Sample of Construction of a New Facility Budget Justification

Organization Name: Family Medical Center (FMC)

Project Type: Construction of a New Facility

Project Name: FMC New Facility

Total ARP-Capital Funding Request = $2,000,000

Total Project Cost = $8,302,100

Family Medical Center’s proposed ARP-Capital project will construct a new 3-story building on an existing site. The building will provide examination rooms, a waiting area, records rooms, patient services, provider offices, a special purpose room, restrooms, healthcare support function areas, communications, and mechanical spaces. The building will comply with all accessibility requirements of the Americans with Disabilities Act and local building codes. A FMC sign will be installed at the entrance of the facility, and moveable medical and office equipment will be purchased. The resulting facility will result in a larger and better organized facility, well-suited to deliver services to the patient population.

The total FMC project cost is $8,302,100. This application requests $2,000,000 to support the total construction and equipment cost. The balance of $6,302,100 will be using a loan backed by the loan guarantee program through HRSA. Should the loan guarantee program application not be approved, we will use $3,500,000 of program income. In addition, we will use venture capital financing from local investors for the $2,802,100, in which we have already received letters of support.

The project is anticipated to begin in within 30 days of award and completed and occupied by August 2024.

LINE NUMBER ALLOWABLE COSTS—ARP-Capital UNALLOWABLE COSTS
Line 1—Administrative and legal expenses $63,100 is the total administrative cost. $23,600 is allocated to pay a portion of FMC’s staff / project manager (for work directly related to the construction project).
$39,500 is allocated for an environmental analysis and costs associated with evaluation of the environmental effects of proposed activities and producing an Environmental Statement to the local authorities.
Total: $63,100
 
Line 2—Land, structures, right- of-way, appraisals, etc. The current land is owned by FMC. No additional land is required for this project.  
Line 3—Relocation expenses and payments Although temporary relocation will be required for this project, no costs are anticipated for this classification.  
Line 4— Architectural and engineering fees $739,000 for the architectural and engineering fees, which will cover the following: mechanical and electrical design; bid renovation/construction documents (plans and specifications); and assistance during the construction bidding (answer questions presented by the contractors).

Total: $739,000

 
Line 5—Other architectural and engineering fees No other architectural or engineering fees are anticipated for this project.  
Line 6—Project inspection fees $23,437 for inspections by the local department of building construction, shop drawing and
submittal review; contractor payment certification; final construction inspection; project close out; fees for topographic survey; and the soil/foundation investigation.

Total = $23,437

 
Line 7—Site work $375,000 is the total site work, which includes:
tree removal, grading, earthwork, exterior improvements, seeding of disturbed areas and connection to underground utilities.

Total: $375,000

 
Line 8—Demolition and removal None  
Line 9—Alteration/ Renovation (Construction) $6,067,563 is the total construction cost to build the new building on the existing site. The total square footage is 17,358 square feet on 3 levels.

The master format divisions costs are:

General Requirements total $540,012:

  • General (Requirements that cover the full scope of the project work).
  • Safety
  • Operations and storage areas
  • Use of utilities.
  • Environmental controls

Facility Construction total $4,963,266:

  • Concrete (Example: Footings),
  • Masonry (Example: Concrete block and brick work)
  • Metals (Example: Steel framing)
  • Wood, Plastics, and Composites (Ex. House
  • framing)
  • Thermal and Moisture Protection (Example:
  • Insulation and water barriers)
  • Openings (Example: Doors, windows, and louvers)
  • Finishes
  • Building Specialties
  • Installed Equipment

Facility Services total $345,852:

  • Fire Suppression
  • Plumbing
  • Heating Ventilating and Air Conditioning
  • Integrated Automation
  • Electrical
  • Communications
  • Electronic Safety and Security

Process Equipment total $169,891:

  • Water and Wastewater Equipment
  • Electrical Power Generation

Other Project Costs total $48,542:

  • Exterior Business Sign
  • Special Purpose Room

Grand Total Construction = $6,067,563

$10,000 is an allowance for a
wall mural in the waiting room.
Line 10— Equipment $704,000 is the total for equipment.
$96,000 will be used to procure 24 exam tables for the exam rooms 24@ $2,000 each (24 x $2,000=$48,000) and 12 beds with wheels height adjustment @ $4,000 each
(12 x $4,000=$48,000) for the isolation rooms.

$38,750 will be used to purchase office equipment:
7 desks @ $1,000 ($7,000), 7 computers (4GB RAM, 160 GB HD, 22" monitor, Intel Core Duo 2 Processor)
@ $2,500 each (7 @ $2,500=$17,500) would be
purchased for each of the new exam rooms, and 114 chairs would be procured (i.e., 100 chairs for the waiting room and 14 chairs for the offices) (114 @ $125=$14,250).

$569,250 of clinical equipment.
See equipment list for other equipment purchased.

Total = $704,000

 
Line 11— Miscellaneous No Miscellaneous costs are anticipated for this
project
 
Line 12—SUBTOTAL
(Allowable and Unallowable Costs)
$7,972,100 total allowable costs
(Sum of Lines 1 through 11)
$10,000 total unallowable costs
(Sum of Lines 1 through 11)
Line 13— Contingencies $320,000, which is less than 5% of the sum of Lines, 7, 8, and 9 will be included for contingency.  
Line 14— SUBTOTAL $8,292,100 total allowable costs
(Sum of Lines 12 and 13)
$10,000 total unallowable costs
(Sum of Lines 12 and 13)
Line 15—Project (program) income Not Applicable  
Line 16—TOTAL PROJECT COSTS
(Allowable and Unallowable)
$8,302,100
(Sum of allowable and unallowable costs from Line 14 above)
 
Line 17— GRANT funding requested
(Note: round to the nearest whole dollar amount)
$2,000,000  

SEE APPENDIX A: Allowable and Unallowable Costs in the Notice of Funding Opportunity

Date Last Reviewed:  April 2021