Administration of Federal-aid Projects by Local Public Agencies AASHTO Spring Meeting Phoenix, AZ

1. Administration of Federal-aid Projects by Local Public Agencies AASHTO Spring Meeting Phoenix, AZ May 4, 20007 King W. Gee Associate Administrator for Infrastructure Federal Highway Administration

2. 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 Why Local Project Administration?

3. 7 states, 39 projects, 37 LPAs Program Management Project Development Environment, Right-of-Way, Design Contract Award Construction Administration Billing system National Program Review

4. 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. National Review Findings and Recommendations

5. 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. Applicable Federal Requirements

6. 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 Components of the Local Project Oversight Program

7. 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 Framework for Review of Existing LPA Programs

8. 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) Action Items

9. Stewardship and Oversight Agreement for locally administered projects. Dedicated Staffing Oversight and Monitoring Program Qualification Program for Local Agencies Local Agency Guidance Manual Components of the Web Site Information

10. 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 FHWA HQ Contact Information