Changes in Reimbursable Agreements

1. Changes in Reimbursable Agreements 31st Annual Airports Conference V Thompson & R Farrell, Lead Planners March 18, 2008

2. Planning & Requirements Business Services Safety Assurance Administrative Services System Support PROGRAM IMPLEMENTATION MANAGEMENT REQUIREMENTS RESOURCE PLANNING NAS PLANNING & INTEGRATION Eastern Service Center

3. Lead Planner Boundaries

4. NAS Planning and Integration – Lead Planners • Liaison for the Eastern Service Center to Airports Division, Airport Sponsors, and State Aviation Departments. • Responsible for integration of Sponsors’ current and future development plans with FAA plans for airspace and NAS Facilities and Equipment projects. • Coordinate and negotiate Reimbursable Agreements. • Point of contact for the Reimbursable Agreement for the life of the Agreement.

5. Why FAA Must Enter Into Reimbursable Agreements • FAA and sponsor activities are clearly defined. • Work on NAS facilities is performed in accordance with regulatory requirements. • The safety and efficiency of the NAS is maintained. • The impact to facility life cycle costs (long term) is minimized. • The highest level of FAA expertise and experience is available to help solve project problems and challenges.

6. Reimbursable Agreements • Notify NPI at least 4 months prior to expected Engineering Services organization involvement. • Engineering Services cannot incur any obligations (labor and non-labor) prior to receipt of Project Authorization from FAA Budget Office. • If sponsor’s proposal includes non-Federal facilities, sponsor will be advised to contact the ATO Non-Fed Coordinator. • Master agreements will no longer be processed.

7. Reimbursable Agreements Relocation, modification, or replacement of existing FAA facilities • Need is initiated by non-federal entity (private entities, state/local governments, airport owners, etc.) or other federal agency. • Scope of work is defined by ATO. • All FAA costs to be reimbursed by Project Sponsor.

8. Reimbursable Agreements Establishment of non-Federal Facility for FAA Takeover • Requires Project Sponsor to formally request FAA takeover. Request should be made in advance of project execution to ensure FAA requirements are addressed as part of project implementation. • If takeover is approved, ATO requests a Quality Control role via a reimbursable agreement.

9. Reimbursable Agreements Establishment/Relocation of a non-Federal ATCT • Required to fund AFTIL siting, if federal funds are involved. • Required to fund relocation of FAA data processing equipment. • Required to fund establishing/relocating telecommunication interconnection with the FAA NAS. • Required to fund design review/approvals if federal contract controllers are used.

10. Changes in Reimbursable Agreement Policy • The Office of Management and Budget (OMB) requires agencies to collect an advance when they enter into a reimbursable agreement with non- Federal entities (Public). • OMB does not consider receivables from the Public as a budgetary resource until collected. • Collection of an advance is to remedy the resulting shortfall in the budgetary resource.

11. Changes in Reimbursable Agreement Policy • Now using a new National Reimbursable Agreement Tool • ATO Finance Policy requires advance payment in full prior to incurring any obligations. • Overhead rate of 26.5% to be included on all new and amended agreements. • Period of performance for each agreementcannot exceed 5 years. • Policy changes were effective October 31, 2006.

12. Reimbursable Agreement Process • Airport Owner should notify the ADO of their intentions to build or remove airport facilities during the conception and planning stage • For a detailed facility impact review, the proposal should be submitted thru the OE/NRA process • Airport Owner must decide how to proceed - relocate/modify the proposed airport construction project or relocate/modify the FAA facility • Agreement Types: • Preliminary Design Agreement • Full Scope Agreement New Runway Project

13. Reimbursable Agreement Process • Development of a full scope reimbursable agreement: • Define Scope of Work – 4 weeks • Define Responsibilities • Cost Estimates – 2 weeks • Coordinate Draft Agreement – 4 weeks • Sign Agreement – 4 to 8 weeks • Establish Project Authorization – 3 to 4 weeks

14. Typical Project Timeline to Establish a NAS Facility

15. Other Planning Considerations • All Projects involving Relocation, Modification and/or Replacement of FAA facilities must be sited and constructed using current FAA standards • All costs for establishing and maintaining non-Fed NDBs must be paid for by the Project Sponsor. • ILS burn-in is required before commissioning CAT II/III Procedures. • Flight Check is required for PAPIs on IFR runways or if circling is authorized.

16. Other Planning Considerations • ATO does not support relocation of FAA VASIs – ATO will decommission. • ATO will try to obtain PAPI equipment for installation via the F&E process. Project Sponsor will be responsible for cost of establishing the PAPI. FAA will maintain the facility at FAA cost. • Underground Cables • If airport development causes a need to establish or replace an existing cable link, fiber optics transmission system (FOTS) requirements must be considered as part of project scope.

17. NAVAIDS Discontinuance • FAA is working to identify decommissioned NAVAID facilities and relinquish costly leases. • Direction Finders (DF) - Performing site surveys to remove DF equipment. • VORTAC - By 2025 all remaining FAA VORs should be removed from service. • A VOR replacement program is under development to replace VORs that will remain in service until 2025.

18. New on the Horizon • Runway Status Lights (RWSL) • National Transportation Safety Board Most Wanted Transportation Safety Improvements (Aviation). • The RWSL system integrates airport lighting equipment with approach and surface surveillance systems to provide a visual signal to pilots and vehicle operators indicating that it is unsafe to enter/cross or begin takeoff on runway. • Implementation of RWSL requires the use of the Airport Authority’s lighting vault, fiber optic system, and requires installation of lights in designated runways/taxiways. • Initial Investment Decision made July 2007. In-Service Decision expected Summer 2008. Runway Entrance Lights (RELs) Takeoff Hold Lights (THLs)

19. New on the Horizon • Airport Strategic Profiles • Will allow a high level understanding of all activities impacting the NAS in the Service Area, both internally and externally to the ATO. • Ensure that all current and future activities initiated in the Service Area are aligned with the Agency’s Flight Plan, Strategic Management Plan, Business Plans and Operations Plans. • Ensure horizontal integration of all activities and schedules of programs and projects at individual and groups of facilities. • Matrixes with the other stakeholder teams to ensure horizontal integration.

20. We’re Here! • If you have questions about how to proceed with accomplishing projects at your airports, contact the NPI Lead Planner for information: Denise Knight, North Team Manager Richard Farrell (404) 305-7069 Freddie Chez (404) 305-7067 Guy Hall (404) 305-7075 Willie Weatherly (404) 305-7073 • Send Correspondence to: Federal Aviation Administration ATO/P&R/NAS Planning and Integration PO Box 20636 Atlanta, GA 30320