January 26, 2022

RAIL

MOVING AMERICA FORWARD

Presented by:

Ryan Arbuckle • Mariam Ouhamou 

Federal-State Partnership for Intercity Passenger Rail Grant Program: 

Major Capital Projects, LOIs/PFAs, Domestic Sourcing Plan
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FRA Presenters

Ryan Arbuckle

Transportation Industry 

Analyst, Rail Program 

Policy and Performance 

Division

Mariam Ouhamou

Supervisory Grants 

Management Specialist,

Grant and Loan Program 

Development Division
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• Overview of Capital Project Guidance

o Public Comments Received

o Key Definitions Summary

o Project Lifecycle Stages

o Next Steps

• Letters of Intent (LOIs)/Phased Funding Agreements (PFAs)

• Domestic Sourcing Plan

• Question & Answer

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Agenda
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Overview of Capital Project Guidance
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Overview of Capital Project Guidance — Public Comments Received

https://www.federalregister.gov/documents/2023/01/12/2023-00508/guidanceon-development-and-implementation-of-railroad-capital-projects

FRA received nine 

comments on draft 

guidance―eight of 

which were generally 

supportive and one that 

was out of scope
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Major Project* 

• A railroad capital project with a capital cost estimate equal to or greater than 

$500 million and at least $100 million in federal assistance; or

• A railroad capital project that FRA determines to be a Major Project 

o FRA considers complexity of the project and how additional procedures for project 

development/management will benefit the agency or the Project Sponsor 

Capital Cost Estimate

• Estimate of the cost to implement the capital project inclusive of the project 

development stage through completion of the construction stage

Project Management Plan

• Describes how the capital project will be implemented, monitored, and 

controlled to help the Project Sponsor effectively, efficiently, and safely deliver 

the project on time, within budget, and at the highest appropriate quality

Financial Plan

• Reflects the capital project’s scope, schedule, cost estimate, and funding 

structure, based on the capital cost estimate

Overview of Capital Project Guidance — Key Definitions Summary

*Same as “Major Capital Project,” as outlined in the Federal-State Partnership NOFOs. 

A-Z
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Overview of Capital Project Guidance — Project Lifecycle Stages

• Multistate 

Regional Planning

• Corridor Planning

• Project 

Identification

• NEPA

• Preliminary 

Engineering

• Cost Estimate

• Budget and 

Schedule

• Project 

Management Plan 

& Financial Plan

• Procurement 

Strategy

• Stakeholder 

Agreements

• Final Engineering

• Final Budget and 

Schedule

• Procurement 

Process

• Project Agreements

• Refined Project 

Management Plan 

& Financial Plan

• Right-of-Way 

Acquisition

• Early Work and 

Relocations

• Project Use 

• Project Benefits 

Assessments

• Project Lookback 

Analysis 

Operation &

Maintenance

Systems

Planning Final Design Construction ProjectDevelopment

• Purpose & Need

• Project Planning

• Conceptual 

Engineering

• Consideration of 

Alternatives

• Stakeholder 

Engagement

Project

Planning

• Capital 

Construction

• Equipment 

Acquisition

• Utility 

Construction

• Financing Costs

• Construction 

Oversight

• Testing and 

Commissioning

NEPA: National Environmental Policy Act, or environmental review
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What should Project Sponsors do?

• Review the guidance, especially those sponsors with Major Projects

How will the Capital Project Guidance be Used?

• FRA may use the final guidance to inform its grant application reviews and 

subsequent decisions

• FRA may require compliance with the guidance as part of grant agreements 

funding railroad capital projects

Where do we go from here?

• FRA is working to develop both internal and external training related to the 

implementation of the guidance and will post links to the webinar sessions 

on the FRA website when available: https://railroads.dot.gov/grantsloans/fra-rail-program-delivery-webinar-series-grants-loans

Overview of Capital Project Guidance — Next Steps
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Letters of Intent (LOIs)/ 

Phased Funding Agreements (PFAs)
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• LOIs and PFAs are only allowed under the Federal-State 

Partnership (FSP) Program (both Northeast Corridor and 

National)

• FRA may issue Letters of Intent (LOI) or Phased Funding 

Agreements (PFA) to FSP grantees proposing Major Capital 

Projects*

o Being a Major Project is a prerequisite for requesting an LOI or PFA

• Applicants proposing Major Capital Projects can, as part of their 

application, request an LOI or PFA

• Additionally, FRA may independently determine that a project is 

appropriate for an LOI or PFA

LOIs/PFAs under the Federal-State Partnership Program

Overview of Major Capital Projects

*Same as “Major Project,” as outlined in the Capital Project Guidance.
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Final Design Construction Systems

Planning

• An LOI is a letter from FRA to a grantee announcing “an intention to obligate” an amount to a 

Major Capital Project from future budget authority

• LOIs are not binding obligations

• In issuing an LOI, FRA may outline conditions and/or define readiness thresholds that the applicant 

may use to inform future funding requests for FSP-National funds

Letter of Intent (LOI)

Overview of Major Capital Projects

Letter of Intent (LOI)

Operation &

Maintenance

Project

Development

Project

Planning
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Project

Development

Systems

Planning

• A PFA is a grant agreement under the FSP Program that obligates funding from available funds and makes a 

contingent commitment to obligate future funds when they become available

• FRA may enter into a PFA with an applicant for highly rated Major Capital Projects under the FSP Program

• A PFA shall:

(1) establish the terms of participation by the Federal Government in the project;

(2) establish the maximum amount of Federal financial assistance for the project;

(3) include the period of time for completing the project, even if such period extends beyond the period for which 

Federal financial assistance is authorized; and

(4) make timely and efficient management of the project easier in accordance with Federal law.

Phased Funding Agreement (PFA)

Operation &

Maintenance

Project

Planning Construction Project

Development

Systems

Planning

Project

Planning

Phased Funding Agreements (PFA)

Final Design
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For projects along the Northeast Corridor (NEC)

• Funding for Final Design/Construction or Construction 

Stage activities on the NEC Inventory* that are 

scheduled to enter the Final Design or Construction 

Stages within the Inventory Period, must provide:

o An annualized budget in year of expenditure 

dollars,

o Anticipated annual Federal funding requests 

from this grant program,

o Anticipated future non-Federal match, and

o Total project cost through completion of the 

Construction Stage

FRA requires these above elements to properly evaluate 

the project for a PFA. PFA applicants must include proposed 

milestones by which FRA can measure progress.

Additional Requirements for Major Projects

*https://railroads.dot.gov/elibrary/nec-inventory
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FRA will conduct a grant application review process, as follows:

LOI/PFA Consideration within the Review and Grant Selection Process

01 03 04 05

APPLICATION 

SCREENING

02

EVALUATION 

& RATING

REVIEW HIGHLY 

RATED MAJOR 

CAPITAL PROJECTS 

FOR LOI/PFA*

RECOMMEND 

INITIAL SELECTION 

OF PROJECTS

SELECT 

RECOMMENDED 

AWARDS

*As applicable, to determine whether either is appropriate for the project based on project-specific 

characteristics, funding availability, and statutory and policy criteria stated in this NOFO

01

APPLICATION 

SCREENING

02

EVALUATION 

& RATING

05

SELECT 

RECOMMENDED 

AWARDS

04

RECOMMEND 

INITIAL SELECTION 

OF PROJECTS
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Domestic Sourcing Plan
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For FRA-funded Projects—the steel, iron, 

construction materials, and manufactured goods 

used in the project must be produced in the 

United States

FRA Buy America applies to materials purchased 

with FRA funds and with non-Federal funds

Consider FRA Buy America requirements in 

project planning, design, and budget

Include FRA Buy America requirements in all 

procurement documents and obtain any 

necessary certifications to document compliance

FRA encourages applicants who might seek a 

waiver to develop and submit a domestic sourcing 

plan as part of their application

FRA Buy America

FRA Buy America includes new requirements enacted by the Build America, Buy America (BABA) Act and applies 

to all FRA grant programs

https://railroads.dot.gov/legislation-regulations/buyamerica/buy-america

Waivers are granted only in limited circumstances and can result in significant delay
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Detail on the extent to which the systems covered by the waiver are 

to be imported and the extent to which such systems can be sourced 

domestically

Explanation of how the recipient anticipates making use of domestic 

sources for maintenance and replacement of initially imported goods 

and materials used in the project

Explanation of the number of domestic jobs, temporary and 

permanent, that will be generated by the project and outline a plan 

to transition any foreign labor responsibilities to domestic jobs

FRA Buy America — Domestic Sourcing Plan

The domestic sourcing plan should include:
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QUESTIONS?
Contact Us

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1200 New Jersey Avenue, SE

Washington, DC 20590

Connect with us USDOTFRA

FRA-NOFO-Support@dot.gov

FRA Competitive Discretionary Grant Programs

Webpage https://www.fra.dot.gov/grants