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Federal-aidProgram Administration

Scott Frey, Transportation EngineerFHWA Idaho Division Office

An Overview Of:

• Project Oversight: Concept & Roles

• Eligibility: Criteria & Requirements

• Procedural Requirements

• Examples

For All Phases of Federal-aid Projects

• Project Oversight

• Eligibility

• Procedural Requirements

• Examples

Who Approves What?

Who Needs To Be In The Loop?

Federal-aid Program Administration:

Project Oversight: FHWA-Idaho

FHWA/ITD Oversight Agreement Control Documents

State Manuals (Design, Materials, Contract Administration, Contract Compliance Plan, ….)

State Specifications All Federal laws & regulations

FHWA/ITD Oversight Agreement

Full (FHWA) Oversight Projects Delegated (State) Oversight Projects

Each year, FHWA approves a list of full oversight projects:

Interstate System Projects:

Oversight Criteria: 2002 Agreement

Highways > $300 k/mile Bridges > $3M

These criteria worked “okay” but there was clearly room for improvement

Joint FHWA/ITD Decision Based On Consideration Of:

Oversight Criteria: Current Agreement

Type of Project (unusual, innovative) Magnitude (cost, complexity) Environmental Issues (EIS) State or Local Administered GARVEE Funded History of Problems Statewide Balance

FHWA Role: Full Oversight

NEPA Funding Authorizations Consultant Agreements Design Plan Approvals PS&E Approval

FHWA Role: Full Oversight (continued)

Change Order Approval Claims Approval ROW Certs (Interstate only) Project Inspections

FHWA Role: Delegated Projects

NEPA Funding Authorization ROW Certs (Interstate only)

Program Oversight: Process Reviews

FHWA’s primary tool for providing oversight of the Federal-aid program is PROCESS REVIEWS.

Joint reviews with State staff Review subjects determined through risk assessment

FHWA Role In ROW:Interesting Fact

Idaho’s Stewardship Agreement Does Not Delegate Any ROW Actions.

Why???

We can’t delegate what the regulations explicitly require.

FHWA Role - ROW: All Projects

Funding Authorizations (All Projects)

Access, I-System (< 1 per yr)

Air Rights, I-System (< 1 per yr)

Disposal < FMV (< 5 per yr)

FHWA Role - ROW: All Projects (continued)

ROW Certs, I and Cond. (30 per year)

Hardship / Protective (< 1 per year)

Land Transfers (10 per year)

Funct. Replacement (< 1 per year)

Conclusion: FHWA role in right of way is already very limited

Summary: Project Oversight

Stewardship Agreements Delegate Some Project Actions To The State

NEPA, Funding Authorization, And ROW Actions Are Not Delegated

FHWA ROW Actions (Except Funding Authorization) Are Infrequent

Federal-aid Program Administration:

• Project Oversight

• Eligibility

• Procedural Requirements

• Examples

What costs are eligible?

Eligibility: General Requirements Flexible Match Requirements ROW Eligibility Requirements

General Requirements:Who Makes The Call?

The State approves costs for eligibility….but check with the Feds if you’re uncertain….and document.

General Requirements:Criteria and Guidance

Eligibility of all costs is governed by OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments

Costs must be: Necessary and reasonable Allocable to projects

General Requirements:Criteria and Guidance (continued)

In conformance with all applicable Federal, State and local laws and regulations.

Determined in accordance with generally accepted accounting principles.

Adequately documented.

General Requirements: Criteria and Guidance (Continued)

Incurred after authorization Within scope of work authorized

General Eligibility: Direct Costs

Direct costs – incurred for a specific project (e.g., labor costs of employees working directly on project, materials, etc.)

General Eligibility:Indirect Costs

• Incurred for a common purpose (e.g., labor costs of non-project employees, supplies, building maintenance, etc.)

• Applied to each project via an approved indirect cost rate (e.g., Idaho has an Indirect Cost Allocation Plan and associated indirect cost rate of 13.52%).

• Rate is computed and applied to total project cost (e.g., $100 direct cost + $13.52 assoc. indirect costs = $113.52 amount billed).

Flexible Match:Background

Covered under 23 USC 323

Allows States to substitute private and other donations of funds, materials, equipment/bldgs, land, and services for the non-Federal share of project costs.

Facilitates ability to fund transportation programs by: Accelerating certain projects; Allowing States to reallocate funds

that would have been used to meet match requirements;

Promoting public-private partnerships.

Flexible Match: Background

Eligibility For Credit Against Non-federal Match

Funds Land (ROW) Materials Equipment/Buildings Services

Flexible Match:Background

Donations are essentially treated as incurred costs; i.e., donated item(s) must meet eligibility standards and be within the scope of the project.

Flexible Match:Eligibility

Can I count that work I did last year over there towards this new project over here?

Flexible Match:Eligibility

General requirements: Donations must be included in the

State/local agreement. If identified after the agreement is executed, the agreement must be modified.

Eligible donations may be applied only to the matching share of the project on which donation is made.

Flexible Match: Eligibility

As with incurred costs, donations must be adequately documented.

State must review the documentation and certify that the donation meets all of the eligibility requirements.

Flexible Match: Eligibility

ROW Eligibility:

General Special Acquisitions

ROW Eligibility:General:

Costs incurred in conformance with State and Federal law requirements

Costs must be for property incorporated into the project Acquisition Relocation assistance and payments Damages (to remainder)

ROW Eligibility:General (continued)

Property management costs (prior to and during construction)

State guidance and oversight activities

Uneconomic remnants Access rights

ROW Eligibility:Hardship Acquisition

Must be justified based on a request from the property owner demonstrating:

Hardship of a financial, health, or safety nature

Must sell property but cannot do so at fair market value due to public’s knowledge of the pending project

ROW Eligibility:Protective BuyingMust demonstrate that:

The acquisition is necessary prevent imminent development that would preclude an alternative

Must sell property but cannot do so at fair market value due to public’s knowledge of the pending project

Cost cannot be sole basis for protective buying

ROW Eligibility:Donations

Owner must have been advised:

He/she has the right to have property appraised

He/she has the right to be offered and paid just compensation prior to surrendering the property

ROW Eligibility:Exactions / Dedications

Property must be acquired through normal zoning and subdivision procedures

Does not include property already incorporated and used for transportation purposes

Summary:Eligibility State Primarily Responsible For

Determining Eligibility Eligibility Criteria Include Circulars,

Laws, and Regulations Documentation Is Key Flexible Match Donations Are Allowed In

Lieu Of Money Match Special ROW Acquisitions Have Specific

Conditions

Federal-aid Program Administration:

• Project Oversight

• Eligibility

• Procedural Requirements

• Examples

Procedural Requirements

General Requirements Design and Contracting

Requirements ROW – Specific Requirements

General Requirement: Project must be in current

approved STIP

What happens when projects change???

Design and Contract Requirements:

Consultant agreements must have approval prior to work being performed.

Design exceptions require approval for all ST/FA NHS projects

Competitive bidding of construction required

Finding of Cost Effectiveness required for work and equipment by State/locals

Public interest finding required for public agency furnished materials

Design and Contract Requirements:

Design and Contract Requirements:

Final Design cannot proceed without environmental clearance

Sole source products generally not allowed without listing three brand names + “or equal”

Design and Contract Requirements:

Buy America requirements for Federal aid projects: All steel/iron manufacturing processes, including application of coatings, occur in the U.S.

Experimental features must have approved work plan

Design and Contract Requirements: Pavement type/thickness must be

supported with life cycle cost analysis PS&E development & conformance is

State responsibility, FHWA approves Full-Oversight Traffic Control Plan Erosion control/water

pollution/mitigation plan Peds/bikes

Design and Contract Requirements:

Utility agreements must follow approved State procedure for eligible costs

Buy America requirements for Federal aid projects: All steel/iron manufacturing processes, including application of coatings, occur in the U.S.

ROW – Specific Requirements:General:

ROW acquisition and relocation cannot be authorized without environmental clearance

ROW – Specific Requirements: Hardship And Protective Buying:

Project must have been advanced to the point of public involvement.

A preferred alternative for the project must have been identified.

Environmental clearance for the acquisition must have been approved.

ROW – Specific Requirements: Disposal < FMV

For use by/for: Public Utilities Railroads Bike/Ped Title 23 Eligible Activities The general public interest (subject

to FHWA approval)

ROW – Specific Requirements: Functional Replacement

Compensation by functional replacement: Publicly owned real property Must be permitted by State law Replacement facility will continue the

public ownership and use State has informed public entity of its

right to either just compensation or replacement

State determines and FHWA concurs it is in the public interest

ROW – Specific Requirements: Air Rights Management of airspace on highways:

Non-Interstate System Highways: Preserve and protect the right of way (per 23 CFR

1.23, Rights-of-way)

Interstate System Highways:State may grant temporary or permanent occupancy

of air space if: Has legal right, title and interest Airspace is no needed now or in the foreseeable

future FHWA approval

Federal-aid Program Administration:

• Project Oversight

• Eligibility

• Procedural Requirements

• Examples

Example #1:

A local agency submits a proposed project, which is subsequently approved by the Board and included in the STIP. 2/2 - Local agency prepares a consultant

agreement for preliminary design & submits to ITD. The consultant then begins work.

2/28 - State prepares authorization request. 3/3 - FHWA approves authorization request.

What work is eligible?

Example #2: 6/00 - Preliminary design is authorized

1/01 - Environmental assessment begins

1/02 - EA is essentially complete, however, impacts to bald eagle habitat were identified requiring consultation with FWS which is not complete.

3/02 - ITD begins final design on the entire project.

Is final design work eligible?

Example #3:

Substandard design width is proposed on a State Highway (ST) project on the NHS.

Is this acceptable?

Example #4:

A particular brand name item is required in contract specifications. Other equal products are available.

Is this allowable?

Example #5:

Private individual donates a parcel of land to a local agency to accelerate a Federal-aid project. The local agency wants to use the value of the land as credit against their match. Part of the parcel is needed for the Federal-aid project. Is the value of the entire donation eligible?

Example #6:

Private company donated some guardrail to ITD on 12/10/02. Federal-aid project is authorized on 3/1/03. ITD wants to use value of donated guardrail as credit to their match. Is this allowable?

Example #7:

Public meeting related to a Federally-aid local project is being held. A local Girl Scout troop has volunteered to sit at the registration desk and greet the public. The local agency wants to use these services as part of their match. Is this allowable?

Example #8

Project development activities are under way for a major highway widening project. A property owner in the corridor requests plat approval for a development. The local jurisdiction exacts a strip of property to be used for the project and to serve as match.

Is this allowable?

Any Final Questions?