Grant Funding Agreement

PREPARATION OF A COMPLETE GRANT AGREEMENT. Once an applicant has submitted a satisfactory application for a Full Funding Grant Agreement (FGP) and the FTA agrees with all the evidence summarized in the previous chapter, the FTA will ask the applicant to prepare the following points that will become „annexes“ to an FFGA: the scope of the project, a colored map of the project, a description of the project, an estimate of the baseline costs, a budget, a baseline schedule and measures to mitigate environmental impacts. At the same time, the FTA will draft the text of an FFGA and the following three additional points that will be annexed: a summary of previous grants and related documents, a timetable for federal funding of the project, and a description of the requirement to conduct a „new start before and after“ study. The FTA then brings together the applicant`s and the FTA`s draft documents into a work project of an FFGA. Once a project has been referred to USDOL for certification of the entire project, the budget information contained in the e-grant application should be revised to reflect the fact that when the FFGA is executed, only a portion of the total federal funding for the project is provided, not the total amount of the actual federal contribution to the project. In some cases, no FTA funds are required when the FFGA is awarded; On the contrary, the FFGA is a „zero dollar change“. Therefore, the Fellow should revise the electronic budget as well as the „checksums“ under „Project Information“ to reflect only the federal funds that have been granted. (10) Section 10: The dollar figure in paragraph 10(d) indicates the recipient`s financial commitment to the estimated net cost of the project. This is the estimated total local share and the amount required to achieve the maximum federal financial contribution for new start-ups and estimated contributions from other federal sources to the funding ratios set out in the grant agreement.

On December 7, 2000, the FTA issued final regulations for large-scale (new entrants) investment projects under Part 611 of the 49 C.F.R. (65 Fed. Reg. 76864-84). As required by tea-21, the rule sets out the criteria by which the FTA evaluates a project on its merits and local financial commitment. In addition, the rule specifies the procedure by which the FTA assigns a rating of „highly recommended“, „recommended“ or „not recommended“ to each new start-up project at least once a year. These assessments indicate the total value of the project; In this way, they allow the FTA and Congress to identify start-up projects that warrant partial funding from the federal government. The new entry rule includes an annex that provides a detailed and narrative explanation of the various measures used by the FTA to assess both the project rationale and the local financial commitment. The FTA also publishes technical guidelines from time to time regarding the various criteria for project justification and local financial commitment. In July 2001, the FTA issued the most recent such directive, „Technical Guidance on Article 5309 New Starts Criteria“.

The FFGA is a unique contractual commitment that FTA applies when it invests a significant amount of New Starts funds in a locally developed slab transit project. In exchange for the FTA`s commitment to provide multi-year federal funding under the 49 USC 5309 New Starts program, the project proponent agrees to complete the project on time, within budget, and in accordance with all applicable federal requirements. In addition, the FFGA „blocks“ the maximum federal participation in the project, which means that any cost increase that may occur after the agreement is awarded must be borne by the project proponent. Of course, the annual disbursement of funds determined by the terms of the ffga is subject to congressional funds. Nevertheless, congress understands well the purpose and value of the FFGA, and history shows its strong financial support for projects under these agreements. The grants community is diverse, as is the terminology we use to talk about roles and aspects of the grant lifecycle. Here is a glossary of grant terms based on the grant guidelines and functionality. REQUESTS TO AMEND GRANT AGREEMENTS ON FULL FUNDING. Procedures for requesting amendments and other types of grant amendments are set out in the FTA`s Grant Management Guidelines, Circular 5010.1C.

However, FFGAs are unique in that certain types of changes – especially changes in the scope of a project and significant budget revisions – must be reported to Congress. In addition, failure to meet a tax operating date is a violation of an essential provision of an FFGA that is subject to rigorous review and can only be waived by the federal transit administrator or his or her agent. This chapter summarises how the general FTA procedures for grant amendments and amendments are applied to FFGAs and introduces some specific procedures that apply only to FFGAs. APPENDIX 3A: PROJECT BUDGET. In Appendix 3, „Baseline Cost Estimate,“ the recipient creates a Schedule 3A, „Project Budget.“ A project budget is a budget for the entire project that lists the sources of funding and associated elements of activity, and may include funding for other grants that make up the total amount of FTA funding for the FFGA. The project budget is a set of costs sorted by FTA scope and activity element code, as opposed to the base cost estimate, which identifies contract units. Like the estimated expected costs, the project budget is generally not changed or modified over the course of the project. (b) In accordance with the provisions of Article 15 of this Agreement, „Project Management Oversight“, and in accordance with the terms of the Framework Agreement, the Government shall review the recipient`s performance to determine whether satisfactory progress is being made towards the completion of the Project.

In the event that the Government determines that the Recipient is in breach of this Agreement, it may refuse its approvals for additional funding and suspend the use of the funds under the provisions of Article 11 of the Framework Agreement on the Federal Government`s Right of Termination until the Government has taken the necessary corrective measures. is complete. Any breach of this Agreement that is not corrected within a reasonable period of time constitutes a breach of this Agreement. The Government may, in its sole discretion, allow the costs of such corrective actions to be considered project costs, provided that such costs are recoverable costs in accordance with the requirements of Article 9.c of the „Costs Reimbursed“ Framework Agreement and as long as they remain within the maximum federal financial contribution for newcomers set out in Article 8 of this Agreement. „Restrictions on federal funding commitment.“ The FTA conducts a financial performance assessment before signing an FFGA. The Financial Capability Assessment is usually the final and most detailed review of an applicant`s financial plan prior to the conclusion of an FFGA. It will be carried out to determine whether all aspects of the project are clearly defined, including detailed cost estimates and funding plans, and whether all funding commitments exist. This review focuses on two different issues: the financial plan of the proposed project for seed funding and the applicant`s overall financial situation. As part of this review, the FTA will assess the applicant`s ability to construct and operate the new construction project and to fund the operation and maintenance of the existing system, as well as other improvements to the applicant`s capital plan. The assessment of financial performance results in a published baseline report that is forwarded to Congress, which uses and empowers committees for their 60-day review of the proposed FFGA. Following the assignment of an FFGA, the FTA prepares periodic ad hoc reports as required to update the core financial performance report.

These updates reassess the applicant`s financial situation if there are significant changes related to the restart project or if external factors affect the applicant`s overall financial outlook. Integrate constraints and conditions into design specifications. Conduct field surveillance in accordance with the terms of the contract. As long as there are no significant changes, the document may include: (1) the first two pages of the full funding agreement, which has been amended to reflect the revised amounts, and (2) whether the FTA has revised the framework agreement since the last allocation of funds under the FFGA, the date and agreement number of the new framework agreement integrated into the FFGA. In addition, the approved project budget needs to be changed. .