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7

Administration of

Federal-aid Projects by Local Public Agencies

AASHTO Spring MeetingPhoenix, AZ

May 4, 20007

King W. GeeAssociate Administrator for Infrastructure

Federal Highway Administration

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7 Why Local Project Administration?

Number 1 priority area for national review by FHWA field and program offices

$6 - $8 Billion per year (approx. 20% of Federal-aid program)

38,000 Local Governments Identified High Risk Area Proliferation of Earmarks

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7National Program Review

7 states, 39 projects, 37 LPAs Program Management Project Development

Environment, Right-of-Way, Design Contract Award Construction Administration Billing system

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7 National Review Findings and Recommendations

The administration of Federal-aid projects by LPAs may lack a systematic or comprehensive oversight approach.

Ineffective for ensuring that Federal-aid requirements are met on LPA-administered projects.

FHWA should take steps to ensure that Federal requirements are met on LPA- administered projects.

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7Applicable Federal Requirements

23 U.S.C.106(g)(4) [as amended by SAFETEA-LU]

(g) OVERSIGHT PROGRAM.-(4) RESPONSIBILITY OF THE STATES.-

(A) IN GENERAL.-The States shall be responsible for determining that subrecipients of Federal funds under this title have-

(i) adequate project delivery systems for projects approved under this section; and

(ii) sufficient accounting controls to properly manage such Federal funds.

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7 Components of the Local Project Oversight Program

Establishment of a Headquarters level Local Project Oversight Coordinator

“Good Practices” Web site

Local project oversight program information

Action by Divisions to assess STA’s existing processes and procedures

Action by Divisions to assist STAs to develop/enhance comprehensive LPA programs.

Action by HQ to analyze need for additional regulations

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7 Framework for Review of Existing LPA Programs

Determine the existence, accuracy and effectiveness of STA procedures and other controls over the LPA program.

Include sample LPA projects for compliance with Federal requirements and STA procedures

Consider an integrated approach, involving multi-functional, State/FHWA team members

Where deficiencies are found, STA must develop corrective action plans – immediate mitigation and long-term resolution

Where significant weaknesses are not adequately and timely addressed, the division should consider further action

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7Action Items

Assess STA’s existing LPA procedures and controls – (to be completed by 10/1/07)

If assessment warrants, plan and conduct process reviews – (completed by 10/1/08)

Assist STA in the development or enhancement of LPA project oversight program as necessary

Periodically report on STA’s development and implementation of a comprehensive LPA project oversight program (10/07, 4/08, 10/08)

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7 Components of the Web Site Information

Stewardship and Oversight Agreement for locally administered projects.

Dedicated Staffing

Oversight and Monitoring Program

Qualification Program for Local Agencies

Local Agency Guidance Manual

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7FHWA HQ Contact Information

National Local Project Oversight Coordinator:

Bob Wright

• E-mail: robert.wright@dot.gov

• Phone: 202-366-5604

Vince Barone

• E-mail: vincent.barone@dot.gov

• Phone: 202-366-4652