Implementing New FLH Point of Obligation Under MAP-21
U.S. Department of
|Subject:||Information: Implementing new FLH Point of Obligation under MAP-21||Date:||December 3, 2012|
|From:||Joyce A. Curtis
Associate Administrator for Office of Federal Lands Highway
|In Reply Refer To:||HFL-1|
|To:||Federal Lands Highway Division Engineers|
The purpose of this memorandum is to provide guidance for the point of obligation changes made by the "Moving Ahead for Progress in the 21st Century Act" (MAP-21).
MAP-21 modifies the point of obligation for Federal Lands Highway (FLH) projects under 23 U.S.C. 201(b)(6):
"(A) IN GENERAL - Notwithstanding any other provision of law (including regulations), the authorization by the Secretary, or the Secretary of the appropriate Federal land management agency if the agency is the contracting office, of engineering and related work for the development, design, and acquisition associated with a construction project, whether performed by contract or agreement authorized by law, or the approval by the Secretary of plans, specifications, and estimates for construction of a project, shall be considered to constitute a contractual obligation of the Federal Government to pay the total eligible cost of-
''(i) any project funded under this title; and
''(ii) any project funded pursuant to agreements authorized by this title or any other title.
''(B) EFFECT.-Nothing in this paragraph-
''(i) affects the application of the Federal share associated with the project being undertaken under this section; or
''(ii) modifies the point of obligation associated with Federal salaries and expenses."
Our most current guidance related to point of obligation was issued March 30, 2007 (see memo attached). Effective October 1, the MAP-21 provisions modify the 2007 guidance as follows:
Prior to MAP-21, the point of obligation for Federal Lands Highway Program (FLHP) projects (those authorized under Chapter 2 of title 23, United States Code) was at the time of authorization of engineering and related work; or plans, specifications, or estimates (PS&E) approval. The point of obligation for all other projects administered by FLH was at the point of contract. The MAP-21 provision cited above applies the same point of obligation for all FLH administered projects authorized under title 23, United States Code. Therefore, the point of obligation for all Federal Lands projects authorized under title 23 is at the time of authorization of engineering and related work or PS&E approval.
In addition to applying the same point of obligation across title 23, United States Code, the MAP-21 provision above applies the same point of obligation to FLH-administered projects funded by Federal appropriations or other non-Federal sources authorized under any other title of the United States Code. Therefore, the point of obligation for all projects administered by FLH and funded under any other title of the United States Code is also at the time of authorization of engineering and related work or PS&E approval. An agreement with the other agency or entity providing the funding for a FLH-administered project must be executed prior to obligating project funds for this provision to apply.
This point of obligation policy applies to project funds. It does not apply to contracts awarded with GOE or management overhead funds.
This provision does NOT affect the application of Federal share associated with the project.
This provision does NOT modify the point of obligation associated with Federal salaries and expenses (e.g., travel).
We look forward to implementing this important MAP-21 provision, which will make our programming and contracting processes more uniform. Please contact Terry Haussler at 202-366-9478 if you have any questions.