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Virginia American Recovery and Reinvestment Act (ARRA)

Supplement to the Efficiencies Agreement

FHWA - Department of Transportation Interstate Emblem vdot - Viriginia Department of Transportation emblem

March 2010

I. Introduction
II. Purpose of Project Oversight Plan
III. Delegation of ARRA Funded Projects
IV. SUPPLEMENTAL OVERSIGHT FOR ARRA Program and Project Activities
Virginia Efficiencies Agreement ARRA Supplement
APPENDIX A.  Division ARRA Review teams (DART)
APPENDIX B.  checklists
APPENDIX C.  bridge oversight plan

I. Introduction

The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law on February 17th, 2009.  This law provides significant funding for, among other programs, transportation infrastructure.  VDOT's allocation for highway improvements totaled $694,460,823.

The ARRA legislation has mandated strict timeframes for funding obligations.  All of the funds must be obligated within one year of the apportionment to the Virginia Department of Transportation (VDOT); however, 50% of the non-suballocated funds must be obligated within 120 days of the apportionment.  Failure to meet these timeframes will result in VDOT losing its unobligated balance.  In addition, the legislation has set forth specific project eligibility and selection criteria as well as requiring monthly reporting of project data.

It is possible for VDOT to obligate additional ARRA projects.  This may occur due to funds being released on previously authorized projects where bids are coming in below estimated costs.

II. Purpose of Project Oversight Plan

The purpose of this plan is to (1) ensure the FHWA Virginia Division provides the necessary stewardship of those funds made available to Virginia through the ARRA, (2) to establish additional project oversight measures to ensure compliance with project eligibility, and reporting requirements, and (3) to support the Division's risk management plan.

The primary roles and responsibilities outlined in our May 2007 Agreement will remain intact in carrying out ARRA funded projects.  It is important to note that this plan will supplement, not replace, our existing Efficiencies Agreement with VDOT.  This supplement outlines additional actions that the FHWA VA Division will undertake to ensure ARRA funds are obligated and expended in accordance with both Title 23 United States Code and the specific requirements stipulated in the ARRA.  These additional actions include but are not limited to review of Non-Federal Oversight (NFO) State Administered and Locally Administered Projects (LPA) and the use of checklists for such reviews.

VDOT recognizes the additional risks that exist with the delivery of the ARRA program and understands FHWA's obligation to enhance their oversight; particularly with LPA projects. VDOT agrees to fully cooperate with FHWA in carrying out the activities set forth in this document.

III. Delegation of ARRA Funded Projects

The following table (Table 1) defines oversight responsibilities for Federal-Aid projects funded fully or partially with ARRA funds in Virginia.

Table 1.  Oversight Responsibilities

Type of Projects Oversight Responsibility
Interstate projects with an estimated construction cost of more than $1 million >FHWA
Interstate projects with an estimated construction cost of $1 million or less >VDOT
NHS (non-Interstate) projects with an estimated construction cost >$25 million >FHWA
NHS (non-Interstate) projects with an estimated construction cost of $25 million or less >VDOT
Non-NHS projects (State Administered) >VDOT
Preventative Maintenance projects on the Interstate with an estimated cost >$5 million >FHWA
Preventative Maintenance projects on the Interstate with an estimated cost $5 million or less >VDOT
Selected Locally Administered Projects (LPA)  with an estimated cost of over $2 million >FHWA
Remaining Locally Administered Projects (LPA) >VDOT

Note: Thresholds above are subject to change.


  1. There may be a limited number of projects, in which FHWA Oversight may deviate from the criteria listed above. Reasons for the deviation may include but are not limited to project complexity or lack of complexity, need to maintain a federal presence in a specific VDOT District, or unique/innovative design and/or construction. Examples of projects which may be selected: Major or complex bridge structure projects, or projects which involve a high degree of public controversy or environmental impacts.
  2. LPA Federal Oversight (FO) projects as listed in this agreement will have all of the same requirements as regular Federal-Aid FO projects.

IV. SUPPLEMENTAL OVERSIGHT FOR ARRA Program and Project Activities

As stated previously, it is intended for all ARRA projects to be administered in accordance with our existing Efficiencies Agreement.  It is recognized that the spending of ARRA funds will be under high visibility from both the public and political officials, as well as government oversight agencies.  Therefore, both VDOT and FHWA recognize that special attention and transparency is needed during the delivery of the entire ARRA program.

1. Program Activities

Planning activities for ARRA funded projects will continue as they do for all other federally assisted projects.  Amendments incorporating ARRA projects into VDOT's STIP will be reviewed by the appropriate individual within the VA Division for eligibility, fiscal capacity and constraint, transportation conformity, coordination with MPO TIPS, and public involvement. 

Environmental activities for ARRA funded projects will continue as they do for all other federally assisted projects.  All NEPA reviews and approvals will follow existing procedures including our Programmatic CE Agreement with VDOT. 

Right of Way acquisition for ARRA projects must comply with 49 CFR 24 (the Uniform Act).  Furthermore, the requirements set forth in 23 CFR 710 must be followed if ARRA funding is used for property acquisition.  The Division ROW Team understands the significance of the ARRA legislation and the importance to successfully deliver the program.  Therefore, our ROW Team will initiate additional oversight activities to include (1) incorporating ARRA projects as part of scheduled ROW compliance reviews and (2) participating in VDOT/FHWA joint compliance ROW reviews on selected ARRA projects.

Financial activities for ARRA funded projects will be similar to the processes for all other federally assisted projects.  The Finance Team provides the initial review of all projects to be sure that the authorization is complete, accurate and that all ARRA requirements are present in the authorization.  The Finance Team will monitor all ARRA authorizations and expenditures and help ensure that all ARRA financial deadlines are met to avoid the loss of any ARRA funding.  The Division recognizes the heightened financial accountability that ARRA projects will receive.  An ARRA billing review will be performed regularly during each year of ARRA funding as more projects incur expenditures.  In addition, ARRA projects will be incorporated as a part of regular financial compliance reviews and as a part of the FIRE program.

2. Project Activities

Due to the significance of ARRA funded projects, the FHWA VA Division created the Division ARRA Review Team (DART) to implement further measures to increase FHWA stewardship and project oversight activities on ARRA projects. 

The DART is a multidisciplinary team that will conduct “visible monitoring” sampling and checking of processes and documentation focusing on the national risks areas.  The risk areas include Disadvantage Business Enterprise (DBE), Plan, Specifications & Estimate (PS&E), Contract Administration, Construction Quality, and State Oversight of Local Public Agencies. Emphasis is being placed on activities associated with the obligation of ARRA funding as well as enhanced oversight initiatives on “NFO (State Administered and LPA)” projects (see Section V of this Supplement).  This document provides general information to assist the DART in conducting the reviews.  See Appendix A for DART members.

DART Review Areas

  1. Locally Administered Projects (LPA)
  2. Finance
  3. Bridge
  4. DBE
  5. Quality Assurance and Quality Control (QA/QC)

DART Review Expectations

Project Reviews – The DART will conduct reviews of all ARRA FO projects as established in this agreement (see Table 1) and a sample of NFO (State Administered and LPA) projects (see Section V of this Supplement).  FHWA understands the need for these reviews and we look forward to a partnership with VDOT as the reviews are carried out.

The number and frequency of project reviews will depend on the size of the project and the identified National risks.  All projects shall be reviewed at least once.  On all FO Non-LPA projects the DART Team must accompany the Division Area Engineer at least once.

Review Reports – The DART will have two weeks to complete individual reports for each project review, which must be submitted to the designated Division ARRA Filing Officer for appropriate filing at the Division Office.  A copy must be provided to VDOT and/or locality (in the case of LPA projects). 

The Filing Officer will track the progress and completion of the reviews and reports for the Division Office. In addition, the officer will ensure the applicable risk areas are being addressed as part of the reviews and document the findings and actions of each review.  The risk areas addressed on each project will be determined depending on the project's current status.  The Filing Officer will notify the Inspector General at VDOT of all upcoming project reviews.


The FHWA Engineer will have full involvement on all ARRA FO Projects and the selected LPA projects including project scoping, preliminary engineering, design, plans, specifications, and estimates (PS&E) approval, concurrence in award, project inspections, work order approval, approval of design exceptions, approval of claim settlement, project acceptance, etc.

The National goal is that project reviews will be conducted on at least 30% of ARRA projects.  The following projects have been selected by the Division Leadership based on location (to ensure statewide oversight), project size and complexity.  The tables below show the selected projects to be reviewed.

There are 4 design build contracts that consist of a total of culverts and bridge structures in four regions of the State.  A sample of these structures will be selected by the FHWA VA Division Bridge Team.  Appendix C contains their selection process as to the quantity of structures that are to be reviewed.

ARRA FO Projects: As of April 7, 2010

District Oversight Project Number Project Description Improvement Type Total Cost ARRA Obligations
SALEM FO FS09001 This project includes a slab removal on the right travel lane on both the NBL and SBL of I-81.  On the SBL it will begin at the South end of Rte 640 overpass (exit 156) moving South for 4.3 miles.  On NBL it will begin at the North end of Route 779 overpass moving North for 4.6 miles. Pavement Improvement $19,457,862 $19,457,862
RICHMOND FO FS09002 Conversion of CRCP pavement to composite; extensive pavement rehab.  Project underway.  Completion date June 2010. Pavement Improvement $6,465,729 $6,465,729
HAMPTON ROADS FO FS09003 This project will repair the existing deteriorated concrete pavement and then place 3.5"" inches of asphalt over the existing concrete pavement on I-64 in the City of Chesapeake. Pavement Improvement $15,627,101 $15,627,101
FREDERICKSBURG FO FS09009 I-95, basic bituminous overlay.  Work in Spotsylvania County is complete and work in Stafford to be done next year. Pavement Improvement $10,221,032 $10,221,032
HAMPTON ROADS FO FS09030 This project will widen a 3.15 mile section of Route 105 in the City of Newport News and York County from 2 existing lanes to a 4 lane divided principle arterial. Pavement Widening $19,795,937 $19,795,937
RICHMOND FO FS09047 Relocation of an existing left turn at the Route 36 (Oaklawn Boulevard)/Route 144 (Temple Avenue) intersection and construction of a new ramp. The new ramp will allow drivers to make a double left turn from Temple Ave. onto EB Oaklawn Boulevard. Pavement Widening $11,379,950 $11,379,950
CULPEPER FO FS09057 ARRA  I-64 Shadwell EBL Exit Install Dual LTL to WB Rte 250. Pavement Improvement $1,550,000 $1,550,000
NOVA FO FS09060 ARRA Rte.28/Wellington Road Grade Crossing Pavement Widening $27,747,809 $26,027,880
NOVA FO FS09062 ARRA Fairfax County Pkwy Fair Lakes Interchange Pavement Widening $92,252,918 $48,932,492
LYNCHBURG FO FS09065 This work is for improving the Grade, Drainage, Asphalt Pavement and the Robertson Bridge from the Intersection of Memorial Drive to 0.322 mi N. of the Intersection with Memorial Drive in the City of Danville. New Bridge Construction $28,557,855 $21,321,605
STAUNTON FO FS09066 Reconstruction of inside shoulders and installation of high tension cable guardrail in the median of I-64 from MP 18.8 to 24.0 in Alleghany County.  Project also includes improvement of drainage system, resurfacing and guardrail upgrade. Safety/Traffic Management $14,382,506 $14,382,506
HAMPTON ROADS FO FS09080 ARRA Chesapeake/Suffolk I664 Paving/Drains/Guardrail Pavement Improvement $20,105,736 $20,105,736
HAMPTON ROADS FO FS09108 ARRA VA Beach 264 Lynnhaven Interchange Improvements/Ramps New Construction $16,845,787 $2,030,895
RICHMOND FO FS09135 ARRA – RT 95 – Interchange Modification Pavement Improvement $4,793,200 $4,793,200

ARRA NFO Projects: As of April 7, 2010

District Oversight Project Number Project Description Improvement Type Total Cost ARRA Obligations
LYNCHBURG NFO FS09006 This project includes milling the existing 24 foot wide pavement and existing paved shoulder (approx. 2 inches on each side) of Rte. 460 EBL from 1.35 miles East of Rte. 735 to the Nottoway County Line. The project covers a total of 2.88 miles. Pavement Improvement $3,166,600 $3,166,600
CULPEPER NFO FS09011 This resurfacing project includes mill and overlay of 17.21 miles in length on various routes in Warrenton Residency. Pavement Improvement $3,823,687 $3,823,687
NOVA NFO FS09016 Milling existing asphalt 2 inches and overlay with 2 inches of asphalt. Pavement Improvement $4,442,320 $4,442,320
STAUNTON NFO FS09067 Widening of Port Republic Road (Route 253) to 4 lanes from about a quarter mile (1150 feet) south of Route 704 (Boyers Road) to approximately 100 feet north of Harrisonburg East City Limits in Rockingham County. Pavement Widening $13,142,797 $13,142,797
NOVA NFO FS09154 Project to improve traffic flow and safety at this heavily traveled intersection - Waxpool Road and Loudoun Co Parkway. This includes turn lane improvements and signal modifications on all approaches. Safety/Traffic Management $2,200,000 $2,200,000
BRISTOL NFO FS09177 The county of Washington will resurface route 58 from the town of Abingdon to Damascus from the intersection of route 677 to the intersection of 638 for increased capacity and improved safety. Pavement Widening $28,230,478 $27,942,202
SALEM NFO FS09179 The city of Roanoke will reconstruct 4 lanes on a portion of route 221.  This will make the road smoother, improve driving quality for area residents, and extend the life of that section of the roadway. New Construction $28,175,888 $28,175,888

ARRA LPA Oversight Projects: As of April 7, 2010

District Oversight Project Number Project Description Improvement Type Total Cost ARRA Obligations
FREDERICKSBURG FO/LPA FS09029 Design Build project to widen Route 3.  Project recently awarded and design is proceeding; construction to begin in Spring.   Pavement Widening $25,214,915 $25,214,915
HAMPTON ROADS FO/LPA FS09055 This project consists of widening Witchduct Road in Virginia Beach from 4 lanes to 6 lanes from Bonney Road to Grayson Road. Pavement Widening $9,947,717 $9,640,484
HAMPTON ROADS FO/LPA FS09092 The city of Newport News will complete resurfacing and milling on routes 143 and 60 at Jefferson Avenue and Warwick Boulevard. This will make the road smoother and improve the driving quality for the area. Pavement Improvement $3,090,760 $3,077,820
HAMPTON ROADS FO/LPA FS09107 ARRA - Suffolk Citywide Repaving Project Pavement Improvement $2,544,792 $1,994,235
RICHMOND FO/LPA FS09136 ARRA - RT 10 Widen to six lanes Pavement Widening $20,823,031 $10,055,062
NOVA FO/LPA FS09148 Project to upgrade the communication plant's existing twisted-pair (copper) system with the fiber-optic cables; expanding the County ITS technologies and enhance the traffic signal system - Phase 1. Safety/Traffic Management $3,580,000 $3,580,000
NOVA FO/LPA FS09160 Project in Manassas to widen existing Wellington Rd to 4 lanes, from Godwin Drive to Nokesville Rd. Pavement Improvement $7,370,000 $900,000
HAMPTON ROADS FO/LPA FS09172 As part of downtown revitalization, the city of Smithfield will complete Streetscaping Phase V from Jericho road to Luter Dr. including paving, curb & gutter, sidewalk, storm drainage, private entrances. Transportation Enhancement $4,006,573 $165,329

ARRA NFO LPAs: As of April 7, 2010

District Oversight Project Number Project Description Improvement Type Total Cost ARRA Obligations
HAMPTON ROADS NFO/LPA FS09070 The city of Hampton will complete resurfacing of Mercury Boulevard   From:  West City Limits to Big Bethel Road To: Coliseum Drive to King Street. Pavement Improvement $3,652,480 $3,632,486
HAMPTON ROADS NFO/LPA FS09073 Purchasing right of way and moving utilities in preparation of widening of Commander Shepard Boulevard from the intersection of Saunders and Big Bethel Roads to approximately 100 feet (0.019miles) west of the intersection of North Campus Parkway in the City of Hampton. Other $3,587,296 $3,587,296
HAMPTON ROADS NFO/LPA FS09087 The city of Chesapeake will complete citywide pavement resurfacing at various locations.  This will make the roads smoother and improve the driving quality for area residents. Pavement Improvement $3,293,637 $3,293,637
HAMPTON ROADS NFO/LPA FS09099 The city of Norfolk will complete a Repaving Project at various locations citywide.  This includes repaving sections of primary and urban collectors identified for resurfacing. Pavement Improvement $4,148,808 $4,148,808
HAMPTON ROADS NFO/LPA FS09101 The city of Poquoson will complete Milling and Resurfacing on Hunts Neck, Yorktown and Wythe Creek Roads for routes 171/172.  This will make the roadways smoother and improve the driving quality for the area. Pavement Improvement $320,057 $283,846
HAMPTON ROADS NFO/LPA FS09105 The city of Portsmouth will complete Traffic Signal System Improvements at various locations citywide.  This will include  Signal System Design and Implementation as well as Central System Deployment. Safety/Traffic Management $2,417,973 $2,023,543
NOVA NFO/LPA FS09113 Project involving Prince William Parkway to update corridor to a six lane divided facility from Hoadly Road to Old Bridge Road. Pavement Widening $9,160,000 $9,160,000
NOVA NFO/LPA FS09114 ARRA – ROW phase for the Route 15 widening. Other $2,200,000 $1,025,000
HAMPTON ROADS NFO/LPA FS09130 CN Phase for ARRA - York 646/630/622/782 Pavement Rehab/Overlay. Pavement Improvement $1,115,233 $778,388
NOVA NFO/LPA FS09144 This project will fund the purchase of environmentally friendly trolley buses to be used for the Alexandria's King Street Trolley. Other $2,400,000 $2,400,000
NOVA NFO/LPA FS09149 Project to rehabilitate and repaving an aging portion of Route 29/50 through the City of Fairfax. Pavement Improvement $600,000 $600,000
HAMPTON ROADS NFO/LPA FS09166 ARRA County wide - Pavement Overlay Various Roads. Pavement Improvement $711,137 $492,475
HAMPTON ROADS NFO/LPA FS09169 ARRA - Route 17 Turn Lane Improvement Safety/Traffic Management $205,000 $205,000

Virginia Efficiencies Agreement ARRA Supplement

FHWA and VDOT mutually agree to the delegations defined in this section of the Efficiencies Agreement as allowed by Title 23 Section 106 and further agree to abide by the procedures, practices, and business standards outlined throughout this Efficiencies Agreement.

It is agreed that incremental changes may be made to this agreement with the concurrent approval of the Chief Engineer of the VDOT and the Assistant Division Administrator of FHWA for Virginia, while retaining the integrity of the overall Efficiencies Agreement.

This agreement supplements the existing Efficiencies Agreement dated May 2007 between the FHWA and the VDOT.

_____Signed Copy on File_____
Irene Rico
Division Administrator
Federal Highway Administration
Virginia Division
_____Signed Copy on File_____
Gregory A. Whirley
Acting Commissioner
Virginia Department of

Effective Date: __April 1, 2010__
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