1. Capital Development – Building Capacity (CD-BC) Program HRSA-12-115
Notice of Award
Technical Assistance

2. Objectives
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

3. Awards
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

4. Administrative Notes HRSA Activity Code: C8A
Catalog of Federal Domestic Assistance (CFDA) number:
Announcement Number: HRSA
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

5. Projects
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

6. Ineligible Costs Costs incurred before 90 days prior to the award date
Costs that do not meet federal procurement guidelines as listed in 45 CFR – 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

7. Beginning Projects 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

8. Grant Handbook
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:

9. 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

10. 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

11. 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 11

12. 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.

13. Federal Interest
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

14. 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.

15. Leasehold Improvements
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

16. Environmental and Historic Preservation Conditions
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

17. Use of Space
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

18. 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
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

19. 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 , and and DHHS Grants Policy Statement

20. Design Considerations
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
Leadership in Energy and Environmental Design principles (LEED)
Sustainable Equipment Purchases
Electronic Product Environmental Assessment Tool (EPEAT) Silver Rated products
Energy Star Products

21. 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)
PMS FFR (SF-425) Quarterly (identifies cash expenditures against authorized funds for the grant. Failure to submit the report may result in inability to access funds. - must be filed within 30 days of the end of each calendar quarter
FFR (SF-425) - required within 90 days of the end of each year of the three-year project period
FFATA – Single source grants, subgrants=>$25,000

22. 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:

23. 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

24. 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)

25. EHB Help Resources Resource Type Purpose
asp
Website
HRSA Electronic Handbooks URL
Call the HRSA Call Center at
877-Go4-HRSA/ or
(9:00 AM to 5:30 PM ET M-F)
Phone and/or
For assistance accessing EHB or with user names and passwords
Do not use this for program questions
Call the BPHC Help Line at
BPHC
(8:30 AM to 5:30 PM ET M-F)
For program specific help and system issues
Program help by phone or 25

26. CD Post-Award Technical Assistance
TA call presentation materials and transcripts will be available at
TA materials will be posted at
TA Materials include:
Submission templates
Program FAQs
Environmental review forms and compliance FAQs
Historic Preservation FAQs sheets
Procurement FAQs
Federal Interest FAQs