15 FAM 640
modernization: minor construction and improvement (MCI) Program
(CT:OBO-124; 04-21-2023)
(Office of Origin: OBO/OPS/AM)
15 FAM 641 OVERVIEW
(CT:OBO-124; 04-21-2023)
a. The Minor Construction and Improvement (MCI) program funds all modernization projects and is the mechanism through which the Department addresses improvements that concurrently resolve deficiencies and deferred maintenance backlogs at U.S. Government-owned and, in limited circumstances, leased properties abroad. The program is managed by the Office of Area Management, Operations Directorate (OBO/OPS/AM).
b. MCI projects restore facilities and/or building systems to a code-compliant and fully functioning condition, alter or improve facilities and/or building systems to implement new or higher standards, accommodate new functions or technologies, reduce carbon emissions, substantially lower the unit life-cycle cost of the operation of facilities and/or building systems, or replace building components that typically last more than 50 years. These projects either provide a significant change from the existing building's design intent or are focused on improving individual systems or spaces within a building but can also include replacing multiple systems or renovating multiple spaces.
c. MCI project requests are submitted by post or OBO technical staff as soon as a deficiency or need is identified. While OBO/OPS/AM reviews all requests periodically, the deadline for post to submit requests for consideration in the next spending plan is January 31 of each year:
(1) For project requests with an estimated cost of over $500,000, or cost estimates provided by post requiring further analysis, the Office of Cost Management in the Program Development Coordination and Support Directorate (OBO/PDCS/COST) may assist posts with preparing a current working estimate of the anticipated cost;
(2) Requests for MCI projects that impact CAA space may require a construction security plan. The Office of Area Management will coordinate a review by the Office of Security Management in the Construction, Facility, and Security Management Directorate (OBO/CFSM/SM); and
(3) Emergency and contingency requests and smaller projects are reviewed by the MCI committee as they are submitted.
d. OBO/OPS/AM coordinates a comprehensive review of all project requests to establish a priority ranking score (see 15 FAM 645.3 for more details). Once scored, proposals are in line to qualify for available funding, competing with other worldwide requirements for inclusion in the spend plan. Once the annual spend plan is approved by the OBO Director, prioritized requirements become projects. Projects with the highest scores are generally funded first and priority is given to urgently needed projects, especially those affecting fire and life safety.
e. OBO encourages post to coordinate current and projected MCI project needs with their assigned OBO area management officer.
15 FAM 642 Alterations, Improvements, MODIFICATIONS to Newly Constructed Facilities
(CT:OBO-124; 04-21-2023)
a. For at least two years after completion of a capital construction project, i.e., New Embassy or New Consulate Compounds (NEC/NCC), post must not make any alterations or improvements (including addition of annex buildings or other structures, or changes in the initial furniture, furnishings, appliances, and equipment) to the facilities covered by the project without prior OBO approval via cable.
b. Any correction of problems with installed equipment and systems; safety, health, and environmental issues; and emergency work must first receive OBO approval via cable confirming the work requested does not void any warranties. See 15 FAM 1010.
15 FAM 643 General policies
(CT:OBO-124; 04-21-2023)
a. The Office of Area Management in the Operations Directorate, Bureau of Overseas Buildings Operations (OBO/OPS/AM) manages the MCI program prioritization and develops the MCI annual spending plan.
b. The embassy security, construction, and maintenance appropriation (ESCM), administered by OBO, is the only applicable appropriation for construction, alteration, demolition, and improvement activities, regardless of whether the construction is considered permanent or temporary or the length of the property's intended use.
c. Although some projects require advance construction work that may include multiple funding streams, e.g., space renovations that include new furniture or equipment, or non-building equipment installation, OBO MCI funding must be obtained for the construction elements. For these projects, posts must collaborate with OBO and their respective regional bureaus to ensure all appropriate funding is approved. Two common examples are:
(1) Non-building equipment installation that requires advance construction work. An example could be the purchase of car charging stations that require construction elements such as a concrete foundation, roofing structure, and/or new utility connections. In this example, non-OBO funding would be used for the charging station, but OBO MCI funding must be obtained for the construction elements; and
(2) Space renovations that include new furniture or equipment. For example, post could seek to add a wall inside the embassy to create new office space. In this example, OBO MCI funding must be obtained for the construction of the wall, but non-OBO funding would be used for any new office furniture, furnishings, or IT equipment that the new space requires.
d. OBO approves and funds MCI projects for government owned/commercially leased (GO/CL) nonresidential and residential properties under the jurisdiction of the Department of State. ICASS, other bureau, or other agency funds may not be used for MCI projects (see 6 FAH-5 H-341). NOTE: The following exceptions:
(1) OBO does not approve or fund projects executed at USAID properties (15 FAM 1020);
(2) Alterations particular to the needs of another agency are not funded by OBO (15 FAM 162.1, subparagraph d(1)); and
(3) Repairs necessitated by deliberate acts of negligence (15 FAM 162.1, subparagraph d(2)).
e. All construction or structural alterations require approval from OBO (inclusion on the annual MCI spending plan; an approved OBO permit; and appropriate funding) before any construction or improvement activities can take place at government-owned or -leased properties abroad.
f. Once a project is in the MCI spending plan (see 15 FAM 645.3), post can begin the permit request process. To apply for an OBO permit, post should visit the OBO Permit site or reach out to OBOPermits@state.gov. See 15 FAM 687 for additional guidance on permitting.
15 FAM 644 MCI Programs
(CT:OBO-124; 04-21-2023)
a. MCI projects are modernization projects that intentionally alter, eliminate, reduce, or increase the use or function of a space, system, or piece of major equipment from what it was originally intended or expected to perform over the building’s life cycle. MCI projects are captured in one of ten separate programs as listed below:
· Fire Systems
· Electrical Infrastructure
· Utility Management
· Elevator and Mechanical Systems Management
· Natural Hazards
· Classified Project Support
· Roof and Façade Management
· Hazardous Materials (HAZMAT) and Environmental Protection Systems
· Barrier-Free Accessibility
· Special Repairs and Improvements
b. MCI projects include facility improvements, such as installing new building systems (e.g., adding or upgrading heating, ventilation, and air-conditioning, modernizing electrical systems, improving structural systems, etc.) that significantly lower the life-cycle cost of the operation; correcting life and safety deficiencies; reducing carbon emissions; adding new spaces (e.g., kitchen or bathroom); changing the size, nature, or function of a facility (e.g., enlarging offices, conference areas, bathrooms, or kitchens; expanding the size of a building; combining two residential units into one or vice versa; and converting residential spaces into office spaces or vice versa).
c. The following list gives examples of MCI projects:
(1) Changing a property’s use (e.g., converting storage space to a mailroom, cafeteria, or office space);
(2) Adding modular facilities (e.g., warehouse containers, mail-sorting facilities, containerized housing units (CHUs), etc.);
(3) Paving (not repaving) a new driveway, constructing a new parking lot, adding a patio or leisure area (i.e., sports court and playground);
(4) Altering electrical power systems (e.g., replacing medium voltage with low voltage systems), or adding elevators;
(5) Installation or modernization of building systems to meet code requirements (e.g., fire detection, fire suppression, isolation systems) and projects that impact OBO codes and standards for architecture (e.g., exits, room capacities), structural (e.g., seismic upgrades, load-bearing walls, floor-loadings), or electrical or mechanical reconfigurations;
(6) Adding photovoltaic or other sustainable or renewable energy systems;
(7) Building system replacements to meet modern technologies and standards;
(8) Altering or enhancing building systems, fixed equipment, and major components when required due to natural hazards;
(9) Installation of new canopies, awnings, carports, and gazebos;
(10) Drilling a new borehole (water well) and/or installing an irrigation system;
(11) Converting a shipping container to be used for functional purposes (additional storage space, guard changing rooms, office space, etc.);
(12) Replacing major building equipment with a modernized system (chillers, generators, elevators, etc.);
(13) Renovating culturally/historically significant properties;
(14) Replacing an existing hydraulic or overhead traction elevator with a machine-room-less elevator;
(15)Replacing a roof or façade system with a modernized system; and
(16)Installing fall prevention systems (e.g., guardrails).
d. MCI projects do not include repairs. Repairs are covered under Restoration (see 15 FAM 631.1).
15 FAM 645 PROCESSING MCI requests
(CT:OBO-124; 04-21-2023)
15 FAM 645.1 Submission of MCI Project Requests
(CT:OBO-124; 04-21-2023)
a. Post is encouraged to develop and submit project requests throughout the year as they arise by entering them in OBO’s Global Maintenance Management System (GMMS), Data Calls module, Facilities Work Plan (FWP).
b. Generally, the facility manager (FM) at post submits MCI project requests with input and approval from post management, to include the regional security officer (RSO), the general services officer (GSO), and other relevant stakeholders. The requests categorized as modernization submitted in GMMS are interfaced to OBO's Building Management Integrated System (BMIS) for acceptance into the MCI program and for future funding consideration by OBO Area Management.
NOTE 1: OBO Overseas Regional Support Centers (ORSCs) may also submit requests on behalf of and in support of posts.
NOTE 2: Requests for MCI projects may also be created in BMIS directly by OBO engineering and technical staff when a requirement is identified by headquarters staff and/or other OBO customers.
NOTE 3: For emergency or contingency requests, post is encouraged to also communicate the urgency to their OBO/OPS area management officer to ensure prompt attention.
c. Post should submit anticipated requirements as far in advance as possible. Routine requests submitted by the January 31 deadline will be considered for funding in the next fiscal year unless post indicates it is an emergency, or requests that execution be scheduled for an outyear.
d. Construction or structural alteration requests must be approved by OBO, obtain an OBO permit, and receive appropriate funding. These are separate and distinct components in the MCI project approval process. An OBO permit/approval and appropriate funding must be obtained before any MCI project related activities may start.
e. The responsible area management officer for the post submitting the request ensures the proposed request captures essential information, such as a clear detailed scope of work, a compelling justification, an estimated cost, critical project milestones, and other relevant project request information.
f. MCI coordinating offices within OBO:
(1) Office of Area Management (OBO/OPS/AM) is responsible for evaluating, scoring, and promoting all modernization requirements;
(2) Office of Facility Management (OBO/CFSM/FAC) is responsible for coordinating the modernization of elevator and roofing systems;
(3) Office of Fire Protection (OBO/OPS/FIRE) is responsible for coordinating modernization of all fire systems;
(4) Office of Cultural Heritage (OBO/OPS/CH) is responsible for coordinating modernization within or attached to all cultural heritage properties;
(5) Office of Design and Engineering (OBO/PDCS/DE) is responsible for coordinating modernization of all building systems not listed above; and
(6) Office of Cost Management (OBO/PDCS/COST) is responsible for providing cost estimating services for all projects over $500,000.
g. Requests for MCI projects that necessitate a design and/or redesign of an existing property and/or new or affected systems for which posts intend to use a qualified and licensed professional Architect/Engineer (A/E) must be reviewed by OBO's Office of Design and Engineering (OBO/PDCS/DE) to determine whether professional A/E design services will be required:
(1) MCI funding can be used for A/E services associated with clarifying or further defining a requirement;
(2) Post must submit a proposal for funding prior to acquiring any A/E services to define the requirement; and
(3) A/E design documents must be submitted to OBO's Office of Design and Engineering (OBO/PDCS/DE) for review, approval, and permit issuance before post may begin any physical work on the project.
15 FAM 645.2 Guidance for Non-Standard Project Proposals
(CT:OBO-124; 04-21-2023)
a. MCI-type projects for operating leased property managed by USAID must be approved in advance and funded by the USAID/Washington's Overseas Management Division (USAID/W - M/MS/OMD).
b. Proposals involving telecommunications matters (such as telephone) must include the concurrence and recommendation of the director of the Regional Information Management Center (RIMC) and, if appropriate, the area telecommunications officer, as the Bureau of Information Resource Management (IRM) funds the equipment. This is not applicable to USAID properties.
c. Proposals involving computer-related equipment, space, cables, or electrical connections must include the concurrence of the post Information Systems Security Officer (ISSO). MCI projects do not fund information technology equipment. IT equipment is funded by IRM or the requiring office/agency.
d. Any project that involves technical or physical security proposals requires the concurrence of the Regional Security Officer/Post Security Officer (RSO/PSO) and the cognizant security office of the parent agency (e.g., OBO's Office of Security Management (OBO/CFSM/SM)). See 15 FAM 687 for OBO Project Assistance, Approval, and Permitting Requirements.
15 FAM 645.3 Approval of MCI Projects
(CT:OBO-124; 04-21-2023)
a. OBO's MCI Committee is charged with approving MCI project requests. The committee is chaired by Area Management and includes subject matter experts from the following OBO offices: Design and Engineering (DE), Facility Management (FAC), Residential Design and Furnishings (RDF), Construction Management (CM), Security Management (SM), and Project Development and Coordination (PDC).
b. The OBO review process for MCI requirements takes place between February and April each year to determine the next fiscal year MCI spending plan. The deadline for posts to submit requests for consideration for inclusion in the next spending plan is January 31 of each year.
NOTE: Emergency and contingency requirements will be considered for funding when proposed, subject to the availability of funds and sufficient justification.
c. OBO must review and approve all proposed MCI projects in Department of State-owned or -leased property to ensure they meet International Building Codes (IBC) and OBO design standards. Please NOTE:
(1) Approvals must be obtained before work commences (see 15 FAM 687 for approval requirements). Projects executed in operating leased properties also require written permission from the landlord and confirmation that post requested that the landlord implement the improvement and was denied by the landlord;
(2) For residential properties, post must not make alterations to meet the personal desires of the occupant(s); and
(3) Proposals for alterations to Department of State buildings to meet another agency’s requirements must have technical review and approval from OBO. In addition, such projects require the occupying/requiring agency to send funding for the project to OBO via an interagency reimbursement (see 15 FAM 643).
d. The use of the annual spending plan is intended to help posts and OBO customers navigate the project submission and approval process and have sufficient time to plan for project activities.
e. Requests for projects with an estimated cost of under $249,000, also referred to as "projects of opportunity," are considered as they are received and are not normally listed in the annual spending plan. These requests are for projects that improve morale at post, improve a representational function, or address operational needs. Projects of opportunity are reviewed by the OBO Area Management Office "Under $249k Committee" consisting of the Area Management office director and the five Area Management regional division directors. As with all MCI requirements, projects of opportunity are subject to availability of funds and are funded on a first-come, first-served basis throughout the year:
(1) Emergency and contingency project requests are considered for funding when proposed. Since these project requests compete with worldwide funding and are subject to the availability of funds, posts are encouraged to limit requests for emergency project efforts to those that directly impact the health and safety of employees and family members and/or the preservation of personal or U.S. Government property. The urgency of these needs must be fully documented and accompanied by sufficient justification; and
(2) Post should contact their OBO area management officers as soon as possible to ensure any project that may need a building permit is planned well in advance of the expected execution/construction of the project. For example, if post is waiting for a property to be vacant before executing a project, then project planning should ideally begin a year in advance.
f. MCI requirements are organized in priority score order for inclusion in the development of the annual spending plan. The MCI committee considers multiple inputs throughout the prioritization process to include the following categories:
(1) Building systems (communications, electrical, fire protection, HVAC, interiors, grounds, etc.)
(2) Threat vulnerability (acoustics, air quality, water quality, hazardous materials, flood risk, fire & life safety, physical hazards, seismic risk, etc.)
(3) Persons directly affected;
(4) Functionality (condition, operational impact, functional improvement, and accessibility); and
(5) Business case (strategic priority, cost avoidance, facility replacement, Facility Condition Index, System Condition Index, and sustainability).
g. Each of the above categories generates a corresponding score in the system. The final score is a tool used to develop the approved spending plan. If a requirement is not funded in the fiscal year as originally requested, it remains on the list and is considered for prioritization in a future year.
h. The OBO Director approves the final annual MCI spending plan by September 30th of each year. Once approved, the area management officers communicate the list of both approved and rejected projects to their respective posts by October 15th.
15 FAM 646 EXECUTING MCI Projects
(CT:OBO-124; 04-21-2023)
a. After the MCI spend plan is approved by the OBO Director, the MCI project execution committee meets to review the FM recommended project execution strategy, assess the complexity of the MCI projects, and determine the best execution strategy (post or OBO-managed). Within the OBO managed portfolio, the committee will determine which office in OBO will execute and manage the project. The MCI execution committee is chaired by the OBO/PDCS/PDC office director with participating office directors from OBO/CFSM/(FAC, SM, CM), OBO/PDCS/(DE, PDC), and OPS/AM:
(1) Factors evaluated to determine project management responsibility include the complexity of the project scope, the dollar amount, the workload and capabilities of post staff, and the classification level of the project; and
(2) When a project will be post-managed, the area management officer will inform post of the decision.
b. Post-managed projects are supported by OBO subject matter experts by way of OBO building permit review and issuance, technical support from architects, engineers, and other specialized technical staff, and if needed, project support staff temporary duty (TDY) visits to post for various activities:
(1) The OBO ORSCs can provide additional onsite assistance to posts without FMs or posts with multiple complex projects requiring the need for short-term management assistance;
(2) OBO will generally review and approve requests for architectural and engineering (A/E) services, statements of work, cost estimates, and other project documentation at posts’ request; and
(3) The FM, GSO, or their designated staff may serve as the contracting officer's representative (COR) for post-managed projects and guides the coordination of project activities.
c. OBO-managed projects normally involve complex system replacements, large interior reconfiguration efforts, or impacts to classified/restricted areas. These projects generally take two to three years from submission to completion due to the time needed to develop a statement of work, obtain project and funding approvals, contract for and obtain a design, process the permit, solicit the contract, and execute the work:
(1) An OBO project manager may be assigned to these projects and, when needed, a construction management professional is also assigned. These managers ensure that the project is designed and constructed according to Department standards; and
(2) OBO works with post, the Office of Acquisition Management (A/OPE/AQM), Diplomatic Security (DS), and other agencies to develop these more complex efforts. Many of these projects fall under the purview of the Office of Small and Disadvantaged Business Utilization (A/OSDBU) and are identified for inclusion in meeting the Department’s small business contracting goals.
15 FAM 647 THROUGH 649 UNASSIGNED