1 FHWA/Caltrans Stewardship and Oversight Agreement Congress has charged Caltrans and FHWA with effectively and efficiently managing the public funds that have been entrusted to them…
Jan 18, 2018
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FHWA/CaltransStewardship and Oversight
Agreement
Congress has charged Caltrans and FHWA with effectively and efficiently managing the public funds that have been entrusted to them…
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Where did it all begin?
• OIG and GAO concerns with oversight with respect to cost and schedule
• Congress implements changes through the passage of SAFETEA-LU
• FHWA issues new Stewardship and Oversight Agreement Guidance– Current D.O. agreements are inconsistent– On May 8, 2006, FHWA issues new guidance to
implement a more consistent and comprehensive approach to developing stewardship agreements.
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Challenges with the Old Stewardship Agreement
• New SAFETEA-LU requirements have changed oversight responsibilities
• Resources are not strategically focused (currently focused on the Interstate)
• “Full Oversight” is resource intensive• Resources are directed to routine activities
rather than focused on activities that add value• Resources are focused on project oversight
instead of program management
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New Stewardship & Oversight Agreement Development
• Process initiated in August 2006• Done in collaboration with Caltrans• Signed by Will Kempton, Caltrans Director,
and Gene Fong, FHWA Division Administrator, on September 4, 2007
• Agreement became effective November 1, 2007
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What Does Stewardship and Oversight Mean?
• Stewardship – the effective and efficient management of the public funds that have been entrusted to FHWA and Caltrans
• Oversight – the act of ensuring that the Federal-aid highway program is delivered consistent with laws, regulations, and policies
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Comparison of Agreements
• Old Agreement– Full Oversight– State Authorized
• New Agreement– Strategic Oversight– Delegated Projects
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Oversight Thresholds
• Old Agreement– On the Interstate– Greater than $1 million– New or Reconstruction
• New Agreement– Risk Based– Joint Selection
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Actions Delegated or Withheld
• Old Agreement– Actions were fixed– Applied to all federal-aid projects
• New Agreement – Actions are now fluid– Apply to federal-aid projects
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DelegatedResponsibilities
Strategic Project Oversight
Universe of Projects
Full Oversight
High Profile Projects
State Authorized
Delegated Projects
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What is the foundation of the new Stewardship Agreement?
Caltrans & FHWAStrategic Plans
Performance MeasuresCompliance Indicators
Collaborative Multi-Year Plan
Strategic Stewardshipand Oversight
Comprehensive Risk
Based Approach
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Components of New Stewardship Agreement
1. Joint Strategic Planning Process2. Performance Indicators/Measures3. Multi-Year Plan4. Strategic Stewardship and Oversight
– Program Reviews– Program Assessments– Strategic Project Oversight
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Joint Strategic Planning Process
Caltrans & FHWAStrategic Plans
Align desiredobjectives
Align desiredoutcomes
Influence bothStrategic Plans
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Performance Indicators/Measures
• Continuously monitor FAHP elements at a programmatic level (not at a project level)
• Revisited on a systematic basis• Output used in the Program Assessments
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Multi-year Plan
3-year list of strategies
Current list ofHigh Profile Projects
SignificantAccomplishments
Collaborative Multi-Year Plan
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Strategic Stewardship and Oversight
Strategic Stewardshipand Oversight
Strategic Project Oversight
Program Assessment
Program Reviews
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Strategic Stewardship and Oversight
• Program Assessment– Methodology for each program element
• Program Analysis• Assess risk• Prioritize risk events• Identify and implement response strategies
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Strategic Stewardship and Oversight
• Program Reviews– FHWA, Caltrans and other
stakeholders– Often outcome of Program
assessments– Purpose
• Gauge compliance• Identify opportunities and best practices• Recommendations for improvement
– Follow Up
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Strategic Stewardship and Oversight
• Strategic Project Oversight– Step 1:
• Caltrans/FHWA jointly determine High Profile Projects based on criteria
– Step 2:• Within the High Profile Projects, further delegate
low risk activities
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Strategic Project Oversight- Criteria (Step 1)
• High Profile Projects– Controversial and/or Congressional Interest – Demonstration and pilot programs
• (i.e. Value Pricing, Design Sequencing, Buses on Shoulders, Quiet Pavements)
– Executive Order 13274 projects– Interstate Projects
• Projects with Design Exceptions related to the 13 controlling criteria
• Interchanges that are removed, new, or require modification• Innovative Contracting Methods
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Strategic Project Oversight- Criteria (Step 1)
– Invitational (by Caltrans) projects – Major ITS projects– Major Projects (> $500M) – Non-traditional Revenue Sources projects – Special Experimental Projects (SEP 14) –
Alternative Contracting – Special Experimental Projects (SEP 15) –
Public Private Partnerships – Unusual bridge and structure projects
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Strategic Stewardship and Oversight Overview (Step 2)
• Formal agreement written for each High Profile project
• Each project phase will be revisited to determine level of FHWA involvement– Update Agreement
• Agreed upon delegated and non-delegated approval authority will only change when extremely high risks are identified
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High Profile Project Agreement
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High Profile Project Agreement
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High Profile Project Agreement
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Mutual Benefits
• Demonstrated ability to step “out of the box” and lead national efforts
• Ability to leverage resources (time, staff, and budget)
• Strategic use of resources to optimize value added
• Effective utilization of existing measures
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Mutual Benefits continued…
– Partnership approach to Program Management
– Performance based Management– Intelligent Risk Management – Paradigm shift from project oversight
to program management– Show greater accountability for the
entire program
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Questions?
Abraham P. GeevargheseRealty Specialist
FHWA California Division650 Capitol Mall, Ste. 4-100
Sacramento, CA 95814(916) 498-5344
E-mail: [email protected]