within 30 days of the completion of the CD-BC project

The closeout documentation consists of the following items:– Photos of the completed project– Final budget information– Project Completion Certification

• A certificate of occupancy• A certificate of substantial completion• Property insurance

Tangible Personal Property Report (SF-428)

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EHB Help Resources

Resource Type Purpose

https://grants.hrsa.gov/webexternal/home.asp

Website

HRSA Electronic Handbooks URL

Call the HRSA Call Center at

877-Go4-HRSA/877-464-4772 or

301-998-7373(9:00 AM to 5:30 PM ET M-F)

Email: callcenter@hrsa.gov

Phone and/orEmail

For assistance accessing EHB or with user names and passwords

Do not use this for program questions

Call the BPHC Help Line at

1-877-974-BPHC

(8:30 AM to 5:30 PM ET M-F)

Email: bphchelpline@hrsa.gov

Phone and/orEmail

For program specific help and system issues

Program help by phone or email

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CD Post-Award Technical Assistance

TA call presentation materials and transcripts will be available at http://www.hrsa.gov/grants/apply/assistance/BC/

TA materials will be posted at http://bphc.hrsa.gov/policiesregulations/capital/

TA Materials include: – Submission templates – Program FAQs– Environmental review forms and compliance FAQs– Historic Preservation FAQs sheets– Procurement FAQs– Federal Interest FAQs

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