Understanding FAA Grant Assurance Obligations Volume 1: Guidebook (2018)

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ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Chapter 2 158 Project-specific requirements are generally well understood. C H A P T E R 2 G R A N T A S S U R A N C E S U M M A R I E S , P R O J E C T - S P E C I F I C R E Q U I R E M E N T S This chapter presents the summaries for project-specific grant assurance requirements. The generally applicable grant assurance requirements governing airport operations, management and finance are addressed in Chapter 1. However, numerical order will not be followed for the grant assurances. Many of the project-specific grant assurances address common or related topics. Therefore, the summaries are organized by topic, as follows: 1. General federal requirements; 2. Sponsor capability; 3. Local involvement; 4. Project implementation; and 5. Project finance and accountability. Project-specific grant assurances were not identified as complex or generating substantial questions. Therefore, unlike the generally applicable requirements in Chapter 1, the order of the five subjects is based on the grant assurance number of the first grant assurance included in each subject area. Within each of the five subject areas, the grant assurances are presented in numerical order. For the grant assurances other than Grant Assurance 1, and in some cases, individual grant assurance clauses, the summary sheets are organized as follows: 1. Assurance Number and Summary Description 2. Summary of Duration, Applicability, Sanctions for Non-Compliance 3. Summary of What the Sponsor Must Do 4. Summary of What the Sponsor May Do 5. Summary of Prohibited Sponsor Actions 6. Summary of Exceptions 7. Recommended Practices 8. List of Related Grant Assurances 9. Common Questions 10. Example of Practice(s) Found in Compliance 11. Example of Practice(s) Found in Non-Compliance The first six items are considered basic information. The remaining items are considered supplemental information. The basic information is intended to broadly describe the boundaries of permitted, prohibited and mandatory practices. It is written to help Sponsors avoid even grey areas in which compliance status may be uncertain. Many of the grant assurance requirements have exceptions, and each will be applied by the FAA to the specific circumstances before it. Thus, in a specific case, the FAA may determine that a

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Chapter 2 159 particular practice identified as permitted in the summary is prohibited; similarly, the FAA may determine that a practice identified as mandatory need not be followed. Examples of practices found in compliance/non-compliance are derived from the review of ACRP LRD 21 or ACRP Report 13, except for administrative decisions issued after publication of LRD 21. Those latter decisions were found in the FAA’s Part 16 database. For decisions found in the LRDs, the LRD reference and the FAA docket number are included in the listing of the example. Because Grant Assurance 1, General Federal Requirements, covers dozens of statutes, regulations and executive orders, the information is presented in a table format. Requirements are grouped by subject area. The tables include the legal reference, a description of the requirements and resources and references. The latter are included because it would be difficult and possibly confusing to replicate the order of the presentation of references for Grant Assurance 1 in Appendix C, Resources and References.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1 Grant Assurance 1 (Project-specific) 160 Section 2.1 Grant Assurance 1, General Federal Requirements This grant assurance lists legislation, executive orders and regulations applicable to airports receiving AIP grants with the following totals: Some of the general federal requirements apply to general airport operations, management and finance. Others apply only to the planning, design or implementation of projects. Therefore, Grant Assurance 1 is discussed in both Chapter 1 and Chapter 2 of the Guidebook. Of the totals shown above, the count of requirements that impose project-specific requirements is as follows: The following resources and references are generally applicable to Grant Assurance 1 project-specific requirements. 18 pieces of legislation 6 executive orders 14 regulations 26 pieces of legislation 6 executive orders 24 regulations

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1 Grant Assurance 1 (Project-specific) 161  Order 5100.38D, AIP Handbook (09-30-2014); http://www.faa.gov/airports/aip/aip_handbook/media/AIP-Handbook-Order-5100-38D.pdf  FAA Order 5100.38C AIP Handbook (Cancelled publication) http://www.faa.gov/airports/airport_development/omp/funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf  AC 150/5100-16A, Airport Improvement Program Grant Assurance 1 General Federal Requirements (10/04/1988) (Cancelled publication); http://www.airweb.faa.gov/Regulatory_and_Guidance_Library/rgAdvisoryCircular.nsf/1ab39b4e d563b08985256a35006d56af/58ff1089ac4c691086256c720077b006/$FILE/150-5100-16a.pdf  Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01/29/2016); http://www.faa.gov/airports/aip/procurement/federal_contract_provisions/ AC 150/5100-16A is included as a reference because in some cases, it provides more information on particular federal requirements than does other current guidance. In the event of a conflict between AC 150/5100-16A and any later published AC, order or other guidance document, the later published document takes precedence Order 5100.38C is similarly included as a reference because in some cases, it may explain the requirements included in subtitle VII more extensively than Order 5100.38D. If there is a conflict between the two versions of the order, the latter (5100.38D) takes precedence. For ease of understanding, the general federal requirements are discussed in table format, with related requirements grouped together. Grant Assurance 1 project-specific requirements fall into seven broad categories: 1. General environmental requirements; 2. Historical and archeological preservation; 3. Land and water usage; 4. Civil rights requirements; 5. Labor and employment standards; 6. Project finance and accountability requirements; and 7. Other requirements. Each is addressed in a separate table below. To reduce report length, the tables are formatted for 8½" by 14" paper.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.1 Grant Assurance 1 (Project-specific) 162 2.1.1 General Environmental Requirements General environmental requirements include three statutory provisions. The requirements are summarized (with resource and reference materials) in Table 3, below. Table 3, General Environmental Requirements Item No. Title Digest Reference 1. National Environmental Policy Act of 1969 (NEPA) NEPA requires that all agencies of the federal government include in every recommendation or report on any major federal action a detailed statement on the environmental impact of the proposed action. The FAA complies with this act by requiring grant applicants to prepare environmental assessments (EA), when appropriate, in support of proposed AIP development projects. Under NEPA as implemented by FAA, Sponsors must identify potential impacts of proposed projects (except those categorically excluded by the FAA), develop conceptual alternatives and prepare an environmental assessment to determine significance. The assessment must be developed in coordination with appropriate local, state, and federal agencies, with community involvement, and in direct consultation with the FAA. The material contained in the assessment must be objective, complete and accurate for it to serve as the basis for the preparation of the FAA's environmental documents. Sponsors must provide additional data and information to the FAA, when required, to assist in its review of environmental impacts and in the preparation of environmental documents. Environmental Desk Reference for Airport Actions (October 2007); http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015); http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.1 Grant Assurance 1 (Project-specific) 163 2. Clean Air Act, P.L. 90-148, as amended Plans, programs, and projects must conform to state implementation plan (SIPs) that provide for attainment of the national air quality standards. Sponsors must document compliance in the EA referenced in Item 1 above. Environmental Desk Reference for Airport Actions (October 2007), Chapter 1; http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015); http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.1 Grant Assurance 1 (Project-specific) 164 3. Title 49 USC Section 303 (formerly known as section 4(f)) To preserve significant publicly owned parklands, waterfowl and wildlife refuges, and significant historic sites, this provision prohibits the use of these protected areas for a transportation program or project, unless there is no feasible alternative and the project includes all possible planning to minimize harm to the protected areas. The FAA implements this provision by requiring EAs prepared by Sponsors referenced in Item 1 to address any use of protected areas. Environmental Desk Reference for Airport Actions (October 2007), Chapter 7; http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015); http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006) http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA; http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.2 Grant Assurance 1 (Project-specific) 165 2.1.2 Historical and Archeological Preservation Requirements for historical and archeological preservation include three statutes. The requirements are summarized (with resource and reference materials) in Table 4, below. Table 4, Requirements for Historical and Archeological Preservation Item No Title Digest Reference 1. National Historic Preservation Act of 1966 A Sponsor must perform a review to determine if any properties in or eligible for inclusion in the National Register of Historic Places are within the area of the proposed project's potential environmental impact and if the project will cause a change in the historic, architectural, archeological or cultural qualities of the property. The review must be included in the EA referenced in Table 3, Item 1. Environmental Desk Reference for Airport Actions (October 2007); http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015), Page 8- 4; http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.2 Grant Assurance 1 (Project-specific) 166 2. Archeological and Historic Preservation Act of 1966 (section 106) This provision requires for the survey, recovery and preservation of significant scientific, prehistorical, historical, archeological and paleontological data when such data may be destroyed or irreparably lost due to a federal, federally licensed, or federally assisted project. Under FAA implementation, a Sponsor must consult with the state historic preservation officer (SHPO) on the conduct of investigations, as necessary, to identify significant scientific, prehistorical, historical, archeological or paleontological data that are subject to adverse effects by the project, notify the FAA of the results of the consultation and of the existence of any such data, and comply with any subsequent requirements established by the FAA to avoid or mitigate adverse effects upon data identified in the investigation. Desk Reference for Order 1050.1F (July 2015), Chapter 8; http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm The Secretary of the Interior's Standards for the Treatment Of Historic Properties (36 CFR Part 68); http://www.ecfr.gov/cgi- bin/retrieveECFR?gp=&SID=5e5537765885c8731e04 c0dcd480fd44&r=PART&n=36y1.0.1.1.33 3. Native American Graves Protection and Repatriation Act (NAGPRA) This statute requires federal agencies to protect human remains and cultural material of Native American and Hawaiian groups. Under FAA implementation, the act applies to Sponsors of airports located on federal lands or Indian reservation lands. Sponsors subject to the requirement must address the act in the EAs referenced in Table 3, Item 1. Environmental Desk Reference for Airport Actions (October 2007), Chapter 14; http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf Desk Reference for Order 1050.1F (July 2015), Page B-23; http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.2 Grant Assurance 1 (Project-specific) 167 3. Native American Graves Protection and Repatriation Act (NAGPRA) (con’t.) National Park Service Archeology Program https://www.nps.gov/archeology/tools/Laws/NAGPRA .htm FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA; http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.3 Grant Assurance 1 (Project-specific) 168 2.1.3 Land and Water Usage Requirements for land and water usage include four statutes, two executive orders and one regulation. The requirements are summarized (with resource and reference materials) in Table 5, below. Table 5: Land and Water Usage Requirements Item No. Title Digest Reference 1. Coastal Zone Management Act Executive Order (E.O.) 11998—Flood Plain Management This act and EO are intended to preserve, protect, develop and (where possible) restore and enhance resources of the coastal zone. It applies to all projects significantly affecting areas under the control of the State Coastal Zone Management Agency for which a flood plain management plan is approved by the Department of Commerce. The FAA must ensure that projects comply with federal consistency regulations, management measures and the appropriate approved state plan for coastal zone management programs. The FAA implements these requirements by requiring Sponsors of airports in protected areas to address the act and EO in the EAs referenced in Table 3, Item 1. Environmental Desk Reference for Airport Actions (October 2007), Chapter 4; http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F FAA Order 1050.1F— Environmental Impacts: Policies and Procedures (7- 15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015); http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.3 Grant Assurance 1 (Project-specific) 169 1. Coastal Zone Management Act (con’t.) Executive Order (E.O.) 11998—Flood Plain Management (con’t.) Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm Federal Consistency with Approved Coastal Management Programs, 15 CFR, Part 930 https://www.gpo.gov/fdsys/granule/CFR-2012-title15- vol3/CFR-2012-title15-vol3-part930 2. Flood Disaster Protection Act of 1973 This act prohibits the federal government from providing funds for acquisition or construction purposes in an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards unless the community in which such area is situated is participating in the National Flood Insurance Program (NFIP). The FAA implements this act by requiring Sponsors to address flood hazards in the EAs referenced in Table 3, Item 1. Environmental Desk Reference for Airport Actions (October 2007); http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015); http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.3 Grant Assurance 1 (Project-specific) 170 3. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 49 CFR Part 24—Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs This act and its implementing regulation—49 CFR Part 24—establishes a uniform policy for the fair and equitable treatment of persons displaced as a result of a federal or federally assisted project so that they will not suffer disproportionate injuries from a project This act and regulation apply only to projects that involve the displacement of persons, businesses or farm operations resulting from land acquisition. Displaced persons and entities are entitled to receive just compensation for their properties, which generally cannot be less than fair market value determined by an independent appraisal for their property, and are entitled to relocation assistance. Independent appraisals are subject to review appraisals. Relocation assistance for acquisition of residential property includes identification of comparable replacement dwellings and, if necessary, payment of any costs of replacement dwellings that exceed just compensation for the residential property being acquired. FAA Order 5100.37 Land Acquisition and Relocation Assistance for Airport Projects (8-1-05); http://www.faa.gov/airports/resources/publications/ord ers/media/environmental_5100_37b.pdf AC 150/5100-17—Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects; http://www.faa.gov/regulations_policies/advisory_circu lars/index.cfm/go/document.information/documentID/2 3049 4. Wild and Scenic Rivers Act, P.L. 90-542, as amended This act is intended to preserve and protect wild and scenic rivers and immediate environments for the benefit of present and future generations. All projects that affect designated and potential wild, scenic, and recreational rivers and/or immediate environments are subject to this requirement. Sponsors must coordinate project proposals and reports with appropriate federal agency and state agencies, and address the requirements of the act in the EAs referenced in Table 3, Item 1. Environmental Desk Reference for Airport Actions (October 2007), Chapter 22; http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdfhttp://www.faa.gov/documentlibrary/ media/order/faa_order_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015), Section 14.5; http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.3 Grant Assurance 1 (Project-specific) 171 4. Wild and Scenic Rivers Act, P.L. 90-542, as amended (con’t.) Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.3 Grant Assurance 1 (Project-specific) 172 5. E.O. 11990—Protection of Wetlands This EO requires federal agencies to minimize the destruction, loss or degradation of wetlands and to enhance the natural and beneficial values of wetlands. Federal agencies cannot provide assistance for or permit construction in a wetland without a finding that there is no practicable alternative to the construction and that the proposed action includes all practicable measures to minimize harm to the wetlands. Federal agencies must provide for early public review of plans or proposals for new construction in wetlands. The FAA implements this EO by requiring Sponsors to address wetlands in the EAs referenced in Table 3, Item 1. Environmental Desk Reference for Airport Actions (October 2007), Chapter 22; http://www.faa.gov/airports/environmental/environmen tal_desk_ref/media/desk-ref.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16); http://www.faa.gov/documentlibrary/media/order/faa_o rder_1050_1f.pdfhttp://www.faa.gov/documentlibrary/ media/order/faa_order_1050_1f.pdf Desk Reference for Order 1050.1F (July 2015), Section 14.5; http://www.faa.gov/about/office_org/headquarters_offi ces/apl/environ_policy_guidance/policy/faa_nepa_orde r/desk_ref/media/desk-ref.pdf FAA Order 5050.4B National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions (April 2006); http://www.faa.gov/airports/resources/publications/ord ers/environmental_5050_4/media/5050- 4B_complete.pdf Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.4 Grant Assurance 1 (Project-specific) 173 2.1.4 Civil Rights Requirements Civil Rights requirements include two statutes, two executive orders and one regulation. The requirements are summarized (with resource and reference materials) in Table 6, below. Table 6: Civil Rights Requirements Item No. Title Digest Reference 1. American Indian Religious Freedom Act This act is intended to protect places of religious importance to American Indians, Eskimos, and Native Hawaiians. Sponsors must consult with knowledgeable sources to identify and determine any effects on places of religious importance and address the requirements of the act in the EAs referenced in Table 3, Item 1. Summary of Environmental Legislation Affecting Transportation by FHWA (undated); http://www.fhwa.dot.gov/environment/env_sum.cfm 2. Architectural Barriers Act of 1968—42 USC 4151, et seq.1 This act requires that buildings and facilities financed by federal grants be designed and constructed to be accessible to the physically handicapped. Guidance on the 2010 ADA Standards for Accessible Design; (09-15-2010); https://www.ada.gov/regs2010/2010ADAStandards/Gu idance_2010ADAStandards.pdf FAA Advisory circular (AC) 150/5360-14, Access to Airports by Individuals with Disabilities (06-30-1999); http://www.faa.gov/documentLibrary/media/advisory_ circular/150-5360-14/150_5360_14.PDF

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.4 Grant Assurance 1 (Project-specific) 174 3. 49 CFR Part 26—Participation by Disadvantaged Business Enterprises in Department of Transportation Programs Provides for the development of plans and setting of goals for participation by business owned by disadvantaged persons in AIP contract activities. Applies to Sponsors receiving grants for airport planning or development who will award prime contracts the cumulative total value of which exceeds $250,000 in FAA funds in a federal fiscal year. Sponsors are required to establish goals for the participation of DBE. Each Sponsor is required to (a) establish annual DBE goals, (b) review the scopes of anticipated large prime contracts throughout the year and (c) establish contract- specific DBE subcontracting goals. There are specific steps recommended for the establishment of the goals if required and the submittal of the DBE program for review and approval by the FAA Office of Civil Rights. The goals and accomplishments are governed by the administration of the program using good faith efforts. A DBE program typically consists of: (1) policy statement; (2) DBE liaison officer (DBELO); (3) DBE financial institutions; (4) prompt payment mechanisms; (5) DBE directory; (6) business development programs; (7) monitoring and enforcement mechanisms; and (8) items for fostering small business participation. FAA Order 5100.38D AIP Handbook (09-30-2014); http://www.faa.gov/airports/aip/aip_handbook/media/A IP-Handbook-Order-5100-38D.pdf FAA Order 5100.38C AIP Handbook (Cancelled) http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf Sample DBE Program (08-09-2012); http://www.faa.gov/about/office_org/headquarters_offi ces/acr/bus_ent_program/dbe_program_adm/media/sa mple_dbe_part_26_program_final_draft_-_rev_08-09- 12.pdf

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.4 Grant Assurance 1 (Project-specific) 175 4. E.O. 11246 Equal Employment Opportunity This executive order promotes and ensures equal opportunity for all persons regardless of race, color, religion, sex or national origin who are employed or seeking employment with contractors performing under federally assisted construction contracts in excess of $10,000. To comply with this executive order, Sponsors must take the following actions: (1) comply with the requirements of 41 CFR Part 60; and (2) incorporate in all AIP-funded contracts, except for land acquisition, acquisition of equipment that requires no installation, e.g., snow removal equipment, mandatory contract and specification language contained in 41 CFR §§60-1.4 and 60-4.3, respectively. However, if a land acquisition project also involves construction work, e.g., installation of boundary fences, the language must also be included. The required language is reproduced in the FAA Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors listed in the Resources and References. Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors, Appendix A, Section A-15 (01/29/2016); http://www.faa.gov/airports/aip/procurement/federal_con tract_provisions/ 5. E.O. 12898—Environmental Justice This executive order directs federal agencies to make achieving environmental justice part of their mission by identifying and addressing disproportionately high and adverse human health or environmental effects of agency actions on minority populations and low-income populations. Executive order federal agencies must also develop agency-wide environmental justice strategies that identify and address disproportionately high and adverse human health or environmental effects on minority populations and low-income populations. Sponsors’ obligations under E.O. 12898 relate primarily to the preparation of environmental documentation under the National Environmental Policy Act (NEPA) and public participation requirements under the AIP Statute. Required steps include the following: (1) determining if a minority or low-income population occurs in the area that U.S. DOT Order 5610.2(a), Department of Transportation Actions to Address Environmental Justice in Minority Populations and Low Income Populations (05-02-2012); http://www.fhwa.dot.gov/environment/environmental_jus tice/ej_at_dot/orders/order_56102a/dot56102a.pdf FAA Environmental Desk Reference for Airport Actions, Chapter 10 (October 2007); http://www.faa.gov/documentLibrary/media/FAA_Desk_ Reference_for_Airport_Actions_Chapter_10_EJ.pdf FAA Order 1050.1F—Environmental Impacts: Policies and Procedures (7-15-16);

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.4 Grant Assurance 1 (Project-specific) 176 5. E.O. 12898—Environmental Justice (con’t.) a proposed action or its reasonable alternatives would affect; (2) consulting with state and local officials, community leaders, tribal elders (if applicable) and other community leaders; (3) determining and reporting environmental justice impacts; and (4) identifying practicable mitigation measures for the impacts or explaining why no practicable mitigation measures are available. http://www.faa.gov/documentLibrary/media/Order/FAA_ Order_1050_1F.pdf

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.5 Grant Assurance 1 (Project-specific) 177 2.1.5 Labor and Employment Standards Labor and employment standards include four statutes and four regulations. The requirements are summarized (with resource and reference materials) in Table 7, below. Table 7, Labor and Employment Standards Item No. Title Digest Reference 1. Davis-Bacon Act—40 USC 276(a), et seq. 29 CFR Part 1—Procedures for predetermination of wage rates Contract Work Hours and Safety Standards Act 29 CFR Part 5—Labor standards provisions applicable to contracts covering federally financed and assisted construction (also labor standards provisions applicable to non- construction contracts subject to the Contract Work Hours and Safety Standards Act) This act relates to the rate of wages paid by construction contractors and subcontractors who hold contracts for constructing, renovating, or repairing public (government) buildings. However, Section 47112(b) of Title 49, United States Code extends the coverage of the act to construction contracts in excess of $2,000 for work on AIP-funded projects for airport development. Basically, the act requires mechanics and laborers to be paid the prevailing wage as determined by the Department of Labor. A companion act, the Contract Work Hours and Safety Standards Act, requires that laborers, mechanics, guards and watchmen be paid overtime for any work in excess of a 40-hour week. Sponsors must include specified language in the following AIP-funded contracts in excess of $2,000:  construction contracts;  equipment purchase that includes installation; and  professional service agreements (PSA) that include construction tasks. Sponsors must also ensure that the specified language is included in AIP-funded subcontracts of the same type that exceed the $2,000 threshold. AC 150/5100-6D Labor Requirements for the Airport Improvement Program (AIP) (10-15-1986) (Cancelled); http://www.faa.gov/documentLibrary/media/advisory_ circular/150-5100-6D/150_5100_6d.pdf FAA Order 5100.38C AIP Handbook (Cancelled); http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01-29-2016), Appendix A, section A10; http://www.faa.gov/airports/aip/procurement/federal_c ontract_provisions/

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.5 Grant Assurance 1 (Project-specific) 178 2. Federal Fair Labor Standards Act—29 USC 201, et seq. This act requires that all employees engaged in interstate commerce or in the production of goods for interstate commerce, as well as employees in the construction industry, be paid at least the federal minimum wage and receive overtime pay. For AIP-funded contracts, it applies to employees not covered by the Davis-Bacon Act (Item 14). Implementing regulations exempt people performing bona fide executive, administrative or professional tasks. Sponsors must include specified language in all AIP-funded contracts and ensure that the language is included in all AIP-funded subcontracts. AC 150/5100-6D Labor Requirements for the Airport Improvement Program (AIP) (10-15-1986) (Cancelled); http://www.faa.gov/documentLibrary/media/advisory_ circular/150-5100-6D/150_5100_6d.pdf FAA Order 5100.38C AIP Handbook (Cancelled); http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01-29-2016), Appendix A, section A16; http://www.faa.gov/airports/aip/procurement/federal_c ontract_provisions/ 3. Copeland Anti-Kickback Act 29 CFR Part 3—Contractors and subcontractors on public building or public work financed in whole or part by loans or grants from the United States This act provides for a fine or imprisonment to anyone who, by force, intimidation, or threat of dismissal from employment, or by any other manner induces any employee employed in the construction, prosecution, completion or repair of any public building, public work, or building or work financed by federal grants to give up any part of the compensation to which the employee is entitled under a contract for employment. The act applies to all construction contracts and subcontracts exceeding $2,000 in value financed with AIP. It also applies to all equipment purchases that include installation with a value exceeding $2,000 and to professional service agreements that include construction tasks exceeding the $2,000 threshold. Sponsors are required to include a specified contract clause in all covered contracts. AC 150/5100-6D Labor Requirements for the Airport Improvement Program (AIP) (10/15/1986) (Cancelled); http://www.faa.gov/documentLibrary/media/advisory_ circular/150-5100-6D/150_5100_6d.pdf FAA Order 5100.38C AIP Handbook (Cancelled); http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01-29-2016), Appendix A, section A9; http://www.faa.gov/airports/aip/procurement/federal_c ontract_provisions/

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.5 Grant Assurance 1 (Project-specific) 179 4. 41 CFR Part 60—Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and federally assisted contracting requirements). This regulation ensures equal opportunity for all persons, without regard to race, color, religion, sex, sexual orientation, gender identity or national origin, employed or seeking employment with government contractors or with contractors performing under federally assisted construction contracts. Sponsors must include specified language in solicitation documents and contracts and assure that the language is included in subcontracts for any AIP- funded contract or subcontract with a value exceeding $10,000. AC 150/5100-6D Labor Requirements for the Airport Improvement Program (AIP) (10/15/1986) (Cancelled); http://www.faa.gov/documentLibrary/media/advisory_ circular/150-5100-6D/150_5100_6d.pdf FAA Order 5100.38C AIP Handbook (Cancelled); http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01-29-2016), Appendix A, section A15; http://www.faa.gov/airports/aip/procurement/federal_c ontract_provisions/

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.6 Grant Assurance 1 (Project-specific) 180 2.1.6 Project Finance and Accountability Requirements Project finance and accountability requirements include two statutes, three regulations and two OMB circulars incorporated in one of the regulations. The requirements are summarized (with resource and reference materials) in Table 8, below. Table 8, Project Finance and Accountability Requirements Item No. Title Digest Reference 1. Single Audit Act of 1984 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards [OMB Circular A-87 Cost Principles Applicable to Grants and Contracts with State and Local Governments, and OMB Circular A-133— Audits of States, Local Governments, and Non-Profit Organizations] Requires each state and local government that receives $25,000 or more a year of federal funds to have an audit made covering all of the federal funding it receives. An audit guide is provided to auditors to identify areas requiring study. FAA Order 5100.38D AIP Handbook (09-30-2014); http://www.faa.gov/airports/aip/aip_handbook/media/A IP-Handbook-Order-5100-38D.pdf FAA Order 5100.38C AIP Handbook (Cancelled); http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf 2. The Federal Funding Accountability and Transparency Act of 2006, as amended This act requires the submittal of information about grant sub-awards and also in some cases executive compensation for Sponsors as the prime grantees. Because individual airport Sponsors do not issue sub-grants, the requirements only apply to states participating in the State Block Grant Program. Federal Funding Accountability and Transparency Act Sub-award Reporting System; https://www.fsrs.gov/ 3. 2 CFR Part 180—OMB Guidelines to Agencies on Government-wide Debarment and Suspension (Non-procurement) Provides procedures for the suspension or debarment for entities for serious acts of wrongdoing. Provides that grantees may not use contractors that have been suspended or debarred under these regulations until the suspension or debarment is lifted. Under 2 CFR Part 180, Sponsors cannot be suspended or debarred, only contractors, subcontractors or individuals involved in the wrongdoing. Sponsors must assure that potential contractors, subcontractors and associated FAA Order 5100.38C AIP Handbook (Cancelled); http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf FAA Order 5100.38D, AIP Handbook (09-30-2014);

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.6 Grant Assurance 1 (Project-specific) 181 3. 2 CFR Part 1200—Non-procurement Suspension and Debarment (con’t.) individuals are not on the federal government’s suspension and debarment list through all of the following:  verifying that the firms and individuals are not included in the list of suspended and debarred entity list in the federal government’s System for Award Management (www.SAM.gov);  collecting certifications about suspension/debarment status from the firms and individuals; and  including specified language in all contracts for the project. http://www.faa.gov/airports/aip/aip_handbook/media/A IP-Handbook-Order-5100-38D.pdf Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01-29-2016), Appendix A, section A11; http://www.faa.gov/airports/aip/procurement/federal_c ontract_provisions/

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.7 Grant Assurance 1 (Project-specific) 182 2.1.7 Other Requirements Other requirements, which cannot be readily categorized, include five regulations, two executive orders and two OMB circulars incorporated in one of the regulations. The requirements are summarized (with resource and reference materials) in Table 9, below. Table 9, Other Requirements Item No. Title Digest Reference 1. E.O. 12372—Intergovernmental Review of Federal Programs This executive order establishes a system of intergovernmental consultation using state processes for review of federal activities and requires federal agencies to accept state or local comments on federal programs or activities, when transmitted by the state's single point of contact, or explain why not. To comply with E.O. 12372, a Sponsor must contact its state's single point of contact, prior to submitting its AIP grant application for information on notification, coordination, and review requirements. The address of the state's single point of contact may be obtained from the FAA. AC 150/5100-16A, Airport Improvement Program Grant Assurance 1 General Federal Requirements (October 4, 1988); http://www.airweb.faa.gov/Regulatory_and_Guidance_ Library/rgAdvisoryCircular.nsf/1ab39b4ed563b089852 56a35006d56af/58ff1089ac4c691086256c720077b006/ $FILE/150-5100-16a.pdf (Cancelled Publication) 2. E.O. 12699—Seismic Safety of Federal and Federally Assisted New Building Construction 49 CFR Part 41—Seismic safety of Federal and federally assisted or regulated new building construction The purposes of these requirements are to reduce risks to the occupants of buildings owned by the federal government and to persons who would be affected by the failures of federal buildings in earthquakes, to improve the capability of essential federal buildings to function during or after an earthquake, and to reduce earthquake losses of public buildings. Each federal agency responsible for the design and construction of each new federal building shall ensure that the building is designed and constructed in accord with appropriate seismic design and construction standards. FAA Order 5100.38D AIP Handbook (09-30-2014); http://www.faa.gov/airports/aip/aip_handbook/media/A IP-Handbook-Order-5100-38D.pdf

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.7 Grant Assurance 1 (Project-specific) 183 3. 14 CFR Part 150—Airport noise compatibility planning This regulation implements the Aviation Safety and Noise Abatement Act of 1979, which provides federal financial assistance for preparing plans and for carrying out programs to achieve noise-compatible land uses around airports. The regulation prescribes the procedures, standards and methodology governing the development, submission and review of airport noise exposure maps and airport noise compatibility programs, including the process for evaluating and approving or disapproving those programs. AC 150/5020-1—Noise Control and Compatibility Planning for Airports (8/5/1983); http://www.faa.gov/document library/media/ advisorycircular/150-5020-1/150_5020_1.pdf 4. 49 CFR Part 18—Uniform administrative requirements for grants and cooperative agreements to state and local governments (replaced by 2 CFR Part 200) This part prescribes all-encompassing requirements that have to be followed by Sponsors in administering AIP grants. It covers issues involving pre-grant and post- grant requirements as well as other administrative matters undertaken by Sponsors and FAA. It is the primary federal regulation for grants. FAA Order 5100.38D AIP Handbook (09-30-2014); http://www.faa.gov/airports/aip/aip_handbook/media/A IP-Handbook-Order-5100-38D.pdf 5. 49 CFR Part 20—New restrictions on lobbying This regulation implements 31 USC §1352, the Byrd Anti-Lobbying Amendment. No federal funds may be expended by the Sponsor to pay any person for influencing or attempting to influence any federal agencies, their officers or employees, a member of congress, members’ employees, or an officer or employee of Congress in connection with any of the following: the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any federal contract, grant, loan or cooperative agreement. The prohibition extends to consultants or contractors bidding or contracting for work financed with federal funds in excess of $100,000. Sponsors must include language specified by the FAA in any contract or subcontract that would result in expenditure of federal funds exceeding the $100,000 threshold. FAA Order 5100.38C AIP Handbook (Cancelled); http://www.faa.gov/airports/airport_development/omp/ funding/PFC_06-19-C--00- ORD_ADMIN_REC/MEDIA/DOC-053.pdf Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01-29-2016), Appendix A, section A17; http://www.faa.gov/airports/aip/procurement/federal_c ontract_provisions/

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.1.7 Grant Assurance 1 (Project-specific) 184 6. 49 CFR Part 30—Denial of public works contracts to suppliers of goods and services of countries that deny procurement market access to U.S. contractors No contract may be awarded to an entity (1) that is owned or controlled by one or more citizens or nationals of a foreign country included on the list of countries that discriminate against U.S. firms published by the United States Trade Representative (USTR); or (2) the subcontractors of which are owned or controlled by one or more citizens or nationals of a foreign country on such U.S.T.R. list; or (3) that incorporates in the public works project any product of a foreign country on such U.S.T.R. list; unless a waiver to these restrictions is granted by the President of the United States or the Secretary of Transportation. Chapter 501 of Title 49 United States Code provides statutory coverage for these restrictions. Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01-20-2016), Appendix A, section A24; http://www.faa.gov/airports/aip/procurement/federal_ contract_provisions/

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.2.1, Grant Assurance 2 185 Section 2.2 Sponsor Capability 2.2.1 Grant Assurance 2, Responsibility and Authority of the Sponsor This assurance is in two parts, one covering public agency sponsors and one covering private sponsors. a. In the case of a public agency Sponsor, the Sponsor is attesting that: (1) it has legal authority to apply for this grant, including the ability to finance and carry out the proposed project; and (2) an authorizing resolution, motion or similar action has been adopted or passed by its governing body, including all conditions and assurances, and authorizing the person identified as its official representative to submit the application. b. In the case of a private Sponsor, the Sponsor is attesting that: (1) it has legal authority to apply for this grant, including the ability to finance and carry out the proposed project; and (2) it will authorize an official to file an application, including all conditions and assurances. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Execution of grant Denial of grant offer What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Demonstrate to FAA that it has the legal authority to request a grant and the ability to finance the project. Public agency applications must include a resolution or similar action passed by the governing body that binds the Sponsor for the grant conditions and assurances and identifying the person who will be the official representative. A private Sponsor must show it has the legal authority to apply and carry out the proposed project, and it must authorize an individual to file the application and agree to all grant conditions and assurances.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.2.1, Grant Assurance 2 186 What May the Sponsor Do? Select the exact form and language for the required resolution, authorization, etc. There is no required FAA wording. What Sponsor Actions Are Prohibited? Submitting a grant application without the document specified in Grant Assurance 2. What Are the Exceptions to the Requirements/Prohibitions? The grant assurance requirement does not apply to a project with no federal funds. Supplementary Information Recommended Practices  It is recommended that the governing body’s legal counsel provide a determination that a “similar action” referenced in the grant assurance is equivalent to an adopted resolution or motion that legally demonstrates the application is provided by a party with legal authority to request the grant and obligate the governing body to all requirements, including fund availability for its portion of the project. Related Grant Assurances  Grant Assurance 3, Sponsor Fund Availability Common Questions Q. My airport board wants to join with the state to do this project. Is there any problem with this arrangement? A. No, a state may be a Sponsor of an airport for a specific project, or the legal governing organization for the airport can be a Sponsor. There is no objection to both parties being co-Sponsors. Q. I had difficulty getting my governing body to meet to pass a resolution to pursue a grant in the last few days in the federal fiscal year. Can I apply as the airport director to take advantage of some remaining funding if the project is already in my capital improvement plan?

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.2.1, Grant Assurance 2 187 A. No, you must have a resolution passed for each grant request to demonstrate that you are an authorized representative and that the locality has funding and the ability to undertake the project. Examples of Practices Found in Compliance 1. The FAA found that there was nothing objectionable about co-sponsorship of the airport by the city and the county in and of itself under Grant Assurance 2. Ricks v. Greenwood-Leflore Airport—No. 16-09-04.—No. FAA-2011-0279. FAA-2011-0279-0032. 2011 FAA LEXIS 37. 2011 WL 381953. Director’s Determination (January 24, 2011). LRD 21 Determination No. 225. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 2 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.2.2, Grant Assurance 3 188 2.2.2 Grant Assurance 3, Sponsor Fund Availability The Sponsor must have sufficient funds to provide the local share (funds not including federal government funds). It also must have sufficient funds available to assure operation and maintenance of items it owns or controls that were constructed or acquired under the grant. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Conclusion of Project May include suspension and/or termination of grant and withholding of federal reimbursements. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Demonstrate prior to receiving a grant that it has local funding equal to the nonfederal share of project costs. What May the Sponsor Do? Select the source of non-federal funding, which include state funding or donations from the community in addition to its own capital fund. What Sponsor Actions Are Prohibited? Request or perform fund drawdowns that equate to full reimbursement by federal funds at any time before use of the corresponding local share for the same work. Sponsors may not rely on funds from another federal program to pay for the local share of an AIP-grant-funded project, unless the authorizing legislation for that other program explicitly authorizes the funds to be used as a local matching share for AIP grants.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.2.2, Grant Assurance 3 189 What Are the Exceptions to the Requirements/Prohibitions? Funds from certain federal economic development programs may be used for the local match, if the authorizing legislation for those programs specifically permits those funds to be used as the local match for other federal grant programs. The two programs identified by the FAA are listed in the Common Questions. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this Grant Assurance. Related Grant Assurances  Grant Assurance 2, Responsibility and Authority of the Sponsor Common Questions Q. I have discussed the project with local large businesses in my community. In a meeting, they have said they will help financially. My ADO says that is not sufficient. How should I approach it? A. You should ask the local businesses to provide written evidence that identifies the level of support to be provided. You should also provide the ADO with any ability to raise funding (for example, ability to tax or provide bonding or other forms of indebtedness) in the event that the level of support is not realized. Similarly, state-provided funding should also show the contingent state funding should the AIP grant be issued. Q. What are some of the federal programs that can be used for the Sponsor’s local match? A. To date, the FAA has identified two federal programs—(1) the Appalachian Development Corporation; and (2) the Tennessee Valley Authority. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 3 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 3 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.1, Grant Assurance 6 190 Section 2.3 Local Involvement 2.3.1 Grant Assurance 6, Consistency with Local Plans The project must be reasonably consistent with plans (existing at the time of submission of the application) of public agencies that are authorized by the state in which the project is located to plan for the development of the area surrounding the airport. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Award of grant Failure to be consistent with local plans, or objections by local plan agencies can result in withholding grant offer. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Coordinate with local planning agencies to determine impact, if any, and mitigation to disruption of local adopted plans, if needed to be reasonably consistent. What May the Sponsor Do? Select the method of coordination with local planning agencies, and if necessary, any mitigation measures, so long as the result is a project that is reasonably consistent with local plans. What Sponsor Actions Are Prohibited? Proceeding with requesting a project with little or no regard for local adopted plans. What Are the Exceptions to the Requirements/Prohibitions? The grant assurance requirement does not apply to a project with no federal funds.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.1, Grant Assurance 6 191 Supplementary Information Recommended Practices It is recommended that the locally designated planning agency be kept apprised of projects that may affect off-airport efforts. Related Grant Assurances  Grant Assurance 7. Consideration of Local Interest  Grant Assurance 10, Metropolitan Planning Organizations Common Questions Q. What can we do to comply with this assurance? A. Many airports provide an opportunity to local planning agencies to participate in master plan groups, advisory boards and similar activities. Additionally, airports have provided staff to attend local planning meetings to help resolve conflicts early in the process. There are occasions when the differences cannot be overcome and the airport must show that it has reasonably attempted to accommodate and coordinate activities. Examples of Practices Found in Compliance 1. A Sponsor was not in violation of Grant Assurances 6 or 7 when (1) a neighboring (complaining) city had a representative on the 1997 Master Plan study committee; (2) the neighboring (complaining) city had a representative on the Aviation Advisory Board in non-voting status; and (3) various state public agencies were authorized to plan for the development of the area surrounding the airport. Town of Fairview, Tex. v. City of McKinney, Tex. (1999)—No. 16-99-04. Director's Determination. 1999 FAA LEXIS 799. 1999 WL 768850. Director’s Determination (September 20, 1999). LRD 21. Determination No. 55. Withdrawn and remanded by Order of Remand of March 28, 2000. LRD 21 Determination No. 60. Violation found in part by Director's Determination on Remand (July 26, 2000). LRD 21 Determination No. 69. 2. The fact that a neighboring city’s representatives were not voting members on the Airport Advisory Board and the Master Plan Study Committee did not amount to a violation of Grant Assurances 6 or 7. The complaining city did not offer evidence on appeal to overcome the fact that the airport had received letters from a number of Texas public agencies authorizing the plan to develop the area around the airport. Because the airport acknowledged potential impacts of flights over the neighboring city, FAA could not reasonably determine respondent violated Grant Assurances 6 or 7. (p. 28). Town of Fairview, Tex. v. City of McKinney, Tex. (1999)—No. 16-99-04. 2000 FAA LEXIS 738. 2000 WL 1100236. Director's Determination on Remand (July 26, 2000). LRD Determination No. 69—Remand from Order of Remand (March 28, 2000). LRD 21. Determination No. 60. Affirmed by Final Decision and Order of January 23, 2001. LRD 21 Determination No. 79.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.1, Grant Assurance 6 192 3. In the same case, the FAA held that Grant Assurance 6 does not apply to a project with no AIP funds, and that the Sponsor, therefore, cannot violate Grant Assurance 6 for a locally funded project even if it has not given due consideration to local plans. Town of Fairview, Tex. v. City of McKinney, Tex. (1999)—No. 16-99-04. 2000 FAA LEXIS 738. 2000 WL 1100236. Director's Determination on Remand (July 26, 2000). LRD Determination No. 69—Remand from Order of Remand (March 28, 2000). LRD 21. Determination No. 60. Affirmed by Final Decision and Order of January 23, 2001. LRD 21 Determination No. 79. 4. The FAA held that by issuing an airport development grant to the airport, the FAA made the required statutory finding that the project was reasonably consistent with the complaining town's plans for the development of the area surrounding the airport and therefore already determined that respondent's plan was in compliance with Grant Assurance 6. Comm. to Stop Airport Expansion v. Town of E. Hampton—No. 16-02-04.—No. FAA-2002-12981. FAA-2002-12981-0009. 2002 WL 32341418. Order of Dismissal (June 24, 2002LRD 21 Determination No. 101. Withdrawn by Order of Dismissal of June 28, 2005. LRD 21 Determination No. 140. Petition for review dismissed sub nom. Comm. to Stop Airport Expansion v. FAA, 320 F.3d 285 (2d Cir. 2002). Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 6 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.2, Grant Assurance 7 193 2.3.2 Grant Assurance 7, Consideration of Local Interest Sponsor must certify that it has given fair consideration to the interest of communities in or near where the project may be located. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Award of grant Failure to give fair consideration to the interests of nearby communities can result in withholding grant offer. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Coordinate with neighboring communities on projects having an impact on the communities. What May the Sponsor Do? Select the method of coordination with local communities, as long as it is effective. What Sponsor Actions Are Prohibited? Applying for a grant for a project without coordinating with the communities impacted by the project. What Are the Exceptions to the Requirements/Prohibitions? The grant assurance requirement does not apply to a project with no federal funds. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.2, Grant Assurance 7 194 Related Grant Assurances  Grant Assurance 6. Consistency with Local Plans  Grant Assurance 8, Consultation with Users  Grant Assurance 10, Metropolitan Planning Organization Common Questions Q. Once we have received a grant, does that mean that all of our future activities must comply with this requirement? A. Although it is prudent to consider the local interests before proceeding with any development, this assurance does not apply to any activities not related to federally funded projects. Examples of Practices Found in Compliance 1. A neighboring city complained that a Sponsor improperly cancelled a Recommended Noise Abatement Procedure (RNAP). Because Grant Assurance 7 is only applicable to federally funded airport development projects and the original implementation of the RNAP was not associated with a federally funded project, the Sponsor was not under any federal obligation to consult with the complaining city or other adjacent municipalities in matters of airport operations and/or maintenance by notifying the neighboring city of the RNAP cancellation; providing an opportunity for a public hearing about the RNAP cancellation; or maintaining the RNAP. The airport met its obligations under Grant Assurance 7 by providing ample information about the RNAP cancellation through a Part 150 consultation and public hearings. Grant Assurance 7 did not obligate the airport to integrate the comments and concerns of every individual or party with some interest in developing a federally funded project. To the extent that Grant Assurance 7 applied, the subjective requirement to give “fair consideration” to the interest of communities in or near the project was met by the Sponsor, who announced and held meetings open to the public, gave the neighboring city and other community members the opportunity to comment on the proposed development, and granted the public open access to the Airport’s Master Plan and Part 150 Noise Study Information. Town of Fairview, Tex. v. City of McKinney, Tex. (2004)—No. 16-04-07.—No. FAA-2005-20888. FAA-2005-20888-0021. 2005 FAA LEXIS 936. 2005 WL 3446664. Final Decision and Order (November 30, 2005). LRD 21 Determination No. 147. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 7 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.3, Grant Assurance 8 195 2.3.3 Grant Assurance 8, Consultation with Users. The Sponsor must certify that it has consulted with affected users of the airport for any development project. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All except planning Award of grant Failure to consult with the affected users can result in withholding grant offer. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Consult with affected airport users before applying for a grant. What May the Sponsor Do? Select the method of consultation with airport users. What Sponsor Actions Are Prohibited? Applying for a grant for a project without consulting with airport users. What Are the Exceptions to the Requirements/Prohibitions? The grant assurance requirement does not apply to a project with no federal funds. Supplementary Information Recommended Practices  If a project will displace airport tenants, consult with the FAA about the applicability of 49 CFR Part 24 and the eligibility of costs associated with relocation of the tenants.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.3, Grant Assurance 8 196 Related Grant Assurances  Grant Assurance 7, Consideration of Local Interest  Grant Assurance 9, Public Hearings  Grant Assurance 35, Relocation and Real Property Acquisition (for projects involving displacement of airport tenants) Common Questions Q. Who or what is considered a “user”? A. An airport user is considered to be someone who is using the airport for an aeronautical activity or for support of aeronautical activities. Examples of Practices Found in Compliance 1. The FAA held that the requirement that a Sponsor consult with airport users affected by the development project did not apply to the complainant, because an adjacent town is not an airport user within the meaning of Grant Assurance 8. The FAA interprets "airport users" to mean those who find themselves on the airport, usually for aeronautical activities or for support of those activities (e.g., pilots or airport tenants). Town of Fairview, Tex. v. City of McKinney, Tex. (2004)—No. 16-04- 07.—No. FAA-2005-20888. FAA-2005-20888-0015. Director's Determination (June 28, 2005). LRD 21 Determination No. 141. Affirmed by Final Decision and Order of November 30, 2005. LRD Determination No. 147. 2. The FAA held that a Sponsor did not violate Grant Assurance 8 for not holding specific consultation meetings with users while it was developing its Airport Master Plan when (1) the manager of airport planning indicated the intention to involve various affected parties in the planning process; (2) the public attended meetings and had access to documents through the airport’s website prior to meetings; (3) there was media coverage of the airport planning process and issues impacting the Airport Master Plan were voted on in a public election; and (4) the complaining FBO had been active in voicing its opinion regarding proposed changes affecting the FBO site both directly and through consultants and other representatives. Jimsair Aviation Servs., Inc. v. S.D. Cnty. Regional Airport Auth—No. 16-06-08.—No. FAA-2006-25225. FAA-2006-25225-0028. 2007 FAA LEXIS 272. 2007 WL 2405821. Director's Determination (April 12, 2007). LRD 21 Determination No. 174. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 8 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.4, Grant Assurance 9 (Public Hearings) 197 2.3.4 Grant Assurance 9, Public Hearings (Public Hearing Requirements) This requirement applies to projects that involve the final location of an airport, a new runway or a major runway extension. The Sponsor must certify it has given the opportunity for public hearings for the purpose of considering (1) the economic, social and environmental effects of the airport or runway location; and (2) its consistency with the goals and objectives of planning that have been carried out by the community. Upon request of the FAA, the Sponsor must submit a copy of the transcript of the hearings. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction including land acquisition, noise and planning Award of grant Failure to provide an opportunity for a public hearing involving a new airport location, new runway or major runway extension may result in withholding a grant offer. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Certify that it provided an opportunity for a public hearing for the projects subject to the grant assurance (new airport, new runway or major runway extension) that considered (1) the economic, social, and environmental effects of the airport or runway location and (2) its consistency with the goals and objectives of planning that has been carried out by the community. Upon request, provide a copy of the public hearing transcript to the FAA. What May the Sponsor Do? Select the method of public hearing, as long as the hearing considers the issues identified in the grant assurance. What Sponsor Actions Are Prohibited? Applying for a grant for a covered project without holding the required public hearing.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.4, Grant Assurance 9 (Public Hearings) 198 What Are the Exceptions to the Requirements/Prohibitions? The grant assurance requirement does not apply to a project with no federal funds. The grant assurance requirement does not apply to AIP-funded projects other than new airports, new runways or major runway extensions. Supplementary Information Recommended Practices  Sponsors sometimes use the master planning process or environmental review under NEPA to satisfy this requirement. Related Grant Assurances  Grant Assurance 6, Consistency with Local Plans  Grant Assurance 7, Consideration of Local Interest  Grant Assurance 8, Consultation with Users  Grant Assurance 10, Metropolitan Planning Organizations Common Questions Q. Does the requirement for public hearings apply to less extensive projects? A. No. Legally only those projects involving the final location for an airport and new runway or a major runway extension drive the need for an opportunity for a public hearing under this grant assurance. However, public participation may be required as part of an environmental review under NEPA. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 9 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 9 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.5, Grant Assurance 9 (Governing Body) 199 2.3.5 Grant Assurance 9, Public Hearings (Governing Body Requirements) This requirement applies to projects that involve the final location of an airport, a new runway or a major runway extension. In addition to the public hearing requirement for such projects described in section 2.3.4, the Sponsor either (1) must have on its governing body voting representation from the communities where the project is located; or (2) must advise the communities that they have the right to petition the FAA about the project. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction including land acquisition, noise and planning Award of grant Failure to provide an opportunity for a public hearing involving a new airport location, new runway or major runway extension may result in withholding a grant offer. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Either include on its governing body voting representation from the communities where a new airport, new runway or major runway extension project is located, or Advise those communities that they have a right to petition the FAA about a covered project. What May the Sponsor Do? Choose either method listed above to satisfy this requirement. If providing voting representation, choose the nature and extent of voting representation. What Sponsor Actions Are Prohibited? Applying for a grant for a covered project if the community where the project is located does not have voting representation or has not been advised of its right to petition the FAA.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.5, Grant Assurance 9 (Governing Body) 200 What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. The Grant Assurance requirement does not apply to AIP-funded projects other than new airports, new runways or major runway extensions. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances  Grant Assurance 7, Consideration of Local Interest Common Questions Q. For a project covered by Grant Assurance 9, is there a minimum number of votes that must be provided to the community where the project is located? A. No. The grant assurance specifies voting representation, but it does not establish a minimum level of voting representation in either absolute or proportional terms. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 9 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 9 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.6, Grant Assurance 10 201 2.3.6 Grant Assurance 10, Metropolitan Planning Organization Grant Assurance 10 applies only at large or medium hub airports (having at least .25 percent of national enplanements). The requirement applies to projects that involve the final location of an airport, a new runway or a major runway extension. The Sponsor must certify that it has made available to and has provided upon request to the metropolitan planning organization (MPO) in the area in which the airport is located, if any, a copy of the proposed amendment to the airport layout plan to depict the project and a copy of any airport master plan in which the project is described or depicted. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction including land acquisition, noise and planning Award of grant Withholding a grant offer or termination of a grant. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Provide a copy of an ALP amendment or master plan for a new airport location, new runway or major runway extension at a large or medium hub airport to an MPO in the area of the airport. What May the Sponsor Do? Choose the format of the documents, electronic versus paper copy. What Sponsor Actions Are Prohibited? Applying for a grant for a covered project without providing the required documents to the MPO.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.3.6, Grant Assurance 10 202 What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. The Grant Assurance requirement does not apply to AIP-funded projects other than new airports, new runways or major runway extensions. The Grant Assurance requirement does not apply to airports that are smaller than medium hub airports. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Full Text of Grant Assurance Related Grant Assurances  Grant Assurance 6, Consistency with Local Plans  Grant Assurance 7, Consideration of Local Interests Common Questions Q. If we choose not to seek federal funding for the project, will we still need to comply with this requirement? A. No. This provision only applies to the kinds of projects listed above that will have federal grant funding. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 10 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 10 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.1, Grant Assurance 12 203 Section 2.4 Project Implementation 2.4.1 Grant Assurance 12, Terminal Development Prerequisites Under Grant Assurance 12, the Sponsor must certify that it has met the requirements for all the safety equipment under Part 139 and all the security equipment required under Part 1542 when it submits a grant application for terminal development. Also, it must certify that it has provided for access to the passenger enplaning and deplaning area to passengers using general aviation aircraft. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction, equipment, land acquisition Award of grant Withholding of a grant offer What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Provide a certification that all required equipment is at the airport and appropriate access is provided. What May the Sponsor Do? Choose the precise wording of the certifications. There is no single FAA required wording. What Sponsor Actions Are Prohibited? Applying for a grant for a terminal development project without providing the required certifications. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. The Grant Assurance requirement does not apply to a non-certificated airport.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.1, Grant Assurance 12 204 Supplementary Information Recommended Practices  Regular updates to the airport’s capital improvement program (CIP) and regular coordination with the FAA will help assure that the Sponsor will be able to make the required certifications. Related Grant Assurances None for this grant assurance. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 12 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 12 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.2, Grant Assurance 14 205 2.4.2 Grant Assurance 14, Minimum Wage Rates This assurance requires the Sponsor to comply with the minimum wage rates determined by the Secretary of Labor under the Davis-Bacon Act for AIP-funded construction projects greater than $2,000. The Sponsor must include the minimum wage rate requirement in all construction contracts and subcontracts for the project. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions1 Project-specific Construction, equipment, land acquisition,2 noise Conclusion of project Civil enforcement Criminal enforcement Withholding of grant payments Suspension and debarment 1 Sanctions are based on Department of Labor procedures and policies. Civil enforcement may include direction to withhold payments to the contractor. Suspension and debarment are applicable to contractors and subcontractors that fail to pay required minimum wages. 2 Limited to land acquisition that includes construction activities. What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Acquire from the U. S. Department of Labor (U.S. DOL) a table of minimum wage rates representing the job categories used in any construction contract for a project. Project wage rates can be acquired directly from the U. S. Department of Labor or through https://www.wdol.gov/dba.aspx. If the appropriate wage rate is not available through the website, the Sponsor must contact the Wage and Hour Division at the Department of Labor. Require the contractor and its subcontractors to provide weekly payroll records together with a signed statement of compliance to the Sponsor. What May the Sponsor Do? Require payment of a higher rate than the federal prevailing wage, based on local requirements. However, grant reimbursement will be based on the federal wage rate, unless the Sponsor obtains a specific determination from U.S. DOL that the locally mandated rate qualifies as the prevailing wage or the FAA agrees that the higher wage is reasonable and necessary based on local conditions.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.2, Grant Assurance 14 206 What Sponsor Actions Are Prohibited? Failure to include appropriate wage rates in construction solicitations. Failure to require the contractors to provide the appropriate wage rates for employees. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. AIP-funded construction projects with a value of less than $2,000 are exempt from the minimum wage requirement. Otherwise, there are no exceptions. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances Labor requirements contained in Grant Assurance 1, including:  Federal Legislation o b. Davis-Bacon Act—40 USC 276(a), et seq. o c. Federal Fair Labor Standards Act—29 USC 201, et seq. o t. Contract Work Hours and Safety Standards Act—40 USC 327, et seq.  Federal Regulations o c. 2 CFR Part 1200—Nonprocurement Suspension and Debarment o h. 29 CFR Part 1—Procedures for predetermination of wage rates. o i. 29 CFR Part 3—Contractors and subcontractors on public building or public work financed in whole or part by loans or grants from the United States. o j. 29 CFR Part 5—Labor standards provisions applicable to contracts covering federally financed and assisted construction (also labor standards provisions applicable to non- construction contracts subject to the Contract Work Hours and Safety Standards Act). Common Questions Q. My community has a minimum wage that is different than the Davis-Bacon wage determination. Can we use the local wage instead of the federal wage?

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.2, Grant Assurance 14 207 A. If a local wage is lower than the federal wage, the answer is no. If the community has a higher wage, the Sponsor may require the payment of the higher local minimum, but it may not be entitled to reimbursement based on the higher rate. The answer is based upon the concept of allowable cost. Under the AIP law, allowable cost must be determined by the FAA (standing in for the U.S. Secretary of Transportation) to be reasonable and necessary for the project. Generally, the FAA has determined that the federal wage rate determination is the basis for “reasonable and necessary costs.” Any change to the Davis-Bacon wage determination should be decided by the U. S. Department of Labor (U.S. DOL). Sponsors may request a specific wage determination reflecting local law from the U.S. DOL. If accepted, the new wage rate is applicable for purposes of reimbursement. The Sponsor may also request that FAA determine the higher wage rate to be “reasonable” based upon local conditions. In no event will the FAA accept a lower rate than the U.S. DOL determined wage rate. Q. The wage rate is not complete in that it does not address all of the laborers and mechanics. How should we handle this? A. While a U.S. DOL wage rate determination covers a wide range of classifications, it is possible that a U.S. DOL wage rate determination may not include all of the classifications needed for the airport project. A procedure for determining an appropriate wage is contained section A10.3, paragraph 1.(ii) of the Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01/29/2016), Appendix A, section A10; http://www.faa.gov/airports/aip/procurement/federal_contract_provisions/ Q. What level are apprentices and trainees paid under a wage determination? A. It is common that there are apprentices and trainees working on construction matters. They may be paid less than the minimum wage due to their status, but the rates are still carefully controlled by the U.S. DOL and are usually specified in the wage rate determination. Please refer to section A10.3 of the Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors (01/29/2016), Appendix A, section A10.3, paragraph 4. http://www.faa.gov/airports/aip/procurement/federal_contract_provisions/ Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 14 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 14 were identified during the research. However, FAA staff advise that occasionally, potential non-compliance with Grant Assurance 14 may result in a qualified auditor’s opinion under the Single Audit Act, which in turn results in an FAA request for corrective action.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.3, Grant Assurance 15 208 2.4.3 Grant Assurance 15, Veteran’s Preference This grant assurance requires a Sponsor to require, in all contracts for work on an AIP-funded project that involve labor, that preference be given to Vietnam era veterans, Persian Gulf veterans, Afghanistan- Iraq war veterans, disabled veterans and small business concerns owned and controlled by disabled veterans. However, this preference applies only when the individuals are available and qualified to perform the work required and does not include jobs in executive, administrative and supervisory positions. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Conclusion of project Withholding of grant offer or termination of grant What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Require contractors to have hiring systems that give preference to veterans of conflicts from Vietnam, the Persian Gulf and Afghanistan-Iraq conflicts and disabled veterans. Require contractors to give consideration to contracting with small business firms owned and controlled by disabled veterans, if available. What May the Sponsor Do? Choose between the language specified by the FAA in the Required Contract Provisions for Airport Improvement Program and Obligated Sponsors (2016), Appendix A, §A25 or alternative language, so long as the alternative language meets the requirements of the grant assurance. What Sponsor Actions Are Prohibited? Failure to include the veteran’s preference requirement in its contracts for labor.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.3, Grant Assurance 15 209 What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. The required preference does not apply if there are no individuals available and qualified to do the work and does not apply to executive, administrative and supervisory positions. Supplementary Information Recommended Practices Use of the contract clause language specified in the Required Contract Provisions for Airport Improvement Program and Obligated Sponsors (2016), Appendix A, §A25, while not required, will avoid questions of non-compliance on the FAA’s part. Related Grant Assurances None for this grant assurance. Common Questions Q. Try as we might, we do not seem to be able to increase the number of veterans being hired for our construction jobs. How should we approach this? A. The requirement only applies if there are individuals available and qualified for the work. However, one might attempt to make outreach efforts with veterans’ groups and emphasize at job fairs the airport participates in to advise veterans of the opportunities. Reminders would also be helpful at public pre-bid meetings with prospective contractors. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 15 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 15 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.4, Grant Assurance 16 210 2.4.4 Grant Assurance 16, Conformity to Plans and Specifications The Sponsor must submit plans, specifications and schedules to FAA for approval if required and must follows the plans, specifications and schedules approved by the FAA. If the FAA has approved the original plans, specifications or schedules, the Sponsor must also submit modifications for FAA approval. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Conclusion of project Withholding of grant offer or payments What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) If requested by the FAA, provide plans, specifications and schedules for approval. Follow any plans, specifications and schedules submitted to and approved by the FAA. Submit for FAA approval modifications to any plans, specifications or schedules previously approved by the FAA. What May the Sponsor Do? Subject to any requirements in GA 17 and GA 34, summarized below, and FAA’s approval authority, a Sponsor has discretion to adopt in the first instance plans, specifications and schedules. What Sponsor Actions Are Prohibited? Failure to submit plans, specifications or schedules to the FAA when required. Failure to submit modifications to plans, specifications or schedules previously approved by the FAA. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. The FAA may choose not to require submission of plans, specifications or schedules for a particular project.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.4, Grant Assurance 16 211 Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances Grant Assurance 17, Construction Inspection and Approval Grant Assurance 34, Policies, Standards, and Specifications Common Questions Q. We have been approached by companies that have advised us that their specifications have been approved by FAA, so there is no need to submit for approval. We would like to use these specifications. How can we accomplish this? A. A simple communication with your program manager at the ADO should be the place to start. The program manager will be able to advise whether review will be necessary. One should understand that companies would like to have an advantage for bidding purposes, so, to reduce protests from other bidders, communication with the ADO is very important. This is not to say that there is anything necessarily wrong with the specifications from suppliers, but these specifications could be emphasizing areas that FAA might find troublesome or unnecessary. Examples of Practices Found in Compliance 1. Grant Assurance 16 does not apply to airport planning projects undertaken by a Sponsor, but instead applies only to construction projects or equipment purchases funded with AIP grants. Jimsair Aviation Servs., Inc. v. S.D. Cnty. Regional Airport Auth.—No. 16-06-08.—No. FAA-2006-25225. FAA-2006-25225-0028. 2007 FAA LEXIS 272. 2007 WL 2405821. Director's Determination (April 12, 2007). LRD 21 Determination No. 174. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 16 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.5, Grant Assurance 17 212 2.4.5 Grant Assurance 17, Construction Inspection and Approval a. The Sponsor must provide competent technical supervision at the construction site throughout the project to assure that the work conforms to the plans, specifications and schedules approved by the FAA for the project. b. Also, the Sponsor must provide for and/or permit FAA to inspect the work, including cost and progress reporting by the Sponsor of such project FAA requires. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All construction, including noise mitigation construction Conclusion of project Failure to provide adequate technical supervision may result in rejection of work and withholding of payments What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Have a technical representative at the construction site during all phases. The technical representative may be an employee of the airport or a consultant independent of the construction contractor. What May the Sponsor Do? Choose between using a Sponsor employee or consultant independent of the construction contractor as the on-site technical representative. What Sponsor Actions Are Prohibited? Failure to have an on-site technical representative. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.5, Grant Assurance 17 213 Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances Grant Assurance 16. Conformity to Plans and Specifications Grant Assurance 34, Policies, Standards, and Specifications Common Questions Q. We require that construction companies provide foremen that provide oversight. Is this sufficient? A. No. Foremen work for the construction company and will be reviewing work from that viewpoint. Technical representatives work for the airport either as staff or as consultants and are used to protect the investment on behalf of the airport and FAA. Examples of Practices Found in Compliance 1. FAA dismissed allegations of a violation of Grant Assurance 17, Construction Inspection and Approval, in its Notice to Docket dated February 11, 2004, because the complainant failed to provide any relevant evidence in the original complaint that would support a violation of this particular obligation. Keathly v. City of McKinney, Tex.—No. 16-03-14.—No. FAA-2003-15999. 2004 FAA LEXIS 876. 2004 WL 3198207. Director's Determination (October 13, 2004). LRD 21 Determination No. 128. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 17 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.6, Grant Assurance 18 214 2.4.6 Grant Assurance 18. Planning Projects The Sponsor must meet numerous requirements when doing grant-funded planning projects. a. Make sure the approved project narrative is followed. b. Provide periodic reports as required. c. Include in all published material a notice that the material was prepared under a grant provided by the United States. d. Make material available for review by the public, and agree that no material prepared will be subject to copyright in the United States or any other country. e. Give the FAA unrestricted authority to publish, disclose, distribute and otherwise use any of the material prepared. f. Give FAA the right to disapprove the Sponsor's employment of specific consultants and their subcontractors as well as the right to disapprove the proposed scope and cost of professional services. g. Give FAA the right to disapprove the use of the Sponsor's employees to do all or any part of the project. h. Certify that it understands and agrees that the FAA’s approval of this project or material developed under the project does not constitute commitment on the part of the FAA to approve any pending or future project application. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Planning Conclusion of project Termination of grant or withholding of payments What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Meet the requirements specified in the grant assurance and summarized above. What May the Sponsor Do? A Sponsor may have some discretion in the methods used to satisfy some of the specific requirements of this grant assurance.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.6, Grant Assurance 18 215 What Sponsor Actions Are Prohibited? Failing to satisfy any of the individual requirements. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. Supplementary Information Recommended Practices  Consultation with the FAA to assure compliance with all the requirements of the grant assurances is advisable. Related Grant Assurances None for this Grant Assurance. Examples of Practices Found in Compliance 1. In a case in which a master plan update was underway, the Sponsor did not violate Grant Assurance 18 by proposing changes to the allocation of fixed-base operator space when these changes were presented in draft form and made available for public comment. Jimsair Aviation Servs., Inc. v. S.D. Cnty. Regional Airport Auth—No. 16-06-08.—No. FAA-2006-25225. FAA-2006-25225-0028. 2007 FAA LEXIS 272. 2007 WL 2405821. Director's Determination (April 12, 2007). LRD 21 Determination No. 174. Affirmed Final Agency Decision and Order of August 9, 2007. LRD 21 Determination No. 182. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with grant assurance 18 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.7, Grant Assurance 32 216 2.4.7 Grant Assurance 32, Engineering and Design Services The Sponsor must follow the requirements of the Brooks Act (qualification-based selection) for each contract, or subcontract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services with respect to the project. Please note that the Brooks Act itself generally deals with architectural/engineering (A/E) services. Grant Assurance 32 expands its use for other types of professional services. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction, equipment, land acquisition, noise Completion of project Withholding of grants What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Use qualifications-based selection for professional services by restricting information in response to professional service contract solicitations to qualifications only. Defer review of unsolicited cost information until after best-qualified candidate has been selected. What May the Sponsor Do? Use evaluation criteria designed to select the most qualified professional service and to follow procedures such as interviews to determine the most qualified. When contracting for professional services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract. (2 CFR 200.319). What Sponsor Actions Are Prohibited? Asking for cost information in the first step leading to the selection of best qualified consultant, etc. Cost information may be requested only after the best-qualified consultant, etc., has been determined. If a contract cannot be consummated with the best-qualified, the second best-qualified may be requested to enter cost negotiations after the best-qualified is eliminated. Resuming price negotiations with a candidate once negotiations have terminated with that candidate and price negotiations have commenced with other candidates.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.7, Grant Assurance 32 217 What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances  Grant Assurance 1 General Federal Requirements, Federal Regulations, item b. 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Common Questions Q. Can a Sponsor request cost information in a separate sealed envelope from all respondents if the information remains sealed until after the best-qualified is identified? A. No. Numerous Government Accountability Office (GAO) decisions have determined that this practice is not permitted, even if the cost information remains sealed. The GAO decisions have dealt with the actual Brooks Act and not the AIP provision, but the AIP provision requires that the contracting must be done in the same method as the Brooks Act. Q. The regulations covering grants permit a state to use its own procedures without regard to Federal requirements. Can a state owning an airport use a different method, including cost information? A. No. A regulation such as 2 CFR Part 200 cannot amend or override Federal law. It may only implement the law. Since the AIP provision does not exclude states, the regulation cannot eliminate that requirement. Q. We do not use the Advisory Circular verbatim for these contracts. May we use our own system? A. The law permits an equivalent qualifications-based system. Sponsors must demonstrate to FAA, and FAA must agree, that the system is equivalent. Sometimes states will require local jurisdictions to follow state law. If the state-prescribed system or the Sponsor’s system is equivalent, FAA can approve it for AIP purposes. If not, FAA can choose to decline to provide a grant for the design portions without affecting the airport development portion. AC 150/5100-14, Architectural, Engineering and Planning Consultant Services for Airport Grant Projects; www.faa.gov/airports_airtraffic/airports/resources/advisory_circulars) represents an approved method and is used by most sponsors.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.7, Grant Assurance 32 218 Examples of Practices Found in Compliance 1. The FAA held that a Sponsor had not violated Grant Assurance 32 through a failure to follow AC 150/5100-14 to the letter, because the AC does not have to be followed in every respect but contains one of many acceptable means of complying with AIP statutory requirements. The Sponsor’s divergence was not a violation, since the Sponsor appropriately evaluated more than three proposals at every phase of the architect/engineering selection process and ranked more than three firms at the second phase and complainant failed to show that the most qualified firm was not chosen. The FAA also held that announcement to the complainant of the Phase 2 interview ranking criteria just prior to the interview, while irregular, was not a material violation, because all firms participating in the phase 2 interview process were notified in the same way and the complainant had the opportunity to address the revised criteria during the interview. Yager & Assocs. v. Toledo-Lucas Cnty. Port Auth—No. 16- 97-08. 1998 FAA LEXIS 1133. 1998 WL 1083285. Record of Determination (April 23, 1998). LRD 21 Determination No. 40. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 32 were identified during the research.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.8, Grant Assurance 34 219 2.4.8 Grant Assurance 34, Policies, Standards and Specifications This assurance requires the Sponsor to follow the FAA standards in carrying out the project. Periodically, the FAA publishes a list of advisory circulars that apply to grant projects. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Conclusion of project Termination or suspension of grant or withholding of payments or grant offer What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Require designers to use the current Advisory Circulars (ACs) for the design of the project and execution of the project. Under 14 CFR Part 158, a Sponsor must also require designers to use the current Advisory Circulars for the design and execution of a PFC-funded project, even if no AIP funds are involved. What May the Sponsor Do? To the extent that the current ACs provide flexibility in meeting the design standards, a Sponsor may permit its designers to exercise that flexibility. What Sponsor Actions Are Prohibited? Sponsors may not implement AIP or PFC-funded projects that do not meet the current Advisory Circular standards for design and execution of the project. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no AIP or PFC funds.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.8, Grant Assurance 34 220 Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances Grant Assurance 16 Conformity to Plans and Specifications Grant Assurance 17 Construction Inspection and Approval Common Questions Q. How do I find out what Advisory Circulars are required? A. The FAA publishes a listing of required Advisory Circulars periodically. Q. What if I am finished with design or in the bidding process and an Advisory Circular is changed requiring changes to the design? A. You should immediately contact the ADO for advice. Depending on the issue and the timing, the design may not have to be changed. Do not make this decision on your own. Examples of Practices Found in Compliance 1. The bidder on an architectural/engineering services contract complained that the airport failed to follow the FAA Advisory Circular by appointing the FAA tower chief to the selection panel. Even though the AC does not recommend that FAA personnel act as consultants or participants in selection processes, the FAA held that the Sponsor’s deviation from AC guidelines in selecting architectural/engineering services to design an airport project did not constitute a Grant Assurance 34 violation, because the AC is intended to provide only guidance. There was no need to impose prospective sanctions on the Sponsor, because there was no evidence that inclusion of the tower chief in the airport’s architect/engineering selection committee for the procurement of architectural/engineering services was more than an isolated incident or that the Sponsor required additional incentives to follow AC policies. Yager & Assocs. v. Toledo-Lucas Cnty. Port Auth—No. 16-97-08. 1998 FAA LEXIS 1133. 1998 WL 1083285. Record of Determination (April 23, 1998). LRD 21 Determination No. 40. 2. The FAA determined that an airport’s runway with “a large hump [and] an obstructed view on the northern end of the extended runway, which was in violation of the Advisory Circular on Airport Design,” also violated Grant Assurance 34. The line of sight deviation issue was, by the time of the decision, resolved to all parties’ satisfaction, however. Because the Part 16 process does not address past violations, the FAA determined that the respondent was not in violation of Grant Assurance 34

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Section 2.4.8, Grant Assurance 34 221 since its actions “met the standards of reasonableness and due diligence.” Keyes v. McMinn Cnty., Tenn—No. 16-08-12.—No. FAA-2009-1056. Director's Determination (December 12, 2009). FAA-2009-1056-0008. Director’s Determination (December 12, 2009). LRD 21 Determination No. 212. Affirmed by Final Agency Decision and Order of July 26, 2010. LRD Determination No. 219. 3. Because the off-airport project was not an AIP-funded project, the FAA held that Grant Assurance 34 did not apply to the Sponsor’s design and construction of the project. The FAA also held that the Sponsor did not violate Grant Assurance 34 when it relied upon expert advice given by the FAA and U.S. Department of Agriculture (USDA). “The Respondent was reasonable to rely upon the expertise and guidance of FAA and USDA; it should not be penalized for such reliance.” Paskar v. City of New York—No. 16-11-04.—No. FAA-2011-0612-0214. Director’s Determination (September 27, 2012). LRD 21 Determination No. 238. Affirmed by Final Agency Decision of June 17, 2015. Review denied sub nom. Paskar v. FAA, 478 F. App'x 707 (2d Cir. 2012) (unpublished). Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 34 were identified during the research.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.4.9, Grant Assurance 35 222 2.4.9 Grant Assurance 35, Relocation and Real Property Acquisition This assurance implements the Uniform Relocation Assistance Real Property Acquisition Policies Act of 1970 for AIP-funded projects that involve real property acquisition and/or relocation. The implementing regulations are contained in 49 CFR Part 24. Grant Assurance 35 includes three clauses summarized below. Grant Assurance 35.a: This clause requires a Sponsor to follow the policies of Part 24 to the extent practicable in acquiring property and to pay property owners for necessary expenses. Grant Assurance 35.b: This clause requires a Sponsor to offer relocation assistance, including relocation services, and fair and reasonable relocation payments as specified in Part 24. Grant Assurance 35.c: This clause requires a Sponsor to make comparable replacement dwellings available to displaced people in a reasonable time before the displacement (emphasis added). Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction, land acquisition Conclusion of project Failure to adhere to Grant Assurance 35 could result in termination or suspension of the grant or withholding grant offer or payments What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Follow Part 24 to the extent practicable in acquiring property and pay property owners for necessary expenses. Attempt to negotiate a voluntary purchase before invoking condemnation rights, if any. Offer fair market value for the property during the negotiations for voluntary purchase. Offer relocation assistance, including relocation services and expenses specified in Part 24. Make comparable replacement dwellings available to displaced people before the displacement.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.4.9, Grant Assurance 35 223 What May the Sponsor Do? To the extent that Part 24 provides flexibility in meeting the requirements for relocation assistance and other requirements, Sponsors may exercise that flexibility. What Sponsor Actions Are Prohibited? Failing to offer relocation assistance. Proceeding to condemnation without attempting to negotiate a voluntary purchase. Failing to offer comparable replacement dwellings before removing people. Offering less than FMV during negotiations for voluntary purchase. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project that is neither funded by AIP nor used for an AIP-funded project. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances  Grant Assurance 1 General Federal Requirements, Federal Legislation: Item e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Title 42 USC 4601, et seq.  Grant Assurance 1 General Federal Requirements, Federal Regulations: Item p. 49 CFR Part 24—Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs. Common Questions Q. My airport has received many grants over many years. I have a project coming up using state funds. Do I need to follow the guidelines for relocation and real property acquisition? A. If the project is neither funded by AIP nor being used for an AIP project, the Sponsor does not have to follow this assurance.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.4.9, Grant Assurance 35 224 Q. My airport is acquiring three business properties to be used for a runway extension funded with AIP grants. Is the airport required to find replacement properties for these businesses before evicting them? A. No. While Part 24 and Grant Assurance 35 apply in this case, the replacement dwelling requirement is limited to residential property. While just compensation and relocation assistance are required, there is no requirement to provide replacement properties for businesses. Examples of Practices Found in Compliance 1. The FAA held that the Sponsor did not violate Grant Assurance 35 because the development that was the subject of the complaint was not a federally assisted project causing permanent displacement. Rather, it was a private development "causing some temporary displacements of based aircraft" at the Airport. Pac. Coast Flyers, Inc. v. Cnty. of S.D., Cal—No. 16-04-08.—No. FAA-2005-20675. FAA- 2005-20675-0021. 2005 FAA LEXIS 514. 2005 WL 1900515. Director’s Determination (July 25, 2005). LRD 21 Determination No. 143. Corrected by Errata LRD 21 Determination 143.1. 2. The FAA held that an eviction from the airport did not require the Sponsor to pay relocation assistance because the Sponsor had not displaced the tenant as a result of acquiring real property with federal funds. The Sponsor had not used federal assistance for the acquisition of real property in question. Orange Cnty. Soaring Ass'n v. Cnty. of Riverside, Cal.—No. 16-09-13.—No. FAA-2010- 0092. FAA-2010-0092-0012. Director's Determination (February 11, 2011). LRD 21 Determination No. 226. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 35 were identified during the research.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.4.10, Grant Assurance 37 225 2.4.10 Grant Assurance 37. Disadvantaged Business Enterprises Under this assurance, the Sponsor shall not discriminate on the basis of race, color, national origin or sex in the award and performance of any DOT-assisted contract covered by 49 CFR Part 26 or in the award and performance of any concession activity contract covered by 49 CFR Part 23. In addition, the Sponsor shall not discriminate on the basis of race, color, national origin or sex in the administration of its DBE and ACDBE programs or the requirements of 49 CFR Parts 23 and 26. The Sponsor shall take all necessary and reasonable steps under 49 CFR Parts 23 and 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts and/or concession contracts. The Sponsor’s DBE and ACDBE programs, as required by 49 CFR Parts 26 and 23, respectively, and as approved by DOT, are incorporated by reference in this agreement. Implementation of these programs is a legal obligation, and failure to carry out its terms shall be treated as a violation of this agreement. Grant Assurance 37 also specifies that the FAA can refer a failure to properly implement an approved program for criminal enforcement under 18 USC §1001 or civil enforcement, including debarment, under the Program Fraud and Civil Remedies Act of 1986 (49 USC §3810 et seq.). Although both programs are included in this single assurance, only the DBE program requirements of 49 CFR Part 26 apply to implementation of AIP-funded projects. Additional information about DBE requirements and Part 26 can be found in section 2.1.4. The ACDBE program requirements of 49 CFR Part 23 apply generally to airport operations and management; they are addressed in Chapter 1. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction, equipment, land acquisition, noise Conclusion of project Termination or suspension of the grant or withholding grant offer or payments

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.4.10, Grant Assurance 37 226 What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Avoid discrimination on the basis of race, color, national origin or sex in awarding all contracts for AIP-funded projects covered by 49 CFR Part 26 (Part 26). Prohibit discrimination on the basis of race, color, national origin or sex by general contractors and subcontractors for the purchase of any goods or services associated with any AIP-funded project covered by Part 26. As required by Part 26, establish overall DBE program goals for the Sponsor’s AIP-funded program, and, as needed, establish DBE participation goals for individual contracts. Make good faith efforts to accomplish those goals through race- and gender-neutral measures in the first instance, but through race- or gender-conscious measures, if necessary. Follow DBE certification procedures and standards included in Part 26. Maintain all records and documentation required by Part 26. What May the Sponsor Do? Part 26 identifies a variety of methods for Sponsors to attempt to meet their DBE participation goals. A Sponsor may select the particular methods, so long they can be reasonably expected to be successful in the Sponsor’s particular circumstances. What Sponsor Actions Are Prohibited? Discriminating on the grounds of race, creed, color, national origin or sex in AIP-funded projects covered by Part 26. Permitting discrimination on the basis of race, color, national origin or sex by a general contractor or subcontractor in contracting for goods or services for an AIP-funded project covered by Part 26. What Are the Exceptions to the Requirements/Prohibitions? The requirements for DBE programs specified in Part 26 apply only to federally funded projects.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.4.10, Grant Assurance 37 227 Supplementary Information Recommended Practices  Because the DBE requirements are so involved, airport staff should consult with their regional FAA DBE specialists and take advantage of the resource and references and educational opportunities available. Related Grant Assurances  Grant Assurance 1 General Federal Requirements, Federal Regulations: Item n. 49 CFR Part 21—Nondiscrimination in federally assisted programs of the Department of Transportation— effectuation of Title VI of the Civil Rights Act of 1964; Item q. 49 CFR Part 26—Participation by Disadvantaged Business Enterprises in Department of Transportation Programs. Common Questions Q. These requirements seem very involved. I can’t tell what I have to do just by reading the assurance, and it also seems to involve more than one aspect. How do I navigate this? A. The DBE requirements are very involved, so much so that there is an entirely separate office that provides the guidance for these programs. There are also specialists from this program office in FAA regional offices. There are many opportunities to learn more about the program through presentations and other educational opportunities provided by the FAA Office of Civil Rights. There are also specialty firms that you can engage to help you navigate all these requirements as well as state agencies. Examples of Practices Found in Compliance 1. The FAA held that it has jurisdiction to ensure that Sponsors required their contractors to comply with Part 23, but did not have direct jurisdiction over the contractors and does not have jurisdiction to investigate contractual disputes because they are outside the jurisdiction of Part 23 and Part 16. Furthermore, while the FAA had jurisdiction to investigate the complaining party’s allegations of retaliation and procedures for replacing a DBE, the FAA found no retaliation because complainant did not establish a specific act of retaliation interfering with a right or privilege set forth in Part 23. The FAA also held that the Sponsor was not obligated under 49 C.F.R. §23.45(j) to provide a particular DBE with the maximum opportunity to participate in contracts. A Sponsor was only obligated to describe the methods by which it would require contractors and subcontractors to comply with applicable DBE requirements. In this case, the FAA found the Sponsor met the requirement to take "reasonable steps to ensure that minority businesses [generally] have the maximum opportunity to participate in [the project],” because it “made every effort to bring in additional DBEs” and made “good faith efforts to replace a DBE with another DBE.” Finally, the FAA held that while a prime contractor Sponsor must make good faith efforts to replace a DBE with another DBE, there was no

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.4.10, Grant Assurance 37 228 violation when the Complainant was replaced with a non-DBE because “the regulation does not require a replacement DBE in every case”. Waller v. Wichita Airport Auth—No. 16-98-13. 1999 FAA LEXIS 804. 1999 WL 500028. Director's Determination (March 12, 1999). LRD 21 Determination No. 47. 2. The FAA held that when the contracts cited by the complainant were not administered or enacted with federal financial assistance, Part 26 DBE obligations did not apply. Therefore, the complainant’s disputes with the Sponsor were not subject to review in the Part 16 proceeding. James E. Ingram & Co. v. Bd. of Port Comm'rs & Port of Oakland, Cal.—No. 16-03-12.—No. FAA-2003-15810. 2004 WL 3564213. Director's Determination (September 01, 2005). LRD 21 Determination No. 144. Affirmed by Final Decision and Order of April 7, 2006. LRD 21 Determination No. 156. The FAA reached a similar decision in Tulloch v. City of Harlingen, Tex.—No. 16-05-07.—No. FAA- 2005-22370. FAA-2005-22370-0014. 2006 FAA LEXIS 595. 2006 WL 2528730. Director's Determination (August 21, 2006). LRD 21 Determination No. 162. 3. The FAA held that the Sponsor did not violate Grant Assurances 30 and 37, or Part 26 when setting a DBE goal of 16.96 percent for FY 2006, of which 9.64 percent was derived from race-conscious means and 7.32 percent of that goal was derived from race-neutral means, when the Sponsor’s supporting documentation followed the regulations and specifically addressed the race-neutral means. In addition, it used ‟nearly all of the methods described in 49 [CFR] §26.51(b) to maximize the portion of the goal that will be achieved through race-neutral means.” Davis v. Jackson Mun. Airport Auth.—No. 16-10-01.—No. FAA-2010-1049. FAA-2010-1049-0007. 2011 FAA LEXIS 31. 2011 WL 273404. Director's Determination (January 18, 2011). LRD 21 Determination No. 224. Examples of Practices Found in Non-compliance 1. The FAA held that a Sponsor’s use of an outside contractor to perform certification responsibilities did not relieve the Sponsor of its responsibility for proper implementation and operation of its DBE program. The FAA found the Sponsor violated Part 26, specifically Section 26.37, by failing to use an appropriate mechanism to ensure compliance with the Part 26 requirements by all program participants and by failing to invoke a compliance mechanism when it became apparent that complaint's employer/employee relationships compromised the independence of complainant's firm as identified in Section 26.71. The Sponsor’s refusal to communicate directly with the DBE owner also violated Grant Assurance 26 by compromising the ability of the owner to exercise independent control over the business. Finally, the Sponsor violated Part 26 and Grant Assurance 37 by developing a scheme to circumvent DBE regulations. This scheme allowed the airport to obtain the services of a preferred field engineer who had a long-standing work relationship with the airport, while at the same time meeting prima facie obligations to award contract work to a DBE firm. Consol. Servs. Eng'rs & Constructors, Inc. v. City of Palm Springs—No. 16-03-05.—No. FAA- 2003-15433. FAA-2003-15433-0010. 2004 FAA LEXIS 578. 2004 WL 3198204. Director's Determination (June 10, 2004). LRD 21 Determination No. 124.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.5.1, Grant Assurance 13 229 Section 2.5 Project Finance and Accountability 2.5.1 Grant Assurance 13, Accounting System, Audit and Record-keeping Requirements This assurance includes two clauses, summarized as follows: a. the Sponsor must maintain accounts and records that show the amount and disposition of grant proceeds, total project costs and the amount and nature of other funds applied to the project. The Sponsor’s accounting system must facilitate an effective audit under the Single Audit Act; and b. the Sponsor must make its accounting records for the grant available for audit by the FAA, the comptroller general, or their authorized representatives. In addition, the FAA may order the Sponsor to conduct an independent audit. The Sponsor must file a certified copy of any independent audit within six months of completion. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Three years after conclusion of project Withholding of payments, termination or suspension of grants, demands for reimbursement What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Provide an accounting system that is considered adequate under the Single Audit Act. Make accounting records available for audit by the FAA, comptroller general or their representatives. If ordered by the FAA, conduct an independent audit and submit a certified copy within six months of completion. What May the Sponsor Do? If ordered to conduct an independent audit, select the independent auditor. If ordered to conduct an independent audit, request reimbursement for the costs of the audit from the FAA.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.5.1, Grant Assurance 13 230 What Sponsor Actions Are Prohibited? Failing to maintain accounts and records of the project in the required format. Failing to make accounting records available to the FAA, comptroller general, or their representatives. Failing to conduct an independent audit ordered by the FAA. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this grant assurance. Related Grant Assurances  Grant Assurance 1, Federal Legislation: Item x. Single Audit Act of 1984—31 USC 7501, et seq.; Federal Regulations: Item b. 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. [OMB Circular A-87 Cost Principles Applicable to Grants and Contracts with State and Local Governments, and OMB Circular A- 133—Audits of States, Local Governments, and Non-Profit Organizations]  Grant Assurance 26, Reports and Inspections, clauses b. and c. Common Questions Q. Does this assurance apply for all activities of a Sponsor or only grant-funded projects? A. This only applies to grant-funded projects. Examples of Practices Found in Compliance 1. The FAA did not find the Sponsor in violation of Grant Assurance 13 where the person making the complaint claimed only generally that the Sponsor had failed to keep adequate accounting records but did not refer specifically to grant-funded projects. Carey v. Afton-Lincoln Cnty. Mun. Airport Joint Powers Bd.—No. 16-06-06.—No. FAA-2006-25154. FAA-2006-25154-0011. 2007 FAA LEXIS 40. 2007 WL 430630. Director’s Determination (January 19, 2007). LRD 21 Determination No. 168. Affirmed by Order Dismissing Appeal of November 14, 2007. LRD 21 Determination No. 184.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.5.1, Grant Assurance 13 231 Examples of Practices Found in Non-compliance No examples of FAA determinations on compliance with Grant Assurance 13 were identified during the research.

ACRP Project 03-38 (FY 2015) Task8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.5.2, Grant Assurance 26.b, c (Project-specific) 232 2.5.2 Grant Assurance 26.b, c, Reports and Inspections (Project-specific) Grant Assurance 26 includes four clauses. Clauses b. and c. are project-specific requirements and are addressed in this subsection. Clauses a. and d. apply to general airport operations, management and finance; they are addressed in Chapter 1. Clause b. requires the Sponsor to make the airport and all airport records and documents for airport development projects available for inspection by the FAA or its agents (including the OIG). Clause c. requires the Sponsor to make records and documents relating to noise compatibility projects and to continued compliance with the Grant Assurances for those projects available for inspection by the FAA or its agents (including the OIG). Required documents include deeds, leases agreements and regulations. Applicability and Duration Applicability Projects Subject to Assurance Duration Sanctions Project-specific All Three years after conclusion of project Termination or suspension of grant or withholding of payments or grant offer What Must the Sponsor Do? (Subject to exceptions and permitted practices, below) Make the airport and all records relating to an airport development project, and documents affecting the airport, such as deeds, leases, use agreements, etc. available to the FAA or its agent, including the OIG. However, the FAA rarely requests documents relating to general airport finance and operations, when questions arise over individual AIP project finances. Make the airport and all airport records affecting a noise compatibility project and continued compliance with the Grant Assurances, including deeds, leases, agreements and regulations, available to the FAA or its agent, including the OIG. What May the Sponsor Do? Choose the method to make records available and the time for airport inspections, so long as the Sponsor does not unreasonably delay access. Dispose of records relating to a project three years after project closeout.

ACRP Project 03-38 (FY 2015) Task8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.5.2, Grant Assurance 26.b, c (Project-specific) 233 What Sponsor Actions Are Prohibited? Refusing a request for access to records or the airport. Disposing of records relating to a project before the three-year anniversary of project closeout. What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no AIP or PFC federal funds. Supplementary Information Recommended Practices There are no specific recommended practices, aside from the requirements, for this Grant Assurance. Related Grant Assurances  Grant Assurance 13, Accounting System, Reporting and Record Keeping Requirements Common Questions Q. Does this assurance apply for all activities of a Sponsor or only grant-funded projects? A. This only applies to grant-funded projects. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with these clauses of Grant Assurance 26 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with these clauses of Grant Assurance 26 were identified during the research.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.5.3, Grant Assurance 33 234 2.5.3 Grant Assurance 33, Foreign Market Restrictions The Sponsor must check the Federal Register for any foreign country that the United States Trade Representative has determined is denying fair and equitable market opportunities for products and suppliers of the United States. Furthermore, the Sponsor must make sure that funds under the project cannot be used for products or services of any listed foreign country. Applicability Projects Subject to Assurance Duration Sanctions Project-specific Construction, equipment, land acquisition, noise Conclusion of project Termination or suspension of a grant and withholding payments What Must the Sponsor Do? (Subject to exceptions and permitted practices below) Search the Federal Register (https://www.federalregister.gov/), by entering the number “50104” in the search bar for the most recent notice of countries subject to this grant assurance. Assure that no grant funds are used to purchase goods or services of a listed foreign country. Include language specified in Required Contract Provisions for Airport Improvement Program and for Obligated Sponsors, §A24.3 in all contracts and require inclusion of the language in all subcontracts. What May the Sponsor Do? The Sponsor’s discretion is limited to the methods used to assure compliance with the required contract provisions referenced above. What Sponsor Actions Are Prohibited? Ignoring the requirement or failing to search for notices from the U.S. Trade Representative. Executing contracts without required contract clause referenced above and failing to require inclusion of that clause in subcontracts.

ACRP Project 03-38 (FY 2015) Task 8 Final Guidebook Understanding FAA Grant Assurance Obligations Section 2.5.3, Grant Assurance 33 235 What Are the Exceptions to the Requirements/Prohibitions? The Grant Assurance requirement does not apply to a project with no federal funds. Supplementary Information Recommended Practices  Search the Federal Register (https://www.federalregister.gov/). One can search for any notices by entering the number "50104" in the search bar. That is the section of the law that applies. The notice is normally published annually in April. Related Grant Assurances None for this grant assurance. Examples of Practices Found in Compliance No examples of FAA determinations on compliance with Grant Assurance 33 were identified during the research. Examples of Practices Found in Non-compliance No examples of FAA determinations on non-compliance with Grant Assurance 33 were identified during the research.