In order to be ready to start on our fire station project, we have already hired an architectural firm and a construction manager. Specific to the timing of contracts, if successful in this grant process, what items would be eligible or ineligible for reimbursement? In particular, if we do our due diligence to be “shovel ready” by early summer, are we jeopardizing our ability to receive full reimbursement for items that would be paid or budgeted for prior to the application of this grant?
Any pre-award costs incurred are not reimbursable under the grant. The cost incurred for fees paid to the architect to design the building pre-award are not eligible. Signing a contract with a construction manager to organize and facilitate the pre-construction work and then manage the project is fine. The costs incurred for paying the manager PRIOR to award are not eligible, but his/her post-award costs are eligible. The costs to pay the architect to modify the design of the structure to include sprinklers would be eligible if incurred after award.
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The program guidance encourages applicants to be ready to start their projects as soon as possible after being notified of the award. But, the "Grantee Responsibilities" section of the program guidance also states all bidding activities must be conducted during the grant’s period of performance, i.e., after award. These statements or requirements seem to be contradictory. In order to be ready to start our project as soon as after notification of award, can we sign a contract with a contractor?
DHS' concern regarding the conduct of the procurement prior to award is the procurement may not have satisfied the competitive requirements outlined in the program guidance and Federal procurement regulations. However, due to the need to expedite these projects, we will not discount or disallow contracts entered into prior to award if we are satisfied the contract was properly competed in accordance with the program guidance and 44 CFR Part 13. Grantees may be required to provide their procurement documentation to show that competition was in fact instilled in their process.
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What is considered a cost overrun?
Costs in excess of the contracted price.
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Can the department or Authority Having Jurisdiction (AHJ) oversee the General Contractor and/or their subs to facilitate the completion of the project in order to save money on the project management costs? Or are we required to hire a general contractor for that task?
The practice of using town employees to oversee construction projects is allowable. However, if you plan to charge the grant for salaries of any employees, you must include the expense in your application for the panelists to consider those expenses.
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If an architect consults on the application, are they prohibited from participating in the project post-award?
No. They are not disqualified, but they must enter the process after award as set forth in the procurement requirements. They would have to be selected through a competitive bidding process.
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We have the property, plans for a station and bids for cost analysis. Our project is shovel- ready to start. We have also secured funding at a local bank, but if we receive the grant, we do not need the bank loan. We will hire 12-15 new full-time career firefighter paramedics. Will we be eligible for funding since this project is slated as a go in an area where we need the station to decrease current response time and to meet NFPA standards?
If your community and your bank are willing to delay the start of the project for several months, your project is eligible as long as you DO NOT start the construction prior to award. The environmental assessment must be completed before your project can commence. DHS will inform you when you can start your project.
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