FTA Oversight Procedures - Federal Transit Administration - U.S. ...

d) Review the Grantee’s project design documents for clarity, accuracy, and level of detail for a
project at the current phase of project development. Review findings of value engineering and
risk assessments if any have been performed.
2) Evaluate the reliability of the project cost estimate.
a) Review the estimate in its original format and in Standard Cost Category format (SCC)
b) Evaluate the Grantee’s estimating methodology.
c) Verify the “base year” of the estimate.
d) Discuss with Grantee its assumptions regarding escalation of materials and labor.
e) Discuss with Grantee its assumptions regarding inflation over the project life and the level of
associated uncertainty.
f) Evaluate the capital cost estimate in relationship to the scope. Make recommendations where
additional detail or other information is needed.
i) Check the estimate’s internal consistency (does it add up?).
ii) Spot check estimated quantities and unit costs.
iii) Evaluate the reasonableness of escalation for commodities and labor.
iv) Identify sources of uncertainty and related potential for cost increases.
v) Check the adequacy of the allocated contingency for specific line items.
vi) Check the adequacy of the unallocated contingency.
g) Verify the match between the YOE costs and the project schedule.
i) Evaluate the reasonableness of inflation rates used over the project life.
3) Evaluate the completeness, level of detail, and reasonableness of the project schedule.
a) Address the number of activities, logic and logic ties, the critical path, general internal
consistency of the schedule, and the scheduling assumptions adopted by the Grantee.
b) Address durations for each phase of work in relation to the completion of similar work by other
agencies, if known, and the Grantee’s track record for implementing similar projects.
c) Evaluate sources of uncertainly and their likely effects on the schedule should be described.
4) Describe and evaluate the Grantee’s technical capacity and capability to undertake and successfully
complete the project, including its management structure, staff and consultant organization and
experience, professional skills and project experience.
i) Evaluate the Grantee’s project management plan (PMP) for compliance with FTA
requirements and best management practices. This includes the adequacy of the Grantee’s
strategy to deliver the project within budget and on schedule and with project controls
adequate to design, construct, test and start up a quality system that assures the safety and
security of the riding public.
5) Specifically, at approval to enter into a PCGA, verify that the Grantee has:
a) Updated the PMP through construction and start-up and incorporated risk management.
b) Completed drawings, specifications, and bid documents as required by the project design and
method of procurement.
c) Resolved and received FTA’s agreement to right-of-way acquisition and relocation agreements,
and other agreements with third parties such as freight railroads, Amtrak, utility companies, and
other governmental agencies.
OP 45 Small Starts Review
Revision 0, June 2008
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