Capital Project Review Committee
CAPITAL PROJECT REVIEW PROCESS
Purpose: The purpose of this policy and process statement is to define the information and actions needed for the approval of capital projects prior to submittal to Board of Regents, State of Iowa.
Approval Authority All capital requests submitted by the University of Iowa to the Board of Regents, State of Iowa, must be in compliance with associated Regent policies and procedures, and must have the approval of the University President or the president’s designee(s) in accordance with the approval authority levels set by Board of Regents policy.
This policy and enabling process is applicable to all capital requests. A capital request is defined as new construction projects, renovation projects or lease arrangements that have cumulative costs, including rental payments, design, administrative costs, and fit out costs, of $1,000,000 or above.
Requests for projects initially estimated to cost less than $1,000,000 may be submitted directly to Facilities Management via a requisition. Upon review of the request, the Associate Vice President, Facilities Management, will determine if the request requires further review by the Capital Projects Review Committee. Examples of projects costing less than one million dollars that the Associate Vice President , Facilities Management would bring forward to the Capital Projects Review Committee may include facility research grants requiring University matching monies and unit programmatic expansions that do not appear to have a solid funding source.
It is intended that this policy will be applicable to all University of Iowa units with physical assets (owned or leased) either on or off campus.
Proposal and Review Process
When a project is expected to exceed $1,000,000, the requesting department/unit must submit an application through its appropriate supervisory channel, including the applicable Vice President or Provost to the Capital Projects Review Committee. The Office of the Associate Vice President for Facilities Management has been designated to receive all applications on behalf of the Capital Projects Review Committee.
Academic units submitting proposals or exploring proposal alternatives may engage external consulting services in accord with the University procurement requirements after obtaining authorization from the Provost Office; other units are expected to obtain authorization from the appropriate Vice President. If consulting services include architectural or engineering consultants, requests for these services in preparation for the project application should be coordinated through the Associate Vice President for Facilities Management and may only be engaged with the approval of the Senior Vice President and Treasurer.
1. Capital Project Proposal Application
The application must include the following components:
• Project description and scope.
• The unit need being met by the project and how it fulfills the unit’s mission
• The project’s consistency with the University of Iowa mission and its strategic plan and plan for capital improvements.
• Descriptions of alternatives explored to meet the unit needs; and why were they rejected; and why the proposed project is the best way to meet the identified need. Every application involving new or expanded space should explicitly demonstrate that the identified need can not be met through more efficient use of existing space.
• Estimate of project and annual operating costs.
• Identification of planned sources of funds for construction and the annual operating and maintenance costs.
• Desired completion date.
• Explanation of expected consequences if project is not approved.
• Identification of any compelling external resources or influences that justify approval of this capital project.
• When this project is completed, what facilities and total square footage will be abandoned, transferred or demolished.
• If space is vacated, how will that space be reprogrammed and financially supported.
2. Application Review by the Executive Vice President and Provost and Senior Vice President and Treasurer. The President of The University of Iowa has designated the Executive Vice President and Provost and the Senior Vice President and Treasurer the authority to determine whether the project is consistent with The University of Iowa Strategic Plan and appropriate for consideration by the Capital Projects Review Committee.
3. Application Review by Capital Projects Review Committee. The Capital Projects Review Committee will make recommendations to the Executive Vice President and Provost and Senior Vice President and Treasurer regarding the approval, modification or disapproval of proposed capital projects along with priority and timing of projects. The Committee will review and evaluate proposed projects referred by the University President or designees. Review will include:
• project need assessment
• strategic plan fit
• Campus Master Plan fit
• Cost / benefit analysis
• financial feasibility
• determination of funding sources
• impact on cost of University operations
• impact on operational budgets
• impact on cost of education
• potential impact on bond agency rating and debt capacity
• sensitivity analysis of critical variables.
4. Project Planning Services. Once a project is approved for development by the President or the President’s designee(s), a project planning team will be designated and led by Facilities Management.
• The project planning team will include strong representation from the units to be served by the project.
• The established project planning team will provide periodic reports to the Capital Projects Review Committee regarding progress.