The agency is seeking FFY2025 section 5307 operating assistance and FFY2025 section section 5339(a) capital assistance to continue public transportation services within the morristown TN urbanized…

The Federal Transit Administration awarded East Tennessee Human Resource Agency, Inc. $105,683 on February 25, 2026, under the Buses and Bus Facilities Formula Grant Program (CFDA 20.526) to fund capital assistance for light-duty transit bus procurement in the Morristown, Tennessee urbanized area.

The award funds the purchase of a transit bus classified to meet the FTA-defined useful life of 5 years or 150,000 miles in accordance with FTA Circular 5010.1F. The vehicle will be procured from the State of Tennessee statewide contract. The project breakdown reflects 80 percent federal funding of $84,547, with 10 percent state matching funds from Tennessee Department of Transportation ($10,568) and 10 percent local matching funds from ETHRA ($10,568).

Place of performance is Tennessee, with the ETHRA Lakeway Transit Hub located in a leased building in Morristown. The period of performance extends from the award date through March 30, 2032. ETHRA, a Tennessee-based nonprofit, operates public transportation services within the Jefferson and Hamblen Counties urbanized area and holds the direct prime grant award for transit operations in East Tennessee.

Activities

Project 1 FFY2025 section 5307 formula funding to provide operating assistance ALI 30.09.01 operating assistance 50% federal $926171 and 50% local ethra matching funds preventative maintenance ALI 11.7A.00 other capital items (bus) 80% federal $71838 10% state tdot matching funds $8980 and 10% ethra local matching funds $8980 and 1% safety and security operating assistance ALI 30.09.01 50% federal $10081 and 50% ethra local matching funds $10081. The FFY2025 section 5307 and FFY2025 section 5339(a) tip page from lamtpo city of morristown is attached to this application.project 2 FFY2025 section 5339 capital assistance ALI 11.12.04 capital assistance 80% federal $84547 10% state tdot matching funds $10568 and 10% ethra local matching funds $10568. The vehicle will be purchased from the state of tennessee statewide contract and are classified as light duty transit bus and meet the FTA-defined useful life of 5 years or 150000 miles in accordance with FTA circular 5010.1F page IV-25. The FFY2024 section 5339 tip page from lamtpo city of morristown is attached to this application. The ethra lakeway transit hub is located in leased building in morristown TN which is designated as a small urbanized area with a population less than 200000. Ethra participates in the state of tennessee statewide vehicle procurement process. The new statewide vehicle bid is expected to be finalized and released for vehicle procurements sometime in august 2023. Ethra did not pursue section 5339 BIL innovative procurement opportunities through cooperative procurement contracts pilot programs or non-profit cooperative procurements for such a small number of three (3) light duty transit vehicles that meet the FTA-defined useful life of 5 years or 150000 miles in accordance with FTA circular 5010. 1F page IV-25.the statewide vehicle bid will meet all FTA capital procurement certifications and shall include all options needed for our proposed vehicle procurement of such a small number of public transit vehicle procured in an independent procurement. Ethra is not opposed to innovative procurement and leasing for rolling stock as defined in the fast act section 5319 for future procurements. However a completive and separate independent procurement would not have been as cost effective as the state of tennessee statewide vehicle bid currently released. In addition to ftas buy america act which requires that the steel iron and manufactured goods used in an FTA-funded project are produced in the united states (49 U.S.C. 5323(j)(1)) the build america buy america act (baba) (public law 117-58 DIV. G 70914(a)) now requires that construction materials used in infrastructure projects are also produced in the united states. Refer to terms and conditions in ftas master agreement section 15. The baba requirement applies to this grant in addition to the buy america act except to the extent a waiver of either requirements may apply.

Expected outcomes

As a result of the 2010 census several of the rural communities served by east tennessee human resource agency are now a part of the morristown urbanized area. Through a supplemental split letter agreement with the tennessee department of transportation (tdot) and the lakeway area metropolitan transportation planning organization (lamtpo) FFY2025 section 5307 and FFY2025 section 5339(a) federal funding will be utilized by the east tennessee human resource agency to provide operating jarc preventative maintenance safety and security assistance to continue the provision of public transportation services within the urbanized communities jefferson and hamblen counties.through a supplemental split letter agreement with the city of morristown federal transit administration funding will be utilized by the east tennessee human resource agency to provide operating jarc preventative maintenance safety and security assistance to continue the provision of fixed route and demand response public transportation services within the newly urbanized communities cited above.

Intended beneficiaries

Ethra offers the only mass transit operations within the morristown expanded urbanized areas of jefferson hamblen and handcock counties providing door to door curb to curb hand in hand non-emergency transportation demand and response service including accessibility to persons with disabilities.

Subrecipient activities

Currently the agency does not have any subrecipients transit management or service contractors or lessees. As a direct recipient of section 5307 and section 5339(a) funding the agency will continue to provide the identical demand response services to residents in the newly urbanized area as was provided prior to the release of the 2010 census. The agency will not have subrecipient transit management or service contractors or lessees for this grant application.