Combined Heat and Power Expansion

The Pennsylvania State University awarded a design‑build contract with a Guaranteed Maximum Price (GMP) to McGough Construction Co., Inc. for the expansion of the West Campus Steam Plant to include a combined heat‑and‑power (CHP) system. The project replaces aging boiler equipment, adds a nominal 7 MW combustion turbine with waste‑heat recovery, and must remain fully operational throughout construction. The total project budget is approximately $35 million, with construction costs of about $26.7 million. The procurement process was competitive, involving a Letter of Interest, long‑list, RFP, short‑list, and interview stages before the Board of Trustees approved the award. • Scope: Design‑build of a 7 MW CHP unit, boiler replacement (Boiler 8), demolition of Boiler 6, integration of black‑start capability, and full plant operation continuity. • Delivery Method: Design‑Build with Guaranteed Maximum Price; pre‑construction services followed by GMP change‑order. • Budget: ~$35 M total (≈$26.7 M construction, $3.1 M design‑build fees, $2.8 M owner contingency). • Schedule: Awarded Nov 2017; construction start slated for Nov 2019; final completion expected Oct 2021. • Requirements: Mandatory 3‑D/BIM/VR modeling, emissions reduction ≥ 16,000 MT CO₂e, adherence to Pennsylvania Prevailing Wage Act, 15 % DBE participation, and continuous plant operation during construction.