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Appendix C. Glossary

Acquisition
Refers to the purchasing of private property rights for public uses, such as transportation project construction on the State highway system, according to State and Federal guidelines.
Alliance Contracting
The hallmarks of the alliance method include: hand selection of team members, inclusion of the contractor as an early member of the team, integration of a business focus to clearly identify all team members' roles and responsibilities, effective engagement of ROW and utility stakeholders, an emphasis on accountability, and documentation of lessons learned and outcomes. It is an example of an innovative contracting mechanism that aims to lower project costs and increase quality while streamlining project delivery.
Appraisal
A written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.
Best and Final Offer (BAFO)
Indicates that no further negotiation of term amounts is possible. A BAFO can be requested by procuring official if bidders have submitted proposals within close competitive range.
Comprehensive development agreement (CDA)
Agreements with one contractor to design, acquire ROW, adjust utilities, and construct, finance, and operate or maintain certain transportation facilities, including highways, turnpikes, freight or passenger rail, and public utilities. There are several types of CDAs, including a design-build CDA, a pre-development CDA, and a concession CDA. Each type involves different patterns of risk allocation. CDAs are essentially public-private partnerships.
Condemnation
Refers to the act of a public authority exercising the power of eminent domain according to State and Federal guidelines.
Construction manager general contractor (CMGC)
In this process, the contractor is hired during the design process and assists the project owner with construction management. In CMGC, risks are shared between the agency and the contractor and the final project cost is unknown until after execution of the contract. This process is suitable for complex projects. CMGC is an example of an innovative contracting mechanism that aims to lower project costs and increase quality while streamlining project delivery.
Design-bid-build contracting
Design-bid-build contracting involves use of two different contracts that procure design and construction services. Design-bid-build is a traditional approach to project delivery.
Design-build contracting
Design-build combines a project's design and construction phases into one contract to expedite the project delivery process. Design-build is an example of an innovative contracting mechanism that aims to lower project costs and increase quality while streamlining project delivery.
Easement
An interest in real property that conveys use, but not ownership, of a portion of an owner's property.
Eminent domain
Refers to the power of a public authority to purchase private property rights for public use according to State and Federal guidelines.
Federal Highway Administration (FHWA)
A branch of USDOT that administers the Federal-aid highway program and the Federal Lands Highway Program.
Federal HighwayAdministration Office of Real Estate Services (FHWA HEPR)
An office within FHWA that supports the acquisition and management of real estate as required for the development of transportation services and facilities, and provides resources on corridor management, property valuation, relocation assistance, utility management, and Right of Way management.
Letter of Consent
Document that formalizes agreement or gives access by one entity to land owned by another entity.
Memorandum of Understanding (MOU)
Document describing and formalizing an agreement between multiple entities.
National Environmental Policy Act (NEPA)
The Act requires Federal agencies to consider the environmental impacts of proposed actions and reasonable alternatives to these actions. The Act also requires Federal agencies to include environmental considerations in decision-making processes.
Notice to Proceed
A document from a project owner to a contractor stating the date when contractor activities, as subject to the contract terms and conditions, can commence.
Ombudsman
Entity or individual that liaises between an organization and other constituencies for the purpose of resolving differences and facilitating fair mediation.
Quality control/quality assessment (QA/QC) process
A system of checks and measures to assure product quality; the QA/QC process can be performed by the project owner, contractor, or by a neutral, third-party reviewer.
Request for Proposal
Document submitted by a project owner to potential bidders describing project scope and requirements for the purpose of acquiring proposals for vendor services.
Request for Quotation
Document submitted by a project owner to potential bidders for the purpose of acquiring price quotations on specific products or services.
Right of Way (ROW)
A term denoting land or property on which infrastructure, such as a highway, is developed. ROW can be granted for infrastructure development through use of various mechanisms, such as easements or full ownership.
Risk
Risks refer to unknowns and, in the context of a transportation project, can include schedule or construction delays, or issues related to environmental approvals, project design, or ROW acquisition
Statement of Qualifications (SOQ)
Document provided by vendor to project owner for the purpose of describing vendor's qualifications to meet project specifications.
Safe, Accountable, Flexible, And Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU)
SAFETEA-LU is the current transportation bill with guaranteed funding for highways, highway safety, and public transportation. It was signed into law in 2005.
Surface Transportation Environment and Planning Cooperative (STEP) research program
STEP was established by the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users. The program is the main source of funding for FHWA research on planning and environmental issues. To conduct a needs-driven research program and involve stakeholders in research prioritization, STEP solicits stakeholder comments via a website during a specified period each year.
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (the Uniform Act)
The Uniform Act established the statutory basis for acquiring real property, or ROW, and the relocation of individuals and businesses affected by federally funded projects. The law was enacted to guarantee that people whose real property is acquired, or who are compelled to move as a result of projects receiving Federal funds, will be treated fairly and equitably and will receive assistance in moving from the property they occupy.
Utilities
Entities that maintain infrastructure to provide a public service, such as electricity or water.
Updated: 04/02/2013
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