Subsidence displaces 2 families

FINAL: Penn State 34, Indiana 7

<b>First Posted:</b> 6/8/2008<br><br>SHERRY LONG 
 
 slong@www.timesleader.com
NANTICOKE &amp;ndash; When Precept Associates LLC was hired last year as a construction manager to oversee the &amp;rsquo;s $20 million master plan, the job was not bid out. 

But the board of trustees did not violate any rules when it awarded a $1 million-plus contract to Precept in May 2007 using a request for proposals process. 
Government agencies are allowed to hire architects, engineers and companies that provide professional services by using a request for proposals or request for qualifications. Luzerne County commissioners Maryanne Petrilla and Stephen Urban said the county uses a request for proposals when seeking to hire a company to provide professional services to ensure the county receives the best deal for those services and hires the most qualified business for the job. 
&amp;ldquo;This did not just happen overnight. We believe we did everything properly,&amp;rdquo; LCCC board secretary and Luzerne County Commissioner Greg Skrepenak said. 
The college&amp;rsquo;s trustees did not put the job of construction manager out for bid because the position is considered professional service that is being provided to the college, college President Tom Leary said. 
Since Luzerne County is paying half the cost of the construction projects at the college, Urban offered the services of the county&amp;rsquo;s engineering department to review any future request for proposals and make recommendations to help the college save money. 
Precept is expected to be paid a total of $1.6 million for its role as a construction manager. LCCC anticipated the total fees for Precept&amp;rsquo;s services for phase one and two of the Public Safety Training Institute would cost $779,390. Precept has already been paid $525,309.90, or 67 percent of that fee, according to figures released by the college&amp;rsquo;s finance office. 
The college has completed the first phase of the construction of the Public Safety Training Institute and plans to renovate the Kanjorski Center when it leases or gains ownership of the building from Nanticoke Municipal Authority. 
AE Group, the architectural firm which handled the request for proposals process, presented its findings to college trustees during a finance committee meeting held in spring 2007, LCCC Associate Dean of Finance Joseph Gasper said. The architectural firm recommended Precept for the construction manager job, Gasper said. Precept, which is based in Hanover Township, was one of two companies competing for the job. Gasper couldn&amp;rsquo;t recall the other company&amp;rsquo;s name being considered for the job. As a construction manager, Precept must ensure all work is done within the college&amp;rsquo;s specifications, budget and time frames. To do so, Precept employees are on the construction site daily and constantly working with the college officials, Leary said. 
A construction manager oversees the work and tries to save the college money by bidding out the subcontracting work to hire electricians, plumbers and other labor intensive positions needed to complete the projects. 
&amp;ldquo;It would be like a general manager. They are making sure everything is being done. I have no reason to believe they are not doing a good job,&amp;rdquo; Skrepenak said. 
Precept Associates LLC owner Robert Higdon signed the contract, which stipulates the company will be paid a flat rate of 8 percent of the actual construction costs for the projects. The company is paid based on the progress of the projects, Gasper said. 
A reimbursable expense section in the contract states that, in addition to Precept being paid for basic and additional services, they should be paid for &amp;ldquo;authorized out of town travel, long distance communications and fees&amp;rdquo; for securing approval of authorities overseeing the project, costs of photocopying documents related to the projects, any postage expenses and any overtime worked by Precept employees in relation to the projects. 
As stipulated in the contract, the college&amp;rsquo;s first payment was in the amount of $80,000 on Nov. 13, 2007, for preconstruction and contract execution. Other payments to the firm included two invoices totaling $207,000, also paid on Nov. 13, 2007 for construction phase services from September through October 2007; a payment of $140,000 for construction phase services from November and December 2007, paid on Feb. 21, 2008; and two invoices totaling $98,309.90 for construction phase services from March through May, paid on May 21. 
The Pennsylvania Department of Education and Luzerne County Commissioners each committed they would each pay $10 million to the college to fund the two projects. 

&amp;ldquo;This did not just happen overnight. We believe we did everything properly.&amp;rdquo; 

Greg Skrepenak 
County commissioner

LCCC $20M master plan not bid out