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The following is a list of frequently asked questions (FAQs) concerning the New Jersey Schools Development Authority’s role and responsibilities under the school construction program and answers to these questions. If you have a question concerning the SDA's policies, plans or procedures that is not included on this list, you can contact us and your question will be answered promptly.
New Funding for the School Construction Program
General Information
SDA Districts
Regular Operating Districts
'Green' Construction
Professional Consultants (Architects, Engineers, Landscape Architects, Planners, Surveyors, and Construction Management)
Pre-Qualification Procedures
Procurement Process
General Contractors and Subcontractors
Classification
Procurement Process
Equitable Employment and Business Opportunities
New Funding for the School Construction Program
What funding is available for the School Construction Program?
On July 9, 2008, Governor Jon S. Corzine signed legislation authorizing $3.9 billion in additional funding for the New Jersey Schools Development Authority (SDA).
The legislation allocates $2.9 billion for 31 special-needs districts, known as SDA Districts. The SDA manages and funds 100 percent of eligible project costs in the former Abbott districts.
The legislation also allocates $1 billion to leverage construction in New Jersey’s Regular Operating Districts (RODs) and includes $50 million for vocational schools. The SDA administers grants for RODs, which manage their own projects.
The program originally was allocated $8.6 billion in 2000: $6 billion for SDA Districts and $2.6 billion for RODs. That funding has been fully committed to projects, although not completely disbursed. The authorization of additional funds allowed the SDA to select 53 additional projects, knowing funds would be available for completion.
What schools will the SDA build with its new $3.9 billion allocation?
On July 8, 2008, the SDA Board approved the 2008 New Funding Allocation and Capital Plan for SDA Districts. The plan identifies 53 projects to be funded for construction, including 26 new school projects. An additional 27 projects that had been deferred in April 2007 due to a funding shortfall also will proceed. The Authority fully funds eligible costs of projects in SDA Districts.
The 26 new school projects were derived from a statewide prioritization plan, based on educational need, which was created by the N.J. Department of Education (DOE).
Click here to view a presentation on the 2008 New Funding Allocation and Capital Plan.
The ROD grant program will resume in upcoming months. DOE is currently working to develop an application and review process. The program will incorporate a prioritization methodology anticipated by the legislation. The program will fund at least 40 percent of eligible project costs in RODs.
What is the status of projects not included in the 2008 New Funding and Allocation Plan for SDA Districts?
These projects remain on hold. On or about January 2009, the SDA, in consultation with DOE, SDA Districts and governing bodies will develop a strategic plan reflecting identified needs for future funding.
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General Information
When was the SDA created?
The SDA was established on August 6, 2007 under the provisions of P.L. 2007, c. 137 (Program and Governance Reform) independent authority in but not of the Department of Treasury. It replaced the New Jersey Schools Construction Corporation (SCC), which had been a subsidiary of the New Jersey Economic Development Authority, and eliminated the requirement that half of its governing-body members also be EDA Board members.
What additional changes resulted from the creation of the SDA?
Authority members are required to have backgrounds directly relevant to the program’s mission. The Board consists of the Commissioner of Education, the Commissioner of the Department of Community Affairs, the Treasurer, and the Executive Director of the Economic Development Authority and is authorized to have 11 public members appointed by the Governor with the advice and consent of the Senate.
At least one public member must have expertise in law enforcement, while the remaining public members must have knowledge or expertise in real estate development, construction management, finance, architectural or building design, or any other related field.
The SDA is required to report to the Governor and the Legislature every six months on its progress.
The EDA retained its role to provide financing through issuance of bonds for the SDA if new bonding authorization is approved by the Legislature.
What reforms have been undertaken?
The SDA has undergone comprehensive reform since Governor Jon S. Corzine took office in January 2006:
Fiscal Oversight through Comprehensive Budgets and Project Schedules
All SDA projects are now required to have a comprehensive budget, scope and schedule before receiving SDA Board approval and beginning work on a project.
Prioritization of Projects
Projects are now prioritized by the N.J. Department of Education, based on educational need. The SDA collaborates with the DOE to sequence those projects.
Recouping Costs to Protect Taxpayers from Paying for Others' Mistakes
The SDA has established an Environmental Cost Recovery Initiative Team to recover funds from responsible parties for the costs of environmental remediation of project sites.
The SDA's Office of Chief Counsel is working to recover funds from responsible parties for project delays and design errors.
The SDA has recovered $6.5 million from two firms for mistakes on a Neptune project and has sued Gilbane Building Co. for additional recoveries.
The SDA has filed lawsuits seeking to recover tens of millions of dollars for environmental remediation costs. It also is seeking to recover costs for errors by architects and engineers.
New Executive Management Team
Executive management has changed almost entirely since the 2006 inception of the Corzine administration through a combination of new hires and promotions of capable staff.
Cost Savings Initiatives
The SDA has made improvements to project management, in-sourcing information technology purchasing, in-sourcing safety services and proactive initiation of cost recovery actions, and claims mitigation.
By the end of 2007, the SDA had achieved overall savings of $35.2 million. Savings are being institutionalized.
Transparency of Agency Actions
The SDA posts Board memos, agendas and minutes online prior to scheduled board meetings.
Two Assistant Inspector Generals are assigned to the Authority’s West State Street offices. They have full access to SDA records and, if necessary, conduct interviews of SDA staff and any entity doing business with the SDA.
Protecting Against Inflated Costs in Land Acquisition
The SDA now has the ability to acquire property before municipal approvals or variances are granted, preventing speculators from increasing costs.
Increased Collaboration with Stakeholders
The SDA has developed Project Teams to ensure all stakeholders are actively involved throughout a construction project.
Besides the SDA, who is responsible for carrying out the School Construction Program?
Attorney General
The Attorney General's Office develops and reviews contracts, memoranda of understanding, regulations, procedures, and other documents associated with the implementation of the program. The AG provides advice and acts as legal counsel for SDA.
Department of Community Affairs
The Department of Community Affairs, Division of Government Services' ("DCA") main focus is on the contracting process to ensure that contracts comply with the Public Schools Contract Law (PSCL) and associated statutes. DCA has developed a series of checklists that school districts are required to complete to "certify" that its procurement of professionals was done in accordance with the requirements of the PSCL. Permits for school facility projects managed by SDA are issued by DCA.
Department of Education
The New Jersey Department of Education ("DOE") is responsible for reviewing and approving each school district's Long Range Facilities Plan (LRFP) and each school construction project to ensure that the plans are in compliance with State building standards, referred to as "facility efficiency standards" and for conformity with educational requirements.
The department, in consultation with districts, in 2008 developed a list of critically needed projects based on LRFPs and ranked primarily by educational priority. The SDA, in consultation with DOE, developed the New Funding Allocation and Capital Plan for SDA Districts to apply new funding and to achieve programmatic policies and goals.
Department of Labor
The Department of Labor ("DOL") monitors the payment of prevailing wages on all school construction projects. All contractors must be "registered" with the DOL to work on school construction projects. In addition, SDA has entered into a Memorandum of Understanding (MOU) with Labor that establishes guidelines for implementation of a workforce development program, funded by the Act.
Department of Treasury
Treasury will coordinate the classification of all contracting and professional consulting firms with the SDA and work with SDA on the issuance of the $8.6 billion in State-contracted debt. The SDA is considered in but not of the Department of Treasury.
New Jersey Commerce Commission
The New Jersey Commerce Commission registers businesses as small business enterprises (SBE) under current set-aside State law requirements. It is the only certification that the SDA recognizes for registration of consultants and of contractors as SBE firms.
State Police
Investigatory background checks of all professional consultants and construction contractors are being handled by the State Police as of July 2008. This responsibility previously had been held by the Office of Attorney General's Bureau of Fiscal Oversight.
Where can I get assistance with additional questions regarding the school construction program?
An SDA Help-Line has been established at 609-943-4143 to support your questions about the school construction program.
Who can I contact to report wrongdoing?
If you suspect wrongdoing at any SDA construction sites or offices, please contact the OIG Hotline at (866) 633-6585, or fax information to (609) 984-3990.
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SDA Districts
What are SDA Districts?
SDA Districts are 31 special-needs school districts throughout New Jersey. They were formerly known as Abbott districts, based on the Abbott v. Burke case in which the New Jersey Supreme Court ruled that the State must provide 100 percent funding for all school renovation and construction projects in special-needs school districts. The Abbott rulings established the right of children in financially needy, urban communities to a "thorough and efficient" education under the State constitution, which includes the right to attend public school in buildings that are safe and adequate. The districts were renamed after the elimination of the Abbott designation through passage of the state’s new School Funding Formula in January 2008.
Click here to view the list of SDA Districts.
What are SDA's responsibilities with respect to SDA Districts?
The SDA is responsible for financing 100% of eligible costs. It also procures design, construction and construction management for DOE-approved facilities projects in these school districts, as well as acquiring land as necessary. The SDA manages most projects for these districts. However, the August 2007 legislation establishing the SDA provided a mechanism for delegating projects to SDA Districts that are deemed capable and qualified by the DOE, and determined by SDA to have the capacity. The DOE and SDA each are developing sets of regulations to address these issues.
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Regular Operating Districts
What is a Regular Operating District?
A Regular Operating District (ROD) is any New Jersey school district that is not designated as one of the 31 SDA Districts.
Is grant money available for Regular Operating Districts?
An additional $1 billion was made available in legislation signed by Governor Jon S. Corzine on July 9, 2008.
DOE is currently working to develop an application and review process for the ROD grant program. The program will incorporate a prioritization methodology anticipated by the legislation. More than one funding cycle will take place to distribute the additional funding.
What are Section 15 grants?
Grants were authorized under the Educational Facilities Construction and Financing Act of 2000, and provided additional funding on July 9, 2008 in legislation signed by Governor Jon S. Corzine. School districts generally received 40 percent of eligible project costs. School districts must finance the balance of the cost of their facilities project.
To be eligible for funding, a school project needs to meet the Facilities Efficiency Standards (a guideline for space allowance) as well as have elements deemed necessary for a thorough and efficient education by DOE.
Grants are paid out as districts attain specific project milestones.
| Execution of grant |
0.5% |
| Design phase payment (representing reimbursement
of payments to design and other consultants) |
10% |
| 35% Construction Completion |
30% |
| 65% Construction Completion |
40% |
| Substantial Completion |
15% |
| Final Completion |
4.5% |
At each request for payment by the district, SDA sends a Grant Inspection Team to view documents justifying disbursement. Teams also physically inspect the school.
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'Green' Construction
Is the SDA incorporating energy efficiency into the design of school facilities?
Yes. The Law provides at Section 2(d) that the design of school facilities should incorporate maximum operating efficiencies and new technologies to advance energy efficiency of school facilities and the efficiency of other school building systems. Executive Order No. 24 designates that all new school design shall incorporate the guidelines developed by the United States Green Building Council known as "Leadership in Energy & Environmental Design ("LEED"), Version 2.0, to achieve maximum energy efficiency and environmental sustainability in the design of schools. SDA will utilize energy efficient design specifications for school facilities projects.
What are "high performance" schools?
The term "high performance" refers to a number of design components which can enhance the efficiency and effectiveness of the school building design. Energy efficiency, resource efficiency, and sustainability are all design concepts that will make the school building function better in its environment, as well as improve the learning environment.
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Professional Consultants (Architects, Engineers, Landscape Architects, Planners, Surveyors, and Construction Management)
Pre-Qualification Procedures
How does my firm qualify to perform design or construction services on a school facilities project managed by the SDA?
Your firm must be pre-qualified by the SDA in order to submit responses to the SDA’s requests for proposals. Effective July 1, 2004 to become an SDA Consultant you must have a current classification with the New Jersey Department of Treasury, Division of Property Management and Construction (DPMC). Consultants having this classification are required to fill out the SDA Pre-qualification Application, which once received is reviewed for completeness and forwarded to the New Jersey State Police for a moral integrity screening. Upon review from the State Police, the SDA will pre-qualify a firm in the same discipline and classification limit as DPMC. The effective date will be the date SDA issues a pre-qualification letter. The expiration date will be the same as DPMC.
Please note: The SDA requires all subconsultants of any tier in the DPMC Disciplines listed below, whose contract is in an amount which is equal to or greater than $500,000, be pre-qualified by the SDA.
P001 Architecture
P002 Electrical Engineering
P003 HVAC Engineering
P004 Plumbing Engineering
P005 Civil Engineering
P007 Structural Engineering
P011 Environmental Engineering
P015 Land Surveying
P038 Asbestos Safety Control Monitoring
P051 Materials Testing Laboratories (P066 – P103)
01010 Construction Management
Is there a fee that must be submitted with the SDA Pre-qualification Application?
There are no fees associated with the SDA Prequalification Application.
Why does my business need Business Registration Certification?
State law (Public Law 2001, c.134) prohibits contracting with any state, county or municipal agency, unless the business has Business Certification from the New Jersey Treasury's Division of Revenue. This law became effective September 1, 2001.
This form may be completed and filed online; access is available on this website File with the NJ Treasury Division of Revenue.
What is a "moral integrity" screening?
The New Jersey State Police does "moral integrity" background checks that verify the accuracy of the information provided by each applicant, including such things as ownership and investigations pending.
How do I confirm that my firm is on the SDA's list of pre-qualified professional consultants?
The entire list of pre-qualified professional consultants with their addresses, contact information and authorization levels are listed on the SDA's website. The list is updated on a weekly basis and is searchable according to company name, locality, profession, and specialty or work classification.
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Procurement Process
How do I submit a proposal to SDA to do work as a professional consultant for a school facilities project?
Design consultant projects are broken down into two categories. Category 2 uses a random selection process of pre-qualified firms to develop a short list of firms eligible to submit a proposal. Category 3 uses a traditional Request for Qualifications/Request for Proposal (RFQ/RFP) process whereby any pre-qualified firm meeting the criteria as listed in the Advertisement is eligible to submit a proposal.
Effective November 10, 2003, projects with construction cost estimates (CCE) up to $25 million for new construction and $20 million for alterations/renovations/additions will be subject to the Category 2 process. CCE’s exceeding these amounts will be subject to the Category 3 process.
If your firm wishes to participate it will be necessary to have an active pre-qualification by SDA at the time of the short-listing process or preliminary proposal due date. In order to submit a proposal for an advertised project, a preliminary proposal must be completed and filed with the SDA on or prior to the due date specified in the advertisement. The preliminary proposal will be used by SDA to shortlist firms that will then be registered to submit formal detailed technical proposals. The Preliminary Technical Proposal Form 200 is available on this website.
What is the process used for evaluating proposals?
All proposals for work to be done in school districts are independently reviewed by a selection committee comprised of a school district representative and SDA staff, then ranked, negotiated and awarded to the consultant having the best qualifications for the project.
What criteria ("other factors") are used by the SDA to select professional consultants?
The selection committee evaluates the technical qualifications of the firms so that they can be ranked in terms of their ability to perform the engagement.
The criteria for this evaluation include:
1. Understanding of the project.
2. Team experience.
3. Experience of key team members.
4. Appropriateness of staffing.
5. Project Approach.
6. The Firm's approach to maintaining schedule.
7. The Firm's approach to maintaining budget.
Following this "qualifications based" selection process, SDA staff then open the fee proposals and negotiate a fee with the highest ranked firm. If an agreement is reached, a contract is awarded; however, if the parties cannot come to an agreement, negotiations begin with the next ranked firm. This process continues, if necessary with successively ranked firms, until an agreement is reached and a contract is executed.
Can I be included in the list of firms eligible to submit a proposal if I have a previous working relationship with a particular SDA District?
The law provides that contracts are competitively bid; however, a school district may request in writing to SDA that an architect who has prepared the educational specifications and programmatics for the school facilities project that is the subject of the solicitation is added to the "short list" of firms invited to submit proposals. The architect will then have an equal chance to compete for the project.
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General Contractors and Subcontractors
Classification
What firms need SDA Pre-qualification to perform construction services on a school facilities project?
All prime bidders and required subcontractors as identified in the bid advertisement need to be pre-qualified by SDA.
How does my firm get SDA Contractor Pre-qualification?
To become an SDA contractor, you must have a current classification with the NJ Department of Treasury, Division of Property Management and Construction (DPMC).
Contractors and subcontractors may obtain pre-qualification status from SDA based upon the same trade or work classification and aggregate rating limit issued to them by DPMC.
A contractor having this DPMC classification may then fill out the SDA Contractor Pre-qualification form, which once received, is forwarded to the New Jersey State Police for SDA for "moral integrity" screening. However, in order to qualify to bid on school facility projects, firms must also have Public Works Contractor Registration, and Division of Revenue Certification.
Does updating my DPMC classification automatically update my SDA prequalification?
No. The DPMC and the SDA are separate agencies. Whenever you renew your DPMC, you must submit a copy of your Notice of Classification to SDA along with a prequalification questionnaire in order to update your SDA prequalification.
Is there a fee that must be submitted with the SDA Pre-qualification Application?
There are no fees associated with the SDA Prequalification Application.
Where can I find these required forms?
A one-stop shop on our website is in place where you can find all the above mentioned forms. Contractor pre-qualification page
What is a "moral integrity" screening?
The New Jersey State Police does "moral integrity" background checks that verify the accuracy of the information provided by each applicant, including such things as ownership and investigations pending.
How do I apply for "moral integrity" screening?
Once a contractor applies for SDA pre-qualification, its application is automatically sent to the New Jersey State Police for "moral integrity" screening.
What classifications/certifications does a subcontractor need to be eligible to do work in the school construction program?
In order to work on a school construction project, a subcontractor who is not bidding as a prime, and is not identified in the bid advertisement, needs:
1) Public Works Contractor Registration, The Division of Wage and Hour Compliance, NJ Department of Labor
2) Division of Revenue Certification, NJ Department of Treasury.
These forms are available on the "one-stop shop" on our website. Contractor pre-qualification page
Please Note: The SDA requires all subcontractors of any tier in the DPMC Trade Classifications listed below whose contract is in an amount which is equal to or greater than $500,000, be pre-qualified by SDA.
C006 - CM as Constructor
C007 - Design Build
C008 - General Contractor
C009 - GC/Alterations & Additions
C019 - Concrete/Foundation/Footings/ Masonry work
C021 - Demolition
C029 - Structural Steel
C030 - Plumbing
C039 - HVAC
C045 - Sprinkler Systems
C047 - Electrical
C066 - Roofing-Membrane EPDM
C067 - Roofing-Membrane PVC/CPE/CSPE
C068 - Roofing-Membrane Modified Bitumen
C069 - Roofing-Urethane
C070 - Roofing-Built Up
C071 - Roofing-Metal
C072 - Roofing-Tile/Slate/Shingles
C092 - Asbestos Removal/Treatment
C093 - Asbestos Removal/Mechanical
C096 - Lead Paint A
How do I confirm that my firm is on SDA’s list of pre-qualified contractors?
The entire list of pre-qualified professional consultants and contractors with their addresses, contact information and authorization levels are listed on this website. The list is updated on a weekly basis and is searchable according to company name, locality, profession, and specialty or work classification.
As a vendor of construction materials, do I need to be SDA pre-qualified?
No. A supplier of goods does not need SDA pre-qualification. However, if you would like to be eligible to participate in New Jersey's Set Aside Program, and your business enterprise qualifies as a Small Business Enterprise (SBE), you should file with the NJ Commerce Commission. The form may be found at this link: http://www.nj.gov/njbusiness/contracting/services/small_business_set_aside.shtml
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Procurement Process
Where do I find out about SDA school projects?
Contractors will not be notified of school construction projects. All SDA school construction projects will be advertised in the classified section of the Newark Star-Ledger and Trenton Times newspapers. All of the projects will also be advertised on the SDA website.
What are the processes and criteria for the procurement of contractors for work undertaken by SDA?
SDA-initiated school facilities projects will be publicly advertised and awards will be made based upon "price and other factors." "Other factors" include an evaluation by SDA of the ability of the contractor(s) to complete the contract and requirements related to the contractor's:
(1) experience on projects of similar type and complexity;
(2) performance on prior contracts with SDA or the State;
(3) experience with special technologies or expertise that the project may require;
(4) understanding of the methods needed to complete the project on time and on budget;
(5) the timetable to complete the project;
(6) plan for quality assurance and control;
(7) and other similar types of factors, such as safety record, affirmative action hiring, prevailing wage record, among others.
In its evaluation of bids, the consideration given to price by SDA will be at least equal to the consideration given to the combination of all "other factors."
As an SDA prime contractor, where can I identify small, women and minority owned businesses and subcontractors?
You can identify small, women and minority owned businesses from various NJ State department databases, however, SBE firms must be registered as such by the NJ Commerce Commission. The New Jersey Commerce Commission has made available its New Jersey Selective Assistance Vendor Information (NJSAVI) database. This database comprises a statewide listing of firms certified as a small, woman and minority owned business enterprises. Visit this link http://www.nj.gov/njbusiness/contracting/ for NJSAVI information.
How can a subcontractor or a material supplier avail themselves of the economic opportunities presented by this landmark school construction program?
SDA is posting the names and contact information of the prime contracting firms attending SDA mandatory pre-bid construction meetings. This attendee list is available on our website on the Construction Project Advertisements Page after the pre-bid construction meeting has taken place. These listings can serve as marketing and networking resource to the subcontracting community who are seeking to provide materials and services for the school construction program.
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Equitable Employment and Business Opportunities
How will the SDA address set-asides under the school construction program?
The SDA Office of Contractor and Workforce Compliance will oversee and implement an effective and pro-active Small Business Enterprise program. SDA will abide by current State set aside law and Executive Order 71. The law and Executive Order 71 provide for 25% of the total dollar of publicly advertised contracts awarded by SDA within a fiscal year to go to small business enterprises.
What are the goals of the Office of Contractor and Workforce Compliance?
The goal of the office is to design and implement effective employment opportunities for women, small business enterprises and minorities in the construction trades and promote prime and subcontracting opportunities for small, women and minority owned businesses.
What is the SDA Construction Trades Training Program for Women and Minorities (CTTP-WM)?
The Construction Trades Training Program for Women and Minorities (CTTP) is a free preparatory training program funded and monitored by the SDA, administered by the NJ Department of Labor and Workforce Development, and implemented by community groups working in partnership for SDA District residents. The CTTP provides outreach and training to help participants upgrade their academic and job readiness skills in preparation for competing for trade union apprenticeships and other construction-related employment
How will the 25% SBE goal be met?
The 25% goal of the SDA small business enterprise program can be met in two ways:
1) The SDA may designate certain contracts as set-aside contracts open to bid by SBE registered consultants or SBE registered prime contractors only. These contracts will be clearly identified in all contract advertisements as SBE set-aside contracts.
2) For all contracts (including set-aside contracts), consultants and prime contractors are required to award contracts to SBE subconsultants and SBE subcontractors.
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