Final FY 2015 Third Quarter Report

PROGRESS OF PROJECTS UNDER DESIGN & CONSTRUCTION

NATIONAL GOVERNMENT PROJECTS

There are no on-going projects for the National Government due to JEMCO Resolution regarding College of Micronesia projects.

Technical Assistance for the PMU

IDP Update

Harrison Grierson International of New Zealand have been selected by the ADB to undertake this project. The team leader visited the FSM during the third week in May. A draft project prioritization framework was presented to National Government stakeholders for comment and discussion. The same framework was presented to the states in the first three weeks in June for comment by the institutional specialist. The institutional specialist met with the PMU to get information on the current organizational structure and to discuss options for enhancement. It is anticipated that consultants will return in mid July to work with the States on prioritatizaition of their long list of projects. The outline of the institutional development report is expected by mid July as well. The current target date for completion of the project is October 30, 2015.The financial and engineering members of the team arrived in Pohnpei on March 9th. The engineering team has visited Pohnpei, Kosrae and Chuuk in order to compile their long list of projects. Engineering team were delayed in Chuuk by Typhoon Maysak. Trip to Yap was also postponed due to typhoon. PMU has consulted a number of times with the financial specialist providing information regarding financial processes and regulations. The institutional specialist was due on site on April 6th but did not make it. The financial specialist is now trying to gather institutional information for his review. Anticipate consultants to return in May to present prioritization framework and consult with stakeholders again to create a short list of projects for the plan.

Program Management Services for the FSM

A request for proposals was issued by DTC&I on June 17 th for program management services to enhance the capacity of the department to implement infrastructure projects. The deadline for questions and clarifications was June 30 th . The proposal submittal deadline is July 22, 2015.

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CHUUK STATE PROJECTS

Weno Road, Drainage and Utilities Upgrade

Designer: Lyon Associates, Inc.

Contractor: Pacific International, Inc.

Grant Award Number: GR970169

Fund and Program account:

Original Cost: $25,822,348.89

Retention Cost Percentage: 1.4%

Project Start Date: March 25, 2009

Original Contract Completion Date: March 24, 2012

Current Contract Cost: $28,690,046.69 (up to CO#38)

Remaining Contract Cost as of 12/31/14: $3,273,572.01

Contract Completion Date: November 25, 2013

Estimated Contract Completion Date: 2015

Percent Complete: 89

The contractor was terminated for default in early November 2013. The contract balance was tendered to the bonding company for completion of the work. After 4 months, the bonding company has not made any decision concerning taking over the project. The PMU invited bids for completion of the project and received one bid from GPPC in the amount of $11 million.

On May 23rd, the PMU received a certified claim from terminated contract PII for damages in connection with the termination in the amount of $14.130 million.

After the final adjustment of scope and price, the agreed price for completion was $7.7 million. On June 11th, Stanley Setiadi Joint Venture (SSJV) was tasked to prepare an independent redesign and construction cost estimate, completion schedule, and technical evaluation of the time and cost aspects of PII’s claim. On June 26th, OIA advised that the claim evaluation was not eligible for grant funding. The PMU immediately suspended the consultant’s work on this task. This decision severely limits the PMU’s ability to respond to PII’s claim.

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On April 26th, the PMU submitted a claim to designer of record, Lyon Associates, for damages resulting from errors and omissions from the design of the project. The claim of $4 million represents the upper limit of a range of liability for Lyon. In reality, the PMU and Lyon share liability in various degrees on each issue. In June, the legal counsel for Lyon recommended a group mediation between Lyon, FSM, PII and Century Insurance. To date, the FSM has not agreed to this type of settlement. Lyon has stated unofficially that they will fight vigorously and also make counterclaims against the PMU.

The PMU has requested an additional meeting with Century Insurance in order to discuss their intentions regarding assisting the FSM with the completion of the project. Century has insisted that PII be part of the negotiations. The PMU has declined and insisted that it will meet with Century and PII only if Century has agreed to take over the project and use PII to complete.

On April 30th, the PMU’s contract with Stanley Sediati Joint Venture (SSJV) expired without renewal. SSJV demobilized their construction management team in Chuuk. The local employees were laid off. The PMU hired the 3 local inspectors employed by SSJV to maintain the project until a new contractor wasis hired and remobilized. The PMU also took over SSJV office lease at Truk Trading Company.

All materials held by PII and paid for by the Government were turned over to the PMU in late April 2014. The PMU also took over the lease on PII’s warehouse at Nepukos. The PMU also hired 3 watchmen to maintain security of materials stored at the Iras Quarry and the warehouse. The watchmen’s contracts were terminated on September 30th. The contracts were not extended. The inspectors have agreed to take over security responsibilities until GPPC mobilizes.

A lawsuit was filed by PII against the FSM in December. Preparations are being made for mediation. DOJ is assisting and providing coordination with the contractor’s attorney. Mediation meeting is scheduled for June 3rd. Mr. Antonio Piazza is the chosen mediator. FSM will be assisted by Mr. David Lechner of Falk-Metz Attorneys at Law and Stanley Setiadi Joint Venture (SSJV).

Mediation was held on June 3, 2015 in Maui. Mediator Anthony Piazza was able to develop a settlement offer by the end of the day. The offer was signed by PII and concurred by Department of Justice representative. The FSM Government was given two weeks to accept or reject the offer. Until the end of June, the FSM has not yet accepted the offer. The FSM court has extended the stay of PII’s lawsuit until July 20th to allow the FSM leadership time to consult on the proposed settlement.

Weno Road, Drainage and Utilities Upgrade Phase 1; Completion

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Contractor: GPPC, Inc.

Grant Award Number: D12AF0062, GR970169

Fund and Program account: A1-19-85-52-72241-12/8310: $3,161,686.61

A1-19-85-52-72241-09/8310: $ 824,467.80

A1-19-85-52-72241-14/8518 $3,717,228.00

Original Cost: $3,986,154.41(First Increment)

CM#1 Second Increment: $3,717,228.00

Retention Cost Percentage: 10%

Project Start Date: November 24, 2014

Original Contract Completion Date: October 19, 2015

Current Contract Cost: $87,27053,601382.421

Percent Complete (less retainageRetainage): 128.88%

Remaining Project Cost as of 63/301/15: $7,15022,42854.8674

Current Contract Completion Date: April February 16, 2016

Estimated Contract Completion Date: AprilFebruary 16, 2016

Work output increased substantially this quarter and included the following tasks on was limited to mobilization tasks. Towards the end of the quarter the following tasks were started at Road 6 (east of Chuuk High School): Installation and testing of remaining sewer line and sewer laterals, testing of water main and installation of water laterals. Adjusting sewer manholes and catch basins to final grade. It is anticipated that road base work will begin in third week of July and concrete paving in early August. Heavy rains in late June slowed progress. clearing and grubbing, sewer line cleaning, sewerline testing and roadway excavation. Contractor also removed approximately 90% of the government furnished materials from PMU warehouse at Nepukos. Contractor camp was severly damaged during Typhoon Masak. Roadwork was suspended for 1 week to facilitate repair work. Many trees across the road at Road 6 prevented any additional work to be done. Anticipate resume productive work on road one during week of April 6th. PMU resident engineer Jason Carreira is working in cooperation with SSJV team to

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ensure that construction work is properly managed.On Road 1 work included installation of drainage pipe and drainage structures and testing of old sewerlinesewer line. A sewer clog in the old sewer main on road oneRoad 1 delayed other work by more than one week while repairs were made.

GPPC has struggled to keep safety officers on site. Their third safety officer reported in late June. So far there have been no serious accidents. GPPC’s qc manager finally arrived in mid June. Filling this position is critical to keep the project going smoothly. An acting qc manager has provided part of this function since early this year. GPPC has been testing their concrete in Guam due to lack of testing lab on site. The third progress billing is on hold pending submittal of all concrete test reports for the billing period. Contractor is still in the process of mobilizing testing lab to Chuuk. GGPPC's goal is to have lab operational before concrete paving begins in early August. GPPC has had their Vice President for Operations on site continuously since the third week in January to assist the superintendeant. This has been a major factor in GPPC being able to sustain continuous progress with the work. Since Ttyphoon Maysak, local dredging equipment has not been fully functional and coral sand is in short supply. This may affect progress on backfilling utility trenchworktrench work with low strength concrete slurry.

In February 2014 one of the land owners of the quarry claimed ownership of the PMU’s aggregate stockpile at the Iras quarry and stopped us from using the contents of the pile for repair of the existing road in the down town area. The claim was based on the idea that PII encroached on their property in order to quarry the raw material used to produce the aggregate. The PMU’s map of its leased area at the quarry did not provide adequate information to stake it on the ground. There were no monuments on the ground marking the PMU boundary along the hillside. The DTC&I surveyor was tasked to restake the boundary and made 4 trips starting in early November to accomplish this task. After this it became clear that PII had blasted outside of the PMU’s boundary. It was also clearly indicated in the contract that PII was responsible to pay for royalty and rental for any land on which they conducted quarrying. The owners were met again in November and made the claim that PII owed them additional fees for royalty on the PMU’s stock pile and rental fees for the areas that they occupied while blasting. The PMU obtained records that indicated that the owners were paid royalties but there was no record of rental payments. The owners wanted payment of rent on the encroached areas back to the beginning of the lease back in February 2009 at a higher rate than specified in the lease. They wanted additional rental on existing parcels within the PMU’s boundary at the higher rental rate back to the beginning of the lease and they wanted an unspecified compensation for additional royalty on the aggregates. In early February the

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PMU offered to lease the areas encroached by PII and pay an additional $7,187.50 in rental per year starting on March 1, 2015 and recommended that the owners address prior rental claims directly with PII. After this the owners requested to take ownership approximately half of the entire stockpile of aggregates owned by the government. The value of this claimed aggregate and rentals were valued at over $133k. After additional negotiations both sides agreed that government would lease all encroached areas back to the beginning of the original lease and a new parcel containing a small amount of encroachment but could be used in its entirety for blasting. Claims on the aggregate stockpile are released. This will require an initial pay out of $64,135 and increased annual rental payments of $11,385. The value of payment of back rentals up to November 2013 will be added to the FSM claim against PII during the upcoming mediation. The settlement agreement for Iras quarry land claims, lease amendments and survey maps have been drafted and sent to Department of Justice for legal sufficiency review. It is anticipated that the documents can be provided to land owners for signature early next quarter. There is potientialpotential for delay of Rroad 6 paving work if this process is delayed.

Recent Pictures of Project:

Rebar and formworks for CB No. 23-7 (Type B) Special CB at Sta. 10+50 Road 6.

Pouring of concrete top slab of CB No. 23-7 (Type B) Special CB at Sta. 10+50 Road 6.

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Installation of water lateral in Road 6.

Installation of 48” Dia. HDPE drain age pipe at Sta. 54+58 Road 1.

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Installation of 30” Dia. HDPE drain age pipe from CB No. 23-7 (Type B) SPECIAL CB (Sta.10+50) to DMH No. 23-3 (Sta. 11+14.99) Road 6.

Delivery of a ggregates from K&I to q uarry/staging area.

Weno Road, Drainage and Utilities Upgrade Phase 1; Completion; Construction Management

Grant Award Number: D14AF00045

Fund and Program account: A1-19-85-52-72241-14/8512:

Contractor: Stanley-Setiadi Joint Venture (SSJV)


Retention Cost Percentage: 0%Page 8 of 29

Project Start Date: November 15, 2014

Original Contract Completion Date: February 4, 2016


Remaining Project Cost as of 63/301/15: $1,088,663.44

Current Contract Completion Date: February 4, 2016

Estimated Contract Completion Date: March 16April 30, 2016

SSJV continued their work in managing the construction of the road project. Billings for November and December work have been received. PMU provided review comments to SSJV and are awaiting response. Project manager Mr. Lynn Wolfe, PE resigned from his position effective on July 1st . Currently SSJV’s resident engineer Marlon DeJesus is managing the project with support from former project manager Richard Senecal from SSJV Guam office. A new project manager has been recommended and approved by the PMU. It is anticipated that the new manager Mr. Eufemio Nilles will be on Chuuk within 30 days. mobilized their new Construction Manager, Mr. Lynn Wolfe to Chuuk on January 21st. The SSJV team includes Construction Manager, Resident Engineer, 3 inspectors and one document controller. To date no billings for work completed have been received so no payments on this contract have been made.

Weno Road, Drainage and Utilities Upgrade Sewage Lift Station Operations and Maintenance

Designer: None

Contractor: Chuuk Public Utilities Corp

Grant Award Number: GR970169


Original Cost: $37,480.00


Project Start Date: December 1, 2013

Original Contract Completion Date: June 30, 2014

Current Contract Cost: $150,371.00

Remaining Project Cost as of 63/301/15: $5164,04966.96.

Contract Completion Date: August 31, 2015Page 9 of 29

Estimated Contract Completion Date: August 31, 2015

Percent Complete: 6657%

CPUC continues to perform daily monitoring and routine maintenance on the sewage lift stations associated with the road project. GPPC’s late completion of Rroad 6 sewer work appears to be delaying the commissioning of lift station 8, the first lift station to be commissioned under this contract. During the preconstruction meeting for Weno Road Completion it was discovered that the bid schedule failed to include an item for maintenance of the temporary sewage lift station pumps. It was clear that CPUC’s monthly cost would be substantially less that what it would cost for GPPC to do the same work with overhead and profit included. CPUC also offered to take over the pump station commissioning tasks in the bid schedule as well as install smaller motors at each of the pump stations in order to solve the cavitations issues experienced at lift station 8A when it was commissioned in 2013. After checking with the contractor’s schedule it was determined that the time extension of the O&M services was needed until August. CPUC’s cost for extending the term of O&M services, commissioning tasks and motor change out was $42,211 while GPPC’s deductive proposal for commissioning tasks only was $44,824. Therefore the CPUC’s proposal was accepted.

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Weno Sewage Treatment Plant Rehab :

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Design Build, managed by CPUC.

The contractor is mobilized and doing work on sludge drying beds and other site work awaiting delivery of electrical and mechanical equipment for the treatementtreatment systems. Short supply of aggregates is affecting progress.

The preconstruction meeting was held as scheduled on January 27, 2015. Contractor Envico Corp is mobilizing for construction at this time.

Chuuk Lagoon Dispensaries Project – Construction

Designer: Beca International Consultants Ltd.

Scope: Construct dispensaries at the following locations: Fefan (Sapore), Fefan (Ununo), Fonoton (Sapota) , Parem & Romonum

The bid evaluation is now completed. The award recommendation and grant request will be submitted to OIA early next quarter. PMU is recommending a split bid between contractors RadioCom and M&R General Contractor. Radiocom was determined as the lowest, responsive and responsible bidder. However, the Governor of Chuuk sent a letter to the PMU to award the project to M&R. M&R was the second lowest bidder and their bid bond is not licensed and registered in the FSM. The PMU sent a grant request to OIA recommending 4 dispensary sites for Radiocom and 1 dispensary site for M&R. OIA said that such grant for the dispensary is still subject for JEMCO resolution on August. The PMU is now waiting for the resolution. Award of these projects will be issued immediately once the grant is issued by OIA and appropriated by Congress.

The bid was opened on April 6, 2015 with 4 interested bidders. The Bid Committee is now evaluating the bids and Notice of Award will be issued immediately after the evaluation.

Now that the bid had lapsed its validity period, the project is now advertised to get new contractor who can provide the bonding required. The Pre Bid conference was held on January 28, 2015 and bid opening has been extended from March 11, 2015 to April 6, 2015 to allow more time for bid preparation and one additional week due to typhoon Maysak.

Chuuk Schools Project Weipat High School, Ettal Elementary School, Pwene (Fefen) Elementary School, and Eot Elementary School Weipat High School, Ettal Elementary School, Pwene (Fefen) Elementary School, and Eot Elementary School:

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. The PMU has invited proposals for an updated topo survey on the Pwene school site. The main purpose of t his is that the new school building is not shown on the 2006 survey that we have, and we want to ensure that the new building is entirely on the site before the scoping for this school is done. A contract has been awarded to Pacific Survey Ccompany of Pohnpei and is in negotiation as of the end of this reporting period. Once the contract is approved, this work can be completed in approximately 5 weeks, including government review of mapping submittals. done extensive research to locate certificates of title and property and topo maps for all 4 sites. Documentation is complete including topo work completed around 2006 for all sites. At Weipat High School the girls dorms appear to be on unregistered land. New dorms could be constructed on the existing government land or work on existing dorm buildings can be suspended until government title can be issued. Eot site is ready for scoping. On Ettal site the existing school building takes up the almost the entire parcel. The building also encroaches on neighboring properties by a small amount. There is no room for expansion. There is little data on condition of existing two story school building. PMU is trying to work out logistics for a site visit within the next few weeks. Existing survey documents do not show the new classroom building at the Pwene site. It is not clear if the new building is entirely on the government owned parcel. PMU has requested proposals for a new survey to locate the existing building on the land documents. A new grant will be needed for the survey work. Extent of damage to existing school facilities by Typhoon Masak is unknown at this time. PMU engineer is currently on board Caroline Voyager to assess damages for outer islands of Chuuk and Yap. PMU is suggesting site visit for Ettal school for the purpose of scoping. Chuuk State appears to be opposed. PMU will continue to work until resolved. Damages to the 4 schools due to Typhoon Maysak are minimal and may be addressed before this project is designed. If not, repairs can be incorporated into design.

KOSRAE STATE PROJECTS

Kosrae Hospital:

A grant has been awarded for the HVAC redesign with an additional cost of $146,586. Beca is working towards 90% design stage. The proposed air conditioning system is redesigned to reduce the cost of power consumption for the building. Design for temporary facilities for Public Health, Dental Clinic and the Lab are complete. The bid opening for the construction of temporary facilities is scheduled for August 28, 2015. A pre-bid conference is scheduled for July 21, 2015. Design changes are currently being made on the inpatient building. We have reviewed Beca's cost proposal and are negotiating an agreed price for the final work to complete this project for bidding.A grant has been awarded for the HVAC redesign with an additional cost of $146,586. Beca is working towards 90% design stage. The proposed air conditioning system is redesigned to reduce the cost of power consumption for the building. Design for temporary facilities for Public Health, Dental Clinic and the Lab are at pre final stage. Anticipate bidding construction of main facility in August.

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Designer: Beca International Consultants Ltd.Designer:

Grant Award Number: GRX00074

Fund and Program account: A1-19-85-51-70020-10



Remaining Project Cost as of 126/3130/1415: $459244,175714.00


Start Date: June 20, 2012

Current Completion Date: None

Original Contract Completion Date: None

Estimated Contract Completion Date: August 2015


Estimated Design & Construction Cost: $17,000,000 (including FFE)

POHNPEI STATE PROJECTS NMS Library Construction Project:

The bid for NMS Library Classroom was opened on December 12, 2014 with three (3) interested bidders. The Bid Committee had considered Abcor Engineering and Construction as the lowest, responsive and responsible bidder. The Notice of Award was issued on March 24, 2015 and the PMU requested grant from OIA thereafter. The grant was approved by JEMCO and was issued by OIA on April 28, 2015. The grant was passed to Congress sometime in May 2015 but was returned. This July Congress session, AG's office is resubmitting for appropriation by Congress. Once OIA issued the grant, this will be subject for Congress appropriation. Notice of Award will be expected at the end of May after the execution of the contract. Construction is expected on 3rd week of June 2015.

Sekere to NMS Water line Phase 1, Segment 2, COM to Diadi :

Per direction from Pohnpei State Governor, the PMU invited bids on September 22, 2014. A pre bid meeting is scheduled for October 24, 2014 and bid opening on January 16, 2015.

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Grant Award Number:


Original Cost:

Current Contract Cost:

Remaining Project Cost as of September 30, 2014:


Start Date:


Original Contract Completion Date: 730 calendar days

Estimated Contract Completion Date:

Percent Complete:

Contractor: To be competitively bid

Cost Estimate: $6,000,000 to $8,000,000

Third Quarter FY2015 Update:

Met with Lyons early July to work out revised project parameters. Lyons to input revisions, run model, and determine pumps requirements and sizes.

Parameters for the Sekere and Kinakapw waterline projects. Nick agreed that the parameters set forth by the PMU are reasonable. Parameters include the following: 1. Initial number of customers (25% of total service stub outs) 2. Average Daily Demand (to be increased to 600 gallons/day) 3. System Growth Rate (to be revised to reflect latest census - Total SSO plus 5% growth) 4. that for modeling purposes the existing systems and the new systems shall be treated independently.

That the PMU will work with PUC to provide model numbers and pump curves for the pumps installed by PUC in wells #3, 6, 8, & 9

That following the receipt of the model numbers and pump curves complete review and modeling should take no more than one week for the Sekere project. Note: Nick expects that complete modeling will be unnecessary and that pumps capacity should be able to be determined based on GPM and head requirements taken from the pump curves.

Sekere to NMS Water Wells, Electrical Page 15 of 29

Designer: Lyon Associates, Inc.Contractor: Pohnpei Utilities CorporationContract Fee: Construction $23,000Design Modifications: N/AEstimated Completion date: March 31, 2015

In an effort to expedite the connection to four (4) water wells in Palikir as part of the Sekere to NMS Waterline Phase 1, a contract has been issued to the Pohnpei Utilities Corporation (PUC) to provide all materials, equipment, and labor as required to provide power to each of the four (4) wells. Work shall include transformers, secondary conductor, meter services, panel boards, motor starters, controls and all associated materials for complete connection. Upon completion of work, all four (4) wells shall be ready for connection into the new Sekere to NMS water system without any additional electrical work by the utility or an outside contractor. Pump sizes and electrical requirements for the four (4) locations have been revised by the PUC since initial design by Lyon’s and pump electrical configurations will be adjusted by PUC to be compatible with these revisions. Work is approximately 50% complete at this time. Upon the completion of work, the Utility will notify the PMU for testing and inspection of the pump electrical service connections.

As of January, 2015, we are still awaiting word from PUC that work has been completed and that they are ready for final inspection.


Final inspection has been completed on the four well pumps, awaiting invoicing from PUC.

Kinakapw to Lehn Diadi Waterline Phase 1



Preliminary Budget: Construction $5,300,000 - $6,000,000

Design Modifications: $30,000 (estimated)

Grand No: GRX0074

Account No: A1-19-85-54-70020-10-8514

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Retention Cost: N/A

Project Start Date: 9/28/10

Suspended date: 10/14/2011

Reactivation date: 12/6/2013

Contract Completion Date: None

Estimated Completion Date: February 28September 30, 2015


Current Contract Cost: $287,990

Remaining Cost as of 1204/3130/20142015: $87,450.00359.50

Pre-final drawings have been submitted by Lyons and reviewed by PMU. We are still awaiting for PUC's comments.

Overall submittal looks good. Significant issues are as follows:

1. Lyons has not provided structural details for the water tank foundation or the tank construction. Instead writing it into the drawings and specification that the contractor is responsible to provide stamped shop drawing for these items. Lyons has been informed that they are responsible for this.

2. Electrical is based on 3-phase supply and VFD drives for the water pumps. PUC has indicated that they prefer to standardizes to 1-phase pumps without VFD. Lyons to revise drawings.

Upon receipt of comments from PUC, Lyons will provide updated timeline for final submittal.


Met with Lyons early July to work out revised project parameters. Lyons to input revisions, run model, and determine pumps requirements and sizes.

Parameters for the Sekere and Kinakapw waterline projects. Nick agreed that the parameters set forth by the PMU are reasonable. Parameters include the following: 1. Initial number of customers (25% of total service stub outs) 2. Average Daily Demand (to be increased to 600 gallons/day) 3. System Growth Rate (to be revised to reflect latest census - Total SSO plus 5% growth) 4. that for For modeling purposes, the existing systems and the new systems shall be treated independently.

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That theThe modeling for the Kinakapw project will proceed and Lyons will select pump that will best match the current and future parameters as set in previous item.

Plans-In-Hand walk through took place June 10th and 11th, 2014. 18 culvert crossing were missing from the drawings, additional survey work required along Japanese Road completed in 2004, drawings do not show existing drainage ditches that may affect installation.

The project will extend the 8 inch and 10 inch waterline from the existing Kinakapw 500,000 gallon water tank to the Lehn Diadi Bridge. Project is composed of five (5) segments as follows:

Segment #1 - Circumference Road is approximately 6.3 miles in length and is composed of eight and ten inch new water mains. Segment starts at the existing gate valve located near the Kinakapw water tank and extend along the circumference road to the Lehn Diadi Bridge. Drawing C-12 between Stations 102+00 and 108+00 routing is along base of solid rock ridge, this area will require additional evaluation by A&E along with consideration to relocate waterline to opposite side of road, or to install waterline in a shallow trench and concrete encase for protection.

Segment #2 – Arew Pah is approximately one-mile in length and consists of an eight inch water main. Segment starts at the circumference road and serves the Arew Pah area of the island. Following Plans-In-Hand walk through the following directives were issued: To reduce eight-inch water main along Segment #2 to four-inch beginning at Station 1+00, removed fire hydrants, relocate end of line from Station 51+32.79 to Station 40+00.

Segment #3 – Arew Powe is approximately one-mile in length and consists of an eight inch water main. Segment starts at the circumference road and serves the Arew Powe area of the island. Following Plans-In-Hand walk through the following directive were issued: Relocate Tee along Perimeter road as shown on drawings, to reduce eight-inch water main along Segment #3 to four-inch beginning at Station 6+50, remove fire hydrants, relocate end of line from Station 50+26.13 to Station 47+75.

Segment #4 – Lukop is approximately 2.3 miles in length the water main consist of eight and ten inch pipe. The segment starts at the circumference road and serves the Lukop area of the island. There are two existing wells connected to this section. Following Plans-In-Hand walk through relocate end of line from Station 117+77.64 to Station 115+50.

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Segment #5 – Lukop to Kepine is approximately one mile in length and consists of a eight inch water main. There are two existing well connected to this section. Following Plans-In-Hand walk through relocate end of line from Station 41+56.27 to Station 39+50, relocate reducer 8-inch to 4-inch to Station 32+00, reduce water main to four-inch from Station 32+00 to end of line, A&E to revise bridge crossing between Stations 18+00 and 19+00 existing bridge is made from I-beams with sheet pile decking, relocate waterline to be independently supported.

This project includes water service laterals for future residential hook ups, 4 well head improvements, and a 500,000 gallon storage tank located in Mesihsou. The preliminary drawings have been received and review is underway.

First Quarter Update (Oct.-Dec. 2014)

Pre-final drawings have been submitted by Lyons and reviewed by PMU. We are still awaiting for PUC's comments.

Overall submittal looks good. Significant issues are as follows:

1. Lyons has not provided structural details for the water tank foundation or the tank construction. Instead writing it into the drawings and specification that the contractor is responsible to provide stamped shop drawing for these items. Lyons has been informed that they are responsible for this.

2. Electrical is based on 3-phase supply and VFD drives for the water pumps. PUC has indicated that they prefer to standardize to 1-phase pumps without VFD. Lyons to revise drawings.

Upon receipt of comments from PUC, Lyons will provide updated timeline for final submittal.

As of January, 2015, we are currently reviewing PUC comment prior to forwarding them on to Lyon for incorporation into drawing.

Pohnpei Island Central School (PICS)(Nett), Pohnlangas High School (Madolenihmw) and Nanpei Memorial High School (NMS) (Kitti) Library/4 Classroom Buildings – Design

Designer: Leo A. Daly

Grant Award Number: 2010-COFA-FSM-INFRASTRUCTURE-FY-10

Fund and Program account: A1-19-85-54-70020-10/8514

Original Contract No: CG 0364

Original Design Contract Cost: $103,000.00 (for 25% plans for D-B Deliverable)

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Design Contract Modifications:

1. Modification #01 - $459,076.00 (Contract No. CI 0345 for 100% design2. Modification #02 – $22,403.00 (Contract No. CI 0471 additional work

for NMHS and Pohnlangas)3. Modification #03 - (pending Congress appropriation)


Amount Certified: $551,455.10

Remaining Project Cost as of 1206/3130/1415: $55,426.9037,000.00

Retention Cost Percentage: N/A

Start Date: September 10, 2010

Current Completion Date: NA

Original Contract Completion Date: N/A

Estimated Contract Completion Date: April 30, 2014



Budgeted Total Cost: $5,000,000 (including FFE)

The New Sites for PICS and Pohnlangas were already confirmed by the DOE on November 13, 2014.

The bid for NMS Library Classroom was opened on December 12, 2014 with three (3) interested bidders. The Bid Committee had considered Abcor Engineering and Construction as the lowest, responsive and responsible bidder. The Notice of Award was issued on March 24, 2015 and the PMU requested grant from OIA thereafter. The grant was approved by JEMCO and will be processed by the week of 20th of April 2015. Once OIA issued the grant, this will be subject for Congress appropriation. Notice of Award will be expected at the end of May after the execution of the contract. Construction is expected on 3rd week of June 2015.

The two sites PICS and Pohnlangas Ready to Advertise plans are on hold pending approval of funding from OIA for the relocation design. The DOE had requested to relocate the two buildings to a new site after the Pohnpei Master Plan was developed. The intention was to relocate the two buildings in a place that would impact future development so that the project could move forward

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while the Master Plan is being developed. The master plan also recommends that Pohnlangas Elementary and High School campuses exchange sites.

The new sites for PICS and Ponglangas are already confirmed by the DOE on November 13, 2013.

The supplemental grant for the relocation of the two sites was issued by OIA on November 13, 2014 of which grant will expire on September 2015. H however, this grant is subject for Congress appropriation at this coming May session.this July Congress session, AG will resubmit the Bill for appropriation.

Pohnpei Primary Healthcare Facility – Design

Designer: Leo A. Daly

Grant Award Number:




Remaining Project Cost as of 1206/3031/145: $453,550.92


Start Date: August 17, 2010

Suspend Date: April 2011

Reactivation Date: March 15, 2013


Original Contract Completion Date: None

Estimated Contract Completion Date: May 31, 2015



Preliminary Budget: Construction $5,500,000

On-going work with LAD to establish FF&E Schedule and furniture and equipment layout. latest has been submitted. Waiting comments from LAD.

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Following agreement on the FF&E Schedule LAD will finalize drawing and provide updated timeline for Pre-Final Submittal.

FF&E Schedule submitted to LAD, for review and incorporation into pre-final submittal documents. Received Pre-Final Submittal on January 15, 2015, review is underway and expected to take 3 to 4 weeks to complete.

LAD has requested additional funding for two items:

[1.] Review FF&E schedule provide by others: LAD is requesting additional fee to cover their time associated with review and incorporation of the FF&E into drawings. It is the opinion of the PMU that this is part of the consultant base contract to provide a complete design. Correspondence regarding this issue is ongoing.

[2.] Electrical Change as directed by PUC: LAD is requesting additional fee for changes to the electrical service entrance as directed by PUC. A directive for this change was emailed to LAD on June 4, 2014. It included PUC direction the service entrance is to be changed from three-phase to single-phase. This change includes the deletion of a new power pole, and pad mounted transformer, additional requirements include the revisions to the one-line diagram, panel boards descriptions, and panel schedules. Redlines for the location of a pole mounted transformer and routing of overhead secondary line where provided to LAD by the PMU. It is the opinion of the PMU that this change is relatively minor and should be picked up by the Consultant at no additional cost to the project. Correspondence regarding this issue is ongoing.

YAP STATE PROJECTS

Yap High School :

Designer: Beca Consultants


Grant Award Number: GR2011-COFA-FSM-Infrastructure-Yap HS/Voc. Ed.


Total Cost: $4,988,128

Net Change Order: $21,748.61

Revised Contract Amount: $5,009,876.61

Total Amount Certified: $4,025,179.61Page 22 of 29

Retention Cost Percentage: 2.70% ($120,521.03)

Remaining project cost as of 1206/3130/1415: $665,651.05479,018.25

Start Date: February 27, 2012

Completion Date: June 14, 2014

Percent Complete: 75.5%

Building 21 has been turned over to the government. Buildings 22 and 23 are completed except for the solar shading, solar power system, and data cabling. These items have been rejected for failure to meet the project specifications. The contractor is in the process of submitting proposals for correction.

Third Quarter Progress Report

The solar sunshade framing and support members had been sent to the GPPC Saipan Office for repair of the welded joints and parts. This solar sunshade system is for Building 22 and Building 23. The repaired members were shipped back to Yap State on June 30, 2015. Prior to its site erection, the Contractor had set-up the scaffoldings at the rear of Buildings 22 and 23.Data backbone cables had been installed to inter-connect the three new school buildings and to connect them to the Administration Building of the High School Campus.

The solar inverter panels and its conduits for both Building 22 and Building 23 were installed. These had been wired and connected to the solar panels at the roof of the two buildings. To provide additional space at the electrical room in Building 23, the building distributor had been transferred to the inside wall of the classroom.

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(Yap High School Building 21)

Yap ECE :

Designer: Beca

Original Contractor: T-Company, Inc. (in default)

Completion Contractor: GPPC, Inc. (designated by Surety)

Grand Award Number: GRX0128


Total Cost: $2,388,888.22 (Original Contract)

Amount Certified: $1,380,387.79

Retention Cost Percentage: NonePage 24 of 29

Remaining Contract Cost as of 03/31/13: $1,008,500.43

Start Date: May 27, 2010 (Original Contractor – T Company)

Original Contract Completion Date: March 23, 2011

Revised Completion Date: April 19, 2013 (Original Contract was in default)

New Construction Contract Cost: $1,008,500.43 (CIC designated Contractor)


Revised Construction Cost: $1,052,77.23


Balance as of 12/31/14: $0.00

New Start Date: July 1, 2013 (CIC designated Contractor)

New Completion Date: January 28, 2014

Revised Completion Date: May 13, 3014


Yap ECE Furniture

Contractor: Office Place Yap

Contract # - CL0071

Program Account:

Original Contract Amount: $153,914.34

Contract issued: October 14, 2014

The contractor "Office Place" has won the supply of the furniture for the ECE building. The contract was served last October 2014 and now the contractor, "Office Place" is preparing for placing order of the materials.

The first payment in the amount of $76,957.09 for the ECE furniture was received by the supplier- Office Place only last June 16, 2015. The first partial shipment of furniture arrived in Yap last June 29, 2015. The second shipment was in Yap last July 15, 2015. We were informed there will be another shipment but no ETA yet.


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Office Place- the supplier of the ECE furniture had received the first payment in the amount of $ 76,957.09 last June 16, 2015. The first shipment arrived in Yap State on June 29, 2015 and the second will arrive in the island on July 15, 2015. A third and last shipment of the remaining furniture does not have an ETA yet.

The ECE project was completed on August 11, 2014 and subsequently turned over to the Yap State Government.

Yap Hospital Renovation:

Designer: Beca Consultants


Grant Award: D11AF00016

Program Account: A1-19-85-55-75221-11

Original Contract Amount: $6,888,000.00


Revised Contract Amount: $7,394,346.93


Balance as of 1206/3130/1415: $598,202.15679,583.35

Start Date: November 8, 2010

Original Contract Completion Date: April 30, 2012

Revised Completion Date: May 21, 2014Dec. 31, 2015

Percent Complete: 92.04 percent

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The vast majority of the work in the Hospital has been completed except for several major systems including the emergency generators, the fire alarm system, the Nurse Call system, and the water treatment plant.


Due to some defective and missing push button knobs of the nurse call master station control, a new set of control knobs had been installed. Defective code blue lights were replaced.Four pieces of circuit breakers for the AHU in Building 8 had been installed. One unit of overload relay will be arriving in Yap next month.Repair of the non-slip floor paint in the hallway and corridors is ongoing.Building 11 was completed on March 19, 2015 and turned over to the Hospital.

COM Student Center & Classroom/Computer Center Designer: Beca Consultants

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Contractor: Waab Construction Company

Grand Award Number: GR970206

Fund and Program Account: A1-19-85-55-75215-09

Original Contract Cost: $1,972,419.57


Revised Contract Cost: $2,053,530.77


Remaining project : $0.00

Retention Cost Percentage:

Start Date: October 9, 2009

Original Contract Completion Date: August 9, 2010

Revised Contract Completion Date: June 4, 2014

Percent Complete: 100 percent

Yap COM Furniture

Contractor: Office Place Yap

Contract # - CK0267

Program Account: A1-19-85-55-75216-14

Original Contract Amount: $119,184.43

Amount certified: $83,429.10

Remaining project cost: $35,755.33

The PMU has selected “The Office Place” as the lowest responsible bidder for the furniture. OIA has issued additional funding for the furniture sometime in March 2014.

All furniture had been delivered to the jobsite at Yap COM. The COM school is now using the furniture however, the contractor has to get clearance from the Yap PMU and COM school before final billing will be processed.

(COM Student Center & Classroom/Computer Center)

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Final FY 2015 Third Quarter Report

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