American Recovery and Reinvestment Act (ARRA) Title 23 Refresher. FHWA Federal-Aid Program for Local Public Agencies

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1 American Recovery and Reinvestment Act (ARRA) Title 23 Refresher FHWA Federal-Aid Program for Local Public Agencies 1

2 ARRA Implementation for Local Public Agencies Provide an overview of the fundamental coordination/processes that are needed for delivery of projects that will be funded through the American Recovery and Reinvestment Act (ARRA) Clarification of roles and responsibilities Entry point for dialogue with your respective State and FHWA Division partners It is a general description of the Federal-aid process which allows the use of the stimulus funds, not discussion on the ARRA 2

3 ARRA - FHWA projects What ARRA is: $48.1 billion general funding by Congress by providing funds for transportation projects $27.5 billion for highways & roads Supplemental funding in addition to our regular program appropriations (availble until September 2015) Up to 100% Federal funded (no pro-rata match required) All applicable Title 23 requirements still in effect Buy America, NEPA, R/W, etc. are all still required Davis-Bacon wage rates apply to all projects with ARRA money 3

4 ARRA - FHWA projects What ARRA is NOT: Direct distribution of money (cash) agencies Does not waive Federal-aid requirements Federal emergency procedures are not invoked Not a new highway bill in line with SAFETEA-LU 4

5 Objectives Overview of Federal-Aid Program FHWA Roles and Responsibilities FHWA State DOT Local Public Agency (LPA) Project Management Pre-award Planning, Environmental, R/W, Design Post-award Construction, Maintenance 5

6 U.S. Department of Transportation Agencies FTA Federal Transit Administration FRA -- Federal Railroad Administration FAA Federal Aviation Administration FHWA Federal Highway Administration 27.5 billion to be administered under Federal-aid process OIG Office Inspector General 6

7 FHWA Offices Resource Center Lakewood, CO Resource Center, Olympia Fields, IL Resource Center, San Francisco, CA Resource Center, Baltimore, MD Headquarters Washington, DC Resource Center, Atlanta, GA FHWA Field Office Sites FHWA Contract Administration Contacts FHWA Offices 52 Division Offices (1 in each State) 1 Resource Center in 5 locations 1 Headquarters Office 7

8 Hierarchy of Rules LAW Title 23 USC REGULATIONS 23 CFR FHWA Policy and Directives 8

9 Program Financing Highway Infrastructure Investment funds are general fund monies up to 100% Federal Funds (no match required) set-asides for Transportation Enhancements and use in Urbanized areas have been identified separately tracked Highway Trust Fund Fuel taxes & user fees 9

10 Federal-Aid Program Purpose is to provide aid to the states Set minimum national standards Ensure system compatibility Program oversight (w/ reports to Congress) No money upfront reimbursement of expenses incurred Not a CASH apportionment program Funds flow through the State Money has to be spent prior to getting Fed dollars After FHWA authorization date for PE, RW, CONS 10

11 Authorized to proceed Federal-Aid Reimbursement Process Contractor Does Work Agency Pays Contractor Agency Submits Voucher to State LPA administered projects include steps for the state to reimburse the LPA State Pays Agency State Submits Voucher to FHWA (FMIS) FHWA Sends Voucher to US Treasury US Treasury Pays State 11

12 Federal-Aid Roles and Responsibilities Federally-assisted, state administered program creates an FHWA/State DOT partnership State DOT is the agent representing FHWA to local public agencies State DOT & Local Government Agency relationship Processes Approvals Funds Reimbursement Person in responsible charge 12

13 Partnership Federally assisted State administered Federal - funding, guidance & technical assistance State or Local - funding, plan, design, construct, operate & maintain Advice & Consent 13

14 FHWA Stewardship/Oversight Stewardship: Efficient and effective management of the public funds that have been entrusted to the FHWA Oversight: The act of ensuring that the Federal highway program is delivered consistent with laws, regulations and policies 14

15 Stewardship Program Administration Technology Deployment Technical Assistance Strategic Initiatives Oversight Project Development Project Delivery Maintenance/Operation Funds Management 15

16 Oversight by FHWA & State DOTs Stewardship Agreement is between the State DOT and the respective FHWA Division Delegation of Federal-aid (Title 23) processes NHS or non-nhs Oversight Responsibilities Risk Assessments Program Analysis 16

17 Stewardship Agreement FHWA has retained responsibility for non-title 23 activities NEPA Title 49 - Planning ROW Civil Rights Agreements with Federal Resource Agencies 17

18 Eligible Routes 23 CFR Definitions: Federal-aid Highways highways on the Federal-aid highway systems and all other public roads not classified as local roads or rural minor collectors Federal-aid highway systems National Highways System Interstate System 18

19 The Highway System - Route Classification 19

20 NHS Designation Act of 1995 National Highway System (NHS) Interstate System and designated principal urban & rural arterials ~164,000 miles Non-NHS those routes not on NHS but still a Federal-aid eligible route Local standards must meet AASHTO minimums 20

21 FHWA online NHS Viewer The NHS Viewer allows you to display the NHS at a statewide level and zoom into an NHS segment or local area of interest. Zooming in provides a detailed street network while providing orientation to the geographic location of NHS segments of concern. 21

22 Federal-Aid Eligible Projects Federal-aid program eligibility Federal-aid eligible routes Eligible Scope of Work Federal-aid program excludes Maintenance Normal operating expenses (i.e. snow removal, pavement markings, etc.) Routine repair (i.e. potholes, guardrail repair, shoulders erosion, culvert cleaning, etc.) 22

23 Project Eligibility STIP Planning process with MPOs & State Federal-aid route definition Transportation Enhancements Project required to be listed in STIP Part of RTP / TIP (Regional Transportation Plan and Transportation Improvement Program) 23

24 Special Topic Buy America 23 CFR Steel & Iron usage permanently incorporated in project manufactured & processing completed in US Examples are sign posts, structural steel, computer cabinets, door frames, sheet piling Minimal use exception: $2500 or < 0.1% of contract value Project Waiver process is currently a minimum of six weeks Pig iron, scrap, raw alloy materials, pelletized or reduced iron ore have a national waiver since August

25 Buy America (continued) If domestically-produced steel/iron is shipped out of US for any manufacturing process, and then returned to US, the resulting product does not conform with the Buy America requirement Non-conformance is a project level decision, not just the product 25

26 Special Topic Civil Rights non-discrimination Race, color, national origin, & English Proficiency Disability Sex Age Americans with Disabilities Act (ADA) Employment & services 26

27 Special Topic Public Interest Findings (PIFs) Written documentation supporting request of finding Examples: Mandated use of a proprietary/patented product Use of publicly-owned equipment Contract award based on other than low bid 27

28 General Federal-Aid Program Requirements 28

29 Program Requirements - Financial Project Authorization / Funds Obligation FHWA commitment that Federal funds will be made available for the project 1.Preliminary Engineering (PE) 2. Right of Way acquisition (R/W) 3. Construction Required prior to incurring any expenses Work done before the date of FHWA Division authorization is NOT eligible for reimbursement Not a cash transfer State procedures vary 29

30 Project Staffing & Supervision 23 CFR State DOTs are not relieved of responsibility of projects even when the LPA administers a contract - Project Development - Construction Inspection & Management 30

31 Project Staffing & Supervision Consultant (A&E Contracts). Qualification based selection process in accordance with Brooks Act Full-time employee of public agency. must be in responsible charge of project 31

32 Project Delivery Phases Planning Environmental Right of Way Design Construction Maintenance Operations 32

33 Project Development - Pre-Award Planning phase Public involvement for selection of projects in Statewide Transportation Improvement Plan (STIP) A project must be listed in an approved regional TIP or STIP to be eligible for Federal-Aid funds 33

34 Project Development - Pre-Award Environmental phase NEPA process documentation 23CFR Class I - Environmental Impact Statement (EIS) Class II - Categorical Exclusion (CE)» List of eligible actions is provided in the regulation Class III - Environmental Assessment (EA) 34

35 Project Development Process Enviro Planning ROW Design Construction NEPA CE, EA, EIS Location & Design Concept approval 35

36 ENVIRONMENTAL NEPA Planning Design Construction Maintenance Operations 36

37 Why Commitments? 23CFR PART Physical Construction Authorization (i) The FHWA Division Administrator has determined that appropriate measures have been included in the PS&E in keeping with approved guidelines, for minimizing possible soil erosion and water pollution as a result of highway construction operations. (j) The FHWA Division Administrator has determined that requirements of 23 CFR part 771 have been fulfilled and appropriate measures have been included in the PS&E to ensure that conditions and commitments made in the development of the project to mitigate environmental harm will be met. 37

38 Why Commitments? cont. 23CFR PART CONSTRUCTION AND MAINTENANCE - Subpart C- Physical Construction Authorization (g) The plans and specifications will not be approved by FHWA unless those noise abatement measures which are reasonable and feasible are incorporated into the plans and specifications to reduce or eliminate the noise impact on existing activities, developed lands, or undeveloped lands for which development is planned, designed, and programmed. 38

39 Project Development - Pre-Award Design NHS Standards Design Exceptions 13 controlling criteria New or Revised Interstate Access Value Engineering 39

40 Value Engineering / Constructability High Planning Env & R/W Design 23CFR VE is required on projects that have a total project cost of $25 M or more on the NHS; and $20 M or more for structures Low Bid Phase Construction Operations & Maintenance 40

41 Project Development - Pre-Award Right of Way (ROW) Acquisition Uniform Relocation Act compliance Hardship Protection Early Acquisition Certification (PS&E) 41

42 Project Development - Pre-Award PS&E Package (not an all-inclusive list) FHWA Form 1273 Buy America Standardized Changed Condition Clauses DBE Environmental Commitments WZ Traffic Control plan NO local preferences of contractors or materials Regulatory Permits Engineers Estimate 42

43 Regulatory Permits - The Players U.S. Army Corps of Engineers State Department of Fish & Game State Coastal Commission Agencies Involved in Permitting Process U.S. Environmental Protection Agency U.S. Fish and Wildlife Service Regional Water Quality Control Board Local Jurisdictions 43

44 Federal Resource Agencies Corp of Engineers COE Clean Water Act (Nationwide or Individual permit) Fish and Wildlife Service - FWS Endangered Species Act (Section 7 Consultation) Environmental Protection Agency - EPA Clean Water Act (EPA can veto COE 404 permit) Clean Air Act (Review/approval of RTP/RTIP) State Historic Preservation Office - SHPO Historic Protection Act (Section 106 consultation) 44

45 Pre-Award / Project Development Bid & Award of Contract Method of Contracting Low Bid Alternative Contracting (SEP-14) Advertising for bids Addendums Bid opening / analysis DBE participation R/W Cert Award/Rejection concurrence - NTP 45

46 Post-Award / Construction Contract Administration Inspection Consultant Staffing & resources Materials Buy America Proprietary Items Testing Change Orders 46

47 Proprietary Items 23CFR Federal funds will not participate, directly or indirectly, in payment for any premium or royalty on any patented or proprietary material, specification, or process specifically set forth in the plans and specifications for a project The primary purpose of the requirement is to have competition in selection of materials and to allow for development of new materials and products 47

48 Proprietary Items Public Interest Finding (PIF) Certifies either that the proprietary or patented item is essential for synchronization with the existing highway facilities or that no equally suitable alternative exists, or The item is used for research or for a special type of construction on relatively short sections of road for experimental purposes Must be approved in writing prior to contract award 48

49 State Material Preference 23 CFR Restrictions upon materials. No requirement shall be imposed To require the use of or provide a price differential in favor of articles or materials produced within the State, or otherwise to prohibit, restrict or discriminate against the use of articles or materials shipped from or prepared, made or produced in any State, territory or possession of the United States 49

50 Change Orders Contract changes Alter termini Alter character Alter scope of work 50

51 Topics of interest from Cradle to Grave Funds authorization (all phases) Environmental Document PS&E Advertising/Addenda Contract award Change orders Final inspection Final acceptance see Stewardship Agreement for delegated actions 51

52 Basic Guidance - Summary Follow applicable State or Federal laws/regulations Federal-aid eligible items in contracts Follow terms of project that FHWA approves Work outside of the approved project limits Work not covered in the environmental document Only items that are incorporated into the project No maintenance No stockpiling for future other projects No equipment purchases Pay for same material/work only once 52

53 Ineligible Items Non-Conforming Material that Agency Accepts Material not meeting specifications Items not installed according to specifications Experimental Proprietary product (without approved experimental feature work plan) Public Interest Finding (PIF) not processed: Patented / proprietary product Others (force account, public forces, etc.) Work that has been performed prior to the date of FHWA authorization or approval 53

54 54

55 55

56 56

57 Construction Program Management and Inspection Guide Update of FHWA Construction Inspection Techniques Manual (1986 & 1991) Taught in over 48 states past 3 years Instructors are from the FHWA HQ, RC, and Division Offices 57

58 Other Resources Contract Administration Core Curriculum Manual oretoc.cfm 23 Code of Federal Regulations 58

59 Other Resources National Surface Transportation Policy and Revenue Study Commission (December 2007) Economic Recovery 59

60 Who s Responsible? Local Public Agency State DOT District Personnel State DOT Headquarters Personnel Internal Audit FHWA IN OTHER WORDS EVERYONE! 60

61 FHWA/DOT/Local Public Agency 61

62 FHWA is offering an open forum for DISCUSSION & QUESTIONS via future webinars. Please register and attend the Q&A sessions that are scheduled to be held on March 24 & 31 62

63 The End 63

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