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Capital Projects What is a Capital Project? What is a Public Works Project?

Discover the regulations governing capital projects in Louisiana, including the criteria for projects to qualify for capital outlay, procurement rules, and the distinction between major and minor projects. Learn about public works projects, statutory definitions, and the significance of permanency in capital projects. Gain insights into the dollar thresholds for capital outlay and the different means of financing such projects.

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Capital Projects What is a Capital Project? What is a Public Works Project?

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  1. Capital Projects What is a Capital Project?What is a Public Works Project? State of Louisiana Facility Planning & Control

  2. When is a project just a project and when is it a

  3. Capital projects must “go through capital outlay.” According to RS 39:101: “…the head of each budget unit shall present to the office of facility planning and control of the division of administration a request for all expenditures for capital projects falling within the definition contained in R.S. 39:2(9)…” Capital Projects Facility Planning & Control

  4. Capital projects must “go through capital outlay.” According to RS 39:2(9): (9)  "Capital outlays" means expenditures for acquiring lands, buildings, equipment, or other permanent properties, or for their preservation or development or permanent improvement. Capital Projects Facility Planning & Control

  5. Capital projects must “go through capital outlay.” Louisiana Administrative Code Title 34, Part III, Chap. 2 further limits Capital Outlay projects to those with a useful life of at least 20 years and costing at least $50,000. Capital Projects Facility Planning & Control

  6. Based on the foregoing, two key features of Capital Projects have been established: 1. Permanent 2. Major Capital Projects Facility Planning & Control

  7. A Capital Project must be Permanent. Permanent = Useful Life ≥ 10 years As defined by the Office of Statewide Reporting and Accounting Policy (OSRAP) Capital Projects Facility Planning & Control

  8. A Capital Project must be Major. 1a. Complex in nature requiring the use of and coordination between different trades; or 1b. By statute requiring the services of a professional architect, engineer or landscape architect; and 2. A cost greater than $50,000. Minor: Not Major. Maintenance is Minor / Minor is Maintenance Capital Projects Facility Planning & Control

  9. How is this applied to assets? We can represent this graphically. Capital Projects Facility Planning & Control

  10. Graphic Representation of the effects of Major and Minor Preservation

  11. What does all this mean? • Capital Outlay: Along with certain dollar thresholds specified in RS 39:128 and LAC Title 34, Part III, Chap. 2, this will determine which projects belong in Capital Outlay. • Procurement: Along with the provisions of RS 38:2212 this will determine how these projects are procured. Capital Projects Facility Planning & Control

  12. Capital Outlay Dollar Thresholds: • Less than $50,000 - Cannot be, • $50,000 to $150,000 (Agencies)/$500,000 (Higher Education) – Can be, • More than $150,000/$500,000 – Gotta be. Regardless of means of financing. Capital Projects Facility Planning & Control

  13. Our Model: The same model applies regardless of what prompts the action, whether it be planned development, normal deterioration or an acute incident. Means of Financing. We use the same model regardless of the means of financing. Capital Projects Facility Planning & Control

  14. When is a project just a project and when is it a Public Works Project?

  15. Public Works Projects Statutory Definitions According to RS 38:2212: “All public work exceeding the contract limit …to be done by a public entity shall be advertised and let by contract to the lowest responsible bidder who had bid according to the contract, plans, and specifications as advertised, and no such public work shall be done except as provided in this Part.” Capital Projects Facility Planning & Control

  16. Public Works Projects Statutory Definitions According to RS 38:2211(12): “"Public work" means the erection, construction, alteration, improvement, or repair of any public facility or immovable property owned, used, or leased by a public entity.” Capital Projects Facility Planning & Control

  17. A Capital Project must be Permanent. Permanent = Useful Life ≥ 10 years As defined by the Office of Statewide Reporting and Accounting Policy (OSRAP) Capital Projects Facility Planning & Control

  18. Definitions: Method of procurement will ultimately depend on • Major • Minor Capital Projects Facility Planning & Control

  19. Definitions: Major: 1a. Complex in nature requiring the use of and coordination between different trades; or 1b. By statute requiring the services of a professional architect, engineer or landscape architect; and 2. A cost greater than $50,000. Here is a diagram: Capital Projects Facility Planning & Control

  20. Diagram Title 38 vs. Title 39

  21. Short Definitions Preservation –Restoration to working order of faulty components or systems. Corrective – Unscheduled activities to restore to working order prematurely failed components or systems. Preventive – Scheduled activities to prevent failure and maximize the useful life of the building. Construction/Improvement -Upgrading, renovating, improving or building a structure, facility or system according to a plan or definite process. Capital Projects Facility Planning & Control

  22. Short Definitions Equipment: Built-in Equipment – Permanently attached to the building and without which the building will not function. Fixed Equipment – Attached to the building to secure it and contributing to the function of the building. Movable Equipment – Not attached to the building but necessary to the function of the building. Capital Projects Facility Planning & Control

  23. A few reminders: • Facility Planning & Control is here to do Capital Projects. • Facility Planning & Control is not here to do routine or minor maintenance. • We are not here to do the so called “non-payable” contracts for the convenience of others. • If a project does not fit the definition of a Capital Project it must have another source of funding. • If it does, it must be capital outlay except for the gap between $50,000 & $150,000/$500,000. Capital Projects Facility Planning & Control

  24. QUIZ Capital ProjectsFacility Planning & Control

  25. 1. The Office of State Parks needs to replace a manager's residence that was demolished by a recent hurricane. The cost is $200,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Projects Facility Planning & Control

  26. 2. The Department of Corrections wants to replace an emergency generator that was damaged beyond repair. The wiring, switch gear and fuel delivery system are intact. The cost is $120,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Projects Facility Planning & Control

  27. 3. LSU-A wants to work on a chiller. The chiller is functional, but certain parts need to be replaced that are part of a regular maintenance schedule associated with the useful life of the chiller. Cost is $400,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Projects Facility Planning & Control

  28. 4. SU wants to replace a roof that has reached the end of its useful life. Cost is $300,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Outlay Facility Planning & Control

  29. 5. Office of State Buildings wants to replace the carpet in the Poydras Building (state-owned) in a particularly high use area. Cost is $90,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Projects Facility Planning & Control

  30. 6. Office of State Buildings wants to paint the exterior of the Monroe State Office Building because of extensive damage by vandals. Cost is $200,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Projects Facility Planning & Control

  31. 7. UNO wants to buy personal computers to replace ones destroyed by an electrical spike. Cost is $400,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Projects Facility Planning & Control

  32. 8. SU wants to renovate an existing building by upgrading the electrical and mechanical systems and adding a contiguous addition for new office space. Cost is $900,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39 Capital Projects Facility Planning & Control

  33. Facility Planning & Control Statewide Roofing Asset Management Program

  34. The importance of Roofing • Roofing failure is the biggest threat to any building. • Most construction litigation is roofing related. • That is why we have a Roofing Section. Facility Planning & ControlStatewide Roofing Asset Management Program

  35. Significant Changes • Lack of adequate funding is forcing the Program to reduce its efforts at chasing leaks and other minor repairs and direct them toward capital improvements. • The Program will continue to provide indefinite delivery/indefinite quantity contracts for roofing services but the user agencies will now be responsible for the cost. • Agencies wishing capital outlay funding for roof replacements or repairs must submit capital outlay requests for them. The full text can found in the handout and the FY13 Capital Outlay Instruction Letter. Facility Planning & ControlStatewide Roofing Asset Management Program

  36. In order to make the most of the State’s limited roofing funding all state roofing assets will be placed into one of three groups with different levels of service from the Statewide Roofing Asset Management Program. Briefly, these groups will have the following characteristics. Facility Planning & ControlStatewide Roofing Asset Management Program

  37. Starting at the bottom: Level III: Covers: All State owned buildings not covered by Levels I & II • Advice and technical information. • Training in roof maintenance. • Assistance with capital outlay request preparation. Facility Planning & ControlStatewide Roofing Asset Management Program

  38. Level II: Covers: All State owned buildings with flat/low slope roofs and special roofs not included in Level I. Services: • All Level III Services • Condition assessment. • Recommended schedules for maintenance, capital preservation and replacement. • Repair and maintenance services will be available at the user’s expense. • Replacements and major repairs will be through capital outlay requested by the user. Facility Planning & ControlStatewide Roofing Asset Management Program

  39. Level I: Covers: All State owned buildings for which roof failure would threaten interruption of critical state services or damage to critical state resources and State owned buildings with roofs that require special expertise. Services: • All Level II Services • Eligible for Capital Preservation projects. • Eligible for replacement based on our Five Year Plan if proper maintenance is exercised. • Repair and maintenance services will be available at the user’s expense. Facility Planning & ControlStatewide Roofing Asset Management Program

  40. State of LouisianaFacility Planning & Control LOUISIANA CODE FOR STATE OWNED BUILDINGS

  41. Louisiana Building Code RS 40:1721 – 1724 • Life Safety Code, Standard 101, 2009 Edition (Office of State Fire Marshal) • Part XIV (Plumbing) of the State Sanitary (Office of Public Health) • International Building Code, 2009 Edition • International Mechanical Code, 2009 Edition • National Electric Code (NFPA No. 70) 2008 Edition (Facility Planning & Control) Facility Planning & ControlLouisiana Code for State Owned Buildings

  42. ALL State owned buildings are subject to the Louisiana Code for State Owned Buildings. Mark Bell: 225 342-2069 mark.bell@la.gov Facility Planning & ControlLouisiana Code for State Owned Buildings

  43. Bill Morrison 225 342-0855 bill.morrison@la.gov http://www.doa.louisiana.gov/fpc/fpc.htm Thank you for your participation. Facility Planning & Control

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