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Appropriate Use of Funds for Alterations and Renovations

The Office of Research Facilities is cognizant of federal regulations regarding the types of funding that may be used for various kinds of projects. To ensure that NIH is compliant with these regulations, ORF has developed the following guidelines approved by the Department of Health and Human Services.

Building and Facilities Funds
The criteria for determining whether something should be paid for with Building & Facilities (B&F) funds is related to project scope, rather than to overall cost of the project. The use of B&F funds is required when:

1. The project changes the size of the building;
2. The project increases the useful life of the building (for example, by improving infrastructure);
3. The project changes the permitted use of the facility (for example, changing office space to laboratory space in an administrative building requires B&F funds; changing office space to laboratory space in a laboratory building does not);
4. The project makes substantial changes to the primary components of building systems (for example, it upgrades rather than replaces a system);
5. The project includes asbestos abatement, accessibility, fire protection and life safety upgrades, rehabilitation of animal research facilities, or indoor air quality improvements, any of which require B&F funding even when the rest of the project is appropriately funded from another source (Research Facilities has funds set aside to help the IC customer pay if the OD determines that a component of an IC-funded project requires B&F funding);
6. The project is a line item in the B&F budget

Institute and Center Operating Funds
Regardless of the total cost of the project, IC operating funds can be used to pay only for the following:

1. Concept planning (up to 15% design);
2. Interior alterations necessary to meet mission requirements, unless the alterations meet one or more criteria for using B&F funds;
3. Installation of special lab equipment;
4. Interior fit-out and subsequent alterations in leased facilities;
5. Activation costs, including furniture, fixtures, and loose equipment.

Questions on appropriate use of funds may be directed to the ORF Chief Engineer, Tony Clifford , 301-594-0999.