Committee told FF&E and technology estimate exceeds initial budget; plan to use contingency and state contracts
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Summary
Assistant project manager reported current furniture, fixtures, equipment and technology estimates exceed original MSBA‑based budget by an amount the team expects to cover from soft‑cost and hard‑cost contingencies and by using state procurement contracts.
Holyoke's school building committee heard a financial update showing furniture, fixtures and equipment (FF&E) and technology estimates exceed the original budget and that project managers recommend using contingency funds to cover the difference.
Connor Palazzo, assistant project manager, told the committee that the current combined estimate for FF&E and technology is over the original budget and that the team currently estimates the overage at roughly $411,000. He said the project has about $630,000 in soft‑cost contingency and nearly $9 million in hard‑cost contingency resulting from bid savings, and that the mayor and superintendent were recommended to use soft‑cost contingency to cover the FF&E overage.
Palazzo described how the MSBA (the Massachusetts School Building Authority) establishes a per‑student allowance for FF&E and technology and that actual district needs and market price changes since the original budget often create a gap. He said the FF&E and technology lists were finalized with district staff and consultants and that the city will issue purchase orders and seek state contract pricing to reduce retail estimates. “We’re hoping to get some state contract pricing, and that will drive some of the prices down,” Palazzo said.
Margaret and the committee stressed that the current numbers are estimates and that the team is seeking savings through collaborative purchasing. Chris LeBlanc noted the project’s hard‑cost contingency is largely intact and that change orders to date total about $355,000; he characterized the current change‑order rate as low for a project of this scope.
Committee members asked for clarification about what “over budget” meant in this presentation. Palazzo and other presenters explained that the initial per‑student allowances used for budgeting (MSBA formulas) often fall short of district needs; the estimate presented reflects vendor retail pricing compiled by consultants and will likely be reduced through state contract purchasing and further procurement work.
The committee was told the FF&E purchase orders could go out in the coming week and that deliveries are planned to begin around July 1, contingent on substantial completion. Staff said they expect to refine the numbers during the procurement process and return with updated cost information to the committee.