§ 86.74 How do I determine the useful life of a BIG-funded facility? You must determine the useful life of your BIG-funded project using the following: ( a ) You must give an informed estimate of the useful life of the BIG-funded project in your grant application, including the information in Steps 1, 2, and 3, in paragraphs (a)(1) through (3) of this section, as applicable. ( 1 ) *Step 1.* Identify all capital improvements that are proposed in your project. We may reject your application if you do not include an estimate for useful life. ( i ) Use the definition of *capital improvement* at § 86.3.
( ii ) The capital improvement must be a structure or system that serves an identified purpose.
( iii ) Consider the function of the components in your application and group those with a similar purpose together as structures or systems.
( iv ) All auxiliary components of your project (those that are not directly part of the structure or system) must be identified as necessary for the continued use of an identified capital improvement. For example, a gangway is not part of the dock system, but is necessary for access to and from the dock system, so it could be included in the useful life of the dock system.
( v ) Attach an auxiliary component as identified at paragraph (a)(1)(iv) of this section to only one capital improvement. If it supports more than one, choose the one with the longest useful life.
( vi ) Examples of structures or systems that could potentially make up a single capital improvement are a: Rest room/shower building; dock system; breakwater; seawall; basin, as altered by dredging; or fuel station.
( 2 ) *Step 2.* Estimate the useful life of each capital improvement identified in Step 1 in paragraph (a)(1) of this section. ( i ) State how you determine the useful life estimate.
( ii ) Identify factors that may influence the useful life of the identified capital improvement, such as: Marine environment, wave action, weather conditions, and heavy usage.
( iii ) Examples of sources to obtain estimates for useful life information when developing your application are: Vendors, engineers, contractors, or others with expertise or experience with a capital improvement.
( 3 ) *Step 3.* If you are asking us to consider additional points for a physical component, technology, or technique under the criterion at § 86.51(c) that will increase the useful life, you must describe in your application: ( i ) The capital improvement or component that you will apply the criterion at § 86.51(c) to;
( ii ) The expected increase in useful life;
( iii ) The sources of information that support your determination of an extended useful life; and
( iv ) A description of how you expect the useful life will be increased.
( b ) After you submit your application, but before we award your grant, you must: ( 1 ) Confirm the useful life for each capital improvement using a generally accepted method.
( 2 ) Provide any additional documents or information, if we request it.
( 3 ) Consult and obtain agreement for your final useful life determinations at the State or Regional level, or both.
( 4 ) Revise your application, as needed, to include the final useful life determination(s).
( c ) If we find before we award the grant that you are unable to support your determination of an extended useful life at § 86.51(c), we will reduce your score and adjust the ranking of applications accordingly.
( d ) You must finalize useful life in your grant by one of the following methods: (i) State several useful-life expectations, one for each individual capital improvement you identified at paragraph (a)(1) of this section; or (ii) State a single useful life for the whole project, based on the longest useful life of the capital improvements you identified at paragraph (a)(1) of this section.
( e ) States may decide to use only one of the methods described at paragraph (d) of this section for all BIG-funded projects in their State.