[Federal Register: April 1, 2010 (Volume 75, Number 62)]
[Notices]
[Page 16552-16562]
[DOCID:fr01ap10-138]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

High-Speed Intercity Passenger Rail (HSIPR) Program

AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).

ACTION: Notice of funding availability.

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SUMMARY: On January 28, 2010, President Obama announced the first
selections for the High-Speed Intercity Passenger Rail (HSIPR) Program.
This notice builds on the program framework established by FRA in the
June 23, 2009 interim program guidance (74 FR 29900), and details the
application requirements and procedures for obtaining the remaining
funds available under the Department of Transportation Appropriations
Act of 2009 that have not yet been allocated to projects. This
solicitation is only applicable to the remaining FY 2009 funds. FRA has
concurrently issued a solicitation for high-speed rail planning
activities funded under the Department of Transportation Appropriations
Act of 2010, and will release an additional solicitation in the coming
months for the construction and corridor program funds provided under
the FY 2010 appropriation.

DATES: Applications for funding under this solicitation are due no
later than 5 p.m. EST, May 19, 2010 and must be submitted via
Grants.gov (see instructions in Section 3.1). See Section 3 for
additional information regarding the application process. FRA reserves
the right to modify this deadline.

ADDRESSES: Supporting materials that cannot be submitted electronically
may be mailed or hand delivered to: U.S. Department of Transportation,
Federal Railroad Administration, 1200 New Jersey Avenue, SE., MS-20,
Room W38-302, Washington, DC 20590 Att'n. HSIPR Program. Applicants are
encouraged to use special courier services to avoid shipping delays.
Application forms are available at http: //www.fra.dot.gov/Pages/
2243.shtml.

FOR FURTHER INFORMATION CONTACT: For further information regarding this
notice and the grants program, please contact the FRA HSIPR Program
Manager via e-mail at<EMAIL_ADDRESS>or by mail: U.S. Department of
Transportation, Federal Railroad Administration, 1200 New Jersey
Avenue, SE., MS-20, Washington, DC 20590 Att'n. HSIPR Program.

Table of Contents

1. Financial Assistance Description
2. Eligibility Information
3. Application and Submission Information
4. Application Review Information
5. Award Administration Information
6. Questions and Clarifications
Appendix 1: Additional Information on Eligibility
Appendix 2: Additional Information on Preliminary Engineering
Appendix 3: Additional Information on Award Administrations
Appendix 4: Additional Information on Applicant Budgets

Section 1: Financial Assistance Description

1.1 Authority

    This financial assistance announcement pertains to remaining FY
2009 appropriations for FRA's High-Speed Intercity Passenger Rail
(HSIPR) Program. These funds were authorized and appropriated under the
Department of Transportation Appropriations Act,

2009 (``FY 2009 DOT Appropriations Act,'' Title I of Division I of Pub.
L. 111-8, March 11, 2009), under the title Capital Assistance to
States--Intercity Passenger Rail Service. The funding opportunities
described in this guidance are available under Catalog of Federal
Domestic Assistance (CFDA) number 20.317.

1.2 Program Description and Legislative History

    As one of President Obama's foremost transportation priorities, the
HSIPR Program is intended to help address the nation's transportation
challenges by investing in an efficient network of high-speed and
intercity passenger rail corridors that connect communities across
America. On January 28, 2010, President Obama announced the first
recipients selected to receive funding under the HSIPR Program. These
initial awards were funded from the $8 billion appropriated under the
American Recovery and Reinvestment Act of 2009 (ARRA or Recovery Act)
and $90 million appropriated under the FY 2009 DOT Appropriations Act.
    However, most HSIPR Program applicants sought funding under the
Recovery Act portion of the original solicitation, and there remains a
balance of approximately $65 million in FY 2009 funding. This financial
assistance announcement is intended to provide prospective applicants
with ``ready-to-go'' projects the opportunity to apply for the
remaining FY 2009 funds prior to FRA issuing an application
solicitation for FY 2010 construction funds.

1.3 Funding Approach

    The FY 2009 DOT Appropriations Act appropriated $90 million for
intercity passenger rail grants. These funds were combined with
approximately $1.9 million in unobligated FY 2008 funding and $8
billion in ARRA funding for the first HSIPR Program application
solicitation that was issued in June 2009. Of these FY 2009 funds,
approximately $65 million remains. An additional $2.5 billion was
appropriated for the program in FY 2010. FRA is separately soliciting
applications for the different components of these appropriations:
    1. Residual FY 2009 funds (approximately $65 million): Construction
projects with a 50 percent non-Federal match. This solicitation is for
these funds.
    2. FY 2010 planning funds (up to $50 million): Planning projects
with a 20 percent non-Federal match. The notice of funding availability
(NOFA) for these funds is being issued concurrently with this
solicitation, and can also be found in this edition of the Federal
Register.
    3. FY 2010 stand-alone projects (up to $245 million) and corridor
programs (at least $2,125 million): Stand-alone final design/
construction and/or preliminary engineering/NEPA projects and corridor
program funding with a 20 percent non-Federal match. The solicitation
for these funds is forthcoming.

1.4 General Award Information

    The remaining $65 million in FY 2009 HSIPR Program funds are
intended to assist States with the capital costs of improving existing
intercity passenger rail service and providing new intercity passenger
rail service.
    FRA will make awards for these intercity passenger rail capital
projects through cooperative agreements. Cooperative agreements allow
for greater Federal involvement in carrying out the agreed upon
investment. The substantial Federal involvement for these projects will
include technical assistance, review of interim work products, and
increased program oversight.
    While there are no predetermined minimum or maximum dollar
thresholds for awards, FRA anticipates making one or more awards for
the entire $65 million available.

Section 2: Eligibility Information

    Applications under this solicitation will be required to meet
minimum requirements related to applicant eligibility, project
eligibility, and the fulfillment of other prerequisites.
    To the extent that an application's substance exceeds the minimum
eligibility requirements described below, such qualifications will be
considered in evaluating the merits of an application.

2.1 Eligible Applicant Types

    Only States, including the District of Columbia, are eligible to
apply for funds included in this solicitation.

2.2 Applicant and Key Partner Qualifications

    For an application submitted by a State to be considered funding
under this program, it must affirmatively demonstrate that the
applicant has or will have the legal, financial, and technical capacity
to carry out the proposal. Additionally, the applicant must demonstrate
that it has or will have satisfactory continuing control over the use
of equipment or facilities acquired, constructed, or improved by the
project, and the capability and willingness to maintain such equipment
or facilities. Further discussion of how applicants can demonstrate
compliance with these minimum qualifications appears in Appendix 1.2.

2.3 Cost Sharing and Matching

2.3.1 Treatment of Applicant Cost Sharing
    Pursuant to the provisions of the FY 2009 DOT Appropriations Act,
the Federal share of the costs of projects issued cooperative
agreements under this solicitation may not exceed 50 percent.
    If an applicant chooses the option of contributing more than the
required 50 percent non-Federal share of the costs of its proposed
project from its own or its partner project stakeholders' resources,
such additional contributions will be considered in evaluating the
merit of its application (See Section 4 for a complete description of
evaluation and selection criteria).
2.3.2 Requirements for Applicant Cost Sharing
    An applicant's contribution toward the cost of its proposed project
may be in the form of cash or, with FRA approval, in-kind contributions
of services, supplies, equipment, or real estate. As part of its
application, an applicant offering an in-kind contribution must provide
a documented estimate of the monetary value of any such contribution,
and its eligibility under 49 CFR 18.24.
    The applicant must provide as part of its application documentation
that demonstrates that it has committed and will be able to fulfill any
pledged contribution, including committing any required financial
resources that are budgeted or planned at the time the application is
submitted. Furthermore, funds from other Federal financial assistance
programs may not be used to satisfy the 50 percent match requirement.

2.4 Eligible Projects

    Eligible types of projects under this program for remaining FY 2009
HSIPR Program funds include: (1) Acquiring, constructing, or improving
equipment, track and track structures, or a facility for use in or for
the primary benefit of intercity passenger rail service including high-
speed rail service, (2) expenses incidental to the acquisition or
construction (including designing, engineering, location surveying,
mapping, environmental studies, and acquiring rights-of-way), (3)
highway-rail grade crossing improvements related to intercity passenger
rail service, (4) mitigating environmental impacts, (5) communication
and

signalization improvements, and (6) rehabilitating, remanufacturing, or
overhauling rail rolling stock and facilities used primarily in
intercity passenger rail service.

2.5 Project Completion

    All projects funded under this solicitation must be completed
within 5 years of obligation.

2.6 Other Prerequisites

2.6.1 General Prerequisites
    In general, proposals for remaining FY 2009 HSIPR Program funding
must meet the following additional prerequisites:
     Applications must be complete, including all required
forms and documentation, as defined in this notice;
     The complete application must demonstrate that the project
has been identified through a rational planning process (ideally a
High-Speed Intercity Passenger Rail Service Development Plan);
     States must include intercity passenger rail services as
an integral part of statewide transportation planning as required under
23 U.S.C. 135;
     The project must be consistent with an overall plan for
developing the benefiting High-Speed Intercity Passenger Rail service;
and
     The project must result in independent utility.
2.6.2 Prerequisites for Construction Grants
    If the applicant is seeking a construction grant, then the
application must demonstrate all of the following:
     That Preliminary Engineering (PE) (as defined in Appendix
2 of this notice) has been completed for the proposed project,
resulting in project designs that are reasonably expected to conform to
all regulatory, safety, security, and other design requirements,
including those under the Americans with Disabilities Act (ADA);
     That a Project NEPA document (e.g.,. a Categorical
Exclusion worksheet, a completed Environmental Assessment, or a
completed final Environmental Impact Statement) has been completed for
the proposed project;
     That the applicant has reached, at a minimum, agreements
in principle with key project partners, including but not limited to
infrastructure-owning railroads and the railroad that operates or will
operate the benefiting High-Speed Intercity Passenger Rail service, as
to the scope of the proposed project and the realization of the
operating benefits (e.g., those reflected in changes to schedules) it
is intended to generate;
     That the applicant has developed a project management plan
for managing the implementation of the proposed project, including the
management and mitigation of project risks; and
     That the applicant has developed a Financial Plan for each
phase of service that details the ``sources and uses'' of both capital
and operating funding.
2.6.3 Prerequisites for Equipment Procurement or Design Grants
    If the applicant is seeking a grant for the procurement or design
of railroad equipment, the proposed equipment should be consistent with
Section 305 of PRIIA, which calls for the establishment of a
standardized next-generation rail corridor equipment pool. Compliance
with Section 305 of PRIIA will assist in creating the economies of
scale necessary to achieve the Administration's goal, as outlined in
FRA's Strategic Plan, of developing a sustainable railroad equipment
manufacturing base in the United States.
2.6.4 Positive Train Control (PTC)
    If the project involves improvements to railroad signaling/control
systems, then the application must demonstrate that the proposed
improvements are consistent with a comprehensive plan for complying
with the requirements for PTC implementation under Section 104 of the
Rail Safety Improvement Act of 2008 (``RSIA,'' Division A of Pub. L.
110-432, October 16, 2008, codified at 49 U.S.C. 20147) and with FRA's
final rule on Positive Train Control Systems published in the Federal
Register on January 15, 2010 (75 FR 2598).
2.6.5 Inclusion in STIP
    Proposed projects must be specifically included in the applicant's
Statewide Transportation Improvement Program (STIP) at the time of
application to be eligible.

2.7 Eligibility Restrictions

    Pursuant to the provisions of the FY 2009 DOT Appropriations Act,
applications submitted for the following activities are ineligible to
receive funding:
     Applications submitted by private entities (or any entity
that is not a State);
     For projects for which commuter rail passenger
transportation is the primary intended beneficiary;
     For projects involving the development of State Rail Plans
or Passenger Rail Corridor Investment Plan;
     For projects involving the preparation of environmental
analyses;
     For projects in which the physical improvements are
located outside of the United States; or
     For any expenses associated with passenger rail operating
costs of rail operators.
    Additional funding use restrictions are fully described in Section
3.4.3 of this notice.

Section 3: Application and Submission Information

3.1 Applying Online

    Applications for these funds will be submitted through Grants.gov
by 5 p.m. EST on May 19, 2010. Program-specific application forms
(identified in Section 3.3 below) may be downloaded from FRA's Web site
at http://www.fra.dot.gov/Pages/2243.shmtl.
    To apply for funding through Grants.gov, applicants must be
properly registered. Complete instructions on how to register and
submit an application can be found at Grants.gov. If you experience
difficulties at any point during this process, please call the
Grants.gov Customer Support Hotline at 1-800-518-4726, Monday-Friday
from 7 a.m. to 9 p.m. EST.
    Registering with Grants.gov is a one-time process; however,
processing delays may occur, and it can take up to several weeks for
first-time registrants to receive confirmation and a user password. It
is highly recommended that applicants start the registration process as
early as possible to prevent delays that may preclude submitting an
application package by the application deadline specified. Applications
will not be accepted after the due date; delayed registration is not an
acceptable reason for extensions. In order to apply for funding under
this announcement and to apply for funding through Grants.gov, all
applicants are required to complete the following.
    1. Acquire a DUNS Number. A Data Universal Numbering System (DUNS)
number is required for Grants.gov registration. The Office of
Management and Budget requires that all businesses and nonprofit
applicants for Federal funds include a DUNS number in their
applications for a new award or renewal of an existing award. A DUNS
number is a unique nine-digit sequence recognized as the universal
standard for identifying and keeping track of entities receiving
Federal funds. The identifier is used for tracking purposes and to
validate address and point of contact information for Federal
assistance applicants, recipients, and subrecipients. The DUNS number
will be used throughout the grant life cycle. Obtaining a DUNS number
is a free,

one-time activity. Obtain a DUNS number by calling 1-866-705-5711 or by
applying online at http://www.dunandbradstreet.com.
    2. Acquire or Renew Registration with the Central Contractor
Registration (CCR) Database. All applicants for Federal financial
assistance maintain current registrations in the Central Contractor
Registration (CCR) database. An applicant must be registered in the CCR
to successfully register in Grants.gov. The CCR database is the
repository for standard information about Federal financial assistance
applicants, recipients, and subrecipients. Organizations that have
previously submitted applications via Grants.gov are already registered
with CCR, as it is a requirement for Grants.gov registration. Please
note, however, that applicants must update or renew their CCR
registration at least once per year to maintain an active status, so it
is critical to check registration status well in advance of the
application deadline. Information about CCR registration procedures can
be accessed at http://www.ccr.gov.
    3. Acquire an Authorized Organization Representative (AOR) and a
Grants.gov Username and Password. Complete your AOR profile on
Grants.gov and create your username and password. You will need to use
your organization's DUNS number to complete this step. For more
information about the registration process, go to http://Grants.gov/
applicants/get_registered.jsp.
    4. Acquire Authorization for your AOR from the E-Business Point of
Contact (E-Biz POC). The E-Biz POC at your organization must log in to
Grants.gov to confirm you as an AOR. Please note that there can be more
than one AOR for your organization.
    5. Search for the Funding Opportunity on Grants.gov. Please use the
following identifying information when searching for the funding
opportunity on Grants.gov. The Catalog of Federal Domestic Assistance
(CFDA) number for this solicitation is 20.317, titled
``Capital Assistance to States--Intercity Passenger Rail Service''.
    6. Submit an Application Addressing All of the Requirements
Outlined in this Funding Availability Announcement. Within 24 to 48
hours after submitting your electronic application, you should receive
an e-mail validation message from Grants.gov. The validation message
will tell you whether the application has been received and validated
or rejected, with an explanation. You are urged to submit your
application at least 72 hours prior to the due date of the application
to allow time to receive the validation message and to correct any
problems that may have caused a rejection notification.

    Note: When uploading attachments please use generally accepted
formats such as .pdf, .doc, .docx, .xls, .xlsx and .ppt. While you
may imbed picture files such as .jpg, .gif, and .bmp, in your
document files, please do not submit attachments in these formats.
Additionally, the following formats will not be accepted: .com,
.bat, .exe, .vbs, .cfg, .dat, .db, .dbf, .dll, .ini, .log, .ora,
.sys, and .zip.

Experiencing Unforeseen Grants.gov Technical Issues
    If you experience unforeseen Grants.gov technical issues beyond
your control that prevent you from submitting your application by the
deadline, you must contact FRA staff at<EMAIL_ADDRESS>within 24 hours
after the deadline and request approval to submit your application. At
that time, FRA staff will require you to e-mail the complete grant
application, your DUNS number, and provide a Grants.gov Help Desk
tracking number(s). After FRA staff review all of the information
submitted, as well as contact the Grants.gov Help Desk to validate the
technical issues you reported, FRA staff will contact you to either
approve or deny your request to submit a late application. If the
technical issues you reported cannot be validated, your application
will be rejected as untimely.
    To ensure a fair competition for limited discretionary funds, the
following conditions are not valid reasons to permit late submissions:
(1) Failure to complete the registration process before the deadline
date; (2) failure to follow Grants.gov instructions on how to register
and apply as posted on its Web site; (3) failure to follow all of the
instructions in the funding availability notice; and (4) technical
issues experienced with the applicant's computer or information
technology (IT) environment.

3.2 Address To Request/Submit Application Package

    If Internet access is unavailable, please write to FRA at the
following address to request a paper application: U.S. Department of
Transportation, Federal Railroad Administration, Attn. HSIPR Program
Information (RDV-10), Mail Stop 20, 1200 New Jersey Ave., SE.,
Washington, DC 20590.
    For supporting documentation (described in Section <IP_ADDRESS>) that an
applicant is unable to submit electronically (such as oversized
engineering drawings), applicants may submit an original and two copies
to the above address. However, due to delays caused by enhanced
screening of mail delivered via the U.S. Postal Service, applicants are
advised to use other means of conveyance (such as courier service) to
assure timely receipt of materials.

3.3 Content and Form of Application

3.3.1 Application Package Components
    The application package for HSIPR Program planning applications
contains five required components:
    1. HSIPR FD/Construction Application Form.
    2. HSIPR Project Budget and Schedule Form.
    3. OMB Standard Application Forms.
    4. FRA's Assurances Document.
    5. Required Supporting Documentation.
    Applicants must complete all five required components of the
application package; failure to do so may result in the application
being removed from consideration for award. All five components of the
application package must be submitted through Grants.gov.
    Applicants may also submit additional documentation to support the
merits of their applications. Inclusion of such supporting
documentation is optional.
<IP_ADDRESS> HSIPR FD/Construction Application Form
    The most significant component of the application package is the
HSIPR FD/Construction Application Form, into which the applicant enters
specific information about the proposed project. The form includes
fields that have been developed by FRA to capture pertinent qualitative
and quantitative program-specific information that is needed for FRA to
confirm applicant and project eligibility, as well as information
needed for evaluation and selection of applications. The HSIPR FD/
Construction Application Form requests two types of information:
    1. General applicant and project information.
    2. Narratives that allow the applicant to make arguments on the
benefits of its proposed project and other factors that are used to
evaluate the merits of the application (See Section 4.2 for evaluation
criteria).
    The HSIPR FD/Construction Application Form is available from FRA's
Web site at: http://www.fra.dot.gov/Pages/2243.shmtl. Applicants should
download and complete the form and submit as an attachment in
Grants.gov.
    To support the Application Form, FRA welcomes the submission of any
other available supporting

documentation that may have been developed by the applicant. The format
and structure of any additional supporting documents is at the
discretion of the applicant. Optional supporting documentation may be
provided one of two ways--(1) as attachments to the application or (2)
in hard copy for materials that cannot otherwise be provided
electronically.
<IP_ADDRESS> HSIPR Project Budget and Schedule Form
    The HSIPR Project Budget and Schedule Form is a MS Excel document
that supports the qualitative and quantitative claims made in the
applicant's HSIPR FD/Construction Application Form. In addition to
capturing detailed project budget and schedule information, the form
also describes the standard cost categories developed by FRA to assist
in evaluating and comparing projects. Pursuant to 49 U.S.C. 24402(g),
FRA reserves the right to request changes to project scopes, schedules,
and budgets of selected projects. See Appendix 4 for more information
on preparing project budgets.
<IP_ADDRESS> OMB Standard Application Forms
    The Standard Forms are developed by OMB and are required of all
grant applicants. These forms should be submitted electronically
through Grants.gov.
     Standard Form 424, Application for Federal Assistance.
     Standard Form 424A, Budget Information--Non-Construction
Programs.
     Standard Form 424B, Assurances--Non-Construction Programs.
     Standard Form 424C, Budget Information--Construction.
     Standard Form 424D, Assurances--Construction Programs.
    All applications for construction projects must use Standard Forms
424C and 424D. If the application is for equipment procurement or
refurbishment, the applicant should instead use Standard Forms 424A and
424B. All applications should also complete Standard Form 424,
regardless of project type.
<IP_ADDRESS> FRA Assurances Document
    FRA's assurances document contains standard Department
certifications on grantee suspension and debarment, drug-free workplace
requirements, and Federal lobbying. The FRA Assurances document can be
obtained from FRA's Web site at http://www.fra.dot.gov/downloads/admin/
assurancesandcertifications.pdf. The document should be signed by an
authorized certifying official for the applicant, scanned into
electronic format, and submitted as an attachment to the application in
Grants.gov.
<IP_ADDRESS> Required Supporting Documentation
    FRA requires the submission of the following additional supporting
documentation for remaining FY 2009 HSIPR Program construction
applications:
     Preliminary Engineering (PE) Materials--Applicants should
provide any documents that demonstrate the PE status (or final design
status, if completed) of the proposed project. The PE requirements are
detailed in Appendix 2.
     National Environmental Policy Act (NEPA) Documentation--
Applicants should provide any documents (e.g. a Categorical Exclusion
worksheet, a completed Environmental Assessment, or a completed final
Environmental Impact Statement) that demonstrate the NEPA status of the
proposed project.
     Project Management Plan--Applicants should provide a
project management plan (or equivalent) that documents assumptions and
decisions regarding the communication, management processes, execution
and overall project control.
     Stakeholder Agreements--Applicants should provide
documents that demonstrate the status of all stakeholder agreements
including agreements with interstate partners, host railroads, right-
of-way owners and contract railroad operator providing service. The
form and structure of the stakeholder agreements are at the discretion
of the applicant, however, agreements should satisfy the eligibility
and award requirements listed in Appendix 1.1.
     Financial Plan--Applicants should provide a financial plan
(or equivalent).
<IP_ADDRESS> Other Required Documentation
    For any other documentation required prior to award that is not
specified in this notice, FRA will make individual arrangements with
applicants for the submission of the required documentation.
3.3.2 Additional Information Required Prior to Award
<IP_ADDRESS> Construction Projects
    A project NEPA determination document (a Record of Decision,
Finding of No Significant Impact, or CE determination) must have been
issued by FRA prior to award of a construction grant.
<IP_ADDRESS> All Projects
    Applicants are required to submit comprehensive executed
partnership agreements, fulfilling all requirements for such agreements
as set forth in Appendix 1.1, prior to award.

3.4 Additional Application Information

3.4.1 Submission Dates and Times
    Complete applications must be submitted to Grants.gov (as specified
in Section 3.1) no later than 5 p.m. EST, May 19, 2010. Grants.gov will
send the applicant an automated e-mail confirming receipt of the
application. Supporting documentation that cannot be submitted
electronically may be sent by courier service with a waybill receipt
stamped no later than 5 p.m. EST, May 19, 2010. FRA will e-mail the
applicant to confirm receipt of supporting documentation sent by
courier service.
    Subject to demonstration of unanticipated extenuating
circumstances, FRA may consider application materials submitted after
the deadlines prescribed above.
    FRA reserves the right to contact applicants with any concerns,
questions, or comments related to applications.
3.4.2 Intergovernmental Review
    This program has not been designated as subject to Executive Order
12372, pursuant to 49 CFR part 17.
3.4.3 Funding Restrictions
    In general, only those costs considered allowable pursuant to OMB
Circular A-87, ``Cost Principles for State, Local, and Indian Tribal
Governments'' (codified at 2 CFR part 225) will be considered for
funding. Additionally, the following funding restrictions will apply to
cooperative agreements, and must be taken into consideration in the
development of budget information submitted as part of applications.
     Funding may not be used to fund expenses associated with
the operation of intercity passenger rail service;
     Funding may not be used for first-dollar liability costs
for insurance related to the provision of intercity passenger rail
service;
     While there is no cap on grant recipient's use of grant
funds for management and administrative costs, such costs must be
allowable, reasonable, allocable, and in accordance with applicable OMB
cost principles cited above.
    FRA will also consider reimbursement of pre-award costs incurred as
early as the enactment of the

FY 2009 DOT Appropriations Act (March 11, 2009). However, such costs
will be considered for reimbursement only to the extent that they are
otherwise allowable under the applicable cost principles, and involve
either eligible activities (e.g. FD), or construction activities that
were subject to a NEPA determination made by FRA prior to the
commencement of such construction activities. Projects for which
construction activities commenced prior to receipt of an FRA
environmental determination under NEPA will not be eligible for
funding.

Section 4: Application Review Information

4.1 Review Criteria

    Complete applications are due by 5 p.m. EST, May 19, 2010. All
applications will proceed through a three-step process:
    1. Screening for completeness and eligibility;
    2. Evaluation review by a technical panel applying ``evaluation
criteria;'' and
    3. Final review and selection by the FRA Administrator, applying
``selection criteria.''
    All applications will first be screened for completeness, and
applicant and project eligibility. Applications determined to be both
complete and eligible will be referred to a technical panel consisting
of subject-matter experts for a merit-based evaluation review. The
panels will be comprised of professional staff employed by FRA and
other DOT modal administrations, as appropriate.
    Applications will be individually reviewed and assessed against the
evaluation criteria outlined in Section 4.2. For each of the criteria,
the panel will assign a rating of between zero and three points, based
on the application's fulfillment of the objectives of each criterion.
These individual criterion ratings will then be combined according to
priority of criteria, to arrive at an overall rating for the
application.
    The evaluation criteria, in order of priority, are:
    1. Transportation Benefits.
    2. Project Management Approach.
    3. Sustainability of Benefits.
    4. Timeliness of Project Completion.
    5. Other Public Benefits.
    In addition to the ratings assigned by the technical evaluation
panels, the FRA Administrator may take into account several cross-
cutting and comparative selection criteria to determine awards. The
Administrator will review the preliminary results to ensure that the
scoring has been applied consistently, and that the collective results
meet several key priorities essential to the success and sustainability
of the program (see Section 4.3). The four selection criteria are:
    1. Region/Location.
    2. Innovation/Resource Development.
    3. Partnerships/Participation.
    4. Prior HSIPR Funding Decisions and/or State Investments.

4.2 Evaluation Criteria

    Careful economic analysis that quantifies and demonstrates the
monetary value of user benefits and, if available, public benefits will
be particularly useful to FRA in evaluating the applications. The
systematic process of comparing expected benefits and costs helps
decision-makers organize information about, and evaluate trade-offs
between, alternative transportation investments. FRA will consider
benefits and costs using standard data provided by applicants and seek
to evaluate applications in a manner consistent with Executive Order
12893, Principles for Federal Infrastructure Investments, 59 FR 4233,
to base infrastructure investments on systematic analysis of expected
benefits and costs, including both quantitative and qualitative
measures.
4.2.1 Transportation Benefits
    Evaluation against this criterion will consider the qualitative
factors outlined below, as supported by key quantitative metrics. As
described in Section 3, applicants must provide information quantifying
the anticipated benefits of the proposed project using service output
data (delay reduction, schedule improvement, or capacity increases).
    Each application will be assessed based on its demonstration of the
proposed project's potential to meet the purpose and need and to
achieve transportation benefits in a cost-effective manner, as set
forth through the President's strategic transportation goals and the
objectives of PRIIA. Factors to be considered in assigning a rating
will include the contribution the proposed project would make to:
     Supporting the development of intercity high-speed rail
service;
     Generating improvements to intercity passenger rail
service, as reflected by estimated increases in ridership (as measured
in passenger-miles), increased on-time performance (as measured in
reductions in delays), reduced trip time, additional service frequency
to meet anticipated or existing demand, and other factors;
     Generating cross-modal benefits, including anticipated
favorable impacts on air or highway traffic congestion, capacity, or
safety, and cost avoidance or deferral of planned investments in
aviation and highway systems;
     Creating an integrated intercity passenger rail network,
including integration with existing intercity passenger rail services,
allowance for and support of future network expansion, and promotion of
technical interoperability and standardization (including standardizing
operations, equipment and signaling);
     Encouragement of intermodal integration through provision
of direct, efficient transfers among intercity transportation and local
transit networks at train stations, including connections at airports,
bus terminals, subway stations, ferry ports, and other modes of
transportation;
     Enhancing intercity travel options;
     Ensuring a state of good repair of key intercity passenger
rail assets;
     Promoting standardized equipment (or rolling stock),
signaling, communications and power;
     Improved freight or commuter rail operations, in relation
to proportional cost-sharing (including donated property) by those
other benefiting rail users;
     Equitable financial participation in the project's
financing, including, but not limited to, consideration of donated
property interests or services; financial contributions by freight and
commuter rail carriers commensurate with the benefit expected to their
operations; and financial commitments from host railroads, non-Federal
governmental entities, nongovernmental entities, and others; and
     The overall safety of the transportation system, including
the encouragement of the use of PTC technologies, and commitments by
States or railroads of financial resources to improve the safety of
highway/rail grade crossings over which intercity passenger rail
service operates.
4.2.2 Project Management Approach
    Applications will be evaluated against the following criterion to
assess the proposed project's likelihood of successful implementation
and realization of benefits. Each application will be assessed to
determine the risk associated with the project's delivery within
budget, on time, and as designed. Evaluation against these criteria
will consider the factors outlined below, which take into account the
thoroughness and quality of the supporting documentation submitted with
the application.
     The applicant's financial, legal, and technical capacity
to implement the project including whether the application depends upon
receipt of any

waiver(s) of Federal railroad safety regulations that have not been
obtained;
     The applicant's experience in administering similar grants
and projects;
     The soundness and thoroughness of the cost methodologies
and assumptions, and estimates for the proposed project;
     The adequacy of any completed engineering work to assess
and manage/mitigate the proposed project's engineering and
constructability risks;
     The reasonableness of the schedule for project
implementation;
     The thoroughness and quality of the project management
plan;
     The sufficiency of system safety and security planning;
     The timing and amount of the project's future noncommitted
investments;
     The project's progress, at the time of application,
towards compliance with environmental protection requirements; and
     The comprehensiveness and sufficiency, at the time of
application, of agreements with key partners (particularly
infrastructure owning railroads) that will be involved in implementing
the project; and
     The overall completeness and quality of the application,
including the comprehensiveness of its supporting documentation.
4.2.3 Sustainability of Benefits
    Each application will be assessed based on the risk associated with
the proposed project's capacity to generate, as planned, its
anticipated transportation and economic benefits. Factors to be
considered in assigning a rating will include:
     The presence and quality of a Financial plan that analyzes
the financial viability of the proposed rail service;
     The quality and reasonableness of revenue and operating
and maintenance cost forecasts for the benefiting Intercity Passenger
Rail service(s);
     The availability of any required operating financial
support preferably from dedicated funding sources for the benefiting
Intercity Passenger Rail service(s);
     The quality and adequacy of project identification and
planning;
     The reasonableness of estimates for user and non-user
benefits for the project;
     The reasonableness of the operating service plan,
including its provisions for protecting the future quality of other
services sharing the facilities to be improved;
     The comprehensiveness and sufficiency, at the time of
application, of agreements with key partners (including the railroad
operating the Intercity Passenger Rail service as well as
infrastructure-owning railroads) that will be involved in the operation
of the benefiting Intercity Passenger Rail service, including the
commitment of any affected host-rail carrier to ensure the realization
of the anticipated benefits, preferably through a commitment by the
affected host-rail carrier(s) to an enforceable on-time performance of
passenger trains of 80 percent or greater; and
     The applicant's contribution of a cost share greater than
the required minimum of 50 percent.
4.2.4 Timeliness of Project Completion
    Each application will be assessed based on the timeliness of its
implementation schedule, including:
     The readiness of the project to be commenced; and
     The timeliness of project completion and the realization
of the project's anticipated benefits.
4.2.5 Other Public Benefits
    Each application will be assessed based on its demonstration of the
proposed project's potential to achieve other public benefits in a
cost-effective manner. Factors to be considered in assigning a rating
will include the contribution the proposed project would make to:
     Environmental quality and energy efficiency and reduction
in dependence on foreign oil, including use of renewable energy
sources, energy savings from traffic diversions from other modes,
employment of green building and manufacturing methods, reductions in
key emissions types, and the purchase and use of environmentally
sensitive, fuel-efficient, and cost-effective passenger rail equipment;
and
     Promoting livable communities, including integration with
existing high-density, livable development (e.g., central business
districts with public transportation, pedestrian, and bicycle
distribution networks, and incorporation of transit-oriented
development).

4.3 Election Criteria

4.3.1 Region/Location
     Ensuring appropriate level of regional balance across the
country.
     Ensuring promotion of livable communities in urban and
rural locations.
     Ensuring consistency with national transportation and rail
network objectives.
     Ensuring integration with other rail services and
transportation modes.
4.3.2 Innovation/Resource Development
     Pursuing new technology and innovation where the public
return on investment is favorable, while ensuring delivery of near-term
transportation, public and economic recovery benefits.
     Advancing the state of the art in modeling techniques for
assessing potential intercity passenger rail costs and benefits.
     Promoting domestic manufacturing, supply and industrial
development, including U.S.-based manufacturing and supply industries.
     Developing professional railroad engineering, operating,
planning and management capacity needed for sustainable high-speed
intercity passenger rail development.
4.3.3 Partnerships/Participation
     Where corridors span multiple States, emphasizing those
that have organized multi-State partnerships with joint planning and
prioritization of investments.
     Employing creative approaches to ensure workforce
diversity and use of disadvantaged and minority business enterprises.
     Engaging local communities and a variety of other
stakeholder groups in the project, where applicable.
4.3.4 Prior HSIPR Funding Decisions and/or State Investments
     Assessing how a proposed project would complement previous
construction or planning grants made by the HSIPR program.
     Assessing how the proposed project would complement
previous State investments in high-speed intercity passenger rail.

Section 5: Award Administration Information

5.1 Award Notices

    Upon approval of an application, notification will be sent to the
grant recipient through Grants.gov and via a mailed letter.
    FRA will publicly announce selected projects. For projects that
were not selected, FRA will notify the applicants of the decision and
provide the following:
     Suggestions on application revisions for any subsequent
resubmission rounds (if desired by applicant); and
     Guidance regarding subsequent rounds of funding.

5.2 Administrative and National Policy Requirements

    Grant recipients must follow all administrative and national policy
requirements including: procurement standards, compliance with Federal
civil rights laws and regulations, disadvantaged business enterprises
(DBE), debarment and suspension, drug-free workplace, FRA's and OMB's
Assurances and Certifications, ADA, buy America, environmental
protection, NEPA, and environmental justice. For additional details on
these administrative and national policy requirements, please refer to
FRA's HSIPR Notice of Grant Award Example under the high-speed rail
link on FRA's Web page at http://www.fra.dot.gov/Pages/2243.shmtl,
which includes a sample copy of FRA's current model grant/cooperative
agreement.

5.3 General Requirements

    Grant recipients must comply with reporting requirements. All post-
award information pertaining to reporting, auditing, monitoring, and
the close-out process is detailed in Appendix 3.1.

5.4 Freedom of Information Act (FOIA)

    As a Federal agency, the FRA is subject to the Freedom of
Information Act (FOIA) (5 U.S.C. 552), which generally provides that
any person has a right, enforceable in court, to obtain access to
Federal agency records, except to the extent that such records (or
portions of them) are protected from public disclosure by one of nine
exemptions or by one of three special law enforcement record
exclusions. Grant applications and related materials submitted by
applicants pursuant to this guidance would become agency records and
thus subject to the FOIA and to public release through individual FOIA
requests. FRA also recognizes that certain information submitted in
support of an application for funding in accordance with this guidance
could be exempt from public release under FOIA as a result of the
application of one of the FOIA exemptions, most particularly Exemption
4, which protects trade secrets and commercial or financial information
obtained from a person that is privileged or confidential (5 U.S.C.
552(b)(4)). In the context of this grant program, commercial or
financial information obtained from a person could be confidential if
disclosure is likely to cause substantial harm to the competitive
position of the person from whom the information was obtained (see
National Parks & Conservation Ass'n v. Morton, 498 F.2d 765, 770 (DC
Cir. 1974)). Entities seeking exempt treatment must provide a detailed
statement supporting and justifying their request and should follow
FRA's existing procedures for requesting confidential treatment in the
railroad safety context found at 49 CFR 209.11. As noted in the
Department's FOIA implementing regulation (49 CFR part 7), the burden
is on the entity requesting confidential treatment to identify all
information for which exempt treatment is sought and to persuade the
agency that the information should not be disclosed (see 49 CFR 7.17).
The final decision as to whether the information meets the standards of
Exemption 4 rests with the FRA.

Section 6: Questions and Clarifications

    Questions about this guidance and the application process should be
submitted to the HSIPR Program Manager via e-mail at<EMAIL_ADDRESS>
                            List of Acronyms
------------------------------------------------------------------------
              Acronym                              Meaning
------------------------------------------------------------------------
ACF...............................  Administration for Children and
                                     Families.
ADA...............................  Americans with Disabilities Act.
ARRA..............................  American Recovery and Reinvestment
                                     Act of 2009 (Public Law 111-5).
CAST..............................  Custom Applications Support and
                                     Training Unit (GrantSolutions).
CCR...............................  Central Contractor Registration
                                     database.
CE................................  Categorical Exclusion--a class of
                                     action for the NEPA process.
CFS report........................  Commercial Feasibility Study,
                                     Federal Railroad Administration,
                                     High-Speed Ground Transportation
                                     for America, September 1997;
                                     available at: http://
                                     www.fra.dot.gov/us/content/515.
Department........................  The U.S. Department of
                                     Transportation.
DUNS..............................  Data Universal Number System.
EA................................  Environmental Assessment--a NEPA
                                     document.
EIS...............................  Environmental Impact Statement--the
                                     most extensive type of NEPA
                                     document.
FD................................  Final Design.
FONSI.............................  Finding of No Significant Impact--a
                                     possible decision concluding the
                                     NEPA process.
FRA...............................  Federal Railroad Administration--an
                                     Operating Administration of the
                                     U.S. Department of Transportation.
FTA...............................  Federal Transit Administration.
FY................................  Fiscal Year.
FY 2008 DOT Appropriations Act....  Transportation, Housing and Urban
                                     Development, and Related Agencies
                                     Appropriations Act, 2008--Title I
                                     of Division K of Public Law 110-
                                     161, December 26, 2007.
FY 2009 DOT Appropriations Act....  Transportation, Housing and Urban
                                     Development, and Related Agencies
                                     Appropriations Act, 2009--Title I
                                     of Division I of Public Law 111-8,
                                     March 11, 2009.
FY 2010 DOT Appropriations Act....  Transportation, Housing and Urban
                                     Development, and Related Agencies
                                     Appropriations Act, 2010--Title I
                                     of Division A of Public Law 111-
                                     117, December 16, 2009.
GS................................  GrantSolutions Grants Management
                                     System.
ICC...............................  Interstate Commerce Commission.
LOI...............................  Letter of Intent.
mph...............................  Miles per Hour.
NEPA..............................  National Environmental Policy Act.
NTD...............................  National Transit Database.
OTP...............................  On-time performance.
PE................................  Preliminary engineering.
PRIIA.............................  Passenger Rail Investment and
                                     Improvement Act of 2008 (Division B
                                     of Public Law 110-432).
PTC...............................  Positive Train Control.
ROD...............................  Record of Decision--a possible
                                     decision concluding of the NEPA
                                     process.
RSIA..............................  Rail Safety Improvement Act of 2008
                                     (Division A of Pub. L. 110-432,
                                     October 16, 2008).
State DOT.........................  State Department of Transportation.

State Capital Grant Program.......  Capital Assistance to States--
                                     Intercity Passenger Rail Service
                                     program--established in FY 2008 DOT
                                     Appropriations Act and continued in
                                     the FY 2009 DOT Appropriations Act.
------------------------------------------------------------------------

Appendix 1: Additional Information on Eligibility

Appendix 1.1 Minimum Qualifications for Applicant Eligibility

    An applicant must, in addition to demonstrating that it is of an
eligible type for the project, affirmatively demonstrate that it has
or will have the legal, financial, and technical capacity to carry
out the proposal. In addition, the applicant must demonstrate that
it has or will have satisfactory continuing control over the use of
equipment or facilities acquired, constructed, or improved by the
project, and the capability and willingness to maintain such
equipment or facilities.
    In the following discussion of the means by which applicants can
satisfy these minimum requirements, the term ``project'' refers
generally to the substance of the applicant's proposal.
    For an applicant to demonstrate the legal, financial, and
technical capacity to carry out its proposed project, it will be
required to address the following qualifications:
     The applicant's ability to absorb potential cost
overruns or financial shortfalls.
     The applicant's experience in effectively administering
grants of similar scope and value (including timely completion of
grant deliverables, compliance with grant conditions, and quality
and cost controls); and
     The applicant's experience in managing railroad
investment projects of a nature similar to that for which funding is
being requested.
    For an applicant to demonstrate that it has or will have
satisfactory continuing control over the use of equipment or
facilities acquired, constructed, or improved by the project, it
will be required to show either:
     That the applicant has or will have direct ownership of
the equipment or facilities acquired, constructed, or improved by
the project; or
     That the applicant has secured or has made progress
towards securing and will have contractual agreements in place with
the entity or entities (e.g., a local government, or one or more
private railroads) that have or will have direct ownership of such
assets.
    For an applicant to demonstrate that it has or will have the
capability and willingness to maintain the equipment or facilities
acquired, constructed, or improved by the project, it will be
required to show:
     That it has made progress towards, and will have
contractual agreements in place with, any entity or entities (e.g.,
a local government, or one or more private railroads) that have or
will have direct ownership of the equipment or facilities acquired,
constructed, or improved by the project, which address financial and
operational responsibility for asset maintenance;
     That to the extent financial responsibility will fall
to the applicant, the applicant has the ability to cover maintenance
costs; and
     The applicant's experience in maintaining assets with
similar financial and operational maintenance requirements as those
for the assets for which funding is being requested;
    Information and documentation demonstrating the fulfillment of
the minimum qualifications described above will be required to be
submitted as part of full application.

Appendix 1.2 Definition of Intercity Passenger Rail

    ``Intercity rail passenger transportation'' is defined at 49
U.S.C. 24102(4) as ``rail passenger transportation except commuter
rail passenger transportation.'' Likewise, ``commuter rail passenger
transportation'' is defined at 49 U.S.C. 24102(3) as ``short-haul
rail passenger transportation in metropolitan and suburban areas
usually having reduced fare, multiple ride, and commuter tickets and
morning and evening peak period operations.'' In common use, the
general definition of ``rail passenger transportation'' excludes
types of local or regional rail transit such as light rail,
streetcars, and heavy rail. Similarly, both Intercity Passenger Rail
transportation and commuter rail passenger transportation exclude
single-purpose scenic or tourist railroad operations.
    The since-terminated Interstate Commerce Commission (ICC)
established six features to aid in classifying a service as
``commuter'' rather than ``intercity'' rail passenger
transportation: \1\
---------------------------------------------------------------------------

    \1\ Penn Central Transportation Company Discontinuance or Change
in Service of 22 Trains between Boston, Mass, and Providence R.I.,
February 10, 1971, I.C.C. 338, 318-333.
---------------------------------------------------------------------------

     The passenger service is primarily being used by
patrons traveling on a regular basis either within a metropolitan
area or between a metropolitan area and its suburbs;
     The service is usually characterized by operation
performed at morning and peak periods of travel;
     The service usually honors commutation or multiple-ride
tickets at a fare reduced below the ordinary coach fare and carries
the majority of its patrons on such a reduced fare basis;
     The service makes several stops at short intervals
either within a zone or along the entire route;
     The equipment used may consist of little more than
ordinary coaches; and
     The service should not extend more than 100 miles at
the most, except in rare instances; although service over shorter
distances may not be commuter or short haul within the meaning of
this exclusion.
    FTA further refined the definition of commuter rail in the
glossary for its National Transit Database (NTD) \2\ Reporting
Manual. In particular, FTA refined the ICC's third ``feature'' by
specifying that ``predominantly commuter [rail passenger] service
means that for any given trip segment (i.e., distance between any
two stations), more than 50 percent of the average daily ridership
travels on the train at least three times a week.''
---------------------------------------------------------------------------

    \2\ In addition to serving as a reference database, the NTD
captures data that serve as the basis for apportioning and
allocating funding to eligible grantees under FTA's formula grant
programs.
---------------------------------------------------------------------------

    In judging the eligibility of an application under this
solicitation, FRA will determine whether the rail passenger service
that is primarily intended to benefit from the proposal constitutes
``intercity passenger rail transportation'' under the statutory
definition and ICC and FTA interpretations. FRA may also take into
account whether the primary intended benefiting service has been or
is currently the direct and intended beneficiary of funding provided
by another Federal agency (e.g., FTA) for the purpose of improving
commuter rail passenger transportation and whether the service in
question is or will be operated by or on behalf of a local,
regional, or State entity whose primary rail transportation mission
is the provision of commuter or transit service.

Appendix 2: Additional Information on Preliminary Engineering

    PE completion is a prerequisite for projects submitted under
this solicitation. PE entails sufficient engineering design to
define a project, including identification of all environmental
impacts, design of all critical project elements at a level
sufficient to assure reliable cost estimates and schedules (in turn
sufficient to complete project management and financial plans), and
definition of procurement requirements and strategies.
    The PE development process starts with the evaluation of project
design alternatives (a range of rail improvements, specific
alignments, and project designs) sufficient to support subsequent
NEPA analysis. The NEPA environmental determination is a
prerequisite for FRA to obligate construction funds. FRA
acknowledges the complexity of the work required for PE, and that it
will vary depending on the project scope. Thus, FRA does not pre-
determine the form and structure of the PE work. FRA has opted to
specify the illustrative contents of PE--thus allowing the applicant
discretion to pursue the most workable approach tailored to its
needs and suitable for the proposed project.
    PE results in detailed estimates of project costs, benefits, and
impacts of the preferred alternative that merit a higher degree of
confidence than those prepared in earlier stages of planning. FRA
considers that PE for

a major capital investment project is complete when:
     The signed environmental Record of Decision (ROD) or
Finding of No Significant Impact (FONSI) signals that the NEPA
process has been completed;
     The project scope, capital cost estimates, and
financial plan are finalized;
     The project sponsor has adequately demonstrated its
technical capability to advance the project into FD and
construction;
     The project sponsor has adequately demonstrated its
process and schedule for filing any safety regulatory waivers
necessary to implement the project; and
     The project sponsor has provided an adequate system
safety program plan and any necessary collision/derailment hazard
analysis.
    The products of PE will include: Engineering designs; a detailed
project description, including provisions for compliance with the
ADA; a highly accurate project cost estimate (including a
description of methodologies and assumptions employed in developing
the estimate) that identifies major components and that includes
contingencies that are reduced from previous estimates and are
broken down by phase and functional area, a thorough project
management plan suitable for this phase of project development; and
a solid project financial plan that includes Federal and non-Federal
funding committed to the project.
    PE documentation will typically include: (1) Scale maps or scale
aerial photography of existing conditions at a scale of one inch =
100 to 500 feet depending on location (built-up vs. undeveloped
areas); and (2) design plan drawings overlaid on the maps/
photography. These design drawings will typically show: (i) Existing
railroad right-of-way limits along with the railroad ownership; (ii)
Proposed track changes including track removals and track
installations showing track centers, turnout sizes, curve and spiral
data, etc.; (iii) Vertical profiles and grades of existing and
proposed construction; (iv) Public and private at-grade highway
crossings; and (v) Passenger stations, building(s), platforms,
parking, access to the primary highway system in the area, and
public transit services and facilities.
    The detailed project description developed in the PE typically
includes an assessment of the physical condition and location of the
existing project area (generally two to three miles beyond the
project construction limits) and elements associated with the
design(s). These elements may include: Bridges (rail and highway);
track including the number and location of previously existing
railroad tracks on a roadbed; buildings (stations and maintenance
facilities, etc.); signal systems and interlocked detectors,
switches, derails, and snow melters; utility systems on, over,
adjacent to or under the rail line and agreements concerning them;
electrification systems, if any; description of highway crossing
warning systems (if any) and daily traffic counts at public and
private at-grade highway crossings; existing and proposed railroad
operations and routes of freight, commuter and intercity trains with
train daily numbers of trains by type; a safety and security
management plan; and STRACNET routes and/or moves for commercial
high and wide loads. For maintenance facilities, the PE outputs will
describe and provide drawings that show the location, track and
facility layout, specialized equipment (if any), office and employee
welfare facilities, etc.
    FRA will be available, subject to available resources, to assist
applicants in clarifying whether the PE is complete and encourages
applicants to contact FRA to discuss PE.

Appendix 3: Additional Information on Award Administration

Appendix 3.1 General Requirements

Appendix 3.1.1 Standard Reporting Requirements

     Progress Reports--Progress reports are to be submitted
quarterly. These reports must relate the state of completion of
items in the statement of work to expenditures of the relevant
budget elements. The grant recipient must furnish the quarterly
progress report to the FRA on or before the 30th calendar day of the
month following the end of the quarter being reported. Grantees must
submit reports for the periods: January 1-March 31, April 1-June 30,
July 1-September 30, and October 1-December 31. Each quarterly
report must set forth concise statements concerning activities
relevant to the project, and should include, but not be limited to,
the following: (a) An account of significant progress (findings,
events, trends, etc.) made during the reporting period; (b) a
description of any technical and/or cost problem(s) encountered or
anticipated that will affect completion of the grant within the time
and fiscal constraints as set forth in this agreement, together with
recommended solutions or corrective action plans (with dates) to
such problems, or identification of specific action that is required
by the FRA, or a statement that no problems were encountered; and
(c) an outline of work and activities planned for the next reporting
period.
     Quarterly Federal Financial Report (SF-425)--The
Grantee must submit a quarterly Federal financial report
electronically in the GrantSolutions system, on or before the
thirtieth (30th) calendar day of the month following the end of the
quarter being reported (e.g., for quarter ending March 31, the SF-
425 is due no later than April 30). A report must be submitted for
every quarter of the period of performance, including partial
calendar quarters, as well as for periods where no grant activity
occurs. The Grantee must use SF-425, Federal Financial Report, in
accordance with the instructions accompanying the form, to report
all transactions, including Federal cash, Federal expenditures and
unobligated balance, recipient share, and program income.
     Interim Report(s)--If required, interim reports will be
due at intervals specified in the statement of work and must be
submitted electronically in the GrantSolutions system.
     Final Report(s)--Within 90 days of the Project
completion date or termination by FRA, the Grantee must submit a
Summary Project Report in the GrantSolutions system. A final version
of this report, detailing the results and benefits of the Grantee's
improvement efforts, must be furnished by the expiration date of the
project period.

Appendix 3.1.2 Audit Requirements

    Grant recipients that expend $500,000 or more of Federal funds
during their fiscal year are required to submit an organization-wide
financial and compliance audit report. The audit must be performed
in accordance with U.S. Government Accountability Office, Government
Auditing Standards, located at http://www.gao.gov/govaud/ybk01.htm,
and OMB Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations, located at http://www.whitehouse.gov/omb/
circulars/a133/a133.html. Currently, audit reports must be submitted
to the Federal Audit Clearinghouse no later than nine months after
the end of the recipient's fiscal year. In addition, FRA and the
Comptroller General of the United States must have access to any
books, documents, and records of grant recipients for audit and
examination purposes. The grant recipient will also give FRA or the
Comptroller, through any authorized representative, access to, and
the right to examine all records, books, papers or documents related
to the grant. Grant recipients must require that sub-grantees comply
with the audit requirements set forth in OMB Circular A-133. Grant
recipients are responsible for ensuring that sub-recipient audit
reports are received and for resolving any audit findings.

Appendix 3.1.3 Monitoring Requirements

    Grant recipients will be monitored periodically by FRA to ensure
that the project goals, objectives, performance requirements,
timelines, milestones, budgets, and other related program criteria
are being met. FRA will conduct monitoring activities through a
combination of office-based reviews and onsite monitoring visits.
Monitoring will involve the review and analysis of the financial,
programmatic, and administrative issues relative to each program and
will identify areas where technical assistance and other support may
be needed. The recipient is responsible for monitoring award
activities, including sub-awards and sub-grantees, to provide
reasonable assurance that the award is being administered in
compliance with Federal requirements. Financial monitoring
responsibilities include the accounting of recipients and
expenditures, cash management, maintaining of adequate financial
records, and refunding expenditures disallowed by audits.

Appendix 3.1.4 Closeout Process

    Project closeout occurs when all required project work and all
administrative procedures described in 49 CFR part 18, or 49 CFR
part 19, as applicable, have been completed, and when FRA notifies
the grant recipient and forwards the final Federal assistance
payment, or when FRA acknowledges the grant recipient's remittance
of the proper refund. Project closeout should not invalidate any
continuing obligations imposed on the Grantee by an award or by the
FRA's final notification or acknowledgment. Within 90 days of the
Project completion date or termination by FRA, Grantees agree to
submit a final Federal Financial Report (Standard Form 425), a
certification or summary of project expenses, a final report, and
third party audit reports, as applicable.

Appendix 4: Additional Information on Application Budgets

    Applicants must present a detailed budget for the proposed
project that includes both Federal funds and matching funds. Items
of cost included in the budget must be reasonable, allocable and
necessary for the project. At a minimum, the budget should separate
total cost of the project into the following categories:
     Personnel: List each position by title and name of
employee, if available, show the annual salary rate and the
percentage of time to be devoted to the project. Compensation paid
for employees engaged in grant activities must be consistent with
that paid for similar work within the applicant organization.
     Fringe Benefits: Fringe benefits should be based on
actual known costs or an established formula. Fringe benefits are
for personnel listed in the ``Personnel'' budget category and only
for the percentage of time devoted to the project.
     Travel: Itemize travel expenses of project personnel by
purpose (training, interviews, and meetings). Show the basis of
computation (e.g., X people to Y-day training at $A airfare, $B
lodging, $C subsistence).
     Equipment: List non-expendable items that are to be
purchased. Nonexpendable equipment is tangible property having a
useful life of more than two years and an acquisition cost of $5,000
or more per unit. (Note: Organization's own capitalization policy
may be used for items costing less than $5,000.) Expendable items
should be included either in the ``Supplies'' category or in the
``Other'' category. Applicants should analyze the cost benefits of
purchasing versus leasing equipment, especially high cost items and
those subject to rapid technical advances. Rented or leased
equipment should be listed in the ``Contractual'' category. Explain
how the equipment is necessary for the success of the project.
Attach a narrative describing the procurement method to be used.
     Supplies: List items by type (office supplies, postage,
training materials, copying paper, and expendable equipment items
costing less than $5,000) and show the basis for computation. (Note:
Organization's own capitalization policy may be used for items
costing less than $5,000.) Generally, supplies include any materials
that are expendable or consumed during the course of the project.
     Consultants/Contracts: Indicate whether applicant's
formal, written Procurement Policy (see 49 CFR 18.36 or 19.40-19.48)
or the Federal Acquisition Regulations (FAR) are followed.
Consultant Fees: For each consultant enter the name, if known,
service to be provided, hourly or daily fee (8-hour day), and the
estimated time on the project. Consultant Expenses: List all
expenses to be paid from the grant to the individual consultants in
addition to their fees (travel, meals, and lodging). Contracts:
Provide a description of the product or service to be procured by
contract and an estimate of the cost. Applicants are encouraged to
promote free and open competition in awarding contracts. A separate
justification must be provided for sole source contracts in excess
of $100,000.
     Other: List items (rent, reproduction, telephone,
janitorial or security services, etc.) by major type and the basis
of the computation. For example, provide the square footage and the
cost per square foot for rent, or provide the monthly rental cost
and how many months to rent.
     Indirect Costs: Indirect costs are allowed only if the
applicant has a Federally approved indirect cost rate. A copy of the
rate approval, (a fully executed, negotiated agreement), must be
attached. If the applicant does not have an approved rate, one can
be requested by contacting the applicant's cognizant Federal agency,
which will review all documentation and approve a rate for the
applicant organization.

    Issued in Washington, DC, on March 29, 2010.
Karen Rae,
Deputy Administrator.
[FR Doc. 2010-7340 Filed 3-31-10; 8:45 am]
BILLING CODE 4910-06-P