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MURIELBOWSERMAYOR
December10,2025
The HonorablePhilMendelson
Chairman
Councilof theDistrictof Columbia
JohnA.WilsonBuilding
1350PennsylvaniaAvenue,NW, Suite504
Washington,DC 20004
Dear Chairman Mendelson:
Pursuanttosection451oftheDistrictofColumbiaHomeRuleAct(D.C.OfficialCode§ 1-
204,51)andsection202oftheProcurementPracticesReformActof2010(D.C.OfficialCode§2-352.02),enclosedforconsiderationandapprovalbytheCounciloftheDistrictofColumbiais
proposedModificationNo.|toContractNo.DCAM-25-CS-RFP-0006withCorenicConstructionGroup,LLC,increasingthenot-to-exceedamountby$4,030,262.83,from$6,808,979.50to$10,839,242.33.Theincreaseinthenot-to-exceedamountisanearlyreleaseoffundsforan
additionalinitialphaseoftheAdvancedTechnicalCenterPhase2ExpansionatPennCenter.
Aspartoftheadditionalinitialphaseoftheproject,CorenicConstructionGroup,LLCwillprovideconstructionservices,includingdemolition,concrete,structuralsteel,glassandglazing,exteriorpanels,andsprinklers,whiletheDistrictandCorenicConstructionGroup,LLCfinalizethefullscopeandguaranteedmaximumpricefortheproject.
My administrationisavailabletodiscussanyquestionsyoumayhaveregardingtheproposedcontractmodification.Inordertofacilitatearesponsetoanyquestionsyoumayhave,pleasecontactDelanoHunter,Director,DepartmentofGeneralServices(“DGS”),orhaveyourstaffcontactXavierBeltran,InterimChiefProcurementOfficer,DGS,at(202)727-2800.
IlookforwardtotheCouncil’sfavorableconsiderationofthiscontractmodification.
Sincerely,
"Mufiel Bdwser
1
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code § 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Standard, tipping, retroactive without changes, and multiyear)
Modification No. 1 to Design-Build Agreement for Advanced Technical Center (“ATC”) Phase 2
Expansion at the PENN Center
(A) Contract Number: DCAM-25-CS-RFP-0006
Proposed Contractor: Corenic Construction Group, LLC
Proposed Increase via Mod. 1: $4,030,262.83 (ESA #2)
Total NTE Amount: $10,839,242.33
Unit and Method of Compensation: Progress Payments on a monthly basis
Term of Contract: June 2, 2025 (date of execution of the Letter Contract by
the Department of General Services) through October 16,
2026 (“Substantial Completion Date”) with a Final
Completion Date of December 14, 2026, and an
Administrative Term of January 13, 2027.
Type of Contract: Cost Plus Fixed Fee with a Guaranteed Maximum Price
(“GMP”)
Source Selection Method: Competitive Request for Proposal
(B) For a contract containing option periods, the contract amount for the base period and for each
option period. If the contract amount for one or more of the option periods differs from the
amount for the base period, provide an explanation of the reason for the difference:
Not applicable.
(C) The goods or services to be provided, the methods of delivering goods or services, and any
significant program changes reflected in the proposed contract:
2
The Department of General Services (the “Department”) engaged Corenic Construction Group, LLC
(the “Contractor”) to provide design-build services for the construction of an approximately 20,000
square foot space for healthcare education services for up to two healthcare medical clinics and to
provide additional program space for the Advanced Technical Center at the Penn Center. The Design-
Builder shall design and construct a combination of renovation of the existing facility and new
construction to increase the existing footprint to accommodate the square footage required to bring
the property in line with District of Columbia Office of the State Superintendent of Education
(“OSSE”) specifications. The Project shall be designed in such a way as to incorporate 10,000 square
feet of educational space and 10,000 square feet of healthcare medical clinic space.
The underlying Contract was deemed approved by the Council on July 12, 2025, as CA26-0309 with
a GMP of $6,808,979.50.
The Department now seeks Council approval to execute proposed Modification No. 1 as a second
early start agreement. If approved, Modification No. 1 will increase the Contract’s NTE amount by
$4,030,262.83, from $6,808,979.50 to $10,839,242.33. Modification No. 1 will authorize the release
of necessary Project funding for several construction services for the Project. As the proposed
Modification would increase the Contract value by more than $1 million, Council approval is required
for this contract action.
(D) The selection process, including the number of offerors, the evaluation criteria, and the
evaluation results, including price, technical or quality, and past performance components:
The underlying Contract was competitively bid and previously submitted to and approved by the
Council (CA26-0309) on July 12, 2025.
(E) A description of any bid protest related to the award of the contract, including whether the
protest was resolved through litigation, withdrawal of the protest by the protestor, or voluntary
corrective action by the District. I nclude the identity of the protestor, the grounds alleged in
the protest, and any deficiencies identified by the District as a result of the protest:
The award of the Contract was not protested.
(F) A description of any other contracts the proposed contractor is currently seeking or holds with
the District:
The list of current and proposed District projects the Contractor is involved in is provided below:
Contracts currently held:
SN Project Contract No. Agency
1 Modernization of Drew Elementary
School
DCAM-23-CS-
RFP-0020
Department of General
Services
2 DC Archives Building DCAM-23-CS-
RFP-0030
Department of General
Services
3
Seeking:
SN Project Solicitation No. Agency
1 RFQ for the On -call Construction,
Repair & Replacement Services
DCAM-25-CS-
RFQ-003
Department of General
Services
(G) The background and qualifications of the proposed c ontractor, including its organization,
financial stability, personnel, and performance on past or current government or private sector
contracts with requirements similar to those of the proposed contract:
The Contractor has a track record of providing successful design and construction solutions that are
customer-centric, and the firm boasts a dedicated and experienced team of professionals. T he
Contractor is headquartered in Washington, DC, and has performed satisfactorily on design and
construction projects within the District. The Contractor has successfully completed the following
recent projects:
1. AmeriHealth Caritas Office space in the SW and SE quadrants of Washington, DC.
2. Dreaming Out Loud’s community center in the SE quadrant of Washington, DC.
3. Starbucks fit out in the Anacostia neighborhood of Washington, DC.
The Contractor possesses the financial stability to successfully perform the Project and has provided
a staffing plan for the Project, which has been reviewed and approved by the Department. The
Contractor has been determined responsible in accordance with 27 DCMR § 4706.1.
(H) A summary of the subcontracting plan required under section 2346 of the Small, Local, and
Disadvantaged Business Enterprise Development and Assistance Act of 2005, as amended, D.C.
Official Code § 2 -218.01 et seq. (“Act”), including a certification that the subcontracting plan
meets the minimum requirements of the Act and the dollar volume of the portion of the contract
to be subcontracted, expressed both in total dollars and as a percentage of the total contract
amount:
The Contractor is a certified business enterprise in accordance with the Act (CBE Number:
LSDZ78344052027). Pursuant to D.C. Official Code § 2-218.46 (d-1), the Contractor shall submit a
detailed subcontracting plan to DSLBD that meets the requirements of D.C. Official Code § 2-
218.46(d), before entering into a guaranteed maximum price.
Contract’s NTE Dollar Value: $10,839,242.33
Subcontracting Requirement %: 35%
Self-performing: 64%
Subcontracting Plan Required Dollar Value: $1,353,270.10
Subcontracting Plan Actual Dollar Value: $3,866,486.00
(I) Performance standards and the expected outcome of the proposed contract:
The Contractor is required to provide all design, preconstruction, and construction services and other
services necessary to substantially complete the Project no later than October 16, 2026. In general,
4
the Contractor must perform the requirements contained in the Contract and meet or exceed the
performance standards therein. The Contractor is subject to liquidated damages of Two Thousand
Five Hundred Dollars ($2,500) plus Two Hundred and Fifty Dollars ($250) per day of delay for
failure to timely achieve substantial completion of the Project.
(J) The amount and date of any expenditure of funds by the District pursuant to the contract prior
to its submission to the Council for approval:
Not applicable.
(K) A certification that the proposed contract is within the appropriated budget authority for the
agency for the fiscal year and is consistent with the financial plan and budget adopted in
accordance with D.C. Official Code §§ 47-392.01 and 47-392.02:
The Office of the Chief Financial Officer has certified that the proposed Contract modification’s NTE
amount is consistent with the Department’s budget and that adequate funds are available in the
Department’s budget in accordance with § 47-392.01 and § 47-392.02 of the DC Code. The applicable
fiscal sufficiency certification accompanies this council package.
(L) A certification that the contract is legally sufficient, including whether the proposed contractor
has any pending legal claims against the District:
The proposed Contract Modification No. 1 has been deemed legally sufficient by the Department’s
Office of the General Counsel , and the Contractor does not appear to have any currently pending
legal claims against the District.
(M) A certification that the Citywide Clean Hands database indicates that the proposed contractor
is current with its District taxes . If the Citywide Clean Hands Database indicates that the
proposed contractor is not current with its District taxes, either: (1) a certification that the
contractor has worked out and is current with a payment schedule approved by the District; or
(2) a certification that the contractor will be current with its District taxes after the District
recovers any outstanding debt as provided under D.C. Official Code § 2-353.01(b):
The Citywide Clean Hands database indicates that the Contractor is in compliance with the
Government of the District of Columbia tax laws and regulations. The applicable Clean Hands
certification for the Contractor accompanies this council package.
(N) A certification from the proposed contractor that it is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government:
The Contractor has certified that it is current with its federal taxes.
(O) The status of the proposed contractor as a certified local, small, or disadvantaged business
enterprise as defined in the Small, Local, and Disadvantaged Business Enterprise Development
and Assistance Act of 2005, as amended; D.C. Official Code § 2-218.01 et seq.:
5
According to the DSLBD website, the Contractor is a certified Local Business Enterprise, Longtime
Resident Business, Development Enterprise Zone and Resident Owned Business. The Contractor’s
CBE Number LSDZ78344052027, with an expiration date of May 31, 2027.
(P) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
Not applicable.
(Q) A statement indicating whether the proposed contractor is currently debarred from providing
services or goods to the District or federal government, the dates of the debarment, and the
reasons for debarment:
The Contractor is not debarred from providing services to the Government of the District of Columbia
or the Federal Government according to the Office of Contracts & Procurement’s Excluded Parties
List and the Federal Government’s Excluded Parties List.
(R) Any determination and findings issues relating to the contract’s formation, including any
determination and findings made under D.C. Official Code § 2-352.05 (privatization contracts):
Not applicable.
(S) Where the contract, and any amendments or modifications, if executed, will be made available
online:
Contract award information is available on the DGS website. The Modification to the Contract will
be made available on the DGS website upon approval.
(T) Where the original solicitation, and any amendments or modifications, will be made available
online:
The original solicitation and any amendments have been posted on the DGS website.
(U) (1) A certification that the proposed contractor has been determined not to be in violation of
section 334a of the Board of Ethics and Government Accountability Establishment and
Comprehensive Ethics Reform Amendment Act of 2011, D.C. Official Code § 1- 1163.34a; and
(2) A certification from the proposed contractor that it currently is not and will not be in
violation of section 334a of the Board of Ethics and Government Accountability Establishment
and Comprehensive Ethics Reform Amendment Act of 2011, D.C. Official Code § 1-1163.34a:
Based upon a certification from the Contractor, the Contractor has been determined not to be in
violation of D.C. Official Code § 1-1163.34a; and will not be in violation of D.C. Official Code § 1-
1163.34a.
1101 4th Street, SW
Washington, DC 20024
Date of Notice: November 13, 2025 L0015252208Notice Number:
FEIN: **-***6734
Case ID: 18767713
Government of the District of Columbia
Office of the Chief Financial Officer
Office of Tax and Revenue
CORENIC CONSTRUCTION GROUP, LLC
12138 CENTRAL AVE STE 528
MITCHELLVILLE MD 20721-1910
Branch Chief, Collection and Enforcement Administration
Authorized By Melinda Jenkins
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
“Validate a Certificate of Clean Hands” hyperlink under the Clean Hands section.
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
COPY
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
Memorandum
To: Delano Hunter
Director
From: Antoinette Hudson - Beckham
Agency Fiscal Officer
Reference: Proposed Contract No. DCAM-25-CS-RFP-0006
Design-Build Services for Advanced Technical Center Phase 2 Expansion at the
PENN Center
Date: November 20, 2025
Subject: Fiscal Sufficiency Review
In my capacity as the Agency Fiscal Officer of the Department of General Services (the “Department”),
I hereby state that the Design-Build Services for Advanced Technical Center Phase 2 Expansion at the
PENN Center (DCAM-25-CS-RFP-0006), with Corenic Construction Group LLC. (the “Contractor”)
and a not-to-exceed (“NTE”) amount of $10,839,242.33 is consistent with the Department’s current
budget and that adequate funds are available in the budget for the expenditure.
Per the Department’s Contracts & Procurement (“C&P”) team, on June 2, 2025, the Letter Contract was
executed by the Department, with an initial Not -to-Exceed (“NTE”) amount of $9 50,000.00. The
underlying Contract was deemed approved by the Council on July 12, 2025 (CA26-0309), as an Early
Start Agreement #1, with a NTE to $6,808,979.50, inclusive of the initial $950,000.00. The proposed
$4,030,262.83 will increase the NTE to $10,839,242.33 ($4,030,262.83 + $6,808,979.50).
The Department of General Services (DGS – Implementing AGY) has $10,839,242.33 the Office of
State Superintendent of Education (OSSE – Owner AGY) cumulative capital budget authority balance.
The PASS/DIFS information is listed below/attached.
Project Name
Project
Number AY
Fund
Detail
Imp
AGY
Owner
AGY RK/PO Amount Comments
AM0.ATCG1C.CTE
ADVANCED
TECHNICAL
CENTER 1 100009 N/A 3030300 AM0 GD0
PO726619-
V2
950,000.00
Letter
Contract
AM0.ATCG1C.CTE
ADVANCED
TECHNICAL
CENTER 1 100009 N/A 3030300 AM0 GD0
PO726619-
V2
5,858,979.50 ESA 1
AM0.ATCG1C.CTE
ADVANCED
TECHNICAL
CENTER 1 100009 N/A 3030300 AM0 GD0 RK317936
4,030,262.83 Proposed
TOTAL
10,839,242.33
Antoinette Hudson Beckham
Agency Fiscal Officer
Department of General Services
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
OFFICE OF THE GENERAL COUNSEL
MEMORANDUM
TO: Tomás Talamante
Director, Office of Policy and Legislative Affairs
FROM: Kristen Walp
Senior Assistant General Counsel
SUBJECT: Legal Sufficiency Certification
Modification No. 1 to Design- Build Agreement for Advanced Technical Center
Phase 2 Expansion
Contract Number: DCAM-25-CS-RFP-0006
Contractor: Corenic Construction Group, LLC
DATE: November 21, 2025
_____________________________________________________________________________
This is to certify that this Office has reviewed the above-referenced proposed Modification No. 1
and has found it to be legally sufficient, subject to submission of : (i) any required materials to
Council for approval; (ii) Council’s approval of the same; and (iii) a Fiscal Certification issued by
the Department of General Services’ Agency Fiscal Officer.
Please feel free to contact me at (202) 727-2800 with any questions.
____________________________
Kristen Walp
Senior Assistant General Counsel
X
1
2
3
4
5
Scope of Work: The Contractor's scope of work remains unchanged. This Modification No. 1 is a second Early Start Agreement and
increases the Initial Not-to-Exceed ("NTE") Amount to release additional Project funding for the release of trades for classrooms build
outs.
Not-to-Exceed Amount: The Contract's Initial NTE amount is hereby increased by $4,030,262.83, from $6,808,979.50 to
$10,839,242.33, which includes a $145,000.00 Owner's Allowance; the increased Initial NTE amount also includes the previously
released Contract amount of $6,808,979.50, bringing the total Initial NTE to $10,839,242.33 as further described in Exhibit A. The
Owner's Allowance is to include capital eligible items for walk-in refrigerator and interior double shell structures. Draw-down on the
Owner's Allowance shall be pre-authorized in writing by the Department.
Capital Eligibility: Prior to purchasing, expending or committing any portion of funds for the scopes of work covered by the line
items listed in Exhibit A, the Design-Builder must first seek and obtain from the Department’s Office of the Chief Financial Officer
a determination as to whether the work will qualify as a “capital” expense under the District’s General Guidelines for Capital
Financing Eligibility, which are attached here as Exhibit B. In making such a request, the Design-Builder shall submit an itemized
breakdown of the work that the Design-Builder seeks to release using funds from the Not-to-Exceed Amount as well as the
associated costs of such work.
Release: It is mutually agreed that in exchange for this Modification and other considerations, the Contractor hereby releases,
waives, settles, and holds the Department harmless from any and all actual or potential claims or demands for delays, disruptions,
additional work, additional time, additional cost, contract extensions, compensations or liability under any theory, whether known or
unknown, that the Contractor may have now or in the future against the Department arising from or out of, as a consequence or
result of, relating to or in any manner connected with this Modification, the above-referenced Project, and the Contract Work.
Terms & Conditions: All other Terms and Conditions remain unchanged.
DCAM-25-CS-RFP-0006
9B. Dated (See Item 11)
June 2, 2025
X
10A. Modification of Contract/Order No.Washington, DC 20003
Attn: Brunson Cooper
Email: Brunson@corenic-cg.com 10B. Dated (See Item 13)
11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended. is not extended.
following methods: (a) By completing Items 8 and 15, and returning 1
13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
Contract No. DCAM-25-CS-RFP-0006 - for Design-Build Services for Advanced Technical Center Phase 2 Expansion at the PENN
Center is hereby modified as follows:
copies of the amendment: (b) By acknowledging receipt of this
copy to the issuing office.E. IMPORTANT:
an offer already submitted, such change may be made by letter or fax, provided each letter or telegram makes reference to the
IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14
The changes set forth in Item 14 are made in the contract/order no. in item 10A.
amendment number. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change
X
D. Other (Specify type of modification and authority) Title 27 DCMR Sections 4728 and Contract No. DCAM-25-CS-RFP-0006
1
B. The above numbered contract/order is modified to reflect the administrative changes (such as changes in paying office, appropriation
date, etc.) set forth in item 14.
C. This supplemental agreement is entered into pursuant to authority of:
A. This change order is issued pursuant to: (Specify Authority)
Washington, DC 20019
Corenic Construction Group LLC
1220 12th Street, SE Suite 280
POC: Makia Efimba (Makia.efimba@dc.gov)
8. Name and Address of Contractor (No. Street, city, country, state and ZIP Code) 9A. Amendment of Solicitation No.
(Signature of person authorized to sign) (Signature of Contracting Officer)
solicitation and this amendment, and is received prior to the opening hour and date specified.
12. Accounting and Appropriation Data (If Required)
15B. Corenic Construction Group LLC 15C. Date Signed 16B. District of Columbia 16C. Date Signed
15A. Name and Title of Signer (Type or print) 16A. Name of Contracting Officer
Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the
Contractor is not, is required to sign this document and return
amendment on each copy of the offer submitted; or (c) By separate letter or fax which includes a reference to the solicitation and
Kianna Shepherd
14. Description of amendment/modification (Organized by UCF Section headings, including solicitation/contract subject matter where feasible.)
Washington, DC 20019
Contracting and Procurement Division Capital Construction Division
3924 Minnesota Avenue, 5th floor. 3924 Minnesota Avenue, 5th floor.
1. Contract Number
MODIFICATION OF CONTRACT Page of Pages
DCAM-25-CS-RFP-0006 1 2
7. Administered By (If other than line 6)
Department of General Services Department of General Services
6. Issued By:
3. Effective Date 4. Requisition/Purchase Request No. 5. Caption
Modification No. 1 See Block 16C PR-016028/RK294449-V3
Design-Build Services for Advanced
Technical Center Phase 2 Expansion
at the PENN Center
2. Modification Number
(Continuation)
Contract Number Page of Pages
DCAM-25-CS-RFP-0006 2 of 2
Executed: 06/02/2025. 950,000.00$
5. Contract Recap:
Letter Contract
Def Contract Early Start Agreement #1. Executed: 08/05/2025 5,858,979.50$
Mod 1 Early Start Agreement #2 4,030,262.83$
-$
-$
Total Contract Price 10,839,242.33$
Modification No.
Modification No. 1
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
EXHIBIT A
VENDOR
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AdvancedTechnicalCenterPhase2DesignBuild1/09SraSt.NE‘Washington,DC20002
EARLYSTARTAGREEMENTBUDGET
CORENICCONSTRUCTION
15,000USFNovember10th,2025
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Division1 $ 917,369)S115
Division2 $ 49200328
Division3 $ 188597257
Division4 $ 106240708,
DIVISION5 $ 30215| 201
DIVISION6 $ 129502, 853
DIVISION7 $ 27057180
DIVISION8 $ 303035| 0
Division9 $ 1011958575
Division10 $ : 000
Division11 $ - 000
Division21 $ 105,000,700
ivision22 $ 407,675 78
Division23 $ - 000
Division26 $ 591410, 388
ivision27 $ 18005120
JALLOWaNces. $ 145000957 Qualifications
1.SeeattachedQualificationsDocumentforMoreInformation
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CORENICCONSTRUCTION
Advanced TechnicalCenter Phase 2
17093°St.NE
‘Washington,DC20002
QUALIFICATIONS, EXCLUSIONS AND/OR EXCEPTIONS
GeneralQualificatio
1
10.
1.
12,
13,
14,
‘Completedworkwillcomplywithallapplicablecodes,ordinancesandregulationstotheextentindicatedinthedrawings.Pricingisbasedontheexistingfacilityconformingtolocalbuildingcoderequirements.ifchangesoradditionalworkarecausedbyauthoritiesorothercausesbeyondthecontrolofCorenic,thecostofconstructionandtheSubstantialCompletiondateshallbeadjustedaccordingly.Therepairorrenovationstoanyexistingdefectiveornon-codecompliantconstructionisexcluded.Corenicisnotresponsiblefordiscrepancies,errors,omissions,ambiguities,orconflictsintheContractDocuments.AllpricingisbasedontheworkindicatedontheBidDocuments(Architectural,MEP,Structural,& TechnologyPricingsetsdated
9/29/2025).PricingincludesperformanceofallworkduringnormalworkinghoursMonday- FridaySam-2pm,Pricingisvalidfor30calendardaysftombidsubmission.Wedonotincluderesponsibilityformajormaterialpriceincreasesduetotariffsanduncertaintyoffuturematerialprices.We includeDavisBaconWageScaleratesassetforthintheprovidedGeneralDecisionNumber:0C20250002documentdated5/30/2025.‘Wedonotincludecostthirdpartytrade(MEP)andstructuralinspections.Nootherinspectionsareincluded.‘Wedonotincludethecostsforthirdpartytesting,Corenicisnotresponsibleforimpactstomaterialcostincreases,andorscheduleimpactsasaresultofinclementweather,actsofGod,terrorism,ete.Whilequalificationsarebrokenoutbydivision,theyapplyforalltrades.‘Wedonotincludebonds.‘Wedonotincludebuilder'sriskinsurance.‘Wedonotincludemock-ups.‘WedonotincludeanycommissioningofMEPsystems.Wedonotincludeanyitemswhichmayberequiredbythebuildinginspector,firemarshal,orothercodeauthoritywhichisnotreflectedinthebiddocuments.
TradeSpecificQualifications:
EXISTINGCONDITIONS/DEMOLITION
15.
16.
‘Weexcludeanysiteremediation,contaminatedsoilremoval,orhazardouswasteremovalaspartofthisscopeofwork.WeexcludeanyresponsibilityfordamageorrepairtoexistingunknownutilitiesnotshownonthecontractdocumentsoridentifiedbyMissUtility
CONCRETE/MASONRY
17.
18,
‘Wedonotincludeanywaterproofingofmasonryorconcrete.ThiswillbepartofGMPwhenthedesigniscompleteWeincludeanallowanceforfloorfloatingasrequiredfortile/glassinstallation,
METALS19.‘Weincludecostforroofdunnagetosupportnewchillerasperthestructuraldesign
OPENINGS
20.
21.
Weincludeabudgetforexteriorlouvers.BasisofdesignAiroliteK6746,6”depth,factoryAAMA2605Kynarfinish,mountingangles,andsillwithenddamsatthesizesasshownonthedrawings.Weincludeabudgetforreplacingexistingbrokenexteriorglazingandremoving/replacingsealantatexistingexteriorwindows.‘Thenewinteriorwindowsfortheclassroomsareincluded
Te22.TIAArchitessaJourneyRectified24x48"tileisnotavailableinthecolorContemporaryDarkMatte.We havequotedArchitessaJourneyRectified12"x24”whichisavailableinthespecifiedcolor.23.Weincluderollappliedwaterproofingatrestroomtileareas,PAINTING24.Weincludeanallowancetopaintexistingexteriorwindowframesforthe1*floorclassroomsaspartofourpaintpackage.25.We includeanallowancefordigitalwallgraphicsaspartofourpaintpackagePLUMBING26.Weassumeexistingstorm,sanitary,andwatermains/riserscanbereused,27.Wedonotincludedisinfectingnewwaterlines.
Hvac28.WeincludeDDCcontrolsbyAlphaEpsilon.29.Wedonotincludeexistingductcleaningorleakagetesting30.Chiller&BoilerincludedELECTRICAL31,Wedonotincludeanyworkassociatedwiththenew277/480vservice.Therewasnotsufficientinformationtoincludeaccuratecostfornewswitchgear.However,ESA#1hadcostsassociatedwithnewswitchgearthatcouldbeenoughtocoverthecost.32.Weincludepowerfornewboiler/chiller33.WeincludeEMTinexposedceilingareasonly.ConcealedceilingareasarepricedasMCcable.SECURITY/IT/AV34.WedonotincludeanyworkassociatedwithSecurityorAccessControl.ThiswillbecapturedintheGMPatalaterdateaspertheRFIresponse.35.We includeonlyinfrastructure,nodevices,forTelecommunicationsandAudioVisualaspertheTechnologysetofdrawingsdated9/29/2025.SITEWORK/EXTERIOR36.Wedonotincludeanyworkassociatedwithlandscaping,greenroofs,orbio-retentionponds.Thiswillbepricedwhenthe
designiscomplete.
‘Thefollowingarestandardexclusions:Building,useoroccupancypermitsBondsCitizenshiprequirementsSlabxrayStructuralEngineerteviewofGPR/coredrilllocationsUnforeseen/concealedsiteconditionsBuildingstaff,securityorbuildingengineerfeesorovertimeComposite,coordination,BIMoroverlaydrawingsReferencestobasebuildingdrawingsorspecificationsUtilitycompanychargesandSDC,taporfixturefees(tobepass-throughcost)Phasing,offhoursand/orovertime‘WorknotspecificallyshownontheBidDocuments
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
EXHIBIT B
CA3I7A/ FINANCING (/IGIBI/I7<
[ATTACHMENT WILL APPEAR ON THE FOLLOWING PAGE]
1
General Restrictions for Capital Financing Eligibility
To be eligible for funding in the capital budget, a project must result in a District owned asset,
and be of sufficient value (minimum $250,000) to be carried on the books as such and
depreciated over the life of the project, which is five or more years.
In general, to be capital eligible the project must also result in one of the following;
x A new District owned asset,
x Increase the value of an existing District owned asset,
x Increase the life of a District owned asset by at least 2 years.
I. Eligible Projects
The following are examples of categories of projects eligible for capital financing:
Construction or acquisition of a public facility to be owned, occupied, and for use by the District
for the useful life of the asset.
Large-scale replacement and rehabilitation of existing public facilities
Improvements to economic development projects owned by the District
Design work relating to an individual capital project (if the project is implemented/constructed).
Land purchased for building sites, recreation, rights-of-way, and other public purposes owned by
the District and with access and use by the general population.
Replacement or rehabilitation of major mechanical systems (such as HVAC, Electrical or entire
lighting systems) or structural components of existing public (District owned) facilities
Alteration of an existing public facility to make it more functional for a new use, including
temporary relocation costs of an existing use
Furniture, fixtures and equipment associated with construction or substan tial rehabilitation of a
public facility (not to exceed 10 percent of proj ect’s total budget). Th e items must support the
primary function of the facility, but are not a part of the structure. Examples are shelving, light
fixtures, and the opening day collection (inventory) of library books for a public library. Further,
if the removal of these items does not cause damage to the facility, they are NOT eligible. Affixed
shelving, affixed lighting, and certain large kitchen appliances are examples.
Construction and rehabilitation of rights of way and public infrastructure (roads and bridges),
including storm water management systems)
Major information technology projects (with a 5 year minimum useful life and $250,000 cost)
Hazardous materials remediation co sts, e.g., asbestos removal a nd abatement, landfill clean-up,
etc.
Grading and site preparation work
Trees planted on property owned by the District
Significant information technology investments, including hard wiring of a facility, hardware, and
software purchases including the manufacturer’s standard term of warranty
Pieces of artwork in excess of $250,000 per unit (see further discussion in item III e)
Roof membrane sealing - often referred to as a GacoRoof or ‘cool roof’. Use of this process on a
roof that is due to be replaced and is otherwise structurally s ound, precludes the need to remove
2
any part of the old roof structure, while essentially replacing the roof with a new guarantee against
leakage. See Item III h. below for further explanation on conditions for eligibility.
Solar Panels which must; be the exclusive property of the District, be installed on District owned
assets, have an estimated economic life of more than 25 years, a nd have a positive return on the
investment (measureable lowered energy costs from the project – identified as an operating impact
of capital).
II. Not Eligible
The following are examples of categories of projects NOT eligible for capital financing:
Project does not result in as asset that will be owned by the District for the useful life of the asset.
Project (or the work being performed) does not incr ease the value of an al ready existing District
asset.
Project (or work being performed) does not increase the useful life of an existing District asset by
a minimum of two years.
Improvements to private property, including District owned property used for private purposes.
Items that are not of a permanen t nature, such as window air cond itioners, computers, security
cameras (even if attached to a District facility), window coverings, speakers, telephones, etc.
Items that are not permanently affixed to a public facility such that re moval of the item would
cause damage to the public facility.
Items involving recurring maintenance of facility or systems and/or frequent repairs
Items that occupy floor space but r e q u i r e n o p e r m a n e n t c o n n e c t i o n to utilities (hard-wired to
electrical or gas supply) or the structure
Items not requiring floor space but that sit on top of other equipment and will require special
outlets.
Artwork which has less than $250,000 unit cost.
Specific examples of items NOT eligible for capital financing include:
x Real property purchased for re-sale in the immediate or short term to a private entity or
developer.
x Moving expenses (contact the Office of Budget and Planning if you have further
questions on this item).
x Daily maintenance
x Scheduled maintenance
x Extended warranties
x Replacement furniture, painting, and carpeting
x Replacement modular furniture
x Grounds maintenance
x Replacement books for public libraries
x School text books or library books for a school
x Technology refreshes (except for major version upgrades). The software version number
is the indicator of the extent of an upgrade. Going from version 3.0.2 to version 3.0.3 is
3
not considered a major upgrade. Moving from 3.0.5 to 4.0 is a major upgrade – as can
be seen from the first number to the left of the decimal place.
x Audio-visual equipment including, security cameras, speakers (PA and/or pure audio),
and monitors
Exception: white boards of >$5,000 each for school modernization, including the
PC necessary to utilize the white board
x Mechanical and HVAC system maintenance, except for replacement of component parts
that extend the useful life of the asset, such as a motor or air handler
x Personal computers, laptops, pads, tablets, peripheral computer equipment, including
printers, and telephones
x Moveable partitions (not affixed to the floor such that removal causes damage to the
facility)
x Window guards (security bars)
x Window mounted air conditioners
x Help Desk staffing costs
x Recurring backhaul costs for IT (the backhaul portion of the network comprises the
intermediate links between the core network, or backbone network and the small sub-
networks at the "edge" of the entire hierarchical network
x Service and maintenance agreements on equipment
x IT training (exception: travel expenses for the trainers – not those being trained - is
eligible)
x IT cloud-based services – See Item III g. below.
Exception: development of interface applications with District owned IT assets is
eligible
III. Specific Examples of ‘Questionable’ Project/Expense Types
a. FTE’s:
b. Community gardens built on District owned property (These cannot be booked
as assets since the gardens do not add value to the asset or extend the life of the
asset. Individual components - as presented in the request of September 2013 -
the fences, tool sheds, and the watering systems, can be booked individually as
assets since they meet the $5,000 asset value threshold. The remainder of the
items proposed as part of the ‘gardens’ do not qualify individually and would thus
have to be operating expenses).
c. Facilities Assessments. Performing facilities assessments are not normally
eligible for capital budget funding, except in the case where there already exists
an approved capital project to fund the intended work but an assessment is needed
to flesh out all needed activity.
d. Feasibility studies and strategic plans. Conducting feasibility studies on a
possible capital project does not qualify since it does not result in a new district
asset (Initially, feasibility studies must be charged as operating expenses.)
i. Resulting in the implementation of an eligible capital project? (If a
study/charrette result ultimately gets incorporated into the design of a
4
capital project, then the expenditure can be reversed from operating and be
charged to capital – as a part of the book value of the asset.)
ii. Not resulting in the implementation of an eligible capital project? (These
would remain operating expenses.)
e. Costs associated with build-out of leased space by a District agency as “tenant”
i. Minimum lease term? (It must be a District ‘capital’ lease, and the term
must be a minimum of 10 years.)
1. A capital lease is defined by the following;
a. Ownership transfers at end of the lease term,
b. Present Value of minimum lease payments must be >90%
of fair value of the asset,
c. There is no ‘bargain purchase’ arrangement in the lease
and,
d. The lease term is greater or equal to 75% of the economic
life of the asset.
ii. Minimum cost threshold? Like all capital projects – it must be a minimum
of $250,000 in the agreed-to lease. As a reminder, FF&E expenditures are
only allowable if their removal would result in damage to the asset being
leased e.g. the building. Additionally, the changes must be permanent in
nature (even after our lease expires) and, must be for the benefit of the
District during the lease term.
f. Capital budget subsidies for affordable housing units in private developments
(Since these costs do not result in a District owned asset they cannot be charged to
capital. We recognize there is a benefit to the District but, we cannot book and
depreciate that benefit.) The ineligible subsidies include those:
i. for persons with cognitive challenges,
ii. for persons earning 0-70 percent of Area Median Income,
iii. for real property purchased for re-sale to a private developer.
g. Signage
Building Signage - that is part of a new building's construction or renovation and
intended to be permanently attached is considered to be included as part of the
total building project and capitalized if the total project cost is $250,000 or
greater.
i. Signage is considered permanently attached when removal of the signage
would cause structural damage to the building, defacement to the property,
damage to the sign and/or would require professional removal, such as the
removal by a professional electrician.
ii. Examples of signage in new building construction or renovations that
could be permanently attached include:
1. Major building identification signs placed inside the building
structure at each major entrance which list departments, offices and
floors; Wall-mounted directional signage which reinforces
5
circulation within the building; Exit and restroom signage; and
scoreboards that are permanently attached to the building structure.
Land Improvements Signage - that is outside and not permanently attached to a
building is considered a land improvement. Signage that is part of a land
improvement project should be included in the total project cost and capitalized if
the project cost is $250,000 or greater.
i. Examples of signage that could be considered land improvements include
the following permanently affixed signage:
1. Identification signage which introduces and welcomes visitors to
your facility.
2. Directional signage which offer motorists and pedestrians the
direction and information they need to make their way around your
facility and grounds.
3. Signage located outdoors and not permanently attached to a
building which identifies a building or locations on your facility
campus.
Signage that is not permanently attached to a building or permanently affixed
outside of a building should be capitalized as equipment if the sign has an
acquisition value of at least $5,000 and a useful life expectancy of five years or
greater.
h. Arts Projects - Arts projects are eligible only if they create a single capital asset
with a minimum cost of $250,000 and the useful life is 5 years or more. Art work
costing less than $250,000 cannot be capitalized as a District asset and must be
paid for with operating budget.
i. Cloud Based Software – and Services (versus Hosted Services)
i. When a cloud computing arrangement does not include a software license,
the arrangement will be treated as a service contract and expensed with
operating budget as the services are received.
ii. When a cloud computing arrangement includes license(s) of software
District policy allows for “software which is commercially available either
by license or outright purchase and modified using more than minimal
incremental effort” e.g.
1. Does our IT department - assuming they have the expertise - have
the right to go in and change the code (different from
configuration) to meet our needs?
2. Do we have the contractual right to take possession of the software
at any time during the hosting period without significant penalty?
If we can, then we own an asset, and the fee attributable to the software
license portion of the arrangement should be capitalized. If not, we don’t
own the asset and the costs should be expensed using operating budget.
iii. Further, is the use of the license dependent on the maintenance agreement?
If so, the software is not capital eligible since we’re essentially just being
allowed to use someone else’s product.
6
iv. If capital eligible, before being put into operation, the expenditures will be
classified based on the three phases of internally generated software.
j. Mini Parks – A plan was presented to design and construct a minimum of four
(4) mini parks, and locate each in a standard on-street parking space to provide
recreational amenities in underserved areas of the District. The creation of these
“mini parks” do not generate a new district owned asset, further is not in nature
therefore the parks as units are not capital eligible. Permanent fixtures and wiring
with unit cost in excess of $5,000 may qualify as individual capital assets.
k. Cool, Green / Solar Roofs - Design and construct new sustainable roofs on
selected DGS portfolio buildings. Replacing roofs, by themselves, does not
increase the value or the expected life of the District asset/building and therefore
are not eligible as capital. However, replacement of an existing roof that has
reached the end of its useful life is an eligible capital expenditure.
l. Living Building Design/Construct – (see feasibility studies above).
m. The following specific projects have also been determined by the CFO to be
ineligible for capital budget: (this list is reference for the types of projects that
cannot be capitalized).
OWNER AGENCY PROJECT PROJECT TITLE
AM0 - DEPARTMENT OF GENERAL SERVICES BC401C HILL E RELOCATION OF GOV'T FAC. & FUNCTION
BD0 - OFFICE OF MUNICIPAL PLANNING PLN37C DISTRICT PUBLIC PLANS & STUDIES
BX0 - COMMISSION ON ARTS & HUMANITIES AH7GPC ARTS & HUMANITIES GRANTS & PROJECTS
DB0 - DEPT. OF HOUSING AND COMM.
DEVELOPMENT 04002C PROPERTY ACQUISITION & DISPOSITION
EB0 - DEPUTY MAYOR FOR ECONOMIC
DEVELOPMENT EB402C PENNSYLVANIA AVENUE SE PROPERTIES &
BUSINESS GRANTS
EB0 - DEPUTY MAYOR FOR ECONOMIC
DEVELOPMENT EB343C GEORGIA AVENUE GREAT STREETS & BUSINESS
GRANTS
RM0 - DEPARTMENT OF BEHAVIORAL HEALTH HX403C HOUSING INITIATIVES
KA0 - DEPARTMENT OF TRANSPORTATION PM302C PARKING - PLANNING
KA0 - DEPARTMENT OF TRANSPORTATION PM303C PLANNING AND DESIGN REVIEW
KA0 - DEPARTMENT OF TRANSPORTATION PM304C ADVANCED DESIGN AND PLANNING
KA0 - DEPARTMENT OF TRANSPORTATION PP690C PERFORMANCE PARKING ENHANCEMENTS
KT0 - DEPARTMENT OF PUBLIC WORKS SWS13C,
SWS12C SECURITY CAMERA UPGRADE
FL0 - DEPARTMENT OF CORRECTIONS CR008C UPGRADES CENTRAL SECURITY CAMERAS
FL0 - DEPARTMENT OF CORRECTIONS CR004C GEN RENOVAT UPGRD CNTRL SECURITY COMD
CT
JZ0 – DEPARTMENT OF YOUTH REHABILITATION
SERVICES SH732C DYRS -- MISCELLANEOS CAMPUS UPGRADES
KA0 - DEPARTMENT OF TRANSPORTATION CIT15C PAVEMENT MARKING
EB0 - DEPUTY MAYOR FOR ECONOMIC
DEVELOPMENT EB423C POPLAR POINT ENVIRONEMENT ASSESSMENT
FB0 - FIRE AND EMERGENCY MEDICAL SERVICES NEW SELF CONTAINED BREATHING APPARATUS
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JZ0 – DEPARTMENT OF YOUTH REHABILITATION
SERVICES NEW IMPROVEMENTS TO INFRASTRUCTURE ON
HOUSING UNITS
JZ0 – DEPARTMENT OF YOUTH REHABILITATION
SERVICES NEW CONTROL CENTER UPGRADE
FA0 - METROPOLITAN POLICE DEPARTMENT NEW BODY/VEHICLE CAMERAS
IV. Short-Term Bonds (formerly Master Equipment Lease/Purchase Financing)
Currently we are transitioning away from what we had called the Master Equipment Lease/Purchase to
finance some projects, which have a useful life of less than 25 years (the duration of our long term bonds).
This was actually a purchase arrangement through a fina ncing company. Starting in the latter part of FY
2016 we will finance assets with a useful life of 5-10 years (fleet, equipment, and IT types of assets) using
short-term bond financing.
Please contact the Office of Budget and Planning to d i s c u s s a n y q u e s t i o n s y o u m a y h a v e r e g a r d i n g
specific eligibility for this new financing.
To qualify for short-term bond financ ing, equipment items must have an individual unit value of at least
$5,000 and a useful life of at least five years.
The following are examples of items eligible for Short-Term Bond capital financing:
Modular buildings in use for five or more years
Office furniture, including modular furniture – only as a part of overall building renovations (See bullet
under “eligible projects” for additional information).
Solar panels, energy projects, and energy management systems – with economic life of between 5-10 years.
Parking meters
Information technology investments, including hard wiring of a f acility, hardware, and software
purchases (including upgrade of version, e.g., from version 1.0 to version 2.0) including the
manufacturer’s standard term of warranty
Software (if it meets certain parameters e.g. cost, upgrade of version, etc.)
Street sweepers, road maintenance, and snow removal equipment
Fleet vehicles, including first responder vehicles and school tr ansportation vehicles including
buses and vans
Traffic lights and crosswalk signals
Scoreboards and field or stadium lighting
Playground equipment and outdoor fixed-in-place adult exercise equipment
Voting machines
Homeland security and surveillance equipment systems – not including the cameras
Laboratory equipment (with individual values in excess of $5K)
Broadcast and video equipment
Electronic White Boards for schools modernization including the PCs necessary to run them
Security Fencing if permanently mounted
Building access equipment and security screening equipment (but not cameras)
Signage – see III e. above for eligibility
Electronic Signage – see III e. above.
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Building entrance canopies
Trailers/’Demountable’ Units – must be planned for use of 5 years or longer.
x P u r c h a s i n g t r a i l e r s – e l i g i b l e
x I n s t a l l a t i o n o f t r a i l e r s p u r c h a s e d o r r e n t e d – e l i g i b l e
x I n s t a l l a t i o n o f l i n e s / c o n n e c t i o n s e t c t o t r a i l e r s – e l i g i b l e
x FF&E – ineligible (only furniture being bought and then placed inside the school/modernization is
eligible, if the trailers are for swing space etc for modernization)
x C o n s t r u c t i o n w o r k t o e x i s t i n g t r a i l e r s – i n e l i g i b l e
x Construction work to rental trailers – ineligible