• Funds from Act 2020-167 for capital improvements for the support of public education: Following the sale and close of bonds as well as a meeting of the PSCA Board of Directors in November 2020, the Alabama Department of Debt Management (334-353-3328 or 334-353-1199) sent letters of total fund allocation amounts and instructions to the State Department of Education (SDE) (334-694-4603), public universities, and other applicable entities. SDE sent letters of instructions to each public K-12 school system. If you have not received a communication regarding your total PSCA fund allocation amount, please contact the appropriate entity named above.
• The local owner is the entity receiving a PSCA allocation, such as a municipal Board of Education, county Board of Education, higher education institution or education-related state agency. Alabama PSCA is a co-owner.
• Capital Improvement as defined in Act 2020-167 "means capital outlay projects that include the planning, designing, inspection, purchasing, construction, reconstruction, enlargement, improvement, repair, or renovation of permanent buildings containing classrooms, offices, libraries, laboratories, clinical or teaching facilities, dormitories, vocational and professional and industrial training facilities, cafeterias, alternative schools, physical education facilities, research facilities, academic structures to reduce portable classrooms or substandard classroom facilities, related improvements and land as sites therefore, together with tangible personal property that becomes a permanent part of such facilities."
• Allowable costs, depending on the bond/Act, may include capital improvements, DCM Fees, consulting fees and equipment costs. Please contact the Dept. of Debt Management (334-353-3328 or 334-353-1199) for clarification of allowable costs that may be covered on a case-by-case basis.
• After total fund amounts have been allocated by the PSCA Board of Directors or by the Board-designated approval authority (such as SDE), a local owner must submit a project request (for a portion or for all of the total fund allocation amount) for PSCA review of allowable costs to the PSCA Board of Directors in care of the Alabama Department of Debt Management (334-353-3328 or 334-353-1199), or to the Board-designated approval authority per the original letters of instructions. For example, public K-12 local owners must request project review for PSCA fund use from the SDE, LEA Auxiliary Services, School Facilities (334-694-4603).
  • A project request for review of PSCA allowable costs must be on a per-project basis. A PSCA number cannot be assigned to multiple projects per PSCA rules. In other words, each PSCA-funded project will have its own assigned PSCA number, one DCM number and one O/A Agreement, and the project must use the same PSCA number and DCM number for any construction contracts. If an Architect or Engineer has already been selected, include the firm’s name, contact name and email address, and the firm’s project number. Indicate whether or not this is a pre-existing project which has already been submitted to DCM for review of O/A Agreements, contracts and/or plans and specs. If so, please include the DCM (BC) project number.
  • "PSCA projects" may be pre-authorized as fully PSCA-funded, or may have pre-authorized partial PSCA funding and partial local funding. PSCA projects cannot include fully locally-funded work. The Dept. of Debt Management cannot release PSCA funds for fully locally-funded projects, so a PSCA approval authority would not be able to approve such a project, and DCM/Debt Management would not be able to approve any payment applications for projects with an accidental mix of fully locally-funded and PSCA-funded projects.
• Upon approval of a project request, a PSCA number is assigned to the project and the entity will be notified by the Dept. of Debt Management or by the Board-designted approval authority. DCM does not issue PSCA numbers.
• A local owner should inform a project's Lead Design Professional as soon as the owner intends to request PSCA fund use approval, and forward the approval letter to the Designer as soon as possible. Information in the approval letter affects the Designer's work.

• Projects partially or fully PSCA-funded must use PSCA forms during the project and submit such documents to DCM. "PSCA forms" include PSCA versions of standard forms, as well as the remainder of standard forms which do not have PSCA versions, and unique PSCA forms without standard versions. The PSCA versions of standard forms are to be used instead of their standard counterparts. Unique PSCA forms and PSCA versions of standard forms begin with #9 in their designation, for example DCM Form 9-A: Construction Contract is the PSCA version of the standard DCM Form C-5: Construction Contract. All PSCA forms are listed at the bottom of this page.
• The PSCA number must be on all contract documents. PSCA contract documents for PSCA-funded projects cannot be submitted to DCM until the PSCA number is assigned.
• If a fully locally-funded project is awarded PSCA funds after the start of the project, PSCA forms (instead of state agency or K-12 forms) must be used for the remainder of the project, beginning with the conversion process. See the Conversion Section below concerning Forms required to convert fully locally-funded projects to PSCA. Note: A locally-funded Open-End Agreement Between Owner and Architect cannot be converted to PSCA.

• Each project funded by PSCA must have its own Agreement Between Owner and Architect (O/A Agreement) with an assigned PSCA number and DCM number, and must use the same PSCA number and DCM number for the construction contract.
• PSCA funding is not applicable to Open-End O/A Agreements. Locally-funded Open-End O/A Agreements cannot be converted to PSCA.
• The Contract Document Administration Fee-O/A must be paid by the time an O/A Agreement is submitted to DCM for review (or when a fully locally-funded project O/A Agreement is converted to PSCA). DCM's review of an O/A Agreement or conversion document can begin once the fee has been paid. See User Fees webpage for payment information.
• Storm damage: If the AL Division of Risk Management (DRM) is the insurer, include the DRM claim #, if any, on O/A Agreements.

• PSCA funding affects a project manual’s construction administration (front-end) documents which Designers submit to DCM for plan review. The PSCA approval authority's letter forwarded from the local owner to the Designer will contain the PSCA number and actual PSCA fund amount approved for the project. The PSCA number must be included by the Designer on the B-1 coversheet for Final Plan Review submittals, and the Designer needs to know the exact approved PSCA fund amount of a specific project for use on various forms. Do not submit a PSCA project for Final Plan Review without a PSCA number on the B-1 coversheet.
• Storm damage: If the AL Division of Risk Management (DRM) is the insurer, include the DRM claim #, if any, on B-1 transmittals.
• Spec. writers: Flat non-password-protected pdfs of PSCA construction administration documents are available for use in project manuals.
• What should Designers do for the Final Plan Review’s front-end documents in the project manual submittal when an owner indicates the project will be PSCA-funded but a PSCA number has not yet been issued? If a project has not been issued a PSCA number, it is not officially PSCA-funded and it cannot be bid as a PSCA project; the options are:
1. Strongly recommended when possible: Once a PSCA number is issued (indicating PSCA funds up to a specific amount are lawfully available for the project), submit to DCM for plan review the Final submittal with PSCA forms in the project manual’s front-end documents, and bid the project as a PSCA project.
2. If local funds are available for the entire project: Designers and Owners can submit to DCM for plan review the project’s Final submittal with fully locally-funded K-12 forms or fully locally-funded State Agency forms in the project manual’s front-end documents; then:
   1. If a PSCA number is issued for the project after Final Plan Review submission but before the bid, Designers must issue an addendum with PSCA forms 9-A, 9-B, 9-C and 9-J replacing their standard counterparts, plus 9-M, submit the addendum to DCM for plan review, and bid the project as a PSCA project.
   2. If a PSCA number is not issued before the bid, then the project must be bid as fully locally-funded. If/when a PSCA number is issued after the bid, Designers must issue an Architect’s Supplemental Instructions (ASI) with PSCA forms 9-A, 9-B, 9-C and 9-J replacing their standard counterparts, plus 9-M, and submit the ASI to DCM for plan review; and:
   1. First and best option: Issue the Agreement Between Owner and Architect (O/A Agreement) and Construction Contract (including Payment & Performance Bonds) on PSCA forms.
   2. Only-if-necessary option: If an O/A Agreement and/or Construction Contract is issued on fully locally-funded standard forms before a PSCA number is assigned, then once the PSCA number is issued there are several additional steps that must be taken to officially convert fully locally-funded O/A Agreements, Construction Contracts and Payment & Performance Bonds to PSCA. O/A Agreements require an Amendment (Form 9-LA) adding PSCA as a co-owner to the O/A Agreement. It must give an account of all items to be paid to the design professional (design fees, reimbursables and special services) as well as disclose (and attach proof with invoice and check copies) any previous payments made from local funds to the design professional. Attach a copy of the entire locally-funded O/A Agreement to each Amendment. Construction Contracts require Modifications (Forms 9-E and 9-F) to the Contract and Bonds. Attach a copy of the entire locally-funded Construction Contract (and any Change Orders and proof [payment applications and check/payment copies] of any previous locally-funded payments made to the contractor) to each package. If necessary, contact DCM Contract Administration Division for assistance with completing documents required to convert a fully locally-funded project to PSCA. See the sections above and below concerning Contract Document Administration Fee-O/A and CC. Note: Reimbursements are not available from PSCA for any use of local funds, including local funds used to pay architects, engineers and contractors.

• The PSCA construction contract and bonds must use the same PSCA number and DCM number of the Agreement Between Owner and Architect.
• If a fully locally-funded project is awarded PSCA funds after its contruction contract was executed on fully locally-funded forms, the contract and bonds must be converted to PSCA (see the above Conversion Section concerning required conversion forms), and PSCA forms (instead of state agency or K-12 forms) must then be used for the remainder of the project.
• The Contract Document Administration Fee-CC and the Permit Fee must be paid by the time a construction contract is submitted to DCM for review (or when a fully locally-funded project construction contract is converted to PSCA). DCM's review of a construction contract or conversion documents can begin once the fees have been paid. See User Fees webpage for payment information.
• Architectural/Engineering firms: As part of owners' payments to Lead Design Professionals (LDP) for Service D-Construction Contract Procurement and Service E-Construction Contract Administration, it is the responsibility of the LDP to prepare the construction contract with bond forms, any change order with justification form and supporting documentation, and the certificate of substantial completion with attachments. The LDP is also responsible for preparing other documents such as the final payment checklist with attachments. It is the responsibility of the LDP to ensure attachments from contractors such as bonds' power-of-attorneys, insurance certificates, back-up for change orders, and executed roof warranties are complete and meet the requirements of the Manual of Procedures.

After PSCA funds have been allocated to a project (i.e. a PSCA number has been issued), if a Scope of Work changes, including a change to the mix of schools from the original PSCA Allocation, or an increase to the amount of needed PSCA funds above the current PSCA funds allocated to the project and there are available unallocated PSCA funds:

• The Owner must send a letter to the Board-designated approval authority concerning the scope change and/or request an increase in PSCA funding as needed for the project. This should be done as soon as the need for the increase is determined, in order for the funding to match the project scope. PSCA funding cannot be expended for scope that is not covered.
• If an Agreement Between Owner and Architect (O/A Agreement) was previously executed and an increase in the fee is needed, then following approval of an increase in PSCA funding from the Board-designated approval authority, it is recommended that after the Construction Contract is awarded and before the Lead Design Professional invoices for Service D, DCM Form 9-L: Amendment to O/A Agreement along with DCM Form B-4A: Table of Authorized Projects Under the Agreement must be submitted to DCM to add an additional PSCA funding amount to the O/A Agreement.
• If a Construction Contract was previously executed and an increase in the contract sum is needed, then following approval of an increase in PSCA funding from the Board-designated approval authority, DCM Form 9-D: Modification to the Construction Contract-Adjustment of Severable Payments must be submitted to DCM to add additional PSCA funding to the Construction Contract. DCM Form 9-J: Change Order must also be submitted to DCM concerning any Scope of Work change affecting construction. Any change to construction plans must be submitted to DCM as part of the Change Order, and DCM will perform the plan review at that time.

After PSCA funds have been allocated to a project (i.e. a PSCA number has been issued), if a Scope of Work changes, including a change to the mix of schools from the original PSCA Allocation, or a decrease to the amount of needed PSCA funds below the current PSCA funds allocated to the project:

• The Owner may wait until the end of the project (recommended) to see if any further changes would increase the need of PSCA funds, or the Owner may go ahead and send a letter to the Board-designated approval authority requesting a transfer of the unneeded portion of the funding to another project. Unexpended allocations (including those assigned a PSCA number but uncommitted to an agreement/contract) are reviewed by the PSCA Board three years after bond issuance and may be rescinded then.
• If an Agreement Between Owner and Architect (O/A Agreement) was previously executed: It is recommended that after the Construction Contract is awarded and before the Lead Design Professional invoices for Service D, DCM Form 9-L: Amendment to O/A Agreement along with DCM Form B-4A: Table of Authorized Projects Under the Agreement be submitted to DCM to reconcile actual costs. Committed PSCA funding will then be adjusted for the O/A Agreement.
• If a Construction Contract was previously executed: DCM Form 9-J: Change Order must also be submitted to DCM concerning any Scope of Work change affecting construction. Any change to construction plans must be submitted to DCM as part of the Change Order, and DCM will perform the plan review at that time.

• PSCA-funded projects (except for Alabama Community College System [ACCS] non-storm shelter related projects started on or after August 1, 2021) require a DCM Inspector-facilitated pre-construction conference, which can be scheduled after the Permit Fee is paid. The Permit Fee and Contract Document Administration Fee-CC must be paid by the time a construction contract (or its conversion documents) is submitted to DCM for review. A pre-construction conference can occur once the Inspector receives a copy of the fully executed construction contract and notice to proceed from DCM's office. Benchmarks must then be met for required inspections as listed in the Pre-Construction Conference Checklist.

• Lead Design Professional (LDP) and Contractor payment applications for PSCA-funded projects are submitted to DCM for review. DCM forwards correct payment applications to the Alabama Department of Debt Management which releases the funds.
• Partially PSCA-funded projects: PSCA funds must be used first and the payment applications for PSCA funds must be submitted to DCM, then local funds can be used. Once PSCA funds are expended, contract documents must continue to be submitted on PSCA forms to DCM; however, payment documents for local funds follow the local owner's procedures and are not submitted to DCM for review and processing.
• Converted projects: If a project began as fully locally-funded and the Owner paid any LDP or Contractor payment applications with local money, then converted the project to PSCA-funded, send a copy of all locally-funded payment applications to DCM. DCM is unable to process any subsequent PSCA-funded payment applications without receipt of copies of the prior locally-funded payment applications.
• PSCA does not disburse payment to the local owner to reimburse for expenses already paid with local funds. PSCA will only pay expenses directly to the vendor.
• The purchase of materials and equipment for construction projects with PSCA funds may be approved if the purchases comply with the Competitive Bid Law and meet the criteria established by the PSCA Acts; see DCM's Manual of Procedures Chapter 9, Section J for details.

After PSCA funds have been allocated to a project (i.e. a PSCA number has been issued), if an Owner decides to not use PSCA funds for the project, in order to convert a PSCA-funded project to a fully locally-funded project, any committed PSCA funds must be uncommitted:

• If an Agreement Between Owner and Architect (O/A Agreement) has been executed, then DCM Form 9-L: Amendment to O/A Agreement along with DCM Form B-4A: Table of Authorized Projects Under the Agreement must be submitted to DCM to remove PSCA funding commitment from the O/A Agreement.
• If a Construction Contract has been executed, then DCM Form 9-D: Modification to the Construction Contract-Adjustment of Severable Payments must be submitted to DCM to remove PSCA funding commitment from the Construction Contract.
• The Lead Design Professional must issue an Architect’s Supplemental Instructions (ASI) replacing DCM/PSCA Form 9-J: Change Order with its standard counterpart DCM Form C-12, and remove DCM Form 9-M: Detail of PSCA Plaque, and submit the ASI to DCM for plan review.
• The Owner should send a letter to the Board-designated approval authority requesting a transfer of the funding to another project after the above three bullet points, where applicable, are completed. The Board will check with DCM concerning the status of committed funds. Unexpended allocations (including those assigned a PSCA number but uncommitted to an agreement/contract) are reviewed by the PSCA Board three years after bond issuance and may be rescinded then.
• Any unearned portion of the associated CDA Fee will be determined by DCM after submission of the amendment or modification paperwork. If the original Fee payment was made by transfer from PSCA funds, then the unearned portion will be transferred back to the fund uncommitted balance. If the original Fee payment was received from the owner’s local funds or another party, the balance will be refunded to the owner.

• Emergency Projects
• Public Works Projects Costing $100,000.00 or Less
• Construction Self-Performance Projects
• Manufactured Buildings Projects