December 2009 1
Facility Investment ProgramHRSA-10-029
Post-Award Technical Assistance Call
December 16, 2009
December 2009 2December 2009 2
Objectives
Describe the outcome of the Facility Investment Program (FIP) applications
Discuss critical compliance requirements Review the terms and conditions of the FIP
Notice of Grant Awards (NGA) Explain the process for FIP post-award
submission and review
December 2009 3December 2009 3
FIP Stats
On December 9, HRSA awarded $508.5 million in FIP awards to 85 health center grantees
The funded applications includes 108 projects are proposed at– 80 or new/expanded health center sites (construction projects)– 28 improved/upgraded health center sites
(alteration/renovation projects) The breakdown of the number of projects per funded
application– 1 project = 65– 2 projects = 17– 3 projects = 3
December 2009 4December 2009 4
ARRA General Requirements
New grant number: C80 Separate PMS sub-account: ARRAFIP-C80-10 Funds must be accounted for and reported
separately (from section 330 funds and from other ARRA funds)– Applicants must not co-mingle or pool Federal, State,
or local funds– If other sources of funding exists, FIP funds should be
drawn down proportionately to approved total costs Quarterly reports
December 2009 5December 2009 5
Review of FIP Applications
The Division of Independent Review managed the objective reviews by an Objective Review Committee (ORC)
FIP proposals were subject to internal and technical reviews (as applicable):– Completeness– Eligibility– Service Area Overlap– Architectural & Engineering Reasonableness– Federal Interest– Environmental Review– Historic & Cultural Preservation
December 2009 6December 2009 6
Types of FIP Projects
Health centers proposed up to three of the following types of FIP projects
– Alteration/renovation: includes work required to modernize, improve, and/or change the interior arrangements or other physical characteristics of an existing facility or install equipment. This type of project should not increase square footage.
– Construction (new site or expansion of existing site): includes—(i) adding a new structure to an existing site that increases the total square footage of the facility; and (ii) permanently affixing structure (e.g., modular units, prefabricated buildings) to real property (i.e., land).
December 2009 7December 2009 7
Ineligible FIP Costs
Costs incurred prior to February 17, 2009
Any costs related to a Capital Improvement Program (CIP) project awarded under HRSA-09-224. FIP awards must not be used to replace any funds that have been awarded for a CIP project. As a reminder, the proposed FIP project must be separate and distinct projects from what was funded under the CIP initiative
Operating costs (e.g., funding direct services, clinical full-time equivalents, rent, mortgage payments, refinanced credit facilities)
Land or facility purchase costs are not eligible uses of FIP grant funding. Eligible projects may contain land/facility purchase costs; however, individual project budgets must show sufficient resources other than FIP funding to cover those expenses.
Per section 1604 of the Recovery Act: None of the funds appropriated or otherwise made available under the Recovery Act may be used by any State or local government, or any private entity, for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool
December 2009 8
Equipment Purchases
Equipment should only be purchased in conjunction with an approved FIP alteration/renovation or construction project
Equipment must be used at the approved project site
Grantees should have provided a detailed equipment list to identify the equipment to be purchased with the FIP project; final equipment list is required
Equipment must be maintained, tracked, and disposed of in accordance with 45 CFR Parts 74.34 and 92.32
December 2009 8
December 2009 9
Federal Interest
The Federal government always retains interest in property constructed, acquired, or improved with Federal funds– For ALL construction projects, applicants must file a Notice of
Federal Interest (NFI)– For alteration/renovation projects, Federal Interest exists for the
useful life attributable to the alteration/renovations funded under this grant
• Grantees are required to file a NFI for projects with allowable costs more than $500,000 (excluding moveable equipment)
• Grantees are not required to file a NFI for alteration/renovation projects with total project costs less than $500,000, excluding moveable equipment costs – Federal Interest still exists– Must maintain documentation regarding protection of all
Federal InterestDecember 2009 9
December 2009 10December 2009 10
Leasehold Improvements
If the project site is leased and it is:– A construction project, or– An alteration/renovation project with a net project cost (total project cost
less moveable equipment costs) greater than $500,000; The grantee must provide a signed Statement of Agreement from the facility
owner (either with the application or in response to NGA condition) that addresses the following components:
– Approval of the scope of the FIP project.– Agreement to provide the applicant health center reasonable control of the
project site for at least 10 years.– Agreement to file an NFI in the land records of the local jurisdiction before
the project begins. For all leased property, the requested FIP project amount can not exceed 25
percent of the fair market value (FMV) of the property or 50 percent of the remaining lease, unless the remaining lease is for 30 years or longer. – Additional property value/lease documentation may be requested as a
condition on the NGA.
December 2009 11
Environmental and Historic Preservation Requirements
An Environmental Assessment (EA) under the National Environmental Policy Act (NEPA) is a concise public document that provides sufficient evidence and analysis for determining whether HRSA should issue a Finding of No Significant Environmental Impact (FONSI) for proposed FIP projects
The National Historic Preservation Act (NHPA) is intended to protect and preserve historical and archeological sites within the US; HRSA grant funding that is used for construction and alteration/renovation projects is subject to Section 106 review
While some applicants submitted draft EAs and Section 106 consultation letter from the State Historic Preservation Officer, additional information may still be required; please carefully review your NGA
Technical assistance on these two topics is available at http://bphc.hrsa.gov/recovery/fip/
December 2009 11
December 2009 12
Procurement Rules
Grantees are reminded to comply with procurement regulations that apply to Federal grantees
– Technical assistance on this topic is available at http://bphc.hrsa.gov/recovery/fip/
ALL goods and services greater than $100,000 must be competitively bid
Remember to include ARRA specific terms on contract bid and award documents.
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
December 2009 12
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Wage Determination
All health centers receiving funding through ARRA are required to comply with the Davis-Bacon Act
Davis-Bacon and Related Acts (DBRA) requires all contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for construction, alteration, or repair (including painting and decorating) to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area
Prevailing wage rates and fringe benefits are determined by the Secretary of Labor for inclusion in covered contracts
Technical assistance on this topic is available at http://bphc.hrsa.gov/recovery/fip/
December 2009 14
Use of FIP Space
Grantees must use FIP funding to renovate/construct the space that will be utilized directly by the health center to support health center operations consistent with the 330 program*
FIP funds may not be used to support space which will be utilized and/or rented by other entities*
Utilizing Federal funds to augment appropriations (e.g., charging rent for space constructed with Recovery Act funds) is an ineligible use of Federal funds
Use of the space for mortgage/financing, or change in use of space (leasing, sale, etc.) must have prior approval from HRSA
*If other sources of funding are contributing to the project, then the proportion of the space supported with non-FIP funds may be rented to other entities or support non-330 activities (e.g., if 30% of the total project is supported by non-FIP funds, then 30% of the space may be rented out)
December 2009 14
December 2009 15
Other Policy Requirements
FIP projects must:
– Be compliant with Americans with Disabilities Act (ADA) and other accessibility requirements
– Be compliant with all applicable Federal, State, and local codes and ordinances for the type of facility proposed AND
– Have the necessary permits in place before the renovation/construction is undertaken
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December 2009 16
Starting Projects
Grantees must carefully review all terms and conditions of the NGA
Grantees must respond to conditions and HRSA must issue a revised NGA that clearly approves the project and lifts conditions before ground can be broken on a project
Prior to receiving final HRSA approval, grantees may only incur costs related to preparation/preliminary work – Site plans, architectural and engineering
schematics, environmental and historic preservation requirements, etc.
December 2009 16
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Understanding the NGA
Project/budget period for the FIP = 12/09/09 through 12/08/11
FIP activity code = C80 Recipients need to keep in mind—There is no
ongoing support of FIP grant activities after the end of the 2-year project/budget period
Contact the assigned Project Officer – For additional details and clarification on resolving
conditions– To request additional time to submit post-award
deliverables
December 2009 18December 2009 18
Resolving Conditions on FIP Awards
HRSA has posted a document available online at http://bphc.hrsa.gov/recovery/fip/ to assist grantees with resolving conditions on FIP awards
The submissions functionality with the Electronic Handbook (EHB) is active—individual deliverables can be uploaded to each corresponding condition
Revised NGAs will not be issued until all applicable conditions have been met for each FIP project
December 2009 19
Condition Deliverables and Due Dates
Deliverable Due Date
Schematic drawings January 8, 2010
Revised budget January 8, 2010
Revised equipment list January 8, 2010
Capitalization statement January 8, 2010
Site / concept plan January 8, 2010
EID checklist January 8, 2010
NFI Before FIP work begins
Lessor statement of agreement January 8, 2010
Lease / property documentation January 8, 2010
December 2009 19
December 2009 20
Condition Deliverables and Due Dates
Environmental Assessment ConditionsDeliverable Due Date
Consult with Project Officer regarding submitted environmental assessment January 8, 2010
Environmental assessment required March 9, 2010
Historic Preservation ConditionsDeliverable Due Date
Consult with Project Officer to determine if SHPO / THPO is required January 8, 2010
SHPO / THPO consultation February 7, 2010
December 2009 20
December 2009 21
NGA Terms
Grant-specific terms Program terms (including Recovery Act terms) Standard terms Reporting Requirements
December 2009 22December 2009 22
Proposed New Sites
HRSA has processed most of the new site requests proposed through FIP applications
– Approved site address is listed in the NGA
– Please review your NGA to find out if additional site information is needed
Grantees are reminded that they are required to verify the new site is operational within 60 days of the project completion
December 2009 23
HRSA may take action to withdraw the approval and funds for the approved FIP project(s)– the identification of previously undocumented environmental or
historic preservation issues that lead the HRSA to conclude a construction project cannot be carried out;
– the conclusion that the project cannot be completed as proposed (e.g., information submitted through the required ARRA reporting indicates that the grantee's progress is sufficiently noncompliant with the approved scope, costs or timeline presented in the application and that completion as proposed will not be possible); or
– the conclusion that the grantee is noncompliant with a requirement of the application guidance (e.g., the FIP project is not separate and distinct from a CIP project; grantee does not resolve concerns to the satisfaction of HRSA)
Term: Special Consideration
December 2009 24December 2009 24
Next Steps and Timelines
Responding to terms/conditions Releasing terms/conditions Draw down of funds
Recipients can proceed with preliminary FIP work but must wait to break ground until the project
has been cleared by HRSA (preliminary work includes site plans, architectural and
engineering schematics, environmental and historic preservation requirements)
December 2009 25
Roles—C80 Project Officer
Monitor conditions Review of revised schematics and concept / site
plans Assist with pre-implementation Ongoing monitoring and technical assistance Closeout
December 2009 26
Roles—C80 Grants Management Specialist
Review revised budgets, capitalization threshold, Federal Interest, lease documentation
Process prior approval requests Approve Project Director changes Ongoing monitoring and technical assistance Closeout
December 2009 27December 2009 27
FIP Reporting
Health Center Quarterly Report (HCQR) and Section 1512 report for FIP is due January 10– TA resources are available at http://bphc.hrsa.gov/recovery/hcqr/
Impact of FIP funding– Number of new/improved sites– Projected number of health center jobs created and retained– Projected number of construction-related jobs created – Project completion status (percent complete)– Actual versus projected budget information—uses of FIP grant
funds– Earned value management (for grants over $1 million)
Financial Status Report (FSR)
December 2009 28
FIP Monitoring—Required
The following documentation must be submitted during the course of the project– Pre-certification letter (30 days from date A/E services are secured)– Certification of final design letter (30 days from date design documents are
completed)– Bonding and insurance coverage certification (30 days from scheduled
contract award date)– Contract information (30 days from contract award 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
U.S. 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)
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FIP Monitoring (as necessary)
Additional documentation may be requested to verify the status of the project:
– Photos of current status
– Milestone chart/construction schedule
– Field observation reports
– Application and certificate for payment (AIA G702)
– Specific documentation (such as permits and invoices) as necessary
December 2009 29
December 2009 30December 2009 30
FIP Closeout Report
A closeout report is required within 90 days of the completion of the FIP project
The closeout report must include the following items:– Photos of the completed project, including “before”
photos – A final budget– A final equipment list– A certificate of occupancy– A certificate of substantial completion– Property insurance– Earned value management (for grants over $1 million)
December 2009 31
C80 Grant Handbook
A new grant handbook for the C80/FIP grant has been created in the grantee’s portfolio in EHB
The project director needs to ensure he/she has added the FIP grant to the portfolio and that the correct grantee staff are assigned to roles and functions in the C80 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
December 2009 32
Electronic Document Submissions in EHB
For FIP, grantees should submit all documents required as a condition of award on the NGA directly to EHB
HRSA Program or Grants Office Personnel may also request other information through the EHBs
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
A presentation on EHB 2.0, including specific details on electronic submissions, is available at http://bphc.hrsa.gov/recovery/fip
December 2009 33
Grantee EHB Roles and Responsibilities
The Project Director (PD), whose name appears on the Notice of Grant Award (NGA), is responsible for managing access to non-financial reports for a grant
Other roles and privileges: https://grants.hrsa.gov/webexternal/help/hlpPage.asp?hF=grant_handbook_administer#
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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; 301-998-7373(9:00 AM to 5:30 PM ET M-F)
Email: [email protected]
Phone and/orEmail
For assistance accessing EHB or with user names and passwords
Do not use this for program questions
Call the BPHC Help Desk at
1-301-443-7356(8:30 AM to 5:30 PM ET M-F)
Email: [email protected]
Phone and/orEmail
For program specific help and system issues
Program help by phone or email
December 2009 35December 2009 35
FIP Post-Award Technical Assistance
Technical assistance materials will be posted at http://bphc.hrsa.gov/recovery/fip/ – TA call presentation materials and transcripts– Frequently asked questions– Sample budget justification– Draft Environmental Assessment guidance– Section 106 delegation and consultation– Procurement– Wage determination requirements– Federal Interest
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