Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

Federal-aid Program Overview

Project Delivery

A Process from “Cradle to Grave”

Federal-aid projects typically follow 6 fundamental phases that lead to 

successful project delivery

You wouldn’t think of starting out on a trip 

without knowing where you were going. The 

same is true for local public agencies (LPAs) as 

they consider a project of any scope. 

Think of a transportation project being 

developed under the Federal-aid highway 

program as an extended road trip with a series 

of required waypoints. It's a good idea to have a 

map that shows where you are going and how to 

get there. This presentation will provide you a 

sound understanding of the phases or building 

blocks and the major approval milestones. 

America has the best transportation system in 

the world where safety is the top priority. The 

Federal Highway Administration (FHWA) values 

the public trust of delivering quality projects and 

protecting the civil rights of everyone who is 

affected. Understanding this program and how 

projects are advanced will help to preserve this 

trust and continued confidence. 

Projects that use Federal-aid Highway Program 

funds typically follow a series of six fundamental 

phases of development. Each phase embodies 

the building blocks, leading to successful project 

delivery for your LPA. The first phase is 

planning. Your transportation needs and ideas 

are conceptualized during the planning phase. 

Next, building on the decisions initiated in 

planning, the project moves forward through the 

five remaining phases of development from 

environmental studies, design, right-of-way, 

construction, and ending at maintenance and 

operation. 

As the project progresses through each of the 

six phases, your LPA also must take into 

account three major approval milestones: 

environmental document approval; plans, 

specifications and estimates; and closing the 

project. Obtaining approval at each of the 

milestones advances the project. This video 

presents these core elements and approval 

steps to help achieve success in your project—

in terms of staying on schedule, ensuring 

construction quality, managing costs, and 

complying with Federal regulations—so that you 

can receive Federal-aid funds for the project.
Federal-aid Essentials for Local Public Agencies

Let us first discuss the core elements of the 

program before moving on to challenges and 

solutions related to the success of your project.

Project delivery within the Federal-aid highway 

program is represented as a series of 

interconnected phases that can affect each 

other.

A project is born in the planning 

phase. Planning includes identifying the initial 

scope of the project, which is based on regional 

transportation improvement programs, road 

conditions, and other considerations. If your LPA 

will use Federal-aid funds for a project, it is 

important to know that the project must be 

included in the approved State Transportation 

Improvement Program, otherwise known as the 

STIP. All projects in the STIP are identified 

activities in a long-term planning document 

referred to as the Long Range Transportation 

Plan or the LRTP. Once a project is in an 

approved STIP, the project can be considered 

for Federal-aid funding.

The second phase is 

environmental. Within the environmental phase, 

the NEPA process is a major part of the overall 

phase. NEPA refers to the National 

Environmental Policy Act and often is the first 

activity that uses project funds. This phase 

evaluates the project's impact on the human and 

natural environment and may even require 

consideration of alternatives. The NEPA process 

ultimately provides the project purpose and 

need, the “conceptual” location and design, and 

approval of the selected alternative based on the 

scope of work for the transportation project. 

Typically, no more than 30 percent of the project 

design is completed before the environmental 

phase is complete. 

The third phase is design. This 

phase is when the details necessary to construct 

the project are defined. At the end of the design 

phase, the plans, contract specifications, and 

estimated costs package is assembled. This 

PS&E package is submitted for review and 

approval before the project can move into 

construction. A well developed PS&E helps to 

make sure you receive good bids and that the 

project can be constructed without significant 

problems. 

The fourth phase is right-ofway. Right-of-way may include the purchase of 

property or land use agreements that is needed 

to construct the project. If any right-of-way is 

needed for the project, it must be acquired in 

accordance with the Uniform Relocation 

Assistance and Real Property Acquisition 

Policies Act of 1970, otherwise known as the 

Uniform Act, even if Federal funds are not 

needed until construction. Coordination with 

utilities and railroads also occurs during this 

phase. 

Construction is the fifth phase 

and is when the project is built. This phase 

includes physical construction by the contractor

and administration of the contract and quality 

assurance by the local agency.

The sixth and final phase is 

maintenance and operation of the constructed 

facilities. This phase includes opening the 
Federal-aid Essentials for Local Public Agencies

project for use by the public and making sure 

that it remains in good working order. 

Generally, project delivery is broken down into 

pre-award and post award activities. Pre-award 

includes the first four phases of planning, 

environmental, design, and right-of-way, while 

post-award includes construction, contract 

administration, and maintenance – sometimes 

referred to as system preservation – and 

operations. 

Now that we have an idea of how a project 

moves through the core elements, let’s highlight 

the three major project approval milestones: 

NEPA approval, PS&E approval and final 

acceptance of the constructed project.

• The first milestone to complete is NEPA. 

This establishes the project purpose and 

need, the “conceptual” location and design, 

and approval of the selected alternative 

based on the scope of work for the 

transportation project. Environmental 

commitments may be necessary to mitigate 

the impacts anticipated from constructing 

the project.

• The second milestone is the approval of the 

PS&E package, which permits authorization 

for physical construction. Projects must not 

be advertised for bids unless you have 

received approval from your oversight 

agency. 

• Finally, the third milestone is closing out the 

project, which incorporates final acceptance 

and final vouchering for the project. Closing 

out the project is when your responsibilities 

transition to maintaining and operating the 

facility.

Understanding the cradle-to-grave process will 

help you avoid unnecessary delays to your 

project.

So how do you stay on the route to success? 

By understanding how each of the six phases of 

your project are related within this cradle-tograve process, you can avoid unnecessary 

delays to your project delivery schedule, growth 

in costs, or even affecting the public’s trust. A 

solid understanding of the basic sequential 

activities common to delivering all transportation 

projects will reduce your risk of jeopardizing the 

use of Federal aid funds and make your journey 

an efficient and productive one.
Federal-aid Essentials for Local Public Agencies

The content of this 

document is not a 

substitute for 

information obtained 

from State departments 

of transportation, 

appropriate FHWA 

Division Offices, and 

applicable laws. 

Scenarios have been 

simplified for emphasis 

and do not necessarily 

reflect the actual range of 

requirements applicable 

to the scenario or this 

topic. This document

was created under 

contract number

DTFH61-11-D-00024 by 

the Federal Highway 

Administration, U.S. 

Department of 

Transportation, and is 

offered to the public to 

heighten and focus 

awareness of Federal-aid 

requirements within the 

local public agencies 

community and 

reinforces the 

importance of these 

necessary policies, 

procedures, and 

practices.

This companion resource 

is the script content for 

the video production of 

the same name. 

Additional Resources

• Information on broad range of highway engineering topics

http://www.fhwa.dot.gov/engineering/

• Information about transportation and environment policy guidance, best 

practices and training

http://environment.fhwa.dot.gov/index.asp

• Guidance on provisions, administrative procedures, and policies for Federalaid design and construction contracts

http://www.fhwa.dot.gov/programadmin/contracts/coretoc.cfm

• Link to transportation planning resources for Federal-aid projects

http://www.fhwa.dot.gov/planning/

• Link to design resources for Federal-aid projects

http://www.fhwa.dot.gov/design/

• Link to construction and contract administration resources for Federal-aid 

projects

http://www.fhwa.dot.gov/construction/