
[Federal Register: September 10, 2010 (Volume 75, Number 175)]
[Notices]               
[Page 55394-55401]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10se10-113]                         

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

 
Program for Capital Grants for Rail Line Relocation and 
Improvement Projects

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

ACTION: Notice of funding availability.

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SUMMARY: Under this Notice, the FRA encourages eligible applicants to 
submit applications for grants to fund eligible rail line relocation 
and improvement projects. This Notice of Funds Availability (NOFA) does 
not apply to the 27 projects specifically enumerated in the 
Consolidated Appropriations Act, 2010 (Pub. L. 111-117 (December 16, 
2009)) or the 23 projects specifically enumerated in the Omnibus 
Appropriations Act, 2009 (Pub. L. 111-8 (March 11, 2009)).

DATES: Applications for funding under this solicitation are due no 
later than 5 p.m. EDT, October 29, 2010 and must

[[Page 55395]]

be submitted via Grants.gov. See Section 3 for additional information 
regarding the application process. FRA reserves the right to modify 
this deadline.

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

Table of Contents

1. Financial Assistance Description
2. Eligibility Information
3. Application and Submission Information
4. Application Review Information
5. Award Administration Information
Appendix 1: Administrative and National Policy Requirements
Appendix 2: Additional Information on Award Administrations and 
Grant Conditions
Appendix 3: Additional Information on Applicant Budgets

Section 1: Financial Assistance Description

1.1 Authority

    The authority for the Program can be found in 49 U.S.C. 20154 and 
at 49 CFR Part 262.

1.2 Program Description and Legislative History

    To assist State and local governments, Congress in the Safe, 
Accountable, Flexible, Efficient Transportation Act: A Legacy for Users 
(SAFETEA-LU) (Public Law 109-59, August 10, 2005) authorized the 
Program for Capital Grants for Rail Line Relocation and Improvement 
Projects (Program). Section 9002 of SAFETEA-LU amended chapter 201 of 
Title 49 of the United States Code by adding Sec.  20154, which 
authorized, but did not appropriate, $350,000,000 per year for each of 
the fiscal years 2006 through 2009 for the purpose of funding the 
Program (Catalog of Federal Domestic Assistance (CFDA) Program Number 
20.320). SAFETEA-LU also directed FRA to promulgate a regulation that 
establishes the Program. That final rule was published on July 11, 2008 
and can be found at 73 FR 39875 (49 CFR Part 262).
    In Fiscal Year (FY) 2009, Congress appropriated $25,000,000 and 
directed that $17,100,000 be awarded to 23 specific projects, with 
$7,900,000 left over for discretionary grants. Subsequently, in FY 
2010, Congress appropriated $34,532,000 for the Program, and directed 
that $24,519,200 go to 27 specifically enumerated projects. The 
remaining $10,012,800 will be combined with the $589,700 remaining from 
the FY 2008 competition, $2,000,000 that was awarded to one of the FY 
2008 projects but which the project sponsors ultimately turned down, 
and the $7,900,000 in FY 2009 discretionary funding. As a result, FRA 
has a total of $20,502,500 available for the FY 2010 competition. This 
NOFA does not apply to the 23 specific projects identified in FY 2009 
or the 27 specific projects identified in FY 2010.

1.3 Funding Approach

    The Omnibus Appropriations Act, 2009, provided $7,900,000 for 
discretionary grants. Likewise, the Transportation, Housing and Urban 
Development, and Related Agencies Appropriations Act, 2010, provided 
$10,012,800. As discussed above, FRA is combining these amounts with 
$589,700 remaining from the FY 2008 competition and $2,000,000 that was 
awarded under the FY 2008 competition to a project that ultimately was 
declined by the project sponsors, and will award up to $20,502,500 in 
discretionary grants. The funding provided under these grants will be 
made available to grantees on a reimbursement basis. As in FY 2008, FRA 
expects that the available funding will support multiple project 
applications. FRA may choose to award a grant or grants within the 
available funds in any amount.
    An approved applicant, or other non-Federal party, must pay at 
least 10 percent of the costs of any project funded by a grant awarded 
through the Program. Applicants should indicate whether funding made 
available through grants provided under this Program, together with 
committed funding from other sources, including the required match, 
will be sufficient to complete the overall project or a discrete 
portion of the project. FRA expects to award grants to multiple 
eligible participants.

Section 2: Eligibility Information

    Applications for rail line relocation and improvement projects will 
be required to meet minimum requirements related to applicant 
eligibility, project eligibility, and the fulfillment of other 
prerequisites. To the extent that an application's substance exceeds 
the minimum eligibility requirements described below, such 
qualifications will be considered in evaluating the merits of an 
application.

2.1 Eligible Applicant Types

    Only States, political subdivisions of States, and the District of 
Columbia are eligible for grants under the Program (see 49 CFR 262.3 
and 262.7). FRA considers political subdivisions of States to be 
entities such as cities, counties, townships, boroughs, and villages. 
If an applicant is not one of these traditional political subdivisions, 
then the applicant must prove to FRA's satisfaction that, under the 
applicable State law, the applicant is a political subdivision of the 
State.
    In making this determination, FRA will look primarily to the intent 
of the State legislature when creating the entity. Thus, FRA will 
likely find persuasive enabling legislation establishing the entity if 
the legislation states clearly that the entity is a political 
subdivision of the State. Similarly, FRA will also consider State 
appellate court opinions where the court finds that the entity is a 
political subdivision of the State. Opinions from the State Attorney 
General also may be used to bolster the above authorities. If nothing 
conclusively states that the entity is a political subdivision of the 
State, FRA will review all submitted information and attempt to 
determine legislative intent. If applicant eligibility is a potential 
issue, the applicant is encouraged to contact FRA before submitting an 
application and FRA will make an eligibility determination.

2.2 Cost Sharing and Matching

    An approved applicant, or other non-Federal party, must pay at 
least 10 percent of the costs of any project funded by a grant awarded 
through the Program. Applicants must specify the match amount in their 
application.

2.3 Eligible Projects

    In accordance with SAFETEA-LU, eligible projects are construction 
projects undertaken for the improvement of the route or structure of a 
rail line that either: (1) Are carried out for the purpose of 
mitigating the adverse effects of rail traffic on safety, motor vehicle 
traffic flow, community quality of life, or economic development; or 
(2) involve a lateral or vertical relocation of any portion of the rail 
line (see 49 CFR 262.7).
    FRA wants to emphasize that in order for the project to be 
eligible, the rail line must be the element that is moved or improved. 
Grade separation projects that involve raising or lowering the road, 
for example are not eligible. Similarly, quiet zone and stand-alone 
grade crossing improvement projects are not eligible. Likewise, station 
improvement projects where there is little or no related track work are 
not eligible. As explained in the Final Rule, if station or grade 
crossing improvements are part of

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an otherwise eligible rail line relocation or improvement project, then 
the costs associated with the grade crossing or station work may be 
eligible (see 73 FR 39879). The majority of the work must involve 
relocating or improving a rail line. Finally, if an applicant is 
undertaking a larger project that would be eligible, but is applying to 
FRA for funding for a small portion that is not eligible (e.g., an 
applicant is undertaking a large rail improvement involving upgrading 
grade crossing equipment and applies to FRA for funds to cover the 
grade crossing improvements), the fact that the larger project would be 
eligible does not mean that FRA can fund the smaller, ineligible 
project. If project eligibility is a potential issue, applicants are 
encouraged to contact FRA before submitting an application and FRA will 
make an eligibility determination.
    Pre-construction activities, such as preliminary engineering and 
design work and project-level environmental compliance, are considered 
part of the overall construction project (see 49 CFR 262.3(6)). Because 
section 9002 of SAFETEA-LU directs that only construction costs are 
eligible costs, activities such as planning studies and feasibility 
analyses are not eligible costs.

Section 3: Application and Submission Information

3.1 Applying Online

    Applications for these funds must be submitted through Grants.gov 
by 5 p.m. EDT on October 29, 2010. Applicants are strongly encouraged 
to apply early to ensure that all materials are received before this 
deadline.
    To apply for funding through Grants.gov, applicants must be 
properly registered. Complete instructions on how to register and 
submit an application can be found at Grants.gov.
    Registering with Grants.gov is a one-time process; however, it can 
take up to several weeks for first-time registrants to receive 
confirmation and a user password. FRA recommends that applicants start 
the registration process as early as possible to prevent delays that 
may preclude submitting an application package by the application 
deadline. Applications will not be accepted after the due date. Delayed 
registration is not an acceptable justification for an application 
extension.
    In order to apply for funding under this announcement and to apply 
for funding through Grants.gov, all applicants are required to complete 
the following:
    1. Acquire a DUNS Number. A Data Universal Numbering System (DUNS) 
number is required for Grants.gov registration. The Office of 
Management and Budget requires that all businesses and nonprofit 
applicants for Federal funds include a DUNS number in their 
applications for a new award or renewal of an existing award. A DUNS 
number is a unique nine-digit sequence 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 sub recipients. The DUNS number 
will be used throughout the grant life cycle. Obtaining a DUNS number 
is a free, one-time activity. Applicants may obtain a DUNS number by 
calling 1-866-705-5711 or by applying online at http://www.dnb.com/us.
    2. Acquire or Renew Registration with the Central Contractor 
Registration (CCR) Database. All applicants for Federal financial 
assistance maintain current registrations in the Central Contractor 
Registration (CCR) database. An applicant must be registered in the CCR 
to successfully register in Grants.gov. The CCR database is the 
repository for standard information about Federal financial assistance 
applicants, recipients, and sub recipients. Organizations that have 
previously submitted applications via Grants.gov are already registered 
with CCR, as it is a requirement for Grants.gov registration. Please 
note, however, that applicants must update or renew their CCR 
registration at least once per year to maintain an active status, so it 
is critical to check registration status well in advance of the 
application deadline. Information about CCR registration procedures can 
be accessed at http://www.ccr.gov.
    3. Acquire an Authorized Organization Representative (AOR) and a 
Grants.gov Username and Password. Applicants must complete an AOR 
profile on Grants.gov and create a username and password. Applicants 
must use the organization's DUNS number to complete this step. 
Additional information about the registration process is available at  
http://www.grants.gov/applicants/get_registered.jsp.
    4. Acquire Authorization for your AOR from the E-Business Point of 
Contact (E-Biz POC). The Applicant's E-Biz POC must log in to 
Grants.gov to confirm a representative as an AOR. Please note that 
there can be more than one AOR at an organization.
    5. Search for the Funding Opportunity on Grants.gov. The Catalog of 
Federal Domestic Assistance (CFDA) number for this opportunity is 
20.320. It is titled ``Rail Line Relocation and Improvement.''
    6. Submit an Application Addressing All of the Requirements 
Outlined in this Funding Availability Announcement. Within 24 to 48 
hours after submitting an electronic application, an applicant should 
receive an e-mail validation message from Grants.gov. The validation 
message will explain whether the application has been received and 
validated or rejected, with an explanation. Applicants are urged to 
submit an application at least 72 hours prior to the due date of the 
application to allow time to receive the validation message and to 
correct any problems that may have caused a rejection notification.
    If you experience difficulties at any point during this process, 
please call the Grants.gov Customer Center Hotline at 1-800-518-4726, 
24 hours a day, 7 days a week (closed on Federal holidays).

    Note:  Please use generally accepted formats such as .pdf, .doc, 
.docx, .xls, .xlsx and .ppt, when uploading attachments. While 
applicants may imbed picture files, such as .jpg, .gif, and .bmp, in 
document files, please do not submit attachments in these formats. 
Additionally, the following formats will not be accepted: .com, 
.bat, .exe, .vbs, .cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora, 
.sys, and .zip.

3.2 Address To Request/Submit Application Package

    To request a hard copy of the application package, please contact 
John Winkle, Office of Railroad Policy and Development (RPD-11), 
Federal Railroad Administration, 1200 New Jersey Avenue, SE., Room W38-
311, Washington, DC 20590. Phone: (202) 493-6360; Fax: (202) 493-6333; 
E-mail: John.Winkle@DOT.gov.
    Any additional required attachments that an applicant is unable to 
submit via Grants.gov, such as oversized engineering drawings, may be 
submitted to the above address. Applicants should submit one original 
and two (2) copies of the material. 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.

3.3 Content of Application

3.3.1 On-Line Application
    The on-line application must be completed and submitted using 
Grants.gov after Central Contractor

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Registry (CCR) registration is confirmed. The on-line application 
includes the following required forms and submissions:
    Construction Projects:
     Standard Form 424, Application for Federal Assistance
     Standard Form 424C, Budget Information--Construction
     Standard Form 424D, Assurances--Construction Programs
     FRA's Additional Assurance and Certifications, available 
at http://www.fra.dot.gov/downloads/admin/
assurancesandcertifications.pdf
     Project Narrative/Statement of Work (described in 3.4.1 
below)
     Detailed Budget (described in 3.4.2 below)
     NEPA Documentation, as applicable
    Non-Construction Projects:
     Standard Form 424, Application for Federal Assistance
     Standard Form 424A, Budget Information--Non-Construction 
Programs
     Standard Form 424B, Assurances--Non-Construction Programs
     FRA's Additional Assurance and Certifications, available 
at http://www.fra.dot.gov/downloads/admin/
assurancesandcertifications.pdf
     Project Narrative/Statement of Work (described in 3.4.1 
below)
     Detailed Budget (described in 3.4.2 below)
    Any additional required attachments (for application materials that 
an applicant is unable to submit via Grants.gov), such as oversized 
engineering drawings, applicants may submit an original and two (2) 
copies to the Federal Railroad Administration, Attention: John Winkle, 
Office of Railroad Policy and Development (RPD-11), Room W38-311, 1200 
New Jersey Avenue, SE., Washington, DC 20590.

3.4 Detailed Application Requirements

3.4.1 Project Narrative/Statement of Work
    The following points describe the minimum content which will be 
required in the project narrative/statement of work elements of grant 
applications. These requirements may be satisfied through a narrative 
statement submitted by the applicant, supported by spreadsheet 
documents, tables, drawings, and other materials, as appropriate. FRA 
recommends that applicants read this section carefully and submit all 
required information. If an application does not address each of these 
requirements to FRA's satisfaction, the application will be considered 
incomplete and will not be scored. Applicants should send an e-mail 
message to paxrail@dot.gov confirming that an application was 
submitted. Each grant application must:
    1. Designate a point of contact for the applicant and provide his 
or her name and contact information, including phone number, mailing 
address and e-mail address. The point of contact must be an employee of 
an eligible applicant (i.e., a State employee, or an employee of a 
political subdivision of a State, or an employee of the District of 
Columbia).
    2. Include a detailed project description with an explanation of 
how the project is an eligible project.
    3. Include a thorough discussion of how the project meets all of 
the selection criteria. Applicants should note that FRA evaluates 
applications based upon the selection criteria. If an application does 
not sufficiently address the selection criteria, FRA will have little 
or no basis on which to evaluate the application; thus, it will likely 
not be a competitive application. The selection criteria are described 
in detail in Section 4.1, below.
    4. Explain how the applicant is an eligible applicant. For a full 
discussion of how an applicant can meet this burden, see Eligible 
Participants, above.
    5. Provide a detailed scope of work for the proposed project and 
include the anticipated project schedule. Describe the proposed 
project's physical location (as applicable), and include any drawings, 
plans, or schematics that have been prepared relating to the proposed 
project. If the funding from the Program is only going to be a 
component of the overall funding for the project, describe the complete 
project and specify which component will involve FRA funding. 
Applications should include feasibility determinations and cost 
estimates, if completed. FRA will more favorably consider applications 
that include these types of studies, as they demonstrate that an 
applicant has a definite understanding of the scope and cost of the 
project. In submitting applications, applicants should be mindful that 
the Program, as created by Congress and, as further described in the 
Final Rule, is focused upon construction projects (see 49 CFR 
Sec. Sec.  262.3 and 262.7). If FRA approves a project for funding, 
allowable costs (i.e., costs that can qualify for reimbursement from 
Federal funds or as part of the required non-Federal match) will have 
to directly support project construction. Section 262.3 identifies the 
types of activities that are associated with ``construction'' and thus 
are potentially allowable. In terms of project development, FRA will 
consider as potentially allowable any costs associated with the 
preparation of architectural and engineering plans, project cost 
estimates, and project-specific construction-related costs (including 
costs associated with securing environmental clearance as described in 
Sec.  262.15 of the Final Rule). As discussed above under ``Eligible 
Projects,'' FRA will not consider as potentially allowable any costs 
associated with planning studies and similar analyses. For approved 
projects, construction-related expenditures may qualify as allowable, 
even if they are incurred in advance of the execution of the grant 
agreement between the applicant and FRA, provided they otherwise 
satisfy eligibility standards.
    6. Describe proposed project implementation and project management 
arrangements. Include descriptions of expected arrangements for project 
contracting, contract oversight, change-order management, risk 
management, and conformance to Federal requirements for project 
progress reporting.
    7. Describe the anticipated public and private benefits associated 
with the proposed project and the applicant's assessment of how those 
benefits outweigh the costs of the proposed project (see 49 CFR 
262.11(b)). Identify any financial contributions or commitments the 
applicant has secured from private entities that are expected to 
benefit from the project. Although FRA will weigh all of the selection 
criteria, potential applicants should be aware that FRA is seeking the 
maximum public benefit from these limited funds. Moreover, in directing 
FRA to establish the Program, Congress instructed FRA to consider the 
feasibility of seeking financial contributions or commitments from 
private entities involved with projects in proportion to the expected 
benefits that would accrue to those entities. As FRA explained in the 
preamble to the Final Rule, however, FRA will apply all the selection 
criteria and will not disfavor one application over another because of 
the amount requested.
    8. Describe anticipated environmental or historic preservation 
impacts associated with the proposed project, any environmental or 
historic preservation analyses that have been prepared, and progress 
toward completing any environmental documentation or clearance required 
for the proposed project under the National Environmental Policy Act 
(NEPA), the National Historic Preservation Act (NHPA), section 4(f) of 
the DOT Act, the Clean Water Act, or other applicable Federal or State 
laws. Refer to 49 CFR Sec.  262.15 for further guidance.

[[Page 55398]]

    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 NEPA, the NHPA (16 
U.S.C. 470(f)), 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.
    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).
    Applicants are advised to consult with the FRA's Office of Railroad 
Policy and Development before initiating any NEPA, NHPA or Section 4(f) 
environmental or historic preservation reviews.
    9. Format: Excluding spreadsheets, drawings, and tables, the 
Project Narrative/Statement of Work for grant applications may not 
exceed 35 pages in length. FRA will not consider any application that 
includes a narrative that exceeds 35 pages. With the exclusion of 
oversized engineering drawings (which may be submitted in hard copy to 
the FRA at the address above), all application materials should be 
submitted as attachments through Grants.Gov. Spreadsheets consisting of 
budget or financial information should be submitted via Grants.Gov as 
Microsoft Excel (or compatible) documents.
3.4.2 Detailed Budget
    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.
    For a construction project, at a minimum, the budget should 
separate total cost of the project into the following categories, if 
applicable: (1) Administrative and legal expenses; (2) Land, 
structures, rights-of-way, and appraisals; (3) Relocation expenses and 
payments; (4) Architectural and engineering fees; (5) Project 
inspection fees; (6) Site work; (7) Demolition and removal; (8) 
Construction labor, supervision, and management; (9) Materials, by type 
(e.g. ties, rail, signals, switches); (10) Miscellaneous; and (11) 
Contingencies.
    For a non-construction project, at a minimum, the budget should 
separate total cost of the project into the following categories, if 
applicable: (1) Personnel; (2) Fringe Benefits; (3) Travel; (4) 
Equipment; (5) Supplies; (6) Consultants/Contracts; (7) Other; and (8) 
Indirect Costs.
    See Appendix 3 of this solicitation for more information on project 
budgets.
3.4.3 Submission Dates and Times
    Complete applications must be submitted to Grants.gov (as specified 
in Section 3.1) no later than 5 p.m. EDT, October 29, 2010. Grants.gov 
will send the applicant an automated e-mail confirming receipt of the 
application. Supporting documentation that cannot be submitted 
electronically may be sent by courier service with a waybill receipt 
stamped no later than 5 p.m. EDT, October 29, 2010. FRA will e-mail the 
applicant to confirm receipt of supporting documentation sent by 
courier service.
    Subject to demonstration of unanticipated extenuating 
circumstances, FRA may, but is not obligated to, consider application 
materials submitted after the deadlines prescribed above.
    FRA reserves the right to contact applicants with any concerns, 
questions, or comments related to applications.
3.4.4 Intergovernmental Review
    Executive Order 12372 requires applicants from State and local 
units of government or other organizations providing services within a 
State to submit a copy of the application to the State Single Point of 
Contact (SPOC), if one exists, and if this program has been selected 
for review by the State. Applicants must contact their State SPOC to 
determine if the program has been selected for State review. Executive 
Order 12372 can be referenced at http://www.fws.gov/policy/library/
rgeo12372.pdf. The names and addresses of the SPOCs are listed on OMB's 
home page available at http://www.whitehouse.gov/omb/grants/spoc.html.

Section 4: Application Review Information

4.1 Selection Criteria

    FRA will consider the following selection factors in evaluating 
applications for grants under this program (see 49 CFR 262.9):
    1. The capability of the applicant to fund the project without 
Federal grant funding;
    2. The effects of the rail line, relocated or improved as proposed, 
on motor vehicle and pedestrian traffic, safety, community quality of 
life, and area commerce;
    3. The effects of the rail line, relocated, or improved as 
proposed, on the freight rail and passenger rail operations on the 
line;
    4. Equitable treatment of the various regions of the United States;
    5. Any other factors FRA determines to be relevant in assessing the 
effectiveness and/or efficiency of the grant application, including the 
cost-effectiveness of the proposed project in terms of benefits 
achieved in relation to the funds expended. In the preamble to the 
Final Rule, FRA provided an extensive, but not exhaustive, list of 
possible data items that could be used to support a cost-effectiveness 
determination. That list can be found at 73 FR 39875.

Section 5: Award Administration Information

5.1 Award Notices

    Should FRA select a project for funding, notification of 
application approval is made through the GrantSolutions (GS) system. 
Selectees should follow the directions in the notification and log into 
GS to access the award document. The authorized grantee official should 
carefully read the award and terms/conditions documents. The grantee 
must either accept or decline the award in GS.
    The period of performance for this grant program is dependent on 
the project. However, any unobligated funds will be deobligated at the 
end of the 90 day close-out period, provided for in Appendix 2.4. 
Extensions to the period

[[Page 55399]]

of performance will be considered only through written requests to FRA 
with specific and compelling justifications why an extension is 
required.

5.2 Administrative and National Policy Requirements

    The grantee and any subgrantee shall comply with all applicable 
laws and regulations. For a non-exclusive list of regulations commonly 
applicable to FRA grants refer to Appendix 1.

5.3 General Requirements

    Grant recipients must comply with reporting requirements. All post-
award information pertaining to reporting, auditing, monitoring, and 
the close-out process is detailed in Appendix 2.

Appendix 1: Administrative and National Policy Requirements

Appendix 1.1 Standard Financial Requirements

Administrative Requirements

     49 CFR Part 18, Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments
     49 CFR Part 19, Uniform Administrative Requirements for 
Grants and Cooperative Agreements with Institutions of Higher 
Education, Hospitals, and Other Non-Profit Organizations (OMB 
Circular A-110)

Cost Principles

     2 CFR Part 225, Cost Principles for State, Local, and 
Indian Tribal Governments (OMB Circular A-87)
     2 CFR Part 220, Cost Principles for Educational 
Institutions (OMB Circular A-21)
     2 CFR Part 230, Cost Principles for Non-Profit 
Organizations (OMB A-122)
     Federal Acquisition Regulations (FAR), Part 31.2 
Contract Cost Principles and Procedures, Contracts with Commercial 
Organizations

Audit Requirements

     OMB Circular A-133, Audits of States, Local 
Governments, and Non-Profit Organizations

Appendix 1.2 Administrative and National Policy Requirements

    Grant recipients must follow all administrative and national 
policy requirements including: procurement standards, compliance 
with Federal civil rights laws and regulations, disadvantaged 
business enterprises (DBE), debarment and suspension, drug-free 
workplace, FRA's and OMB's Assurances and Certifications, Americans 
with Disabilities Act (ADA), Buy America, environmental protection, 
National Environmental Policy Act (NEPA), and environmental justice.

Appendix 1.3 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 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 guidance will become agency records, and 
thus are 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 guidance 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 
(D.C. Cir. 1974)). Entities seeking exempt treatment must provide a 
detailed statement supporting and justifying the 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.

Appendix 2: Additional Information on Award Administration and Grant 
Conditions

Appendix 2.1 Reporting Requirements

    Reporting requirements must be met throughout the life of the 
grant (refer to the program guidance and the special/general 
provisions found in the award package for a full explanation of 
these 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 the 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 the 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)--The 
Grantee must submit a quarterly Federal financial report 
electronically in the GrantSolutions system, 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. The Grantee 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 to FRA.
     Final Report(s)--Within 90 days of the Project 
completion date or termination by FRA, the Grantee must submit a 
Summary Project Report in the GrantSolutions system. This report 
should detail the results and benefits of the Grantee's improvement 
efforts.
     Reports, Presentations and Other Deliverables--Whether 
for technical examination, administrative review, or publication, 
all submittals shall be of a professional quality and suitable for 
their intended purpose. Due dates for submittals shall be based on 
the specified intervals or days from the effective date of the 
agreement.

Appendix 2.2 Audit Requirements

    Grant recipients that expend $500,000 or more of Federal funds 
during their fiscal year, combined from all sources, 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 sub-grantees 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.

[[Page 55400]]

Appendix 2.3 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 sub-grantees, 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.

Appendix 2.4 Closeout Process

    Project closeout occurs when all required project work and all 
administrative procedures described in 49 CFR section 262.19, 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 the 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.

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 3.3.1.

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 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 displaced 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.

[[Page 55401]]

     Miscellaneous: List the estimated miscellaneous costs.
     Contingencies: List the estimated contingency costs.

    Issued in Washington, DC on September 7, 2010.
Mark Yachmetz,
Associate Administrator.

[FR Doc. 2010-22652 Filed 9-9-10; 8:45 am]
BILLING CODE 4910-06-P

