presented to: by: date: federal aviation administration airports program western-pacific region...

Presented to:

By:

Date:

Federal AviationAdministrationAirports Program

Western-Pacific Region

Association of California Airports

Arlene Draper and Brian Armstrong

September 16, 2009

2Federal AviationAdministration

FAA Update

FAA Update• FY 2009 Stats• FY 2009 Program• New Metrics & Watch Items• FY 2010 Program


FAA Update

FY-09 AIP Projects Funded (California)

$0

$10

$20

$30

$40

$50

$60

Fencing/AccessRd $6M

Planning $10M Equipment $17M Other $18M Terminal $21M Taxiw ay $31M Apron $37M Noise $47M Runw ay $55M

Amount: $242M (FY09 to Date) $267M (FY08)


FAA Update

FY-09 ARRA Project Funded(California)

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Security Enhacement$2M

Terminal $2M Obstructions $3M Install GuidanceSigns $5M

ARFF BLDG $11M Taxiw ay $15M Apron $17M Runw ay $18M

Amount: $73M (to Date)


FAA Update

FY-09 AIP Program(by State & to Date)

Fund Types Arizona California Nevada Hawaii Pacific

State Apportionment

$7M $22M $5M $1M $2M

Entitlement $29M $114M $16M $28M $14M

Discretionary $30M $106M $17M $5M $45M

Total: $66M $242M $38M $34M $61M


FAA Update

Accomplishments - Trend

FY-04 FY-05 FY-06 FY-07 FY-08 FY-09

Grants based on Bids (Region) (National Goals: 90%)

34% 85% 91% 96% 97% 98%

Sponsors on Letter of Credit (Region) (Regional Goals: 75%)

36% 44% 59% 65% 68% 68%


FAA Update

AIP Performance Metrics• We are focused on fiscal accountability.

• Focused on timely conversion of Airport & Airway Trust Fund resources into airport improvements (safety, capacity and efficiency).

• Previously we relied solely on “output”-type metrics to evaluate AIP performance:

—Percentage of grants based on bids

—Timely programming of grants

—Grant closeout within four years of appropriation

—Minimize inventory of open grants

—Ensure no grant inactive for 18 months

• These are all important policies, and will continue in force. But…


FAA Update

AIP Performance Metrics (cont’d)

• We now have the ability to monitor rates of actual drawdown:

—By grant

—By sponsor

—By state

—By ADO

—By region

—Nationally

• Because drawdown rates should mirror project implementation, this metric provides a far more useful indicator of how swiftly the funds are being converted to useful infrastructure.


FAA Update

AIP Performance Metrics (cont’d)• The White House Office of Management and Budget (OMB)

established outlay rates or “liquidation goals” for Airport Improvement Program (AIP) funds:

—By end of year in which appropriated, disburse 18% of funds

—By end of 1st year after appropriation, disburse 60%

—By end of 2nd year after appropriation, disburse 81%

—By end of 3rd year after appropriation, disburse 91%

—By end of 4th year after appropriation, disburse 96%

• After the 4th year, all funds should be fully disbursed and the grants closed. (This is the source of the requirement that grants four years and older be closed.)

Note, we generally use “grant year” as a proxy for “appropriation year.” There are minor differentiations when we get into multi-year grants, amendments and recovered funds, but generally this holds true.


FAA Update

Target Expenditure of AIP Grant Funds

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

To be expended 18% 60% 81% 91% 96%

Maximum to remain 82% 40% 19% 9% 4%

Year of Appropriation

1st Year after Appropriation

2nd Year after Appropriation

3rd Year after Appropriation

4th Year after Appropriation


FAA Update

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%10/1 10/31 11/30 12/31 1/31 2/28 3/31 4/30 5/31 6/30 7/31 8/31 9/30

Tracking Progress

OMB target for year of approp. – 82%

OMB target for 1st year – 40%

OMB target for 2nd year – 19%

OMB target for 3rd year – 9%

Not included in new performance metric


FAA Update

AIP Funds (AWP) Remaining in Grants Awarded

91%

87%

81%

78%

74%71%

65%62%

55%

52%

46%45%

42%40%

36%34%

32%

28%26%

23%21%

19%17%

19% 18%16% 15%

14% 13% 12%11% 10% 9.1% 8.4% 7.3%

12%11% 11% 10% 10% 9.4% 9.1% 8.2% 7.7% 7.3% 6.4%

4.9%

46%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct. 1 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31 April 30 May 31 June 30 July 31 Aug. 31 Sept. 30

Evaluation Date

Fu

nd

s R

em

ain

ing

in G

ran

ts

2008/09 2007/09

2006/09 2005/09

Grant Balances

OMB's Target for 2nd Year of Approp - 40%

OMB's Target for 3rd Year of Approp - 19%

OMB's Target for 4th Year of Approp - 9%

OMB's Target for 5th Year of Approp - 4%

OMB's Target for 1st Year of Approp - 82%

FY-08/07 Grants

FY-07/06 Grants

FY-05/04 Grants

FY-06/05 Grants


FAA Update

Benefits of the New Metric

• Significantly better indicator of actual conversion of Trust Fund resources into useful aviation infrastructure. Money assigned to a project but sitting in the Trust Fund isn’t helping the system.

• Helps articulate why the underlying policies are in place (e.g., why grants must be closed after four years).

• Allows us to ask the right questions (e.g., why isn’t a project being implemented as swiftly as expected?)

• Allows us to identify where resources are being used most effectively, and to make better decisions about where to focus future resources.

• Helps communicate AIP performance to decision-makers to improve program competitiveness during challenging budgeting periods.


FAA Update

Three Questions We Know You’ll Want to Ask• Does this mean the other goals go away?

No! We will continue to have based on bids, closeout, inactive grant goals.

• So, we just need to draw down our grants faster?No! The rate of drawdown should never be greater than actual progress on the grant.

• What should sponsors and their consultants do differently?Sponsors and consultants should recognize that this will become an area of greater scrutiny, and recognize that the FAA will be focusing more on projects that are ready to move swiftly into implementation.


FAA Update

Improper Payments• Improper payments are any payment that:

– Should not have been made; or

– Was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. Improper payments are any payment that:

• Improper payments Include any payment made to an ineligible recipient or for an ineligible service:

– Duplicate payments;

– Payments for services not received;

– Payments for an incorrect amount;

– Payments without sufficient documentation in sponsor files.


FAA Update

Improper Payments• Sponsors must not draw down grant funding for the full value of a

construction invoice unless the sponsor has already paid the contractor for the 10% retainage.

• Draw downs should only be for actual eligible expenditures.

• There is heightened Office of Inspector General and Congressional oversight in this area – everyone wants to ensure funds are only used for eligible expenses.

• We also encourage those still requesting manual payments to switch to the electronic system.

• You get your payments much quicker with the electronic system.


FAA Update

Fiscal Year 2010 Program • Level of funding and program is unclear

until the AIP is reauthorized.

• We are focusing more on proper planning before project is included in FAA’s AIP program and/or AIP provided.

Project Timing and Justification Established. Environmental Complete. Airspace is filed/complete (7460 or 7480). Airport Layout Plan Current and Depicts Project. Design complete or nearly complete. The advertisement and bid opening date established.

• Expect strict adherence to the May 1 application and AIP carryover declaration deadline.


FAA Update

Construction Safety

1. To assist the airport in avoiding or managing situations associated with construction, that could compromise airfield safety

2. To minimize disruption of normal aircraft operations

3. To carefully plan, schedule, and coordinate construction activities

What is the purpose of a Construction Safety Plan?


FAA Update

Construction Safety

When is a Construction Safety Plan required?

1. For all construction at an airport certificated under 14 CFR Part 139 (FAR 139)

2. For all airport construction projects which are funded under AIP or PFC programs

3. Recommended for all other airports.

Construction Safety Plans must:

1. Address applicable issues identified in Advisory Circular 150/5370-2E Operational Safety On Airports During Construction

2. Must be accepted by FAA


FAA Update

Contact Information

George AikenManager, Safety and Standards

(310) 725-3620

Robin Hunt, Manager San Francisco Airports District Office

(650) 867-2778 x600

Brian Armstrong, Manager Los Angeles Airports District Office

(310) 725-3608

Ron Simpson, Manager Honolulu Airports District Office

(808) 541-1232


FAA Update

Questions?

presented to: by: date: federal aviation administration airports program western-pacific region...

Documents

appropriation year

program slide

grant year

end of year

fy08 slide

year of approp

aip program

multiyear grants