1. SCOH – Spring ‘07 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

2. SCOH – Spring ‘07 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

3. SCOH – Spring ‘07 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. SCOH – Spring ‘07 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.

5. SCOH – Spring ‘07 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.

6. SCOH – Spring ‘07 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 STA’s 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

7. SCOH – Spring ‘07 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

8. SCOH – Spring ‘07 Action Items  Assess STA’s 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 STA’s development and implementation of a comprehensive LPA project oversight program (10/07, 4/08, 10/08)

9. SCOH – Spring ‘07 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

10. SCOH – Spring ‘07 FHWA HQ Contact Information National Local Project Oversight Coordinator:  Bob Wright E-mail: robert.wright@dot.gov Phone: 202-366-5604  Vince Barone E-mail: vincent.barone@dot.gov Phone: 202-366-4652