Right Column

Frequently Asked Questions - RFA 07-03

More Frequently Asked Questions — 2/19/08

1. Will applicants be asked to comment on the staff analysis before it is sent to the Facilities Working Group (FWG) (prior to the FWG open meeting on April 4-5), or will applicants be asked to comment on the FWG recommendation prior to its submission for consideration by the ICOC? Or both?

   CIRM Answer: Applicants will be provided with a copy of the draft staff analysis and will be asked to provide written comments on the analysis prior to the FWG meeting.  These same written comments will be made available to the ICOC and to the public prior to its meeting to consider Part 2 of the Major Facilities RFA.  CIRM is not requesting any additional comments from the applicants prior to the ICOC meeting.

2. Will applicants be able to make presentations to the FWG or the ICOC addressing their applications?

   CIRM Answer: The review process for the Major Facilities RFA adopted by the ICOC does not provide for applicants to make presentations to the FWG or to the ICOC.  Both the FWG and the ICOC have historically provided the opportunity for public comment at their meetings and will continue to do so, but will not designate additional time for special presentations. The maximum length of public comments to the ICOC is 3 minutes.

3. The instructions say that in order for land to be counted as leverage cash would have to be spent. So, does donated land count as leverage?

   CIRM Answer: No.  The CIRM policy is that for land costs to count as leverage, the institution must make, or have made, an outright purchase of land for the purpose of developing the CIRM-funded facility.

4. In the design/build process, fees for design are included in the design/build team's construction contract amount. Do applicants using design/build need to extract these fees and list them as design costs in the budget?

   CIRM Answer: Yes. In order for CIRM to compare costs and determine the allowable amount of leverage funds, we need to understand the amount of funds being budgeted for construction costs separate and distinct from the amount being budgeted for internal overhead and design costs. ; If these costs are combined in the contracts being issued under the chosen delivery method, applicants need to separate those costs in displaying the budget.

5. The draft application says that applicants should assume that the Notice of Grant Award (NGA) is signed on July 1, 2008; however, the sample schedule form shows the applicant signing the NGA on September 1, 2008. Which date is correct?

   CIRM Answer: The revised schedule template included in the most recent version of the application (February 7, 2008) shows a tentative date of July 1, 2008 reflecting CIRM’s current projected schedule for issuing the NGAs. 

6. In Section 8 C, is gross square feet and assignable square feet information to be taken from the drawings for the listed categories of space?

   CIRM Answer: No. Gross square feet and assignable square feet should be calculated for the total project; then indicate how the assignable area breaks down into the categories noted. Then add any additional categories of use that are applicable to the project (e.g., vivarium space).

7. Can applicants use state funds for matching and/or leverage funds?

   CIRM Answer: CIRM funds may not be used for matching or leverage funds (e.g., equipment funded by a previously approved CIRM grant). Other state funds that are included as part of the capitalized cost of the project may be used as matching or leverage funds. Funds used for operations are not to be included as matching or leverage funds.

8. Can the full set of drawings be provided in the electronic version?

   CIRM Answer: Yes, for ease of submission, the electronic version of the drawings may be a full set. Hard copies of the drawings should be limited to the set of pages that provides an understanding of the floor plan and functional layout of the spaces.

9. Do institutional funds used for furnishings count as matching or leverage funds?

   CIRM Answer: No. CIRM defines Group 2 equipment in the Grant Administration Policy as inventorial equipment items costing over $5,000. Paragraph 4 (Application Narrative) Section 3 F of the instructions indicates that Group 2 equipment for the Major Facilities is movable scientific equipment costing over $5,000. Items costing less than $5,000 (non-inventorial equipment) are considered operating expenses and would not be considered as matching or leverage funds. Similarly, non-scientific equipment items costing over $5,000 are not eligible for matching or leverage funds.

10. The calculated fields in the drawdown template do not seem to be correct. Are applicants required to use the provided drawdown template or can institutions use similar standard drawdown templates?

    CIRM Answer: An updated template has being posted that corrects the problem.  Applicants may use their own drawdown template, arraying information in a similar format, provided that all the information contained in the CIRM template is shown in the display.

Questions for CIRM Regarding the Part Two Major Facilities Application — 1/25/08

1. Who is eligible to submit a part 2 application?

   The following organizations were approved by the ICOC to proceed to the Part 2 application process. CIRM Institutes
   San Diego Regenerative Medicine Consortium
   Stanford University
   UC Davis
   UC Irvine
   UC Los Angeles
   UC San Francisco
   University of Southern California

   CIRM Centers of Excellence
   Buck Institute
   UC Berkeley

   CIRM Special Programs
   UC Merced
   UC Santa Barbara
   UC Santa Cruz

Questions for CIRM Regarding the Part Two Major Facilities Application

1. What are the parts of the application?
   1. What budget template will be used (Project worksheet, state project worksheet, CIB, etc)?
   2. What kinds and number of schematics will be requested/allowed for the building layout?

   CIRM Answer: [None required. The Part 2 application has been posted to the CIRM web site, including templates for the project budget and project schedule.  It also indicates that drawings are to be submitted on ½ sheets 12”x15” and five sets will be needed.]

2. Will there be additional description of the scientific program?  Will there be an opportunity to update any of the programmatic information if advances have been made since the submission of part 1? Not to change any of the program, just to report on the research.

   CIRM Answer: Yes, the description of space needs and justification for the space proposed will be based on scientific program activities described in the narrative.  The emphasis should be on the program activity and not on the quality of the program that was discussed in Part 1.  Any change in factual information included in Part 1 should be included.

3. Will we be asked to indicate the program on a schematic? For example, which PIs and labs will go on each floor, where the cores will be located, etc.

   CIRM Answer:  Yes, any exhibits that will assist the reviewers in understanding the proposal are acceptable.  The space layout should clearly indicate the type of spaces to be constructed consistent with the program justification.  The specific space assignment information, such as to the names of the investigators to be assigned to what space, is not required as this can be fluid over the life of the building.  It should be clearly indicated, however, how the project will expand capacity and capabilities for stem cell research by indicating the number of investigators to be accommodated, how many are existing and how many are new investigators. Any secondary effects, such as existing space being freed-up to meet additional stem cell research needs, should be indentied.  This will be particularly important in explaining the overall functionality of the project.

4. What is included in total project cost?  (if it is possible to answer this question by referring to CIB lines to explain, that would be much appreciated)

   CIRM Answer:  Total project cost includes all costs that qualify to be capitalized consistent with usual practices of the University of California with two major exclusions-- the cost of land and the cost of financing.  Land costs may be included for purposes of determining project leverage  if the applicant can show that the institution was required to acquire land in order to provide a viable project in response to the RFA.

   For the calculation of leverage, CIRM will exclude from the project cost, the administrative costs (consisting of design and project oversight costs) that exceed 10 percent of the construction value.  The administrative cost used in this calculation would not include any costs for structural engineering or seismic safety design costs.)

5. What are the criteria to be specified for $/GSF calculations:
   1. Construction costs, e.g. including or excluding contingencies, campus construction, etc. (UC budget items #1b–f vs. #1a, general construction only)
   2. Total project costs, e.g. including or excluding capitalized interest, contingencies, Group 2 & 3 equipment, etc?

   CIRM Answer:  CIRM will evaluate the cost of the project in comparison to the goals of the RFA.  In comparing costs, the standard CIB template will calculate a cost per square foot as is typical for UC projects.  Capitalized interest cost will not be considered part of the project cost.  Group two equipment, consisting of the initial complement of equipment, may be included as part of grant-funded project based on recent ICOC action to include equipment as part of the CIRM funding.

   To further clarify, the ICOC has identified $227 million in capital funds to be allocated for RFA 07-03.  At their December meeting, the ICOC identified an additional $35 million to be devoted to RFA 07-03.  These funds will be provided from research funds.  Applicants will display the amount of CIRM funds requested as construction funds, but during the grant award process, CIRM may elect to provide equipment funding in lieu of construction funds in order to apply the $35 million to this RFA.  The decision as to which applicants will receive construction funds and those that will receive construction and equipment funds (still to be at the funding level approved by the ICOC) will be made after approval of the applications by the ICOC.

6. What are the upper and lower limits on construction and project contingencies?

   CIRM Answer: CIRM expects that project budgets will include a reasonable level for contingencies during construction based on normal budgeting practices.  This would suggest a level of between 5 and 7 percent.  In that CIRM is awarding a specific amount toward the total project, the contingency would be a factor in establishing leverage, but would not be a factor in establishing the amount of CIRM funding.

7. Can site costs, in addition to building costs, be included in leverage calculations?

   CIRM Answer: Any On-site costs for utilities and site development may be used in the calculation of leverage.  Applicants are cautioned that off-site utility and site development costs, even if required to make the facility operational, are not considered in leverage.  It is presumed that the applicant has established the project on a buildable site and any costs incurred to provide infrastructure to the site (e.g. roads, utilities, etc) that are not “on site”  would be an institutional cost not counted in the leverage.

8. What are the allowable costs and budget lines used to calculate the project overhead and design costs? This is in reference to the 10% cap on overhead and design costs that are allowed as countable towards leverage.

   CIRM Answer: The CIRM budget template indicates entries for fees and administrative costs.  Generally speaking, construction costs are the contracted costs for actual delivery of the asset.  It may include construction management services to the degree these services are incorporated into a contract under the delivery method used by the applicant.  All other costs are either design costs or administrative costs including payments to design professionals in preparing drawings and overseeing construction, the cost of inspection and testing of materials to ensure compliance with the contract, and any other costs incidental to the delivery of the project such as preparation of environmental studies.

9. How does CIRM define scope? At the signing of the NGA, is the institution committed to delivering a project of the scope described in the application?

   CIRM Answer: :  The CIRM defines the scope of the project to be the building of the asset that fulfills the programmatic objectives identified in the Part One application.  This would include consideration of the overall capacity of the building in terms of the number of PIs to be accommodated, the core laboratories required to support program activities and the ancillary space required to support these activities.  Scope is not defined as a precise amount of square footage. Applicants are encouraged to develop economies and efficiencies within its design process.  Applicants may wish to include cost reduction alternates that can be exercised addressing the type and quality of construction in the event the amount of CIRM funds granted is less than the amount requested.

   At the signing of the NGA, the applicant is committed to deliver a project that provides all programmatic objectives described in the application such as the number of PIs, core laboratories and ancillary support space within an amount of space that is at or very near to the amount proposed in the application. At that time the applicant will have identified additional institutional funds or exercised cost reduction alternates related to type and quality of construction to cover the difference between the amount of funds requested and the amount of funds approved by CIRM.

10. For gift pledges not received prior to construction, we obtain bank loans to cover construction costs.  When does CIRM consider matching funds to have been spent?

    CIRM Answer: CIRM will consider matching funds and leverage a cash basis.  Depending on the cash-flow option negotiated for CIRM funding, matching and leverage funds may need to be fully expended before CIRM funds will be allocated or CIRM funds may be fully disbursed prior to matching and leverage funds at a “discounted” basis.  Regardless of the cash flow option that is negotiated, costs incurred by the applicant in financing the project, either through debt or interim financing to cover unrealized gift funds, will not be counted by CIRM as matching funds or leverage.

11. Regarding Item 2 of Payment Procedure paragraph: When does the quarterly basis begin?  After proof of certification or at the beginning of construction or at some other point in time?

    CIRM Answer:  CIRM will negotiate a payment schedule consistent with the Facilities GAP.  Quarterly payments will be based on a calendar year, with requests received by January 2, April 1, July 1 and October 1 to be processed by CIRM for payment.

12. Are covered ramps and walkways 100% countable towards gsf calculation?

    CIRM Answer: CIRM will rely on the definitions and standards developed by the federal government in determine space use for higher education institutions.  The Web site for the Postsecondary Education Facilities Inventory and Classification Manual is at:

     http://nces.ed.gov/pubs2006/ficm/index.asp

    The specific issue related to covered and unenclosed space is addressed in questions and answers section at:

    http://nces.ed.gov/pubs2006/ficm/content.asp?ContentType=Section&chapter=3&section=4