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Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU)

Fact Sheets on Highway Provisions


Program Purpose

The Stewardship and Oversight Program monitors the effective and efficient use of resources to best meet the transportation needs of the nation with a specific focus on financial integrity and project delivery.

Statutory References

SAFETEA-LU Section: 1904
Other: 23 USC 106

Program Elements

Value Engineering Analysis - States are required to provide a value engineering analysis or other cost-reduction analysis for:

  • each project on the Federal-aid system with an estimated total cost of $25 million or more
  • a bridge project with an estimated total cost of $20 million or more
  • any other project designated by the Secretary

The Secretary may require 1 or more analysis for a major project

Value engineering is a systematic process of project review and analysis conducted during the concept and design phases by a multi-disciplined team not involved in the project. The process is to provide recommendations for:

  • providing the needed functions safely, reliably, and at the lowest overall cost
  • improving the value and quality of the project
  • reducing the time to complete the project

Oversight Program - is established to monitor the effective and efficient use of funds and be responsive all areas relating to financial integrity and project delivery.

  • Financial integrity – requires an annual review of elements of the State transportation departments' financial management systems that affect projects, and development of minimum standards for estimating project costs and periodic evaluation of the States' practices for estimating project costs, awarding contracts, and reducing project costs.
  • Project delivery – requires annual reviews of a State's project delivery system.
  • Responsibility of the States – the States will be responsible for determining that sub-recipients of Federal funds have adequate project delivery systems, and sufficient accounting controls. The Secretary will periodically review the monitoring of sub-recipients by the State.
  • Specific oversight responsibilities – the Secretary retains full oversight responsibilities for the design and construction of all Appalachian development highways.

Major Projects – recipients of funds for a project with an estimated total cost of $500 million or more, and recipients of funds for other projects as identified by the Secretary, must submit a project management plan and an annual financial plan for each project.

  • Project management plan – plan will document the procedures and processes that are in effect to allow the project management to effectively manage the scope, costs, schedules, quality, and Federal requirements applicable to the project. The role of the agency leadership and management team in the delivery of the project will also be documented.
  • Financial plan – will be based on detailed estimates of the cost to complete the project. The plan will also provide for the annual submission of updates that are based on reasonable assumptions of future increases in project costs.

Other Projects – recipients of funds for a project with an estimated total cost of $100 million must prepare an annual financial plan that will be available for review upon request.

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