Introduction to FHWA

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Introduction to FHWA the Federal-Aid Program
FEDERAL HIGHWAY ADMINISTRATION

• FHWA - Operation Engineers
• Gene Kaufman, P.E. (Glendive District)
• Bob Seliskar, (Great Falls District)
• Jeff Patten, (Butte District)

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Objectives

• Overview of Federal-Aid Program
• FHWA Roles and Responsibilities
• Project Management

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Overview of Federal-Aid Program

• Introduction
• The FHWA organization
• The Federal-Aid Program

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DOT Agencies
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FHWA Offices
Montana DivisionHelena, MT
Resource Center, Olympia Fields, IL
Western Federal Lands Vancouver, WA
Resource Center, Baltimore, MD
Resource Center, SanFrancisco, CA
Eastern Federal Lands Sterling, VA
Central Federal Lands Denver, CO
HQ, Washington, DC
Resource Center, Atlanta, GA
Federal-aid Offices 52 Division Offices 3 Federal
Lands Division Offices 1 Resource Center in 4
locations 1 Headquarters Office
Total FHWA Employees lt 2500
Total MDT Employees 2250
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Montana Division
Kevin McLaury (P.E.), Division Administrator
Laura Whitten, Staff Assistant
Mike Duman (P.E.), Assistant Division
Administrator
Program Development
Operations
Admin Finance
Ted Burch (P.E.) Team Leader Bridge
Engineer Carl James (P.E.) ROW, Environment Mark
Zitzka Pavement, Materials, Maintenance Bob
Burkhardt Planning Research Lloyd Rue (P.E.)
Safety, Design, Traffic Crystal Adams PDP
Mike Kulbacki (P.E.) Team Leader Craig
Genzlinger (P.E.) D1-Missoula Jeff Patten
D2-Butte Bob Seliskar D3-Great Falls Gene
Kaufman (P.E.) D4-Glendive Alan Woodmansey
(P.E.) D5-Billings Jason Senn Co-op Student
Scott Swarens Team Leader Grace Speicher
Financial Specialist Ben Franks-Ongoy
Administrative Assistant Andy Wyciskalla
Computer Specialist (Consultant)
20 People
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Overview of Federal-Aid Program

• Introduction
• The Federal-Aid Program
• Financing and funding

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Eligible Federally Funded Highways

• 23 CFR 470.103
• means highways on the Federal-aid highway system
  and all other public roads not classified as
  local roads or rural minor collectors.
• Designated as major collector and above
• (STPS, STP, NHS, IM)
• Some Bridge and Safety projects off system

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LAW Title 23 USC
REGULATIONS 23 CFR
FHWA Policy and Directives
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Past Highway Bills

• ISTEA (91-97) 155 B
• TEA-21 (97-03) 218 B (gt40)
• SAFETEA-LU (03-09) 244 B (gt12)
• Future Hwy Bill (09-15) ??? B (gt??)

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SAFETEA-LU

• Authorization thru FFY 2009
• Appropriated on a yearly basis
• 244 billion total authorized nationally
• MDT appropriated avg. 355 Mil/year

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Federal - Aid Financing

• Federal Highway Trust Fund Income Sources
• Motor Fuel 18.4 /gal
• Diesel Fuel 24.4 /gal
• Other User Fees (Truck Related Taxes)
• Montana State Gas
• Motor Fuel 27.8 /gal (Sixth highest nationally)
• Diesel Fuel 28.5 /gal (Fifth highest
  nationally)

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Federal-aid Financing

• Money Goes Back To Individual States
• Donor v. Donee
• Montana receives back more than 2.20 for every
  dollar of Federal Fuel tax collected in the state
• Requirements (23 CFR)
• Matching requirements
• IM FHWA 91.24 MDT 8.76
• NHS FHWA 86.58 MDT 13.42
• Program Requirements (IM, NHS, STP)

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SAFETEA-LU Authorizations Highway and Highway
Safety Programs for Montana
(Millions/year)
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Reimbursable Program(Not a grant program)
Authorized to proceed
Contractor Does Work
State Pays Contractor
State Submits Voucher to FHWA
FHWA Sends Voucher to US Treasury
Treasury Pays State
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The Federal role in the Federal-aid highway
program

• Set minimum national standards
• Ensure system compatibility
• Provide capital assistance
• Program oversight (Report to Congress)

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FHWA Roles and Responsibilities

• MDT/FHWA Partnership
• Federal-Aid Participation

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Partnership

• Federally
• Funded
• Funding
• Guidance
• Technical Assistance
• Oversight

• State Administered
• Plan
• Design
• Construct
• Operate Maintain

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MDT FHWA MTC Partnership Agreement

• Revised and Signed 2004
• Currently being revised.
• Roles Responsibilities
• Foster cooperation and strengthen partnership

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Full Oversight

• FHWA Full-Oversight Projects
• NHS projects gt 3mil
• Interstate reconstruction gt1mil
• Emergency Relief or Special Circumstances

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Non Full Oversight

• Non Full-Oversight Projects
• All other Federal-aid projects non NHS
• CTEP, Guardrail, Striping/Pavement Markings,
  Traffic Signal projects regardless of total
  construction cost or highway system
• 100 State Funded Projects
• No FHWA oversight, but may require FHWA action
  (for example Interstate, NHS)
• Routine maintenance

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Oversight

• FHWA approves/concurs
• Full-Oversight projects
• Financial authorization
• Environmental Document
• Design Reviews and PSE
• Design Exceptions
• Contract award
• Change orders
• Final inspection Final acceptance
• Claim/Legal settlement
• Non Full-Oversight projects
• Environmental Document and Financial
• As needed if there may be a Federal-aid issue

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Non Full Oversight

• Same Federal-aid rules apply for
  non-full-oversight projects
• MDT duty and responsibility.
• Contact us if you have questions

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FHWA Roles and Responsibilities

• MDT/FHWA Partnership
• Federal-Aid Participation

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Things We Hear

• Everythings Eligible for Federal-aid
• This isnt a fulloversight project
• How do I know whats eligible?
• It makes sense why cant we pay for it?

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Basic Guidance

• Generally Federal-aid will not participate if
• Does not follow terms of contract
• Pays for same material/work twice
• Items that are not incorporated into the project
• Violates State or Federal law/regulation

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Ineligible Items

• Work outside of the approved project limits
• Work not covered in the environmental document
• Costs incurred prior to FHWA authorization
• Costs not adequately documented
• Costs related to negligent MDT actions

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Ineligible Items

• Items not Incorporated into Project
• Examples
• Restocking fee
• Item transfer
• Materials retained by MDT Maintenance
• Excess aggregate retained by MDT

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Ineligible Items

• Maintenance Performed by Contractor
• Examples
• Cleaning culverts lt 4
• Maintenance stockpiles

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Ineligible Items

• Out of Spec Materials that MDT Accepts
• Examples
• Stockpiled material not meeting spec
• Items not installed according to specifications
• Experimental Proprietary product (without
  approved experimental feature program)

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Ineligible Items

• Waiver of Contract Time/LDs without
  justification
• Examples
• MDT does not charge contract time properly so
  waives LDs
• Transportation Commission waives LDs without
  justification

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Non-par What do we do?

• Decision to proceed with State funds
• CO Discussion
• Decide on budget source
• Coordinate with Const. Admin. Services
• Process CO
• Coordinate with Estimate Section
• Create new split on estimate system
• Code items to only State Funds

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Project Management

• Project Delivery
• Environmental Documents
• Timelines
• Value Analysis
• Proprietary Items
• Public Interest Findings
• Design Exceptions
• Contract Administration

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Environmental Documents

• CE, EA, EIS
• Significant Impacts
• FHWA approves all NEPA actions
• NEPA commitment carried throughout duration of
  project
• 23 CFR 771

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Timelines

• 10 year max from PE authorization to R/W or
  Construction
• 20 year max from R/W authorization to
  Construction
• Otherwise state repays all FHWA costs
• MDT may request time extensions from FHWA
• 23 CFR 630.112

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Value Analysis (VA)

• Adding value while minimizing project costs
• FHWA considers
• NHS projects gt 25 million
• Bridge gt 20 million
• MDT considers
• Projects gt 8 million
• Project cost includes Environmental, PE, ROW,
  Construction

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VA Savings at MDT

• As of January 26, 2007
• 17 studies
• Total cost of projects 330 million
• 73 recommendations
• Total project savings 45 million
• Approved recommendations 7 million in savings
  and added value

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Proprietary Items

• Generic specs are preferred for competition
• What is it? How many alts to list?
• Must be approved in writing prior to contract
  award with public interest finding (PIF)
• MDT Engineer approval for full oversight and
  non-oversight projects
• FHWA approval for full oversight projects and
  statewide exceptions

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Public Interest Findings

• Proprietary Items
• State owned/furnished materials
• Mandatory sources
• State preference vs out-of-state
• What is the process?
• Cost/benefit analysis
• Discussion of product compatibility/synchronizatio
  n
• Logistical concerns (no equally suitable
  alternate)

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NHS Full Oversight Project Design Exceptions

• Best if discussed prior to submittal with FHWA if
  complicated
• Submitted by Paul Ferry, Kent Barnes, or Tom
  Martin to FHWA.
• Signed by FHWA Operations Eng
• Ops Eng may consult with Lloyd Rue Safety/Design
  Eng
• FHWA responds in writing.

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Project Management

• Project Delivery
• Contract Administration
• Buy America
• Change Orders
• Legal Fees / Claims
• Design Errors

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Buy America

• All manufacturing must be done in USA
• Applies to all permanent steel iron
• lt 2,500 or lt 0.1
• Waivers do in design not construction
• Foreign steel/iron cannot be donated
• 23 CFR 635.410
• Different from Buy American

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Change Orders

• Contract changes
• Alter termini
• Alter character
• Alter scope of work
• All COs must be formally agreed to in advance by
  FHWA for full oversight projects.
• FHWA office policy is to agree in writing/email

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Legal Fees/Claims

• FHWA funds will participate to the extent that
  the claim can be supported by the facts and has a
  basis in the contract on a case-by-case basis
• MDTs legal defense costs are eligible
• Contractor legal costs not eligible
• Contractor anticipated profit not eligible

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Design Errors

• Consultant Errors covered by E O Insurance
• Examples
• Gross Negligence in design
• MDT reimbursed under EO insurance

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Final Thoughts

• Protect integrity of the bidding process
• Did all bidders have a level playing field?
• If the contractor awarded the job is given
  special treatment, why wasnt that stated in the
  special provisions?
• FHWA decisions are independent from MDTs
  Montana Transportation Commission
• MDT and FHWA have the same goal improving
  transportation

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Whos Responsible?

• District Personnel
• MDT Headquarters Personnel
• Internal Audit
• FHWA
• IN OTHER WORDS EVERYONE!

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DISCUSSION QUESTIONS
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Other Resources

• Contract Administration Core Curriculum Manual
  (Being offered in MT end of April in Helena)
• http//www.fhwa.dot.gov/programadmin/contracts/cor
  etoc.htm
• 23 Code of Federal Regulations http//www.fhwa.dot
  .gov/legsregs/directives/cfr23toc.htm

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Project Agreements

• Tribal
• Local government
• Construction engineering consultants
• MDT still ultimately responsible for
• Unless money transferred to another Fed Agency
  such as BIA

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MDT/FHWA pavement projects Example - Guardrail

• Guideline involves FHWA only on NHS routes,
  should document reasons why not followed for any
  road
• Pavement preservation - Deficiencies requiring
  upgrading
• Blunt ends
• 12 post spacing
• Unconnected or no bridge approach rail
• Other deficiencies not mandatory to fix

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MDT/FHWA Pavement Projects Guardrail

• Minor rehab milling is lt60mm, no new ROW, 10
  year design life
• Consider upgrading bridge approach sections,
  bridge rail, post spacing, rail height, and
  optional terminal end sections to current
  standards.
• (I would interpret this as documenting your
  reasons why you do or dont upgrade)

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MDT/FHWA Pavement Projects Guardrail

• Major rehab milling gt60mm, 20 year design life
• Must meet width standard
• Upgrade all guardrail to MDT current standards.

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4f

• may not approve the use of land from a
  significant publicly owned public park,
  recreation area, or wildlife and waterfowl
  refuge, or any significant historic site unless
• There is no feasible and prudent alternative to
  the use of land from the property, includes all
  possible planning to minimize harm
• De Minimus criteria gives new flexibility
• FHWA decides, 23 CFR 771.135

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6f

• Land Water Conservation Funds used to buy
  public recreation land
• Requires US Secretary of Interior to approve a
  change of land use

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Metric

• SI units optional in all documents prepared by
  states
• Metric states as of 2005 New York, New Hampshire
• Dual New Jersey, Vermont
• Most Federal agencies (including FHWA) still must
  use metric.

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Congestion Reduction A FHWA Priority
Future Highway Funding (2009) Not How to Fund
but What to Fund

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Feedback

• Are you getting enough satisfaction from FHWA?
• What do you need from us?

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Design Standards

• NHS FHWA involved
• Non-NHS are a state issue (laws, standards, etc)
• 2000 MDT/FHWA Guideline for nomination
  development of pavement projects
• 23 CFR 625

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Planning

• Goals and priorities established
• Projects nominated by state metropolitan
  planning organizations
• Balanced state transportation improvement program
  developed (STIP)
• Result Restraint needed, not enough money to
  fix everything

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Risk Assessments

• Program Level Assessments
• All Program Areas
• Done Jointly with MDT
• Process Improvement Reviews
• Top 10 list created

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Federal-Aid Program

• Purpose
• Provide aid to the states
• Pay as you go concept
• Gas tax collections deposited in highway trust
  fund
• No money upfront - reimbursed
• Legislation (highway reauthorization)
  establishes level of funding every 6 years

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Montana Funding Picture

• State gas tax 27/gallon
• Montana receives back more than 2.20 for every
  dollar of Federal fuel tax collected in the state

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Partnership the Federal-aid Highway Program

• Federal-State

Have a bias for yes -Mary Peters US DOT
Secretary
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Partnership
Federally Funded, State Administered

• Federal - Funding, Oversight, Guidance
  Technical Assistance
• State - Plan, Design, Construct, Operate
  Maintain

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Interstate Interchange Design

• 1998 FHWA policy
• Applies to both new and revised access
• AASHTO A Policy on Design Standards Interstate
  System January 2005
• Must address 8 FHWA requirements
• Examples
• Must not degrade safety or operations
• Compatible with local land use planning

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Contract Time Determination

• MDT policy Dec 2005
• MDT procedures requires a written determination
  on all projects
• Work with Construction EPMs
• 23 CFR 635.121

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NCHRP 350

• National Cooperative Highway Research Program
  Report 350
• Establishes the standard for crash testing sign
  supports and roadside hardware
• FHWA requires compliant (crash tested) products
  on NHS
• 3 loop vs 2 loop concrete barrier
• Crash worthiness of work zone traffic control
  devices