Professional Documents
Culture Documents
ORDER 5100.38C
Effective Date: June 28, 2005
1. PURPOSE. This Order provides guidance and sets forth policy and procedures to be used in the administration of the Airport Improvement Program. Several FAA Orders and Advisory Circulars are referred to in this directive. The references appear as the basic publication number without any suffix. However, the latest issuance of the publication should be used as the reference. 2. DISTRIBUTION. This Order is distributed electronically to all addresses of the ZRP-510 special distribution list and to all Airports District Offices. 3. CANCELLATION AND EXPLANATION OF CHANGES. Order 5100-38B, Airport Improvement Program Handbook, dated May 31, 2002, and Change 1, dated January 8, 2004, are cancelled. In addition, Order 5100-38B, Change 2 dated May 16, 2005 replaced in its entirety. Except for an updated cover, Order 5100-38C is identical to the Change 2, which both include new policy changes within Vision 100 Century of Flight Authorization Act of 2003, Public Law 108-176. 4. FORMS AND REPORTS. Virtually all forms and reports are generated by the Airport Improvement Program grants management system. Eventually, all forms will be automated as we move to e-commerce. Most of the forms depicted in the Appendices are in digital format and can be completed in a word processing program. Hard copies of many of the forms will continue to be available as long as needed. When we transition to electronic processing of the grant program, all forms will be available on the web and will be available for sponsors to complete and submit online.
RECORD OF CHANGES
CHANGE TO BASIC SUPPLEMENTS OPTIONAL CHANGE TO BASIC
REC NO
SUPPLEMENTS
OPTIONAL
Order 5100.38C
FOREWORD
1. PURPOSE. This Order provides guidance and sets forth policy and procedures to be used in the administration of the Airport Improvement Program. Several FAA Orders and Advisory Circulars are referred to in this directive. The references appear as the basic publication number without any suffix. However, the latest issuance of the publication should be used as the reference. 2. DISTRIBUTION. This Order is distributed electronically to all addressees of the ZRP-510 special distribution list and to all Airports District Offices. 3. CANCELLATION AND EXPLANATION OF CHANGES. Order 5100.38B, Airport Improvement Program Handbook, dated May 31, 2002, and Change 1, dated January 8, 2004, are cancelled. In addition, Order 5100.38B, Change 2 dated May 16, 2005 is replaced in its entirety. Except for an updated cover, Order 5100.38C is identical to the Change 2, which both include new policy changes within Vision 100 - Century of Flight Authorization Act of 2003, Public Law 108-176.
4. FORMS AND REPORTS. Virtually all forms and reports are generated by the Airport Improvement Program grants management system. Eventually, all forms will be automated as we move to e-commerce. Most of the forms depicted in the Appendices are in digital format and can be completed in a word processing program. Hard copies of many of the forms will continue to be available as long as needed. When we transition to electronic processing of the grant program, all forms will be available on the web and will be available for sponsors to complete and submit online.
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Table of Contents
Chapter 1. Introduction 1 Section 1. General 1 1. Purpose......................................................................................................................................... 1 2. Authorizing Legislation. ................................................................................................................. 1 3. Policy. ........................................................................................................................................... 1 4. Application of Policy and Guidance Principles. ............................................................................. 2 5. Waivers. ........................................................................................................................................ 3 6. Handbook Format. ........................................................................................................................ 3 7. - 19. Reserved............................................................................................................................. 3 Section 2. Title 49 United States Code 3 20. Grant Authority. ........................................................................................................................... 3 21. Revenue Sources........................................................................................................................ 3 22. AIP Authorized Funding Levels. .................................................................................................. 4 23. Types of Airports and Airport Activities. ...................................................................................... 4 24. Changes in Airport Classification. ............................................................................................... 8 25. Distribution of Funds. .................................................................................................................. 8 26. Federal Share of Project Costs. ................................................................................................ 12 27. Maximum Allowable Grant Increases........................................................................................ 14 28. - 29. Reserved......................................................................................................................... 14 Section 3. Overview of the Grant Process and Program Funding 15 30. The Grant Process. ................................................................................................................... 15 31. Restrictions on Lobbying and Influencing Federal Employees. ................................................. 15 32. Limitations on Regional Airports Division Authority. .................................................................. 15 33. The AIP Funding Process. ........................................................................................................ 16 34. Project Approval and Congressional Notification. ..................................................................... 17 35. Office of Management and Budget (OMB) Circular A-102. ....................................................... 17 36. Mandatory Standards................................................................................................................ 19 37. Use or Transfer of Entitlement Funds. ...................................................................................... 19 38. State Block Grant Program. ...................................................................................................... 20 39. Letters of Intent. ........................................................................................................................ 20 40. Military Airport Program. ........................................................................................................... 20 41. Other Federal Assistance.......................................................................................................... 20 42. Financial Statements................................................................................................................. 20 43. Change in the AIP Processes. .................................................................................................. 20 44. - 199. Reserved....................................................................................................................... 20 Chapter 2. Sponsor Eligibility 21 200. General. .................................................................................................................................. 21 201. Legal and Financial Responsibility. ......................................................................................... 21 202. Co-Sponsor. ............................................................................................................................ 21 203. Agents. .................................................................................................................................... 22 204. Planning Agencies. ................................................................................................................. 22 205. Designation of Eligible Planning Agencies. ............................................................................. 22 206. Public Agencies Owning Airports ............................................................................................ 23 207. Public Agencies not Owning Airports ...................................................................................... 23 208. Private Airport Owners. ........................................................................................................... 23 209. State Sponsorship of Airport Projects. .................................................................................... 24 210. Other Sponsor Eligibility. ......................................................................................................... 25 211. - 299. Reserved..................................................................................................................... 25
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Chapter 3. Project Eligibility, Allowable Costs, Priority, and Donations 27 Section 1. Project Eligibility 27 300. General Project Eligibility Requirements ................................................................................. 27 301. Prohibitions ............................................................................................................................. 27 302. Environmental Requirements .................................................................................................. 28 303. Off Airport Work. ..................................................................................................................... 28 304. Works of Art ............................................................................................................................ 29 305. Relocation or Modification of FAA Facilities. ........................................................................... 29 306. Pavement Evaluations. ........................................................................................................... 30 307. Equipment Procurement under Planning Grants..................................................................... 32 308. - 309. Reserved..................................................................................................................... 32 Section 2. Allowable/Nonallowable Costs 32 310. Allowable Project Costs. ......................................................................................................... 32 311. Nonallowable Project Costs. ................................................................................................... 35 312. - 319. Reserved..................................................................................................................... 37 Section 3. Priority System 37 320. National Priority System .......................................................................................................... 37 321. - 349. Reserved..................................................................................................................... 37 Section 4. Donations, Contributions, and Loans 37 350. General. .................................................................................................................................. 37 351. Land Donated to Sponsors...................................................................................................... 37 352. Labor, Material, Equipment, and Services Donated to Sponsors. ........................................... 39 353. Treatment of Donation Credits in the Grant Agreement. ......................................................... 39 354. - 399. Reserved..................................................................................................................... 40 Chapter 4. Planning Projects 41 Section 1. Planning Project Scope and Eligibility 41 400. The Planning Process. ............................................................................................................ 41 401. Eligible Planning Projects........................................................................................................ 42 402. The Airport Capital Improvement Plan (ACIP)......................................................................... 43 403. Planning Work Scope Requirements. ..................................................................................... 43 404. Eligible Study Elements and Activities. ................................................................................... 45 405. System Planning Elements. .................................................................................................... 46 406. Master Planning Elements. ..................................................................................................... 48 407. - 409. Reserved..................................................................................................................... 51 Section 2. Planning Project Application 51 410. General. .................................................................................................................................. 51 411. Pre-Planning Conference. ....................................................................................................... 51 412. Preparation of Application. ...................................................................................................... 52 413. Review and Approval of Application........................................................................................ 53 414. - 419. Reserved..................................................................................................................... 54 Section 3. Planning Project Accomplishment 54 420. Consultant Contracts............................................................................................................... 54 421. FAA Role in Consultant Selection. .......................................................................................... 54 422. Contract Review and Approval................................................................................................ 54 423. Procurement Deficiencies. ...................................................................................................... 54 424. Purchase of Equipment. .......................................................................................................... 55 425. Project Monitoring, Coordination, and Reports........................................................................ 55 426. Suspension and Termination................................................................................................... 56 427. Final Planning Reports............................................................................................................ 56 428. FAA Approval Actions. ............................................................................................................ 56 429. FAA Acceptance of Projects.................................................................................................... 59
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Chapter 5. Airfield Construction and Equipment Projects 61 Section 1. General Eligibility and Project Requirements 61 500. Project Eligibility. ..................................................................................................................... 61 501. Reconstruction Versus Maintenance....................................................................................... 61 502. National Airspace System Requirements. ............................................................................... 62 503. Transition to Satellite Navigation............................................................................................. 63 504. Innovative Technology and Finance........................................................................................ 63 505. Airfield Project Justification. .................................................................................................... 64 506. Project Standards and Design................................................................................................. 64 507. Commissioning and Decommissioning Airfield Facility. .......................................................... 65 508. Life-Cycle Airport Costs. ......................................................................................................... 65 509. Reserved................................................................................................................................. 65 Section 2. Site Preparation 66 510. General. .................................................................................................................................. 66 511. Existing Facility Improvements................................................................................................ 66 512. New Airport, Major Runway Projects, and Military Airport Conversions. ................................. 66 513. Safety Areas............................................................................................................................ 66 514. Site Preparation for F&E Installations. .................................................................................... 67 515. Utilities and Fuel Farms. ......................................................................................................... 67 516. Proration of Site Preparation Work.......................................................................................... 68 517. - 519. Reserved..................................................................................................................... 68 Section 3. Management of Airfield Paving Projects 68 520. General. .................................................................................................................................. 68 521. Runways. ................................................................................................................................ 70 522. Helicopter and Tilt-Rotor Facilities. ......................................................................................... 70 523. Ultralight Facilities. .................................................................................................................. 70 524. Seaplane Bases. ..................................................................................................................... 70 525. Taxiways. ................................................................................................................................ 71 526. Apron Areas and Related Facilities. ........................................................................................ 71 527. Airfield Service Roads............................................................................................................. 72 528. - 529. Reserved..................................................................................................................... 72 Section 4. Airfield Lighting and Surface Movement 72 530. General. .................................................................................................................................. 72 531. Airfield Marking and Remarking. ............................................................................................. 73 532. Airfield Signage. ...................................................................................................................... 75 533. Installation and Alteration of Airfield Lighting........................................................................... 75 534. Runway, Heliport, and Vertiport Lighting. ................................................................................ 75 535. Taxiway and Apron Lighting. ................................................................................................... 76 536. Surface Movement Guidance and Control System. ................................................................ 77 537. Other Airfield Lighting and Marking. ........................................................................................ 77 538. Electrical Power. ..................................................................................................................... 78 539. Reserved................................................................................................................................. 79 Section 5. Safety, Security, and Related Projects 79 540. Federal Aviation Regulation Part 139 and Title 49 CFR, Part 1542. ....................................... 79 541. Safety Equipment.................................................................................................................... 79 542. Security Projects. .................................................................................................................... 81 543. Snow and Ice Control Equipment............................................................................................ 83 544. Aircraft Ground Deicing and Anti-Icing Equipment. ................................................................. 83 545. Friction Measuring Devices. .................................................................................................... 83 546. Training Systems. ................................................................................................................... 84
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547. Safety, Security, and Related Facilities................................................................................... 84 548. - 549. Reserved..................................................................................................................... 87 Section 6. Airport and Terminal Area Navigation Aid Facilities 87 550. General. .................................................................................................................................. 87 551. FAR Part 171. ......................................................................................................................... 87 552. Simplification of Non-Federal Navigation Aid Projects. ........................................................... 87 553. Supporting Agreements to Implement NAVAID Projects......................................................... 89 554. Airport Approach and Landing Systems. ................................................................................. 89 555. Airport Navigation Aid Equipment. .......................................................................................... 90 556. Airport Approach Lighting Systems. ........................................................................................ 91 557. Terminal NAVAID Facilities. .................................................................................................... 92 558. Special Condition. ................................................................................................................... 94 559. Reserved................................................................................................................................. 94 Section 7. Communications, Surveillance, and Air Traffic Control 94 560. General. .................................................................................................................................. 94 561. Communications Equipment. .................................................................................................. 94 562. Radar. ..................................................................................................................................... 95 563. Airport Traffic Control Towers. ................................................................................................ 95 564. - 569. Reserved..................................................................................................................... 96 Section 8. Aviation Weather Equipment 96 570. General. .................................................................................................................................. 96 571. Wind Indicators and Recording Anemometers. ....................................................................... 97 572. Automated Weather Observing System (AWOS).................................................................... 97 573. Low-Level Wind-Shear Alert System (LLWAS). ...................................................................... 98 574. Runway Visual Range (RVR). ................................................................................................. 98 575. - 579. Reserved..................................................................................................................... 98 Section 9. Aviation Hazards and Environmental Mitigation 98 580. General. .................................................................................................................................. 98 581. Objects in Runway Protection Zone. ....................................................................................... 99 582. Airport Hazards. ...................................................................................................................... 99 583. Hazardous Waste.................................................................................................................... 99 584. Wildlife Hazards. ................................................................................................................... 100 585. Low Emission Systems and Other Air Quality Projects. ........................................................ 100 586. Wetlands. .............................................................................................................................. 101 587. Water Quality Projects. ......................................................................................................... 102 588. - 589. Reserved................................................................................................................... 102 Section 10. Miscellaneous 102 590. Blast Fences. ........................................................................................................................ 102 591. Equipment Lease, Repair, Modification, and Disposal. ......................................................... 103 592. Landscaping and Turf. .......................................................................................................... 103 593. Purchase, Relocation, or Demolition of Ineligible Facilities. .................................................. 103 594. Replacement Facilities. ......................................................................................................... 105 595. Construction Project Signs. ................................................................................................... 105 596. - 599. Reserved................................................................................................................... 105
Chapter 6. Terminals, Landside, and Terminal Access Projects 107 Section 1. Terminal Development 107 600. General Eligibility. ................................................................................................................. 107 601. Terminal Development. ......................................................................................................... 107 602. Terminal Security Projects. ................................................................................................... 108 603. Other Eligible Terminal Development.................................................................................... 110 604. Expanded Terminal Eligibility and Parking Lots. ................................................................... 110
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605. Americans with Disabilities Act of 1990 (ADA) ...................................................................... 111 606. Expanded Eligibility under the Military Airport Program (MAP). ............................................ 111 607. Energy Assessment. ............................................................................................................. 112 608. Value Engineering................................................................................................................. 112 609. Utilities. ................................................................................................................................. 112 610. Relocation of Air Traffic Control Towers and Navigational Aids. ........................................... 112 611. Eligibility Limitations. ............................................................................................................. 113 612. Multimodal Terminal Buildings. ............................................................................................. 116 613. Proration of Terminal Building Work...................................................................................... 116 614. Terminal Development Bond Retirement. ............................................................................. 117 615. - 619. Reserved................................................................................................................... 117 Section 2. Terminal Access 117 620. Access Road Eligibility. ......................................................................................................... 117 621. Walkways. ............................................................................................................................. 118 622. On Airport Rapid Transit Systems......................................................................................... 119 623. - 629. Reserved................................................................................................................... 119 Section 3. Other Terminal Landside Construction. 119 630. General. ................................................................................................................................ 119 631. Establishment of Structures on Federally Obligated Paved Areas. ....................................... 119 632. - 639. Reserved................................................................................................................... 120 Section 4. AIP/PFC Program Disparities 120 640. General. ................................................................................................................................ 120 641. - 699. Reserved................................................................................................................... 120
Chapter 7. Land Acquisition Projects 121 Section 1. Land Acquisition 121 700. General. ................................................................................................................................ 121 701. Land Acquisition for Current Airport Development. ............................................................... 122 702. Treatment of Unneeded Real Property. ................................................................................ 123 703. Retention of Excess Land for Noise Purposes. ..................................................................... 123 704. Relocation and Real Property Acquisition Assurances. ........................................................ 123 705. Land Acquisition for Future Airport Development.................................................................. 123 706. Land Acquisition for Noise Compatibility. .............................................................................. 124 707. Acquisition of a Private Airport by a Public Sponsor. ............................................................ 125 708. Land Acquisition at a Privately-Owned Public Use Airport . .................................................. 125 709. Land Acquisition from a State/Local Public Agency. ............................................................. 126 Section 2. Title and Property Interest 126 710. Title Requirement.................................................................................................................. 126 711. Title for Landing and Building Areas. .................................................................................... 126 712. Title for Off-Airport Areas. ..................................................................................................... 126 713. Determination of Adequate Title............................................................................................ 127 714. Title Requirement prior to Notice to Proceed. ....................................................................... 127 715. - 719. Reserved................................................................................................................... 127 Section 3. Land Costs 127 720. General. ................................................................................................................................ 127 721. Relocation Cost..................................................................................................................... 127 722. Reimbursement for Land Previously Acquired. ..................................................................... 128 723. Land Acquired through Condemnation.................................................................................. 130 724. Land Exchange. .................................................................................................................... 130 725. Land Leases.......................................................................................................................... 130 726. Nonallowable Land Costs. .................................................................................................... 130 727. - 729. Reserved................................................................................................................... 130
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Section 4. Disposal of Unneeded Land 130 730. Disposal of Land. .................................................................................................................. 130 731. Uses of Airport Revenue. ...................................................................................................... 131 732. - 799. Reserved................................................................................................................... 131
Chapter 8. Noise Compatibility Projects 133 Section 1. General 133 800. General. ................................................................................................................................ 133 801. Project Eligibility. ................................................................................................................... 133 802. Sponsor Eligibility.................................................................................................................. 134 803. Cosponsor............................................................................................................................. 134 804. Applicability of the Airport and Airway Improvement Act (AAIA) Provisions. ......................... 134 805. Environmental Considerations. ............................................................................................. 134 806. Agreements for Noise Compatibility Projects on Public Property not Owned by the Sponsor. ........................................................................................................................... 134 807. Projects on Privately Owned Property - Condition in Grant Agreement. ............................... 136 808. Easement in Conjunction with Soundproofing....................................................................... 136 809. Revenue from Noise Compatibility Projects. ......................................................................... 136 Section 2. Noise Compatibility Projects 136 810. General. ................................................................................................................................ 136 811. Acquisition of Land or Interests in Land for Noise Compatibility............................................ 137 812. Noise Insulation Projects....................................................................................................... 140 813. Noise Monitoring Equipment/Systems. ................................................................................. 142 814. Noise Barriers. ...................................................................................................................... 143 815. Miscellaneous Noise Compatibility Projects. ......................................................................... 144 816. Allowable Project Costs. ....................................................................................................... 145 817. - 819. Reserved................................................................................................................... 145 Section 3. Use of Proceeds from Sale of Noise Compatibility Land 145 820. Disposal Requirement. .......................................................................................................... 145 821. Use of Funds......................................................................................................................... 145 822. Evaluating Reinvestment Proposals...................................................................................... 145 823. Requirements For Reinvestment........................................................................................... 145 824. Conversion to Airport Development Land. ............................................................................ 146 825. - 899. Reserved................................................................................................................... 146 Chapter 9. Procurement and Contract Requirements 147 Section 1. Procurement 147 900. General. ................................................................................................................................ 147 901. Review of Proposed Procurements....................................................................................... 147 902. FAA Review of Contract Documents..................................................................................... 148 903. Competition in Procurements. ............................................................................................... 149 904. Procurement Methods........................................................................................................... 149 905. Procurement of Equipment.................................................................................................... 151 906. Price or Cost Analysis. .......................................................................................................... 153 907. Professional Service Retainers. ............................................................................................ 153 908. Procurement of Engineering, Architectural, and other Professional Services for Several Projects................................................................................................................ 154 909. Solicitations Containing both Eligible and Ineligible Work. .................................................... 154 910. Life Cycle Costs in Competitive Sealed Bids......................................................................... 155 911. Bonding. ................................................................................................................................ 156 912. Award to Other than Apparent Low Bidder............................................................................ 156 913. Alternate Bids........................................................................................................................ 157 914. Bid Protests........................................................................................................................... 157 915. Specific Situations................................................................................................................. 158
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916. - 919. Reserved................................................................................................................... 159 Section 2. Traditional Contracts 159 920. General. ................................................................................................................................ 159 921. Nonallowable Practices......................................................................................................... 159 922. Required Federal Provisions. ................................................................................................ 160 923. - 929. Reserved................................................................................................................... 162 Section 3. Alternative Delivery Methods 162 930. General. ................................................................................................................................ 162 931. Design Build. ......................................................................................................................... 163 932. - 939. Reserved................................................................................................................... 165 Section 4. Change Orders and Supplemental Agreements 165 940. Change Orders and Supplemental Agreements.................................................................... 165 941. - 949. Reserved................................................................................................................... 165 Section 5. Suspension and Debarment 165 950. General. ................................................................................................................................ 165 951. Applicability of Title 49 CFR, Part 29..................................................................................... 165 952. Nonprocurement List............................................................................................................. 166 953. Designations. ........................................................................................................................ 166 954. Procedures for Suspension and Debarment. ........................................................................ 166 955. - 999. Reserved................................................................................................................... 166
Chapter 10. Project Formulation, Requests for Aid, and Letters of Intent 167 Section 1. Project Formulation 167 1000. General. .............................................................................................................................. 167 1001. Project File. ......................................................................................................................... 167 1002. Project Engineering............................................................................................................. 167 1003. Contract Engineering Services............................................................................................ 167 1004. Force Account Engineering Services. ................................................................................. 168 1005. Coordination and Approval of Plans and Specifications...................................................... 168 1006. Intergovernmental Project Review. ..................................................................................... 169 1007. Public Hearing..................................................................................................................... 170 1008. ALP Review......................................................................................................................... 171 1009. Value Engineering (VE)....................................................................................................... 171 Section 2. Requests for Aid 172 1010. General. .............................................................................................................................. 172 1011. Supporting Documents........................................................................................................ 172 1012. Timing of Submission. ......................................................................................................... 173 1013. - 1019. Reserved............................................................................................................... 173 Section 3. Sponsor Certification 173 1020. General Certification Requirements. ................................................................................... 173 1021. Relation of Assurances and Certification. ........................................................................... 173 1022. Required Sponsor Certification Forms. ............................................................................... 174 1023. Timing of Sponsor Certification Process. ............................................................................ 175 1024. Sponsor Certification Forms and Procedures...................................................................... 175 1025. Areas with Standard Forms................................................................................................. 176 1026. Areas Excluded from Routine Certification Forms............................................................... 176 1027. False and Inaccurate Certifications. .................................................................................... 176 1028. - 1029. Reserved............................................................................................................... 177 Section 4. CIP and Application Review and Evaluation 177 1030. General. .............................................................................................................................. 177 1031. Project Evaluation Report and Development Analysis. ....................................................... 177
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1032. - 1039. Reserved............................................................................................................... 180 Section 5. Project Approval/Disapproval and Allocation 180 1040. Project Approval.................................................................................................................. 180 1041. Notice of Disapproval or Deferral. ....................................................................................... 180 1042. Washington Coordination. ................................................................................................... 180 1043. Notice of Allocation. ............................................................................................................ 181 1044. Schedule for Sponsor Development of the Project.............................................................. 181 1045. - 1049. Reserved............................................................................................................... 183 Section 6. Application Review and Approval 183 1050. General. .............................................................................................................................. 183 1051. Project Summary................................................................................................................. 183 1052. Determination of Reasonableness of Costs. ....................................................................... 183 1053. Review for Bid Improprieties. .............................................................................................. 184 1054. - 1059. Reserved............................................................................................................... 184 Section 7. Modification of Approved Programs 184 1060. Program Changes. .............................................................................................................. 184 1061. Procedures.......................................................................................................................... 184 1062. Announcement of Changes to Approved Program.............................................................. 185 1063. - 1069. Reserved............................................................................................................... 185 Section 8. Letters of Intent 185 1070. General. .............................................................................................................................. 185 1071. Eligibility. ............................................................................................................................. 185 1072. Factors in Considering LOIs:............................................................................................... 185 1073. Issuance of LOI. .................................................................................................................. 186 1074. Procedures.......................................................................................................................... 187 1075. LOI Funds Allocation........................................................................................................... 189 1076. Post-LOI Actions. ................................................................................................................ 189 1077. LOI Grant Application and Offer. ......................................................................................... 189 1078. Administration of Letters of Intent........................................................................................ 190 1079. Amendments to Letters of Intent. ........................................................................................ 190 1080. Additional Letter of Intent. ................................................................................................... 190 1081. - 1089. Reserved............................................................................................................... 190 Section 9. Block Grant Procedures 190 1090. General. .............................................................................................................................. 190 1091. Calculating Amounts for Grant Agreements. ....................................................................... 191 1092. Maximum State Flexibility.................................................................................................... 192 1093. Airport Eligibility and Allowable Cost. .................................................................................. 193 1094. Accomplishment of Airport Projects. ................................................................................... 194 1095. Standard Assurances and Regional Agreements................................................................ 195 1096. Authorities Retained by FAA. .............................................................................................. 196 1097. Reporting and FAA Regulatory Oversight. .......................................................................... 197 1098. Suspension of Block Grant.................................................................................................. 198 1099. Termination of State Block Grant or Program. .................................................................... 198
Chapter 11. Grant Offer, Agreement, and Amendment 200 Section 1. Grant Offer 200 1100. General. .............................................................................................................................. 200 1101. Project Description. ............................................................................................................. 200 1102. Multi-Year Grants. ............................................................................................................... 200 1103. Standard Conditions............................................................................................................ 201 1104. Final Clearance of Grant Offer. ........................................................................................... 202 1105. Letter of Intent. .................................................................................................................... 202
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1106. - 1109. Reserved............................................................................................................... 202 Section 2. Variations and Transition to Electronic Grants 202 1110. General. .............................................................................................................................. 202 1111. - 1119. Reserved............................................................................................................... 202 Section 3. Special Conditions 202 1120. General. .............................................................................................................................. 202 1121. Special Conditions to be Included in Grant Agreements. .................................................... 202 1122. Other Subjects which May Require Special Conditions. ..................................................... 202 1123. - 1129. Reserved............................................................................................................... 203 Section 4. Acceptance of Grant Offer 203 1130. General. .............................................................................................................................. 203 1131. Time Limit for Acceptance of Offer...................................................................................... 203 1132. Distribution and Notification of Grant Agreement. ............................................................... 203 1133. Revision of Grant Offer. ...................................................................................................... 203 1134. - 1139. Reserved............................................................................................................... 204 Section 5. Grant Amendments 204 1140. General. .............................................................................................................................. 204 1141. Amendments Involving a Change in the Work Description.................................................. 204 1142. Amendments Involving a Change in the U.S. Obligation..................................................... 205 1143. Acceptance of Amendment. ................................................................................................ 207 1144. Numbering Amendments..................................................................................................... 207 1145. Informal Letter Amendments. .............................................................................................. 208 1146. - 1149. Reserved............................................................................................................... 208 Section 6. Suspension and Termination of the Grant 208 1150. General. .............................................................................................................................. 208 1151. Suspension of the Grant...................................................................................................... 208 1152. Termination for Cause......................................................................................................... 209 1153. Termination for Convenience. ............................................................................................. 209 1154. Request for Reconsideration............................................................................................... 209 1155. Funds Recovery. ................................................................................................................. 209 1156. Distribution. ......................................................................................................................... 209 1157. - 1199. Reserved............................................................................................................... 210
Chapter 12. Project Accomplishment 212 Section 1. Pre-construction Activities 212 1200. General. .............................................................................................................................. 212 1201. Sponsor Certification. .......................................................................................................... 212 1202. Assurances and Certifications............................................................................................. 212 1203. Land Title Requirement. ...................................................................................................... 212 1204. Authorization of Notice to Proceed...................................................................................... 212 1205. Delay in Construction Start.................................................................................................. 213 1206. Pre-construction Conference............................................................................................... 213 1207. Scope and Agenda.............................................................................................................. 213 1208. Labor and Civil Rights Requirements.................................................................................. 214 1209. - 1219. Reserved............................................................................................................... 214 Section 2. Construction Procedures 214 1220. FAA Responsibilities. .......................................................................................................... 214 1221. Sponsors Responsibilities. ................................................................................................. 215 1222. Change Orders and Supplemental Agreements.................................................................. 216 1223. - 1229. Reserved............................................................................................................... 216
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Section 3. Sponsors Force Account 216 1230. General. .............................................................................................................................. 216 1231. Justification and Approval. .................................................................................................. 217 1232. Sponsor Funds.................................................................................................................... 217 1233. Cost Allowability. ................................................................................................................. 217 1234. Performance of Construction............................................................................................... 218 1235. - 1299. Reserved............................................................................................................... 218
Chapter 13. Project Payment, Closeout, and Audit 220 Section 1. Project Payment 220 1300. General. .............................................................................................................................. 220 1301. Letter of Credit. ................................................................................................................... 220 1302. Payment by Treasury Check or Electronic Funds Transfer - General. ................................ 220 1303. Payment by Treasury Check or Electronic Funds Transfer - Forms.................................... 220 1304. Payment by Treasury Check or Electronic Funds Transfer - Approval................................ 221 1305. Withholding Payment. ......................................................................................................... 221 1306. - 1309. Reserved............................................................................................................... 222 Section 2. Grant Closeout Procedures 222 1310. General. .............................................................................................................................. 222 1311. Audit Relationship to Closeout. ........................................................................................... 222 1312. Work Completion Requirements for Closeout. .................................................................... 222 1313. Administrative Requirements for Closeout. ......................................................................... 223 1314. Financial Requirements for Closeout. ................................................................................. 223 1315. Final Project Report. ........................................................................................................... 224 1316. Financial Settlement............................................................................................................ 224 1317. Reports to FAA Headquarters. ............................................................................................ 224 1318. Reclaim for Suspended Costs after Final Settlement.......................................................... 224 1319. Reserved............................................................................................................................. 224 Section 3. Audits 224 1320. General. .............................................................................................................................. 224 1321. Audit Responsibilities - General. ......................................................................................... 225 1322. Audit Responsibility - FAA Airports Office. .......................................................................... 225 1323. Audit Responsibility - Public Sponsor.................................................................................. 226 1324. Audit Responsibility - OIG. .................................................................................................. 226 1325. Private Sponsor Audit. ........................................................................................................ 227 1326. Grants Less than $300,000. ................................................................................................ 227 1327. Supplemental Audits. .......................................................................................................... 227 1328. Audit Costs.......................................................................................................................... 227 1329. Release of Audit Reports. ................................................................................................... 227 1330. - 1399. Reserved............................................................................................................... 228 Chapter 14. Enforcement of Labor and Civil Rights Requirements 230 Section 1. Enforcement of Labor Requirements 230 1400. General. .............................................................................................................................. 230 1401. Enforcement Responsibility................................................................................................. 231 1402. FAA Examinations and Investigations................................................................................. 231 1403. Investigation Report. ........................................................................................................... 231 1404. Review and Sponsor Notification. ....................................................................................... 231 1405. Sponsor Corrective Action................................................................................................... 231 1406. Withholding Grant Payments............................................................................................... 231 1407. Action on Investigation Reports........................................................................................... 232 1408. Department of Labor Investigations. ................................................................................... 232 1409. Liquidated Damages under the Contract Work Hours and Safety Standards Act. .............. 232 1410. - 1419. Reserved............................................................................................................... 233
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Section 2. Enforcement of Civil Rights Requirements 233 1420. General. .............................................................................................................................. 233 1421. The Civil Rights Requirements with which Sponsors, Contractors, and Subcontractors must Comply............................................................................................ 233 1422. Disadvantaged Business Enterprises (DBE) Program. ....................................................... 235 1423. Section 47123 of the Act. .................................................................................................... 236 1424. Executive Order (E.O.) 11246. ............................................................................................ 237 1425. Rehabilitation Act of 1973 (P.L. 93.112).............................................................................. 237 1426. Aircraft and Air Carrier Facility Accessibility. ....................................................................... 238 1427. Americans with Disabilities Act (ADA) of 1990. ................................................................... 239 1428. - 1499. Reserved............................................................................................................... 239
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Appendices
Appendix 1. Non-Allowable Items (1 page) Appendix 2. Reserved (1 page) Appendix 3. Standard Form 424 (2 pages) Appendix 4. Part II Project Approval Information (FAA Form 5100-100) (Development Projects) (10 pages) Appendix 5. Project Approval Information (FAA Form 5100-101) (Planning Projects) (8 pages) Appendix 6. Grant Agreement (FAA Form 5100-37) (3 pages) Appendix 7. Grant Special Conditions (6 pages) Appendix 8. Project Evaluation Review and Development Analysis Checklist (FAA Form 5100-109) (1 page) Appendix 9. Construction Progress and Inspection Report (FAA Form 5370-1) (2 pages) Appendix 10. AIP Final Inspection Report (FAA Form 5100-17) (1 page) Appendix 11. Title VI Reverter Clauses (1 page) Appendix 12. Labor Standards Interview and Summary of Labor Standards Investigation Reports (Forms DOT F 4220.5 and 4220.6) (2 Pages) Appendix 13. Examples of Increasing Maximum Obligation (4 pages) Appendix 14. Grant Amendment (FAA Form 5100-38) (2 pages) Appendix 15. Informal Letter Amendment (2 pages) Appendix 16. Entitlement Transfer Agreement (FAA Form 5100-110) (1 page) Appendix 17. Multi-Year Letter Amendment (Suggested Text) (1 page) Appendix 18. Federal Cash Transactions Report (SF 272) (3 pages) Appendix 19. Request for Advance or Reimbursement (SF 270) (2 pages) Appendix 20. Outlay Report and Request for Reimbursement for Construction Programs (SF 271) (2 pages) Appendix 21. Letter of Intent and Amendment (3 pages) Appendix 22. Agreement on State Sponsorship and Airport Sponsor Obligations (2 pages) Appendix 23. Adjustments of Federal Shares at Certain Airports (1 page) Appendix 24. Reserved (1 page) Appendix 25. Standard Sponsor Certification Forms (12 pages) Appendix 26. Block Grant Application (1 page) Appendix 27. Block Grant Agreement (4 pages) Appendix 28. AIP Grant Status Report (FAA Form 5100-107 - Electronic Version) (1 Page) Appendix 29. Finance Template for LOI Applicants (1 Page) Appendix 30. Obligations in Block Grant Suspension or Termination (1 Page)
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Chapter 1. INTRODUCTION
Section 1. GENERAL
1. PURPOSE.
This order provides guidance and sets forth policies and procedures for the administration of the Airport Improvement Program (AIP) by the Federal Aviation Administration (FAA).
2. AUTHORIZING LEGISLATION.
a. The AIP is authorized by Chapter 471 of Title 49 of the United States Code (U.S.C.), which is referred to as the Act. Previously, the AIP was authorized by the Airport and Airway Improvement Act of 1982 (P.L. 97-248, as amended), which was repealed in 1994 by Public Law 103-272 (July 5, 1994), Codification of Certain U.S. Transportation Laws at Title 49 U.S.C. and the provisions were recodified as Chapter 471. No substantive changes were made in the recodification. Since the original authorization the Act has been amended in 1994, 1996, 1999, 2000, 2001, 2002 and again in 2003, to change the annual authorizations for fiscal year 1994 through FY 2007 as well as numerous other program changes. The Acts broad objective is to assist in the development of a nationwide system of public-use airports adequate to meet the current needs and the projected growth of civil aviation. The Act provides funding for airport planning and development projects at airports included in the National Plan of Integrated Airport Systems (NPIAS). b. The Act also authorizes funds for noise compatibility planning and to carry out noise compatibility programs as set forth in the Aviation Safety and Noise Abatement Act of 1979 (P.L. 96-143). Public Law 103-272 (July 5, 1994), Codification of Certain U.S. Transportation Laws at Title 49 U.S.C., also repealed the Aviation Safety and Noise Abatement Act of 1979, as amended, and recodified it without substantive change at Title 49 U.S.C. c. Several notable name changes were contained in the recodification language. The term enplanements was replaced with the term passenger boardings. The codification also refers to passenger facility fees instead of passenger facility charges. These terms, when used in a discussion of legislative provisions and program objectives, are interchangeable.
3. POLICY.
The highest aviation priority of the United States is the safe and secure operation of the airport and airway system. Policy statements in enabling legislation address minimizing noise impacts on nearby communities; developing reliever airports; developing cargo hub airports; developing systems that use various modes of transportation; protecting and enhancing natural resources; and reducing aircraft operation delays. In addition, such policies address converting former military air bases to civil use or improving additional joint-use facilities; and implementing a variety of other provisions to ensure a safe and efficient airport system. The FAA supports the policies by giving highest priority to projects that enhance safety and security of our airport system. Other major policy objectives are advanced by assigning high priority to the award of AIP funds to maintain airport infrastructure and increase the capacity of facilities to accommodate growing passenger and cargo traffic. The United States aviation policies are strengthened by statutory provisions that direct specific funding to help minimize current and projected noise impacts; convert current and former military air bases that are available for civil use; preserve and enhance capacity, safety, and security at primary and reliever airports; and ensure continued funding availability to general aviation and nonprimary commercial service airports. Discussion of these funding designations is provided in the sections that follow dealing with apportioned and discretionary funds.
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Title 49 U.S.C., Section 47103 requires the Secretary of Transportation to publish a national plan for the development of public use airports in the United States. This plan, the NPIAS, lists development considered necessary to provide a safe, secure, efficient, and integrated airport system meeting the needs of civil aviation, national defense, and the U. S. Postal Service. An airport must be included in this plan to be eligible to receive a grant under the AIP. The latest published edition of the NPIAS, before the issuance of this order, covered 2005-2009. It was transmitted to Congress on September 30, 2004. That report identified 3,344 existing airports of significance to air transportation and included estimates that $39.55 billion in AIP-eligible development is needed over the 5-year period of 2005-2009 to meet the needs of all segments of civil aviation.
June 28, 2005 (10) FAR Part 150, "Airport Noise Compatibility Programs;" (11) FAA Order 5100.39, Airports Capital Improvement Plan;
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(12) Other advisory circulars, orders, agency directives, regulations, etc., are referenced in this handbook for guidance in particular areas. They may be consulted when more details are required. c. Where possible, the administrative procedures for both the region and the sponsors have been simplified with a view toward reducing the workload for the regions and field offices as well as reducing burdensome detail and paperwork for sponsors. If there are any areas in this handbook where further progress toward this goal can be made (within the purview of the FAA), they should be brought to the attention of the Airports Financial Assistance Division, APP-500; ATTN: Airport Improvement Program Branch, APP-520.
5. WAIVERS.
Except where options are specifically noted in this order or where non-mandatory language is used, e.g., "may" or "as determined by the field office", the procedures and requirements are mandatory in nature. Any deviation from them must be approved by the Director of the Office of Airport Planning and Programming or designee. All requests for deviations should be sent to the Director of the Office of Airport Planning and Programming for processing.
6. HANDBOOK FORMAT.
a. The handbook is arranged beginning with explanation, definition, and description of major kinds of projects and overall requirements followed by the step-by-step process in carrying out a typical grant from project formulation to grant closeout. The final chapter covers Civil Rights/Labor enforcement. b. Similar subject matter in different chapters is cross-referenced to avoid text duplication and to lead the reader through the applicable guidance. A subject index at the end of certain previous editions of the handbook has been omitted since electronic search engines may replace this guide for users. c. Except as noted, the appendices to the handbook contain all forms normally used in the grant process as well as standardized language to be used for special conditions. Standard language and forms used for Civil Rights and Labor requirements are to be found in the two advisory circulars on those subjects. Forms for program control and reporting are found in FAA Order 5100.20. d. Guidance newly issued as a Program Guidance Letter (PGL), which is appropriate for inclusion in the handbook, will be included in subsequent handbook changes. PGLs will continue to be issued for items that are not appropriate handbook material, for example short-term policy guidance or detailed information on particular subjects, and to provide interim guidance between handbook changes.
7. - 19. RESERVED.
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funding source whereby users pay for the services they receive. In 1997, Congress enacted new taxes that fund the Trust Fund. Each component of the taxes and the percentage of the total revenue derived from them during FY 2003 are shown in Table 1. The percentages show relative contributions of taxes.
Table 1 Aviation Taxes
AVIATION COMPONENT Domestic Passenger Ticket Tax (Including Areas of Canada and Mexico Not More Than 225 Miles from the Continental United States) Domestic Passenger Flight Segment Passenger Ticket Tax at Rural Airports (Having Less Than 100,000 Boardings and More Than 75 Miles from an Airport with 100,000 Boardings) International Departure and Arrival Taxes (Where Domestic Tax Does Not Apply) Special Rule for Flights between Continental US and Alaska or Hawaii Frequent Flyer Tax Waybill Domestic Freight and Mail Commercial Fuel Tax General Aviation Fuel Tax
COMPUTATION FORMULAE
PERCENT
49
$3 per Segment during Calendar Year (CY) 2002 Indexed to Consumer Price Index (CPI) after CY 2002 7.5% of Ticket Cost Beginning Oct. 1, 1997 (Excludes Flight Segment Component) $12 Per Person Departure Tax Plus $12 Per Person Arrival Tax Beginning Oct. 1, 1997 Indexed to CPI Beginning Jan. 1, 1999
20
15 $6 Departure Tax for International Facilities Indexed to CPI Beginning Jan. 1, 1999 Plus a Portion of the Domestic Passenger Ticket Tax 7.5% of Frequent Flyer Award Value 6.25% of Shipment Cost 4.3 Per Gallon Aviation Gasoline 19.3 Per Gallon Jet Fuel 21.8 Per Gallon 2 5 6 2
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types of facilities including seaplane bases, heliports and facilities to accommodate tilt rotor aircraft. An airport includes an appurtenant area used or intended for airport buildings, facilities, as well as rights of way together with the buildings and facilities. When aircraft operators are exempt from paying the aviation taxes described in Table 1, their airport activity would not be included in the justification or design for an AIP project. (For instance, certain Federal agencies that operate Government-owned aircraft for fire fighting do not contribute to the Airport and Airway Trust Fund.) An exception to this general rule has been identified within 49 USC 47504(c)(6) for approved noise compatibility programs involving military aircraft. The statute authorizes use of AIP funds where military aircraft are the primary cause of noise provided FAA approved the compatibility program with that activity as justification.
$4,000
$3,300
$3,400
$3,000
$2,970
$ in Millions
$2,025
$2,161
$2,500 $1,900
$2,214
$2,280
$2,347
$2,410
$1,900
$1,950
$2,475
$1,700
$1,800
$1,800
$1,800
$1,700
$1,700
$2,000
$1,690
$1,450
$1,500
$1,017
$994
$987
$925
$1,017
$805
$1,000
$500
$0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
$450
$450
$800
$800
$885
$1,025
$1,269
$1,400
$1,425
Fiscal Years
Congressional Authorization Appropriations Act Limitation on Obligations
The law defines airports by categories of airport activities, including commercial service, primary, cargo service, reliever, and general aviation airports. Categories in Table 3 are defined as follows: Commercial Service Airports are publicly owned airports that have at least 2,500 passenger boardings each calendar year and receive scheduled passenger service. Passenger boardings refer to revenue passenger boardings on an aircraft in service in air commerce whether or not in scheduled service. The definition also includes passengers who continue on an aircraft in international flight that stops at an airport in any of the 50 States for a non-traffic purpose, such as refueling or aircraft maintenance rather than passenger activity. Passenger boardings at airports that receive scheduled passenger service are also referred to as Enplanements. A pilot program on airport privatization may apply to individual commercial service airports, in which case, some private rather than public ownership provisions are allowed. Questions on it should be directed to the Airport Compliance Branch, AAS-400.
Table 2 Yearly AIP Authorizations and Appropriation Limitations (In Millions)
$1,450
$1,460
$1,700
$1,851
$3,140
$3,500
$3,200
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$3,223
$3,295
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APPROPRIATIONS ACT LIMITATION ON OBLIGATIONS $ 450.00 $ 804.52 $ 800.03 $ 925.00 $ 885.24 $1,025.05 $1,268.70 $1,400.00 $1,425.00 $1,800.00 $1,900.00 $1,800.00 $1,690.00 $1,450.00 $1,450.00 $1,460.00 $1,700.00 $1,950.00 $1,850.60 $3,140.00 $3,223.00 $3,295.00
(1) Nonprimary Commercial Service Airports are Commercial Service Airports that have at least 2,500 and no more than 10,000 passenger boardings each year. (2) Primary Airports are Commercial Service Airports that have more than 10,000 passenger boardings each year. Hub categories for Primary Airports are defined as a percentage of total passenger boardings within the United States in the most current calendar year ending before the start of the current fiscal year. For example, calendar year 2000 data are used for fiscal year (FY) 2002 since the fiscal year began 9 months after the end of that calendar year. Table 3 depicts the formulae used for the definition of airport categories based on statutory provisions cited within the table, including Hub Type described in 49 USC 47102.
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b. Cargo Service Airports are airports that, in addition to any other air transportation services that may be available, are served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100 million pounds. Landed weight means the weight of aircraft transporting only cargo in intrastate, interstate, and foreign air transportation. An airport may be both a commercial service and a cargo service airport.
Table 3 Definition of Airport Categories HUB TYPE: PERCENTAGE OF ANNUAL PASSENGER BOARDINGS Large:
1% or more
AIRPORT CLASSIFICATIONS
COMMON NAME
Commercial Service:
Publicly owned airports that have at least 2,500 passenger boardings each calendar year and receive scheduled passenger service
Medium: Primary:
Have more than 10,000 passenger boardings each year At least 0.25%, but less than 1%
Small:
At least 0.05%, but less than 0.25%
47102(11)
Small Hub
Nonhub:
More than 10,000, but less than 0.05%*
47102(7) Nonprimary
Nonhub:
At least 2,500, and no more than 10,000*
Nonprimary (Except Commercial Service) General Aviation Other than Passenger Classification Cargo Service 47114(c)(2)
*Nonhub Airports Locations having less than 0.05 percent of the United States passengers, including any nonprimary commercial service airport, are statutorily defined as nonhub airports. For some purposes we separate primary locations within this hub type, although more than 100 nonhub airports are currently classified as a nonprimary commercial service airport.
c. Reliever Airports are airports designated by the FAA to relieve congestion at Commercial Service Airports and to provide improved general aviation access to the overall community. These may be publicly or privately-owned. d. The remaining airports, while not specifically defined in Title 49 USC, are commonly described as General Aviation Airports. This airport type is the largest single group of airports in the U.S. system. The category also includes privately owned, public use airports that enplane 2500 or more passengers annually and receive scheduled airline service. The airport privatization pilot program authorized under Title 49 U.S.C., Section 47134, may affect individual general aviation airports. Under this program, some private rather than public ownership provisions are allowed, and questions on it should be directed to AAS-400.
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Also, in any fiscal year in which the total amount made available under Title 49 U.S.C., Section 48103 is $3.2 billion or more the amount to be apportioned to a sponsor shall be increased by doubling the amount that would otherwise be apportioned under the formula, the minimum apportionment to a sponsor under (a) above will be increased to $1,000,000 rather than $650,000, and the maximum apportionment to a sponsor under (a) above shall be increased to $26,000,000 rather than the $22,000,000. b. Small Airport Fund. In 1990, legislation was enacted that allows public agencies controlling commercial service airports to charge each boarding passenger using the airport a $1, $2, or $3 passenger facility charge (PFC). Public agencies wishing to impose a PFC must apply to the FAA for such authority and meet certain requirements. The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR 21) made provision for the imposition of a $4.00 or $4.50 PFC as described within Order 5500.1. Title 49 U.S.C., Section 47114(f) requires that AIP funds apportioned to a large or medium hub airport be reduced if a PFC is imposed at that airport. For a PFC of $3.00 or less the apportionment for Page 8
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a fiscal year is reduced by 50 percent of the forecast PFC revenue in that fiscal year, but not by more than 50 percent of the apportionments calculated for that fiscal year. In the case of a fee of more than $3.00, the apportionment for a fiscal year is reduced by 75 percent of the projected revenues from the fee in the fiscal year but not by more than 75 percent of the amount that otherwise would be apportioned. This reduction takes place in the fiscal year following the year in which the collection of the fee imposed under Title 49 U.S.C., Section 40117 is begun. The apportionments that are withheld as a result of PFC collections are distributed, in accordance with Title 49 U.S.C., Section 47116(b) as follows: 12.5 percent to the AIP discretionary fund; and 87.5 percent to the small airport fund.
Of the 87.5 percent distributed to the small airport fund, one seventh (1/7) (12.5 percent of the total PFC-reduced apportionment funds) must be spent at smallhub primary airports, and the remaining divided as follows: (1) onethird (25 percent of the total PFC-reduced apportionment funds) is distributed to general aviation (including reliever) airports, and (2) the remaining twothirds (50 percent of the total PFC-reduced apportionment funds) is distributed to nonhub commercial service airports. c. Cargo Service Airports. Airports qualified as cargo service airports share the 3.5 percent of AIP apportionment made available to them in accordance with Title 49 U.S.C., Section 47114(c)(2). Cargo funds are apportioned to each cargo service airport in the same proportion as its proportion of landed weight of cargo aircraft to the total landed weight of cargo aircraft at all qualifying airports. No cargo service airport is entitled to more than 8 percent of the total amount apportioned to all-cargo service airports. Beginning in 1997, the Secretary has been authorized to make a portion of the cargo funds available to airports not qualifying for these funds if the Secretary finds the non-qualifying airports will be served primarily by aircraft providing air transportation of only cargo. Contact APP-520 for assistance on this provision. d. States/Insular Areas. Funds commonly described as State apportionments are made available within states under various conditions. (1) If AIP has funding available under $3.2 billion, a total of 18.5 percent of the annual amount made available for obligation is apportioned for use at nonprimary commercial service, general aviation, and reliever airports within the States and insular areas in accordance with Title 49 U.S.C., Section 47114(d). Of this 18.5 percent, 99.34 percent is apportioned for airports based on an area/population formula within the 50 States, the District of Columbia, and Puerto Rico, while the remaining 0.66 percent is apportioned for airports in the insular areas (Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands). (2) If AIP has funding available equal or more than $3.2 billion, 20 percent of the annual amount made available for obligation is apportioned for use at nonprimary commercial service, general aviation, and reliever airports within the States and insular areas. Of this, a direct apportionment will be made to nonprimary airports in accordance with Paragraph e. below. Of the funds remaining after deduction of the nonprimary apportionment, 99.38 percent is apportioned for airports based on an area/population formula within the 50 States, the District of Columbia, and Puerto Rico, while the remaining 0.62 percent Page 9
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is apportioned for airports in the insular areas (Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands). (3) Although the apportionment is designated for use in these political entities, the FAA has the responsibility for determining which airports should receive grants in jurisdictions not funded through the State Block Grant Program. Funds apportioned for use within the states and insular areas remain available for the fiscal year in which first authorized and the three fiscal years immediately following. (4) A special rule under 49 USC 47114(d)(4) provides that amounts apportioned as described within this subparagraph for airports of Alaska, Hawaii and Puerto Rico may be used at any primary or nonprimary airport in addition to other designated entitlements. This flexibility in using funds applies under subparagraph f below to the Alaskan supplemental apportionment as well. e. Nonprimary Airports. In the event that AIP is funded at $3.2 billion or more, a portion of the funds apportioned in Subparagraph d(2) is apportioned directly to sponsors of nonprimary airports. The amount of these individual nonprimary airport apportionments is (1) 20 percent of the 5-year cost of the need listed for a particular airport in the most recently published NPIAS; or (2) an overall cap of $150,000. f. Alaska Supplemental Funds. Funds are apportioned for certain Alaskan airports to ensure that Alaska receives at least as much as these airports were apportioned in FY 1980 under previous grant-inaid legislation in accordance with Title 49 U.S.C., Section 47114(e). g. Discretionary Fund. Remaining funds form the discretionary fund. These funds are of two types. One type is discretionary set-aside funds, which are more fully described in Paragraph h below. The other type consists of those funds remaining after the apportionments are made and the set-asides are accommodated. Of these remaining funds, 75 percent, known as capacity/safety/security/noise (C/S/S/N), is to be used for preserving and enhancing capacity, safety, security, and carrying out noise compatibility planning and programs at primary and reliever airports. The remaining 25 percent, known as remaining or pure discretionary funds, may be used for any eligible project at any airport. (1) Projects funded with any discretionary funds should be based on the national priority system in Paragraph 320. Ordinarily a project with a high numerical score will not be deferred in order to fund lower priority work. Regions should document project files if a higher priority project has been deferred to a later fiscal year in favor of other work. For instance, when new information becomes available projects in the current year Airport Capital Improvement Plan may be unexpectedly delayed for a variety of reasons. If this happens, regions should notify APP-520 of deferral and the reason. See 49 USC 47115(d)(2)(A). (2) The sponsor must be able to commence the work on projects using discretionary funds during the same fiscal year as the grant agreement or within 6 months, whichever is later. Regions should ensure project schedules are realistic. (When a project has been delayed, see Paragraph 1151 on suspension of the grant, if appropriate.) For purposes of this provision, regions should construe commence the work to mean (a) Initiation of the effort for projects with planning or design; (b) Initial title search or other preliminary work for land projects; (c) Physically underway for construction or noise compatibility implementation; and (d) Execution of the purchase contract for equipment projects. Page 10
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h. Set-Aside Funds. Portions of AIP funds are set-asides designed to achieve specified funding minimums. A minimum amount of funding is directed to the noise, MAP, and reliever set-asides. (1) Noise. An amount equal to 35 percent of the discretionary fund is reserved for noise compatibility planning and implementing noise compatibility programs under Title 49 U.S.C., Section 47501 et seq. (formerly the Aviation Safety and Noise Abatement Act of 1979). Such minimum can be met with apportioned or discretionary funds. Eligible projects for the noise set-aside funding include: (a) Noise compatibility planning under 49 USC 47505(a)(2); (b) Noise compatibility implementation programs under 49 USC 47504(c); (c) Noise mitigation projects approved in an environmental record of decision for an AIP airport development project even if the sponsor has not met Part 150 requirements; (d) Compatible land use planning and projects carried out by State and local governments around large and medium hub airports under 49 USC 47141; and (e) Clean Air Act projects as defined by 49 USC 47102(3)(F), 47102(3)(K), and 47102(3)(L) except for constructing or purchasing capital equipment that would benefit primarily a revenue-producing area of the airport used by a non-aeronautical business. (2) Military Airport Program (MAP). Four percent of the discretionary fund is used for the MAP. (3) Reliever. If the AIP is funded at $3.2 billion or above, 0.66 percent of the discretionary fund is available for a limited number of reliever airports with: (a) More than 75,000 annual operations; (b) A runway with a minimum usable landing distance of 5,000 feet; (c) A precision instrument landing procedure; (d) At least 100 based aircraft; and (e) At least 20,000 hours of annual delays in commercial passenger aircraft takeoffs and landings at the airport relieved.
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i. Minimum Discretionary Funds. The Act states that, beginning in FY 1997, not less than $148 million, plus an amount equal to payments from the discretionary funds for LOIs issued prior to January 1, 1996, must be available as discretionary funds (capacity/safety/security/noise and remaining) after all apportionments and set-asides are satisfied. If less than this amount remains, all apportionments (except for Alaska supplemental funds) and set-asides are to be reduced by the same percentage to ensure that this amount is available for discretionary grants.
Funding Categories
Apportioned Restricted
Discretionary
Passenger Entitlements 29.19%
Formula Distribution
$3.4 B Appropriation and Reductions* Resulting in $3,294,823,530
* Includes 0.65% Rescission, $63,206,470 for FAA Airports Operations and $19,870,000 for Small Community Program.
Cargo 3.00% Alaska Supplemental 0.65% State Apportionment, Nonprimary Entitlements 10.35%
Reliever 0.16%
Noise 8.40%
j. Additional Airports. The small airport and discretionary funds may be used to provide grants during FY 2004-07 for sponsors of airports located in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau. Using up to $2.5 million of discretionary funds in any fiscal year during FY 2004-07, the Secretary of Transportation may enter into a reimbursable agreement with the Secretary of Interior for airport development projects at Midway Island Airport.
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FUNDING CATEGORY APPORTIONMENTS Passenger Entitlements Cargo Entitlements Alaska Supplemental Apportionment State Apportionment for Nonprimary Entitlements State Apportionment Based on Area and Population Carryover SMALL AIRPORT FUND Small Hubs Nonhubs (Nonhub Primary and Nonprimary Commercial Service) Nonprimary (Except Commercial Service) DISCRETIONARY FUND Capacity/Safety/Security/Noise Pure Discretionary SET ASIDES Noise Military Airport Program Reliever AVAILABLE APPROPRIATION
*Based on FY 2003 law rather than obligations Reductions from $3.4 billion appropriation limited the AIP grants: FAA Operations ($63,206,470), Small Community Program ($19,870,000), and the amount of the Rescission ($22,100,000). Double entitlement with $26 million maximum and $1 million minimum entitlement. State apportionment 20% of AIP. Cargo 3% of AIP. Non-primary entitlement = 150K or 1/5 of need published in FY 98-02 NPIAS, whichever was less. Noise set-aside could include apportionments. Reliever set-aside two-thirds of 1% of discretionary.
PERCENTAGE OF TOTAL
$ $ $ $ $ $
$ $ $
$ $
374,323,209 124,774,403
11.36 3.79
$ $ $
$3,294,823,530
PFC airports returned 50% or 75% of entitlements. Double Alaska. Carryovers resulted from non-use by the airport sponsor during the fiscal year in which they were apportioned. They were protected for two or three subsequent years. Nonhub airports qualified for the three-year period. Unused apportionments in the current fiscal year were converted for use as discretionary in the current year. However, the protected status reduced discretionary levels in subsequent fiscal years.
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(2) For block grants, the Federal share of individual airport projects is not more than 90 percent as described in Paragraph 1092e. A temporary increase the same as Paragraph 26(a)(5) allows Federal shares to be up to 95 percent in State block grant individual airport projects. (3) The Federal share of costs associated with integrated airport system planning is 90 percent. A temporary increase the same as Paragraph 26(a)(5) allows Federal Shares to be 95 percent. (4) The pilot program on private ownership of airports includes a Federal share of 70 percent. (5) For all other airports (a) Temporarily between FY 2004 and FY 2007, the Federal share is 95 percent; and (b) Starting in FY 2008, the Federal share is 90 percent. b. The Federal share of the allowable project costs may be further adjusted as follows: (1) Projects under the innovative finance demonstration program may have flexible Federal shares. (2) Section 601b of P.L. 98-454 (United States Insular Areas of Appropriation Authorization) requires waiver of up to $200,000 of the sponsor's share of a grant issued after March 12, 1980, to American Samoa or the Northern Mariana Islands. For FY 2004-2007, a grant of up to $4 million at the 95 percent participation rate under this rule would require no contribution from the sponsor.
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PROGRAM FUNDING
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i. Obligations. The execution of a grant agreement with a sponsor constitutes an obligation of the U.S. Government to pay the amounts specified in the grant. Obligations of funds are processed through regional accounting offices in two steps: A "reservations of funds" is made before the grant is signed and an "obligation" is reported when the grant is signed. Total obligations in a region may never exceed the total of funds allotted to a region. j. Payments. Payments to a sponsor are made either through processing of requests submitted by a sponsor to the FAA or via a Letter of Credit arrangement. (See Chapter 13.) k. Recoveries. As adjustments are made based on actual payments, funds may be recovered (deobligated) from existing obligations and under certain circumstances may be re-obligated for new projects or for upward adjustments to existing projects. For block grants, funds are not normally recovered. They may be used within the block grant for other eligible projects. See Paragraph 1094h about block grant recoveries. For further information, contact APP-520. l. Carryover. Funds apportioned for large, medium and small hubs, or states and Alaskan airports, remain available for obligation during the fiscal year for which the amount was apportioned and the two fiscal years immediately after that year. Funds apportioned for any non-hub or non-primary airport remain available for obligation during the fiscal year for which the amount was apportioned and the three fiscal years immediately following that year. Apportioned funds that have been unused are protected and carryover for the airports through the three or four year periods. Cargo entitlement funds carryover based on the airports other categories as described above. See Table 4.
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airports shall not transfer entitlements in return for a consideration or future obligation that is ineligible under the AIP. A copy of such a separate agreement should be included within the project file. The grant agreement with the receiving sponsor for a project including these transferred funds should include a special condition prohibiting unallowable consideration or future obligation as specified above. (5) The transferred funds continue to be the entitlement funds of a transferee. Guidance on the use of such entitlement funds found in this Order is applicable.
Certain airport innovations and non-conventional technologies may require changes to the policy or procedures in this order. Increased use of new capital improvement concepts reflecting evolution of the technology and aviation system structure may affect airport design, development or operation. Impacts on airport safety and Federal requirements resulting from changes may need to be evaluated or tested before a change is made. An example of a shift in program emphasis that has occurred over many years is the project eligibility and procedures for approving certain projects traditionally funded under the Facilities and Equipment program. If a change requires waiver from procedures in this order, see paragraph 5 on the requirement for approval by APP-1. For changes involving airport planning, finance, or construction, see paragraphs 400 and 504. Regions are encouraged to consult with APP-520 on potential changes in the AIP processes at an early stage to allow maximum flexibility.
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202. CO-SPONSOR.
Any two or more public agencies desiring to participate in accomplishing a project may co-sponsor a project provided such public agencies jointly or severally meet the requirements of Paragraph 201a. above. a. The terms and conditions of the grant agreement will jointly and severally bind cosponsors unless their respective rights and obligations with respect to an approved AIP project are otherwise set forth in a written agreement. A true copy of such agreement must be incorporated in or made a part of the project application submitted to the FAA office in whose jurisdiction the airport is located. The agreement shall, as a minimum, set forth: (1) The responsibilities of each cosponsor to the other(s) with respect to the accomplishment of the proposed development, operation, and maintenance of the airport; (2) The obligations which each will assume to the United States; and (3) The names of the sponsor or sponsors who will accept receipt of and disburse grant payments. b. A public agency that desires only to contribute funds to a sponsor need not become a sponsor or an agent of the sponsor. However, any funds contributed become funds of the sponsor(s) for purposes of the project.
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c. Any other entity not meeting the requirements of Paragraph 201a may co-sponsor a development project only if an eligible sponsor co-signs the grant, and a written agreement must bind that sponsor to the terms and conditions of the grant.
203. AGENTS.
A public agency authorized by state or local law may act as an agent of the public agency that owns and operates the airport without participating financially in the project or becoming a sponsor. The terms and conditions of the agency and the agent's authority to act for the sponsor must be set forth in an agreement that is satisfactory to the Administrator, a true copy of which must be submitted for approval with the project application. Such agent may accept, on behalf of the sponsor, a grant only if that acceptance has been specifically authorized by resolution or ordinance of the sponsor's governing body and such authority is specifically spelled out in the agreement.
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b. Conflicting Applications. Where more than one agency applies for a grant for the same or similar planning project, and where identification of the appropriate agency empowered to do the planning is not clear, the FAA will designate the eligible applicant based on which one is most acceptable to do the planning. All parties should be requested to work through the FAA-designated grantees where they desire to conduct planning elements or activities.
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b. A privately owned airport sponsor, as defined in a. above, is eligible for funding for: (1) Airport development projects; (2) Airport master planning; (3) Noise compatibility planning; and (4) Noise program implementation projects.
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C h a p t e r 3 . P R O J E C T E L I G I B I L I T Y, A L L O WA B L E C O S T S , P R I O R I T Y , A N D D O N AT I O N S
Section 1. PROJECT ELIGIBILITY
300. GENERAL PROJECT ELIGIBILITY REQUIREMENTS
a. Chapters 3 through 7 provide guidance on the AIP eligibility of various items, including planning, airport development, land acquisition, and noise program implementation projects. No attempt has been made to identify every possible project as eligible or ineligible. Consequently, if the eligibility of an item is not specifically stated, it is incumbent upon the Airports field personnel to determine if the item meets the general guidelines of these chapters or to consult with the Airport Improvement Program Branch (APP-520) if the eligibility is uncertain. However, no project grant application may be approved unless the Secretary is satisfied that: (1) The project sponsorship requirements have been met; (2) The project is reasonably consistent with the plans of planning agencies for the development of the area in which the airport is located; (3) Sufficient funds are available for that portion of the project not paid for by the United States; (4) The project will be completed without undue delay; (5) The airport location is included in the current version of the NPIAS; and (6) The project involves more than $25,000 in AIP funds unless, in the judgment of the responsible Airports office, it would be in the best interest of the Government to award a grant of a lesser amount. b. The Act allows the separate funding of projects for the preparation of plans and specifications, including field investigations incidental thereto. These will be funded only if they result in the complete preparation of plans and specifications for airport development work that has every expectation of beginning within two years. Projects involving only field investigations, such as pavement evaluation, will not be funded on a stand alone basis except in planning projects. Separate projects that involve construction design for completed work will not normally be allowed. Contact APP-520 if airports propose reimbursement for engineering costs exceeding a maximum increased United States obligation described in Paragraph 1142. c. A current airport layout plan (ALP) that depicts the proposed project and which has FAA approval from the standpoint of safety, utility, and efficiency of the airport shall be required before a development project is approved. ALPs may be funded as part of master planning which is discussed in Paragraph 406g. ALPs may be funded retroactively upon grant approval as project formulation cost to add the work of the project onto the ALP and reflect actual conditions existing on the airport. If current design standards for the airport need to be reflected on the ALP, this work is eligible as project formulation cost. If an environmental assessment is needed for the project, the assessment is also eligible as project formulation cost. ALP approval requirements and conditions as well as FAA approval actions related to environmental impacts are discussed in Paragraph 428.
301. PROHIBITIONS
a. Legislative Determination. The Act specifically prohibits using AIP funds for decorative landscaping (See Paragraph 592), the provision or installation of sculpture or works of art, and for the construction, alteration, or repair of: Page 27
June 28, 2005 (1) Public parking facilities for passenger automobiles; (2) A hangar except at nonprimary airports; or
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(3) Any part of an airport building except components associated with eligible facilities and those buildings. The prohibition against public parking facilities does not apply to non-revenue facilities at nonhub primary airports or at nonprimary airports as described in Paragraph 526. In addition, the prohibitions contained in subparagraphs a(1) and a(2) above do not apply to airports designated by the Secretary under the Military Airport Program (MAP). See Paragraph 606. b. FAA Policy Determination. Headquarters will make a determination on the eligibility of unusual projects on a case-by-case basis and based on FAA's interpretation of the intent of Congress. Appendix 1 lists those projects or work items found ineligible for funding. To insure a consistent national program, field offices must follow this guidance.
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j. Environmental mitigation measures required as a condition of environmental approval (e.g., wetlands replacement); and k. Aircraft Rescue and Fire Fighting Training Facility.
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June 28, 2005 4. Traffic inventory and load intensity for each pavement section;
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5. Inspection scheduling based on minimum PCI levels and pavement deterioration rates; 6. Pavement condition projections based on rating network deterioration or improvement to determine the impact of deferring maintenance and rehabilitation; 7. Priority scheme and ranking of pavement sections by condition within various grouping options; 8. Maintenance and rehabilitation cost scheduling to develop average unit costs based on surface type, PCI ranges, and distress severity; 9. Budget planning to develop minimum target PCI levels for each pavement type in the network; and 10. Acquisition of available software dedicated to the study, e.g. Micro-PAVER, and the cost of computer time to store, process, and evaluate the data. Customizing of commercially available software is eligible only if reasonable in terms of the overall product needed. (b) Master Planning Projects. Pavement testing is eligible primarily as an engineering cost in development projects. Master planning pavement tests may be approved by the region when costs of such testing are warranted based on a visual inspection. (c) Development Projects. Activities at the project level of pavement evaluation are normally eligible under development projects as follows: 1. Friction surveying and friction measuring devices; 2. Nondestructive testing such as deflection testing, ground penetrating radar, and video logging; 3. Destructive testing such as soil borings, pavement cores, and soil strength tests; 4. Detailed evaluation of alternatives and development of engineering solutions; and 5. Engineering design work. (4) Ineligible Work. The following pavement management activities are ineligible: (a) Development and unnecessary customizing of software beyond that commercially available. This is research, not planning or design. The limit on customizing software is a judgment that depends upon use of the final product and overall value for the airport(s). For instance, the products of pavement management programs under system or master plan projects need to be individually compatible with other planning activities; (b) Computer hardware and common use software, e.g. word processing; (c) Pavement management programs at airports not in the National Plan of Integrated Airport Systems; and (d) Day-to-day operational costs of running a pavement management program beyond periodic updating of the pavement management program.
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c. Scope and Use of Pavement Evaluation under Planning Projects. Pavement condition surveys and pavement management programs under planning projects require special consideration: (1) Normally, pavement evaluation should be accomplished through master planning at major airports, with the State system plan covering other airports the State wishes to cover; (2) Pavement evaluation and updates for a particular airport should be accomplished in either the system plan or master planning. Duplication of pavement evaluation activities at a given time is ineligible; (3) Once a pavement evaluation program is undertaken, the sponsor must commit to keeping the data current through an update of the entire program or any other reasonable approach. For instance, a phased approach with one-third done each year is reasonable; and (4) Airport development identified through a pavement evaluation program should be reflected in the sponsor's capital improvement program. d. Cost Guidance for Pavement Evaluation. The cost of pavement condition surveys and pavement management programs has varied widely. The methodology of each proposal should be reviewed carefully to determine that costs and employee-hours are necessary and reasonable. Questions about the cost of pavement evaluation should be addressed to AAS-200.
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(4) Was incurred after the date of execution of a grant agreement; except that project cost incurred prior to execution of a grant agreement may be reimbursed in the following instances: (a) Study design necessary for a planning project; (b) Costs necessary to formulation of a development project, such as preparation of plans and specifications, preparation or revision of an ALP, environmental assessment, performance of a benefit-cost analysis and field surveys; (c) Land acquisition; (d) FAA-approved noise compatibility programs; (e) Work accomplished after the issuance of letters of intent (see Paragraph 1070); or (f) Costs incurred after September 1996 in the case of the funds apportioned to a sponsor as entitlements. b. Indirect Costs. Indirect costs are allowable only if the sponsor has an approved cost allocation plan and, when required, an executed indirect cost rate agreement in accordance with OMB Circular A-87. Advisory Circular 150/5100-10, Accounting Records Guide for Airport Aid Program Sponsors, contains the basic instructions needed by the sponsor to prepare and submit the cost allocation plans and indirect cost rate proposals. (2) A cognizant agency process is used whereby one Federal agency approves indirect cost allocation plans and rates on behalf of all other Federal agencies. This agency is generally the Federal agency that has the greatest dollar involvement with a given sponsor. Cognizant administrative responsibility within DOT is determined by the Office of Acquisition and Grant Management, M-60, in conjunction with the Office of Inspector General (OIG) and the operating administration involved. (3) The FAA's responsibilities are included in Paragraph 1322. Responsibility for approving cost allocation plans and negotiating and executing the indirect cost rate agreement is delegated to the regional Airports Division Manager. The regional Airports Division should use Order DOT 4600.11, Principles for Determining Costs Applicable to Grants and Contracts with State and Local Governments. Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Agreements with the Federal Government, ASMB C-10, developed by the United States Department of Health and Human Services, dated April 8, 1997, also contains guidance for cost allocation plans as well as indirect cost rate agreements. Copies of ASMB C-10 may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. (4) Local governments are required to submit cost allocation plans and indirect cost rate proposals for review and approval. Regions should use Paragraph 1322 for additional guidance regarding audit responsibilities. c. Project Administrative Costs. Necessary and reasonable direct administrative costs are allowable. No administrative costs can be allowed in connection with the accomplishment of a project unless supported by evidence that such costs were actually incurred by the sponsor and were necessary to the accomplishment of the project. When a sponsor intends to claim direct administrative costs, an Administrative Cost Plan may be required. This plan should be prepared to show the personnel, how the cost is specifically related to the project, and the type of documents or other evidence that will indicate the action is a direct involvement.
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(1) Administrative costs incurred in connection with a project regardless of whether or not incurred by regular and continuing employees of the sponsor may be allowed only if they are properly supported and substantiated. Arbitrary or prorated administrative costs that are not or cannot be supported and substantiated, as having been incurred for the project shall not be considered as allowable project costs. (2) Administrative services provided by contract are allowed if the contract meets the procurement standards of Title 49 CFR, Part 18. (3) Project formulation costs incurred by a sponsor in the preparation of the pre-application and application and the necessary documentation including surveys, title examination, appraisals, relocation plan, preparation of environmental assessments, public hearing expenses, other necessary legal work, and administrative expenses are allowable. (4) Sponsor attorney fees charged to a project must be reasonable. A breakdown of such fees must be submitted showing the portion of the total fee allotted to each class or type of service rendered and the appropriate amount of time devoted to each class or type of service. A determination is also needed that the legal expenses are attributable to State or local project issues rather than Federal requirements. d. Study Design and Planning Costs. See Chapter 4. e. Engineering, Construction Design and Project Formulation Costs. The costs of engineering services needed in connection with an airport development or noise program implementation project are allowable provided they are reasonable. If not, only such amount as is determined to be reasonable shall be considered an allowable cost. (1) Engineering costs can normally include the preparation of plans and specifications, initial field investigations, preliminary design, testing, cost estimating, preparation of bid documents, bid evaluation services, construction inspection, and technical consulting services to the sponsor. (2) All contracts for engineering and planning services and force account (See Paragraph 1230 for a definition of force account) proposals must be submitted for FAA approval before execution of a new contract or extension of an existing contract or before performance of force account work. If appropriate, this may be accomplished by sponsor certification procedures as outlined in Chapter 10, Section 3. FAA should select contractors that prepare an environmental impact statement as described in Advisory Circular 150/5100-14. (3) The costs of development of plans and specifications for items of eligible development included in a notice of allocation, but excluded from a grant offer, are allowable costs under the project. Federal participation in such costs, however, should be deferred until it is reasonably certain that the excluded development will be included in a grant agreement within two years. If such costs are included in the current grant agreement, procedures must be established to preclude duplication in a future grant for the development work itself. f. Construction/Equipment Costs. The costs of construction or equipment necessary to complete the project according to the plans and specifications are allowable to the extent that they are reasonable. (1) Force Account. Construction by sponsor's force account is considered construction done without the benefit of a contract or the services of a contractor. Sponsor's force account construction costs will not be allowed unless construction by that method has been approved in advance by the FAA. (See Chapter 12, Section 3.)
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(2) Temporary Construction. If the FAA makes a determination that uninterrupted operation of the airport is necessary and that such operation could not be continued without temporary construction, costs of temporary construction are allowable even though a portion of the work cannot be salvaged. The cost of temporary measures needed to protect air and water quality is also allowable. (3) Non-eligible Buildings or Facilities Removal and Relocation. The costs of removal and relocation of non-eligible buildings or facilities constituting airport hazards or which must be moved to carry out an AIP project are allowable up to the appraised value. See Paragraphs 582 and 593. g. Legal Fees and Litigation Costs. Legal fees and related litigation costs determined to be necessary to the accomplishment of an AIP project and reasonable in amount are allowable. Legal fees expended by a sponsor defending a specification are not allowable. The Regional Airports Division Manager is responsible for determining what services are necessary for the accomplishment of a project and the reasonableness of legal fees and litigation costs under $l00,000. Legal fees and related court costs (including settlement amounts) of $l00,000 or more must be submitted to APP-1 for review and approval. In forwarding such matter for review, the region should include its analysis of the situation, its recommendation, and proposed method for payment. See Paragraph 310c(4). h. Land and Relocation Assistance Costs. See Chapter 7. i. Noise Compatibility Project Costs. See Chapter 8. j. Audit Costs. See Chapter 13. k. Special Situations. Where accomplishment of an airport development project cannot be carried out unless certain actions are taken, e.g. a court order or mitigation measure in an environmental program specifically stated as a prerequisite or a legal agreement between the airport sponsor and another party, the cost of taking such action may be eligible. If no precedent for these costs being eligible exists, APP-500 should be consulted on a case-by-case basis. l. Program Administration Costs. Such costs are ineligible unless specifically allowed by a grant of exemption from the regulation. The program administration costs are those costs that are associated with administrative requirements of several individual AIP airport project grants. The program administrative costs described in this subparagraph are different than the project administrative costs within Paragraph 310c. For instance, the project administration costs are allowable under block grants, although the FAA does not normally allow a states overall program administrative cost (such as preparation of airport grant information for sponsors, reviewing the sponsors grant application, or accounting for program expenditures).
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d. Prorated share of otherwise eligible metropolitan area or statewide airport planning as an airport development project item. e. Any costs incurred in connection with raising funds by the sponsor, including interest and premium charges and administrative expenses involved in conducting bond elections and in selling bonds. Such costs are ineligible unless specifically allowed by statute, regulation, or a similar provision. f. The cost of preparation and adoption of an airport zoning ordinance except as part of an airport master plan or noise compatibility program. g. Interest charges, except payment of interest directed by a court in a condemnation proceeding, which then becomes part of the condemnation award and allowable. However, where the amount deposited in court as fair market value was adequate and could have been withdrawn by the property owner without prejudice to his/her rights in the condemnation proceeding, such interest payment is not allowable. Participation in a mortgage (including lease-purchase or an installment land contract inherently involving the payment of interest) is ineligible except as allowed in Chapter 7. However, acquisition of life estate interests as described in Order 5100.37, Paragraph 3-10, is allowable. Negotiated agreements for deferred possession of real property assuring the payment of just compensation (e.g. sale/leaseback) may also be acceptable (Order 5100.37, Paragraph 1-45). h. The cost of tuition, travel, and subsistence for a sponsor's planning personnel to attend airport planning courses, seminars, or conferences except conferences dealing exclusively with the approved work program. The grant program may not be directed toward training sponsor or contractor personnel. If the FAA is providing management or technical training, sponsor personnel may be allowed to attend on a space-available basis only after coordination with APP-1 or the Academy, although such costs are not allowable (in the same way as if the training had been undertaken by a non-FAA provider). However, if program administrative costs have been allowed under Paragraph 310k, training (as an element of such costs) may be eligible. See Chapter 5 for a discussion on the interactive training system. i. The cost of obtaining liability insurance covering an airport sponsor (whether paid for by the sponsor or the contractor) is not an eligible cost under the AIP. This applies both to cases in which the insurance requirement is listed as a separate cost item in an invitation for bid (IFB) and in which the sponsor requires such coverage as a factor in bidder qualification. In either case, the inclusion in an IFB of the requirement for liability insurance coverage of a sponsor by a contractor is a shift of operating expenses into a grant project and must be either removed from the IFB or be bid as a separate cost item and disallowed. The costs for coverage to protect the contractor against losses related to the project, such as property and casualty insurance and additional liability coverage, insofar as they are reasonable components of overhead, are eligible for reimbursement under the AIP. j. Costs incurred prior to a future grant agreement unless allowed by Paragraph 310a(4). The rule is that work cannot be accomplished prior to a grant agreement unless allowed in Paragraph 310a(4). Regions should also exercise care to ensure AIP funds are not approved for previously completed phased development or ineligible work. k. Costs of other Federal programs. While joint Federal planning and decision-making should be encouraged, combining Federal project funding is illegal without specific authority to do so. Each of the Federal programs is supported by appropriations, and the legislated funding is a limitation on that activity. Certain exceptions to this provision have been made and are described within Paragraphs 514 and 557. In determining certain FAA reimbursement and accounting arrangements, such as in the use of these exceptions, general administrative overhead costs that represent the cost to the agency of indirect expenses should be waived for AIP planning and development projects. Contact APP-520 for guidance on planning or development projects proposed for AIP funding that are normally carried out and funded by another Federal entity (or for procedures required to obtain waiver of administrative overhead). Such project costs may represent improper Federal budget augmentation. Page 36
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l. Activities associated with the lobbying for a project or influencing Federal employees as described in Paragraph 31. While the regulations on lobbying or influencing Federal employees do not restrict technical negotiations involving AIP projects, costs are unallowable except as provided within Paragraph 310. See Paragraphs 405n, 405o, 406n, 406o, and 922d.
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b. The value of the donated land that FAA will allow to be credited towards the sponsor's share of a project will be determined using a conservative approach. The maximum value allowable for donated land is the market value of the land at the time of conveyance to the sponsor. The market value is established by an independent qualified appraiser selected by the sponsor and approved by the FAA. The FAA should carefully review the appraisal before agreeing to the recommended value to ensure it appropriately reflects the value at the time of conveyance to the sponsor. A final determination of both the validity and value of the donation will normally be based on the following information, as applicable: (1) Validity of the Donation. (a) All documents pertaining to the transaction, including: 1. Whether the donation has been consummated or is prospective; 2. The identity of the donor; 3. Financial condition of the donor; 4. How the land was acquired by the donor; 5. The actual relationship between the donor and the sponsor, whether personal, contractual, or otherwise; and 6. Identification of any benefit or consideration flowing to the donor as a result of the transaction. (b) After the necessary information has been collected, the following must be considered in determining the validity of the donation: 1. If the donor is or was, in fact, acting as agent or otherwise for the sponsor in obtaining and conveying the land to the sponsor, the transaction is not a donation, and no part of the claimed value will be allowed; 2. Any provision for reversion of the donated land to the donor will make the transaction unallowable as a donation except where the reversion is only to be effective if and when the donated land is no longer used for airport purposes. In this event, the impact of the reversion provision should be reflected in the value established for the donation; 3. If there is or was any direct consideration flowing to the donor (excluding tax benefits or future appreciation to other land owned by the donor in the vicinity of the airport), the transaction is unallowable as a donation. If the donor conveys an airport or the site to a public agency without monetary consideration, but restricts the use of the land for airport purposes and reserves to himself the right to exclusive use of a certain portion for the conduct of a fixed base operation together with the right of use of the landing area and other public use facilities in the conduct of his business, the transaction will not be considered a donation; and 4. The reservation of only a right of use of the public use facilities of the airport, in common with others, is not objectionable because that is a right of the donor, as a member of the public. (c) Value of the Donation. 1. Copy of the deed conveying the land to the sponsor;
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2. Copy of any agreement between the donor and the sponsor relating to the conveyance or to any rights reserved by or granted to the donor in connection with the future use of the land or the airport; 3. Date of acquisition by donor and price paid by donor, or if property was acquired by the donor through inheritance or gift, the value affixed to such property for tax purposes at the time of acquisition; 4. Whether the land has been improved since acquisition by the donor, and if so, the nature and cost of the improvements and when and by whom made; and 5. Other available pertinent information relating to the value of the land at the time of conveyance to the sponsor and the circumstances surrounding the transaction.
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match is to be covered by the credit, must reflect a value that covers the additional local match required for the donated item. As an example, assume a project consists of construction of a runway extension and the sponsor proposes to use donated runway protection zone land as its local match. If the location receives 90 percent Federal participation and the value of the land is $50,000, the maximum value of the project (runway extension and land) would be $500,000 and the AIP grant would be $450,000. If the runway extension itself cost $500,000, then the minimum value of the donated land would have to be 10 percent of the combined value of the land plus runway extension or $55,555. This value can be determined by dividing 10 percent of the value of the runway extension project cost by 90 percent. On page 2 of FAA Form 5100-37, Conditions, the maximum obligation shall be restricted to the resultant Federal share of the project; and the breakout in Condition 1 shall reflect the airport development item and not the donated item to be credited as the local share. In general, except as noted above, the project application rather than the grant agreement will be the vehicle to clearly identify the pertinent facts associated with the credited item. In the case of donated land to be credited, the Exhibit A should clearly identify the portion of land credited and the AIP project to which it applies. This allows record keeping if unused land is approved in the future in accordance with Paragraph 351.
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locations. Elements included in master plan projects must be linked to whatever system planning perspective has been established, especially for visible issues such as airport surface access and military base reuse. Master plans should include preparation of ACIP and NPIAS data. Guidance for the preparation of airport master plans is contained in Advisory Circular 150/5070-6. (1) Planning Sponsorship. Airports are normally the sponsors of master planning projects. State or MPO sponsorship of detailed master planning as described in Paragraph 405z is an eligible system plan project subject to written agreements with airport sponsors. The agreements should establish concurrence on the scope of work, responsibilities of the participants, and uses of plans. However, the agreements do not need to be in the form specified in Paragraph 209. Master planning for an airport should be limited to work that is not available or current in existing plans. (2) Master Planning Updates. Periodic updates of master plan elements are typically needed on a five-year cycle for active airports, although timing may vary. For airports with relatively stable aeronautical activity, a ten-year cycle may be adequate. However, unusual aeronautical activity changes, and a change in design standards, may signal the need for a special planning study in less than five years. f. Airport Noise Compatibility Planning. Noise compatibility planning for an airport generally includes the preparation of noise exposure maps and a noise compatibility program in accordance with FAR Part 150. Airport noise compatibility planning may be accomplished as part of airport master plan projects or as a separate project, although it must consider the master plan. A noise compatibility program needs to be a stand-alone document if submitted to FAA for approval in accordance with Part 150.
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a. Study Design and Structure. The structure and work scope of a planning study should be tailored according to the individual requirements for the airport or system of airports being studied. For most simple projects, this involves identification of issues and selection of appropriate work elements relying heavily on Paragraphs 405 and 406. FAA should concur on the proposed cost of the study design prior to preparation of the study design. (1) Complex Projects. A more extensive study design is recommended in complex projects to specifically identify project goals, the level of effort for each activity, and participants based on the community decision-making structure. The study design and goal setting should normally be accomplished by a combined consultant-sponsor effort. (2) Selection of Work Elements and Activities. Paragraphs 405 and 406 describe the elements that should be considered for a study. The enumerated elements generally involve subelements or activities. However, the work scope need not include all the elements listed, or the elements may be very abbreviated. (For example, rather than develop new forecasts or capacity analyses in a master plan for a small airport, it may be desirable to obtain these from system planning and other current sources. Consequently, the work scope would not contain a detailed forecast or capacity element.) Each item in the work scope should contribute to defining and resolving specific problems. Items in the planning advisory circulars that are not relevant to a study should be omitted. Elements not listed in Paragraphs 405 and 406 are ineligible unless approved by APP-520. (3) Supplemental Projects. Study elements (such as an ACIP or noise compatibility plan) may be funded as supplemental projects if they are required to satisfy a specific airport need (See Paragraph 300b). Supplemental projects shall be designed to supplement a basic system or master plan (as defined in Paragraphs 405 and 406) that FAA has determined to be current in other respects. (4) Relation to Airport Development. The system/master planning should affect the official recommendations for establishing or revising the planned airport role and/or development and facilitate informed decision-making on such plans. The tasks required only for the sponsors administrative, management, or operational purposes are not eligible. b. Planning Phases and Products. The work scope for system and master planning projects must show that complete, cohesive, as well as usable plans or other products will be produced. The form of the products expected must be well-defined, e.g. technical analysis, drawings, reports, or approval by appropriate agencies. (1) Project Phasing. A planning project should normally be separated into several phases if it involves uncommitted airline service, site selection, intensive environmental assessment, system plans, or unusual resources. Each phase may be a separate grant. This will facilitate review of plans or elements, such as site selection studies and environmental assessments, to ensure progress is made before new funds are committed. Generally, no more than three planning projects under the same sponsorship for a location or area should be open at one time. When multiple planning projects are undertaken, each shall specifically recognize the relationship between products of previous and ongoing studies so they can be clearly separated in the grant agreements. (2) Approval at Key Points. Tentative approval of products by the sponsor and FAA may be required by the region at key decision points or milestones before proceeding with a study. Changes in the structure of the study may be required. FAA review should ensure that products in the study will be usable, timely, and complete. c. Force Account Work. Force account may be requested for some work to establish and maintain a local or State aviation planning capability. If force account is proposed, there should be a clear understanding with the sponsor prior to the grant that FAA will fund only work associated with planning for airport development. The scope of planning shall be consistent with guidelines described in Paragraph 310c on administrative costs. Page 44
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d. Coordination and Jurisdiction. The sponsor should coordinate the draft work scope with FAA and other interested parties to establish the availability of existing data or to delete activities better accomplished by other agencies. This will help ensure the products are mutually useful for each local, MPO, State, or Federal program and that airport development funding sources are identified. The work scope for planning by more than one agency for the same airport/area needs special coordination during study design. This may occur whenever State and metropolitan system plan projects coexist, and when sponsors propose transportation or land use planning outside the airport boundaries. Planning grants are frequently the first AIP projects approved for a sponsor. Therefore, the FAA review should determine that the proposed sponsor has appropriate jurisdiction to carry out or influence the planning recommendations and is capable of implementing the plan (See Paragraph 201). e. Study Area. The basic organization, work scope, and approach of system or master planning shall focus on a study area that will be useful in solving airport problems. (For instance, planning a new airport in a metropolitan area may involve geographic areas beyond the jurisdiction of any single governmental entity.) Cooperation in the form of interagency agreements with adjacent local jurisdictions and/or States should be required by the FAA whenever airport site requirements go beyond the sponsors jurisdiction. Where specific study areas are unknown, the sponsor should establish a policy for achieving coordination with other jurisdictions. f. Action Plan. The work scope should include an action-oriented plan and/or program that will lead to implementation where the FAA and sponsor agree such a plan would be beneficial in carrying out recommendations. The action plan should identify activities and responsibilities at a level of detail appropriate to the nature and timing of the recommendations. (For example, an action plan should always be included with pavement management studies.) g. NPIAS Airports. For master plan projects, an airport must be included in the National Plan of Integrated Airport Systems. However, alternative site evaluations for replacement or supplemental airports may be funded without a new airport being added to the NPIAS pending a determination that the new location is justified and/or feasible. For system plan projects, non-NPIAS airports may be included where the cost of a work activity is nominal, e.g. general inventories, forecasting, or facility requirements. System planning activities involving significant cost, such as pavement or obstruction surveys, are ineligible at airports not in the NPIAS. h. Standards and Priorities. Measures of airport standards, activity, condition, and performance, or indicators for goal achievement, should be evaluated to ensure safe and efficient operations, add capacity, and minimize environmental impact. The national priority system described in Section 3, Chapter 3, or the procedures and criteria in it, should be the basis for evaluating airport development projects. State standards and priorities, which have received endorsement by the FAA, may be included within a work scope. Standards or priority systems other than those approved by the FAA may also be identified within the work scope. Use of several sets of standards and priorities in a planning project may be necessary in such cases to evaluate the plans. i. Military Base Closures. Work scopes must include consideration of former military bases where that may be appropriate. Former military airfields that may not appear to have immediate aeronautical use should be considered under State or metropolitan system planning effort to determine alternative uses.
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FAA-approved noise compatibility programs, the cost of work performed on planning projects will not be allowed unless incurred after the date of the grant agreement. Contact APP-520 if a sponsor proposes the use of their entitlement funds for cost reimbursement of planning projects under Title 49, U.S.C., Section 47110(b)(2)(C).
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j. Schedules of plan implementation describing the staging of airport land acquisition and development based on aviation demand forecasts; k. Projection of funding required from public agencies as well as the financial community or other private sources to implement the plan and revenue generated from improvements. This includes a financial plan linking AIP, Passenger Facility Charge program, Facilities and Equipment program, contract airport traffic control tower program, or other such Federal, State, local, and private sector funding; l. Capital improvement programs (See Paragraphs 402 and 428f); m. Preparation of NPIAS documentation for airports meeting entry criteria (See Paragraph 428f); n. For areas with a hub airport that has 0.25 percent of enplanements (medium and large hubs), regular meetings of local, MPO, and State agencies, sponsors and other participants. The meetings may be required to discuss capacity problems, facilitate the progress of official planning or other actions, and make informed decisions. This is appropriate only when representatives of local, MPO, and State agencies agree to participate. Any task with the primary intent to influence people or lobby for a project is ineligible; o. Study coordination and reports. For small hub or smaller areas, a limited number of meetings will be allowed for a single advisory committee to exchange information or negotiate between elected decision makers, other officials, and/or representative technical advisors. Public hearings and community involvement sessions that facilitate informed decisions are eligible as is the printing of a reasonable number of reports and graphics. The number of copies of technical documents should be limited through wide distribution of summary reports. Videotape or similar audio/visual presentations are eligible only to the extent they are used to replace or supplement printed material that would have been prepared in conjunction with public information briefings, executive summaries, or similar briefing activities of the study (See Paragraph 412d(3)(c)). Any task with the primary intent to influence people or lobby for a project is ineligible; p. Continuous planning activities that relate to elements of ongoing or existing system plans (See Paragraph 401d); q. Action plans (See Paragraph 403f); r. Airport surface access programs and plans that indicate the proposed routing to central business districts or arteries. The work should be based on other airport access studies that take into account traffic demand, existing and potential access problems, surface transportation facilities, heliports, and remote terminal facilities. Airport coordination and the analysis of procedures for transfer of passengers or baggage to bus, van, taxicab, rental car, automobile parking as well as innovative access facilities are eligible. Proposals for surface origin-destination surveys, corridor studies, ground traffic management, and similar work not directly related to airport coordination or intermodal transfer facilities should be forwarded to APP-520 (See Paragraph 400e). s. Preparation of State standards for development at nonprimary airports. This is limited to State system plan projects; t. Site selection and feasibility studies of the general area (excluding the specific airport configuration) for new, replacement, supplemental, or joint-use airports. This is limited to cases where existing public airport sponsors agree to participate or an area-wide agency has been required or authorized by State or local law to do the planning (See Paragraph 428b); u. Acquisition, licensing, and use of commercially available computer software including simulation models and other applications dedicated to the study when warranted to accomplish an approved Page 47
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planning purpose. For instance, an information management system may be eligible if directly related to eligible airport planning elements. Customizing of commercially available software is eligible. Software development, including customizing, paid for, in part, with grant funds shall be in the public domain and shall be made available to any user without cost beyond handling costs. The purchase of computer equipment is not eligible for planning projects, nor is the cost of ongoing computer operations or software for general clerical, administrative, or airport management purposes; v. Economic studies to measure the impact of airport activity and benefit of interrelated developments in the network of airports. This is limited to methods such as those developed by the FAA. Contact APP-400 for assistance on economic study methods. Video presentations or printed materials on the economic impact of airports are not eligible unless it is necessary for the publics understanding needed during the decision process. Studies for the promotional or competitive marketing of an airport are not eligible. Vertiport studies for tilt-rotor aircraft are eligible pending development of the technology. However, vertiport applications other than a nominal part of another planning project should be forwarded to APP-520; w. Identification of appropriate airport sponsorship arrangements such as for a new airport, airports that have inappropriate ownership, or where interagency agreements are needed; x. Policy analysis for specific airport development proposals, such as that for State aviation taxes or land use. This must be coordinated with APP-520; y. Establishing performance indicators or priority systems for pavement management and capital improvement programs; and z. Participating in or conducting master plan projects at airports provided the airport sponsors agree in writing to the scope of work (See Paragraph 401e). This includes any of the elements and activities described in Paragraph 406 or the review of airport sponsor master plans to ensure system requirements have been met.
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to identify infrastructure required for reducing runway incursions. Airport surface movement guidance and control system plans are eligible; f. Analysis of a reasonable number of airport development alternatives including feasibility and sensitivity analysis, contingency plans, and evaluation of safety, security, efficiency, public protection, environmental impacts, safety area determinations, modification of standards, cost of the alternate airport designs, and energy considerations; g. Preparation and adoption by the sponsor of airport role assignment as well as layout plans. These should establish dimensioned layouts for existing and future runways, safety areas, taxiways, aprons, terminal building areas, roads, utilities, fences, property and relocation of persons, airport airspace, runway protection zones, air navigation facilities, and non-aeronautical use areas (See Paragraph 428d); h. Noise contours for existing conditions and reasonable forecast periods (See Paragraph 428e and 813); i. Land use plans or reuse studies for areas within the boundaries of the airport and for areas outside the boundaries that are environmentally impacted by airport operations. Participation in commercial or industrial park studies is normally limited to delineating and inventorying areas available on the airport for non-aeronautical use. However, urban land use studies of areas acquired for noise compatibility are eligible (See Paragraph 815c). Studies of compatible land use zoning or other similar controls are also eligible for the entire airport site, the impacted airport vicinity, and terminal airspace. Aerial photography for land use studies is eligible only if the information is not otherwise available in an adequate form; j. Schedules of plan implementation as described in Paragraph 405j; k. Estimates of development cost proposed in the master plan; l. Preparation of financial statements or business plans for the long-term development and operation of the airport. This includes financial plans for airport operational revenue, general obligation bonds, revenue bonds, taxation, government assistance (such as the AIP, PFC, F&E, or the contract airport traffic control tower programs), other donations, and realistic combinations thereof. The preparation of a disadvantaged business enterprise plan under Title 49 CFR, Part 26 is eligible; m. Capital improvement programs and preparation of NPIAS documentation for the airport (See Paragraphs 402 and 428f); n. Regular meetings as described in Paragraph 405n; o. Study coordination and reports as described in Paragraph 405o; p. Action plans (See Paragraph 403f); q. Former military airfield concept studies. AIP planning projects may be used to initiate cooperative planning on joint use airports, surplus Federal property, and restricted airspace. Proposals for the conversion of former military airfields, or dual use of such current airports, should be coordinated early during the discussion stages with APP-420. Orders 5150.2 and 5170.1 describe U.S. Government surplus property for public airport purposes or the transfer of other Federal lands. r. Site selection studies for new airport locations including the study of airspace, environmental factors, community growth, surface access, availability of utilities, land appraisals, and development considerations that affect site costs (See Paragraph 428b);
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s. Environmental assessment for consideration of the effects of proposed airport development in order to provide a basis for the preparation of environmental impact statements or findings of no significant impact (See Paragraphs 310d(2) and 428c). The assessment may identify environmental consequences of ultimate airport development, mitigation policies, categorically excluded projects, and permits required. Wildlife hazard assessments and wildlife management plans required under FAR Part 139 are eligible whenever airport development actions may result. Cultural resources surveys, required to meet archeological, historical, architectural and similar requirements are eligible. Air or water quality planning for sponsor compliance with the Clean Air Act of 1970, as amended, and Federal Water Pollution Control Act of 1972 (FWPCA), as amended, are also eligible. This includes preparation of the water quality permit applications required under the FWPCA, hydraulic modeling, facility design, and water quality studies, testing, or inspection related to pollution prevention plans. Air quality studies or plans must be coordinated with the MPO and APP-520. (See Paragraph 400e.); t. Building area plans for the overall terminal-apron complex and components within that complex such as terminal building, cargo building, gates, hangars, shops, service roads, service buildings, motels, aircraft rescue and fire fighting buildings, automobile parking, entrance roads, and intermodal connections. The plans are limited to conceptual analysis and drawings that include dimensioning of overall plans, building restriction lines, height limitations, shadow studies, and schematic drawings of profiles necessary to picture concepts and ensure that safety and operational factors are considered. The review of individual lease arrangements within the terminal or building areas from the standpoint of grant assurances and preparation of airline competition plans are eligible. Studies for specific facilities such as locating an airport traffic control tower are eligible. If the FAA is to perform the work, a reimbursable agreement with the airport may be desirable. (See Paragraphs 311k, 553 and 563.) Air traffic control services are ineligible; u. Airport surface access plans that indicate the proposed routing to central business districts and to existing or planned arteries. The plan should be based on other airport access studies that take into account traffic demand, existing and potential access problems, surface transportation facilities, heliports, and central business district terminal facilities. MPO coordination and analysis of procedures for transfer of airport passengers or baggage to pedestrian, bicycle, rail, bus, van, taxicab, rental car, as well as parking facilities are eligible. Proposed surface origin-destination surveys, corridor studies, ground traffic management, and similar work not directly related to coordination with the MPO or multimodal facilities should be forwarded to APP-520 (See Paragraph 400e). Orders 1110.86 and 5000.3 describe intermodal transportation planning and coordination with the Federal Highway Administration. Preparation of airport emergency response studies to provide analysis of airport facility requirements (roads, safety area grading, or other access issues) for aircraft rescue and fire fighting vehicles is eligible; v. Computer applications as described in Paragraph 405u; w. Pavement management programs to evaluate pavements and establish annual priorities (See Paragraph 306); x. Preliminary feasibility studies for the designation of instrument runways (See Order 7400.2 on procedures for handling airspace matters) and establishment of navigation aids. This includes evaluation of satellite navigation opportunities and preparation of preliminary instrument approach procedures directly related to airport development that is shown on the airport layout plan. Field surveys, e.g. determination of runway coordinates and elevation, are eligible if they have not been scheduled to be completed by the FAA. Contact APP-520 for a current schedule of FAA geodetic surveys. A flight check of a preliminary approach procedure to a non-Federal navigation aid is eligible under a reimbursable agreement with the Flight Procedures Office. Re-testing is not allowable in the event that the system fails the flight check or alternate procedures need to be considered; y. Airport noise compatibility planning involved in developing noise exposure maps and a noise compatibility program. These activities are described in FAR Part 150 (See Paragraph 428e). Planning Page 50
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for noise demonstration programs is not eligible as a master plan project. Contact APP-600 for assistance on noise policy, Part 150 planning, and Part 161 studies; z. Economic analysis to measure the impact of airport activity and benefit or present worth of airport investments. This is limited to methods such as those developed by the FAA. Contact APP-400 for assistance on economic study methods. The evaluation of risk associated with airport plans and economic decision analysis for alternatives is eligible. Benefit-cost analysis (BCA) is eligible when it is appropriate to conduct these studies. Guidance about how to perform a BCA is contained in a Federal Register notice dated December 15, 1999 on page 70107 (See Paragraph 428f). Operational studies or planning, such as an airport certification manual or airport emergency plan update, are ineligible unless required under FAR Part 139 and airport development actions may result. Use of a formal value engineering task team is ineligible except on major new airports or for unusually complex projects of greater than average costs (See Paragraph 1009). Sophisticated video presentations or printed material on economic impact of an airport, which are basically competitive marketing material for a sponsor, are not eligible unless needed for the decision process. Operations research is not eligible; and aa. Airport security programs under Title 49 CFR, Part 1542 for the protection of passengers, baggage, and aircraft within civil aviation. The eligible security planning includes accommodation of preboard passenger and baggage screening, fencing/access arrangements for airport areas, threat evaluation, blast analysis, updates of the plan, as well as the other requirements of the regulation. The coordination of requests with the Transportation Security Administration may be needed if questions arise on whether airports are covered by Title 49 CFR, Part 1542. For the airports not covered under Title 49 CFR, Part 1542, security planning is eligible if it would be incidental to other master planning. Prior to the public involvement in a request or study on security, regions should coordinate with the Transportation Security Administration to identify material that must be protected under Title 49 CFR, Part 1520, which governs release of such information.
June 28, 2005 f. Civil rights requirements (See Advisory Circular 150/5100-15); g. Scope of work, FAA expectations, and time schedules; h. Project costs and eligibility; i. Force account work; and j. Special grant conditions and compliance with grant assurances.
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(b) Schedule for Accomplishment. The time schedule proposed for each element should be included. (c) Study Coordination and Evaluation. Coordination of study drafts with the public, community organizations, airport sponsors, users, the financial community, local and State agencies, Federal program offices, and other interested parties is required. Names and affiliations of proposed advisory committee members should also be identified in the work program. For instance, the sponsor shall coordinate with the Air Transport Association (ATA) and/or Regional Airline Association (RAA) in airport system and master planning at airports that have ATA/RAA member carriers. Likewise, coordination with Aircraft Owners and Pilots Association may be desired at sites having general aviation activity where a regional representative is available and agrees to participate. Other special interest groups, such as National Air Transportation Association (at the airports with significant air taxi activity), may be appropriate to participate depending on the specific location. (d) Organizational Responsibilities. A list of organizations, consultants, and key personnel anticipated to work on the project with their respective responsibilities should be itemized. (4) Geographic Location. A brief delineation is to be provided of the area served by the airport. For a system plan project, the boundaries of the planning area should be identified. (5) Additional Information. If the sponsor proposes to accomplish the project with its own forces or those of another public or planning agency, this fact shall be so stated in the application. The qualifications of key personnel shall be included and costs for force account as well as related overhead should be identified. (6) Sponsors Representative. This item should identify the name, title, address, and telephone number of the person representing the sponsor in the planning study. e. Sponsor Assurances. The appropriate set of grant assurances shall be attached to the application (See http://www.faa.gov/arp/financial/aip/assurances.cfm?ARPnav=aip). The airport sponsor assurances are used for master planning projects. Use of planning agency sponsor assurances is limited to system planning projects.
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(2) Project Evaluation Report and Development Analysis, FAA Form 5100-109 and (3) Application for Federal Assistance, Standard Form 424, as well as FAA Form 5100-101 (See Appendices 3 and 5). d. Disapproval of Application. If the FAA determines that the application should be disapproved, it shall be returned to the sponsor along with an explanation of the disapproval. Contact APP-520 for assistance with disapproval of applications.
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audits, or special reviews), the sponsor shall be notified in writing and changes needed to achieve compliance should be specified.
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The preparation of this document may have been supported, in part, through the Airport Improvement Program financial assistance from the Federal Aviation Administration (Project Number ___) as provided under Title 49 U.S.C., Section 47104. The contents do not necessarily reflect the official views or policy of the FAA. Acceptance of this report by the FAA does not in any way constitute a commitment on the part of the United States to participate in any development depicted therein nor does it indicate that the proposed development is environmentally acceptable or would have justification in accordance with appropriate public laws.
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of paved areas or lateral separations in airfield layout. A critical design aircraft is that airplane using (or is highly likely to use) the airport on a regular basis. A regular basis is at least 500 annual itinerant operations. See critical aircraft approach speed, wingspan, and weight in Chapter 1, AC 150/5300-13. (b) In the absence of appropriate documentation, sponsors should be notified about the forecast differences and information required to receive FAA endorsement for a project. (2) Endorsement of Forecasts. Forecasts adopted by a sponsor should receive some form of FAA concurrence (or non-concurrence) before subsequent elements of the study are initiated to facilitate the follow-on planning work (See Paragraph 403b). The degree of FAA endorsement of project justification will determine NPIAS entry, changes in airport role, approving development on the ALP, and work included in the current year ACIP. The activity levels used for accepting the NPIAS roles apply to forecast endorsement, and Order 5090.3 describes procedures for field formulation of the NPIAS. If appropriate coordination of forecasts is not completed, the inaction may cause problems with later airport development projects. The lack of FAA acceptance of forecasts may delay any further planning or capital improvements depending on them. b. Site Selection. Planning projects that include site selection as an element in a full master plan study normally require a tentative approval of the site before proceeding with subsequent elements. (1) Site Approval Process. Site approval should be made by the sponsor and FAA after considering the airspace determination, field inspection, site utility, preliminary environmental findings, public testimony, and other pertinent factors (See Paragraph 403b). Completion of the tentative FAA site approval process is necessary before permitting the sponsor to proceed with subsequent master planning. It may also be appropriate to use multi-grant procedures, such as focusing on aeronautical aspects initially and completing detailed environmental assessment when alternatives have been narrowed. Once a tentative or final site approval is made, the sponsor should be notified in writing. If approval is conditional for environmental or other reasons, this fact should be clearly stated. (2) Prior Federal Involvement. Many airport sites are identified within the NPIAS and other FAA documents as new locations because the approval has not been made. However, site approval may be determined to be unnecessary for sites with substantial federally approved development or prior involvement. For instance, a former military airport would need a base conversion study rather than the sponsors site approval process. c. Environmental Assessment. An environmental assessment (EA) is normally prepared for proposed airport development when it appears likely that a project requiring the EA will occur within five years. When such a report is submitted as part of a planning project, it should be completed and processed in accordance with Orders 1050.1 and 5050.4 on policies as well as procedures for considering environmental impacts. FAA may elect to delay the processing of an EA. In such a case, the sponsor should be informed of reasons for the delay. Reevaluation of the EA is necessary in accordance with the time limitations prescribed in Order 1050.1. d. Airport Layout Plan. A current ALP that has sponsor and FAA approval from the standpoint of the safety, utility, and efficiency of the airport is required by Title 49 U.S.C., Section 47107(a)(16). ALPs are the key documents for coordinating between off-airport parties, private users, the financial community, airports, local or State agencies, and Federal program offices. The ALP is needed by many Federal offices including Flight Standards, Flight Procedures, Airway Facilities, NAS Implementation, Air Traffic, Runway Safety, Logistics, Civil Aviation Security, and the Transportation Security Administration (TSA). The Airports Division is responsible for inter-division coordination of airport layout planning. Adequate review and coordination of airport plans prior to FAA approval establishes the basis for use of the ALP. (1) ALP Preparation. The sponsors ALP should incorporate an airport airspace plan (See Advisory Circular 150/5300-13), runway protection zone plan, and a property inventory map (See Order Page 57
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5190.6 on airport compliance requirements). ALPs are normally current for a five-year period unless major changes at the airport have been made or are planned. ALPs may be determined to be current beyond that period without revisions if no changes have occurred or are planned and if the ALP meets current design standards. (2) Review and Coordination. FAA review and coordination of the ALP will cover Federal interests and must consider any required coordination that was not completed at the local or state level. FAA may request additional information from sponsors, preferably at one time within the review period, to add detail needed for ALP approval. Airport sponsors should be alerted to the delay or disapproval of agency action when requested information is not provided. (3) Timing of Approval. Due to the length of time involved for Federal ALP approval actions, several forms of letters or notices to the sponsor approving airport development on layout plans may be used (See Paragraph 403b). (a) Conceptual Approval. Conceptual approval may be made, if necessary, to avoid unreasonably delaying the sponsor in the absence of detailed planning. (b) First-Time Approval. First-time approval actions may be taken for those airports where an ALP has not been previously approved. First-time approval is normally the culmination of a major study process, including interagency review and discussion between the interested parties. (c) Informal Revisions. The informal revisions of a minor nature should be noted on the ALP by pen and ink based on supporting documentation referenced on the drawing rather than frequently re-approving as-built conditions. The supporting documentation should identify sponsor and FAA documents that approve the revision, and any safety implications of the change must be described. Regions may require revisions of drawings at any time to provide working tools that would not be approved. For instance, an ALP drawing with a small building that is not identified within the approved plan could be sent before or after the FAAs conduct of airspace studies and determination for it. Likewise, a similar sheet could be provided with minor new airport engineering or geodetic surveying data that needs to be noted on the approved ALP by pen and ink as well as reflected within the FAAs airport master record. (d) Formal Revisions. Formal revisions shall be approved periodically for major changes to the airport and the existing ALP. Several years may lapse between each formal revision since it normally involves the substantial degree of study, review, and discussion as first-time ALP approval. (4) Approval Conditions. Conditions of ALP approval will be explained in writing to the sponsor and clearly indicated on the plan. Approval of an ALP must be in accordance with environmental criteria in Order 5050.4 (the airport environmental handbook) and current regulations and design standards unless modified as prescribed in Order 5300.1 (approval level for modification of agency airport design and construction standards). The approval letter must include the disclaimer statement regarding Federal financial participation in Paragraph 425b. Statements should be added concerning sponsor action required on land use planning for the airport vicinity and the need for airport layout planning to be compatible with Federal facilities (See standard grant assurances). A statement should also identify proposed development that is not sufficiently justified. (5) Use of ALP. ALPs are the graphic representation of policies on current and future airport development as formally adopted by the sponsor and approved by FAA. Planning, budgeting, and implementation for FAA activities on airports will be based on the sponsors ALP. Before the Federal action on new development depicted on the ALP, appropriate conditions of ALP approval must be satisfied. FAA plans and programming must be changed to reflect each newly approved ALP as appropriate.
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e. Noise Planning. Guidance on noise control planning is contained in Order 1050.11. Noise exposure maps and noise compatibility programs that result from FAA-funded projects should be completed by the sponsor and provided to the FAA. This does not necessarily constitute a formal submission to FAA for determinations under FAR Part 150. Submission of noise exposure maps and noise compatibility programs for determinations under Part 150 are not required by the grant. However, if the sponsor decides upon completion of the noise planning to make a submission under Part 150, a letter so stating should be provided. f. NPIAS and ACIP Data. Airport data, such as development requirements and schedules, shall be verified by the FAA prior to inclusion in the NPIAS and ACIP. Sponsors, MPOs, and States should be provided an explanation in writing concerning data considered unacceptable. Benefit-cost analysis, when required, is to be prepared by airport sponsors, transmitted to regions for a completeness review, and sent to APP-520 where that office, in consultation with APO-200, will review the BCA analysis. Regions will verify consistency with the approved aviation forecasts, FAA guidance on BCA methodology, the master plan, the ALP, the critical aircraft justification, and life cycle cost considerations. Regions will ensure the costs, benefits, and schedules are reasonable. The region must coordinate with APP-520 if a project would have special circumstances in calculating the BCA that is inconsistent with current guidance. (See Paragraph 550b for navigation aid projects.)
430. AUDITS.
See Chapter 13, Section 3, for audits. 431. - 499. RESERVED.
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Paragraph 520. This nonprimary airport maintenance is the major exception allowing the use of AIP funding for operations and maintenance costs as defined in this paragraph. In addition, when life-cycle costs are considered in procurement as described in paragraphs 508 and 911, certain operation or maintenance costs may be funded.
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e. Off-Airport Projects. Off-airport construction and equipment projects are eligible only to the extent that they accomplish the exceptions described in Paragraph 303. Such projects need to be clearly justified as airfield related on the FAA approved airport layout plan.
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anticipated, a project should be considered a candidate for research that includes a follow-up report. Regions may contact APP-520 for assistance on eligibility of work primarily related to an approved RE&D project.
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b. State Standards. FAA approval of State standards may have been accomplished for certain projects at nonprimary airports, although such a standard cannot be approved with respect to safety of approaches. If a sponsor proposes to apply a States standards that have not been approved, the region may encourage the State to prepare standards under an AIP system plan project. However, use of the State standards is generally not permitted until they have FAA approval. Additionally, State highway specifications are permitted for airfield pavement construction using funds made available under Section 47114 of the Act at nonprimary airports with runways of 5,000 feet or shorter serving aircraft that do not exceed 60,000 pounds gross weight if the Secretary determines that (i) safety will not be negatively affected; and (ii) the life of the pavement will not be shorter than it would be if constructed using FAA standards. However, there is one limitation. An airport may not seek funds under this provision for runway rehabilitation or reconstruction of any such airfield pavement constructed using state highway specifications for a period of 10 years after construction is completed unless the FAA determines that the rehabilitation or reconstruction is required for safety reasons. c. Projects without Standards. Some eligible projects, such as power sweepers for debris control, have no corresponding FAA scope of work, requirements, procedures, policy, plans, standards, and/or specification. Contact APP-520 for assistance on project eligibility. Contact AAS-100//300 for evaluation of project design.
509. RESERVED.
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512. NEW AIRPORT, MAJOR RUNWAY PROJECTS, AND MILITARY AIRPORT CONVERSIONS.
Major new airport improvements involve the need for more elaborate coordination between FAA organizations, states, the airport, and other parties than do less significant projects at existing facilities. A coordination process should be well underway to establish the site selection agreement or airport layout plan and to determine project eligibility before approval of a project for site preparation work. The use of the Operational Evolution Plan (OEP) process for projects involving significant demand-capacity issues will harmonize the activities and foster agreement on a collective course of action within the aviation community. New improvements at smaller airports may be outside the OEP. For these projects, the region should consider undertaking similar coordination on a reduced scale. a. New Airports. An inter-division working committee (IWC) in accordance with Order 1110.117 or similar team, including possibly a separate office, should be established and used by regions for building major new airports to ensure initial site preparation eligibility issues are consistent with FAA policy. The IWC or other coordination process may continue throughout the development project phases. b. Runways and Extensions. Major runway and extension projects should involve a similar IWC or other coordination mechanism as used for a new airport prior to site preparation. Redesign of facilities, revision of air traffic procedures, and related changes require formal coordination to ensure the airport is modernized consistent with FAA policy. c. Military Airports. The conversion or joint use of former military airport areas is frequently as significant as building new airports. Therefore, a similar IWC should be established and used for former military airports as part of the project to ensure site preparation eligibility issues are consistent with FAA policy.
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b. Engineered Materials Arresting Systems. Engineered materials arresting systems (EMAS) described in Advisory Circular 150/5220-22 are not equivalent to a runway safety area, although the installation or repair of EMAS should be considered in the analysis of the improvements. (1) Primary Airports. The analysis should consider the role of the airport, characteristics of unpaved surface areas surrounding the runways, airport activity, future plans for instrument approach procedures, and alternative operational requirements. EMAS is eligible where nonstandard situations exist for primary airport runway safety areas and it may be part of a determination by the FAA. Contact AAS-100 for assistance with EMAS. (2) Nonprimary Airports. Where the standard safety area for a nonprimary airport is not practical, the project should be documented using the factors described above for primary airports. Regions should exercise additional care for airports with only smaller and lower speed aircraft pending more experience with EMAS at these locations. c. Taxiway Safety Areas. Safety areas for parallel, bypass, or connecting taxiways and turnarounds as well as holding bays are eligible. The evaluation of taxiway safety areas may need to consider airport planning and alternatives in a similar way as described above for the runway safety area.
Order 5100.38C
facilities will be a prorated share of the total cost, the method to be determined by the FAA Airports Office as in Paragraph 613. Aircraft fueling facilities at an apron surface or below are incidental to the pavement project and eligible. See Paragraphs 538, 541, 586, 591, and 594. a. Fuel Farms and Other Aeronautical Support Facilities. The installation of new fuel farms may be eligible at nonprimary airports using entitlements. Regions should ensure the sponsor has made adequate provisions for financing higher priority airfield projects that are currently required before this revenue-producing work. Contact APP-520 about proposals for the construction, alteration and repair of revenue-producing aeronautical support facilities other than any project clearly allowed in paragraph 526 or a new fuel farm at nonprimary airports. See 49 USC 47110(h). b. Military Airport Program. Separate rules apply to the utilities or the fueling facilities for certain joint use and former military airports. An airport currently participating in Military Airport Program (MAP) has been given additional eligibility not to be confused with that at other military or joint use airports. For MAP, eligible work includes construction, improvement, or repair of all existing airport utilities even if that would not otherwise be allowable. This includes upgrading electric utilities or such systems in hangars and terminal buildings to meet electrical codes. This also includes fuel farms for non-exclusive use by the flying public. Projects cannot exceed certain funding levels at each airport for fuel farms, utilities and various related projects as described in Paragraph 606. c. Ineligible Utilities. Installation or rehabilitation of utilities for areas not eligible are ineligible unless the work is specifically eligible under the Military Airport Program. Ineligible work includes installation or rehabilitation of fueling fixtures above the surface of an apron and fuel farms at primary airports.
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Paving for reducing runway incursions may need coordination with the FAA Runway Incursion Action Team. a. Airfield Paving. Eligible work items under airfield paving include construction, reconstruction, or rehabilitation of runways, taxiways, and apron areas. This may include aggregate-turf pavement or other than the FAA standard for specifying construction at airports, as with the FAA-approved State standards. Specific programming criteria on the individual work items are provided in the subsequent paragraphs. Under Title 49 U.S.C., Section 47105e, the sponsor must assure the airport has implemented procedures for a pavement maintenance management program for any project to replace or reconstruct pavement. A special condition for pavement quality control is contained in Appendix 7. The basic requirements for the pavement maintenance management program are defined in Advisory Circular 150/5380-6. b. Pavement Strengthening. The airport owner has a commitment to prevent overstressing of airfield pavements. If the owner is not prepared to strengthen the pavement, then its use must be limited to aircraft operations that will preclude such overstressing. The FAA does not consider such a limitation to be a noise restriction within the meaning of Title 49 U.S.C., Section 47524. Should pavement failure occur because the sponsor failed to take timely corrective action after being advised by the FAA of problems, any subsequent AIP project will be limited to the cost of such work as would have been required for strengthening had failure not occurred. Independently conducted pavement evaluations by the State as well as FAA, or those contained in airport master plan projects, may be used for advising sponsors and in making these determinations. See Paragraph 505 for justification of pavement design. c. Seal Coats. The application of asphalt seal coats or resealing of joints in concrete pavements is a capital cost eligible for Federal participation under certain conditions. The region must analyze the need for seal coats and be satisfied that the sponsor has complied with assurances on regular maintenance. The following guidance will apply: (1) The preparation of the pavement surface, including cleaning and filling of cracks, is eligible with a seal coat project. (2) Eligible types of seal coats include those using aggregate, sand, emulsified asphalt slurry, coal tar pitch emulsion, rubberized material, or some combination of the these methods. See the advisory circulars and engineering briefs, or contact AAS-100 for advice on other applications. d. Friction Surface Treatment. Friction surface treatments, such as grooving, aggregate seal coats or porous friction courses, to minimize hydroplaning and improve skid resistance are eligible capital costs. In accordance with Title 49 U.S.C., Section 47101(f)(2), surface treatment for primary and secondary runways at commercial service airports serving turbojet aircraft is high priority, and documentation for the project files should include an explanation when it is not accomplished. Portions of taxiway systems and apron areas are eligible for friction surface treatments where the increased skid resistance is needed to enhance safety. e. Shoulders and Blast Pads. The treatment of areas adjacent to eligible pavement is eligible in accordance with applicable airport design standards to support the weight of aircraft or other surface vehicles. Shoulders and blast pads are eligible to prevent soil erosion from thrust effects of turbojetpowered aircraft or to improve the existing conditions such that regular maintenance will be facilitated. f. Nonhub and Nonprimary Airport Pavement Maintenance. Nonhub and nonprimary airports have separate eligibility rules related to airfield pavement maintenance. (1) Under Title 49, U.S.C., Section 47102(3)(H), the nonhub and nonprimary airports are eligible for certain cost effective routine pavement maintenance projects. Notwithstanding grant assurances, sponsors must be unable to fund maintenance using their own resources, which include transfer of funds to the airport from other sponsor accounts. The sponsor or State must implement a pavement Page 69
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maintenance management program based on Advisory Circular 150/5380-6. Routine maintenance is defined as cleaning, filling, and/or sealing of longitudinal and transverse cracks, grading pavement edges, maintaining drainage systems, pavement patching, seal coats, and remarking paved areas. (2) Routine maintenance projects are ineligible for any airport category where the region determines a capital improvement project is required when pavement condition has deteriorated to such a point that a maintenance project would not be considered cost effective. See Paragraph 501. The costs of routine maintenance are, likewise, ineligible for what may be frequent operations to remove mud, dirt, sand, aggregate, debris, foreign objects, water, snow, ice, loose contaminants, and rubber deposits, or the mowing of turf areas.
521. RUNWAYS.
Runways are eligible for development consistent with FAA design and engineering standards. Typical runway development includes construction of new runways and lengthening, widening, strengthening or leveling of existing runways. In accordance with 49 USC 47116(d), under certain conditions priority consideration should be given to the use of certain small airport funds for runway extensions that support turbine powered aircraft and to multi-year projects for new capacity runways. AIP participation may be limited to a single runway at an airport based on the criteria below. a. Airspace Review of Landing Areas. Order 7400.2 on procedures for handling airspace matters contains the coordination and review that is required to designate an instrument runway as a change to the airport layout plan. The designation of an existing or proposed runway as an instrument runway makes it eligible to receive project grant funds under the AIP. b. Parallel and Crosswind Runways. Additional runways are eligible if the volume of airport operations would justify the development (in accordance with Advisory Circular 150/5060-5 on capacity and delay) and the proposed airfield layout will expedite traffic. If the primary runway is subject to weather conditions that exceed airport design standards in Advisory Circular 150/5300-13, the minimum required crosswind runways to achieve adequate wind coverage are eligible. c. Other Runways. AIP participation in runway development will be limited to a single instrument runway at an airport unless additional runways can be justified. A visual runway having airspace coordination and review will be eligible if in the judgment of the region an instrument runway is not required within the foreseeable future. An additional runway may be necessary to accommodate operational demands, minimize adverse wind conditions, or mitigate impacts identified in an approved environmental finding. Use criteria contained in the latest issue of AC 150/5300-13, Airport Design, to determine if the additional runway is justified. Any development (such as marking or lighting) related to or on an ineligible runway is also not eligible.
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525. TAXIWAYS.
Taxiways to expedite the flow of traffic between runways and aircraft parking areas available for public use are eligible. See Paragraph 526. Typical taxiway development includes the construction of new taxiways and lengthening, widening, strengthening or leveling of existing taxiways to meet FAA design/engineering standards for the critical aircraft. a. Parallel, Bypass, and Connecting Taxiways. A full-length parallel taxiway connected to each end of an eligible runway is eligible. A partial parallel taxiway may be considered at general aviation airports where cost to construct the full length is excessive and the benefits do not warrant it. b. Turnarounds and Holding Bays. Turnarounds and holding bays are eligible. Holding bay design standards can be found in AC 150/5300-13, Airport Design, Paragraph 409. c. Converting Runways to Taxiways. Development related to the conversion of an ineligible runway to a taxiway will be eligible only if it can be justified on the basis of the costs involved and continuing use is assured. Such projects must be identified on the airport layout plan and taxiway marking should be included with the project. (See Paragraph 507b on designating temporary runways.)
Order 5100.38C
made adequate provisions for financing airfield projects that are currently required before revenueproducing work. Alteration and repair of existing facilities depends upon potential environmental issues and whether such facilities have an adequate remaining useful life. If the proposal is for acquisition, alteration or repair of existing hangars, contact APP-520. (2) Certain other revenue-producing aeronautical support facilities at nonprimary airports may be allowable using entitlements. Contact APP-520 about such proposals other than the new fuel farms described in paragraph 515 and new hangars. (3) Non-revenue-producing automobile parking lots associated with a passenger terminal building or hangar at nonprimary airports may be allowable under 49 USC 47119(b)(5). The airport must certify any needed airport development project affecting safety, security or capacity will not be deferred due to the project. See paragraph 604 for additional eligibility criteria for nonprimary and other airports.
Order 5100.38C
signs and edge markers if traffic is such that they provide sufficient and safe guidance to aircraft operators. Part 139 certificate holders that have an approved airport certification manual are required to install the minimum level of equipment approved in that document. More guidance on this is covered in the advisory circulars listed in Table 5, which outlines current types of AIP funded airfield lighting and surface movement equipment, the principal standard requirements, as well as routing of the office of primary interest (OPI). This equipment has traditionally been considered an airport responsibility associated with construction of new pavements and lengthening, widening, strengthening or leveling existing pavement. Certain items of this equipment have been funded under the F&E program only to the extent that it would be used as a part of other FAA projects. The inter-relationship of these projects requires that they be coordinated to ensure consistency of the work with airfield operational requirements. Scheduled air carrier operations when visibility is less than 1,200 feet runway visual range (RVR) requires a Flight Standards Division approved surface movement guidance and control system (SMGCS) plan. The SMGCS plan contains operational requirements and the identification of physical airport systems required for those operations. The inclusion of work within a SMGCS plan assures eligibility provided the other layout planning and coordination are complete, such as with the FAA Runway Incursion Action Team. In those cases without a SMGCS plan (or where the plan does not include a particular system) eligibility should be determined in accordance with Paragraphs 531-535. Please see AC No. 120-57, Surface Movement Guidance and Control System, and Paragraph 536 for additional information.
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EQUIPMENT Runway Edge Lights Runway Touchdown Zone Lights Runway Centerline Lights Land And Hold Short Lighting Taxiway Centerline Lights Runway Guard Lights Stop Bars Clearance Bars Tilt-Rotor Facility Lighting Heliport Lighting Taxiway Edge Lights Apron Edge Lights Apron Area Lighting Construction Area Lighting Segmented Circles Airfield Signage Electrical Power Sources Electrical Power Support Airfield Marking Retro-Reflective Centerline Markers
PRINCIPAL STANDARD Title 49 U.S.C., 47101(f), AC 150/5340-24 Title 49 U.S.C., 47106(b)(3), AC 150/5340-4 Title 49 U.S.C., 47106(b)(3), AC 150/5340-4 AC 150/5340-29 AC 150/5340-28 AC 150/5340-28 AC 150/5340-28 AC 150/5340-28 AC 150/5390-3 AC 150/5390-2 Title 49 U.S.C., 47101f, AC 150/5340-24 AC 150/5340-24 AC 150/5300-14, AC 150/5360-13 AC 150/5370-2 AC 150/5340-5 Title 49 U.S.C., 47101f, AC 150/5340-18 AC 150/5340-17 Contact OPI AC 150/5340-1 AC 150/5345-39
OPI ROUTING AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-300 AAS-100 AAS-300 AAS-100 AAS-100 AAS-300 AAS-100
(2) The present marking is obliterated by construction, alteration, or similar work included in an approved AIP development project. e. Retro-Reflective Edge Markers. Retro-reflective markings in lieu of pavement edge lights or runway threshold lighting are eligible if traffic is such that it provides sufficient and safe guidance. Contact AAS-300 for assistance on marking and retro-reflective edge markers. f. Retro-reflective Centerline Markers. Retro-reflective runway and taxiway centerline markers are eligible if traffic is such that it provides sufficient and safe guidance. Contact AAS-100/300 for assistance with marking and retro-reflective centerline markers.
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Order 5100.38C
d. Land and Hold Short Lighting. Land and hold short lighting systems are eligible when designed in accordance with Advisory Circular 150/5340-29, Installation Details for Land and Hold Short Lighting Systems, for airports conducting land and hold short operations under Order 7110.118. e. Tilt-rotor Facilities. Lighting projects for tilt-rotor facilities should be forwarded to APP-520 unless the costs of the proposal are incidental relative to the total project cost. f. Heliports. Heliport lighting will be eligible provided the heliport/airport is eligible and the lighting system meets FAA standards.
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Order 5100.38C
eligible. See Paragraphs 540 and 541. Lighting equipment may be required in construction areas for night work. The sponsor or its contractor is responsible for coordinating with the airport traffic control tower. The sponsor is also responsible for ensuring notices to airmen and a regional non-objectionable airspace determination for use of construction lighting equipment.
June 28, 2005 (2) Land and hold short lighting related to Category II/III runways; (3) Taxiway edge lighting for taxiways serving Category II/III runways; (4) SMGCS equipment; and (5) Lighting of eligible areas within the terminal building and on the apron.
Order 5100.38C
e. Electrical Power Support. Items such as electrical panels and transformer vaults necessary to support operation of eligible lighting are eligible. This includes equipment necessary for the operation of radio activated lighting systems. Contact AAS-100 for assistance with electrical power support equipment. f. Deviation from Power Requirements. The revised standard power configurations in Order 6950.2 were effective with updating of the directive on 10/1/98. The new standard may differ from existing systems, and there is no requirement to change configurations that are already in operation. Standard configurations will be required for the proposed facilities covered in this paragraph unless waived by APP-500/AOS-100.
539. RESERVED.
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(2) ARFF vehicles are ineligible at locations with no airport operating certificate under Part 139 except as provided within Paragraph 546. b. Other Rescue or Fire Fighting Vehicles. Mobile command vehicles are only eligible if an element of an approved Part 139 emergency plan. Water rescue equipment, such as boats, air cushion vehicles, and helicopters, is eligible to meet the requirements of Part 139 in accordance with Advisory Circular 150/5210-13. Structural fire fighting vehicles are eligible for buildings at airports with a Part 139 airport operating certificate if the response time for off airport units is expected to exceed 10 minutes. Contact AAS-300 for assistance with this equipment. c. Drivers Enhanced Vision Systems. The drivers enhanced vision system (DEVS) in ARFF vehicles is eligible for airports with a Part 139 certificate that have operations below 1200 feet runway visual range. However, eligibility is limited at this time to two vehicles per qualifying airport for the full DEVS in accordance with Advisory Circular 150/5210-19, except as provided in Paragraph 541d. This will provide DEVS equipment within ARFF/command vehicles plus one additional vehicle. In addition, one more vehicle is eligible for each fire station beyond the first. For instance, this means an airport with two fire stations is eligible for three DEVS. The ineligible items include non-ARFF command and various operations vehicles, extended warranties, or other components (including displays- that can possibly be requested by the airport traffic control tower as described within material on DEVS). d. Forward-Looking Infrared Systems. The forward-looking infrared system (FLIRS) is a component of DEVS. A stand-alone FLIRS is eligible for AIP eligible ARFF vehicles in accordance with Advisory Circular 150/5210-19. e. Forcible Entry Tools. One set of forcible aircraft entry tools used on ARFF vehicles is eligible for each eligible vehicle. For assistance on this equipment, contact AAS-300. f. Protective Clothing. The purchase of airport fire/rescue personnel protective clothing and apparatus in accordance with Advisory Circular 150/5210-14 is an eligible item based on the following criteria: (1) One suit for each fire fighter employed full-time to fight aircraft fires; and (2) One suit for each position less than full-time subject to the limitation that the total number of suits does not exceed two for lightweight vehicles and five in large type vehicles. These limitations may be exceeded if field personnel believe it to be justified. The replacement of protective clothing is eligible as described within Paragraph 591c if required as a result of a Part 139 compliance inspection. g. Power Sweepers. Power sweepers for the control of debris on airports are eligible. Eligibility is limited to one vehicle unless the area requiring maintenance is greater than 500,000 square yards or the annual airport traffic exceeds 40,000 aircraft operations. See Paragraph 543 on similar equipment for snow removal. (Contact AAS-100 for assistance with standards.) h. Expanded Safety Equipment Eligibility. Other equipment may be eligible. For instance, ARFF vehicles may be equipped with specialized equipment. The basic criteria for eligibility of equipment will be that it is needed to meet a safety requirement at a particular airport. The sponsors justification or reasoning to acquire the equipment with documentation of the features and costs, as well as the field office recommendation, should be sent to APP-520. Decisions on funding of safety equipment contributing significantly to the safety of persons and property at an airport will be referred on a case-by-case basis to AAS-300.
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i. Ineligible Items. Aircraft removal equipment is ineligible. Expendable items, e.g. extinguishing agents (except for one test charge and one refill), are ineligible. Training of rescue and fire fighting personnel is not eligible except as provided in Paragraph 546.
Table 6 AIP-Funded Safety, Security, and Related Equipment
EQUIPMENT Aircraft Rescue and Fire Fighting (ARFF) Vehicle Water Rescue Equipment Structural Fire Fighting Vehicle Drivers Enhanced Vision System (DEVS) Forward Looking Infrared System (FLIRS) Protective Clothing Forcible Entry Tool Emergency Lighting Training System Security System Power Sweeper Snow and Ice Control Vehicle Runway Surface Condition Sensor Aircraft Ground Deicing System Aircraft Ground Anti-icing System Friction Measuring Device
PRINCIPAL STANDARD 14 CFR 139, AC 150/5220-4 14 CFR 139, AC 150/5210-13 Contact OPI AC 150/5210-19 AC 150/5210-19 AC 150/5210-14 Contact OPI Contact OPI AC 150/5210-18 Title 49 CFR, Part 1542, Contact OPI Contact OPI AC 150/5220-20, AC 150/5200-30 AC 150/5220-13 AC 150/5300-14 Contact OPI AC 150/5200-30, AC 150/5320-12
OPI ROUTING AAS-300 AAS-300 AAS-300 AAS-300 AAS-300 AAS-100 AAS-300 AAS-300 AAS-100 TSA AAS-100 AAS-100 AAS-100 AAS-100 AAS-100 AAS-100
Order 5100.38C
Therefore, the TSA, or its designee, must assist in identifying a project as containing only equipment/facilities to meet requirements in Title 49 CFR, Part 1542, and a written determination shall be included within the project file. Equipment specifically identified within the airport security program approved by the TSA is eligible. A determination may also be made that equipment is a supporting element of the airport security program. The approved airport security program, for example, may indicate in only simple terms that an airport perimeter will be secured at a property line. In such a case, specific projects for perimeter fence, associated closed circuit television at key points, and similar elements may be considered. (1) Approved Security Program. The projects justified as an access control requirement at a Title 49 CFR, Part 1542 airport (category X and I-IV) and contained in the approved security program, Federal security directive, or emergency amendments to rules, are eligible. While work may have been previously reviewed for the security program, these projects need concurrence from the TSA at the time of project formulation. Examples include door controls, lighting of fencing/gates, one-time replacement of key locks and cores, vehicle checkpoints, or explosive detection devices. An explosives transport vehicle or disposal equipment is eligible. With appropriate analysis, barriers to deflect bomb blasts and protective window film would also be eligible. (2) Projects Requiring Additional Justification. A project not required in an approved program by the regulation where an airport believes it will significantly enhance security needs additional, convincing justification, e.g. perimeter fence higher than 7 feet (plus three strands of barbed wire on top of the fence). Justification for fuel farm security might be if it is near where ignition or explosion may create imminent danger to passengers, baggage, or aircraft. Completion of project coordination will provide the justification in some cases, e.g. when design of equipment requires an initial determination about how the TSA expects to operate at the airport. (3) Projects Exceeding Requirements. The portion of a project exceeding Title 49 CFR, Part 1542 requirements may be unrelated to movement or protection of passengers, baggage, and aircraft. Projects that support a local law enforcement function, such as patrolling for purposes of protection against theft and vandalism or detection of traffic/parking violations, must not be confused with the need for air transportation security and are ineligible. A determination of the number of police vehicles required under Title 49 CFR, Part 1542 for patrols to secure the airport perimeter would identify eligible vehicles. A redundancy such as computerized access control combined with guard booths also requires scrutiny. Prorating this equipment based on discussions between an airport and TSA can define eligible work on national airport system security requirements (as well as Federal crimes) in contrast to ineligible projects for enforcing State, local, or airport laws/regulations. b. Expanded Security Equipment Eligibility. Other security equipment may be eligible. For instance, there have been changes over time in the explosive detection devices and universal access systems that are proposed by sponsors for airport use only. The basic criteria for eligibility of equipment will be that it is needed to meet a security requirement at a particular airport. The sponsors justification or reasoning to acquire the equipment with documentation of the features and costs, as well as the field office recommendation, may be sent to APP-520. Decisions on funding of security equipment contributing significantly to the security of individuals and property at an airport will be referred on a case-by-case basis to the Washington headquarters of TSA. c. Biological Explosives Detection Systems (BEDS). AIP funds may also be used on a limited basis to support the explosive detection canine teams for airport participants in Explosive Detection Canine Team Program of the TSA. Requests must be reviewed within regions of that agency. These projects will be forwarded to their Washington headquarters for approval. Procurement and training of BEDS is eligible to the extent it was not otherwise funded by the Federal Government and to the extent that applicable certification requirements and Federal standards are met. The storage of retrieved explosives and security systems or vehicles to support canine operations are also eligible. See Title 49 CFR, Part 1542.
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d. Fingerprinting Equipment. Electronic equipment to submit fingerprints for criminal history checks on airport employees that have unescorted access to the Security Identification Display Area is a Federal requirement. The type of equipment and quantity to permit processing of 3 employees per hour is eligible provided the airport has that turnover rate. Equipment certified by the Federal Bureau of Investigation is listed at http://www.fbi.gov/hq/cjisd/iafis/cert.htm. e. Airports Not Covered by Title 49 CFR, Part 1542. Early coordination of requests with TSA may be required where questions arise on whether the airfield is covered under Title 49 CFR, Part 1542. A security project at airports not covered by Title 49 CFR, Part 1542 is normally ineligible unless it would be incidental to other approved work. f. Ineligible Items. Except as provided in this paragraph, any security equipment beyond that required by Title 49 CFR, Part 1542 is ineligible. Airfield operations and maintenance costs, or expendable items, are ineligible. Training for security personnel is not eligible except as specified in Paragraph 546. g. Public Release of Security Planning. Before public involvement in a request or study on airport security, regions should coordinate with a TSA official to identify planning and material that must be protected under Title 49 CFR, Part 1520, which governs the release of such information.
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airports about purchasing the device for more than one airport since this equipment can effectively be used at several locations. State aviation agencies may be encouraged to sponsor such projects. b. Type of Device. A self-contained friction measuring device, a towed device, or such equipment along with an adequate tow vehicle are eligible. This may include space in a building to house and protect a grant-funded friction-measuring device if that is incidental to an approved AIP project. If a towed device is funded alone, the sponsor must provide assurance that it has or will have available a tow vehicle that meets the specifications of the towed device manufacturer. c. Special Condition. The special condition for friction measuring devices in Appendix 7 will be included in the grant agreement.
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b. ARFF Equipment Buildings. At airports without a Part 139 certificate, a minimal structure to house and protect the grant funded ARFF vehicle is eligible. At airports with a Part 139 certificate, the following criteria apply: (1) The number of bays eligible shall be limited to that necessary for housing ARFF equipment required by regulation or forecast to be needed within 5 years. Space for a structural fire truck is eligible when such a truck is assigned to the unit to provide backup support for ARFF trucks and protection of airport buildings. (2) The type of fire fighting requirements at the specific airport should determine eligible administrative space and personnel facilities. (3) Bays for fire trucks that are stationed on the airport, but primarily provide protection to buildings outside the airport boundaries, are ineligible. c. Snow and Ice Control Equipment Buildings. Funding snow and ice control buildings is limited to facilities necessary for eligible equipment in Paragraph 543 as well as storing abrasive or chemicals used in treatment of paved areas. At the time the building is programmed, the eligible equipment must be owned, on order, or budgeted by the airport. Regions should ensure that the snow and ice control abrasive or chemicals are to be used for airport pavement rather than aircraft in accordance with Paragraph 547d. d. Aircraft Ground Deicing and Anti-icing Facilities. At commercial service airports, construction or reconstruction of aircraft deicing, anti-icing, and ice inspection facilities on the ground, including pavement, drainage, fluid collection, and environmental mitigation to reduce storm water discharge contamination, is eligible when designed in accordance with Advisory Circular 150/5300-14. See Paragraphs 526, 586, and 631. Eligible facilities include infrared ground deicing systems that obtain approval of the Flight Standards District Office. (1) Structures on Obligated Paved Areas. An airport may construct a locally funded deicing or anti-icing structure on a Federal agreement taxi-lane or apron provided it is on an approved ALP, subject to a reasonable fee schedule, and not operated on an exclusive use or near-exclusive use basis. (2) Ineligible Deicing Facilities. Under Title 49 U.S.C., Section 47102(3)(G), the storage areas or facilities for aircraft deicing equipment and fluids are ineligible. For example, a garage for the deicing or vacuum trucks is ineligible. See Paragraph 547c on eligibility of storing abrasive or chemical material for snow and ice control of airport-paved areas, which has separate justification. e. Maintenance Facilities. Maintenance or service facilities for maintaining required safety and security equipment at airports with a Part 139 certificate may be funded up to a maximum of 1500 square feet in an existing, new, or free standing building. (1) The eligible area will be determined by adding 10 feet to the length and 10 feet to the width of the largest ARFF vehicle serving the airport, then multiplying these two dimensions for the bay size and adding a like amount for support space. (FAA Chief Counsel (AGC) opinion dated 3/22/83 on eligibility of security and safety equipment facilities.) (2) If the proposed building is part of a snow equipment storage facility, ARFF facility, or other eligible structure, the square footage of the service bay and support facility is in addition to that eligible under Paragraphs 547b and c. For instance, new snow removal equipment maintenance areas are an eligible addition to a proposed ARFF building. f. Fencing. Contiguous perimeter fences encompassing the airfield facilities and terminal building areas are eligible. Fences must be of an appropriate type for the situation. For instance, fencing to discourage the access of wildlife, such as deer, to the airfield or terminal building are eligible, although Page 85
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the specific location, extent, type, and height must be designed for the purpose intended based on requirements for restraining the targeted animals. (1) Safety and Security Fence. Fencing of operational and/or secure areas as required to meet the requirements of FAR Part 139 and Title 49 CFR, Part 1542 is eligible. Fence requirements will be determined by the FAA airport certification safety inspector. The TSA office in the region, or its designee, should also be requested to approve fencing as required by the approved airport security program. Fencing at other airports must be identified on the approved airport layout plan to be eligible. (2) Gates and Locking Devices. Under many circumstances, only the installation of standard gate and mechanical locking devices is eligible. Where secured gates require the use of an electric locking device or an automatic gate, these systems will be eligible, subject to FAA approval of the system to be used. If the facility is for security purposes, it requires TSA approval. (3) Non-Airfield Fencing. Fencing of the AIP approved projects for off-airport navigation aids, road relocation, utilities, and wastewater treatment plants is eligible. In addition, fencing of area-wide ARFF training facilities is eligible. Fencing other areas outside the airfield or terminal building area should be carefully reviewed by the region. For example, fences in any area separate from the airfield or terminal building for purposes related to an environmental mitigation project would normally be ineligible unless specified as eligible within the environmental finding. Likewise, fencing to benefit nonaeronautical use areas of the airport that is not primarily for protection of the airfield or terminal building is ineligible without exceptional justification established by the region. The fencing of property not owned or leased by the sponsor, such as Federal navigation aid projects, is ineligible. g. Security Facilities. Airfield facilities work should be subject to the same scrutiny and requirements as security equipment prior to approving projects as described in Paragraphs 542 and 547f. (1) Law Enforcement Facilities. The airfield facilities to provide for a law enforcement presence are eligible if required for air transportation security. (2) Command and Control Centers. Command and control centers are not specifically required under Title 49 CFR, Part 1542. Costs of eligible areas required for air transportation security in such centers must be prorated to separate out ineligible work on various other police facilities to support general law enforcement duties. (3) BEDS Facilities. Kennels and other canine facilities for biological explosives detection teams are eligible to the extent they were not otherwise funded by the Federal Government. (4) Security Coordination. The proposed airfield security facilities must be coordinated with TSA during project formulation to establish eligible and ineligible work. (5) Other Facilities. See Paragraph 602 about the security facilities within eligible passenger terminal building areas. The security facilities for air cargo building areas are subject to the same limitations as airfield and passenger terminal building projects. Requests on airfield security facilities involving military, general aviation, non-aeronautical, or other areas must be for eligible projects described in this paragraph unless the work is incidental to an approved project. Airfield security facilities located off the airport are ineligible. Security facilities in areas not owned or leased by the sponsor are ineligible.
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AIP navigation aids are federally funded projects. However, requirements on the establishment, operation, and FAA ownership of facilities are described in Order 6700.20, Non-Federal Navigational Aids and Air Traffic Control Facilities. AIP-funded projects are considered non-Federal facilities in that directive since they are not procured under the F&E program and may operate without FAA support. a. Frequency Reservation. The sponsor is responsible for obtaining from the regional office the reservation of available radio frequency spectrum for any electronic navigation aid requiring such and a non-objectionable airspace determination. b. FAA Takeover. Under Title 49 U.S.C., Section 44502(e), airports have the option of having the FAA take over maintenance for an instrument landing system (ILS) acquired with AIP funding and associated approach lighting as well as runway visual range (RVR) equipment that conforms to F&E performance specifications. Non-Federal proponents must contact the regional Airports/Airway Facilities office prior to procurement of these facilities to ensure a mutual agreement of the conditions under which a timely transfer of ownership would occur. Runway end identifier lights and visual glide-slope indicators are individually unqualified for takeover under Title 49 U.S.C., Section 44502(e). In addition, if a localizer (and other single or set of components) had been installed under the F&E program, completion of an ILS in an AIP project is unqualified for FAA takeover and the airport would be required to maintain the new equipment. The statute allows transfer of a grant funded ILS (and associated approach lighting and RVR equipment), not the individual components that are less than a complete system. See Paragraphs 553-557. (1) Life-cycle costs are a major feature of the F&E program funding decisions and a key component of the FAAs reformed acquisition management system. When an AIP equipment project involves takeover by the FAA, life-cycle costs need to be considered even though the FAA does not normally include airport maintenance in grants. For instance, remote maintenance monitoring (RMM) enhancements should be considered in the takeover projects. The region may require RMM based on a determination of the Airway Facilities division that it is needed to permit the FAA to accomplish the takeover of equipment without delay. RMM includes the original equipment procurement and installation capital costs. Equipment operational cost, e.g. staffing, training, and on-going supply support, is ineligible unless specifically approved in another provision of this order. See Paragraphs 508 and 911. (2) If requested by the airport, the FAA will assume ownership and maintenance responsibility for an ILS procured under the AIP, provided it meets the requirements of this paragraph. Airport sponsors do not have the same statutory option with an ILS procured solely using Passenger Facility Charge program funds (for the FAA to take over the project operation and maintenance), although the Airway Facilities division may agree independently to that arrangement based on policy currently in effect. (3) An alternative to FAA assuming ownership in the case of some AIP projects may be a reimbursable maintenance agreement for the equipment. In this arrangement, the airport may agree to reimburse the FAA for costs of maintaining the equipment. Such a reimbursable maintenance agreement is not eligible. (See Paragraph 553.) (4) Written consent of the airport to waive the ILS (and associated approach lighting as well as RVR equipment) takeover is needed from airports determining not to exercise this option for such facilities. The written consent should document that the airport understands its maintenance obligations. In these cases, the airport must ensure maintenance of the equipment with alternative funding. (5) Pending eligibility of the systems, the FAA will consider the future takeover and maintenance of a local area augmentation system (LAAS) and associated equipment as an incentive for airports that plan to implement augmented global positioning system (GPS) projects rather than an ILS. (6) Each project for an ILS and/or associated equipment that includes FAA takeover will be coordinated with APP-520 before approval. Information needed includes the airport name, associated Page 88
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city, description of the designated instrument runway, equipment specifications, estimated cost, benefitcost ratio, and related justification. Regions should also contact APP-520 before allowing the transfer of other than ILS and related facilities.
Order 5100.38C
systems), as well as overall airport capital improvement costs regardless of the funding source. Only airport rotating beacons, runway end identification light systems, and visual glide-slope indicator systems do not require a designated instrument runway. b. Non-Precision Instrument Approaches. For the commercial service airports, a high priority shall be given to programming at least one non-precision instrument approach for each secondary runway to the extent justified. (See Paragraph 505.) Use of the term non-precision with only horizontal guidance is no longer retained in some directives for approval of instrument procedures. However, the aviation community continues to use those concepts, which are characterized by higher weather minima. c. Precision Approach System. For commercial service airports, a high priority shall be given to programming at least one precision approach system, vertical visual guidance system, and full approach lighting system for each primary runway to the extent justified. (See Paragraph 505.) Contact APP-520 if, after the benefit-cost study and alternatives analysis, the airport capital improvement costs exceed benefits at any such location. d. Runway Visual Range. See Paragraphs 570 and 574. e. GPS Procedures. As a part of airport planning pending implementation of the systems, the FAA may facilitate early implementation of GPS procedures using the wide area augmentation system (WAAS) where an ILS cannot be approved. Airports identified in Appendix 24 will be the initial candidates for approach procedures and the related AIP projects based on WAAS.
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EQUIPMENT Airport Rotating Beacon Precision Approach Path Indicator (PAPI) Visual Glide-Slope Indicator Runway End Identifier Lighting System (REILS) Omni-Directional Approach Lighting System (ODALS) Medium-Intensity Approach Lighting System (MALS) Medium-Intensity Approach Lighting System with Runway Alignment Indicator Lights (MALSR) Approach Lighting System with Sequenced Flashing Lights (ALSF)
F&E No
PRINCIPAL STANDARD AC 150/5340-21 Title 49 U.S.C., 47101f, AC 150/5345-28, AC 150/5345-52 AC 150/5345-52 Title 49 U.S.C., 47101f, AC 150/5340-14 Title 49 U.S.C., 47101f, AC 150/5340-14 Title 49 U.S.C., 47101f, AC 150/5340-14 Title 49 U.S.C., 47101f, Contact OPI Title 49 U.S.C., 47101f, Contact OPI
BCA No
RMM No
TAKEOVER No
Yes
AAS-100
Yes
No
No
No
AAS-100
Yes
No
No
Yes
AAS-100
Yes
No
No
Yes
AAS-100
Yes
No
No
Yes
AAS-100, AND-740
Yes
No
No
Yes
AAS-100, AND-740
Yes
Yes
Yes (if associated with an ILS) Yes (if associated with an ILS)
Yes
AND-740
Yes
Yes
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b. Medium-Intensity Approach Light System and Runway Alignment Indicator Lights (MALSR). MALSR is eligible based on all of the same requirements as described in Paragraph 556a. If required to reduce minimums, MALSR is also eligible on runways that have or are planned within five years for an instrument approach procedure. c. Omni-Directional Approach Lighting System (ODALS). If required to reduce minimums, ODALS designed in accordance with Advisory Circular 150/5340-14 about economy approach lighting aids is eligible on runways that have or are planned for an instrument approach procedure (IAP). MALS without the runway alignment indicator lights is eligible based on the same requirements as ODALS. The airport cannot transfer ownership of these systems to the FAA. d. Runway End Identification Light System (REILS). The stand-alone runway end identification light system designed in accordance with Advisory Circular 150/5340-14 is eligible for visual approaches (whether with or without an IAP) on runways not equipped with an approach light system. For commercial service airports, REILS on each runway without an approach light system shall be given a high priority for programming. REILS are not ILS associated approach lighting within the meaning of statutory authority permitting the takeover, and the airport cannot transfer ownership of these systems to the FAA. e. Visual Glide-Slope Indicator System. A precision approach path indicator is eligible to provide vertical guidance for visual approaches (whether with or without an IAP) and related operational requirements in accordance with Advisory Circulars 150/5345-28 and 150/5345-52. Visual glide-slope indicator systems are not ILS associated approach lighting within the meaning of statutory authority permitting takeover, and the airport cannot transfer the ownership of these systems to the FAA. The precision approach path indicator is the only visual glide-slope system eligible for funding at airports with a Part 139 certificate.
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requirements for FAA takeover will be coordinated with APP-520 before approval to ensure that benefits of projects exceed aviation system costs. (1) The FAA will initially screen proposed ILS candidate projects using Order 7031.2. Secondary screening of proposals will calculate a specific benefit-cost ratio in accordance with an FAA report entitled Establishment and Discontinuance Criteria for Precision Landing Systems (Phase II), FAA-APO-83-10. However, a shortened investment life cycle is being used based on WAAS and LAAS availability at particular airports. Category I project planning will utilize as the end of the life cycle the date WAAS service is scheduled to be available at the airport plus seven years. For runways planned to use LAAS for Category I approaches only and all Category II/III projects, the end of the life cycle will be the date LAAS service is scheduled to be available at the airport plus seven years.
Table 8 Limitations on AIP-Funded Terminal Navigation Aid Equipment PRINCIPAL STANDARD Title 49 U.S.C., 47101f, 14 CFR 171, Contact OPI Title 49 U.S.C., 47101f, 14 CFR 171, Contact OPI Title 49 U.S.C., 47101f, 14 CFR 171, Contact OPI 14 CFR 171, Contact OPI 14 CFR 171, Contact OPI 14 CFR 171, Contact OPI OPI ROUTING
EQUIPMENT Partial Instrument Landing System (Localizer, Glide Slope, or Other Component) Instrument Landing System (ILS)
F&E
BCA
RMM
Yes
AND-740
Yes
Yes
Yes
AND-740
Yes
Yes
Yes
Local Area Augmentation System (LAAS) Non-Directional Beacon (NDB) Distance Measuring Equipment (DME) Very-High-Frequency OmniDirectional Range (VOR)
Yes
AND-710, ASD-410
Yes
Yes
No Yes Yes
No No No
(2) The benefit-cost of the ILS proposals may be evaluated separately from the AIP runway work. Approach lighting and runway visual range may be separately evaluated from the ILS because that would also be used for GPS/WAAS/LAAS-augmented approaches. (3) The establishment of a full ILS on existing runways would be a low priority for an AIP project since current FAA policy is to accomplish this under the F&E program if the BCA is acceptable and other requirements are met. The localizer is an ILS component commonly planned as a stand-alone project for existing runways. However, for purposes of this directive, a partial ILS is the individual localizer, glide slope, or other grant supported components of the instrument landing system. In light of transition to SATNAV, a partial ILS project is ineligible unless it completes the instrument landing system. Furthermore, an airport cannot transfer ownership of a partial ILS to the FAA unless that will complete the instrument landing system with each component of it funded under the AIP.
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For extension of a runway with an existing FAA-owned ILS (to accommodate an approved AIP project or otherwise), an AIP project may include relocation costs. See Paragraph 593. (4) The costs of any upgrade or replacement of the FAA-owned ILS equipment that is obsolete are not eligible. However, where the upgrade and/or replacement will result in an essentially new ILS that would otherwise be justified by new air traffic (e.g. to fully realize the benefits of related AIP runway work), the region may determine it should be allowed. The costs of any upgrade or replacement of the airport-owned ILS that is obsolete will be subject to the same requirements as new equipment within this paragraph. (5) Airports identified in Appendix 24 with early benefit from WAAS should be requested by the region to study the feasibility of transitioning to SATNAV approach procedures rather than installing an ILS. c. Other Terminal Navigation Aid. The Office of Airports Planning and Programming has no substantial experience with AIP projects for the other types of traditionally F&E navigation aids, such as the distance measuring equipment (DME), the very-high-frequency omni-directional radio range facilities (VOR), non-directional beacons (NDB), or microwave landing systems (MLS). This equipment normally requires justification in terms of an instrument approach procedure and lower minimums that would be based on it. Contact APP-520 for requests on a DME, VOR, NDB, MLS, or other such equipment proposed under the AIP.
559. RESERVED.
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depends upon the underlying equipment being eligible and does not extend to a wide variety of other radios or telephones in use at the airport. Requirements of communications equipment projects include those of the ARFF or security vehicles and AWOS equipment. See Paragraphs 541, 542, and 572. a. AWOS Telephone Systems. The AWOS may be provided with an answering device using separate telephone systems, which allows pilots to call the system and receive a weather report. This device and a modem is eligible and recommended for AIP funded AWOS. The ongoing cost for leasing the telephone lines to service the modem is not eligible. However, the regional Airway Facilities divisions may reimburse certain costs and provide information about the current status of these essential weather data link programs. b. Data Link. Sponsors should be encouraged to connect with the FAAs AWOS data acquisition system, which is evolving with the Aviation Surface Weather Observation Network. The network, located at each FAA air route traffic control center as well as the Air Traffic Control System Command Center, provides the data to pilots, FAA controllers, airline traffic managers, and other NAS weather data users. Acceptance of weather reports into the network by AAT-1 is required. c. Other Transmitters. FAA policy is to transmit AWOS output over the Unicom or voice channel of existing navigation aids, such as a VOR or NDB. If a separate very-high-frequency transmitter is needed, it is eligible. See Paragraph 552a on the airports responsibility for frequency reservation. d. Responsibility for Maintenance. The airport has responsibility for maintenance of this communications equipment because it cannot be taken over by the FAA under Order 6700.20. See Paragraph 572e. e. Remote Transmitter-Receiver (RTR). RTR projects are AIP ineligible because that is specialized FAA equipment serving airport traffic control towers and similar Federal facilities. Limitations on relocating RTR equipment is described in paragraph 593.
562. RADAR.
Eligibility for radar equipment under the AIP is limited to relocation required by another approved AIP project. Terminal Doppler weather radar, airport surface detection equipment, precision runway monitors, and airport surveillance radar are otherwise AIP ineligible. See Paragraph 593.
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standard must be approved by the regional Air Traffic division and/or ATP-140. Standards for locating an ATCT are in Advisory Circular 150/5300-13. (See Paragraph 406t.) (1) For projects that were completed after October 1, 1996, retroactive funding of the ATCT and equipment is eligible provided the airport demonstrates statutory requirements were met. For instance, the project must have been accomplished using Disadvantaged Business Enterprise, minimum wage, Veterans preference, environmental impact assessment, and other requirements under 49 CFR 18. (2) If an airport proposes State apportionments for these projects, those funds may be used provided the region consults with the State aviation official and obtains the States support for the project as part of its airport capital improvement plan. State apportionment funds may only be used on projects that are to be undertaken in the future rather than for retroactive funding. The project file should include the States written advisory regarding its support. (3) For the airports that are not in the FAA Contract Tower program, the application procedures for projects include the sponsor requesting the Air Traffic division to add the location to that program before following procedures in subparagraph c(4) below. Contact regional Air Traffic divisions on how airports qualify for the FAA Contract Tower program. (4) The airports that are currently qualified for the FAA Contract Tower program must continue meeting statutory requirements administered by ATP-140 for eligibility under the AIP. The project file should include copies of the following documentation indicating general requirements have been met and talking points should cite the dates of it: (a) ATP-140 should provide a letter or comparable documentation stating that the airport was selected to be a participant in the FAA Contract Tower program or that the construction of the ATCT would qualify the sponsor to be added to the program. (b) Prior to issuing a grant, ATP-140 should provide evidence if not provided by processing under subparagraph c(4)(a) above that it will seek appropriations for and maintain the airport in the FAA Contract Tower program in the same manner and priority as other airports already in the program. (c) The sponsor must certify in the FAA operating agreement and the cost share agreement, if applicable, that it will pay its share of the cost to equip, maintain and operate the ATCT. The sponsor must also arrange to provide the State/local share of the AIP project. d. Other ATCT Facility Costs. For the facilities other than covered elsewhere in this paragraph, AIP eligibility is limited to relocation required by another approved AIP or Passenger Facility Charge project. For example, if an AIP or PFC project restricts a controllers visibility in airport movement areas, improvement or relocation costs of the ATCT would be eligible to the extent required as mitigation. However, the statute does not otherwise allow the repair and replacement of F&E project equipment or FAA take over of maintenance for an ATCT funded under the AIP. (See Paragraphs 591 and 593.)
Order 5100.38C
EQUIPMENT Wind Tee Wind Cone Recording Anemometers Runway Visual Range (RVR)
F&E No No No
BCA No No No
RMM No No No
TAKEOVER No No No
(if information is provided directly to pilot and associated with precision approach)
Yes
Contact OPI
AND-740
Yes
No
Yes
(if associated with an ILS)
Automated Weather Observing System (AWOS) Low-Level WindShear Alert System (LLWAS)
No
AC 150/5220-16
AUA-400
No
Yes
No
Yes
Contact OPI
AUA-400
Yes
Yes
No
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c. Options. The minimum required optional displays and printer systems are eligible for an AWOS. Regions should ensure the ancillary equipment is justified by an operational need and will be used. d. Operation and Maintenance. Sponsors are required to operate and maintain AWOS equipment during its lifecycle. The special condition required for navigation aid projects (Appendix 7, Paragraph 6) should be in each AWOS grant. Inspection for weather observing sensor compliance by the local System Management Office of the FAA may also be required. e. Automated Surface Observing System. The installation of the ASOS projects, which has been adopted as the F&E program standard for weather observation, is normally accomplished under that program. Any questions on the ASOS projects should be directed to the Airway Facilities division.
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EQUIPMENT Runway Closure Marking Aviation Obstruction Lighting and Marking Bird Hazard Reduction Equipment Industrial Waste Treatment Facilities Low Emission Systems
(2) The special condition in Appendix 7 should be applied to the cases involving a nonstandard RPZ. b. Removal of Objects. The removal or relocation of any object located in the RPZ is eligible regardless of whether it constitutes an obstruction and/or airport hazard. When property within the RPZ is acquired under the AIP, structures and activities located on this land must be removed unless granted an exception by the regional Airports Division Manager or needed for air navigation facilities.
Order 5100.38C
b. Ineligible Hazardous Clean Up. Clean up of hazardous waste is normally ineligible in airport development projects. Contact APP-500 for assistance on projects when hazardous waste is first found during the accomplishment of an AIP development project. See Paragraph 586.
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activities. See Appendix 7 for a special condition to be used on these projects. See 49 USC 47102(3)(L). 1. The vehicle and equipment technology must rely exclusively on alternative fuels that are substantially non-petroleum based, as defined by United States Department of Energy. However, this requirement does not exclude hybrid vehicles. 2. If the vehicles would not otherwise be eligible, such as shuttle buses, incremental costs of low emission technology are the allowable portion of the project. (b) Facilities. For work necessary to construct or modify facilities to provide low-emission fuel systems, gate electrification and other related airport air quality infrastructure improvements, requirements of subparagraph a(2)(a) above apply except for the sentence about alternative fuels. See 49 USC 47102(3)(K). b. Ineligible Work. Work benefiting non-aeronautical revenue producing airport areas and locations that are not at an airport is ineligible except as described in Paragraphs 303 and 502e. Ineligible portions may be prorated from eligible work in a project. Vehicles are ineligible if not operated within or in close proximity to the airport boundary and dedicated to the airport.
586. WETLANDS.
Wetland projects may be associated with separate justification related to wildlife hazards and water quality. See Paragraphs 584 and 587. In addition, similar wetland mitigation projects may be a requirement for coastal zones, endangered species, floodplains, and other environmental impacts included within the environmental documents for airport development. a. General. Wetland restoration, creation, enhancement or exchange projects are eligible only when required by an environmental finding for an approved AIP project. Sponsors shall not implement wetland wildlife attractions unless the mitigation project is located at a site remote from existing or planned airport development as defined within Advisory Circular 150/5200-33, Hazardous Wildlife Attractants on or Near Airports. Wetland preservation and related work is not eligible when it conflicts with aircraft operations. (See http://www.faa.gov/arp/environmental/5054a/wildhazmou.pdf for a discussion of minimizing aircraft-wildlife strike potential.) b. Monitoring Wetlands. Monitoring of wetland areas is eligible in a project for up to two years from the grant agreement (or the period projects are open for other project purposes) to determine whether the as-built conditions meet design objectives. A project should not be open beyond two years for the exclusive purpose of wetland monitoring. Two years is a common grant closeout objective. However, approved mitigation plans typically require a five-year oversight period. Such lengthy studies may be eligible for reimbursement of work accomplished prior to a grant and/or within multiple grants as follows: (1) A portion of wetlands evaluation already completed and reimbursable may be eligible subject to the limitations of Paragraph 311j. (2) A supplemental planning project continuing the wetland monitoring studies may be eligible after the initial grant is closed under provisions of Paragraph 406s. c. Mitigation Banking. Mitigation banks combine wetlands required for various current or future projects. Funding for mitigation banks is allowable for a specific airport development project the FAA intends to fund under the AIP within two years from the grant agreement for wetland banking. See http://www.faa.gov/aip/environmental/5054a/wetpol.html for information on mitigation banking. d. Environmental Trust Funds. Certain environmental trust funds or other similar devices that combine projects required for a variety of resources in addition to wetlands may be provided AIP funding Page 101
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subject to the same conditions as mitigation banks in lieu of financing specific wetland projects. The purpose of the AIP funds must be identified in these cases for the management entity below. e. Management Entity. Sponsors may not have wetland expertise or jurisdiction over the wetland areas. Therefore, the airport may prefer to work through a natural resource agency, conservation organization, or land trust to acquire and manage the land for project mitigation. In these cases, eligibility is dependent upon passing the airports obligations on to the management entity. The eligibility for operations of a management entity to monitor wetlands is limited to conditions in subparagraph b above. Any additional costs incurred by the management entity are considered administrative or maintenance costs and would be ineligible for AIP funding. f. Management Agreements. A formal agreement co-signed by the airport and proposed owner or management entity must be obtained to protect AIP funds. Agreements may be with public agencies or nonprofit organizations and should including the following information: (1) A commitment to use the property on a continuous basis compatibly with airport operations and not subject to undue liability or misuse in any way; (2) A wetland monitoring requirement for the period before, during or beyond the AIP project ensuring the property has at least value and function equal to that of the required mitigation as described in subparagraph b above; and (3) The understanding that the administration and maintenance of the property in accordance with applicable laws will be the sole responsibility of the management entity, which is AIP ineligible.
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a. Non-Federal Structures. The purchase by an airport sponsor of a building from any owner other than the Federal Government is eligible. The market value and the costs associated with its demolition and removal are eligible, minus any salvage value. The relocation of the structure or facility to another location on the airport in lieu of purchase is eligible up to the market value of the facility. Nominal incidental costs of the relocation, e.g. extinguishing a lease or footings and floors, may be included. b. Federally Owned Facilities. The cost of moving buildings owned by the Federal Government that impede an AIP grant or PFC project is eligible. Table 12 outlines limitations on FAA equipment relocation eligibility since the F&E program is the basic vehicle for such projects. Table 12 also outlines principal standard requirements (specifications, type acceptance, siting, and operational performance), routing of the office of primary interest (OPI), need for benefit-cost analysis (BCA), applicability of remote maintenance monitoring (RMM), and FAA takeover potential. (1) Examples of relocating such Federal facilities include navigation aids, weather equipment, the airport traffic control tower (ATCT), the remote transmitter-receiver (RTR), terminal Doppler weather radar (TDWR), airport surface detection equipment (ASDE), the precision runway monitor (PRM), and airport surveillance radar (ASR). Under 49 USC 47110(b)(1), the projects may include military facilities or any other federally owned facility. (2) Rebuilt facilities must be of an equivalent size and type. Equivalent capability of buildings, pavements, and facilities may require different features than existing structures depending on proposed location. However, the allowable costs will cover in-kind move or replacement rather than an upgrade and rebuilding with current technology. Prorating eligible cost may be necessary. See Order 6030.1 and Advisory Circular 150/5300-7 about FAA policy on ATCT, RTR, TDWR, ASDE, PRM, ASR, and other facility relocations occasioned by airport improvements or changes. See also Paragraphs 311k, 513, 514 and 550-574. c. Sponsor Owned Facilities. A sponsor may choose to either remove or demolish a facility it owns. These costs are eligible minus any salvage value. The cost to the sponsor of extinguishing a lease is eligible. (1) When a structure acquired under an AIP project is to be removed later, such as in 5 years, the sponsor may use the structure for any incidental purposes it deems desirable provided it does not interfere with the purpose of the airport. Any revenue at fair rental value received during the period between acquisition and demolition of the structure constitutes airport revenue and is to be used according to Sponsor Assurance 25. If a decision is made not to demolish the structure, then the sponsor will be responsible for reimbursing the grant program the Federal share of the appraised value attributed to the structure. (2) The cost of a structure on land being acquired under the AIP is allowable if the building is to be used by the sponsor for a grant eligible facility, such as an ARFF building. (3) The costs of a structure on land that is to be acquired for airport purposes is not allowable if the structure is to remain on the land or is to be relocated and will be used by the sponsor for a purpose not grant eligible. However, if the structure is to be relocated because its present location constitutes an airport hazard or impedes eligible airport development, then such relocation would be eligible up to the estimated costs to demolish and remove the structure. Participation is limited to the cost of a like facility.
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EQUIPMENT Airport Navigation Aid Equipment Terminal Navigation Aid Equipment Weather Equipment Airport Traffic Control Tower (ATCT) Remote TransmitterReceiver (RTR) Terminal Doppler Weather Radar (TDWR) Airport Surface Detection Equipment (ASDE) Precision Runway Monitor (PRM) Airport Surveillance Radar (ASR)
PRINCIPAL STANDARD See Table 8 See Table 9 See Table 11 Contact OPI Contact OPI Title 49 U.S.C., 47101f, Contact OPI Title 49 U.S.C., 47101f, Contact OPI Title 49 U.S.C., 47101f, Contact OPI Title 49 U.S.C., 47101f, Contact OPI
Yes
AUA-400
Yes
No
Yes
Yes
AND-400
Yes
No
Yes
Yes Yes
AND-400 AND-400
Yes Yes
No No
Yes Yes
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devices. Excluded would be those areas that are primarily revenue producing such as restaurants, concession stands, and airline ticketing areas. With exception to the terminal modifications in Paragraph 602 regarding baggage makeup areas, only public-use areas associated with baggage claim delivery are eligible under the AIP program. See Table 13 on page 114, which describes terminal eligibility by commercial service airport type. a. For large, medium, and small hub airports, terminal development can only be funded from a sponsors passenger entitlement funds. b. For nonhub airports, funds from the discretionary or small airport fund may be used for terminal development. For nonhub primary airports, passenger entitlements may be used as well. c. Cargo entitlement funds may not be used for terminal development. d. Nonprimary commercial service airports cannot receive more than $200,000 of discretionary money in any fiscal year for allowable terminal development project costs. e. Reliever airports cannot receive more than $200,000 of discretionary funds in any fiscal year for allowable terminal development project costs. Typical eligible items include baggage claim delivery areas, automated baggage handling equipment (see Paragraph 602c for limitations), public-use corridors to boarding areas, central waiting rooms, restrooms, holding areas, and foyers and entryways, as well as passenger loading bridges and handicapped boarding assistance devices. See Table 14.
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methods. Due to the fact that tow vehicles would inevitably be used for other purposes including general traffic control, parking violations unrelated to security and for vehicle assistance, the FAA has determined that these would not compete well for discretionary funds. Entitlement funds, however, may be used. Further, since tow charges are normally passed on to the violator rather than remaining an airport expense, and in those locations where adequate towing services are available, regions should consider the need for an airport owned tow truck. Other projects in this category may include public address systems and terminal improvements for checking baggage or passengers. For example, the replacement or installation of a general public address system, which will be used predominately for air carrier announcements and only periodically make required automatic security announcements, would not be eligible. However, the equipment necessary to make the automatic announcements and the feed to the public address system would be eligible. In the case of full replacement or installation, costs should be prorated in order to identify the required security costs. c. The Aviation and Transportation Security Act (ATSA) amended Title 49 U.S.C., Section 47102(3) to include terminal modifications necessary to accommodate the installation of Explosive Detection Systems (EDS) in baggage makeup areas as eligible for AIP funding. Note the amendment only provides for that development or reconfiguration necessary to accommodate the installation of bulk explosive detection equipment. It does not provide general eligibility for the baggage makeup area and baggage conveyor systems under the AIP program. Since passage of ATSA, projects were funded with either entitlement or discretionary funding. After FY 2003, the projects are limited to entitlements. Note the FY 2004 and FY 2005 Appropriations Act prohibit using AIP funds for baggage system, terminal building or other modifications in order to install EDS during each of those years. The project may include the replacement of baggage conveyor systems, and reconfiguration of terminal baggage areas, that are undertaken by an airport owner or operator and that the FAA determines necessary to install the bulk explosive detection devices. If replacement of an outdated baggage system is found necessary, project files must contain substantial justification that no feasible alternative exists to the complete replacement. The Regional Airports Division or ADO will consider the use of proration in order to determine an acceptable approximation of the costs of replacement due to explosive detection systems versus replacement due to age. If an entire baggage handling system must be replaced it must be available to all air carriers on a non-exclusive use basis and it must remain the property of the airport. Where the project is in the baggage makeup area only, either discretionary or entitlement funding may be used. d. A project to provide an efficient use of terminal space or even aesthetics in the public spaces of the terminal, such as enlargement of areas to permit more efficient queuing of passengers or to accommodate random screening, is considered to be terminal development and therefore can only be funded at large, medium and small hubs using entitlement funds (nonhub and reliever airports may use discretionary funds if available). Widening of the entrance to a concourse to accommodate additional screening lanes or construction of rooms to do random screening rather than performing the screening in the terminal for example are not security projects but may be considered terminal development. It should be noted here that the Federal share for terminal development projects, as well as this expanded eligibility, remains unchanged for these projects. In federalizing the screening activities at an airport, some security projects that were previously funded under AIP through Section 308 of the FAA Reauthorization Act of 1996 such as X-ray equipment, magnetometers, search wands and any similar equipment used by TSA screening agents are no longer eligible and cannot be funded. Also, projects that appear to exceed known requirements or are used to support law enforcement functions unrelated to air transportation security such as parking enforcement, and general traffic law enforcement patrol duties are ineligible for funding.
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incidental with respect to the total project cost. Therefore, allowable costs in a project for terminal development may include, in addition to other allowable costs, incidental costs attributable to revenueproducing areas other than those directly related to the movement of passengers and baggage in air commerce. Examples of such areas include space for a snack shop or vending machines, an alcove for pay telephones, and wall or floor space to accommodate rental car, lodging reservation facilities, or public or travelers information booths. In addition, the costs necessary to provide utilities, heating, ventilating, and air conditioning for such space are allowable. Costs related to administrative (nonpublic use) space and any equipment, furnishings or facilities used in revenue production (e.g., snack bar equipment or furniture, vending machines, telephones, reservation lines) are not allowable costs under this provision. Non-revenue producing parking lots not associated with the passenger terminal building (or a hangar in the case of nonprimary airports) are ineligible. Employee parking lots are ineligible. The FAA has also determined that a project solely to provide a restaurant, for example, in an existing terminal is not an eligible project.
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of an area that is 50,000 square feet or less. MAP airports may be reimbursed using entitlements, discretionary funds, or the MAP discretionary funding for the cost of construction work for these items performed in FY 2003-2004 prior to a grant. (1) Parking Lots. Parking lot eligibility is limited to parking facilities serving passenger terminal buildings. Allowable size is limited to that area needed to support the forecast parking needs of the air carrier passengers and other terminal users, as specified in the airport master plan. Reference FAA Advisory Circulars 150/5360-9, Planning and Design of Airport Terminal Facilities at Nonhub Locations, and 150/5360-13, Planning and Design Guidelines for Airport Terminal Facilities, to determine the scope of the parking development as based on forecasts. Provisions of Paragraph 526 are superseded by the MAP eligibility. (2) Fuel Farms. Fuel farm eligibility includes new construction of fuel farms (based on forecasted needs) and rehabilitation of existing fuel farms to bring them up to operating standards established by the EPA or local permitting agencies. FAA participation is limited to those fuel farms, which will be operated by the sponsor or leased to or managed by a fixed base operator for nonexclusive use by the flying public. The branch of the military that operated or currently operates the military airport is responsible for cleanup of contamination. Cleanup that has occurred under civil ownership or operation is ineligible. See Paragraph 515. (3) Utilities. Utility eligibility is generally allowable subject to proration in accordance with Paragraph 613. The eligibility of utilities at MAP locations is expanded to allow the rehabilitation of existing utility systems to support the aeronautical use portions of the designated airports. Projects on the non-aeronautical, revenue-producing portions of an airport are ineligible under this provision. See Paragraph 515.
609. UTILITIES.
The installation of water, gas, and electric utilities and wastewater treatment facilities will be eligible to the extent they are needed to serve eligible airport development projects. The allowable cost of any installation serving both eligible and ineligible areas or facilities will be a prorated share of the total cost, the method to be determined by the FAA Airports Office as in Paragraph 612a. (See Paragraph 612 and Appendix 12, Paragraph 1 for special conditions, and Paragraph 515 for airfield utilities. Also, see Paragraph 605 for utilities on former military airports.)
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terminal radar approach control (TRACON) facilities, air route traffic control centers (ARTCCS), flight service stations (FSS) and automated flight service stations (AFSS) are not eligible for relocation; an ILS or TVOR is eligible. Allowable costs under the AIP are limited to the costs incurred by an in-kind relocation; costs incurred for any upgrade in equipment or facility size are not eligible. In addition, AIP Funds will not be used to relocate an ATCT or navigational aid (including radar) that is presently included in the Facilities and Equipment (F&E) budget or CIP for the current and next 3 fiscal years. The programming priority of facility relocation will be the same as the project for which it is required. The AIP participation rate for such relocation should be the same as for the development item with which it is associated; i.e., the rate would be 75 percent for relocation to accommodate terminal development at a large primary airport, and 90 percent if done in conjunction with construction of a runway at a reliever airport. AIP funds may (as well as PFC revenues) be used for relocation of an ATCT or NAVAID only if the project, which necessitated this relocation, is funded under either AIP or PFC. APP-520 must be consulted if an airport sponsor applies, or intends to apply, for a grant to relocate an ATCT or NAVAID. These proposed relocations will be reviewed on a case-by-case basis.
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ELIGIBILITY
DISCRETIONARY FUNDS RESTRICTION None, 47119 (b) does not allow the use of discretionary funds None, 47119 (b) does not allow the use of discretionary funds Any amount of discretionary and small airport funds Secretary approves
ENTITLEMENT FUNDS (APPORTIONMENTS) ALLOWED Any amount of passenger entitlement funds for the specific airport 47119(b) Any amount of passenger entitlement funds for the specific airport 47119(b)
Limited to public use, non-revenue producing areas 47110(d)(1) Limited to public use, non-revenue producing areas 47110(d)(1) May include revenue producing areas and non-revenue public parking lots. Does not include equipment and final finishes of restaurants and retail spaces 47110(d)(2) May include revenue producing areas and non-revenue public parking lots. Does not include equipment and final finishes of restaurants and retail spaces 47110(d)(2)
Small Hub
95
Nonhub Primary
95
Any amount of passenger entitlement funds for the specific airport 47119(b)
Nonprimary Commercial
95
Note: See Table 14 for terminal eligibility by general aviation and special airport categories. *See Paragraph 23 for information on types of airports. **See Paragraph 26 for variations in Federal share. ***This limits program costs to $25,000,000 per fiscal year per airport.
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ELIGIBILITY May include revenue producing areas and non-revenue public parking lots. Does not include equipment and final finishes of restaurants and retail spaces 47110(d)(2) Construct, improve, or repair a terminal facility, including gates for revenue passengers. Gates may not be leased for more than 10 years or subject to majority in interest clauses 47118 (a) None May include revenue producing areas and non-revenue public parking lots. Does not include equipment and final finishes of restaurants and retail spaces 47110(d)(2) and 47119(b)(5)***
Reliever 47102(18)
95
$200,000 / FY 47119(b)(2)(B)
95
Not more than $10,000,000 / FY at each airport 04 and 05; $7,000,000 thereafter 47118(e) and (f) Depends on requirements based on the airports other airport types or categories
95
None
General Aviation
95
Note: See Table 13 for terminal eligibility by commercial service airport type. *See Paragraphs 23 and 40 for information on airport program categories. **See Paragraph 26 on variations in Federal share.
***Contact APP-520 for revenue-producing support facility proposals other than hangars and fuel farms. . Page 115
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designed to provide income by serving the public through coin machines and similar collection methods such as cleaning and laundry areas, game rooms, etc., are not eligible. b. Terminal Passenger vehicles that are used exclusively within the boundaries of the airport primarily to move passengers between airline terminals or gates and devices used to board airline passengers with mobility impairments are eligible. Vehicles to transport passengers to and from aircraft are also eligible. The fact that monies are recovered to defray the costs of amortization, maintenance, and operations will not make such vehicles ineligible. Also, see AC 150/5220-21, Guide Specification for Devices used to Board Airline Passengers with Mobility Impairments. c. The construction or improvement of public-use areas of Federal inspection facilities, including baggage-handling equipment is eligible, with the following exceptions: (1) Administrative office space is not eligible, and (2) Special purpose equipment such as, computers, radios, video monitors, telephones, and teletypewriters are not eligible. Also space, such as training rooms and employee break rooms, are not eligible. d. Fixed terminal facilities and equipment including ramps, mechanical lifts, or other suitable boarding devices required by Title 49 CFR, Part 27 for access to aircraft by persons with disabilities to any aircraft with a minimum seating capacity of 19 passengers are eligible provided: (1) They are an integral part of the design of new terminal construction or are incidental to a major terminal renovation; (2) They are not minor items of personal property such as telephones, teletypewriters, etc. (Legal opinion, AGC-130, Aug.20, 1980); (3) They do not serve an area exclusively leased to a single carrier and are not themselves exclusively leased; and (4) Other terminal development eligibility criteria are met.
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foundations, and utilities that contribute to public-use areas. This method of proration is particularly applicable to new terminal construction. b. Proration on a Square Footage Basis. Construction costs are prorated on the ratio of the square footage that the eligible area bears to the total usable square footage of the structure. The proration of costs for items that contribute to public-use areas such as site preparation, foundations, and utilities is based on this ratio. This method of proration is particularly applicable to determining retroactive financial assistance for existing terminal facilities.
Section 2.
620. ACCESS ROAD ELIGIBILITY.
TERMINAL ACCESS
The construction, reconstruction, and alteration of airport roads and related facilities may be eligible. a. Access Roads. Access roads and related facilities are eligible provided they meet the following conditions: (1) The access road may only extend to the nearest public highway of sufficient capacity to accommodate airport traffic. (2) The access road must be located on the airport or within a right-of-way acquired by the airport sponsor. Page 117
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(3) The access road must serve exclusively airport traffic. Any section of the roadway, which does not serve airport traffic exclusively, is ineligible. (AGC opinions, 1949, and 1951.) As an example, an airport is fronted by a retail and hotel development. That portion of the road that goes through and also serves the commercial development would not be eligible; however, that portion of the road continuing into the airport to the terminal would be eligible. As another example, a road that serves an airport terminal complex, then goes on to provide access to other unrelated airport development would not be eligible. Also, the access road must serve airport traffic exclusively and the cost of that road cannot be prorated on the basis of airport traffic to nonairport traffic. (4) More than one access road is eligible if the airport surface traffic is of sufficient volume to require more than one road. The justification for the additional access road(s) shall be supported by traffic counts and a recent traffic study. This study may be an element of a master plan study or an individual study specifically to support the proposed project. (5) Related facilities such as acceleration and deceleration lanes, exit and entrance ramps, street lighting, and bus stops also are eligible when they are a necessary part of an eligible access road. b. Public Circulation Roads. Roads constructed to provide for the circulation of passengers and freight on the airport are eligible except: (1) Roads exclusively for the purpose of connecting parking facilities to an access or circulation road (for roads that directly connect terminal facilities to ineligible public facilities, see Paragraph c. below); (2) Roads serving solely industrial or non-aviation related areas or facilities; and (3) Roads necessary only to maintain FAA facilities installed under the F&E program. c. Service Roads. Service roads located on the airfield side of the airport are eligible in accordance with Paragraph 527 if necessary for: (1) ARFF access to the runway and runway safety areas; or (2) Operation and maintenance of the airport. (3) A service road that provides incidental access to FAA or other non-aviation related areas or facilities may be eligible. (4) Roads constructed to provide separation of airport surface vehicles and aircraft may be justified on the basis of safety. This would depend on the amount of surface vehicle and aircraft traffic and the specific layout of the airport. d. Special Circumstances. Roads directly from a terminal to an ineligible (revenue producing) parking lot are eligible as would be sidewalks or people movers between eligible terminal areas and the ineligible parking lot. The Act provides that access to and from a terminal is eligible if it is necessary for the movement of passengers and baggage. This also includes sidewalks and people movers. In addition, access between an eligible terminal and an eligible parking facility (nonrevenue parking lot on a nonhub primary or nonprimary commercial service airport) is eligible.
621. WALKWAYS.
At commercial service airports, walkway facilities including surface sidewalks, moving sidewalks, tunnel walkways, stairs, and overhead walkways are eligible. Covers or canopies over surface sidewalks may be eligible when necessary to protect concentrations of persons from the weather such as at passenger loading or unloading areas. If structurally part of the terminal facility, they will be
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considered as part of terminal development. At airports other than commercial service airports, surface sidewalks and bike lanes will be eligible only as an incidental part of an eligible access roadway project.
Section 3.
630. GENERAL.
There are other terminal area projects that may be eligible. These projects may be required as a result of environmental findings, such as, water and air quality projects. (See Paragraphs 544, 547(d), 580,and 586).
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c. The sponsor may not operate the structures on an exclusive or near exclusive basis, and the sponsor must establish procedures for management and operation of the structure to ensure prompt access to the facility for each potential user. This may include movement of aircraft parked within the shelters to accommodate other airport users.
Section 4.
640. GENERAL.
There are few disparities between the AIP and PFC programs and they are as follows: At large, medium, and small hub airports the terminal baggage makeup area is not eligible under the AIP program except as described in Paragraph 602(c). Under the PFC program, this area would be eligible. Also, non-exclusive use baggage makeup equipment (conveyors) owned by the sponsor would be eligible under the PFC program. This equipment would not be eligible under the AIP. These areas are considered gates and related areas", which is an area of additional eligibility for the PFC program. The ineligible areas must be prorated for an AIP grant; however, the PFC program would not require a proration. In addition, the PFC program is not subject to the source of funding limitations to which the AIP is subject. At nonhub primary airports and nonprimary commercial service airports, revenueproducing areas are eligible under both programs. See Paragraph 600(g) and Table 11. Also, for a more detailed discussion on the PFC program, and more specifically gates and related areas eligibility, please refer to FAA Order 5500.1.
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1 uneconomic remnant. The term "uneconomic remnant" means a parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property, and which the airport sponsor has determined has little or no value or utility to the owner.
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parcel in addition to the property needed. Uneconomic remnants may be incorporated into airport property as feasible, or disposed of in accordance with Paragraph 702 of this Order.
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e. Installation of Airport Utilities. Right-of-way for drainage, sanitary sewers, storm water runoff, utility lines, etc., that are located outside the airport boundary. f. Mitigation of Airspace Conflicts. The resolution of a conflict caused by the proximity of two or more airports, which cannot be resolved by an acceptable operational or design alternative. Allowable costs for resolving such conflicts are limited to the lesser of the following: (1) The appraised value of acquisition of any easement or of placing a restrictive covenant on the property necessary to permit full development and use of facilities eligible for AIP grants-in-aid. The value of the easement or restriction must be based on appraisals using the Before-and-After Method as described in Paragraph 2-21, Order 5100.37A. (2) An amount equal to the difference in cost between fee simple acquisition of the property and the resale of the property at full market value after imposition of appropriate restrictions to allow airport development. If this method is used, the sponsor should be cautioned that the Uniform Act may apply, depending upon the sponsors acquisition techniques. Also, the grant may not include any provision for directly paying sponsor costs of fee simple acquisition. 702. TREATMENT OF UNNEEDED REAL PROPERTY. Normally, AIP funds may be used to pay the Federal share of the cost of acquiring only such land as is needed for airport or noise compatibility purposes. However, where the sponsor must acquire a tract of land in excess of airport needs and where the land or improvements will be immediately disposed of, the grant may be based on the full value of the parcel, including that part which is excess. The net proceeds from the sale shall be deducted from the grant amount before project closeout. In those cases in which the sponsor does not intend to sell the excess property immediately after acquisition, the amount of the purchase price attributable to such property shall not be included in the grant. If, after having originally selected the option of immediate disposal, the sponsor elects after grant award to retain any property for nonaeronautical purposes, the amount attributable to that property retained shall be deducted from the grant.
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acquisition must conform to Uniform Act requirements and persons displaced shall be provided relocation assistance and payments as prescribed. The acquisition of land for future airport development must meet the requirements of the National Environmental Policy Act (NEPA) of 1969, as implemented by the current versions of FAA Orders 1050.1 and 5050.4. b. Requirements. No project to acquire land for future development of a proposed airport shall be approved unless the following requirements have been satisfied: (1) There is a valid aeronautical need for the land; (2) The site selected has been approved by the FAA; (3) Airspace clearance for the site has been granted; (4) There is an approved airport layout plan; and (5) Environmental concerns have been identified and addressed in accordance with NEPA. c. Special Conditions. The grant document shall include the special conditions specifically drafted for projects that include land as contained in Appendix 7, Paragraph K. d. Land Banking and Purchase of Land Options. Studies of the concepts of "Land Banking" and "Purchase of Land Options" were conducted to determine if there were conditions and procedures that enabled acquisition of land needed for future airport development in the current time frame. The 1977 study of land banking assesses the potential to ensure the future availability of land for airport development. A study of the purchase of land options was completed in 1997. That study summarized some of the findings and conclusions of the land banking study. It then evaluated the concept of purchase of land options as used in the private sector with a view toward adapting the concept to Federal projects. It provides a comprehensive overview of the use of land options, with an emphasis on terminology used in the commercial real estate arena. The study also summarizes Federal experience with advance purchase of land for future development. The study concludes that the concept of purchase of land options may have limited usefulness in the Federal sector. The study is available on the APP-500 web site at the following address: http://www.faa.gov/arp/500home.htm. The report, Land Options Used in Federally Funded Airport Projects, is listed near the bottom of the page and is available for viewing and downloading in both HTML and PDF.
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environmental document. Contact APP-600 for assistance in advising sponsors on documentation. The funding priority for land outside DNL 65 dB is lower than for land subject to significant levels of noise exposure. c. AIP/PFC Program Disparity. PFC eligibility differs from AIP eligibility. To be eligible for PFC, a noise mitigation project must be located in an area adversely impacted by noise and the proposed mitigation must be eligible for approval as a noise compatibility measure under Part 150 if it were so submitted. However, PFC funded projects do not have to be submitted to FAA in a Part 150 program and do not have to receive Part 150 approval. Where a project is not in an approved Part 150 program, FAA requires a sponsor to provide documentation demonstrating that the project will accomplish a noise mitigation purpose that would be eligible for approval under Part 150. The eligibility of the proposed noise project must be supported by noise contours that could be prepared in conjunction with a Part 150 study, environmental document, or other suitable planning analysis. Noise mitigation in areas of moderate noise exposure below DNL 65 dB is also eligible, as with AIP.
2 As defined in Paragraph 208. Private Airport Owners. This may be an individual, a partnership, corporation, etc., that owns or operates a reliever airport or a public use airport that receives scheduled passenger service of aircraft which enplane annually 2,500 or more passengers.
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June 28, 2005 (8) Advisory services; and (9) Preparation of feasibility studies and relocation plans.
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costs of the project. For example, in a project with construction costs of $90,000, the inclusion of $10,000 in previous land acquisition costs would result in combined project costs of $100,000. With the Federal share set at 90 percent of allowable project costs, the AIP grant would be $90,000 and the sponsor would not need to make any additional cash contribution. (e) When legislation was enacted establishing the eligibility for AIP grants at private reliever airports, FAA did not apply the provision for reimbursement of prior land acquisition costs to privately owned airports. This, however, did not preclude the use of AIP grant funds to acquire additional development land where needed at a private reliever airport. (f) A 1994 conference report directed the FAA to determine if private relievers should be treated differently in regard to the valuation of land they used in a project. The inference was that the land had been relatively worthless before being developed as an airport, and to use that value would not provide the sponsor the ability to maximize his return on the increased value of the land as an airport. It was found that the improvements to the land and the valuable contribution of the airport to the Nations aviation system were not being recognized. However, there was no authority under Title 49 U.S.C., Section 47110 to revise the policy of land valuation for private relievers. (g) The FAA's response to Congress identified rationale for interpretation of legislative intent being applied to valuation of previously acquired land. 3. Most of the 3,400 airports in the FAA's National Plan of Integrated Airport Systems are small publicly owned facilities, and, as at private airports, funds for the matching share on Federally assisted projects are extremely limited. Using the cost of previously acquired land allows a sponsor, public or private, to obtain a grant for an important project without a cash outlay for the sponsor's share. Public owners have always been reimbursed for previously acquired land based on their actual acquisition costs. The same provision, at that time, was being applied to private owners. 4. The authority provided in Title 49 U.S.C., Section 47110(c) to reimburse an airport sponsor for project formulation costs incurred after May 13, 1946, including costs to acquire land or interests in land for airport development, refers to costs incurred. This section sets forth an exception to the more general provision in Section 47110(b) that likewise defines allowable costs in terms of costs incurred. The FAA found no statutory basis for reimbursing a sponsor for an amount other than its actual costs incurred. Thus, in the example noted above, no basis in law could be found for valuing the land at any amount other than $10,000 for determining total project costs or actual local share. (h) Based on the findings by FAA, Congress acted to clarify their intent in relation to private reliever airports. Section 1211 of the Federal Aviation Reauthorization Act of 1996 amends Section 47109 to change the way land reimbursement is treated when a privately owned reliever airport uses a portion of existing airport land for use in a project to cover the non-Federal share. The current fair market value, instead of the fair market value at time of acquisition, is now to be used to determine the value of the land included in the project. (i) This change results from our findings during the past several years that the private relievers should be treated no differently than public relievers and legislation would not permit any other method. Although this change validates our previous eligibility determination for valuing land included in an airport project, we must now treat public and private reliever airports differently. d. There have been suggestions that in the past we may have allowed some private reliever sponsors to obtain current fair market value for land they included in projects. We believe this may have resulted from a misinterpretation of the terms donation and reimbursement. If it is found that an error was made through confusion of terms, the fact should be documented in the project folder. It is not likely that recovery of excess funds would be feasible or possible. That fact should also be noted in the folder.
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C h a p t e r 8 . N O I S E C O M PAT I B I L I T Y P R O J E C T S
Section 1. GENERAL
800. GENERAL.
The Aviation Safety and Noise Abatement (ASNA) Act of 1979, as amended, and recodified without substantive change at Title 49, U.S.C., Sections 47501 47510, permits the FAA to provide funds for projects at both commercial service and general aviation airports to carry out an FAA approved noise compatibility program (NCP). In addition, the FAA may provide AIP funds for noise insulation projects in buildings used primarily for educational or medical purposes that are not included in an FAA approved NCP. Grants for such projects may be made to airport sponsors as well as to eligible public agencies not owning airports (nonairport sponsors). However, noise mitigation associated with airport development projects will continue to be funded as airport development (See Paragraph 580 of this Order).
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803. COSPONSOR.
Any two or more units of local government may cosponsor a noise compatibility project, provided that such units of local government jointly or severally are eligible sponsors. An airport sponsor may be a cosponsor on such a project. Cosponsorship should be encouraged, particularly where it would contribute to more effective compatible land use commitments on the part of unit of local government having jurisdiction over land use.
804. APPLICABILITY OF THE AIRPORT AND AIRWAY IMPROVEMENT ACT (AAIA) PROVISIONS.
Title 49 U.S.C., Section 47504(c)(5) states that all of the provisions applicable to AIP grants shall be applicable to any grants for noise compatibility projects. Therefore, requirements pertaining to DBE, Davis-Bacon, NEPA, E.O. 12372, etc., apply to noise compatibility projects. (AGC Opinion, August 24, 1983.)
806. AGREEMENTS FOR NOISE COMPATIBILITY PROJECTS ON PUBLIC PROPERTY NOT OWNED BY THE SPONSOR.
a. General. Where a noise compatibility project is located on public property not owned by the sponsor, Assurance 5 requires the sponsor to enter into an agreement with that unit of local government, having control over the public property, to ensure that such a beneficiary complies with the same general requirements to protect the Federal investment, regardless of whether or not it sponsors the project. The agreement should be modeled on the Nonairport Sponsors assurances (available on the FAA web site at the following address: http://www.faa.gov/arp/financial/aip/assurances.cfm?ARPnav=aip). The agreement may take one of two forms, depending on whether the noise compatibility project is sponsored by an airport sponsor or a nonairport sponsor. The specific assurances that should be incorporated into each agreement are listed below, although circumstances unique to the project, sponsor, or unit of local government may require ad hoc variations. For example, when the sponsor is administering the procurement and construction, and the other unit of local government is not directly involved in project accomplishment, Assurances 8, 9, 10, 11, and 12 need not be incorporated into the agreement. For the purposes of this Paragraph 806, a Nonsponsoring unit of local government is not a party to the actual grant with the Federal Government but is the actual owner of the public property. A sponsoring unit of local government is the unit of government that is a party to the grant agreement with the FAA. Page 134
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b. Agreements between Airport Sponsors and Nonsponsoring Units of Local Government. Except as discussed in Subparagraph a., the agreement between the airport sponsor and the nonsponsoring unit of local government should incorporate the substance of the following nonairport sponsor assurances, as applicable: (1) Assurance 1, General Federal Requirements. It is only necessary to include the first paragraph. Reference to and listing of laws and regulations may be deleted; (2) Assurance 2, Responsibility and Authority of the Sponsor; (3) Assurance 3b, Sponsor Fund Availability; (4) Assurance 8, Accounting System, Audit, and Record keeping Requirements; (5) Assurance 9, Minimum Wage Rates; (6) Assurance 10, Veterans Preference; (7) Assurance 11, Conformity to Plans and Specifications; (8) Assurance 12, Construction Inspection and Approval; (9) Assurance 13, Operation and Maintenance; (10) Assurance 15, Compatible Land Use; (11) Assurance 16, Reports and Inspections; and (12) Assurance 17, Civil Rights. The airport sponsor may also add any other terms and conditions, consistent with the Assurances, which it believes are necessary. c. Agreements between Sponsoring and Nonsponsoring Units of Local Government. Except as discussed in Subparagraph a., an agreement between the nonairport sponsor and another unit of local government should include the following nonairport sponsor assurances, as applicable: (1) Assurance 1, General Federal Requirements. It is only necessary to include the first paragraph. Reference to and listing of laws and regulations may be deleted; (2) Assurance 2, Responsibility and Authority of the Sponsor; (3) Assurance 3b, Sponsor Fund Availability; (4) Assurance 8, Accounting System, Audit, and Record keeping Requirements; (5) Assurance 11, Conformity to Plans and Specifications; (6) Assurance 12, Construction Inspection and Approval; (7) Assurance 13, Operation and Maintenance; (8) Assurance 14, Hazard Prevention; (9) Assurance 15, Compatible Land Use; and Page 135
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The nonairport sponsor may also add any other terms and conditions, consistent with the assurances, which it believes are necessary.
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recommended in areas of moderate noise exposure (i.e., DNL 64-55 dB), only non-noise sensitive land uses may be developed within the area to be considered a noise buffer. Projects in areas below DNL 65 dB that are approved in noise compatibility programs must be supported by appropriate documentation from the sponsor to determine whether they are justified for Federal financial assistance for the year of the grant application. These measures, when proposed for approval in a Part 150 document, are subject to the same FAA review and approval processes as noise compatibility projects within the DNL 65 dB noise contour. Contact APP-600 for assistance in advising sponsors of documentation requirements. The AIP priority ranking assigned to projects below DNL 65 dB would be lower. In addition, projects within DNL 65 dB may be expanded beyond the DNL 65 dB contour to include a reasonable additional number of otherwise ineligible parcels contiguous to the project area, if necessary to achieve equity in the neighborhood. Neighborhood or street boundary lines may help determine what is reasonable, in addition to numbers of properties. Other projects that produce community-wide benefits (development of a noise attenuation standard in a local building code, for example) are also eligible. c. Individual recipients (e.g., homeowner or school) of noise compatibility projects may be entitled to more than one mitigation measure if the additional measures are approved in the sponsors NCP, enhance land use compatibility, provide additional protection for the airport, and the total cost of the measures is reasonable in relation to the property value. For example, noise insulation may be combined with acquisition of an easement, or a sponsor may acquire residential property and install noise insulation with an easement, before offering it for resale. d. Noise compatibility proposals in an NCP that are not approved by the FAA are not eligible under the AIP when eligibility depends on Part 150 approval. Remedial noise mitigation measures that are disapproved under Part 150 for new noncompatible development constructed after October 1, 1998 also are not eligible. Other noise compatibility proposals may be approved in the NCP as noise beneficial, but are not eligible for AIP. These projects may include: development of new or modified flight procedures or environmental assessments prepared by the FAA for flight procedures approved in an NCP; projects which cannot be implemented by an eligible sponsor; operational or administrative costs of a sponsors ongoing noise mitigation program; and demonstration programs intended to test the effectiveness of new noise mitigation technology. Projects that are not described in sufficient detail to determine their noise mitigation benefits are also ineligible.
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(1) The FAA should work closely with the sponsor in such land acquisition projects to develop a long-term plan for land reuse. (See Paragraph e. below regarding the land disposal assurance.) Land acquisition projects should include development of land use conversion, economic feasibility, and marketing plans to ensure that subsequent land uses are consistent with local land use plans and policies, including compatibility with noise exposure levels in the area, and that the sponsor recoups a reasonable amount upon resale. Such planning is eligible in conjunction with a land acquisition project or as a separate project. However, costs to implement the marketing plan are considered operational costs and as such are not allowable. (See Section 3 of this Chapter and Order 5190.6A on the use of resale proceeds.) (2) Costs attributable to removal of structures from land acquired for noise compatibility, when properly justified, are allowable costs under a grant for land acquisition or for reimbursement. Such removal costs may include, but are not limited to, demolition of structures, sale of structures for removal by purchaser, and relocation of structures to another site. Removal costs and proceeds from sale of structures may be used to adjust the net proceeds from resale of the property. (3) Costs attributable to preparing land for resale may be deducted from the proceeds of disposal, but are not allowable costs under a grant. Such costs may include, but are not limited to, rezoning, replatting and upgrading of utilities and services. (4) Costs associated with holding land are not allowable under a grant, nor may they be deducted from the proceeds of resale. Such holding costs may include, but are not limited to, property taxes assessed against the sponsor during the period of ownership, charges for utilities and public services, insurance, financing charges, and assessments. Example: A sponsor acquires 10 parcels of land for a total cost of $1.0 million; the sponsor removes all structures, assembles the parcels into one marketable unit, prepares requests for zoning changes, resurveys, determines consistency with local land use plans and files necessary documents with local officials; utilities and public services improvements are made at sponsor expense; a marketing plan is prepared and the property is sold for $750,000. The proceeds of the sale are calculated as follows: Acquisition Cost = $1,000,000 ($800,000 Federal/$200,000 Local) Development and Sale Costs: Remove Structures Revise Zoning, Local Plans, Maps, etc. Improve Utilities and Public Services Marketing and Sales Total Costs Sales Price Less Total Costs Net Proceeds $250,000 $100,000 $100,000 $ 50,000 $500,000 $750,000 $500,000
$250,000 ($200,000 Federal/ $50,000 local) Note: Costs associated with holding the land (taxes, fees, assessments, insurance, etc.) may not be used in calculating the net proceeds. b. Land Acquisition without Change to Land Use. An airport sponsors approved NCP may include Purchase Assurance, Sales Assurance, or Transaction Assistance measures (described below) to acquire for resale or assist a market sale of eligible noncompatible property without changing the existing land use. These measures assist homeowners to move from the noise impact by facilitating a timely market sale of their noise-impacted property. Noise insulation of residences is eligible prior to Page 138
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sale or resale. Also, pre-existing noise insulation will not disqualify a property from these programs (see paragraph 812 for noise insulation criteria). Under these programs, the sponsor shall ensure that potential buyers are provided with an appropriate disclosure statement that describes the airport noise exposure on the property and the intention of the sponsor to retain an easement or similar interest. (1) Purchase Assurance. Under Purchase Assurance, a property that fails to sell within a specified time period is purchased by the airport and then resold for continued residential use. The airport purchases the property at the appraised fair market value as is subject to airport noise. Typically, noise insulation is provided and the property is then listed and sold subject to the airports easement. (2) Sales Assurance. Under Sales Assurance the appraised fair market value of the homeowners residence is guaranteed on a timely market sale, however the airport does not acquire the property. Should the property sell for less than the appraised value, the selling owner is compensated for the short fall by the airport. Property is appraised at its current fair market value as is subject to airport noise. The property is listed and sold subject to the airports easement that is conveyed to the airport at sale of the property. (3) Transaction Assistance. Transaction assistance generally involves an agreement by the airport sponsor to pay certain costs associated with the sale of residential property. Allowable costs should generally be limited to the real estate sales commission (consult with APP-600 for other allowable transaction costs). The property is listed and sold subject to the airports easement that is conveyed to the airport at the assisted sale of the property. c. Easements and Other Property Interests. (2) Purchase of easements or similar property interests for noise compatibility is eligible if it is an approved measure of a sponsors NCP. Depending on local real estate laws and other site factors, sponsors may propose to acquire restrictive covenants, development rights, or other specified interests. The requirements and procedures applicable to acquisition of such property interests with Federal assistance are described in Chapter 7 of this Order. (3) Easement compensation is difficult to appraise because of limited market information. Acceptable appraisal procedures are described in the most current version of FAA Order 5100.37, and specific considerations and methods to appraise easements acquired for noise compatibility are provided in FAA AC 150/5100-17. As provided in this guidance appraised just compensation owed for an easement acquisition shall be based on application of the Before and After Appraisal method. The estimated or actual costs of acquiring easements should be carefully reviewed prior to approving the project or approving payment to the sponsor to confirm adherence to this valuation guidance. Where the cost for acquiring easements seems disproportionately high, the FAA office administering the project should consider whether it meets the reasonable cost criterion as discussed in Paragraphs 310 and 1022. Where costs appear to be unreasonable when compared to costs associated with other, more tangible mitigation measures, airport sponsors should be encouraged to consider revising the NCP and developing these means to achieve compatibility. (4) Nonairport sponsors are also eligible for grants to acquire easements only; however, the easement should be written specifically to protect the airport. d. Currently Compatible Land-Use. If the airport sponsor proposes to acquire land presently in compatible use (e.g., parking lot, agricultural, vacant) on the grounds that noncompatible development is highly likely and that local controls are inadequate to prevent that development, and if the FAA has approved the sponsors recommendation in an approved NCP, the acquisition is eligible. In such cases, it is advisable to urge the sponsor to first consider acquisition of an interest less than fee simple (e.g., development rights, easement). If fee simple acquisition is approved, the sponsor should be advised of the requirement for timely disposal. Page 139
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e. Sponsor Assurance Regarding Disposal of Land Acquired for Noise Compatibility. Title 49 U.S.C., Section 47107(c)(2)(A) provides that for land purchased under a grant for airport noise compatibility purposes, the airport owner will dispose of the land, when the land is no longer needed for such purposes, at fair-market value, at the earliest practicable time. Any disposal must assure that the land is re-used compatibly with aircraft noise exposure levels, including land that was purchased within the DNL 65 dB contour and is now subject to "moderate" noise exposure (DNL 64-55 dB) with Stage 3 transition or other airport specific factors. In cases where such land was incompatible with airport noise at the time of acquisition (based on the sponsors selected noise compatibility criteria in the NCP of either the Federal guidelines or the local compatibility standard adopted by the airport sponsor in accordance with Part 150), and the noise levels both now and in the foreseeable future are no longer significant using the standard adopted by the airport sponsor, at a minimum disposal of the land must include a noise avigation easement to protect the airport against noise damages. Where possible, the FAA prefers the property to be reused for non-noise sensitive development to provide a noise buffer around the airport to guard against potential new noncompatible land uses that could not be foreseen at the time the property was disposed. Further, the portion of the proceeds of such disposition that is proportionate to the United States share of acquisition of such land will, at the discretion of the FAA acting on behalf of the Secretary of Transportation, 1) be repaid to the Airport and Airway Trust Fund, or 2) be reinvested in an approved noise compatibility project. Reinvestment of proceeds from the sale of noise land at the original airport is the option preferred by the FAA. See Section 3 of this Chapter for more information on the use of proceeds from the sale of such land.
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qualifying criteria need not be so restrictively applied that it would prevent an incidental number of homes within the project area from receiving the standard package of improvements. For example, if acoustical windows are to be installed in a preponderant number of homes within the project area, eligibility may be extended to an incidental number of homes within the project area, even though they would not qualify for window installation if considered individually. (4) Sponsors must certify to the FAA that the engineering plans and specifications for the noise insulation measures conform to the local building code. (5) A noise level reduction (NLR) of 25-35 dB from outdoor noise levels to indoor levels usually can be achieved with some combination of window and door replacement, ceiling insulation, caulking, weather-stripping, and central air ventilation (or air conditioning as limited below) systems. Therefore, project eligibility will normally be limited to these measures plus before and after noise testing. The target noise level for the interior habitable area is a DNL of 45 dB (refer to Table 1 of 14, CFR part 150). If, for example, existing construction or the location of the structure within the noise contour causes the structure to already meet or exceed the interior target of DNL 45 dB, additional noise insulation normally is not justified. Some limited exceptions may apply, as described below. APP-520 should be consulted if additional measures are recommended. (6) Sponsors may offer a continuous positive ventilation system or air conditioning to owners of eligible structures in conjunction with noise insulation projects. The goal of a continuous positive ventilation system is to provide two volume changes of air per hour. This roughly equates to a condition where windows in the structure are open. Likewise, an air conditioning system will provide air exchanges along with temperature and humidity reduction. The added benefits are preferred by most residents. Either option preserves the noise attenuation benefits achieved with the insulation project by eliminating the need to open windows to maintain an acceptable level of indoor comfort. However, the FAA believes that an air conditioning system would be comparable in cost, and perhaps less expensive than customized air handling systems. Consequently, air conditioning could be offered as an eligible noise attenuation measure in lieu of the positive air handling equipment. There is no need to compile a price comparison and to prorate cost differentials between options offered for selection. Two caveats should be discussed with sponsors and recipients who receive air conditioning or a continuous positive ventilation system: (a) The recipient will be expected to operate the system installed under the AIP grant to preserve the noise attenuation benefits achieved with the insulation project. Failure to use the installed system will negate the benefits and will not be grounds for making complaints about noise levels. (b) Property owners and residents should be presented with information about utility and maintenance costs for the installed equipment. Increased utility costs are to be expected. Also, routine maintenance costs should be planned to keep the system operating at peak efficiency. Maintenance service contracts tend to minimize disruptions by providing regular checks of the installed system. The costs of these contracts are a responsibility of the property owner. (7) Sponsors are encouraged to obtain a noise easement in return for the noise insulation provided by the project, but it is not a mandatory AIP requirement. (See Paragraph 808.). b. Residential Noise Insulation. (1) The design objective in a residential noise insulation project generally should be to achieve the requisite NLR when the project is completed. (This is mathematically equivalent to achieving a DNL of 45 dB in all habitable rooms.) For residences located in areas where exterior noise exposure is DNL 65 dB, the requisite NLR provided by the structure should be at least 20 dB in major habitable rooms. The requisite NLR should be increased commensurate with any increase in exterior DNL above 65 dB. The project design should be based on exterior DNL and the existing NLR in the structure. The existing construction must provide less than the needed noise level reduction for the noise exposure level at the Page 141
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location of the residence. For purposes of equity in a neighborhood where noise insulation has taken place, the following example may be considered as a guide. A house having 30 dB noise level reduction is located at the DNL 68 dB. It is already compatible because the interior noise level would be approximately equivalent to 38 dB, well below the target 45 dB. Although such a dwelling is compatible under the Federal guidelines of part 150, some lesser level of noise insulation (replacement of depreciated windows, storm doors, caulking and weather stripping, etc.) may be provided to assure conformity of improvements and perceived equity of application in the project neighborhood. (2) Since it takes an improvement of at least 5 dB in NLR to be perceptible to the average person, any residential noise insulation project should be designed to provide at least that increase in NLR as a marginal minimum. (3) Examples. (a) A residence located in an area where the DNL is 73 dB has existing NLR of 26 dB. The requisite NLR in that area is 28 dB (73 - 45). However, to meet the requirement for increasing the NLR by not less than 5 dB, a noise attenuation project for that residence should result in NLR of 31 dB (26 + 5). (b) A residence located in an area where the DNL is 67 dB has existing NLR of 16 dB. The requisite NLR in that area is 22 dB (67 - 45). Therefore, the noise insulation project should be designed to increase the NLR by at least 6 dB (22 - 16). c. Noise Insulation in Schools. (1) For schools, the usual design objective for classroom environment is a time-average Aweighted sound level of 45 dB resulting from aircraft operations during normal school hours. As with residential noise insulation, a school project should reduce existing noise levels by at least 5 dB for the same time-average school hours time frame. (2) Eligible schoolrooms include classrooms, libraries, offices, and other rooms for which noise insulation is specifically justified because of the substantial and disruptive effect of aircraft noise. Facilities, such as gymnasiums, cafeterias, and hallways are usually not eligible, unless the facility is also used substantially for purposes that qualify for noise insulation. Consequently, eligibility for these areas should take into consideration the extent they are used for instructional activities and assemblies. d. Other Buildings. Churches, concert halls, offices, and other structures identified as noncompatible, and for which noise insulation has been recommended by the airport sponsor in its NCP and approved by the FAA, are also eligible. Such proposals should be evaluated carefully on a case-by-case basis and should involve consultation with APP-520 and APP-600.
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In cases where more than one sponsor is expected to engage in noise insulation programs, however, the airport sponsor should be encouraged to acquire the equipment and make it available to other local agencies as needed. c. Eligibility for a fixed (permanent) monitoring system will be limited to circumstances where sponsors can clearly show that portable monitors would be inadequate. Fixed noise monitoring equipment is ineligible where the Part 150 noise exposure maps (existing and forecast) show no noncompatible land uses. In all cases, sponsors should be encouraged to acquire the least costly system that will satisfy the purposes used to justify the project. d. A noise-monitoring proposal should not be an end in itself, nor an instrument for enforcement of a noise rule or procedure. Rather, noise monitors should provide an ongoing stream of useful products and data in support of the overall noise compatibility program. A primary justification should be to provide information necessary to carry out other noise compatibility projects in the approved NCP, or to monitor progress in achieving noise compatibility objectives. Some sample uses of noise monitoring data include: (1) Selection of dwelling units or other structures for noise insulation; (2) Pre- and post-insulation interior/exterior noise measurement; (3) Compliance with a monitoring requirement of State noise law; (4) Aiding implementation of other noise compatibility projects; or (5) Providing noise data for future revision of the NCP. e. Allowable costs include system design, noise monitoring equipment, dedicated data processing equipment and software, equipment installation, site preparation and one-time costs for installation of electrical power and data transmission lines. All costs for permanent monitoring systems should be minimized. Sponsors should be encouraged to obtain low cost monitoring locations by using existing utility poles and easements, accessible public land, or donated access to private property. f. Costs for vehicles to be used in a noise-monitoring program, general-purpose computer software, operating costs, and equipment to be used only for public information purposes (equipment for visual presentations at public meetings or hearings, for example) are not allowable.
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c. Noise barriers must be designed to ensure that they do not violate airport design standards or Part 77 surfaces. d. Landscaping costs in conjunction with noise barrier or berm construction are allowable only for materials necessary to stabilize soil against wind or water erosion. e. If not done in conjunction with evaluation of alternatives in the Part 150 study, a cost-benefit analysis should be conducted which compares the effectiveness of the proposed noise barrier with other feasible alternatives, such as land acquisition and noise insulation. If other feasible alternatives were not approved in the NCP, a Part 150 update comparing the effectiveness and costs of other alternatives may be required to permit the use of noise set-aside funds. (Consult with APP-600 if additional guidance is needed.) Noise barriers constructed outside of the Part 150 process may not be paid for using the noise set aside.
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b. The project must be at the same airport or in the vicinity as that where the land sale proceeds were realized. c. The same sponsor who disposed of the land and realized the proceeds of the sale must sponsor the new project. d. When Federal assistance is used to acquire land, and the land is subsequently sold and the proceeds are used to acquire additional land, that acquisition is also subject to the provisions of the Uniform Act, even if no new Federal funds are provided for the later acquisition. (Regional/General Counsel Opinion 3/1/88) By extension, it follows that other conditions and assurances are renewed when such proceeds are used in follow-on projects. The sponsor should be advised of this continuing obligation early in the original grant application process, if possible, but no later than prior to use of the proceeds in a new project. The following actions are normally applied to facilitate tracking these sponsor obligations: (1) Award a grant with new (current year) Federal grant funds when a project is to be undertaken with proceeds from the sale of noise land to ensure sponsor/FAA cognizance of the renewed grant obligations; and/or (2) Use the proceeds for noise insulation or another noise related improvement project which uses up the funds and eliminates the need to track the proceeds and sponsor obligations through subsequent iterations; and/or (3) Amend the original grant to make use of the proceeds if the grant amendment requirements and limitations can be met.
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procurements where the FAA believes such review is needed to ensure that the item or work specified meets FAA standards. a. Pre-Award Review Required. Pre-award review of proposed contracts is required in the following cases: (1) The sponsor does not comply with the standards promulgated in Title 49 CFR, Part 18.36, Procurement; (2) The proposed contract is to be awarded on a sole source basis or when only one bid or proposal is received in which the aggregate expenditures exceed $100,000 (all proposed contracts specifying brand name products shall be considered sole source procurements); (3) The apparent low bidder under a formally advertised procurement is determined by the sponsor to be a non-responsive and/or not responsible bidder (the FAA must review and concur in this determination and document it in the project file); or (4) A review of the bid abstract reveals the possibility of bid improprieties (See Paragraph 1053). b. Pre-Award Review Optional. The FAA Airports Office has the option to impose pre-award review when: (1) Sponsors are working on their first assistance project supported by DOT and have not yet been reviewed for compliance with the standards contained in Title 49 CFR, Part 18.36, Procurement; (2) Sponsors request pre-award assistance for proposed contracts; (3) Contracts are awarded for automatic data processing in accordance with Paragraph C1 of Attachment B to OMB Circular A-87; (4) Contracts are repeatedly awarded to the same firm; (5) Purchasing is performed outside the sponsors established procurement system or office; (6) Proposed construction contracts are to be awarded through the competitive proposal procurement method; and/or (7) FAA determines that the circumstances warrant and requests such documents.
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e. a proposed contract modification changes the scope of a contract or increases the contract amount by more than $100,000.
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determination should be documented in the project file (See Paragraph 912 for Award to Other than the Apparent Low Bidder). b. Competitive Proposal. Competitive proposals are used when it is not appropriate to use the sealed bid method. This method would be used, for example, when complete and adequate specifications or purchase description are not available, or when more than one responsible bidder is not reasonably expected to bid, or when the selection of contractor cannot be made principally on the basis of price. Generally, competitive proposals include price but elements of price are prohibited when being used for selection and award for professional services as described below. (1) Competitive proposals are solicited from an adequate number of qualified sources. Additionally, the request for proposals (RFP) is also publicized. The request for proposals must identify all the factors that will be used to evaluate the proposals and their relative importance. Under this method (except for professional services in Paragraph (2) below), Sponsors may be permitted to pay a reasonably higher price for a better quality product if justified. Since this de-emphasizes the price concept, the approval to use competitive negotiations is given sparingly except for the required use for procurement of professional services. (2) The procurement of certain professional services is accomplished through a special form of competitive proposal. The nature of the services dictates the use of this method rather than the professional credentials of the employees to be used. These services include program management, construction management, planning and feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping, and related services. The competitive negotiation method recognizes that the expertise of firms (or individuals) providing professional services varies. Although several firms may be qualified to provide the professional service required, some of them may have more expertise in the particular area than others. For this reason, procurement (selection) under this special competitive negotiation method considers the technical qualifications of the competitor, subject to negotiation of fair and reasonable compensation (price). Sponsors may not request price or cost data prior to determination of the best qualified firm even if the data is submitted in a separate sealed envelope and further, price may not be used as a selection factor in the procurement of these services. Sponsors may use competitive proposals for procuring engineering and architectural services whereby only the offerors technical qualifications are evaluated for selection. In these cases, the request for proposals requires that firms only submit their technical qualifications for performing the project. The best-qualified firm is then selected subject to the negotiation of a fair and reasonable price. If the sponsor and the best-qualified firm cannot agree upon a price, negotiations with that firm are terminated. Price negotiations are then entered into with the second best qualified firm. The same procedure should be followed with the third firm, fourth firm and so on until a fair and reasonable price can be negotiated with a qualified firm. Once negotiations have been terminated with a firm and begun with another, they cannot be reopened with the former firm. Advisory Circular 150/5100-14 provides further details on the procurement of engineering and architectural services through competitive negotiation. c. Small Purchase Procedures. The procurement process under small purchase procedure is less formal than either of the previously discussed methods and may only be used for procurements of less than $100,000. The number of sources solicited would be determined by the number of qualified sources available, the time frame involved, and the dollar value. Oral solicitation is acceptable for very small purchases, but should be adequately documented. Except for very small purchases, a letter request should be issued as a minimum, and a written proposal should be solicited. d. Noncompetitive Proposal. (1) Although it is preferred that all procurements be made on a competitive basis, a noncompetitive proposal is permitted under the following circumstances: (a) The item is available only from a single source; Page 150
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(b) Public exigency or emergency when the urgency for the requirement will not permit a delay incident to competitive solicitation; (c) After solicitation of a number of sources, competition is determined inadequate; or (d) The FAA authorizes noncompetitive negotiation. (2) Under (1)(d) above, regions may authorize noncompetitive negotiation for professional services if the cost of the contract is not expected to exceed $10,000 and the professional services are incidental to the grant project. Typical contracts of this nature include: (a) Services to review legal sufficiency of the grant; (b) Appraisal; (c) Grant audit services performed as part of a project; and (d) Independent project cost estimates. (3) Care must be exercised in allowing noncompetitive contracts for legal services involving land acquisition (especially those which may include condemnation proceedings) since these types of contracts may exceed the $10,000 limitation and, in some cases, could be considered a prime rather than an incidental part of the project. Similarly, engineering/architectural services are normally a prime part of the project (rather than incidental); and, therefore, noncompetitive proposal would not be appropriate. (4) If a sponsor knowingly writes a specification that is noncompetitive (and, therefore, knows the specification is actually sole source), it must notify the FAA in advance that the specification is, in fact, sole source and then justify this procurement method. (5) Utility companies owning service lines or other facilities generally do not permit work on their property or equipment by anyone other than their own employees. Accordingly, contracts for installation, extension, removal, and relocation of public utility facilities may be entered into through a noncompetitive proposal. However, the contracts, cost estimates, and plans for such work must be reviewed and approved by the FAA. (See Paragraph 594.) e. Other Methods of Contracting. Other methods of contracting may be appropriate when used for an AIP project. One such method is considered a two-step procurement in which a general scope of the project is provided to prospective bidders. A technical proposal is submitted and the sponsor determines which bidders provide a technical proposal that meets the requirements of the general scope. An invitation for bids that encompasses the general scope and incorporates a bidders technical proposal by reference is issued to each bidder whose technical proposal is deemed acceptable. The bidder then bids on the general scope as well as its technical approach and the responsible and responsive bidder submitting the lowest bid is awarded the contract. Other methods that may have some use under AIP are various forms of Design-Build. Except in those circumstances under which a project has been approved under a Design-Build pilot program, sponsors should be cautioned that the design-build contracting must still meet the requirements of both Paragraph 904(b)(2) above for professional services as well as the price competition for construction. In addition, sponsors should be cautioned that except under limited circumstances (See Chapter 3, Section 2) costs incurred prior to a grant are not necessarily reimbursable so the contract phasing should reflect the need to perform construction services after a grant is issued.
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equipment, airport lighting, aircraft rescue and firefighting equipment, etc. In some cases, it has also published approved lists of items meeting FAA plans and specifications. However, the fact that a piece of equipment is not on an approved list, in and of itself, does not make the equipment ineligible or not acceptable. For such equipment, the sponsor will have to establish, to FAAs satisfaction, that the equipment does, in fact, meet the standards and specifications. If the equipment does not meet the standards and specifications, it is not eligible for Federal aid. If the sponsor elects to install equipment, which has not been approved by FAA and cannot meet standards at the time of commissioning, then the sponsor must take whatever steps necessary to replace the equipment or the appropriate costs will be disallowed. b. Where FAA has published specifications for specific items, the specifications should be used with no modification, unless the sponsor can justify to FAA such modification. Some sponsors in the past have altered or required features not contained in the advisory circulars for items such as airfield lighting and aircraft rescue and firefighting equipment. Sponsors should be advised that, if not approved by FAA in advance, these alterations could jeopardize FAAs ability to fund the purchases through AIP. A sponsors solicitation should contain only FAA specification and related designation (e.g. AC 150/5345-46, L-850A, runway centerline fixture). Solicitations should not include limiting factors, which have the effect of restricting competition, which requires manufacturers to radically change design or make other changes to their equipment unreasonably. Inclusion of limiting factors could cause a defacto limitation of competition. c. While FAA can appreciate the sponsors desire to have uniformity of equipment, both for maintenance as well as for aesthetic purposes, Federal regulations regarding the bidding process require open and free competition. This is not to imply that there may not be reasons for specifying a certain type of equipment. If such is the case, the sponsor must submit a justification for such restriction to FAA for consideration. An example of such justification might be that the equipment quantities to be acquired represent an insignificant number (for example, less than 5%) of the overall equipment in use and, therefore, do not justify the creation of duplicate inventory. In some cases a sponsor may request equipment to match existing equipment. If the effect of such request is, de facto, the establishment of sole source procurement because of the lack of interchangeability of parts or equipment, then this type of wording should not be allowed in the solicitation. Open and free competition is to be the norm and not the exception. d. To allow sponsors flexibility in purchasing equipment, they should be permitted to select and specify in their bidding documents, equipment features, and characteristics when FAA standard specifications for such equipment allow a choice. However, in selecting those features and characteristics, the sponsor must assure FAA that at least two manufacturers will be able to meet the selected specification with their standard production model. In cases where sponsor selections are likely to result in only one qualified manufacturer, field personnel must secure from the sponsor sufficient justification for those selected features that create the exclusivity since the resulting procurement would be noncompetitive. e. FAA Airports Offices may approve procurement of equipment containing additional features not contained in FAA specification. Unless the additional features represent state-of-the-art development, Federal financial participation shall be limited to those features incorporated in the specification and some basis must be established for determining the cost of nonessential items. State-of-the-art features may be eligible for participation if approved by the Office of Airport Safety and Standards (AAS) and justified by the airport sponsor. In no case can these added features (other than state-of-the-art ones) result in the elimination of competitive bidding by specifying a design limited exclusively to one manufacturer. f. Field offices should strongly encourage sponsors to send nonstandard specifications for equipment to industry for review and comment prior to issuance of the Invitation for Bids (IFB). This will allow defects in the specifications to be identified in advance, especially if the specification is proprietary.
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Using the information and input from industry, correcting or modifying the specification, the sponsor can certify to FAA that at least two manufacturers will be able to meet the proposed specification in the IFB. g. If a sponsor knowingly writes a proprietary specification (therefore, knows the specification is actually sole source), it must notify in advance FAA that the specification is, in fact, proprietary and then justify this procurement method.
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908. PROCUREMENT OF ENGINEERING, ARCHITECTURAL, AND OTHER PROFESSIONAL SERVICES FOR SEVERAL PROJECTS.
Advisory Circular 150/5100-14provides guidance for airport sponsors in the selection and employment of architectural, engineering, and planning consultants under FAA airport grant programs. Firms competing for engineering, architectural, and other professional services must be selected on their qualifications subject to the negotiation of a fair and reasonable price. Consequently, it would be permissible for the sponsor to procure engineering and architectural services for several grant projects through one procurement action if the following criteria are met: a. The parties competing for the work must be advised that the work is expected to be accomplished during the course of several grant projects; b. The parties shall also be advised that possibly all or some of the services may not be required and that the sponsor reserves the right to initiate additional procurement actions for any of the services included in the procurement; c. The scope of the proposed development work and required services must be defined along with the expected schedule of project initiation. The scope of the development must be specific rather than general; d. Unless otherwise approved in writing by the appropriate FAA Airports Office, the services included in the procurement shall be limited to those projects that can reasonably be expected to be initiated within five years of the final procurement selection. This time limitation has been established so that competition is not unduly restricted. In some circumstances (e.g. a project that will take many years to complete a safe, usable unit), it may be permissible to approve an engineering contract that involves services beyond the five-year limitation. However, APP-500 shall be consulted prior to approval for periods exceeding five years: e. The negotiation of the fee will usually be limited to the services expected to be performed under the initial grant; f. The contract should be limited to the services covered by the negotiated fee. Subsequent services should be covered by amendment to the initial contract or subsequent contracts. However, at the time the initial contract and cost analysis are submitted for review, the sponsor should notify FAA of the subsequent services that were included in the procurement; g. The negotiation of the fee for subsequent services (i.e. services included in the procurement action but not included in the initial contract) shall occur at the time those services are needed. The sponsor must perform a cost analysis for each of these negotiations. If a price cannot be agreed upon between the sponsor and the selected firm, then negotiations are terminated with that firm. However, rather than entering negotiations with the firm ranked in the next place at the time the initial contract was negotiated, a new procurement action must be initiated.
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b. On any solicitation to be funded in part with Federal grant money, the sponsor must award to the lowest responsive and responsible bidder on the entire contract, except as in c below; c. If the low overall bid contains a cost for the eligible work higher than that of other bids, Federal participation shall be based on the lowest amount bid for the eligible work by a responsive and responsible bidder, unless it is obvious from a comparison with other bids or the engineering estimate that the bid containing the lowest price for the eligible work is unbalanced and the price of the eligible item is unreasonably low. In this case, FAA Airports Office should limit Federal participation to the next lowest reasonable bid on the eligible work.
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911. BONDING.
Bonding requirements for construction are found in Title 49 CFR, Part 18.36(h) and allows sponsors to follow their own requirements relating to bid guarantees, performance bonds, and payment bonds for construction unless the contract or subcontract exceeds $100,000. For those contracts and subcontracts exceeding $100,000, FAA may accept the bonding policy and requirements of the sponsor provided the appropriate FAA Regional Office has made a determination that the Federal Governments interest is adequately protected. The determination should be adequately documented in the project file. If such a determination has not been made, the minimum requirements shall be as follows: a. Bid Guarantee of Five Percent. Each bidder shall submit a bid guarantee equivalent to five percent of the bid price with its bid. The bid guarantee shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of its bid, execute such contractual documents as may be required within the time specified. b. Performance Bond of 100 Percent. Each contractor shall submit a performance bond for 100 percent of the contract price. A performance bond is one executed in connection with a contract to secure fulfillment of all the contractors obligations under such a contract. c. Payment Bond of 100 Percent. Each contractor shall submit a payment bond for 100 percent of the contract price. A payment bond is one executed in connection with a contract to assure payment, as required by law, of all persons supplying labor and material in the execution of the work provided for in the contract.
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copy of the protest (or have the bidder do so) to the ADO or regional Airports office. The bid opening is to be delayed, if necessary, until the protest is satisfied (including rejection) or to allow time for the sponsor to issue an addendum, as appropriate. Since the most common occurrence in the grant program under this category is the use of proprietary specifications, the project manager should review the solicitation, especially if the sponsor has certified that the plans and specifications meet FAA standards, are nonproprietary, and are in accord with Section18.36. The fact that FAA may have approved the specification or accepted the sponsors certification is obviated by the receipt of the bid protest. Because of the complexity of some of the equipment being used by sponsors today, it may be necessary to seek the advice of headquarters personnel, such as found in AAS-100 and 200, on technical or design issues. If the sponsor insists on opening the bids when there is a protest outstanding, they should be advised that FAA will not approve awarding of a contract and that Federal funds may not be used. (3) If a protest of this nature is made after bid opening (and assuming that the bid package has been available for more than 10 working days) and if local procurement regulations allow, the sponsor may have the option of rejecting the protest without action, even if, in fact, the protest is valid. This is based on a General Accounting Office principle that a bidder normally has sufficient time to protest a defective solicitation prior to bid opening and not after bid opening. (4) There are times when it is not practical to have a 30 or 45-day solicitation period for all bids. Sometimes a sponsor may be able to justify a shorter period of time. If the sponsor allows 10 days or less for bid proposals, then the prospective bidders should be allowed to protest a defective specification up to contract award. d. Improper Evaluation of Bids. While protests pertaining to defective solicitations are made prior to bid opening, there is another type of protest that occurs after bid opening (the time period for filing is dependent upon the provisions of local law). This involves an improper bid evaluation. A bidder may be improperly disqualified or the sponsor may fail to disqualify the apparent low bidder for a defective bid. Here, the most common question deals with bid responsiveness and the responsibility of the bidder. If the apparent low bidder is determined by the sponsor to be non-responsive or not responsible, FAA must concur in the determination (See Paragraph 912). If an unsuccessful bidder protests that the low bidder was either non-responsive or not responsible, FAA must ask the sponsor to provide information on how it made its determination. In view of the protesters complaint, FAA must also concur in this determination.
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This type of action is not acceptable and would be in violation of, Title 49 CFR, Part 18. The sponsor is interfering with the open and competitive market. As long as the material from supplier A meets the standards and specifications, the sponsor may not specify with whom the contractor shall do business. c. A Contractor uses Quote from Supplier A and is Apparent Low Bidder. After Awarded the Contract, the Contractor is Told by the Sponsor to Furnish Material from Another Supplier at a Higher Cost. The Sponsor will Pay the Additional from its Own Funds. There has been a long-standing policy by OMB that this is not acceptable. This is an obvious attempt to circumvent the procurement regulations and is not to be allowed. Sponsor Category Plans to Procure Equipment under the Grant Program. Can He or Should He Break Up the Order to Accommodate Several Suppliers/Manufacturers or Should He Purchase as a Complete Usable Unit, E.G. Lighting Fixtures and Cans.This practice is left up to the discretion of the sponsor. By breaking up the order, the sponsor may be able to meet its overall Disadvantaged Business Enterprise goals more easily. However, there may be inherent problems using this technique, such as delivery dates, compatibility of equipment, having to deal with more than one vendor or contractor, etc. Normally, FAA project manager should not get involved in this type of decision unless there are extenuating circumstances.
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b. Contract bonus for expedited construction completion. Contracts sometimes provide for payment of a bonus to the contractor for completing construction ahead of schedule. Under airport aid grants, this is not an item to be considered in determining reasonableness of construction costs. Therefore, such bonus payments are ineligible. c. Escalator Clauses. Unless otherwise authorized by APP-1, FAA will not participate in any costs in a contract that are subject to an escalator clause. For example, during periods of rising crude oil prices occasionally a contractor will request a clause providing for an increase in the cost of bitumen be inserted into a paving project contract. Such authorization will only be provided in instances where short-term price fluctuations in the market indicate that expected costs cannot be accurately estimated.
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solicitation or contract is for auditing services regardless of amount. See the Standard Solicitation and Contract Language provided on the FAA Airports web site. d. All Contracts over $100,000. Contracts in amounts in excess of $100,000 shall contain a provision which requires compliance with all applicable standards, orders, or requirements issued under Section 306 of the Clean Air Act (42 USC 7602, et seq.)), Section 508 of the Clean Water Act (33 USC 1368), Executive Order 11738, Environmental Protection Agency regulations (40 CFR Part 15), and Title 49 CFR, Part 20. e. All Construction Contracts. All contracts involving labor must contain provisions necessary to ensure that in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to qualified individuals who are Vietnam era veterans or disabled veterans, who have been honorably discharged from such service. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates. The clause can be found in Advisory Circular, AC 150/5100-6, Labor Requirements for the Airport Improvement Program. f. All Construction Contracts over $2,000. (1) Davis-Bacon Requirements. All construction contracts over $2,000 need to include a provision for compliance with prevailing wage rate requirements of the Davis-Bacon Act (40 USC 3701 et seq. to a-7) and the Department of Labor (DOL) implementing regulations (29 CFR Part 5). Under this Act, contractors are required to include the contract provisions in Section 5.5(a) of 29 CFR Part 5, and to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in the wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less often than once a week. The sponsor shall place a copy of the current prevailing wage determination in each solicitation, and the award of a contract shall be conditioned upon the acceptance of the wage determination. The sponsor shall report all suspected or reported violations to FAA. (AC 150/5100-6 contains detailed guidance in this area along with the appropriate clauses.) (2) Contract Work Hours and Safety Standards Act Requirements. The contracts must include a provision for compliance with Sections 103 and 107 of the Contract Work Hours and Safety Standards Act ( formerly 40 USC 327-330) as supplemented by the Department of Labor regulations (29 CFR Part 5). Under Section 103 of the Act, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard workweek of 40 hours. Work in excess of the standard workweek is permissible provided that the worker is compensated at a rate not less than 1.5 times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. Section 107 of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions that are unsanitary, hazardous, or dangerous to health and safety as determined under construction, safety, and health standards promulgated by the Secretary of Labor. These requirements do not apply to the purchases of supplies, materials, or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. Appropriate clauses can be found in AC 150/5100-6, Appendix 2. (3) Copeland Anti-Kickback Act Requirements. All construction contracts over $2,000 must include a provision for compliance with the Copeland Anti-Kick Back Act (18 USC 874) as supplemented in Department of Labor regulations (29 CFR Part 3). This act provides that each contractor shall be prohibited from inducing, by any means, persons employed in the construction, completion, or repair of public work to give up any part of their compensation. The sponsor must report all suspected or reported violations to FAA. . g. All Construction Contracts over $10,000. Executive Order 11246, Equal Employment Opportunity, applies to all construction contracts over $10,000. Appropriate clauses from 41 CFR Part 60 must be included in all applicable contracts.
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h. Contracts for Steel or Manufactured Products. Buy-American preferences established within Title 49 U.S.C., Section 50101 require that the steel and manufactured products used for AIP-assisted projects must be produced in the United States. This provision may be subject to the following four exceptions: (1) applying the provision is not in the public interest. This is reserved for significant public interest determinations; (2) the steel or manufactured product is not available in sufficient quantity or quality in the United States; this refers to the manufacturing capability of the United States and whether it can meet demand; (3) the cost of components and subcomponents produced in the United States is more than 60 percent of the total components of a facility or equipment, and final assembly has taken place in the United States. (The term final assembly for purposes of this provision should be substantial rather than a light bulb put in a vehicle.) The application of this subsection is determined after bid opening. FAA Airports Offices should use the cost of the facility being constructed in determining the cost of the components. For example, if a project is to construct a runway, the components would cover things such as rebar, lights, etc. If a project is for runway lights only, the components would be the lenses, etc. Depending on the project scope, therefore, a piece of equipment may be found to not comply with this section in one instance and be acceptable in another; or (4) applying this provision would increase the cost of the overall project by more than 25 percent. The FAA project manager is responsible for assuring that the sponsor inserts the appropriate Federal clauses into its contracts and solicitations. A special condition to be used in grants is found in Appendix 7.
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which the contractor reviews designs as they evolve to provide expertise for the construction phase. The CM-A-R and the sponsor also negotiate a ceiling amount for the construction beyond which the CM is at-risk. b. Task Order Contracting. In many procurement systems, these are sometimes referred to as indefinite quantity/indefinite delivery contracts and other similar contracting instruments. Under the most common approach to this type of contracting, the sponsor would procure an annual need such as paving or floor finishing (there could be many areas adaptable to this form of contracting.) The sponsor would estimate a ceiling amount and most frequently a maximum per order amount. The contract is also procured on the basis of criteria such as standard fees or unit rates and provides the standard contract clauses. When a contractor is needed for a relatively small job within the category, the contractor and sponsor will negotiate by applying the basic agreed upon fee against the scope of the specific project. No further competition is necessary if the task order contract was competed within the same year. If a sponsor wishes to use this tool beyond a 12-month period, regions and ADOs should advise sponsors that such action would require agreement with FAA in order for the cost to be found allowable. The most important factor is a determination that there is no necessity to recompete the agreement due to similar economic conditions, stability of wages and fringe benefits under Davis-Bacon determination and similar cost areas.
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separate technical and price proposals. Technical proposals are evaluated first, using a numerical "points earned" system. Then, price proposals are opened and prices are factored into the "points earned" system to determine the final selection. A common method of "scoring" price information is to divide the price by the technical points score, and the resulting low score wins. (3) Note that the CPS process may have more costs than the QBS method. Under the CPS, the Sponsor must bear the cost of design criteria package preparation. Further each short listed design-build firm/team must bear the considerable cost of preparing a technical proposal with preliminary drawings and outline specifications, along with a conceptual cost estimate to establish a price. To control this substantial submittal cost, Sponsors should avoid short lists longer than 3-4 firms/teams. Sponsors should also consider granting a stipend to each unsuccessful firm/team in return for the right to use any concepts from the unsuccessful teams/firms' technical proposals for the project. e. Limitations. The following are some limitations on the approval of projects for design-build contracting: (1) The selection process must be permitted under State or local law; (2) FAA must approve the use of design-build in advance; (3) FAA must approve the method of design-build used; (4) Sponsors must provide a schematic design adequate for FAA to approve the grant and assure that the contract will be executed after competitive procedures; (5) Sponsors must demonstrate that the use of the contracting method will be cost-effective and will expedite the project; (6) Sponsors must show that the contracting method will safeguard against conflict of interest; (7) The selection must be as open, fair and objective as the competitive bid system and at least 3 or more bids will be submitted. f. Airport District Offices or regional offices, as appropriate, should advise airport sponsors that to be considered, the sponsor should, as a minimum, submit the following: (1) A full description of the project together with general sketches of proposed work; (2) A description of the contracting process to be utilized as well as steps to be taken to assure that 3 or more companies will bid on the proposed project, including a statement that the type of project has an adequate number of firms involved regularly in the execution of design-build contracts; (3) An analysis of the cost-savings and/or time savings that will be gained by the use of the design-build construction method; (4) A statement describing what safeguards are in place to prevent conflicts of interest and that the process will be as open, fair and objective as the normal contracting process; (5) A statement citing specific references to the state or local law that permits the use of designbuild contracting methods.
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Section 5.
950. GENERAL.
SUSPENSION
AND
DEBARMENT
Title 49 CFR, Part 29, Governmentwide Debarment and Suspension (Nonprocurement), was revised and became effective October 1, 1988. The suspension or debarment of an individual or a company by one Federal agency now has Governmentwide effect. All departments within the Executive Branch of the Federal Government have adopted GSA and OMBs common rule on debarment and suspension.
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953. DESIGNATIONS.
a. Debarring/Suspending Official. The Administrator has designated the Airports Division Managers as debarring and suspending officials. This designation may not be delegated. b. Coordinator. APP-520 will serve as the national coordination point and should be notified when a party has been suspended, debarred, or voluntarily excluded from contracts under AIP. They, in turn, will notify all regions and the Assistant Secretary for Administration (OST) for the purposes of inclusion on the Non-procurement List.
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b. The fees or reimbursements are reasonable and eligible as shown by a cost/price analysis; c. The type of contract is appropriate; and d. The engineering/consultant firm and the proposed contract terms are acceptable. Section 47105(d) of the Act authorizes the Secretary to require certifications from sponsors that they will comply with statutory and administrative requirements. Use of sponsor certifications for selection of engineering, architectural, professional services, and planning consultants is encouraged. A copy of the certification form is contained in Appendix 25. Acceptance by the FAA of the sponsors certification does not limit the FAAs ability to request and review documentation to ensure the accuracy of the certification.
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proprietary items, the FAA Airports Office must review the sponsors justification for sole source procurement to determine if the project warrants such authority. b. Sponsors Engineers Report. A sponsors engineers report, setting forth the general analysis and explanation of reasons for design choices by the engineer, must be submitted with the plans and specifications unless deemed inappropriate by the field office. The report should, at a minimum, provide the following information: (1) Design Computations. The report should include a summary of the design computations used in the design of major development items. Use of FAA Form 5100-1 for the design pavement thickness is required. A summary of computations and a description of the method used to conduct the drainage design must be presented. The engineer is not required to submit earthwork cross-sections or mathematical calculations for designs but should have them available for review by FAA representatives if requested. (2) Reasons for Selections of Design Materials and Equipment and Modifications to Standards. The engineers choices and recommended modifications will, in most cases, be influenced by service records for comparable construction and by cost comparisons. The report should include concise statements and cost comparisons that justify selections made and modifications to standards proposed in the project. See Order 5300.1, Approval Level for Modification of Agency Airport Design and Construction Standards for additional information on modifications to design and construction standards. (3) Other Elements. The engineer must outline related project work elements to be done without AIP assistance, including details on how the work is to be accomplished, and how it relates to the AIP work. Work to be done by utility companies must be described in sufficient detail to verify adequate funding for the work. (4) Support Data. The report should also include supporting data and itemized project cost estimates with source information. Any unique circumstances that may influence adjustments of existing project cost estimates should be explained. c. Conditional Approval. If the certification of plans and specifications is not received from the sponsor, the FAA may conditionally approve plans and specifications to permit initial advertising of bids, even though the plans and specifications may require minor revisions. The FAA Airports Office should use the conditional approval procedure only when the revisions are non-controversial and do not significantly affect the design and engineers estimate. The FAA Airports Office should, with the signature giving conditional approval, make a note of reference to the letter that discusses the conditions. Removal of the conditions after acceptable revisions will require a subsequent notation canceling the condition. Receipt of revisions and cancellation of the conditions should occur prior to issuance of the grant offer. (See Appendix 9, Paragraph 14 for special condition on preliminary plans and specifications.)
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(2) The intergovernmental review process is supplemented by provisions of 49 USC 47106(c)(1)(A). It requires that, upon request, a large or medium hub must provide airport layout plan amendments (and an associated master plan) to the relevant Metropolitan Planning Organization (MPO) for airport development projects if the work involves location of an airport, runway or major runway extension. Certification by the airport that the requirement was met may be satisfied in grant agreement or other appropriate documents. b. FAA Responsibilities. (1) Sponsor Notification. The FAA is responsible for informing potential sponsors of AIP grants of the required intergovernmental project review process. This process normally allows 60 days for State and local agencies to complete the review. Sponsors should be notified of the name and address for single points of contact or other entities to be contacted prior to grant application submittal. The planning projects or other channels of information may be used to inform potential sponsors. (2) Treatment of Comments. When the intergovernmental project review process results in comments, the FAA should pursue one of the following options: (a) Accept the Comments. That is, do as the State or local agency recommends; (b) Reach a Mutually Agreeable Solution with the State or Local Agency. This solution may differ from the original State or local agency position on the matter; or (c) Reject the Comments. While the FAA is not required to accept comments or discuss another solution, a written explanation of the final decision should be provided as a courtesy to the single point of contact. The explanation should be provided at a minimum of 15 days before beginning work on a project. If no single point of contact exists, the explanation should be sent to other parties that initially provided comments. Where 49 USC 47106(c)(1)(A) is involved, the MPO should receive the explanation. An informational copy of the explanations should be sent to the DOT Assistant Secretary for Administration. (3) Early Project Review. Sponsors regularly engage environmental consultants to prepare environmental assessments as part of the FAAs National Environmental Policy Act (NEPA) process. State agencies reviewing the assessments, capital improvement programs, or other planning studies use the States review and comment process. (a) The intergovernmental project review should be accomplished as early as feasible. The early project review in Order 1200.21 is incorporated into Order 5050.4 and other NEPA guidance. (b) When the reviews are accomplished as described in subparagraph b(3)(a), intergovernmental project review does not need to be repeated during the implementation stage unless the scope of work changed, substantial new information has become available, or significant time lapsed. (4) Exempt Projects. Projects that do not significantly affect State or local governments beyond airport boundaries are exempt from intergovernmental review, unless coordination is requested under a States review and comment process or 49 USC 47106(c)(1)(A). (5) Process Changes. Formal changes in a States intergovernmental project review process shall be forwarded to the DOT Assistant Secretary for Administration and implemented within 90 days of receipt from the State.
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been offered, in accordance with Section 47106(c) of the Act. In addition, there may be other occasions when either the opportunity for a public hearing or a public hearing itself may be appropriate. Section 1506.6 of the CEQ Regulations established procedures for public involvement in projects affecting the environment. Appendix 6 of FAA Order 1050.1 and FAA Order 5050.4 prescribe environmental requirements in detail. These orders are controlling and should be consulted regarding public hearing requirements. In cases where the opportunity for a public hearing was accomplished during advanced planning, it does not need to be repeated at the implementation stage unless the scope of work has changed, substantial new information became available, or significant time elapsed. b. Form of Notice. The notice of opportunity for public hearing must include a concise statement of the proposed development and be published in a newspaper of general circulation in the communities in or near the proposed development. The notice must specify that the hearing is for the purpose of considering the economic, environmental, and social effects of the airport location or development and its consistency with the goals and objectives of such urban planning as has been carried out by the community. The notice must provide a minimum of 30 days from the date of the first required publication in accordance with local law, for submission of requests for a hearing by persons having an interest in the project, and state the manner in which a hearing may be requested. The notice must further state that a copy of the sponsors environmental documentation will be available at the sponsors place of business for examination by the public for a minimum of 30 days, from the date of the notice. This 30day minimum should commence from the date the notice is first required to be published, if published more than once. c. Request for Hearing. A public hearing must be provided if requested. When a public hearing is to be held pursuant to receipt of a request, the sponsor must publish a notice of that fact in the same newspaper in which the notice of opportunity for a hearing was published. The last notice required by local law must be published at least 15 days before the date set for the hearing. The notice must specify the date, time, place of the hearing, a concise description of the proposed project, and indicate where and at what times more detailed information may be obtained. d. Report of Hearing. If a public hearing is held, the sponsor must provide the FAA with a summary of the issues raised, the alternatives considered, the conclusion reached, and the reasons for that conclusion. The sponsor must also keep a recording or other records covering the hearing and, upon FAA request, prepare a verbatim transcript of such hearing. e. Lack of Interest. A hearing need not be held if, after adequate public notice of opportunity for a public hearing, no person or group having an interest in the projects economic, social, and environmental effects requests a hearing. In such a case, the sponsor must submit written statement that adequate notice of opportunity for a hearing had been provided, and that no request for a public hearing was received. Upon request, proof of publication of the notice must be submitted.
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(1) Substantially changed airfield configurations at a hub airport that annually enplanes 0.25 percent or more of U.S. passengers (medium and large hubs); (2) Modifications of design standards proposed by an airport that would result in significantly increased cost; (3) The preparation of State-wide system standards proposed to be approved by the FAA and used for development at nonprimary airports; (4) Multi-year projects; and (5) Similar projects exceeding $10 million Federal share, unless this work is part of a larger unit such as a new airport where the VE was already considered or completed. b. VE Procedures: Specific concurrence on the scope of work by the region is required prior to the use of VE by local or State agencies in AIP projects. The cost of work performed on VE will not be allowed unless incurred after the date of the FAA concurrence on the scope. VE guidance is contained in Advisory Circular 150/5300-15.
Section 2.
1010. GENERAL.
REQUESTS
FOR
AID
a. Capital Improvement Program (CIP): A sponsors five-year program of development is included in its CIP. The CIP is prepared on an annual basis and it identifies the airport, it's proposed development, funding requirements, source of funding, fiscal year, project description, and justification. The CIP submission may also include information on environmental, Exhibit A land and ALP status, and sketches. The CIP is developed in close coordination between the sponsor and the FAA Airports Office, with participation by state aviation officials and metropolitan planning organizations, as appropriate. For further information on CIP development and the ACIP process, including a discussion of the National Priority System (NPS), submission and approval dates, and notification of sponsors, refer to FAA Order 5100.39. b. Preliminary Notice of Interest. The CIP also serves as a preliminary notice of the sponsors interest and intent without actually obligating the sponsor to perform any work or expend any funds. Acceptance of the CIP by the FAA does not imply that the proposed project will be programmed under the AIP. When a project need is identified subsequent to the annual ACIP process, the sponsor may submit an updated CIP. c. Form Preparation. An application for Federal assistance, Standard Form (SF) 424, together with FAA Form 5100-100 (Appendices 3 and 4), must be submitted for any of the projects programmed under AIP to the appropriate FAA Airports Office before issuance of a grant. The original and two copies of the SF 424 must be completed in accordance with the instructions on the reverse side of the form and submitted to the FAA with all supporting documentation, sponsor assurances, and certifications. The appropriate FAA Airports Office is responsible for furnishing guidance about the proper completion of the form and the required supplemental supporting documentation, sponsor assurances, and certification.
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accomplished. Additionally, estimates showing the basis for the project budget must be furnished in sufficient detail to determine whether the project costs appear to be reasonable. b. Sketch. A sketch, at least 8 x 11, must be provided, that depicts and identifies the limits of the proposed project, and distinguishes other airport development from the development proposed in the grant. For land acquisition projects, the sketch should show the boundaries of currently owned land and the boundaries and proposed property rights of each parcel of land or easement to be acquired. c. Identification of Environmental Requirements. All AIP projects must be either categorically excluded or accompanied by an environmental assessment that resulted in a finding of no significant impact (FONSI) or an environmental impact statement prepared in accordance with the current version of FAA Order 5050.4. d. Public Hearing. For projects that are subject to public hearing requirements, if a public hearing has been held, a summary of the issues raised, alternatives considered, and conclusions reached must be provided. In cases where a hearing has not been held, a certification that no request for public hearing had been received must be provided. (See Paragraph 1007d. and e.)
Section 3.
SPONSOR CERTIFICATION
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standard certification procedures to reflect special conditions or assurances in the grant. In addition, regions may use their checklists, forms, or certification procedures for areas other than those described in this section.
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e. Acceptance of Forms. When the sponsor has properly executed a certification form, no further routine or detailed conformance reviews of that area on the project will be necessary by regions unless exceptional circumstances arise. Acceptance by the FAA is considered complete when the forms are filed.
Order 5100.38C
problem, remind the sponsor of its responsibilities in submitting accurate certifications, and specify actions necessary to remedy the situation. b. Sponsor Education. Most inaccuracies discovered in certifications will probably occur as a result of the sponsor or its consultants lack of knowledge with respect to requirements rather than being deliberately incomplete or making false statements. In such cases, the emphasis should be placed on correcting the deficiencies and educating the sponsor as to the responsibilities incurred with the signing of the assurances and certifications rather than invoking penalties. The most current assurances and certifications should be provided to a sponsor with a recommendation that the sponsors revised submission address the deficiencies. c. Other Corrective Actions. Negotiations with the sponsor may be necessary where inaccurate certifications are discovered in on-going or finished projects. Such negotiations shall address corrective actions and may involve action to suspend the grant as described in Chapter 11, Section 6, or withhold/readjust Federal funds in accordance with Chapter 13.
Section 4.
1030. GENERAL.
CIP
AND
APPLICATION REVIEW
AND
EVALUATION
The initial review is an important phase in the development of an AIP project. This is the time to verify the justification, eligibility, and reasonableness of the project, to determine the reasonableness of project timing, to assign priorities, to identify information deficiencies, to select candidate projects for discretionary funding, and to approve, disapprove, or defer projects. Proposals that would require special adaptation of standards and problem areas that may later require the use of special conditions in the grant agreement should be carefully evaluated. To avoid project delays, every effort should be made to resolve programming and technical problems prior to recommending a project for approval.
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(2) Sponsor Eligibility. Give status of the sponsors legal ability to carry out its obligations. State whether a tentative determination has been made on sponsor eligibility when a written opinion of regional counsel is pending. (See Chapter 2.) (3) Consistent with Local Plans. The airport project must be consistent with the plans (existing at the time the project is approved) of public agencies authorized by the State in which the airport is located to plan for the development of the area surrounding the airport. (See Title 49 U.S.C., Section 47106(a)(1).) (4) Designation of Instrument Runway for the Airport. An explanation is necessary only if the project is not on the approved ALP or an instrument runway improved by the project requires further coordination for work required to establish an approach procedure. (See Paragraphs 300c, 428d, 500b, 554, and FAA Order 7400.2.) (5) Status of Prior Grant(s). If there are any projects over three years old or that have had no draw down for the proceeding 18 months and have not been closed out, give reasons for delays and schedules established for closing the projects. The maximum time for an AIP project, from date of grant acceptance to financial completion, is four years. In the case of a multi-year project, the maximum time for completion is four years from the date of the final multi-year amendment. (6) Runway Marking. If airfield marking is not contained within the project and existing markings will be obliterated, an explanation should be made. (See Paragraph 500e.) (7) Runway Safety Areas, Protection Zones, and Approaches. Explanation should be added where the work is related to a runway safety area, runway protection zone, or airport approach that is non-standard and not improved by the project. See Paragraphs 513 and 581 as well as Advisory Circular 5300-13. (8) Runway Lighting. If the airport has inadequate lighting, an explanation should be added. See Paragraph 500c. (9) Navigation Aid Requirements. If the requirements for landing aids are not included in the project, an explanation should be made. Any problems caused by the sponsors lack of action in providing these facilities at the airport will be described with possible solutions. See Chapter 5, Section 6. (10) Good Title and Property Inventory Map (Exhibit A). If the airport does not hold good title, an explanation should be added. See Paragraph 500a and Title 49 U.S.C., Section 47106(b)(1). A property inventory map (Exhibit A) in accordance with Order 5190.6 on the airport compliance requirements should be approved if it is not part of the airport layout plan. (11) Donations. All donations will be identified with information on the manner in which the value has been established for programming purposes. (See Chapter 3, Section 4.) (12) Force Account. Identify work proposed for force account. Comments will also include the method used in establishing costs for program purposes. (See Chapter 12, Section 3.) (13) Unreasonable Cost. Identify any unusual or unreasonable cost shown in the grant application. (See Paragraphs 310 and 311.) (14) Runway Surface Treatment. For all airports having turbojet operations, provide a detailed statement on the circumstances involved if surface treatment requirements have not been met. (See Paragraph 520d.)
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(15) Intergovernmental Review. Explain any problem areas associated with coordination through the appropriate state single point of contact. (See Paragraph 1006.) (16) Compatible Land Use. Identify any known non-compatible land use problems relating to the use of property adjoining the airport and the sponsors actions to assure compatible land use. Include enactment date(s) of local ordinances and/or zoning restrictions. (See Paragraph 1005 and Title 49 U.S.C., Section 47107(a)(10).) (17) Public Hearing. State whether the public hearing requirements have been satisfied. Provide the date(s) of public hearings. (See Paragraph 1007 and Title 49 U.S.C., Section 47106(c).) (18) Useable Unit of Work. Identify problems if a useable unit of work will not result from the project. (See Paragraph 500d.) (19) Information on Specific Opposition. Identify any opposition or controversy received regarding the project and the disposition of such opposition. Controversial aspects other than specific opposition should be discussed in sufficient detail to insure that programming actions are appropriate. (20) Flood Insurance. Identify whether the sponsor has adequately satisfied this condition. (See AC 150/5100-16, AIP Grant Assurance 1 - General Federal Requirements.) (21) Consultation with Airport Users. Identify when and what type of consultation took place with the airport users and identify any unresolved issues raised by airport users. (See Title 49 U.S.C., Section 47105(a)(2).) (22) Uniform Acquisition and Relocation Requirements (Uniform Act). Identify any controversial aspects or failure to meet the requirements of the Uniform Act or Order 5100.37. (23) Terminal Development/Bond Retirement. Identify any requirements for this type of project and whether the sponsor has satisfied them. (See Paragraph 614.) (24) Noise Compatibility Projects. Provide the date of approval of a Part 150 program for any project in an approved Part 150. If any project is not contained in an approved Part 150 program, an explanation/justification for the project is required. (25) Pavement Reconstruction. For any projects to replace or reconstruct pavement, describe the sponsors pavement maintenance management program. See Paragraph 520a. (26) Sponsor Certifications. If the sponsor certification process has not been followed, explanation is needed. See Section 3 of this chapter. (27) Washington Approval Required. See Paragraph 31 for a list of projects requiring Washington approval. In addition, any coordination with Washington headquarters to determine eligibility as required within this directive should be described. c. Part II, Description and Justification of Work Items. Include a clear description of each work item and a brief statement of justification for each item recommended for programming. The statement of justification shall include a concise discussion of the aeronautical justification with respect to necessity and timing and shall not include detailed design information unless pertinent to the programming decision. See Paragraphs 402b and 505. The priority assigned to each development item shall be included. For development not recommended for programming, the report should contain a brief description of the analysis leading to that conclusion. d. Part III, Explanation. Explain any item from the Part I, Checklist, marked See Part III.
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Section 5.
PROJECT APPROVAL/DISAPPROVAL
AND
ALLOCATION
Order 5100.38C
c. OST will notify the congressional delegation and advise APP-520 when the project is cleared for release to the sponsor. d. APP-520 enters the project release information into the AIP system daily. The following day the system updates the web based reports. e. The regions can obtain computerized OST Congressional release information from the AIP system the day the release is entered into the system or the next day from the FAA web site at: http://www.faa.gov/arp/arphome.htm. f. The FAA Airports Office will notify sponsors in accordance with the provisions of Paragraphs 1043 and 1044 of the action taken on their proposal.
Order 5100.38C
individual responsible for each step. Emphasis will be placed on the fact that the allocation will be withdrawn unless the sponsor develops the project in accordance with the schedule. (2) Where appropriate, realistic deadline dates for each of the following steps, if applicable, of the project development should be set: (a) Submission of Certification of Plans and Specifications; (b) Designation of sponsors engineer; (c) Submission of preliminary plans; (d) Request for state air and water quality standards compliance assurances; (e) Submission of final plans and specifications and engineers report; (f) Completion of necessary land acquisition and Relocation of displaced persons; (g) Adoption of a zoning ordinance or other compatible land use measures; (h) Submission of title evidence; (i) Coordination with planning agencies; (j) Receipt of current wage rates; (k) Advertising for bids; (l) Award of contract; (m) Pre-construction conference; (n) Submission of Application for Federal Assistance (SF-424 and FAA Form 5100-100); (o) Issuance of grant offer; and (p) Acceptance of grant offer; (3) The schedule will be realistic from the standpoint of both the sponsor and the FAA in anticipating problems and causes for delays. Scheduling of actions required to develop the application, including engineering work and acquisition of property interests, should permit the issuance of a grant offer with a minimum of special conditions. (4) Regardless of project priority, every effort should be made to schedule projects for grant agreement during the same fiscal year for which an allocation is made unless advance-programming action is involved. The agreed scheduled dates shall be considered deadline dates, and the sponsor will be advised that failure to meet them may result in action to withdraw the allocation. This procedure is considered necessary to insure that sponsors will complete all preparatory work for entering into a grant agreement and will be prepared to proceed immediately with project development, as funds are made available. b. Monitoring Conformance to the Schedule. The Federal Airports Office should monitor programs in accordance with the agreed upon schedule and take appropriate action when delays occur. Sponsors should be queried on projects that have not begun within 6 months of grant award to Page 182
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determine reasons for the delay and appropriate follow-up action. Appropriate documentation will be placed in the project file to support later decisions to extend or withdraw the allocation.
Section 6.
1050. GENERAL.
APPLICATION REVIEW
AND
APPROVAL
The application and supporting documents should be reviewed for accuracy and completeness and the sponsor requested to furnish any supplemental information. Upon completion of the review, the appropriate field office should forward the application along with necessary documentation to the approving official for action. The issuance of a grant offer by the FAA constitutes approval of the application. The field office may adjust the depth and intensity of the review of various supporting material in Section 1 above in accordance with the complexity of the project, the amount of the grant, the size of the sponsor, and past experience with that sponsor.
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Section 7.
1060. PROGRAM CHANGES.
MODIFICATION
OF
APPROVED PROGRAMS
Program changes are major changes to the scope of a project by deletion, revision or additions of work items or adjusting allocations for which notices of allocation have been issued. Program changes may be made by the FAA anytime after the tentative allocation and prior to grant acceptance by the sponsor. Field offices may make program changes involving work items so long as the new project is at least the same priority as the one being replaced. All proposed projects receiving a lower priority rating must be submitted to APP-520 for review and approval. After approval, any grant offers must reflect the corrected description. Such program changes should not be used indiscriminately or as a substitute for careful planning and estimating for initial programming.
1061. PROCEDURES.
a. Timing. A sponsor should request a program change as soon as the need becomes evident. b. Sponsor Submission. (1) Deletions or Reductions in Projects. Deletion or reduction of development items from approved projects may affect the operational capability of the airport involved or prevent the construction of a safe, useful, and usable project. Consequently, such action should be undertaken with caution to assure that the operating capability of the airport or unit of development is not adversely affected. (2) Increase in Funds or Additions to Programmed Development Items. The sponsor must submit a request with the same type of information and documentation required within this chapter. This must, in all cases, include a revised project estimate and assurance of availability of sponsor funds if a request for the modification of funds has been submitted after application. Changes in development items will normally require a revised project sketch. (3) Decrease in Allocation. Where the change involves only a reduction in the amount of the allocation, a revised project estimate is sufficient basis for decreasing the allocation. c. Regional Determination. Regions will approve or deny requests for program changes except for those projects approved at the headquarters level.
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d. Headquarters Determination. For any changes that cannot be approved in the region, the region will submit the request to APP-520. Documentation may be requested by APP-520 for an evaluation of the request. (See Paragraph 31.)
Section 8.
1070. GENERAL.
LETTERS
OF
INTENT
The FAA is authorized to issue a letter of intent (LOI) for certain airport development projects when current obligating authority is not timely or adequate to meet a sponsors desired timing for a project. Under this provision, a sponsor may notify the FAA of an intention to carry out a project without Federal funds and request that the FAA issue an LOI. The FAA evaluates the proposal and, if approved, issues a letter stating that reimbursement will be made according to a given schedule, as funds become available. A sponsor who has received an LOI may proceed with a project without waiting for an AIP grant. The Sponsor is assured that all allowable costs related to the approved project remain eligible for reimbursement.
1071. ELIGIBILITY.
a. Airport. LOIs may be issued to cover work only at primary and reliever airports. b. Airfield Project. The project must enhance airfield capacity or be supporting development directly related to the primary project to be eligible for a letter of intent. Any development directly related to the primary project, to be included in the LOI, is also subject to the review factors and conditions of the primary project of the LOI. An example of a directly related project includes an extension of a taxiway to match a runway extension. An example of a project that is not directly related would be the construction of a public roadway serving a terminal building in an LOI for a new runway or extension. c. Payment of Interest. The payment of interest from bonds or other forms of indebtedness under an LOI is not allowable. Accordingly, in submitting an LOI application, interest costs may not be included in project costs and will not be covered as part of an approved LOI. Additionally, the FAA will not recognize the cost of interest as an allowable expense in processing a request for payment of grant funds under a grant agreement executed pursuant to an LOI. However, once allowable expenses have been incurred by the sponsor for approved LOI project capital costs, amounts paid to the sponsor by the FAA under the LOI constitute reimbursements. The FAA does not generally track or monitor airport sponsors uses of payments under grant agreements after receipt of those payments by the sponsor. Therefore, the FAA has no objection to the use of reimbursement payments, upon receipt by the sponsor, for any lawful airport purpose, including the payment of interest on airport obligations.
Order 5100.38C
aircraft departure and arrival constraints, minimum vectoring altitudes, aircraft separations, length of and approach speeds on typical approach by aircraft type, weather conditions, runway dependencies, and the different runway use configurations in the various wind and weather conditions. Also, required for analysis is the enplanement forecast for the period of construction and the growth rate of enplanements for out years beyond construction. b. A Positive Benefit/Cost Ratio: A project Benefit/Cost Analysis (BCA) will involve a detailed review of future benefits and costs for each year of the projects expected life, discounted to present value at an appropriate discount rate. The FAA will consider benefits in terms of annual cost savings attributable to reduced delays, and the monetary value of saved passenger time. In addition, the net value to the airlines, the airport, and the public from additional airline service made possible by the project will be considered. Total costs attributed to the project include, but are not limited to, land acquisition, site preparation, environmental and noise mitigation, engineering, and construction. The FAA recommends all benefit/cost analysis be conducted in accordance with the guidance issued on December 15, 1999. The guidance may be downloaded from the FAA Airports web site at http://www.faa.gov/arp/bca.htm. c. Sponsor Financial Commitment, (LOI Finance Template). The FAA will determine the sponsors financial commitment in the analysis of an airports financial plan. The FAA has established a Finance Template (See Appendix 29) for the purpose of standardizing the submittal of an airports financial plans. Historically, FAA has requested supplemental or modified financial data from airports during the LOI review process. By standardizing the financial plan submittals, the LOI review process will permit FAA personnel to efficiently and effectively perform the financial analysis. In addition to the LOI finance template, the sponsor should provide the entire capital improvement plan that covers the life of the LOI request. This list of projects, both within the LOI and outside the LOI, should contain the total project costs, and a cost breakdown by source of funds. The FAA will utilize this supplemental information to consider other sponsor commitments that may impact the sponsors ability to pledge specific sources of funds. Also, this information may highlight a sponsors use of entitlement funds to other higher priority projects. Finally, FAA will consider the sponsors contribution from nonfederal funding sources, airport revenue diversion, grand-fathered payments to other governmental offices, and whether or not the sponsor plans to proceed with the project in accordance with all applicable statutory and administrative requirements, with the LOI payments to be used as reimbursement for advance expenditures. The FAA will not consider an LOI payment schedule that directly matches an airports capital drawdown schedule.
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f. A statement that the LOI is not considered to be an obligation of the United States, shall not be deemed an administrative commitment for funding, but shall be regarded as an intention to obligate from future budget authority as such funds become available; and g. A statement that the LOI, with sufficient justification, may be amended to adjust the maximum Federal obligation, the payment schedule, or both. When entitlement funds (includes cargo and primary) are more than the amount scheduled in a year, the discretionary funds in the same year may be reduced by an amount equal to the increase in entitlement funds over the amount scheduled in the LOI. In this case, no adjustments have to be made to the future funding years in the original LOI allocation project. Conversely, however, if entitlement funds are less than that projected, discretionary funds will not be increased to compensate for the lower entitlement funds. The accurate projection of entitlement funds is very important to both parties.
1074. PROCEDURES.
A principal goal in establishing the LOI procedures is that projects to be funded in this way be treated as much like conventionally funded grant projects as possible. In order to ensure that all statutory and administrative requirements attendant to the normal grant process are satisfied, the FAA will evaluate sponsor CIPs, grant applications, and review proposed projects as is done for a normally funded AIP project. At the point where an Federal Airports Office would issue a notice of allocation to the sponsor, subject to APP-500 review, that office will instead issue a LOI. Grant applications and offers will follow as set forth in the LOI payment schedule, subject to the availability of funds. Actions should occur as outlined below: a. Early FAA/Sponsor Coordination. An airport sponsor may initiate consideration of an LOI for a large capacity-enhancing project. The sponsor should be briefed early on the general features of LOI provisions and on actions that the sponsor should take to obtain an LOI. The FAA Airports Office will be the primary contact for the sponsor regarding an LOI. It may be desirable, from the sponsors point of view, as well as the FAAs, to hold a joint meeting so that all parties understand the purpose and scope of the project, FAA authority and policy, and sponsor financial needs, schedules, and responsibilities. Since all LOIs require a BCA, and given the length of time required to review the BCA, the review of the BCA should be started upon receipt of the BCA not after LOI submittal. As a minimum, the FAA and the sponsor should meet to discuss the following points: (1) A sponsor must notify the FAA of their intention to proceed with a project without federal funds through a request for a letter of intent. LOI applications must be submitted to the FAA no later than March 1 of the fiscal year in which the LOI approval is being requested. Applications received after March 1 will be considered for the following fiscal year. The application should include all relevant support material such as the status of the federal environmental finding, ALP approval, BCA, and requested LOI payment schedule. The applicant should also note the source(s) and amount(s) of other financing for the project. If the sponsor receives an LOI and then proceeds without the aid of Federal funds, the sponsor may later be reimbursed under the terms of the LOI. The sponsor notice to proceed with a project without federal funds and request a letter of intent should be submitted during project formulation or with the CIP and should specify the forecast dates for implementing the project or stages of the project and the estimated costs associated with each stage of the project. (2) A project under an LOI must satisfy all statutory and administrative programming requirements for an AIP project. Sponsors should be advised to proceed as though they had received Federal funds and should fulfill all environmental, civil rights, bidding, procurement, and contracting requirements associated with an AIP grant, even though no Federal funds have been received at the time the project was initiated. (3) All documents normally submitted with a grant application should be submitted in support of a request for an LOI.
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(4) The sponsor should agree to commit all, except to the extent that the FAA agrees funds may go to other projects of equal or greater priority, entitlements over the life of the LOI to the project. An exception may be made if entitlement funds are already committed for other urgent needs. In such a case, the payment schedule in the LOI may have no funds or reduced entitlements under the apportionment heading. (5) An LOI may be issued with payments scheduled beyond the statutory expiration of the AIP, as authorized by the FY 1989 Department of Transportation and Related Agencies Appropriations Act (Public Law 100-457). (6) The total of discretionary funds in all LOIs subject to future obligation is limited to approximately 50 percent of the forecast discretionary funds available for that purpose. (7) Issuance of an LOI is considered a Federal action subject to the requirements of the National Environmental Policy Act. Consequently, all environmental actions must be complete before issuance of a letter of intent. (8) An LOI may be amended in future years to adjust the total maximum Federal obligation, the schedule of payments, or both. Considerations that may lead to an amendment include, but are not limited to, a change in project cost, change in project timing or scope, or changes in future obligating authority. (9) Alternative funding levels and schedules should be discussed. The FAA position is to use the LOI provision to encourage the maximum number of capacity-enhancing projects. Consequently, the FAA should ensure that sponsor resources are used to the maximum extent reasonable, and that Federal financial support should be the minimum amount needed to allow the project to proceed. (10) Costs incurred prior to the issuance of an LOI, except project formulation costs, will not be reimbursed. (11) Sponsors shall complete a BCA for LOI projects. The cost of preparing BCAs can be reimbursed as a project formulation cost when and if the project is approved for an AIP grant. The preparation of the BCA may also be part of a master plan project if such master plan effort is timely to the planned LOI project. (12) LOIs are an important innovative financing tool. As such, an airport seeking an LOI must submit a financial plan that demonstrates how the LOI will leverage increased financial commitment from non-Federal sources and/or will cause the project to be accelerated. Financially superior LOI requests will be those that seek a greater percentage of the AIP funds later in the financial plan, divide the Federal participation over a longer time frame, and seek realistic overall Federal participation. Airports seeking earlier and larger AIP allocations should be encouraged to consider competing for funds through annual discretionary grants rather than LOIs. b. FAA Actions to Approve the Project. Regions should notify APP-500 promptly when a sponsor expresses interest in obtaining a letter of intent. Preliminary information provided to APP-500 should include a general description of the project, the estimated cost, the proposed schedules for construction and reimbursement, and an indication of whether the project is a good candidate for an LOI. All normal pre-application review and evaluation actions should be completed as if the project were being programmed for a grant. Similarly, the sponsor should be briefed on the importance of complying with all Federal procedures on bidding, civil rights, and contract award. FAA has established a committee to review LOI proposals to insure all statutory requirements have been met and advise the Associate Administrator for Airports (ARP-1) on the selection of LOI proposals. The committee is composed of representatives from the Office of System Capacity (ASC), Office of Page 188
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Aviation Policy and Plans (APO), and from the Associate Administrator for Airports (ARP). The committee is chaired by APP-500 and includes ARP representatives from APP-510, APP-520, and an airports regional division manager with no LOI candidate. This committee will review substantially complete LOI requests submitted by the March 1 deadline. The committee reviews the LOI proposal, system benefits, BCAs, and the financing package. After ARP-1 selects the sponsors that will receive LOIs, APP-500 will complete the headquarters actions necessary to complete the approval process and initiate the OST/Congressional notification process. The Congressional notification will state the FAAs intention to grant funds, not to exceed the estimated total Federal share of allowable project costs, and any amounts that are approved for allocation in the current year.
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incurred however, the FAA should ensure that the costs are imminent, rather than anticipated at some unspecified date in the future. Any grant issued for the same work as identified in an LOI will be considered in the LOI rather than as a separate action. This does not preclude the issuance of a separate grant for distinct work outside the scope of the LOI. No separate grants for projects covered within an LOI will be considered.
Section 9.
1090. GENERAL.
This program consolidates funding to states for individual airport projects at selected locations and enhances State airport improvement responsibilities. a. Authorization. Statutory authority exists for ten states to administer block grants on other than the primary airport projects. b. Traditionally Federal Functions That States Will Perform. Block grant States perform some AIP administrative functions traditionally accomplished by the FAA, such as preparation of airport grant information for sponsors, reviewing of the sponsors requests, and accounting for program expenditures. While various States have widely varying involvement in airport development, a State participating with block grants must accept the specific responsibilities of the program when it accepts the grant offer in writing. For purposes of the block grant program, states only assume functions related to the grant agreement.
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c. State Channeling and Sponsorship of Airport Projects. State channeling of Federal airport grants occurs in various forms within numerous states. This is based on State enabling legislation rather than Federal law. Regions should administer the AIP to accommodate the State requirements. In addition, State sponsorship of airport projects also occurs with regularity based on provisions in Paragraph 209. The main difference between State sponsorship of airport projects and the block grant program (which is limited to nonprimary airports) is that in the latter states select each project rather than the FAA. State channeling and sponsorship of airport projects may be viewed as transitions to a block grant should the program allow new States, although they are not mutually exclusive provisions. d. State Aviation Agency Application. If a State aviation agency is interested in the block grant program, only the States initial application needs to be considered for participation. However, regions should request new applications from all current participants whenever the State, airport, or noise project sponsor assurances are changed. See Paragraph 1010. The selected State organizations must be capable of effectively administering a block grant. For the application forms, see Appendices 3 and 26 and block grant assurances. e. Application Schedules. An application may be provided to regions from a State when notice has been given by APP-500 that the FAA will consider new applications. There is no set schedule for considering applications by states not currently participating in the program. Any schedule for new applications currently depends upon authorization for an expanded number of States or discontinuation by a current participant. f. Airport/State Relationship. The relationship between airports and the State would be a factor in FAA oversight of the block grant program as well as selection of any additional states for it.
Order 5100.38C
Improvement Plan. Where the FAA intends that the discretionary funds be used at a particular airport the block grant agreement should expressly provide for this use. States have flexibility to change the original projects. Documentation should be requested of states on how the specified discretionary amounts were used when such changes occur. See Paragraph 1094h. d. Nonprimary Entitlements. When entitlements are permitted, current and future block grant states will be responsible for administering the individual nonprimary airport entitlement. These airports must be itemized within the block grant offer ensuring the State uses the specified funds at entitled locations. Lists of the associated city, airport, and amount of Federal share should be added in a new condition 9 with the preface: Entitlements for nonprimary airports must be utilized as follows: ". Regions shall request states to report on how the specified entitlement amounts were used at the end of three years after such a block grant has been issued. See Paragraph 1094h.
Order 5100.38C
work accomplished during each fiscal year shall be that amount or the higher amounts provided within states for public lands under Title 49 U.S.C., Section 47109(b). The potential for a reduced Federal share, from that allowed within states without block grants, requires the State or airports contribute a higher percentage of project costs. This leverages Federal funds to allow more work and may contribute to better project monitoring on the part of the airports. State block grant matching shares may vary from year to year depending upon their identification of individual airport project contributions. f. Environmental Requirements. Environmental impact assessment responsibilities, except as described in Paragraph 1096, have been passed to States receiving block grant funds. Block grant funds may be used for airport studies including environmental assessments and environmental impact statements. Since the block grant States are responsible for selecting the individual airport projects within block grants, environmental analysis and the definition of the alternatives are the responsibility of the State. Block grant States are allowed to follow their own environmental requirements if comparable to the National Environmental Policy Act as defined in the U.S. Council on Environmental Quality (CEQ) regulation. States that have no such requirements shall follow the CEQ regulation. CEQ may ask to review the State agreement or procedures on these requirements. Contact APP-600 if there are questions on these or related airport environmental issues identified in Order 5050.4. g. Form of Agreements. Block grant States have wide latitude in the form of agreements used for the program. States will have standard AIP block grant agreements with the FAA. In addition, the State may decide to enter into FAA regional agreements due to variations in State law or procedures. The form of the regional agreement should be determined between the region and State. States must also have individual airport agreements for projects, and the form of these is left to the State, provided it is acceptable to the FAA. See Paragraph 1095. h. Examples of State Flexibility. To illustrate other allowable variations, several examples have been documented of the flexibility States may use that FAA cannot in administering AIP grants: (1) One State has allowed a contingency amount of 2 percent of the construction cost for calculating airport grants that may cover unforeseen work without issuing amendments. (2) Several of the States have used AIP funds for program administration costs under an exemption from the provisions of FAR Part 156 that prohibit use of AIP funds to supplement State aviation agency resources for management of the program. i. State Activities Unrelated to Block Grants. States have flexibility to incorporate various activities unrelated to block grants into their State aviation program. These activities need to be considered separately from grant requirements, especially where the authority is other than for the AIP within Title 49 U.S.C., Sections 47101 to 47137. Block grant programs should exclude any elements other than those directly related to the AIP if questions arise about the adequacy of such activities. For instance, certain portions of coordination on obstruction evaluation and airport airspace analysis may be delegated to the states by mutual agreement between the FAA and the State. Any such evaluation or analysis is unrelated to block grants, and Order 7400.2 does not provide for the State to make the final determination. States that have been delegated airspace duties except final determinations by the regional Airports division manager should contact AAS-100 for assistance with access to databases. j. Conflicting Policies. State aviation agencies may have views or policies that conflict with those of the FAA on various subjects. However, every effort should be made by regions to ensure that airport sponsors receive consistent AIP information and guidance from FAA/State sources. If significantly different positions have been taken that may cause an airport problem, contact APP-520 for assistance in resolving or accommodating the conflicts.
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a. National Plan of Integrated Airport Systems. Regions must ensure that airports benefiting from block grant projects are included in the NPIAS. States have system plans and may provide NPIAS information. However, the States do not have authority to change airports in the NPIAS. b. Eligible Airport Projects. Regions must ensure the participating block grant States use AIP funds for eligible airport planning and development projects or to carry out an FAA-approved noise compatibility program. States must use the block grant funds to accomplish projects that are eligible under the statute as interpreted by the FAA. c. Ineligible Airport Projects. Regions should identify ineligible projects contained in the Block Grant States program using the AIP eligibility criteria. Where the region may be uncertain about eligibility, contact APP-520. d. AIP Project Costs. Regions must ensure that States not use AIP block grant funds for project costs that would be ineligible under a grant administered by the FAA. Project costs must be necessary and reasonable to be allowable. Except for the land acquisition, project formulation, and certain costs with prior FAA approval, all other items must be incurred after the date of the airport agreement. e. Project Administration Costs. Project administration costs that would otherwise be eligible for a grant should be allowed under the same terms as other AIP projects. f. Program Administration Costs. State program administration costs are ineligible under FAR Part 156, although some states have been given a limited exemption from this requirement. These are costs that would be incurred by the region if the FAA were administering the airport project.
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f. Grant Payments and Closeout. Normally payments to block grant states will be by letter of credit. After a period of three years within this program, block grant closeouts should be accomplished at approximately the same rate as the FAA closes individual airport projects. Starting with block grants issued during FY 2002, regions should forward the States airport project information to APP-500 as described within Paragraph 1097a. g. Commissioning and Decommissioning Airport Facilities. Regions should ensure that commissioning and decommissioning of the block grant airfield facilities will be accomplished to achieve a comparable level of safety as provided in Paragraph 507. h. Recoveries. For the funds states do not obligate in airport projects before block grant close out, the FAA must recover that amount. For the funds that were obligated and later recovered by the State from an airport project, the block grant policy allows either the FAA to recover the amount (and include it in succeeding block grants) or the States re-obligation of it for new airport projects on a continuing basis. (The FAA has not usually limited State recovery of airport project funds beginning in FY 1993.) This practice includes discretionary funds. The adjustments are based on actual airport project payments except as described in Paragraph 1095i. Regions should oversee State recoveries from airport projects to ensure the funds are used for nonprimary airports eligible under the AIP, although it is unnecessary to track such after completion of an initial airport project benefiting from recovered funds. When nonprimary entitlements are granted, if use of AIP funds for the location after four years does not meet the entitlement, regions should ensure states provide entitled airports with amounts identified within block grants or return the funds to FAA. (See Paragraph 1091d.) i. Expired Carryovers. At the end of each fiscal year, regions should coordinate with the states and report to APP-520 the amount of unused entitlement funds not obligated by a State for an airport project to be recovered by the FAA and converted into discretionary projects at airports, if any. APP-520 will then provide instructions on transferring these expired carryovers. See Paragraph 1097 and Order 5100.20. j. Accounting and Audits. Regions should ensure states have an accounting system that accurately reflects expenditures of block grants. Block grants and airport projects under them are subject to the same audit requirements as any other AIP grant.
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Monitoring airport compliance requirements from grant assurances is described in Order 5190.6. The U.S. Departments of Labor, Transportation, or FAA regions may participate in investigations. Airport layout plans under block grants are to be coordinated with all interested parties in accordance with existing procedures established within the region. Since the states have different system plans, coordination of master planning may also vary with each State. The form for project monitoring and reporting information may be somewhat different within each State. Requirements are described in Paragraph 1097. Reports may also include project justification, eligibility, priority, allowable costs, programming, airport agreements, layout plans, modification of standards, coordination, environmental status, procurement, land or relocation topics, labor requirements, civil rights, safety during construction, compliance problems, administrative costs, and other issues. Other topics directly related to the AIP may be in regional agreements. However, care should be exercised to ensure the agreements are limited to AIP considerations and do not address unrelated issues of a State. Any existing regional agreement that contains issues unrelated to AIP grant agreements should be revised to delete inappropriate considerations, such as surplus Federal property responsibilities. See Paragraph 1092i. c. Obligation to Standard Assurances. Regions must ensure that participating states obligate, if appropriate, each person or entity to which it distributes funds to any terms that the State block grant agreement requires be imposed on a recipient for airport projects funded under the program. Standard sponsor assurances in Appendix 1 may pass-through the State to the airport. The sponsor assurances must be the responsibility of the State, the airport, and/or both. An agreement between the State and the airport shall address any transfer and delegation of these obligations. The agreements between the State and airports are not necessarily required to be in the form of a sub-grant. d. Standard Federal Requirements. States must agree to comply with United States Government standard requirements for administering the block grant. Where questions arise about the interpretation of standard Federal requirements applicable to block grants, contact APP-520. e. Post-Project Compliance with Legislated Requirements. While regions ultimately have authority and responsibility to enforce airport sponsor assurances, the participating states are a first line of defense against non-compliance. Regions must ensure that the State does not delegate or relinquish its authority, rights, or power in a way that would interfere with the States ability to comply with the terms of a block grant agreement.
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c. FAR Part 150. Responsibility for approval of Part 150 studies, noise exposure maps, and noise compatibility plans have not been passed to states in the same way as other environmental responsibilities. d. Examples of State Constraints. To illustrate other non-allowable variations, several examples of the constraints on State block grants have been documented. Several block grant states have become involved with procedures for handling airspace matters that are not associated with a specific AIP airport planning or development project. Order 7400.2 does not provide for these states making the final FAA airspace determination, and nothing in the block grant agreement supercedes that directive. Likewise, the designation of instrument runways under that order should be accomplished primarily by the FAA. Several of the States have delayed making payments to airports with block grant funds made available to the State. Timely project accomplishment and closeout should be comparable to that of the FAA. One State has programmed the instrument landing system more liberally than the FAA. Due to the airports statutory option allowing the Federal Government to take over ILS projects under the AIP and the magnitude of potential costs, states shall use the same criteria as FAA in approving such projects. e. Enforcement. The FAA may take action in accordance with Order 5190.6 and 14 CFR Part 16 to enforce the terms of a State block grant agreement including any terms imposed upon subsequent recipients of block grant funds. The states may be successful in enforcing airport compliance obligations. However, in instances where a State is unsuccessful, the FAA cannot entirely delegate airport sponsor compliance enforcement actions to states.
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e. Program Administrative Cost Petitions. The FAA has previously reviewed certain limited petitions for exemption from the requirements of FAR Part 156 prohibiting AIP funds from being used for program administrative costs. Contact APP-520 prior to the State sending any such petition. f. Consultation with Headquarters. If the region has questions about the reporting or oversight relationship between the State and FAA, contact APP-500.
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e. Obligations for Incomplete Airport Projects. Regions should identify requirements for each incomplete airport project within a grant or the program in accordance with this subparagraph. At minimum, project lists should reflect State and region views of block grant work as described in Appendix 30. This is a summary to facilitate recognition of airport project obligations. It does not add legal requirements. APP-500 concurrence is necessary prior to providing the State with an approved summation of the required actions or obligations in the block grant agreements and airport project agreements ensuring adequate transition of projects not closed out. States should provide a status report on construction or equipment projects underway, processes requiring FAA action, and airport project safety. The region may annotate the report to identify nonstandard conditions. States should provide a status report on land acquisition or relocation projects underway and processes requiring FAA action. FAA may annotate the report. States should provide a status report on planning or environmental projects, processes that may require FAA action, and public opposition affected by proposed termination. The region may annotate the report to identify FAA positions on known problems. States and regions should jointly decide outstanding eligibility questions and agree upon the documents that specify State or airport obligations for each project. If joint decisions cannot be reached, FAA should provide documentation and/or enforce terms of agreements. States and regions should jointly agree upon procurement, audit, and the allowable Federal share of project cost requirements for each project. If joint agreement cannot be reached, FAA should identify requirements and/or enforce terms of agreements. Regions should determine the impact of terminating a grant or program on the airports, airport agreements, the State, and overall AIP accomplishments. f. Continuing Responsibilities of State. States have continuing obligations for closed out and incomplete projects. The obligations may be altered in accordance with this section. State responsibilities for providing airports with AIP information may continue at the discretion of the region. The states having a terminated block grant or program will not have control over selection of the affected airport projects. States must provide at the request of FAA such block grant program information and status reports as requested. g. Responsibilities Assumed by FAA. Regions should exercise care to oversee matters related to closed out airport projects in terminated block grant agreements that may require action. Regions should assume responsibilities for incomplete airport projects in terminated block grant agreements that were a States responsibility where the State is no longer involved with the work. If the State funded unusable units of work in closed out or incomplete projects, the region should evaluate the situation and determine the best use of the project on a case-by-case basis. h. Unilateral Termination. When the FAA might unilaterally terminate the block grant(s) or the program, the region should notify APP-1/500 at the earliest possible time. A copy of obligations on airport projects as listed in Appendix 30 should be forwarded to APP-520. i. Conditions for State to Reapply. At such time as a terminated State program is no longer administering incomplete AIP funded airport projects and it is discontinued, that States option to reapply is based on the same conditions as other states.
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C h a p t e r 1 1 . G R A N T O F F E R , A G R E E M E N T, A N D AMENDMENT
Section 1. GRANT OFFER
1100. GENERAL.
A grant offer is a legal document prepared and signed by the FAA and delivered to the sponsor for acceptance in which the FAA formally makes an offer to pay a portion of the allowable costs of an AIP project for which a project application has been determined eligible. The signature of the sponsor accepting the grant offer constitutes a grant agreement which is a binding agreement obligating the sponsor and the United States in accordance with the terms and conditions of the grant document. Part I of the Grant Agreement, FAA Form 5100-37 (Appendix 8) is the standard form to be used in preparing the grant offer. a. Project Grant. No changes or modifications shall be made to the standard terms and provisions of the grant agreement unless approved by FAA headquarters. Part 1-Offer of the grant agreement must be consistent with the approved project application. The grant agreement should be dated and signed by the FAA official authorized to approve the project and sent to the sponsor. At the option of the FAA Airports Office this may be the standard grant offer or the modified one page grant offer, see Section 2 and Appendices 6, 14 and 27. b. Block Grant. In addition to the requirements of Paragraph 1100(a), for State block grant agreements, see Paragraph 961 and Appendix 27.
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(1) The project will not be completed in one fiscal year. See Section 47108(a) of the Act; and (2) The commitment does not exceed the current program authorization. b. Grant Agreement Format. (1) The following clause should be inserted after the words Project Application at the bottom of page 1 of FAA Form 5100-37: Whereas this project will not be completed during fiscal year 20XX, and the total U.S. share of the estimated cost of completion will be $XXX,XXX. (2) See Appendix 7 for the Special Condition that should be added on page 4 of FAA Form 5100-37. c. Establishment of U.S. Share. (1) The cost of the eligible work in the total project may be estimated. However, it is generally preferred that the U.S. share for construction projects be based on actual bids. If possible, sponsors should be encouraged to obtain signed purchase agreements for land to be acquired in the project. The U.S. share is calculated using the applicable participation rates for the type of work. (2) The amount calculated in c(1) may not exceed the sum of the sponsors current entitlement funds, the entitlement funds expected to be received through the duration of the project, and the amount of discretionary funds that can be committed to the project in the initial year. (3) If the amount calculated within c(1) exceeds the amount estimated to be available in c(2), then the scope of the project should be reduced until the two amounts are equal. d. Initial Year. The U.S. share established in subparagraph c above is stated in the grant agreement (see b(1) above) and represents the total U.S. share of the cost of the project. The initial grant also specifies a current year obligation consisting of the sponsors current entitlement funds and available discretionary funds, if any. e. Follow-On Years. The grant may be formally amended each fiscal year (see Section 4 of this chapter) or continued through a letter of amendment (Appendix 17) through the duration of the project to include additional obligations for the new fiscal year with the sponsors entitlement funds. However, the sum of the yearly obligations under the multi-year grant may not exceed the total U.S. share of the estimated cost of completion established in subparagraph c above. f. Increasing the Total U.S. Share of the Estimated Cost of Completion. Once established in the initial grant agreement, the total U.S. share of the estimated cost of completion may be increased in accordance with Section 5 of this chapter. g. Change in Participation Rate. If in subsequent years following the award of a multi-year grant the sponsors participation rate changes, the Federal share is at their current year rate and not the rate of the initial multi-year grant. For instance, airports may change from a medium hub to a small hub and the rate changes from 75 percent to 95 percent. A grant amendment increase limit of 15 percent (for grants executed after September 30, 1987) will still apply.
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b. Condition #6. This condition provides for the insertion of a stipulated number of days within which the sponsor must accept the offer. Ordinarily, a 60-day period is sufficient for acceptance of the offer and in any case, when the stipulated time will exceed 90 days, then APP-500 shall be consulted. In some instances, a period less than 60 days for acceptance may be necessary. Since all grant offers must be accepted in the fiscal year in which they are made, the period of acceptance should be adjusted for all offers made after August 1.
Section 2.
1110. GENERAL.
VARIATIONS
AND
TRANSITION
TO
ELECTRONIC GRANTS
a. The FAA Airports Office may elect to use variations in lieu of procedures described in Section 1 of this Chapter. The region will submit alternative grant agreement formats, standard conditions, and related procedures to APP-500 for approval. See Paragraph 31. b. The standard assurances, certifications, conditions, and grant offer forms are currently undergoing revision in anticipation of electronic grant making. Therefore, we do not expect the Washington review of alternative grant offers would require more than 30 days for any region.
Section 3.
1120. GENERAL.
SPECIAL CONDITIONS
a. Special conditions are used to accommodate particular circumstances needed in a grant agreement, which are not satisfied by the standard conditions. Special conditions may be unique to a sponsor or required for a certain type of project (e.g., a project with a proration of Federal share of building and utility costs). b. Failure to meet any special condition, which incorporates a deadline date, can be grounds for withholding grant payment. Therefore, any special condition requiring a deadline date should contain that specific deadline.
June 28, 2005 a. State channeling and/or agency agreement; b. Correction of deficiencies in property identification or title representations; c. Identification of specific land acquisition; d. Airport zoning; e. Identification of development excluded from Federal participation; f. Environmental impact mitigation commitments; and
Order 5100.38C
g. Other Federal Funds. Where other Federal funds are used to supplement AIP funds, the grant offer should include a special condition, which shows clearly. (1) The amount available from each Federal grant program; (2) Conditions pertaining to the use of such funds, including the applicable methodology of determining the share of each grantor agency in case of changing project costs; and (3) For those Federal grant programs permitted by law to be used as matching funds, an acknowledgement of the program and funds should be inserted as a special condition.
Section 4.
1130. GENERAL.
ACCEPTANCE
OF
GRANT OFFER
After signature by the FAA approving official, sufficient copies of the grant offer to satisfy regional requirements shall be sent to the sponsor for execution. If in agreement with the grant offer, the sponsor will sign Part II of the grant agreement. The sponsors attorney must certify that the sponsors acceptance complies with local and state law and constitutes a legal and binding obligation of the sponsor. The sponsor will return the executed documents to the appropriate FAA Airports Office.
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a. Change in Scope of Project. Where such action is in the interest of the United States, the scope of the project may be changed. b. Reducing Maximum Obligation. It is current FAA policy to issue all grants based on bids to the greatest extent possible. However, if it appears from the receipt of bids or other causes, that the amount of the offer is in excess of the amount required to pay the United States share of the latest estimated cost of the project, the maximum amount stated in the offer should be reduced accordingly. If the sponsor has already accepted the grant, the grant must be amended utilizing the amendment process in Section 5 of this chapter. c. Increasing Maximum Obligation. (1) Request for Increase. If the sponsor determines that the maximum obligation of the United States under the offer is insufficient, it may request an increase. This determination may come from various sources including a recheck of the project estimate or, more conclusively, the receipt of bids indicating the need for a higher maximum amount. (2) Justification for Increase. The sponsor must give complete justification for the request, setting forth the amount of the increase requested, together with a statement of the facts surrounding the unforeseen contingency or circumstances necessitating the increase. The FAA shall review the justification and may issue a revised grant offer if the justification is deemed adequate. d. Withdrawal of Offer. If it appears that Federal funds are insufficient to permit participation in the increased amounts requested, the project cannot be completed at a reasonable cost, or other circumstances warrant, the FAA may withdraw the offer at any time before the offer is accepted.
Section 5.
1140. GENERAL.
GRANT AMENDMENTS
Subject to the conditions in the following paragraphs, a grant agreement may be amended after its execution.
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(b) Items of work shall not be added to a grant solely because funds are available. The need for additional work items must be closely related to work contained in the grant description to be amended, fully justified, and documented. (3) Costs incurred for work undertaken on a new development item prior to execution of the amendment are ineligible for reimbursement (except for costs allowed under Paragraph 310(a)(4)). (4) All other statutory and regulatory requirements (airspace, ALP, and etc.) that may apply to the project or work item to be added to the grant agreement that were not satisfied by the original grant agreement have been or will be complied with at the appropriate time (e.g., environmental or labor). b. Deleting Work Items. Grant agreements may be amended to delete items of work. The amendment shall be supported by documents indicating the purpose, nature, and effect of the amendment, the resulting advantages to the United States, and a finding that the amendment does not prejudice the interests of the United States. In deleting items from the grant, the conditions below must be observed: (1) Normally, the maximum obligation of the United States should be reduced by the U.S. share of the deleted item as calculated from the application amount. If the funds are not reduced, the project file shall be fully documented to explain why the action is not prejudicial to the interests of the United States. The project file must identify which work items increased and the justification for the increase in project costs. If a change in the scope of the grant agreement is approved (project deleted), and the funds are not reduced (it is in the best interest of the U.S. not to reduce the U.S. share), the Regional Airports Division Manager must be contacted for approval of the amendment. See Paragraph 31 for limitations on regional authority. (2) In grants that contain land acquisition, land parcels for which costs have been incurred during the grant period may be deleted but cannot be reprogrammed in another grant. If costs have not been incurred for the land during the grant period, it may be deleted and then later reprogrammed. c. Substitution of Work Items. In some cases, it is in the best interest of the United States and the sponsor to delete items of work and replace them with new items. If the substituted items are not of equal value to the deleted items, then the obligation of the United States should be adjusted accordingly. As a minimum, the project file shall be documented to include: (1) An explanation as to why the originally programmed items are no longer justified at this time. The deletion must be shown to be in the best interest of the Government. The amount for the deleted items included in the grant must also be indicated; (2) An explanation as to why substituted work elements or projects are justified at this time and their estimated costs. It must be shown that programming the new items is in the best interest of the Government. Items may not be added solely because there will be excess funds in the grant as a result of deleting items.
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amendment any time after the excess is identified, otherwise the adjustment may be made at grant closeout. b. Increases in the Maximum U.S. Obligation for Grants Executed prior to October 1, 1987. If total actual allowable project costs exceed the total maximum obligation specified in the grant agreement, the maximum obligation of the U.S. specified in the grant agreement may be increased using only amounts the Government recovers from other grants as follows: (1) Airport Development or Noise Implementation Programs. If the increase in total project costs is attributable solely to an increase in airport development or noise implementation program costs other than land acquisition, then the maximum obligation may be increased by the applicable U.S. share of the total allowable excess project costs, not to exceed 10 percent of the maximum obligation. (2) Land Acquisition. If the increase in total project costs is attributable solely to the increase in land acquisition costs, the maximum U.S. obligation may be increased by 50 percent of the total allowable excess project costs. (3) Combination of Airport Development, Noise Implementation programs and Land Acquisition. If the increase in total project costs is attributable to both (1) and (2) above, then the maximum obligation of the United States may be increased by the total of: (a) The U.S. share of the increased airport development and/or noise implementation costs (other than land acquisition costs) not to exceed 10 percent of the maximum obligation of the grant (minus the land costs); and (b) 50 percent of the difference between the total actual allowable land acquisition costs and the sum of the land cost base and the sponsors share applicable to such base. The land cost base is the figure shown in the original grant agreement under Condition 1 for Land Acquisition (See Paragraph 1103 and Appendix 13). (4) For grants executed prior to October 1, 1987, the amendment will not exceed the 60 percent/$200,000 limitation when the increase involves terminal work (See Paragraph 551); (5) A determination is made that the amendment is advantageous to the Government. The basis for the amendment shall be documented in the project folder. A general statement that the increase is for cost overruns is not acceptable. Instead, the documentation should contain specific justification such as: (a) Increases necessitated by work under Change Orders (specific change); (b) Increase due to actual excavation quantities being greater than original estimate; (c) Increase due to increased land acquisition costs for parcels (identify specific parcel or parcels) over original estimate; and/or (d) Grant issue based on estimates; increase to cover actual construction bid that was higher than estimate. c. Increases in the Maximum U.S. Obligation for Grants Approved after September 30, 1987. If total actual allowable project costs for airport development or noise implementation projects or land acquisition exceed the total estimated project costs upon which the maximum obligation is based, the maximum obligation of the U.S. specified in the grant agreement may be increased by 15 percent. d. Increases in the Maximum U.S. Obligation for Grants Approved after September 30, 1992. Grants to acquire an interest in land for an airport (except a primary airport), may be increased by not Page 206
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more than the greater of the following, based on current creditable appraisals or a court award in a condemnation proceeding: (1) 15 percent; or (1) 25 percent of the total increase in allowable project costs attributable to acquiring an interest in land. e. Planning Items. If the increase in project costs is attributable to planning items, the maximum U.S. obligation may not be increased. Supplemental planning grants may be issued after determining that requirements for a new project have been met. f. Multi-Year Project. A multi-year grant may be amended each fiscal year through the duration of the project to increase the actual U.S. obligation provided that the total project cost does not exceed the U.S. obligational commitment stated in the grant plus any increase allowed in this paragraph. (See Paragraph 1102.) g. Request for Amendment. (1) Any amendment involving an increase in the maximum U.S. obligation must be requested by the sponsor in writing. (2) The request must state the purpose, justification, and amount of the amendment and be supported by whatever documentation (e.g. plans and specifications, cost information, etc.) that the FAA project manager considers necessary. (3) The foregoing request and documentation is not necessary if the project is a multi-year grant and the amount of the amendment will not make the U.S. obligation exceed the maximum obligational commitment. h. Approval of Increases to the Maximum U.S. Obligation. For approval of increases, the FAA Airports Offices shall review the sponsors request and supporting documentation and may approve increases to the maximum U.S. obligation if: (1) The funds are available; (2) The increased costs appear to be allowable; and (3) The amendment will result in a change to the maximum U.S. Obligation that is otherwise consistent with this paragraph.
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Section 6.
1150. GENERAL.
SUSPENSION
AND
TERMINATION
OF THE
GRANT
Failure to comply with grant conditions, other than civil rights, may result in suspension or termination of the grant. FAR Part 16, FAA Rules of Practice for Federally-Assisted Airport Proceedings 3 , 14 CFR Part 16 (Part 16 or Rules of Practice) provides detailed procedures for investigating and adjudicating exclusively airport-related complaints under the applicable Federal statutes and the obligations imposed on the FAA-Airport Sponsor relationship by those statutes. There are three civil rights statutory provisions that contain their own enforcement procedures and do not use 14 CFR Part 16. They are Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1973, as amended; and Title 49 U.S.C., Section 47123. Part 16 provides the only available vehicle for obtaining a final FAA decision in airport-related compliance matters except for the three civil rights statutory provisions noted above. (See Paragraph 1305 for withholding of payment.)
FAA Rules of Practice for Federally-Assisted Airport Proceedings, 61 FR 53998-54012, effective December 16, 1996.
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1156. DISTRIBUTION.
Copies of suspension and termination documents shall be distributed in the same manner as the distribution of the original agreement and any amendments. Suggested (minimum) Distribution: APP-520 APP-500 Page 209
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meeting. Advisory Circular, AC 150/5300-9, provides guidance on items to be considered in developing an agenda.
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g. Enforcement. Where an inspection, report, or other source reveals the sponsor is not providing satisfactory supervision and inspection of the construction, the sponsor will be immediately advised that adequate supervision is required under the terms of the grant agreement. Further, when any other discrepancy in civil rights, labor requirements, technical or engineering specification becomes evident, the region shall notify the sponsor and take follow-up action as necessary. If these actions fail to obtain satisfactory results, the sponsor will be advised that project payments will be suspended or other appropriate action taken until adequate supervision and inspection is provided to assure construction in accordance with approved plans and specifications. (See Paragraph 1305.)
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(1) The sponsor must be advised of the need to submit to the FAA Airports Office a performance report, on a quarterly basis, which includes: (a) A comparison of actual accomplishments to the goals established for the period. When applicable, a comparison will be made on a quantitative basis related to cost data for computation of unit costs; (b) Reasons for slippage in those cases where established goals are not met; (c) Relationship, if any, to AIP projects not covered within this grant; (d) Impact on PFC, F&E or other projects; and (e) Other pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs. (2) If any performance review conducted by the sponsor discloses a need for a grant amendment, the sponsor should be required to submit a request for an amendment on FAA Form 5100-100, Section B. The sponsor makes such a request whenever: (a) The revision results from changes in the scope or objective of the project; or (b) The revision increases or decreases the amount of Federal funds needed to complete the project. d. Construction Progress and Inspection Report. The sponsor may be required by the FAA Airports Office to submit FAA Form 5370-1, Construction Progress and Inspection Report, (Appendix 13) periodically, but no less than quarterly, on a case-by-case basis. e. Special Reports. Regardless of the performance-reporting schedule, sponsors are to be advised to notify FAA immediately whenever problems, events, or deficiencies occur that will require a major change in the scope of the project, or significantly affect the construction schedule or increase the total funds needed to complete the project by an amount that the FAA Airports Office considers significant. The sponsor will be notified by the FAA Airports Office of the amount that will trigger the special report.
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also apply, as appropriate. The sponsor of force account construction must keep records on costs of materials, hourly operation of equipment, payrolls, and all other costs to avoid disallowance of costs that cannot be verified in an audit.
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d. Personnel. Cost of labor and supervision shall be in accordance with state and local standards.
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C h a p t e r 1 3 . P R O J E C T P AY M E N T , C L O S E O U T , A N D AUDIT
Section 1. PROJECT PAYMENT
1300. GENERAL.
The AIP program has drawn criticism that AIP funds under grant are idle while critical projects are not funded because of a shortage of funds. One measurement that a project is progressing acceptably is the regularity that grant payments are being made or drawn down to reimburse for project accomplishments. When grant funds are drawn down regularly, this would prove that the funds are not idle. To facilitate reaching this stage, the FAA Airports Office requests that each AIP grantee request or initiate a draw down grant payment for project accomplishments every 30 days during the course of the project life. This 30-day requirement can be waived when the accomplishments are not significant enough to warrant a grant payment, i.e., less than $10,000. However, a request for or a draw down of a grant payment will be required within 30 days after the end of each federal fiscal year to cover all accrued grant costs from the prior fiscal year that have not been reimbursed. This would give an accounting of the year-end status of each project. Grant payment may be made to sponsors by letter of credit, electronic funds transfer, or Treasury check. The letter of credit as used in this program does not conform to the standard definition as used in the financial or banking communities. The letter of credit as used here is a draw down of funds against the grant obligation and is used to conform to the terminology on the approved Standard Form 272 and Order 2700.33. The letter of credit will be used unless the sponsor is ineligible or specifically requests payment by Treasury check or electronic funds transfer. Payments totaling not more than 90 percent of the United States Governments share of the projects estimated allowable costs may be made before the project is completed if the sponsor certifies to the FAA Airports Office that the total amount expended from the payments at any time will not be more than the cost of the airport development work completed on the project at that time (See 49 USC Section 47111). Payments cannot be made in advance of grant work being completed. The FAA Airports Office may require documentation from the sponsor to support any costs claimed. FAA Airports Offices should encourage sponsors to use the letter of credit to reduce paperwork.
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projects. It may be used for construction programs if the region believes that the form provides sufficient information. b. The Outlay Report and Request for Reimbursement, SF-271. Form SF-271 is prepared by the sponsor to request progress or final payment for construction projects or any other project for which the region feels a need for more detailed information than provided on SF-270. c. Distribution of Forms. The sponsor shall submit the original plus two copies of the necessary forms. After approval by the FAA Airports Office, the original and a copy shall be forwarded to the Regional Accounting Office.
d. Before forwarding the request for payment to the regional accounting office, the FAA Airports Office should ensure the sponsors name, project number, partial payment request number, and the DOT contract number are included on the form. e. If the request is for final payment associated with project closeout, see Section 2 of this chapter.
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terminated, see Paragraph 1150. Where there is a dispute between the sponsor and the contractor, see Paragraph 1314.
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e. Combination of the above. Regions may close out portions of projects that involve combinations of the preceding four categories when each specific portion meets its requirements for closeout.
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c. Excess Payments. If the final financial report indicates that payments have been made which exceed the Federal share of the estimated allowable costs or the sponsor has received interest on Federal funds to which it is not entitled, this amount constitutes a debt to the Federal Government. The accounting office should be informed of the amount and asked to send a notice to the sponsor that the debt should be paid within 30 days or a charge for interest and penalties in accordance with the Federal Claims Collection Standards will be assessed. See Paragraph 1304(b) for guidance regarding offset against another grant. d. Fiscal Adjustments. It may be necessary to make upward or downward adjustments as a result of an audit, grant amendments, or resolution of disputed costs.
1319. RESERVED.
Section 3. AUDITS
1320. GENERAL.
OMB Circular A-133-Revised June 24, 1997, Audits of States, Local Governments, and Non-Profit Organizations implements the Single Audit Act of 1984, P.L. 98-502 and Single Audit Act Amendments of 1996, P.L. 104-156, and establishes audit requirements for States, local governments, and non-profit organizations expending Federal awards. It requires that any States, local governments, and non-profit organizations that expend $300,000 or more a year in Federal funds shall have an audit made in Page 224
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accordance with OMB Circular A-133-Revised June 24, 1997. Operating Administrations (OAs) and Secretarial Offices (SOs) are also responsible for ensuring appropriate audit coverage for other types of assistance recipients not covered by the A-133 circular. Where DOT has been designated to serve as the cognizant agency, the responsibilities shall be divided between the OAs and SOs, and the Office of the Inspector General (OIG). The audit shall be made by an independent auditor and cover the entire financial and compliance operations of that government body. Audits will be conducted annually unless State or local law requires biennial audits. When the OAs, SOs, or the OIG determine that additional audits are necessary, such audits shall build on the results of independent auditors if the audits meet the criteria contained in OMB Circular A-133. Recipients that expend less than $300,000 a year in Federal assistance funds are exempt from single audit requirements; however, they must retain appropriate records to document their compliance with the requirements of their Federal assistance awards. The single audit concept was established to: a. Ensure that all Federal agencies rely on a single audit; b. Provide consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards; and c. Improve the financial management of Federal assistance programs. Since most sponsors receive grants from more than one Federal agency, cognizant agencies are assigned based on the Federal agency that provides the predominate amount of direct funding in accordance with Section 400 of OMB Circular A-133.
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(5) Be responsible for approving sponsor cost allocation plans and negotiating and executing indirect cost rate agreements, if required, with respect to all assistance programs; (6) Issue management decisions on audit findings within 6 months, and ensure that recipients take prompt corrective action. Copies shall be submitted to the OIG and other appropriate officials; and (7) Consider auditor requests for extensions of report submission due date, with the advice and assistance of the OIG. c. If FAA is not the cognizant agency, the FAA Airports Office responsibility is limited to responding to the audit findings and recommendations and to cooperating with the cognizant agency.
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e. Advise the sponsor of audits that have been found not to meet the requirements of OMB Circular A-133. The OIG shall also notify the cognizant operating administration of sponsor audit reports that do not meet the requirements of OMB Circular A-133; f. Coordinate, to the extent practicable, audits made by or for Federal agencies that are in addition to the audits required by OMB Circular A-133, so that the additional audits build upon such audits; g. Provide audits to support approval of cost allocation plans and indirect cost rates. These audits should be completed by the OIG within 30 days of the receipt of the audit request; h. Perform or arrange for special or supplemental audits at the request of the Federal Airports Office; i. Coordinate audit work performed by or for Federal/non-Federal organizations that are in addition to the audits required by OMB Circular A-133 so that additional audits build upon such audits to achieve the most efficient and cost effective results; j. Consider auditee requests to qualify as a low-risk audit; and k. Coordinate the management decisions for audit findings that affect the programs of more than one agency.
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e. Occupational Safety and Health Act of 1970. This Act is often referred to as the WilliamsSteiger Act. It applies to all contracts funded in part by Federal grants and requires contractors to observe health and safety standards developed by the Department of Labor (See 29 CFR 1910).
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of underpayment determined until after the construction work on the project has been completed. The project may be reopened and payment made in the amount of the restitution from whatever funds are then available. If any payment is to be withheld for more than 180 days, see chapter 13.
1409. LIQUIDATED DAMAGES UNDER THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT.
a. Liquidated Damages. The CWHSSA provides that the governmental agency to which the financial assistance for the work is provided may withhold or cause to be withheld from any monies payable on account of work performed by a (sub) contractor. Such sums may be determined administratively to be necessary to satisfy any liabilities of such (sub) contractor for unpaid wages and liquidated damages. Since the act uses the word may", the FAA has the option of determining whether or not Federal funds will be withheld from the sponsor for unpaid wages and liquidated damages. For example, if there is an unintentional violation and the contractor, upon notice, corrects the action, it will not be necessary for the FAA to withhold such funds and report the violation. If, on the other hand, the contractor intentionally fails to correct the violation or disputes the same, then the FAA should withhold an amount representing unpaid wages and liquidated damages in order that the Comptroller General will Page 232
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have a fund to pay wages due the contractors laborers and mechanics in the event it is determined they are due these funds. If funds are to be withheld for more than 180 days, see Chapter 13. b. Enforcement Procedures. The CWHSSA provides that Reorganization Plan Number 14 of 1950, as amended, shall be applicable with respect to the provisions of this Act. This Plan authorizes the Secretary of Labor to prescribe appropriate standards, regulations and procedures to be observed by the Federal agencies administering the labor standards provisions of various designated Acts, including the CWHSSA, as amended. The plan also authorizes the Secretary of Labor to cause such investigations to be made by DOL with respect to compliance with and enforcement of such standards, as he deems desirable. 29 CFR Part 5 covers the enforcement procedures applicable to the provisions of the Act. These enforcement procedures are summarized as follows: (1) Findings and Recommendations of the FAA. Whenever the FAA finds that the sum of the liquidated damages administratively determined to be due under the CWHSSA is incorrect or that the contractor or subcontractor inadvertently violated the provisions of the CWHSSA, notwithstanding the exercise of due care: (a) In Excess of $500. If the amount of the liquidated damages is in excess of $500, a recommendation may be made to the Secretary of Labor that an appropriate adjustment in liquidated damages will be made or that the contractors or subcontractors will be relieved of liability for such liquidated damages. Such findings with respect to liquidated damages necessarily include findings with respect to any wage underpayments for which liquidated damages are determined. (b) $500 or Less. If the amount of liquidated damages is $500 or less, an appropriate adjustment may be made or the (sub) contractor may be relieved of the liability of such damages without submitting recommendations or a report to the Department of Labor. (2) Findings by the Department of Labor. The recommendations of the FAA, submitted to the Department of Labor under Subparagraph (1) above, are reviewed initially by the appropriate office of DOL. Whenever DOL concurs in the findings and recommendations of the FAA, an order will be issued to that effect. If, however, DOL does not concur with the findings and recommendations of the FAA, the matter is transmitted to the second review level in DOL. The decision and order of the second level review with respect to the issues involved is their final action. c. Limitations, Variances, and Tolerances. Upon the request of any Federal agency or upon his/her own initiative, the Secretary of Labor may provide, under the CWHSSA, reasonable limitations and allow variations, tolerances and exemptions to and from any or all provisions of that Act whenever the Secretary finds such action to be necessary and proper in the public interest to prevent injustice or undue hardship or to avoid serious impairment of the conduct of Government business. Any request for such action by the Secretary shall be submitted in writing and shall set forth the reasons for which the request is made.
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companion documents in this area. It is the responsibility of the FAA Airports Offices to ensure the appropriate clauses are inserted into the grants and with respect to Executive Order 11246 (Equal Employment Opportunity), into contracts. The FAA Airports Offices are responsible for reporting to the Assistant Administrator for Civil Rights Staff any information indicating a possible failure to comply with Title II of the ADA or Section 504 of the rehabilitation Act of 1973. The Regional Civil Rights Staffs are responsible for ensuring that appropriate clauses are inserted into contracts for all other authorities listed below. The headquarters Office of Civil Rights (ACR) and the Regional Civil Rights Staffs are responsible for conducting investigations of discrimination complaints and for conducting periodic compliance reviews. The Department of Labor is responsible for enforcing the requirements under Executive Order 11246, as amended, discussed in Paragraph 1424. In all enforcement procedures, FAAs action is with respect to the sponsor, who may be required to take action against an activity in order to enforce a DOT finding. Title VI of the Civil Rights Act of 1964. Title VI states that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. These requirements are primarily concerned with discrimination in service to the public. To implement the requirements of Title VI, the Department of Transportation (DOT) issued Title 49 CFR, Part 21, Nondiscrimination in Federally assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964. a. Standard DOT Title VI Assurance. Beginning in October 1984, the first grant issued to a sponsor to construct a facility (including runways, taxiways, aprons, etc.) or to purchase land must include the DOT Title VI Assurance, which includes clauses for contracts and subcontracts and requirements for deeds, licenses, leases, permits, or similar instruments. All grants must have the Standard DOT Title VI Assurances attached to the grant agreement. Acceptance of the grant agreement constitutes acceptance of the Title VI Assurances and a signature on the assurances themselves is not required. (1) Duration. This assurance obligates the sponsor for the period during which the financial assistance is extended to the program, except where personal or real property is involved. In that case, a sponsor is obligated for the longer of: (a) The period the property is used for the purpose for which the financial assistance was extended, or for another similar purpose; or (b) For as long as the sponsor retains ownership or possession of the property. (2) Property Acquisition or Improvement. When real property is acquired or improved with Federal funds, the sponsor must agree to include Title VI covenants in any subsequent deed, license, lease, permit, or other agreement pertaining to the property. (3) Reverter Clauses. The appropriate clauses of Attachment 2 in Appendix 11 need to be inserted as a covenant running with the land, in any future deeds, leases, permits, and similar agreements entered into by the recipient with other parties for the subsequent transfer of real property acquired or improved under a Federal financial assistance program of the FAA and for the construction or use of or access to space on, over or under real property acquired or improved under the Federal financial assistance program of the FAA. A reverter clause gives the sponsor the right to reclaim property titled to a third party if the party fails to comply with conditions, assurances, and covenants in the agreement established under Title VI. When real property is acquired or improved with Federal funds, the FAA must make a determination whether the sponsor will be required to use reverter clauses in subsequent transfers or other agreements pertaining to the property. In the case where land is acquired in a noise mitigation program that contains Federal funds and subsequently sold for a compatible land use, a reverter clause would not normally be required. If however, the sponsor chooses to lease the land for a compatible land use, and the lessee provides a service to the general public, a Page 234
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clause terminating the lease for non-compliance with the Title VI assurances, covenants and conditions should be inserted into the lease. This would allow the sponsor to recover the property where violations of the Title VI assurances by the leaseholder are committed. The FAA will require use of these clauses on a case-by-case basis considering the past civil rights record of the sponsor. Insertion of the reverter clauses in a grant agreement binds the sponsor to use the clauses in all-future deeds, leases, licenses, permits, and similar agreements in which the land was originally acquired with or improved under a financial assistance program of the FAA. (See Appendix 15.) b. Enforcement of Title VI. Regional Civil Rights Offices are responsible for conducting compliance reviews and investigating complaints of violations. Any complaint received alleging discrimination under Title VI should be referred to the Regional Civil Rights Office for processing. (See Draft Order 1400.11 for further guidance). FAA Airports Offices should cooperate fully in the agencys attempt at informal resolution. If informal resolution is not successful, the FAA Airports Office may be told to suspend, terminate, or refuse to grant in accordance with Title 49 CFR, Part 21.
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(2) Under the lead agency concept, a sponsor receiving funds from more than one DOT operating administration (OA) submits its revised program to only one OA. This OA, known as the lead agency", coordinates its review with the other OAs involved. The lead agency for state departments of transportation is generally the Federal Highway Administration (FHWA) since it generally provides more funds to these recipients (sponsors) than does FAA or the Federal Transit Administration (FTA). Thus, a state block sponsor will generally submit its DBE program to the responsible FHWA official. (3) However, the state should submit its goal(s) for projects funded by the block grant to the responsible FAA Regional Civil Rights Officer. In accordance with Section 26.45(e)(2), the state may submit a single overall goal for contracts funded by the grant (and any other FAA grants) during the forthcoming fiscal year or, subject to FAA approval; it may submit separate overall goals covering one or more projects. If a single goal is used, the supporting methodology must reflect any variations in the availability of DBEs by project location. (4) If a nonprimary airport recipient under the state block grant program also receives funding directly from the FAA, the sponsor must submit a DBE program (or updated goal, if a program has previously been implemented) to FAA for review when it anticipates awarding more than $250,000 in prime contracts in Federal funds during a Federal fiscal year. The DBE program, including the overall goal, should address only the funds received directly from FAA, not the funds received from the state under the block grant program. f. State Departments of Transportation as Contracting Agents. In some cases, the state department of transportation serves as the contracting agent for individual airports. The airport, as sponsor, is responsible for satisfying all requirements levied pursuant to Title 49 CFR, Part 26. If the state is not the sponsor, the airport is responsible for ensuring that the state provides FAA with required programs and goals and implements other required steps. g. Scope of Requirements. Contracts awarded by a sponsor which are not funded by an AIP grant are not subject to the provisions of Title 49 CFR, Part 26.3(d). h. Contracts not Covered by DBE Program Requirements. A contract that is not subject to the DBE program requirements must comply with other provisions. These include title 49 CFR, Part 26.7(a) and certain provisions of Title 49 CFR, Part 26.13. i. Force Account. A DBE program is required only when the sponsor will award contracts from the covered grant. (1) A sponsor that will accomplish all work under a project with its own personnel or the personnel of another public agency, rather than by contracting, is not required to implement a DBE program. Procedures and requirements for accomplishing work by this means (known as force account) are outlined in Chapter 10. (2) A related situation occurs when DOT-assisted contracts will be let from a grant requiring a DBE program, but a portion of the project will be accomplished by force account. In this case, the overall goal is based only on the contracts to be awarded, while the funds expended in force account are excluded from the goal-setting process.
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b. Enforcement of Section 47123. Any complaint alleging discrimination in employment practices under Section 47123 is to be directed to the regional Civil Rights office. From there, the complaint will be transferred to the Departmental Office of Civil Rights and on to the Equal Employment Opportunity Commission (EEOC). If it involves a class complaint, the complaint will be investigated by DOT/FAA Civil Rights office, as appropriate.
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a. DOT Regulation Title 49 CFR, Part 27. This regulation implements Section 504 and sets out detailed requirements for grantees under Federal financial assistance programs. The rule prohibits employment discrimination and requires sponsors to make reasonable accommodations to the disabilities of otherwise qualified employees. In addition, sponsors are required to make their existing and future facilities and programs accessible to disabled persons by providing specific equipment to accommodate them. Sponsors are not required to make structural changes to their facilities constructed prior to July 26, 1992, unless other methods are not effective. Other methods may include redesign of equipment, reassignment of services to accessible buildings, delivery of services at accessible facilities, or any other methods that result in accessibility. Sponsors must give priority to the method that provides the most integrated setting appropriate for persons with disabilities (title 28 CFR, Part 35.130(d)). In addition, public airports must make reasonable modifications to its policies, practices, or procedures when the modifications are necessary to avoid discrimination on the basis of disability, unless the airport can demonstrate that the modifications would fundamentally alter the nature of the service, program, or activity (title 28 CFR, Part 35.130(b)(7)). A sponsor is not required to take any action that will result in a fundamental alteration in the nature of a service, program, or activity or would result in undue financial and administrative burdens. Specific equipment that is not part of the real property (telephones, teletypewriters, etc.) is not eligible under present legislation. The design and construction of new buildings and the alterations and the necessary structural modifications to existing buildings must comply with accessibility standards under Title II and Section 504. b. Responsibility of FAA. Transition plans are the airports specific plans to make structural modifications to existing buildings where necessary to meet accessibility standards. All airports under Section 504 were required to submit a transition to the FAA for approval where extensive structural changes were necessary. All the remaining airport sponsors who had not previously submitted a plan to the FAA were to have done so by March 3, 1997, (Title 49 CFR, Part 27.71(g)). The regional civil rights staff is responsible for reviewing plans and specifications for compliance with Section 504 accessibility. The regional Civil Rights staff is also responsible for conducting investigation of complaints filed under Section 504 and conducting compliance reviews. c. Enforcement of Title 49 CFR, Part 27. If informal resolution is not successful, the FAA Airports Office may be told to suspend, terminate, or refuse to grant in accordance with Title 49 CFR, Part 27. See 49 CFR 27.125 and Chapter 11, Section 6.
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Appendices
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A p p e n d i x 1 . N O N - A L L O WA B L E I T E M S
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Appendix 2. RESERVED
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A p p e n d i x 3 . S TA N D A R D F O R M 4 2 4
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A p p e n d i x 4 . P A R T I I P R O J E C T A P P R O VA L I N F O R M AT I O N ( FA A F O R M 5 1 0 0 - 1 0 0 )
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A p p e n d i x 5 . P R O J E C T A P P R O VA L I N F O R M AT I O N ( FA A F O R M 5 1 0 0 - 1 0 1 ) ( P L A N N I N G P R O J E C T S ) ( 8 P A G E S )
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A p p e n d i x 8 . P R O J E C T E VA L U AT I O N R E V I E W A N D D E V E L O P M E N T A N A LY S I S C H E C K L I S T ( FA A F O R M 5 1 0 0 - 1 0 9 ) ( 1 P A G E )
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A p p e n d i x 2 2 . A G R E E M E N T O N S TAT E S P O N S O R S H I P A N D A I R P O R T S P O N S O R O B L I G AT I O N S ( 2 P A G E S )
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A p p e n d i x 2 3 . A D J U S T M E N T S O F F E D E R A L S H A R E S AT C E R TA I N A I R P O R T S ( 1 P A G E )
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A p p e n d i x 2 8 . A I P G R A N T S TAT U S R E P O R T
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A p p e n d i x 2 9 . F I N A N C E T E M P L AT E F O R L O I APPLICANTS (1 PAGE)
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A p p e n d i x 3 0 . O B L I G AT I O N S I N B L O C K G R A N T S U S P E N S I O N O R T E R M I N AT I O N ( 1 P A G E )
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