# Presentation: 540179

## Changes in Reimbursable Agreements

- 30th Annual Airports Conference

- V Thompson & R Farrell, Lead Planners

- March 7, 2007

## Eastern Service Center

## NAS Planning and Integration – Lead Planners

- Liaison for the Eastern Service Center to Airports Division, Airport Sponsors, and State Aviation
- Responsible for Integration of  Sponsors’ current and future development plans with FAA plans for Airspace and NAS Facilities and Equipment
- Coordinate and Negotiate Reimbursable Agreements
- Point of contact for the Reimbursable Agreement for the life of the Agreement

## Lead Planner Boundaries

**Lead Planner Boundaries**

## WHY FAA MUST ENTER INTO REIMBURSABLE AGREEMENTS

**Reimbursable Agreements ensure that: **
- FAA and sponsor activities are clearly defined.
- Work on NAS facilities is performed in accordance with regulatory requirements.
- The safety and efficiency of the NAS is maintained.
- The impact to facility life cycle costs (long term) is minimized.
- The highest level of FAA expertise and experience is available to help solve project problems and challenges.

## REIMBURSABLE PROGRAM

- Project Development
**Relocation, modification, or replacement of existing FAA facilities**
- Need is initiated by non-federal entity (private entities, state/local governments, airport owners, etc.) or other federal agency.
- Scope of work is defined by ATO.
- All FAA costs to be reimbursed by Project Sponsor.

## REIMBURSABLE PROGRAM

- Project Development *(continued)*
**Establishment of non-Federal Facility for FAA Takeover**
- Requires Project Sponsor to formally request FAA takeover.  This request should be made in advance of project execution so that FAA requirements can be addressed as part of project implementation.
- If takeover is approved, ATO requests a Quality Control role via a reimbursable agreement.  The QC work helps insure that ATO needs are met so that the takeover can take place with due haste.

## REIMBURSABLE PROGRAM

- Project Development *(continued)*
**Establishment/Relocation of a non-Federal ATCT**
- Required to fund AFTIL siting, if federal funds are involved.
- Required to fund relocation of FAA data processing equipment.
- Required to fund establishing/relocating telecommunication interconnection with the FAA NAS.
- Required to fund design review/approvals if federal contract controllers are used.

## REIMBURSABLE AGREEMENT

- A written agreement executed by an authorized representative of the FAA and a project sponsor.
- The project sponsor provides “reimbursement” to the FAA for expenses.
- The FAA provides material and/or services.
- Appropriate when the Project Sponsor plans a project that will impact an existing FAA facility.
- Project Sponsor can be: Federal Agency, State, County, City, Airport Authority, Airline or Private Entity*. *

## Policy Changes - Background

- The Office of Management and Budget (OMB) requires agencies to collect an advance when they enter into a reimbursable agreement with non- Federal entities (Public).
- OMB does not consider receivables from the Public as a budgetary resource until collected.
- Collection of an advance is to remedy the resulting shortfall in the budgetary resource.

## Changes in Reimbursable Agreement Policy

- ATO Finance Policy requires advance payment in _full_ prior to incurring any obligations.
- Overhead rate of 26.5% to be included on _all_ new and amended agreements.
- Period of performance for each agreementcannot exceed 5 years.
- Policy changes were effective October 31, 2006.

## Reimbursable Agreement Process

**Project Sponsor sends letter to NAS Planning and Integration (NPI) with the following information:**
- Scope of work
- List of FAA facilities impacted
- Proposed schedule
- Name / Title / Address / Phone Number of:
- Sponsor’s Technical Representative
- Person with Authority to sign reimbursable on behalf of the sponsor
- Person who should receive project bills

## Reimbursable Agreement Process

*After receiving the letter, NPI may....*
- Initiate a Limited (Phase I) Agreement
- FAA may request a meeting or teleconference
- Covers cost for developing cost estimates, site survey, scope of work, etc.
- Sponsor signs and returns the agreement with advance payment
- Limited Agreement process is approximately 3 months

## Reimbursable Agreement Process

**NPI develops the full scope of the Reimbursable Agreement – time required varies.**
- FAA may request a meeting or a teleconference
- Depends on work requirements
- Depends on equipment capabilities (may require replacement)
- Depends upon impact to FAA work plan
- Depends upon integrating factors such as procedures, flight check, frequency approvals, etc.

## Reimbursable Agreement Process

- Cost Estimates - takes up to 30 days to develop once scope is defined.
- Internal & External Coordination for concurrence – takes approximately 45 days once scope and cost estimates are defined.
- Sponsor signs final agreement and returns the agreement with advance payment; approval time varies per Sponsor.
- Project Authorization thru Washington Headquarters takes up to 6 weeks.
- Full Reimbursable agreement process is approximately 6 months.

## Reimbursable Agreement Process

- Notify NPI at least 6 months prior to expected Engineering Services organization involvement.
- Engineering Services cannot incur any obligations (labor and non-labor) prior to receipt of Project Authorization from FAA Budget Office.
- If sponsor’s proposal includes non-Federal facilities, sponsor will be advised to contact the ATO Non-Fed Coordinator.

## After Receipt of Project Authorization

**Project Implementation**
- Requires careful integration of FAA and Project Sponsor Activities before developing a project schedule (i.e., a completion target date should not be established until this step is done).
- Communication between FAA and Project Sponsor is essential for success.  Recommend periodic meetings between FAA and Project Sponsor to help keep implementation activities on track.
- Typically, FAA prefers for project sponsor to perform civil construction with FAA oversight.

## INTEGRATING AIRPORT DEVELOPMENT

- Planning
**ALPs**
- Existing/Proposed and future sites for NAVAIDs, RADAR, Communications, Weather and ATCT facilities should be submitted via the ALP process.
- All ATO comments should be resolved as part of the project planning process.
**Joint Planning Conferences (JPCs)**
- Periodic Updates for short and long range airport development including F&E projects.
- Good to have local AT, local Tech Ops, FPO, Flight Standards, non-Fed coordinators and Planners for input.

## INTEGRATING AIRPORT DEVELOPMENT

- Planning (continued)
**Other Meetings**
- Required for planning the relocation of existing FAA facilities.
- Shall include applicable FAA representatives from ATO, FPO, Airports, and Flight Standards.

## OTHER PLANNING CONSIDERATIONS

- Airport Development Projects must be Identified on an Approved ALP
- Environmental Studies should include impacted FAA Facilities
- Development of Project Schedules
- Should** **_**not**_** **be developed until impacts to FAA facilities and cabling have been identified and appropriate FAA representatives (local, non-Fed coordinators, FPO, ATO Planners, Flight Standards, etc) have been consulted.
- Need to give realistic consideration to the impact on FAA organizational resources.

## OTHER PLANNING CONSIDERATIONS

- All Projects involving Relocation, Modification and/or Replacement of FAA facilities must be sited and constructed using _current_ FAA standards
- Recent Updates Concerning Procedures and Flight Check
- All costs for establishing and maintaining non-Fed NDBs must be paid for by the Project Sponsor.
- ILS burn-in is required before commissioning CAT II/III Procedures.
- Flight Check is required for PAPIs on IFR runways or if circling is authorized.

## OTHER PLANNING CONSIDERATIONS

- ATO Policy Concerning VASI Relocations
- ATO does not support relocation of FAA VASIs – ATO will decommission.
- If given enough time, ATO will try to obtain PAPI equipment for installation via the F&E project development process.  If PAPI equipment is obtained, the Project Sponsor is responsible for cost of establishing the PAPI.  FAA will maintain the facility at FAA cost.
- Underground Cables
- If airport development causes a need to establish or replace an existing cable link, fiber optics transmission system (FOTS) requirements must be considered as part of project scope.

## More Information

- FAA Order 2500.35C, Reimbursable Agreements for Services and Materials Provided by the FAA
- FAA Order 2500.42D, Administrative Funds Control
- FAA Notice N 2500.81, Advance Payment Requirements for Reimbursable Agreements with Non-Federal Entities (Public)
- FAA CFO Policy Letter dated October 27, 2006, Financial Services Policy Affecting Reimbursable Agreements
- AC 150/5300-7B, FAA Policy on Facility Relocation Occasioned by Airport Improvement or Change

## We’re Here!

- If you have questions about how to proceed with accomplishing projects at your airports, contact the NPI Lead Planner for information:
- Denise Knight, North Team Manager
- 	Richard Farrell (404) 305-6298    Valerie Thompson (404) 305-6293
- 	Guy Hall (803) 822-4429 	         Willie Weatherly (404) 305-5573
- Send Correspondence to:
**	****	****	****Federal Aviation Administration**
**	****	****	****ATO/P&R/NAS Planning and Integration**
**	****	****	****PO Box 20636**
**	****	****	****Atlanta, GA 30320**