Facility Investment Program HRSA-10-029

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Facility Investment ProgramHRSA-10-029

• Post-Award Technical Assistance Call
• December 16, 2009

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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
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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
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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

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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

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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).

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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

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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

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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 Interest

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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.

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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/

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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 lt 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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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/

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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)

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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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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.

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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 mindThere 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

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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 activeindividual 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

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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
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Condition Deliverables and Due Dates
Historic Preservation Conditions Historic Preservation Conditions
Deliverable Due Date
Consult with Project Officer to determine if SHPO / THPO is required January 8, 2010
SHPO / THPO consultation February 7, 2010
Environmental Assessment Conditions Environmental Assessment Conditions
Deliverable Due Date
Consult with Project Officer regarding submitted environmental assessment January 8, 2010
Environmental assessment required March 9, 2010
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NGA Terms

• Grant-specific terms
• Program terms (including Recovery Act terms)
• Standard terms
• Reporting Requirements

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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

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Term Special Consideration

• 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)

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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)

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RolesC80 Project Officer

• Monitor conditions
• Review of revised schematics and concept / site
  plans
• Assist with pre-implementation
• Ongoing monitoring and technical assistance
• Closeout

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RolesC80 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

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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 informationuses
  of FIP grant funds
• Earned value management (for grants over 1
  million)
• Financial Status Report (FSR)

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FIP MonitoringRequired

• 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

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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)

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C80 Grant Handbook

• A new grant handbook for the C80/FIP grant has
  been created in the grantees 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.a
  sp?hFgrants_managementHowToAdd

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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

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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.go
  v/webexternal/help/hlpPage.asp?hFgrant_handbook_a
  dminister

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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(900 AM to 530 PM ET M-F) Email callcenter_at_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 Desk at 1-301-443-7356(830 AM to 530 PM ET M-F) Email BHCMISys_at_hrsa.gov Phone and/orEmail For program specific help and system issues Program help by phone or email
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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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