04 Is there a timeframe within which projects must complete the steps in the process for a construction grant agreement?
There is not a set timeframe within which projects must complete the process leading up to a construction grant agreement. Some projects naturally take longer than others to develop because of project complexity, size, number of project partners involved, and/or amount of non-CIG capital funding needed for the project.
There are some timeframes that project sponsors should keep in mind:
New Starts and Core Capacity projects are required by law to complete the Project Development phase within two years of entering that phase. While the law provides for an extension to the two year timeframe, this is expected to be the rare exception rather than the rule. Thus, FTA advises project sponsors to do “up front” work in advance of seeking entry into Project Development to ensure they can complete the Project Development activities within two years.
Within three years of granting New Starts or Core Capacity projects approval to enter the Engineering phase, or within three years of Small Starts projects entering the Project Development phase, FTA expects project sponsors to make sufficient progress on their projects. This includes obtaining funding commitments for at least half of the non-CIG capital funding needed for the project, and advancing the level of project design.
05 What should I submit to FTA if I wish to apply for entry into the Project Development phase of the Capital Investment Grant program?
07 What types of reviews will FTA undertake to approve entry into Engineering?
By law, FTA evaluates and rates Capital Investment Grants Program New Starts or Core Capacity projects prior to allowing them into the Engineering phase. FTA evaluates and develops ratings for the project justification and local financial commitment criteria.
FTA also reviews the project sponsor’s Project Management Plan and subplans to ensure that the sponsor has the technical capacity and capability to deliverthe project. Lastly, FTA reviews the project definition, scope, cost and schedule for reasonableness, undertakes and completes a risk assessment. These reviews may be expedited based on factors including the complexity of the project and the project sponsor’s management capacity and capability.
08 When will FTA conduct a risk assessment for my project?
FTA plans to conduct a risk assessment of New Starts and Core Capacity projects prior to entry into the Engineeringphase of its Capital Investment Grants program. FTA may perform updates to the risk assessment and scope, cost, and schedule reviews prior to awarding a construction grant agreement.
For Small Start projects, scope, cost and schedule reviews and a risk assessment may be conducted during the Project Development phase.
09 When FTA undertakes a risk assessment, how does it determine whether the sponsor’s budget and schedule are reasonable?
FTA has continued to refine the technical methods and adjust the probability thresholds it uses to undertake the risk assessment based on historic data from previous projects. When determining the reasonableness of a project sponsor’s cost and schedule, FTA reviews the estimates to determine whether they include reasonable assumptions or whether adjustments need to be made. FTA then examines risks related to the project to determine the appropriate level of contingency needed. FTA will use a 65% probability threshold to determine reasonableness of the cost and schedule estimates.
10 When can my project receive a construction grant agreement?
Even if funds have been appropriated or allocated to a New Starts, Small Starts, or Core Capacity project, FTA will not award a construction grant until the following conditions are met and FTA is assured the project is ready:
The project’s development and design have progressed to the point where its scope, cost, schedule, benefits, and impacts are considered firm and final;
All non-CIG capital funding for the project is committed;
All significant third party agreements are completed;
The project continues to obtain at least a Medium overall rating under the statutory evaluation criteria; and
The Project Management Plan and subplans have been updated to include a management approach at a sufficient level of development to construct and implement the project.