Administration of

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• 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

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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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National Program Review

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

4
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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Applicable 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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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 STAs 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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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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Action Items

• Assess STAs 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 STAs development and
  implementation of a comprehensive LPA project
  oversight program (10/07, 4/08, 10/08)

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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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FHWA HQ Contact Information

• National Local Project Oversight Coordinator
• Bob Wright
• E-mail robert.wright_at_dot.gov
• Phone [phone]
• Vince Barone
• E-mail vincent.barone_at_dot.gov
• Phone [phone]