Award Management Requirements Circular (C 5010.1) Proposed Updates, 11334-11338 [2024-03044]

Agencies

• Federal Transit Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 89, Number 31 (Wednesday, February 14, 2024)]
[Notices]
[Pages 11334-11338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03044]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2024-0003]


Award Management Requirements Circular (C 5010.1) Proposed 
Updates

AGENCY: Federal Transit Administration (FTA), Department of 
Transportation (DOT).

ACTION: Notice of availability of proposed circular updates and request 
for comments.

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SUMMARY: The Federal Transit Administration (FTA) is seeking public 
comment on proposed updates to FTA's Award Management Requirements 
circular (C 5010.1). The proposed updates combine requirements 
applicable to all FTA financial

[[Page 11335]]

assistance awards (referred to as ``cross-cutting'' requirements) and, 
when final, will supersede parts of three separate FTA circulars (the 
proposed ``Grant Programs for Urbanized Areas'', ``Formula Grants for 
Rural Areas'' (C 9040.1G), and ``Enhanced Mobility of Seniors and 
Individuals with Disabilities'' (C 9070.1G)). The proposed updates also 
reflect changes made by the Fixing America's Surface Transportation 
(FAST) Act; the Infrastructure Investment and Jobs Act (IIJA), also 
known as the Bipartisan Infrastructure Law (BIL)); the Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards; and other updates to FTA policies and procedures.

DATES: Comments must be submitted by April 15, 2024. Late-filed 
comments will be considered to the extent practicable.

ADDRESSES: Please submit your comments by only one of the following 
methods, identifying your submission by docket number FTA-2024-0003. 
All electronic submissions must be made to the U.S. Government 
electronic site at https://www.regulations.gov/.
    (1) Federal eRulemaking Portal: Go to https://www.regulations.gov/ 
and follow the online instructions for submitting comments.
    (2) Mail: Docket Management Facility: U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, 
Room W12-140, Washington, DC 20590-0001.
    (3) Hand Delivery or Courier: West Building Ground Floor, Room W12-
140, 1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m. Eastern time, 
Monday through Friday, except Federal holidays.
    (4) Fax: 202-493-2251.
    Instructions: You must include the agency name (Federal Transit 
Administration) and Docket number (FTA-2024-003 for this notice at the 
beginning of your comments. Submit two copies of your comments if you 
submit them by mail. For confirmation that FTA received your comments, 
include a self-addressed stamped postcard. Note that all comments 
received will be posted without change to https://www.regulations.gov/ 
including any personal information provided and will be available to 
internet users. For information on DOT's compliance with the Privacy 
Act, please visit https://www.transportation.gov/privacy.
    Docket: For access to the docket to read background documents and 
comments received, go to https://www.regulations.gov/ at any time or to 
the U.S. Department of Transportation, 1200 New Jersey Ave. SE, Docket 
Operations, M-30, West Building Ground Floor, Room W12-140, Washington, 
DC 20590 between 9 a.m. and 5 p.m. Eastern Time, Monday through Friday, 
except Federal holidays.

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, [email protected]. For 
legal questions, Jerry Stenquist, Office of Chief Counsel, same 
address, Room E56-314, phone: (202) 493-8020, or email, 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents:

I. Overview
II. Chapter-by-Chapter Analysis
    A. Chapter I--Introduction and Background
    B. Chapter II--Circular, FTA Programs, and Grants Management 
Overview
    C. Chapter III--Award Development and Administration
    D. Chapter IV--Property Administration and Award Management
    E. Chapter V--FTA Oversight
    F. Chapter VI--Financial Management
    G. Appendices

I. Overview

    FTA proposes an update to its Award Management Requirements 
Circular (C 5010.1). The proposed circular updates summarize FTA and 
Federal-wide administrative requirements for financial assistance 
awards while consolidating pre-existing cross-cutting guidance from 
previous FTA program circulars and reducing duplicative information 
repeated in separate circulars. The proposed circular updates also 
incorporate provisions of the Fixing America's Surface Transportation 
(FAST) Act, the Infrastructure Investment and Jobs Act (IIJA), and new 
or updated administrative requirements from 2 CFR parts 200 and 1201. 
Additionally, the updates clarify existing policy issues as interpreted 
and applied by FTA. Furthermore, the circular includes updated FTA 
policy regarding real property status reporting, the incidental use of 
FTA-funded project property, and transfer of real property to third 
party entities for affordable housing. The proposed circular updates 
also increase the use of graphics, tables, and weblinks to improve 
clarity. A copy of the proposed updated circular will be placed in the 
docket, and posted on FTA's Proposed Circulars web page (https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/proposed-circulars).

II. Chapter-by-Chapter Analysis

A. Chapter I--Introduction and Background

    Due to the consolidation of three program circulars, definitions 
and program descriptions were compared and revised for consistency with 
proposed revisions and updates to the following FTA circulars: the 
proposed ``Grant Programs for Urbanized Areas'', ``Formula Grants for 
Rural Areas'' (C 9040.1G), and ``Enhanced Mobility of Seniors and 
Individuals with Disabilities'' (C 9070.1G). FTA proposes to amend the 
definitions section for consistency, clarification, and to reflect 
changes to statute and other authorities. Specifically, FTA has updated 
the following terms:
     ``Amendment'' has been added for consistency with the 
three program circulars.
     ``Capital Asset'' is modified for consistency with 2 CFR 
200.1.
     ``Concurrent Non-Project Activities'' has been removed and 
requirements have been relocated to the body of the circular.
     ``Excess Real Property Inventory and Utilization Plan'' 
has been removed as information is required in the revised Real 
Property Status Report.
     ``Facilities'' has been updated to add fixed guideways.
     ``Federal Interest'' has been updated to better align with 
FTA and Federal regulations, including in cases where fair market value 
determinations are not readily discernable.
     ``Incidental Use'' has been updated to align with FTA and 
Federal requirements to ensure that recipients maintain satisfactory 
continuing control over FTA funded property.
     ``National Environmental Policy Act'' has been updated to 
clarify the role in FTA funded projects. Requirements have been moved 
to the body of the circular.
     ``Operating Expenses'' has been updated to clarify the 
differentiation from capital expenses.
     ``Pre-award Authority'' has been updated to clarify the 
process in which announcements and notifications occur.
     ``Program of Projects'' has been updated to align with 
changes made in other FTA circulars.
     ``Real Property'' has been modified for consistency with 2 
CFR 200.1.
     ``Real Property Inventory'' has been renamed the Real 
Property Status Report and has been updated to reflect the revised 
requirements of 2 CFR 200.330.
     ``Remaining Federal Interest for Dispositions Before the 
End of the Useful Life of Project Property'' has been deleted and 
requirements have

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been relocated to the body of the circular.
     ``Remaining Federal Interest in Federally Assisted 
Property'' has been deleted and requirements have been relocated to the 
body of the circular.
     ``Rolling Stock Repowering'' has been updated and 
requirements have been moved to the body of the circular.
     ``Satisfactory Continuing Control'' has been updated to 
more closely align with FTA and Federal requirements for the use of, 
and Federal interest in, project property.
     ``Shared Use'' has been updated for clarity and 
differentiation from ``incidental use'' as defined in the circular. 
Requirements have been relocated to the body of the circular.
     ``Unobligated Balance'' has been updated to provide 
concept clarifications. Methodology and reporting requirements have 
been relocated to the body of the circular.
     ``Urbanized Area'' has been updated to reflect changes in 
designation by the Census Bureau, which no longer utilizes ``Urbanized 
Area'' but ``Urban Area'' (UZA), as defined by the Secretary of 
Commerce.
     ``Useful Life'' clarifies applicability to real property 
and other capital assets. Because useful life depends on depreciation 
and estimated time in use, expected minimum useful life changes 
according to the type of asset in question. Furthermore, ``Useful 
Life'' has been updated to clarify the relationship between the 
measurement of property use and federal financial interest in project 
property. The revised definition also distinguishes from the ``useful 
life benchmark'' concept utilized by the Transit Asset Management (TAM) 
System.
    In addition, FTA proposes updates to the list of abbreviations and 
acronyms provided in the circular to better reflect agency standards 
for references and text additions found elsewhere in the body of the 
circular.

B. Chapter II--Circular, FTA Programs, and Grants Management

    Chapter II of the proposed circular updates provide an overview of 
the requirements and procedures for the management of all applicable 
FTA programs authorized under 49 U.S.C. Chapter 53. Additionally, this 
chapter provides an overview of the government-wide requirements 
applicable to FTA awards. This chapter's updates reflect statutory and 
regulatory requirements enacted since the issuance of previous versions 
of this circular. Major updates in this chapter include:
     Updating the list of FTA programs to which the circular 
will apply. This includes the addition of program descriptions for the 
Rural Transportation Assistance Program (RTAP) (Section 5311(b)(3)) and 
the Intercity Bus Program (Section 5311(f)) as well as the removal of 
program descriptions of programs that are no longer active.
     Updating the roles and responsibilities of the recipient 
to clarify the necessary timing of funding drawdown requests.
     Updating FTA's coordination of triennial and state 
management reviews and substantial involvement in cooperative 
agreements.
     Disadvantaged Business Enterprise (DBE) program goals and 
requirements located throughout the circular.
     Adding descriptions of the Build America, Buy America Act 
(BABA) domestic preference requirements, which apply in addition to 
FTA's longstanding Buy America statute.
     Amending the ``Buy America Domestic Preference'' 
subsection to reflect updates made by 2 CFR part 184 implementing the 
Build America, Buy America Act (BABA), primarily affecting FTA-funded 
infrastructure projects by adding domestic preferences for construction 
materials and additional procedures related to Buy America waivers.
     Within the ``Design and Construction of Facilities'' 
subsection, distinguishing FTA's Project and Construction Management 
Guidelines from the Construction Project Management Handbook.
     Adding a subsection entitled ``Title VI Equity Analysis 
for Facilities'' to better inform recipients of the requirement to 
conduct such analyses.
     A subsection on project signage has been added to address 
FTA's project signage preferences for FTA assisted projects. This 
subsection includes guidelines for displaying agency logos, 
incorporating text, placement of signage, and associated costs, among 
other signage guidance.

C. Chapter III--Award Development and Administration

    This chapter describes the requirements for administering an award 
made by FTA. Chapter III is reorganized to include both pre-award and 
post-award administrative requirements. The Chapter's updates 
consolidate established cross-cutting requirements as well as those 
based on newly enacted statute or regulation. Major updates within this 
chapter include:
     An award lifecycle graphic provides an overview of the 
major phases of an award.
     Updates to the ``Metropolitan and Statewide Planning 
Requirements'' incorporating information from the relevant program 
circulars and the Statewide Transportation Improvement Plan (STIP) and 
Transportation Improvement Plan (TIP) processes.
     Updates to the ``Multiple Designated Recipients in Large 
UZAs'' subsection more accurately reflecting FTA expectations for 
coordination among local officials.
     Expansion of the ``Force Account'' subsection to include 
additional explanation of the FTA approval process.
     Reorganization of the ``Certifications and Assurances'' 
subsection by general capacities, standard assurances, and 
certification procedures.
     Expansion of the ``Application Process'' subsection 
clarifying the requisite structure of award budgets in the Transit 
Award Management System (TrAMS).
     Updates to the ``Reporting Requirements for Post Award 
Administration'' subsection to include planning reports for multiple 
activities, projects, and awards.
     An expansion of the guidance on the ``Federal Financial 
Report (FFR)'' subsection to include the reporting of approved Indirect 
Cost Rate Proposals or Cost Allocation Plans.
     Updates to the ``Budget Revision'' subsection 
consolidating the requirements and procedures for revising award 
budgets.
     Clarification regarding an award's period of performance 
and related eligibilities of costs incurred after the award end date.
     Updates to the subsection on ``Changes to Discretionary 
Awards or Earmarks'' highlighting the necessity of the competitive 
process and pre-award negotiations.
     Updates to the Adjustments to the ``Federal Share of 
Costs'' subsection clarifying that recipients are required to refund 
any costs FTA disallows during or after the award closeout process.
     Broadening of, and change to, the ``Disposition of 
Equipment and Supplies'' subsection to the ``Disposition of Property'' 
subsection.
     Relocation of property disposition procedures to Chapter 
IV.

D. Chapter IV--Property Administration and Award Management

    Chapter IV of the proposed circular updates reorganize and update 
the award management requirements

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regarding real property and equipment administration. This chapter 
provides guidance on the acquisition, management, use, and disposition 
of FTA assisted property, including facilities purchased or 
constructed, and rolling stock, other equipment, and supplies procured 
under an FTA award. The updated requirements are in accordance with 2 
CFR part 200, authorizing and appropriating legislation, and other 
Federal property requirements. In addition, much of the content within 
the chapter has been reorganized and consolidated. Some of the major 
changes include:
     A reorganization and consolidation of the real property 
and equipment requirements into separate sections.
     An overview of Transit Asset Management (TAM) regulations 
that impact FTA assisted property has been moved under the General 
heading of Chapter IV.
     Updates to the ``Appraisal Review of Real Estate'' 
subsection to clarify the requirements and FTA expectations for a 
technical analysis and review of appraisal reports. Additional guidance 
has been made regarding the qualifications of review appraisers and FTA 
concurrence requirements. For Major Capital projects, FTA is proposing 
to reduce submission requirements for projects with an approved Real 
Estate Acquisition Management Plan.
     Updates to concurrence requirements for incidental uses of 
project property within the subsections ``Property Management for Real 
Property'' and ``Incidental Use for Non-Transit Uses of FTA Assisted 
Real Property'', including specifying of circumstances in which a 
recipient must notify or seek concurrence from FTA in advance of its 
incidental uses of project property.
     Retitling of the ``Real Property Inventory'' subsection to 
``Real Property Status Report'' and updating the subsection to reflect 
the current requirements in 2 CFR 200.330 that recipients must submit a 
real property status report to FTA every three years. FTA proposes the 
minimum elements of such reports. Additionally, FTA proposes in its 
policy that these recipients shall generally submit these reports to 
FTA as part of the triennial or state management review process. The 
Real Property reporting requirements apply to all FTA assisted real 
property held by a recipient, regardless of the date real property was 
acquired or improved. Any recipient not subject to a Triennial or State 
Management Review should discuss the timing of the report submissions 
with their regional office.
     A new subsection, ``Transfers for Affordable Housing'', 
which incorporates a new disposition option added in 49 U.S.C. 
5334(h)(1)(B) that allows a recipient to dispose of an asset with no 
repayment to the Federal Government if it will be used for a transit-
oriented development that includes a minimum amount of affordable 
housing, as a percentage of the total floor area.
     Updates to the subsection ``Incidental use for Equipment 
and Supplies (including Rolling Stock)'', specifying the circumstances 
in which a recipient must notify and seek concurrence from FTA in 
advance of its incidental uses of project property.
     Updates to the subsection ``Leases'' clarifying the 
eligibility of Federal funding of capital lease payments as 
distinguished from payments for operating leases, including the removal 
of cost analyses as a prerequisite for payment eligibility as repealed 
by the FAST Act.
     Updates to the ``Management of Federally Assisted 
Property'' subsection for equipment and rolling stock with more clearly 
defined requirements for equipment records.
     Updates to the ``Maintenance and Warranty'' subsection for 
equipment and rolling stock to clarify the requirement for recipients 
to develop and implement maintenance procedures for FTA funded 
equipment.
     Updates to the ``Disposition of Equipment and Supplies'' 
subsection to clarify reimbursement requirements to resolve FTA's 
remaining share.
     Addition of a subsection ``Vehicle Components (Including 
Converted Vehicles) at End of Minimum Useful Life'' outlining 
requirements governing the retention and disposition of vehicle 
components after disposition of the vehicle. In the event that a 
recipient disposes of a vehicle but retains vehicle components, 
recipients must treat the component the same as other Federally funded 
equipment, including maintaining records identifying the retained 
vehicle components in its equipment inventory until disposition of the 
retained components. FTA continues to retain a Federal interest in any 
vehicle components retained or repurposed by the recipient. The Federal 
interest will continue to be proportional to the Federal share of 
participation in the vehicle acquisition. The remaining components must 
be valued at the time of removal from the vehicle.
     Updates to the subsection ``Insurance Proceeds for 
Equipment and Rolling Stock'' including clarifications for applying or 
repaying insurance proceeds for equipment or rolling stock with an FTA 
interest.
     Updates to the subsection ``Disposition or Use of Assets 
for Other Than Purposes of the Award after the End of Their Useful 
Life'' setting forth the requirements in 49 U.S.C. 5334(h) for 
retaining, using, and disposing of property with a fair market value of 
more or less than $5,000.

E. Chapter V--FTA Oversight

    This chapter provides an overview of the FTA framework for 
evaluating recipient adherence to program and administrative 
requirements through a comprehensive oversight program. FTA determines 
compliance through self-certification, oversight review, audits, and 
site visits. Major updates include:
     Reorganization of the subsection ``Financial Management'' 
to clarify major types of financial management oversight reviews.

F. Chapter VI--Financial Management

    This chapter discusses requirements for the use and management of 
Federal assistance. Chapter VI changes include a reorganization and 
updates to information on non-Federal share of awards, indirect costs, 
program income, and single audits. Significant updates include:
     The subsection ``Non-Federal Share'' has been updated to 
clarify what FTA considers an amount over the required match and a 
reference added to 2 CFR 200.306.
     The subsection ``Transportation Development Credits under 
Additional Sources of Non-Federal Share'' has been reorganized to 
clarify requirements for the use of, and the process for, determining 
the availability of such credits.
     The subsection ``In-Kind Contributions of Real Property 
under Additional Sources of Non-Federal Share'' has been updated to 
clarify requirements governing the applicability of an FTA interest 
when real property is used as local match.
     The subsection ``Indirect Costs'' has been reorganized and 
updated with additional information explaining the eligibility of 
indirect costs for FTA reimbursement.
     The subsection ``Cognizant Federal Agency under Indirect 
Costs'' has been updated with additional information regarding FTA's 
determination of the cognizant agency receiving FTA assistance. This 
determination is based on appendix V of 2 CFR part 200.
     The subsection on ``Plans and Proposals under Indirect 
Costs'' has been updated with clarifications regarding FTA approval 
requirements

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for Cost Allocation Plans or Indirect Cost Rate Proposals as well as 
for the election of the de minimis indirect cost rate.
     The subsection on ``Single Audits'' has been updated with 
additional information on the resolution of audit findings, including 
provisions for FTA technical advice and counsel.

G. Appendices

    FTA proposes revisions to the organization of the various 
appendices in this circular and the three program circulars it would 
supersede upon becoming final. Appendices have been moved, relabeled, 
updated, or removed. The revised structure of the appendices and an 
overview of major updates is included below:
 Appendix A: Required Prerequisite Documentation
    [cir] This appendix was added to capture guidance for key documents 
recipients must certify before receiving awards.
 Appendix B: Award Development
    [cir] This appendix was added as a compilation of guidance 
previously provided across the program circulars. Appendix B is 
designed to provide instruction for preparing an FTA application, 
developing an award budget, and information regarding an approved award 
budget. The appendix covers topics during the pre-application stage, at 
application submission, for developing an award budget, executing award 
approvals, a recommended application checklist, and examples related to 
award management.
 Appendix C: Post-Award Modification
    [cir] This appendix was added as a compilation of guidance 
previously provided across the program circulars. Appendix C has 
clarifications for common post-award changes. Post-award changes are 
primarily made through a revision to the award budget, an 
``administrative'' amendment, or an amendment. The appendix provides 
enhanced guidance on the requirements for prior approval from FTA and 
more information on when either a budget revision, administrative 
amendment, or amendment is appropriate.
 Appendix D: Real Estate Acquisition Management Plan
    [cir] The updates include minor reorganization of information to 
clarify elements of a Real Estate Acquisition Management Plan.
 Appendix F: Rolling Stock Status Report
    [cir] Updates have been made to the list of elements included in 
the Rolling Stock Status Report to better align with requirements 
listed in the body of Chapter IV. FTA proposes minor edits to reflect 
changes made to the subsection ``Replacements at the End of the Minimum 
Useful Life.''
 Appendix G: Equipment Disposition Scenarios
    [cir] The appendix has been added to consolidate the equipment 
disposition scenarios previously provided within the body of this 
circular and the circulars that would be superseded by this circular.
 Appendix H: Cost Allocation Plans
    [cir] Clarifications have been made to the Submission Requirements 
subsection to incorporate 2 CFR part 200 reference.
    [cir] A section ``Cost Allocation Plan Review and Approval'' has 
been added which consolidates the requirements for recipients to submit 
their Cost Allocation Plan for review and approval.
 Appendix I: Indirect Cost Rate Proposals
    [cir] Clarifying edits have been made throughout to enhance 
guidance surrounding the requirements for preparation, submission, and 
FTA approval of Indirect Cost Rate Proposals.
    [cir] References to applicable 2 CFR part 200 requirements have 
been incorporated.
    [cir] Cost Allocation Plan information has been moved incorporated 
into Appendix H.

Closing

    After a review and consideration of the comments provided on the 
updates proposed, FTA will publish the updated Award Management 
Requirements circular (C 5010.1) on its website. On October 5, 2023, 
the Office of Management and Budget (OMB) published a notice of 
proposed rulemaking (NPRM) in the Federal Register to revise 2 CFR part 
200 and other OMB guidance for grants and agreements (88 FR 69390). FTA 
intends to incorporate any changes in 2 CFR part 200 to the extent OMB 
issues the final rule before FTA publishes the updated circular.

Nuria I. Fernandez,
Administrator.
[FR Doc. 2024-03044 Filed 2-13-24; 8:45 am]
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