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Building Procurement Fitness Building Procurement Fitness Construction and Facilities Contracting Shirley McNutt, VCCO, VCO Building Procurement Fitness What is construction? What falls out when you shake the building upside down? What falls out is considered FF&E and not construction.

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Building Procurement Fitness

Building Procurement Fitness

Construction and Facilities Contracting

Shirley McNutt, VCCO, VCO

what is construction

What is construction?

What falls out when you shake the building upside down?

What falls out is considered FF&E and not construction.

Building Procurement Fitness

what is construction4

What is construction?

Definition of Construction –

Includes new construction, reconstruction, renovation, restoration, major repair, demolition, improvements and all similar work upon buildings and ancillary facilities owned or to be acquired by the Commonwealth, including any draining, dredging, excavation, grading or similar work upon real property.

Building Procurement Fitness

what are improvements

What are Improvements?

Alteration of interior space arrangement and other physical characteristics, such as utilities, so that it may be more effectively used for its present designated functional purpose;

Conversion of interior arrangement and other physical characteristics, such as utilities and fixed equipment installed on and made a part of the facility or structure so that it may be effectively utilized for a new functional purpose;

Renovation of most or all of a facility or structure, or an existing mechanical system for the purpose of modernizing the use or capability of such asset in order that it may be effectively utilized for its designated functional purpose or to comply with current code


Restoration of a facility or structure to the maximum extent possible to its former or original state (historic property);

Building Procurement Fitness

what is repairs

What is Repairs?

Repair or replacement of damaged or inoperable equipment such as elevators, furnaces, plumbing fixtures, air conditioning and ventilation equipment.

Repair or replacement of components of a plant such as masonry, ceilings, floor, floor coverings, roofs, sidewalks, parking lots, exterior lighting, boilers, and air conditioners;

Repair or replacement of existing utility systems, such as electrical, water and sewer, heating & cooling. When replacement of components of utility systems is required (e.g. transformers, distribution panels, cables, etc.), new components should be sized to account for future growth if the existing components are operating at or near capacity.

Correction of deficiencies in property and plant that are required to conform with building and safety codes or those regulations associated with hazard corrections, including asbestos hazards when incidental to repair/maintenance.

Building Procurement Fitness

what is a capital project

What is a Capital Project?

For agencies of the Commonwealth of Virginia, a Capitol Project is generally defined as a project whose total budget exceeds $500,000. This budget is inclusive of design fees, construction, equipment, project management, etc.

A Capital Project requires approval of the Governor or designee.

These projects require a CO-2 for funding.

Building Procurement Fitness

how do we buy construction

How do we buy construction?

Building Procurement Fitness

sealed bids

Sealed Bids

Here are the items that make up a sealed bid under $500,000:

Sketches, design documents, or written scope

Invitation for Bids

Pre bid conference

Bid Form

Instructions to Bidders

Terms and Conditions of the Contract

If over $100,000 estimated value, bid bond forms and payment and performance bond forms

Building Procurement Fitness



We use eVA and the VBO

We use the Black Pages

We use SWAM organizations

We use plan rooms

We use the newspaper

We use word of mouth

We sponsor workshops

Building Procurement Fitness

bidding and award process

Bidding and award process

Addendums issued 10 days before bids due

Hold pre bid conference

Emphasize withdrawal of bids process

Review bid forms (exercise)

Bid tab

Award on the VBO and attach bid tab

Under $100,000 issue eVA order

Greater than $100, 000 issue CO9 and eVA purchase order

Building Procurement Fitness



Inspection services and other non professional construction related services

Energy performance management

Facilities assessments

Environmental assessments


Testing and Balancing

Building Procurement Fitness

inspection services

Inspection Services

Asbestos containing materials

Lead paint

General construction inspection services

Clerk of the works

Project Manager

Cost estimators


CAD operators

Interior designers

Building Procurement Fitness

other services

Other Services

Environmental assessments

Facility assessments

Testing and balancing


Building Procurement Fitness

energy performance contracting

Energy Performance Contracting

Chiller and cooling tower replacements

Co-generation plants

New heating plants

Replacing meters


Window and envelope treatments

Water fixture replacements

Maintenance operations training

Building automation


Building Procurement Fitness

how to implement a project

How to Implement a Project

Consider your financing options

State agency – MELP from Treasury

Public bodies – municipal bonds

Other options available

Lease purchase

Third party financing

Outright purchase


Building Procurement Fitness

elements of the energy contract

Elements of the Energy Contract

Addresses the financing

Methods and savings

Type of financing

Owner obligations

Addresses the construction schedule

Addresses the bidding process

Addresses the maintenance

Addresses measuring the savings

Building Procurement Fitness

synopsis of the contract process

Synopsis of the Contract Process

Selection of the ESCO for the project

The public body will select 3 or more ESCOs from the pool to provide an approach to the agency project. The selection should be based on the ESCO experience, ability to respond and potential for funding model.

This phase does not cost the public body anything; we call this “the back of the envelope proposal”. This provides the public body an analysis to determine if the cost investment is present for the energy savings.

The public body will interview one or more ESCOs and negotiate a contract with them for performing the formal energy audit, developing the construction documents, performing project management, developing the financing model and developing the measurement and verification of the implemented energy savings.

Building Procurement Fitness

synopsis of the contract process20

Synopsis of the Contract Process

Technical Energy Audit

This is the phase where the ESCO performs the energy audit

An MOU is established for the audit

During the audit phase, the ESCO will perform a complete evaluation of the energy projects being recommended and perform a modeling exercise of the projected savings and timeframe

An energy baseline is established along with the measurement standards

The public body makes a determination to go forward. If the savings are not projected to cover the expense, then the public body will pay the ESCO for the detailed technical audit.

If the public body goes forward with the project, then the financing needs to be defined.

Building Procurement Fitness

synopsis of the contract process21

Synopsis of the Contract Process


State Agency

If estimated value of the project is greater than $3 million, then the project requires capital project authorization

If the project is under $3 million then the project is handled as an operating expense

Financing requires review of the Treasury Board

Building Procurement Fitness