Can a project with a total cost of less than $500 million be designated as a Major Project?
What plans are required for Major Projects?
Who is responsible for submitting the Finance and Project Management Plans?
What is a Project Management Plan?
Who approves the Project Management Plan?
Which projects must have a Project Management Plan?
Who approves the Finance Plan?
Which projects must have a Financial Plan?
What costs must be included in the estimated cost of the project?
What is the role of the FHWA in the project delivery process?
Based on the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), signed into law on August 10, 2005, a Major Project is defined as "a project with a total estimated cost of $500 million or more that is receiving financial assistance." Generally the Project Owner is the Transportation Agency (STA), but major projects can also be developed by other State Agencies (Toll Agencies), Local Public Agencies, and/or Private Ventures (e.g. Public Private Partnerships.)
Yes, the FHWA has the discretion to designate a project that has a total cost of less than $500 million and is receiving Federal financial assistance as a Major Project. The FHWA may choose to do so in situations that include, but are not limited to, those where the project: requires a substantial portion of State Transportation Agency (STA)'s program resources; has a high level of public or congressional interest; is unusually complex; has extraordinary implications for the national transportation system; or is likely to exceed $500 million in total cost during the life of the project.
Yes, any amount of Federal financial assistance can trigger the Major Project requirements.
Yes, any recipient of Federal financial assistance for a project exceeding $500 million must comply with Major Project requirements.
Section 106(h) of title 23, as enacted by SAFETEA-LU, requires the recipient of Federal financial assistance for Major Projects to prepare and submit to FHWA a Project Management Plan and Finance Plan with annual updates.
For Major Projects, the recipient of Federal financial assistance must prepare and submit to the FHWA a Project Management Plan and a Finance Plan for approval at the major milestones as specified in the FHWA Major Project Deliverable Timeline.
While the preparation of the Financial Plan is also expected of Projects between $100 and $500 million in cost, the submittal of the Financial Plan to the FHWA is not required. The Financial Plan of these projects, however, is subject to FHWA review upon request.
The recipient of the Federal financial assistance, most often the State Transportation Agency (STA), will be responsible for preparing and submitting the Finance and Project Management Plans to the FHWA. In the case of a P3 where there may be no federal assistance provided to the STA and the private entity delivering the project is securing a TIFIA loan, the private entity receiving the TIFIA loan will be responsible for submitting the Plans to the FHWA.
The Project Management Plan is the guide for implementing the major project and documents assumptions and decisions regarding communication, management processes, execution and overall project control. The purpose of the Management Plan is to clearly define the roles, responsibilities, procedures and processes that will result in the project being managed such that it is completed on-time, within budget, with a high degree of quality, in a safe manner and in a way in which the public trust, confidence and support in the project will be maintained.
In accordance with Section 106(h)(2) of Title 23, as amended by SAFETEA-LU, a Project Management Plan shall "document the procedures and processes that are in effect to provide timely information to the project decision makers to effectively manage the scope, costs, schedules, and quality of, and the Federal requirements applicable to, the project. A Project Management Plan shall also document the role of the agency leadership and management team in the delivery of the project. It is essential that the Project Management Plan establishes the metrics by which success of the project is defined."
The FHWA has developed Project Management Plan guidance that describes topics that form the basic contents of a Project Management Plan that meet the SAFETEA-LU requirements. This guidance is intended to be a general framework for the Project Management Plan, but not a prescriptive format. View the Project Management Plan Guidance.
The FHWA Division Office approves the Project Management Plan in consultation with the FHWA Headquarters Project Delivery Team. Once the Record of Decision (ROD), Finding of No Significant Impact (FONSI) or Categorical Exclusion (CE) determination has been made for a project, FHWA may withhold any further project approvals until the Project Management Plan is approved.
Project Management Plans are required for projects that have been designated as Major Projects.
A Financial Plan is a comprehensive document that reflects the Project's cost estimate and revenue structure and provides a reasonable assurance that there will be sufficient financial resources available to implement and complete the project as planned. Section 106(h)(3) of Title 23 states that a financial plan "is based on detailed estimates of the cost to complete the project and provide for the annual submission of updates that are based on reasonable assumptions, as determined by the Secretary, of future increases in cost to complete the project."
The FHWA has developed Financial Plan guidance that describes the contents of a Finance Plan that are necessary to meet the requirements of 23 U.S.C. 106. This guidance is intended to be a general framework for the Financial Plan, but not a prescriptive format. View the Financial Plans Guidance.
The FHWA Division Office will approve the initial Financial Plan with prior concurrence from the FHWA Headquarters Project Delivery Team. The FHWA Division Office will approve annual updates to the Financial Plan with prior concurrence for the Project Delivery Team on an as-requested basis by either office. The FHWA will not approve the award of a Federal-aid construction contract without an approved Initial Financial Plan, and may withhold future Federal-aid contract awards subject to the approval of required annual updates.
Financial Plans are required for projects that have been designated as Major Projects; projects with costs ranging from $100 to $500 million; as well as TIFIA projects. While Financial Plans for Major Projects must be submitted to the FHWA for approval, those for projects that range from $100 to $500 million in cost do not need to be submitted to the FHWA. However, these projects' Financial Plans are subject to the agency's review upon request.
All costs that are associated with the project from the National Environmental Policy Act (NEPA) phase through final construction must be included regardless of the source of funding. The cost of the project must include adequate contingencies and reserves for all cost elements. These costs must be expressed in year of expenditure dollars and estimated using a risk based approach, which is consistent with current FHWA Cost Estimating Guidance. The FHWA will conduct cost estimate reviews as appropriate at critical stages throughout the project to review the cost estimate.
A sample matrix of FHWA's responsibilities in different processes throughout the project delivery process is presented in the table below.
| # | Activity | Authority | Action | Frequency | Delegated To |
|---|---|---|---|---|---|
| R = Review, A = Approve, C = Compliance | |||||
| SP | Statewide Planning | ||||
| 1. | 20 yr Statewide transportation plan | 23 CFR 450.214 | R for C | As updated | Community Planner |
| 2. | 3 yr STIP & amendments | 23 CFR 450.216, 220 | R & A w/ FTA | As requested by State (at least biennially) | Community Planner |
| 3. | Interstate additions & access revisions | 23 CFR 470.111, 115(a) | R & A or Recommend action to HQ for system to system or new | As requested by State | Headquarters and/or Design Engineer |
| 4. | NHS revisions | 23 CFR 470.113, 115(a) | R & Recommend action to HQ | As requested by State | Headquarters |
| MP | Metropolitan Planning | ||||
| 1. | Transportation plan for non-attainment metropolitan areas | 23 CFR 450.322 | R & A | Every 3 yrs | Community Planner |
| 2. | Transportation plan for attainment metropolitan areas | 23 CFR 450.322 | R for C | Every 5 yrs | Community Planner |
| 3. | Transportation Improvement Plan (TIP) and corollary STIP amendments for non-attainment areas | 23 CFR 450.324 - 330(b) | R & A | As requested by State - at least biennially | Community Planner |
| AQ | Air Quality | ||||
| 1. | Transportation plan conformity determination for non-attainment areas | 23 CFR 450.322(d) | R & A | Every 3 years | Community Planner |
| 2. | TIP conformity determination for non-attainment | 23 CFR 450.330(b) | R & A | Every 2 years | Community Planner |
| E | Environment | ||||
| 1. | Environmental document determination (all other projects) | 23 CFR 771.113 | R & A | As submitted by State | Project Manager |
| 2. | Final EIS | 23 CFR 771.125 | R & A | As submitted by State | Division Administrator |
| 3. | Record of Decision (ROD) | 23 CFR 771.127 | R & A | 30 days after publishing final EIS | Division Administrator |
| 4. | EIS written re-evaluations | 23 CFR 771.129 | R & A | If no action is taken within 3 years after final EIS as submitted by State | Project Manager |
| 5. | Section 4(f) individual | 23 CFR 771.135 | R & A | As submitted by State | Project Manager |
| 6. | Section 106 actions | 36 CFR 800 | R & A | As submitted by State | Project Manager |
| 7. | Implement Mitigation Commitments during PS&E Review | 23 CFR 635.309(3)(j) | R & A | Project by Project | Project Manager |
| DCM | Design, Construction, & Maintenance | ||||
| 1. | Consultant Agreements, Supplements, and Settlements for Megaproject | 23 CFR 172.5 | R & A | As needed | Project Manager |
| 2. | Projects Near Airports | 23 CFR 620.103 | R | As requested | Project Manager |
| 3. | Highway Facility Relinquishment | 23 CFR 620.203 | R & A | As needed | Project Manger |
| 4. | Design Exception Request | 23 CFR 625.3 | R & A | As needed | Project Manager (w/ Design Engineer) |
| 5. | Plans, Specifications, & Estimates (PS&E) | 23 CFR 630B, 23 CFR 633.102 23 USC 106 | R & A | Project by project | Project Manager |
| 6. | Competitive Bidding | 23 CFR 635.104, 23 USC 112 | R & A | As requested | Project Manager |
| 7. | Use of Public Owned Equipment | 23 CFR 635.106 | R & A | As needed | Project Manager |
| 8. | Changed Conditions | 23 CFR 635.109 | R & A | As needed | Project Manager |
| 9. | Concurrence in Award | 23 CFR 635.114, 23 USC 112(d) | R & A | Project by project | Project Manager |
| 10. | Changes and Extra Work | 23 CFR 635.120 | R & A | As needed | Project Manager |
| 11. | Claims | 23 CFR 635.124 | R & A | As needed | Project Manager |
| 12. | Statement of Materials and Labor (NHS projects of $1 million or more) (form FHWA-47) | 23 CFR 635.126 | Periodically R for C (State prepares and submits to HQ | Project by project | Project Manager |
| 13. | Public Agency Furnished Material | 23 CFR 635.407 | R | As needed | Project Manager |
| 14. | Utility Agreement | 23 CFR 645.113 | R & A | Project by project | Project Manager |
| 15. | Railroad Agreement | 23 CFR 646.216 | R & A | Project by project | Project Manager |
| 16. | Construction Inspection | FAPG G 6042.8 | R for C | As needed | Project Manager |
| 17. | Project Authorizations/Agreements (PE, Final Design, ROW, Utilities, RR, Force Account) | 23 CFR 630 Subpart C | Accept | As needed | Project Manager (w/ Finance Manager) |
| 18. | Authorization to Advertise | 23 CFR 630.106 and 23 CFR 635.309 | R & A | Project by project | Project Manager |
| 19. | Advanced Construction (all projects) | 23 CFR 630.705 | R & A | As needed | Project Manager |
| 20. | Payroll (all projects) | 23 CFR 635.118 | R | As needed | Project Manager |
| 21. | Termination of Contract | 23 CFR 635.125 | R & A | As needed | Assistant Division Administrator |
| 22. | Value Engineering (NHS and $25 million or more) | 23 CFR 627 and P.L. 104-59 Sec 303 | R for C (State conducts study) | Project by project | Project Manager (w/ Design Engineer) |
| 23. | Bid Opening/Tabulations | 23 CFR 635.113 | Periodically R for C (State takes action) | Per letting | Field Operations Engineer |
| 24. | Utility Agreement Alternate Procedure | 23 CFR 645.119 | R & Accept | One time | Program Operations & Engineering Team Leader (w/ ADA) |
| 25. | Utility Accommodation Policy | 23 CFR 645.215 | R & A | When changes occur | Program Operations & Engineering Team Leader (w/ ADA) |
| 26. | Railroad Agreement Alternate Procedure | 23 CFR 646.220 | R & A | One time | Program Operations & Engineering Team Leader (w/ ADA) |
| PM | Pavement & Materials | ||||
| 1. | Buy America | 23 CFR 635.410 | R & A | As Needed | Project Manager |
| 2. | Proprietary Materials | 23 CFR 635.411 | R & A | As Needed | Project Manager |
| 3. | Warranties | 23 CFR 635.413 | R & A | As Updated | Project Manager |
| 4. | Convict Produced Materials | 23 CFR 635.417 | R & A | As Needed | Project Manager |
| 5. | Materials Acceptance | 23 CFR 637.207 | R & A | As Updated | Project Manager |
| 6. | Quality Control/Quality Assurance Programs | 23 CFR 637.207 | R & A | As Updated | Project Manager |
| 7. | Sampling and Testing of Materials | 23 CFR 637.207 | R & A | As Updated | Project Manager |
| B | Bridge | ||||
| 1. | HBRRP eligibility determinations | 23 CFR 650 Subpart D | R & A | Project by project | Finance |
| 2. | HBRRP discretionary candidate submittals | 23 CFR 650 Subpart D | R & A | Annually by July 1 | Bridge Engineer |
| 3. | TS & L and PS&E reviews | 23 CFR 630, 23 USC 106, and W.O. 11/13/98 memo | R & A | Project by project | Project Manager (w/ Bridge Engineer) |
| 4. | Innovative Bridge Research and Construction Program eligibility determination | 23 USC 503(b) | R & A and submit to HQ | Annually (date varies) | Bridge Engineer |
| 5. | Construction inspections | FAPG G 6042.8 | R for C | As needed | Project Manager (w/ Bridge Engineer) |
| M | Mobility/ITS | ||||
| 1. | Congestion management system | 23 CFR 500.109 | R for C | As needed/revised by MPO/State | Project Manager (w/ ITS Engineer) |
| 2. | Conformity with National ITS Architecture | FHWA Final Rule dated January 8, 2001 | R for C | As needed w/PS&E submission (full oversight projects that affect regional integration) | Project Manager (w/ ITS Engineer) |
| 3. | ITS Life Cycle Cost (>$3 million) and ITS Financing and Operations Plan | TEA-21 Section 5210 | R for C | As needed for projects funded by TEA-21 Sections 5208 and 5209 | Project Manager (w/ ITS Engineer) |
| 4. | ITS Service Plan | TEA-21 Section 5207 | Develop | As needed | ITS Engineer |
| FM | Financial Management | ||||
| 1. | Finance Plan & Annual Updates for Megaprojects | TEA-21 Section 1308, and associated FHWA Guidance | Review & Accept | Prior to authorization of construction, and annually thereafter. | Division Administrator |
| 2. | Project Agreements - including drug free work place and other provisions | 23 CFR 630 Subpart C | Accept | As needed | Finance Manager (w/ Project Manager) |
| 3. | Fed-aid billing reimbursement of eligible expenditures | 23 CFR 140 and 635.122 | R & A | Weekly | Finance Manager |
| 4. | Transfer of funds as requested by State | 23 USC 104 (c) and 119 (f) | R & A | As needed | Finance Manager |
| S | Safety | ||||
| 1. | Work Zone Safety Process review of effectiveness | 23 CFR 630.1010 | R & A | Annually by Sept. 30 | Safety Engineer |
| R/W | Right-of Way | ||||
| 1. | State R/W Manual changes | 23 CFR 710.201 | R & A | Jan. 1, 2001 & every 3 years thereafter | ROW |
| 2. | Uniform Relocation Assistance and Real Property Acquisition Report - (OMB Form 2125-0030) | 49 CFR 24.9(c) and Appendix B | R | Every 3 years | ROW |
| 3. | Requests for waivers | 49 CFR 24.204(b) | R & A | As submitted by State | ROW |
| 4. | Use of R/W Air Space authorization request (on Interstate system) | 23 CFR 710.405 | R & A | Project by project | ROW |
| 5. | Access Break / R/W Disposal authorization request (if on Interstate system or fair market value not charged) | 23 CFR 710.401 & 409 | R & A | Project by project | ROW |
| 6. | Functional Replacement | 23 CFR 710.509 | Periodically R for C (State takes action) | As needed | ROW |
| 7. | Lead Agency Uniform Act monitoring activities | 49 CFR 24.603 | R for C | As needed | ROW |
| 8. | Develop R/W oversight agreement | 23 CFR 710.201(i) | R & A | By Jan. 1, 2001 and updated as needed | ROW |
| CR | Civil Rights | ||||
| 1. | Title VI Plan accomplishments and next year's goals | 23 CFR 200.9 | R & A | Annually by Oct. 1 | Civil Rights |
| 2. | Title VI Plan update | 23 CFR 200.9 | R & A | As needed or requested by State | Civil Rights |
| 3. | EEO Contract Compliance review reports (form FHWA 86) | 23 CFR 230.409, 230.413 | R & A | As submitted by State | Civil Rights |
| 4. | Disadvantaged Business Enterprise (DBE) Program revisions | 49 CFR 26.21(b) | R & A | As needed or as requested by State | Civil Rights |
| 5. | State's DBE program goals | 49 CFR 26.41 | R & A | Annually by Aug 1 | Civil Rights |
| 6. | Supportive services funds requests | 23 CFR 230.113 | R & A | As requested by State | Civil Rights |
| 7. | Annual Contractor Employment Report (Construction Summary of Employment Data (form PR-1392)) | 23 CFR 230.121(a) | R for C and send to HQ | Annually by Sept 25 | Civil Rights |
| 8. | Report on supportive services (On-the-Job Training (OJT) & DBE) | 23 CFR 230.121(e) | R for C and send to HQ | Quarterly by April15, July 15, Oct 12, and Jan 15 | Civil Rights |
| 9. | OJT goals & accomplishments | 23 CFR 230.111(b) | R for C | Annually by Jan 30 | Civil Rights |
| 10. | Report on supportive services (OJT & DBE) | 23 CFR 230.111, 113 | R for C | Quarterly | Civil Rights |
| 11. | Americans with Disabilities Act Review complaint | Voluntary agreement with Justice Dept. | Conduct evaluation & correct or recommend action to HQ | As requested by HQ | Project Manager |
