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| Sub   | **[ACTION]{.underline}:**       | D    | August 13, 2003    |
| ject: | Program Guidance Letter 03-3    | ate: |                    |
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| From: | Manager, Airports Financial     | R    |                    |
|       | Assistance Division, APP‑500    | eply |                    |
|       |                                 | to   |                    |
|       |                                 |      |                    |
|       |                                 | A    |                    |
|       |                                 | ttn. |                    |
|       |                                 | of:  |                    |
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| To:   | PGL Distribution List           |      |                    |
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[03-3.1 Contract Air Traffic Control Towers Under AIP - Jim Borsari
(202) 267‑8822 and Harold Thomas, ATP-140, (202) 267-9315.]{.underline}

Sections 338 and 370 of the Department of Transportation and Related
Agencies Appropriations Act, 2003, contained provisions making the
construction and/or equipage of airport traffic control towers eligible
under the AIP if the towers will be used in the contract tower program.
Section 338 was specific to Double Eagle Airport in New Mexico and
contains some provisions that are different than the general
eligibility. Since this is pertinent to only one airport, the Southwest
Region will be advised separately.

**GENERAL ELIGIBILITY**

An airport may request a grant, using entitlement funding (as more
specifically treated below), for the construction and/or equipage of a
tower if it meets specific eligibility requirements. The statute places
conditions on eligibility as follows:

1.  The sponsor must be a participant in the FAA Contract Tower (FCT)
    Program, or

2.  FAA must agree that the construction of the tower would qualify the
    sponsor to be eligible under the FAA Contract Tower (FCT) Program.

3.  The sponsor must certify, via the FCT Operating Agreement and the
    FCT Cost Share Agreement, if applicable, that it will pay its share
    of the cost to equip, maintain, and operate the tower.

In the process of accepting the airport into the FCT Program, FAA agrees
to seek appropriations for and maintain the airport in the FCT program
in the same manner and priority as other airports already in the
program.

## PROCEDURE

In order for FAA to decide the eligibility of the sponsor to use
entitlements for an ATCT, airports offices should advise airport
sponsors to follow the procedures below to make application to the
appropriate regional air traffic office.

The airport sponsor may commence the review by contacting the
appropriate FAA Contract Tower (FCT) Program regional point of contact
(POC) and request a FCT application package. This is the standard
application process that is advertised through several publications. A
list of these POC's is attached.

The regional POC will forward the airport sponsor an application
package, which includes information about the program and forms
requesting operational data. If the airport is still interested, the
airport sponsor must return the completed package to the regional POC.
After insuring all the required information is included, the regional
POC will forward the package to the FCT Program Office, ATP-140.

ATP-140 will place the airport sponsor on the FCT Program applicant
list, and forward the package to the FAA Office of Policy and Plans
(APO) for calculation of their preliminary Benefit Cost (B/C) Ratio. The
regional POC and the airport sponsor will be notified of the B/C and the
program in which the airport is eligible to participate, either fully
funded or cost share.

Once ATP-140 has made the final determinations required under the
statute, it will provide the necessary certifications (including a
statement that FAA will seek future appropriations for the operation of
the tower if built with AIP funds) to APP-500 for review and transmittal
to the appropriate regional airports division for filing in the file for
the project. Such certifications must be kept with the project file.

The airport will be placed on the FCT Program candidate list pending the
completion and certification that the tower meets the construction and
equipage for a contract tower and the availability of FCT Program funds.
ATP-140 has a standard list of equipment items that must be followed in
the AIP grant. If the sponsor has other needs due to the unique nature
of the conditions at the airport, these other needs must be specifically
approved by the regional POC and/or ATP-140 in order to be considered
allowable under the AIP grant. The regional POC will make this
determination in coordination with ATP-140 and will advise the
appropriate Regional Airports Division.

**AIP FUNDING**

Only after successful completion of the above steps may an airport
request an AIP grant for construction. Under this provision, qualifying
primary airports must use either primary or cargo entitlements that have
been apportioned to them. Nonprimary airports may use either their
nonprimary entitlements or state apportionment (under some
restrictions). Under the statutory restrictions, State apportionment may
be used at qualifying airports subject to a requirement that FAA has
consulted with the pertinent State and the State supports the
construction of the tower as part of its State airport capital plan. If
State apportionment is to be used, States should be advised that in
order to process the airport's application, FAA will need an
affirmative, written advisory that the state supports the tower in the
State airport capital plan and agrees that State apportionment funding
should be used in specific funding amounts. Regions are reminded that
under current law neither nonprimary entitlements nor State
apportionment may be used in a multiyear grant. (There is a provision in
the pending reauthorization legislation to permit multiyear authority
for nonprimary entitlements, but not state apportionment.) For the time
being, therefore, airports using nonprimary entitlements or state
apportionment must wait until there is sufficient funding available for
the project. The airport must also agree to fund at least 10 percent of
the project and the maximum Federal participation is \$1.1 million
(Again, there is a proposed reauthorization provision that would
increase this amount to \$1.5 million.)

**RETROACTIVE TREATMENT**

The new statute also provided for the retroactive funding of contract
control towers and equipage if the tower was constructed or the
equipment acquired after October 1, 1996. In order to take advantage of
this retroactivity, the airport must demonstrate that statutory
requirements such as minimum wage requirements and Veteran's preference
were met in the construction or improvement of the control tower. In
addition, the provision did not waive any other statutory requirements
such as environmental reviews, Disadvantaged Business Enterprise,
professional services contracting and requirements under 49 CFR Part 18,
the regulations covering grant programs including competition
requirements. Only funds directly apportioned to a sponsor (passenger,
cargo and nonprimary entitlements) may be used under this provision.
State apportionment funding may not be used.

# PRIORITY

For many years, FAA has had well-established procedures used by airmen
operating at airports without towers. Therefore, for the purposes of the
national priority rankings, these projects should be viewed as a
capacity/building/construction (CA BD CO). In the event that the airport
wishes to justify the project as being primarily a safety project,
please advise APP-520 which will consult with ATP-140.

Finally, airport sponsors should be advised that the siting,
construction and equipage of the tower will be solely their
responsibility and that the FAA will generally have only a review and
approval role. If there is a need to install any special FAA equipment,
FAA will provide, install and maintain such special equipment.

[03-3.2 AWOS Benefit-Cost Analysis -- Mark Beisse (202)
267-8826]{.underline}.

Paragraph 572 of the AIP handbook describes the requirement of a
benefit-cost analysis for automated weather observing system projects at
airports with less than 10 based aircraft. However, with recent
experience using the handbook and programming aviation weather projects,
we have decided to make the AWOS equipment eligible at any eligible
airport regardless of the based aircraft numbers. The principle reason
for this change is that it is not cost effective to maintain the
benefit-cost model for the number of airports that would be subject to
the former benefit-cost policy. Regions should consider the type and
cost of an appropriate AWOS depending on the prevailing weather
conditions at the airport and the level of aeronautical activity in its
project justification. There is no change in the priority rating system
for this equipment.

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| ![](media/image2.png){width="1.9in"    |                             |
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| Barry L. Molar                         |                             |
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