# Presentation: 736838

## New PolicyReimbursable AgreementMarch 9-10, 2005

- Mike Nicely, Manager Texas Airport Development Office, ASW-650
- Tim Lawler, Director, Office of Financial Management, AFM-1
- David Suomi , Manager, Airport Improvement Program, APP-520
-  Nguyen Ly, Airport Integration Engineer, ATO/CSA

## Reimbursable Agreements

- F&E appropriation /Corporate Work Plan dictates projects and resources to be accomplished in fiscal year
- Appropriate when the Project Sponsor plans a project that will impact an _existing_ FAA facility
- Project Sponsor can be:  State, County, City, Airport Authority, Airline or Private Citizen
- A written agreement executed by a Contracting Officer of the FAA and a project sponsor
- The FAA provides material and / or services.
- The project sponsor provides reimbursement to the FAA for actual expenses

## New PolicyReimbursable AgreementMarch 9, 2005

**David Suomi , Manager, Airport Improvement Program, APP-520**

## Executive Branch Policy Impact 

- OMB Budget guidance (A-11) requires agencies to cover obligations on reimbursable agreements with the public by:
- Collecting advances
- Using working capital
- FAA past practice
- Never required advances until recently
- Used appropriated funds to front customers
- Collected monies after work was completed

## Impact of using FAA funds

- $8+M actual shortfall in FY2003 Facilities and Equipment appropriation
- Creates a potential to overspend appropriations (anti-deficiency)

## Funding Example 

## Summary of Recent Policy Change 

- Advance requirements
- $25K or less – full
- >$25K for small business/airport – 1-month
- >$25K for other business/medium hub or large airport – 3-month
- Advance computation based on average monthly cost
- May waive overhead when:
- Airport grant is a funding source
- FAA receives an asset
- Sponsor pays thru lease-to-own arrangement
- Sponsor donates local funds for installing FAA-owned equipment

## New PolicyReimbursable AgreementMarch 9, 2005

**Nguyen Ly, Airport Integration Engineer, ATO/CSA**

##  Central Service Area Technical Operations

##  Central Service Area Technical OperationsEngineering Services

- Responsible for modernization of the National Airspace System (NAS) Facilities and Equipment (F&E).
- Planning, Design, Construction and Installation.
- Navaids, Surveillance, Communications, Weather Air Traffic Control Towers and Enroute Centers.

## Airport Integration Engineers

- The Liaison to external customers and other FAA division when dealing with impacts to FAA facility operations.
- Southwest Region is divided into three sections as follow:
- Nguyen Ly		Texas
-     phone: 817-222-4291
- Victoria Borrego   	Arkansas, Louisiana, Oklahoma
- 	phone: 817-222-4553
- George McGee 		New Mexico, TxDOT
- 		phone: 817-222-4576

## Typical Reimbursable Agreement (RA) Process

- Project
- Identification

- Scope
- Development

- Develop
- Cost Estimate
- & Project
- Material List

- Review
- Preliminary
- Reimbursable
- Agreement

- Process
- R.A
- Internally

- Process
- R.A.
- Externally

- ADO
- Sponsor
- AIE

- AIE
- Platform(s)
- Program Manager
- Engineer
- Sponsor

- AIE
- Platform(s)
- Program Manager
- Engineer

- AIE
- Sponsor
- Platform(s)

- Prepare
- R.A.

- AIE
- Waiver OH
- Security

- AIE
- ASW-50
- ASW-7
- ASW-700
- ASW-40
- ASW-470/SMO/SSC

- ASW-50
- Sponsor

- Project
- Authorization
- Development
- (advance Payment
-  received)

- Distribute
- P.A.

- R.A.
- “Handoff”

- Implementation
- of
- R.A. Scope

- Capitalization/ closeout

- R.A.
- Amendments

- AIE
- ASW-42
- program analyst
- ABU-300

- Program Analyst

- AIE
- Platform(s)

- Platform(s)

- AIE
- Sponsor

- AIE
- Platform
- Program Analyst
- ASW-50
- ASW-42
- Sponsor

**REIMBURSABLE AGREEMENT DEVELOPMENT**

**R.A. APPROVAL/ COORDINATION**

**Project Authorization  Processing**

**Project Implementation phase**

**Close out**

## Reimbursable Agreement Development

- Project Sponsor sends letter to FAA with the following information prior to the start of design:
- Type of funds being used for the project
- Detail scope of work
- List of FAA facilities impacted
- Name / Title / Address / Phone Number of:
- Sponsor’s Technical Representative
- Person with Authority to sign reimbursable on behalf of the sponsor
- Billing
- Coordination/ Approval

**Notes:**
Need to stress the Corporate work plan to the sponsor on next several slides

## Reimbursable Agreement Authorization/ Implementation

- FAA will collect the advance after both parties sign the agreement and before incurring any obligations (labor and non-labor).
- FAA engineering Design/ Review
- Construction Oversight
- Equipment Installation, Integration, check out
- Acceptance, Commission, close out

## Typical Reimbursable Agreement 

_**Phase I:**_ AIE Initiates a limited Reimbursable Agreement
- Help in the design and development
- Covers cost for developing cost estimates,  scope of work, site survey, engineering review plans.
_**Phase II:**_ AIE initiates a full Reimbursable Agreement
- Project scope for phase II, estimated costs for actual implementation of project and roles and responsibilities between Sponsor and FAA determined.

## Adjustments to the Estimate

- FAA will review estimated cost in each  agreement periodically.
- Adjustments to the estimate and average monthly cost will be accomplished through a modification to the agreement.

## New PolicyReimbursable AgreementMarch 9, 2005

- Mike Nicely, Manager Texas Airport Development Office, ASW-650** **

## Airport Program

- For work funded through an Airport grant, advances are considered allowable costs for which grantees can request reimbursement.
- Sponsor can apply for exemption from overhead rates:
- AIP is a funding source
- FAA will acquire an asset at the end of process
- FAA will reimburse the sponsor through Lease payments
- Installation of FAA owned/acquired asset

## Wrap-up

- Q&A session