faa update airports program

Presented to:

By:

Date:

Federal AviationAdministrationFAA Update

Airports Program

Western-Pacific Region

Association of California Airports

Robin Hunt and Ruben Cabalbag

September 17, 2010

2Federal AviationAdministration

FAA Update

FAA Update• FY-10 Airport Improvement

Program (AIP)• Grant Performance Metrics • Improper Payments• FY 2011 Program


FAA Update

FY-10 AIP Grants Issued to Date(by State)

Arizona California Nevada Hawaii Pacific

Amount $75M $235M $46M $24M $76M

# of Grants 65 175 24 8 27


FAA Update

FY-10 AIP Projects Funded (For all States in Western-Pacific Region)

$0

$20

$40

$60

$80

$100

$120

$140

Land Acquisition$5M

Equipment $9M Planning $14M Other $32M Building/Terminal$32M

Noise $59M Apron $91M Taxiw ay $95M Runw ay $119M

Total: $456M (to Date)


FAA Update

AIP Performance Metrics• We are focused on fiscal accountability.

• Focused on timely conversion of Airport & Airway Trust Fund resources into airport improvements (safety, capacity and efficiency).

• Previously we relied solely on “output”-type metrics to evaluate AIP performance:

—Percentage of grants based on bids—Timely programming of grants—Grant closeout within four years of appropriation—Minimize inventory of open grants—Ensure no grant inactive for 18 months

• These are all important policies, and will continue to be in force. But…


FAA Update

AIP Performance Metrics

• We now have the ability to monitor rates of actual drawdown:

—By grant

—By sponsor

—By state

—By ADO

—By region

—Nationally

• Because drawdown rates should mirror project implementation, this metric provides a far more useful indicator of how swiftly the funds are being converted to useful infrastructure.


FAA Update

AIP Performance Metrics• The White House Office of Management and Budget (OMB)

established outlay rates or “liquidation goals” for Airport Improvement Program (AIP) funds:

—By end of year in which appropriated, disburse 18% of funds

—By end of 1st year after appropriation, disburse 60%

—By end of 2nd year after appropriation, disburse 81%

—By end of 3rd year after appropriation, disburse 91%

—By end of 4th year after appropriation, disburse 96%

• After the 4th year, all funds should be fully disbursed and the grants closed. (This is the source of the requirement that grants four years and older be closed.)

Note, we generally use “grant year” as a proxy for “appropriation year.” There are minor differentiations when we get into multi-year grants, amendments and recovered funds, but generally this holds true.


FAA Update

Grant Expenditure Targets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

To be expended 18% 60% 81% 91% 96%

Maximum to remain 82% 40% 19% 9% 4%

Year of Appropriation

1st Year after Appropriation

2nd Year after Appropriation

3rd Year after Appropriation

4th Year after Appropriation


FAA Update

Grant Performance Metrics (by State & Fiscal Year)

Note: Grant status is as of September 10, 2010.

OMB Target

FY09 FY08 FY07 FY06

40% 19% 9% 4%

Arizona

39% 19% 9% 1%

California

38% 19% 7% 1%

Nevada

38% 18% 5% 1%

Hawaii

50% 58% 9% 1%

Pacific Island

45% 16% 13% 1%


FAA Update

Benefits of the New Metric

• Significantly better indicator of actual conversion of Trust Fund resources into useful aviation infrastructure. Money assigned to a project but sitting in the Trust Fund isn’t helping the system.

• Helps articulate why the underlying policies are in place (e.g., why grants must be closed after four years).

• Allows us to ask the right questions (e.g., why isn’t a project being implemented as swiftly as expected?)

• Allows us to identify where resources are being used most effectively, and to make better decisions about where to focus future resources.

• Helps communicate AIP performance to decision-makers to improve program competitiveness during challenging budgeting periods.


FAA Update

Improper Payments• Improper payments are any payment that:

– Should not have been made; or

– Was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements.

• Improper payments Include any payment made to an ineligible recipient or for an ineligible service:

– Duplicate payments;

– Payments for services not received;

– Payments for an incorrect amount;

– Payments without sufficient documentation in sponsor files.


FAA Update

Improper Payments

• Sponsors must not draw down grant funding for the full value of a construction invoice unless the sponsor has already paid the contractor for the 10% retainage.

• Draw downs should only be for actual eligible expenditures.

• We also encourage those still requesting manual payments to switch to the electronic system.

• You get your payments much quicker with the electronic system.


FAA Update

Improper Payment AuditHeightened Office of Inspector General and Congressional

oversight in this area – everyone wants to ensure funds are only used for eligible expenses. OIG findings:

• Insufficient documentation

• Ineligible services

• Incorrect Amount

• Duplicate Payments• Noncompliance with Title 49, Part 18 –Grant

Procurement Regulations


FAA Update

OIG Recommendations

Draft Report has 7 recommendations including:

a. Re-enforce FAA guidance for payment requests including supporting documentation required.

b. Improve risk assessment model.

c. More testing of invoices and FAA oversight.

d. Ensure contract cost and price are reasonable.

e. Better record keeping by sponsors.


FAA Update

Planning for FY 2011

• Timing of Reauthorization and 2011 Appropriation are unclear.

• Start Preparing Now!

• Be Ready to take your grant as soon as funds are available—don’t wait until the end of the year.


FAA Update

Planning for FY 2011

Ensuring that ACIP Projects, to which AIP funds are to be assigned, are ready to go early (September of previous year-2010). Ready to go means:

• Planning is complete• Project is on an approved ALP• FAA Environmental approval is complete or

imminent [CATEX submitted]• Airspace review and Approval is complete• Design is complete and project is ready to go out

for bid


FAA Update

Fiscal Year 2011 Program

Currently very few 2011 projects have the required NEPA approval.

SFO ADO has not received CatX documentation for nearly 200 projects in the 2011 ACIP.

Deadline will be December 2010.


FAA Update

Fiscal Year 2011 Program

• Submit your environmental documentation and grant application early and get started on your airport improvements.

– Takes approximately 45 days from the time we get the application until the time we mail out the grant offer.

– Closer you are to the end of the program the more likely your project will be pushed to the following year.

• The sooner we get grants programmed the more likely we are to get additional funds.


FAA Update

Contact Information

Robin Hunt, Manager San Francisco Airports District Office

(650) 867-2778 x600

Ruben Cabalbag, Acting Manager Los Angeles Airports District Office

(310) 725-3608

Mia RatcliffActing Manager, Safety and Standards

(310) 725-3620

Brian ArmstrongActing Manager, Planning and Programming

(310) 725-3610


FAA Update

Questions?

faa update airports program

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