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How Does the Federal New Starts Process Relate to Soft Costs? 15
Second, the federal process for new transit capital projects imposes some unique requirements
on project sponsors that usually result in soft costs. For example,
· The FTA requires grantees to estimate "transportation system user benefits" of the project by
following certain procedures, typically resulting in some professional services soft costs for
travel demand modeling.
· During PE, the federal process tends to encourage grantees to analyze environmental impacts
in concert with developing engineering plans, which can advance some engineering soft costs.
· The FTA requires grantees to analyze the environmental justice impacts of a project, conduct
a risk assessment process, and develop a project management plan, usually resulting in some
soft costs. Even if a project
sponsor chooses
Federal versus Non-Federal Projects to forego federal
funds, the project
Despite the impact of the FTA's New Starts project development process on soft costs, its
impacts are probably not unique. Even if a project sponsor chooses to forego federal funds, the may face state and
project may face state and local requirements that can affect soft costs in very similar ways to the local requirements,
FTA's process throughout the project's life:
which may affect
· During PE, the environmental reviews required at the state level can be as stringent as federal
soft costs in very
requirements. However, the sponsor may not be required to estimate ridership or develop a
project management plan in the same way. similar ways to the
· During final design, the amount of time required to develop construction plans is typically FTA's process
the same, although state and local review times can be shorter than federal.
· In the construction phase, the major soft costs for managing the construction project are
throughout the
probably equivalent to a federal project. project's life.