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Stewardship Agreement

South Dakota Department Of Transportation
Federal Highway Administration

August 22, 2000

This agreement is entered into by the South Dakota Department of Transportation (SDDOT) and the South Dakota Division Office of the Federal Highway Administration (FHWA) to define. program policies and project development procedures which will be used to administer the Federal-aid Highway Program in South Dakota.

The Transportation Equity Act for the 2ist Century (TEA-21) has reddened the roles the SDDOT and the FHWA will play in the Federal-aid Highway Program. Section 1305 of TEA-21 (23 USC 106) provides considerable flexibility to the states and the divisions in reaching agreement on the responsibilities for design, plans, specifications, estimates, contract' awards, and inspections/acceptance of Fed-aid highway projects.

The SDDOT has the capability to assume the responsibilities defined under section 1305, and both parties recognize the need/benefits of working together to manage the delivery of Federal-aid highway funds, establish new programs, and deliver new technology. Therefore, in accord with the requirements in.TEA-21 it is desirable to define the new stewardship roles between the SDDOT and FHWA for the Federal-aid Highway Program.

For the purposes of this document, oversight will be defined as being responsible for approval actions while involvement means FHWA will maintain a certain minimum level of familiarity with the work being completed. In order to achieve a balance between oversight and involvement, the following policies and,procedure will apply to the broad oversight of the Federal-aid Highway Program and to the specific development and construction of Federal-aid projects in South Dakota.

Project Oversight

The principle oversight technique to be employed by FHWA in monitoring the Federal-aid Highway Program will be the Process Review/Product Evaluation (PR/PE) process. The key element in employing the PFUPE process will be a teamwork approach between FHWA and SDDOT.

The SDDOT and the FFWA will work cooperatively to develop and implement a yearly program of oversight activities for the appropriate functional areas. These activities will be incorporated into the Annual Work Plan for the Division Office.

The broad stewardship approach and oversight techniques employed by FHWA will focus primarily on technical innovations and process and quality improvement with secondary emphasis on compliance.

Review recommendations oversight activities will be processed through SDDOT and FHWA management for appropriate resolution.

Project Review & Oversight:

Federal-aid highway projects can be separated into three categories:

  1. On the NHS (non-exempt)
  2. On the NHS (exempt)
  3. Off the NHS (exempt)

The SDDOT must follow FHWA requirements in accomplishing proiect review, oversight and contract administration for design monitoring, PS&E approval, concurrence in award and construction monitoring for all Federal-did projects on the NHS. The SDDOT May follow State law, regulations and directives in accomplishing these four functions for projects off the NHS in lieu of FHWA requirements.

FI-IWA will continue to have approval of all non-Title 23 requirements such as Right-Of-Way and Environment. FHWA will also authorize funds for all Federal-aid projects and approve the final voucher.

FHWA will conduct an annual review of portions of the NHS system to ensure that the highways are being maintained in accordance with Title 23 USC 116 (23 CFR. 635).

FHWA will use PRs and PEs that are jointly selected and conducted with the SDDOT as its main method of oversight and involvement on all federally funded project's. These PR/.PE's may be used for review and oversight of design monitoring, PS&E approval, concurrence in award, construction monitoring and Maintenance monitoring.

I) NHS (Non-Exempt): Reconstruction and construction projects on the Interstate over $1 million and other NHS projects jointly agreed upon.

II) NHS (Exempt): All other projects on the NHS.

III) Off NHS (Exempt):

The following table summarizes the oversight and specific approval authority between SDDOT and FHWA for all Federal-did projects. The principle references in addressing the Federal-aid Highway Program are 23 United States Code and 23 Code of Federal Regulations (Highways).



NHS (1)




Authorization of funds

23 USC 110; 23 CFR 630A, 630C, 635C; 23 CFR 172 5.44-00; Adm. Rules 70:07




Design Standards (Roadway and Structures)

23 CFR 625.4
E-1-98, E-2-98, E-3-08, E-5-98,E-7-98




Approve Access Change (Full Access Control)




Design Exceptions

23 CFR 625.3' E-2-98




PS&E Approval - Include ROW, Utility Certificates

23 USC 106; 23 CFR630B SDCL 31-26-23





23 CFR 635.120




Approve Innovate Contracting




Approve Exceptions to Competitive Bidding





23 CFR 635.114 SDCL 35-5-10




Change Orders

23 CFR 635.120
SDDOT Stand. Specs, 0C-16-00, OC-10-00, OC-17-00




Time Extensions

23 CFR 635.121
Stand. Specs., Section 8; OC-5-96, OC-6-97





23 CFR 35.124
Stand. Specs., Section 5.17; 0C-05-98




Construction Inspection

23 USC 106, 114
Stand. Specs., Materials Manual




Review and Approve Materials Sampling and Testing





Final Inspection

23 USC 106, 114
Stand. Specs., Section 5.16, and 9.9; 0C-3-98




Final Acceptance

23 USC 106, 114
Stand. Specs., Section 5.16; 0C-3-98




*FHWA Non-Voting Member of Claims Committee

(1) Non-exempt projects are defined as new or reconstruction projects on the Interstate that exceed $1 million and other NHS projects jointly agreed upon.


Alan J. Friesen 8/23/00 Ronald R. Wheeler 9/27/00
Alan J. Friesen
Division Administrator
Federal Highway Administrati
Date Ronald R. Wheeler
Secretary of Transportation
South Dakota Department of Transportation

Attachment #1

Emergency Relief

The FHWA Emergency Relief (ER) Program will be jointly administered through the SDDOT and the Division Office. Policy and eligibility issues shall be determined in accordance with 23 CPR 668 and FHWA's Emergency Relief Manual. FHWA oversight on ER projects let to contract will generally be in accord with this stewardship agreement; however, close coordination is needed to ensure timely response to funding needs and special concerns with the ER program.

When a disaster does occur, a Governor's Disaster Declaration is required to begin the ER process. After receiving the Disaster Declaration, the SDDO'T and counties should proceed with performance of emergency repairs to restore essential travel, and protect remaining facilities. Emergency work performed prior to the Disaster Declaration may be made eligible if a beginning date is designated prior to the time when this work was performed.

Detailed damage inspections will be performed by SDDOT, FHWA, and county highway personnel as applicable on all potential sites. During these detailed inspections, the scope of work and the breakdown of emergency versus restoration repairs shall be determined (**see below). From these detailed inspections, the Request for Federal-Aid Project Approval cmd Agreement (DOT-292) will be submitted by SDDOT to FHWA for the estimated amount, or actual costs if work has already been completed.

The main intention of the detailed inspections is to determine the eligibility and the scope of work needed at each site. If a project is to be designed and let to contract, the proposed design shall have FHWA concurrence for ER eligibility prior to award of the contract. This includes roadway templates for permanent grade raises. ER projects will be designed to match existing site conditions or current 3R Standards, whichever is greater. If there are proposed changes from the original scope of work, or quantities are significantly different from the detailed inspection, FHWA concurrence will be obtained for this additional work. This would include, but not be limited to Construction Change Orders (CCOs) that have a significant change in project costs or quantities. ER projects are normally considered categorically excluded for NEPA purposes. Environmental clearance will typically be handled by the batching process or on an individual project basis. The FHWA Division Office reserves the right to perform a final inspection on any approved ER project to ensure the approved scope of work was performed.

**For the Traditional type disaster repairs, emergency work includes protective measures to protect remaining facilities, as well as any emergency short-term work needed to restore essential travel. Emergency work completed within the first 180 days of the declared disaster is eligible for 100 percent Federal funding. Restoration work performed for a Traditional type disaster includes any work which restores the facility to a pre-disaster condition. This restoration work is eligible for Federal funding at the normal pro rata share. Emergency work not completed within the first 180 days for the disaster is only eligible for Federal funding up to the normal pro rata share.

For Basin Type disasters, all grade raise work except the final surfacing is considered emergency work and is eligible for 100 percent Federal funding if it is completed within the first 180 days of the disaster. Final surfacing is considered restoration work and will be reimbursed at the normal pro rata share. Any emergency work completed after the first 180 days of the disaster will also be reimbursed at the normal pro rata ,bare.

Attachment #2


Although Transportation Enhancement (TE) projects are generally exempt from oversight by FHWA (i.e., not a construction or reconstruction project on the interstate), project eligibility will be determined jointly by SDDOT and FHWA. Projects eligible for TE funding must meet one of the following qualified enhancement activities [23 USC 101(a)]:

There is no regulatory material beyond the qualifying criteria. General guidance on Transportation Enhancements is included but not limited in the following memorandums/ correspondence:

Before submittal of the Request for Federal-Aid Project Approval and Agreement (form DOT- 292), SDDOT will secure FHWA's concurrence on the eligibility of proposals for TE funding which are questionable. Typically funded projects, such as bicycle and hiking trails, may be submitted for authorization without prior concurrence. The project authorization request will indicate which of the above categories the project qualifies under for TE funding. Upon authorization/approval of the 292 by FHWA, projects will be advertised and implemented through SDDOT's normal project delivery process and in accordance with this Stewardship Agreement by the SDDOT and/or the project sponsors. As part of the Federal-Aid Highway Program, all TE projects must follow applicable Federal requirements including ROW, NEPA, etc. However, some flexibilities are afforded TE projects – these are detailed in the "Cross- Cutting Federal Requirements for Transportation Enhancements" dated May 31, 1994.

Attachment #3




    While greater flexibility overall exists for states under ISTEA and TEA-21, Civil Rights programs are considered non-exempt and, accordingly, continuing Federal Highway Administration (FHWA) involvement/ oversight is required. Federal regulations contained in 23 CFR 200 and 230; 49 CFR 21 and 23 set forth applicable program requirements. The thrust of FHWA Civil Rights requirements is to ensure nondiscrimination and full participation of all individuals in programs/projects/ contracting opportunities which involve Federal financial assistance.

    Division office civil rights responsibilities encompass the following components: state internal Equal Employment Opportunity/Affirmative Action Plan (EEO/AAP); Disadvantaged Business Enterprise (DBE); Contract Compliance; Supportive Services (DBE & OJT); Indian Preference; and Title VI. These components have well-established program submission and reporting mechanisms in place as noted (see page 3.3).

    The responsibility for approving state civil rights submissions and determining whether program implementation is in compliance with laws and regulations rests with FHWA's division offices. Accordingly, the division office by virtue of ongoing contacts and reviews, plays a crucial role in the process. Division office input also entails providing (through continuing interaction) advice and assistance on requirements, standards and best practices.


    The division office organization structure ( Chart I, page 3.2a) includes a realty/civil rights specialist. Coordination exists within the division office with all other staff for the Title VI Program. In addition, significant coordination is maintained with operations engineers on DBE Program developments at the project level and contract provision required civil rights actions. The financial program manager is likewise consulted on supportive services funds obligations and expenditures. Overall, civil rights management/coordination/ reporting is the responsibility of the realty/civil rights specialist.

    Civil Rights programs within the South Dakota Department of Transportation (SDDOT) is under the Audits and Compliance Section ard is comprised of a civil rights program manager, a DBE compliance officer, and a labor compliance/supportive services officer (see Chart II, page 3.2b). Necessary authority has been delegated to the civil rights program manager for the management and implementation of effective programs. All civil rights programs are accomplished by the SDDOT in-house.


    Civil Rights programs are an ongoing emphasis of FHWA; the pursuit of non­discrimination and equal opportunity are continuing priorities. Every Federal-aid highway project/program must be consistent with some aspect(s) of civil rights requirements.

    Specific civil rights designee responsibilities/initiatives include:

    • Review SDDOT Civil Rights program submissions and make recommendations as appropriate. Follow up recommendations in resolving program/compliance issues.
    • Ensure that Civil Rights program reports prepared by the SDDOT are accurate and timely.
    • Monitor Civil Rights program areas. Reviews may be routine or address problem areas that surface. Review techniques are utilized; i.e., team reviews, peer reviews, process reviews, etc.
    • Maintain regular contacts with SDDOT Civil Rights personnel to keep informed of current activities and provide technical assistance as needed. Promote teamwork and partnering to enhance program effectiveness.

Chart I


South Dakota Division Org Chart. Click image for text version.

December 1998

South Dakot DOT Oranizational Chart December 1998. Click image for text version.


Report or Submission Citation Due Date
Quarterly Report of DBE Awards and Commitment 49 CFR23.49 Within 15 Days Following End of Quarter
Federal-Aid Highway Construction Contractor's Report (PR-1392) 23 CFR 230.121(c)(3) September 25
Annual OJT Goals and Previous Year Accomplishments Report 23 CFR 230.121 (C)(2) January 1
Fiscal Year DBE Goal Submission 49 CFR 23.45(g)(3)(i) August 1
State Internal EEO/AAP Update, and EEO-4 Data Report 23 CFR Subpart C, Appendix A July 1
Quarterly Contract Compliance Review Schedule 23 CFR230.409 December 10, March 10, June 10, and September 10
Contract Compliance Review Reports 23 CFR 230.413 As completed
Supportive Services Funding Requests and Work Plans 23 CFR 230.113 As requested
Fiscal Year Title VI Update 23 CFR 200.9(b)(4) & 49 CFR 21.9(b) October 1
Historically Black Colleges and Universities Program Plan and Accomplishments Report Executive Order 12876 As requested
DBE Program Update 49 CFR 23 January 1



    Right-of-way programs are considered non-exempt under TEA-21, and accordingly, continuing FHWA involvement/oversight exists. The Uniform Act and its regulations contained in 49 CFR 24 are the key requirements within the Right-of-Way area and are applicable to all Federal-aid projects. Additionally, regulations contained in 23 CFR 710, 712, 713, 720, 740, 750 and 751 are applicable. Division office Right-of-Way responsibilities encompass the following key components: Appraisal/Appraisal Review; Acquisition; Relocation Assistance/Payments; Property Management; and Outdoor Advertising/Junkyard Control.

    In addition to meeting the regulation requirements noted above, FHWA Right-of-Way actions are directed toward management aspects of State programs through assisting with the development of more effective procedures and systems. FHWA has endorsed the operational concepts of: use of risk assessment techniques to determine type, phase, and frequency of evaluation and reviews; a greater state highway agency (SHA) role in managing the Right-of-Way program; the concept of quality assurance reviews by SHAs; and the use of team reviews by FHWA and State offices. Right-of-Way is faced with the challenge of applying the streamlining provisions of TEA-21while providing for compliance with the Uniform Act and other controlling regulations.


    The Division office organizational structure includes a Realty/Civil Rights Specialist. Internal coordination within the Division office on Right-of-Way matters primarily involves operations engineers for such items as right-of-way relinquishments/disposals, access control, encroachments, right-of-way certificates at PS&E, etc. Also, some coordination exists with the Financial Program Manager concerning authorizations, project agreements, claims, etc. Overall right-of-way management, coordination, and monitoring is the responsibility of the Realty/Civil Rights Specialist. Regular contacts (both formal & informal) are maintained with the SDDOT to keep informed of activities, discuss new and evolving policies and to assist with resolving issues as necessary.

    Right-of-Way operations at the SDDOT primarily involve Division of Planning/ Engineering (Right-of-Way Program) and Division of Operations (Beautification/ Property Management Program) personnel (see CHART II, page 3.2b). There is also some involvement by Local Government Assistance & Legal Offices personnel. The bulk of Right-of-Way operations are centralized (accomplished by personnel located in the central office) with limited decentralized operations involving highway beautification (outdoor advertising/junkyard control). With the exception of some Surface Transportation Program projects, Right-of-Way activities are generally accomplished by SDDOT in-house personnel. Limited right-of-way consultant activity exists in the form of fee appraisal. SDDOT Right-of-Way personnel have implemented simplified/streamlined procedures to the extent feasible; many acquisitions are relatively low value in nature. Moreover, much of SDDOT's Right-of-Way program is Federal-aid non­participating.


    FHWA nationally has indicated support for maximum use of flexibility and delegation within the Right-of-Way program. Accordingly, the following approval actions and approval authorities are applicable within Right-of-Way providing that appropriate procedures have been agreed to with FHWA.

 Approval Actions Citation APPROVAL AUTHORITY
Interstate, 4R >S1 Million 3R Interstate and NHS NON-NHS Exempt
Use of Fee Negotiators 23 CFR 710.203(e)(3) SDDOT SDDOT SDDOT
Interest on Right-of-Entry Payments 23 CFR 710.304(j)(5) SDDOT SDDOT SDDOT
Non-Highway Use and Occupancy of Right-of-Way 23 CFR 645.203 & 23 CFR 712.203(b)(1) FHWA FHWA SDDOT
Hardship and Protective Buying 23 CFR 712.204(d) FHWA FHWA FHWA
Use of Fee Attorneys 23 CFR 712.408(a) FHWA FHWA FHWA
Airspace Agreements 23 CFR 713.204 FHWA FHWA SDDOT
Disposals of Excess Right-of- Way 23 CFR 713.305 FHWA FHWA SDDOT
Land Service Facilities 23 CFR 712.805(c)(1) SDDOT SDDOT SDDOT
Temporary Use of Right-of- Way 23 CFR 713.103(h)(i) SDDOT SDDOT SDDOT
Disposal of Access Control and Right-of-Way Relinquishment 23 CFR 713.304(b) & 23 CFR 620.203(d)(i) FHWA FHWA SDDOT
Appraisal Fees 23 CFR 720.202(d)(2) SDDOT SDDOT SDDOT
Right-of-way Certificates 23 CFR 635.309(c) FHWA SDDOT SDDOT
Right-of-Way Manuals 23 CFR 710.205 FHWA FHWA FHWA
Encroachments 23 CFR 1.23 & 23 CFR 712.203 FHWA FHWA (1) SDDOT (2) SDDOT (2)
Utility Accommodation 23 CFR 645.203 FHWA SDDOT SDDOT
  1. For Longitudinal installations on Interstate.
  2. When Accordance with Utility Accommodation Plan

Specific Division office Right-of-Way responsibilities/ initiatives encompass program administration actions, information flow and reporting, and the implementation of an ongoing monitoring program for assuring that SDDOT Right-of-Way operations are in accordance with controlling laws, regulations and procedures. Right-of-Way monitoring will emphasize the use of risk assessment and team techniques to the extent feasible. Substantial and meaningful issues are the focus of reviews. On-going monitoring of LPA Right-of-Way activities is the responsibility of the SDDOT in accordance with regulations.

The following reports are required within the right-of-way area:

Annual Real Property Acquisition Report, and 12/1
Annual Outdoor Advertising/Junkyard Report.  



    The National Environmental Policy Act (NEPA), as amended, and the regulations of the Council of Environmental Quality (CEQ), 40 CFR 1500-1508, are the driving force for highway related environmental laws, regulations and procedures. FHWA regulations contained in 23 CFR 771, set forth applicable requirements. The overall objective of FHWA requirements is to ensure that environmental factors are given full consideration along with engineering, social, and economic factors in project decision-making. Environmental programs include the following key components: environmental documentation including 4(f); public involvement; wetlands; water quality (404 and storm-water permits); historic/archeological (106 process); air quality/conformity; impacts assessment, e.g., sociaUeconomic, visual, farmland, energy, etc.; threatened/endangered species; hazardous waste; and transportation enhancements. FHWA emphasis is on managing, maintaining and operating existing transportation systems, while giving state and local governments the flexibility to meet their community goals, as well as their transportation needs.


    Overall environmental programs management/coordination is the responsibility of the operations/environmental engineer. All division office personnel who are involved with environmental programs have a direct working relationship with their counterpart SDDOT personnel. Regular contacts (formal and informal) are maintained as necessary.

    Due to the wide range of both project and program activities in the environmental area, considerable coordination exists within the division office involving operations engineers who have the responsibility for project related environmental oversight; the planning and research coordinator who has responsibility for Clean Air Act conformity matters and the assistant division administrator/program coordinator who has supervisory responsibilities for environmental and transportation enhancement activities.

    Environmental operations at the SDDOT are coordinated by a three-person staff located in the Division of Engineering (project development program). The vast majority of SDDOT projects are environmentally Class II and the remainder Class III. Significant use is made of programmatic and batching procedures to streamline the environmental approval process. Considerable environmental activity is accomplished based on in-place memorandums of agreement, early coordination and established procedures. Technical expertise not available in-house is obtained by the use of consultants and/or other state agency personnel.


    FHWA's goal is to become an environmentally conscious organization which practices active leadership in working with the SDDOT partners and others to protect and enhance the environment.

    Specific division office environmental and coordination responsibilities with SDDOT include:



    The major function of "operations" is to ensure federally funded projects are designed, constructed and maintained in accord with applicable Federal requirements, principally Title 23 CFR (Highway) and other Federal provisions related to project development (e.g., environmental laws, Americans with Disabilities Act, uniform relocation provisions, Federal contract provisions, etc.).

    TEA-21 further redirected the stewardship role of FHWA (initiated by ISTEA) in the area of highway operations. States are now required to take more responsibility for project development activities. The SDDOT has the first line responsibility for all projects other than construction/reconstruction projects over $1 million on the Interstate system. This includes development of design and construction standards for all non-NHS projects.

    FHWA's stewardship in the operations area will continue its program focus. The principle oversight techniques to be applied (as part of this program focus) will be the process review/product evaluation (PR/PE) approach. This will include expanding engineering expertise; providing technical assistance; promoting new technology, supporting quality initiatives and SHRP implementation; and applying innovative contact procedures, enhancing safety, and integrating planning and project development procedures.

    The primary regulatory guidance for the operations unit is contained in 23 CFR Subchapter G and Subchapter H; specifically Sections 620, 625, 626, 630, 633, 635, 637, 645, 646, 771 and 777. This regulatory guidance includes provisions for "alternate procedures" (e.g., 23 CFR 645.119, 646.220) that can be applied as part of the project development process. Where the SDDOT opts to apply these alternate procedures, approval shall be obtained from the FHWA.


    The operations section within the division office includes the assistant division administrator (ADA ) and two field operations engineers (see Chart I, page 3.2a). The major functions of design, construction, and maintenance are individually assigned to the operations engineers and they are responsible for developing the corresponding review and reporting activities. The operations unit serves as the focal point for coordinating project development activities with the SDDOT and provides the technical expertise in the areas of geometric design, construction, contract administration, and maintenance.

    The operations engineers coordinate extensively with other division staff (planning, structures, right-of-way, and fiscal) to review planning output, develop program policies, identify safety needs, incorporate system standards, monitor project specific activities and authorizations, and implement team review activities for the division.

    The operations unit maintains a very direct working relationship with both the Planning Engineering and Operations Divisions of SDDOT.

    The SDDOT is basically a centralized organization with most engineering functions being done in-house through the central office. In the preconstruction area, SDDOT uses design consultants for major projects with the regional and area offices designing minor overlay projects. The construction and maintenance activities are administered by the regional and area offices with technical guidance provided by the central office.

    SDDOT's Division of Engineering has 8 office engineers/program managers, which provide the primary contacts on program issues, while the operations division has 2 engineers, 4 regional engineers and 12 area engineers, which provide the primary contacts on project- related activities.


    TEA-21 allows the states significant flexibility in handling the Federal-aid Highway Program. In accord with the SDDOT/FHWA Stewardship Agreement, the following table depicts the review, oversight and approval authority for FHWA and SDDOT for Interstate, NHS, and non-NHS projects.

Preliminary Engineering FHWA SDDOT SDDOT
Environmental Evaluation FHWA FHWA FHWA
Design Exception FHWA SDDOT SDDOT
Authorization for Construction FHWA FHWA FHWA
Concurrence-In-Award FHWA SDDOT SDDOT
Time Extensions FHWA SDDOT SDDOT
Construction Inspection FHWA SDDOT SDDOT
Final Inspection FHWA SDDOT SDDOT
Final Acceptance FHWA FHWA FHWA

SDDOT's Standard Specifications (book) and Supplemental Specifications are approved by FHWA for use on NHS projects. The approval of project special provisions is included as part of the PS&E approval.

*Assistance by FHWA, if requested by SDDOT.

To support these responsibilities, the operations unit will work with the SDDOT through the use of team activities, specifically the PR/PE review technique. The specific subject of these reviews for the design, construction, and maintenance elements will be identified as part of the division office Annual Work Plan.



    "Safety" is an integral element in the overall highway program and encompasses a number of functional areas within the division office, including operations, structures, and safety. Safety items and issues are addressed on both a program and project basis. Major program activities include the 402 3+ Program (23 CFR 1204); Highway Safety Improvement Program (HSIP) (23 CFR 924); development and implementation of the Safety Management System (SMS) (23 CFR 500); Corridor Improvement Program (CIP); safety considerations in the design, construction, and maintenance of the State's highway program.

    The 402 Program (Highway Act of 1966) requires that "Each state shall have a highway safety program approved by the Secretary, designed to reduce traffic accidents and deaths, injuries, and property damage resulting therefrom. Such programs shall be in accordance with uniform guidelines promulgated by the Secretary" (Title 23, Section 402). The FHWA has direct oversight responsibility for 3 of the 18 program guidelines. These include Identification and Surveillance of Accident Locations; Highway Design, Construction and Maintenance; and Traffic Engineering Services. FHWA share a fourth (i.e., Pedestrian Safety) with NHTSA. The 402 3+ Program in South Dakota focuses on providing basic traffic engineering services to locals in an effort to reduce the number and severity of traffic accidents. Program oversight is coordinated with the South Dakota Office of Highway Safety (SDOHS) and NHTSA.

    The HSIP (Highway Safety Act of 1973) requires that "Each State shall conduct and systematically maintain an engineering survey of all public roads to identify hazardous locations, sections, and elements, including roadside obstacles and unmarked or poorly marked roads, which may constitute a danger to motorists and pedestrians, assign priorities for the correction of such locations, sections, and elements, and establish and implement a schedule of projects for their improvement" (USC 23 Section 152). This also includes the elimination of hazards at railway-highway crossings (USC Section 130). The emphasis on a HSIP is included under TEA-21; 10 percent of the STP funds must be spent on highway safety improvement projects.

    The CIP is directed toward improving corridors through teamwork involving engineering, education, enforcement, and emergency medical services personnel. The program is presently under development in South Dakota and will provide a coordinated means of addressing the variety of safety issues associated with the driver, vehicle, and roadway.


    The division office organization includes a safety/traffic engineer who works closely with the division operations engineers in coordinating project specific safety items in design, construction, and maintenance. Extensive coordination is also maintained with the structures engineer concerning structural safety features. Interaction on other program and project activities with other division office personnel takes place on an "as needed basis".

    "Safety" within the SDDOT is spread among several program offices. HSIP is the responsibility of the Local Government and Air, Rail and Transit sections of the Division of Fiscal and Public Assistance. Accident Records of the Data Inventory section, safety features in Road Design and Bridge sections all of the division of Planning/Engineering, and traffic safety is covered by the construction/maintenance section in the Division of Operations. Although this ensures "safety" is fully integrated into the project development process, the spreading of responsibilities limits the high-level program focus and complicates coordination.


    The division safety/traffic engineer and the other division personnel strive to enhance the safety of South Dakota highways. To carry out this goal, there is coordination with NHTSA, SDDOT, SDOHS, and local agencies to identify needs, plan appropriate solutions and then work to implement them. The safety/traffic engineer works through membership on several committees. These committees provide the forum to disseminate information, new technologies and share safety expertise.

    Specific safety requirements and emphases areas of the safety/traffic engineer include the following:



    Pavements and materials are instrumental to the highway program because they provide the foundation that allows the Nation to compete in the global economy and move people and goods in an energy efficient manner. The major requirements for the Pavements and Materials program are contained in the following parts of title 23 of the Code of Federal Regulations: 500 - Pavement Management, 626 - Pavement Design Policy, 635 Subpart D - General Material Requirements, 637 Subpart B - Quality Assurance Procedures for Construction.

    The main thrust of regulations on pavement management and design is to encourage the development of pavement management systems or a "systematic process that provides information for use in implementing cost-effective pavement reconstruction, rehabilitation, and preventative maintenance programs and that results in pavements designed to accommodate current and forecasted traffic in a safe, durable, and cost effective manner."

    When the latest Quality Assurance Procedures for Construction went into effect on July 29, 1995, it provided more flexibility to the states in designing their material and construction acceptance programs. The regulations now allow the use of contractor test results in the acceptance decision and allows the use of consultants in the independent assurance program and verification sampling and testing. It also requires each state highway agency (SHA) to develop a quality assurance program which will assure that the materials and workmanship incorporated into each Federal-aid highway construction project on the National Highway System are in conformity with the requirements of the approved plans and specifications. As part of the quality assurance program, the state's central laboratory had to be accredited by the AASHTO Accreditation program by June 30, 1997, and any non-SHA laboratory designated to perform Independent Assurance testing or dispute resolution sampling and testing must be accredited by the AASHTO Accreditation program by June 29, 2000. The regulation also requires that all contractor, vendor and SHA laboratories used in the acceptance decision and all sampling and testing personnel used in the acceptance decision or the independent assurance program must be qualified using state procedures by June 29, 2000.

    The responsibility for approving the state's quality assurance program, specifications and determining whether the appropriate laws and regulations are being complied with lies with the FHWA's division offices.


    The division office's organization structure includes a pavement and materials engineer who is responsible for providing technical assistance in the development of pavement and materials-related specifications and pavement management systems, assisting in the development and implementation of the technician and laboratory qualification programs, and providing input into pavement and materials research. Because of the broad range of activities covered by the pavement and materials program, the pavement and materials engineer works closely with the other division office personnel to provide the requested technical assistance and to fulfill our oversight responsibilities. Regular contacts (both formal and informal) are maintained with the SDDOT to keep informed of activities, discuss new policies and technology, best practices of other SHA, and to resolve any pending issues.

    The pavement and material program is administered by the SDDOT's Divisions of Planning/Engineering and Operations. The duties are split up among several offices within the Division of Planning/Engineering. The Office of Transportation Data Inventory is responsible for performing the traffic counts, Falling Weight Deflectometer and skid testing, and collecting the pavement condition data using the ARAN van. The Pavement Management Unit of the Office of Planning and Programs is responsible for data analysis, development of the pavement performance models and development of the computerized list of recommended projects used to develop the State's Statewide Transportation Improvement Plan. The Office of Materials and Surfacing is organized into the following four activities which are supervised by the Chief of Materials and Surfacing Engineer who establishes major policies and ensures the preparation and submittal of the project's Material Certification.

    The following are some of the duties of the four activities:

    • Materials - provides alternate structural designs for pavement type selection, asphalt mix designs; works with the Region Materials, Bituminous and Concrete Engineers to develop recommendations for typical sections, type and thickness of pavement layers, materials blends and sources and other factors affecting the design and construction of the pavements.
    • Surfacing Plans - responsible for preparing surfacing plans and reviewing the surfacing portion of plans prepared by others.
    • Concrete - develops Portland Cement Concrete Design Mixes for pavement and structures, provides technical assistance to field personnel, and makes annual inspections of the Region Materials laboratories, checking their test equipment by calibration and comparative testing to establish uniformity and accuracy.
    • Geotechnical - provides engineering data including geotechnical design parameters for fill and structure foundations, stability of rock and soil slopes, geologic studies and the effective use of naturally occurring materials.

    The Division of Operations responsibilities are shared by the Region Materials Engineers who administer the Independent Assurance Program and the Area Offices which conduct or oversee the inspection and acceptance sampling and testing on construction projects.


    The division pavement and materials engineer, along with the other division staff, strive to improve the quality of construction projects and the overall condition of the states' highway system through the promotion of pavement design and management principals that reduce Life Cycle Costs. Specific requirements and emphasis areas for the pavement and materials engineer include the following:

    • Assist the SDDOT in developing and implementing technician and laboratories qualification programs and coordinating the approval of the SDDOT's Quality Assurance Program as required by 23 CFR 637 Subpart B.
    • Coordinate the approval of new Special Provisions, Standard Specifications, and changes to the SDDOT's Materials Manual.
    • Maintain regular contacts with the SDDOT pavement and materials personnel to keep informed of current activities and to provide technical assistance as needed.
    • Increase the percentage of kilometer (miles) on the NHS with a International Roughness Index less than or equal to 2.68m/km (170 inches/mile) to over 93 percent within 10 years.
    • Promote the adoption of SUPERPAVE and quality control/quality assurance specifications for concrete.



    The major function of the division office structures engineer is to ensure that structures on public roads are designed, built, maintained, and inspected so they are safe for the traveling public. This function is performed through program oversight techniques (i.e., PR/PE) and through project specific reviews on non-exempt projects which include structural, geotechnical, and hydraulic features.

    Stewardship of the bridge program at the division office level has evolved from a series of legislative and policy initiatives at the national level, often in response to a catastrophic bridge failure. The Highway Bridge Rehabilitation and Replacement Program (HBRRP, 23 CFR 650D) began with the Surface Transportation Assistance Act of 1978 (STAA), reflecting Congress' concern that the nation's backlog of deficient bridges was not being adequately addressed. The HBRRP has been continued in successive authorizations, including TEA 21. HBRRP funds are apportioned to the states based on need as determined by bridge condition and construction cost data. A structure is eligible to be rehabilitated or replaced under the HBRRP as determined by its sufficiency rating.

    The National Bridge Inspection Standards (NBIS, 23 CFR 650C) went into effect on federal- aid highways in 1971. The STAA later required that all public bridges 20 feet and longer be inspected and inventoried. The sufficiency ratings used in the administration of the HBRRP are determined from these bridge inspection results. In 1988, the NBIS was revised to require master lists and special inspections for underwater features and fracture-critical bridges.

    The division office structures engineer is responsible for ensuring that the bridge management system is implemented according to the guidance of 23 CFR 500. The bridge management system is intended to reduce the backlog of bridge needs by enabling the states to analyze condition and performance data and determine the most effective way to invest their limited funds.


    The division office structures engineer is responsible for all structures-related activities. The structures engineer works closely with the division's field operations engineers, providing technical assistance in design, construction, and maintenance areas and coordinating project or program information, as appropriate. The structures engineer also works with the safety/traffic engineer regarding the installation of bridge and approach rail, and crash-testing of other safety appurtenances. With FHWA's emphasis on providing technical assistance and implementing research results and the bridge management system, there is frequent interaction with the division planning and research coordinator. As issues arise, the structures engineer also coordinates with the right-of-way officer and the financial program manager or financial specialist.

    Technical and policy resources for the division structures engineer include specialists in the Technical Centers and the Washington Headquarters Bridge Division. The primary SDDOT contact regarding the HBRRP and new bridge construction projects is the chief bridge engineer in the Division of Planning/Engineering (see Chart II, page 3.2b). The Bridge Design Program includes bridge design, bridge maintenance, bridge construction, and hydraulics activities.

    The primary SDDOT contact regarding the NBIS program is the state highway engineer. Inspections of structures on the state system are performed in-house, through the bridge maintenance engineer in the regional offices. Inspections of structures on the state system are performed in-house, through the bridge maintenance engineer in the regional offices. Inspections of structures off the state system are performed by consultant, through the bridge inventory and inspection engineer in Local Government Assistance. Load ratings for state- owned structures, scour evaluations, and other technical activities are accomplished in Bridge Design.

    The division structures engineer is a member of SDDOT's bridge management task force. This task force is responsible for the development of the management system and reports directly to SDDOT's Executive Team. The bridge maintenance engineer is the head of the bridge management task force.


    Preservation and enhancement of the infrastructure of Federal-aid highways with emphasis on the NHS is an objective under the Mobility Goal of the FHWA Strategic Plan. For the structures section, this enhancement will be measured by the reduction in deficient bridges over a 10-year period. Bridges of the NHS will have a goal of 20 percent or less. NHS and Non-NHS bridges will have a combined goal of 25 percent or less. The structures engineer has the division's leadership role in carrying out this initiative, and supports activities under several other Strategic Plan initiatives. Required stewardship activities can be found in 23 CFR, the Federal-Aid Policy Guide, or policy memoranda, and are as follows:

    HBRRP and New Structures



    The ISTEA of 1991 significantly revitalized transportation planning as conducted by MPO's, state transportation departments and FHWA. TEA-21 of 1998 continued this renewed emphasis in conducting sound transportation planning. States are required to have 3-year Statewide and Metropolitan Transportation Improvement Programs and 20- year Statewide and Metropolitan long-rang transportation plans. The goal, according to TEA-21, codified as 23 USC 134 and 135a, is ". . . to encourage and promote the safe and efficient management, operation, and development of surface transportation systems that will serve the mobility needs of people and freight and foster economic growth and development within and through urbanized areas, while minimizing transportation-related fuel consumption and air pollution."

    This goal is accomplished through the SDDOT's development of the following:

    • Long range transportation plans by SDDOT and the three South Dakota MPO's (Sioux Falls, Rapid City and North Sioux City);
    • Statewide Transportation Improvement Plans (STIP, 3-year project specific plans);
    • Metropolitan Transportation Improvement Program (MTIP, 3-year project specific programs for the Metropolitan areas);
    • State Planning and Research Program (SP&R, annual program of planning work activities); and
    • Unified Planning Work Program (UPWP, regulatory requirements for statewide transportation planning and metropolitan planning are contained in 23 CFR Part 450.

    The division office will concentrate on and maintain an active role in the development of the above planning products. The regulations for program management and coordination of the SP&R program are contained in 23 CFR 420.


    The division office organizational structure includes a planning and research (P&R) coordinator. Because of the broad range of activities and the input needed for the planning function, the P&R coordinator works closely with all of the other division office personnel. For example, Clean Air Act Amendment activities and environmental considerations are coordinated with the operations/environmental engineer. Metropolitan planning meetings and activities are coordinated with appropriate field operations personnel. The STIP, MIP, and Long Range Plans are coordinated with the operations engineers, right-of-way officer, structural engineer, safety engineer, assistant division administrator, and the division administrator.

    The planning functions of SDDOT primarily reside in the Division of Planning/Engineering (see Chart II, page 3.2b). Within the Division of Planning/Engineering, the Planning and Programs and Data Inventory offices are responsible for the planning functions. In addition, within the Division of Fiscal and Public Assistance, planning functions are handled by the office of Aeronautics, Rail and Transit. FHWA's South Dakota Division maintains a strong working relationship with the SDDOT division directors and program managers.

    The division office is also included in the development of many of the SDDOT planning activities. We routinely participate in public involvement activities for the STIP and Long Range Plan (with special emphasis on coordination with tribal governments) and are included as partners in procedural/process development and training activities. Our up-front involvement in the MTIP, STIP, SP&R Work Program, and functional classification has streamlined the review process and provides prompt formal approval.


    In line with TEA-21, the predominate nationwide goal is to implement the planning requirements which will define the operational framework for all state highway agencies. However, there are also specific review and/or approval activities that must be accomplished annually. The following is a list of national requirements as identified in regulation, memorandums, and other supporting documentation:

    • Approvals of functional classification changes;
    • Approvals of urban and urbanized area boundaries;
    • Approval of STIP;
    • Approval of SP&R Work Program;
    • State public road mileage certifications;
    • State certification of planning process;
    • Heavy Vehicle Use Tax Enforcement (HVUT);
    • Series of statistical reports (500 series reports);
    • Highway Performance Monitoring System, submittal/field review;
    • Traffic Monitoring Guide requirements;
    • Traffic Monitoring System;
    • Acceptance MPO TIPs; and
    • Acceptance MPO self-certification.



    The research, Technology Transfer Program and ITS consists of an extensive research element, an expanding technology transfer coordination effort, and a growing Intelligent Transportation System.

    SDDOT participates in national and regional research committees and pooled fund studies, as well as their own research program, which includes sponsored research at universities and with consultants, and in-house research with SDDOT personnel. All research is coordinated through the Research Review Board, which includes SDDOT top management along with representatives of city and county governments and FHWA. Each research study is developed, tracked and implemented through a technical panel. All of the activities are coordinated, documented and approved by FHWA through Part II of the State Planning and Research (SP&R) Program. The research activities are submitted in the SP&R work plan at the beginning of each state fiscal year (July 1), with updates during the year. The implementing regulations for Part II of the SP&R work plan are contained in 23 CFR 420.

    The key components of the FHWA/SDDOT technology transfer coordination process include:

    • The activities sponsored by FHWA's Technology Applications Program;
    • Demonstration Projects;
    • Application Projects,
    • Test and Evaluation Projects, and
    • Special Projects.
    • Local Technical Assistance Program (LTAP);
    • National Highway Institute (NHI) Training;
    • Promotion of new technologies through day-to-day and other formal and informal contacts with SDDOT personnel.

    All division office personnel have responsibilities for technology transfer and routinely coordinate appropriate program issues with their SDDOT counterparts. Formal reporting and approvals include; (1) Technology Applications Program reporting requirements, (2) LTAP Work Plans and budget and progress reporting, and (3) formal requests for NHI training.

    SDDOT's Research Office also administers the State's ITS Program. The primary focus of SDDOT's ITS program is Commercial Vehicle Operations (CVO) applications. SDDOT is also involved in providing traveler information such as weather and road conditions. The TEA-21 has continued FHWA's commitment to the ITS Program. Additional requirements were established concerning conformance with the National ITS Architecture and Standards. All federally funded ITS projects must conform with the National ITS Architecture. At this point much of the division office activities are providing information, education, technical assistance and marketing ITS. A majority of planned deployments are in the ITS CVO area.


    The division office planning and research coordinator is assigned the primary research, technology transfer (12) and ITS coordination functions.

    The planning and research coordinator works with all of the other division office personnel to accomplish research, T2, and ITS tasks. For example, all of the professional staff serve on research technical panels and all of the professional staff will be involved in promoting new technology (including all of the Technology Applications Programs).

    NI-II training is primarily coordinated by the assistant division administrator, with input and promotional activities by all division office personnel. Experimental project reporting is coordinated by one of the operations engineers.

    Our primary contact for research, technology transfer, and ITS activities at the SDDOT is the research engineer, who is nationally known for innovative, cost effective research products, such as the South Dakota Road Profiler, South Dakota automated bridge weigh-in-notion system, South Dakota De-Icer and other activities. He is also recognized as a national expert in managing a research program. He serves on a number of national panels as part of pooled fund studies and is a valuable resource for FHWA in its efforts to revise the research program nationwide.

    The division office maintains a strong working relationship with the SDDOT's research staff and fosters an open communication link among SDDOT, division, resource centers and Headquarters offices. The division will coordinate oversight of research and T2 activities through its representation on the Research Review Board, the South Dakota Local Technical Assistance Program (LTAP) Advisory Board, and several research technical panels. We will also participate in special training activities, brainstorming sessions, and open forums at the Research Review Board and LTAP Advisory Board meetings.


    TEA -21 and the national strategic plan reflect several objectives to improve research and technology transfer programs. Many of the objectives relate to FHWA internal operations, primarily at the national level. Items specific to South Dakota are reflected in the South Dakota Division Annual Work Plan.

    Recurring annual stewardship activities include:

    • Review and approve Part II of the SP&R Work Program, and
    • Review and recommend action on the LTAP Work Program and Budget



    Financial management activities are by their very nature pervasive, cross-cutting all FHWA programs and functions. For this reason, financial management activities, unlike many other FHWA disciplines, are not directly affected by TEA-21 exemptions, such as 23 USC 106(c) and 109(p). Nor are financial management activities as dramatically affected by the increased emphasis on stewardship/oversight via process review.

    The main function of the administration/financial management section is to obligate Federal-aid funds and make payments for the Federal share to the South Dakota Department of Transportation (SDDOT) in accordance with Title 23, CFR, Chapter 1, Subchapter B, Parts 140, 172, and 190; Subcapter G, Parts 630, 635, 645, 646, 650, 652, 656, 660, and 668; Subchapter H, Parts 710, 712, 750, and 751; and Subchapter J, Part 924.

    Each fiscal year, usually on October 1, Headquarters issues apportionment notices for the various classes of funds, along with the obligation limitation for the fiscal year. Within these limits, the SDDOT develops its construction program to be funded from each class of funds.

    Each project is reviewed to determine if it is eligible for the funding requested. Calculations are made to assure that the Federal share is correct for each class of funds involved.

    After the contract is awarded, the SDDOT adjusts the funding based upon the actual bids received and requests that a Project Agreement (DOT-292) or partial project agreement be approved. The project agreement sets the upper limit of Federal funds that may be expended on a project. After the project agreement is approved, the SDDOT may begin to submit claims for the Federal share of work in place. The project agreement may be modified, both upward or downward, based upon overruns and underruns, as substantiated by approved construction change orders (CCO's).

    The primary vehicle for carrying out financial management stewardship activities is via an ongoing program of Quality Financial Management Initiatives (QFMIs). The division office, in conjunction with the State, will identify areas where quality financial management initiatives are needed, establish priorities, and conduct quality initiatives in those areas. The purpose of the initiative will be to identify ways to improve the process to achieve the best business practice.


    The Administration/Financial Management Section is comprised of a financial program manager, a computer specialist, a staff assistant, and an administrative assistant, who carry out the duties associated with sound financial management.

    The administration/financial management section personnel work with all other division office personnel to accomplish the financial task, in areas such as voucher reimbursement, determining construction engineering costs, project approval and authorization, PS&E documents, project agreements, advance construction, force account construction, utility work, railroad-highway projects, bridge replacement and rehabilitation projects, pedestrian and bicycle projects, right-of-way and relocation assistance reimbursement, highway beautification, junkyard control, landscape and roadside development, etc. Reviews are coordinated with, and expertise sought from other division personnel.

    The South Dakota Division maintains a strong working relationship with the SDDOT Project Development Office, which requests authorization and project agreement for the projects using the SDDOT developed Form DOT-292; the Division of Fiscal and Public Assistance which electronically submits claims for the Federal share using the electronic PR-20 and prepares Final Vouchers to close projects; and the Audits and Compliance Section, which conducts audits to assure that the funds are expended in accordance with Federal regulations. The Audits and Compliance workforce reports directly to the Secretary of Transportation. This assures a clear separation of duties.


    The following elements comprise components or subsystems within the FHWA's Financial Management Program. The overall program constitutes the universe within which the administration/financial management section personnel conduct stewardship/oversight activities via QFMIS. The division office, in conjunction with State counterparts will determine the most effective mix of financial management oversight activities to perform (i.e., quality financial management initiatives process reviews, detail project monitoring, etc.). The specific requirements and emphasis areas which drive the activities of the administration/financial management section are listed below:

    • Fiscal Management Information System (FMIS)--FHWA personnel input project financial and statical, into FMIS. The data is obtained from authorization, project agreement, and final voucher documents.
    • PR-20 Warehouse Electronic Signature Payment System--SDDOT personnel transmit payment data electronically, mainframe-to-mainframe, into FHWA's PR- 20 warehouse system. This system also electronically affixes SDDOT's approval signature. FHWA then accesses the system, reviews the data and approves the payment.
    • Electronic Data Sharing (the sharing of electronically stored data between the SDDOT and FHWA).
    • Approval of Authorizations on Exempt projects, Project Agreements and Modified Project Agreements.
    • Approval of obligations of the Surface Transportation Program.
    • OIG Audit coordination to remedy findings.
    • Approval of current billing and consolidated vouchers.
    • Represent the South Dakota Division at all bid lettings.
    • Approval of final vouchers.
    • Monitor all Federal-aid projects to assure swift close-out and release excess Federal-aid funds.

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