Chapter 2: Pre-Award Activities
Section 1: FHWA Oversight Background
Section 1: FHWA Oversight Background
On May 21,2015, the U.S. Department of Transportation — Federal Highway Administration (FHWA) and the Texas Deparment of Transporation (TxDOT) signed the
on Project Assumption and Program Oversight (S&O Agreement). The intent and purpose of this agreement is to document the roles and responsibilities of the FHWA's Texas Division Office (FHWA or Division) and the Texas Department of Transportation (the Department) with respect to project approvals and related, responsibilities, and to document the methods of oversight that will be used to deliver the Federal-Aid Highway Program (FAPH) effeciently and effectively. The agreement includes program and project responsibilities, governing Code of Federal Regulations (CFR) and delegation and acceptance of oversight responsibilities that will meet or exceed Federal regulations on all Federal-Aid projects.
The Departments assume full responsibility for all
approval actions for project levels from design through construction on all federal-aid projects except as modified by FHWA's risk-based assessment for projects in any given FHWA fiscal year(FY). A fiscal year is defined as beginning in October of a current year through September of the subsequent fiscal year (October 1 to September 30). The State's compliance agreement is specified in detail in the Department's manuals. The applicable agreements, policies, manuals, and reports for each Program Area are listed in the S&O Agreement.
One of the main components of the Risk-Based Project Stewardship and Oversight are projects classified as Texas Division Involved Projects(TxDIP), formerly known as Projects of Division Interest (PoDI). In short, TxDIPs may have an elevated risk in one or more core functions (as defined in S&O Agreement), and FHWA has made a risk-based decision to
FHWA develops a TxDIP Plan for each project based on the perceived risks and conducts oversight activities. In addition to TxDIPs, FHWA also administers the Compliance Assessment Program (CAP) through reviews to evaluate joint risk assessments for various project functions. These are usually desk reviews wherein FHWA will request copies of various project record documents for compliance with regulations and policies and issue a report of findings. All federal-aid projects are subject to CAP reviews, including local government projects that have federal funding.
Major Project Requirements
Major Project Requirements
The district typically begins preparation of a Project Management Plan (PMP) and Initial Finance Plan (IFP) for projects that receive federal financial assistance and are designated as Federal Highway Administration (FHWA) "Major Projects" (=/> $500M total project cost). Other Federal-Aid projects between $100M to $500M total project cost require IFPs and corresponding annual updates, as well as Operationally Independent and Non-Concurrent construction projects. The Department's procurement team may also prepare the PMP and IFP if it has not been prepared by the district.
Once a PMP and IFP have been prepared and have received FHWA approval, comply with PMP and IFP guidelines. Review and perform Financial Plan Annual Updates (FPAUs) and update the PMP as needed.
Coordinate with Transportation Planning and Design (TP&D) to submit FPAU per Design's Major Project Procedures found on the
website. An updated PMP is required for any significant change in the project. FPAU deadline to DES is October 15th.