FTA Project and Construction Management …

1 ' ~ ' : : \ I : I ' '~ I : ' : " .. I I : ' I, Project and Construction Management guidelines Department of Transportation Federal Transit Administration March 2016 NOTICE This document is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The United States Government assumes no liability for its contents or use thereof. The United States Government does not endorse products or manufacturers. Trade or manufacturers' names appear herein solely because they are considered essential to the object of this report. Technical Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

2 Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE February 2016 3. REPORT TYPE AND DATES Original September 1990 Updates June 1996, May 2003, July 2011 and March 2016 4. TITLE AND SUBTITLE Project and Construction Management guidelines : March 2016 5. Project ID NUMBER 6. AUTHOR(S)* Kam Shadan, lead author for this update, with support William Plumpton (Gannett Fleming), Michael Eidlin (Kal Krishnan Consulting Services), David Sillars (Sillars), Paul Krogh (K2 Construction Consultants), Dain Pankratz (Boyd Caton & Grant), and Robin Hazy (Raul V. Bravo + Associates) 7.

3 PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) Gannett Fleming, Inc. San Bruno Office Park 881 Sneath Lane, Suite 210 San Bruno, California 94066 8. PERFORMING ORGANIZATION REPORT NUMBER 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) Department of Transportation Federal Transit Administration 1200 New Jersey Avenue, Washington, DC 20590 10. SPONSORING/MONITORING AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES * Assisted by: Lee Hamre ( Peck & Associates), and Kate Berrigan (Gannett Fleming) 12a. DISTRIBUTION/AVAILABILITY STATEMENT Available online at 12b. DISTRIBUTION CODE 13. ABSTRACT (Maximum 200 words) This update of the document published in September 1990 and updated in June 1996, May 2003, and July 2011 reflects FTA Project development, grants, and Project Management requirements. It incorporates the experience of FTA s Project Management Oversight Program research and technical assistance initiatives, and new or updated Circulars and legislation, including changes due to the Moving Ahead for Progress in the 21st Century Act.

4 Additional guidance is provided on safety and security considerations and certification process, Project risk assessment and allocation, Project controls, Project delivery approaches, financing, real estate acquisition, dispute resolution, quality assurance/quality control, value engineering, public communications, and identifies additional sources of guidance, training, and assistance. The guidelines describe the transit capital Project development process, general Project Management principles, and the application of those principles in the planning, design, Construction /equipment procurement, and testing/start-up phases. While emphasizing Major Capital Projects and New Starts projects, information on the Small Starts program is also provided. Regardless, the principles and practice discussed have applicability to any capital transit Project . 14. SUBJECT TERMS Transit Capital Projects, Project Management , Construction Management , Project Control Project Planning, Finance, Risk Assessment Quality Assurance Quality Control, Safety and Security Management plan Safety Certification Design/Build, Real Estate Acquisition 15.

5 NUMBER OF PAGES 341 16. PRICE CODE 17. SECURITY CLASSIFICATION OF REPORT Unclassified 18. SECURITY CLASSIFICATION OF THIS PAGE Unclassified 19. SECURITY CLASSIFICATION OF ABSTRACT Unclassified 20. LIMITATION OF ABSTRACT: None ACKNOWLEDGEMENTS The 2016 Project and Construction Management guidelines Update Project was sponsored and managed by FTA s Office of Engineering led by Chris Nutakor and Dale Wegner. The lead author for this guidelines update was Kam Shadan, , Vice President of Gannett Fleming, Inc., a national engineering and Construction Management firm with specialized expertise in transit Project planning, design, and Construction . Additional specialized inputs were provided by William Plumpton (Gannett Fleming), Michael Eidlin (Kal Krishnan Consulting Services), David Sillars (Sillars), Paul Krogh (K2 Construction Consultants), Dain Pankratz (Boyd Caton & Grant), Robin Hazy (Raul V.)

6 Bravo + Associates) and Lee Hamre ( Peck & Associates), and most particularly Kate Berrigan (Gannett Fleming), Chief Editor. Throughout this update, FTA s Dale Wegner provided direction on content modifications. Selected FTA subject matter experts were asked to review various sections of the initial draft of the guidelines and offer comments, and did so to varying degree with comments taken into consideration. FTA Project and Construction Management guidelines March 2016 Update Page i TABLE OF CONTENTS ACKNOWLEDGEMENTS .. i TABLE OF ii LIST OF viii LIST OF TABLES .. viii LIST OF ix Chapter 1 INTRODUCTION .. 1-1 Purpose and Scope of the guidelines ..1-1 Reasons for the guidelines Update .. 1-2 Format and Content Summary .. 1-3 Chapter 2 TRANSIT CAPITAL Project DEVELOPMENT PROCESS .. 2-1 Overview .. 2-1 Major Capital Projects ..2-2 Automatic Pre-Award Authority and Letters of No Capital Projects Not Classified as Major Capital Projects.

7 2-7 Transit Asset Management Practices ..2-8 Bus Maintenance Facilities ..2-8 Vehicle Procurements ..2-8 Transit Vehicles Procurement: ..2-10 Regulatory References ..2-10 Vehicle Procurement Deliverables ..2-11 Buy America Requirements for Revenue Service Vehicles ..2-13 Pre-Award Audit Requirements ..2-14 Post Delivery Audit Requirements ..2-16 Multimodal Transfer Facilities ..2-16 Bus Rapid Transit (BRT) Projects ..2-16 New Technology Procurements ..2-17 Project Development Elements of Sound Transportation Planning ..2-17 Systems Planning ..2-17 Alternatives Analysis ..2-20 Project Management plan (PMP) ..2-21 Rail Modernization Planning ..2-25 Bus Maintenance Facility Planning ..2-27 Project Risk Analysis and Procurement Planning ..2-27 Environmental Planning ..2-32 Scoping ..2-35 FTA s Expanded Use for Categorical Exclusions ..2-36 Section 4(f) of the Department of Transportation Act of 1966.

8 2-37 The National Historic Preservation Act of 1966 ..2-40 FTA s Environmental Justice Policy Guidance ..2-41 MAP-21 and Changes to the Environmental Review Process ..2-42 FTA Guidance on Corridor Preservation ..2-44 FTA Project and Construction Management guidelines March 2016 Update Page ii Table of Contents Financial Planning ..2-45 FFGA and Other Grant Requirements ..2-47 Full Funding Grant Agreement (FFGA) ..2-47 Other Requirements ..2-47 Joint Development Planning/Coordination with Transit Project Planning ..2-48 Safety and Security Management plan (SSMP) ..2-50 Introduction and Background to the SSMP ..2-50 Authority for and Elements of an SSMP ..2-51 SSMP Content ..2-53 Safety and Security Considerations When An SSMP Is Not Required ..2-55 State Safety Oversight Agency Engineering and Design .. 2-56 Definition of Sufficient Level of Engineering.

9 2-56 Project Development (PD) ..2-57 Engineering Phase ..2-64 Construction And Equipment/Materials Procurement Phase ..2-66 Recovery plan ..2-67 Testing and Start-Up Phase ..2-67 Revenue Service Phase ..2-68 Operation and Maintenance ..2-68 System Performance Monitoring/Assessment ..2-68 Before and After Study ..2-69 Capital Replacement Planning ..2-70 State Safety Oversight (SSO) ..2-71 Chapter 3 GENERAL Management PRINCIPLES FOR TRANSIT CAPITAL PROJECTS .. 3-1 Introduction .. 3-1 Project Sponsor and Project Organization ..3-3 Project Sponsor Authority, Requirements, and Organization ..3-3 Project Organization, Staffing, and Training ..3-7 Work Breakdown Structure ..3-10 Financial Requirements/Resources ..3-12 Capital plan .. 3-13 Project Capital plan ..3-13 Force Account ..3-16 Subsequent Modernization Cost ..3-16 Contingencies ..3-17 Capital Funding ..3-17 Alternative Funding Source.

10 3-18 Financing Techniques ..3-20 Funding Source Forecasts ..3-21 Borrowing, Debt Levels, and Ratings ..3-21 Federal Funding Shortfalls ..3-21 Agency-Wide Capital plan ..3-22 Project Budget ..3-22 Operating plan ..3-22 Operation and Maintenance Costs (O&M Costs) ..3-23 Operating/Maintenance Funding Considerations ..3-25 Cash Flow Analysis ..3-25 FTA Project and Construction Management guidelines March 2016 Update Page iii Table of Contents Scheduling .. 3-26 Scheduling Principles ..3-26 Scheduling Process ..3-27 Integrated Master Project The Construction and/or Procurement Schedule(s) ..3-31 Controlling the Project .. 3-34 FTA Requirements ..3-34 Integrating Time and Cost ..3-34 Controlling Costs ..3-36 Controlling Project Configuration and Changes ..3-38 Risk Assessment and Management .