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Grant Compliance Trainingfor Sub-Recipients of ARRA Funds

October 5, 2010

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American Recovery & Reinvestment Act (ARRA)

ARRA has goals to stimulate the economy, create jobs

State Energy Plan (SEP) program - $42.1 million

Energy Efficiency & Conservation Block Grant (EECBG) $9.5 million

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ARRA

Important:

Federal funds come with federal requirements

You must be transparent in all activities

You must document EVERYTHING

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ARRA

Requirements continue to evolve. You are responsible for current and future requirements

Read your contract Read your e-mails

Keep your project manager informed on problems and progress. All change orders must be approved by your project manager.

Your project manager’s name was provided in the e-mail that included your contract.

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ARRA

To date:

228 SEP award recipients for $36.4 million

64 EECBG award recipients for $8.7 million

Projects range from $699 to $2 million

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What will we cover?

General requirements

Bidding/contracting

Labor standards

Getting started

Reimbursement process

Reporting

Project Closeout requirements

Post-project follow-up

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General requirements

Active DUNS/Central Contractor Registration (CCR)

Oregon WorkSource

Reimbursement basis only for Exhibit A-eligible expenses

Whistle blower

Signage – more information in Tool Kit

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General requirements

Photos – before and after

Tool Kit – sent to you, recently updated

Publicity – e-mail draft to Ann Grim at ann.grim@state.or.us before you send out a press release so we can help you ensure information and wording is accurate.

Huntington Elementary SchoolHuntington

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Getting started

Prior to committing or expending grant funds, take care of: NEPA – National Environmental Policy Act

SHPO – State Historic Preservation Office

Final commitment of other funds needed: Business Energy Tax Credit? Utility assistance? Energy Trust funding?

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NEPA

Oregon Dept. of Energy has a NEPA categorical exclusion for most public school, public facility and industrial projects

If your specific project does not fall under the NEPA categorical exclusion, your project manager will call you

If NEPA clearance form is required, it must be approved by US DOE before you start your project

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SHPO

If building is on the National Register of Historical Places OR is 50 years or older:

SHPO has issued a Programmatic Agreement (PA) to exempt SHPO-eligible buildings for a number of energy project activities

If your activities do not fall under the PA, you must get SHPO clearance approval

Oregon SHPO Clearance Form is available at http://www.oregon.gov/ENERGY/Recovery/docs/SHPOClearanceForm.pdf

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SHPO

SHPO clearance form will require:

Photos of building

History of all past changes to structure

Description of proposed work including materials to be used

How materials will be installed

What historic materials will be retained, restored, replaced, or covered

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BETC

Business Energy Tax Credit (BETC):

Apply before you sign with a contractor.

Discuss with your project manager ASAP

Remember your ARRA award funds must be deducted from your eligible project costs because it is a federal grant (BETC rules)

Your tax credit is a percentage of your eligible costs

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Other incentives

Bottom line – A project owner can not receive more than 100% of the project costs fromcombination of ARRA award and other incentives

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General requirements

Eligible expenses appear in contract scope-of-work Contract does not allow administrative costs

Project management costs are allowed if part of your scope-of-work and budget

City of Klamath FallsGeothermal

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Getting started

Your project manager will set you up on database

You will complete past 12-months of energy usage. (See Section 5 of Tool Kit.)

Project owner must mail in copies of all required federal, state, and/or local permits

Jackson County FairgroundsCentral Point

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Bidding/contracting

Acknowledge US DOE and Oregon Dept. of Energy involvement on all contracts and any plans. Wording is in Tool Kit.

Hatfield Marine Science CenterOregon State UniversityNewport

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Buy American requirement

Requires that all the iron, steel, and manufactured goods used in a public building or public work projects are produced in the United States.

There is no requirement with regard to the origin of components or subcomponents in manufactured goods used in a project, as long as the manufacturing occurs in the United States.

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Buy American certification required during project closeout (Form 6-1a).

Review with your contractor early so all requirements are met.

Buy American requirement

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Buy American requirement

US DOE has issued multiple waivers.

Current list is in the Tool Kit

International trade agreements are not applicable.

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If equipment does not meet Buy American Act

Project owner and contractor will complete Buy American waiver form with information on prices and availability (or non-availability) of specific item. Waiver form available on US DOE website.

www.eere.energy.gov/recovery/buy_american_provision.html

Waiver form must be approved by US DOE before you make a purchase or start your project.

Buy American requirement

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Labor standards

Any project of $2,000 or more employing laborers and/or mechanics is subject to Davis-Bacon Act

Public projects over $50,000 are subject to BOLI

Must pay higher of Davis-Bacon or BOLI

Do not use the combined rate book from BOLI Project owner must ensure all appropriate documents are attached to bid documents and contracts and are posted at job sites

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Labor standards

All contractors and sub-contractors must receive copy of Exhibit 4-E. Attach to contracts. Document!

All contractors and sub-contractors must be apprised of appropriate sections in Exhibit B (federal requirements) and Exhibit D (ARRA requirements). Attach to contracts. Document!

All contractors and sub-contractors must complete and sign Form 4-1 (A-C) before construction begins. Forward a copy to your project manager.

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Labor standards

Project owner must:

Designate an individual responsible for labor compliance Apply Davis-Bacon requirements properly

For help – call your project manager

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Labor standards

If using a formal competitive bid process, the appropriate Davis-Bacon wage determination and BOLI reference must be part of bid documents and final contract documents.

You must “lock in” Davis-Bacon final wage determination 10 days before end of bid period and document in your files.

If not using a formal competitive bid process, you need to document how you informed your contractor of the requirements and ensure wage determination is a component of your contract with them.

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Labor standards

All contractors and sub-contractors must complete and sign Form 4-1 (A-C) before construction begins.

Forward a copy to your project manager.

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Labor standards

All project owners must complete and sign Form 4-5 before construction begins.

Forward a copy to your project manager.

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Labor standards

Verify contractors are not on State Ineligible Contractor List:http://www.oregon.gov/BOLI/WHD/PWR/Jan10/PWR_Jan10Index2.shtml

  Verify that contractors are not on the “Federal Excluded Party List” http://epls.arnet.gov

Document verifications on contractors on Form 4-5 

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Labor standards

Verify Oregon Construction Contractors Board (CCB) registration for the prime contractor and ensure prime contractor is checking all the sub-contractors. See Web site:https://ccbed.ccb.state.or.us/ccb_frames/consumer_info/ccb_index.htm

Verify contractor can work on public projects. See Web site: http://www.oregon.gov/CCB/public_works.shtml#Not_Qualified_to_Hold_Public_Contracts

  

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Labor standards

Project owner is responsible for:

Informing, advising and supporting contractor compliance

Monitoring for violations, perform confidential interviews and document to files (Form 4-10)

Investigating probable violations and complaints of underpayment

We recommend pre-construction meeting to ensure all vendors understand requirements

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Labor standards

Contractor must pay laborers/mechanics weekly and forward copy of certified payroll to project owner within 7 to 10 days.

Project owner must review and begin working with contractor to make corrections if necessary.

Project owner must send certified payroll to project manager on a weekly basis within 2 days of receipt.

Tool Kit includes certified payroll form.

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Labor standards

Laborer/mechanic pay is subject to both federal and state over-time requirement

Tool Kit has more information

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Labor standards

This area of project management is very important because failure to comply and/or inattention to details can result in failure to comply with federal requirements.

Failure to comply can and does result in recipients having to pay for mistakes with their OWN funds.

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Oregon Dept. of Energy due diligence

Oregon Dept. of Energy will randomly select sub-recipients to provide copies of contracting documents

Call your project manager if you have questions

Don’t jeopardize your project!

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Reimbursement process

You request reimbursement in Web-based database.

Your project manager will assist you.

South Albany High School Albany

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Reimbursement process

Project owners need to ensure that information is accurate.

Third party project managers or consultants may enter information into database, but they may not “submit” it.

Reimbursement requests must be made monthly, but no more than 2 reimbursement requests per month.

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Reimbursement process

Invoices from vendors should include: Date Invoice number Company name and address Phone number or e-mail Date of service Units billed for (hours) Description of item including make, model number Rate per item Subtotal of charges Grand total of charges Indication that invoice has been paid-in-full (proof of payment)

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Reimbursement process

Project owners should scan and e-mail copies of all checks to vendors in addition to the vendor invoice when requesting reimbursement

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Reporting

Monthly reporting in database is required

Reporting must be completed during the last 5 business days of each month, even if no activity

Maximum of 650 characters

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Reporting

Look at the Web-based database

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Final draw requirements

Enter final reimbursement request into database

Request final closeout by e-mail to project manager

Project manager will sent you a final report form and requirements including request for - Before and after pictures - Original certified payroll - Proof of all other expenditures

Enter final total costs and jobs created in database and complete and send in all final reporting requirements

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Post-project follow up

25% of award funding is held until: - Project is complete and operating;

- Project manager has received all final report requirements; and - Project manager has issued final approval

Oregon Dept. of Energy will randomly monitor (inspect) projects

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Post-project follow up

You must report energy usage on database for 24 months after project completion

Records retention is for three years after project completion or conclusion of any audit, controversy and/or litigation

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Resources

Team Members:Paul Egbert – Acting Program ManagerJonathon Belmont – Project managerAnn Grim – CommunicationsAshley Horvat – Policy analystRebecca Sherman – Project managerShanda Shribbs – Project managerPatricia Sougstad – Administrative assistantRebecca Sweetland – Project manager

Tom Vohs – Technical leadLee Willeman – Project manager

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Resources

Oregon Department of Energy625 Marion St. N.E.

Salem, OR 97301-3737Phone: 1-800-221-8035