Printable version (pdf, 247 kb)

Stewardship and Oversight Agreement

(2008, Revision 01)
Idaho Transportation Department
Federal Highway Administration: Idaho Division

Original Signed By:

Pamela K. Lowe Date
Director ITD

Peter J. Hartman Date
Division Administrator FHWA

TABLE OF CONTENTS

• I. Purpose
• II. Background
• III. Division, State and Local Roles and Responsibilities
  1. Federal Highway Administration, Idaho Division
  2. Idaho Transportation Department
• IV. Methods of Program Oversight
  1. Project Oversight
  2. Program Oversight
  3. Process Reviews
  4. Compliance Indicators/Measures
• V. Delegated Responsibilities
• VI. Control Documents
• VII. Delegation of activities to LHTAC
• VIII. Method of Oversight for Local Public Agencies
  1. Project Oversight
  2. Program Oversight
  3. Process Reviews
  4. Compliance Indicators/Measures
• IX. Review of the Agreement
• X: Signatories
• APPENDIX A
• APPENDIX B

I. Purpose

Pursuant to 23 U.S.C. 106 (c), the Federal Highway Administration (FHWA) and the Idaho Transportation Department (ITD) agree to follow the procedures set forth in this Stewardship Agreement (hereafter referred to as the "Agreement"), which outlines their respective oversight responsibilities in the delivery of Federal-aid projects.

The purpose of this Agreement is to formalize the roles and responsibilities of the Idaho Division of the FHWA and ITD in administering the Federal-Aid Highway Program (FAHP). This Stewardship and Oversight Agreement outlines a consistent risk-based approach for the FHWA, Idaho Division and the ITD to effectively and efficiently manage the public funds and to ensure the FAHP is delivered in accordance with laws, regulations, policies, and good business practices. The ITD accepts responsibility as the project approval authority for delegated activities in accordance with Section 106 of Title 23, United States Code (USC).

Since Title 23 USC does not recognize local entities as direct recipients of federal-aid funds, local agencies cannot take the place of the ITD in the administration of the Federal-aid highway program. ITD is permitted to delegate certain activities, under its supervision, to local agencies (cities, counties, private organizations, or other state agencies) under federal regulation 23 CFR 1.11 and 635.105. ITD has chosen to delegate certain activities to local agencies for the Federal-aid highway Program on the local system and ITD accepts stewardship responsibility for those activities.

The FHWA retains overall responsibility for the FAHP and this Agreement does not preclude the FHWA from accessing or reviewing any Federal-aid program and/or project and does not replace the provisions of Title 23, USC. This Agreement supersedes all past agreements, including the revised Oversight Agreement signed 11/17/03.

II. Background

Section 106 of Title 23, United States Code, requires FHWA and ITD to enter into an agreement that documents the delegation of responsibilities. The FHWA Stewardship/Oversight Agreement Guidance issued May 8, 2006, encouraged all division offices to implement a comprehensive approach in developing their Stewardship and Oversight Agreement. The Safe, Accountable, Flexible, Efficient, Transportation Equity Act: A Legacy for Users (SAFETEA-LU) of 2005 further defined the requirements of stewardship and oversight responsibilities including increased efforts pertaining to major projects. SAFETEA-LU builds on the foundation of two laws that brought surface transportation into the 21st century – the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and the Transportation Equity Act for the 21st Century (TEA-21) of 1998. SAFETEA-LU promotes more efficient and effective federal surface transportation programs by focusing on transportation issues of national significance while giving state and local transportation decision makers the ability to enhance transportation systems and implement innovative solutions to transportation challenges.

III. Division and State Local Roles and Responsibilities

This agreement addresses ITD's assumption of FHWA's project responsibilities on select projects as provided by 23 USC 106(c) and the assumption of some project activities by Local Public Agencies under 23 CFR 1.11 and 635.105.

Federal Highway Administration, Idaho Division

It is the intent of this Agreement to delegate the maximum reasonable authority from FHWA to ITD under Title 23 regulations providing there is assurance that processes are being followed and there is compliance to the laws and regulations.

• The provisions of this agreement do not modify the FHWA's non-Title 23 program oversight and project approval responsibilities for activities as listed in Section V.
• FHWA will monitor the FAHP and maintains review and/or approval authority (as defined in Appendix A) of non-delegated activities. The FHWA and the ITD are responsible for ensuring financial integrity and compliance with applicable laws and regulations.
• FHWA can review any program or project including those that have unique features, high-risk elements, unusual circumstances, or projects included in program and/or process reviews.
• FHWA will conduct verification activities to assure that the laws, regulations, policies and agreements are followed in the expenditure of Federal-aid Highway funds in Idaho. These oversight activities are detailed in Section IV.

Idaho Transportation Department

The ITD is empowered through delegation as provided under Federal law to monitor, review and/or approve activities related to the use of Federal-aid funds. The ITD, in conformance with Title 23, USC accepts responsibilities for delegated duties in this Agreement. ITD's responsibility applies to both ITD administered and local public agency administered projects.

• ITD agrees that all project actions will be carried out on behalf of FHWA according to laws, regulations, policies and established agreements and that processes and controls are in place to fully implement these responsibilities.
• ITD will provide the necessary processes, approvals, oversight, and review to ensure that delegated projects receive adequate supervision and inspection, and that they are completed in conformance with approved plans and specifications and applicable federal requirements.
• Annually on September 30, ITD will certify to FHWA that local Agencies have the staff, controls and processes in place to fully implement the activities which have been delegated to them. The certification will include a listing of all verification activities that ITD has undertaken to assure that laws, regulations, policies and agreements are followed.
• In matters concerning questionable eligibility for Federal participation in the programming, development, and construction of Federal-aid projects, ITD will consult with FHWA or FHWA may choose to become involved in determining eligibility. Procedures have been established to ensure that actions taken, which are not in compliance with applicable laws, regulations, policies and established agreements, are identified by ITD and coded in ITD's accounting system as Federal-aid non-participating.

IV. Methods of Program Oversight

Program oversight refers to FHWA and ITD's daily stewardship of the FAHP and ensures Federal program requirements are met. The following is a detailed description of each technique used in providing stewardship and oversight of the FAHP.

a. Project Oversight

Annually, FHWA and ITD will review the program of scheduled projects to determine which projects will be administered as FHWA full oversight projects and which will be carried out as described in Section V. ITD will initiate this action. The criteria for selecting full oversight activities will include:

• Technical complexity (bridge design, geotechnical challenges, new procedures).
• Environmental Impact Statement required.
• Special environmental challenges.
• New alignment projects.
• Urban projects where utilities/right of way add to the degree of difficulty.
• A range of project types (Interstate, NHS, and STP).
• A sampling of projects being administered by each district and Local Public Agencies.

In addition, FHWA and ITD will annually review the list of current full oversight projects and determine whether specific phases of project development should be full oversight.

b. Program Oversight

Program assessments provide another avenue to determine the performance of the FAHP. Assessments include joint risk assessments, self-assessments, the Program Delivery Improvement Tool (PDIT), and others. These tools are based on the common concepts of identifying strengths, areas of concern, opportunities, and sharing "best" practices to continually improve the programs. Program assessments may be triggered by national requirements/ initiatives or the desire to strive for continual improvement.

Jointly, FHWA and ITD will annually perform risk assessments of various program areas for the purpose of prioritizing its program level oversight activities for the coming year. FHWA will schedule formal meetings with the ITD to conduct the risk assessment in March/April, complete the analysis in June, and assess the results and proposed actions in July/August. The final action plan will be completed in September. Coordination will also occur between these dates. The final plan will include a list of action items, responsible parties and due dates. If process reviews are identified as part of the risk assessment, the final action plan will identify the reviews, team members and leaders to conduct the review, and a team sponsor from each agency. The final plan will be drafted by July 30, and finalized by August 30. The plan and schedule can be adjusted to accommodate changing conditions.

c. Process Reviews

In general, FHWA will use Process Reviews to assess the capability and capacity of ITD in those areas where ITD has assumed FHWA's responsibilities.

Reviews can be conducted by individuals or teams from FHWA and/or ITD (including Internal Review) and/or other stakeholder groups or organizations. The reviews will:

• Ensure compliance with Federal requirements.
• Identify opportunities for greater efficiencies and improvements to the program.
• Identify exemplary practices.
• Identify areas that need attention and make recommendations for improvement.

These reviews may be referred to as program improvement reviews, process reviews, program/product evaluations, or continuous process improvement initiatives. Program reviews are often triggered by risk assessments or performance indicators/measures that suggest a need for improvement. Immediate-need reviews may be initiated at any time during the year.

The process for conducting joint reviews is outlined in the following:

• A review plan will be developed by the team identified in the risk assessment final plan (see Section IV.b).
• A joint letterhead letter, signed by the team sponsors, will be sent to ITD's Chief Engineer and FHWA's Division Administrator with the review plan and guidelines attached.
• The team will conduct an entrance conference in each Districts/Program Office to introduce review team members and activities to take place at the respective office/location.
• A local closeout to present findings and initial recommendations will be held in each district/Program Office.
• After completion of the review, a draft report will be issued and circulated to the appropriate offices for review.
• A joint final review closeout presentation will be made to ITD/FHWA management.

For non-joint reviews conducted by FHWA, the process will be:

• A letter will be sent to ITD's Chief Engineer with a review plan and guidelines.
• The FHWA personnel will conduct an entrance conference in each District/Program Office.
• A local closeout to present findings and initial recommendations will be held in each District/Program Office.
• After completion of the review, a draft report will be issued and sent to the Chief Engineer for review and concurrence with the recommendations.

FHWA will appoint a process review coordinator. This person will serve as the Division's focal point for initiating joint review milestones, arranging meetings and follow-up on recommendations and actions. FHWA will also develop a program to track each year's reviews with accompanying recommendations. Every quarter, a summary of the incomplete actions will be sent to ITD's Chief Engineer. Every six months a meeting with ITD will be arranged to review the status of incomplete reviews, recommendations and actions.

d. Performance Indicators/Measures

Performance indicators/measures are incorporated and used in this agreement to help assess performance in administering FAHP requirements and to help determine whether funds are being effectively utilized to improve the transportation system. The indicators/measures will also serve as a tool in conducting annual risk assessments.

FHWA will schedule a formal meeting with ITD to annually review, and revise as appropriate, performance measures for the following fiscal year in June/July. The final performance measures will be concurred in by August 30. Coordination will also occur between these dates. Maintaining, updating, and improving the performance indicators/measures are the continuous responsibility of the FHWA and the ITD. Responsibility for tracking each individual measures will be identified at the annual meeting and is subject to modification or change. Measures can be evaluated at any time by FHWA and ITD. Indicators/measures will be updated monthly, quarterly, or annually depending on the indicator/measure.

V. Delegated Responsibilities

FHWA and ITD will review, monitor, and approve activities as necessary in the designated areas of responsibility to comply with applicable laws, regulations, directives, and standards as defined in detail in Appendix A – ITD-FHWA Delegation Matrix.

FHWA maintains authority for the actions and approvals in, but not limited to, the following categories:

• Planning and programming oversight specified in Title 23, USC.
• Federal air quality conformity determinations required by the Clean Air Act.
• Obligation of funds.
• Waivers to Buy America requirements (FHWA approval required as noted in Mr. Horne's July 3, 2003 memorandum).
• SEP-14/SEP-15 methods (FHWA approval required for experimental contracting/project delivery methods).
• Civil Rights program approvals.
• Environmental approvals except for those authorities specifically delegated under provisions set forth in statute or regulation.
• Addition of access points on the Interstate System.
• Use of Interstate airspace for non-highway-related purposes.
• Hardship acquisition and protective buying.
• Modifications to project agreements.
• Final vouchers.
• Government-to-Government consultation with Indian Tribes.

The table in Appendix A defines the activities, roles, responsibilities, and the approval authorities where applicable. The table is broken down by program area and identifies the responsible agency for project level actions. Full oversight projects will be identified and agreed to by the FHWA as discussed in Section IV.a. The FHWA will have increased oversight and approval authority on these projects. All other Federal-aid projects including Interstate, NHS (non-Interstate), and non-NHS categories will be delegated, as outlined in the matrix, to the ITD and monitored via Performance Measures, Risk/Program Assessments, Program Oversight and Process Reviews. The delegation of projects to the ITD does not preclude the FHWA from conducting project level activities as warranted. These activities include project inspections, document reviews, and other day-to-day program management activities.

Projects identified as major projects greater than $500 million will be administered in accordance with SAFETEA-LU requirements including an approved Project Management Plan. The Project Management Plan will be project specific and document the roles and responsibilities of both agencies. This includes procedures and processes to effectively manage the scope, costs, schedule, quality, and other stewardship and oversight activities necessary to meet Federal requirements.

SAFETEA-LU requires that projects in the $100 million to $500 million range have Financial Plans and Annual Updates prepared by the project owner. The estimated total cost will be based on the full scope of the project for the limits defined by the environmental process or for the limits that are considered operationally independent.

All work under the Grant Anticipation Revenue Vehicle (GARVEE) Program shall be in accordance with this Oversight Agreement except as modified by GARVEE Experimental Projects (GEPs) and SEP-15 approvals (See Appendix B). The ITD GARVEE Execution Plan (GXP) will contain approved procedures for administration of the GARVEE program by ITD, as well as a copy of the approved GARVEE matrix. The ITD GARVEE Office will serve as the primary point of contact between the Program Manager and FHWA. Routine project-level submittals and inquires by ITD personnel will be in accordance with current practices outlined in this Oversight Agreement.

VI. Control Documents

Control documents include manuals, standards, policies, and specifications that are acceptable to FHWA and ITD for application in Federal-aid projects. The control documents explain the FHWA and ITD agreements that comply with specific control standards. FHWA and ITD agree on the responsibilities and delegated authority of the control documents. Changes will require the agreement of both parties including those amended by addendum.

The following is a listing of FHWA approved documents for ITD use:

Manuals (subject to approval by FHWA for use on Federal aid projects)

• ITD Design Manual
• Right of Way Manual
• Materials Manual
• Guidelines for LPA projects
• Contract Administration Manual
• Traffic Manual
• Standard and Supplemental Specifications
• Standard Drawings
• Bridge Design (LRFD) Manual
• Environmental Process Manual
• Contract Compliance Plan
• DBE Plan
• Title VI Plan
• Affirmative Action Plan
• Utility Accommodation Policy
• Quality Assurance Manual

ITD Manuals (subject to review and comment by FHWA)

• Maintenance Manual
• Financial Services Manual

VII. Delegation of Activities to Local Public Agencies

By written agreement with the local agency, ITD may delegate all or some project activities to local agencies. ITD is responsible under Federal law and regulations for all delegated activities. In general they include, but are not limited to:

• Environmental studies
• Procurement of consultant services
• Preliminary design
• Surveying
• Right of Way acquisition
• Work by local forces or utility companies
• Preparation of plans, specifications and estimates
• Preparation of bid proposal package
• Advertisement for letting
• Contract administration
• Construction inspection

The following activities will not be delegated to local agencies:

• NEPA review and approval
• Design exception approval
• Sole source justification approval
• Right of way certification
• Plan, specification, and estimate approval
• DBE Goals
• Labor compliance enforcement
• Final inspection and acceptance
• Project audit

Idaho has two entities responsible for the majority of the Federal-aid local programs in Idaho: The Ada County Highway District (ACHD) which administers the program for northern Ada County, Idaho including the Boise metropolitan area and the Local Highway Technical Assistance Council (LHTAC) with Statewide Local Program Administration Responsibility. ITD will review and update, if necessary, their individual Stewardship and Oversight Agreements with these agencies to be in accordance with this agreement within six months of the effective date of this agreement.

For all other local projects, ITD will develop State/ Local Agreements for each individual project in accordance with Section 795 of the ITD Design Manual and with this FHWA/ ITD Stewardship Agreement. Although the ITD cannot delegate responsibility, activities can be delegated and the Local Public Agencies held accountable to the ITD.

• Local Public Agencies will be accountable to ITD for all activities delegated to them.
• Local Public Agencies will be responsible for Federal-aid project development on the local system and will adhere to ITD policies and procedures as contained in ITD's manuals that have been approved by FHWA.
• Local Public Agencies will provide project management oversight on the local system and will be responsible for adherence to applicable Federal and State regulations.
• Local Public Agencies will ensure that processes and controls are in place to implement their responsibilities.

FHWA has the authority to review any federal aid project or program at any time, and any agreement that ITD enters into with local agencies shall contain a provision that clearly indicates this to the local agency.

The Safe Routes to Schools (SR2S) program which is defined in SAFETEA-LU Section 1101(a)(17) states, "(j) Treatment of Projects-Notwithstanding any other provision of law, projects assisted under this subsection shall be treated as projects on a Federal-aid system under Chapter 1 of Title 23, United States Code." In recognition of the local participation in Idaho's SR2S projects local sponsors may participate in the administration of these projects with approval of ITD. ITD will have the option of delegating to the project sponsor those "prepare" items listed Appendix A of this Agreement but must retain approval responsibilities as described. The local procedures for the delegated responsibilities must be approved by ITD prior to approval of the State/local agreement (SLA). All delegated responsibilities must be documented in the SLA. For those activities or items that require FHWA action, ITD will continue to be responsible to review and recommend the item for FHWA approval.

VIII. Method of Oversight for Local Public Agencies

ITD will provide the necessary processes, approvals, oversight, and review to ensure that delegated projects are completed in conformance with approved plans and specifications and applicable federal requirements. The following is a detailed description of actions that ITD will use in providing stewardship and oversight of the Local Public Agencies program:

a. Project Oversight

As stated in Section IV, FHWA and ITD have agreed upon a project oversight philosophy based on a risk based approach. Annually, FHWA and ITD will review the program of scheduled projects to determine which projects will be administered as FHWA full oversight projects and which will be carried out as described in Section V. The criteria for selecting full oversight activities will include Local Public Agencies administered projects.

On non full oversight projects, ITD assumes the responsibility and will represent the FHWA in administering the federal-aid highway program to Local Public Agencies. The following is a list of some specific project related actions that shall be performed on projects that use federal-aid; however, this list is not a comprehensive list and is subject to change due to federal law, regulation, and policy modification.

• Environmental clearance must be obtained from FHWA or acquired through ITD as has been delegated prior to final design or right-of-way action.
• ITD shall review and approve plans, specifications, and estimates of projects prior to construction authorization for compliance with applicable state and federal laws, regulations, and policies.
• ITD shall concur on award of projects let and awarded by local agencies.
• ITD shall review and approve design exceptions and sole sourcing requests by local agencies.
• ITD shall review and approve conflict of interest disclosures for consultant selections.
• ITD shall oversee the construction of projects administered by the local agency or their representative. This includes but is not limited to the following actions:
  • Review and approval of billings.
  • Review and approval of Change Orders.
  • Construction inspection.

Local Public Agencies will follow all ITD procedural manuals and specifications that guide the implementation of the highway program. See Section VI for the list of FHWA approved documents. ITD and FHWA shall review and concur with any procedures manuals owned and maintained by Local Public Agencies for administration of the federal-aid program.

b. Program Oversight

As per Section IV.B., FHWA and ITD will jointly perform risk assessments of various program areas for the purpose of prioritizing program level oversight activities for the coming year. The administration of the Federal-aid Highway Program on the local system by Local Public Agencies will be included in this annual risk assessment. The jointly developed action plan will identify the actions that ITD will take in response to the risk assessment as well as those actions that ITD and FHWA will jointly take to address the high risk areas.

c. Process Reviews

ITD will use process reviews to assess the capability and capacity of Local Public Agencies in those areas where Local Public Agencies have assumed responsibility on FAHP projects. Reviews can be conducted by individuals or teams from the FHWA and/or the ITD and/or Local Public Agencies and/or other stakeholder groups or organizations. The results of all reviews conducted independently by ITD and Local Public Agencies will be shared with FHWA.

At a minimum, it is expected that ITD will annually conduct a Financial Management Review (Grant review) and review annual audits by the Local Public Agencies.

d. Performance Indicators/Measures

Performance indicators/measures are incorporated and used in this agreement to help assess performance in administering FAHP requirements. ITD and FHWA will jointly develop and implement performance indicators/measures as discussed in Section IV.d. The performance measures may cover the administration of the federal-aid program by Local Public Agencies. FHWA may request data at any time to support the administration of the federal-aid program.

IX. Review of the Agreement

This agreement will be revised to conform to laws and regulations as necessary or at the request of ITD or FHWA.

X. Signatories

This Agreement becomes effective upon signing by both parties. The Agreement will remain in effect unless terminated by written mutual agreement of the parties or by either party providing 30 days prior written notice.

APPENDIX A

(a) Joint responsibility Design/Construction
(b) See FS responsibility for Prepare/Submit & Approval
(c) FHWA Action for Full Oversight is approve QVR's above $100,000 and determine participation for others
B- . . .= Board Policies
A-. . . = Administrative Policies
CM = Contract Administration Manual
DM = Design Manual
MM = Materials Manual
RM = Right-Of-Way Manual
TM = Traffic Manual
--------- = N/A

APPENDIX B

(a) Joint responsibility Design/Construction
(b) See FS responsibility for Prepare/Submit & Approval
(c) FHWA Action for Full Oversight is approve QVR's above $100,000 and determine participation for others
B- . . .= Board Policies
A-. . . = Administrative Policies
CM = Contract Administration Manual
DM = Design Manual
MM = Materials Manual
RM = Right-Of-Way Manual
TM = Traffic Manual
--------- = N/A