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

performance of various aspects of the project, including user benefits as opposed to capital and
operating costs, local financial commitment, land use and economic development effects, and other
factors. Section 5309(d)(1)(B)(ii) directs FTA to consider proposed New Starts projects for Full
Funding Grant Agreements (FFGA) and proposed Small Starts for Project Construction Grant
Agreements (PCGA) only if they receive a Medium, Medium-High, or High overall project rating
(See:http://www.fta.dot.gov/planning/newstarts/planning_environment_2620.html).
2.2 Preliminary Engineering Design Requirements
Progress towards completing the project design and the corresponding cost estimate and schedule to
build the project must be satisfactory. As noted, PE generally requires design detail to 30 percent and
capital cost estimate detail based upon (a) quantities of work established in the plans and (b) for all
other costs (vehicles, equipment, land/right-of-way, administrative costs, consultant and other support,
finance costs, etc.) a reasonable level of line item detail. The master schedule should include sufficient
detail to identify all significant activities, their durations, and logical ties to other activities. Section 6.0
Scope of Work provides direction for determining whether the level of detail in the PE plans, cost
estimate and schedule is sufficient as well as what other information is required to demonstrate
technical readiness to enter final design.
2.3 Grantee Readiness: Technical Capacity and Capability
Whether the Grantee has the necessary management approach and organizational structure, internal
and external controls, and other resources available to administer a project—technical capacity and
capability—is another important aspect of readiness to enter final design. The procedures for making
these assessments are established in other guidance (see 4.0 References). The Grantee should
document its program for project management in a current Project Management Plan for at least the
design phase of project development (the PMP would incorporate provisions for construction as that
phase approaches).
At the conclusion of PE a project is likely to be subject to a formalized risk assessment that will
evaluate whether the grantee has incorporated risk-based methods into its approach to project
management. FTA guidelines also call for the Grantee to evaluate the project design through a formal,
independent value engineering process during or at the close of PE. Both the risk assessment and value
engineering processes are to be incorporated in the PMP, which describes their purpose and objectives,
summarizes findings, and presents the action plan resulting from each process (e.g., Project Risk
Management Plan for a risk assessment). The assessment of readiness to enter final design conducted
under OP 46.2 incorporates findings of the risk assessment and value engineering programs.
3.0 OBJECTIVES
FTA desires the PMOC’s professional and well reasoned findings and recommendations regarding the
readiness of the Grantee to enter and complete the final design phase. Findings and recommendations
shall pertain to:
1) The completeness, quality, and accuracy of engineering design, the project schedule, and the
project capital cost estimate at the conclusion of PE.
OP 46.2 Readiness to Enter Final Design
Revision 0, June 2008
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