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CITY COUNCIL STAFF REPORT
DATE: JUNE 5, 2023 CONSENT CALENDAR
SUBJECT: ACCEPTANCE OF THREE FEDERALLY FUNDED GRANTS FOR THE
AIRPORT MASTER PLAN/GIS STUDY, THE INBOUND BAGGAGE
CLAIM SYSTEM AND THE OUTBOUND BAGGAGE HANDLING
SYSTEM EXPANSION-DESIGN, FOR FUNDING OF THE PALM
SPRINGS INTERNATIONAL AIRPORT PROJECTS
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action will authorize the acceptance of one Federal Aviation Administration (FAA)
Airport Improvement Program (AIP) grant, one FAA Bipartisan Infrastructure Law (BIL)
Airport Terminal Program (ATP) grant, and one Transportation Security Administration
(TSA) Other Transaction Agreement (OTA) grant to provide funding for upcoming Airport
projects.
RECOMMENDATION:
1. Approve acceptance of Federal Aviation Administration AIP Grant No. 3-06-0181-
067-2023 for Airport Master Plan/GIS Study in the amount of $2,108,584.
2. Approve acceptance of Federal Aviation Administration BIL-ATP Grant for Inbound
Baggage Claim System in the amount of $5,700,000.
3. Approve acceptance of Transportation Security Administration OTA Grant for
Outbound Baggage Handling System Expansion-Design in the amount of
$1,388,995.
4. Authorize the City Manager or designee to execute all necessary grant documents.
BACKGROUND:
Palm Springs International Airport (Airport) relies on the Federal Aviation Administration’s
Airport Improvement Program funding for aviation-specific qualifying capital improvement
projects. In order to qualify for utilization of the Federal Aviation Administration
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City Council Staff Report
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Acceptance of Federally Funded Grants for Airport
grant funds, the Airport has to demonstrate projects that have justifiable aviation needs
and align with FAA project funding criteria for safety and/or capacity.
In addition to the AIP funding, the Airport has secured funding from the FAA’s competitive
discretionary funding through the Bipartisan Infrastructure Law (BIL) Airport Terminal
Program (ATP) for the Inbound Baggage Claim Airport terminal project. The competitive
discretionary funding program administered by the FAA aims to provide financial
assistance to airports for various infrastructure development projects, including the
construction or renovation of airport terminals.
The TSA, an agency of the U.S. Department of Homeland Security, is responsible for
ensuring the safety of the traveling public and transportation systems across the nation.
As part of its mandate, the TSA offers Other Transaction Agreements (OTAs) to eligible
entities, such as airports, to foster collaboration and innovation in addressing evolving
security challenges. The TSA OTA offers the Airport access to federal funding and
resources that can significantly offset the costs associated with implementing advanced
security measures, such as the design of the Outbound Baggage Handling System.
STAFF ANALYSIS:
The Airport is requesting City Council’s authorization to accept the three federally funded
grants for the following three projects:
Airport Master Plan / GIS Study Project – Phase 1, Design - AIP Grant No. 3-06-0181-
067-2023
The Airport Master Plan is a comprehensive study that outlines the long-term
development and improvement strategies for an airport. The Airport Master Plan is
intended to guide the Airport's development in a strategic and sustainable manner. A GIS
(Geographic Information System) study is a component of the Airport Master Plan that
utilizes spatial data to analyze and map the Airport's infrastructure and surrounding areas.
The study can be used to evaluate land use patterns, assess environmental impacts, and
plan for future development.
Mead & Hunt has been selected as a consultant to complete the Airport Master Plan,
including the GIS study. The process is expected to take 30 months to complete, during
which time Mead & Hunt will work closely with the Airport management team, City, and
the community to gather data, analyze trends, and develop strategies for future
development. The resulting Airport Master Plan will provide a roadmap for the Airport's
growth and development over the coming years.
The total cost of the master plan package amounts to $2,335,018. The FAA contribution
under the AIP grant will be funded at 90.66% totaling $2,108,584, and the Airport will be
responsible for the remaining amount of $226,434. The City received the grant agreement
from the FAA to execute for $2,108,584; included as Attachment A.
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Acceptance of Federally Funded Grants for Airport
Inbound Baggage Claim System – BIL-ATP
On November 15, 2021, the federal Bipartisan Infrastructure Law (BIL) was passed which
provides potential funding for new investments towards infrastructure including airports.
The BIL provided $25 billion to be awarded to eligible U.S. airports for airport
infrastructure and terminal development. The BIL funds were split into two funding
categories: 1) Airport Infrastructure Grants (AIG), allocated and competitive, and 2)
Airport Terminal Program (ATP), competitive.
The Airport recognized the importance of upgrading its infrastructure to meet the
increasing demand and expectations of passengers and airlines, and Airport staff
identified the requirement for an improved inbound baggage claim system within the
terminal. The existing system faced capacity limitations, causing delays and
inconveniences for travelers.
Under the BIL-AIG funding, the FAA allocated approximately $5.1 million to the Airport in
Fiscal Year 2022 and for the next 4 years the Airport will receive $5.1 million of BIL-AIG
allocated funds totaling approximately $25.5 million through Fiscal Year 2026. To secure
the necessary additional funding for this crucial project, the Airport diligently prepared a
comprehensive proposal that showcased the need for the inbound baggage claim system
and its alignment with the FAA's goals. The proposal included concept designs, and cost
estimates, demonstrating the project's feasibility and anticipated benefits. Through a
rigorous application process, the Airport successfully obtained a competitive BIL-ATP
grant from the FAA. This grant provides the necessary financial resources to design and
construct the inbound baggage claim system, ultimately improving the efficiency,
passenger flow, and overall customer satisfaction at the Airport, and the Airport intends
to apply for additional ATP grants in subsequent years. In the meantime, the Airport
proposes to fund the remaining $21.6 million with BIL-AIG funding and Passenger Facility
Charge (PFCs) funds. The FAA issued Frequently Asked Questions (FAQ) regarding the
BIL Grant guidelines which provide guidance on the use of these grant funds is included
as Attachment B.
The preliminary cost analysis rough order of magnitude total for the Inbound Baggage
Claim System project amounts to $27,348,000. The FAA contribution under the BIL-ATP
grant will be funded at 95% for a portion totaling $5,700,000 and the Airport will be
responsible for the grantee’s share in the amount of $300,000.
Outbound Baggage Handling System Expansion-Design – TSA-OTA
In August 2021, the Airport completed a renovation of its ticketing lobby and installed an
outbound baggage handling system (BHS). However, due to the increase in demand from
new airlines entering the market and new addition of routes, the BHS is incapable of
accommodating the demand on baggage.
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City Council Staff Report
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Acceptance of Federally Funded Grants for Airport
An independent third-party consultant (V-1 Solutions) was procured to assess the BHS
and provide recommendations for short-, medium-, and long-term solutions to address
the capacity issues. The consultant recommended the Airport either heavily modify
or completely replace the current BHS based on the rate of growth the Airport is
experiencing. The Transportation Security Administration invited the Airport to apply for
a grant to design and replace the current BHS system.
AECOM Technical Services, Inc. has been selected as a consultant to design a fully inline
outbound BHS, which may require terminal building modifications or expansion. The OTA
grant will cover allocable costs related to the design of the BHS system and under a
separate agreement cover a portion of allocable costs of the facility modification. The TSA
funding policy regarding the OTA Grant guidelines is included as Attachment C.
The cost for this outbound baggage handling system design amounts to $3,174,638. The
TSA allocable costs contribution under the OTA grant will be funded at 95% totaling
$1,388,995 and the Airport will be responsible for the remaining share in the amount of
$1,785,373.
All projects supported under this action are approved by the FAA and TSA, respectively
and considered safety and/or terminal improvement projects to facilitate the FAA’s
National Plan of Integrated Airport Systems.
Airport staff believes that the FAA may transmit the ATP grant and the TSA may transmit
the OTA grant to the City during the month of August and request for the City to sign the
agreements and return them prior to September 30, 2023. Therefore, this action would
authorize the City Manager to sign the two grant agreements for the amounts published
by the FAA and TSA, as stated above.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the
whole of an action, which has a potential for resulting in either a direct physical change in
the environment, or a reasonably foreseeable indirect physical change in the
environment. According to Section 15378(b), a “Project” does not include: (5)
Organizational or administrative activities of governments that will not result in direct or
indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports City Council priority 2A, Improve City Facilities.
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City Council Staff Report
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Acceptance of Federally Funded Grants for Airport
FISCAL IMPACT:
The total cost of the master plan package amounts to $2,335,018. The FAA contribution
under the AIP grant will be funded at 90.66% totaling $2,108,584 and the Airport will be
responsible for the remaining amount of $226,434.
The preliminary cost analysis rough order of magnitude total for the Inbound Baggage
Claim System project amounts to $27,348,000. The FAA contribution under the BIL-ATP
grant will be funded at 95% for a portion totaling $5,700,000 and the Airport will be
responsible for the grantee’s share in the amount of $300,000. The remaining amount of
the project will be covered by BIL-AIG funding and PFCs.
The cost for this outbound baggage handling system design amounts to $3,174,638. The
TSA allocable costs contribution under the OTA grant will be funded at 95% totaling
$1,388,995 and the Airport will be responsible for the remaining share in the amount of
$1,785,373.
The three projects have a total cost of $32,857,656. The majority of the funding is
provided through grants from the FAA and TSA, with the Airport responsible for the
remaining shares. The grants will be reimbursed through designated Airport account
4167070.50126, while the Airport's share will be funded from the Airport Special Capital
Projects account 4167070.80000.
REVIEWED BY:
Department Director: Harry Barrett Jr.
City Attorney: Geremy Holm
City Manager: Scott Stiles
ATTACHMENTS:
A. FAA AIP Grant Agreement No. 3-06-0181-067-2023
B. FAA FAQ Regarding BIL-ATP Funding
C. TSA Funding Policy
Item 1C - Page 5
ATTACHMENT A
FAA AIP GRANT
AGREEMENT NO. 3-06-0181-067-2023
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U.S. Department
of Transportation
Federal Aviation
Administration
Airports Division
Western-Pacific Region
California
Los Angeles Airports District
Office:
777 S Aviation Blvd, Ste 150
El Segundo, CA 90245
{{DateTime_es_:signer1:calc(now()):format(date," mmmm d, yyyy")}}
Mr. Scott C. Stiles, City Manager
City of Palm Springs
3400 E. Tahquitz Canyon Way, Suite 1
Palm Springs, CA 92262
Dear Mr. Stiles:
The Grant Offer for Airport Improvement Program (AIP) Project No. 3-06-0181-067-2023 at Palm Springs
International Airport is attached for execution. This letter outlines the steps you must take to properly
enter into this agreement and provides other useful information. Please read the conditions, special
conditions, and assurances that comprise the grant offer carefully.
You may not make any modification to the text, terms or conditions of the grant offer.
Steps You Must Take to Enter Into Agreement.
To properly enter into this agreement, you must do the following:
1. The governing body must give authority to execute the grant to the individual(s) signing the
grant, i.e., the person signing the document must be the sponsor’s authorized representative(s)
(hereinafter “authorized representative”).
2. The authorized representative must execute the grant by adding their electronic signature to
the appropriate certificate at the end of the agreement.
3. Once the authorized representative has electronically signed the grant, the sponsor‘s attorney(s)
will automatically receive an email notification.
4. On the same day or after the authorized representative has signed the grant, the sponsor‘s
attorney(s) will add their electronic signature to the appropriate certificate at the end of the
agreement.
5. If there are co-sponsors, the authorized representative(s) and sponsor‘s attorney(s) must follow
the above procedures to fully execute the grant and finalize the process. Signatures must be
obtained and finalized no later than June 30, 2023.
6. The fully executed grant will then be automatically sent to all parties as an email attachment.
Payment. Subject to the requirements in 2 CFR § 200.305 (Federal Payment), each payment request for
reimbursement under this grant must be made electronically via the Delphi eInvoicing System. Please
see the attached Grant Agreement for more information regarding the use of this System.
Project Timing. The terms and conditions of this agreement require you to complete the project without
undue delay and no later than the Period of Performance end date (1,460 days from the grant execution
date). We will be monitoring your progress to ensure proper stewardship of these Federal funds. We
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expect you to submit payment requests for reimbursement of allowable incurred project expenses
consistent with project progress. Your grant may be placed in “inactive” status if you do not make draws
on a regular basis, which will affect your ability to receive future grant offers. Costs incurred after the
Period of Performance ends are generally not allowable and will be rejected unless authorized by the
FAA in advance.
Reporting.Until the grant is completed and closed, you are responsible for submitting formal reports as
follows:
For all grants, you must submit by December 31st of each year this grant is open:
1. A signed/dated SF-270 (Request for Advance or Reimbursement for non-construction
projects) or SF-271 or equivalent (Outlay Report and Request for Reimbursement for
Construction Programs), and
2. An SF-425 (Federal Financial Report).
For non-construction projects, you must submit FAA Form 5100-140, Performance Report within
30 days of the end of the Federal fiscal year.
For construction projects, you must submit FAA Form 5370-1, Construction Progress and
Inspection Report, within 30 days of the end of each Federal fiscal quarter.
Audit Requirements. As a condition of receiving Federal assistance under this award, you must comply
with audit requirements as established under 2 CFR Part 200. Subpart F requires non-Federal entities
that expend $750,000 or more in Federal awards to conduct a single or program specific audit for that
year. Note that this includes Federal expenditures made under other Federal-assistance programs.
Please take appropriate and necessary action to ensure your organization will comply with applicable
audit requirements and standards.
Closeout. Once the project(s) is completed and all costs are determined, we ask that you work with your
FAA contact indicated below to close the project without delay and submit the necessary final closeout
documentation as required by your Region/Airports District Office.
FAA Contact Information. Darlene Williams, (424) 405-7279, darlene.williams@faa.gov is the assigned
program manager for this grant and is readily available to assist you and your designated representative
with the requirements stated herein.
We sincerely value your cooperation in these efforts and look forward to working with you to complete
this important project.
Sincerely,
{{Sig_es_:signer1: signature}}
Luke Garrison
Acting Manager
[ADO has discretion to delegate signature authority to Program Manager]
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•
•
•
L-uf(.e A:. uarrison
Luke A. Garrison (May 9, 202312:12 PDT)
3-06-0181-067-2023
3
U.S. Department
of Transportation
Federal Aviation
Administration
FEDERAL AVIATION ADMINISTRATION AIRPORT IMPROVEMENT PROGRAM
FY 2023 Airport Improvement Program (AIP)
GRANT AGREEMENT
Part I - Offer
Federal Award Offer Date {{DateTime_es_:signer1:calc(now()):format(date," mmmm d, yyyy")}}
Airport/Planning Area Palm Springs International Airport
FY2023 AIP Grant Number 3-06-0181-067-2023
Unique Entity Identifier M81QLC23JVX5
TO: City of Palm Springs
(herein called the "Sponsor")
FROM: The United States of America (acting through the Federal Aviation Administration, herein
called the "FAA")
WHEREAS, the Sponsor has submitted to the FAA a Project Application dated February 23, 2023, for a
grant of Federal funds for a project at or associated with the Palm Springs International Airport, which is
included as part of this Grant Agreement; and
WHEREAS, the FAA has approved a project for the Palm Springs International Airport (herein called the
“Project”) consisting of the following:
Update Airport Master Plan or Study/GIS
which is more fully described in the Project Application.
NOW THEREFORE, Pursuant to and for the purpose of carrying out the Title 49, United States Code
(U.S.C.), Chapters 471 and 475; 49 U.S.C. §§ 40101 et seq., and 48103; FAA Reauthorization Act of 2018
(Public Law Number 115-254); the Department of Transportation Appropriations Act, 2021 (Public Law
116-260, Division L); the Consolidated Appropriations Act, 2022 (Public Law 117-103); Consolidated
Appropriations Act, 2023 (Public Law 117-328); and the representations contained in the Project
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Application; and in consideration of: (a) the Sponsor’s adoption and ratification of the Grant Assurances
attached hereto; (b) the Sponsor’s acceptance of this Offer; and (c) the benefits to accrue to the United
States and the public from the accomplishment of the Project and compliance with the Grant Assurance
and conditions as herein provided;
THE FEDERAL AVIATION ADMINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY
OFFERS AND AGREES to pay 90.66 percent of the allowable costs incurred accomplishing the Project
as the United States share of the Project.
Assistance Listings Number (Formerly CFDA Number): 20.106
This Offer is made on and SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:
CONDITIONS
1. Maximum Obligation. The maximum obligation of the United States payable under this Offer is
$2,108,584.
The following amounts represent a breakdown of the maximum obligation for the purpose of
establishing allowable amounts for any future grant amendment, which may increase the
foregoing maximum obligation of the United States under the provisions of 49 U.S.C. § 47108(b):
$ 2,108,584 for planning;
$ 0 airport development or noise program implementation; and,
$ 0 for land acquisition.
2. Grant Performance. This Grant Agreement is subject to the following Federal award
requirements:
a. Period of Performance:
1. Shall start on the date the Sponsor formally accepts this Agreement and is the
date signed by the last Sponsor signatory to the Agreement. The end date of the
Period of Performance is 4 years (1,460 calendar days) from the date of
acceptance. The Period of Performance end date shall not affect, relieve, or
reduce Sponsor obligations and assurances that extend beyond the closeout of
this Grant Agreement.
2. Means the total estimated time interval between the start of an initial Federal
award and the planned end date, which may include one or more funded
portions or budget periods. (2 Code of Federal Regulations (CFR) § 200.1).
b. Budget Period:
1. For this Grant is 4 years (1,460 calendar days) and follows the same start and
end date as the Period of Performance provided in paragraph (2)(a)(1). Pursuant
to 2 CFR § 200.403(h), the Sponsor may charge to the Grant only allowable costs
incurred during the Budget Period.
2. Means the time interval from the start date of a funded portion of an award to
the end date of that funded portion during which the Sponsor is authorized to
expend the funds awarded, including any funds carried forward or other
revisions pursuant to 2 CFR § 200.308.
c. Close Out and Termination
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1. Unless the FAA authorizes a written extension, the Sponsor must submit all
Grant closeout documentation and liquidate (pay-off) all obligations incurred
under this award no later than 120 calendar days after the end date of the
period of performance. If the Sponsor does not submit all required closeout
documentation within this time period, the FAA will proceed to close out the
grant within one year of the Period of Performance end date with the
information available at the end of 120 days. (2 CFR § 200.344).
2. The FAA may terminate this Grant, in whole or in part, in accordance with the
conditions set forth in 2 CFR § 200.340, or other Federal regulatory or statutory
authorities as applicable.
3. Ineligible or Unallowable Costs. The Sponsor must not include any costs in the project that the
FAA has determined to be ineligible or unallowable.
4. Indirect Costs - Sponsor. The Sponsor may charge indirect costs under this award by applying
the indirect cost rate identified in the project application as accepted by the FAA, to allowable
costs for Sponsor direct salaries and wages.
5. Determining the Final Federal Share of Costs. The United States’ share of allowable project
costs will be made in accordance with 49 U.S.C. § 47109, the regulations, policies, and
procedures of the Secretary of Transportation (“Secretary”), and any superseding legislation.
Final determination of the United States’ share will be based upon the final audit of the total
amount of allowable project costs and settlement will be made for any upward or downward
adjustments to the Federal share of costs.
6. Completing the Project Without Delay and in Conformance with Requirements. The Sponsor
must carry out and complete the project without undue delays and in accordance with this
Agreement, 49 U.S.C. Chapters 471 and 475, the regulations, and the Secretary’s policies and
procedures. Per 2 CFR § 200.308, the Sponsor agrees to report and request prior FAA approval
for any disengagement from performing the project that exceeds three months or a 25 percent
reduction in time devoted to the project. The report must include a reason for the project
stoppage. The Sponsor also agrees to comply with the grant assurances, which are part of this
Agreement.
7. Amendments or Withdrawals before Grant Acceptance. The FAA reserves the right to amend
or withdraw this offer at any time prior to its acceptance by the Sponsor.
8. Offer Expiration Date. This offer will expire and the United States will not be obligated to pay
any part of the costs of the project unless this offer has been accepted by the Sponsor on or
before June 30, 2023, or such subsequent date as may be prescribed in writing by the FAA.
9. Improper Use of Federal Funds. The Sponsor must take all steps, including litigation if
necessary, to recover Federal funds spent fraudulently, wastefully, or in violation of Federal
antitrust statutes, or misused in any other manner for any project upon which Federal funds
have been expended. For the purposes of this Grant Agreement, the term “Federal funds”
means funds however used or dispersed by the Sponsor, that were originally paid pursuant to
this or any other Federal grant agreement. The Sponsor must obtain the approval of the
Secretary as to any determination of the amount of the Federal share of such funds. The
Sponsor must return the recovered Federal share, including funds recovered by settlement,
order, or judgment, to the Secretary. The Sponsor must furnish to the Secretary, upon request,
all documents and records pertaining to the determination of the amount of the Federal share
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or to any settlement, litigation, negotiation, or other efforts taken to recover such funds. All
settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery
of such Federal share require advance approval by the Secretary.
10.United States Not Liable for Damage or Injury.The United States is not responsible or liable for
damage to property or injury to persons which may arise from, or be incident to, compliance
with this Grant Agreement.
11. System for Award Management (SAM) Registration and Unique Entity Identifier (UEI).
a. Requirement for System for Award Management (SAM): Unless the Sponsor is
exempted from this requirement under 2 CFR § 25.110, the Sponsor must maintain the
currency of its information in the SAM until the Sponsor submits the final financial
report required under this Grant, or receives the final payment, whichever is later. This
requires that the Sponsor review and update the information at least annually after the
initial registration and more frequently if required by changes in information or another
award term. Additional information about registration procedures may be found at the
SAM website (currently at http://www.sam.gov).
b. Unique entity identifier (UEI) means a 12-character alpha-numeric value used to identify
a specific commercial, nonprofit or governmental entity. A UEI may be obtained from
SAM.gov at https://sam.gov/content/entity-registration.
12. Electronic Grant Payment(s). Unless otherwise directed by the FAA, the Sponsor must make
each payment request under this Agreement electronically via the Delphi eInvoicing System for
Department of Transportation (DOT) Financial Assistance Awardees.
13. Informal Letter Amendment of AIP Projects. If, during the life of the project, the FAA
determines that the maximum grant obligation of the United States exceeds the expected needs
of the Sponsor by $25,000 or five percent (5%), whichever is greater, the FAA can issue a letter
amendment to the Sponsor unilaterally reducing the maximum obligation.
The FAA can also issue a letter to the Sponsor increasing the maximum obligation if there is an
overrun in the total actual eligible and allowable project costs to cover the amount of the
overrun provided it will not exceed the statutory limitations for grant amendments. The FAA’s
authority to increase the maximum obligation does not apply to the “planning” component of
Condition No. 1, Maximum Obligation.
The FAA can also issue an informal letter amendment that modifies the grant description to
correct administrative errors or to delete work items if the FAA finds it advantageous and in the
best interests of the United States.
An informal letter amendment has the same force and effect as a formal grant amendment.
14. Air and Water Quality. The Sponsor is required to comply with all applicable air and water
quality standards for all projects in this grant. If the Sponsor fails to comply with this
requirement, the FAA may suspend, cancel, or terminate this Grant Agreement.
15. Financial Reporting and Payment Requirements. The Sponsor will comply with all Federal
financial reporting requirements and payment requirements, including submittal of timely and
accurate reports.
16. Buy American. Unless otherwise approved in advance by the FAA, in accordance with 49 U.S.C.
§ 50101, the Sponsor will not acquire or permit any contractor or subcontractor to acquire any
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steel or manufactured products produced outside the United States to be used for any project
for which funds are provided under this Grant. The Sponsor will include a provision
implementing Buy American in every contract and subcontract awarded under this Grant.
17.Build America, Buy America.The Sponsor must comply with the requirements under the Build
America, Buy America Act (Public Law 117-58).
18.Maximum Obligation Increase.In accordance with 49 U.S.C. § 47108(b)(3), as amended, the
maximum obligation of the United States, as stated in Condition No. 1, Maximum Obligation, of
this Grant Offer:
a. May not be increased for a planning project;
b. May be increased by not more than 15 percent for development projects if funds are
available;
c. May be increased by not more than the greater of the following for a land project, if
funds are available:
1. 15 percent; or
2. 25 percent of the total increase in allowable project costs attributable to
acquiring an interest in the land.
If the Sponsor requests an increase, any eligible increase in funding will be subject to the United
States Government share as provided in 49 U.S.C. § 47110, or other superseding legislation if
applicable, for the fiscal year appropriation with which the increase is funded. The FAA is not
responsible for the same Federal share provided herein for any amount increased over the
initial grant amount. The FAA may adjust the Federal share as applicable through an informal
letter of amendment.
19. Audits for Sponsors.
PUBLIC SPONSORS. The Sponsor must provide for a Single Audit or program-specific audit in
accordance with 2 CFR Part 200. The Sponsor must submit the audit reporting package to the
Federal Audit Clearinghouse on the Federal Audit Clearinghouse’s Internet Data Entry System at
http://harvester.census.gov/facweb/. Upon request of the FAA, the Sponsor shall provide one
copy of the completed audit to the FAA. Sponsors that expend less than $750,000 in Federal
awards and are exempt from Federal audit requirements must make records available for
review or audit by the appropriate Federal agency officials, State, and Government
Accountability Office. The FAA and other appropriate Federal agencies may request additional
information to meet all Federal audit requirements.
20. Suspension or Debarment. When entering into a “covered transaction” as defined by 2 CFR §
180.200, the Sponsor must:
a. Verify the non-Federal entity is eligible to participate in this Federal program by:
1. Checking the excluded parties list system (EPLS) as maintained within the
System for Award Management (SAM) to determine if the non-Federal entity is
excluded or disqualified; or
2. Collecting a certification statement from the non-Federal entity attesting they
are not excluded or disqualified from participating; or
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3. Adding a clause or condition to covered transactions attesting the individual or
firm are not excluded or disqualified from participating.
b. Require prime contractors to comply with 2 CFR § 180.330 when entering into lower-tier
transactions with their contractors and sub-contractors.
c. Immediately disclose in writing to the FAA whenever (1) the Sponsor learns they have
entered into a covered transaction with an ineligible entity or (2) the Public Sponsor
suspends or debars a contractor, person, or entity.
21.Ban on Texting While Driving.
a. In accordance with Executive Order 13513, Federal Leadership on Reducing Text
Messaging While Driving, October 1, 2009, and DOT Order 3902.10, Text Messaging
While Driving, December 30, 2009, the Sponsor is encouraged to:
1. Adopt and enforce workplace safety policies to decrease crashes caused by
distracted drivers including policies to ban text messaging while driving when
performing any work for, or on behalf of, the Federal government, including
work relating to a grant or subgrant.
2. Conduct workplace safety initiatives in a manner commensurate with the size of
the business, such as:
i. Establishment of new rules and programs or re-evaluation of existing
programs to prohibit text messaging while driving; and
ii. Education, awareness, and other outreach to employees about the
safety risks associated with texting while driving.
b. The Sponsor must insert the substance of this clause on banning texting while driving in
all subgrants, contracts, and subcontracts funded with this Grant.
22. Trafficking in Persons.
a. Posting of contact information.
1. The Sponsor must post the contact information of the national human
trafficking hotline (including options to reach out to the hotline such as through
phone, text, or TTY) in all public airport restrooms.
b. Provisions applicable to a recipient that is a private entity.
1. You as the recipient, your employees, subrecipients under this Grant, and
subrecipients’ employees may not:
i. Engage in severe forms of trafficking in persons during the period of
time that the Grant and applicable conditions are in effect;
ii. Procure a commercial sex act during the period of time that the Grant
and applicable conditions are in effect; or
iii. Use forced labor in the performance of the Grant or any subgrants
under this Grant.
2. We as the Federal awarding agency, may unilaterally terminate this Grant,
without penalty, if you or a subrecipient that is a private entity –
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9
i. Is determined to have violated a prohibition in paragraph (a) of this
Grant Condition; or
ii. Has an employee who is determined by the agency official authorized to
terminate the Grant to have violated a prohibition in paragraph (a) of
this Grant Condition through conduct that is either –
a) Associated with performance under this Grant; or
b) Imputed to you or the subrecipient using the standards and due
process for imputing the conduct of an individual to an organization that
are provided in 2 CFR Part 180, “OMB Guidelines to Agencies on
Governmentwide Debarment and Suspension (Nonprocurement),” as
implemented by our agency at 2 CFR Part 1200.
c. Provision applicable to a recipient other than a private entity. We as the Federal
awarding agency may unilaterally terminate this Grant, without penalty, if a
subrecipient that is a private entity –
1. Is determined to have violated an applicable prohibition in paragraph (a) of this
Grant Condition; or
2. Has an employee who is determined by the agency official authorized to
terminate the Grant to have violated an applicable prohibition in paragraph (a)
of this Grant Condition through conduct that is either –
i. Associated with performance under this Grant; or
ii. Imputed to the subrecipient using the standards and due process for
imputing the conduct of an individual to an organization that are
provided in 2 CFR Part 180, “OMB Guidelines to Agencies on
Governmentwide Debarment and Suspension (Nonprocurement),” as
implemented by our agency at 2 CFR Part 1200.
d. Provisions applicable to any recipient.
1. You must inform us immediately of any information you receive from any
source alleging a violation of a prohibition in paragraph (a) of this Grant
Condition.
2. Our right to terminate unilaterally that is described in paragraph (a) or (b) of this
Grant Condition:
i. Implements section 106(g) of the Trafficking Victims Protection Act of
2000 (TVPA), as amended [22 U.S.C. § 7104(g)], and
ii. Is in addition to all other remedies for noncompliance that are available
to us under this Grant.
3. You must include the requirements of paragraph (a) of this Grant Condition in
any subgrant you make to a private entity.
e. Definitions. For purposes of this Grant Condition:
1. “Employee” means either:
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10
i. An individual employed by you or a subrecipient who is engaged in the
performance of the project or program under this Grant; or
ii. Another person engaged in the performance of the project or program
under this Grant and not compensated by you including, but not limited
to, a volunteer or individual whose services are contributed by a third
party as an in-kind contribution toward cost sharing or matching
requirements.
2. “Force labor” means labor obtained by any of the following methods: the
recruitment, harboring, transportation, provision, or obtaining of a person for
labor or services, through the use of force, fraud, or coercion for the purpose of
subjection to involuntary servitude, peonage, debt bondage, or slavery.
3. “Private entity”:
i. Means any entity other than a State, local government, Indian tribe, or
foreign public entity, as those terms are defined in 2 CFR § 175.25.
ii. Includes:
a) A nonprofit organization, including any nonprofit institute of higher
education, hospital, or tribal organization other than one included in the
definition of Indian tribe at 2 CFR § 175.25(b).
b) A for-profit organization.
4. “Severe forms of trafficking in persons,” “commercial sex act,” and “coercion”
have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. §
7102).
23. AIP Funded Work Included in a PFC Application. Within 90 days of acceptance of this Grant
Agreement, the Sponsor must submit to the FAA an amendment to any approved Passenger
Facility Charge (PFC) application that contains an approved PFC project also covered under this
Grant Agreement as described in the project application. The airport sponsor may not make any
expenditure under this Grant Agreement until project work addressed under this Grant
Agreement is removed from an approved PFC application by amendment.
24. Exhibit “A” Property Map. The Exhibit “A” Property Map dated January 10, 2011, is
incorporated herein by reference or is submitted with the project application and made part of
this Grant Agreement.
25. Employee Protection from Reprisal.
a. Prohibition of Reprisals
1. In accordance with 41 U.S.C. § 4712, an employee of a Sponsor, grantee, subgrantee,
contractor, or subcontractor may not be discharged, demoted, or otherwise
discriminated against as a reprisal for disclosing to a person or body described in
sub-paragraph (a)(2) below, information that the employee reasonably believes is
evidence of:
i. Gross mismanagement of a Federal grant;
ii. Gross waste of Federal funds;
iii. An abuse of authority relating to implementation or use of Federal funds;
iv. A substantial and specific danger to public health or safety; or
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11
v. A violation of law, rule, or regulation related to a Federal grant.
2. Persons and bodies covered. The persons and bodies to which a disclosure by an
employee is covered are as follows:
i. A member of Congress or a representative of a committee of Congress;
ii. An Inspector General;
iii. The Government Accountability Office;
iv. A Federal employee responsible for contract or grant oversight or management
at the relevant agency;
v. A court or grand jury;
vi. A management official or other employee of the Sponsor, contractor, or
subcontractor who has the responsibility to investigate, discover, or address
misconduct; or
vii. An authorized official of the Department of Justice or other law enforcement
agency.
b. Investigation of Complaints.
1. Submission of Complaint. A person who believes that they have been subjected to a
reprisal prohibited by paragraph (a) of this Condition may submit a complaint
regarding the reprisal to the Office of Inspector General (OIG) for the U.S.
Department of Transportation.
2. Time Limitation for Submittal of a Complaint. A complaint may not be brought under
this subsection more than three years after the date on which the alleged reprisal
took place.
3. Required Actions of the Inspector General. Actions, limitations, and exceptions of the
Inspector General’s office are established under 41 U.S.C. § 4712(b).
c. Remedy and Enforcement Authority.
1. Assumption of Rights to Civil Remedy. Upon receipt of an explanation of a decision
not to conduct or continue an investigation by the OIG, the person submitting a
complaint assumes the right to a civil remedy under 41 U.S.C. § 4712(c)(2).
26. Prohibited Telecommunications and Video Surveillance Services and Equipment. The Sponsor
agrees to comply with mandatory standards and policies relating to use and procurement of
certain telecommunications and video surveillance services or equipment in compliance with
the National Defense Authorization Act [Public Law 115-232 § 889(f)(1)] and 2 CFR § 200.216.
27. Critical Infrastructure Security and Resilience. The Sponsor acknowledges that it has considered
and addressed physical and cybersecurity and resilience in their project planning, design, and
oversight, as determined by the DOT and the Department of Homeland Security (DHS). For
airports that do not have specific DOT or DHS cybersecurity requirements, the FAA encourages
the voluntary adoption of the cybersecurity requirements from the Transportation Security
Administration and Federal Security Director identified for security risk Category X airports.
SPECIAL CONDITIONS
28. Airport Layout Plan. The Sponsor understands and agrees to update the Airport Layout Plan to
reflect the construction to standards satisfactory to the FAA and submit it in final form to the
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12
FAA as prescribed by 49 U.S.C. § 47107(a)(16). It is further mutually agreed that the reasonable
cost of developing said Airport Layout Plan Map is an allowable cost within the scope of this
project, if applicable. Airport Sponsors Grant Assurance 29 further addresses the Sponsor’s
statutory obligations to maintain an airport layout plan in accordance with 49 U.S.C. §
47107(a)(16).
29.Master Plan Coordination.The Sponsor agrees to coordinate this master planning study with
metropolitan planning organizations, other local planning agencies, and with the State Airport
System Plan prepared by the State’s Department of Transportation and consider any pertinent
information, data, projections, and forecasts which are currently available or as will become
available. The Sponsor agrees to consider any State Clearinghouse comments and to furnish a
copy of the final report to the State’s Department of Transportation.
30. Airport Layout Plan Coordination. The Sponsor has made available to (or will make available to)
and has provided (or will provide) upon request to the metropolitan planning organization, if
any, in the area in which the airport is located, a copy of the proposed airport layout plan or ALP
amendment to depict the project and a copy of any airport master plan in which the project is
described or depicted.
31. Airports Geographic Information System (GIS) Survey. If the Airport’s GIS survey is not reflected
on an updated Airport Layout Plan (ALP) that meets FAA requirements within four (4) years from
the date of the Phase 1 grant (regardless of whether it is generated using the AGIS/eALP system
or through some other computer-aided design platform), then the Sponsor may be required to
repay that portion of this Grant that relates to the survey work.
32. Buy American Executive Orders. The Sponsor agrees to abide by applicable Executive Orders in
effect at the time this Grant Agreement is executed, including Executive Order 14005, Ensuring
the Future Is Made in All of America by All of America’s Workers.
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13
The Sponsor’s acceptance of this Offer and ratification and adoption of the Project Application
incorporated herein shall be evidenced by execution of this instrument by the Sponsor, as hereinafter
provided, and this Offer and Acceptance shall comprise a Grant Agreement, constituting the contractual
obligations and rights of the United States and the Sponsor with respect to the accomplishment of the
Project and compliance with the Grant Assurances, terms, and conditions as provided herein. Such Grant
Agreement shall become effective upon the Sponsor’s acceptance of this Offer.
Please read the following information: By signing this document, you are agreeing that you have
reviewed the following consumer disclosure information and consent to transact business using
electronic communications, to receive notices and disclosures electronically, and to utilize electronic
signatures in lieu of using paper documents. You are not required to receive notices and disclosures or
sign documents electronically. If you prefer not to do so, you may request to receive paper copies and
withdraw your consent at any time.
I declare under penalty of perjury that the foregoing is true and correct.1
UNITED STATES OF AMERICA
FEDERAL AVIATION ADMINISTRATION
{{Sig_es_:signer1:signature:dimension(height=12mm, width=70mm}}
(Signature)
{{N_es_:signer1:fullname }}
(Typed Name)
{{*Ttl_es_:signer1:title }}
(Title of FAA Official)
1 Knowingly and willfully providing false information to the Federal government is a violation of 18 U.S.C.
§ 1001 (False Statements) and could subject you to fines, imprisonment, or both.
Item 1C - Page 19
L-u~e A. uarrison
Luke A. Garrison (May 9, 2023 12:12 PDT)
Luke A. Garrison
Acting Manager, Los Angeles ADO
3-06-0181-067-2023
14
Part II - Acceptance
The Sponsor does hereby ratify and adopt all assurances, statements, representations, warranties,
covenants, and agreements contained in the Project Application and incorporated materials referred to
in the foregoing Offer, and does hereby accept this Offer and by such acceptance agrees to comply with
all of the Grant Assurances, terms, and conditions in this Offer and in the Project Application.
Please read the following information: By signing this document, you are agreeing that you have
reviewed the following consumer disclosure information and consent to transact business using
electronic communications, to receive notices and disclosures electronically, and to utilize electronic
signatures in lieu of using paper documents. You are not required to receive notices and disclosures or
sign documents electronically. If you prefer not to do so, you may request to receive paper copies and
withdraw your consent at any time.
I declare under penalty of perjury that the foregoing is true and correct.2
Dated {{DateTime_es_:signer2:calc(now()):format(date," mmmm d, yyyy")}}
City of Palm Springs
(Name of Sponsor)
{{Sig_es_:signer2:signature:dimension(height=12mm, width=70mm}}
(Signature of Sponsor’s Authorized Official)
By: {{N_es_:signer2:fullname }}
(Typed Name of Sponsor’s Authorized Official)
Title: {{*Ttl_es_:signer2:title }}
(Title of Sponsor’s Authorized Official)
2 Knowingly and willfully providing false information to the Federal government is a violation of 18 U.S.C.
§ 1001 (False Statements) and could subject you to fines, imprisonment, or both.
Item 1C - Page 20
May 9, 2023
Scott C. Stiles (May 9, 2023 13:53 PDT)
Scott C. Stiles
City Manager
3-06-0181-067-2023
15
CERTIFICATE OF SPONSOR’S ATTORNEY
I, {{N_es_:signer3: fullname}}, acting as Attorney for the Sponsor do hereby certify:
That in my opinion the Sponsor is empowered to enter into the foregoing Grant Agreement under the
laws of the State of __California__. Further, I have examined the foregoing Grant Agreement and the
actions taken by said Sponsor and Sponsor’s official representative, who has been duly authorized to
execute this Grant Agreement, which is in all respects due and proper and in accordance with the laws
of the said State; and Title 49, United States Code (U.S.C.), Chapters 471 and 475; 49 U.S.C. §§ 40101 et
seq., and 48103; FAA Reauthorization Act of 2018 (Public Law Number 115-254); the Department of
Transportation Appropriations Act, 2021 (Public Law 116-260, Division L); the Consolidated
Appropriations Act, 2022 (Public Law 117-103); Consolidated Appropriations Act, 2023 (Public Law 117-
328); and the representations contained in the Project Application. In addition, for grants involving
projects to be carried out on property not owned by the Sponsor, there are no legal impediments that
will prevent full performance by the Sponsor. Further, it is my opinion that the said Grant Agreement
constitutes a legal and binding obligation of the Sponsor in accordance with the terms thereof.
Please read the following information: By signing this document, you are agreeing that you have
reviewed the following consumer disclosure information and consent to transact business using
electronic communications, to receive notices and disclosures electronically, and to utilize electronic
signatures in lieu of using paper documents. You are not required to receive notices and disclosures or
sign documents electronically. If you prefer not to do so, you may request to receive paper copies and
withdraw your consent at any time.
I declare under penalty of perjury that the foregoing is true and correct.3
Dated at {{DateTime_es_:signer3:calc(now()):format(date," mmmm d, yyyy")}}
By: {{Sig_es_:signer3:signature:dimension(height=12mm, width=70mm}}
(Signature of Sponsor’s Attorney)
3 Knowingly and willfully providing false information to the Federal government is a violation of 18 U.S.C.
§ 1001 (False Statements) and could subject you to fines, imprisonment, or both.
Item 1C - Page 21
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Airport Sponsor Assurances 5/2022 Page 1 of 18
ASSURANCES
AIRPORT SPONSORS
A. General.
1. These assurances shall be complied with in the performance of grant agreements for airport
development, airport planning, and noise compatibility program grants for airport sponsors.
2. These assurances are required to be submitted as part of the project application by sponsors
requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as amended. As used
herein, the term "public agency sponsor" means a public agency with control of a public-use
airport; the term "private sponsor" means a private owner of a public-use airport; and the term
"sponsor" includes both public agency sponsors and private sponsors.
3. Upon acceptance of this grant offer by the sponsor, these assurances are incorporated in and
become part of this Grant Agreement.
B. Duration and Applicability.
1. Airport development or Noise Compatibility Program Projects Undertaken by a Public Agency
Sponsor.
The terms, conditions and assurances of this Grant Agreement shall remain in full force and
effect throughout the useful life of the facilities developed or equipment acquired for an
airport development or noise compatibility program project, or throughout the useful life of
the project items installed within a facility under a noise compatibility program project, but in
any event not to exceed twenty (20) years from the date of acceptance of a grant offer of
Federal funds for the project. However, there shall be no limit on the duration of the
assurances regarding Exclusive Rights and Airport Revenue so long as the airport is used as an
airport. There shall be no limit on the duration of the terms, conditions, and assurances with
respect to real property acquired with federal funds. Furthermore, the duration of the Civil
Rights assurance shall be specified in the assurances.
2. Airport Development or Noise Compatibility Projects Undertaken by a Private Sponsor.
The preceding paragraph (1) also applies to a private sponsor except that the useful life of
project items installed within a facility or the useful life of the facilities developed or equipment
acquired under an airport development or noise compatibility program project shall be no less
than ten (10) years from the date of acceptance of Federal aid for the project.
3. Airport Planning Undertaken by a Sponsor.
Unless otherwise specified in this Grant Agreement, only Assurances 1, 2, 3, 5, 6, 13, 18, 23, 25,
30, 32, 33, 34, and 37 in Section C apply to planning projects. The terms, conditions, and
assurances of this Grant Agreement shall remain in full force and effect during the life of the
project; there shall be no limit on the duration of the assurances regarding Exclusive Rights and
Airport Revenue so long as the airport is used as an airport.
C. Sponsor Certification.
The sponsor hereby assures and certifies, with respect to this grant that:
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Airport Sponsor Assurances 5/2022 Page 2 of 18
1. General Federal Requirements
It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and
requirements as they relate to the application, acceptance, and use of Federal funds for this Grant
including but not limited to the following:
FEDERAL LEGISLATION
a. 49, U.S.C., subtitle VII, as amended.
b. Davis-Bacon Act, as amended — 40 U.S.C. §§ 3141-3144, 3146, and 3147, et seq.1
c. Federal Fair Labor Standards Act - 29 U.S.C. § 201, et seq.
d. Hatch Act – 5 U.S.C. § 1501, et seq.2
e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. §
4601, et seq.1, 2
f. National Historic Preservation Act of 1966 – Section 106 - 54 U.S.C. § 306108.1.1
g. Archeological and Historic Preservation Act of 1974 - 54 U.S.C. § 312501, et seq.1
h. Native Americans Grave Repatriation Act - 25 U.S.C. Section § 3001, et seq.
i. Clean Air Act, P.L. 90-148, as amended - 42 U.S.C. § 7401, et seq.
j. Coastal Zone Management Act, P.L. 92-583, as amended - 16 U.S.C. § 1451, et seq.
k. Flood Disaster Protection Act of 1973 – Section 102(a) - 42 U.S.C. § 4012a.1
l. 49 U.S.C. § 303, (formerly known as Section 4(f)).
m. Rehabilitation Act of 1973 - 29 U.S.C. § 794.
n. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) (prohibits
discrimination on the basis of race, color, national origin).
o. Americans with Disabilities Act of 1990, as amended, (42 U.S.C. § 12101 et seq.) (prohibits
discrimination on the basis of disability).
p. Age Discrimination Act of 1975 - 42 U.S.C. § 6101, et seq.
q. American Indian Religious Freedom Act, P.L. 95-341, as amended.
r. Architectural Barriers Act of 1968, as amended - 42 U.S.C. § 4151, et seq.1
s. Powerplant and Industrial Fuel Use Act of 1978 – Section 403 - 42 U.S.C. § 8373.1
t. Contract Work Hours and Safety Standards Act - 40 U.S.C. § 3701, et seq.1
u. Copeland Anti-kickback Act - 18 U.S.C. § 874.1
v. National Environmental Policy Act of 1969 - 42 U.S.C. § 4321, et seq.1
w. Wild and Scenic Rivers Act, P.L. 90-542, as amended – 16 U.S.C. § 1271, et seq.
x. Single Audit Act of 1984 - 31 U.S.C. § 7501, et seq.2
y. Drug-Free Workplace Act of 1988 - 41 U.S.C. §§ 8101 through 8105.
z. The Federal Funding Accountability and Transparency Act of 2006, as amended (P.L. 109-282, as
amended by section 6202 of P.L. 110-252).
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aa. Civil Rights Restoration Act of 1987, P.L. 100-259.
bb. Build America, Buy America Act, P.L. 117-58, Title IX.
EXECUTIVE ORDERS
a. Executive Order 11246 – Equal Employment Opportunity1
b. Executive Order 11990 – Protection of Wetlands
c. Executive Order 11998 – Flood Plain Management
d. Executive Order 12372 – Intergovernmental Review of Federal Programs
e. Executive Order 12699 – Seismic Safety of Federal and Federally Assisted New Building
Construction1
f. Executive Order 12898 – Environmental Justice
g. Executive Order 13166 – Improving Access to Services for Persons with Limited English
Proficiency
h. Executive Order 13985 – Executive Order on Advancing Racial Equity and Support for
Underserved Communities Through the Federal Government
i. Executive Order 13988 – Preventing and Combating Discrimination on the Basis of Gender
Identity or Sexual Orientation
j. Executive Order 14005 – Ensuring the Future is Made in all of America by All of America’s
Workers
k. Executive Order 14008 – Tackling the Climate Crisis at Home and Abroad
FEDERAL REGULATIONS
a. 2 CFR Part 180 – OMB Guidelines to Agencies on Governmentwide Debarment and Suspension
(Nonprocurement).
b. 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards.4, 5
c. 2 CFR Part 1200 – Nonprocurement Suspension and Debarment.
d. 14 CFR Part 13 – Investigative and Enforcement Procedures.
e. 14 CFR Part 16 – Rules of Practice For Federally-Assisted Airport Enforcement Proceedings.
f. 14 CFR Part 150 – Airport Noise Compatibility Planning.
g. 28 CFR Part 35 – Nondiscrimination on the Basis of Disability in State and Local Government
Services.
h. 28 CFR § 50.3 – U.S. Department of Justice Guidelines for the Enforcement of Title VI of the Civil
Rights Act of 1964.
i. 29 CFR Part 1 – Procedures for Predetermination of Wage Rates.1
j. 29 CFR Part 3 – Contractors and Subcontractors on Public Building or Public Work Financed in
Whole or in Part by Loans or Grants from the United States.1
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k. 29 CFR Part 5 – Labor Standards Provisions Applicable to Contracts Covering Federally Financed
and Assisted Construction (Also Labor Standards Provisions Applicable to Nonconstruction
Contracts Subject to the Contract Work Hours and Safety Standards Act).1
l. 41 CFR Part 60 – Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor (Federal and Federally-assisted contracting requirements).1
m. 49 CFR Part 20 – New Restrictions on Lobbying.
n. 49 CFR Part 21 – Nondiscrimination in Federally-Assisted Programs of the Department of
Transportation - Effectuation of Title VI of the Civil Rights Act of 1964.
o. 49 CFR Part 23 – Participation by Disadvantage Business Enterprise in Airport Concessions.
p. 49 CFR Part 24 – Uniform Relocation Assistance and Real Property Acquisition for Federal and
Federally-Assisted Programs.1 2
q. 49 CFR Part 26 – Participation by Disadvantaged Business Enterprises in Department of
Transportation Financial Assistance Programs.
r. 49 CFR Part 27 – Nondiscrimination on the Basis of Disability in Programs or Activities Receiving
Federal Financial Assistance.1
s. 49 CFR Part 28 – Enforcement of Nondiscrimination on the Basis of Handicap in Programs or
Activities Conducted by the Department of Transportation.
t. 49 CFR Part 30 – Denial of Public Works Contracts to Suppliers of Goods and Services of
Countries That Deny Procurement Market Access to U.S. Contractors.
u. 49 CFR Part 32 – Governmentwide Requirements for Drug-Free Workplace (Financial
Assistance).
v. 49 CFR Part 37 – Transportation Services for Individuals with Disabilities (ADA).
w. 49 CFR Part 38 – Americans with Disabilities Act (ADA) Accessibility Specifications for
Transportation Vehicles.
x. 49 CFR Part 41 – Seismic Safety.
FOOTNOTES TO ASSURANCE (C)(1)
1 These laws do not apply to airport planning sponsors.
2 These laws do not apply to private sponsors.
3 2 CFR Part 200 contains requirements for State and Local Governments receiving Federal
assistance. Any requirement levied upon State and Local Governments by this regulation shall
apply where applicable to private sponsors receiving Federal assistance under Title 49, United
States Code.
4 Cost principles established in 2 CFR part 200 subpart E must be used as guidelines for
determining the eligibility of specific types of expenses.
5 Audit requirements established in 2 CFR part 200 subpart F are the guidelines for audits.
SPECIFIC ASSURANCES
Specific assurances required to be included in grant agreements by any of the above laws, regulations or
circulars are incorporated by reference in this grant agreement.
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2. Responsibility and Authority of the Sponsor.
a. Public Agency Sponsor:
It has legal authority to apply for this Grant, and to finance and carry out the proposed project;
that a resolution, motion or similar action has been duly adopted or passed as an official act of
the applicant's governing body authorizing the filing of the application, including all
understandings and assurances contained therein, and directing and authorizing the person
identified as the official representative of the applicant to act in connection with the
application and to provide such additional information as may be required.
b. Private Sponsor:
It has legal authority to apply for this Grant and to finance and carry out the proposed project
and comply with all terms, conditions, and assurances of this Grant Agreement. It shall
designate an official representative and shall in writing direct and authorize that person to file
this application, including all understandings and assurances contained therein; to act in
connection with this application; and to provide such additional information as may be
required.
3. Sponsor Fund Availability.
It has sufficient funds available for that portion of the project costs which are not to be paid by the
United States. It has sufficient funds available to assure operation and maintenance of items funded
under this Grant Agreement which it will own or control.
4. Good Title.
a. It, a public agency or the Federal government, holds good title, satisfactory to the Secretary, to
the landing area of the airport or site thereof, or will give assurance satisfactory to the
Secretary that good title will be acquired.
b. For noise compatibility program projects to be carried out on the property of the sponsor, it
holds good title satisfactory to the Secretary to that portion of the property upon which Federal
funds will be expended or will give assurance to the Secretary that good title will be obtained.
5. Preserving Rights and Powers.
a. It will not take or permit any action which would operate to deprive it of any of the rights and
powers necessary to perform any or all of the terms, conditions, and assurances in this Grant
Agreement without the written approval of the Secretary, and will act promptly to acquire,
extinguish or modify any outstanding rights or claims of right of others which would interfere
with such performance by the sponsor. This shall be done in a manner acceptable to the
Secretary.
b. Subject to the FAA Act of 2018, Public Law 115-254, Section 163, it will not sell, lease,
encumber, or otherwise transfer or dispose of any part of its title or other interests in the
property shown on Exhibit A to this application or, for a noise compatibility program project,
that portion of the property upon which Federal funds have been expended, for the duration of
the terms, conditions, and assurances in this Grant Agreement without approval by the
Secretary. If the transferee is found by the Secretary to be eligible under Title 49, United States
Code, to assume the obligations of this Grant Agreement and to have the power, authority, and
financial resources to carry out all such obligations, the sponsor shall insert in the contract or
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document transferring or disposing of the sponsor's interest, and make binding upon the
transferee all of the terms, conditions, and assurances contained in this Grant Agreement.
c. For all noise compatibility program projects which are to be carried out by another unit of local
government or are on property owned by a unit of local government other than the sponsor, it
will enter into an agreement with that government. Except as otherwise specified by the
Secretary, that agreement shall obligate that government to the same terms, conditions, and
assurances that would be applicable to it if it applied directly to the FAA for a grant to
undertake the noise compatibility program project. That agreement and changes thereto must
be satisfactory to the Secretary. It will take steps to enforce this agreement against the local
government if there is substantial non-compliance with the terms of the agreement.
d. For noise compatibility program projects to be carried out on privately owned property, it will
enter into an agreement with the owner of that property which includes provisions specified by
the Secretary. It will take steps to enforce this agreement against the property owner
whenever there is substantial non-compliance with the terms of the agreement.
e. If the sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that
the airport will continue to function as a public-use airport in accordance with these assurances
for the duration of these assurances.
f. If an arrangement is made for management and operation of the airport by any agency or
person other than the sponsor or an employee of the sponsor, the sponsor will reserve
sufficient rights and authority to ensure that the airport will be operated and maintained in
accordance with Title 49, United States Code, the regulations and the terms, conditions and
assurances in this Grant Agreement and shall ensure that such arrangement also requires
compliance therewith.
g. Sponsors of commercial service airports will not permit or enter into any arrangement that
results in permission for the owner or tenant of a property used as a residence, or zoned for
residential use, to taxi an aircraft between that property and any location on airport. Sponsors
of general aviation airports entering into any arrangement that results in permission for the
owner of residential real property adjacent to or near the airport must comply with the
requirements of Sec. 136 of Public Law 112-95 and the sponsor assurances.
6. Consistency with Local Plans.
The project is reasonably consistent with plans (existing at the time of submission of this
application) of public agencies that are authorized by the State in which the project is located to
plan for the development of the area surrounding the airport.
7. Consideration of Local Interest.
It has given fair consideration to the interest of communities in or near where the project may be
located.
8. Consultation with Users.
In making a decision to undertake any airport development project under Title 49, United States
Code, it has undertaken reasonable consultations with affected parties using the airport at which
project is proposed.
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9. Public Hearings.
In projects involving the location of an airport, an airport runway, or a major runway extension, it
has afforded the opportunity for public hearings for the purpose of considering the economic,
social, and environmental effects of the airport or runway location and its consistency with goals
and objectives of such planning as has been carried out by the community and it shall, when
requested by the Secretary, submit a copy of the transcript of such hearings to the Secretary.
Further, for such projects, it has on its management board either voting representation from the
communities where the project is located or has advised the communities that they have the right
to petition the Secretary concerning a proposed project.
10. Metropolitan Planning Organization.
In projects involving the location of an airport, an airport runway, or a major runway extension at a
medium or large hub airport, the sponsor has made available to and has provided upon request to
the metropolitan planning organization in the area in which the airport is located, if any, a copy of
the proposed amendment to the airport layout plan to depict the project and a copy of any airport
master plan in which the project is described or depicted.
11. Pavement Preventive Maintenance-Management.
With respect to a project approved after January 1, 1995, for the replacement or reconstruction of
pavement at the airport, it assures or certifies that it has implemented an effective airport
pavement maintenance-management program and it assures that it will use such program for the
useful life of any pavement constructed, reconstructed or repaired with Federal financial assistance
at the airport. It will provide such reports on pavement condition and pavement management
programs as the Secretary determines may be useful.
12. Terminal Development Prerequisites.
For projects which include terminal development at a public use airport, as defined in Title 49, it
has, on the date of submittal of the project grant application, all the safety equipment required for
certification of such airport under 49 U.S.C. § 44706, and all the security equipment required by rule
or regulation, and has provided for access to the passenger enplaning and deplaning area of such
airport to passengers enplaning and deplaning from aircraft other than air carrier aircraft.
13. Accounting System, Audit, and Record Keeping Requirements.
a. It shall keep all project accounts and records which fully disclose the amount and disposition by
the recipient of the proceeds of this Grant, the total cost of the project in connection with
which this Grant is given or used, and the amount or nature of that portion of the cost of the
project supplied by other sources, and such other financial records pertinent to the project. The
accounts and records shall be kept in accordance with an accounting system that will facilitate
an effective audit in accordance with the Single Audit Act of 1984.
b. It shall make available to the Secretary and the Comptroller General of the United States, or
any of their duly authorized representatives, for the purpose of audit and examination, any
books, documents, papers, and records of the recipient that are pertinent to this Grant. The
Secretary may require that an appropriate audit be conducted by a recipient. In any case in
which an independent audit is made of the accounts of a sponsor relating to the disposition of
the proceeds of a Grant or relating to the project in connection with which this Grant was given
or used, it shall file a certified copy of such audit with the Comptroller General of the United
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States not later than six (6) months following the close of the fiscal year for which the audit was
made.
14. Minimum Wage Rates.
It shall include, in all contracts in excess of $2,000 for work on any projects funded under this Grant
Agreement which involve labor, provisions establishing minimum rates of wages, to be
predetermined by the Secretary of Labor under 40 U.S.C. §§ 3141-3144, 3146, and 3147, Public
Building, Property, and Works), which contractors shall pay to skilled and unskilled labor, and such
minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for
the work.
15. Veteran's Preference.
It shall include in all contracts for work on any project funded under this Grant Agreement which
involve labor, such provisions as are necessary to insure that, in the employment of labor (except in
executive, administrative, and supervisory positions), preference shall be given to Vietnam era
veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small
business concerns owned and controlled by disabled veterans as defined in 49 U.S.C. § 47112.
However, this preference shall apply only where the individuals are available and qualified to
perform the work to which the employment relates.
16. Conformity to Plans and Specifications.
It will execute the project subject to plans, specifications, and schedules approved by the Secretary.
Such plans, specifications, and schedules shall be submitted to the Secretary prior to
commencement of site preparation, construction, or other performance under this Grant
Agreement, and, upon approval of the Secretary, shall be incorporated into this Grant Agreement.
Any modification to the approved plans, specifications, and schedules shall also be subject to
approval of the Secretary, and incorporated into this Grant Agreement.
17. Construction Inspection and Approval.
It will provide and maintain competent technical supervision at the construction site throughout the
project to assure that the work conforms to the plans, specifications, and schedules approved by
the Secretary for the project. It shall subject the construction work on any project contained in an
approved project application to inspection and approval by the Secretary and such work shall be in
accordance with regulations and procedures prescribed by the Secretary. Such regulations and
procedures shall require such cost and progress reporting by the sponsor or sponsors of such
project as the Secretary shall deem necessary.
18. Planning Projects.
In carrying out planning projects:
a. It will execute the project in accordance with the approved program narrative contained in the
project application or with the modifications similarly approved.
b. It will furnish the Secretary with such periodic reports as required pertaining to the planning
project and planning work activities.
c. It will include in all published material prepared in connection with the planning project a
notice that the material was prepared under a grant provided by the United States.
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d. It will make such material available for examination by the public, and agrees that no material
prepared with funds under this project shall be subject to copyright in the United States or any
other country.
e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise
use any of the material prepared in connection with this grant.
f. It will grant the Secretary the right to disapprove the sponsor's employment of specific
consultants and their subcontractors to do all or any part of this project as well as the right to
disapprove the proposed scope and cost of professional services.
g. It will grant the Secretary the right to disapprove the use of the sponsor's employees to do all
or any part of the project.
h. It understands and agrees that the Secretary's approval of this project grant or the Secretary's
approval of any planning material developed as part of this grant does not constitute or imply
any assurance or commitment on the part of the Secretary to approve any pending or future
application for a Federal airport grant.
19. Operation and Maintenance.
a. The airport and all facilities which are necessary to serve the aeronautical users of the airport,
other than facilities owned or controlled by the United States, shall be operated at all times in a
safe and serviceable condition and in accordance with the minimum standards as may be
required or prescribed by applicable Federal, State and local agencies for maintenance and
operation. It will not cause or permit any activity or action thereon which would interfere with
its use for airport purposes. It will suitably operate and maintain the airport and all facilities
thereon or connected therewith, with due regard to climatic and flood conditions. Any proposal
to temporarily close the airport for non-aeronautical purposes must first be approved by the
Secretary. In furtherance of this assurance, the sponsor will have in effect arrangements for:
1. Operating the airport's aeronautical facilities whenever required;
2. Promptly marking and lighting hazards resulting from airport conditions, including
temporary conditions; and
3. Promptly notifying pilots of any condition affecting aeronautical use of the airport. Nothing
contained herein shall be construed to require that the airport be operated for
aeronautical use during temporary periods when snow, flood, or other climatic conditions
interfere with such operation and maintenance. Further, nothing herein shall be construed
as requiring the maintenance, repair, restoration, or replacement of any structure or
facility which is substantially damaged or destroyed due to an act of God or other
condition or circumstance beyond the control of the sponsor.
b. It will suitably operate and maintain noise compatibility program items that it owns or controls
upon which Federal funds have been expended.
20. Hazard Removal and Mitigation.
It will take appropriate action to assure that such terminal airspace as is required to protect
instrument and visual operations to the airport (including established minimum flight altitudes) will
be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or
otherwise mitigating existing airport hazards and by preventing the establishment or creation of
future airport hazards.
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21. Compatible Land Use.
It will take appropriate action, to the extent reasonable, including the adoption of zoning laws, to
restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and
purposes compatible with normal airport operations, including landing and takeoff of aircraft. In
addition, if the project is for noise compatibility program implementation, it will not cause or permit
any change in land use, within its jurisdiction, that will reduce its compatibility, with respect to the
airport, of the noise compatibility program measures upon which Federal funds have been
expended.
22. Economic Nondiscrimination.
a. It will make the airport available as an airport for public use on reasonable terms and without
unjust discrimination to all types, kinds and classes of aeronautical activities, including
commercial aeronautical activities offering services to the public at the airport.
b. In any agreement, contract, lease, or other arrangement under which a right or privilege at the
airport is granted to any person, firm, or corporation to conduct or to engage in any
aeronautical activity for furnishing services to the public at the airport, the sponsor will insert
and enforce provisions requiring the contractor to:
1. Furnish said services on a reasonable, and not unjustly discriminatory, basis to all users
thereof, and
2. Charge reasonable, and not unjustly discriminatory, prices for each unit or service,
provided that the contractor may be allowed to make reasonable and nondiscriminatory
discounts, rebates, or other similar types of price reductions to volume purchasers.
c. Each fixed-based operator at the airport shall be subject to the same rates, fees, rentals, and
other charges as are uniformly applicable to all other fixed-based operators making the same or
similar uses of such airport and utilizing the same or similar facilities.
d. Each air carrier using such airport shall have the right to service itself or to use any fixed-based
operator that is authorized or permitted by the airport to serve any air carrier at such airport.
e. Each air carrier using such airport (whether as a tenant, non-tenant, or subtenant of another air
carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules,
regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly
and substantially related to providing air transportation as are applicable to all such air carriers
which make similar use of such airport and utilize similar facilities, subject to reasonable
classifications such as tenants or non-tenants and signatory carriers and non-signatory carriers.
Classification or status as tenant or signatory shall not be unreasonably withheld by any airport
provided an air carrier assumes obligations substantially similar to those already imposed on air
carriers in such classification or status.
f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or
corporation operating aircraft on the airport from performing any services on its own aircraft
with its own employees (including, but not limited to maintenance, repair, and fueling) that it
may choose to perform.
g. In the event the sponsor itself exercises any of the rights and privileges referred to in this
assurance, the services involved will be provided on the same conditions as would apply to the
furnishing of such services by commercial aeronautical service providers authorized by the
sponsor under these provisions.
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h. The sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be
met by all users of the airport as may be necessary for the safe and efficient operation of the
airport.
i. The sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport
if such action is necessary for the safe operation of the airport or necessary to serve the civil
aviation needs of the public.
23. Exclusive Rights.
It will permit no exclusive right for the use of the airport by any person providing, or intending to
provide, aeronautical services to the public. For purposes of this paragraph, the providing of the
services at an airport by a single fixed-based operator shall not be construed as an exclusive right if
both of the following apply:
a. It would be unreasonably costly, burdensome, or impractical for more than one fixed-based
operator to provide such services, and
b. If allowing more than one fixed-based operator to provide such services would require the
reduction of space leased pursuant to an existing agreement between such single fixed-based
operator and such airport. It further agrees that it will not, either directly or indirectly, grant or
permit any person, firm, or corporation, the exclusive right at the airport to conduct any
aeronautical activities, including, but not limited to charter flights, pilot training, aircraft rental
and sightseeing, aerial photography, crop dusting, aerial advertising and surveying, air carrier
operations, aircraft sales and services, sale of aviation petroleum products whether or not
conducted in conjunction with other aeronautical activity, repair and maintenance of aircraft,
sale of aircraft parts, and any other activities which because of their direct relationship to the
operation of aircraft can be regarded as an aeronautical activity, and that it will terminate any
exclusive right to conduct an aeronautical activity now existing at such an airport before the
grant of any assistance under Title 49, United States Code.
24. Fee and Rental Structure.
It will maintain a fee and rental structure for the facilities and services at the airport which will
make the airport as self-sustaining as possible under the circumstances existing at the particular
airport, taking into account such factors as the volume of traffic and economy of collection. No part
of the Federal share of an airport development, airport planning or noise compatibility project for
which a Grant is made under Title 49, United States Code, the Airport and Airway Improvement Act
of 1982, the Federal Airport Act or the Airport and Airway Development Act of 1970 shall be
included in the rate basis in establishing fees, rates, and charges for users of that airport.
25. Airport Revenues.
a. All revenues generated by the airport and any local taxes on aviation fuel established after
December 30, 1987, will be expended by it for the capital or operating costs of the airport; the
local airport system; or other local facilities which are owned or operated by the owner or
operator of the airport and which are directly and substantially related to the actual air
transportation of passengers or property; or for noise mitigation purposes on or off the airport.
The following exceptions apply to this paragraph:
1. If covenants or assurances in debt obligations issued before September 3, 1982, by the
owner or operator of the airport, or provisions enacted before September 3, 1982, in
governing statutes controlling the owner or operator's financing, provide for the use of the
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revenues from any of the airport owner or operator's facilities, including the airport, to
support not only the airport but also the airport owner or operator's general debt
obligations or other facilities, then this limitation on the use of all revenues generated by
the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply.
2. If the Secretary approves the sale of a privately owned airport to a public sponsor and
provides funding for any portion of the public sponsor’s acquisition of land, this limitation
on the use of all revenues generated by the sale shall not apply to certain proceeds from
the sale. This is conditioned on repayment to the Secretary by the private owner of an
amount equal to the remaining unamortized portion (amortized over a 20-year period) of
any airport improvement grant made to the private owner for any purpose other than land
acquisition on or after October 1, 1996, plus an amount equal to the federal share of the
current fair market value of any land acquired with an airport improvement grant made to
that airport on or after October 1, 1996.
3. Certain revenue derived from or generated by mineral extraction, production, lease, or
other means at a general aviation airport (as defined at 49 U.S.C. § 47102), if the FAA
determines the airport sponsor meets the requirements set forth in Section 813 of Public
Law 112-95
b. As part of the annual audit required under the Single Audit Act of 1984, the sponsor will direct
that the audit will review, and the resulting audit report will provide an opinion concerning, the
use of airport revenue and taxes in paragraph (a), and indicating whether funds paid or
transferred to the owner or operator are paid or transferred in a manner consistent with Title
49, United States Code and any other applicable provision of law, including any regulation
promulgated by the Secretary or Administrator.
c. Any civil penalties or other sanctions will be imposed for violation of this assurance in
accordance with the provisions of 49 U.S.C. § 47107.
26. Reports and Inspections.
It will:
a. submit to the Secretary such annual or special financial and operations reports as the Secretary
may reasonably request and make such reports available to the public; make available to the
public at reasonable times and places a report of the airport budget in a format prescribed by
the Secretary;
b. for airport development projects, make the airport and all airport records and documents
affecting the airport, including deeds, leases, operation and use agreements, regulations and
other instruments, available for inspection by any duly authorized agent of the Secretary upon
reasonable request;
c. for noise compatibility program projects, make records and documents relating to the project
and continued compliance with the terms, conditions, and assurances of this Grant Agreement
including deeds, leases, agreements, regulations, and other instruments, available for
inspection by any duly authorized agent of the Secretary upon reasonable request; and
d. in a format and time prescribed by the Secretary, provide to the Secretary and make available
to the public following each of its fiscal years, an annual report listing in detail:
1. all amounts paid by the airport to any other unit of government and the purposes for
which each such payment was made; and
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2. all services and property provided by the airport to other units of government and the
amount of compensation received for provision of each such service and property.
27. Use by Government Aircraft.
It will make available all of the facilities of the airport developed with Federal financial assistance
and all those usable for landing and takeoff of aircraft to the United States for use by Government
aircraft in common with other aircraft at all times without charge, except, if the use by Government
aircraft is substantial, charge may be made for a reasonable share, proportional to such use, for the
cost of operating and maintaining the facilities used. Unless otherwise determined by the Secretary,
or otherwise agreed to by the sponsor and the using agency, substantial use of an airport by
Government aircraft will be considered to exist when operations of such aircraft are in excess of
those which, in the opinion of the Secretary, would unduly interfere with use of the landing areas
by other authorized aircraft, or during any calendar month that:
a. Five (5) or more Government aircraft are regularly based at the airport or on land adjacent
thereto; or
b. The total number of movements (counting each landing as a movement) of Government
aircraft is 300 or more, or the gross accumulative weight of Government aircraft using the
airport (the total movement of Government aircraft multiplied by gross weights of such
aircraft) is in excess of five million pounds.
28. Land for Federal Facilities.
It will furnish without cost to the Federal Government for use in connection with any air traffic
control or air navigation activities, or weather-reporting and communication activities related to air
traffic control, any areas of land or water, or estate therein as the Secretary considers necessary or
desirable for construction, operation, and maintenance at Federal expense of space or facilities for
such purposes. Such areas or any portion thereof will be made available as provided herein within
four months after receipt of a written request from the Secretary.
29. Airport Layout Plan.
a. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, it will keep up
to date at all times an airport layout plan of the airport showing:
1. boundaries of the airport and all proposed additions thereto, together with the boundaries
of all offsite areas owned or controlled by the sponsor for airport purposes and proposed
additions thereto;
2. the location and nature of all existing and proposed airport facilities and structures (such
as runways, taxiways, aprons, terminal buildings, hangars and roads), including all
proposed extensions and reductions of existing airport facilities;
3. the location of all existing and proposed non-aviation areas and of all existing
improvements thereon; and
4. all proposed and existing access points used to taxi aircraft across the airport’s property
boundary.
Such airport layout plans and each amendment, revision, or modification thereof, shall be
subject to the approval of the Secretary which approval shall be evidenced by the signature of a
duly authorized representative of the Secretary on the face of the airport layout plan. The
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sponsor will not make or permit any changes or alterations in the airport or any of its facilities
which are not in conformity with the airport layout plan as approved by the Secretary and
which might, in the opinion of the Secretary, adversely affect the safety, utility or efficiency of
the airport.
b. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, if a change or
alteration in the airport or the facilities is made which the Secretary determines adversely
affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or
off the airport and which is not in conformity with the airport layout plan as approved by the
Secretary, the owner or operator will, if requested, by the Secretary:
1. eliminate such adverse effect in a manner approved by the Secretary; or
2. bear all costs of relocating such property (or replacement thereof) to a site acceptable to
the Secretary and all costs of restoring such property (or replacement thereof) to the level
of safety, utility, efficiency, and cost of operation existing before the unapproved change in
the airport or its facilities except in the case of a relocation or replacement of an existing
airport facility due to a change in the Secretary’s design standards beyond the control of
the airport sponsor.
30. Civil Rights.
It will promptly take any measures necessary to ensure that no person in the United States shall, on
the grounds of race, color, and national origin (including limited English proficiency) in accordance
with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to
2000d-4); creed and sex (including sexual orientation and gender identity) per 49 U.S.C. § 47123
and related requirements; age per the Age Discrimination Act of 1975 and related requirements; or
disability per the Americans with Disabilities Act of 1990 and related requirements, be excluded
from participation in, be denied the benefits of, or be otherwise subjected to discrimination in any
program and activity conducted with, or benefiting from, funds received from this Grant.
a. Using the definitions of activity, facility, and program as found and defined in 49 CFR §§
21.23(b) and 21.23(e), the sponsor will facilitate all programs, operate all facilities, or conduct
all programs in compliance with all non-discrimination requirements imposed by or pursuant to
these assurances.
b. Applicability
1. Programs and Activities. If the sponsor has received a grant (or other federal assistance)
for any of the sponsor’s program or activities, these requirements extend to all of the
sponsor’s programs and activities.
2. Facilities. Where it receives a grant or other federal financial assistance to construct,
expand, renovate, remodel, alter, or acquire a facility, or part of a facility, the assurance
extends to the entire facility and facilities operated in connection therewith.
3. Real Property. Where the sponsor receives a grant or other Federal financial assistance in
the form of, or for the acquisition of real property or an interest in real property, the
assurance will extend to rights to space on, over, or under such property.
c. Duration.
The sponsor agrees that it is obligated to this assurance for the period during which Federal
financial assistance is extended to the program, except where the Federal financial assistance is
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to provide, or is in the form of, personal property, or real property, or interest therein, or
structures or improvements thereon, in which case the assurance obligates the sponsor, or any
transferee for the longer of the following periods:
1. So long as the airport is used as an airport, or for another purpose involving the provision
of similar services or benefits; or
2. So long as the sponsor retains ownership or possession of the property.
d. Required Solicitation Language. It will include the following notification in all solicitations for
bids, Requests For Proposals for work, or material under this Grant Agreement and in all
proposals for agreements, including airport concessions, regardless of funding source:
“The (City of Palm Springs), in accordance with the provisions of Title VI of the Civil Rights Act
of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all
bidders or offerors that it will affirmatively ensure that for any contract entered into pursuant
to this advertisement, [select businesses, or disadvantaged business enterprises or airport
concession disadvantaged business enterprises] will be afforded full and fair opportunity to
submit bids in response to this invitation and no businesses will be discriminated against on the
grounds of race, color, national origin (including limited English proficiency), creed, sex
(including sexual orientation and gender identity), age, or disability in consideration for an
award.”
e. Required Contract Provisions.
1. It will insert the non-discrimination contract clauses requiring compliance with the acts and
regulations relative to non-discrimination in Federally-assisted programs of the
Department of Transportation (DOT), and incorporating the acts and regulations into the
contracts by reference in every contract or agreement subject to the non-discrimination in
Federally-assisted programs of the DOT acts and regulations.
2. It will include a list of the pertinent non-discrimination authorities in every contract that is
subject to the non-discrimination acts and regulations.
3. It will insert non-discrimination contract clauses as a covenant running with the land, in
any deed from the United States effecting or recording a transfer of real property,
structures, use, or improvements thereon or interest therein to a sponsor.
4. It will insert non-discrimination contract clauses prohibiting discrimination on the basis of
race, color, national origin (including limited English proficiency), creed, sex (including
sexual orientation and gender identity), age, or disability as a covenant running with the
land, in any future deeds, leases, license, permits, or similar instruments entered into by
the sponsor with other parties:
a. For the subsequent transfer of real property acquired or improved under the
applicable activity, project, or program; and
b. For the construction or use of, or access to, space on, over, or under real property
acquired or improved under the applicable activity, project, or program.
f. It will provide for such methods of administration for the program as are found by the
Secretary to give reasonable guarantee that it, other recipients, sub-recipients, sub-grantees,
contractors, subcontractors, consultants, transferees, successors in interest, and other
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participants of Federal financial assistance under such program will comply with all
requirements imposed or pursuant to the acts, the regulations, and this assurance.
g. It agrees that the United States has a right to seek judicial enforcement with regard to any
matter arising under the acts, the regulations, and this assurance.
31. Disposal of Land.
a. For land purchased under a grant for airport noise compatibility purposes, including land
serving as a noise buffer, it will dispose of the land, when the land is no longer needed for such
purposes, at fair market value, at the earliest practicable time. That portion of the proceeds of
such disposition which is proportionate to the United States' share of acquisition of such land
will be, at the discretion of the Secretary, (1) reinvested in another project at the airport, or (2)
transferred to another eligible airport as prescribed by the Secretary. The Secretary shall give
preference to the following, in descending order:
1. Reinvestment in an approved noise compatibility project;
2. Reinvestment in an approved project that is eligible for grant funding under 49 U.S.C. §
47117(e);
3. Reinvestment in an approved airport development project that is eligible for grant funding
under 49 U.S.C. §§ 47114, 47115, or 47117
4. Transfer to an eligible sponsor of another public airport to be reinvested in an approved
noise compatibility project at that airport; or
5. Payment to the Secretary for deposit in the Airport and Airway Trust Fund.
If land acquired under a grant for noise compatibility purposes is leased at fair market value
and consistent with noise buffering purposes, the lease will not be considered a disposal of the
land. Revenues derived from such a lease may be used for an approved airport development
project that would otherwise be eligible for grant funding or any permitted use of airport
revenue.
b. For land purchased under a grant for airport development purposes (other than noise
compatibility), it will, when the land is no longer needed for airport purposes, dispose of such
land at fair market value or make available to the Secretary an amount equal to the United
States' proportionate share of the fair market value of the land. That portion of the proceeds of
such disposition which is proportionate to the United States' share of the cost of acquisition of
such land will, upon application to the Secretary, be reinvested or transferred to another
eligible airport as prescribed by the Secretary. The Secretary shall give preference to the
following, in descending order:
1. Reinvestment in an approved noise compatibility project;
2. Reinvestment in an approved project that is eligible for grant funding under 49 U.S.C. §
47117(e);
3. Reinvestment in an approved airport development project that is eligible for grant funding
under 49 U.S.C. §§ 47114, 47115, or 47117
4. Transfer to an eligible sponsor of another public airport to be reinvested in an approved
noise compatibility project at that airport; or
5. Payment to the Secretary for deposit in the Airport and Airway Trust Fund.
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3-06-0181-067-2023
Airport Sponsor Assurances 5/2022 Page 17 of 18
c. Land shall be considered to be needed for airport purposes under this assurance if (1) it may be
needed for aeronautical purposes (including runway protection zones) or serve as noise buffer
land, and (2) the revenue from interim uses of such land contributes to the financial self-
sufficiency of the airport. Further, land purchased with a grant received by an airport operator
or owner before December 31, 1987, will be considered to be needed for airport purposes if
the Secretary or Federal agency making such grant before December 31, 1987, was notified by
the operator or owner of the uses of such land, did not object to such use, and the land
continues to be used for that purpose, such use having commenced no later than December 15,
1989.
d. Disposition of such land under (a), (b), or (c) will be subject to the retention or reservation of
any interest or right therein necessary to ensure that such land will only be used for purposes
which are compatible with noise levels associated with operation of the airport.
32. Engineering and Design Services.
If any phase of such project has received Federal funds under Chapter 471 subchapter 1 of Title 49
U.S.C., it will award each contract, or sub-contract for program management, construction
management, planning studies, feasibility studies, architectural services, preliminary engineering,
design, engineering, surveying, mapping or related services in the same manner as a contract for
architectural and engineering services is negotiated under Chapter 11 of Title 40 U.S.C., or an
equivalent qualifications-based requirement prescribed for or by the sponsor of the airport.
33. Foreign Market Restrictions.
It will not allow funds provided under this Grant to be used to fund any project which uses any
product or service of a foreign country during the period in which such foreign country is listed by
the United States Trade Representative as denying fair and equitable market opportunities for
products and suppliers of the United States in procurement and construction.
34. Policies, Standards, and Specifications.
It will carry out any project funded under an Airport Improvement Program Grant in accordance
with policies, standards, and specifications approved by the Secretary including, but not limited to,
current FAA Advisory Circulars (https://www.faa.gov/airports/aip/media/aip-pfc-checklist.pdf) for
AIP projects as of February 23, 2023.
35. Relocation and Real Property Acquisition.
a. It will be guided in acquiring real property, to the greatest extent practicable under State law,
by the land acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse
property owners for necessary expenses as specified in Subpart B.
b. It will provide a relocation assistance program offering the services described in Subpart C of 49
CFR Part 24 and fair and reasonable relocation payments and assistance to displaced persons as
required in Subpart D and E of 49 CFR Part 24.
c. It will make available within a reasonable period of time prior to displacement, comparable
replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24.
36. Access By Intercity Buses.
The airport owner or operator will permit, to the maximum extent practicable, intercity buses or
other modes of transportation to have access to the airport; however, it has no obligation to fund
special facilities for intercity buses or for other modes of transportation.
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3-06-0181-067-2023
Airport Sponsor Assurances 5/2022 Page 18 of 18
37. Disadvantaged Business Enterprises.
The sponsor shall not discriminate on the basis of race, color, national origin, or sex, in the award
and performance of any DOT-assisted contract covered by 49 CFR Part 26, or in the award and
performance of any concession activity contract covered by 49 CFR Part 23. In addition, the sponsor
shall not discriminate on the basis of race, color, national origin or sex in the administration of its
Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Business
Enterprise (ACDBE) programs or the requirements of 49 CFR Parts 23 and 26. The sponsor shall take
all necessary and reasonable steps under 49 CFR Parts 23 and 26 to ensure nondiscrimination in the
award and administration of DOT-assisted contracts, and/or concession contracts. The sponsor’s
DBE and ACDBE programs, as required by 49 CFR Parts 26 and 23, and as approved by DOT, are
incorporated by reference in this agreement. Implementation of these programs is a legal obligation
and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification
to the sponsor of its failure to carry out its approved program, the Department may impose
sanctions as provided for under Parts 26 and 23 and may, in appropriate cases, refer the matter for
enforcement under 18 U.S.C. § 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31
U.S.C. §§ 3801-3809, 3812).
38. Hangar Construction.
If the airport owner or operator and a person who owns an aircraft agree that a hangar is to be
constructed at the airport for the aircraft at the aircraft owner’s expense, the airport owner or
operator will grant to the aircraft owner for the hangar a long term lease that is subject to such
terms and conditions on the hangar as the airport owner or operator may impose.
39. Competitive Access.
a. If the airport owner or operator of a medium or large hub airport (as defined in 49 U.S.C. §
47102) has been unable to accommodate one or more requests by an air carrier for access to
gates or other facilities at that airport in order to allow the air carrier to provide service to the
airport or to expand service at the airport, the airport owner or operator shall transmit a report
to the Secretary that:
1. Describes the requests;
2. Provides an explanation as to why the requests could not be accommodated; and
3. Provides a time frame within which, if any, the airport will be able to accommodate the
requests.
b. Such report shall be due on either February 1 or August 1 of each year if the airport has been
unable to accommodate the request(s) in the six month period prior to the applicable due date.
Item 1C - Page 39
ATTACHMENT B
FAA FAQ REGARDING BIL-ATP FUNDING
Item 1C - Page 40
March 17, 2023
1
Federal Aviation
Administration
Bipartisan Infrastructure Law
Frequently Asked Questions
This document answers frequently asked questions (FAQs) stakeholders may have related to the
grant funds available for airports under the Public Law 117-58-Infrastructure Investment and
Jobs Act referred to as the Bipartisan Infrastructure Law (BIL).
The BIL includes approximately $25 billion for the National Airspace S ystem.
Approximately $5 bi llion is for improvements to FAA owned facilities and equipment. FAA’s
Air Traffic Organization (ATO) will administer these funds.
These FAQs pertain to the approximately $20 billion for airport infrastructure improvements
that will be administered by FAA’s Office of Airports. The Federal Aviation Administration
(FAA) has additional information for airport sponsors at www.faa.gov/bil.
The guidance here is not legally binding in its own right and FAA will not rely on it as a
separate basis for affirmative enforcement action or other administrative penalty. Conformity
with this guidance, as distinct from existing statutes, regulations, and grant assurances, is
voluntary only, and nonconformity will not affect existing rights and obligations.
For questions related to BIL, please email: 9-ARP-BILAirports@faa.gov.
This March 17, 2023 update includes a revision to question U-16 clarifying that AIG allocation
transfers can only be made within the same sponsor and same role.
These FAQs will be updated periodically as new questions arise.
Subjects Addressed
General Questions .............................................................................................................................. 2
Questions on Allocation of Funds...................................................................................................... 5
Questions on Use of Grant Funding................................................................................................... 9
Questions on Grant Applications, Payments, and Closeouts ........................................................... 20
Questions related to the State Block Grant Program ....................................................................... 20
Item 1C - Page 41
March 17, 2023
2
General Questions
Q-1: How does the Bipartisan Infrastructure Law (BIL) benefit airports?
A: Title VIII of Division J of the Infrastructure Investment and Jobs Act (Public Law
117-58) of 2021 (BIL) provides $25 Billion for the National Aerospace System
(NAS). Five billion dollars of the BIL funds will be administered by FAA’s Air
Traffic Organization (ATO) will fund much needed FAA facilities upgrades. FAA’s
Office of Airports (ARP) will administer the remaining approximately $20 billion in
grant funds for airport infrastructure, terminal development, including multimodal
terminal development and on-airport rail access projects, and airport owned towers.
Q-2: Where is this funding coming from?
A: The $25 billion comes directly from the U.S. Treasury’s General Fund.
Q-3: Are the BIL funds split into different funding buckets?
A: Yes. Five billion dollars is being administered by ATO for improvements to FAA-
owned facilities. ARP will administer approximately $20 billion of BIL funds to
airport sponsors. The $20 billion is allocated over 5 years ($4 billion annually). Of
the $20 billion, FAA will receive up to $118 million annually for administration of
BIL funds and the Office of Inspector General (OIG) receives $2 million annually for
oversight of BIL funds.
(1) Airport Infrastructure Grants (AIG) include formula allocations (AIG
Allocated) and competitive (FAA Contract Tower Competitive) funds of up
to $14.55 billion.
a) Primary Airports share not more than $2.39 billion annually based
enplanement and cargo volume.
b) Non-Primary Airports share not more than $500 million annually,
based on airport classification in the National Plan of Integrated
Airport System (NPIAS) and the aggregated NPIAS eligible
development cost for each classification.
c) AIG provides $20 million annually in competitive grants (FAA
Contract Tower Competitive) for sponsor owned contract towers
participating in the Federal contract tower program and the contract
tower cost share program (FCT). These funds are available to:
construct, repair, improve, rehabilitate, modernize, replace, or
relocate an airport control tower; acquire and install air traffic
control, communications, and related equipment in an airport control
tower; and construct a remote tower certified by the FAA including
acquisition and installation of air traffic control, communications, or
related equipment. (To date there is no FAA-certified remote
tower technology.)
(2) Approximately $4.85 billion ($970 million annually) for competitive Airport
Terminal Program (ATP) grants including multi-modal terminal
development and on-airport rail access projects. These funds can also be
Item 1C - Page 42
March 17, 2023
3
used for projects for relocating, reconstructing, repairing, or improving an
airport-owned air traffic control tower (ATCT), whether staffed by FAA or
in the FCT program.
Q-4: Who is eligible to receive AIG and ATP funding under BIL?
A: AIG Formula Infrastructure Allocations (AIG Allocated): Funds are available to
sponsors of airports as defined in 47102 of title 49, United States Code (U.S.C.); that
is, airport sponsors meeting statutory and policy requirements under this section and
identified in the FAA’s published National Plan of Integrated Airport Systems
(NPIAS), updated with current year data, and are eligible to receive discretionary
funds per 49 U.S.C. 47115.
FAA Contract Tower Competitive Infrastructure Funds (FCT Competitive):
Funds are available to sponsors of airports eligible to receive discretionary funds per
49 U.S.C. 47115 and participating in the FCT program under 49 U.S.C. 47124.
ATP: Funds are available to sponsors of airports eligible to receive discretionary
funds per 49 U.S.C. 47115.
Q-5: Are any airports not eligible to receive funding under BIL?
A: All airports in the NPIAS, except unclassified airports, are eligible. Unclassified
airports are not eligible for discretionary funding under BIL.
Q-6: Are airport sponsors in the Republic of the Marshall Islands, Federated States of
Micronesia, Republic of Palau, and Midway Island eligible for BIL Grants?
A: AIG Allocated: Yes, but they do not receive an allocation. Only sponsors of airports
in categories defined in 49 U.S.C. 47102 receive allocations. Airports must be
included in the NPIAS to receive an allocation of AIG funds. Airports in the
Republic of the Marshall Islands, Federated States of Micronesia, Republic of Palau,
and Midway Island are not included in the NPIAS. While these airport sponsors may
be eligible for some AIP discretionary funding under 49 U.S.C. 47115, they are not
eligible for AIG Allocated funds under BIL.
FCT Competitive: Yes. Funds are available to sponsors of airports eligible to
receive discretionary funds per 49 U.S.C. 47115 and participating in the FCT
program under 49 U.S.C. 47124. Airports in the Republic of the Marshall Islands,
Federated States of Micronesia, Republic of Palau, and Midway Island are eligible
for discretionary funds. These sponsors could compete for FCT Competitive funding
if they are accepted into the FCT program.
ATP: Yes. Funds are available to sponsors of airports eligible to receive
discretionary funds per 49 U.S.C. 47115. Airports in the Republic of the Marshall
Islands, Federated States of Micronesia, Republic of Palau, and Midway Island are
eligible for discretionary funds.
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March 17, 2023
4
Q-7: Are airports in U.S. territories eligible for BIL Grants?
A: Yes. Funds are available to sponsors of airports in categories defined in 49 U.S.C.
47102 and identified in the FAA’s published NPIAS, updated with current year data,
and are eligible to receive discretionary funds per 49 U.S.C. 47115. Airports in U.S.
territories (American Samoa, Northern Mariana Islands, Puerto Rico, the U.S. Virgin
Islands, and Guam) meet these requirements. They receive AIG Allocation funds
based on their information in the NPIAS, can compete for FCT Competitive funds if
in the FTC program, and can compete for ATP funds.
Q-8: Why do airports with a NPIAS category of Unclassified not receive AIG
Allocated funds under BIL?
A: Unclassified airports are not eligible for discretionary funds under BIL (see Q-5).
Also, consistent with their role in the national airport system, unclassified airports
have no development needs identified in the published NPIAS, updated with current
year data.
Q-9: What is the period of availability for FAA to obligate AIG funds?
A: Approximately $2.91 billion (approximately $2.89 billion of AIG Allocated funds
and $20 million FCT Competitive funds) is available annually starting fiscal year
(FY) 2022 through FY 2026. Funds not obligated at the end of the fourth FY will be
recovered and made available for competitive grants in the fifth year. See Q-F3.
FY funds are first made
available:
Funds must be obligated
(under grant) by:
Any unobligated funds must
be obligated (under grant) as
competitive grants in:
2022 September 30, 2025 FY 2026
2023 September 30, 2026 FY 2027
2024 September 30, 2027 FY 2028
2025 September 30, 2028 FY 2029
2026 September 30, 2029 FY 2030
Q-10: What is the period of availability for FAA to obligate ATP funds?
A: Approximately $970 million of ATP funds are available annually starting FY 2022
through FY 2026. Funds not obligated at the end of the fifth FY will expire.
See Q-F4.
FY funds are first made
available:
Funds must be obligated
(under grant) by:
Funds recovered after the
following FYs expire:
2022 September 30, 2026 FY 2026
2023 September 30, 2027 FY 2027
2024 September 30, 2028 FY 2028
2025 September 30, 2029 FY 2029
2026 September 30, 2030 FY 2030
Item 1C - Page 44
March 17, 2023
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Questions on Allocation of Funds
Q-F1: How will BIL AIG funds be allocated/awarded to airport sponsors?
A: BIL allocates the $14.55 billion into two programs over 5 years; AIG Allocated and
FCT Competitive. AIG Allocated funds are specific, annual allocations to each
eligible airport. These amounts are allocated separately for primary and non-primary
airports. FCT Competitive funds are awarded annually through a competitive Notice
of Funding Opportunity (NOFO) process specifically for FCT improvements.
(1) AIG Allocated.
a) Primary Commercial Service Airports and eligible Cargo Airports
share not more than $2.39 billion annually based first on the
statutory Airport Improvement Program (AIP) primary and cargo
entitlement formulas. The FY 2022 allocation for primary airports
is based on best of calendar year (CY) 2018, CY 2019, or CY 2020
enplanements. The FY 2023 allocation for primary airports will be
based on best of CY 2018, CY 2019, or CY 2021 enplanements.
Starting in FY 2024, the amount formulated for each airport is based
upon the most recent CY enplanements. Cargo allocations are
required by the legislation to be based on the most recent CY per 49
U.S.C. 47114(c)(2). FY 2022 cargo allocations were based on CY
2020.
After allocating based on the statutory AIP entitlement formulas, the
remainder is then allocated based on the number of enplanements
the airport had in CY 2019 as a percentage of total 2019
enplanements for all primary airports for FY 2022 and FY 2023.
Starting FY 2024, the amount formulated for each airport is based
upon the most recent CY enplanements.
b) Non-Primary Airports share not more than $500 million annually.
The apportioned funds for each non-primary airport are based on the
categories published in the NPIAS, updated with current year data,
reflecting the percentage of the aggregate published eligible
development costs for each such category, and then dividing the
allocated funds evenly among the eligible airports in each category,
rounding up to the nearest thousand dollars. For example, all
airports classified as Local receive the same allocation.
(2) FCT Competitive.
a) Sponsors of airports participating in the FCT program under 49
U.S.C. 47124, are eligible to share not more than $20 million
annually. Instructions for applying for these funds will be outlined
in a NOFO, which will be issued annually until the program expires.
Projects will be selected by FAA based on sponsor’s information
submitted in response to the criteria as outlined in the NOFO.
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March 17, 2023
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Q-F2: How will BIL ATP funds be awarded to airport sponsors?
A: Sponsors of primary and non-primary airports eligible for discretionary funding
under 49 U.S.C. 47115(a) are eligible to share approximately $970 million annually.
Not more than 55% of these funds go to large hub airports, not more than 15% go to
medium hub airports, not more than 20% go to small hub airports, and not less than
10% go to non-hub and non-primary airports. Instructions for applying for these
funds will be outlined in a NOFO, which will be issued annually until the program
expires. Projects will be selected by FAA based on sponsor’s information submitted
in response to the criteria as outlined in the NOFO.
Q-F3: What happens to unobligated BIL AIG funds?
A: Funds not obligated at the end of the fourth fiscal year will be recovered and made
available for competitive grants in the fifth year. Up to $100 million of these
recovered funds will first be provided for competitive grants for FCTs. Any
remaining funds will be available for competitive grants for eligible work that
reduces airport emissions, reduces noise impact to the surrounding community,
reduces dependence on the electrical grid, or provides general benefits to the
surrounding community. Instructions for applying for these recovered funds will be
outlined in a NOFO, which will be issued annually so the recovered funds are
assigned to the competitive projects beginning in FY 2026 (October 1, 2025) through
FY 2030 (September 30, 2030). Projects will be selected by FAA, based on
sponsor’s information submitted as outlined in the NOFO. Funds recovered after the
fifth year will return to the General Fund.
Q-F4: What happens to unobligated BIL ATP funds?
A: Funds not obligated at the end of the fifth fiscal year will expire. ATP funds
recovered prior to the end of the fifth fiscal year can be used to amend open ATP
grants or made available for new ATP grants based on a competitive process. At the
end of the fifth fiscal year, any unobligated or recovered funds will return to the
General Fund.
Q-F5: What is the Federal share under BIL?
A: AIG Allocated: The Federal share is the same as for AIP grants, ranging from 50%
to 95%, as outlined in 49 U.S.C. 47109. (For further explanation of the statutory
provision see Section 4-9 of FAA Order 5100.38D, Change 1 (AIP Handbook)). This
includes grants made using unobligated AIG funds for projects not related to FCTs.
See Q-F3.
FCT Competitive: The Federal share for FCT improvements is 100%. This
includes grants made using unobligated AIG funds for FCT projects. See Q-F3.
ATP: The Federal share for terminal and sponsor owned ATCT improvements is
80% for large and medium hub airports and 95% for small hub, non-hub, and non-
primary airports.
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March 17, 2023
7
Q-F6: Do airport sponsors have to contribute a local match for AIG and ATP grants
under the BIL?
A: AIG Allocated: Yes. The sponsor’s match is the same as for sponsor’s AIP grants,
ranging from 5% to 50%. This includes grants made using unobligated AIG funds
for projects not related to FCT. See Q-F3.
FCT Competitive: No. The Federal share for FCT improvements is 100%. This
includes grants made using unobligated AIG funds for FCT projects. See Q-F3.
ATP: Yes. The sponsor’s match is 20% for large and medium hub airports and 5%
for small hub, non-hub, and non-primary airports.
Q-F7: Is the BIL funding tied to the annual appropriation process?
A: No. BIL does not require an annual appropriation. The funding is appropriated and
will be available at the beginning of each FY.
Q-F8: How is the NPIAS airport categorization used to determine BIL AIG
Allocated funds for non-primary airport sponsors?
A: Under BIL, not more than $500 million is allocated annually to non-primary airports
based on the categories published in the NPIAS, updated with current year data.
FAA Order 5090.5, Formulation of the NPIAS and ACIP, defines the criteria for
each category or role.
Q-F9: Will FY 2023-FY 2026 AIG Allocated funds for primary and cargo eligible
airports vary from FY 2022 allocations?
A: Yes. The AIG allocations will be determined each year based on the enplanement
and cargo landed weight. The FY 2023 allocation for primary airports will be based
on best of CY 2018, CY 2019, or CY 2021 enplanements, and CY 2021 cargo landed
weight. After FY 2023, enplanement and cargo allocations will be based on the most
recent CY data. We expect there will be changes each year in the allocation. The
extent of the changes will be impacted on changes in enplanements, cargo data, or if
the airport changes between the primary and non-primary categories after FY 2023.
Q-F10: How are airports that change from primary to non-primary status handled in
AIG allocation formulas?
A: FY 2022 and FY 2023 primary airport allocations are based on highest enplanements
for CY 2018, CY 2019 and next full CY (CY 2020 or CY 2021 respectively). An
airport that was classified as a primary airport in any of those years is considered a
primary airport for FY 2022 and FY 2023. The most recent CY enplanements are
used to determine an airport’s classification for FY 2024-FY 2026 allocations. An
airport classified as non-primary after FY 2023 will receive a non-primary allocation.
Q-F11: Will FY 2023-FY 2026 AIG Allocated funds for non-primary airports vary from
FY 2022 allocations?
A: Airports changing from primary to non-primary, or visa-versa, or changes to the
number of unclassified airports could impact the overall non-primary allocations.
Airports changing classification (National, Regional, Local, Basic) in updated
Item 1C - Page 47
March 17, 2023
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versions of the NPIAS could also impact the overall non-primary allocations.
Allocations for non-primary airports that do not change NPIAS classification should
not vary significantly from year to year.
Q-F12: Will non-primary airports that change from unclassified to classified as the
NPIAS is updated with current year data qualify for AIG Allocated funds?
A: Yes. If the airport’s classification changes from unclassified to classified, that
airport would be eligible for an allocation the following FY based on the airport’s
new classification. Similarly, if an airport drops to unclassified it would lose
allocations the following FY.
Q-F13: Does a non-primary airport that has unobligated AIG allocations and changes
from classified to unclassified lose those funds?
A: No. Unobligated AIG allocations are available until they expire (see Q-9).
Q-F14: Will unobligated AIG Allocated funds be converted to discretionary funding
annually?
A: No. The funds are available for obligation until the end of the fourth FY. In the fifth
FY, unobligated funds are recovered and used for competitive grants. See Q-9 and
Q-F3.
Q-F15: Is there a cap limiting the maximum amount of AIG Allocated funds?
A: No. The legislation specifically states that there shall be no maximum apportionment
limit under 49 U.S.C. 47114(c)(1)(C)(iii).
Q-F16: Is there a reduction in AIG Allocated funds for medium and large hub airports
collecting a Passenger Facility Charge (PFC)?
A: No. The legislation specifically states that these funds are not subject to the reduced
apportionments of 49 U.S.C. 47114(f).
Q-F17: Does the “best of” calculation apply to cargo?
A: No. The legislation references section 49 U.S.C. 47114(2), requiring cargo
apportionments to be based on prior CY landed weight. There was no “best of”
provision for cargo.
Item 1C - Page 48
March 17, 2023
9
Questions on Use of Grant Funding
Q-U1: How can an airport sponsor use BIL AIG funds?
A: AIG funds under BIL include AIG Allocated and FCT Competitive funds.
Allowable use of AIG funds are as follows:
(1) AIG Allocated. An airport sponsor may use these funds for airport-related
projects defined under 49 U.S.C. 40117(a)(3). AIG Allocated funds cannot
be used to pay for debt service. The FAA has used the guidance in the AIP
Handbook as a component of PFC eligibility determination under section
40117.
(2) FCT Competitive. An airport sponsor may use these funds to sustain,
construct, repair, improve, rehabilitate, modernize, replace, or relocate a non-
approach FCT ATCT, and to acquire and install air traffic control,
communications, and related equipment to be used in those ATCT. (For further
information on ATCT construction see Table O-3 Other Building Project
Requirement (Other than Terminal), Item h, in the AIP Handbook. For further
information on FCT minimum equipment and facilities list and FAA FCT new
start and replacement tower process, see FAA Order JO 7210.78 FAA Contract
Tower (FCT) New Start and Replacement Tower Process). A list of eligible
equipment is found in Appendix A of Reauthorization Program Guidance Letter
(R-PGL) 19-02: Planning and Project Eligibility. FCT Competitive funds can
also be used to construct a remote tower certified by the FAA including
acquisition and installation of air traffic control, communications, or related
equipment. To date there is no FAA certified remote tower technology. FCT
Competitive funds cannot be used to pay for debt service.
Q-U2: What are the eligible uses of ATP funds?
A: ATP grants under BIL are awarded competitively and can be used for justified
terminal development projects as defined under 49 U.S.C. 47102(28), including
multi-modal projects. On-airport rail access projects, as outlined in 86 FR 48793
(PFC Update 75-21), are also eligible. Finally, projects for relocating,
reconstructing, repairing, or improving an airport-owned ATCT, either staffed by
FAA or in the FCT program, are also eligible.
Q-U3: Can BIL funds be used at an airport that cannot meet FAA design standards?
A: Standard Airport Sponsor Assurances, which require airports to meet standards and
specifications approved by the FAA, will apply to BIL grants, unless a
Modification to Standards has been approved by FAA.
Q-U4: What grant obligations will an airport be required to meet by accepting a BIL
grant?
A: Standard Airport Sponsor Assurances, will apply to BIL grants. The grant
assurances apply for the useful life of the facilities developed or equipment acquired
under the grant, except for exclusive rights, airport revenue, and civil rights, which
are perpetual. There is no limit on the duration of the terms, conditions, and
assurances with respect to real property acquired with BIL funds.
Item 1C - Page 49
March 17, 2023
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Q-U5: Are projects constructed with BIL funds expected to meet a minimum useful
life?
A: Yes. See section 3-12 of the AIP Handbook on minimum useful life.
Q-U6: Can BIL funds be used to pay the matching share for AIP grants?
A: No. 49 U.S.C. 40117(a)(3) is referenced in the legislation with respect to project
eligibility. BIL funds are Federal funds from the General Treasury, which require a
sponsor match. They are not PFC funds, which are considered local funds.
Q-U7: Can BIL matching share be paid using pay as you go PFC funds?
A: Yes. Projects must be included in an approved PFC application. The review and
approval of a new application, if one is needed due to an amendment of an
approved application, takes a significant amount of time from notification to
carriers/public to start of PFC collection.
Q-U8: Will requests to use BIL funds for projects included in an approved PFC
application be considered?
A: Yes. Sponsors must submit an amendment to an approved PFC, which decreases the
total collection authority or deletes an approved project, before submitting for
payment under a BIL grant. Sponsors should consult with their local ADO/RO if
considering changes to an approved PFC application.
Q-U9: Can BIL funds be used to pay debt service?
A: No. The legislation does not allow funds to be used for debt service, including the
financing cost of bonding.
Q-U10: Do any BIL funded projects require a Benefit-Cost Analysis (BCA)?
A: No. Title 49 U.S.C. 47115(d) identifies the requirements for a BCA for certain
AIP discretionary projects. Section 47115(d) is not referenced in the BIL,
therefore BCAs are not required. Also, a BCA is not required for installation of
weather reporting equipment (AWOS-III or better). Other controls are in place to
ensure projects are justified and reasonable.
Q-U11: Can multi-year (MY) grants be issued using BIL funds?
A: No. BIL grants cannot include future year allocations. Allocations may change
annually. See U-32 and U-33.
Q-U12: Can AIP/BIL funds be included in a single grant?
A: No. AIP and BIL funds come from different sources and cannot be mingled into a
single grant.
Q-U13: Will AIG and ATP grants include a period of performance (POP)?
A: Yes, they will include the standard four (4) years POP.
Q-U14: Are BIL funds tied to the AIP funding schedule?
A: No. BIL funds are administered separately throughout the FY.
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Q-U15: Can AIG Allocated funds be transferred between airport sponsors?
A: No. AIG Allocated funds are airport sponsor specific funds.
Q-U16: Can an airport sponsor that owns multiple airports transfer AIG Allocated
funds between its airports?
A: Yes with limitations. BIL specifically limits the amount of funding available for
primary and nonprimary airports each fiscal year. BIL Airport Infrastructure
allocated funds are airport sponsor specific funds, which can only be transferred
between airports of the same funding type. Primary AIG allocations can only be
transferred to an airport that was classified as primary in the year of the
allocation. Similarly, nonprimary AIG allocations can only be transferred to an
airport that was classified as nonprimary in the year of allocation.
For example: airport A is classified as primary in FY22 and nonprimary in FY23
while airport B is classified as primary in FY22 and FY23. Airport A can transfer
FY22 money to airport B in FY 22 but not FY23. These funds can be transferred
in any year until expired.
Q-U17: The BIL indicates that AIG funds are available for four years and ATP funds
are available for five years. How far along must a project be at the end of these
obligation periods to not lose BIL funds?
A: Funds need to be obligated as outlined under Q-F3 and Q-F4. Funds not obligated as
outlined will expire and return to the General Fund.
Q-U18: Will design only grants be allowed using AIG Allocated funds?
A: Yes. AIG Allocated funds can be used to fund a design only grant. A design only
grant will include a grant condition that the associated development will begin
within two years after the design is completed.
Q-U19: Will design only grants be eligible using FCT Competitive or ATP funds?
A: Yes. Design only grants may not compete as well as those projects that are already
designed or part of an alternative delivery method. Any design only grant will
require a realistic funding plan to ensure completion of the project. A design only
grant will include a grant condition that the associated development will begin
within two years after the design is completed.
Q-U20: In order to qualify for a grant under the BIL, must projects be "shovel ready"
or is a project still under design eligible?
A: No. As with PFC eligibility, a grant can be for design or environmental review,
taking into consideration the normal AIP requirement. Construction grants will be
issued based on bids. The annual NOFO for FCT Competitive and ATP funds will
outline the application and screening process for these funds.
Q-U21: What happens to unused BIL funds if grants are closed with a recovery?
A: AIG Allocated funds recovered before the end of the fourth year remain available for
the airport’s use. FCT Competitive and ATP funds recovered before they expire will
be returned to a competitive process. See Q-F3 and Q-F4.
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Q-U22: How can an airport sponsor use BIL recovered funds?
A: AIG Allocated funds that have not expired can be either used in a new, AIG-allocated
grant or amended into an existing AIG-allocated grant for eligible projects as outlined
in Q-U23. Recovered FCT Competitive and ATP funds that have not expired can be
either used in a new competitive grant or amended into an existing grant as outlined in
Q-U23.
Q-U23: Can BIL grants be amended to cover cost overruns?
A: Yes. BIL grants using AIG Allocated funds can be amended within their four-year
period of availability, but only with sponsor’s available AIG Allocated funds.
Grants funded with FCT Competitive or ATP funds will be considered by FAA
competitively at a national level.
Q-U24: Can BIL funds be used to reimburse costs previously incurred?
A: For all AIG Allocated funds and funds awarded under the FY 2022 ATP NOFO
and the FY 2022 FAA Contract Tower (FCT) Competitive Grant Program NOFO,
FAA will reimburse sponsors for eligible project related costs incurred on or after
November 15, 2021, which is the date of enactment of BIL, as long as all Federal
funding procurement requirements and FAA design and construction standards, are
met (see the AIP Handbook).
After further legal review, the FY 2023 and future ATP, FCT Competitive, and
other BIL related NOFOs will be adjusted to further ensure consistency with other
DOT grant programs. Project formulation costs (airport development), incurred
after November 15, 2021, are reimbursable. The specific costs eligible for
reimbursement are outlined under 49 U.S.C. 47110(c), and further described in
Table 3-60 of the AIP Handbook. All other costs must be incurred after grant
execution.
Q-U25: Can BIL funds be used to fund future phases of a project that is already under
construction?
A: Yes. BIL funds can be used for eligible costs of future phases of projects incurred
on or after November 15, 2021, as long Federal procurement requirements per
2 CFR 200 and FAA design and construction standards are met (see AIP
Handbook). See Q-U24 for reimbursement requirements for the FY 2023 and future
ATP, FCT Competitive, and other BIL related NOFOs.
Q-U26: Will requests to use competitive BIL funds for projects with planned AIP
discretionary [on FAA’s Airports Capital Improvement Plan (ACIP)] be
considered?
A: Yes. Priority will not be given to such projects and selection for competitive BIL
funds is not guaranteed. AIP discretionary funded projects that are removed from
the FAA’s ACIP and not selected for BIL funding will likely be delayed until
funding (AIP, BIL, PFC, etc.) is available. Replacement AIP discretionary projects
will not be considered.
Q-U27: Are AIG Allocated funds required to be used for higher priority projects if the
airport is receiving AIP discretionary funds in the same FY?
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A: No. AIG Allocated funds have expanded availability for projects considered lower
priority under AIP. Airports are still required to meet basic planning guidelines for
AIG funds such as project justification, project consistency with the master plans,
appropriate project scope, and project documentation on an approved Airport Layout
Plan (ALP). Additional guidelines with specific examples will be developed and
included in future BIL guidance and AIP guidance. If an ADO has concerns about
the types of projects being funded with AIG and an airport’s requested discretionary
project, then it should reach out to the BIL Team and APP for further discussions.
Q-U28: Can a Sponsor still request AIP discretionary funds while saving AIG Allocated
funds?
A: Yes. AIG Allocated funds have expanded availability for projects considered lower
priority under AIP. Airports are still required to meet basic planning guidelines for
AIG funds such as project justification, project consistency with the master plans,
appropriate project scope, and project documentation on an approved ALP.
Additional guidelines with specific examples will be developed and included in
future BIL guidance and AIP guidance. If an ADO has concerns about the types of
projects being funded with AIG and an airport’s requested discretionary project, then
it should reach out to the BIL Team and APP for further discussions.
Q-U29: Will airports be expected to use AIG Allocated funds before receiving FCT
Competitive or ATP funds?
A: No, sponsors can receive an FCT Competitive or ATP grant while saving AIG
Allocated funds for a larger project. The use of AIG Allocated funding will be
taken into consideration when making FCT Competitive and ATP funding
decisions.
Q-U30: Can alternative delivery methods be used for projects funded under BIL?
A: Yes. Use of Design-Build, and Construction Manager at Risk (CMAR), in
addition to the traditional design, bid, build delivery are allowable. Please refer to
Section 3-43 and Table U-9 of the AIP Handbook.
Q-U31: If using alternative delivery methods, does the sponsor need to have a maximum
guaranteed price to be to be considered for an FCT Competitive or ATP grant?
A: No. Sponsors must provide the information outlined in the annual NOFO.
Projects will be selected by FAA based on sponsor’s information submitted in
response to the criteria as outlined in the NOFO. A guaranteed maximum price is
required to receive a grant (see Q-U20).
Q-U32: If a project costs more than an airport’s annual AIG Allocated funds, can the
airport proceed with the project in year one, or will it have to wait until enough
funds have accumulated?
A: An airport has options in this scenario. In addition to waiting to accumulate AIG
allocations; a sponsor can phase the project so that annual grants can be issued
using available BIL funds; use AIP funds for a defined project phase; or construct
the project and request reimbursement with future allocations, at the sponsor’s risk.
Q-U33: Can an Airport borrow AIG Allocated funds from a future year?
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A: No, funding will not be available ahead of the FY in which it is allocated. AIG
allocations can be used for phased projects, saved for up to four years to use on a
larger project, or construct a project and request reimbursement with future
allocations, at the sponsor’s risk.
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Q-U34: Can AIG Allocated funds be transferred from an airport being replaced to its
replacement airport?
A: Yes, provided the replacement airport has been approved by FAA and has an airport
identification code assigned.
Q-U35: Can AIG Allocated funds be used to acquire vehicles or ground support
equipment equipped with low-emission technology if the airport is located
outside of an air quality nonattainment area or maintenance area?
A: No. Title 49 USC 40117(a)(3)(G) (incorporated into BIL-eligibility) requires
airports to be located in a nonattainment area or maintenance area for this type of
equipment.
Q-U36: Can FCT Competitive or ATP funds be used to replace a FAA owned ATCT
with a sponsor owned FCT?
A: No. FAA owned ATCT are the responsibility of ATO, not ARP. Use of ARP BIL
funding to replace a FAA owned ATCT would be supplementing ATO’s
appropriated funds, which is impermissible.
Q-U37: Is the construction, improvement, or expansion of Customs and Border Patrol
(CBP) or United States Department of Agriculture (USDA) inspection facilities
as part of a terminal project eligible for BIL grants?
A: For either AIG Allocated or ATP funds, the shell of the CBP facilities is
eligible. The USDA inspection facilities are only eligible for AIG Allocated or ATP
funds if they are required in the terminal for screening passengers or their baggage,
for example in Hawaii where all passenger baggage (checked and carry-on) is
screened by the USDA.
Q-U38: Are eligibility calculations required for terminal development grants using AIG
Allocated or ATP funds?
A: Yes. Eligibility calculations similar to those done under PFC will be required for
AIG Allocated and ATP terminal grants.
Q-U39: Are eligibility calculations required for on-airport rail access grants under
ATP?
A: Yes. The process for making eligibility calculations is outlined in PFC Update 75-21
(86 FR 48793, August 31, 2021).
Q-U40: Can ATP funds be used to fund improvements for Terminals at non-primary
airports?
A: Yes. Not less than 10% of the annual ATP funding is available for non-hub and
non-primary airports. Instructions for applying for these funds will be outlined in a
NOFO, which will be issued annually for FY 2022-2026. Projects will be selected
by FAA based on sponsor’s information submitted in response to the criteria as
outlined in the NOFO.
Q-U41: Do ATP grants count toward the $20M discretionary cap?
A: No. The $20M cap under 49 U.S.C. 47119(f) applies to AIP funds and is not
incorporated into BIL legislation.
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Q-U42: Are ATP grants for terminal development for non-primary airports limited to
the $200,000 cap?
A: No. The $200,000 cap under 49 U.S.C. 47119(b)(2) applies to AIP funds and is not
incorporated into BIL legislation.
Q-U43: How will roadway projects that meet the definition of Terminal Development be
prioritized for ATP funding?
A: Access roads servicing exclusively airport traffic that leads directly to or from an
airport passenger terminal building and walkways that lead directly to or from an
airport passenger terminal building are considered terminal development. These
projects will be evaluated as terminal development projects as outlined in the annual
NOFO. Sponsors should consider use of AIG Allocated funds for eligible,
standalone access road improvements.
Q-U44: Can BIL funded projects include a local hiring preference?
A: The BIL provides authority to use geographical and economic hiring preferences,
including local hiring preferences, for construction jobs, subject to any applicable State
and local laws, policies, and procedures. Local hiring preferences cannot be used for
any portions of a project funded under AIP per 2 CFR 200.319(c).
Q-U45: Why must an airport comply with 2 CFR 200 under BIL?
A: The BIL grants are funded from the General Fund; therefore, the Airport
Infrastructure Program and the Airport Terminal Program make Federal Awards to
non-Federal entities. These programs are subject to 2 CFR Part 200 – Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR § 200.101). In addition, BIL requires us to use the project grant
authority required under 49 USC 47104 which further federalizes the funds.
Q-U46: Do limits for grant amendments apply to BIL funds?
A: Yes. For consistency across programs, and to reflect what FAA believes to be best
practices, AIP amendment limits will apply to BIL funds. FCT Competitive and ATP
funds must use like year funds and are not guaranteed. For more information see Q-
U23.
Q-U47: Can BIL AIG Allocated funds be used on sponsor-owned revenue producing
aeronautical support facilities such as fuel farms and hangars?
A: Yes. Revenue producing aeronautical support facilities are defined under 49
U.S.C. 47102(24) as fuel farms, hangar buildings, self-service credit card
aeronautical fueling systems, airplane wash racks, major rehabilitation of a hangar
owned by a sponsor, or other aeronautical support facilities that the Secretary
determines will increase the revenue producing ability of the airport.
AIG Allocated funds have expanded eligibility beyond AIP. BIL eligibility allows
these types of projects to be funded at any airport, regardless of size. The AIP
statutory “airside needs” test is not applicable to BIL projects. However, to be BIL-
eligible, the project would still need to be a new installation or major improvement
to increase revenue production at the airport. Because the goal of BIL is to
improve the nation’s infrastructure, maintenance and repair are not eligible. For
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example, the expansion of a fuel farm to include a new fuel tank, increasing
capacity, would be eligible as a new installation. A project to replace old fuel tank
supply lines would be considered general maintenance and ineligible.
Q-U48: If using AIG Allocated funds for sponsor-owned revenue producing
aeronautical support facilities, does the airside need test apply?
A: No. There is no requirement in BIL to certify or demonstrate that airside needs
within the next three years will be met. Section 49 U.S.C 47110(h), which places
limitations on these types of projects, including the airside needs test, does not apply
to AIG Allocated funds.
Q-U49: Can AIG Allocated funds be transferred from a primary airport to a
nonprimary airport if they have the same sponsor?
A: No. See Q-U16.
Q-U50: Can a sponsor transfer AIG Allocated funds to an unclassified airport in their
system?
A: No. Unclassified airports are not eligible to receive BIL funds. See Q-8.
Q-U51: If an airport transfers its AIG Allocated funds between a primary airport and a
nonprimary airport, how is the Federal share calculated?
A: The Federal share of the AIG Allocated grant will be calculated according to the
statutory Federal share of the airport receiving the grant offer. See Q-F5.
Q-U52: If an airport banks AIG Allocated funds, is the Federal share based on when
the funds were allocated or when the grant is issued?
A: The Federal share of the AIG Allocated grant will be the airport’s statutory Federal
share for the FY of the grant offer.
Q-U53: Is the Federal share for ATP funds based on the FY the project is announced
or the FY when the grant is issued?
A: Due to the different percentages of ATP funds available for large, medium, small,
and nonhub/nonprimary airports, the federal share is based on the FY the project is
announced by the Secretary through our Notice of Intent to Fund process.
Q-U54: Can BIL funds be used to acquire and install Explosive Detection System
(EDS) machines?
A: Use of AIG Allocated or ATP funds for acquisition and installation of the EDS
machines used to screen passenger checked baggage is potentially eligible. The
Transportation Security Administration (TSA) must agree in writing that the EDS
machines are required, and TSA must provide evidence that they cannot finance
them in the near term. Coordinate with your local ADO/RO.
Q-U55: Can BIL funds be used to construct building modifications necessary to support
an EDS?
A: Use of AIG Allocated or ATP funds for building modifications needed to
accommodate EDS machines used to screen passenger-checked baggage is
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eligible. TSA must agree in writing that the proposed space for EDS machines is
only that which is needed to meet the minimum space requirement. Coordinate
with your local ADO/RO.
Q-U56: Does the provision to use CY 2018, CY 2019, or the most recent CY
enplanements (See Q-F1(1)(a)) apply when determining an airport’s hub status
for ATP funding?
A: No, 49 U.S.C. 47114(c)(1)(J) only applies to AIP and AIG formula allocations.
The airport’s hub status is based on the most recent full calendar year
enplanements.
Q-U57: When using annual AIG Allocated grants to reimburse a large multi-year
project, will each grant require its own specific usable unit of work?
A: No. For phased projects, the grant offer must include a special condition that
requires the sponsor to complete a safe, useful, and usable unit of work within a
reasonable timeframe. Each grant agreement must specifically describe the work
being reimbursed under that grant. Refer to Section 3-21 of the AIP Handbook.
Q-U58: Are airports required to certify that they have all safety and security
equipment, and access and equipment for passengers boarding or exiting non-
air carrier aircraft to receive a BIL grant for terminal development?
A: No. This requirement under 49 U.S.C. 47119(a)(1)(A) applies to AIP funds and is
not incorporated into BIL.
Q-U59: Does the requirement for the sponsor to certify that projects affecting safety,
security, or capacity, including pavement condition, for projects that include
eligible terminal revenue producing areas apply to BIL?
A: No. This requirement under 49 U.S.C. 47119(a)(2)(B) applies to AIP funds and is
not incorporated into BIL legislation.
Q-U60: Can BIL AIG Allocated funds be used for revenue generating parking for
vehicles of passengers or delivering of passengers?
A: No. Use of AIG Allocated funds for revenue generating parking lots (including
parking structures or garages) is not eligible for BIL funding for any size airport.
Q-U61: What is the Build America, Buy America (BABA) Act?
A: Buy American requirements under 49 U.S.C. 50101, Build America, Buy America
requirements in sections 70912(6) and 70914 in Public Law No: 117-58, the
Infrastructure Investment and Jobs Act, also known as BIL. The BABA Act will
be required for both BIL and AIP grants. FAA’s Buy American requirements are
more restrictive than BABA, but BABA includes more specific requirements for
construction materials. More information and implementation guidance will be
provided as it becomes available.
Q-U62: Can alternative delivery methods be used for airside construction?
A: Yes, refer to 2 CFR 200 and Appendix U of the AIP Handbook.
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Q-U63: The statute lists achieving Leadership in Energy and Environmental Design
(LEED) accreditation standards as one example of improving energy efficiency.
Can a similar standard be used?
A: Yes. One goal of ATP is to fund projects that improve energy efficiency.
Achieving LEED or similar standards provides a method for measuring a project’s
impact.
Q-U64: Can engineering or other project formulation costs incurred prior to enactment
of the BIL be reimbursed?
A: No. Costs incurred prior to November 15, 2021, cannot be reimbursed with BIL
funds. The airport must verify that an invoice submitted after November 15, 2021,
does not include costs incurred prior to that date.
Q-U65: Can a Reimbursable Agreement (RA) signed or paid prior to enactment of the
BIL be reimbursed?
A: Costs incurred prior to November 15, 2021 (when the work was actually
performed), cannot be reimbursed with BIL funds. If the RA was signed and/or
paid prior to that date, BIL funds can be used but only for costs incurred after
November 15, 2021. See Q-U24 for reimbursement requirements for the FY 2023
and future ATP, FCT Competitive, and other BIL related NOFOs.
Q-U66: Can AIG Allocated funds and ATP funds be combined in a single grant?
A: No. They can be combined to fund a project or phase of a project but must be
separate grants.
Q-U67: Are projects that increase energy efficiency of an airport’s power sources, such
as solar or geo-thermal, eligible for BIL funding?
A: Yes. If in a nonattainment or maintenance area meeting the criteria for the VALE
program see Q-U35.
For all other airports AIG Allocated funds can be used to assess the airport’s
energy requirements in order to identify opportunities to increase energy efficiency
at the airport as outlined under 49 U.S.C. 47140(a). AIG Allocated funds can be
used for improvements identified in the energy assessment that increase energy
efficiency at the airport under 49 U.S.C. 47140(b). Contact your ADO for
additional guidance.
Q-U68: Is an energy efficiency assessment required for an ATP project to increase
energy efficiency?
A: No. FAA will not require an assessment if the energy efficiency project is in
support of the terminal. One of the project considerations for ATP projects is to
improve energy efficiency, including upgrading environmental systems, upgrading
plant facilities, and achieving LEED (or similar) accreditation standards as part of
a new terminal construction, expansion, or rehabilitation.
Q-U69: Do FAA’s AIP or similar contract provisions apply to BIL funded projects?
A: Yes. The BIL grants are funded from the General Fund; therefore, the Airport
Infrastructure Program and the Airport Terminal Program are both Federal Grant
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Programs. BIL funded projects must comply with FAA’s Contract Provision
Guidelines for Obligated Sponsors and Airport Improvement Program Projects. This
includes Disadvantaged Business Enterprise, Davis-Bacon, Civil Rights, Equal
Employment Opportunity (EEO), and Veteran’s Preference, among other required
contract provisions.
Q-U70: What procurement method must be used for alternative project delivery such
as Construction Manager at Risk (CMAR) or Design-Build (D-B)?
A: Sponsors must use the competitive proposal method as outlined in 2 CFR
200(b)(2)(iii) and FAA guidance in Appendix U of the AIP Handbook. Price
(fee/profit) must be a consideration in the selection process and sponsor must
provide a cost or price analysis per 2 CFR 200.320. For D-B, 49 U.S.C.
47142(a)(6) requires three (3) or more proposals. Applicable Federal contract
requirements must be included as part of the sponsor’s solicitation and in all
contracts and subcontracts resulting from the procurement (See Q-U69). Selection
of a CMAR or D-B that doesn’t meet these requirements is not eligible for BIL
funding. Contracts and grants for CMAR or D-B are based on a negotiated
guaranteed maximum price (GMP), representing the ceiling project price.
Q-U71: Can a sponsor be reimbursed for sponsor-furnished proprietary equipment
and materials (i.e., baggage handling system equipment or steel for a terminal
project) that were procured separately for a non-federally funded project?
A: FAA will only reimburse sponsors for eligible project related costs incurred on or
after November 15, 2021, which is the date of enactment of BIL. See Q-U24.
Sponsor furnished materials and equipment must be purchased (cost incurred) after
BIL was enacted and follow federal contract provisions, including 2 CFR 200, to
be eligible for reimbursement, installation, inspection, and testing. In addition,
Buy American and Buy America, Build America must be followed for the costs of
the equipment and/or materials to be eligible for reimbursement. See Q-U24 for
reimbursement requirements for the FY 2023 and future ATP, FCT Competitive,
and other BIL related NOFOs.
Q-U72: If a sponsor has been put in pending noncompliance or noncompliance with
AIP grant assurances are they eligible to receive AIG Allocations?
A: All eligible airports will receive an AIG allocation. Sponsors with a Part 16 non-
compliance finding by a Director’s Determination, Final Agency Decision, or
Hearing will not receive an AIG Allocated grant until the compliance finding is
resolved. All other sponsors, including those with a Part 13 noncompliance
finding, can receive an AIG Allocated grant. However, grants issued to a sponsor
with a Part 13 noncompliance finding must contain a special condition requiring
Agency approval of a Corrective Action Plan before the sponsor can drawdown
funds.
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Questions on Grant Application, Payments, and Closeouts
Q-A1: How does an airport apply for a BIL grant?
A: AIG Allocated: Follow AIP process including projects in the CIP, submittal of
the SF-424, Application for Federal Assistance and other documents as required
by FAA Airports Standard Operating Procedure (SOP) 6.00 and the local ADO or
RO.
FCT Competitive: For projects selected through the competitive process under
the annual NOFO, follow AIP process including projects in the CIP, submittal of
the SF-424, Application for Federal Assistance and other documents as required
by FAA Airports SOP 6.00 and the local ADO or RO.
ATP: For projects selected through the competitive process under the annual
NOFO, follow AIP process including projects in the CIP, submittal of the SF-424,
Application for Federal Assistance and other documents as required by FAA
Airports SOP 6.00 and the local ADO or RO.
Q-A2: Can a project using a combination of AIP and BIL funds be included on a
single grant application?
A: No. Separate applications are required for each fund type.
Q-A3: How will an airport sponsor submit payment requests?
A: FAA will use the existing U.S. Department of Transportation Delphi eInvoicing
system for payment requests, following FAA’s payment policy.
Q-A4: What documentation is required for closing out a BIL Grant?
A: ADOs will use AIP closeout process per FAA Airports SOP 10.00. After the grant
is closed, it remains subject to audit. The airport sponsor must retain grant
documentation for three years after the grant is closed as required by 2 CFR 200.334.
Questions related to the State Block Grant Program
Q-SB1: How will BIL funds be administered to airports covered under the FAA’s State
Block Grant Program (SBGP)?
A: FAA interprets 49 U.S.C. 47128, State Block Grant Program, as giving direction
to provide each State Block Grant participating state program administration
responsibilities for grants issued under BIL. This interpretation is consistent
with our long-standing practice. For airports covered under the FAA’s SBGP,
the FAA will issue block grants to states designated for projects at specific
locations. BIL funds are location specific, similar to AIP discretionary funding.
When projects are ready to move forward, location-specific funding will be
awarded based on BIL availability and actual construction bids or negotiated
agreement.
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Q-SB2: Will the State Block Grant Participating State be provided program
administration costs related to BIL funding?
A: No. The FAA is applying many of the same program administration rules for
BIL as for AIP. For states that participate in the FAA’s SBGP, program
administration costs are not allowable for BIL grants, but project administrative
costs could be allowable through direct billing. See Q-SB3.
Q-SB3: Can the State Block Grant Participating State be reimbursed for project
administrative costs related to BIL grants?
A: Yes. The state can charge for project administrative costs that are directly related to
administering the eligible project (many are normally done by a consultant or other
hired company) such as application preparation, contract management, engineering
oversight, bidding, etc. BIL programs, like AIP, are subject to the requirements of 2
CFR Part 200. See the AIP Handbook for further detail on how FAA applies these
requirements in the airport development grant context.
Q-SB4: For those BIL projects administered under the block grant, who would have the
responsibility to complete NEPA?
A: The state’s environmental compliance responsibilities when administering BIL funds
under the Block Grant Program will vary depending on if the project involves the use
of only BIL funds, or a mixture of funding sources. In general, BIL AIG Allocated
funds will be similar to AIP entitlement and state apportionment funds, where the
state retains NEPA responsibility. For ATP and FCT Competitive funded projects,
the FAA retains oversight and NEPA responsibility, similar to AIP discretionary
funded projects.
Q-SB5: What is the State Block Grant state’s role in planning for AIG Allocated funded
projects?
A: The FAA sent guidance out to states and sponsors early in CY 2022, with specific
instructions to start updating state Capital Improvement Program (CIP) submissions.
This information will be used by FAA to update our NPIAS, as well as our three year
Airports Capital Improvement Program (ACIP). State Block Grant states should
incorporate the additional AIG specific project into the state’s CIPs. Contact your
local ADO for additional details.
Q-SB6: How does the State Block Grant state apply for an AIG grant?
A: The state’s application process will mirror the AIP discretionary application process.
This includes ensuring projects are shown in state’s CIP, the project is on the
airport’s approved ALP, and submittal of the SF-424, Application for Federal
Assistance and other documents as required. See Q-A1. When projects are ready to
move forward, location-specific funding will be granted based on BIL availability
and actual construction bids or negotiated agreements.
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ATTACHMENT C
TSA FUNDING POLICY
Item 1C - Page 63
1
ELECTRONIC BAGGAGE SCREENING PROGRAM TSA
FUNDING OF CHECKED BAGGAGE INSPECTION SYSTEM
PROJECTS COSTS VERSION 4.0
TSA approved this document on October 6, 2020
Item 1C - Page 64
Transportation
Security
Administration
2
Table of Contents
Se ction A. Introduction..........................................................................................................
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3
Section B. CBIS Project and Funding Application Eligibility 3
Section C. Allowable, Allocable and Reasonable Costs 5
C.1 Allowable Design Costs 6
C.2 Allowable Construction Costs 6
C.3 Allowable Project Management, Construction Management, and Contingency Costs 9
C.4 Unallowable Costs ....................................................................................................
.............................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
10
Appendix. Revision Summary 12
Version 2.0 12
Version 3.0 13
Version 4.0 13
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Section A. Introduction
49 U.S.C. §44923 authorizes the Transportation Security Administration (TSA) to make other
transaction agreements with Project Sponsors for:
1. Projects to replace baggage conveyer systems related to aviation security;
2. Projects to reconfigure terminal baggage areas as needed to install explosive detection
systems;
3. Projects to enable the Under Secretary to deploy explosive detection systems behind the
ticket counter, in the baggage sorting area, or in line with the baggage handling system;
and
4. Other airport security capital improvement projects.
TSA utilizes Other Transaction Agreements (OTAs) as funding instruments to reimburse Project
Sponsors for eligible aviation security projects. Project Sponsors may obtain any additional
information, guidance, and applications for funding at TSA’s Baggage Screening web page .
Acquisition Program Management (APM) within TSA is responsible for managing the
Electronic Baggage Screening Program (EBSP ). EBSP’s mission is to satisfy the requirements of
the Aviation and Transportation Security Act (ATSA, Pub.L. 107–71 November 19, 2001).
ATSA requires that all checked baggage be screened using explosive detection technology.
EBSP’s mission is to deploy a nd maintain screening technology in support of ATSA
requirements.
EBSP develops an annual spend plan by prioritizing and then selecting aviation security
improvement projects that meet the Program’s mission. EBSP selects projects that will achieve
the maximum increase in security capability within the funding appropriations set by Congress.
The Planning Guidelines and Design Standards (PGDS) for Checked Baggage Inspection
Systems (CBIS) details TSA’s requirements and documented best practices for implementing a
high performance and cost-effective CBIS. The PGDS is available on SAM.gov.
TSA is not a party to the contracts a Project Sponsor executes with third parties in support of a
TSA CBIS project. The Project Sponsor (including its appropriate procurement authority) is the
responsible contractual authority for establishing and administering the contract agreements. The
Project Sponsor is responsible for all contractua l matters, including evaluation and award of
contract, resolution of claims and disputes, and settlement of litigation issues regarding the
satisfaction of all contractual and administrative issues arising from procurements entered into in
support of a TSA CBIS project, without recourse to TSA. This includes, but is not limited to,
disputes, claims, protests of award, source evaluation, or other matters of a contractual nature.
Section B. CBIS Project and Funding Application Eligibility
Design and Facility Modificatio n OTA Applications are the primary vehicles through which
TSA invites communication from a Project Sponsor regarding project needs and funding
requests, thereby providing a controlled manner for a Project Sponsor to submit funding
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requests. This process allows for proper tracking and handling of funding requests and
subsequent communications between TSA and the Project Sponsor.
The Project Sponsor should be aware of the following while making an OTA application
submission:
• TSA will accept all OTA applicatio ns on a continuous basis at
CBTPlanning@tsa.dhs.gov.
• The initial requirement for applying for a CBIS project is for the Federal Security
Director (FSD) to acquire a Requirements Management Advisory Group (ReMAG)
number prior to the Project Sponsor submitting the current In-line Support Application
Form through the FSD.
The Project Sponsor is strongly encouraged to coordinate with local and headquarters TSA
entities via TSA Project Coordinators as early as possible when CBIS projects are being
considered and conceptually planned. Early notification assists TSA in justifying and budgeting
federal funding for the EBSP. Similarly, TSA Project Coordinators will also notify airports as
early as possible when a TSA -initiated project is being forecasted or considered at their location.
Projects types are typically categorized as:
1. New In-line – A new in-line project creates a fully integrated baggage screening system
that is built without needing to modify an existing in -line CBIS. New in -line projects are
generally at greenfield sites (a new terminal, a newly created CBIS within an existing
terminal, etc.) or can occur when an existing system is completely removed and replaced.
For a new in-line system to be eligible for TSA funding, it must not replace an existing
full in -line system (previous screening for the airport must have been via stand-alone
EDS, semi-integrated EDS, mini-inline EDS, or primary ETD equipment). New fully
integrated In-line projects with sufficient baggage demand are generally eligible for TSA
funding. New mini-inline projects are not eligible for TSA funding.
2. Recapitalization – Recapitalization projects are TSA -initiated projects that replace
existing screening equipment due to technical obsolescence. The scope of a
recapitalization project is limited to only those actions necessary to replace existing
screening equipment while maintaining existing capabilities and is defined by TSA in
advance. Any additional work that an airport would like to conduct beyond the
recapitalization scope is considered optimization activity. Recapitalization projects are
generally eligible for TSA funding.
3. Optimization – Optimization projects are airport-initiated modifications to an existing
CBIS for any reason other than screening equipment recapitalization. Optimization
projects or activities are generally not eligible for TSA funding.
4. PGDS Upgrades – PGDS Upgrade projects are TSA -initiated efforts to close gaps
between existing system capabilities and current PGDS requirements. PGDS Upgrade
projects are generally eligible for TSA funding.
5. Expansion – Expansion projects are limited to efforts that add screening equipment to an
existing in -line system. These projects are generally not eligible for TSA funding.
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A Project Sponsor may apply for design project funding prior to the start of any design
enginee ring. For projects in which the Project Sponsor has already completed a portion of the
project design without funding from TSA, the Project Sponsor may apply for funding of the
remaining design costs.
While not needed for the initial application, the Project Sponsor must submit a quote from their
designer, including all allowable costs for the design effort, in order for TSA to make a final
determination regarding funding for a Design OTA. Similarly , for a facility modification OTA,
the Project Sponsor mus t have obtained bids, determined the prospective winning bidder, and
provided bid information to TSA before TSA will make a final decision regarding funding.
Any project costs incurred by the Project Sponsor prior to receiving a fully executed OTA from
TSA are ineligible for reimbursement. As every project is unique, the Project Sponsor must be
cognizant of the terms and conditions associated with their respective OTA in order to ensure
that potential costs meet the requirements for reimbursement.
The Proje ct Sponsor is strongly encouraged to submit their application for Facility Modification
project funding early in design; TSA recommends that this be coordinated between the Project
Sponsor and TSA as part of the design process. TSA will not proceed towards finalizing a
Facility Modification OTA until the 100% Design Phase has been successfully completed, bids
are obtained and provided, a winning bid is chosen, and TSA conducts its own internal cost
analysis.
TSA will retain a certain percentage of invoiced amounts until certain project milestones are
completed. The OTA will provide specific milestones and the percentages to be retained. If a
Project Sponsor’s system is required to repeat integrated site acceptance testing (ISAT), this may
impact retainage.
Section C. Allowable, Allocable and Reasonable Costs
Cost share is dependent on the project category and hub type, and it will be stipulated in the
OTA. Project costs may be eligible for inclusion in a Facility Modification OTA if they:
1. Are essential to the checked baggage inspection system solution and not otherwise
excluded
2. Are allowable, in that they c onform to the terms and conditions of the OTA to include all
legal references listed in this policy and the OTA;
3. Are allocable, in that they directly attributed to only the TSA CBIS project – a project
cost must be chargeable to a TSA project objective necessary for the operation of the
CBIS;
4. Are reasonable in their nature and amount, and do not exceed that which would be
incurred by a prudent person in the conduct of competitive business. (See generally:
Federal Acquisition Regulations Subpart 31.2, Contracts with Commercial Organizations,
for further guidance.);
5. Are also considered allowable, allocable, and reasonable according to OMB Circular A-
87, or OMB Circular A-122 depending on the Project Sponsor’s business structure.
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The Project Sponsor must also review project costs to ensure conflicts do not exist with any
additional federal grants that the Project Sponsor has or intends to accept. In some instances,
Federal Aviation Administration grants may preclude the reimbursement of TSA project costs,
and vice versa. The Project Sponsor should consult their legal counsel and the appropriate
federal agencies for guidance.
Typical Costs for TSA Checked Baggage Inspection System Projects
C.1 Allowable Design Costs
1. TSA will only reimburse design fees that can be directly apportioned to the TSA
“allocable” portion of the CBIS project.
2. TSA will reimburse for reasonable project management costs associated with the design
por tion of a CBIS project.
3. TSA will reimburse for reasonable bid support costs associated with the construction
portion of a CBIS project.
C.2 Allowable Construction Costs
1. Basic interior construction and fit out is considered an allocable cost and must be limited
to areas directly supporting the baggage screening operation to include CBIS areas,
including the CBRA areas and OSR room(s). Costs in excess of basic finishes are not
allowable.
Interior construction is defined as:
• Interior wall construction as a result of space reconfiguration(s) to accommodate
and support TSA screening operations
• Installation of electrical and communications systems, including:
− Circuit panels
− Telephone or communication junctions
− Transformers and other electrical components required to support TSA
• Installation of heating ventilation and air conditioning (HVAC) of spaces to
support EDS machine operation, the OSR room, the CBRA, and other areas that
will be staffed by TSA field personnel. The exact extent of the HVAC cost that
will be considered eligible for TSA reimbursement is assessed on a case-by-case
basis.
• Installation of uninterruptable power supply (UPS) to support EDS machine
operation.
• Sprinkler systems and alarms as required by local fire and safety codes
• Insulation, drywall, acoustical ceiling tiles, and sound baffles associated
specifically with the CBRA and/or OSR room noise attenuation
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• Interior construction in support of Occupational Safety and Health Administration
(OSHA) requirements for spaces inhabited by Transportation Sec urity Officers
• Floor reinforcement in the CBIS, including CBRA and OSR areas to meet
structural load requirements if applicable
2. Demolition and site preparation of the existing conditions to support EDS installation,
CBRA and OSR construction.
3. Basic lighting, fixtures, switching, and appurtenances in CBIS areas, including the
CBRA, and the OSR room that meet current minimum National Electrical Code,
International Building Code, and OSHA requirements for lighting (lumen per square
foot) for office spac e and to support allocable computers, conditioning units, printers, and
other ancillary equipment. If allocable to the CBIS, OSR room, or CBRA, the costs for
the following may be eligible for reimbursement:
• New power drops
• Associated transformers
• Electrical panels or subpanels
• Communication and network wiring
• Network and/or communications exchanges
4. Basic furnishings within the CBRA and OSR room only, such as adjustable height work
stations, chairs, non-powered gravity rollers or other “no-lift” devices.
5. Conveyor within the Secure Tracking Zone (STZ), generally defined as the portion of the
BHS beginning at the pre -EDS automated tag reader (ATR) and ending the downstream
clear line(s). This is limited to conveyor from the ATR to the EDS shunts (if there is an
upstream ATR), the EDS shunts to and from the EDS, the OSR line, the CBRA line, the
reinsert line, and all diverters/merges required for baggage screening.
6. The costs of design or construction of dual mainlines feeding the CBIS are allowable
only if the rated throughput of the CBIS exceeds the capacity of a single mainline. The
costs of dual mainlines for the purpose of redundancy, in systems where a single mainline
has sufficient capacity to feed the CBIS at its rated throughput, are not allowable.
7. ATRs are allowable by TSA if they are:
• Installed pre -EDS and used to support bag tracking in a security zone (see Figure
1), or;
• Installed post-CBIS, only when the existing BHS is decentralized and the ATR is
required for sortation from a centralized CBIS to the existing bag make -up units
(see Figure 2).
Eligibility and the exact amount of allocable cost will be determined on a case -by-case
basis. ATRs post-CBIS are non-allowable where the existing BHS is already centralized
and requires bag sortation. Figures 1 a nd 2 show high-level block diagrams exemplifying
allowable ATRs in centralized and de -centralized sortation configurations.
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Figure 1: Diagram of Allowable ATRs (Centralized Sortation)
Figure 2: Diagram of Allowable ATRs (Decentralized Sortation)
8. Sortation cost may be considered allocable for existing decentralized systems where bags
from multiple ticket counter inputs are screened in a common matrix and sorted back to
the original delivery system (see Figure 2). Conveyor sections required to intercept bags
on original delivery lines, deliver to CBIS, and return back to the original conveyance
Item 1C - Page 71
Check-in
Counters
--~
t
Check-in
Counters
Centralized
CBIS
Check-In
Counters
Check-in
Counters
•---~
Check-In
C ounters
Baggage
Makeup Unit
, I. : ..... :.
. ;.. .
Centralized
CBIS
....
t
t
LEGEND
Cl
Cl -Cl
LEGEND
Unscreened bags conveyed to
centralized CBIS
Screened bags conveyed
back to BMUs
Pre-existing BHS incorporated
in CBIS design
Reimbursable ATR
Unscreened bags conveyed to
centralized CBIS
Screened bags conveyed
bacl< to BMUs
Pre-existing BHS incorporated
in CBIS design
Pre-existing BHS to be removed
Reimbursable ATR
9
will be considered for reimbursement. TSA will not reimburse for a host Baggage
Sortation Message to a sort controller for the purpose of individual air carrier sort
functions.
9. Telephone, radio, intercom, airport-only cellular phones, or other voice communications
may be considered if essential for TSA CBIS, including CBRA and OSR operations.
10. Closed Circuit Television at the following locations:
• The divert point going into the EDS shunt
• The EDS entrance
• The EDS exit
• The machine clear bag divert point
• The point where the OSR line merges into the mainline
• Last chance divert point
• OSR Room
• CBRA Room
11. BHS monitors in the OSR room and/or in the CBRA.
12. Programmable logic controllers (PLC) if the addition of an in-line screening system requires
a modification and/or addition to current systems. TSA will only consider allowing for the
programming to integrate and control the in-line screening portion of the BHS, and will only
consider the costs of that portion of the controls necessary to support CBIS, OSR, and CBRA
operations.
13. Replacement, relocation, and/or upgrade of the existing CBIS necessary to support
recapitalization of the EDS machines on a case-by-case basis within the TSA-designated
areas.
14. Phasing costs identified and agreed to by TSA in the design review process to support EDS
installation, CBRA and OSR construction.
15. Security Technology Integration Program (STIP) requirements. STIP provides for
connectivity of security technology such as EDS, Explosive Trace Detection, and primary
and secondary EDS workstations to the TSA network (see PGDS for general connectivity
requirements; TSA will also provide any current STIP requirements documents to a Project
Sponsor upon request).
C.3 Allowable Project Management, Construction Management, and Contingency Costs
1. The following fees are considered to be allowable costs:
• Insurance
• Home office overhead
• Profit
• Sales tax
• Design w/ Construction Administration
Item 1C - Page 72
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•Project Management
•Construction Management
•Design Contingency
•Construction Contingency
TSA will only reimburse such costs that can be directly apportioned to the TSA
“allocable” portion of the CBIS project. Specific justification for fees must be provided
and approved at the time of negotiation prior to the OTA being signed.
2.The inclusion of construction contingency funds for allocable items is only allowable for
projects with Facility Modification OTAs. Construction contingencies are not expected to
exceed 5% of the total projected construction budget unless the total construction budget
is low or there are other extenuating circumstances.
3.Contingency may be considered for Design OTAs. Contingencies for Design OTAs shall
be applied to the sum total of design, project management and bid support costs.
4.In order to invoice TSA for any of the contingency funds, a change request must be
submitted to TSA outlining the change in condition that requires the additional funding
and supplying the necessary supporting documentation, including modified plans and
specifications for the change. Further, Project Sponsor should submit a cost estimate,
meeting all requirements of this document, with the change request justifying the change
in cost. Access to the contingency funding will only be provided based on written
approval of the proposed change request by TSA’s Contracting Officer Representative
(COR). If the change requires a modification of the contract, written approval must come
from TSA’s Contracting Officer.
C.4 Unallowable Costs
The following list presents examples of items which costs are considered unallowable for
reimbursement under an OTA agreement with TSA. This list does not represent a complete list
of unallowable items. TSA’s requirements for the design of CBIS are presented in the PGDS for
CBIS.
1.Design and construction costs for TSA -leased spaces.
2.Construction costs for centralized BHS control rooms.
3.Design or construction of “bricks and mortar”, which refers to any new physical structure
built to house the CBIS, CBRA, and/or OSR areas.
4.Costs for extended warranties.
5.Costs for CBIS operations and maintenance.
6.Costs incurred outside of the OTA period of performance.
7.Spare parts and storage areas for spare parts.
8.Replacement of PLC components and PLC programming. See Section C.2.11 above for
more details on PLC eligibility.
9.Laptop computers used for maintenance of the BHS.
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10.BHS components outside of the CBIS area (including, but not limited to):
a.Baggage reconciliation systems (carousels or sortation systems).
b.Baggage System Management (BSM) data providers and/or BSM systems.
c.Manual encoding systems, with the exception of ICS systems where the manual
encode is used
d.Replacements of ticket counter conveyors and sortation area conveyors.
e.Inbound mainline conveyors upstream of the Secure Tracking Zone (STZ).
f.Outbound conveyors downstream of the STZ.
g.Replacement of inbound and outbound sortation conveyors.
11.Retrofit of an existing CBIS as a result of airline mergers or relocations within an airport
unless such construction is proven to be cost-beneficial to TSA, as determined by TSA’s
cost analysis. TSA does not support allocation of BHS system costs borne by airlines or
airports outside of the OTA process
12.Mainlines in excess of the capacity needed to feed the CBIS at its rated throughput.
13.Automatic recirculation loops (not including the automatic reinsertion lines in the CBRA),
either pre -EDS screening or post-EDS screening.
14.Dynamic simulation modeling.
15.Additional ISAT beyond the initial test.
a.The Project Sponsor’s cost for additional ISAT will be borne by the Project Sponsor and
will not be reimbursed by TSA.
b.TSA’s cost for additional ISAT will be deducted from the OTA retainage.
16.Re-design work the airport elects to do after TSA approves a design.
17.Costs incurred by the airport or its contractors or agents to perform work not in compliance
with TSA requirements as stated in the OTA.
18.Airport profit or the general costs of government.
19.Repair or replacement of any equipment not identified as being “TSA Maintained” in Table 1
below.
Table 1: TSA Procurement and Maintenance Responsibility Matrix
Category Equipment Type TSA Procured TSA Maintained
Screening Equipment EDS, ETD Yes Yes
Ancillary Equipment SVS, PVS, MCS, UPS, Network Servers Yes Yes
Furniture OSR Chairs Yes Yes
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Appendix. Revision Summary
Version 2.0
LOCATION COMMENT
Throughout • Updated URL links to connect with new TSA web pages
• Letter of Intent (LOI) references removed • References to “Airport Sponsors” changed to “Project Sponsor”
• Eliminated references to the ILDT, since all requirements set forth in this document
are for the Project Sponsor
Section B • Paragraph 1: TSA will only sign a Facility Modification after a project has completed
their 100% design review and the Project Sponsors have gone to bid, determine a
prospective bid winner and provided their bid information to TSA.
• Paragraph 6: Optimization projects will now be referred to in the document as “Efficiency project” to align with EBSP nomenclature
Section C.
Intro
• Added cost share language
Section C.1 • Added Design Costs section, moved various info from C.1.2 to the new section
• Added “pursuant to Table 1 in this document”.
Section C.2 • Removed CBRA Table References • Added dual mainline language to state circumstances under which a dual mainline is
considered allowable for a TSA CBIS project.
Section C.3 • Added language to reflect the COR can approve change requests (which do not include
modification of contract).
• Amended Construction Administration percentage, removed Design Fee.
• Added number 3 to the list (design fees, project management, construction management, and construction administration reimbursement).
• Added “which must be negotiated prior to OTA award. Otherwise, such expenses
will not be considered allowable and reimbursed”.
Section C.4 • Added items to the list of “Unallowable Costs”: Automatic Recirculation Loop,
Dynamic Simulation, additional ISATs beyond the initial test, CBRA tables and design resubmittals.
• Added language to state that additional ISAT costs will be the responsibility of the
Project Sponsor and they will be deducted from the OTA retainage.
• Added number 5 to the list “Costs incurred outside of the OTA period of
performance”.
• Added item to the list of “Unallowable Costs” regarding airport-elected re- design after
TSA approval and repair of any equipment airport sponsor purchases or is reimbursed
for.
• Added number 16 to the list (TSA will not reimburse airports for profit or the general
costs of government).
• Deleted bullet on unallowable CBRA table costs.
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Version 3.0
LOCATION COMMENT
Throughout • Updated URL link to PGDS
• Updated “OSC” to “OAPM”
• Updated references to PGDS
Section C.1 • Added “combined Design/Facility Modification”
• Removed reference to 2 percent of design fees and that TSA will not reimburse for any
other costs associated with the design portion
• Added number 4 – “TSA will reimburse for bid support costs associated with the
construction portion of a CBIS project.”
Section C.3 • Updated Table 1 format. Removed PGDS section references. Added note “Targeted scope or non-full in -line projects may deviate from the percentages shown above.”
• Updated number 4 with language “Design contingency funds are allocated as a
percentage of the total construction costs based on the level of design at time of OTA
award” and changed the following three bullets to sub- bullets under number 4
• Updated the language to number 6 to align with how contingency for Design OTAs will be applied and moved to number 7 on list
Ve rsion 4.0
LOCATION COMMENT
Throughout • Updated “OAPM” to “APM”
• Updated URL link to PGDS
• Updated references to PGDS
• Rearranged text to improve flow and readability
Section B.1 • Revised document order • Updated project categorization definitions
• Removed sentence indicating “costs are eligible for funding if they are essential to the
design and construction of the CBIS, CBRA, and OSR room…”
Section C
Intro
• Updated wording for requirements to be met for a cost to be “allowable, allocable, and reasonable” to reduce ambiguity
Section C.1 • Updated wording throughout • Removed specific mention of limiting design fees to 6% of construction estimate
Section C.2 • Updated wording throughout
• Included UPS/HVAC requirements
• Added defined area in which conveyor is considered to be an allocable cost
• Revised ATR language regarding allowable ATRs and sortation
• Added OSR and CBRA as allowable CCTV locations
Section C.3 • Updated wording throughout
• Removed Table 1, replaced with list of allowable fees
• Removed all discussion of design contingencies, as no OTAs are awarded before
100% design completion • Softened language regarding construction contingencies as higher percentages may be
needed for smaller projects
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14
LOCATION COMMENT
Section C.4 • Added bricks and mortar to unallowable costs
• Added ICS exception to manual encoding systems
• Added defined start/end of allowable CBIS area
• Removed mention of resubmittals not being allowable • Added TSA procurement and maintenance responsibility matrix (Table 1)
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