DAVID GIONGCO Caltrans Local Assistance Engineer

Upward Cost Adjustments of ARRA Funds for Existing ARRA Funded Projects

For existing ARRA funded projects with legitimate cost increases, FHWA has made savings for upward adjustments available.  In order to request some of California’s share of the available deobligated funds ($957,319.82 – Region share), agencies will need to follow the process announced to Directors and City Engineers:

The Process is quite lengthy and generally is as follows:

  • A “Local Agency Request for Upward Adjustment of Recovery Act Funds” jusification form (see attached) must be completed/signed by the Local Agency and submitted to the District Local Assistance  Office along with the the Request for Cost Adjustment (E-76) (RFCA) package (Note: the RFCA package is required to facilitate a review of the entire submittal package) (Action By:  You, The  Local Agency,  Deadline: July 1, 2011)
  • Districts must concur with /submit the entire Local Agency submittal package to HQ DLA.  (Action By: District Local Assistance,  Deadline: July 8, 2011)
  • NO deobligations of Recovery Act funds will be permitted after July 11, 2011 until October 1, 2011
  • HQ DLA must concur with /submit with the Local Agency request package prior to submittal to the FHWA, Regional Office (Action By:  District / DLA, Deadline: July 15, 2011)
  • Form FHWA  1576, “ARRA Obligation Adjustment Form”, must be prepared by the State and submitted to the FHWA Regional Office along with the individual project justification forms  (Action By: DLA / OFR (Caltrans Office of Federal Resources),  Deadline: July 15, 2011)
  • Following  FHWA, Regional Office concurrence, the request will be forwarded to the FHWA HQ Office of Chief Financial Officer OCFO for review/approval. (Action By: FHWA, Regional Office / FHWA, OCFO,   Deadline: Within 30 days of acceptance of State prepared Form FHWA 1576 by FHWA)
  • The Recovery Act  funds approved by FHWA, OCFO, for upward adjustments  must be “reallocated” to the States by FHWA  (Note: E-76s cannot be processed until after the approved Recovery Act funds are reallocated to California) (Action By: FHWA, HQ,  Anticipated Date: September 1, 2011)
  • A minimum dollar threshold of $50,000 for upward adjustments is being established to minimize the impact on the year-end workload.  The requests for cost adjustments (RFCAs) for Recovery Act upward adjustments will be compiled, prioritized  by highest dollar amount and processed until the available funds are exhausted.  (Action By: HQ DLA, Deadline:  September 30, 2011)
  • The annual “obligation deadline” for processing the Recovery Act  fund upward adjustments coincides with normal annual FFY year-end deadline which is September 30th for each FFY.
  • The support documentation for the RFCA packages for upward adjustment of ARRA funds must include:
  • Completed and signed “Local Agency Request for Upward Adjustment of ARRA Funds” justification form
  • Estimate (supporting the costs requested)
  • Project finance letter (consistent w/ above estimate)

via D3 email sent out on 6/23/11 to PW Directors and City Engineers