
[Federal Register: July 1, 2010 (Volume 75, Number 126)]
[Notices]               
[Page 38365-38383]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01jy10-164]                         

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

 
High-Speed Intercity Passenger Rail (HSIPR) Program

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Notice of funding availability for Individual Projects; 
issuance of interim program guidance.

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SUMMARY: This notice details the application requirements and 
procedures for obtaining funding for individual high-speed and 
intercity passenger rail projects available under the Transportation, 
Housing and Urban Development, and Related Agencies Appropriations Act 
for 2010 (Div. A of the Consolidated Appropriations Act, 2010 (Pub. L. 
111-117, Dec. 16, 2009)). The Federal Railroad Administration has 
issued a separate notice in today's edition of the Federal Register for 
Fiscal Year 2010 funding made available for Service Development 
Programs.
    This document incorporates interim guidance required for the HSIPR 
program pursuant to the Transportation, Housing and Urban Development, 
and Related Agencies Appropriations Act for 2010 and 49 U.S.C. 
24402(a)(2). The funding opportunities described in this notice are 
available under Catalog of Federal Domestic Assistance (CFDA) number 
20.319.

DATES: Applications for funding under this solicitation are due no 
later than 5 p.m. EDT, August 6, 2010. FRA reserves the right to modify 
this deadline.

ADDRESSES: Comments must be submitted through http://
www.grantsolutions.gov. See Section 4 for additional information 
regarding the application process.

FOR FURTHER INFORMATION CONTACT: For further information regarding this 
notice and the HSIPR program, please contact the FRA HSIPR Program 
Manager via e-mail at HSIPR@dot.gov, or by mail: U.S. Department of 
Transportation, Federal Railroad Administration, MS-20, 1200 New Jersey 
Avenue, SE., Washington, DC 20590 Att'n: HSIPR Program.

SUPPLEMENTARY INFORMATION: 

Table of Contents

1. Funding Opportunity Description
2. Award Information
3. Eligibility Information
4. Application and Submission Information
5. Application Review Information
6. Award Administration Information
7. Agency Contact
Appendix 1: Definition of High-Speed and Intercity Passenger Rail
Appendix 2: Additional Information on Stages of Project Development
Appendix 3: Additional Information on Applicant Budgets
Appendix 4: List of Acronyms and Abbreviated References

Section 1: Funding Opportunity Description

1.1 Legislative Authority

    This interim program guidance and financial assistance announcement 
pertains to the funding made available for Individual Projects under 
FRA's HSIPR program. The authority for this grant program is contained 
in two pieces of legislation:
     The Passenger Rail Investment and Improvement Act of 2008 
(PRIIA), under Sections 301, 302, and 501: Intercity Passenger Rail 
Service Corridor Capital Assistance (codified at 49 U.S.C. chapter 
244), General Passenger Rail Transportation (codified at 49 U.S.C. 
chapter 24105), and High-Speed Rail Assistance (codified at 49 U.S.C. 
chapter 26106), respectively; and
     The Fiscal Year 2010 Consolidated Appropriations Act 
(Title I of Division A of Pub. L. 111-117, December 16, 2009) (FY 2010 
DOT Appropriations Act), under the title ``Capital Assistance for High 
Speed Rail Corridors and Intercity Passenger Rail Service.''
    This document incorporates interim guidance required for the HSIPR 
program pursuant to the FY 2010 DOT Appropriations Act and 49 U.S.C. 
24402(a)(2).

1.2 Funding Approach

    The FY 2010 DOT Appropriations Act appropriated a total of $2.5 
billion for the HSIPR program. FRA is soliciting grant applications 
separately for the different components of this appropriation:
     FY 2010 Individual Projects (up to $245 million): Final 
Design/Construction or Preliminary Engineering/NEPA for Individual 
Projects with a 20 percent non-Federal match. This solicitation is for 
these funds.
     FY 2010 Service Development Programs (at least $2,125 
million): Service Development Programs with a 20 percent non-Federal 
match. The notice of funding availability (NOFA) for these funds is 
being issued concurrently with this solicitation.
     FY 2010 Planning Projects (up to $50 million): Planning 
projects with a 20 percent non-Federal match. The solicitation for 
these funds was published on April 1, 2010, and applications were due 
May 19, 2010.
     FY 2010 Multi-State Proposals (from $50 million for 
Planning Projects): Proposals for Federally-led preparation of planning 
documents for high-speed rail corridors that cross multiple states. The 
guidance for submitting proposals was published on April 1, 2010, and 
the proposals were due May 19, 2010.
    The balance of the $2.5 billion is allocated to HSIPR program 
administration and research.

1.3 Forthcoming Interim Guidance

    FRA is preparing a draft guidance document as part of the process 
of

[[Page 38366]]

establishing a long-term framework for the HSIPR program. This 
document, anticipated for publication later this year, will include 
details about each stage of the project development process (from 
planning and design through construction and operation), as well as 
provide substantial technical assistance on the processes and 
documentation needed for successful project development and delivery. 
This guidance is intended for future program administration and does 
not apply to this funding solicitation or the application process 
described in this notice.
    The initial draft of this pending guidance document will be open 
for public comment, and FRA will utilize various outreach mechanisms 
for soliciting feedback from the HSIPR stakeholder community. FRA 
expects to modify the draft guidance document taking into account this 
feedback and to eventually issue Final Guidance that will include 
standards and guidelines that will be applicable to future funding 
opportunities.

Section 2: Award Information

    Of the $2.5 billion appropriated by Congress, up to $245 million is 
available for individual projects. These grants are authorized under 49 
U.S.C. 24406, 49 U.S.C. 24105, and 49 U.S.C. 26106.
    Individual grants made under this solicitation are intended to 
assist States and other eligible applicants with the capital costs of 
improving existing high-speed or intercity passenger rail service. (See 
Appendix 1 for the definition of ``high-speed and intercity passenger 
rail.'') This financial assistance opportunity is for projects that 
involve the following activities:
     Final design (FD)/Construction of projects that already 
have completed site-specific NEPA documentation (project final 
environmental impact statement (EIS), final environmental assessment 
(EA) or categorical exclusion (CE) documentation) and completed 
preliminary engineering (PE); or
     Completion of project NEPA and PE documentation. 
Completion of the grant activities should result in all of the 
documentation necessary for the project to move into the FD/
Construction stage.
    The intent of the Individual Project solicitations is to fund 
discrete Individual Projects that result in operational or other 
tangible improvements (such as station rehabilitation) benefiting one 
or more existing high-speed or intercity passenger rail services.
    FRA will make awards for these projects through cooperative 
agreements. Cooperative agreements allow for greater Federal 
involvement in carrying out the agreed upon investment. The substantial 
Federal involvement for these projects will include technical 
assistance, review of interim work products, and increased program 
oversight. The funding provided under these cooperative agreements will 
be made available to grantees on a reimbursable basis.
    While there are no predetermined minimum or maximum dollar 
thresholds for awards, FRA anticipates making multiple awards from the 
maximum $245 million available for Individual Projects. As such, FRA 
expects applicants to tailor their applications and proposed project 
scopes accordingly. Pursuant to 49 U.S.C. 24402(g)(1), FRA will 
establish the net project cost for the scope of work proposed in an 
application, based on engineering materials, studies of economic 
feasibility, information on the expected use of equipment or 
facilities, and other project information provided in an application. 
FRA reserves the right to contact applicants with any questions or 
comments related to applications.

Section 3: Eligibility Information

    Applications under this solicitation will be required to meet 
minimum requirements related to applicant eligibility, project 
eligibility, and the fulfillment of other eligibility requirements. To 
the extent that an application's substance exceeds the minimum 
eligibility requirements described below, such information will be 
considered in evaluating the merits of an application (see Section 5 
for evaluation and selection criteria).

3.1 Eligible Applicants

    Eligible applicant entities are as follows:
     States (including the District of Columbia);
     Groups of States (Sections 301 and 501 of PRIIA);
     Interstate compacts (Sections 301 and 501);
     Public agencies established by one or more States and 
having responsibility for providing intercity passenger rail service 
(Section 301) or high-speed passenger rail service (Section 501);
     Amtrak (Section 501); and
     Amtrak, in cooperation with States (Sections 301 and 302; 
see 49 U.S.C. 24402(e) for additional information on Amtrak's 
eligibility requirements when applying for grants in cooperation with 
States).

3.2 Minimum Qualifications for Applicant Eligibility

    An applicant must, in addition to demonstrating that it is an 
eligible applicant type for the Individual Project, affirmatively 
demonstrate that the applicant has or will have the legal, financial, 
and technical capacity to carry out the activities proposed within an 
application. A prospective applicant that does not fall within the 
definition of a State, group of States, or Amtrak will also be required 
to submit documentation (such as copies of legislation) demonstrating 
its legal authority to provide intercity or high-speed passenger rail 
service on behalf of a State or group of States.
    In addition, the applicant must demonstrate that it has or will 
have satisfactory continuing control over the use of equipment or 
facilities acquired, constructed, or improved by the project and the 
capability and willingness to maintain such equipment or facilities.
    For an applicant to demonstrate the legal, financial, and technical 
capacity to carry out the activities proposed in its application, the 
applicant will be required to address the following qualifications:
     The applicant's ability to absorb potential cost overruns 
or financial shortfalls;
     The applicant's experience in effectively administering 
grants of similar scope and value (including timely completion of grant 
deliverables, compliance with grant conditions, and quality and cost 
controls); and
     The applicant's experience in managing railroad investment 
project development activities of a nature similar to those for which 
funding is being requested.
    For an applicant to demonstrate that it has or will have 
satisfactory continuing control over the use of equipment or facilities 
acquired, constructed, or improved by the project, the applicant will 
be required to show either:
     That the applicant has or will have direct ownership of 
the equipment or facilities acquired, constructed, or improved by the 
project; or
     That the applicant has secured or has made progress 
towards securing and will have enforceable contractual agreements 
providing satisfactory continuing control in place with the entity or 
entities (e.g., one or more railroads, or a local government) that have 
or will have direct ownership of such assets.
    For an applicant to demonstrate that it has or will have the 
capability and willingness to maintain the equipment

[[Page 38367]]

or facilities acquired, constructed, or improved by the project, the 
applicant will be required to show:
     That it has made progress toward, and will have 
contractual agreements in place with, any entity or entities (e.g., one 
or more railroads, or a local government) that have or will have direct 
ownership of the equipment or facilities acquired, constructed, or 
improved by the project, which address financial and operational 
responsibility for asset use and maintenance for the useful life of the 
asset;
     That, to the extent financial responsibility will fall to 
the applicant, a viable funding source(s) has been identified to cover 
maintenance costs; and
     The applicant's experience in maintaining assets with 
similar financial and operational maintenance requirements as those 
assets for which funding is being requested.
    Information and documentation demonstrating the fulfillment of the 
minimum qualifications described above must be submitted as part of the 
application (see Section 4.2).

3.3 Cost Sharing

3.3.1 Applicant Cost Sharing
    The Federal share of the costs of projects funded through this 
solicitation shall not exceed 80 percent.
    If an applicant chooses the option of contributing, from its own, 
its partner project sponsors', or other interested parties' resources, 
more than the required 20 percent non-Federal share of the costs of its 
proposed project, such additional contributions will be considered in 
evaluating the merit of its application.
3.3.2 Requirements for Applicant Cost Sharing
    An applicant's contribution toward the cost of its proposed project 
may be in the form of cash or, with FRA approval, in-kind contributions 
of services or supplies related to the activities proposed for funding. 
As part of its application, an applicant offering an in-kind 
contribution must provide a documented estimate of the monetary value 
of any such contribution and its eligibility under 49 CFR 18.24 or 
19.23. However, all in-kind contributions must be allowable, 
reasonable, allocable, and in accordance with applicable OMB cost 
principles, and must not represent double-counting of costs otherwise 
accounted for in an indirect cost rate pursuant to which the applicant 
will seek reimbursement.
    The applicant must provide, as part of its application, 
documentation that demonstrates that it has committed and will be able 
to fulfill any required and pledged contribution, including committing 
any required financial resources that are budgeted or planned at the 
time the application is submitted.
    All applicants will be required to identify a viable funding 
source(s) at the time of application to absorb any cost overruns and 
deliver the proposed project with no Federal funding or financial 
assistance beyond that provided in the cooperative agreement.

3.4 Eligible Individual Projects

    Eligible Individual Project activities under this funding 
announcement include completion of PE/NEPA documentation, final design 
(FD), and construction activities. These activities are broken into two 
categories for the purpose of this solicitation and the application 
process: PE/NEPA completion and FD/Construction activities.
    This solicitation will fund activities to advance discrete capital 
projects that will result in service benefits or other tangible 
improvements on a corridor. Capital projects are defined by 49 U.S.C. 
24401(2) and 49 U.S.C. 26106(b)(3) as acquiring, constructing, 
improving, or inspecting equipment, track and track structures, or a 
facility for use in or for the primary benefit of high-speed and 
intercity passenger rail service, expenses incidental to the 
acquisition or construction (including designing, engineering, location 
surveying, mapping, environmental studies, and acquiring rights-of-
way), payments for the capital portions of rail trackage rights 
agreements, highway-rail grade crossing improvements related to high-
speed and intercity passenger rail service, mitigating environmental 
impacts, communication and signalization improvements, relocation 
assistance, acquiring replacement housing sites, acquiring, 
constructing, relocating, and rehabilitating replacement housing, 
rehabilitating, remanufacturing, or overhauling rail rolling stock and 
facilities used primarily in intercity passenger rail service, 
providing access to rolling stock for nonmotorized transportation and 
storage capacity in trains for such transportation, equipment, and 
other luggage; and the first-dollar liability costs for insurance 
related to the provision of intercity passenger rail service under 49 
U.S.C. 24404. FRA will not fund activities not included in this 
definition nor consider the funding of any such activities in 
calculating an applicant's required cost share.
3.4.1 Eligible FD/Construction Activities
    FRA intends for grants awarded for FD/Construction activities to 
fund the design, construction, and full implementation of projects that 
have completed PE/NEPA requirements, as outlined in Section 4.2.5 
below.
    FRA may consider funding only final design for projects that 
represent a critical strategic investment for HSIPR service, are 
sufficiently complex and broad in scope, and for which final design 
would constitute a substantial step in implementing the project. See 
Section 4.2.5 and Appendix 2 for more information on requirements for 
demonstrating completion of PE/NEPA and the requirements for Final 
Design.
3.4.2 Eligible PE/NEPA Activities
    FRA intends for PE/NEPA grants to fund activities that lead 
directly to completion of preliminary engineering (PE) and/or project 
NEPA and related environmental documentation. See Appendix 2.2 for more 
information on NEPA documentation and Appendix 2.3 for more information 
on PE materials.
    Activities proposed in an application must include all remaining 
work needed to fully complete both PE and NEPA documentation to be 
eligible for consideration under this solicitation. The PE/NEPA 
documents resulting from the grant activities must be sufficiently 
developed to support immediate commencement of final design or 
construction activities; however, these final design and construction 
activities would not be funded as part of the grant award.
3.4.3 Standard and Major Capital Projects
    FRA will be distinguishing between ``Standard'' and ``Major'' 
Capital Projects. As required by PRIIA (49 U.S.C. 24403(a)), and in 
keeping with project management approaches in use by other DOT agencies 
(e.g., FTA's Project Management Oversight program (49 CFR part 633), 
and FHWA's IPD Major Project Delivery Guidance), large, complex capital 
projects, designated as ``Major Capital Projects,'' call for a 
particularly rigorous approach towards project management and 
oversight.
    All Individual Projects will be assumed to be Standard Capital 
Projects. However, the Administrator may designate an Individual 
Project as a Major Capital Project if it is determined that the project 
carries more delivery risk and therefore would benefit from a more 
rigorous approach toward project management. Individual Major Capital 
Projects will typically be those that:

[[Page 38368]]

     Involve a recipient whose past experience in managing and 
overseeing similar HSIPR projects is limited;
     Involve the use of new or unproven technology;
     Involve particularly complex institutional relationships 
among project stakeholders (e.g., multiple rail freight operators, 
intercity and commuter rail passenger operators, infrastructure-owning 
railroads, and government agencies); and/or
     Are expected to have a total project cost in excess of 
$100 million.

3.5 Additional Eligibility Requirements

3.5.1 Project Planning
    Individual Projects must be identified through a rational planning 
process that analyzes the investment needs and service objectives of 
the service that the Individual Project is intended to benefit. This 
document may be a Service Development Plan, State Rail Plan, or similar 
planning document.
    At a minimum, the project planning process must demonstrate that 
the project has been identified as the best solution for solving a 
specific existing transportation problem, and make the case for 
investing in the proposed solution. In doing so, project planning must 
encompass activities such as identifying the purpose and need for the 
project and analyzing the costs, benefits, and impacts of a range of 
alternatives for implementing the project and alternatives to the 
project. More information on the objectives and preparation of project 
planning is included in Appendix 2.1.
3.5.2 Operational Independence
    All projects that are proposed to be advanced using HSIPR program 
funding must have operational independence. A project is considered to 
have operational independence if, upon being implemented, it will 
provide tangible and measurable benefits, even if no additional 
investments in the same service are made. Examples of these benefits 
include operational reliability improvements, travel-time reductions, 
and additional service frequencies resulting in increased ridership. 
When applying for funding for PE/NEPA activities, an applicant must 
demonstrate that the project will have operational independence were it 
to advance to construction and full implementation.
    Applications for projects the benefits of which are fully 
contingent upon FRA's selection of another application, or which fail 
to provide information on the stand-alone benefits of the project, will 
not be considered for funding.
3.5.3 Availability of Funds
    It is important for awarded projects to be brought promptly to 
obligation through execution of a cooperative agreement by the 
applicant and FRA and for awarded funds to be expended without delay 
and in accordance with the statement of work and project schedules 
included in the cooperative agreement. Under 49 U.S.C. 24402(h), if any 
amount awarded under the HSIPR program is not obligated within 2 years 
of the date on which the award is made, FRA may cancel the award and 
redistribute the funds to other HSIPR projects at the FRA 
Administrator's sole discretion. Similarly, FRA may require the return 
of obligated funds that remain unexpended if the grantee is not making 
satisfactory progress in implementing the project or program as 
provided for in the cooperative agreement.
3.5.4 Eligibility Restrictions
    Pursuant to the provisions of Sections 301, 302, and 501 of PRIIA, 
the following activities are ineligible to receive Federal funding 
under this solicitation:
     Applications submitted by private entities other than 
Amtrak;
     Projects for which commuter rail passenger transportation 
is the primary intended beneficiary (see Appendix 1);
     Projects in which the physical improvements are located 
outside of the United States; and
     Any expenses associated with passenger rail operating 
costs.
3.5.5 Funding Restrictions
    In general, only those costs considered allowable pursuant to OMB 
Circular A-87, ``Cost Principles for State, Local, and Indian Tribal 
Governments'' (codified at 2 CFR part 225), will be considered for 
funding. Additionally, the following funding restrictions will apply to 
cooperative agreements awarded under this solicitation and must be 
taken into consideration in the development of budget information 
submitted as part of an application:
     Funding may not be used to fund expenses associated with 
the operation of intercity passenger rail service; and
     While there is no cap on a grant recipient's use of grant 
funds for management and administrative costs, such costs must be 
allowable, reasonable, allocable, and in accordance with applicable OMB 
cost principles cited above.
    FRA will also consider reimbursement of pre-award costs incurred 
after the enactment of the FY 2010 DOT Appropriations Act (December 16, 
2009). However, such costs will be considered for reimbursement only to 
the extent that they are otherwise allowable under the applicable cost 
principles. To the extent such pre-award costs are incurred prior to 
the date of submission of an application, the application must show in 
detail what costs have been incurred in order for such costs to be 
considered for reimbursement. Projects for which construction 
activities commenced prior to receipt of an FRA environmental 
determination under NEPA will not be eligible for funding.
    Additionally, a grant recipient may not generally expend any of the 
funds provided in an award on construction or other activities that 
represent an irretrievable commitment of resources to a particular 
course of action affecting the environment until after all 
environmental and historic preservation analyses required by the 
National Environmental Policy Act (42 U.S.C. 4332) (NEPA), the National 
Historic Preservation Act (16 U.S.C. 470(f)) (NHPA), and related laws 
and regulations have been completed and FRA has provided the grant 
recipient with a written notice authorizing it to proceed.
3.5.6 Standards for Equipment Procurement or Design Grants
    If the applicant is seeking a grant for the procurement or design 
of railroad equipment, the proposed equipment should be consistent with 
specifications developed by the Next Generation Corridor Equipment Pool 
Committee. This Committee was established under Section 305 of PRIIA to 
develop a pool of standardized next-generation rail corridor equipment. 
Compliance with Section 305 of PRIIA will assist in creating the 
economies of scale necessary to achieve the Administration's goal of 
developing a sustainable railroad equipment manufacturing base in the 
United States, as outlined in the Vision for High-Speed Rail in America 
(April 2009). The Next Generation Corridor Equipment Pool Committee 
will be issuing specifications for bi-level cars this summer, single-
level cars this winter, and locomotives in 2011.
3.5.7 Positive Train Control (PTC)
    If, as a component of an investment intended to benefit high-speed 
or intercity passenger rail service, a project involves installation 
and/or improvements to railroad signaling/control systems, the 
application must demonstrate that the proposed improvements are 
consistent with a comprehensive plan for complying with

[[Page 38369]]

the requirements for PTC implementation under Section 104 of the Rail 
Safety Improvement Act of 2008 (``RSIA,'' Division A of Pub. L. 110-
432, October 16, 2008, codified at 49 U.S.C. 20157) and with FRA's 
final rule on Positive Train Control Systems published in the Federal 
Register on January 15, 2010 (75 FR 2598).

Section 4: Application and Submission Information

4.1 Application Procedures

4.1.1 Applying Online Through GrantSolutions
    FRA participates in the Grants Management Line of Business (GMLoB) 
E-Gov initiative. As part of that initiative, FRA uses the 
Administration for Children and Families' (ACF) GrantSolutions (GS) 
Grants Management System. All applications must be submitted to FRA 
through GrantSolutions. To access the system, go to https://
www.grantsolutions.gov. Should an applicant encounter difficulties 
accessing using GS, please contact the GrantSolutions Help Desk at 1-
866-577-0771 or via email at help@grantsolutions.gov. Applicants must 
complete the following three steps prior to submitting an application 
through GS:
     Register in GS. Go to https://www.grantsolutions.gov and 
select ``Register'' on the right side of the page. Applicants should 
begin the process immediately to meet the application submission 
deadlines.
     Obtain a Data Universal Number System (DUNS) number. All 
applicants must include a DUNS number in their application. 
Applications without a DUNS number are incomplete. A DUNS number is a 
unique nine-digit number recognized as the universal standard for 
identifying and keeping track of entities receiving Federal funds. The 
identifier is used for tracking purposes and to validate address and 
point of contact information for Federal assistance applicants, 
recipients and subrecipients. The DUNS number will be used throughout 
the grant lifecycle. Obtaining a DUNS number is a free, simple, one-
time activity. Obtain a number by calling 1-866-705-5177 or by applying 
online at http://fedgov.dnb.com/webform/displayHomePage.do.
     Register in the Central Contractor Registration (CCR) 
database. FRA also requires that all applicants (other than 
individuals) for Federal financial assistance maintain current 
registrations in the CCR database. The CCR database is the repository 
for standard information about Federal financial assistance applicants, 
recipients and subrecipients. Organizations that have previously 
submitted applications via http://www.grants.gov or GrantSolutions 
should already be registered with CCR. Please note, however, that 
applicants must update or renew their CCR registration at least once 
per year to maintain an active status. Information about registration 
procedures can be accessed at http://www.ccr.gov.
    Standard OMB forms (identified in Section 4.2.3) will be available 
electronically on the Funding Opportunity page at http://
www.GrantSolutions.gov. The Funding Opportunity screen provides 
applicants with general announcement information and access to all 
application kit materials in order to view and print application forms 
and information. In addition, applicants can apply online through this 
screen.
    Program-specific forms (identified in Sections 4.2.1, 4.2.2, and 
4.2.4) may be downloaded from FRA's Web site at http://www.fra.dot.gov/
Pages/477.shtml.
4.1.2 Address to Request Paper Application Package
    If Internet access is unavailable, please write to FRA at the 
address below to request a paper application.

U.S. Department of Transportation, Federal Railroad Administration, 
Attn: HSIPR Program Information (RPD-10), Mail Stop 20, 1200 New Jersey 
Avenue, SE., Washington, DC 20590.

4.2 Application Package

    Required documents for the application package vary by type of 
grant activity, as summarized in the checklist below.

                                              Application Checklist
----------------------------------------------------------------------------------------------------------------
                                                                                            Grant activity
                                                                                     ---------------------------
                    Documents                                   Format                     FD/
                                                                                      Construction    PE/ NEPA
----------------------------------------------------------------------------------------------------------------
                                              1. Application Forms
----------------------------------------------------------------------------------------------------------------
[ballot] HSIPR Individual Project Application     Form..............................      [check]   ............
 Form--FD/Construction.
[ballot] HSIPR Individual Project Application     Form..............................  ............      [check]
 Form--PE/NEPA.
----------------------------------------------------------------------------------------------------------------
                                           2. Budget and Schedule Form
----------------------------------------------------------------------------------------------------------------
[ballot] HSIPR Individual Project Budget and      Form..............................      [check]   ............
 Schedule Form.
----------------------------------------------------------------------------------------------------------------
                                              3. OMB Standard Forms
----------------------------------------------------------------------------------------------------------------
[ballot] SF 424: Application for Federal          Form..............................      [check]       [check]
 Assistance.
[ballot] SF 424A: Budget Information-Non          Form..............................            *       [check]
 Construction.
[ballot] SF 424B: Assurances-Non Construction...  Form..............................            *       [check]
[ballot] SF 424C: Budget Information-             Form..............................   [check] **   ............
 Construction.
[ballot] SF 424D: Assurances-Construction.......  Form..............................   [check] **   ............
----------------------------------------------------------------------------------------------------------------
                                           4. FRA Assurances Document
----------------------------------------------------------------------------------------------------------------
[ballot] FRA Assurances Document................  Form..............................      [check]       [check]
----------------------------------------------------------------------------------------------------------------
                                 5. Project Development Supporting Documentation
----------------------------------------------------------------------------------------------------------------
[ballot] Project Planning Documentation.........  No Specified Format...............      [check]       [check]
[ballot] Preliminary Engineering (PE)             No Specified Format...............      [check]   ............
 Documentation.
[ballot] NEPA Documentation.....................  No Specified Format...............      [check]   ............
----------------------------------------------------------------------------------------------------------------

[[Page 38370]]


                                  6. Project Delivery Supporting Documentation
----------------------------------------------------------------------------------------------------------------
[ballot] Project Management Documentation.......  No Specified Format...............      [check]       [check]
[ballot] Financial Planning Documentation.......  No Specified Format...............      [check]       [check]
[ballot] System Safety Plan.....................  No Specified Format...............      [check]   ............
[ballot] Railroad and Project Sponsor Agreements  No Specified Format...............      [check]       [check]
----------------------------------------------------------------------------------------------------------------
                                      7. Optional Supporting Documentation
----------------------------------------------------------------------------------------------------------------
[ballot] Other Relevant and Available             n/a...............................     Optional      Optional
 Documentation.
----------------------------------------------------------------------------------------------------------------
* These documents are required for FD/Construction projects that include investments that are not construction
  activities.
** These documents are not required for FD/Construction applications that only include investments that are not
  construction activities.

    Applicants must complete and submit all components of the 
application package as required by grant activity; failure to do so may 
result in the application being removed from consideration for award. 
All components of the application package must be submitted through 
GrantSolutions (including optional supporting documentation), as 
described in Section 4.1.1.
    The application package for HSIPR Individual Projects contains 
seven components:
    1. HSIPR Individual Project Application Form (varies by project 
type) (see Section 4.2.1)
    2. HSIPR Individual Project Budget and Schedule Form (see Section 
4.2.2)
    3. OMB Standard Forms (vary by project type) (see Section 4.2.3)
    4. FRA Assurances Document (see Section 4.2.4)
    5. Project Development Supporting Documentation (see Section 4.2.5)
    6. Project Delivery Supporting Documentation (see Section 4.2.6)
    7. Optional Supporting Documentation (see Section 4.2.7)
    For any other documentation required prior to award that is not 
specified in this notice, FRA will make individual arrangements with 
applicants for the submission of the required documentation.
4.2.1 HSIPR Individual Project Application Forms
    Applicants applying for funding for PE/NEPA completion must 
complete the HSIPR Individual Project--PE/NEPA Application Form; 
applicants applying for funding for FD/Construction activities should 
complete the HSIPR Individual Project--FD/Construction Application 
Form.
    The Application Forms include fields that have been developed by 
FRA to capture pertinent qualitative and quantitative project-specific 
information that is needed for FRA to confirm applicant and project 
eligibility, as well as information needed for evaluation and selection 
of applications. Both Application Forms request three types of 
information:
    1. General applicant and project information;
    2. Narratives that allow the applicant to make arguments for the 
benefits of the proposed project or underlying project and other 
factors that are used to evaluate the merits of the application (see 
Section 5.2 for evaluation criteria); and
    3. A Statement of Work (SOW)--scope, schedule, and budget--that 
provides a description of the work that will be completed under the 
cooperative agreement, including the objectives, deliverables, 
milestones, project management information, and a budget broken down by 
deliverables and milestones that includes the assumptions used to 
develop the estimates. See Appendix 3 of this solicitation for more 
information on preparing project budgets.
4.2.2 HSIPR Individual Project Budget and Schedule Form
    The HSIPR Individual Project Budget and Schedule Form is a 
Microsoft Excel document that supports the qualitative and quantitative 
claims made in the applicant's HSIPR Individual Project Application 
Form. In addition to capturing detailed project budget and schedule 
information, the form also describes the standard cost categories 
developed by FRA to assist in evaluating and selecting projects.
4.2.3 OMB Standard Forms
    The Standard Forms are developed by the Office of Management and 
Budget (OMB) and are required of all grant applicants. While all 
applicants must submit Standard Forms with their application materials, 
the specific forms required vary by grant activity.
    Applicants applying for funding for FD/Construction activities 
(except for projects that do not include construction activities) 
should submit the following forms electronically through 
GrantSolutions:
     Standard Form 424: Application for Federal Assistance;
     Standard Form 424C: Budget Information--Construction 
Programs; and
     Standard Form 424D: Assurances--Construction Programs.
    Applicants applying for funding for PE/NEPA completion or for FD/
Construction activities that do not include construction activities 
should submit the following forms electronically through 
GrantSolutions:
     Standard Form 424: Application for Federal Assistance;
     Standard Form 424A: Budget Information--Non-Construction 
Programs; and
     Standard Form 424B: Assurances--Non-Construction Programs.
4.2.4 FRA Assurances Document
    The FRA Assurances document contains standard Department 
certifications on grantee suspension and debarment, drug-free workplace 
requirements, and Federal lobbying. The FRA Assurances document can be 
obtained from FRA's Web site at http://www.fra.dot.gov/downloads/admin/
assurancesandcertifications.pdf. The document should be signed by an 
authorized certifying official for the applicant, scanned into 
electronic format, and submitted through GrantSolutions.
4.2.5 Project Development Supporting Documentation
    The project development documentation below focuses on the physical 
attributes of a project and its

[[Page 38371]]

anticipated outcomes and varies by the type of activity for which 
funding is being sought. These materials must demonstrate that the 
project has completed the specified prerequisites for the project's 
prior phases of development, and is ready to progress to the next phase 
of development.
     Project Planning Documentation--
     [cir] All projects: Applicants should provide documents that 
identifies the proposed project as an outcome of a rational planning 
process, demonstrates that the project has been identified as the best 
solution for solving a specific existing transportation problem, and 
makes the case for investing in the proposed solution. This document 
may be a Service Development Plan, State Rail Plan, or other project 
planning document. At a minimum, the project planning process must 
demonstrate that the project has been identified as the best solution 
for solving a specific existing transportation problem and make the 
case for investing in the proposed solution. In doing so, project 
planning must encompass activities such as identifying the purpose and 
need for the project and analyzing the costs, benefits, and impacts of 
a range of alternatives for implementing the project and alternatives 
to the project. FRA recognizes that a variety of formats and types of 
information may meet the objectives described above. Applications that 
do not demonstrate fulfillment of these objectives may be determined by 
FRA to be not ready for consideration and evaluation. See Appendix 2.1 
for additional information and suggested content for project planning 
documentation that satisfies the objectives above.
     Preliminary Engineering (PE) Documentation--
     [cir] FD/Construction projects: Applicants should provide 
documents that demonstrate completion of PE (or Final Design, if 
completed) for the proposed project. PE refines project plans and 
conceptual designs in order to identify the specific design alternative 
that can assure delivery of project objectives. At a minimum, PE 
documentation must demonstrate fully (1) the construction and 
operational feasibility of the project, (2) a level of project design, 
cost estimates, and schedules sufficient to advance immediately into 
full implementation, e.g., through a ``design-build'' contract, and, as 
applicable, (3) identification of service operation outcomes sufficient 
to support agreements with other parties (e.g., railroads) needed to 
deliver those benefits.
     [cir] PE/NEPA projects: Applicants should provide any documents 
that demonstrate the PE status, if begun, of the proposed project.
    See Appendix 2.3 for additional information on Preliminary 
Engineering.
     National Environmental Policy Act (NEPA) Documentation--
     [cir] FD/Construction projects: Applicants must provide documents 
(e.g., a Categorical Exclusion (CE) worksheet, a completed 
Environmental Assessment (EA), or a completed Final Environmental 
Impact Statement (FEIS)) that demonstrate completion of the NEPA 
process for the proposed project (either submitted with the application 
package or referenced through an accurate URL). Any NEPA documentation 
submitted must be approved by the responsible state agency as 
sufficient and complete. While a project NEPA determination (a Record 
of Decision, Finding of No Significant Impact, or CE determination) is 
not required at the time of application submission, this determination 
must be issued by FRA prior to award of a construction grant and 
commencement of any construction activities related to the project. FRA 
will not consider for an award any project that is not supported by an 
adequate and appropriate NEPA document.
     [cir] PE/NEPA projects: Applicants should provide any documents 
that demonstrate the status of NEPA documentation, if begun, of the 
proposed project.
    NEPA requirements are detailed in Appendix 2.2 of this 
solicitation.
4.2.6 Project Delivery Supporting Documentation
    Project delivery documentation of the types described below focuses 
on the implementation of the project and how the risks and 
uncertainties associated with the project will be managed.
    FRA recognizes that a variety of formats and types of information 
may meet the objectives described below. Applications that do not 
demonstrate fulfillment of these objectives may be determined by FRA to 
be not ready for consideration and evaluation.
     Project Management Documentation--Project management 
documentation serves as a summary of the applicant's approach toward 
the planning, monitoring, and implementation of a project. While this 
documentation may reference outputs of the project development process 
(such as scope and design specifications, cost estimates, and project 
schedules), this documentation should stand on its own as the primary 
source of information related to an applicant's plan for project 
implementation. At a minimum, an application must demonstrate that the 
applicant's management procedures and organization give it the legal, 
financial, and technical capability and capacity to carry out 
successfully the activities for which funding is being sought (e.g., 
PE/NEPA or FD/Construction activities), as well as identification of 
accountable individuals or key positions.
     Financial Planning Documentation--Financial planning 
documentation addresses the applicant's approach toward managing the 
financial resources necessary to deliver the project. At a minimum, the 
financial planning documentation for Individual Projects must include 
the following:
     [cir] Documentation of the applicant's legal and other necessary 
authority to accept and spend Federal and non-Federal funds for the 
project;
     [cir] Information describing the recent and forecasted financial 
condition and health of the applicant and other key partners that are 
anticipated to provide funding for the project;
     [cir] Documentation demonstrating that any non-HSIPR program 
funding necessary to complete an application's proposed activities has 
been, or is reasonably expected to be, committed;
     [cir] Description of the risks associated with project financing 
(e.g., any uncertainty regarding funding commitments and the potential 
for unanticipated cost overruns) and of the approach to managing those 
risks;
     [cir] A cash flow forecast showing the individual sources and uses 
of all project funding (preferably by quarter); and
     [cir] Documentation demonstrating that the HSIPR service that is 
intended to benefit from the project will remain operationally and 
financially viable throughout the anticipated life of the project 
improvements (e.g., State operating support to make up any deficits).
    Financial planning documentation accompanying a PE/NEPA application 
must only address the PE/NEPA phase of the project's development, not 
the future final design and construction activities of the underlying 
project.
     System Safety Plan--A System Safety Plan (SSP) must be 
submitted that demonstrates that the project's design, implementation, 
and operation will comply with all applicable FRA safety requirements 
and will be performed in a manner that places safety as the highest 
priority. In general, the length, detail, and complexity of the SSP 
will depend significantly on the size and complexity of the project. 
For relatively simple Individual Construction Projects, the SSP may be 
very limited, describing the project

[[Page 38372]]

design's compliance with specific safety regulations, and providing 
reference to procedures that will be followed for ensuring the 
project's safe implementation. As applicable, the preparation of the 
SSP should be closely coordinated with, and may draw content from, 
documentation prepared by the applicant to satisfy requirements of the 
FRA Office of Railroad Safety, especially the guidelines for an APTA/
FRA System Safety Program Plan, the FRA guidelines for collision hazard 
analysis, and any subsequent FRA regulations currently being developed 
requiring System Safety Plans. Prior to FRA issuing a cooperative 
agreement for an Individual Project, an applicant must complete a 
System Security Plan. Neither a System Safety Plan nor System Security 
Plan is required for a PE/NEPA application.
     Railroad and Project Sponsor Agreements--Although the 
implementation of a HSIPR Individual Project will generally require the 
development of numerous agreements of varying complexity between the 
parties involved with and affected by the project, two categories of 
agreement represent key elements of project delivery: (1) Agreements 
between the project sponsor(s) and the railroad(s) that own the 
infrastructure and that operate the service, and (2) agreements between 
multiple project sponsors, for projects that cross jurisdictional 
boundaries and/or involve subrecipients. Agreements with these key 
project stakeholders should be appropriate for the phase of development 
the project has reached:
     [cir] FD/Construction applications: Applications for FD/
Construction activities must include, at a minimum, agreements in 
principle with railroads that own any infrastructure to be improved as 
part of the project and the operator of the HSIPR service(s) that will 
benefit from the project. Agreements in principle must demonstrate the 
railroads' commitment to taking all steps within their control to 
ensure the achievement of the public benefits (and particularly all 
operational benefits) of the Individual Project that are described in 
the application. Such agreements in principle should be structured so 
as to be able serve as the basis for future contractual agreements 
through which the railroads' cooperation in achieving the public 
benefits may be enforced by the project sponsor.
     [cir] PE/NEPA applications: Prior to commencement of PE/NEPA 
activities, project sponsors must reach agreements in principle with 
all involved railroads (whether operators or infrastructure owners) 
that address the following three topics in detail (as applicable):
    1. Concurrence with the suitability of the identified project 
alternative to fulfill the purpose and need of the project;
    2. Participation in the refinement of project designs, cost 
estimates, and schedules; and
    3. Site access to support the completion of project NEPA.
     [cir] For any project (FD/Construction or PE/NEPA) that has 
multiple potential grantees or project sponsors, the application must 
include a Project Sponsor Agreement executed among all of the parties 
involved that establishes the relationships between these entities and 
that identifies a single legal Grantee who will be responsible to and 
serve as the primary point of contact for FRA.
4.2.7 Optional Supporting Documentation
     Other Relevant and Available Documentation--To support the 
application package, FRA welcomes the submission of other relevant and 
available supporting documentation that may have been developed by the 
applicant. The format and structure of any optional supporting 
documents is at the discretion of the applicant. Optional supporting 
documentation may be provided one of two ways: (1) As attachments to 
the application, or (2) in hard copy to the address in Section 4.5 for 
materials that cannot otherwise be provided electronically. Applicants 
should provide notifications of any documentation being submitted in 
hard copy in the appropriate section of the Application Form.

4.3 Submission Date and Time

    Applications for these funds must be submitted through 
GrantSolutions by 5 p.m. EDT, August 6, 2010.

4.4 Intergovernmental Review

    This program has not been designated as subject to Executive Order 
12372 pursuant to 49 CFR part 17.

4.5 Other Submission Information

    As detailed in Section 4.1.1, all application materials, including 
supporting documentation, should be submitted through GrantSolutions. 
Should an applicant encounter technical difficulties using the 
GrantSolutions system, please contact the GrantSolutions Help Desk at 
1-866-577-0771 or via email at help@grantsolutions.gov. If the 
applicant experiences technical issues that may cause the applicant to 
miss the application deadline, the applicant must contact FRA at 
HSIPR@dot.gov immediately to request consideration to submit the 
application after the deadline. FRA staff may ask the applicant to 
email the complete grant application, the DUNS number, and provide a 
GrantSolutions Customer Support tracking number(s). After FRA reviews 
all of the information submitted and contacts the GrantSolutions 
Customer Support to validate the technical issues reported, FRA will 
contact the applicant to either approve or deny the request to submit a 
late application. If the technical issues reported cannot be validated, 
the application may be rejected as untimely. For applications submitted 
by email, the applicant should print, sign, scan into electronic format 
(preferably Adobe Portable Document Format (.pdf)), and attach to the 
submission email copies of all application forms requiring the 
applicant's signature.
    For optional supporting documentation that an applicant is unable 
to submit electronically (such as oversized engineering drawings), an 
applicant may submit an original and two copies to the address below. 
However, due to delays caused by enhanced screening of mail delivered 
via the U.S. Postal Service, applicants are advised to use other means 
of conveyance (such as courier service) to assure timely receipt of 
materials.

U.S. Department of Transportation, Federal Railroad Administration, 
Attn: HSIPR Program Information (RPD-10) Room 38-302, Mail Stop 20, 
1200 New Jersey Avenue, SE., Washington, DC 20590.

Section 5: Application Review Information

5.1 Review and Selection Process

    Complete applications are due by 5 p.m. EDT, August 6, 2010. 
Applications will proceed through a three-step process:
    1. Screening for completeness and eligibility (requirements 
outlined above in Section 3);
    2. Review of each eligible application individually by a technical 
panel applying ``evaluation criteria;'' and
    3. Final review of all eligible applications collectively and 
selection by the FRA Administrator applying ``selection criteria.''
    All applications will first be screened for completeness and 
applicant and project eligibility. Applications determined to be both 
complete and eligible will be referred to a technical panel consisting 
of subject-matter experts for an evaluation review. The panels will be 
comprised of professional

[[Page 38373]]

staff employed by FRA and other DOT modal administrations, as 
appropriate.
    Applications will be individually reviewed and assessed against the 
evaluation criteria outlined in Section 5.2. For each of the criteria, 
the panel will assign a rating of zero to three points, based on the 
application's fulfillment of the objectives of each criterion. These 
individual criterion ratings will then be combined according to 
priority of criteria to arrive at an overall rating for the 
application.
    The evaluation criteria, ranked in order of priority, are:
    1. Public Benefits/Project Delivery Approach
    2. Sustainability of Benefits
    In addition to the ratings assigned by the technical evaluation 
panels, the FRA Administrator may take into account several cross-
cutting and comparative selection criteria to determine awards. The 
Administrator will review the preliminary results to ensure that the 
scoring has been applied consistently and that the collective results 
meet several key priorities essential to the success and sustainability 
of the program (see Section 5.3). The five selection criteria are:
    1. Fulfillment of DOT Strategic Goals
    2. Region/Location
    3. Innovation/Resource Development
    4. Partnerships/Participation
    5. Prior Federal Funding and State Investments
    For applications for funding for FD/Construction activities, the 
evaluation and selection criteria will be applied to the proposed 
projects. For applications for funding for PE/NEPA completion, the 
evaluation and selection criteria will be applied to the underlying 
projects that will be the subject of PE/NEPA development, except where 
explicitly indicated.
    In accordance with 49 U.S.C. 24402(c), FRA may also consider 
``other relevant factors as determined by the Secretary'' of 
Transportation, in addition to the evaluation and selection criteria 
described below.

5.2 Evaluation Criteria

    Careful economic analysis that quantifies and demonstrates the 
monetary value of user benefits and, if available, public benefits will 
be particularly relevant to FRA in evaluating applications. The 
systematic process of comparing expected benefits and costs helps 
decision-makers organize information about, and evaluate trade-offs 
between, alternative transportation investments. FRA will consider 
benefits and costs using standard data provided by applicants and will 
evaluate applications in a manner consistent with Executive Order 
12893, Principles for Federal Infrastructure Investments, 59 FR 4233 
(January 31, 1994).
5.2.1 Public Benefits
    Evaluation against this criterion will consider the qualitative 
factors outlined below, as supported by key quantitative metrics. 
Applicants must determine and identify service outcomes to quantify the 
anticipated benefits of the project (or underlying project for PE/NEPA) 
proposed in an application.
5.2.1.1 Transportation Benefits
    Each application will be assessed based on its demonstration of the 
potential of the proposed project or underlying project to achieve 
transportation benefits in a cost-effective manner. Factors to be 
considered in assigning a rating include the contribution the proposed 
project would make to:
     Supporting the development of intercity high-speed rail 
service;
     Generating improvements to existing high-speed and 
intercity passenger rail service, as reflected by estimated increases 
in ridership (as measured in passenger-miles), increases in operational 
reliability (as measured in reductions in delays), reductions in trip 
times, additional service frequencies to meet anticipated or existing 
demand, and other related factors;
     Generating cross-modal benefits, including anticipated 
favorable impacts on air or highway traffic congestion, capacity, or 
safety, and cost avoidance or deferral of planned investments in 
aviation and highway systems;
     Creating an integrated high-speed and intercity passenger 
rail network, including integration with existing intercity passenger 
rail services, allowance for and support of future network expansion, 
and promotion of technical interoperability and standardization 
(including standardizing operations, equipment, and signaling);
     Encouragement of intermodal connectivity and integration 
through provision of direct, efficient transfers among intercity 
transportation and local transit networks at train stations, including 
connections at airports, bus terminals, subway stations, ferry ports, 
and other modes of transportation;
     Enhancing intercity travel options;
     Ensuring a state of good repair of key intercity passenger 
rail assets;
     Promoting standardized rolling stock, signaling, 
communications, and power equipment;
     Improved freight or commuter rail operations, in relation 
to proportional cost-sharing (including donated property) by those 
other benefiting rail users;
     Equitable financial participation in the project's 
financing, including, but not limited to, consideration of donated 
property interests or services; financial contributions by freight and 
commuter rail carriers commensurate with the benefit expected to their 
operations; and financial commitments from host railroads, non-Federal 
governmental entities, nongovernmental entities, and others;
     Encouragement of the implementation of positive train 
control (PTC) technologies (with the understanding that 49 U.S.C. 20147 
requires all Class I railroads and entities that provide regularly 
scheduled intercity or commuter rail passenger services to fully 
institute interoperable PTC systems by December 31, 2015); and
     Incorporating private investment in the financing of 
capital projects or service operations.
5.2.1.2 Other Public Benefits
    Each application will be assessed based on its demonstration of the 
potential of the proposed project or underlying project to achieve 
other public benefits in a cost-effective manner. Factors to be 
considered in assigning a rating will include the contribution the 
proposed project (or underlying project for PE/NEPA) would make to:
     Environmental quality and energy efficiency and reduction 
in dependence on foreign oil, including use of renewable energy 
sources, energy savings from traffic diversions from other modes, 
employment of green building and manufacturing methods, reductions in 
key emissions types, and the purchase and use of environmentally 
sensitive, fuel-efficient, and cost-effective passenger rail equipment;
     Promoting interconnected livable communities, including 
complementing local or state efforts to concentrate higher-density, 
mixed-use, development in areas proximate to multi-modal transportation 
options (including intercity passenger rail stations);
     Improving historic transportation facilities; and
     Creating jobs and stimulating the economy. Although this 
solicitation is not funded by the American Recovery and Reinvestment 
Act of 2009 (Public Law 111-5), these goals remain a top priority of 
this Administration. Therefore, Individual Project

[[Page 38374]]

applications will be evaluated on the extent to which the project is 
expected to quickly create and preserve jobs and stimulate rapid 
increases in economic activity, particularly jobs and activity that 
benefit economically distressed areas, as defined by section 301 of the 
Public Works and Economic Development Act of 1965, as amended (42 
U.S.C. 3161) (``Economically Distressed Areas'').
5.2.2 Project Delivery Approach
    Each application will be assessed to determine the risk associated 
with the project's delivery within budget, on time, and as designed. 
Evaluation against this criterion will consider the factors outlined 
below, which take into account the thoroughness and quality of the 
supporting documentation submitted with the application. For 
applications to complete PE/NEPA documentation, the following factors 
will be applied to the proposed PE/NEPA development activities rather 
than to the underlying project. Factors to be considered in assigning a 
rating will include:
     The applicant's financial, legal, and technical capacity 
to implement the project, including whether the application depends 
upon receipt of any waiver(s) of Federal railroad safety regulations 
that have not been obtained;
     The applicant's experience in administering similar grants 
and projects, including a demonstrated ability to deliver on prior FRA 
financial assistance programs;
     The soundness and thoroughness of the cost methodologies, 
assumptions, and estimates for the proposed project;
     The reasonableness of the schedule for project 
implementation;
     The thoroughness and quality of project management 
documentation;
     The timing and amount of the project's future noncommitted 
investments;
     The overall completeness and quality of the application, 
including the comprehensiveness of its supporting documentation;
     The readiness of the project to be commenced; and
     The timeliness of project completion and the realization 
of the project's anticipated benefits.
    The following factors are applicable only to applications for 
funding for FD/Construction activities:
     The adequacy of any completed engineering work to assess 
and manage/mitigate the proposed project's engineering and 
constructability risks;
     The sufficiency of system safety and security planning; 
and
     The project's progress, at the time of application, 
towards compliance with environmental review requirements under NEPA 
and related statutes.
5.2.3 Sustainability of Benefits
    Applications will be evaluated against this criterion to assess the 
likelihood of realizing the proposed project's benefits. Factors to be 
considered in assigning a rating will include:
     The quality of financial planning documentation that 
demonstrates the financial viability of the HSIPR service that will 
benefit from the project;
     The availability of any required operating financial 
support, preferably from dedicated funding sources for the benefiting 
intercity passenger rail service(s);
     The quality and adequacy of project identification and 
planning;
     The reasonableness of estimates for user and non-user 
benefits for the project;
     The comprehensiveness and sufficiency, at the time of 
application, of agreements with key partners (including the railroad 
operating the intercity passenger rail service and infrastructure-
owning railroads) that will be involved in the operation of the 
benefiting intercity passenger rail service, including the commitment 
of any affected host-rail carrier to ensure the realization of the 
anticipated benefits, preferably through a commitment by the affected 
host-rail carrier(s) to an enforceable on-time performance of passenger 
trains of 80 percent or greater;
     The favorability of the comparison between the level of 
anticipated benefits and the amount of Federal funding requested; and
     The applicant's contribution of a cost share greater than 
the required minimum of 20 percent.

5.3 Selection Criteria

    The FRA Administrator will use the criteria below to ensure that 
the projects selected for funding will advance key priorities of the 
development of intercity and high-speed passenger rail and contribute 
positively to the success and sustainability of the HSIPR program.
5.3.1 Fulfillment of DOT Strategic Goals (as outlined in the U.S. DOT 
Strategic Plan, 2010-2015)
     Improving transportation safety.
     Maintaining transportation infrastructure in a state of 
good repair.
     Promoting economic competitiveness.
     Fostering livable communities.
     Advancing environmentally sustainable transportation 
policies.
5.3.2 Region/Location
     Ensuring appropriate level of regional balance across the 
country.
     Ensuring promotion of livable communities in urban and 
rural locations.
     Ensuring consistency with national transportation and rail 
network objectives.
     Ensuring integration with other rail services and 
transportation modes.
5.3.3 Innovation/Resource Development
     Pursuing new technology and innovation where the public 
return on investment is favorable, while ensuring delivery of near-term 
transportation, public and economic recovery benefits.
     Advancing the state of the art in modeling techniques for 
assessing potential intercity passenger rail costs and benefits.
     Promoting domestic manufacturing, supply and industrial 
development, including U.S.-based manufacturing and supply industries.
     Developing professional railroad engineering, operating, 
planning and management capacity needed for sustainable high-speed 
intercity passenger rail development.
5.3.4 Partnerships/Participation
     Where corridors span multiple States, emphasizing those 
that have organized multi-State partnerships with joint planning and 
prioritization of investments.
     Employing creative approaches to ensure workforce 
diversity and use of disadvantaged and minority business enterprises.
     Engaging local communities and a variety of other 
stakeholder groups in the project, where applicable.
5.3.5 Prior Federal Funding and State Investments
     Assessing how a proposed project would complement previous 
construction or planning grants made under the HSIPR or related 
programs.
     Assessing how the proposed project would complement 
previous State investments in high-speed intercity passenger rail.
     Assessing the applicant's track record in sustainable 
funding and project delivery.

Section 6: Award Administration Information

6.1 Award Notices

    Applications selected for funding will be announced after the 
application review period. FRA will contact applicants with successful 
applications

[[Page 38375]]

after announcement with information and instructions about the award 
process. Notification of a selected application is not an authorization 
to begin proposed project activities.

6.2 Administrative and National Policy Requirements

    The provisions of this section apply to grant recipients of the 
HSIPR program.
6.2.1 Contracting Information
    A grant recipient's procurement of goods and services must comply 
with the Procurement Standards requirements set forth at 49 CFR 18.36 
or 49 CFR 19.40 through 19.48, whichever is applicable depending on the 
type of grantee (part 18 covers State and local governments and part 19 
covers non-profit and for-profit entities), and with applicable 
supplementary U.S. DOT or FRA directives or regulations.
6.2.2 Compliance with Federal Civil Rights Laws and Regulations
    The grant recipient must comply with all civil rights laws and 
regulations, in accordance with applicable Federal directives, except 
to the extent that FRA determines otherwise in writing. These include, 
but are not limited to, the following: (a) Title VI of the Civil Rights 
Act of 1964 (Pub. L. 88-352) (as implemented by 49 CFR part 21), which 
prohibits discrimination on the basis of race, color or national 
origin; (b) Title IX of the Education Amendments of 1972, as amended 
(20 U.S.C. 1681-1683, and 1685-1686), which prohibits discrimination on 
the basis of sex, (c) Section 504 of the Rehabilitation Act of 1973, as 
amended (29 U.S.C. 794), which prohibits discrimination on the basis of 
handicaps; (d) the Age Discrimination Act of 1975, as amended (42 
U.S.C. 1601-1607), which prohibits discrimination on the basis of age; 
(e) the Drug Abuse Office and Treatment Act of 1972 (Pub. L. 92-255), 
as amended, relating to nondiscrimination on the basis of drug abuse; 
(f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, 
Treatment and Rehabilitation Act of 1970 (Pub. L. 91-616), as amended, 
relating to nondiscrimination on the basis of alcohol abuse or 
alcoholism; (g) Sections 523 and 527 of the Public Health Service Act 
of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as amended, relating to 
confidentiality of alcohol and drug abuse patient records; (h) Title 
VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.), as 
amended, relating to nondiscrimination in the sale, rental, or 
financing of housing, (i) 49 U.S.C. 306, which prohibits discrimination 
on the basis of race, color, national origin, or sex in railroad 
financial assistance programs; (j) any other nondiscrimination 
provisions in the specific statute(s) under which application for 
Federal assistance was made; and (k) the requirements of any other 
nondiscrimination statute(s) which may apply to the grant recipient. 
Grant recipients must comply with all regulations, guidelines, and 
standards adopted under the above statutes. The grant recipient is also 
required to submit information, as required, to the FRA Office of Civil 
Rights concerning its compliance with these laws and implementing 
regulations and its activities implementing a grant award.
6.2.3 Disadvantaged Business Enterprises (DBE)
    FRA encourages its grant recipients to utilize small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals (as that term is defined for other DOT 
operating administrations at 49 CFR part 26) in carrying out projects 
funded under the HSIPR program, although FRA grant recipients are not 
required to do so. The DOT DBE regulation (49 CFR part 26) applies only 
to certain categories of Federal highway, Federal transit, and airport 
funds. FRA is not covered under the DOT DBE regulations. The 
procurement standards applicable to grant recipients require grant 
recipients and subgrantees to take all necessary affirmative steps to 
assure that minority firms, women's business enterprises, and labor 
surplus area firms are used when possible (see 49 CFR 18.36(e) and 
19.44(b)). The grant recipient shall submit information, as required, 
to the FRA Office of Civil Rights concerning its activities with 
respect to DBEs in implementing a grant award.
6.2.4 Assurances and Certifications
    Upon acceptance of the grant by FRA, all certifications and 
assurances provided by the grant recipient through the application 
process are incorporated in and become part of the grant agreement. 
Applicable forms include SF 424(A)/(B), SF 424(C)/(D), and FRA's 
Assurances and Certification form. The OMB Standard Forms can be 
accessed at http://www.forms.gov. The FRA Assurances and Certifications 
Document is available at http://www.fra.dot.gov/downloads/admin/
assurancesandcertifications.pdf.
6.2.5 Debarment and Suspension; and Drug-Free Workplace
    Grant recipients must obtain certifications on debarment and 
suspension for all third party contractors and subgrantees and comply 
with all DOT regulations, ``Nonprocurement Suspension and Debarment'' 
(2 CFR part 1200), and ``Governmentwide Requirements for Drug-Free 
Workplace (Grants)'' (49 CFR part 32).
6.2.6 Safety Oversight
    Grant recipients must comply with any Federal regulations, laws, 
policy, and other guidance that FRA or DOT may issue pertaining to 
safety oversight in general and in the performance of any grant award 
in particular. FRA has in place a comprehensive system of railroad 
safety oversight (see 49 CFR part 209 et seq.) that is applicable to 
railroad operations generally.
6.2.7 Americans with Disabilities Act (ADA)
    Grant recipients must agree to use funds provided under the grant 
agreement in a manner consistent with the requirements of Title II of 
the Americans with Disabilities Act (ADA) of 1990, as amended; Section 
504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794); and 
both statutes' implementing regulations at 49 CFR parts 27, 37, and 38. 
DOT (through its delegate FRA) has responsibility to offer technical 
assistance for the provisions of the ADA about which it issues 
regulations. 42 U.S.C. 12206(c)(1) reads: ``Each Federal agency that 
has responsibility under paragraph (2) for implementing this chapter 
may render technical assistance to individuals and institutions that 
have rights or duties under the respective subchapters of this chapter 
for which such agency has responsibility.'' Grant recipients are 
strongly encouraged to seek FRA's technical assistance with regard to 
the accessible features of passenger rail systems, to include 
accessibility at stations and on railcars. FRA believes such technical 
assistance is essential where interpretation of DOT's regulatory 
requirements is necessary and/or before the creation of any new rail 
system.
6.2.8 Environmental Protection
    All facilities that will be used to perform work under an award 
shall not be so used unless the facilities are designed and equipped to 
limit water and air pollution in accordance with all applicable local, 
State, and Federal standards.
    Grant recipients will conduct work under an award and will require 
that work that is conducted as a result of an award be in compliance 
with the following provisions, as modified from time to time: Section 
114 of the Clean

[[Page 38376]]

Air Act, 42 U.S.C. 7414, and Section 308 of the Federal Water Pollution 
Control Act, 33 U.S.C. 1318, and all regulations issued thereunder. 
Through the grant agreement, grant recipients will certify that no 
facilities that will be used to perform work under an award are listed 
on the List of Violating Facilities maintained by the Environmental 
Protection Agency (EPA). Grant recipients will be required to notify 
the Administrator as soon as it or any contractor or subcontractor 
receives any communication from the EPA indicating that any facility 
which will be used to perform work pursuant to an award is under 
consideration to be listed on the EPA's List of Violating Facilities; 
provided, however, that the grant recipient's duty of notification 
shall extend only to those communications of which it is aware, or 
should reasonably have been aware. Grant recipients will need to 
include or cause to be included in each contract or subcontract entered 
into, which contract or subcontract exceeds $50,000.00 in connection 
with work performed pursuant to an award, the criteria and requirements 
of this section and an affirmative covenant requiring such contractor 
or subcontractor to immediately inform the grant recipient upon the 
receipt of a communication from the EPA concerning the matters set 
forth herein.
6.2.9 National Environmental Policy Act (NEPA)
    The following is a description of FRA's standard grant provisions 
on NEPA compliance.
    Generally, grant recipients may not expend any of the funds 
provided in an award on construction or other activities that represent 
an irretrievable commitment of resources to a particular course of 
action affecting the environment until after all environmental and 
historic preservation analyses required by the National Environmental 
Policy Act (42 U.S.C. 4332) (NEPA), the National Historic Preservation 
Act (16 U.S.C. 470(f)) (NHPA), and related laws and regulations have 
been completed and FRA has provided the grant recipient with a written 
notice authorizing them to proceed.
    In instances where NEPA approval has not been secured at the time 
of grant award, grant recipients are required to assist FRA in its 
compliance with the provisions of NEPA, the Council on Environmental 
Quality's regulations implementing NEPA (40 CFR part 1500 et seq.), 
FRA's ``Procedures for Considering Environmental Impacts'' (45 FR 
40854, June 16, 1980, as revised May 26, 1999, 64 FR 28545), Section 
106 of the NHPA, and related environmental and historic preservation 
statutes and regulations. As a condition of receiving financial 
assistance under an award, grant recipients may be required to conduct 
certain environmental analyses and to prepare and submit to FRA draft 
documents required under NEPA, NHPA, and related statutes and 
regulations (including draft environmental assessments and proposed 
draft and final environmental impact statements).
    No publicly-owned land from a park, recreational area, or wildlife 
or waterfowl refuge of national, State, or local significance as 
determined by the Federal, State, or local officials having 
jurisdiction thereof, or any land from an historic site of national, 
State, or local significance as so determined by such officials shall 
be used by grant recipients without the prior written concurrence of 
FRA. Grant recipients shall assist FRA in complying with these 
requirements of 49 U.S.C. 303(c).
6.2.10 Environmental Justice
    The grant recipient will be required to agree to facilitate 
compliance with the policies of Executive Order No. 12898, ``Federal 
Actions to Address Environmental Justice in Minority Populations and 
Low-Income Populations,'' 42 U.S.C. 4321 note, except to the extent 
that FRA determines otherwise in writing.
6.2.11 Operating and Access Agreements
    Grant recipients will be required to reach a written agreement, 
approved by FRA, with each of the railroads or other entity on whose 
property the project will be located. Among other things, such 
railroad/owner agreements shall specify terms and conditions regarding 
the following issues: responsibility for project design and 
implementation, project property ownership, maintenance 
responsibilities, and disposition responsibilities, and the owning 
entity's commitment to achieve, to the extent it has control, the 
anticipated project benefits. If an agreement between the grant 
recipient and the owner that substantially addresses the above-
referenced issues is already in place as of the date of execution of 
the grant agreement, the grant recipient will be required to submit it 
to FRA for FRA's review and determination of adequacy. However, if 
either no agreement is in place as of the date of execution of this 
Agreement, or if an existing agreement has been determined by FRA to be 
inadequate, the grant recipient shall, prior to the grant recipient's 
execution of an agreement with the owner, submit the final draft of 
such an agreement to FRA for FRA's review and approval. A finding by 
FRA that the required approved railroad/owner agreement(s) are in place 
is a prerequisite for the obligation of funding for construction-
related activities.
6.2.12 Real Property and Equipment Management, Discontinuance of 
Service, and Disposition Requirements
    The grant recipient will be required to ensure the maintenance of 
project property to the level of utility (including applicable FRA 
track safety standards) that existed when the project improvements were 
placed in service for a period of a minimum of 20 years from the date 
such project property was placed in service. In the event that all 
intercity passenger rail service making use of the project property is 
discontinued during the 20-year period, the grant recipient will be 
required to continue to ensure the maintenance of the project property, 
as set forth above, for a period of one year to allow for the possible 
reintroduction of intercity passenger rail service. In the event the 
grant recipient should fail to ensure the maintenance of project 
property, as set forth above, for a period of time in excess of six 
months, the grant recipient will be required to refund to FRA a pro-
rata share of the Federal contribution, based upon the percentage of 
the 20-year period remaining at the time of such original default.
    The grant recipient will also be required to acknowledge that the 
purpose of the project is to benefit intercity passenger rail service. 
In the event that all intercity passenger rail service making use of 
the project property is discontinued (for any reason) at any time 
during a period of 20 years from the date such project property was 
placed in service, as set forth above, and if such intercity passenger 
rail service is not reintroduced during a one-year period following the 
date of such discontinuance, the grant recipient will be required to 
refund to FRA, no later than 18 months following the date of such 
discontinuance, a pro-rata share of the Federal contribution, based 
upon the percentage of the 20-year period remaining at the time of such 
discontinuance.
6.2.13 Freedom of Information Act (FOIA)
    As a Federal agency, FRA is subject to the Freedom of Information 
Act (FOIA) (5 U.S.C. 552), which generally provides that any person has 
a right, enforceable in court, to obtain access to Federal

[[Page 38377]]

agency records, except to the extent that such records (or portions of 
them) are protected from public disclosure by one of nine exemptions or 
by one of three special law enforcement record exclusions. Grant 
applications and related materials submitted by applicants pursuant to 
this notice of funding availability would become agency records and 
thus subject to the FOIA and to public release through individual FOIA 
requests. FRA also recognizes that certain information submitted in 
support of an application for funding in accordance with this notice 
could be exempt from public release under FOIA as a result of the 
application of one of the FOIA exemptions, most particularly Exemption 
4, which protects trade secrets and commercial or financial information 
obtained from a person that is privileged or confidential (5 U.S.C. 
552(b)(4)). In the context of this grant program, commercial or 
financial information obtained from a person could be confidential if 
disclosure is likely to cause substantial harm to the competitive 
position of the person from whom the information was obtained (see 
National Parks & Conservation Ass'n v. Morton, 498 F.2d 765, 770 (DC 
Cir. 1974)). Entities seeking exempt treatment must provide a detailed 
statement supporting and justifying their request and should follow 
FRA's existing procedures for requesting confidential treatment in the 
railroad safety context found at 49 CFR 209.11. As noted in the 
Department's FOIA implementing regulation (49 CFR part 7), the burden 
is on the entity requesting confidential treatment to identify all 
information for which exempt treatment is sought and to persuade the 
agency that the information should not be disclosed (see 49 CFR 7.17). 
The final decision as to whether the information meets the standards of 
Exemption 4 rests with FRA.
6.2.14 Security Planning and Oversight
    The grant recipient must comply with any Federal regulations, laws, 
policy, and other guidance that FRA, DOT, or the Department of Homeland 
Security may issue pertaining to security oversight in general and that 
FRA or DOT may issue regarding the performance of any grant award in 
particular. Prior to FRA issuing a cooperative agreement for an 
Individual Project, an applicant must complete a System Security Plan.

6.3 Program-Specific Grant Requirements

6.3.1 Buy America

    Grant recipients must comply with the Buy America provisions set 
forth in 49 U.S.C. 24405(a), which specifically provide that the 
Secretary of Transportation may obligate funds for a HSIPR project only 
if the steel, iron, and manufactured goods used in the project are 
produced in the United States. The Secretary (or the Secretary's 
delegate, the FRA Administrator) may waive this requirement if the 
Secretary finds that applying this requirement would be inconsistent 
with the public interest; the steel, iron, and goods produced in the 
United States are not produced in a sufficient and reasonably available 
amount or are not of a satisfactory quality; rolling stock or power 
train equipment cannot be bought and delivered in the United States 
within a reasonable time; or including domestic material will increase 
the cost of the overall project by more than 25 percent. For purposes 
of implementing these requirements, in calculating the components' 
costs, labor costs involved in final assembly shall not be included in 
the calculation. If the Secretary determines that it is necessary to 
waive the application of the Buy America requirements, the Secretary is 
required before the date on which such finding takes effect to publish 
in the Federal Register a detailed written justification as to why the 
waiver is needed; and provide notice of such finding and an opportunity 
for public comment on such finding, for a reasonable period of time, 
not to exceed 15 days. The Secretary may not make a waiver for goods 
produced in a foreign country if the Secretary, in consultation with 
the United States Trade Representative, decides that the government of 
that foreign country has an agreement with the United States Government 
under which the Secretary has waived the requirement of this 
subsection, and the government of that foreign country has violated the 
agreement by discriminating against goods to which this subsection 
applies that are produced in the United States and to which the 
agreement applies. The Buy America requirements described in this 
section shall only apply to projects for which the costs exceed 
$100,000.
6.3.2 Operators Deemed Rail Carriers
    With the exception of entities falling within the exclusions set 
forth in 49 U.S.C. 24405(e), a person that conducts rail operations 
over rail infrastructure constructed or improved with funding provided 
in whole or in part in a grant made under this program shall be 
considered a rail carrier, as defined in Section 49 U.S.C. 10102(5), 
for purposes of title 49 of the United States Code and any other 
statute that adopts the definition found in 49 U.S.C. 10102(5), 
including the Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); 
the Railway Labor Act (43 U.S.C. 151 et seq.); and the Railroad 
Unemployment Insurance Act (45 U.S.C. 351 et seq.) (see 49 U.S.C. 
24405(b)).
6.3.3 Railroad Agreements
    As a condition of receiving a grant under this program for a 
project that uses rights-of-way owned by a railroad, the grant 
recipient shall have in place a written agreement between the grant 
recipient and the railroad regarding such use and ownership, including 
any compensation for such use; assurance that service outcomes 
specified to result from the project, and for which the railroad is 
necessary for delivery, will be delivered, and a mechanism to enforce 
specified service outcomes; assurances regarding the adequacy of 
infrastructure capacity to accommodate both existing and future freight 
and passenger operations; an assurance by the railroad that collective 
bargaining agreements with the railroad's employees (including terms 
regulating the contracting of work) will remain in full force and 
effect according to their terms for work performed by the railroad on 
the railroad transportation corridor; and an assurance that the grant 
recipient complies with liability requirements consistent with 49 
U.S.C. 28103. Grant recipients that use rights-of-way owned by a 
railroad must comply with FRA guidance regarding how to establish a 
written agreement between the applicant and the railroad regarding use 
and ownership as discussed in Sections 4.2.6 and 6.2.11 (see 49 U.S.C. 
24405(c)).
6.3.4 Labor Protection
    As a condition of receiving a grant under this program for a 
project that uses rights-of-way owned by a railroad, the grant 
recipient must agree to comply with the standards of 49 U.S.C. 24312, 
as such section was in effect on September 1, 2003, with respect to the 
project in the same manner that Amtrak is required to comply with those 
standards for construction work financed under an agreement made under 
49 U.S.C. 24308(a) and the protective arrangements established under 
Section 504 of the Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 836) with respect to employees affected by actions 
taken in connection with the project to be

[[Page 38378]]

financed in whole or in part by grants under this program (see 49 
U.S.C. 24405(c)).
6.3.5 Davis-Bacon Act
    Projects funded through PRIIA that use rights-of-way owned by a 
railroad are required to comply with the Davis-Bacon Act (40 U.S.C. 
3141 et seq.) as provided for in 49 U.S.C. 24405(c)(2). The Davis-Bacon 
Act is a measure that fixes a floor under wages on Federal government 
projects and provides, in pertinent part, that the minimum wages to be 
paid for classes of workers under a contract for the construction, 
alteration, and/or repair of a Federal public building or public work 
must be based upon wage rates determined by the Secretary of Labor to 
be prevailing for corresponding classes of workers employed on projects 
of a character similar to the contract work in the civil subdivision of 
the State in which the work is to be performed.
6.3.6 Replacement of Existing Intercity Passenger Rail Service
    Grant recipients providing intercity passenger rail transportation 
that begins operations after October 16, 2008, on a project funded in 
whole or in part by grants made under this program and that replaces 
intercity passenger rail service that was provided by Amtrak, unless 
such service was provided solely by Amtrak to another entity as of such 
date, are required to enter into a series of agreements with the 
authorized bargaining agent or agents for adversely affected employees 
of the predecessor provider (see 49 U.S.C. 24405(d)).

6.4 Reporting

6.4.1 Standard Reporting Requirements
     Progress Reports--Progress reports are to be submitted 
quarterly. These reports must relate the state of completion of items 
in the statement of work to expenditures of the relevant budget 
elements. The grant recipient must furnish the quarterly progress 
report to FRA on or before the 30th calendar day of the month following 
the end of the quarter being reported. Grantees must submit reports for 
the periods: January 1-March 31, April 1-June 30, July 1-September 30, 
and October 1-December 31. Each quarterly report must set forth concise 
statements concerning activities relevant to the project and should 
include, but not be limited to, the following: (a) An account of 
significant progress (findings, events, trends, etc.) made during the 
reporting period; (b) a description of any technical and/or cost 
problem(s) encountered or anticipated that will affect completion of 
the grant within the time and fiscal constraints as set forth in the 
agreement, together with recommended solutions or corrective action 
plans (with dates) to such problems, or identification of specific 
action that is required by FRA, or a statement that no problems were 
encountered; and (c) an outline of work and activities planned for the 
next reporting period.
     Quarterly Federal Financial Report (SF-425)--Grantees must 
submit a quarterly Federal financial report on or before the thirtieth 
(30th) calendar day of the month following the end of the quarter being 
reported (e.g., for quarter ending March 31, the SF-425 is due no later 
than April 30). A report must be submitted for every quarter of the 
period of performance, including partial calendar quarters, as well as 
for periods where no grant activity occurs. Grantees must use SF-425, 
Federal Financial Report, in accordance with the instructions 
accompanying the form, to report all transactions, including Federal 
cash, Federal expenditures and unobligated balance, recipient share, 
and program income.
     Interim Report(s)--If required, interim reports will be 
due at intervals specified in the statement of work and must be 
submitted electronically in the GrantSolutions system.
     Final Report(s)--Within 90 days of the project completion 
date or termination by FRA, grantees must submit a Summary Project 
Report, detailing the results and benefits of the grantee's improvement 
efforts, as well as a final Federal Financial Report (SF-425).
6.4.2 Audit Requirements
    Grant recipients that expend $500,000 or more of Federal funds 
during their fiscal year are required to submit an organization-wide 
financial and compliance audit report. The audit must be performed in 
accordance with U.S. General Accountability Office, Government Auditing 
Standards, located at http://www.gao.gov/govaud/ybk01.htm, and OMB 
Circular A-133, Audits of States, Local Governments, and Non-Profit 
Organizations, located at http://www.whitehouse.gov/omb/circulars/a133/
a133.html. Currently, audit reports must be submitted to the Federal 
Audit Clearinghouse no later than nine months after the end of the 
recipient's fiscal year. In addition, FRA and the Comptroller General 
of the United States must have access to any books, documents, and 
records of grant recipients for audit and examination purposes. The 
grant recipient will also give FRA or the Comptroller, through any 
authorized representative, access to and the right to examine all 
records, books, papers or documents related to the grant. Grant 
recipients must require that subgrantees comply with the audit 
requirements set forth in OMB Circular A-133. Grant recipients are 
responsible for ensuring that sub-recipient audit reports are received 
and for resolving any audit findings.
6.4.3 Monitoring Requirements
    Grant recipients will be monitored periodically by FRA to ensure 
that the project goals, objectives, performance requirements, 
timelines, milestones, budgets, and other related program criteria are 
being met. FRA will conduct monitoring activities through a combination 
of office-based reviews and onsite monitoring visits. Monitoring will 
involve the review and analysis of the financial, programmatic, and 
administrative issues relative to each program and will identify areas 
where technical assistance and other support may be needed. The 
recipient is responsible for monitoring award activities, including 
sub-awards and subgrantees, to provide reasonable assurance that the 
award is being administered in compliance with Federal requirements. 
Financial monitoring responsibilities include the accounting of 
recipients and expenditures, cash management, maintaining of adequate 
financial records, and refunding expenditures disallowed by audits.
6.4.4 Closeout Process
    Project closeout occurs when all required project work and all 
administrative procedures described in 49 CFR part 18, or 49 CFR part 
19, as applicable, have been completed, and when FRA notifies the grant 
recipient and forwards the final Federal assistance payment, or when 
FRA acknowledges the grant recipient's remittance of the proper refund. 
Project closeout should not invalidate any continuing obligations 
imposed on the grantee by an award or by FRA's final notification or 
acknowledgment. Within 90 days of the Project completion date or 
termination by FRA, grantees agree to submit a final Federal Financial 
Report (SF-425), a certification or summary of project expenses, a 
final report, and third party audit reports, as applicable.

Section 7: Agency Contact

    For further information regarding this notice and the HSIPR 
program, please contact the FRA HSIPR Program Manager via e-mail at 
HSIPR@dot.gov, or by mail: U.S. Department of Transportation, Federal 
Railroad

[[Page 38379]]

Administration, MS-20, 1200 New Jersey Avenue, SE., Washington, DC 
20590 Att'n: HSIPR Program.

Appendix 1: Definition of High-Speed and Intercity Passenger Rail

    ``Intercity rail passenger transportation'' is defined at 49 
U.S.C. 24102(4) as ``rail passenger transportation except commuter 
rail passenger transportation.'' An intercity passenger rail service 
consists of a group of one or more scheduled trains (roundtrips) 
that provide intercity passenger rail transportation between bona 
fide travel markets (not constrained by State or jurisdictional 
boundaries), generally with similar quality and level-of-service 
specifications, within a common (but not necessarily exclusive or 
identical) set of identifiable geographic markets.
    Similarly, ``commuter rail passenger transportation'' is defined 
at 49 U.S.C. 24102(3) as ``short-haul rail passenger transportation 
in metropolitan and suburban areas usually having reduced fare, 
multiple ride, and commuter tickets and morning and evening peak 
period operations.'' In common use, the general definition of ``rail 
passenger transportation'' excludes types of local or regional rail 
transit, such as light rail, streetcars, and heavy rail. Similarly, 
both intercity passenger rail transportation and commuter rail 
passenger transportation exclude single-purpose scenic or tourist 
railroad operations.
    The since-terminated Interstate Commerce Commission (ICC) 
established six features to aid in classifying a service as 
``commuter'' rather than ``intercity'' rail passenger transportation 
\1\:
---------------------------------------------------------------------------

    \1\ Penn Central Transportation Company Discontinuance or Change 
in Service of 22 Trains between Boston, Mass, and Providence R.I., 
February 10, 1971, I.C.C. 338, 318-333.
---------------------------------------------------------------------------

     The passenger service is primarily being used by 
patrons traveling on a regular basis either within a metropolitan 
area or between a metropolitan area and its suburbs;
     The service is usually characterized by operation 
performed at morning and peak periods of travel;
     The service usually honors commutation or multiple-ride 
tickets at a fare reduced below the ordinary coach fare and carries 
the majority of its patrons on such a reduced fare basis;
     The service makes several stops at short intervals 
either within a zone or along the entire route;
     The equipment used may consist of little more than 
ordinary coaches; and
     The service should not extend more than 100 miles at 
the most, except in rare instances; although service over shorter 
distances may not be commuter or short haul within the meaning of 
this exclusion.
    FTA further refined the definition of commuter rail in the 
glossary for its National Transit Database (NTD) \2\ Reporting 
Manual. In particular, FTA refined the ICC's third ``feature'' by 
specifying that ``predominantly commuter [rail passenger] service 
means that for any given trip segment (i.e., distance between any 
two stations), more than 50 percent of the average daily ridership 
travels on the train at least three times a week.''
---------------------------------------------------------------------------

    \2\ In additional to serving as a reference database, the NTD 
captures data that serve as the basis for apportioning and 
allocating funding to eligible grantees under FTA's formula grant 
programs.
---------------------------------------------------------------------------

    In judging the eligibility of an application under this 
solicitation, FRA will determine whether the rail passenger service 
that is primarily intended to benefit from the proposal constitutes 
``intercity passenger rail transportation'' under the statutory 
definition and ICC and FTA interpretations. FRA may also take into 
account whether the primary intended benefiting service has been or 
is currently the direct or intended beneficiary of funding provided 
by another Federal agency (e.g., FTA) for the purpose of improving 
commuter rail passenger transportation and whether the service in 
question is or will be operated by or on behalf of a local, 
regional, or State entity whose primary rail transportation mission 
is the provision of commuter or transit service.
    ``High-speed rail'' is an intercity passenger rail service that 
``is reasonably expected to reach speeds of at least 110 miles per 
hour'' (49 U.S.C. 26106(b)(4)).

Appendix 2: Additional Information on Stages of Project Development

    The information contained below in Appendices 2.1 Planning for 
Individual Projects, 2.3 Preliminary Engineering, and 2.4 Final 
Design represent suggested content and approaches for completing the 
documentation required for each stage of project development. While 
FRA does not require applicants/grantees to follow the specific 
document structures and content listed below, they are provided to 
assist applicants/grantees in fulfilling the objectives necessary to 
successfully complete each stage of project development. However, 
the information contained in Appendix 2.2 Environmental 
Documentation must be adhered to in order to demonstrate compliance 
with NEPA.

Appendix 2.1 Planning for Individual Projects

    Although Individual Projects under the HSIPR program will 
generally be relatively limited in scale, scope, cost, and 
operational impact on HSIPR service, applications for funding such 
projects must nonetheless be supported by a rational planning 
process that establishes the purpose and need of the proposed 
project, and makes the case for investing in the proposed solution.
    At a minimum, planning for Individual Projects should address 
the following topics:
    1. Purpose and Need;
    2. Rationale;
    3. Identification and Analysis of Alternatives;
    4. Conceptual Engineering; and
    5. Public Benefits Analysis.
    In addition to these basic components, an Individual Project 
should also be supported by supplemental planning documentation 
appropriate to the specific characteristics of the project and the 
benefits it is intended to generate. Examples of specific planning 
documentation that sufficiently supports projects with certain 
characteristics are listed below. Note that Individual Projects may 
exhibit several of these characteristics, and should therefore be 
supported by the planning documentation specified, based on all of 
the project's characteristics:
     Projects Affecting HSIPR Operations: Individual 
Projects that will affect operations, such as trip-time changes, 
reliability improvements, frequency changes, or station stopping 
pattern changes, should be supported by operations modeling. Such 
modeling demonstrates the precise nature and feasibility of 
operational changes that are anticipated to result from the proposed 
project.
     Projects to Increase HSIPR Ridership: Individual 
Projects intended to significantly increase ridership should be 
supported by both a demand and revenue forecast and a station and 
access analysis. Such analyses demonstrate the validity of the 
anticipated ridership increases, and shows that equipment, station, 
and access capacity are sufficient to accommodate the anticipated 
increase.
     Station Projects: Individual Projects involving 
improvements to existing stations, or development of new stations, 
should be supported by a station and access analysis. Such analysis 
demonstrates the appropriateness of the proposed station projects, 
and the effects of additional station stops at newly developed 
stations on operations.
     Equipment Procurements: Individual Projects involving 
procurement of equipment should be supported by operations modeling 
and a stations and access analysis. Such analysis demonstrates that 
the operating and physical characteristics of new equipment and the 
proposed equipment are compatible with the existing operating plan 
for the service (e.g., in terms of acceleration rates, yard storage 
capacity, clearance envelopes, etc.), the design of the stations 
served (e.g., in terms of platform lengths, platform heights, etc.), 
and consistent with the requirements of the Americans with 
Disabilities Act.

Appendix 2.2 Environmental Documentation

    The environmental review process required by NEPA applies to all 
Federal grant programs. NEPA requires Federal agencies to integrate 
environmental values into their decision-making processes by 
considering the environmental impacts of their proposed actions and 
reasonable alternatives to those actions. NEPA also mandates that 
all reasonable alternatives be considered, and to that end, an 
alternatives analysis is typically conducted during the 
environmental review process. Agencies must also make information on 
these impacts and alternatives publicly available before decisions 
are made and actions occur.

Appendix 2.2.1 Project Environmental Documentation (``Project NEPA'')

    As part of the PE/NEPA phase of project development, a project 
NEPA document and other required environmental documentation to 
satisfy other Federal laws are prepared for the specific design 
alternative identified through Preliminary Engineering and other 
reasonable alternatives (integrated with the design alternatives 
analysis performed as part

[[Page 38380]]

of Preliminary Engineering). Additionally, the design and 
engineering outputs of Preliminary Engineering will serve as inputs 
into the evaluation of environmental impacts just as identified 
impacts are inputs for design and engineering. Therefore, it is 
essential that Preliminary Engineering and project NEPA be closely 
coordinated and performed in tandem with one another.

Appendix 2.2.2 NEPA Roles and Responsibilities

    FRA, as the Federal sponsoring agency, has primary 
responsibility for assuring compliance with NEPA and related 
environmental laws for projects funded under the HSIPR program. 
While NEPA compliance is a Federal agency responsibility and the 
ultimate decisions remain with the Federal sponsoring agency, FRA 
encourages applicants to take a leading role in preparing 
environmental documentation, consistent with existing law and 
regulations.
    In the varied and flexible HSIPR program no single approach to 
NEPA compliance will work for every proposal. Therefore, FRA will 
work closely with applicants to assist in the timely and effective 
completion of the NEPA process in the manner most pertinent to the 
applicant's proposal.

Appendix 2.2.3 FRA NEPA Compliance

    All NEPA documents must be supported by environmental and 
historic preservation analyses required by the National 
Environmental Policy Act (42 U.S.C. 4332) (NEPA), the National 
Historic Preservation Act (16 U.S.C. 470(f)) (NHPA), and related 
laws and regulations. Such analyses must be conducted in accordance 
with the Council on Environmental Quality's regulations implementing 
NEPA (40 CFR part 1500 et seq.), FRA's ``Procedures for Considering 
Environmental Impacts'' (45 FR 40854, June 16, 1980), as revised May 
26, 1999, 64 FR 28545), Section 106 of the NHPA, and related 
environmental and historic preservation statutes and regulations, 
and other related laws and regulations such as the Clean Water Act 
and the Endangered Species Act.

Appendix 2.3 Preliminary Engineering

    Preliminary Engineering (PE) builds on the conceptual 
engineering and other documentation developed during the planning 
process in order to evaluate alternatives and to identify a specific 
design alternative for implementing a project, and demonstrate its 
feasibility for implementation. Within the context of the HSIPR 
program, FRA relies on the documentation developed through PE in 
order to make a decision as to whether to obligate funding for the 
construction and implementation of a project. As such, HSIPR program 
applicants seeking to progress a project to Final Design and 
Construction should ensure that the PE documentation for the project 
is adequate to support such a decision.
    In the process of demonstrating the feasibility of a particular 
design alternative, PE involves the refinement of the cost estimate 
and schedule for the project and the reduction of uncertainties (as 
represented by reduced cost estimate and schedule contingencies). 
Furthermore, as part of PE, the analyses of the financial, 
operational, and public benefit impacts of the project that were 
developed during the planning phase are refined, so as to address 
and reduce uncertainties and risks associated with the project after 
it is placed in service.
    The following documentation would demonstrate the completion of 
PE for a project:
    1. Project Description
    a. A detailed description of the design alternative identified 
through the PE process, including other design alternatives 
considered.
    b. A description of construction staging or phasing (such as 
sequential phasing of interlocking reconfigurations) identified as 
necessary to implement the identified design alternative.
    c. A presentation of the work necessary to implement the 
identified design alternative in a detailed Work Breakdown Structure 
(WBS) format. The WBS for the project would serve as the master 
format for organizing and presenting the various elements of the 
project through the subsequent phases of development, and presenting 
cost estimates and project schedules.
    d. An assessment of the physical condition and location of the 
railroad in the project area (up to two to three miles beyond the 
project construction limits depending upon effect and 
interrelationship of the project with train operations), including: 
bridges (rail and highway); track including the number and location 
of previously existing railroad tracks on a roadbed; buildings 
(stations and maintenance facilities, etc.); signal systems and 
interlocked detectors, switches, derails, and snow melters; utility 
systems on, over, adjacent to or under the rail line and agreements 
concerning them; electrification systems, if any; description of 
highway crossing warning systems (if any) and daily traffic counts 
at public and private at grade highway crossings; existing and 
proposed railroad operations and routes of freight, commuter and 
intercity trains with train daily numbers of trains by type; a 
safety and security management plan; and STRACNET routes and/or 
moves for commercial high and wide loads.
    2. Project Cost Estimate
    a. Project cost estimates in both the project's WBS and the 
HSIPR Standard Cost Category format.
    b. Documentation of the cost estimate in its original format, 
illustrating exactly how the cost estimates were calculated.
    c. A detailed description of the methodology and assumptions 
used in developing the estimates, including values and sources of 
unit costs for labor, materials, and equipment; overhead costs or 
other additives; allocated and unallocated contingencies; credit 
value of salvaged materials; and cost escalation factors. Unless 
explicitly and adequately justified, total contingencies for cost 
estimates developed during PE should be no greater than 20%.
    3. Project Schedule
    a. A schedule for the implementation of the project organized in 
the format of Work Breakdown Structure and consistent the phases of 
projects development.
    b. The schedule should illustrate the duration of each activity 
within the WBS, the earliest date at which each activity could 
commence, and the dependencies between the various activities.
    4. Design Documentation
    a. A project locator map showing the both the location of the 
project area within the context of the State in which and the 
corridor on which it is located.
    b. A project area map showing the exact project location and the 
immediate surrounding area (up to two to three miles beyond the 
project construction limits consistent with the Project 
Description).
    c. Detailed PE drawings:
     For projects involving improvements to track, track 
structures, signals, or other linear railroad assets, full two-
dimensional depictions of the project (i.e., not track charts or 
schematics) showing existing and proposed conditions at a scale of 
one inch = 100 to 500 feet, depending on location (built-up vs. 
undeveloped areas). PE drawings should incorporate scale maps or 
scale aerial photography of existing conditions with design plan 
drawings overlaid on the maps/photography, and should show: (i) 
Existing railroad right-of-way limits along with the railroad 
ownership; (ii) proposed track changes including track removals and 
track installations showing track centers, turnout sizes, curve and 
spiral data, etc.; (iii) vertical profiles and grades of existing 
and proposed construction; (iv) public and private at grade highway 
crossings; and (v) passenger stations, building(s), platforms, 
parking, access to the primary highway system in the area, and 
public transit services and facilities.
     For projects involving improvements to maintenance 
facilities and yards, PE drawings should show the track and facility 
layout, specialized equipment (if any), and office and employee 
welfare facilities.
     For projects involving equipment procurement or 
rehabilitation, PE drawings should include plan, side elevation, and 
end elevation drawings, clearly showing interior configuration 
(including seating configurations, restroom configuration, doorway 
sizes), clearance envelope, and floor heights.
     For projects involving improvements to stations/
buildings, PE drawings should include all renderings and plan, 
elevation, detail drawings necessary to illustrate the scope of the 
project.
    i. Schematic track charts for all projects involving 
improvements to track, track structures, signals, or other linear 
railroad assets, refined from those developed during the planning 
process.
    ii. Route and aspect charts for all projects involving signal 
system improvements, signal system installation, or track 
reconfigurations in signaled territory.
    5. Design and Procurement Compliance
    a. Demonstration that the proposed project design is compliant 
with all applicable FRA safety regulations and AREMA design 
standards.
    b. For projects involving the procurement of rolling stock, 
demonstration that the proposed equipment procurement will be 
consistent with Section 305 of PRIIA, which

[[Page 38381]]

calls for the establishment of a standardized next-generation rail 
corridor equipment pool. Compliance with Section 305 of PRIIA will 
assist in creating the economies of scale necessary to achieve the 
Administration's goal, as outlined in FRA's Strategic Plan, of 
developing a sustainable railroad equipment manufacturing base in 
the United States.
    c. For projects involving improvements to railroad signaling/
control systems, the application should demonstrate that the 
proposed improvements are consistent with a comprehensive plan for 
complying with the requirements for positive train control (PTC) 
implementation under Section 104 of the Rail Safety Improvement Act 
of 2008 (``RSIA,'' Division A of Pub. L. 110-432, October 16, 2008, 
codified at 49 U.S.C. 20147) and with FRA's final rule on Positive 
Train Control System published in the Federal Register on January 
15, 2010 (75 FR 2598).
    6. Refinement of Planning Documentation
    Many elements of project planning developed during the Planning 
phase of project development would be expanded and updated in later 
phases of the project development process, as the project itself 
becomes more refined. Much of this refinement is completed as part 
of Preliminary Engineering, particularly as it relates to the 
following project planning elements:
    a. Identification of Alternatives (particularly as it relates to 
design alternatives)
    b. Demand and Revenue Forecasts
    c. Operations Modeling
    d. Station and Access Analysis
    e. Operating and Maintenance Costs and Capital Replacement 
Forecast
    f. Public Benefits Analysis
    To demonstrate completion of PE, revised versions of planning 
documentation that cover these topics (to the extent the topics are 
applicable to the project), including descriptions of how project 
decisions and refinements made as part of PE have resulted in 
changes key outputs of the planning process (such as demand 
forecasts, forecasts of operational benefits, operations and 
maintenance cost forecasts, and estimates of public benefits) should 
be completed.

Appendix 2.4 Final Design

    During the Final Design phase, any remaining uncertainties or 
risks associated with minor changes to design scope are fully 
addressed, and the products of Preliminary Engineering are refined 
as additional detailed design work is completed. The objective of 
the Final Design phase is to progress the engineering of the project 
beyond what was required to demonstrate the feasibility of the 
design of the project to the point where the engineering 
documentation is sufficient to support the procurement of 
construction services to implement the project. Final Design 
includes the preparation of final design plans, final construction 
cost estimates, and a refined and revised project schedule, and may 
also encompass early construction-related activities, such as right-
of-way acquisition and utility relocation.
    Final Design documentation will generally incorporate design 
changes and refinements implemented as part of the FD process and 
should reflect a level of detail sufficient to support the 
procurement of construction services and the effective control of 
the project throughout its construction. As such, major differences 
between the PE and FD documentation include:
     Project Description: Upon completion of FD, the Work 
Breakdown Structure of the project should reflect a level of detail 
sufficient to support the effective control of the project's 
construction, particularly as it relates to the project's scope and 
specifications.
     Project Cost Estimate: Upon completion of FD, cost 
estimates should be at a level of detail sufficient to support 
construction services procurement and to allow for the tracking and 
comparison during the construction phase of actual costs against 
estimated costs.
     [cir] Unless explicitly and adequately justified, total 
contingencies for cost estimates developed during Final Design 
should be no greater than 10%.
     Project Schedule: Upon completion of FD, the project 
schedule should reflect a level of detail sufficient to support the 
effective control of the project's timely construction.
     Final Design Documentation: Final Design drawings 
should be at a level of detail sufficient to support the preparation 
of construction and shop drawings and to ensure the effective 
control of the project's scope and configuration.
     [cir] As part of Final Design, detailed specification should be 
developed or adopted for the project, in order to ensure the 
quality, suitability, and durability of all construction.

Appendix 3: Additional Information on Applicant Budgets

    The information contained in this appendix is intended to assist 
applicants with developing the SOW budget and OMB Standard Forms 
424A: Budget Information--Non-Construction Programs and 424C: Budget 
Information--Construction Programs, as described in Section 4.2.

Appendix 3.1 Non-Construction Project Budgets

    Applicants must present a detailed budget for the proposed 
project that includes both Federal funds and matching funds. Items 
of cost included in the budget must be reasonable, allocable, and 
necessary for the project. At a minimum, the budget should separate 
total cost of the project into the following categories and provide 
a basis of computation for each cost:
     Personnel: List each position by title and name of 
employee, if available, and show the annual salary rate and the 
percentage of time to be devoted to the project. Compensation paid 
for employees engaged in grant activities must be consistent with 
that paid for similar work within the applicant organization.
     Fringe Benefits: Fringe benefits should be based on 
actual known costs or an established formula. Fringe benefits are 
for personnel listed in the ``Personnel'' budget category and only 
for the percentage of time devoted to the project.
     Travel: Itemize travel expenses of project personnel by 
purpose (training, interviews, and meetings). Show the basis of 
computation (e.g., X people to Y-day training at $A airfare, $B 
lodging, $C subsistence).
     Equipment: List non-expendable items that are to be 
purchased. Nonexpendable equipment is tangible property having a 
useful life of more than two years and an acquisition cost of $5,000 
or more per unit. (Note: Organization's own capitalization policy 
may be used for items costing less than $5,000.) Expendable items 
should be included either in the ``Supplies'' category or in the 
``Other'' category. Applicants should analyze the cost benefits of 
purchasing versus leasing equipment, especially high cost items and 
those subject to rapid technical advances. Rented or leased 
equipment should be listed in the ``Contractual'' category. Explain 
how the equipment is necessary for the success of the project. 
Attach a narrative describing the procurement method to be used.
     Supplies: List items by type (office supplies, postage, 
training materials, copying paper, and expendable equipment items 
costing less than $5,000) and show the basis for computation. (Note: 
Organization's own capitalization policy may be used for items 
costing less than $5,000). Generally, supplies include any materials 
that are expendable or consumed during the course of the project.
     Consultants/Contracts: Indicate whether applicant's 
written procurement policy (see 49 CFR 18.36) or the Federal 
Acquisition Regulations (FAR) are followed. Consultant Fees: For 
each consultant enter the name, if known, service to be provided, 
hourly or daily fee (8-hour day), and the estimated time on the 
project. Consultant Expenses: List all expenses to be paid from the 
grant to the individual consultants in addition to their fees 
(travel, meals, and lodging). Contracts: Provide a description of 
the product or service to be procured by contract and an estimate of 
the cost. Applicants are encouraged to promote free and open 
competition in awarding contracts. A separate justification must be 
provided for sole source contracts in excess of $100,000.
     Other: List items (rent, reproduction, telephone, 
janitorial or security services) by major type and the basis of the 
computation. For example, provide the square footage and the cost 
per square foot for rent, or provide the monthly rental cost and how 
many months to rent.
     Indirect Costs: Indirect costs are allowed only if the 
applicant has a Federally-approved indirect cost rate. A copy of the 
rate approval (a fully executed, negotiated agreement) must be 
attached. If the applicant does not have an approved rate, one can 
be requested by contacting the applicant's cognizant Federal agency, 
which will review all documentation and approve a rate for the 
applicant organization.

Appendix 3.2 Construction Project Budgets

    Applicants must present a detailed budget for the proposed 
project that includes both Federal funds and matching funds. Items 
of cost included in the budget must be reasonable, allocable, and 
necessary for the project. At a minimum, the budget should

[[Page 38382]]

separate total cost of the project into the following categories and 
provide a basis of computation for each cost:
     Administrative and Legal Expenses: List the estimated 
amounts needed to cover administrative expenses. Do not include 
costs which are related to the normal functions of government. 
Allowable legal costs are generally only those associated with the 
purchases of land which is allowable for Federal participation and 
certain services in support of construction of the project. This may 
include:
     [cir] Hours/Rate and total cost of local government staff
     [cir] Hours/Rate and total cost of outside counsel fees
     [cir] Hours/Rate and total cost of consultants
     Land, structures, rights-of-way, appraisals, and 
related items: List the estimate site and right(s)-of-way 
acquisition costs (this includes purchase, lease, and/or easements). 
If possible, include details of number of acres, acre cost, square-
footage, and square footage cost.
     Relocation expenses and payments: List the estimated 
costs relation to relocation advisory assistance, replacement of 
housing, relocation payments to displaces persons and businesses, 
etc. This may include:
     [cir] The gross salaries and wages of employees for the grantee 
who will be directly engaged in performing demolition or removal of 
structures from developed land
     Architectural and engineering fees: List the estimated 
basic engineering fees related to construction (this includes start-
up services and preparation of project performance work plan).
     Other architectural and engineering fees: List the 
estimated engineering costs, such as surveys, tests, soil borings, 
etc.
     Project inspection fees: List the estimated engineering 
inspection costs. This may include:
     [cir] Rate of project inspector
     [cir] Construction monitoring
     [cir] Audit or construction programs
     Site Work: List the estimated costs of site preparation 
and restoration which are not included in the basic construction 
contract. This may include:
     [cir] Clearing
     [cir] Erosion control
     [cir] Reseeding
     Demolition and removal: List the estimated costs 
related to demolition activities.
     Construction: List the estimated cost of the 
construction contract. This may include costs for:
     [cir] Labor costs, e.g., associated with site preparation and 
installation of grade crossings, highway warning signs, etc.
     [cir] Equipment rental/purchase, e.g., an excavator or 
bulldozer
     [cir] Materials, e.g., Rail anchors, retaining walls, etc.
     Equipment: List the estimated cost of office, shop, 
laboratory, safety equipment, etc. to be used at the facility, if 
such costs are not included in the construction contract.
     Miscellaneous: List the estimated miscellaneous costs.
     Contingencies: List the estimated contingency costs.

Appendix 4: List of Acronyms and Abbreviated References

------------------------------------------------------------------------
           Acronym                              Meaning
------------------------------------------------------------------------
ACF..........................  Administration for Children and Families.
ADA..........................  Americans with Disabilities Act.
Administrator................  Administrator of the Federal Railroad
                                Administration.
CAST.........................  Custom Applications Support and Training
                                Unit (GrantSolutions).
CCR..........................  Central Contractor Registration database.
CE...........................  Categorical Exclusion--a class of action
                                for the NEPA process.
DBE..........................  Disadvantaged Business Enterprise.
Department...................  The United States Department of
                                Transportation.
DOT..........................  The United States Department of
                                Transportation.
DUNS.........................  Data Universal Number System.
EA...........................  Environmental Assessment--a NEPA
                                document.
EIS..........................  Environmental Impact Statement-- the most
                                extensive type of NEPA document.
FD...........................  Final Design.
FHWA.........................  Federal Highway Administration.
FONSI........................  Finding of No Significant Impact--a
                                possible decision concluding the NEPA
                                process.
FRA..........................  Federal Railroad Administration--an
                                operating administration of the U.S.
                                Department of Transportation.
FTA..........................  Federal Transit Administration.
FY...........................  Fiscal Year.
FY 2009 DOT Appropriations     Transportation, Housing and Urban
 Act.                           Development, and Related Agencies
                                Appropriations Act, 2009--Title I of
                                Division I of Public Law 111-8, March
                                11, 2009.
FY 2010 DOT Appropriations     Transportation, Housing and Urban
 Act.                           Development, and Related Agencies
                                Appropriations Act, 2010--Title I of
                                Division A of Public Law 111-117,
                                December 16, 2009.
GMLoB........................  Grants Management Line of Business.
GS...........................  GrantSolutions grants management system.
ICC..........................  Interstate Commerce Commission.
IPD..........................  Innovation Program Delivery.
LOI..........................  Letter of Intent.
mph..........................  Miles Per Hour.
NEPA.........................  National Environmental Policy Act.
NTD..........................  National Transit Database.
OMB..........................  Office of Management and Budget.
PE...........................  Preliminary Engineering.
PRIIA........................  Passenger Rail Investment and Improvement
                                Act of 2008 (Division B of Pub. L. 110-
                                432, October 16, 2008).
PTC..........................  Positive Train Control.
ROD..........................  Record of Decision--a possible decision
                                concluding of the NEPA process.
RSIA.........................  Rail Safety Improvement Act of 2008
                                (Division A of Pub. L. 110-432, October
                                16, 2008).
Secretary....................  Secretary of the United States Department
                                of Transportation.
State DOT....................  State Department of Transportation.
------------------------------------------------------------------------



[[Page 38383]]

    Issued in Washington, DC, on June 25, 2010.
Joseph C. Szabo,
Administrator.
[FR Doc. 2010-15993 Filed 6-28-10; 4:15 pm]
BILLING CODE 4910-06-P

