Notice2024-22160
Award Management Requirements, Final Circular
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 27, 2024
Issuing agencies
Transportation DepartmentFederal Transit Administration
Abstract
The Federal Transit Administration (FTA) has made available on its website the final updated Award Management Requirements Circular (C 5010.1). The updated circular combines requirements applicable to all FTA financial assistance awards (referred to as "cross-cutting" requirements) and supersedes the previous Award Management Requirements Circular C 5010.1E. This notice responds to the comments FTA received on the proposed circular, which was published in the Federal Register on February 14, 2024.
Full Text
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[Federal Register Volume 89, Number 188 (Friday, September 27, 2024)]
[Notices]
[Pages 79336-79345]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-22160]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-FTA-2024-0003]
Award Management Requirements, Final Circular
AGENCY: Federal Transit Administration (FTA), Department of
Transportation (DOT).
ACTION: Notice of availability of final circular and response to
comments.
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SUMMARY: The Federal Transit Administration (FTA) has made available on
its website the final updated Award Management Requirements Circular (C
5010.1). The updated circular combines requirements applicable to all
FTA financial assistance awards (referred to as ``cross-cutting''
requirements) and supersedes the previous Award Management Requirements
Circular C 5010.1E. This notice responds to the comments FTA received
on the proposed circular, which was published in the Federal Register
on February 14, 2024.
DATES: The applicable date of this circular is November 1, 2024.
ADDRESSES: One may view the comments at docket number FTA-2024-0003.
For access to the docket, please visit <a href="https://www.regulations.gov">https://www.regulations.gov</a> or
the Docket Operations office located in the West Building of the United
States Department of Transportation, Room W12-140, 1200 New Jersey
Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m. Monday
through Friday.
FOR FURTHER INFORMATION CONTACT: For award management questions,
Latrina Trotman, Office of Program Management, Federal Transit
Administration, 1200 New Jersey Ave. SE, Room E46-301, Washington, DC
20590, phone: (202) 366-2328, or email, <a href="/cdn-cgi/l/email-protection#65290411170c0b044b31170a1108040b25010a114b020a13"><span class="__cf_email__" data-cfemail="4b072a3f3922252a651f39243f262a250b2f243f652c243d">[email protected]</span></a>. For
legal questions, Jerry Stenquist, Office of Chief Counsel, same
address, Room E56-314, phone: (202) 493-8020, or email,
<a href="/cdn-cgi/l/email-protection#78321d0a0a01562b0c1d16090d110b0c381c170c561f170e"><span class="__cf_email__" data-cfemail="5d17382f2f24730e2938332c28342e291d393229733a322b">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Responses to Public Comments
A. Comments for Which No Changes Were Made
B. Changes Based on Public Comments
C. Comment Requesting Technical Assistance
III. Other Updates
I. Overview
This notice announces the availability of FTA Circular C 5010.1F,
Award Management Requirements. C 5010.1F replaces C 5010.1E, with an
applicable date of November 1, 2024. This circular incorporates
provisions of Federal law enacted since the publication of C 5010.1E,
including the Infrastructure Investment and Jobs Act (Pub. L. 117-58);
the Office of Management and Budget's (OMB) and United States
Department of Transportation's (USDOT) updated Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards at 2 CFR part 200 (89 FR 30046, effective October 1, 2024) and 2
CFR part 1201, respectively; USDOT's regulation implementing the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (Uniform Act) (49 CFR part 24); and USDOT's Disadvantaged
Business Enterprise (DBE) regulation (49 CFR part 26).
The purpose of Circular 5010.1 is to summarize generally applicable
FTA administrative requirements for financial assistance awards
(colloquially referred to as ``cross-cutting requirements'') while
consolidating other pre-existing cross-cutting guidance historically
included in other FTA program circulars, including the pre-existing
``Formula Grants for Rural Areas'' (C 9040.1G), ``Enhanced Mobility of
Seniors and Individuals with Disabilities'' (C 9070.1G), ``Bus and Bus
Facilities Formula Program'' (C 5100.1), ``State of Good Repair Grants
Program'' (C 5300.1), and ``Urbanized Area Formula Program'' (C
9030.1E) circulars, reducing duplicative, redundant, and conflicting
information in separate circulars. The last three of these circulars
have been consolidated and superseded by a new circular, ``Urbanized
Areas Formula Grant Programs Guidance'' (C 9050.1A), which is being
published contemporaneously with this updated C 5010.1F. The first two
are also being updated and superseded with circulars published
contemporaneously.
Additionally, the revisions update or clarify descriptions of
policy to explain current FTA practices. The circular updates include
FTA policies regarding real property status reporting, the incidental
use of FTA-funded project property, and transfer of real property to
third parties for affordable housing. The circular updates also
increase the use of graphics, tables, and weblinks to improve clarity.
A copy of the circular is in the docket and is posted on FTA's
Circulars page (<a href="https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/circulars">https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/circulars</a>).
[[Page 79337]]
II. Responses to Public Comments
FTA published notice for the proposed C 5010.1F in the Federal
Register on February 14, 2024 (89 FR 11334), seeking public comment.
FTA received seventy-four comments from twelve unique commenters. FTA
reviewed the comments and discusses below the changes that FTA made in
the final circular based on public comments. FTA also addresses
comments for which no changes were made in the final circular. FTA
appreciates the commenters who expressed support for updates in the
circular, as well as those who provided feedback on administrative non-
substantive changes, such as recommending corrections for typographical
errors and document formatting. FTA has reviewed and made these changes
to the final circular, as necessary. In cases where a commenter found
FTA's guidance confusing or requested clarification and FTA declined to
amend the circular, the commenter should contact the FTA regional
office responsible for administering its awards for assistance.
A. Comments for Which No Changes Were Made
Comments Outside the Scope of FTA C 5010.1F
FTA declined to make changes in response to some comments because
the comments' subject matter was outside the scope of this circular.
Topics that were outside the scope of the circular include: State DOT
policies for subrecipients' completion of National Environmental Policy
Act (NEPA) requirements for non-federally funded projects and notes on
circular changes apparently intended for the commenter's internal
communication.
Cloud-Based Computing Technology
Comment: One commenter requested FTA clarify whether cloud-based
computing technology is a capital or operating expense.
FTA Response: FTA declines to make a change based on this comment.
C 5010.1F sufficiently establishes that cloud-based computing
technology is included under the definition of ``Information Technology
Systems,'' which, by extension, is included under the definition of
``Equipment.'' If cloud-based computing technology qualifies as
``Equipment,'' it may be considered a capital expense as opposed to an
operating expense.
Major Capital Project Construction Oversight
Comment: One commenter suggested FTA institute a time limit for
FTA's review of technical plans and specifications for a major capital
project so as not to delay a project from construction. The commenter
also expressed concerns that the proposed C 5010.1F does not specify
the milestones during the design of a project at which FTA may request
to review the technical plans and specifications.
FTA Response: FTA declines to make a change in response to the
comment. FTA declines to establish generally applicable design
milestones and corresponding time limits because the stages of design
at which technical plans and specifications should be reviewed, and the
duration of time it takes to review them, are better determined on a
case-by-case basis. FTA reviews the design of major capital projects at
various stages during a project's lifecycle, which is established in
consultation with project sponsors. This project-specific approach
retains flexibility and efficiency in FTA's review, benefiting both FTA
and recipients.
FTA Technical and Construction Oversight Review
Comment: One commenter asked how quickly FTA's reviews of technical
plans and specifications of a project will occur if FTA deems such a
review necessary. The commenter expressed concern that designs that may
need to be reviewed could be time sensitive. The commenter also
mentioned that there is no guidance on what ``projects'' the oversight
review requirement may concern and asked whether there are there
specific cost thresholds for projects that would trigger a review.
FTA Response: FTA declines to make a change in response to this
comment. If deemed necessary, FTA may review technical plans and
specifications of a project to ensure proper execution, consistency
with the scope of work and need, and incorporation of FTA requirements.
The duration of such a review necessarily depends on multiple factors
that are distinct to the project in question and cannot be prescribed.
For the referenced provision, there is no set cost threshold for
projects that could trigger such a review. However, all projects that
meet the definition of a ``Major Capital Project'' are subject to
design reviews at different stages during a project's lifecycle.
Incidental and Shared Use
Comment: One commenter thanked FTA for the updated definition of
``Equipment.'' The comment also requested FTA reference the definition
of ``Equipment'' in other parts of the circular related to the concept
of incidental use.
FTA Response: FTA declines to make a change in response to the
comment. The definitions section controls the use of the term
``Equipment'' throughout the circular. No additional identification of
the term is required.
Comment: One commenter asked that FTA clarify that incidental use
and shared use can apply to property other than just real property.
FTA Response: FTA declines to make a change in response to this
comment. The circular is sufficiently clear that the incidental use
provisions apply to equipment. The definition of ``Incidental Use'' is
``the limited non-transit use of project property that does not
conflict with the original authorized purpose of the project property
or the recipient's ability to maintain satisfactory continuing
control.'' The circular defines ``Project Property'' to include both
real property and personal property.
Comment: FTA's definitions of ``Incidental Use'' and ``Shared Use''
authorize certain non-transit uses of transit property. One commenter
asked FTA to modify these definitions so that uses that support or
relate to public transportation in some way would not be categorized as
non-transit uses.
FTA Response: FTA declines to make a change in response to this
comment. FTA's definitions of ``Incidental Use'' and ``Shared Use''
sufficiently identify FTA's intended treatment of property uses that
support public transportation, which provides recipients with
flexibility to use project property for both transit and non-transit
purposes. The commenter's proposed recategorization of property uses
would not create additional flexibilities and conflict with the
definition of ``Public Transportation'' at 49 U.S.C. 5302.
Comment: A commenter asked FTA to provide further guidance for
establishing the allocation of applicable costs of a shared use of
project property.
FTA Response: FTA declines to make a change in response to this
comment. The circular says the costs of shared uses are tied to the pro
rata share of the construction, acquisition, maintenance, and operating
costs that the shared use represents. The method of determining pro
rata costs will vary depending on the particular shared use. FTA
declines to be more prescriptive as to determining pro rata share
because the circular's purpose is to provide general guidance and allow
for flexibility.
[[Page 79338]]
Comment: One commenter expressed concern that FTA's incidental use
policy in Chapter IV restricts leases of FTA-assisted real property to
a one-year term.
FTA Response: FTA declines to make a change based on this comment.
The policy in the circular does not limit leases for the incidental use
of FTA-assisted real property to one year. Rather, the revision
modifies FTA policy by changing FTA's review of incidental uses from a
concurrence process to a notice process. Except in cases of utility,
ingress, and egress use, FTA now requires 30-day prior notice for
incidental uses that will: (1) encumber title to the project property,
(2) exceed a term of one year, or (3) allow for the installation of
real property fixtures onto project property by third parties.
If none of these apply to an incidental use, a 30-day notice is not
required. Nevertheless, recipients must keep a record of all incidental
uses, which may be reviewed during a compliance review or audit.
Real Property
Comment: One commenter requested that FTA add property use
restrictions to the list of items included in an appraisal report that
may affect the appraised value.
FTA Response: FTA declines to make a change in response to this
comment. 49 CFR 24.103 establishes the requirements for appraisals,
which are intended to be consistent with the Uniform Standards of
Professional Appraisal Practice (USPAP) and already require the
appraiser to consider factors like land use restrictions and
encumbrances when determining market value.
Comment: Three commenters expressed support for the circular's
exemption from FTA's concurrence on real property appraisals for major
capital projects when FTA has determined that a recipient's Real
Property Acquisition and Management Plan (RAMP) establishes that the
recipient is adequately prepared to comply with Federal requirements
when acquiring project property. One of the three commenters requested
that FTA provide additional information to guide recipients' drafting
of a RAMP and the changes to the existing circular.
FTA Response: FTA declines to make a change based on these
comments. A RAMP is required of all FTA-designated major capital
projects. FTA provides technical assistance and feedback to project
sponsors through its project management oversight contractor (PMOC)
program on the development of a project-specific RAMP document.
Appendix D of the circular includes a model outline for the development
of a RAMP document. FTA is also exploring other ways to provide
training and technical assistance to major capital project sponsors on
the RAMP development process.
Comment: One commenter opined that, by deleting the definitions of
``Global Settlement'' and ``Legal Settlement,'' FTA may have caused a
conflict with the circular's provisions for property acquisition and
relocation assistance.
Response: FTA declines to make a change based on this comment.
While the definitions for ``Global Settlement'' and ``Legal
Settlement'' were removed from the Definitions section of the proposed
circular, the circular's use of the terms are unambiguous. The circular
refers to legal settlements arrived at after filing for property
condemnation as ``administrative settlements'' for purposes of the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act (Uniform Act), because that is the term used in USDOT's
implementing regulation. 49 CFR 24.102(i). The circular states that a
``global settlement'' means the consolidation of all payments,
including acquisition and relocation assistance, into one payment.
Global settlements conflict with the purpose of the Uniform Act because
relocation assistance benefits are a reimbursement of eligible actual,
reasonable, and necessary expenses, while the payment to acquire real
property relates to the payment of just compensation and is subject to
negotiation. Uniform Act relocation assistance benefits must not be
used as consideration for a settlement of a dispute regarding property
value. Therefore, the circular's uses of ``Legal Settlement,''
``Administrative Settlement,'' and ``Global Settlement'' do not
conflict with each other or the purposes of the Uniform Act. The words
are used according to their ordinary meanings, and it is not necessary
to give them special definitions in the circular.
Comment: One comment opined that FTA's allowance of acquisition
incentives payments (AIPs) to exceed a recipient's just compensation
determination may conflict with language prohibiting global
settlements. The commenter expressed concern with the risk of the
global settlement prohibition conflicting with state law and that a
comparison of local government acquisition requirements should take
place prior to full implementation.
FTA Response: FTA declines to make a change based on this comment.
AIPs are payments for interests in real property above a recipient's
established just compensation determination applied equally project-
wide, based on pre-established criteria, if initial offers are timely
accepted. FTA has determined that the proper use of AIPs does not
conflict with the Uniform Act or the circular's restriction on global
settlements because their use is limited to compensating owners for the
value of property, and they serve to ``encourage and expedite
acquisition by agreements.'' 49 CFR 24.1(a). To avoid any conflict, FTA
will concur on AIP programs prior to their implementation, including a
review of the proposing agency's documentation that the AIP program is
permissible under state law. AIPs may not be used for relocation
assistance benefits because a pre-determined incentive for displaced
persons to relocate may potentially incentivize premature displacement
of a person or otherwise incentivize actions inconsistent with the
purpose of the Uniform Act. Recipients still may not use global
settlements, regardless of whether an AIP payment is offered or paid.
Comment: One commenter recommended that FTA restore a paragraph
that had appeared in C 5010.1E allowing for alternative real property
valuation methods in exceptional circumstances.
FTA Response: FTA declines to make a change based on this comment.
C 5010.1F retains the same provision in Chapter IV under a subsection
titled ``Valuation of Property Pending Disposal.''
Comment: One commenter asked that FTA remove leases exceeding a
one-year term and third-party fixture installation from the requirement
for recipients to provide 30-day advance notice of an incidental use.
The commenter asserted that these conditions should only be for
incidental uses that do not require FTA concurrence and should be
removed because all incidental use agreements must be terminable and
most, if not all, require FTA concurrence.
FTA Response: FTA declines to make a change based on this comment
because the updated language regarding incidental uses of real property
no longer requires concurrence as the commenter describes. Rather, the
revision modifies FTA policy by changing FTA's review of incidental
uses from a concurrence process to a notice process. Except in cases of
utility, ingress, and egress use, FTA now requires 30-day prior notice
for incidental uses that will: (1) encumber title to the project
property, (2) exceed a term of one year, or (3) allow for the
[[Page 79339]]
installation of real property fixtures onto project property by third
parties. If none of these apply to an incidental use, a 30-day notice
is not required. FTA's concurrence is not required for any incidental
use unless another provision of law or the circular applies.
Nevertheless, recipients must keep a record of all incidental uses,
which FTA may review during a compliance review or audit. Lastly, FTA
advises that recipients should include termination provisions in their
incidental use agreements, but FTA does not prescribe any particular
terms or notice periods. Recipients should use commercially reasonable
terms that ensure satisfactory continuing control over the transit use
of the property.
Project Signage
Comments: FTA received two comments on project signage. One
commenter supported FTA's encouragement of recipients to prominently
display project signage to identify projects approved and funded by
USDOT but recommended that FTA clarify that the suggestion applies to
signs pertaining to permanent projects, as opposed to signage for
wayfinding or planned service disruptions. Another commenter
recommended that FTA only apply the recommendation to projects with a
cost of greater than $200,000.
FTA Response: FTA declines to make a change based on this comment.
FTA encourages, but does not require, project signage that identifies
projects approved and funded by USDOT. FTA encourages recipients to use
their discretion in determining which projects are most appropriate for
such signage, as well as the sizes and formats of signs. C 5010.1F
permits this flexibility through the provided guidelines. The inclusion
of a specific cost or project type threshold would limit this
flexibility.
Activity Line Item (ALI) Tree
Comment: One commenter requested that FTA update and streamline its
Activity Line Item (ALI) tree, which is an inventory of scope codes and
associated ALIs for which funds may be obligated in FTA's award
management system (TrAMS), as part of the updated C 5010.1F.
FTA Response: FTA declines to make a change based on this comment.
FTA seeks to use C 5010.1F for cross-cutting guidance on award
management, not to provide administrative direction on the use of
TrAMS. However, FTA currently is working on an update to the ALI tree.
Disadvantaged Business Enterprise (DBE) Program
Comment: In response to language in Chapter II stating that FTA-
funded contracts subject to FTA's procurement rules are also subject to
USDOT's DBE regulation, one commenter requested that FTA clarify that
micro-purchases (those transactions not in excess of $10,000) are not
``contracts'' for DBE purposes. The comment further argues that 40 CFR
part 26 provides that applicable DBE regulations apply to competitive
bids and proposals as opposed to micro-purchases (which are excepted
from competition because of their small size), and otherwise applying
DBE requirements to micro-purchase procurements is burdensome.
FTA Response: FTA declines to make a change based on this comment.
The term ``contract,'' for purposes of the USDOT DBE program, is
defined in regulation at 49 CFR 26.5. There is no contract dollar value
threshold in 49 CFR part 26. An FTA Tier 1 recipient that is required
to set a DBE goal must set its goal as a percentage ``of all FTA or FAA
funds (exclusive of FTA funds to be used for the purchase of transit
vehicles) that [the recipient] will expend''. 49 CFR 26.45(e). The DBE
rule does not exclude micro-purchases. FTA has issued guidance on
reporting multiple purchases from the same vendor (see FAQ CR10 at
<a href="https://www.transit.dot.gov/frequently-asked-questions-fta-grantees-regarding-coronavirus-disease-2019-covid-19#COVID-19Civil">https://www.transit.dot.gov/frequently-asked-questions-fta-grantees-regarding-coronavirus-disease-2019-covid-19#COVID-19Civil</a>).
FTA Minimum Useful Life Policy for Rolling Stock and Ferries
Comment: A commenter urged FTA to add examples of common vehicle
makes and models used in public transit/human services transportation
to the table detailing the minimum useful life for FTA-funded rolling
stock and ferries in Chapter IV of the circular.
FTA Response: FTA declines to make a change based on this comment.
FTA does not include specific vehicle makes and models in guidance
because vehicle manufacturers, makes, and models often change.
Furthermore, this inclusion could suggest FTA's endorsement of
particular vehicle manufacturers, which is inappropriate and goes
beyond the scope of FTA's role, mission and purview.
Comment: A commenter stated that there should be a nexus between
FTA minimum useful life requirements and Altoona testing.
FTA Response: FTA declines to make a change based on this comment.
FTA's bus testing rule, 49 CFR 665.11(e), already requires that
``[b]uses shall be tested according to the service life requirements
identified in the prevailing published version of FTA Circular 5010.''
While it is unclear what further nexus the commenter is suggesting, FTA
declines to amend the circular beyond the requirements of 49 CFR part
665.
Comment: A commenter requested that FTA add minimum useful life
thresholds for bus shelters and other common transit features.
FTA Response: FTA declines to make a change based on this comment.
Useful life serves as a benchmark representing a reasonable expectation
of the duration of time for which FTA-funded assets should be used by
recipients for transit purposes. Any benefit of FTA prescribing useful
life for the many different types of bus shelters or other common
transit features would likely be outweighed by the loss of flexibility
to account for unforeseen factors and allow for innovation, as well as
the burden on FTA and recipients to follow useful life standards for
inexpensive assets. In Chapter IV, FTA seeks to maximize flexibility by
allowing recipients to identify reasonable and common methods for
determining minimum useful life for assets other than vehicles and
certain facilities and lists examples of acceptable methods.
Rolling Stock Rebuilds and Overhauls
Comment: One commenter asked FTA for additional clarification on
distinguishing between overhauls and rebuilds. The commenter asked
whether it is the recipient who determines whether vehicle work is a
rebuild or an overhaul.
FTA Response: FTA declines to make a change based on this comment.
Whether vehicle work is an overhaul or a rebuild is determined by the
remaining useful life of the vehicle at the time of the work, and the
amount of remaining useful life the vehicle will have after the work is
completed. The circular establishes that an overhaul is a capital
activity enabling a vehicle to perform until the end of the vehicle's
original, expected useful life. On the other hand, the circular
explains that rebuilds are intended to extend the vehicle's useful life
beyond its original useful life. The commenter should contact the FTA
regional office responsible for administering its grants for further
assistance.
Like-Kind Exchange of Equipment
Comment: A commenter opined that FTA should include examples of
calculations for like-kind exchanges of equipment involving insurance
[[Page 79340]]
proceeds, as were provided in the pre-existing C 5010.1E.
FTA Response: FTA declines to make a change based on this comment.
FTA consolidated the pre-existing like-kind exchange examples into the
Equipment Disposition Scenarios in Appendix G to C 5010.1F.
Use of Insurance Proceeds Toward Damaged or Destroyed FTA-Assisted
Equipment
Comment: A commenter requested FTA change its policy that
subrecipients may keep all insurance proceeds obtained from claims for
loss of damaged or destroyed equipment in excess of a remaining Federal
interest. According to the commenter, FTA's interest in a vehicle
extinguishes when the vehicle has reached its minimum useful life,
although the vehicle may still be in good condition, and ``this creates
an incentive for a [recipient] to deliberately total a federally
funded'' vehicle when it has reached the end of its useful life to
obtain insurance proceeds.
FTA Response: FTA declines to make a change in response to the
comment. FTA's interest in a vehicle does not extinguish when a vehicle
reaches its minimum useful life as the commenter describes. FTA's
interest in the vehicle persists until the recipient disposes of the
vehicle. For any vehicle with a value in excess of $10,000, the
recipient must follow authorized disposition procedures and remit to
FTA its proportional share of the vehicle's fair market value at the
time of disposition when the fair market value is greater than the
straight-line depreciated value of the vehicle. FTA's interest is based
on the greater of a vehicle's fair market value or sale proceeds, if it
is sold, or alternatively the straight-line depreciated value. Section
3 of Chapter IV of C 5010.1F describes the process of equipment
disposition and valuation.
The commenter is correct that, in the case of insurance proceeds
received for a vehicle taken out of service by casualty, FTA claims an
interest in the insurance proceeds equal to the value of FTA's interest
in the vehicle immediately before the vehicle was taken out of service.
If insurance proceeds exceed the value of FTA's interest, the recipient
may retain the excess. This policy protects the Federal financial
interest and incentivizes recipients to adequately insure project
property in their possession. FTA is not aware of examples of its
policy driving the behavior the commenter is concerned about.
For more information, FTA encourages any interested recipient to
speak with its insurer about the consequences of deliberately damaging
vehicles to collect insurance proceeds.
Drug and Alcohol Program Compliance Audits
Comment: In relation to drug and alcohol compliance audits, a
commenter requested FTA clarify whether recipients' annual drug and
alcohol certification is in reference to Drug and Alcohol Management
Information System (DAMIS) reporting or a separate requirement.
FTA Response: FTA declines to make a change in response to the
comment. The circular and FTA's annual Certifications and Assurances
are clear that the annual certification of drug and alcohol testing is
separate from the drug and alcohol management information system
reporting that requires submission of the previous year's testing.
Cognizant Federal Agency for Indirect Cost Rate Proposals
Comment: A commenter requested the circular provide that indirect
cost rate proposals (ICRPs) need to be approved by the cognizant
Federal agency and to provide clarification for determining the
cognizant agency for subrecipients' indirect costs as distinct from the
cognizant agency for audits.
FTA Response: FTA declines to make a change in response to the
comment. In Chapter VI, the circular states, ``ICRPs must be approved
by FTA or another legally designated cognizant Federal agency''. The
circular, in Section 7 of Chapter VI, also states the method of
determining agency cognizance: ``DOT is the cognizant agency of
indirect costs for State and local airport and port authorities and
transit districts' cognizant audit agencies. Based on delegations
within DOT, FTA is cognizant for transit districts. For other
organizations, cognizance is generally assigned to the Federal agency
that provides the predominant amount of Federal funding to a recipient
within a given departmental organization within the State or
locality.'' Appendix I explains that ICRPs are prepared by an
individual recipient or subrecipient to substantiate an indirect cost
rate.
De Minimis Rate for Indirect Costs
Comment: A commenter requested FTA to leave the de minimis rate for
indirect costs unspecified in the circular, in case the de minimis rate
is changed by subsequent legislation or rulemaking.
FTA Response: FTA declines to make a change in response to the
comment. FTA has updated the de minimis rate in the circular to 15
percent, in accordance with the revision to 2 CFR 200.414(f). The de
minimis rate has changed only once since the original part 200 was
published in 2014. The convenience to readers of stating the de minimis
rate in the circular outweighs the potential inconvenience if the de
minimis rate changes again in the future and the circular must be
updated.
Relationship of Circular to FTA Master Agreement
Comment: One commenter suggested that instead of describing ethical
standards, certifications, and procurement standards in Chapter II of
the circular, FTA simply refer the reader to FTA's Master Agreement,
because the requirements derive from the Master Agreement, and the
Master Agreement is subject to change.
FTA Response: FTA declines to make a change in response to the
comment. The commenter did not cite a specific requirement, but
generally speaking, the procurement requirements derive both from
Federal regulations, like 2 CFR part 200, and FTA's Master Agreement.
Where a requirement has more than one source, the circular generally
cites only to the regulation so as not to overcrowd the document with
citations. The convenience to the reader of stating requirements in the
circular outweighs the potential inconvenience if a requirement should
change in the future and the circular must be updated. For more
information about the standards that apply to procurements carried out
under FTA awards, refer to the latest version of FTA's C 4220.
Requests To Change Statutory or Other Government-Wide Regulatory
Requirements
FTA received some comments requesting changes to requirements that
are based in statutes or regulations that FTA does not have the
authority to change.
Comment: One commenter asked FTA to reinsert language in the
definition for ``Associated Transit Improvement'' to include
landscaping for stormwater absorption and erosion prevention,
consistent with version C 5010.1E of the circular.
FTA Response: FTA declines to make a change in response to the
comment. The definition of ``Associated Transit Improvement'' is given
in statute at 49 U.S.C. 5302(2). Note that certain kinds of landscaping
may remain eligible as ``functional landscaping'' under the definition
of ``Associated Transit Improvement.''
[[Page 79341]]
Comment: A commenter requested that FTA include fares as a
permissible source of local match.
FTA Response: FTA declines to make a change in response to the
comment. Federal law excludes fares as an eligible source of local
match for FTA financial assistance. E.g., 49 U.S.C. 5307(d)(3) (``the
remainder of the net project costs shall be provided . . . in cash from
non-Government sources other than revenues from providing public
transportation services''). Generally, financial assistance from FTA
may only fund up to the permissible Federal share of the ``net project
cost'' of eligible projects. The term ``net project cost'' means the
part of a project that reasonably cannot be financed from revenues (49
U.S.C. 5302(13)).
Comment: One commenter requested the circular only reference
national flood insurance coverage thresholds as the required coverage
for FTA-funded facilities in special flood hazard areas, which the
commenter alleges would ``avoid confusion due to the unavailability of
substantial flood insurance policies or policies that fully ensure
agency's assets and facilities.''
FTA Response: FTA declines to make a change in response to the
comment. The circular does not require that recipients obtain full
flood insurance coverage over project property. The circular cites 42
U.S.C. 4013(b)(4), which sets the minimum flood insurance coverage
requirements.
Comment: One commenter recommended FTA remove language from Chapter
III stating that milestone progress reports (MPRs) and Federal
financial reports (FFRs) must be submitted to FTA within 30 days after
the end of each quarter, as the commenter opines that 30 days is not
sufficient to research, document, and provide explanations for
variances that arise between MPRs and FFRs due to differences in the
timing of project progress and project invoice submissions. The
commenter further recommended FTA provide reporting frequencies and
submission deadlines as best practices rather than requirements.
FTA Response: FTA declines to make a change based on this comment.
Per 2 CFR 200.329, the recipient must submit regular performance
reports. Reports that are due more frequently than annually, like the
quarterly submitted MPRs, ``must be due no later than 30 calendar days
after the reporting period.'' FTA does not have the discretion to
deviate from this government-wide regulation.
B. Changes Based on Public Comments
Comments below reflect areas where FTA made language changes in the
circular in response to public comments.
Effective Date for Updated Circular
Comment: One commenter noted the circular's lack of a stated
effective date or a statement of how existing awards and third-party
agreements will be affected by C 5010.1F. The commenter asked if FTA
will adjust its compliance reviews to account for differing applicable
requirements based on the applicable date of circular C 5010.1F.
FTA Response: In response to this comment, FTA included the
circular's applicable date, November 1, 2024, in the first paragraph of
the circular. FTA also added a statement to clarify the legal effect of
the circular on FTA recipients. As a guidance document, the circular
does not have the force and effect of law and is not meant to bind the
public in any way. The circular is intended only to provide clarity to
the public regarding existing requirements under the law or agency
policies.
Some of the revisions made in C 5010.1F describe changes in law or
policy that took effect before the applicable date of C 5010.1F. Those
changes apply according to their respective terms. Other circular
provisions reflect long-standing FTA operating procedures to which
notice was already provided or not required. Future compliance reviews
conducted by FTA will account for the applicable effective dates.
Changes Made to Definitions in the Circular
Comment: One commenter said the proposed circular's definition of
``Shared Use'' appeared to only apply to real property. The comment
requested that FTA modify the definition to explicitly include shared
use of equipment, including rolling stock.
FTA Response: FTA updated this definition to explicitly note shared
use can apply to equipment, including rolling stock.
Comment: A commenter asked FTA to define Qualified Human Service
Organization (QHSO) and provide additional guidance regarding the
exception of QHSOs from the restrictions of FTA recipients to provide
charter bus services contained in 49 U.S.C. 5323(d).
FTA Response: FTA added a definition of QHSO to C. 5010.1 using the
same definition provided at 49 CFR 604.3(q) for consistency. Additional
language addressing QHSO exceptions was not added to the circular
because 49 CFR part 604 addresses charter service. 49 CFR 604.7
provides the necessary guidance for QHSOs providing charter bus
services. No further guidance from the circular is required at this
time.
Information on Specific Discretionary Programs
Comment: One commenter asked FTA to include a reference to FTA's
passenger-only ferry program in the list of current FTA programs in
Chapter II.
FTA response: FTA added the Passenger Ferry Discretionary Program
(49 U.S.C. 5307(h)) to the list of current FTA programs.
Request for Reference to Additional Resource
Comment: One commenter asked FTA to include a reference to the
Coordinating Council on Access and Mobility (CCAM) Federal Fund
Braiding Guide in Chapter VI as a resource for recipients to understand
which sources of Federal funds may be used as local match for FTA-
funded activities.
FTA Response: FTA added a reference to the CCAM Federal Fund
Braiding Guide and a link to the online resource.
Incidental and Shared Uses
Comment: One commenter requested that FTA include examples of
shared use and incidental use of equipment similar to the circular's
examples of shared use and incidental use of real property, further
suggesting FTA include a table clarifying the difference between the
two, as well as the applicable Federal rules for each.
FTA Response: In response to this comment, FTA included examples
for the shared use and incidental use of equipment in Chapter IV of the
circular. FTA did not include a table clarifying the difference between
the two concepts, as the difference between the two concepts is
sufficiently described in both Chapter IV and the circular's
definitions.
Comment: A commenter asked FTA to explain if FTA must always
provide prior approval for shared use of real property. The commenter
also asked if it was appropriate for FTA to refer to the allocable
costs of construction for equipment that may qualify as a shared use
for determining such a shared use's pro rata share.
FTA Response: The circular already states that a shared use of
property requires prior FTA approval except when it involves
coordinated public transit-human services transportation. However, the
word ``construction'' was replaced with ``acquisition'' to refer to the
usual process for acquiring
[[Page 79342]]
equipment that may qualify as a shared use.
Comment: A commenter requested that the circular address incidental
and shared uses of equipment and supplies by a non-controlling
subrecipient for a public transportation use.
FTA Response: In response to this comment, FTA updated language
addressing the concept of shared use for both real property and
equipment in Chapter IV to clarify that shared uses can be arranged
with any third-party user of project property, regardless of the type
of entity, and is not limited only to non-transit entities or uses.
Accordingly, a subrecipient's use of a recipient's real property or
equipment can qualify as a shared use. However, FTA declines to change
the language addressing incidental uses because the circular accurately
reflects FTA's intent to define ``Incidental Use'' as the limited non-
transit use of project property. A subrecipient's use of a recipient's
project property for public transportation is not an incidental use
because a subrecipient's activities are inherently public
transportation.
Comment: One commenter requested that FTA remove the language
addressing the incidental use of real property under the Property
Management subsection in Chapter IV because the circular provides the
same language under the Non-transit Uses of FTA-Assisted Real Property
subsection in the same chapter.
FTA Response: In response to this comment, FTA removed the language
regarding incidental use in Chapter IV's section on general use of
project property, while retaining the same language in the section on
incidental use.
Intercity Bus
Comment: One commenter asked that the circular recognize intercity
bus as a non-incidental use, in other words, that intercity bus should
be recognized in FTA guidance as a primary transportation use at FTA-
funded facilities. The commenter stated that this request was because
of challenges and delays intercity bus companies experience trying to
obtain reasonable access for intercity bus at federally funded public
transportation facilities.
FTA Response: FTA has added text to Chapter IV of C 5010.1F
emphasizing the requirements of 49 U.S.C. 5323(r). According to 49
U.S.C. 5323(r), a recipient of FTA assistance may not deny reasonable
access for a private intercity or charter transportation operator to
federally funded public transportation facilities, including intermodal
facilities, park-and-ride lots, and bus-only highway lanes.
FTA declines to exclude intercity bus uses as a potential type of
incidental use. By statute, 49 U.S.C. 5302(15) and 49 U.S.C. 5311,
intercity bus service is not public transportation. The circular's
definition of incidental use does not diminish the requirement in 49
U.S.C. 5323(r) that transit agencies must provide reasonable access
because it is reasonable to ensure that intercity bus use does not
conflict with the transit purpose of the project property or the
recipient's ability to maintain satisfactory continuing control over
the use of the property. Therefore, reasonable access provided to
intercity bus service at an FTA-funded facility may be an incidental
use of such a facility.
Comment: One commenter requested that FTA revise the circular to
state that recipients should give intercity bus companies access to
transit property at low or no cost. In C 5010.1F, FTA added a
description of ``no- or low-income'' uses of transit property (those
that bring little revenue to the recipient but serve a public purpose)
as a kind of incidental use recipients may consider. The commenter
suggested that FTA recategorize no- or low-income uses as distinct from
incidental uses, under a new category such as ``Non-Incidental,''
``Primary,'' or ``Intercity Transportation'' use. The commenter then
requested that FTA state that intercity bus companies should be treated
as a no- or low-cost use because they are a form of transportation with
public benefits.
FTA Response: In response to this comment, FTA added a subsection
to the circular to highlight the requirements of 49 U.S.C. 5323(r),
which says recipients may not deny intercity bus companies and charter
companies reasonable access to transit facilities. However, FTA
declines to recategorize no- or low-income use separately from
incidental use. FTA's incidental use policy is intended to cover all
non-transit uses occurring on transit property, regardless of the
revenue they create for FTA's recipient.
The purpose of the circular's description of no- or low-income uses
is to recognize a recipient's flexibility to allow less-than-market
rates for uses that provide benefits that complement public
transportation services notwithstanding their low potential for revenue
to the transit system. The categorization of any use as an incidental
use is not a statement as to the importance of the use.
Additionally, FTA declines to describe intercity bus as a no- or
low-income use. The access provision of 49 U.S.C. 5323(r) requires that
recipients not deny intercity bus companies reasonable access to
transit assets, but reasonable access does not require no cost or low
cost access, although a recipient may determine that intercity bus
service is an appropriate no- or low-income use depending on the
location and its unique situation. FTA intends that its recipients have
the full flexibility to bargain for what is reasonable in each
situation, taking into consideration the public benefit of the proposed
use, the costs the recipient incurs by allowing the use, the impact of
the use on the recipient's operations, market rates, the value of the
access to the non-transit entity, possible alternative uses, and other
factors as determined by the recipient.
Real Property Status Reporting
Comment: One commenter recommended that FTA remove the additional
elements now included in the updated circular's list of required
information a recipient must include in its real property status
reports, saying that records containing the additional information may
not exist, require significant funds to generate, or otherwise would be
burdensome to produce. The commenter further stated that 2 CFR 200.330
only requires recipients to generate real property status reports on a
regular basis and does not require FTA acquire such information.
FTA Response: FTA declines to make any changes in response to this
comment. Recipients must maintain adequate records for FTA's monitoring
of recipients' compliance with Federal requirements. A real property
status report would be inadequate to assess compliance with FTA real
property requirements without the specified information. However, FTA
modified the ``Current Use(s) of the Property'' element to prompt
reporters to identify whether a significant change has occurred to a
parcel of real property or is anticipated to occur in the next
reporting period, and, if so, to describe the change. Further, FTA
clarified language that some of the reporting elements apply to real
property dispositions.
Comment: One commenter requested that FTA not require recipients to
report the date of property disposition or the sale price and net
proceeds in their real property status reports following property
disposition.
FTA Response: FTA declines to remove the property disposition date,
sales price, and related proceeds from the list of property status
report elements because the information is
[[Page 79343]]
necessary to sufficiently assess a recipient's compliance with
requirements regarding real property disposition and accounting for
FTA's interest in the property. However, in response to this comment,
FTA added language explaining that recipients should include the
requisite disposition information for real property disposed within a
three-year reporting cycle in the following real property status
report, but recipients may remove the disposition information from the
real property status reports thereafter.
Equipment Disposition Scenarios--Appendix G
Comment: One commenter asserted that the equipment disposition
scenarios in Appendix G contain two errors. The commenter said the
second paragraph of the appendix should indicate that the insurance
proceeds received by the recipient are more than the Federal share for
the example unit of equipment rather than less than the Federal share.
The commenter also said that language in the third paragraph of the
appendix should indicate that the insurance proceeds received by the
recipient are less than the Federal share for the example unit of
equipment rather than more than the Federal share.
FTA Response: In response to this comment, FTA adjusted the
language referenced by the commenter to accurately show the
relationship between the amount of insurance proceeds and the
respective Federal share for the example units of equipment in the
scenarios presented.
Comments Requesting Clarifications or Specificity
FTA received several requests for clarification or more specificity
on various requirements. In response, FTA revised language in the
circular to address comments, as explained below.
Inventory of Vehicle Components
Comment: Three commenters expressed concerns regarding the
requirement for recipients to identify and inventory vehicle components
removed from a vehicle at the end of the vehicle's useful life that
retain a Federal interest. The commenters opined that such treatment
would exact an administrative burden for transit agencies and auditors
because of the large volume of low-value components that fall into this
category.
FTA Response: In response to this comment, FTA clarified in the
circular that a recipient only must inventory a removed vehicle
component when the component meets the definition of ``equipment.'' 2
CFR 200.1 and the circular define equipment as tangible property having
a useful life of more than one year and a per-unit acquisition cost
that equals or exceeds the lesser of the capitalization level
established by the recipient for financial statement purposes, or
$10,000.
Transfer of Real Property for Affordable Housing
Comments: A commenter submitted multiple comments related to
provisions for the transfer of real property for affordable housing
purposes as part of a transit-oriented development (TOD). One comment
expressed safety concerns with the combination of housing with transit
facilities and asserted that any such developments that combine the two
should include separation requirements between those uses. Another
comment suggested that restrictions on the use of transferred real
property for low-cost housing could limit complementary ancillary
services for transit patrons associated with transit facilities located
in mixed-use environments. An additional comment expressed concerns and
confusion with the transfer criteria potentially excluding governmental
entities and non-profit organizations.
FTA Response: In response to this comment, FTA changed the title of
the subsection in Chapter IV from ``Transfer for Transit Oriented
Development'' to ``Transfer for Affordable Housing for Transit Oriented
Development'' to clarify that this transfer authority is specific to
affordable housing in a TOD environment, not all TOD initiatives.
However, no additional changes were made based on these comments. The
affordable housing requirements do not prevent the inclusion of
additional ancillary services beyond those that could support
affordable housing. The provisions of 49 U.S.C. 5334(h)(1)(B) do not
prohibit recipients' abilities to engage in TOD initiatives or
additional transit-related services, but rather provide one permissible
disposition option for affordable housing projects meeting the
statutory requirements. Further, this asset disposition provision
prioritizes transfer to governmental entities and non-profit
organizations. An asset may only be transferred to a third-party entity
if a local government authority or nonprofit organization is unable to
develop the property. For additional information about the asset
disposition provision, please see FTA's Interim Asset Disposition
Guidance at <a href="https://www.transit.dot.gov/funding/funding-finance-resources/interim-asset-disposition-guidance">https://www.transit.dot.gov/funding/funding-finance-resources/interim-asset-disposition-guidance</a>.
Asset Disposition
Comment: Two commenters requested that FTA increase the disposition
threshold from $5,000. One commenter also requested that FTA permit
recipients to retain all proceeds obtained through the resale of FTA-
assisted vehicles to supplement open grants.
FTA Response: FTA edited language addressing disposition of
equipment and supplies in Chapter IV to conform with changes IIJA made
to 49 U.S.C. 5334(h)(4)(B), as well as changes to 2 CFR part 200 that
took effect on October 1, 2024. Per 2 CFR 200.313 and 200.314,
equipment with a per unit value of $10,000 or less and unused supplies
with an aggregate value of $10,000 or less may be retained, sold, or
otherwise disposed of with no further responsibility to FTA. If the
proceeds are greater than $10,000, then per 49 U.S.C. 5334(h)(4)(B),
the recipient may retain $5,000 and the percentage of the local share
in the original award of the remaining proceeds, with the remaining
Federal share returned to FTA. Because 49 U.S.C. 5334(h)(4)(B) requires
recipients to return to FTA the FTA share of proceeds from the sale of
rolling stock, FTA does not have discretion to allow recipients to
retain these proceeds to supplement open grants.
Comment: A commenter asked FTA to provide further guidance
regarding the disposition of supplies and attendant insurance proceeds,
mentioning that pre-existing C 5010.1E provided detailed information on
the topic.
FTA Response: In response to this comment and to reflect updates to
2 CFR 200.314, FTA included additional language identifying the
treatment of the disposition of supplies. In several places where C
5010.1F discusses the application of disposition rules to equipment,
FTA has added a statement that disposition rules also apply to unused
supplies the aggregate value of which exceeds $10,000. FTA does not
have any unique considerations regarding the disposition of supplies
beyond what is directed in 2 CFR 200.314. Furthermore, FTA's treatment
of insurance proceeds applies similarly to all project property.
Equipment disposition scenarios that involve insurance proceeds are
provided in Appendix G of the C 5010.1F. The same examples illustrate
FTA's treatment of disposition of unused supplies. Therefore, no
further guidance is necessary to further illustrate FTA's treatment of
the disposition of supplies or attendant insurance proceeds from claims
arising for the loss of supplies.
[[Page 79344]]
Buy America
Comment: One commenter recommended that FTA remove the summaries of
``Buy America Domestic Preference'' in Chapter II and, instead, only
use the circular to refer FTA grant recipients to current Buy America
regulations at 49 CFR part 661, 2 CFR part 184, and the Office of
Management and Budget's (OMB's) implemented guidance for Build America,
Buy America (BABA). The commenter was concerned that the summary of
these requirements in C 5010.1F may inhibit compliance by overly
simplifying complex requirements.
FTA Response: FTA understands the commenter's concern and agrees
that recipients always should refer to the actual laws and regulations
cited in the circular. However, FTA declines to adopt the commenter's
suggestion. C 5010.1F strikes a balance between informing readers of
the broad requirements of Buy America while recognizing that actual
rules are complicated. Moreover, directing recipients to regulations
without additional context may also be confusing. The application of
the Build America, Buy America Act domestic preference, located at 2
CFR part 184, is only partially applicable to FTA financial assistance
awards because FTA's existing Buy America requirements at 49 U.S.C.
5323(j) continue to apply where they meet or exceed the Build America,
Buy America Act requirements.
However, FTA updated a reference from a superseded OMB memorandum
to its current version and corrected a misstatement in the circular's
text. The proposed version of C 5010.1F had said that 49 CFR 663.37
exempts some vehicle purchases from the auditing requirement, when 49
CFR 663.37 actually exempts those purchases from the resident inspector
requirement.
Transit Vehicle Manufacturer (TVM) Compliance Under FTA's Disadvantaged
Business Enterprise (DBE) Program
Comment: A commenter requested FTA include a clarification in
Chapter II that recipients are not restricted to solicit bids from DBE-
eligible transit vehicle manufacturers (TVMs). The commenter states
that bid respondents could be other third parties, such as authorized
dealers, which can also be bound by the TVM requirements.
FTA Response: In response to this comment, FTA expanded relevant
language explaining that recipients may seek bids from entities other
than vehicle manufacturers, such as dealerships, who certify that the
procured vehicles are, or will be, manufactured by DBE-eligible TVMs.
Rolling Stock Spare Ratio Policies
Comment: A commenter requested that FTA exempt the requirement to
report spare ratios for subrecipients whose spare ratios are not
limited to 20 percent. The commenter also asked FTA to clarify whether
a direct recipient or the subrecipient's maximum spare ratio would
apply when the direct recipient is seeking funding to procure vehicles
on behalf of a subrecipient.
FTA Response: In response to this comment, FTA added a statement in
its spare ratio policy clarifying that FTA calculates each transit
operator's maximum spare ratios separately, based on each separate
operator's fleet size, without regard to their status as a direct
recipient or subrecipient. FTA's spare ratio policy is that recipients
with 50 or more fixed-route vehicles limit their spare ratio to 20
percent of the number of vehicles operated in maximum fixed-route
service. This requirement extends to subrecipients' separate fleets
individually, and their fleets are not imputed to the recipient. For
individual operators with fewer than 50 fixed-route vehicles, whether
they are recipients or subrecipients, FTA does not set a specific
maximum spare ratio but expects the number of spare vehicles to be
reasonable, considering the number of vehicles and variety of vehicle
types and sizes.
Recipient-to-Recipient Transfer of Rolling Stock
Comment: A commenter requested that FTA clarify that recipient-to-
recipient transfers of rolling stock are used for instances in which
the useful life of the rolling stock has not yet been met.
FTA Response: In response to this comment, in Chapter IV, FTA has
amended the language specific to recipient-to-recipient transfers of
rolling stock to clarify that recipients should provide FTA with
certain documentation when seeking FTA's approval of recipient-to-
recipient transfer of rolling stock with a remaining useful life. The
language in Chapter III addressing recipient-to-recipient transfers of
rolling stock does not exclusively apply to rolling stock at the end of
its useful life. Rather, the language specifically addresses the
differing requirements and considerations when transferring rolling
stock that does or does not have a remaining useful life.
C. Request for Technical Assistance
Comment: FTA received a comment requesting more targeted technical
assistance on new information included in Appendices A, B, and C. The
commenter also asked FTA to provide guidance regarding recipient legal
capacity requirements outlined in Appendix A. Lastly, the commenter
asserted that pre-award requirements in Appendix B include substantial
changes that may require proper lead time for agencies to prepare for
the requirements.
FTA Response: FTA declines to make any changes in the circular in
response to this comment. However, FTA will provide training and
technical assistance opportunities regarding updates made to this and
the other simultaneously issued program circulars (C 9040.1H, C
9070.1H, C 9050.1A).
III. Other Updates
In addition to the changes noted above, FTA made revisions in this
final circular for consistency with changes in statute, regulation, and
other FTA circulars, as well as minor, non-substantive revisions for
clarity. For consistency with statute, FTA added language in Chapter IV
identifying alternative fueling facilities as a potential type of
incidental use of both real property and equipment in accordance with
49 U.S.C. 5323(p). Additionally, FTA added a statement at the beginning
of the circular that in cases for which the circular is inconsistent
with changes to any law, the law will supersede this circular. Along
with other non-substantive administrative changes that were recommended
by several commenters, FTA made additional corrections in the circular
for typographical errors, grammatical errors, and formatting.
Updates Based on Regulatory Changes
Since C 5010.1F was released for public comment on February 14,
2024, several government-wide regulations have changed. FTA has
accordingly updated the 5010.1 circular to reflect changes in the law
since that time, including the following:
2 CFR Part 200 Changes
The Office of Management and Budget (OMB) updated the government-
wide policies for the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards under 2 CFR part
200 as well as parts 25, 175, and 180, effective October 1, 2024,
including but not limited to the following:
<bullet> Equipment and Aggregate Supplies Definitions/Thresholds:
Sections
[[Page 79345]]
200.313 (Equipment) and 200.314 (Supplies) of 2 CFR part 200 each
increase the thresholds, from $5,000 to $10,000, for the value of
equipment and aggregate supplies a recipient may retain, sell, or
dispose of at closeout. Consistent with 2 CFR 200.314, FTA also
clarified throughout the circular that disposition requirements apply
only to unused supplies.
<bullet> De Minimis Rate: 2 CFR part 200 increases the de minimis
indirect cost rate from 10% to 15% of Modified Total Direct Costs
(MTDC). FTA recipients and subrecipients may elect a lower de minimis
rate at their discretion and modify the indirect cost rate of MTDC to
permit inclusion of the first $50,000 of any one subaward in the base.
<bullet> Single Audit: 2 CFR part 200 increases the direct Federal
expenditure threshold requiring a recipient to conduct a single audit
from $750,000 to $1 million. OMB also revised the definitions of
``known questioned costs'' and ``likely questioned costs'' while
providing additional direction to recipients to identify such costs in
an audit report.
Uniform Act Changes
Acting as Lead Agency, FHWA published a final rule on May 3, 2024,
to amend and update 49 CFR part 24, which implements the Uniform
Relocation Assistance and Real Property Acquisition Policies Act
(Uniform Act) for land acquisition and displacement activities by all
Federal agencies and their financial assistance recipients (89 FR
36908). These regulations clarify existing requirements for
implementing the Uniform Act, meet modern needs, and improve the
agencies' service to individuals and businesses affected by Federal or
federally assisted projects. All references to these regulations were
updated in C 5010.1F.
Disadvantaged Business Enterprise (DBE) Final Rule Changes
On April 9, 2024, the U.S. Department of Transportation published
its final rule regarding Participation by Disadvantaged Business
Enterprises (DBE) in Department of Transportation Financial Assistance
Programs located at 49 CFR part 26 (89 FR 24898). Changes to the rule
include a streamlined DBE certification process, adjustments to grant
recipient reporting requirements, and other technical corrections. For
FTA specifically, the rule creates two tiers of recipients: Tier I
recipients who award more than $670,000 in FTA funds annually in 3rd
party contracts and are subject to all DBE program provisions and Tier
II recipient who award $670,000 or less in FTA funds annually and are
subject to a subset of provisions.
Veronica Vanterpool,
Deputy Administrator.
[FR Doc. 2024-22160 Filed 9-26-24; 8:45 am]
BILLING CODE 4910-57-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.