Washington Division

711 S. Capitol Way, Suite 501, Olympia, WA 98501
Phone: 360-753-9480, FAX: 360-753-9889
Washington.fhwa@fhwa.dot.gov

Washington State
Department of Transportation
&
Federal Highway Administration
Washington Division

Date: 2-19-08

SS/ Paula J. Hammond

SS/ Daniel M. Mathis

Washington

Federal-Aid Highway Program

Stewardship and Oversight Agreement

Table of Contents

• Background
• Purpose
• State and Division Roles and Responsibilities
  • Project Oversight
    • Major Projects
    • NHS Interstate New/Reconstruction Projects
    • NHS Interstate other than New/Reconstruction
    • NHS Non Interstate
    • Non NHS
  • Standards
    • NHS
    • Non NHS
  • Methods of Oversight
    • Performance Indicators
    • Program Assessments
    • Program Reviews
    • Program Management
    • Risk Assessments
    • Peer Reviews
    • Partnering Activities
    • Task Force Activities

IV. Updates or Changes to the Stewardship Agreement

• Stewardship and Oversight Agreement Program Areas
  • Bridge & Structures
  • Civil Rights
  • Construction and Contract Administration
  • Design and Pre-construction
  • Environment
  • Finance and Accounting
  • Intelligent Transportation Systems/Mobility
  • Planning and Programming
  • Research, Technology Transfer and Local Technical Assistance Program
  • Right-of-Way
  • Safety

VI. Control Documents

VII. Appendices

• Safety Strategies for Program Building
• Construction Monitoring Plan

Washington

Federal-Aid Highway Program

Stewardship and Oversight Agreement

• Background
  
  Congress has charged the Federal Highway Administration (FHWA) with administering the Federal-aid Highway Program (FAHP) under Title 23 United States Code (USC), and other associated laws. In addition FHWA responsibility for administering the FAHP has been clearly outlined in the following legislation: the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991; the Transportation Equity Act for the 21 st Century (TEA-21) of 1998, and the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) of 2005. These laws allow States to assume delegated responsibilities for FHWA in certain National Environmental Policy Act (NEPA) approvals and in the design, construction, award and inspection of delegated Federal-aid projects. While States may assume certain project approval authorities (in accordance with 23 USC 106), the FHWA is ultimately accountable for ensuring that the FAHP is delivered consistent with established requirements. The FHWA retains overall responsibility for the FAHP. Delegation of authority of certain project approvals does not alter the fact that the FHWA is the federal agency responsible for ensuring compliance with federal requirements in the delivery of the FAHP.
  
  The FAHP has been administered jointly by the FHWA and the State departments of transportation and other highway program fund recipients for many years. Over the years, the overall program has evolved requiring a more comprehensive Stewardship Agreement that covers all aspects of the FAHP. The Stewardship Agreement is intended to formalize delegated responsibilities (on how the FAHP will be administered in the State), result in the efficient and effective management of public funds, and ensure that the FAHP is delivered consistent with laws, regulations, and policies.
• Purpose
  
  This Stewardship and Oversight Agreement clarifies the roles and responsibilities of both the FHWA and Washington State Department of Transportation (WSDOT), as well as Local Agencies (LAs) in administering the FAHP. Since Title 23 does not recognize LAs as direct recipients of Federal-aid funds, LAs cannot take the place of WSDOT in the administration of the FAHP in Washington State. The WSDOT is permitted, under 23 CFR 1.11 and 23 CFR 635.105, to delegate certain activities under its supervision to LAs. However, the WSDOT accepts responsibility for those delegated activities.
  
  This Agreement does not replace the provisions of 23 USC nor does it modify the FHWA’s non-Title 23 program oversight and project approval responsibilities for activities such as those required under the Clean Air Act, NEPA of 1969 and other related environmental laws and statutes; the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (as amended); and the Civil Rights Act of 1964 (as amended) and related statutes, unless expressly permitted by SAFETEA-LU Section 6004-6005.
  
  Notwithstanding the Agreement, the FHWA retains overall responsibility for all aspects of the FAHP. As noted above, the Stewardship Agreement does not preclude the FHWA’s access to and review of any Federal-aid project at any time. On the broader program level, the FHWA will continue to provide stewardship and oversight of the FAHP through a rigorous risk management process and through general actions and concurrences in its day-to-day activities, including improvements to program procedures and program and/or project approvals.
  
  This Stewardship Agreement replaces the May 2001 Agreement between the FHWA Washington Division and the WSDOT. The Division has established and will continue to work with WSDOT to develop performance/compliance indicators that periodically gauge the effectiveness of the delegated authority outlined in this document.
• State and Division Roles & Responsibilities
  
  
• Project Oversight

  FHWA will determine project eligibility at Preliminary Engineering (PE), Right of Way (ROW) or construction authorization and approve NEPA compliance on all projects. Oversight for project development and construction on Federal-aid projects is as follows:

  • Major Projects
    The SAFETEA-LU Section 1904(a) requires Project Management Plans (PMP) and an annual Financial Plan (FP) for projects with an estimated cost of more than $500 million. In addition, SAFETEA-LU requires that annual FPs be prepared for projects with an estimated cost from $100-500 million.
    
    WSDOT will prepare the initial PMP prior to initiating the project’s environmental study. FHWA will review and approve the initial PMP. Prior to issuing the Record of Decision (ROD) or Finding of No Significant Impact (FONSI), WSDOT will update the PMP and FHWA will review and approve the updated PMP. Prior to the authorization of federal funds, WSDOT will update the PMP and FHWA will review/approve the updated PMP. The PMPs will be updated by WSDOT and reviewed and approved by the FHWA accordingly.
    
    FHWA review and approval of the initial FP for projects over $500 million is required prior to authorization of Federal-aid funds. WSDOT will provide annual updates to the FPs. FHWA will review and approve the FP annual updates.
  • National Highway System (NHS) Interstate New and/or Reconstruction Projects (Full Federal Oversight)
    New and reconstruction projects on the Interstate, regardless of the category of Federal-aid funds, will be administered under full oversight, as presently provided by FHWA. Full FHWA oversight does not preclude further streamlining of the program delivery process under Title 23 and non-Title 23 regulations. FHWA has design approval regardless of funding source if the project is on the Interstate
  • NHS – Interstate other than New and/or Reconstruction Projects (Non-full Federal Oversight)
    These projects will be administered by WSDOT. Regardless of the category of Federal-aid funds, FHWA will authorize PE, ROW, and construction. FHWA has in turn delegated to WSDOT authority for project development and construction to approve: design reports, design deviations, tied bids, proprietary items, State-furnished materials, PS&E’s, concurrence in the award of contracts, claim settlements, all change orders, and other related traditional Title 23 FHWA approval actions. WSDOT Headquarters (HQ’s) and Regions will perform design reviews and construction inspections as necessary to insure compliance with Title 23 requirements. FHWA will exercise oversight through program and limited project reviews such as construction inspections and design stewardship reviews. FHWA has design approval regardless of funding source if the project is on the Interstate.
  • NHS Non-Interstate (Non-full Federal Oversight)
    These projects will be administered by both WSDOT and LAs, regardless of the category of Federal-aid funds, except for certain high cost or unique projects. WSDOT and LAs are delegated certain approval authority for design reports, design deviations, concurrence in award, claim settlements, change orders, and other related Title 23 approval actions. WSDOT and LAs will perform reviews and inspections as necessary to insure compliance with federal regulations. Regardless of the category of Federal-aid funds, FHWA will authorize PE, ROW, and construction, and exercise oversight on federal requirements through program and limited project reviews such as construction inspections and design stewardship reviews. The LA provisions of this plan support current delegations and procedures.
  • Non-NHS (Non-full Federal Oversight)
    These p rojects are administered by both WSDOT and LAs. The Non-NHS projects, regardless of the category of Federal-aid funds, will be administered in accordance with this plan. FHWA will authorize PE, ROW, and construction, and exercise oversight on federal requirements through program and limited project reviews such as construction inspections and design stewardship reviews. The LA provisions of this plan support current delegations and procedures.
  • Standards
    
    Two categories of standards are established for design and construction purposes:
    
    
  • NHS – Title 23 USC, Section 109(b) and Section 109(c) specify that the design and construction standards for all Interstate projects shall meet or exceed AASHTO standards. The standards stipulated in WSDOT’s Design, Construction, and Local Agency Guidelines (LAG) manuals, have been developed to meet or exceed these standards. These standards are applicable for both WSDOT administered and LA administered (through WSDOT) projects on the NHS (including Interstates).
  • Non-NHS – Per 23 USC 109(o), projects not on the NHS shall be designed, constructed, operated, and maintained in accordance with AASHTO Standards, State laws, regulations, directives, safety standards, design standards, and construction standards, except for requirements pertaining to contracts (bid proposal content including Davis Bacon and DBE) and procurement procedures (competitive bidding and the Brooks Act). Design standards shall be in accordance with the WSDOT Design or LAG manuals, as applicable.
• Methods of Oversight
  
  The FHWA Washington Division Office and WSDOT will utilize a balanced approach involving several stewardship and oversight techniques to ensure Federal-aid funds are used effectively in Washington State. FHWA’s oversight responsibilities will be primarily programs and systems oriented rather than project directed. Process review procedures are an integral and essential part of the stewardship process. It does not, however, preclude the use of other program monitoring techniques, including project specific activities, when appropriate. Risk Assessment procedures will be one of the tools used to set priorities and determine the scope of reviews. Other factors to be considered include: level of federal interest; technical complexity; local circumstances; statutory requirements; current emphasis areas; and findings of prior problems and/or cyclical requirements. Joint FHWA/WSDOT oversight reviews will be encouraged in those areas where both offices have responsibility for insuring compliance.
  
  At the beginning of each Federal Fiscal Year (FFY), the Washington Division Office will work with WSDOT in developing reviews for the forthcoming year.
  
  FHWA and WSDOT will jointly administer the FAHP through methods of oversight that include Performance Indicators/Measures, Program Assessments, Program Reviews, and Program Management and contribute to the development of a Risk-Based Action Plan. The following is a detailed description of each technique used in providing stewardship and oversight of the FAHP.
  • Performance Indicators
    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 and may trigger program reviews or program management techniques such as project inspections and/or project document reviews. Indicators/measures will be updated monthly, quarterly, or annually depending on the indicator/measure.
    
    Maintaining, updating, and improving the performance indicators/measures are the continuous responsibility of FHWA and WSDOT. These performance indicators/measures are subject to modification or change as business measures change. Measures can be evaluated at any time by FHWA and WSDOT. Target indicators are included to track how well targets are being met on previously selected criteria.
  • Program Assessments
    This technique may take many forms including joint risk assessments, self-assessments and program assessments. All of these tools are based on the common concepts of identifying strengths, weaknesses and opportunities and the identification and sharing of “best” practices to continually improve the program.
  • Program Reviews
    These reviews are a thorough analysis of key program components and the processes employed by WSDOT in managing the program. The reviews are conducted to: 1) ensure compliance with Federal requirements (e.g., mandatory reviews); 2) identify opportunities for greater efficiencies and improvements to the program; and/or 3) identify exemplary practices. They can be referred to, or known as, program improvement reviews, program assessments, process reviews, program/product evaluations, or continuous process improvement initiatives.
  • Program Management
    Program management includes the daily stewardship of Federal-aid programs, including project and program oversight and program assistance. Program management ensures Federal program requirements are met while proactively seeking opportunities to add value in the course of routine program approval actions, participating on joint task forces, joint committees and joint quality improvement teams, and aiding and assisting the State and other transportation stakeholders in answering questions on program issues. FHWA division offices manage programs by completing required program level activities, promoting new program initiatives and concepts and continually assessing the program through routine involvement in program activities.
  • Risk Assessment
    Risk assessment techniques will be used (where appropriate) to determine areas for review.  Techniques used will be an overall consistent risk-based approach for FHWA Washington Division and WSDOT 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.
  • Peer Reviews
    The peer review is designed to have an outside team meet with the host agency to discuss and review its management processes and practices in a particular program area. Information on the host agency and team members’ policies and procedures are exchanged with the intent to improve the overall program process. The information from the peer exchange is presented to agency management for process improvement.
  • Partnering Activities
    Partnering is an effective management technique used to improve communications and enhance the resolution of conflicts during project development and construction. Active participation in partnering activities has resulted in high payoffs in areas such as improved communications and working relationships with FHWA, WSDOT, Federal and State resource agencies, and industry.
  • Task Force Activities
    Washington Division staff may participate in joint FHWA/WSDOT teams under the purview of value-added, re-engineering, or quality improvement. These activities can be an effective method of oversight, an opportunity to support the FHWA/WSDOT partnership, and an effective means of adding value and effecting change to a particular program.
  • Updates or Changes to this Stewardship Agreement
    When an update or change to the Stewardship Agreement is needed both parties will meet and discuss the change. After consensus, an update to the Stewardship Agreement will be issued by FHWA and WSDOT.
• Stewardship and Oversight Program Areas

This Stewardship and Oversight Agreement contains 11 chapters on broad program areas that address most of the main elements of the Federal-aid highway program, based on regulations and national policies.

A. Bridge & Structures
B. Civil Rights

• Construction and Contract Administration
• Design and Pre-construction
• Environment
• Finance and Accounting
• Intelligent Transportation Systems/Mobility
• Planning and Programming
• Research, Technology Transfer and Local Technical Assistance Program
• Right-of-Way
• Safety

A. Bridges & Structures

Program Overview

FHWA is responsible for administering the Highway Bridge Program (HBP). The purpose of the HBP is to improve the condition of public highway bridges over highways, railroads, waterways, or other topographical barriers. Bridges determined to be deficient because of structural or physical deterioration, or functional obsolescence, may be replaced or rehabilitated, while systematic preventive maintenance strategies may be applied to all bridges.

The FHWA is responsible for administering the National Bridge Inspection Standards (NBIS) and National Bridge Inventory (NBI). The NBIS requires that all highway bridges over 20 feet in length be inspected at least once every two years. Certain structures, with good performance history, may be inspected at a lesser frequency if past experience, favorable design considerations and site conditions justify the increased interval of inspection. The NBIS also requires the State to ensure that all bridges within its borders, including county and municipal owned bridges, are inspected in accordance with the NBIS. Federal HBP funds may be used for eligible bridge inspection related costs.

Applicable Laws and Regulations

• 23 USC 144, Highway Bridge Program
• 23 USC 151, National Bridge Inspection Program
• 23 CFR 650, Bridges, Structures and Hydraulics
• FHWA ORDER 5520.1, Preliminary Plan Review & Approval
• 23 USC 109, Standards

Approved Procedures / Agreements / Manuals

• WSDOT Bridge Design Manual
• WSDOT Bridge Inspection Manual
• WSDOT Hydraulics Manual
• WSDOT Geotechnical Design Manual
• WSDOT Local Agency Guidelines Manual
• AASHTO LRFD Bridge Design Specification
• AASHTO Manual for the Condition Evaluation and Load and Resistance Factor Design (LRFD) of Highway Bridges
• FHWA Recording and Coding Guide for the Structure Inventory and Appraisal of the Nation’s Bridges
• 03/15/2005 FHWA Approval of WSDOT Video Bridge Deck Inspection
• 12/20/2002 FHWA Approval of WSDOT Preventive Maintenance Program for State Bridges
• 04/23/2003 FHWA Approval of Preventive Maintenance Program for Local Bridges
• 05/7/1998 FHWA Approval of Criteria for Four-Year Bridge Inspection Intervals
• 10/6/1997 FHWA Memo Requiring Coordination of Design Exceptions from the 16-ft Vertical Clearance Standard Over the Interstate System

Monitoring - Activities

The FHWA Washington Division Office will monitor overall WSDOT and LA compliance with the NBIS through day-to-day contacts with WSDOT personnel, analysis of NBI data, an annual field review of bridges and agencies, reviewing semi-annual performance indicator reports, supplemented by other special reviews of specific program elements as appropriate.

The Washington Division Office will also monitor the programming, selection of projects and proper use of funds for the HBP. This may include periodic participation in on-site field reviews to verify eligibility and condition of bridges, review site information, and evaluate scope of work. Adequate implementation and utilization of bridge management system tools for improved program and project decisions will also be evaluated.

FHWA will monitor design and construction of structural projects through daily contact with WSDOT personnel and provide technical assistance as needed. In addition to specific project related activities identified in the Agreement, the Washington Division Office will also utilize participation in joint task forces, industry teams, local research, meetings and training to assess and provide technical input into these areas. Special process reviews of specific program elements such as design or construction of bridges, hydraulic features, or geotechnical features will be conducted on a periodic basis.

In particular, structural oversight of major projects throughout the project development and construction phases will be in accordance with any project specific stewardship agreements. Periodic meetings with project personnel will be used to monitor progress, as well as technical review of specific documents such as structural design criteria, value engineering reviews, preliminary plans or technical reports, Type, Size and Locations (TS&L) reports, etc.

Specific monitoring activities include:

• Review bridge plans, specifications, special provisions, and estimates for projects with Full FHWA Oversight.
• Review Type, Size and Location reports.
• Provide oversight of bridge construction.
• Review Critical Damage Bridge Repair Reports.
• Review semi-annual Performance Reports for inspection frequencies and critical bridge damage.
• Review annual Performance Reports for all performance indicators.
• Conduct special process reviews of specific program elements such as bridge design, hydraulics, and geotechnical or bridge construction on a periodic basis.
• Review Bridge Construction Unit Costs submittal.
• Provide training and technical assistance in accordance with FHWA Division Office priorities.
• Provide technical assistance and coordination for research related to structures.

Monitoring - Performance Indicators

• Number of routine bridge inspections scheduled for the past six months, and the number actually performed within the required frequency. Indicator will be expressed as a percentage, for State-owned structures, and reported semi-annually.
• Number of fracture critical bridge inspections scheduled for the past six months, and the number actually performed within the required frequency. Indicator will be expressed as a percent, for State-owned structures, and reported semi-annually.
• Number of underwater bridge inspections scheduled for the past six months, and the number actually performed within the required frequency. Indicator will be expressed as a percentage, for both State and locally-owned structures, and reported semi-annually.
• Number of bridges with up-to-date load ratings, and number of bridges needing updated load ratings. First indicator will be expressed as a percentage, and the second as an actual count, for State-owned structures, and reported annually.
• Number of bridges with accurate and legal load posting signs in place, and number of bridges that need to be posted but the posting is not yet legally implemented. Both indicators will be expressed as an actual count, for State-owned structures, and reported annually.
• Number of records with data errors as reported by FHWA Headquarters for WSDOT’s annual submittal of bridge data for the NBI. This indicator will be expressed as a percentage and rounded to the nearest tenth of a percent, and reported annually.
• Number of bridges with critical deficiencies for the past six months, number reported to FHWA Division within five days, and current status of recommended repair or remedy. This indicator will be reported semi-annually, for State-owned structures.
• Number of bridges designed by AASHTO Load and Resistance Factor Design (LRFD), number designed by another method, and number of bridge design deviations processed with a brief description of the justification. This will be reported annually for all bridges that have gone to Ad in the last year for State projects.
• Number of bridge projects with structural change orders that total more than five percent of the original engineer’s estimate for the bridge work. This will include ongoing projects and those completed within the last year. The measure will be expressed as a percentage and be reported annually, for State-owned bridge construction projects.
• Percentage of HBP project costs spent on bridge items versus all other non-bridge items, for WSDOT and locally-owned structures. This will be reported annually for all bridges that have gone to Advertisement (Ad) in the last year, for both State and locally owned structures. (Data available from Washington Division sources)
• The performance indicators for local-agency owned bridges will be included in the Local Agency Bridge Inspection Annual Report. Included in the report will be:
• Number of routine bridge inspections performed and whose interval exceeded 24 months.
• Number of bridges with up-to-date load ratings and number of bridges needing up-to-date load ratings
• Number of bridges with legal load posting signs in place and with postings not yet legally implemented.
• Number of bridges with critical deficiencies, number reported to FHWA Division Office within five days.
• Number of bridges designed by AASHTO LRFD, number designed by another method, and number of bridge design deviations processed with a brief description of the justification. This will be reported annually for all bridges that have gone to Ad in the last year.
• Number of fracture critical bridge inspections performed within the past 12 months and within the required frequency. The indicator will be expressed as a percent.

Business Activities

B. Civil Rights

Program Overview

As stewards for national highway programs, FHWA is committed to effectively implement and enforce applicable Civil Rights laws/statutes/policies in planning, location, design, construction and operation of the multi-modal transportation system. As a recipient/sub-recipient of Federal financial assistance, the WSDOT and LAs are obligated to ensure nondiscrimination in all of their programs and activities (and in the provision of services and benefits) – whether those programs, activities, services and benefits are Federally-funded or not. For programs/projects that are administered by LAs, WSDOT shall be responsible for ensuring that sub-recipients have adequate staffing and project delivery systems in which to carry out their Civil Rights responsibilities.

While certain Civil Rights activities are performed by WSDOT (such as conducting Equal Employment Opportunity (EEO) contractor compliance reviews, assigning & monitoring of training goals, establishing Disadvantaged Business Enterprise (DBE) goals and monitoring participation), the law does not allow FHWA to delegate its Civil Rights program oversight/approval responsibilities. This Agreement describes key Civil Rights program/project actions of both WSDOT and FHWA, along with performance and compliance indicators. It does not, however, modify FHWA’s Civil Rights program/project oversight/approval responsibilities.

The Division Civil Rights Program Manager will provide technical assistance, national policy guidance and training to WSDOT and its sub-recipients, as requested by WSDOT and/or deemed appropriate by FHWA.

The FHWA Civil Rights Program is comprised of ten (10) key focus areas – Title VI, including Limited English Proficiency (LEP) and Environmental Justice (EJ); DBE; On-the-Job Training/Training Special Provisions (OJT/TSP); Supportive Services (for both DBE & OJT programs);EEO Contractor Compliance; State Internal EEO; Tribal Employment Rights Ordinance (TERO); Section 504 of the Rehabilitation Act/Americans with Disabilities Act (504/ADA); Complaint Investigations; and Special Emphasis Programs such as the Summer Transportation Internship for Diverse Groups (STIPDG), Construction Career Days (CCD), and Historically Black Colleges & Universities/Minority Institutions of Highway Education (HBCU/MIHE).

Applicable Laws and Regulations

• Title VI of the Civil Rights Act of 1964 (42 USC 2000d)
• Civil Rights Restoration Act of 1987 (Public Law 100-209)
• Nondiscrimination on the Basis of Sex (23 USC 324)
• Equal Employment Opportunity (EEO) under the Civil Rights Act of 1964 (23 USC 140)
• Age Discrimination Act of 1975 (42 USC 6101-6107)
• Section 504 of the Rehabilitation Act of 1973, as amended (29 USC 794)
• Americans with Disabilities Act ( ADA) (42 USC 12101-12213)
• 49 CFR Parts 21, 24, 26, 27, 37-Appendix A (USDOT Regulations)
• 23 CFR Parts 200, 230, 633 (FHWA Regulations)
• 28 CFR Part 35 (Department of Justice ADA Regulations)
• Executive Order 12898 (Environmental Justice)
• Executive Order 13166 (Limited English Proficiency)
• Executive Orders 13021 & 13270 (Minority Institutions of Higher Education & Tribal Colleges & Universities)
• FHWA Order 6640.23 (Environmental Justice)
• FHWA Notice 4720.6 (Impacts of the Civil Rights Restoration Act of 1987 on FHWA Programs)

Approved Procedures / Agreements / Manuals

• WSDOT DBE Program Plan
• WSDOT EEO Assurances (Parts I Contractor Compliance & II Internal Employment)
• WSDOT Title VI Program Plan
• WSDOT Standard Specifications & General Special Provisions (DBE, OJT & EEO)
• WSDOT Design Manual (Chapters relating to designing pedestrian facilities - ADA design requirements)
• WSDOT Local Agency Guidelines Manual (Chapters relating to DBE, OJT, Title VI (EJ) & EEO)
• WSDOT Construction Manual
• ADA Transition Plan(s)

Monitoring – Activities

The FHWA Washington Division will monitor implementation of the Civil Rights programs (of WSDOT and its recipients) on an on-going basis. Monitoring activities include, but are not limited to, the following:

• Daily contacts
• Review of required program plans/updates prepared by WSDOT (providing feedback and need for corrective actions (as deemed necessary) before granting approval)
• Analyzing progress reports submitted by WSDOT to identify trends/provide feedback and recommendations
• Process/Program reviews (including Planning Certification Reviews, environmental document reviews, et al)
• Participation in WSDOT-initiated contract compliance reviews, goal-setting teams, process improvement work groups, other meetings as necessary/appropriate

Monitoring - Performance Indicators

In addition to the monitoring activities noted above, the Division has identified the following performance indicators from which we will use to measure WSDOT’s (Civil Rights) program effectiveness and determine compliance.

• Percent DBE participation on Federal-aid contracts.
• Number of DBE firms certified, graduated, and decertified. (data reported by OEO)
• Number of DBE Commercially Useful Function (CUF) reviews performed and outcomes. (Data reported by OEO)
• Number of complaints received (formal/informal) regarding prompt payment/return of retainage and actions taken.
• Number of EEO Contractor Compliance Reviews performed and percent with violations.
• Number of training hours assigned (per OJT-Training Special Provisions); number of hours accomplished; number of minority, female and white male trainees approved; number of minority, female and white male trainees who have reached journey-level.
• Number of complaints filed in all areas affecting Civil Rights and the actions taken of the accommodations made.
• Timeliness of reporting. (Program Plan/Update submissions)

Business Activities

C. Construction and Contract Administration

Program Overview

FHWA is required to assure compliance with Federal-aid contract provisions on all projects that utilize Federal funds. Federal responsibility includes the inspection of construction projects utilizing Federal-aid funds. The primary purpose of FHWA review and administration in construction is to protect the public investment, assure effective quality controls, and to verify that the project is completed in accordance with the plans, specifications, and special provisions. ISTEA and TEA-21 allow the delegation of FHWA construction review, oversight and administration responsibilities, except those based on non-Title 23 Federal requirements to the State DOT. SAFETEA-LU does not substantially change this delegation. The FHWA specific construction monitoring responsibilities include stewardship in the following areas:

• Quality Control and Improvement
• Contract Claims
• Change Orders
• Payment to Contractor
• Time Extensions
• Incentives & Disincentives
• Davis-Bacon Act
• Training Program
• Disadvantaged Business Enterprise (DBE) Program

Applicable Laws and Regulations

• 23 USC, 102, 106, 112, 114, 117, 121
• 40 USC 276 (a) Davis-Bacon Act
• 23 CFR 635 Construction and Maintenance
• 23 CFR 637 Construction Inspection and Approval
• 29 CFR Parts 1,2,5,6, & 7

Approved Procedures / Agreements / Manuals

• WSDOT Standard Specifications and General Special Provisions (GSPs)
• WSDOT Construction Manual
• WSDOT Local Agency Guidelines Manual

Monitoring – Activities

The FHWA Washington Division will monitor implementation of the Construction and Contract Administration programs on an on-going basis. Monitoring activities include, but are not limited to:

• Daily Contacts
• Construction Inspections
• Participation in various specification committees such as the Association of General Contractors/WSDOT Administration team, WSDOT/Washington Aggregate and Concrete Association (WACA) meetings, WSDOT/The International Association of Foundation Drilling (ADSC) meetings, WSDOT/American Concrete Pavement Association (ACPA) meetings. FHWA will assess the performance of individual specifications through program or project reviews conducted in accordance with this Agreement.
• Evaluation of WSDOT’s construction program and contract administration processes, including their staffing levels, procedures, and controls for assuring transportation improvements are constructed in accordance with approved standards and acceptable contracting methods.
• Process and program improvement reviews of various construction processes
• Compliance reviews of various construction processes
• Analyzing stewardship reports for trends, etc.

Monitoring – Performance Indicators

In addition to the monitoring activities noted above, the Washington Division has identified the following performance indicators which we will use to determine how well Federal funds are being spent in the Construction and Contract Administration Program Areas.

• WSDOT will report on the types of work or contract items found to be ineligible for Federal-aid participation on an annual basis. (WSDOT projects only-Does not include Local Agencies)
• WSDOT will annually report on the number of projects that meet contract closure requirements. Those requirements include: 1) final contract voucher within 90 days of physical completion of a project and 2) Stewardship report complete within 90 days of final contract voucher. (WSDOT projects only)
• WSDOT will report on Change Orders of Federal-aid projects that exceed five percent of the contract amount on an annual basis. (WSDOT projects only)
• LA performance indicators will be included in the Project Management Review (PMR) Annual Report.

Business Activities

D. Design and Pre-construction

Program Overview

On the program level, the FHWA Washington Division Office approves design standards for new construction, reconstruction, resurfacing, restoration, or rehabilitation of the Interstate System and other highways on the NHS. FHWA provides guidance to WSDOT and other public agencies on the implementation of and conformance to Federal laws, regulations, and policies pertaining to preliminary and detailed design activities. FHWA also shares technical information and provides training opportunities to facilitate professional development of engineering staffs from both the public and private sectors. Jointly, WSDOT and FHWA staffs conduct concentrated Design Stewardship Reviews of specific elements of design produced at the project level.

On a project level, FHWA’s common goal with WSDOT is to develop safe, cost-efficient designs that meet the appropriate standards. Through full oversight on a limited number of projects, and in conformance with the thresholds and stipulations established in this Agreement, FHWA formally reviews and approves various engineering-related submissions, participates in project development decisions through routine review of design plans, and determines the eligibility of Federal-aid participation in the cost for items of work.

Design activities conducted during the Planning and NEPA phases begin with a conceptual outlook and elevate in detail as the project advances. The technical information is used to compare and evaluate the feasibility of alternatives. As a project advances and a preferred alternative has been identified, design work is conducted in greater detail to more fully delineate the footprint of the improvement and more accurately verify and assess the impacts. Included in this effort, as necessary, the Washington Division Office will process and formally evaluate proposed deviations to minimum design criteria (Design Deviations) and Interchange Justification/Modification Reports (IJRs).

During the detail design phase, FHWA’s Area Engineers ensure the design parameters and environmental commitments imposed on projects through the NEPA decision remain satisfied. With support from technical specialists in the Division Office and other offices, FHWA provides technical guidance to resolve issues as they arise, and makes certain the various categories of Federal-aid funds are properly invested in eligible items of work. These efforts are accomplished through active participation in routine plan reviews and ongoing coordination with WSDOT’s project-level staff. The final design product is then ready for estimation and subsequent PS&E approval.

Applicable Laws and Regulations

• Title 23 USC, Chapter 1, Subchapter I, Section 109 – Standards
• 23 USC 109 Limitation on Federal Participation
• 23 CFR 172 Administration of Engineering and Design Related Service Contracts
• 23 CFR 620 Engineering
• 23 CFR 625 Design standards for highways
• 23 CFR 627 Value engineering
• 23 CFR 630 Preconstruction procedures
• 23 CFR 636 Design-build contracting
• 23 CFR 645 Utilities
• 23 CFR 646 Railroads
• 23 CFR 470 Highway Systems
• 23 CFR 650 Bridges, structures, and hydraulics
• 23 CFR 652 Pedestrian and bicycle accommodations and projects
• 23 CFR 655 Traffic Operations (MUTCD)
• 23 CFR 658 Truck Size and Weight, Route Designations – Length, Width, and Weight Limitations
• 23 CFR 710 Right-of-Way and Real Estate
• 23 CFR 752 Landscape and Roadside Development
• 28 CFR 35 Nondiscrimination on the Basis of Disability in State and Local Government Services
• 28 CFR 36 Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities
• 49 CFR 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, applies to all Federal-aid projects, regardless of oversight responsibility.
• 49 CFR 27 Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance
• 49 CFR 37 Transportation Services for Individuals with Disabilities (Americans with Disabilities Act)

Approved Procedures / Agreements / Manuals

WSDOT’s Design, Construction, and LAG Manuals have been developed to meet or exceed current AASHTO design standards, approved by FHWA Headquarters Office, and will apply to all projects on NHS facilities. As revisions to these documents are developed, the WSDOT will request approval from the FHWA Division Office prior to adoption by the department. As applicable AASHTO standards are revised, the WSDOT will incorporate applicable changes that represent a higher level standard. These standards apply to all NHS projects regardless of the category of funding source. FHWA Division Office approval is required for all standard plans, amendments, and GSPs, including LA/American Public Works Association (APWA) Division 1 GSPs intended for use on all Federal-aid projects.

On non-NHS highways, design standards shall be in accordance with the WSDOT Design or LAG manual, as applicable. These need not be approved by FHWA. However, the WSDOT agrees to notify FHWA promptly of all major policy changes to its standards.

Applicable AASHTO Standards and WSDOT Design Standards:

• AASHTO “A Policy on Design Standards Interstate System January 2005”
• AASHTO “A Policy on Geometric Design of Highways and Streets 2004”
• WSDOT Design Manual
• WSDOT Local Agency Guidelines
• WSDOT Plans Preparation Manual
• WSDOT Standard Plans
• FHWA MUTCD (FHWA approved Washington State Modifications to the MUTCD)
• WSDOT Work Zone Traffic Control Guidelines

Monitoring - Activities

The FHWA Washington Division will monitor implementation of the Design Programs of WSDOT and its sub-recipients on an on-going basis. Monitoring activities include but are not limited to:

• Design monitoring of all Federal-aid projects will be accomplished by FHWA through the project-by-project monitoring of eligibility determinations and environmental document approvals.
• FHWA will exercise design oversight on all Interstate new and reconstruction projects and will monitor project design through the use of individual project approval actions and project design reviews. All other monitoring of design will primarily be done on a program-wide basis using Process Review procedures.
• FHWA will exercise design oversight on all Interstate new and reconstruction design/build projects.

Monitoring - Performance Indicators

• Design Standards - Report on Design Variances. (number, type, description, justification) (WSDOT Projects Only)
• State-furnished material justification – Report number of State-furnished Materials approvals. (WSDOT Projects Only)
• Proprietary item, public interest finding – Report number of Proprietary Product approvals. (WSDOT Projects Only)
• Value Engineering (VE) – Submit Annual VE Report. (WSDOT Projects Only)
• Tied Bids – Report number of Tied Bids. (WSDOT Projects Only)
• State Forces Work – Report number of State Forces Work approvals. (WSDOT Projects Only)
• LA performance indicators will be included in the Project Management Review Annual Report. The annual report will include the following:
• Design Standards – report on design deviations.
• Report on VE studies performed by local agencies.

• Business Activities

Applies to all projects regardless of oversight responsibility

E. Environment

Program Overview

For projects using Federal highway trust funds or requiring an FHWA approval action, FHWA is the lead Federal agency in integrating the full range of environmental requirements under a single, unified process that results in effective and sound transportation decisions. The FHWA Washington Division and WSDOT will work together to ensure compliance with NEPA and other applicable laws before an alternative is selected. The level of FHWA involvement is commensurate with the level of the environmental impacts, controversy or project complexity. WSDOT has an Environmental Procedures Manual and a LAG Manual for preparing environmental documentation that will outline the process for each class of actions.

The FHWA Washington Division Office has delegated approval authority to WSDOT for certain categorical exclusions (CEs), for informal consultation under Section 7 of the Endangered Species Act (ESA), and for initiation of Section 106 consultation. These delegations are described in the Programmatic CE Memorandum of Understanding between FHWA and the WSDOT (05/24/1999) and the First Amended Section 106 Statewide Programmatic Agreement (03/21/07). FHWA retains its stewardship and oversight responsibility for these projects through process improvement reviews.

The Table below shows a list of WSDOT and FHWA project actions related to the environmental process. The successful administration of the FAHP is predicated upon WSDOT’s commitment to the preparation and submittal of fully completed documents in accordance with established guidelines, formats, and procedures. Environmental documents prepared by LAs and their consultants will first be reviewed and accepted by WSDOT prior to being forwarded to FHWA, except where FHWA and WSDOT agree that the reviews will be concurrent. FHWA’s goal is to respond to all submissions as soon as possible.

Applicable Laws and Regulations

Federal environmental laws and regulations apply to all Federal actions and all phases of FAHPs, regardless of oversight responsibilities, even if only one phase involves the use of Federal funds. These include, but are not limited to:

• 42 USC 4321-4347, National Environmental Policy Act (NEPA) as amended (P.L. 91-190)(P.L. 94-83)
• 40 CFR 1500, Council on Environmental Quality (CEQ) NEPA Regulations
• 23 USC 109(h). FHWA Environmental Guidelines
• 23 CFR 771, 772, and 777, FHWA Environmental Regulations
• 23 USC 128 and 23 CFR 140, Public Hearings/Public Involvement
• 49 USC 303 and 23 USC 138, Section 4(f)
• 16 USC 4601 Land & Water Conservation Fund Act, Section 6(f)
• Executive Order 11514, Protection and Enhancement of Environmental Quality, as amended by Executive Order 11991
• Executive Order 11990, Protection of Wetlands
• SAFETEA-LU Sections 6001, 6002, 6007, & 6009, and implementing guidance and regulations
• Title 1, Clean Air Act Amendments of 1990
• Section 404 of the Clean Water Act (CWA)
• Section 7 of the Endangered Species Act (ESA)
• 36 CFR 800 Section 106 of the National Historic Preservation Act
• Other applicable Federal environmental laws
• Title VI of the Civil Rights Act of 1964 (42 USC 2000d)
• 49 CFR Parts 21
• 23 CFR 200 Title VI Program and Related Statutes
• Executive Order 12898 (Environmental Justice)

Approved Procedures / Agreements / Manuals

• WSDOT’s Environmental Procedures Manual
• WSDOT Local Agency Guidelines Manual – Chapter 24
• WSDOT Highway Runoff Manual
• Section 106 Statewide Programmatic Agreement of March 2007
• Categorical Exclusion Memorandum of Understanding of May 1999
• 23 CFR 771.111(c) - FHWA/FTA co-lead process.
• Individual Tribal Agreements
• May 10, 1999 Letter to NOAA designating WSDOT as FHWA’s non-Federal representative on informal ESA consultations

Monitoring - Activities

FHWA will monitor compliance with Federal environmental requirements through project-by-project approval actions and through day to day contact providing guidance and technical assistance on environmental issues. Additional monitoring may be done on a program-wide basis using process reviews.

Monitoring - Performance Indicators

Timely completion of NEPA Documents

• WSDOT will report to FHWA annually on the percentage of active NEPA Environmental Assessments (EA) and (Environmental Impact Statements) EIS documents that are meeting their negotiated timeframe.

Compliance with environmental commitments

• WSDOT will share with FHWA its regular agency accountability report on non-compliance events.

Document Quality

• Number of Documented CEs (DCEs) that are returned to WSDOT for more information. (data available from FHWA Project Action Tracking Database)

Business Activities

F. Finance and Accounting

Program Overview

On August 10, 2005, the President signed into law the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users (SAFETEALU). SAFETEA-LU provides greater emphasis on financial integrity, project delivery, and major project oversight. Annual reviews are required of State DOT financial management systems, minimum standards for estimating project costs are to be developed, and annual reviews of State project delivery systems are to be conducted. All major projects exceeding $100 million in total cost are required to have finance plans. These new provisions are designed to strengthen the oversight of projects and increase the accountability of the State in the project delivery process. Additionally, SAFETEA-LU affords the WSDOT new financing options and greater fund transfer flexibility.

Applicable Laws and Regulations

• Title 23 – United States Code (USC) Highways or 23 USC
• Title 23 – Code of Federal Regulations (CFR)
• Title 49 – Code of Federal Regulations (CFR); 49 CFR Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, commonly referred to as the “Common Rule”
• OMB Circular A-87, Cost Principles for State , Local and Indian Tribal Governments
• OMB Circular – A-102, Grants and Cooperative Agreements with State and Local Governments
• OMB Circular A-123, Management Accountability and Control
• OMB Circular A-133, Single Audit Act of 1984
• Cash Management Improvement Act of 1990
• Improper Payments Information Act of 2002

Approved Procedures / Agreements / Manuals

• Cash Management Improvement Act Agreement
• FHWA Order 4560.1a, Financial Integrity Review and Evaluation (FIRE) Program, dated May 19, 2006.
• Department of Transportation (DOT) Order 8000.1C, Office of Inspector General Audit and Investigation Report Findings, Recommendations, and Follow-up Action, dated July 20, 1989.
• Fiscal Management Information System (FMIS) Interface Connection Security Agreement, dated February 7, 2003.
• Rapid Approval and State Payment System (RASPS) Interface Connection Security Agreement, dated January 29, 2003.
• Accounting Manual Chapter 9 – Federal Information
• WSDOT Local Agency Guidelines Manual

Monitoring - Activities

FHWA will monitor all financial management and accounting activities primarily through daily contacts and program level reviews. Through day-to-day contact with WSDOT personnel, FHWA will provide guidance and technical assistance in such areas as fiscal document processing, financial management and reimbursement issues. Input to State and WSDOT auditors in development of audit plans will be provided as requested.

FHWA has implemented the Financial Integrity Review and Evaluation (FIRE) Program (FHWA Order 4560.1a) that requires each Federal-aid Division Office to establish an effective oversight program to ensure that Federal-aid funds are properly managed and effectively used in accordance with Federal policies, and that safeguards are in place to minimize fraud, waste, and abuse. The FIRE Program is a review and oversight program that each Federal-aid Division Office is required to perform in support FHWA’s annual certification of internal and financial controls to support the financial statements. In addition, the FIRE program ensures that proper internal controls are established and followed, with objectivity and a separation of financial duties in conducting the agency’s day-to-day operations. This program incorporates the following activities:

• Financial Management Process Review – A comprehensive review of a key process or system employed by the State in managing Federal-aid funds. The topic will be chosen based on a risk assessment performed by the Division Office.
• Improper Payments Information Act Review – A review of payments made by a State on Federal-aid projects. The sample will be randomly chosen by FHWA Headquarters.
• Quarterly Inactive Project Monitoring – A review of Federal-aid projects for which no costs have been billed to FHWA for a specified period of time. This activity is based on the requirements of 23 CFR Part 630 as amended by the Final Rule on Project Authorizations and Agreements published in the Federal Register on January 31, 2006.
• Single Audit Finding Resolution Plan Review.

In addition, other reviews will be conducted as deemed necessary by the Division Office or as requested by WSDOT. FHWA will, to the maximum extent possible, utilize the work of State and WSDOT auditors to limit the scope of FHWA reviews.

Monitoring - Performance Indicators

• Percent of annual apportion that is inactive. (data available from FMIS)
• Amount of lapsed funds. (data available from FMIS)
• Percent cost escalation between Engineer’s Estimate, Award Amount, and Final Cost. (WSDOT projects only)

Business Activities

G. Intelligent Transportation Systems / Mobility

Program Overview

WSDOT works cooperatively with FHWA in development and implementation of Intelligent Transportation Systems (ITS) initiatives in Washington State. WSDOT has established a multi-disciplinary ITS Core Team, of which FHWA is a member, to provide a technical screening and an ITS oversight function.

WSDOT and FHWA work cooperatively with the Metropolitan Planning Organizations (MPOs) and Rural Transportation Planning Organizations (RTPOs), to promote ITS planning, regional architecture use, and adoption and integration of ITS at the local level. Several organizations have a regional ITS architecture and are actively implementing planning studies related to ITS deployment. WSDOT and FHWA will work cooperatively to assure that ITS projects are consistent with the National ITS Architecture, incorporate ITS Standards and are fully integrated.

A primary ITS goal of WSDOT is to ensure that transportation facilities operate efficiently and that no opportunities to provide integrated ITS features are overlooked during reconstruction.

WSDOT and FHWA have formed partnerships in support of safety and congestion relief initiatives with other State and local agencies, including fire and law enforcement.

Applicable Laws and Regulations

• 23 USC Chapter 1
• SAFETEA-LU Title I Subtitle B section 1201, and Title V Subtitle C
• TEA - 21 Title V Subtitle C
• 23 CFR Part 630 Preconstruction Procedures
• 23 CFR Part 655 Traffic Operations
• 23 CFR Part 940 Intelligent Transportation System Architecture and Standards

Approved Procedures / Agreements / Manuals

• WSDOT Design Manual
• WSDOT Local Agency Guidelines Manual
• ITS Regional Architectures and Strategic Plans
• WSDOT Standard Specifications
• WSDOT Standard Plans
• WSDOT Maintenance Manual
• WSDOT Construction Manual
• WSDOT Supplemental Specifications and GSPs
• MUTCD-Washington Modifications

Monitoring - Activities

• FHWA will conduct routine project and final inspections of traffic operations aspects on FHWA oversight projects. For all other projects, FHWA may conduct process reviews.
• FHWA will provide ongoing technical assistance in the area of traffic operations, will include this area in routine risk assessment evaluations, and will work cooperatively with WSDOT to use process reviews to assess and improve processes and procedures.
• FHWA will participate in annual work zone traffic control reviews with WSDOT.
• FHWA will periodically review and approve WSDOT’s work zone policies and standards for conformance with the FHWA Work Zone Final Rule on Safety and Mobility (23 CFR 630).

Monitoring - Performance Indicators (WSDOT Projects Only)

• Average daily vehicle hours of delay. ( Puget Sound area and Statewide).
• Duration of peak period. (morning and evening for key commute routes).
• Percent of days that speeds fall below 35 mph (morning and evening for key commute routes).
• Number of incidents lasting over 90 minutes.
• Average duration of blocking incidents lasting over 90 minutes.
• Average incident clearance time.

Business Activities

H. Planning and Programming

Program Overview

Transportation planning activities are legislated under SAFETEA-LU Section 6001– Transportation Planning. The most current implementing regulations that apply are found in 23 CFR 450. The FHWA and the Federal Transit Administration (FTA) Region Ten Office are jointly responsible for required approval actions such as: Certification of the metropolitan planning process in each Transportation Management Area at least once every four years and review and approval of the State Transportation Improvement Program (STIP) and its amendments.

Transportation Planning also includes data collection and reporting, which is included under Section 420 of 23 CFR. Section 420.105(b)(2) requires that “…State Transportation Agencies shall provide data that support FHWA’s responsibilities to the Congress and to the public. These data include, but are not limited to, information required for: preparing proposed legislation and reports to the Congress; evaluating the extent, performance, condition, and use of the Nation’s transportation system; analyzing existing and proposed Federal-aid funding methods and levels and the assignment of user cost responsibility; maintaining a critical information base on fuel availability, use, and revenues generated; and calculating apportionment factors.”

When submitting transportation information, the WSDOT agrees to follow the U.S. DOT Information Dissemination Quality Guidelines for complying with the requirements of the U.S. Office of Management and Budget’s Guidelines (for Ensuring and Maximizing the Quality, Objectivity, Utility, and Integrity of Information Disseminated by Federal Agencies) implementing Section 515 of the Treasury and General Government Appropriations Act for Fiscal Year 2001 (P.L. 106-554).

Applicable Laws and Regulations

• Title 23 USC
• Title 1, Clean Air Act Amendment of 1990
• Title 23 CFR Part 450, Statewide Planning and Programming and Metropolitan Planning and Programming
• Title 23 CFR Part 420, Planning Program Management and Coordination
• Title 49 CFR Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreement to State and Local Governments

Approved Procedures / Agreements / Manuals

• State Planning and Research (SPR) Work Program
• WSDOT Local Agency Guidelines Manual

Monitoring – Activities

FHWA participates in Statewide and MPO planning activities as necessary to develop a planning finding as part of the STIP approval. FHWA and WSDOT work together in the project planning phase to ensure compliance with NEPA and other applicable laws before location and design approval. Project coordination is facilitated by frequent consultation and meetings.

• FHWA provides technical expertise and assistance through participation in meetings set up by the MPOs that address data collection and analysis issues as well as coordination on individual topics of interest. In addition, FHWA conducts reviews of planning processes and products such as Highway Performance Monitoring System (HPMS) data, Heavy Vehicle Use Tax (HVUT) enforcement, Motor Fuel Tax (MFT), etc.

Process reviews and other methods of oversight will be utilized, as appropriate, to suppor