FAA Issues Guidance on Funding Winter Construction Projects

 

Executive Summary: The Federal Aviation Administration (FAA) issued a PGL that addresses the limited availability of discretionary funding for projects that were started before an Airport Improvement Program (AIP) grant is issued because climate-related conditions shorten the construction season.

 

Link to the PGL: http://www.faa.gov/airports/aip/guidance_letters/media/pgl-14-01-Cold-Weather.pdf

Who is Impacted: All airports that receive AIP grants.

Background:

  1. Normally, airport sponsors need to get the grant first before starting a project with the exceptions for noise projects, Letters of Intent (LOIs), and land acquisitions. This PGL allows airports subject to certain climatic conditions to get discretionary grants after the project has started.
     
  2. The sponsor assumes all risk as the FAA cannot guarantee the availability of any types of AIP funding on the project. The sponsor must be prepared to complete the project using other sources of funds even if the sponsor meets all of the requirements for discretionary reimbursement.
     
  3. Statutory requirements:
  • Costs of the project must have been incurred in the same fiscal year as execution of the grant agreement.
  • The FAA has determined that only cold weather causes a shortened construction season. Other seasonal and weather variations cause only temporary disruptions to construction.
  • All other AIP requirements apply
  • The sponsor must notify the ADO/RO of the sponsor's intent to request discretionary funding for this project in advance of starting the work, at least 30 days before prior to issuing a Notice to Proceed.
  • The sponsor must have an alternative funding source for the project which can include entitlements, PFCs or other funding sources
  1. Implementation requirements:
  • The requesting airport must experience a shortened construction season due to their climatic situation
    • Cold weather is defined as at least one month in a calendar year with an average high temperature below 40 degrees Fahrenheit; and specific construction activities required for the project would be impacted by the cold temperatures.
    • AIP already accounts for 'rain days' and temporary interruption in construction schedule
    • Shortened construction season means delays last for a prolonged period of time
    • Generally, paving or pavement rehabilitation projects are those that are most likely to be impacted by cold weather
    • For phased projects, the requirements of this PGL must be applied individually to each phase or grant request
  • A sponsor must submit the written request to the ADO/RO before contract award and before issuing Note to Proceed to the selected contractor.

ACI-NA Contact: Liying Gu (202-861-8084) or Matt Cornelius (202-861-8097)

----------------------
This notice has been distributed to the Finance Committee