Document ID: FRA-2009-0031-0016
Agency: fra
Document Type: Rule
Title: Funding Availability: High-Speed Intercity Passenger Rail (HSIPR) Program
Posted Date: 2010-04-01T04:00Z

[Federal Register: April 1, 2010 (Volume 75, Number 62)]
[Notices]               
[Page 16552-16562]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01ap10-138]                         

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

 
High-Speed Intercity Passenger Rail (HSIPR) Program

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Notice of funding availability.

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SUMMARY: On January 28, 2010, President Obama announced the first 
selections for the High-Speed Intercity Passenger Rail (HSIPR) Program. 
This notice builds on the program framework established by FRA in the 
June 23, 2009 interim program guidance (74 FR 29900), and details the 
application requirements and procedures for obtaining the remaining 
funds available under the Department of Transportation Appropriations 
Act of 2009 that have not yet been allocated to projects. This 
solicitation is only applicable to the remaining FY 2009 funds. FRA has 
concurrently issued a solicitation for high-speed rail planning 
activities funded under the Department of Transportation Appropriations 
Act of 2010, and will release an additional solicitation in the coming 
months for the construction and corridor program funds provided under 
the FY 2010 appropriation.

DATES: Applications for funding under this solicitation are due no 
later than 5 p.m. EST, May 19, 2010 and must be submitted via 
Grants.gov (see instructions in Section 3.1). See Section 3 for 
additional information regarding the application process. FRA reserves 
the right to modify this deadline.

ADDRESSES: Supporting materials that cannot be submitted electronically 
may be mailed or hand delivered to: U.S. Department of Transportation, 
Federal Railroad Administration, 1200 New Jersey Avenue, SE., MS-20, 
Room W38-302, Washington, DC 20590 Att'n. HSIPR Program. Applicants are 
encouraged to use special courier services to avoid shipping delays. 
Application forms are available at http: //www.fra.dot.gov/Pages/
2243.shtml.

FOR FURTHER INFORMATION CONTACT: For further information regarding this 
notice and the grants program, please contact the FRA HSIPR Program 
Manager via e-mail at HSIPR@dot.gov, or by mail: U.S. Department of 
Transportation, Federal Railroad Administration, 1200 New Jersey 
Avenue, SE., MS-20, Washington, DC 20590 Att'n. HSIPR Program.

Table of Contents

1. Financial Assistance Description
2. Eligibility Information
3. Application and Submission Information
4. Application Review Information
5. Award Administration Information
6. Questions and Clarifications
Appendix 1: Additional Information on Eligibility
Appendix 2: Additional Information on Preliminary Engineering
Appendix 3: Additional Information on Award Administrations
Appendix 4: Additional Information on Applicant Budgets

Section 1: Financial Assistance Description

1.1 Authority

    This financial assistance announcement pertains to remaining FY 
2009 appropriations for FRA's High-Speed Intercity Passenger Rail 
(HSIPR) Program. These funds were authorized and appropriated under the 
Department of Transportation Appropriations Act,

[[Page 16553]]

2009 (``FY 2009 DOT Appropriations Act,'' Title I of Division I of Pub. 
L. 111-8, March 11, 2009), under the title Capital Assistance to 
States--Intercity Passenger Rail Service. The funding opportunities 
described in this guidance are available under Catalog of Federal 
Domestic Assistance (CFDA) number 20.317.

1.2 Program Description and Legislative History

    As one of President Obama's foremost transportation priorities, the 
HSIPR Program is intended to help address the nation's transportation 
challenges by investing in an efficient network of high-speed and 
intercity passenger rail corridors that connect communities across 
America. On January 28, 2010, President Obama announced the first 
recipients selected to receive funding under the HSIPR Program. These 
initial awards were funded from the $8 billion appropriated under the 
American Recovery and Reinvestment Act of 2009 (ARRA or Recovery Act) 
and $90 million appropriated under the FY 2009 DOT Appropriations Act.
    However, most HSIPR Program applicants sought funding under the 
Recovery Act portion of the original solicitation, and there remains a 
balance of approximately $65 million in FY 2009 funding. This financial 
assistance announcement is intended to provide prospective applicants 
with ``ready-to-go'' projects the opportunity to apply for the 
remaining FY 2009 funds prior to FRA issuing an application 
solicitation for FY 2010 construction funds.

1.3 Funding Approach

    The FY 2009 DOT Appropriations Act appropriated $90 million for 
intercity passenger rail grants. These funds were combined with 
approximately $1.9 million in unobligated FY 2008 funding and $8 
billion in ARRA funding for the first HSIPR Program application 
solicitation that was issued in June 2009. Of these FY 2009 funds, 
approximately $65 million remains. An additional $2.5 billion was 
appropriated for the program in FY 2010. FRA is separately soliciting 
applications for the different components of these appropriations:
    1. Residual FY 2009 funds (approximately $65 million): Construction 
projects with a 50 percent non-Federal match. This solicitation is for 
these funds.
    2. FY 2010 planning funds (up to $50 million): Planning projects 
with a 20 percent non-Federal match. The notice of funding availability 
(NOFA) for these funds is being issued concurrently with this 
solicitation, and can also be found in this edition of the Federal 
Register.
    3. FY 2010 stand-alone projects (up to $245 million) and corridor 
programs (at least $2,125 million): Stand-alone final design/
construction and/or preliminary engineering/NEPA projects and corridor 
program funding with a 20 percent non-Federal match. The solicitation 
for these funds is forthcoming.

1.4 General Award Information

    The remaining $65 million in FY 2009 HSIPR Program funds are 
intended to assist States with the capital costs of improving existing 
intercity passenger rail service and providing new intercity passenger 
rail service.
    FRA will make awards for these intercity passenger rail capital 
projects through cooperative agreements. Cooperative agreements allow 
for greater Federal involvement in carrying out the agreed upon 
investment. The substantial Federal involvement for these projects will 
include technical assistance, review of interim work products, and 
increased program oversight.
    While there are no predetermined minimum or maximum dollar 
thresholds for awards, FRA anticipates making one or more awards for 
the entire $65 million available.

Section 2: Eligibility Information

    Applications under this solicitation will be required to meet 
minimum requirements related to applicant eligibility, project 
eligibility, and the fulfillment of other prerequisites.
    To the extent that an application's substance exceeds the minimum 
eligibility requirements described below, such qualifications will be 
considered in evaluating the merits of an application.

2.1 Eligible Applicant Types

    Only States, including the District of Columbia, are eligible to 
apply for funds included in this solicitation.

2.2 Applicant and Key Partner Qualifications

    For an application submitted by a State to be considered funding 
under this program, it must affirmatively demonstrate that the 
applicant has or will have the legal, financial, and technical capacity 
to carry out the proposal. Additionally, the applicant must demonstrate 
that it has or will have satisfactory continuing control over the use 
of equipment or facilities acquired, constructed, or improved by the 
project, and the capability and willingness to maintain such equipment 
or facilities. Further discussion of how applicants can demonstrate 
compliance with these minimum qualifications appears in Appendix 1.2.

2.3 Cost Sharing and Matching

2.3.1 Treatment of Applicant Cost Sharing
    Pursuant to the provisions of the FY 2009 DOT Appropriations Act, 
the Federal share of the costs of projects issued cooperative 
agreements under this solicitation may not exceed 50 percent.
    If an applicant chooses the option of contributing more than the 
required 50 percent non-Federal share of the costs of its proposed 
project from its own or its partner project stakeholders' resources, 
such additional contributions will be considered in evaluating the 
merit of its application (See Section 4 for a complete description of 
evaluation and selection criteria).
2.3.2 Requirements for Applicant Cost Sharing
    An applicant's contribution toward the cost of its proposed project 
may be in the form of cash or, with FRA approval, in-kind contributions 
of services, supplies, equipment, or real estate. As part of its 
application, an applicant offering an in-kind contribution must provide 
a documented estimate of the monetary value of any such contribution, 
and its eligibility under 49 CFR 18.24.
    The applicant must provide as part of its application documentation 
that demonstrates that it has committed and will be able to fulfill any 
pledged contribution, including committing any required financial 
resources that are budgeted or planned at the time the application is 
submitted. Furthermore, funds from other Federal financial assistance 
programs may not be used to satisfy the 50 percent match requirement.

2.4 Eligible Projects

    Eligible types of projects under this program for remaining FY 2009 
HSIPR Program funds include: (1) Acquiring, constructing, or improving 
equipment, track and track structures, or a facility for use in or for 
the primary benefit of intercity passenger rail service including high-
speed rail service, (2) expenses incidental to the acquisition or 
construction (including designing, engineering, location surveying, 
mapping, environmental studies, and acquiring rights-of-way), (3) 
highway-rail grade crossing improvements related to intercity passenger 
rail service, (4) mitigating environmental impacts, (5) communication 
and

[[Page 16554]]

signalization improvements, and (6) rehabilitating, remanufacturing, or 
overhauling rail rolling stock and facilities used primarily in 
intercity passenger rail service.

2.5 Project Completion

    All projects funded under this solicitation must be completed 
within 5 years of obligation.

2.6 Other Prerequisites

2.6.1 General Prerequisites
    In general, proposals for remaining FY 2009 HSIPR Program funding 
must meet the following additional prerequisites:
     Applications must be complete, including all required 
forms and documentation, as defined in this notice;
     The complete application must demonstrate that the project 
has been identified through a rational planning process (ideally a 
High-Speed Intercity Passenger Rail Service Development Plan);
     States must include intercity passenger rail services as 
an integral part of statewide transportation planning as required under 
23 U.S.C. 135;
     The project must be consistent with an overall plan for 
developing the benefiting High-Speed Intercity Passenger Rail service; 
and
     The project must result in independent utility.
2.6.2 Prerequisites for Construction Grants
    If the applicant is seeking a construction grant, then the 
application must demonstrate all of the following:
     That Preliminary Engineering (PE) (as defined in Appendix 
2 of this notice) has been completed for the proposed project, 
resulting in project designs that are reasonably expected to conform to 
all regulatory, safety, security, and other design requirements, 
including those under the Americans with Disabilities Act (ADA);
     That a Project NEPA document (e.g.,. a Categorical 
Exclusion worksheet, a completed Environmental Assessment, or a 
completed final Environmental Impact Statement) has been completed for 
the proposed project;
     That the applicant has reached, at a minimum, agreements 
in principle with key project partners, including but not limited to 
infrastructure-owning railroads and the railroad that operates or will 
operate the benefiting High-Speed Intercity Passenger Rail service, as 
to the scope of the proposed project and the realization of the 
operating benefits (e.g., those reflected in changes to schedules) it 
is intended to generate;
     That the applicant has developed a project management plan 
for managing the implementation of the proposed project, including the 
management and mitigation of project risks; and
     That the applicant has developed a Financial Plan for each 
phase of service that details the ``sources and uses'' of both capital 
and operating funding.
2.6.3 Prerequisites for Equipment Procurement or Design Grants
    If the applicant is seeking a grant for the procurement or design 
of railroad equipment, the proposed equipment should be consistent with 
Section 305 of PRIIA, which calls for the establishment of a 
standardized next-generation rail corridor equipment pool. Compliance 
with Section 305 of PRIIA will assist in creating the economies of 
scale necessary to achieve the Administration's goal, as outlined in 
FRA's Strategic Plan, of developing a sustainable railroad equipment 
manufacturing base in the United States.
2.6.4 Positive Train Control (PTC)
    If the project involves improvements to railroad signaling/control 
systems, then the application must demonstrate that the proposed 
improvements are consistent with a comprehensive plan for complying 
with the requirements for PTC implementation under Section 104 of the 
Rail Safety Improvement Act of 2008 (``RSIA,'' Division A of Pub. L. 
110-432, October 16, 2008, codified at 49 U.S.C. 20147) and with FRA's 
final rule on Positive Train Control Systems published in the Federal 
Register on January 15, 2010 (75 FR 2598).
2.6.5 Inclusion in STIP
    Proposed projects must be specifically included in the applicant's 
Statewide Transportation Improvement Program (STIP) at the time of 
application to be eligible.

2.7 Eligibility Restrictions

    Pursuant to the provisions of the FY 2009 DOT Appropriations Act, 
applications submitted for the following activities are ineligible to 
receive funding:
     Applications submitted by private entities (or any entity 
that is not a State);
     For projects for which commuter rail passenger 
transportation is the primary intended beneficiary;
     For projects involving the development of State Rail Plans 
or Passenger Rail Corridor Investment Plan;
     For projects involving the preparation of environmental 
analyses;
     For projects in which the physical improvements are 
located outside of the United States; or
     For any expenses associated with passenger rail operating 
costs of rail operators.
    Additional funding use restrictions are fully described in Section 
3.4.3 of this notice.

Section 3: Application and Submission Information

3.1 Applying Online

    Applications for these funds will be submitted through Grants.gov 
by 5 p.m. EST on May 19, 2010. Program-specific application forms 
(identified in Section 3.3 below) may be downloaded from FRA's Web site 
at http://www.fra.dot.gov/Pages/2243.shmtl.
    To apply for funding through Grants.gov, applicants must be 
properly registered. Complete instructions on how to register and 
submit an application can be found at Grants.gov. If you experience 
difficulties at any point during this process, please call the 
Grants.gov Customer Support Hotline at 1-800-518-4726, Monday-Friday 
from 7 a.m. to 9 p.m. EST.
    Registering with Grants.gov is a one-time process; however, 
processing delays may occur, and it can take up to several weeks for 
first-time registrants to receive confirmation and a user password. It 
is highly recommended that applicants start the registration process as 
early as possible to prevent delays that may preclude submitting an 
application package by the application deadline specified. Applications 
will not be accepted after the due date; delayed registration is not an 
acceptable reason for extensions. In order to apply for funding under 
this announcement and to apply for funding through Grants.gov, all 
applicants are required to complete the following.
    1. Acquire a DUNS Number. A Data Universal Numbering System (DUNS) 
number is required for Grants.gov registration. The Office of 
Management and Budget requires that all businesses and nonprofit 
applicants for Federal funds include a DUNS number in their 
applications for a new award or renewal of an existing award. A DUNS 
number is a unique nine-digit sequence recognized as the universal 
standard for identifying and keeping track of entities receiving 
Federal funds. The identifier is used for tracking purposes and to 
validate address and point of contact information for Federal 
assistance applicants, recipients, and subrecipients. The DUNS number 
will be used throughout the grant life cycle. Obtaining a DUNS number 
is a free,

[[Page 16555]]

one-time activity. Obtain a DUNS number by calling 1-866-705-5711 or by 
applying online at http://www.dunandbradstreet.com.
    2. Acquire or Renew Registration with the Central Contractor 
Registration (CCR) Database. All applicants for Federal financial 
assistance maintain current registrations in the Central Contractor 
Registration (CCR) database. An applicant must be registered in the CCR 
to successfully register in Grants.gov. The CCR database is the 
repository for standard information about Federal financial assistance 
applicants, recipients, and subrecipients. Organizations that have 
previously submitted applications via Grants.gov are already registered 
with CCR, as it is a requirement for Grants.gov registration. Please 
note, however, that applicants must update or renew their CCR 
registration at least once per year to maintain an active status, so it 
is critical to check registration status well in advance of the 
application deadline. Information about CCR registration procedures can 
be accessed at http://www.ccr.gov.
    3. Acquire an Authorized Organization Representative (AOR) and a 
Grants.gov Username and Password. Complete your AOR profile on 
Grants.gov and create your username and password. You will need to use 
your organization's DUNS number to complete this step. For more 
information about the registration process, go to http://Grants.gov/
applicants/get_registered.jsp.
    4. Acquire Authorization for your AOR from the E-Business Point of 
Contact (E-Biz POC). The E-Biz POC at your organization must log in to 
Grants.gov to confirm you as an AOR. Please note that there can be more 
than one AOR for your organization.
    5. Search for the Funding Opportunity on Grants.gov. Please use the 
following identifying information when searching for the funding 
opportunity on Grants.gov. The Catalog of Federal Domestic Assistance 
(CFDA) number for this solicitation is 20.317, titled 
``Capital Assistance to States--Intercity Passenger Rail Service''.
    6. Submit an Application Addressing All of the Requirements 
Outlined in this Funding Availability Announcement. Within 24 to 48 
hours after submitting your electronic application, you should receive 
an e-mail validation message from Grants.gov. The validation message 
will tell you whether the application has been received and validated 
or rejected, with an explanation. You are urged to submit your 
application at least 72 hours prior to the due date of the application 
to allow time to receive the validation message and to correct any 
problems that may have caused a rejection notification.

    Note: When uploading attachments please use generally accepted 
formats such as .pdf, .doc, .docx, .xls, .xlsx and .ppt. While you 
may imbed picture files such as .jpg, .gif, and .bmp, in your 
document files, please do not submit attachments in these formats. 
Additionally, the following formats will not be accepted: .com, 
.bat, .exe, .vbs, .cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora, 
.sys, and .zip.

Experiencing Unforeseen Grants.gov Technical Issues
    If you experience unforeseen Grants.gov technical issues beyond 
your control that prevent you from submitting your application by the 
deadline, you must contact FRA staff at HSIPR@dot.gov within 24 hours 
after the deadline and request approval to submit your application. At 
that time, FRA staff will require you to e-mail the complete grant 
application, your DUNS number, and provide a Grants.gov Help Desk 
tracking number(s). After FRA staff review all of the information 
submitted, as well as contact the Grants.gov Help Desk to validate the 
technical issues you reported, FRA staff will contact you to either 
approve or deny your request to submit a late application. If the 
technical issues you reported cannot be validated, your application 
will be rejected as untimely.
    To ensure a fair competition for limited discretionary funds, the 
following conditions are not valid reasons to permit late submissions: 
(1) Failure to complete the registration process before the deadline 
date; (2) failure to follow Grants.gov instructions on how to register 
and apply as posted on its Web site; (3) failure to follow all of the 
instructions in the funding availability notice; and (4) technical 
issues experienced with the applicant's computer or information 
technology (IT) environment.

3.2 Address To Request/Submit Application Package

    If Internet access is unavailable, please write to FRA at the 
following address to request a paper application: U.S. Department of 
Transportation, Federal Railroad Administration, Attn. HSIPR Program 
Information (RDV-10), Mail Stop 20, 1200 New Jersey Ave., SE., 
Washington, DC 20590.
    For supporting documentation (described in Section 3.3.1.1) that an 
applicant is unable to submit electronically (such as oversized 
engineering drawings), applicants may submit an original and two copies 
to the above address. However, due to delays caused by enhanced 
screening of mail delivered via the U.S. Postal Service, applicants are 
advised to use other means of conveyance (such as courier service) to 
assure timely receipt of materials.

3.3 Content and Form of Application

3.3.1 Application Package Components
    The application package for HSIPR Program planning applications 
contains five required components:
    1. HSIPR FD/Construction Application Form.
    2. HSIPR Project Budget and Schedule Form.
    3. OMB Standard Application Forms.
    4. FRA's Assurances Document.
    5. Required Supporting Documentation.
    Applicants must complete all five required components of the 
application package; failure to do so may result in the application 
being removed from consideration for award. All five components of the 
application package must be submitted through Grants.gov.
    Applicants may also submit additional documentation to support the 
merits of their applications. Inclusion of such supporting 
documentation is optional.
3.3.1.1 HSIPR FD/Construction Application Form
    The most significant component of the application package is the 
HSIPR FD/Construction Application Form, into which the applicant enters 
specific information about the proposed project. The form includes 
fields that have been developed by FRA to capture pertinent qualitative 
and quantitative program-specific information that is needed for FRA to 
confirm applicant and project eligibility, as well as information 
needed for evaluation and selection of applications. The HSIPR FD/
Construction Application Form requests two types of information:
    1. General applicant and project information.
    2. Narratives that allow the applicant to make arguments on the 
benefits of its proposed project and other factors that are used to 
evaluate the merits of the application (See Section 4.2 for evaluation 
criteria).
    The HSIPR FD/Construction Application Form is available from FRA's 
Web site at: http://www.fra.dot.gov/Pages/2243.shmtl. Applicants should 
download and complete the form and submit as an attachment in 
Grants.gov.
    To support the Application Form, FRA welcomes the submission of any 
other available supporting

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documentation that may have been developed by the applicant. The format 
and structure of any additional supporting documents is at the 
discretion of the applicant. Optional supporting documentation may be 
provided one of two ways--(1) as attachments to the application or (2) 
in hard copy for materials that cannot otherwise be provided 
electronically.
3.3.1.2 HSIPR Project Budget and Schedule Form
    The HSIPR Project Budget and Schedule Form is a MS Excel document 
that supports the qualitative and quantitative claims made in the 
applicant's HSIPR FD/Construction Application Form. In addition to 
capturing detailed project budget and schedule information, the form 
also describes the standard cost categories developed by FRA to assist 
in evaluating and comparing projects. Pursuant to 49 U.S.C. 24402(g), 
FRA reserves the right to request changes to project scopes, schedules, 
and budgets of selected projects. See Appendix 4 for more information 
on preparing project budgets.
3.3.1.3 OMB Standard Application Forms
    The Standard Forms are developed by OMB and are required of all 
grant applicants. These forms should be submitted electronically 
through Grants.gov.
     Standard Form 424, Application for Federal Assistance.
     Standard Form 424A, Budget Information--Non-Construction 
Programs.
     Standard Form 424B, Assurances--Non-Construction Programs.
     Standard Form 424C, Budget Information--Construction.
     Standard Form 424D, Assurances--Construction Programs.
    All applications for construction projects must use Standard Forms 
424C and 424D. If the application is for equipment procurement or 
refurbishment, the applicant should instead use Standard Forms 424A and 
424B. All applications should also complete Standard Form 424, 
regardless of project type.
3.3.1.4 FRA Assurances Document
    FRA's assurances document contains standard Department 
certifications on grantee suspension and debarment, drug-free workplace 
requirements, and Federal lobbying. The FRA Assurances document can be 
obtained from FRA's Web site at http://www.fra.dot.gov/downloads/admin/
assurancesandcertifications.pdf. The document should be signed by an 
authorized certifying official for the applicant, scanned into 
electronic format, and submitted as an attachment to the application in 
Grants.gov.
3.3.1.5 Required Supporting Documentation
    FRA requires the submission of the following additional supporting 
documentation for remaining FY 2009 HSIPR Program construction 
applications:
     Preliminary Engineering (PE) Materials--Applicants should 
provide any documents that demonstrate the PE status (or final design 
status, if completed) of the proposed project. The PE requirements are 
detailed in Appendix 2.
     National Environmental Policy Act (NEPA) Documentation--
Applicants should provide any documents (e.g. a Categorical Exclusion 
worksheet, a completed Environmental Assessment, or a completed final 
Environmental Impact Statement) that demonstrate the NEPA status of the 
proposed project.
     Project Management Plan--Applicants should provide a 
project management plan (or equivalent) that documents assumptions and 
decisions regarding the communication, management processes, execution 
and overall project control.
     Stakeholder Agreements--Applicants should provide 
documents that demonstrate the status of all stakeholder agreements 
including agreements with interstate partners, host railroads, right-
of-way owners and contract railroad operator providing service. The 
form and structure of the stakeholder agreements are at the discretion 
of the applicant, however, agreements should satisfy the eligibility 
and award requirements listed in Appendix 1.1.
     Financial Plan--Applicants should provide a financial plan 
(or equivalent).
3.3.1.6 Other Required Documentation
    For any other documentation required prior to award that is not 
specified in this notice, FRA will make individual arrangements with 
applicants for the submission of the required documentation.
3.3.2 Additional Information Required Prior to Award
3.3.2.1 Construction Projects
    A project NEPA determination document (a Record of Decision, 
Finding of No Significant Impact, or CE determination) must have been 
issued by FRA prior to award of a construction grant.
3.3.2.2 All Projects
    Applicants are required to submit comprehensive executed 
partnership agreements, fulfilling all requirements for such agreements 
as set forth in Appendix 1.1, prior to award.

3.4 Additional Application Information

3.4.1 Submission Dates and Times
    Complete applications must be submitted to Grants.gov (as specified 
in Section 3.1) no later than 5 p.m. EST, May 19, 2010. Grants.gov will 
send the applicant an automated e-mail confirming receipt of the 
application. Supporting documentation that cannot be submitted 
electronically may be sent by courier service with a waybill receipt 
stamped no later than 5 p.m. EST, May 19, 2010. FRA will e-mail the 
applicant to confirm receipt of supporting documentation sent by 
courier service.
    Subject to demonstration of unanticipated extenuating 
circumstances, FRA may consider application materials submitted after 
the deadlines prescribed above.
    FRA reserves the right to contact applicants with any concerns, 
questions, or comments related to applications.
3.4.2 Intergovernmental Review
    This program has not been designated as subject to Executive Order 
12372, pursuant to 49 CFR part 17.
3.4.3 Funding Restrictions
    In general, only those costs considered allowable pursuant to OMB 
Circular A-87, ``Cost Principles for State, Local, and Indian Tribal 
Governments'' (codified at 2 CFR part 225) will be considered for 
funding. Additionally, the following funding restrictions will apply to 
cooperative agreements, and must be taken into consideration in the 
development of budget information submitted as part of applications.
     Funding may not be used to fund expenses associated with 
the operation of intercity passenger rail service;
     Funding may not be used for first-dollar liability costs 
for insurance related to the provision of intercity passenger rail 
service;
     While there is no cap on grant recipient's use of grant 
funds for management and administrative costs, such costs must be 
allowable, reasonable, allocable, and in accordance with applicable OMB 
cost principles cited above.
    FRA will also consider reimbursement of pre-award costs incurred as 
early as the enactment of the

[[Page 16557]]

FY 2009 DOT Appropriations Act (March 11, 2009). However, such costs 
will be considered for reimbursement only to the extent that they are 
otherwise allowable under the applicable cost principles, and involve 
either eligible activities (e.g. FD), or construction activities that 
were subject to a NEPA determination made by FRA prior to the 
commencement of such construction activities. Projects for which 
construction activities commenced prior to receipt of an FRA 
environmental determination under NEPA will not be eligible for 
funding.

Section 4: Application Review Information

4.1 Review Criteria

    Complete applications are due by 5 p.m. EST, May 19, 2010. All 
applications will proceed through a three-step process:
    1. Screening for completeness and eligibility;
    2. Evaluation review by a technical panel applying ``evaluation 
criteria;'' and
    3. Final review and selection by the FRA Administrator, applying 
``selection criteria.''
    All applications will first be screened for completeness, and 
applicant and project eligibility. Applications determined to be both 
complete and eligible will be referred to a technical panel consisting 
of subject-matter experts for a merit-based evaluation review. The 
panels will be comprised of professional staff employed by FRA and 
other DOT modal administrations, as appropriate.
    Applications will be individually reviewed and assessed against the 
evaluation criteria outlined in Section 4.2. For each of the criteria, 
the panel will assign a rating of between zero and three points, based 
on the application's fulfillment of the objectives of each criterion. 
These individual criterion ratings will then be combined according to 
priority of criteria, to arrive at an overall rating for the 
application.
    The evaluation criteria, in order of priority, are:
    1. Transportation Benefits.
    2. Project Management Approach.
    3. Sustainability of Benefits.
    4. Timeliness of Project Completion.
    5. Other Public Benefits.
    In addition to the ratings assigned by the technical evaluation 
panels, the FRA Administrator may take into account several cross-
cutting and comparative selection criteria to determine awards. The 
Administrator will review the preliminary results to ensure that the 
scoring has been applied consistently, and that the collective results 
meet several key priorities essential to the success and sustainability 
of the program (see Section 4.3). The four selection criteria are:
    1. Region/Location.
    2. Innovation/Resource Development.
    3. Partnerships/Participation.
    4. Prior HSIPR Funding Decisions and/or State Investments.

4.2 Evaluation Criteria

    Careful economic analysis that quantifies and demonstrates the 
monetary value of user benefits and, if available, public benefits will 
be particularly useful to FRA in evaluating the applications. The 
systematic process of comparing expected benefits and costs helps 
decision-makers organize information about, and evaluate trade-offs 
between, alternative transportation investments. FRA will consider 
benefits and costs using standard data provided by applicants and seek 
to evaluate applications in a manner consistent with Executive Order 
12893, Principles for Federal Infrastructure Investments, 59 FR 4233, 
to base infrastructure investments on systematic analysis of expected 
benefits and costs, including both quantitative and qualitative 
measures.
4.2.1 Transportation Benefits
    Evaluation against this criterion will consider the qualitative 
factors outlined below, as supported by key quantitative metrics. As 
described in Section 3, applicants must provide information quantifying 
the anticipated benefits of the proposed project using service output 
data (delay reduction, schedule improvement, or capacity increases).
    Each application will be assessed based on its demonstration of the 
proposed project's potential to meet the purpose and need and to 
achieve transportation benefits in a cost-effective manner, as set 
forth through the President's strategic transportation goals and the 
objectives of PRIIA. Factors to be considered in assigning a rating 
will include the contribution the proposed project would make to:
     Supporting the development of intercity high-speed rail 
service;
     Generating improvements to intercity passenger rail 
service, as reflected by estimated increases in ridership (as measured 
in passenger-miles), increased on-time performance (as measured in 
reductions in delays), reduced trip time, additional service frequency 
to meet anticipated or existing demand, and other factors;
     Generating cross-modal benefits, including anticipated 
favorable impacts on air or highway traffic congestion, capacity, or 
safety, and cost avoidance or deferral of planned investments in 
aviation and highway systems;
     Creating an integrated intercity passenger rail network, 
including integration with existing intercity passenger rail services, 
allowance for and support of future network expansion, and promotion of 
technical interoperability and standardization (including standardizing 
operations, equipment and signaling);
     Encouragement of intermodal integration through provision 
of direct, efficient transfers among intercity transportation and local 
transit networks at train stations, including connections at airports, 
bus terminals, subway stations, ferry ports, and other modes of 
transportation;
     Enhancing intercity travel options;
     Ensuring a state of good repair of key intercity passenger 
rail assets;
     Promoting standardized equipment (or rolling stock), 
signaling, communications and power;
     Improved freight or commuter rail operations, in relation 
to proportional cost-sharing (including donated property) by those 
other benefiting rail users;
     Equitable financial participation in the project's 
financing, including, but not limited to, consideration of donated 
property interests or services; financial contributions by freight and 
commuter rail carriers commensurate with the benefit expected to their 
operations; and financial commitments from host railroads, non-Federal 
governmental entities, nongovernmental entities, and others; and
     The overall safety of the transportation system, including 
the encouragement of the use of PTC technologies, and commitments by 
States or railroads of financial resources to improve the safety of 
highway/rail grade crossings over which intercity passenger rail 
service operates.
4.2.2 Project Management Approach
    Applications will be evaluated against the following criterion to 
assess the proposed project's likelihood of successful implementation 
and realization of benefits. Each application will be assessed to 
determine the risk associated with the project's delivery within 
budget, on time, and as designed. Evaluation against these criteria 
will consider the factors outlined below, which take into account the 
thoroughness and quality of the supporting documentation submitted with 
the application.
     The applicant's financial, legal, and technical capacity 
to implement the project including whether the application depends upon 
receipt of any

[[Page 16558]]

waiver(s) of Federal railroad safety regulations that have not been 
obtained;
     The applicant's experience in administering similar grants 
and projects;
     The soundness and thoroughness of the cost methodologies 
and assumptions, and estimates for the proposed project;
     The adequacy of any completed engineering work to assess 
and manage/mitigate the proposed project's engineering and 
constructability risks;
     The reasonableness of the schedule for project 
implementation;
     The thoroughness and quality of the project management 
plan;
     The sufficiency of system safety and security planning;
     The timing and amount of the project's future noncommitted 
investments;
     The project's progress, at the time of application, 
towards compliance with environmental protection requirements; and
     The comprehensiveness and sufficiency, at the time of 
application, of agreements with key partners (particularly 
infrastructure owning railroads) that will be involved in implementing 
the project; and
     The overall completeness and quality of the application, 
including the comprehensiveness of its supporting documentation.
4.2.3 Sustainability of Benefits
    Each application will be assessed based on the risk associated with 
the proposed project's capacity to generate, as planned, its 
anticipated transportation and economic benefits. Factors to be 
considered in assigning a rating will include:
     The presence and quality of a Financial plan that analyzes 
the financial viability of the proposed rail service;
     The quality and reasonableness of revenue and operating 
and maintenance cost forecasts for the benefiting Intercity Passenger 
Rail service(s);
     The availability of any required operating financial 
support preferably from dedicated funding sources for the benefiting 
Intercity Passenger Rail service(s);
     The quality and adequacy of project identification and 
planning;
     The reasonableness of estimates for user and non-user 
benefits for the project;
     The reasonableness of the operating service plan, 
including its provisions for protecting the future quality of other 
services sharing the facilities to be improved;
     The comprehensiveness and sufficiency, at the time of 
application, of agreements with key partners (including the railroad 
operating the Intercity Passenger Rail service as well as 
infrastructure-owning railroads) that will be involved in the operation 
of the benefiting Intercity Passenger Rail service, including the 
commitment of any affected host-rail carrier to ensure the realization 
of the anticipated benefits, preferably through a commitment by the 
affected host-rail carrier(s) to an enforceable on-time performance of 
passenger trains of 80 percent or greater; and
     The applicant's contribution of a cost share greater than 
the required minimum of 50 percent.
4.2.4 Timeliness of Project Completion
    Each application will be assessed based on the timeliness of its 
implementation schedule, including:
     The readiness of the project to be commenced; and
     The timeliness of project completion and the realization 
of the project's anticipated benefits.
4.2.5 Other Public Benefits
    Each application will be assessed based on its demonstration of the 
proposed project's potential to achieve other public benefits in a 
cost-effective manner. Factors to be considered in assigning a rating 
will include the contribution the proposed project would make to:
     Environmental quality and energy efficiency and reduction 
in dependence on foreign oil, including use of renewable energy 
sources, energy savings from traffic diversions from other modes, 
employment of green building and manufacturing methods, reductions in 
key emissions types, and the purchase and use of environmentally 
sensitive, fuel-efficient, and cost-effective passenger rail equipment; 
and
     Promoting livable communities, including integration with 
existing high-density, livable development (e.g., central business 
districts with public transportation, pedestrian, and bicycle 
distribution networks, and incorporation of transit-oriented 
development).

4.3 Election Criteria

4.3.1 Region/Location
     Ensuring appropriate level of regional balance across the 
country.
     Ensuring promotion of livable communities in urban and 
rural locations.
     Ensuring consistency with national transportation and rail 
network objectives.
     Ensuring integration with other rail services and 
transportation modes.
4.3.2 Innovation/Resource Development
     Pursuing new technology and innovation where the public 
return on investment is favorable, while ensuring delivery of near-term 
transportation, public and economic recovery benefits.
     Advancing the state of the art in modeling techniques for 
assessing potential intercity passenger rail costs and benefits.
     Promoting domestic manufacturing, supply and industrial 
development, including U.S.-based manufacturing and supply industries.
     Developing professional railroad engineering, operating, 
planning and management capacity needed for sustainable high-speed 
intercity passenger rail development.
4.3.3 Partnerships/Participation
     Where corridors span multiple States, emphasizing those 
that have organized multi-State partnerships with joint planning and 
prioritization of investments.
     Employing creative approaches to ensure workforce 
diversity and use of disadvantaged and minority business enterprises.
     Engaging local communities and a variety of other 
stakeholder groups in the project, where applicable.
4.3.4 Prior HSIPR Funding Decisions and/or State Investments
     Assessing how a proposed project would complement previous 
construction or planning grants made by the HSIPR program.
     Assessing how the proposed project would complement 
previous State investments in high-speed intercity passenger rail.

Section 5: Award Administration Information

5.1 Award Notices

    Upon approval of an application, notification will be sent to the 
grant recipient through Grants.gov and via a mailed letter.
    FRA will publicly announce selected projects. For projects that 
were not selected, FRA will notify the applicants of the decision and 
provide the following:
     Suggestions on application revisions for any subsequent 
resubmission rounds (if desired by applicant); and
     Guidance regarding subsequent rounds of funding.

[[Page 16559]]

5.2 Administrative and National Policy Requirements

    Grant recipients must follow all administrative and national policy 
requirements including: procurement standards, compliance with Federal 
civil rights laws and regulations, disadvantaged business enterprises 
(DBE), debarment and suspension, drug-free workplace, FRA's and OMB's 
Assurances and Certifications, ADA, buy America, environmental 
protection, NEPA, and environmental justice. For additional details on 
these administrative and national policy requirements, please refer to 
FRA's HSIPR Notice of Grant Award Example under the high-speed rail 
link on FRA's Web page at http://www.fra.dot.gov/Pages/2243.shmtl, 
which includes a sample copy of FRA's current model grant/cooperative 
agreement.

5.3 General Requirements

    Grant recipients must comply with reporting requirements. All post-
award information pertaining to reporting, auditing, monitoring, and 
the close-out process is detailed in Appendix 3.1.

5.4 Freedom of Information Act (FOIA)

    As a Federal agency, the FRA is subject to the Freedom of 
Information Act (FOIA) (5 U.S.C. 552), which generally provides that 
any person has a right, enforceable in court, to obtain access to 
Federal agency records, except to the extent that such records (or 
portions of them) are protected from public disclosure by one of nine 
exemptions or by one of three special law enforcement record 
exclusions. Grant applications and related materials submitted by 
applicants pursuant to this guidance would become agency records and 
thus subject to the FOIA and to public release through individual FOIA 
requests. FRA also recognizes that certain information submitted in 
support of an application for funding in accordance with this guidance 
could be exempt from public release under FOIA as a result of the 
application of one of the FOIA exemptions, most particularly Exemption 
4, which protects trade secrets and commercial or financial information 
obtained from a person that is privileged or confidential (5 U.S.C. 
552(b)(4)). In the context of this grant program, commercial or 
financial information obtained from a person could be confidential if 
disclosure is likely to cause substantial harm to the competitive 
position of the person from whom the information was obtained (see 
National Parks & Conservation Ass'n v. Morton, 498 F.2d 765, 770 (DC 
Cir. 1974)). Entities seeking exempt treatment must provide a detailed 
statement supporting and justifying their request and should follow 
FRA's existing procedures for requesting confidential treatment in the 
railroad safety context found at 49 CFR 209.11. As noted in the 
Department's FOIA implementing regulation (49 CFR part 7), the burden 
is on the entity requesting confidential treatment to identify all 
information for which exempt treatment is sought and to persuade the 
agency that the information should not be disclosed (see 49 CFR 7.17). 
The final decision as to whether the information meets the standards of 
Exemption 4 rests with the FRA.

Section 6: Questions and Clarifications

    Questions about this guidance and the application process should be 
submitted to the HSIPR Program Manager via e-mail at HSIPR@dot.gov.

                            List of Acronyms
------------------------------------------------------------------------
              Acronym                              Meaning
------------------------------------------------------------------------
ACF...............................  Administration for Children and
                                     Families.
ADA...............................  Americans with Disabilities Act.
ARRA..............................  American Recovery and Reinvestment
                                     Act of 2009 (Public Law 111-5).
CAST..............................  Custom Applications Support and
                                     Training Unit (GrantSolutions).
CCR...............................  Central Contractor Registration
                                     database.
CE................................  Categorical Exclusion--a class of
                                     action for the NEPA process.
CFS report........................  Commercial Feasibility Study,
                                     Federal Railroad Administration,
                                     High-Speed Ground Transportation
                                     for America, September 1997;
                                     available at: http://
                                     www.fra.dot.gov/us/content/515.
Department........................  The U.S. Department of
                                     Transportation.
DUNS..............................  Data Universal Number System.
EA................................  Environmental Assessment--a NEPA
                                     document.
EIS...............................  Environmental Impact Statement--the
                                     most extensive type of NEPA
                                     document.
FD................................  Final Design.
FONSI.............................  Finding of No Significant Impact--a
                                     possible decision concluding the
                                     NEPA process.
FRA...............................  Federal Railroad Administration--an
                                     Operating Administration of the
                                     U.S. Department of Transportation.
FTA...............................  Federal Transit Administration.
FY................................  Fiscal Year.
FY 2008 DOT Appropriations Act....  Transportation, Housing and Urban
                                     Development, and Related Agencies
                                     Appropriations Act, 2008--Title I
                                     of Division K of Public Law 110-
                                     161, December 26, 2007.
FY 2009 DOT Appropriations Act....  Transportation, Housing and Urban
                                     Development, and Related Agencies
                                     Appropriations Act, 2009--Title I
                                     of Division I of Public Law 111-8,
                                     March 11, 2009.
FY 2010 DOT Appropriations Act....  Transportation, Housing and Urban
                                     Development, and Related Agencies
                                     Appropriations Act, 2010--Title I
                                     of Division A of Public Law 111-
                                     117, December 16, 2009.
GS................................  GrantSolutions Grants Management
                                     System.
ICC...............................  Interstate Commerce Commission.
LOI...............................  Letter of Intent.
mph...............................  Miles per Hour.
NEPA..............................  National Environmental Policy Act.
NTD...............................  National Transit Database.
OTP...............................  On-time performance.
PE................................  Preliminary engineering.
PRIIA.............................  Passenger Rail Investment and
                                     Improvement Act of 2008 (Division B
                                     of Public Law 110-432).
PTC...............................  Positive Train Control.
ROD...............................  Record of Decision--a possible
                                     decision concluding of the NEPA
                                     process.
RSIA..............................  Rail Safety Improvement Act of 2008
                                     (Division A of Pub. L. 110-432,
                                     October 16, 2008).
State DOT.........................  State Department of Transportation.

[[Page 16560]]

State Capital Grant Program.......  Capital Assistance to States--
                                     Intercity Passenger Rail Service
                                     program--established in FY 2008 DOT
                                     Appropriations Act and continued in
                                     the FY 2009 DOT Appropriations Act.
------------------------------------------------------------------------

Appendix 1: Additional Information on Eligibility

Appendix 1.1 Minimum Qualifications for Applicant Eligibility

    An applicant must, in addition to demonstrating that it is of an 
eligible type for the project, affirmatively demonstrate that it has 
or will have the legal, financial, and technical capacity to carry 
out the proposal. In addition, the applicant must demonstrate that 
it has or will have satisfactory continuing control over the use of 
equipment or facilities acquired, constructed, or improved by the 
project, and the capability and willingness to maintain such 
equipment or facilities.
    In the following discussion of the means by which applicants can 
satisfy these minimum requirements, the term ``project'' refers 
generally to the substance of the applicant's proposal.
    For an applicant to demonstrate the legal, financial, and 
technical capacity to carry out its proposed project, it will be 
required to address the following qualifications:
     The applicant's ability to absorb potential cost 
overruns or financial shortfalls.
     The applicant's experience in effectively administering 
grants of similar scope and value (including timely completion of 
grant deliverables, compliance with grant conditions, and quality 
and cost controls); and
     The applicant's experience in managing railroad 
investment projects of a nature similar to that for which funding is 
being requested.
    For an applicant to demonstrate that it has or will have 
satisfactory continuing control over the use of equipment or 
facilities acquired, constructed, or improved by the project, it 
will be required to show either:
     That the applicant has or will have direct ownership of 
the equipment or facilities acquired, constructed, or improved by 
the project; or
     That the applicant has secured or has made progress 
towards securing and will have contractual agreements in place with 
the entity or entities (e.g., a local government, or one or more 
private railroads) that have or will have direct ownership of such 
assets.
    For an applicant to demonstrate that it has or will have the 
capability and willingness to maintain the equipment or facilities 
acquired, constructed, or improved by the project, it will be 
required to show:
     That it has made progress towards, and will have 
contractual agreements in place with, any entity or entities (e.g., 
a local government, or one or more private railroads) that have or 
will have direct ownership of the equipment or facilities acquired, 
constructed, or improved by the project, which address financial and 
operational responsibility for asset maintenance;
     That to the extent financial responsibility will fall 
to the applicant, the applicant has the ability to cover maintenance 
costs; and
     The applicant's experience in maintaining assets with 
similar financial and operational maintenance requirements as those 
for the assets for which funding is being requested;
    Information and documentation demonstrating the fulfillment of 
the minimum qualifications described above will be required to be 
submitted as part of full application.

Appendix 1.2 Definition of Intercity Passenger Rail

    ``Intercity rail passenger transportation'' is defined at 49 
U.S.C. 24102(4) as ``rail passenger transportation except commuter 
rail passenger transportation.'' Likewise, ``commuter rail passenger 
transportation'' is defined at 49 U.S.C. 24102(3) as ``short-haul 
rail passenger transportation in metropolitan and suburban areas 
usually having reduced fare, multiple ride, and commuter tickets and 
morning and evening peak period operations.'' In common use, the 
general definition of ``rail passenger transportation'' excludes 
types of local or regional rail transit such as light rail, 
streetcars, and heavy rail. Similarly, both Intercity Passenger Rail 
transportation and commuter rail passenger transportation exclude 
single-purpose scenic or tourist railroad operations.
    The since-terminated Interstate Commerce Commission (ICC) 
established six features to aid in classifying a service as 
``commuter'' rather than ``intercity'' rail passenger 
transportation: \1\
---------------------------------------------------------------------------

    \1\ Penn Central Transportation Company Discontinuance or Change 
in Service of 22 Trains between Boston, Mass, and Providence R.I., 
February 10, 1971, I.C.C. 338, 318-333.
---------------------------------------------------------------------------

     The passenger service is primarily being used by 
patrons traveling on a regular basis either within a metropolitan 
area or between a metropolitan area and its suburbs;
     The service is usually characterized by operation 
performed at morning and peak periods of travel;
     The service usually honors commutation or multiple-ride 
tickets at a fare reduced below the ordinary coach fare and carries 
the majority of its patrons on such a reduced fare basis;
     The service makes several stops at short intervals 
either within a zone or along the entire route;
     The equipment used may consist of little more than 
ordinary coaches; and
     The service should not extend more than 100 miles at 
the most, except in rare instances; although service over shorter 
distances may not be commuter or short haul within the meaning of 
this exclusion.
    FTA further refined the definition of commuter rail in the 
glossary for its National Transit Database (NTD) \2\ Reporting 
Manual. In particular, FTA refined the ICC's third ``feature'' by 
specifying that ``predominantly commuter [rail passenger] service 
means that for any given trip segment (i.e., distance between any 
two stations), more than 50 percent of the average daily ridership 
travels on the train at least three times a week.''
---------------------------------------------------------------------------

    \2\ In addition to serving as a reference database, the NTD 
captures data that serve as the basis for apportioning and 
allocating funding to eligible grantees under FTA's formula grant 
programs.
---------------------------------------------------------------------------

    In judging the eligibility of an application under this 
solicitation, FRA will determine whether the rail passenger service 
that is primarily intended to benefit from the proposal constitutes 
``intercity passenger rail transportation'' under the statutory 
definition and ICC and FTA interpretations. FRA may also take into 
account whether the primary intended benefiting service has been or 
is currently the direct and intended beneficiary of funding provided 
by another Federal agency (e.g., FTA) for the purpose of improving 
commuter rail passenger transportation and whether the service in 
question is or will be operated by or on behalf of a local, 
regional, or State entity whose primary rail transportation mission 
is the provision of commuter or transit service.

Appendix 2: Additional Information on Preliminary Engineering

    PE completion is a prerequisite for projects submitted under 
this solicitation. PE entails sufficient engineering design to 
define a project, including identification of all environmental 
impacts, design of all critical project elements at a level 
sufficient to assure reliable cost estimates and schedules (in turn 
sufficient to complete project management and financial plans), and 
definition of procurement requirements and strategies.
    The PE development process starts with the evaluation of project 
design alternatives (a range of rail improvements, specific 
alignments, and project designs) sufficient to support subsequent 
NEPA analysis. The NEPA environmental determination is a 
prerequisite for FRA to obligate construction funds. FRA 
acknowledges the complexity of the work required for PE, and that it 
will vary depending on the project scope. Thus, FRA does not pre-
determine the form and structure of the PE work. FRA has opted to 
specify the illustrative contents of PE--thus allowing the applicant 
discretion to pursue the most workable approach tailored to its 
needs and suitable for the proposed project.
    PE results in detailed estimates of project costs, benefits, and 
impacts of the preferred alternative that merit a higher degree of 
confidence than those prepared in earlier stages of planning. FRA 
considers that PE for

[[Page 16561]]

a major capital investment project is complete when:
     The signed environmental Record of Decision (ROD) or 
Finding of No Significant Impact (FONSI) signals that the NEPA 
process has been completed;
     The project scope, capital cost estimates, and 
financial plan are finalized;
     The project sponsor has adequately demonstrated its 
technical capability to advance the project into FD and 
construction;
     The project sponsor has adequately demonstrated its 
process and schedule for filing any safety regulatory waivers 
necessary to implement the project; and
     The project sponsor has provided an adequate system 
safety program plan and any necessary collision/derailment hazard 
analysis.
    The products of PE will include: Engineering designs; a detailed 
project description, including provisions for compliance with the 
ADA; a highly accurate project cost estimate (including a 
description of methodologies and assumptions employed in developing 
the estimate) that identifies major components and that includes 
contingencies that are reduced from previous estimates and are 
broken down by phase and functional area, a thorough project 
management plan suitable for this phase of project development; and 
a solid project financial plan that includes Federal and non-Federal 
funding committed to the project.
    PE documentation will typically include: (1) Scale maps or scale 
aerial photography of existing conditions at a scale of one inch = 
100 to 500 feet depending on location (built-up vs. undeveloped 
areas); and (2) design plan drawings overlaid on the maps/
photography. These design drawings will typically show: (i) Existing 
railroad right-of-way limits along with the railroad ownership; (ii) 
Proposed track changes including track removals and track 
installations showing track centers, turnout sizes, curve and spiral 
data, etc.; (iii) Vertical profiles and grades of existing and 
proposed construction; (iv) Public and private at-grade highway 
crossings; and (v) Passenger stations, building(s), platforms, 
parking, access to the primary highway system in the area, and 
public transit services and facilities.
    The detailed project description developed in the PE typically 
includes an assessment of the physical condition and location of the 
existing project area (generally two to three miles beyond the 
project construction limits) and elements associated with the 
design(s). These elements may include: Bridges (rail and highway); 
track including the number and location of previously existing 
railroad tracks on a roadbed; buildings (stations and maintenance 
facilities, etc.); signal systems and interlocked detectors, 
switches, derails, and snow melters; utility systems on, over, 
adjacent to or under the rail line and agreements concerning them; 
electrification systems, if any; description of highway crossing 
warning systems (if any) and daily traffic counts at public and 
private at-grade highway crossings; existing and proposed railroad 
operations and routes of freight, commuter and intercity trains with 
train daily numbers of trains by type; a safety and security 
management plan; and STRACNET routes and/or moves for commercial 
high and wide loads. For maintenance facilities, the PE outputs will 
describe and provide drawings that show the location, track and 
facility layout, specialized equipment (if any), office and employee 
welfare facilities, etc.
    FRA will be available, subject to available resources, to assist 
applicants in clarifying whether the PE is complete and encourages 
applicants to contact FRA to discuss PE.

Appendix 3: Additional Information on Award Administration

Appendix 3.1 General Requirements

Appendix 3.1.1 Standard Reporting Requirements

     Progress Reports--Progress reports are to be submitted 
quarterly. These reports must relate the state of completion of 
items in the statement of work to expenditures of the relevant 
budget elements. The grant recipient must furnish the quarterly 
progress report to the FRA on or before the 30th calendar day of the 
month following the end of the quarter being reported. Grantees must 
submit reports for the periods: January 1-March 31, April 1-June 30, 
July 1-September 30, and October 1-December 31. Each quarterly 
report must set forth concise statements concerning activities 
relevant to the project, and should include, but not be limited to, 
the following: (a) An account of significant progress (findings, 
events, trends, etc.) made during the reporting period; (b) a 
description of any technical and/or cost problem(s) encountered or 
anticipated that will affect completion of the grant within the time 
and fiscal constraints as set forth in this agreement, together with 
recommended solutions or corrective action plans (with dates) to 
such problems, or identification of specific action that is required 
by the FRA, or a statement that no problems were encountered; and 
(c) an outline of work and activities planned for the next reporting 
period.
     Quarterly Federal Financial Report (SF-425)--The 
Grantee must submit a quarterly Federal financial report 
electronically in the GrantSolutions system, on or before the 
thirtieth (30th) calendar day of the month following the end of the 
quarter being reported (e.g., for quarter ending March 31, the SF-
425 is due no later than April 30). A report must be submitted for 
every quarter of the period of performance, including partial 
calendar quarters, as well as for periods where no grant activity 
occurs. The Grantee must use SF-425, Federal Financial Report, in 
accordance with the instructions accompanying the form, to report 
all transactions, including Federal cash, Federal expenditures and 
unobligated balance, recipient share, and program income.
     Interim Report(s)--If required, interim reports will be 
due at intervals specified in the statement of work and must be 
submitted electronically in the GrantSolutions system.
     Final Report(s)--Within 90 days of the Project 
completion date or termination by FRA, the Grantee must submit a 
Summary Project Report in the GrantSolutions system. A final version 
of this report, detailing the results and benefits of the Grantee's 
improvement efforts, must be furnished by the expiration date of the 
project period.

Appendix 3.1.2 Audit Requirements

    Grant recipients that expend $500,000 or more of Federal funds 
during their fiscal year are required to submit an organization-wide 
financial and compliance audit report. The audit must be performed 
in accordance with U.S. Government Accountability Office, Government 
Auditing Standards, located at http://www.gao.gov/govaud/ybk01.htm, 
and OMB Circular A-133, Audits of States, Local Governments, and 
Non-Profit Organizations, located at http://www.whitehouse.gov/omb/
circulars/a133/a133.html. Currently, audit reports must be submitted 
to the Federal Audit Clearinghouse no later than nine months after 
the end of the recipient's fiscal year. In addition, FRA and the 
Comptroller General of the United States must have access to any 
books, documents, and records of grant recipients for audit and 
examination purposes. The grant recipient will also give FRA or the 
Comptroller, through any authorized representative, access to, and 
the right to examine all records, books, papers or documents related 
to the grant. Grant recipients must require that sub-grantees comply 
with the audit requirements set forth in OMB Circular A-133. Grant 
recipients are responsible for ensuring that sub-recipient audit 
reports are received and for resolving any audit findings.

Appendix 3.1.3 Monitoring Requirements

    Grant recipients will be monitored periodically by FRA to ensure 
that the project goals, objectives, performance requirements, 
timelines, milestones, budgets, and other related program criteria 
are being met. FRA will conduct monitoring activities through a 
combination of office-based reviews and onsite monitoring visits. 
Monitoring will involve the review and analysis of the financial, 
programmatic, and administrative issues relative to each program and 
will identify areas where technical assistance and other support may 
be needed. The recipient is responsible for monitoring award 
activities, including sub-awards and sub-grantees, to provide 
reasonable assurance that the award is being administered in 
compliance with Federal requirements. Financial monitoring 
responsibilities include the accounting of recipients and 
expenditures, cash management, maintaining of adequate financial 
records, and refunding expenditures disallowed by audits.

Appendix 3.1.4 Closeout Process

    Project closeout occurs when all required project work and all 
administrative procedures described in 49 CFR part 18, or 49 CFR 
part 19, as applicable, have been completed, and when FRA notifies 
the grant recipient and forwards the final Federal assistance 
payment, or when FRA acknowledges the grant recipient's remittance 
of the proper refund. Project closeout should not invalidate any 
continuing obligations imposed on the Grantee by an award or by the 
FRA's final notification or acknowledgment. Within 90 days of the 
Project completion date or termination by FRA, Grantees agree to 
submit a final Federal Financial Report (Standard Form 425), a 
certification or summary of project expenses, a final report, and 
third party audit reports, as applicable.

[[Page 16562]]

Appendix 4: Additional Information on Application Budgets

    Applicants must present a detailed budget for the proposed 
project that includes both Federal funds and matching funds. Items 
of cost included in the budget must be reasonable, allocable and 
necessary for the project. At a minimum, the budget should separate 
total cost of the project into the following categories:
     Personnel: List each position by title and name of 
employee, if available, show the annual salary rate and the 
percentage of time to be devoted to the project. Compensation paid 
for employees engaged in grant activities must be consistent with 
that paid for similar work within the applicant organization.
     Fringe Benefits: Fringe benefits should be based on 
actual known costs or an established formula. Fringe benefits are 
for personnel listed in the ``Personnel'' budget category and only 
for the percentage of time devoted to the project.
     Travel: Itemize travel expenses of project personnel by 
purpose (training, interviews, and meetings). Show the basis of 
computation (e.g., X people to Y-day training at $A airfare, $B 
lodging, $C subsistence).
     Equipment: List non-expendable items that are to be 
purchased. Nonexpendable equipment is tangible property having a 
useful life of more than two years and an acquisition cost of $5,000 
or more per unit. (Note: Organization's own capitalization policy 
may be used for items costing less than $5,000.) Expendable items 
should be included either in the ``Supplies'' category or in the 
``Other'' category. Applicants should analyze the cost benefits of 
purchasing versus leasing equipment, especially high cost items and 
those subject to rapid technical advances. Rented or leased 
equipment should be listed in the ``Contractual'' category. Explain 
how the equipment is necessary for the success of the project. 
Attach a narrative describing the procurement method to be used.
     Supplies: List items by type (office supplies, postage, 
training materials, copying paper, and expendable equipment items 
costing less than $5,000) and show the basis for computation. (Note: 
Organization's own capitalization policy may be used for items 
costing less than $5,000.) Generally, supplies include any materials 
that are expendable or consumed during the course of the project.
     Consultants/Contracts: Indicate whether applicant's 
formal, written Procurement Policy (see 49 CFR 18.36 or 19.40-19.48) 
or the Federal Acquisition Regulations (FAR) are followed. 
Consultant Fees: For each consultant enter the name, if known, 
service to be provided, hourly or daily fee (8-hour day), and the 
estimated time on the project. Consultant Expenses: List all 
expenses to be paid from the grant to the individual consultants in 
addition to their fees (travel, meals, and lodging). Contracts: 
Provide a description of the product or service to be procured by 
contract and an estimate of the cost. Applicants are encouraged to 
promote free and open competition in awarding contracts. A separate 
justification must be provided for sole source contracts in excess 
of $100,000.
     Other: List items (rent, reproduction, telephone, 
janitorial or security services, etc.) by major type and the basis 
of the computation. For example, provide the square footage and the 
cost per square foot for rent, or provide the monthly rental cost 
and how many months to rent.
     Indirect Costs: Indirect costs are allowed only if the 
applicant has a Federally approved indirect cost rate. A copy of the 
rate approval, (a fully executed, negotiated agreement), must be 
attached. If the applicant does not have an approved rate, one can 
be requested by contacting the applicant's cognizant Federal agency, 
which will review all documentation and approve a rate for the 
applicant organization.

    Issued in Washington, DC, on March 29, 2010.
Karen Rae,
Deputy Administrator.
[FR Doc. 2010-7340 Filed 3-31-10; 8:45 am]
BILLING CODE 4910-06-P