56892 Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Notices 

requirements that FTA grantees are held 

to in addition to the program-specific 

requirements and guidance provided in 

the circular. We revised this chapter to 

alphabetize the provisions, and we 

moved the Presidential Coin Act to this 

chapter. 

Two commenters asked FTA to clarify 

whether the public hearing 

requirements described in the section, 

‘‘Public Hearing Requirements’’ apply to 

projects that are categorical exclusions 

under NEPA. The circular states that 

NEPA public hearing requirements are 

sufficient to meet the requirements of 49 

U.S.C. 5323(b), which requires public 

involvement for any capital project that 

will ‘‘substantially affect a community 

or the public transportation services of 

a community.’’ Therefore, whether or 

not NEPA public hearing requirements 

apply, the provisions of 49 U.S.C. 

5323(b) require public involvement for 

most capital projects. In response to 

comments, we have edited this section 

to clarify the requirements. 

We have revised the section, 

‘‘Environmental Reviews,’’ since each 

chapter contains specific information 

about environmental requirements that 

apply to specific types of projects, and 

an extensive discussion in this chapter 

is repetitive and unnecessary. One 

commenter suggested that in the 

section, ‘‘Clean Air Act,’’ we include as 

an appendix the list of exempt transit 

projects in the EPA regulation that do 

not require any analysis. We decline to 

include this list, but we have included 

the direct regulatory citation for this 

information. 

We have updated the section, 

‘‘Charter Bus Services’’ to reflect the 

new regulation on charter service. (73 

FR 2326, Jan. 14, 2008). 

G. Appendices 

The appendices are intended as tools 

for developing a grant application. 

Appendix A specifically addresses steps 

and instructions for preparing a grant 

application, including pre-application 

and application stages. Appendix A also 

includes an application checklist and 

information for registering with the 

Electronic Clearing House Operation’s 

(ECHO’s) electronic payment system. 

One commenter suggested we include 

information as to where one can find the 

TEAM User Guide; we have included 

the hyperlink to the Web site for this 

information. One commenter suggested 

that FTA request planning justification 

information in the ‘‘project description’’ 

section of TEAM. While this 

information is not required in the 

project description, we note that 

recipients must include the date and 

page number of the most recently 

approved Statewide Transportation 

Improvement Plan (STIP) for the 

projects listed in the application. 

Appendix B provides budget 

information, including several sample 

budgets. Appendix C contains samples 

of an Authorizing Resolution, a Fleet 

Status Report, Like-Kind Transaction for 

Mid-life Sale of a Transit Bus, an 

Opinion of Counsel, a Project Milestone 

Schedule, and Proceeds from the Sale of 

Assets. Appendix D contains contact 

information for all of FTA’s regional and 

metropolitan offices, and a new 

Appendix E contains a listing of all legal 

citations found in the circular. 

With the substantive exceptions noted 

in the chapter-by-chapter analysis 

above, as well as non-substantive and 

clarifying edits, FTA adopts the final 

circular as proposed. 

Issued in Washington, DC, this 22nd day 

of September, 2008. 

James S. Simpson, 

Administrator. 

[FR Doc. E8–22840 Filed 9–29–08; 8:45 am] 

BILLING CODE 4910–57–P 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

[Docket No. FTA–2007–29122] 

Grant Management Guidance 

AGENCY: Federal Transit Administration 

(FTA), DOT. 

ACTION: Notice of Availability of Final 

Circular. 

SUMMARY: The Federal Transit 

Administration (FTA) has placed in the 

docket and on its Web site (http:// 

www.fta.dot.gov) guidance in the form 

of Circular 5010.1D, Grant Management 

Requirements, which circular replaces 

FTA’s prior Grant Management Circular 

5010.1C. Circular 5010.1D includes 

information pertaining to new and 

existing FTA programs; incorporates 

provisions of the Safe, Accountable, 

Flexible, Efficient Transportation Equity 

Act: A Legacy for Users (SAFETEA–LU); 

discusses the circumstances under 

which a grantee may request budget 

revisions and grant amendments; 

identifies useful life standards for 

trolleys, ferry boats, and facilities; and 

increases the threshold that determines 

whether FTA must approve a real estate 

appraisal. 

DATES: The effective date of the circular 

is November 1, 2008. 

FOR FURTHER INFORMATION CONTACT: For 

program questions, please contact 

MaryAnne Polkiewicz at 202–366–0203 

or maryanne.polkiewicz@dot.gov. For 

legal questions, please contact Jayme L. 

Blakesley at 202–366–0304 or 

jayme.blakesley@dot.gov. 

SUPPLEMENTARY INFORMATION: 

Availability of Final Circular 

The final circular is not included with 

this document. You may download an 

electronic copy of the circular from 

FTA’s Web site at http:// 

www.fta.dot.gov. From the home page, 

click on ‘‘Legislation, Regulations and 

Guidance’’ and on that page click on 

‘‘Circulars.’’ Circulars are listed in 

numerical order; the Grant Management 

Circular is number 5010.1D. Paper 

copies of the circular may be obtained 

by calling FTA’s Administrative 

Services Help Desk at 202–366–4865. 

You may retrieve the circular and 

comments online through the Federal 

Document Management System (FDMS) 

at: http://www.regulations.gov. Enter 

docket number 29122 in the search 

field. Instructions on using FDMS can 

be found under the help section of the 

Web site. 

Table of Contents 

I. Overview 

II. Chapter-by-Chapter Analysis 

A. Chapter I—Introduction and 

Background 

B. Chapter II—Circular Overview 

C. Chapter III—Grant Administration 

D. Chapter IV—Project Management 

E. Chapter V—Oversight 

F. Chapter VI—Financial Management 

G. Appendices 

I. Overview 

This notice provides a summary of 

changes to FTA’s Grant Management 

Circular. The prior Grant Management 

Circular was numbered C 5010.1C. This 

new Grant Management Circular is 

numbered C 5010.1D. This final Circular 

5010.1D supersedes Circular 5010.1C. 

This notice addresses comments 

received in response to the September 

28, 2007, Federal Register notice (72 FR 

55629, Notice of Proposed Guidance 

and Request for Comment on the 

Federal Transit Administration’s Grant 

Management Requirements FTA 

Circular 5010.1D). FTA received 

comments from nine parties, including 

an industry association, transit agencies, 

and State departments of transportation 

(State DOTs). 

FTA has adopted most of the 

proposed formatting changes published 

in the proposed circular. For example, 

we changed the format to make this 

circular consistent with the style of 

other circulars FTA is updating while 

maintaining some consistency with the 

previous document. Substantive 

changes in content and comments to the 


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proposed circular are discussed in the 

Chapter-by-Chapter Analysis heading. 

One commenter noted that in the 

September 28, 2007, Federal Register 

notice FTA titled proposed Circular 

5010.1D ‘‘Grant Management 

Requirements.’’ This commenter asked 

FTA to change the title to ‘‘Grant 

Management Guidelines.’’ FTA 

disagrees with this change. The 

requirements in the circular are based 

on existing regulation. 

The cover page to Circular 5010.1D 

includes a statement at Section (6) that 

‘‘FTA reserves the right to update this 

circular to reflect changes in other 

revised or new guidance and regulations 

that undergo notice and comment 

without further notice and comment on 

this circular.’’ One commenter objected 

to this statement, arguing that all 

changes should be subject to notice and 

comment. FTA disagrees. When the 

revision of a circular or regulation 

includes an opportunity for notice and 

comment, there is no need to duplicate 

that effort for each circular affected by 

such revision. 

One commenter lauded FTA, noting 

that the expanded narrative and 

examples are positive improvements. 

This commenter and one other stated 

that FTA could improve Circular 

5010.1D by adding more references or 

Web addresses. FTA agrees with this 

commenter and will include Web 

addresses in the electronic version of 

Circular 5010.1D. 

Three commenters asked FTA to 

clarify the difference between the terms 

grantee, recipient, and subrecipient. 

FTA has added language to Circular 

5010.1D stating that it uses the terms 

grantee and recipient interchangeably, 

and clarifying its pass-thru policies. 

II. Chapter-by-Chapter Analysis 

As a preliminary matter, some 

commenters had non-substantive 

comments, such as formatting 

suggestions, a suggestion to remove 

references to old Federal Register 

notices, to include specific terms in the 

index, and to do a thorough review of 

the draft for typos, cross-referencing 

errors, and the like. We have removed 

the old Federal Register references, 

made some, but not all, of the suggested 

formatting changes, added terms to the 

index, and we have thoroughly 

reviewed the document in an effort to 

remove the errors noted by commenters. 

Furthermore, we have reordered the 

sections of some of the chapters to 

provide the material in a more 

organized fashion. Some comments 

were outside the scope of the proposed 

circular, and we have not addressed 

those comments in either the circular or 

this Federal Register notice. 

A. Chapter I—Introduction and 

Background 

Chapter I introduces the Federal 

Transit Administration (FTA) and its 

authorizing legislation (49 U.S.C. 

Chapter 53). It also instructs readers on 

how to contact FTA and how to find out 

about competitive grant opportunities 

using Grants.gov. Finally, Chapter I 

defines all terms-of-art used in Circular 

5010.1D. 

One commenter asked FTA to change 

its definition of ‘‘real property’’ to 

conform to certain State provisions that 

define real property to include 

machinery and equipment that are 

fixtures. After careful consideration, 

FTA has decided against changing its 

definition of real property. 

The same commenter asked FTA to 

revise its definitions of ‘‘equipment’’ 

and ‘‘supplies’’ so that the dollar value 

thresholds are comparable. This 

commenter asked FTA to raise the 

ceiling for supplies to $25,000. FTA 

declines to revise its definitions of 

‘‘equipment’’ and ‘‘supplies.’’ These 

definitions are based on the definitions 

and requirements at 49 CFR part 18— 

Uniform Administrative Requirements 

for Grants and Cooperative Agreements 

to State and Local Governments (also 

known as the Common Grant Rule). 

One commenter noted that by 

defining a budget revision to include the 

addition or deletion of an activity line 

item (ALI) in FTA’s Transportation 

Electronic Award and Management 

(TEAM) system, the proposed circular 

appeared to contradict prior FTA 

guidance. FTA notes that this change is 

intentional and in the instance of any 

such contradictions, Circular 5010.1D 

supersedes prior versions of the 

circular. 

One commenter recommended that 

the proposed definition for 

discretionary funding should be revised 

to read ‘‘grant funds distributed at the 

discretion of the agency, or Congress, as 

distinct from formula funding.’’ Except 

for ‘‘or Congress,’’ FTA has incorporated 

this language into the final version of 

Circular 5010.1D. 

Another commenter suggested that 

FTA revise its definition of straight line 

depreciation. FTA has modified its 

definition accordingly. 

Another commenter asked FTA to 

define ECHO. FTA has added a 

definition of ECHO-Electronic Clearing 

House Operation. 

One commenter noted discrepancies 

in FTA’s use of the term ‘‘force 

account.’’ This same commenter asked 

FTA to add information about the 

Catalog of Federal Domestic Assistance 

(CFDA). The definition of force account 

has been revised and Catalog of Federal 

Domestic Assistance has been added to 

the definition section. 

Another commenter asked FTA to 

clarify whether a Native American tribe 

is considered a local government 

authority. FTA has edited the 

introduction section to include federally 

recognized Indian tribes and a 

definition of Tribal Government from 43 

U.S.C. 1601. 

One commenter asked FTA to state 

that the Common Rule (49 CFR part 18) 

applies to all FTA grantees. FTA has 

added language making clear the 

applicability of the Common Rule. 

B. Chapter II—Circular Overview 

Chapter II provides an overview of 

Circular 5010.1D, including applicable 

program descriptions, grant 

management responsibilities, and 

Federal civil rights requirements. 

One commenter suggested that the 

applicable program descriptions should 

include fewer details. FTA disagrees. 

FTA is using the same program 

descriptions in all of its circulars to 

reduce the need for ad hoc revisions to 

each circular whenever programs 

change. 

The same commenter asked FTA to 

consider adding under its role that FTA 

may utilize a Project Management 

Oversight Consultant to aid in its 

management of grants. FTA declines to 

make this revision, noting that this is 

explained in Chapter V, Oversight. 

One commenter said it was redundant 

for FTA to provide an introduction 

under the heading ‘‘Responsibilities of 

Grant Management’’ and to add another 

list of specifications. FTA disagrees. 

These sections are similar but not 

identical. 

Another commenter asked FTA to 

review the list of Civil Rights 

requirements to ensure that it includes 

the proper thresholds. FTA has updated 

Circular 5010.1D accordingly. 

C. Chapter III—Grant Administration 

Chapter III discusses the mechanics 

and requirements for grant 

administration, including the grant 

application process, reporting 

requirements, and grant modifications 

(including budget revisions). 

One commenter noted that FTA’s 

TEAM system requires FTA approval on 

all budget revisions. As noted, TEAM 

does not recognize the difference 

between budget revisions that do and do 

not require FTA approval. Accordingly, 

grantees may continue to make certain 

budget revisions without prior FTA 

approval. 


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This same commenter asked FTA to 

add descriptions of size and physical 

characteristics to Subsection 4.a(3)(e). 

FTA declines to add more detail to this 

subsection, for any change in size or 

physical characteristic would require 

FTA approval. Even the smallest change 

in the size or physical characteristic, 

such as the difference between surface 

or structured parking, could affect FTA 

and grantee responsibilities under the 

National Environmental Policy Act or 

other Federal requirements. 

One commenter urged FTA to enlarge 

the universe of changes that may be 

made without pre-approval. FTA 

disagrees with this commenter. Circular 

5010.1D strikes a balance between 

flexibility and good stewardship. To 

allow greater flexibility would risk the 

misuse of Federal funds. 

With respect to spare vehicles, 

another commenter suggested that as 

long as the spare ratio requirements are 

maintained and funds are available 

within the rolling stock scope or other 

scopes, FTA should permit grantees to 

make revisions regarding fleet number 

without prior FTA approval. FTA 

disagrees with this commenter. Prior 

FTA approval must be obtained for 

revenue rolling stock, whenever the 

budget revision changes the number of 

vehicles to be purchased by more than 

two units (for grants with fewer than 10 

vehicles) or more than 20 percent from 

the quantity identified in the original 

grant. The grantee must continue to 

meet FTA bus spare ratio requirements 

for any change in the number of revenue 

rolling stock. If the change in the 

number of revenue rolling stock exceeds 

20 percent, the budget revision must be 

supported by a Rolling Stock Status 

Report. 

Another commenter noted that the 

addition or deletion of ALIs represents 

significant changes to the purpose of a 

grant and asked FTA to clarify the 

difference between revisions and 

amendments. This same commenter 

asked FTA to establish time limits for 

processing budget revisions and to 

advise grantees whenever 

administrative amendments are 

anticipated. FTA appreciates these 

suggestions. With respect to the 

difference between budget revisions and 

grant amendments, FTA has included 

language in Circular 5010 distinguishing 

between budget revisions, 

administrative amendments, and grant 

amendments. 

A budget revision is any change 

within the scope that impacts budget 

allocations of the original grant. A 

budget revision may be a transfer of 

funds within a project scope or between 

existing ALIs within an approved grant. 

It could also include the addition or 

deletion of an ALI. 

An administrative amendment is a 

minor change in a grant agreement 

normally initiated by FTA to modify or 

clarify certain terms, conditions, or 

provisions of a grant. A grant 

amendment is the modification of a 

grant that includes a change in scope 

and/or a change in Federal funds. With 

respect to establishing time limits for 

processing budget revisions and grant 

amendments, FTA agrees with the 

commenter but believes that such 

timeframes are best made through 

internal standard operating procedures 

(SOPs) and not through this circular. 

FTA proposed requiring prior 

approval for budget revisions for all 

grants with a Federal share of more than 

$100,000 and if the change in the 

cumulative amount of funds allocated to 

each scope from the originally approved 

scope exceeds 20 percent. One 

commenter asked FTA to rethink the 

$100,000 threshold. This commenter 

suggests applying the 20 percent rule to 

all grants, regardless of whether the 

Federal share exceeds $100,000. The 

$100,000 threshold is based on the 

Common Grant Rule requirements at 49 

CFR part 18—Uniform Administrative 

Requirements for Grants and 

Cooperative Agreements to State and 

Local Governments. 

One commenter asked FTA to inform 

the grantee when FTA is about to take 

any unilateral action with respect to a 

grant, especially if that action relates to 

closing out a grant. FTA agrees. 

Although it is common practice to 

inform the grantee of such actions, FTA 

will reemphasize the need to contact 

grantees before taking unilateral action 

to close out a grant. 

This same commenter asked FTA to 

explain why the ‘‘details’’ section in 

TEAM limits text to 60 characters. FTA 

instructs its grantees to use the 

attachment feature if 60 characters are 

insufficient. 

One commenter pointed out that, 

contrary to its statement in the Federal 

Register, FTA did not indicate in 

proposed Circular 5010.1D how it has 

changed its use of the term ‘‘scope.’’ 

FTA agrees with this commenter and 

clarified the definitions of scope and 

activity line items (ALIs). 

Milestone/progress reporting for all 

Section 5309 grant recipients, regardless 

of location and population area, has 

been revised to reflect the requirement 

to submit quarterly reports in TEAM 

when grants include construction of a 

facility. 

In the records retention section of its 

proposed guidance, FTA noted that 

photocopies are acceptable. One 

commenter asked FTA to expand this 

policy to include other formats such as 

microfiche or digitally scanned 

documents. FTA has examined this 

comment and added language to 

Circular 5010.1D that allows for other 

formats. 

D. Chapter IV—Project Management 

Real property, equipment and 

supplies, rolling stock, and facilities 

purchased or constructed for project 

purposes must be managed, used, and 

disposed of in accordance with 

applicable laws and regulations. 

Chapter IV provides guidance on the 

management, use, and disposition of 

FTA funded real property, equipment, 

supplies, rolling stock, and facilities. 

One commenter asked why FTA 

decided to include real property in its 

Grant Management Circular and not in 

its Procurement Circular. FTA notes that 

it may need to include a section on real 

property in its Procurement Circular, 

but declines to remove it from Circular 

5010.1D. 

Another commenter applauded FTA’s 

proposal to raise the threshold for 

appraisal concurrence from $100,000 to 

$500,000, but asked FTA to consider 

increasing the threshold to $1,000,000. 

While FTA appreciates this comment, it 

is still common for FTA to discover 

incorrect appraisals. For this reason, 

FTA will not increase the threshold to 

$1,000,000. 

One commenter asked FTA to better 

explain the conditions that may warrant 

the use of a grantee’s own labor forces, 

commonly referred to as force account. 

FTA has added the following conditions 

to Circular 5010.1D: (1) Cost savings, (2) 

exclusive expertise, (3) safety and 

efficiency of operations, and (4) union 

agreement. 

A commenter stated that FTA should 

require its grantees to notify FTA of 

excess land as soon as it becomes 

excess, and asked that such notification 

include a disposition proposal and 

schedule for disposition. FTA does not 

agree with this commenter. Grantees 

must notify FTA when property is 

removed from the service originally 

intended. The notification must include 

the anticipated disposition or action 

proposed. 

Previously, FTA would rely upon a 

grantee’s expertise when determining 

the useful life for assets other than 

rolling stock. One commenter asked 

FTA to continue this practice instead of 

fixing a useful life for all assets. FTA 

disagrees with this commenter. By 

establishing a useful life for facilities, 

FTA ensures consistency across projects 

and regions. Where a useful life policy 

has not been defined by FTA, the 


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grantee, in consultation with the FTA 

regional or metropolitan office shall 

‘‘make the case’’ by identifying a useful 

life period for all equipment and 

facilities with an acquisition value 

greater than $5,000 to be procured with 

Federal funds. In the grant application, 

the grantee shall propose and identify a 

useful life for the capital asset to be 

purchased with Federal funds. FTA 

approval of the grant represents FTA 

concurrence of the final determination 

of useful life for the purpose of project 

property acquisition. This in turn will 

identify the useful life of the Federal 

interest for the disposition of the project 

property in later years. Acceptable 

methods to determine useful life 

include but are not limited to: 

(a) Generally accepted accounting 

principles. 

(b) Independent evaluation. 

(c) Manufacturer’s estimated useful 

life. 

(d) Internal Revenue Service 

guidelines. 

(e) Industry standards. 

(f) Grantee experience. 

(g) The grantee’s independent auditor 

who needs to concur that the useful life 

is reasonable for depreciation purposes. 

(h) Proven useful life developed at a 

Federal test facility. 

Useful Life of a fixed guideway 

electric trolley-bus with rubber tires 

obtaining traction from overhead 

catenary has been revised to be 15 years 

from previously proposed 18 years. 

One commenter stated that FTA’s 

proposal concerning vehicles removed 

from service because of fire, collision, or 

natural disaster inappropriately shifts 

risk to its grantees, noting that the 

existing circular looks to the post-event 

value of the vehicle to measure the 

remaining Federal interest while the 

proposed circular would refer to the 

pre-event value. This commenter urged 

FTA to maintain the existing policy. 

FTA disagrees. The policy articulated in 

Circular 5010.1D is consistent with 

FTA’s Master Agreement and current 

FTA practice. Similar to Circular 

5010.1D, Section 19.h(b)(1) of FTA’s 

Master Agreement states that the fair 

market value of project equipment and 

supplies shall be the value immediately 

before the occurrence prompting the 

withdrawal of the equipment or 

supplies from appropriate use. In the 

case of project equipment or supplies 

lost or damaged by fire, casualty, or 

natural disaster, the fair market value 

shall be calculated on the basis of the 

condition of the equipment or supplies 

immediately before the fire, casualty, or 

natural disaster, irrespective of the 

extent of insurance coverage. 

One commenter asked FTA to 

consider adopting the practice of 

communicating directly with the 

grantee receiving a new grant award, 

perhaps by modifying TEAM to include 

a facility for automatically advising 

grantee contacts by e-mail when FTA 

revises the grant’s status or inputs 

comments. FTA is looking at improving 

TEAM accordingly. In the meantime, 

FTA’s regional offices will make every 

effort to contact grantees when 

modifying a grant application or award. 

Several parties offered comments on 

the reporting requirements articulated 

in proposed Circular 5010.1D. Please 

note that FTA has made its best effort 

to avoid duplicative reporting 

requirements. Moreover, FTA notes that 

the reporting requirements may vary 

depending on the size of the grantee, the 

type of funding, or the amount of 

funding a grantee receives. Please 

contact the regional or metropolitan 

office with questions regarding the 

applicability of the reporting 

requirements of Chapter III. With 

respect to requiring grantees to state the 

useful life of an asset in its grant 

application, FTA is ensuring that it can 

verify the use and disposition of that 

asset throughout its useful life. 

Another commenter identified several 

misnumbered sections in this chapter. 

FTA has corrected these errors. 

A State DOT asked FTA to clarify 

language regarding its Equal 

Employment Opportunity programs to 

apply to more than just transit agencies. 

FTA has modified Chapter III 

accordingly. 

The same commenter noted that the 

National Transit Database Safety and 

Security Reporting requirement is 

exclusive to urban areas. FTA agrees 

and has clarified this point. 

Another State DOT asked FTA to note 

that there is no minimum vehicle 

threshold for reporting in the 

nonurbanized program. FTA agrees and 

has modified Circular 5010.1D 

accordingly. 

One commenter stated its 

understanding that 49 U.S.C. 

5334(h)(1)–(3) applies to transferring 

property that has not met useful life 

standards, and suggested that FTA 

amend the circular text to include this 

statement. FTA agrees and has modified 

Circular 5010.1D accordingly. 

The same commenter noted that 

insurance proceeds set the current fair 

market value of an asset and that the 

Federal share is based upon this 

number. FTA refers this commenter to 

the following language from FTA’s 

Master Agreement: In the case of Project 

equipment or supplies lost or damaged 

by fire, casualty, or natural disaster, the 

fair market value shall be calculated on 

the basis of the condition of the 

equipment or supplies immediately 

before the fire, casualty, or natural 

disaster, irrespective of the extent of 

insurance coverage. 

One commenter identified several 

inadvertent omissions from the section 

on real property. FTA has updated this 

section in accordance with the 

Department’s Uniform Relocation Act 

regulations. 

Two parties asked FTA to distinguish 

between rebuilding and overhauling a 

vehicle or system. Accordingly, FTA has 

updated Circular 5010.1D to distinguish 

between overhaul and rebuild. Overhaul 

is performed as a planned or 

concentrated preventative maintenance 

activity and is intended to enable the 

rolling stock to perform to the end of its 

original useful life. Rebuild is a capital 

expense incurred at or near the end of 

the useful life of rolling stock that 

results in a new useful life for the 

rolling stock that is consistent with the 

extent of the rebuilding. 

One commenter asked FTA to clarify 

when a grantee or recipient must return 

insurance money that it receives from a 

subrecipient. FTA’s Master Agreement 

in Section 19, Subsection i states that if 

the recipient receives insurance 

proceeds as a result of damage or 

destruction to the project property, the 

recipient agrees to: (1) Apply those 

insurance proceeds to the cost of 

replacing the damaged or destroyed 

Project property taken out of service, or 

(2) Return to the Federal Government an 

amount equal to the remaining Federal 

interest in the damaged or destroyed 

Project property. 

Another commenter asked FTA to 

clarify when a grantee should submit a 

Project Management Plan (PMP) to FTA 

as a prerequisite to grant approval. 

According to FTA’s Project Management 

Oversight rule, 49 CFR part 633, for all 

major capital projects, the grantee must 

submit a PMP as part of its grant 

application. 

Several commenters expressed 

concern that FTA proposes to include 

useful life determination in grant 

agreements and that the minimum 

threshold for such determinations is 

$5,000. FTA disagrees with these 

commenters. According to the Common 

Grant Rule, every asset over $5,000 must 

be accounted for. Indirectly, this means 

that every asset over $5,000 must have 

a useful life. 

E. Chapter V—Oversight 

Chapter V discusses FTA oversight. 

FTA evaluates grantee adherence to 

program and administrative 

requirements through a comprehensive 


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oversight program. FTA’s Master 

Agreement specifies these requirements. 

FTA determines compliance through 

self-certification, oversight review and 

audits, and site visits. FTA annually 

completes an individual Grantee 

Oversight Assessment Questionnaire, 

which serves as baseline information for 

each grantee’s capacity to comply, and 

the degree of the risk the grantee’s 

program may represent for the Federal 

program. Based on this information, 

FTA makes decisions about which 

grantees will receive oversight reviews 

during the coming year. Regional staff 

uses the information to develop regional 

oversight plans and to allocate oversight 

resources within the region for the 

upcoming fiscal year, which may 

include oversight reviews, regional 

meetings, and/or regional site visits. 

One commenter asked FTA to add its 

Job Access Reverse Commute (JARC) 

and New Freedom Programs to the list 

of programs covered by State 

Management Reviews. FTA only listed 

programs for which it is authorized to 

withhold a percentage for oversight 

activities. FTA retains the right to 

review any of its programs through State 

Management Reviews. 

F. Chapter VI—Financial Management 

Chapter VI discusses the proper use 

and management of Federal funds FTA 

expects from its grantees. Financial 

management is one of the most 

important practices in the management 

of Federal funds. 

One commenter asked FTA to define 

the Cash Basis of Accounting and its 

permissible use. Definitions have been 

added. 

Another commenter asked FTA to 

clarify whether a specific form is 

required for documenting internal 

controls. FTA notes that the form 

checklist provided in Circular 5010.1D 

is not mandatory. FTA has provided it 

to those transit properties that do not 

currently do their own testing. FTA has 

modified Circular 5010.1D to make clear 

that this form is a tool, not a 

requirement. 

G. Appendices 

One commenter noted that Appendix 

C, Guide for Preparing an Appraisal 

Scope of Work, is excellent guidance 

and asked FTA to include a review 

appraisal scope of work. FTA agrees 

with this comment and has indicated 

that the Guide for Preparing an 

Appraisal Scope of work can also be 

used for a review appraisal. 

Appendix D, Fleet Status Report, has 

been renamed and revised so as to not 

be confused with the Fleet Status Report 

screen in TEAM. The new name is 

Rolling Stock Status Report. The use of 

this report is limited to disposing of a 

vehicle that has met minimum useful 

life and fair market value is greater than 

$5,000, disposing of a vehicle before it 

reaches minimum useful life, or 

requesting a budget revision affecting 

vehicles. 

Issued in Washington, DC, this 22nd day 

of September, 2008. 

James S. Simpson, 

Administrator. 

[FR Doc. E8–22891 Filed 9–29–08; 8:45 am] 

BILLING CODE 4910–57–P 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

[Docket No. FTA–2007–29125] 

Third Party Contracting Guidance: 

Notice of Final Circular 

AGENCY: Federal Transit Administration 

(FTA), DOT. 

ACTION: Notice of Availability of Final 

Circular. 

SUMMARY: The Federal Transit 

Administration (FTA) has issued FTA 

Circular 4220.1F, ‘‘Third Party 

Contracting Guidance’’ to provide 

comprehensive guidance to grantees and 

recipients of cooperative agreements 

(recipients) to implement third party 

contracting requirements that apply to 

FTA assisted procurements. 

DATES: Effective Date: The effective date 

of this circular is November 1, 2008. 

ADDRESSES: A copy of this circular and 

comments and material received from 

the public, as well as any documents 

indicated in the preamble as being 

available in the docket, are part of 

docket FTA–2007–29125 and are 

available for inspection or copying at 

the Docket Management Facility, U.S. 

Department of Transportation, 1200 

New Jersey Ave., SE., West Building 

Ground Floor, Room W12–140, 

Washington, DC between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

You may retrieve the circular and 

comments online through the Federal 

Document Management System (FDMS) 

at Web site: http://regulations.gov. Enter 

the docket number FTA–2007–29125 in 

the search field. The FDMS is available 

24 hours each day, 365 days each year. 

Electronic submission and retrieval help 

and guidelines are available under the 

help section of the Web site. 

This notice does not include the final 

circular. An electronic version of the 

circular may be found on the docket: 

http://regulations.gov, docket number 

FTA–2007–29125, or on the FTA Web 

site: http://www.fta.dot.gov. Paper 

copies of the circular may be obtained 

by contacting FTA’s Administrative 

Services Help Desk, at 202–366–4865. 

FOR FURTHER INFORMATION CONTACT: 

James Harper, Director, Office of 

Procurement, Office of Administration, 

Federal Transit Administration, 1200 

New Jersey Avenue, SE., East Building, 

Room E42–332, Washington, DC 20590, 

phone: 202–366–1127, fax: 202–366– 

3808, or e-mail James.Harper@dot.gov 

for issues regarding third party 

contracting procedures and practices; or 

Kerry L. Miller, Assistant Chief Counsel 

for General Law, Office of Chief 

Counsel, Federal Transit 

Administration, 1200 New Jersey 

Avenue, SE., East Building, Room E56– 

314, Washington, DC 20590, phone: 

202–366–1936, fax: 202–366–3809, or 

e-mail, Kerry.Miller@dot.gov, for legal 

issues. 

Table of Contents 

I. Background 

II. Overview 

III. Chapter-by-Chapter Analysis 

A. Chapter I—Introduction and Role of the 

Federal Transit Administration 

B. Chapter II—Applicability 

C. Chapter III—The Recipient’s 

Responsibilities 

D. Chapter IV—The Recipient’s Property 

and Services Needs and Federal 

Requirements Affecting Those Needs 

E. Chapter V—Sources 

F. Chapter VI—Procedural Guidance for 

Open Market Procurements 

G. Chapter VII—Protests, Changes and 

Modifications, Disputes, Claims, 

Litigation, and Settlements 

1. Appendix A—References 

2. Appendix B—FTA Regional and 

Metropolitan Contact Information 

3. Appendix C—Third Party Contracting 

Checklists 

4. Appendix D—Matrices of Third Party 

Contract Provisions 

I. Background 

This notice provides a summary of 

FTA’s Third Party Contracting Guidance 

final circular, and addresses comments 

received in response to the FTA’s 

September 28, 2007, Federal Register 

notice (72 FR 55630). FTA’s most recent 

enabling legislation, the Safe, 

Accountable, Flexible, Efficient 

Transportation Equity Act: A Legacy for 

Users (SAFETEA–LU), Public Law 109– 

59, August 10, 2005, as amended by the 

SAFETEA–LU Technical Corrections 

Act, 2008, Public Law 110–244, June 6, 

2008, added new third party contracting 

requirements for FTA recipients. Other 

Federal laws and regulations have also 

amended certain Federal requirements 

or added new Federal requirements 

affecting third party procurements 


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