WPC i+APޒQ{Q(f6Ў/ÈxppݟoGh@h񯁈/6z9~6bn/'ʂ|qjTd>i#Rx.sXwT:Q&HxLIQ!ZkmS0PɷPA\ϩpw-:x@W" U:/х;2-.Xc+bװHA-$r du&duYt , ]B Me{h+d^Q2j9&V8nTZ]GdFЗ BO.5+H[DC25[ސ1VP1j`衫JitU^ Ua[gdg{ -jw¡1uiZՖ*vˍw 0%&P 0Q 0Q 0R 0S 0T 0U 0iV 0BW 0X 0X 0Y 0Z 0v[ 0F\ 0] 0] 0^ 0h_ 0C` 0a 0a 0b 0c 0]d 0&e 0e 0Ufg 0\g#pgUdN9j %jMj(jNj^ jwj4jj mj 0Yj 0Qk 0Dk 1u5lfl 0Nl 72l 0c,m 1um 72n 0Bw6n 0Bn 0B7o 0Bo 0Bp 0BRq 0B-r 0BDs 1?`t 72tauf/ua1uaEufYua[u2ou8u.ujvfqvfsvauvfvavfv 0vU@~w 0xwf6xa8x 0Lxf yf yayf#ya%y B9yaVyfjyaly 0<yayU>yfzaz 0B$z 0xfz D5z 0{ 0{ 0| 0,} 0x} B-K~ax~ 0~ 0- 0 0 0R 0ł 0l 0 0 0= 0̅ 0S 0 0ׇf 0 0' 0ʼnf]a_ 0sffa a 01 AS 0D֌֌֌ 0ZZRRRRRRRRR؎؎؎؎؎؎؎؎uuU@```U>GҙҙҙҙҙךpU>@ʢʢ U@ߦ««U@A­­U@wCCU@U@mU>QQU>ff 04 0 ؾJȿ 0 0 B+( 1US 1UU ,U>))ggU622U@#_U@]]]]]]]]]]]2G+J 0_level1  X /%4 4 <DL/23  ..  2( 4 <DL2  2D+J 0_level2   ," <DL,23  ..  2( 4 <DL2  2A+J 0_level3   ) <DL)23  ..  2( 4 <DL2  2>+J 0_level4  ` &<<DL&23  ..  2( 4 <DL2  2;+J 0_level5   #DL#23  ..  2( 4 <DL2  28+J 0_level6    DL 23  ..  2( 4 <DL2  25+J 0_level7  h DDL23  ..  2( 4 <DL2  22+J 0_level8   L23  ..  2( 4 <DL2  2/+J 0_level9    L23  ..  2( 4 <DL2  2GJ 0_levsl1  X /%4 4 <DL/23  Ԁ  2( 4 <DL2  2DJ 0_levsl2   ," <DL,23  Ԁ  2( 4 <DL2  2AJ 0_levsl3   ) <DL)23  Ԁ  2( 4 <DL2  2>J 0_levsl4  ` &<<DL&23  Ԁ  2( 4 <DL2  2;J 0_levsl5   #DL#23  Ԁ  2( 4 <DL2  28J 0_levsl6    DL 23  Ԁ  2( 4 <DL2  25J 0_levsl7  h DDL23  Ԁ  2( 4 <DL2  22J 0_levsl8   L23  Ԁ  2( 4 <DL2  2/J 0_levsl9    L23  Ԁ  2( 4 <DL2  2GJ 0_levnl1  X /%4 4 <DL/23   2( 4 <DL2  2DJ 0_levnl2   ," <DL,23   2( 4 <DL2  2AJ 0_levnl3   ) <DL)23   2( 4 <DL2  2>J 0_levnl4  ` &<<DL&23   2( 4 <DL2  2;J 0_levnl5   #DL#23   2( 4 <DL2  28J 0_levnl6    DL 23   2( 4 <DL2  25J 0_levnl7  h DDL23   2( 4 <DL2  22J 0_levnl8   L23   2( 4 <DL2  2/J 0_levnl9    L23   2( 4 <DL2  *+ (_2623  ..3|P(4а$..      HP LaserJet 5,,,,0(9 Z6Times New Roman Regular XuE3  \3" U64Hyperlink    (P(3T$ а!..           0  (#$  0  1456789:y*3MQUY]aeiBullets List(O$-;(;3$2#  0  .3  0  3#37=CIQYag1.a.i.(1)(a)(i)1)a)2i)(O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(#({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#0p(#(#2#     )3  0p(#p(# 1456789:xAGaeimquy}Bullet ListBullets List<;TABLE B`NTABLE ATABLE KTABLE Bhttp://www.arnet.gov/farhttp://www.ftahelpline.com/http://www.fta.dot.govhttp://www.fta.dot.gov/library/admin/psrg/cover.htmlPTABLE CTABLE D1*D+D (_25   ," <DL,23  ..," <DL,   (mK Z(Times New Roman (P3$ а!..       $`TABLE L*5+5 (_24  ) <DL)23  ..) <DL)  (TABLE ETABLE F dTABLE G}TABLE M<:Default ParaTABLE A\  `&Times New RomanLTABLE H<:footnote ref(P3$ а!..       YYYY)!dxdx*2+2 (_23 ` &<<DL&23  ..&<<DL& ` */+/ (_22  #DL#23  ..#DL#  *,+, (_21   DL 23  .. DL  *)+) (_20 h DDL23  ..DDL h (P3$ а!..       )Hairline dTABLE O*&+& (_19  L23  ..L  *#+# (_18   L23  .. L  *>> (_17  2( 4 <DL223  Ԁ2( 4 <DL2  *DD (_16   ," <DL,23  Ԁ," <DL,   *55 (_15  ) <DL)23  Ԁ) <DL)  ӁLevel 1Level 2Level 3Level 4Level 5*22 (_14 ` &<<DL&23  Ԁ&<<DL& ` *// (_13  #DL#23  Ԁ#DL#  *,, (_12   DL 23  Ԁ DL  *)) (_11 h DDL23  ԀDDL h *&& (_10  L23  ԀL  (## &_9   L23  Ԁ L  (>> &_8  2( 4 <DL223  2( 4 <DL2  (DD &_7   ," <DL,23  ," <DL,   (55 &_6  ) <DL)23  ) <DL)  H(22 &_5 ` &<<DL&23  &<<DL& ` (// &_4  #DL#23  #DL#  (,, &_3   DL 23   DL  lTABLE E()) &_2 h DDL23  DDL h !%    `  1.3.3.9  TransitOrientedJointDevelopmentProjects(7/02) A)$"&    `  1.3.3.100  DispositionofSurplus(10/)'* #'##   0 `  1.3.3.110` #` #OperatingAssistance,PreventiveMaintenance,_CMAQ_ +#(##   0 ` 0 ` #` #0 # #and_JARC_ԀProjects(11/03)+$)##    `  1.3.3.12  ECommerce(6/03) ,%* + X,XX +  .', _ 1.1ASSISTANCE,GUIDANCEANDREQUIREMENTS   ThetopicsaddressedbythisManualaredevelopedaccordingtoastandardizedformat,which  consistsofthreeparts:(1)Requirements,(2)Discussionand(3)BestPractices.   *BYCddd Xdd Xdd X##, dd +   ~ ~  REQUIREMENT    Wherearequirementexistsinthethirdpartyprocurementregulationswhichgranteesmust y \ follow,atableentitledREQUIREMENTwillsetforththepertinentsectionsoftheFTA _B Circulars,theMasterAgreement(MA),theCodeofFederalRegulations(CFR's)oranFTA E(  DearColleagueLetter.Whenthereisamandatoryrequirementitwillbeclearlysetforthas +  such.     DISCUSSION    Followingthestatementoftherequirement,orifthereisnorequirementassuch,therewill   beadiscussionsectiongivingsomedefinitionandguidanceconcerningthemeaningor  purposeofthetopicbeingpresented.  BestPractices qT  InthosesituationswheretheFederalorgranteepracticeshaveproventobeeffective,theManual =  willpresentthesebestpracticesfortheassistanceandguidanceofthegrantee.Theprocedures # andpracticespresentedarenotmandatoryunlesssoidentified.Thesebestpracticesaremeantto   beinformativeandhelpfultothegranteecommunity.Theyareofferedfortheguidanceand  assistanceofthegrantee,butitisalsorecognizedthatagranteemayhaveauniquesituationthat  precludesitfromadoptingtheproceduresofanothergranteeinacertainarea.   1.1.1  FTACircular4220.1E   j ThisCircularsetsforththerequirementsagranteemustadheretointhesolicitation,awardand S"6 administrationofitsthirdpartycontracts.TheCircularcontains54mandatoryprocurement 9# standardsthatgranteesmustmeetintheirprocurementoperations.These54standardsareset $ forthinAppendixB.19MandatoryProcurementStandardsWorksheet.The"Worksheet" %  providescrossreferencestospecificparagraphsintheCircularwherethestandardsmaybe %! found,andacolumnforgranteestocrossreferencethestandardstotheirownpoliciesand &" procedures.Granteesareencouragedtoreviewtheirwrittenprocurementpoliciestoensurethat ' # theycovereachofthe54mandatorystandards. (!$ TherequirementsoftheCirculararebasedonthecommongrantrulesfoundat49CFRPart18 i*L#& (StateandLocalGovernments)and49CFRPart19(InstitutionsofHigherEducation,Hospitals, O+2$' andOtherNonProfitOrganizations),andtheFederalTransitLaws.TheBestPractices 5,%( ProcurementManualwillstatetherequirementsofthisCircularwherevertheypertaintoatopic -%) beingcoveredbytheManual.SincethisCircularisupdatedperiodically,granteesmustensure .&* thattheyconsultthelatesteditionoftheCircular. .'+  /(, _ThisCircularreplaces4220.1Ddated41596andChange1,dated8498.TheCircular  incorporatespolicyupdatescontainedinseveralDearColleaguelettersissuedsince1996.   AnnotatedCircular󀄀FTAhasalsopublishedanannotatedversionofthisCircularwith   interpretivecomments.Thesecommentsweredevelopedtohelpavoidincorrectinterpretationsof   theCircularthathaveevolvedovertime.ThecommentsexplainwhatFTAbelievesthelawand  ~ regulationsconveyedthroughtheCircularactuallyrequireofitsgrantees.Asapplicablelaws,  d regulationsandcontractingpracticesevolve,FTAwillusetheannotatedCirculartoconveyits g J viewstoFTAgranteesandthetransitindustryasawhole.Aschangesaremadeinthecomments, M0 adatewillbeinsertedwiththechangetonotifythereaderofwhenthechangewasmade.The 3  AnnotatedCircularisavailableonlineat:# XXXOXm#<( 4 <DLX<_XXX Xwww.fta.dot.gov/ftahelpline/fta_c4220_1E.doc.   # XXX_X[$#OXXX X 1.1.2  FTAWaiversandApprovals    GranteesarerequiredtoprocesstheirrequestsforwaiversandapprovalsrequiredbyCircular   4220.1EthroughtheirregionalFTAoffices.TheregionalFTAofficeswillinstructgranteesas z  totherequiredcontentandformatoftheserequests.TheFTAAdministratorhasestablishedthe }` FTAsignatorylevelsforgrantingwaivers,andfortheapprovalofactionswhichrequireFTA cF approvalintheCircular,asfollows: I,   AuthoritytograntwaiversAdministrator    AuthoritytograntapprovalsAssociateAdministratorforAdministration  Waiverspertaintothosethirdpartycontractactionswhichagranteeisnotauthorizedtotake  undertheCircular,butforwhichFTAhasauthoritytomakeexceptions. v Approval/disapprovalcoversthirdpartycontractactionswhichagranteeisauthorizedtotake _B undertheCircularonlyafterreceivingFTAapproval.Anexamplewouldbetheuseofadvance E ( paymentsforanindividualprocurement. +!  1.1.3  MasterAgreement  " TheFTAMasterAgreementcontainsstandardtermsandconditionsgoverningtheadministration $! ofaProjectsupportedwithFederalassistanceawardedbytheFTAthroughaGrantAgreement %" orCooperativeAgreementwiththeRecipient.TheFTAMasterAgreementisupdatedannually &r# atthestartofeachfiscalyear(October1)andpublishedontheFTAwebsite. ,#  1      TheMaster u'X $ AgreementcontainsprocurementrequirementsthatmaybereferencedintheBestPractices [(>!% ProcurementManual. A)$"&    +#( 1.1.4  FederalAcquisitionRegulation(FAR)   ThisManualwillfrequentlycontainreferencestotheFAR.Thesereferencesare,withone  exception,alwaysforinformationpurposesandarenotintendedtosuggestthatgranteesmust   followtheFAR. ,#  2      NeithergranteesnortheircontractorsarerequiredtofollowtheFAR.The   FARcitationsaregiveninordertoinformgranteeshowtheFederalgovernmenttreatsa  ~ particularissuebuttheFederalpracticesarenotbindingongrantees.  d TheFederalAcquisitionRegulationisavailableatthefollowinginternetaddress: M0 4D/O  5  http://www.arnet.gov/far6V0/Oj0   7x 0. 3   1.1.5  FTADearColleagueLetters    TheFTAAdministratorperiodicallyissuesDearColleagueLetterstotheFTAgrantee   community.WhentheselettersaffectgranteeprocurementoperationsbyimposingnewFTA   requirementsorclarifyingearlierFTApolicystatements,theManualwillbeupdatedtoreflect z  thenewDearColleagueLetter.ThoseLettersthataffectgranteeprocurementoperationsare }` containedinAppendixA.2oftheManual. cF  1.1.6  LocatingFTADocuments  h      p      / TheFTAHelpLinewebsite(see1.1.8below)containsalinktoimportantFTAdocuments,such  asCirculars,DearColleagueLetters,etc.YoumayaccessthesedocumentsbyusingtheOnline  Tools&ResourcestabatthefollowingInternetaddress:4rc/O  5  www.fta.dot.gov/ftahelpline/index.htm615/OE5ar.  7rc"s5.4E$#/O  5  65/O6   7$#?6Ԁ  YoumayalsoaccessFTAdocumentsattheFTAwebsiteaddress:4F/O  5  http://www.fta.dot.gov66/O 7   7 97Ԁunder  the granteepagetab. v  1.1.7  FTAProcurementSystemReviews(PSRs)  _B FTAconductsperiodicreviewsofitsgranteesprocurementsystems.Thesereviewsare +! conductedinaccordancewiththeGuideforProcurementSystemReviewswhichFTAhas " developedinordertoevaluatethegranteescompliancewiththerequirementsofFTACircular " 4220.1E.GranteesnowhaveaccesstothisGuideandcaneffectivelyevaluatetheirown #  procurementsystemscompliancewith4220.1EusingtheGuide.SectionIII.2oftheGuide $! containschecklistsforeachtypeofcontracttobereviewedaswellasfortheprocurementsystem %" wideelementsthatFTAalsoevaluates.TheGuideisnowavailableontheInternetatthe &r# followingFTAwebsiteaddress:O'XOXwww.fta.dot.gov/grant_programs/fta_oversight/4022_8480_ENG_HTML.htm4G"/O  5  6;/O<   7"5<. u'X $ #OXXO';#   A)$"& BestPractices   AuditFollow-UpandTrackingSystem-Granteesshouldconsideradoptingatrackingsystemfor  followinguponthefindingsgeneratedbyFTAProcurementSystemReviews(PSRs),FTA   TriennialReviews,andotherpublicauditsorinternalauditsconductedbytheagency'sown   managementstaff.TheLosAngelesCountyMetropolitanTransportationAgency(LACMTA)  ~ hasdevelopedanin-house,MSAccess-baseddatabasetomanageauditfindingsandtrack  d correctiveactionstoensuretheyareimplementedasproposed.Thistrackingsystem-the g J FindingsandRecommendationsManagementSystem(FARMS)-isacentralrepositoryforall M0 audits,findings,recommendations,auditresponses,proposedcorrectiveactions,andaudit 3  follow-upandclose-outinformation.Informationcanbesortedinavarietyofwayssuchasby   executivearea,auditsource,findings,dates,orrecommendationstatus(e.g.,open,closed).   Ticklerreportsareroutinelyroutedtoinformappropriatepartiesofapproachingormissed   deadlinesandquarterlyreportsofimplementedactionsareroutedtomanagement.Thissystem   enablestheagencytotrackwhoproposedtodowhatbywhen.Thesystemisespeciallyvaluable   whenagencymanagementchanges(usuallywithvotingcycles)andincomingmanagersneedto z  bemadeawareofcommitmentsmadebytheirpredecessors.LACMTAhasseenanumberof }` benefitsfromtheirtrackingsystem: cF "13"  r'rXXX'13C2A3  0    Minimizeslikelihoodofrecurringfindingsthatcanleadtofines,scheduledelays,fraud, / waste,orabuse.13C?D݌## Ќ   <1456789:;(Axy<1456789:;"13"  13E2A3  0    AssuresManagementcorrectiveactionhasbeentaken.13EE݌## Ќ  "13"  13F2A3  0    Maximizesauditvaluebytrackingeachfindingandrecommendationthroughresolution.  13FF݌ ## Ќ  "13"  13G2A3  0    AutomaticallycompilesLessonsLearnedandBestPracticesandgreatlyenhances y\ reportingoptions.13GG݌_B## Ќ   <1456789:;(Axx<1456789:;HEr D+ XrXXD+LACMTAhasagreedtomaketheirsystemavailabletoanyagencythatwishestoimplementan +! auditfollow-upandtrackingsystemcapability.  ,#  3       "  1.1.8  FTAHelpline  #  FTAhasinitiatedaThirdPartyProcurementHelpLinetoprovideameansforFTAcustomersto %" getanswerstotheirprocurementquestions.Thegoalistoanswerquestionswithin48hoursof &r# receivingthem.ThewebsitealsocontainsatopicalindextoFrequentlyAskedQuestionsand u'X $ helpfullinkstoimportantFTAdocuments,theFAR,theBPPM,etc.TheInternetaddressis: [(>!% 4st/O  5  www.fta.dot.gov/ftahelpline/index.htm.6L/OL  7stM A)$"&     +#( 1.1.9  ProcurementSystemSelfAssessmentGuide   FTAhasdevelopedaProcurementSystemSelfAssessmentGuideforgrantees.ThisGuideis  providedforassessingthoseparticularareasofprocurementthathavehistoricallybeenthemost   problematic,asdeterminedbyoversightreviewsoftransitagencyprocurementsystems(the   ProcurementSystemReviewsconductedbyFTA).TheGuidediscussesthetoptenareasof  ~ deficiencyconsistentlyfoundduringtheProcurementSystemReviews.ThisGuidemaybe  d accessedonlineat:4 /O  5  www.fta.dot.gov/ftahelpline/Cover_SelfAssessment_Guide.htm6P/OPf  7 P. g J   1.2IDENTIFYINGACONTRACT  3  AsdefinedbytheFederalAcquisitionRegulation,a"contract"meansamutuallybindinglegal   relationshipobligatingthesellertofurnishthesuppliesorservices(includingconstruction)and   thebuyertopayforthem.Contractswouldincludebilateralinstruments,awardsandnoticesof   awards;jobordersortaskassignmentlettersissuedunderbasicorderingagreements;letter   contracts;orders,suchaspurchaseorders,underwhichthecontractbecomeseffectivebywritten z  acceptanceorperformance;andbilateralcontractmodifications.Contractsdonotincludegrants }` andcooperativeagreements. ,#  4       cF Thepartiestoacontractmustpossessthelegalcapacitytoenterintothecontract,andtheymust / assenttothetermsofthecontract.Thetermsoftheagreementmustnotrequiretheperformance  ofanillegalactbytheparties.Contractsmaybeeitheroralorwritteninform.Thesubject  matterofacontractdetermineswhichprimarylawapplies.Generally,CommonLawrulesapply  forcontracts.However,theUniformCommercialCode(UCC)Article2applieswhenthe  contractisforthesaleofgoods.   1.2.1Offer,Acceptance,Consideration  y\ Offer,acceptanceandconsiderationarethreeessentialelementsofacontract. E ( Offer󀄀Theoffertoenterintoacontractcanbemadebyeitherpartytothecontract.Inthird " partycontracting,theofferisnormallymadebythecontractor.Thegranteeissuessolicitations " forofferseitherbyanInvitationforBid(IFB)oraRequestforProposal(RFP).Theofferis #  madewhenthecontractorsubmitsasignedbidorproposalinresponsetothegrantee's $! solicitation.Insmallpurchases,however,therolesarereversed.Thegranteeissuesapurchase %" order,whichisanoffer,tobuysuppliesorservicesataspecifiedprice(usuallyobtainedbya &r# RequestforQuotationthatthegranteehasissuedearlier). u'X $ Thepartytowhomtheofferismade,theofferee,mayaccepttheofferuntilitisterminatedby A)$"& theofferor.Terminationofanoffercanoccurinoneofmanydifferentways: '* #' *,XX XX*   +#( "13"  94 X,XX X913p\2A3  0 4   Expiration.Theofferisnotacceptedwithinthespecifiedtimeperiodorwithina  reasonabletime,ifnotimeperiodisstated.Theoffereemayagreetoextenditsoffer  beyondthespecifiedtimeperiodwithoutanychangesorqualifyingtermstoitsoffer.13p\\݌4#4# Ќ  "13"  13^2A3  0 4   Revocation.Theofferormaywithdrawtheoffer.Thewithdrawaliseffectivewhen   receivedbytheofferee.Generally,therevocationmayoccuratanytimepriorto  ~ acceptancebytheofferee.13^^݌ d4#4# Ќ   <1456789:;(Ayx<1456789:;"13"  13`2A3  0 4   Rejection.Theoffereemayrejecttheoffer,andtherejectioniseffectivewhen M0 receivedbytheofferor.13``݌3 4#4# Ќ   <1456789:;(Axy<1456789:;G` <1456789:;(Ayx<1456789:;"13"  13c2A3  0 4   Counteroffer.Theoffereeproposesnewterms,notaninquiryregardingthe   possibilityofnewterms.Theofferee'scounteroffertotheofferoriseffectivewhen   receivedbytheofferor.13c0c݌ 4#4# Ќ   <1456789:;(Axy<1456789:;b <1456789:;(Ayx<1456789:;"13"  13e2A3  0 4   Death.Theofferisterminatedwheneithertheofferororoffereedies.However,the z  offerpassestothepersonalrepresentativeoftheofferee'sestateinanoptioncontract.13ee݌}`4#4# Ќ   <1456789:;(Axy<1456789:;$e <1456789:;(Ayx<1456789:;"13"  13'h2A3  0 4   Illegality.Theofferisvoidifthesubjectmatterisillegal.13'hTh݌I,4#4# Ќ   <1456789:;(Axy<1456789:;g <1456789:;(Ayx<1456789:;"13"  13$j2A3  0 4   Destruction.Theofferisterminatedifthesubjectmatterisdestroyed.13$jQj݌4#4# Ќ   <1456789:;(Axy<1456789:;iAcceptance󀄀Theoffermustbeacceptedunequivocally.Theoffereemustaccepttheoffer  withoutchangingorqualifyingthetermsoftheoffer.Ifthetermsarechanged,theofferis  rejectedandacounterofferismade.Thisterminatestheoriginaloffer.  Theoffermaybeacceptedbyanyreasonablemeansofcommunication(i.e.,fax,telephone,etc.) y\ unlesstheofferorindicatesaspecificmethodofacceptance.Asageneralrule,theacceptanceis _B effectivewhenmailedbytheofferee,exceptwheretheofferorspecifiestheacceptancemustbe E ( receivedbyaspecificdateandtime. +! Granteeprocurementsinvolvetwoprocessesforacceptanceofoffers.Whenthegranteehas " issuedanIFBorRFP,acceptanceoccurswhenthegranteeassentstothetermsmadebythe #  bidderorofferorinitsbidorproposal.Thegranteeacceptstheofferbysigningthecontractand $! issuingtheofferoranoticeofaward.Forsmallpurchasesthecontractoracceptstheoffermade %" bythegranteeinitspurchaseorderbyeithersigningtheorder(contract),ifsorequiredbythe &r# purchaseorder,orbyactuallyperforminginaccordancewiththetermsofthepurchaseorder. u'X $ Consideration󀄀Eachpartymustgiveconsiderationforanagreementtobeacontract. A)$"& Considerationexistswhensomethingofvalueisgivenupinabargainedforexchange.The '* #' followingmustexist:  +#(  <1456789:;(Ayx<1456789:;"13"  13r2A3  0 4   Legalbenefit.Someonereceivessomethingtheyhadnopriorlegalrighttoreceive.13rs݌,%*4#4# Ќ   <1456789:;(Axy<1456789:;[r  -&+  <1456789:;(Ayx<1456789:;"13"  13u2A3  0 4   Legaldetriment.Someonegivesupsomethingtheydidnothavetorelinquish.This  detrimentdoesnothavetoinvolveatangibledetriment,onlyalegaldetriment.13u!% Subrecipient󀄀AnyentitythatreceivesFederalassistanceawardedbyanFTArecipientrather  thanfromFTAdirectly.Theterm"subrecipient"alsoincludestheterm"subgrantee,"butdoes  notinclude"thirdpartycontractor"or"thirdpartysubcontractor." ,#  7         DISCUSSION   Itisimportanttodeterminewhetheryouragencyisarecipientorsubrecipientsoasto  d determinewhatthirdpartycontractingrulesundertheCircularand49CFRParts18and g J 19(the"commongrant"rules)areapplicabletoyourprocurements. M0 WhatThirdPartyContractingRequirementsUnder49CFRParts18and19andFTA   Circular4220.1EareApplicabletoRecipientsandSubrecipients?   Section15oftheMasterAgreementcontainstherequirementstocomplywithapplicable   procurementstandardsof49CFRPart18.36(state,local,andtribalgovernments)or49   CFRPart19.40through19.48andAppendixA(hospitals,nonprofits,andinstitutionsof z  higherlearning).Forpurposesofthisdiscussion,itisimportanttorecallthat"recipient" }` includes"grantee,"and"subrecipient"includes"subgrantee"otherthanthirdparty cF contractorsandsubcontractors. I, Paragraph4oftheFTACircular4220.1Eoutlinesfourdistinctrulesrelatingtothe  applicabilityoftheprocurementrequirementstorecipients/granteesorsubrecipients/  subgrantees:  9,X, X4 X9  0   1.  IfatransitauthorityisbothadirectrecipientofFederalfundsandasubrecipientof  aState,theStatemaypermitthetransitauthoritytofollowtherequirementsofthe v CircularinsteadofStateprocurementrequirements,althoughitisnotobligatedtodo y\ so.Ifyourtransitauthorityisinthissituation,makesurethattheprocurement _B requirementsyouareobligatedtofollowforFederallyassistedprocurementsare E ( clearlystated,preferablybyboththeStateandFTA.+!## 0  0##  2.  Whena"State"O ,#  8      procurespropertyorservicesunderagrantorcooperative " agreementwithFTA,itwillfollowthesameprocurementpoliciesandproceduresit #  usesforprocurementsusingnonFederalfunds.Statesmust,however,complywith $! therequirementsofparagraphs8.a(FullandOpenCompetition)andb(Prohibition %"## 0  0##AgainstGeographicPreferences),and9.d(ProcurementofArchitecturaland  EngineeringServices(A&E))oftheCircularandmustincludeinallpurchaseorders  andcontractsexecutedbyit,orasubgranteeusingFederalfunds,allclauses  requiredbyFederalstatutes,executiveordersandtheirimplementingregulations.   Subgranteesofa"State"(exceptasindicatedinsubparagraph(4)below)shallfollow   Statelawandprocedureswhenawardingandadministeringcontracts. ~## 0  0##  3.  ForthepurposesofthisCircular,regionaltransitauthoritiesarenotStateagencies g J orinstrumentalities.M0## 0  0##  4.  SubgranteesofStateswhichareinstitutionsofhighereducation,hospitalsorother   nonprofitorganizationsandallotherFTArecipients/granteeswilladminister   contractsinaccordancewiththerequirementsoftheCircular.Granteesand   subgranteesthatfallwithinthiscategoryshallusetheirownprocurementprocedures   thatreflectapplicableStateandlocallawsandregulationsprovidedthatthe   procurementsconformtoapplicableFederallaw. ,#  9      z ## 1.3.2FederalContractualSphere cF  *lIYJdddd BYC##l,xdd +  //  REQUIREMENT  v "...theRecipientagreestoincludeappropriateclausesineachthirdpartycontractstatingthe   thirdpartycontractor'sresponsibilityunderFederallaw,regulation,ordirective,includingany  necessaryprovisionsrequiringthethirdpartycontractortoextendapplicablerequirementsto  itssubcontractorstothelowesttiernecessary."    MasterAgreement,2.e.(2)(a). n ۬"ThisCircularappliestoallFTAgranteesandsubgranteesthatcontractwithoutsidesources W : underFTAassistanceprograms.FTAgrantrecipientswhoutilizeFTAformulafundsfor =!  operatingassistancearerequiredtofollowtherequirementsofthisCircularforalloperating #" contracts.Theserequirementsdonotapplytoprocurementsundertakeninsupportofcapital  # projectscompletelyaccomplishedwithoutFTAfundsortothoseoperatingandplanning #  contractsawardedbygranteesthatdonotreceiveFTAoperatingandplanningassistance." $!   FTACircular4220.1E,Paragraph4. &# ̯"Projectmeansactivityoractivities(taskortasks),listedintheProjectDescription,the m(P!% ApprovedProjectBudget,andanymodificationsstatedintheConditionstotheGrant S)6"& AgreementorCooperativeAgreementapplicabletotheproject." 9*#'   MasterAgreement,1.l.",$)   "P -%) Thereareseveralaspectsofyourgrantagreementwhichtogetherestablishthesphereof  procurementstowhichFederalrequirementsmayapply.Ingeneralyoumayundertakecapital  projectswhollywithoutFederalfunds,andbeconfidentthatyourgrantagreementswillnot  affectthoseprocurements.However,Federalgrantrequirementsapplytomanycontractsin   additiontothecontractsbetweenyouandyoursuppliersforwhichyouintendtodrawdown   Federalpayments.Generally,theconceptisthatsolelybecauseofthereceiptofFederalfunds  ~ byagrantee,certainclausesandfederalrequirementsarerequiredtobeincludedincontracts  d withinthecontractualsphere.Therearefourprocurementcontextstowhichtheconceptis g J important: M0 6,XX4` X,X, X6  1. 4 Thegeneral"flowdown"ofFederalrequirementsincontracts;     2.0 4 TheinclusionofallFederalrequirementsifthetransitpropertyreceivesoperating   assistance; 4#4#   3. 4 TheinclusionofallFederalrequirementsinallelementsandactivitiesiftheoverall z  0  04##   4 capitalproject(asdefinedinafullfundinggrantagreement)includesFederalfunds; }` and,   cF4#4#   4. 4 Theconceptofa"minimaloperablesegment." / Theseconceptsarehighlightedbelowsoyoucanbeawareoftheminyourcapitalproject  planningandprocurementplanningprocesses.EachFederalrequirementhasapplicability  criteriaderivingfromstatute,regulation,orpolicy.Thesphereofcontractstowhichthe  requirementsapply,iftheyareotherwiseapplicable,isaffectedbythesefourconcepts:  6,XX4 X,XX4` X6  1.0 4 FlowDown󀄀Perhapstheeasiestdeterminantofthespheretovisualizeistheconcept y\ of"flowdown."Federallyrequiredclausesandrequirements,asageneralrule,are _B requiredtobeincludedineachthirdpartycontractateverytierandineach E ( subrecipientagreementateverytier. ,#  10      Whenclausesarerequiredtoflowdown,the +! clausesandrequirementsflowdowntoalllevelsoftheFederalfundingchain " beginningwiththegrantee."4#4#   2.0 4 InclusionofFederalRequirementswhenReceivingOperatingAssistance󀄀Thesecond $! exampleofthesphereinvolvesgranteesreceivingoperatingassistance.Inthis %" instance,allgranteeprocurementsexceptforcapitalprojectsundertakenwithout &r# Federalfunds,mustincludealloftheFederalrequirementsthatwouldbeincludedif u'X $ theoperatingbudgetwerefullyFederallyfundedandmustcomplywiththeCircular.5 ,#  11       [(>!% FTAmaintainsthatonedollarofFederaloperatingassistanceconvertstheoperating A)$"&4#4#   0 4 fundsofthetransitpropertysothatallsuchfundsofthepropertythereforebecome  subjecttoFederalrequirements.Therulesonthisdimensionofthesphereareclear  ifyoureceiveoperatingassistance,therequirementsoftheCircularapply,evenifyou  donotintendtousethatassistanceinsupportofanyprocurementaction(e.g.,you   intendtoapplyalltheoperatingassistancetopaysalariesofyourdirecthirebus   operators). ~4#4#   3.0 4 InclusionofFederalRequirementsinFederallyFundedCapitalProjects󀄀FTAhas g J recentlytakenthepositionthat,whenacapitalprojectrequiresafullfundinggrant M0 agreement,3 4#4# 9,X,A X,XX4 X9    0 4 0A 4#4#...theFederal'undertaking'inaFullyFundedGrantAgreement(FFGA)will   nolongerbesegmentedintoProjectandLocalActivities.Allactivitiesrelated   toaFederalundertakingwillbeidentifiedastheFederalProject.TheFederal   fundswillbedistributedamongalltheactivitiesintheprojectatalevelfunding   ratioequaltothepercentageofFederalfinancialparticipationintheentire z  project.Thus,alltheelementsandactivitiesoftheproject,asdescribedinthe }` FFGAwillbefunded,inpart,withFederalfunds;and,therequirements cF attachedtotheuseofFederalfundswillapplytoeachsuchtask,unless I, otherwiseexemptedasprovidedintheapplicablelaws,regulationsand / policies. ,#  12      A #A #   0  04##RegardlessofhowlargeorsmallthepercentageofFederalfundingis,whereafull (# 0@(#13  fundinggrantagreementwiththeFTAisexecuted,allelementsoftheproject  identifiedintheagreementarewithinthesphereandmustbeprocuredincompliance  withFederalrequirements.v4#4# 9,XX4` X,X,A X90  04##  4. 4 MinimalOperableSegment󀄀Inthecaseofamultitaskcapitalundertaking,thesphere _B includesasegregableportionoftheundertaking,oraprojectportionthathas E ( independentfunctionalutility.Underthisconcept,FTAandyouragencyidentifya +! segmentoftheoverallundertakingthatrepresentstheminimalsegmentthatcanbe " feasiblyoperatedindependently.ImagineyouareabletoovermatchFederalfundsto " constructabadlyneedednewfuelingstationwith85%stateandlocalmoney.FTA's #  policiesmaynotapplytoeveryrelatedexpenditureofthesestateandlocalfunds,e.g., $! landscapingoranearbytirestoragestructure;however,neitherwillFTAapplyits %" policiestothemathematicallyminimumportionoftheprojectwithnoindependent &r# utility(e.g.,applyingFTApoliciestotheroof,alone);ratheryoumustdefinea u'X $ segregableprojectwithFTAtowhichtheFederalrequirementsapply,andyoumay [(>!% thenhaveadditionallatitudeintheremainingportionsundertakenwithoutFederal A)$"& funds.Thefullfundinggrantagreementwillcoverallofthenecessaryelementsto '* #' buildandoperatethesegmentastationateachendofthesegment,landtobuildthe  +#( stationson,railcarstorunonthesegment,systemstosupporttherailcars,railon +$)4#4#   0 4 whichthecarswillrun,etc.FederalrequirementsoftheCircularapplytoallofthe  individualcontractsrelatingtotheseelementsbecausetheyarepartoftheminimal  operablesegmentandwithintheFederalcontractualsphere. ,#  13      4#4#  1.3.3  TypesofContractActions    DetailsandBestPracticesformeetingtherequirementsforvarioustypesofcontractactionsthat  d aredescribedbelowcanbefoundinothersectionsofthemanual. g J  1.3.3.1Supplies,Services,EquipmentandConstruction  3  *lKYLdddd xIYJ##l,xdd +      REQUIREMENT  cF  FTACircular4220.1Edefinestherequirementsagranteemustadheretointhesolicitation,   awardandadministrationofitsthirdpartycontracts.Suchcontractswouldincludethe   procurementofsupplies,services,equipmentandconstruction.   O,,XOX r  OXX,O, 1.3.3.2  LegalandAssociatedServices   *lUYVdddd xKYL##l,xdd +    REQUIREMENT  H+ TherequirementsofFTACircular4220.1Eapplytotheprocurementoflegalandassociated  services,suchasparalegals,investigators,expertwitnesses,etc.ifFederalfundsarebeing  usedtofundthesecontracts(i.e.,ifreceivingoperatingfundsorifthelegalservicesarefunded q byacapitalgrant). tW O,,XOX Z=  OXX,O,O,,XOX #OXX,O,#DISCUSSION  Asnotedabove,therequirementsofFTACircular4220.1Eapplytotheprocurementof ! legalandassociatedservices,suchasparalegals,investigators,expertwitnesses,etc.if "x Federalfundsarebeingusedtofundthecontractsforlegalservices.FTACircular {#^ 4220.1Ewouldnotapplyifthelegalservicesarefundedentirelywithlocalfunds.The a$D  Circularrequiressuchservicestobeprocuredcompetitively,aswithothertypesof G%*! services.However,theremaybecaseswherethegranteehaspendinglitigationwhich -&" mightbejeopardizedthroughapublicdisclosurewhichwouldresultfromadvertisingthe '# procurementbeforehand.Insuchcasesthegranteemayhavevalidgroundsforlimiting ' $   (!% thecompetitiontothedegreeofnotpubliclyadvertisingtheprocurement.Insuchcasesa  waiverrequestshouldbesubmittedtotheFTA.  1.3.3.3EmploymentContracts    Thesearecontractswithindividualsthatresultinthoseindividualsbecoming employeesofthe  ~ agency.Thesearenot"thirdpartycontracts"withinthemeaningofFTACircular4220.1E,and  d thustherequirementsofthatCirculardonotapplytoemploymentcontracts.Theterm g J  employmentcontractdoesnotrefertoacontractthatretainsaconsultanttoperformtemporary M0 servicesfortheagency.Theindividualretainedontheseconsultantservicescontractsremains 3  anindependentcontractoranddoesnotbecomeanemployeeoftheagency;thusthesecontracts   arenot employmentcontracts,andtheyaresubjecttotherequirementsofFTACircular   4220.1E.    1.3.3.4RealEstateContracts    *lWYXdddd xUYV##l,xd +  }`}`  REQUIREMENT   Requirementsrelatedtotheacquisition,useanddisposalofrealpropertymaybefoundinthe [> followingregulations: A$ 6Fr,N X,XX4` X6 r   9@, XFr,N X9(a)FTACircular5010.1C,GrantManagementGuidelines,ChapterII2RealProperty.    r   ThisCirculardefinestherequirementsoftheFederalTransitLawswhicharecodified   r   at49U.S.C.Chapter53.  =Fr,N X@, X= r   (b)49CFR18.31RealProperty,and49CFRPart24,SubpartBRealProperty f!    r   Acquisition. n  r   (c)MasterAgreementMA(12),Section19. W :  =!    DISCUSSION 9# Theacquisitionofrealproperty,eitherbypurchaseorlease,isnotsubjecttothe %  requirementsofFTACircular4220.1E.Realpropertyisdefinedin49CFR18.3as land, %! includinglandimprovements,structuresandappurtenancesthereto,excludingmovable &" machineryandequipment.Theacquisitionofeasementsandrightsofwayareconsidered ' # realestateacquisitionsandtherequirementsdiscussedhereinpertaintothesetypesof (!$ acquisitions. )f"% Realpropertyacquisition,useanddisposalisalsocoveredbyFTACircular5010.1C, O+2$' ChapterII2;49CFRPart18.31;49CFRPart24SubpartB;andbytheFTAMaster 5,%( Agreement,Section19. ,#  14      Itisimportantthatthegranteebefamiliarwiththerequirements  -%) establishedbyFTAinCircular5010.1C,ChapterII2.Thiscircularestablishes  procedurestobefollowedbygranteesinthefollowingareas:  "13"  132A3  0 4   TheconductofHazardousWasteSiteAssessmentsbeforeacquiringreal   property.13݌ 4#4# Ќ  "13"  132A3  0 4   Theconductofanindependentappraisalbyacertifiedappraiser. x 13݌ d4#4# Ќ  "13"  132A3  0 4   Therequirementforareviewappraisaloftheinitialappraisal.13݌M04#4# Ќ  "13"  132A3  0 4   FTAreviewandconcurrencerequirementsrelatedtothegrantee'soffertobuy   theproperty.13݌ 4#4# Ќ  "13"  132A3  0 4   Incidentaluseofacquiredrealpropertyasameanstosupplementtransit   revenues.13 ݌ 4#4# Ќ  "13"  132A3  0 4   Dispositionofexcessrealpropertybysale,transfertootherprograms,etc.13(݌}`4#4# Ќ  "13 "  132A3  0 4   Therequirementtoprepareanexcesspropertyutilizationplanforallreal I, propertynolongerusedforitsoriginalpurpose.  13,݌/4#4# Ќ  1.3.3.5  InterGovernmentalAgreements,JointProcurements,Piggybacking/Assignments   *l.YAddd xWYX##l,dd +    REQUIREMENT  + FTACircular4220.1E,paragraph7.e.encouragesintergovernmentalprocurements:  6 XFr,N X6  e.0  IntergovernmentalProcurementAgreements.qT<#<# 0  0<#<#(1)0 <#<#Granteesareencouragedtoutilizeavailablestateandlocalintergovernmental =!  agreementsforprocurementoruseofcommongoodsandservices.When #" obtaininggoodsorservicesinthismanner,granteesmustensureallfederal  # requirements,requiredclauses,andcertifications(includingBuyAmerica)are #  properlyfollowedandincluded,whetherinthemasterintergovernmental $! contractorinthegrantee'spurchasedocument. ,#  15      %" <# <#  'j $   0  _(!$## *lYdddd .YA##l,dd +    0  0<#<#(2)0 <#<#Granteesarealsoencouragedtojointlyprocuregoodsandserviceswithother d grantees.Whenobtaininggoodsorservicesinthismanner,granteesmust gJ ensureallfederalrequirements,requiredclauses,andcertificationsare M 0 properlyfollowedandincludedintheresultingjointsolicitationandcontract 3  documents._ ,#  16      _   <# <#  0  0<#<#(3)0 <#<#Granteesmayassigncontractualrightstopurchasegoodsandservicestoother   granteesiftheoriginalcontractcontainsappropriate_assignability_Ԁprovisions.   Granteeswhoobtainthesecontractualrights(commonlyknownas   'piggybacking')mayexercisethemafterfirstdeterminingthecontractprice z  remainsfairandreasonable.  r ,#  17      #}`  <# <# #DISCUSSION y\  Piggybacking󀄀YourAgencymaybeabletotakeadvantageofexistingcontractsawarded E(  byothergovernmentalentitiesforgoodsandserviceswhichyoucurrentlyneed.This + practicehasbecomeknownas piggybacking.PiggybackingisdefinedbyFTACircular  4220.1E,paragraph6.e,asfollows:  0  X   0f## Piggybackingisanassignmentofexistingcontractrightstopurchasesupplies,  equipmentorservices.  ,#  18      f#f#   Theuseofpiggybacking,whichinvolvesassignmentofcontractsorportionsofcontracts uX fromtheoriginalpurchasingagencytoanotheragency,isdiscussedinthe_BPPM_,Section [> 6.3.3Joint_Procurements_ԀofRollingStockand Piggybacking.AppendixB.16ofthe A$ _BPPM_ԀcontainsaPiggybackingWorksheetthatwillassistagranteewishingtopiggyback '  anotheragencyscontracttoworkthroughtheFTArequirementsthatmustbemetin   orderforpiggybackingtobepermissible.  AddingFederalClausestoExistingContracts󀄀FTAspolicyregardingtheadditionof ! FederalclausestoexistingcontractsdistinguishesbetweenStateGSAtypecontractsand  " contractsawardedbyothergrantees.Forexample,intherecentlyissuedCircular4220.1E,  paragraph7.e.(1),FTAallowsgranteestomodifyStateGSAtypecontractsandaddFederally  requiredclausesandcertificationswhenthegranteeissuesthefirstpurchaseorderagainstthe  contract.However,FTAhastakenthepositionthatgranteesmaynotaddFederalclausesand   certificationstotheirowncontractsorthoseofothergranteesinordertopurchaseagainst   thesecontractswithFederalfunds.Therationaleisthat,inaStateGSAtypecontract,the  ~ purchaseorderisthetransitcommunitysinitialworkonthecontract!muchasanybuyoff  d theFederalGSAITschedulewillbewhenagranteechoosestousethisFederalcontract.In g J othercases(liketransitagencyAbuyingofftransitBscontract),thetransituniquerules M0 areinplaceandknownfromthebeginning,thereisnoexpressedintentinthecommon 3  grantrule(aswithStateschedules)tobalancetherulesagainsteachother,anditwould   inferthatatransitagencycouldessentiallyavoidmostFederalrulesbyplacingorders   throughanothertransitagency.Inshort,theintegrityofthesystemwouldbethreatenedby   extendingtheafterthefactoptionbeyondschedulepurchases.   Joint_Procurements_󀄀Youmayalsowishtoplan_procurements_Ԁinadvancewithother z  agenciesorgovernmentalusers,andcompetitivelyawardcontractsthatseveral }` governmentalentitiescandrawupontomeettheirneeds.Suchanapproachwouldcreate cF economiesofscale,reduceprocurementleadtimesinthecaseofbeingabletouseexisting I, contracts,andreduceadministrativeeffortandexpense.Anythirdpartycontracts / resultingfromorutilizedbygranteesunderintergovernmentalagreementsaresubjectto  therequirementsofFTACircular4220.1E.Intergovernmentalagreementsnotinvolving  thirdpartycontractswouldnotbesubjecttoFTACircular4220.1E.Thetopicofjoint  _procurements_Ԁthatmakesuseofadvanceplanningbyseveralagenciesisdiscussedinthe  _BPPM_,Section6.3.3Joint_Procurements_ԀofRollingStockand Piggybacking.  BestPractices y\  Piggybacking󀄀Ifitappearsthattheremaybeanexistinggovernmentalcontractwhichmaybe E ( usedforaspecificneed,youwillfirstwanttoobtainacopyoftheentirecontractandreviewit +! carefullytodetermineifitcontainstheprovisionsrequiredbyFTACircular4220.1E.Thisisan " importantfirststep,becausetherequirementsoftheCircularapplyto_procurements_Ԁmade " throughintergovernmentalcontractsandassignments.Ifthecontractlacksrequiredprovisions, #  youmaybeabletohaveitmodifiedbytheawardingAgencytoincludethenecessaryFederal $! clauses.Amongthestepsyoumaywanttotakearethefollowing: %" 6,X, X X60  1.04##DeterminethatthecontractisstillineffectorcanbemodifiedbytheawardingAgency u'X $ topermitsufficientleadtimetomaketherequireddeliveriestoyourAgency.[(>!%4#4# 0  2.04##Determinethatthespecificationsintheexistingcontractwillmeetyourneeds.'* #'4#4# 0  3.04##Reviewthetermsandconditionscarefullytodeterminethattheyareacceptabletoyou; +$) e.g.,warrantyprovisions,insurancerequirements,etc.,%*4#4#   -&+ 0  4.04##DeterminethattherequirementsneededbyyourAgencywillnotbebeyondthescope  oftheexistingcontract,creatingasolesource(noncompetitive)addontothecontract  whichwillhavetobejustifiedinaccordancewithFTACircular4220.1EParagraph  9.f.Generally,ifyouareworkingwithanindefinitequantitycontractyoushould   havetheneededflexibilitytoorderadditionalquantitieswithouthavinga"new   procurement"actionrequiringasolesourcejustification. ~4#4# 0  5.04##Determinethatthecontractwasawardedcompetitively,eitherthroughsealedbidsor g J competitiveproposals.Ifthecontractwasasolesourceaward,youwillhavetojustify M0 asolesourceawardinaccordancewithFTACircularParagraph9.f.andyourAgency's 3  procurementprocedures. 4#4# 0  6.04##Youarenotrequiredtodoasecondpriceanalysisifonewasoriginallyperformed.   However,youmustdeterminethatthecontractpricesoriginallyestablishedarestill   fairandreasonable.Circumstancesshoulddictatethestepstobetaken.Forexample,   iftheoriginalawardwasmadesometimeago,youmaywanttodoamarketsurvey z  and/orperformpriceanalysistoensurethatthepricesarestillfairandreasonable }` (eveniftheoriginalawardwascompetitiveandapriceanalysiswasperformed cF initially).See_BPPM_ԀSection5.2CostandPriceAnalysisforadiscussionofprice I, analysistechniques./4#4#   7.0 4 Determinethatthecontractorhassubmittedallfederallyrequiredcertificationstothe  awardingAgency;e.g.,BuyAmerica,debarment,restrictionsonlobbying,etc.See  paragraphabove,AddingFederalClausestoExistingContractsand_BPPM_ԀSection  4.3.3.2FederallyRequiredSubmissionswithOffers.4#4#   8.0 4 WorkthroughtheitemsinthePiggybackingWorksheetinAppendixB.16(andy\4#4#   0 4 explainedinSection6.3.3Joint_Procurements_ԀofRollingStockandPiggybackingof _B the_BPPM_).NotethatsomeoftheitemsonthisWorksheetmayoverlapwithitems E ( alreadymentionedabove.+!4#4#   9.0 4 YoushouldprepareaMemorandumfortheRecorddocumentingyouranalysisofthe " variousitemsmentionedabove.ThiswillconstitutetheWrittenRecordof #  ProcurementHistoryrequiredbyParagraph7._i._ԀofFTACircular4220.1E.$!4#4# Joint_Procurements_󀄀Whenitappearsthatyouragencyhasacommonrequirementwithanother &r# governmentaluser,andthatajointprocurementisfeasible,youwillwanttocarefullyconsider u'X $ whetherajointprocurementwillresultinobtainingthebestpriceforallofthepartiestothe [(>!% procurement.Itisquitepossiblethatsubstantialdifferencesintherequirements(delivery A)$"& schedule,quantities,location,etc.)ofonepartytothejointprocurementwillresultinincreased '* #' coststotheotherpartiesandtherebynegateotherbenefitsofajointprocurementsuchaslower  +#( solicitationcosts.Youmustalsodeterminewhetherthedifferentfundingsourceshavedifferent +$) procurementregulations,especiallywherethereareFederalandnonFederalrequirements ,%*   -&+ affectingcontractclauses,etc.Shouldconflictsoccur,granteesshouldconsulttheirrespective  legalcounselsorrequestFTApreawardreviewoftheirprocurement(aspermittedbyFTA  Circular4220.1E,Paragraph5.b).   1.3.3.6  _Subgrants_    *lQYRdddd Y##l,dd +   d d  REQUIREMENT    FTACircular4220.1E,paragraph4,definestheapplicabilityoftheCircularto_subgrants_: _B  l 4.  APPLICABILITY.ThiscircularappliestoallFTAgranteesand_subgrantees_Ԁthat +   l   contractwithoutsidesourcesunderFTAassistanceprograms....   9S4  X,X, X9 S  4 a.0 States.Whenprocuringpropertyandservicesunderagrant,aStatewillfollow   thesameprocurementpoliciesandproceduresthatitusesforacquisitionsthat   arenotpaidforwithFederalfunds.Statesmust,asaminimum,complywith   therequirementsof7m,8aandb,and9eofthiscircularandensurethatevery r purchaseorderandcontractexecutedbyitusingFederalfundsincludesall uX clausesrequiredbyFederalstatutesandexecutiveordersandtheir [> implementingregulations.A$ <# <#  S  4 b.0 AllOtherRecipients._Subgrantees_ԀofstatesandallotherFTAgrantees(to   includeregionaltransitauthorities)willadministercontractsinaccordancewith  thiscircular. <# <# 49_CFR_Ԁ18.37_Subgrants_requiresStatesandallothergranteestoensurethattheir  _subgrantees_Ԁcomplywithcertainrequirements.Theserequirementsarediscussedbelow. n   DISCUSSION  j _Subgrants_Ԁthemselvesarenot"thirdpartycontracts"withinthemeaningofFTACircular S"6 4220.1E,andthustherequirementsofthatCirculardonotapplytothe_subgrant_Ԁawards. 9# However,totheextentthatthe_subgrantee_Ԁcontractswiththirdparties,theFTACircular $ appliestosuchcontractsawardedbythe_subgrantee_. %  All_subgrantees_arerequiredtoincludeintheircontractstheclausesrequiredbyFederal &" statutesandexecutiveordersandtheirimplementinginstructions.See_BPPM_ԀAppendix ' # A.1FederallyRequiredandOtherModelContractClauses. (!$ _Subgrantees_Ԁwhichareinstitutionsofhighereducation,hospitalsorothernonprofit i*L#& organizations,andall_subgrantees_ԀofgranteeswhicharenotStates,arerequiredto O+2$' administertheircontractsinaccordancewithalloftherequirementsoftheFTACircular 5,%( 4220.1EThirdPartyContractingRequirements._Subgrantees_Ԁofstates(excludinginstitutions  -%) ofhighereducation,hospitalsorothernonprofitorganizations)areauthorizedtofollow  statelawandprocedureswhenawardingandadministeringcontracts.  Ifyouareagranteeawarding_subgrants_ԀwithFTAfunds,youwillwanttohavean   overviewsysteminplaceforperiodicreviewsofyour_subgrantees_Ԁtoensurethattheyarein   compliancewiththerequirementsofFTACircular4220.1Eandtherequirementsof49  ~ _CFR_ԀPart18.37.TheFederalgovernmentpractice(FTA)istoperformperiodic  d ProcurementSystemReviews(_PSR_'s)ofitsgrantees,evaluatingtheirprocurement g J activitiesagainsttherequirementsofthecircular.FTAhasdevelopedaProcurement M0 SystemsReviewGuideforitsreviewteams,andyoumaywanttoobtainacopyofthisguide 3  foryourreviewof_subgrantees_.(See_BPPM_ԀSection1.1.7FTAProcurementSystem   Reviewsabove).Youshouldnotethat49_CFR_ԀPart18.37imposesaresponsibilityonall   granteestoensurethattheir_subgrantees_ԀhaveincludedallFederallyrequiredclausesin   theircontractsandthatthe_subgrantees_Ԁareawareofrequirementsimposedonthemby   Federalstatuteandregulation,includingthoserequirementsimposedby49_CFR_ԀPart18.   49_CFR_ԀPart18.37(a)(3)specificallymentionsaresponsibilitytoincludeaclauseinallcost z  reimbursement_subgrants_Ԁthatthe_subgrantee_ԀcomplywithPart18.42,whichdealswith }` retentionandaccessrequirementsforrecords. cF 1.3.3.7EquipmentLeases /  *lTY\dddd QYR##l,dd +    REQUIREMENT  _B Requirementsrelatedtotheleaseofequipmentandfacilitiesmaybefoundinthefollowing  regulations:   S  4 (a)FTACircular4220.1Egenerally,andParagraph7.dwhichrequires,where 4!  n  S  4 appropriate,ananalysisofleaseversuspurchasealternativestodeterminethemost qT  S  4 economicalapproach. W :  S  4 (b)FTACircular5010.1C,GrantManagementGuidelines,ChapterII3(d)Leasing #"  S  4 OutAgreements.Theseguidelinescontainseveralrequirementswhichgranteesmust  #  S  4 incorporateintheirleaseagreements. #   S  4 _(c)_ԀFTAMasterAgreementMA(12),Section16,Leases. %"  S  4 (d)CapitalLea_ses_Ԁ(49_CFR_ԀPart639). 'j $   DISCUSSION )f"% Sinceequipmentleasesareconsidered"thirdpartycontracts"withinthemeaningofFTA O+2$' Circular4220.1E,therequirementsofthatCircularapplytosuch_procurements_. 5,%( FTACircular4220.1Erequiresaleaseversuspurchaseanalysistodeterminethemost -%) economicalapproachtoanygivenprocurement.FTACircular5010.1C,ChapterII3(d),  .&* dealswithmaintenancerequirementsunderleases.TheFTAMasterAgreementreferences  regulationsdealingwithCapitalLeases(49_CFR_ԀPart639).  Leasevs.purchasealternatives󀄀Itisusuallylesseconomicaltoleaseequipmentthanto   purchaseit.However,therearesomeinstanceswherethisisnottrue.Forexample,short   termleasesofequipmentwhichisrequiredforashorttimeorforauniquetaskmaybe  ~ reasonableandeconomicallysound.Itmayalsobeadvisabletoleaseequipmentthat  d undergoesrapidtechnologicalchangesuchaspersonalcomputersandotherITrelated g J equipment.Insomecases,itiseasiertohaveequipmentmaintainedifitisleased.Butlong M0 termleasesandleasesforitemsthatshouldbepurchasedandcapitalizedbutcannotbe 3  becauseofbudgetconstraintsarenoteconomicallyprudent.Ifadecisionismadetolease   equipment,aleasevs.purchaseanalysisshouldbemade.Theanalysisshouldbe   appropriatetothesizeandcomplexityoftheprocurement.Indeterminingwhetherthe   leaseofequipmentisfeasible,thefollowingfactorsmustbeconsidered:    <1456789:;(Ayx <1456789:;"13"  <( XS4  X<13zJ2A3  0    Estimatedlengthoftheperiodtheequipmentisrequiredandtheamountoftime z  ofactualequipmentusage;13zJJ݌}`## Ќ   <1456789:;(Ax y<1456789:;I <1456789:;(Ayx <1456789:;"13"  13L2A3  0    Technologicalobsolescenceoftheequipment;13L,M݌I,## Ќ   <1456789:;(Ax y<1456789:;~L <1456789:;(Ayx <1456789:;"13"  13N2A3  0    Financialandoperatingadvantagesofalternativetypesandmakesof13NO݌## Ќ    equipment;   <1456789:;(Ax y<1456789:;gN <1456789:;(Ayx <1456789:;"13"  13Q2A3  0    Totalrentalcostfortheestimatedperiodofuse;13QBQ݌## Ќ   <1456789:;(Ax y<1456789:;P <1456789:;(Ayx <1456789:;"13"  13S2A3  0    Netpurchaseprice,ifacquiredbypurchase;13S1S݌v## Ќ   <1456789:;(Ax y<1456789:;R <1456789:;(Ayx <1456789:;"13"  13T2A3  0    Transportationandinstallationcosts;  13TU݌_B## Ќ   <1456789:;(Ax y<1456789:;lT <1456789:;(Ayx <1456789:;"13"  13V2A3  0    Maintenance,storageandotherservicecosts;13V W݌+!## Ќ   <1456789:;(Ax y<1456789:;[V <1456789:;(Ayx <1456789:;"13"  13X2A3  0    Tradeinorsalvagevalue;13XX݌"## Ќ   <1456789:;(Ax y<1456789:;EX <1456789:;(Ayx <1456789:;"13"  13Z2A3  0    Imputedinterestcosts;and13ZZ݌$!## Ќ   <1456789:;(Ax y<1456789:;Z <1456789:;(Ayx <1456789:;"13"  13u\2A3  0    Availabilityofaservicingfacilityespeciallyforhighlycomplexequipment(can &r# theAgencyservicetheequipmentifitispurchased).13u\\݌u'X $## Ќ   <1456789:;(Ax y<1456789:;[@S4  X( XJ@1.3.3.8RevenueContracts A)$"&  *l?Y@dddd TY\##l, dd +   +#( +#  REQUIREMENT  q+T$) 49_CFR_ԀPart18.25ProgramIncomestatesthatgranteesareencouragedtoearnincometo ,%* defrayprogramcosts.  -&+    .'+ *lYdddd ?Y@##l,dd +    FTACircular4220.1EThirdPartyContractingRequirementsrequiresgranteestouse d competitiveselectionproceduresintheawardofrevenuecontracts. gJ TheFTAAdministrator'sDearColleagueLetterC9825,datedOctober1,1998defined 3  revenuecontractsandstipulatedrequirementsregardingcompetitiveselectionprocedures,five   yeartermlimits(nolongerapplicable)andrequestsforwaivers.   TheFTADearColleagueLetterC0802,datedMay29,2002rescindedtherequirementthat   granteesobtainFTAapprovalforcontracttermslongerthanfiveyears.     DISCUSSION   Itiscriticaltofirstdeterminetheprimarypurposeofthecontract.Ifitistoprocuresupplies y\  orservices,thenitisnotarevenuecontract.Forexample,managementandparatransit _B  contractsarenotrevenuecontractsbecausetheprimarypurposeistomanageaprojector E(  operateaservice.Royaltiesreceivedasabyproductofadevelopmentorsupplycontract, + e.g.software,wouldnotbeconsideredarevenuecontract.DisposalofProjectproperty  wouldbeanotherexamplethatwouldnotbeconsideredarevenuecontract.  Iftheprimarypurposeistogeneraterevenuethenthecontractisarevenuecontract.  Advertising,concessions(foodandnewsstands),useofrightofways,licenses,andland  leasingaresomeexamplesofrevenuecontracts.Thedefinitionofarevenuecontract r developedbyFTAisasfollows: uX 0  0##    Arevenuecontractisanythirdpartycontractwhoseprimarypurposeistoeither A$ generaterevenuesinconnectionwithatransitrelatedactivityortocreatebusiness '  opportunitiesutilizinganFTAfundedasset. ## Therearethreeconceptsinvolvedinthedefinitionofarevenuecontract.First,the   objectiveofrevenuecontractsistolowerprogramcosts,andtherebyreduceboththe ! federalandthegranteesfinancialcontribution.Creativewaysofgeneratingthese " revenuesareencouraged,andFTAusesbroadlatitudeinapprovingthem. #n Second,revenuegenerationforthetransitagencyisabusinessopportunityforthebusiness W%:! community.Suchbusinessopportunitiescantakevariousforms,suchas:advertising, =& " landdevelopment,concessions,andutilizationofrightofways. #' # Third,anFTAfundedassetisanythingthathasbeenpurchased,inwholeorinpart,with (!% FTAfundsaspartofanapprovedtransportationbudget.Thiscanincludefundsfor )"& acquisition,operatingexpenseormaintenance.Granteesmusthaveadetailedfamiliarity *#' withtheapprovedbudgetstoknowifaparticularactivityisincludedandfundedby +$( federalfunds,inwhichcaseitwouldbegovernedbyfederalrequirements. ,j%)   S.6'+ Allrevenuegeneratedactivityinvolvingthirdpartycontractsmustfollowanimportant  requirementofFTACircular4220.1E:   <1456789:;(Ayx <1456789:;"13"  <( XS4  X<13o2A3  0    Therequirementforcompetitiveselectionproceduresappliestoallbusiness   opportunitiesincludingallrevenuegeneratingcontracts.13otp݌ ## Ќ   <1456789:;(Ax y<1456789:;|oCompetition󀄀Thecompetitiveprocessusuallyconsistsofaformalbidorproposalprocess  d butitdoesnotalwayshaveto.Granteesmayusetheirownjudgmentabouthowtomeet g J theintentofthecompetitionrequirement,buttheymustdocumenttherecordtoshowhow M0 competitionrequirementsweremet. 3  DisadvantagedBusinessEnterprises󀄀_DBEs_Ԁshouldhavethemaximumopportunityto   participateinbothcontractsandsubcontractsthatuseanyfederalfunds.Thegranteeis   responsiblefortakingallnecessaryandreasonablestepstoensurethat_DBEs_Ԁhave   maximumopportunitytocompeteforrevenuecontractssincethesecontractsare   consideredbusinessopportunities. z  ContractTerm󀄀ThefiveyearcontracttermlimitwasrescindedbyFTAsDearColleague cF LetterofMay29,2002.Foradiscussionofestablishingappropriatecontractterms,see I, _BPPM_ԀSection2.2.1ContractPeriodofPerformanceLimitation. / FlowdownRequirements󀄀Generally,iffederalfunds(notassets)arenotusedtogenerate  revenues,thentherearenorequirementstoincludefederalclausesintherevenuecontract  itself.  UnsolicitedProposals󀄀Thesemaycomeforthwhencompaniesseeanopportunitytouse v thetransitsystem(anFTAfundedactivity)toenhancetheirbusinessinterest.Itmay y\ appearfromsuchproposalsthatnoothercompanycouldofferthesameproductorservice. _B However,thisdoesnotjustifyasolesourcecontract.Iftheideaoractivityisofinterestto E ( you,theconceptshouldbeevaluatedonitsownmeritandrevenueproducingpotential.If +! thedecisionistoimplementit,thenacompetitiveprocessshouldbeusedtoselectthe " contractor,unlessyoudeterminethattheproposedconceptitselfisproprietary. " BestPractices  $! Itisimportanttoalwayskeepinmindtherequirementforcompetition. &r# TheNewYorkCityTransitAuthority(_NYCTA_)hasexperienceinmanyoftheareasofrevenue [(>!% generation: A)$"&  <1456789:;(Ayx <1456789:;"13"  13|2A3  0    advertisingbuses,trains,stationsandotherproperty(billboards),directadvertising  +#( onbackof_MetroCard_13|0}݌+$)## Ќ   <1456789:;(Ax y<1456789:;t| <1456789:;(Ayx <1456789:;"13"  13b2A3  0    lease/rentalofMTAownedpropertyconcessions,newsstands,retailspace, -&+ subleasingofofficespace13b݌.',## Ќ   <1456789:;(Ax y<1456789:;~ /n(- The_NYCTA_Ԁprocurementofficedoesnothandletherevenuegenerationcontracts.Various  departmentsofthetransitagencyareresponsiblefortherevenuecontracts,liketheAdvertising  DepartmentandRealEstateDepartment.TheseDepartmentsareawareofthefederal  requirementsandfollowthemtoobtainthirdpartycontractors.   _NYCTA_Ԁwasapproachedrecentlybyacompany,whichsubmittedanunsolicitedproposal,who  ~ wantedtoinstallanelectronicinformationsystemonthesubwaycars.Thecompanywantedto  d programthesystemsothatriderswouldknowwhatwasoverhead,e.g.WallStreet,theater g J district.NewYorkCitydecidedtoinvestigatetheconceptfirsttodetermineifitwassomething M0 thattheywantedtodotoenhancethesubwaysystem.Decidingthattheylikedtheidea,they 3  thenpreparedan_RFP_Ԁandsolicitedvendorsonacompetitivebasis.   MetropolitanAtlantaRapidTransitAuthority(MARTA)receivedanunsolicitedproposalfroma   companyaboutuseofsubwayrightofwayforlinkingAtlantawithfiberopticcableusing   MARTAssystemwideconduits.MARTAdeterminedthattheyhadunusedconduitsandcould   leasespaceinthemtovarioustelecommunicationcompanies.TheycontactedtheregionalFTA z  officeandreceivedtheirapprovalforanonexclusive_RFP_Ԁtoseekcompetitiveproposalsfor }` twentyyearleases.Thishasproducedsuccessfulrevenuecontracts. ,#  19       cF  1.3.3.9  TransitOrientedJointDevelopmentProjects  / *l`Ykdddd Y##l,Ydd +    REQUIREMENT  _B  FTACircular9300.1CapitalProgram:GrantApplicationInstructions,AppendixB,"Joint  DevelopmentProjects."  FederalRegisterNotice,March14,1997,FTAPolicyonTransitJointDevelopment.This n clarifiestherelationshipbetweentransitlawsandregulationsandFTApolicyregardingproperty qT disposition,leasesofproperty,andsaleofpropertyaffectingprogramincomeandthedefinition W : of"highestandbesttransituse"forjointdevelopment. =!  FTACircular5010.1CGrantManagementGuidelinesstates:  # 0  II2b.Use󀄀...FTAencouragesincidentalusesofrealpropertythatcanraiseadditional $! revenuesforthetransitsystemor,atareasonablecost,enhancesystem_ridership_.%"## 0  FTAapprovalisrequiredfortheseincidentalusesofrealpropertywhichmustbe 4!  #  'j $ compatiblewiththeoriginalpurposesofthegrant.m(P!%## FTACircular4220.1EThirdPartyContractingRequirementsstatestherequirementsthegrantee 9*#' mustadheretointhirdpartycontracting.Specifically,note: +$( # XXXOX$#OXXX X ,$)  Ї *lMYZddYdd Y`Yk##l,dd +     <1456789:;(Ayx <1456789:;  "13"  13 2A3  0 4   CompetitiveSelectionProcedures13 :݌d4<#4<# Ќ   <1456789:;(Ax y<1456789:; <1456789:;(Ayx <1456789:; <1456789:;(Ax y<1456789:;h   4 PossibleFlowDownofCertainFederalClauses  M 0 O,,XOX 3  OXX,O,DISCUSSION   FTAisencouragingtransitsystemstoundertaketransitorientedjointdevelopment  k projects(_TODs_)witheithernewgrantsorwithpropertyacquiredunderpreviousgrants. nQ Thepropertycanbeassociatedwithrail,busorothertransitfacilities. T7  Thepurposeofajointdevelopmentprojectisto:     "13 "  <,Xr4 X( X< r   132A3  0 4   securearevenuestreamforthetransitsystem;and,13m݌ 4#4# Ќ  "13 "   r   13,2A3  0 4   helpshapethecommunitythatisbeingservedbythetransitsystem.13,q݌ 4#4# Ќ  Wherethegranteeretainseffectivecontinuingcontrolformasstransitpurposes,all g proceedsofsale,leaseorotherencumbranceofthepropertywillbetreatedasprogram jM incomeforusebythetransitsystemtomeetcapitalandoperatingneeds.Theverynature P3 ofajointdevelopmentprojectrequireslongtermrelationshipsbetweenthevarious 6 contractingpartiesduetoissuesrelatedtolanduse,zoning,financialinvestment,longterm  leases,multiplecontractingparties,construction,andmanagement.TheFederalRegister  noticeofMarch14,1997,clarifiedandaddressedapparentinconsistenciesintheuseof  revenues.ThisNoticestates:  <,X4 X,Xr4 X<  1.0 4 Jointdevelopmentprojectsareconsidered masstransportationprojectseligible } forfundingunderFTAcapitalprograms.c4#4# 9,X4` X,X4 X9  2.0 4 Allprojectsmustgenerateaonetimepaymentorrevenuestreamfortransituse, L!/ thepresentvalueofwhichequalsorexceedsthefairmarketvalueofthe 2" property.#4#4#   3.0 4 Whenthegranteeretainscontinuingcontrolanduseofthejointdevelopmentfor $! masstransportationpurposes,allproceedswillbeconsideredprogramincome.%"4#4# GranteesareadvisedtosubmitthejointdevelopmentproposaltotheFTAregionaloffice 'y $ inaccordancewiththeFederalRegisternoticeofMarch14,1997,paragraphentitled |(_!%  Procedures.TheproposalstoFTAshouldinclude: b)E"&   1.0 4 0` 4#4#Theproposedjointdevelopmentagreement;.+$(` #` #   2.0 4 0` 4#4#Amarketandfinancialassessmentofthejointdevelopmentprojectandits ,%* impactonthetransitsystem;-&+` #` #   .',   3.0 4 0` 4#4#Astatementoftheoutcomeofplanningandcoordinationbetweenthejoint  developmentprojectandthetransitfacility;and` #` #   4.0 4 0` 4#4#Documentationoftheprojectedbenefitsforthetransitsystemaswellasthe   effectivecontinuingcontrolofthejointdevelopmentprojectfortransit  ~ purposes. d` #` # Competitionisanimportantrequirementinthedevelopmentoftheproject.Requirements M0 forfullandopencompetitionoftheproposedprojectcanbeobtainedby:public 3  announcementsinthenewspapersandtradejournals;buildingasolicitationlistthatis   inclusiveandnotexclusive;developingarealisticresponsetimefordevelopers,knowing   thatdevelopershavetofrequentlybuilda teamtorespondtothe_RFP_;havingrealistic   criteriatojudgetheresponses;havinganevaluationteamwithbroadanddiverse   experienceratetheproposals;and,competitivenegotiations.   FlowdownrequirementsdealingwithFederalclausesinajointdevelopmentprojectwill }` followthefederalfunds.ItmustbedeterminedwhetherandtowhatdegreeFederal cF regulationsapply,particularlytotheprivatelyfunded,nontransitportionoftheproject. I, Theseregulationscouldinclude:NationalEnvironmentalPolicyAct,DavisBaconAct,Buy / AmericaAct,laborprotectionarrangements,andthirdpartyprocurementrequirements.  Youshoulddetermine(withFTAsassistanceasnecessary)themostappropriateprocedures  forsatisfyinganyflowdownrequirements,giventheparticularcircumstancesofyour  project.  BestPractices  v Atlantastransitsystem,MetropolitanAtlantaRapidTransitAuthority(MARTA),isinvolvedina _B jointdevelopmentprojectcalledtheLindberghCenter.Theirobjectiveistobuildavillagethat E ( will:increase_ridership_,behighdensitymixeduse,bealivablecommunity,generatelongterm +! revenue,integratethestationanddevelopment.Theyhaveaddressedtheissues,beenthroughthe " procurementprocess,andselectedadeveloper.Howdidtheydothis?Theybeganbyworking " firstwiththeirFTAregionalofficeinexplainingwhattheywantedtodo.Next,they #  developedthreerequestsforproposals(_RFPs_)leadingtothreecontractsfor:marketingthe $! property,evaluatingthedevelopmentproposals,andthedevelopmentitself. %" Thequestionofopenandfullcompetitionwasmetthroughthemarketingstrategy.The u'X $ marketingplanwascriticalinreachingouttodeveloperswhomightbidontheproject.MARTA [(>!% setatargetof500developerstoreachthroughavarietyofmethods:apredeterminedlistingof A)$"& potentialdevelopers,advertisinginmajornewspapers(WallStreetJournal),nationaland '* #' internationalsolicitations.Anoutsidemanagementconsultingfirmwasretainedtoassist  +#( MARTAintheevaluationofdevelopersproposals.TheDevelopment_RFP_Ԁdetailedthe +$) requirementsoftheexpecteddevelopmentproposals.Includedintheevaluationfactorswasa  ,%* categoryof maximizerevenuesandreturnstoMARTA.Theprocesswassuccessfully  completedandadeveloperhasbeenchosen. ,#  20         1.3.3.10DispositionofSurplus    *l[Y^dddd MYZ##l,xdd +   ~ ~  REQUIREMENT    Requirementsrelatedtothegenerationofprogramincome,andthedispositionofsurplus y \ equipment,suppliesandrealpropertymaybefoundinthefollowingregulations: _B 0 S (a)FTACircular4220.1E(generalprinciplesapplicabletoallcontractsinvolving +  FederalfundsorFederallyfundedassets). S<#S<#  S 0 S (b)FTAMasterAgreementMA(12),Section19.gDispositionofProjectProperty. S<#S<# 0 S _(c)_Ԁ49_CFR_Ԁ18.25ProgramIncome;18.31RealProperty;18.32Equipment;18.33   Supplies.rS<#S<# 0 S (d)FTACircular5010.1C,GrantManagementGuidelines,ChapterII2cRealProperty [> ЄDisposition;ChapterIII4ProgramIncome.A$S<#S<#  S  S (e)49U.S.C.5334(g)TransferofAssetsNoLongerNeeded.     DISCUSSION    <1456789:;(Axx <1456789:;# XXXOX#_XXX X  K+ 4 <DL!,X4` XK    FTAinterpretsCircular4220.1Easapplyingtocontractsforthedispositionofsurplus  supplies,equipmentorproperty.Granteesarealsoadvisedtobefamiliarwithother  regulationsthatspecificallyaddressthedispositionofproperty,especiallyFTACircular  5010.1C,ChapterII!ManagementofRealProperty,EquipmentandSupplies.݌  j Ќ  -,X4` XX!-    K+ 4 <DL!,X4` XK    [  ItisimportantthatthegranteebefamiliarwiththedispositionrequirementsofFTA S"6 Circular5010.1C,ChapterII2_(c)_Ԁand3(f).ThisCircularestablishesprocedurestobe 9# followedbygranteesinavarietyofsituations,andgranteesneedtocarefullyreviewthese $ requirements.Theypertaintocircumstancessuchas:[݌ %  Ќ  -,X4` XX!-    K+ 4 <DL!,X4` XK  /  /݌̌  -,X4` XX!-    <1456789:;(Ax x<1456789:;ն -1456789:;(*yx <1456789:;"13"    K+` ` <DL!,X4` XK# XXX_Xy#_XXX X13L2*3  0 4   Sellingproperty(competitivelytotheextentpracticable)andreimbursingFTAits &" shareofthefairmarketvalue.13L݌' #4#4# Ќ   (!$ "13"  13A2*3  0 4   H+` ` <DL!` ` X!H# XXX_X#_XXX XSellingrealpropertyandusingtheproceedstoreducethecostofthegrantifitis )f"% stillopenorofotherFTAfundedcapitalprojects.13An݌i*L#&4#4# Ќ   O+2$'     "13"  13x2*3  0 4   H+` ` <DL!` ` X!H# XXX_X#_XXX XRetainingtitletorealpropertybyreimbursingFTAforitsshareofthecurrent  (appraised)marketvalue.13x݌4#4# Ќ    "13"  13K2*3  0 4   H+` ` <DL!` ` X!H# XXX_XV#Disposingofrollingstockbeforetheendofservicelife.13Kx݌ 4#4# Ќ     "13"  132*3  0 4   _XXX XDisposingofequipment_-X_X  #mi@_XX_-  .b  b@   ,#  21      b  b@  13݌ 4#4# Ќ     "13"  13S2*3  0 4   H+` ` <DL!` ` X!H# XXX_X1#_XXX XTransferofequipmenttoapublicagencyfornontransituse.13S݌g 4#4# Ќ   M  "13"  132*3  0 4   H+` ` <DL!` ` X!H# XXX_X1#_XXX XSellingandusingproceedsforothercapitalprojects.b  b@   ,#  22      b  b@  13݌3 4#4# Ќ   H+ 4 <DL!` ` X!HN7  !&),/25X!NTransferofAssetsNoLongerNeeded!49_USC_Ԁ5334(g)(1)allowsforthetransferofassets O nolongerneededbythegrantee.IfagranteedecidesanassetacquiredwithFTAfundsisno 5 longerneededforthepurposeforwhichitwasacquired,thegranteemayrequestFTA  approvaltotransfertheassettoalocalgovernmentalauthoritytobeusedforapublic  purposewithnofurtherobligationtoFTA.TheSecretaryofTransportationmayauthorize  atransferforapublicpurposeotherthanmasstransportation,butonlyiftheSecretary } decides c f1`  |%x(j1e4  !&)2f0    A)0` ##theassetwillremaininpublicuseforatleast5yearsafterthedatetheassetis / transferred;e` #` #   B)0 ` thereisnopurposeeligibleforassistanceunder49_USC_ԀChapter53forwhich 1 theassetshouldbeused;` #` #   C)0 ` theoverallbenefitofallowingthetransferisgreaterthantheinterestofthe  Governmentinliquidationandreturnofthefinancialinterestofthe y Governmentintheasset,afterconsideringfairmarketvalueandother _ factors;andE ` #` #   (D)0 ` throughanappropriatescreeningorsurveyprocess,thatthereisnointerest "a! inacquiringtheassetforGovernmentuseiftheassetisafacilityorland."G "` #` # j+  !&)2`  |%x(j1j        Thedecisiontopermitthetransfermustbeinwritingandincludethereasoningthat $"$ supportsthetransfer. %"% SaleofAssetsNoLongerNeeded!49_USC_Ԁ5334(g)(4)allowsforthesaleofassetsnolonger u'$' needed,subjecttotheapprovaloftheSecretaryofTransportation.Whenrealproperty, [(%(          A)&) equipment,orsuppliesacquiredwithFTAfundsarenolongerneededformass  transportationpurposesasdeterminedundertheapplicableassistanceagreement,the  Secretarymayauthorizethesale,transfer,orleaseoftheassetsunderconditions  determinedbytheSecretary.Thenetincomefromassetsales,uses,orleases(including   leaserenewals)mustbeusedbythegranteetoreducethegrossprojectcostofothercapital   projectscarriedoutwithFTAfunds.  ~ # XXX_X#XXX X# XXXX8#_XXX X`+ 4 <DL!  !&)2`BestPractices d G  Onetransitagencyhasdevelopeddetailedproceduresfordisposingofsurplusitems.b   b|x   ,#  23      b   b x  These 0  include:    (8y-1456789:;  >E.4 <DL!X!E-F Xf!X!-  "" > XB%4 4 <DLF Xf!B  X'F Xf!44X' >_X_X# _{#i 2  3      #X&lXiܣ## XXXX&l#_XXX XCompetitivebiddingproceduresformaterialsthatareregularlygenerated,regularly   removed,highvolume,andlowunitpricesuchasscrapsteelormotoroil.݌   Ќ 0F Xf!F Xf!0 >>     " " > XB%4 4 <DLF Xf!B  X'F Xf!44X' >_X_X# _#i 2  3      #X&lXi## XXXX&l!#_XXX XDevelopmentofspecificationsbytheMaterialsManagementDepartmentin w  coordinationwiththeUserDepartment(s)forthesurplusitemstobeofferedforsale z] andreviewbythePurchasingDepartment.@݌ `C Ќ 0F Xf!F Xf!0 >>   F) " " > XB%4 4 <DLF Xf!B  X'F Xf!44X' >_X_X# _#i 2  3      #X&lXiT## XXXX&l#_XXX XPreparationofasolicitationandadvertisingoftheitemsbeingofferedforsalebythe , PurchasingDepartmentwhencompetitivebidsarebeingsolicited.݌  Ќ 0F Xf!F Xf!0 >>    " " > XB%4 4 <DLF Xf!B  X'F Xf!44X' >_X_X# _T#i 2  3      #X&lXi܈## XXXX&l#_XXX XIssuanceofa"InvitationtoQuote"lettertoprospectivebiddersbythePurchasing  Department,oraletterinviting offerstopurchasebytheSalesDivisionwhenthe  sellingpriceofthematerialisexpectedtobebelowthesmallpurchasethreshold.b   bliga  O ,#  24      b   bvliga  ݌  Ќ 0F Xf!F Xf!0 >>   s "" > XB%4 4 <DLF Xf!B  X'F Xf!44X' >_X_X# _#i `2  3      #X&lXi.## XXXX&lp#_XXX XAnalysisofbidsbythePurchasingDepartment,withawrittenrecommendationfor vY awardtothewinningbidder.`݌ \? Ќ 0F Xf!F Xf!0 >>   B % "" > XB%4 4 <DLF Xf!B  X'F Xf!44X' >_X_X# _.#i h2  3      #X&lXi6## XXXX&lx#InternalagencyapprovalstoawardacontractforthesaleofAuthoritypropertyor (!  servicesparallelsthatoftheapprovalprocesstoawardacontractfortheprocurement " ofgoodsandservices.h݌ " Ќ 0F Xf!F Xf!0 >>   -1456789:;(*y8 >91X!F Xf!1   OXXX X  1.3.3.11OperatingAssistance,PreventiveMaintenance,_CMAQ_Ԁand_JARC_ԀProjects  $! *l{Y>dddd x[Y^##l,xdd +  &o#&o  REQUIREMENT  &$ FTACircular4220.1E,paragraph4,addressestheissueoftheCircularsapplicabilityto(a) j(M!% operatingcontracts,(b)contractsutilizingCongestionMitigationandAirQuality(_CMAQ_)and P)3"& JobAccess/ReverseCommute(_JARC_)projectfunds,and_(c)_Ԁpreventivemaintenancecontracts 6*#' whicharefundedwithFTAformulacapitalfunds:' lXX!' +#(  Ї*lHYadddd x{Y>##l,xdd +   'Z XlX'0  ThiscircularappliestoallFTAgranteesand_subgrantees_Ԁthatcontractwithoutside d sourcesunderFTAassistanceprograms.FTAgrantrecipientswhoutilizeFTAformula gJ fundsforoperatingassistancearerequiredtofollowtherequirementsofthiscircularfor M 0 alloperatingcontracts.Theserequirementsdonotapplyto_procurements_Ԁundertakenin 3  supportofcapitalprojectscompletelyaccomplishedwithoutFTAfundsortothose   operatingandplanningcontractsawardedbygranteesthatdonotreceiveFTAoperating   andplanningassistance.b  b3b  ݀E ,#  25      # XXXOX#OXXX X <#<# 0   <#<# 0  CongestionMitigationandAirQuality(_CMAQ_)andJobAccess/ReverseCommute   (_JARC_)projectfundsmaybeusedforoperations.Althoughgranteesmustfollow z  circularrequirementsforanyspecificcontractsthatutilize_CMAQ_Ԁor_JARC_Ԁfunds,the }`  useof# XXXOX#OXXX X_CMAQ_Ԁand_JARC_Ԁfundsforoperationsdoesnottriggertheapplicabilityofthe cF  circulartoallotheroperatingcontracts.b  b$b  ݀_ ,#  26      _I, <#<# 0  Granteesthatutilizeformulacapitalfundsforpreventivemaintenancecontractsare   subjecttothefollowingrequirementsofthecircular:IfFTAformulacapitalfundsare   fullyallocatedtodiscretepreventivemaintenancecontracts,thentherequirementsofthis  circularwillapplyonlytothosediscretecontractsandmustbeidentifiedandtrackedby  thegrantee.IftheFTAformulafundsarenotallocatedtodiscretecontractsthenall  preventivemaintenancecontractsaresubjecttotherequirementsofthecircular.b  bb    ,#  27      #v<#<# # DISCUSSION  r  IfatransitpropertyreceivesFTAformulafundsforoperatingassistance,allgrantee [> _procurements_ԀmustcomplywithFTACircular4220.1Eexceptforcapitalprojects  A$ undertakenwithoutFederalfundsorthoseoperatingandplanningcontractsawardedby  granteesthatdonotreceiveFTAoperatingandplanningassistance.Granteeswhosenet  operatingdeficitisfinancedbyFederalfundscannotsegregateanyoftheiroperatingor  planningcontractssothattheyareexemptfromtherequirementsoftheCircular.The   Circularmustbeappliedtoallsuchcontracts.   Whengranteesreceive_CMAQ_Ԁand_JARC_Ԁfundsforoperationsprojects,theCircular  d requirementsmustbefollowedforthosespecificcontractsusing_CMAQ_Ԁand_JARC_Ԁfunds. g J However,theuseoftheseparticularfundsforoperationsdoesnottriggertheapplicabilityof M0 theCirculartoalloperatingcontractsasisthecasewithFTAformulafunds. 3  1.3.3.12ECommerce    *lYdddd xHYa##l,xdd +      REQUIREMENT  /  FTACircular4220.1E,paragraph7.q.recognizesECommerceasanallowablemeansto   conduct_procurements_.IfagranteechoosestoutilizeECommerce,writtenproceduresmustbe r developedandallrequirementsforfullandopencompetitionmustbemet. uX   DISCUSSION qT TheBestPracticesProcurementManual(_BPPM_)intendstocoverthetopicofECommerce =  atalaterdatewhenindustryexperiencehasbeensufficienttoindicatesome"bestpractices" # forthetransitindustry.Inthemeantime,theDearColleagueLetterofMay29,2002   remindsgranteesthatECommerceisanallowablemeanstoconduct_procurements_.Ifa  granteechoosestoimplementanECommercesystem,writtenproceduresmustbe  developedandalltherequirementsofFTACircular4220.1Emustbemet,includingthe  requirementfor"fullandopencompetition"asstatedinFTACircular4220.1E,Paragraph  8a. # XXXOX:#