InnovativeFinanceAssetConcession_NOFO_Final.pdf

DEPARTMENT OF TRANSPORTATION

Office of the Secretary Innovative Finance and Asset Concession Grant Program (IFACGP)

Docket Number: DOT-OST-2024-0033

AGENCY: Build America Bureau (Bureau), U.S. Department of Transportation (USDOT or the Department)

ACTION: Notice of Funding Opportunity (NOFO), Assistance Listing #20.945

SUMMARY: The purpose of this notice is to solicit applications for the Innovative Finance and Asset Concession Grant Program (IFACGP or the Program). Up to $57.72 million will be awarded on a competitive basis to Eligible Entities for technical assistance or expert services.

The objective of the Program is to facilitate and evaluate public-private partnerships in which the private sector partner could assume a greater role in project planning, development, financing, construction, maintenance, and operation, including by assisting eligible entities in entering into Asset Concessions.

Eligible applicants for the Program are public entities that own, control, or maintain Existing Assets, and have the legal authority to enter a contract to transfer ownership, maintenance, operations, revenues, or other benefits and responsibilities for those Assets. Existing Assets are physical infrastructure, real property, or mineral/air rights to real property that could be improved utilizing Transportation Infrastructure Finance and Innovation Act (TIFIA) credit assistance. TIFIA-eligible Projects include highway, transit, passenger rail, certain freight facilities, certain port projects, airports, and transit-oriented development projects. (See Sections C.1, C.2, and C.3 below for additional information regarding applicant and project eligibility.)

DATES: Applications must be submitted electronically by 11:59PM Eastern Time on Friday, May 10, 2024. Late applications will not be accepted. The deadline to submit technical questions is Wednesday, April 10, 2024.

ADDRESSES: Applications must be submitted through https://www.grants.gov/.

FOR FURTHER INFORMATION: Please contact the Bureau via email at InnovativeFinanceTA@dot.gov, or call Maritza Pechin at 202-941-7491. A telecommunications device for the deaf (TDD) is available at 202-366-2993. In addition, the Bureau will post answers to questions and requests for clarifications, as well as any briefings or webinars it may conduct on the IFACGP and award process, on the Bureau’s website at https://www.transportation.gov/buildamerica/innovativefinancegrants.

https://www.grants.gov/ mailto:InnovativeFinanceTA@dot.gov https://www.transportation.gov/buildamerica/innovativefinancegrants

SUPPLEMENTARY INFORMATION: Each section of this notice contains information and instructions relevant to the application process for the IFACGP. All applicants should read this notice in its entirety so that they have the information they need to submit eligible and competitive applications.

NOFO Organization: This NOFO is organized in the following sections.

Section Content A Program Description B Federal Award Information C Eligibility Information D Application and Submission Information E Application Review Information F Federal Award Administration Information G Federal Awarding Agency Contacts H Other Information

Definitions: The table below contains terms and definitions applicable to this NOFO. For the purposes of this Definition table, terms that are italicized are defined in statute and the below definitions supplement the statutory definitions.

Term Definition Advisors Firms or individuals with expertise in technical, financial, or legal issues related to Asset Concessions, innovative finance, or project development and delivery. Costs incurred for hiring or employing Advisors are eligible for reimbursement using IFACGP grant funds.

Asset Concession A contract between an Eligible Entity and a Concessionaire under which the Eligible Entity agrees to enter into a concession agreement or long-term lease with the Concessionaire to deliver a TIFIA-eligible Project using an Existing Asset. As consideration for the agreement or lease, the Concessionaire agrees to provide the Eligible Entity one or more Asset Concession payments and to maintain or exceed the condition, performance, and service level of the Enhanced Asset (23 U.S.C. § 611(a)(2)).

Asset Concession Payment

A payment that is made by a Concessionaire to an Eligible Entity for fair market value that is determined as part of the Asset Concession and may be a payment made at the financial close of an Asset Concession, or a series of payments scheduled to be made for a fixed period or the term of an Asset Concession (23 U.S.C. § 611(a)(3)).

Asset Scan For the purposes of the Program, an Asset Scan is an evaluation or inventory of Existing Assets. The purpose of the Asset Scan is to identify those Assets that possess potential for alternative utilization through Asset Concessions. This Asset Scan will generally include market studies, cost estimates, revenue projections, development authorities, zoning restrictions, and options for project delivery. In the event the Asset Scan reveals an Asset is not suitable for delivery utilizing Asset Concessions, the Asset Scan may evaluate other delivery methods for TIFIA-eligible Projects.

Concessionaire A private individual or private or publicly chartered corporation, or other entity that enters into an Asset Concession with an Eligible Entity (23 U.S.C. § 611(a)(4)).

Eligible Entity A State; Tribal government; unit of local government; agency or instrumentality of a State, Tribal government, or unit of local government; or a special purpose district or public authority that owns, controls, or maintains an Existing Asset and has the legal authority to enter a contract or transfer ownership, maintenance, operations, revenues, or other benefits and responsibilities for an Existing Asset (23 U.S.C. § 611(a)(5)).

Enhanced Asset An Existing Asset as it would exist after an improvement is made.

Existing Asset Physical infrastructure, real property, or mineral/air rights to real property that could be improved using TIFIA credit assistance. See Section C.2 below for a list of sample Existing Assets. The Existing Asset or group of Existing Assets must be owned, controlled, or maintained by an eligible public entity (23 U.S.C. § 611(a)(5)(A)(i)).

Historically Disadvantaged Community

Consistent with the Office of Management and Budget (OMB)’s Interim Guidance for the Justice40 Initiative and the 2023 Addendum to this Guidance, Historically Disadvantaged Communities include (1) certain qualifying census tracts identified as disadvantaged due to categories of environmental, climate, and socioeconomic burdens, and

(2) any Federally Recognized Tribes or Tribal entities, whether or not they have land. Applicants should primarily use Climate & Economic Justice Screening Tool (CEJST)10, a new tool by the White House Council on Environmental Quality (CEQ), that aims to help federal agencies identify disadvantaged communities as part of the Justice40 initiative to accomplish the goal that 40% of benefits from certain federal investment reach disadvantaged communities.

screeningtool.geoplatform.gov Applicants should use CEJST as the primary tool to identify historically disadvantaged communities (Justice40 communities). Applicants are strongly encouraged to use the USDOT Equitable Transportation Community (ETC) Explorer to understand how their community or area is experiencing disadvantage related to lack of transportation investments or opportunities. Through understanding how a community or area is experiencing transportation-https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5 related disadvantage, applicants are able to address how the benefits of a project will reverse or mitigate the burdens of disadvantage and demonstrate how the project will address challenges and accrued benefits. https://www.transportation.gov/priorities/equity/justice40/etc-explorer.

Proposed Activities

Effort and expenses proposed for funding under the Program.

TIFIA The Transportation Infrastructure Finance and Innovation Act (TIFIA) program (codified at 23 U.S.C. §§ 601-609). See the Build America Bureau’s website describing the program here:

https://www.transportation.gov/buildamerica/financing/tifia

TIFIA-eligible Project

A project, as defined in 23 U.S.C. § 601(a)(12), to improve an Existing Asset. See Section C.3 below for a list of sample TIFIA-eligible Projects.

A. Program Description

1. Overview

Section 71001 of the Infrastructure Investment and Jobs Act (Pub. L. 117-58) (also referred to as the Bipartisan Infrastructure Law or BIL) established the IFACGP to provide grants to enhance the technical capacity of eligible public entities to facilitate and evaluate public-private partnerships. The BIL authorizes $100 million over five fiscal years (FY 2022-2026) for the IFACGP. This NOFO announces the availability of $57.72 million under the Program. The Build America Bureau, a functional unit of the USDOT Office of the Undersecretary of Transportation for Policy, will administer the IFACGP.

The objective of the Program is to facilitate and evaluate public-private partnerships in which the private sector partner could assume a greater role in project planning, development, financing, construction, maintenance, and operation, including by assisting eligible entities in entering into Asset Concessions. A significant focus of the IFACGP is to identify Existing Assets that have the potential to provide additional public benefits through asset concessions.

Under the Program, Eligible Entities can procure Advisors, hire employees into a public agency, or both, to administer Proposed Activities.

The Department seeks to fund projects that advance the Departmental priorities of safety, equity, climate and sustainability, and workforce development, job quality, and wealth creation as described in the USDOT Strategic Plan, Research, Development and Technology Strategic Plan, and in executive orders. More specifically, the Department seeks to fund projects under the IFACGP that reduce greenhouse gas emissions in the transportation sector; incorporate evidence-based climate resilience measures and features; avoid adverse environmental impacts to air or water quality, wetlands, and endangered species; and address the disproportionate https://www.transportation.gov/priorities/equity/justice40/etc-explorer https://www.transportation.gov/priorities/equity/justice40/etc-explorer https://www.transportation.gov/buildamerica/financing/tifia negative environmental impacts of transportation on disadvantaged communities, consistent with Executive Order 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).

In addition, the Department seeks to award projects under the IFACGP that proactively evaluate whether a project will create proportional impacts to all populations in a project area and increase equitable access to project benefits, consistent with Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (86 FR 7009). Likewise, the Department intends to use the IFACGP to support the creation of good paying jobs with the free and fair choice to join a union and the incorporation of strong labor standards and training and placement programs, especially registered apprenticeships, in project planning stages, consistent with Executive Order 14025, Worker Organizing and Empowerment (86 FR 22829), and Executive Order 14052, Implementation of the Infrastructure Investment and Jobs Act (86 FR 64335). The Department also intends to use the IFACGP to support wealth creation, consistent with the Department's Equity Action Plan, through the inclusion of local inclusive economic development and entrepreneurship such as the utilization of Disadvantaged Business Enterprises or 8(a) firms. Applicants are encouraged to review the Strategic Plan and executive orders and incorporate them into the design of applications for the Program.1

2. Federal Assistance

This is a competitive grant program and applications will be reviewed against the criteria listed in Section E below.

Application for the Program is voluntary. Participation does not obligate the recipient to apply for USDOT grants or loans in the future, nor does participation offer preferential treatment in any future applications. Projects that are part of the Program do not become federal-aid projects for the purposes of future funding, permitting, and administration requirements. Award of a grant does not obligate the Bureau or USDOT to provide additional financial assistance, nor does it constitute a commitment to provide federal credit assistance for the Existing Assets that are subject of this grant assistance.

3. Program Structure

The Program has two types of grants—(1) Technical Assistance and (2) Expert Services—each with specific uses and conditions that support the overall IFACGP objective. Technical Assistance Grants (23 U.S.C. § 611(d)(1)) will provide funding for Eligible Entities to build organizational capacity and perform programmatic grant activities either by procuring Advisors, hiring employees into a public agency, or both. Expert Services Grants (23 U.S.C. § 611(d)(2)) will provide funding for Eligible Entities to procure Advisors to explore leveraging public and private funding in connection with the development of a specific Existing Asset.

1 https://www.transportation.gov/sites/dot.gov/files/2022-04/US_DOT_FY2022-26_Strategic_Plan.pdf and https://www.federalregister.gov/presidential-documents/executive-orders https://www.transportation.gov/sites/dot.gov/files/2022-04/US_DOT_FY2022-26_Strategic_Plan.pdf https://www.federalregister.gov/presidential-documents/executive-orders

Proposed Activities under the Expert Services Grant must be used on specific projects (not programs). Expert Service Grants may be used to advance the development of more than one Existing Asset as long as the Proposed Activities pertain to specific projects and are not programmatic in scope. Applicants may request either type of grant but may not pursue both.

4. Conditions on Asset Concessions

Statute and DOT policy place conditions on receiving awards under the Program. If the Proposed Activities include direct assistance for an Asset Concession, such as negotiating a concession agreement, the cooperative agreement will include the following conditions:

a. the Asset Concession shall not prohibit, discourage, or make it more difficult for an Eligible Entity to construct new infrastructure, to provide or expand transportation services, or to manage associated infrastructure in publicly beneficial ways, along a transportation corridor or in the proximity of a transportation facility that was a part of the Asset Concession;

b. the Eligible Entity shall have adopted binding rules to publish all major business terms of the proposed Asset Concession not later than the date that is 30 days before entering into the Asset Concession, to enable public review, including a certification of public interest based on the results of an assessment under subparagraph (d);

c. the Asset Concession shall not result in displacement, job loss, or wage reduction for the existing workforce of the Eligible Entity or other public entities;

d. the Eligible Entity or the concessionaire shall carry out a value-for-money analysis, or similar assessment, to compare the aggregate costs and benefits to the Eligible Entity of the Asset Concession against alternative options to determine whether the Asset Concession generates additional public benefits and serves the public interest;

e. the full amount of any Asset Concession payment received by the Eligible Entity under the Asset Concession, less any amount paid for transaction costs relating to the Asset Concession, shall be used to pay infrastructure costs of the Eligible Entity; and

f. the terms of the Asset Concession shall not result in any increase in costs under the asset concession being shifted to taxpayers the annual household income of whom is less than $400,000 per year, including through taxes, user fees, tolls, or any other measure, for use of an approved infrastructure asset.

g. Not later than three years after the date on which an Eligible Entity enters into an Asset Concession as a result of a grant under this section—

i. the Eligible Entity shall hire an independent auditor to evaluate the performance of the concessionaire based on the requirements described in subparagraphs (a) through (f); and

ii. the independent auditor shall submit to the Eligible Entity, and make publicly available, a report describing the results of the audit under subparagraph (i).

B. Federal Award Information

1. Total Funding Available

The BIL authorized $20,000,000 for each of fiscal years 2022 to 2026 for the Program, totaling $100,000,000 through FY 2026. This NOFO makes available three fiscal years of funding (2022, 2023, and 2024), up to $57,720,000.2

2. Award Size and Anticipated Quantity

USDOT will make one cooperative agreement award per recipient. USDOT estimates it will award between 30 and 45 cooperative agreements under this NOFO, up to $2 million for each award. The Department reserves the right to make more or fewer awards but will not make awards over $2 million. No more than $4 million in funding under the Program will be awarded to Eligible Entities located within a single state during any 3-year period. The Department reserves the discretion to alter award sizes upon receiving the full pool of applications and assessing the needs of the Program in relation to the Departmental priorities discussed in Section A.1.

3. Availability of Funds

The IFACGP funds are available until expended. However, DOT expects and will consider during the application evaluation process the timeliness of grant award obligation and expenditure. Cooperative agreement funding obligation occurs when a selected applicant and the USDOT enter into a written agreement, after the applicant has satisfied applicable administrative requirements during the pre-award phase.

All awards will be administered pursuant to the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards found in 2 CFR Part 200, as adopted by USDOT at 2 CFR Part 1201. The IFACGP funds are available to the recipient for reimbursement as per 2 CFR 200.344(a). USDOT will not reimburse cooperative agreement recipients for costs incurred prior to the period of performance start date.

2 IIJA authorized $20 million per year to the IFACGP. However, the Program’s funding for FY 2023 and FY 2024 were reduced by $1.14 million to comply with the Balanced Budget and Emergency Deficit Control Act of 1985.

Information on this budget sequestration may be viewed here: https://www.whitehouse.gov/wp-content/uploads/2022/03/BBEDCA_251A_Sequestration_Report_FY2023.pdf https://www.whitehouse.gov/wp-content/uploads/2022/03/BBEDCA_251A_Sequestration_Report_FY2023.pdf https://www.whitehouse.gov/wp-content/uploads/2022/03/BBEDCA_251A_Sequestration_Report_FY2023.pdf

4. Start Dates and Period of Performance

The expected period of performance for a grant is up to 36 months. Each cooperative agreement will specify the period of performance.

After the period of performance begins, the recipient may begin incurring allocable costs.

USDOT will reimburse allocable incurred costs not exceeding the cap specified in the cooperative agreement. The recipient must maintain a system for recording all costs. Invoices should be transmitted to USDOT for monthly reimbursement.

If indirect costs are included in the budget, the applicant must include documentation to support the indirect cost rate they are using (unless claiming the 10 percent de minimis indirect cost rate, discussed below). The applicant must submit a copy of its current, approved, and negotiated indirect cost rate agreement (NICRA). If the applicant does not have a current or pending NICRA, it may propose indirect costs in its budget; however, the applicant must prepare and submit an allocation plan and rate proposal for approval within ninety days from the award start date (unless claiming the 10 percent de minimis indirect cost rate, discussed below). See 2 C.F.R. part 200 Apps. III, IV, V, VI, VII for guidance. The allocation plan and the rate proposal shall be submitted to USDOT. The applicant should include a statement in its Budget Narrative that it does not have a current or pending NICRA and will submit an allocation plan and rate proposal to USDOT or the applicant’s cognizant federal agency for approval.

In accordance with 2 CFR § 200.414(f), an applicant that does not have a current negotiated (including provisional) rate, may elect to charge a de minimis rate of 10 percent of modified total direct costs (subject to the exceptions of § 200.414(f)). No documentation is required to justify the 10 percent de minimis indirect cost rate; however, an applicant electing to charge a de minimis rate of 10 percent must include a statement in its Budget Narrative that it does not have a current negotiated (including provisional) rate and is electing to charge the de minimis rate.

If the applicant is a state or local unit of government (or an Indian Tribe) that receives less than $35 million in direct federal funding per year it may submit any of the following:

• a Certificate of Indirect Costs from the Department of the Interior (DOI) or USDOT;

• an acknowledgment received from the Department of Interior (on behalf of USDOT) and a Certificate of Indirect Costs in the form prescribed at 2 C.F.R. pt. 200, app. VII;

or

• a Negotiated Indirect Cost Rate Agreement (NICRA).

Other terms and conditions as well as performance requirements will be addressed in further communications with the recipient. The full terms and conditions may vary and are subject to discussions and negotiations.

In connection with any program or activity conducted with or benefiting from funds awarded under this notice, recipients of funds must comply with all applicable requirements of federal law, including, without limitation, the Constitution of the United States statutory, regulatory, and public policy requirements, including without limitation, those protecting free speech, religious liberty, public welfare, the environment, and prohibiting discrimination; the conditions of performance, non-discrimination requirements, and other assurances made applicable to the award of funds in accordance with regulations of the Department of Transportation; and applicable federal financial assistance and contracting principles promulgated by the Office of Management and Budget. In complying with these requirements, recipients must ensure that no Concession Agreements are denied, or other contracting decisions made on the basis of speech or other activities protected by the First Amendment. If the Bureau determines that a recipient has failed to comply with applicable federal requirements, the Bureau may terminate the award of funds and disallow previously incurred costs, requiring the recipient to reimburse any expended award funds.

Additionally, Executive Order 13858 directs the Executive Branch Departments and agencies to maximize the use of goods, products, and materials produced in the United States through the terms and conditions of federal financial assistance awards. If selected for an award, recipients must be prepared to demonstrate how they will maximize the use of domestic goods, products, and materials, as applicable.

Pursuant to 2 CFR 200.340, a federal award may be terminated in whole or in part if the recipient fails to comply with the terms and conditions of the award or if USDOT determines the award no longer effectuates the program goals or agency priorities.

C. Eligibility Information

1. Eligible Applicants

Eligible applicants for the Program are States; Tribal governments; units of local government;

agencies or instrumentalities of a State, Tribal government, or unit of local government, or special purpose districts or public authorities. In order to be eligible, the applicant must:

• own, control, or maintain an Existing Asset; and

• have the legal authority to enter into a contract to transfer ownership, maintenance, operations, revenues, or other benefits and responsibilities for an Existing Asset.

• Have authority to enter into contracts to procure any professional services that would be funded under the Program, or to employ full or part time staff to perform the activities described.

Eligible costs must comply with the cost principles set forth in 2 CFR Part 200, Subpart E, including the requirements set forth in 2 CFR § 200.317-327 and 2 CFR § 200.459 with respect to procurements and contracts for recipient-contracted advisors procured for Expert Services cooperative agreements. The Bureau reserves the right to make cost eligibility determinations on a case-by-case basis.

Direct costs such as travel, materials, other direct costs, and indirect rates are eligible for reimbursement under the Program. Applicants should discuss anticipated direct costs in the budget proposal. Direct costs should be included in the total program budget.

2. Cost Sharing or Matching

The maximum value of cooperative agreements is $2 million. Cooperative agreements of up to $1 million are offered at 100 percent federal share (no required non-federal match). Amounts in excess of $1 million are offered at 50 percent federal share (50 percent required non-federal match). For example, a cooperative agreement of $2 million in federal aid would be matched by $1 million of non-federal funds, supporting a $3 million effort.

3. Existing Assets

Applicants must identify at least two Existing Assets to evaluate for potential Asset Concession opportunities under a Technical Assistance cooperative agreement, or at least one Existing Asset to develop by leveraging public or private funds under an Expert Services cooperative agreement. Existing Assets are physical infrastructure, real property, or mineral/air rights to real property that could be improved using TIFIA credit assistance. Examples of Existing Assets include:

• Bridges and tunnels

• Intercity passenger bus or rail facilities and vehicles, including those owned by Amtrak

• Public freight rail

• Private freight rail

• Intermodal freight transfer facilities

• An existing highway

• A street

• Vacant or underutilized parcels or right-of-way

• Airport terminal facilities and transportation infrastructure

• Inland ports

• Ports

• Public transportation facilities and infrastructure

4. TIFIA-eligible Projects

The Proposed Activities must explore developing an Existing Asset into an Enhanced Asset with a TIFIA-eligible Project. Applicants are encouraged to refer to 23 U.S.C. § 601(a)(12) for a list of TIFIA-eligible Projects and websites discussing TIFIA eligibility located on the Build America Bureau website at https://www.transportation.gov/buildamerica/financing/tifia/tifia-credit-program-overview. Award recipients are not required to use TIFIA financing for https://www.transportation.gov/buildamerica/financing/tifia/tifia-credit-program-overview https://www.transportation.gov/buildamerica/financing/tifia/tifia-credit-program-overview construction or operation of infrastructure. Examples of TIFIA-eligible Projects that could improve an Existing Asset and convert it to an Enhanced Asset include:

• Highway construction projects, such as high-occupancy toll lanes, or highway improvement projects

• Roadway improvement projects

• Bridges and tunnels

• Intercity passenger bus or rail facilities and vehicles, including those owned by Amtrak

• Public freight rail projects

• Private freight rail projects that provide public benefit for highway users by way of direct highway-rail freight interchange

• Intermodal freight transfer facilities

• Projects providing access to, or improving the service of, the freight rail projects, and transfer facilities described above

• Surface transportation infrastructure modifications necessary to facilitate direct intermodal interchange, transfer, and access into and out of a port

• Acquiring, improving, and rehabilitating track, bridges, rail yards, buildings, and shops

• Preconstruction activities

• Positive train control

• Transit-oriented development projects that include public infrastructure

• Joint Development commercial and residential projects

• New rail or intermodal facilities

• Wildlife crossing projects

• Surface transportation projects at airports

• Airport terminal facilities and preconstruction activities

• Airport noise compatibility planning

• Conversion of ground equipment to low or no emission technology

• Inland ports

• A surface transportation project within the boundaries or functionally connected to an international border crossing that improves a facility owned by federal/state/local government and increases throughput efficiency

• A project for a marine highway corridor that is functionally connected to the National Highway Freight Network and is likely to reduce road mobile source emissions

• A public transportation project that is eligible for assistance under chapter 53 of title 49 or is a part of any of the project types described above

5. Proposed Cooperative Agreement Activities

Each cooperative agreement type has specific eligible activities.

a. Technical Assistance Cooperative Agreements

Technical Assistance awards can be used to build the organizational capacity of the Eligible Entity to develop, review, or enter into Asset Concessions to advance TIFIA-eligible Projects, including for—

i. Asset Scan: Technical Assistance Cooperative Agreements can be used to conduct assessments of multiple Existing Assets that are wholly owned by or under the jurisdiction of the applicant. (See definition for Asset Scan in the definition table.)

ii. Program of Existing Assets: Technical Assistance Cooperative Agreements can be used to fund tasks related to advancing a Program of Existing Assets by conducting pre-construction tasks that consider innovative financing and delivery to achieve project goals, including:

• soliciting and negotiating Asset Concessions, including hiring staff in public agencies;

• conducting a value-for-money analysis, or a comparable analysis, to evaluate the comparative benefits of Asset Concessions and public debt or other procurement methods;

• evaluating options for the structure and use of Asset Concession Payments;

• evaluating and publicly presenting the risks and benefits of all contract provisions for the purpose of transparency and accountability;

• identifying best practices to protect the public interest and priorities;

• identifying best practices for managing transportation demand and mobility along a corridor, including through provisions of the Asset Concession, to facilitate transportation demand management strategies along the corridor that is subject to the Asset Concession; and

• integrating and coordinating pricing, data, and fare collection with other regional operators that exist or may be developed.

To execute these activities, Technical Assistance Cooperative Agreements may be used to hire full- or part-time employees or procure the services of Advisors. Proposed Activities must expand the capacity of the recipient to advance a program of projects through innovative financing or innovative project delivery methods, including Asset Concessions.

Two or more Existing Asset must be bundled together for joint analysis using a Technical Assistance Cooperative Agreement. All such Existing Assets included in the bundle will be considered for a single cooperative agreement for the purposes of the Program.

The bullets below are illustrative examples of how recipients can use Technical Assistance Cooperative agreements:

• Procure a consulting firm to conduct an Asset Scan of roadway and transit infrastructure owned by the applicant. The Asset Scan would assess which—if any—Assets are suited for an Asset Concession. In the event the Asset Scan reveals an Existing Asset is not suitable for delivery utilizing an Asset Concession, the Asset Scan would evaluate other delivery methods.

• Hire a public employee to manage real estate Assets controlled by an applicant on or near airport, seaport, and public transit infrastructure. The employee would conduct or oversee Advisors conducting pre-construction activities to redevelop the Existing Assets. The tasks would include determining the suitability and approach for utilizing Asset Concessions for Existing Asset redevelopment. In the event the analysis reveals Asset Concessions are not a suitable delivery method, the employee would conduct analyses to identify innovative financing and delivery methods that achieve public goals. Further, the public employee would protect the public interest in the real estate properties and adjacent communities.

b. Expert Services Cooperative Agreements

Expert Services Cooperative Agreements provide funding to Eligible Entities seeking to leverage public and private funding in connection with the development of a specific Existing Asset. Expert Services Cooperative Agreements can include the development of alternative approaches to project delivery or procurement. Expert Services Cooperative Agreements may only be used to procure Advisors for project-level assistance. Expert Service Grants may be used to advance the development of more than one Existing Asset as long as the Proposed Activities pertain to specific projects and are not programmatic in scope. Services conducted under an Expert Services Cooperative Agreements may include:

i. Project planning, feasibility studies, revenue forecasting, economic assessments and cost-benefit analyses, public benefit studies, value-for-money analyses, business case development, lifecycle cost analyses, risk assessment, financing and funding options analyses, procurement alternatives analyses, statutory and regulatory framework analyses, meaningful public involvement and other pre-procurement and pre-construction activities;

ii. financial and legal planning (including the identification of statutory authorization, funding, and financing options);

iii. early assessment of permitting, environmental review, and regulatory processes and costs;

iv. assistance with entering into an Asset Concession;

v. impact analysis of Existing Asset development on issues in the public interest, including worker displacement and equitable investment.

The below items are examples of how recipients can use Expert Service Cooperative Agreements:

• Procure the services of an outside finance expert to advise the recipient on value-for-money, financing options, contract negotiation, and underwriting of loans to construct highway express lanes.

• Procure a consultant to prepare analysis and reports required to secure permits for a transit-oriented joint development project located on public land adjacent to an existing light rail line.

D. Application and Submission Information

1. Address to Request Application Package

All application materials can be accessed at www.grants.gov. Applicants must submit their application via Grants.gov under the NOFO cited herein. General information for submitting applications through Grants.gov is available on that website, along with specific instructions for the forms required for submission. Potential applicants may also request paper copies of materials at:

Telephone: (202) 366-2414 Mail: Build America Bureau 1200 New Jersey Avenue SE W12-425 Washington, DC 20590

2. Content and Form of Application Submission

a. Standard Forms

All applicants must submit the following Standard Forms:

i. Application for Federal Assistance (SF-424)

ii. Budget Information for Non-Construction Programs (SF-424A)

iii. Assurances for Non-Construction Programs (SF-424B)

iv. Disclosure of Lobbying Activities (SF-LLL)

b. Additional Information

In addition to the Standard Forms, all applicants must provide an application narrative that conforms with the following instructions:

Document(s) Page Limit

i. Key Information Table N/A

ii. Proposal Narrative (Cooperative Agreement Plan)

- Proposal Overview

- Type and Need http://www.grants.gov/

- Workplan

- Budget

- Oversight and Staffing

iii. Asset Information 4 per Asset

i. Key Information Table: Applicants must provide the information requested in the below Key Information Table.

Title Instructions IFACGP Cooperative Agreement Name

Enter the same title used in the Grants.gov SF-424 submission and the application narrative.

Applicant Name Enter the same name used in the Grants.gov SF- 424 submission Question 8.a.

State Indicate State or territory or District of Columbia in which applicant is located.

Applicant Unique Entity Identifier (UEI)

See Section D.3 below for information about obtaining a UEI from SAM.gov.

Eligible Entity Type Enter the letter corresponding to the Eligible Entity type for your application: A. State; B.

Tribal government; C. unit of local government;

D. agency or instrumentality of a State, Tribal government, or unit of local government; or E.

special purpose district or public authority.

Applicants should provide evidence of their qualification as an Eligible Entity.

Certification of Applicant’s Authority to Transfer Benefits and Responsibilities for Relevant Assets

Yes, Yes with limitations, or No

Specify any limitations on authority

Certification of Applicant’s Asset Ownership/Control

Yes or No

Name or Description of Existing Asset(s)

Narrative discussion that includes place names, extant facility names, mile markers, addresses, geo-location, or other identifying characteristics.

The applicant should identify at least 2 Existing Assets for a Technical Assistance Cooperative Agreement and at least 1 Existing Asset for an Expert Services Cooperative Agreement.

Type of Grant Requested

Enter the letter corresponding to the grant type you are applying for:

A. Technical Assistance Cooperative Agreement or B. Expert Services Cooperative Agreement

If Applying for a Technical Assistance Cooperative Agreement, Which Category of Funding Requested?

Asset Scan or Program of Existing Assets (Select One)

Was federal funding previously received for any Existing Asset in this cooperative agreement application?

Yes or No

If yes, indicate the amount of federal funding received and the relevant grant number and program.

Brief Application Description

Using no more than 250 words Please do not include detailed lists or describe background or alignment with the selection criteria in this field. Do not include classified, proprietary, or confidential information, as USDOT might publish this Brief Application Description. You may provide a longer, narrative description in the Proposal Narrative (see ii.

below for Proposal Narrative instructions).

For Technical Assistance Cooperative Agreements, explain how grant funds will be used to build organizational capacity and the expanded capacity being sought.

For Expert Services Cooperative Agreements, explain how grant funds will be used to leverage public and private funding in connection with the development of a specific Existing Asset.

Funding Requested Total dollar amount requested.

If requesting more than $1 million, indicate amount and source of the 50 percent non-federal matching funds for the Proposed Activities.

Proposed Duration (in months)

Indicate requested cooperative agreement period of performance up to 36 months.

ii. Proposal Narrative (Cooperative Agreement Plan): The Bureau recommends that the Cooperative Agreement Plan follow the outline below to address the Program requirements and assist evaluators in locating relevant information. The Cooperative agreement Plan should not exceed 10 pages; excluding cover page, Key Information Table, appendices/supporting materials, and Existing Asset Information. Evaluators will disregard information in excess pages. If supporting materials are submitted, applicants should clearly identify within the Narrative the location and relevance of each supporting document.

All documents must be submitted in PDF format.

The Department may share application information within the Department or with other federal agencies if the Department determines that sharing is relevant to the respective Program’s objectives, or for evaluation purposes.

A. Proposal Overview

This section should provide an introduction of the Eligible Entity and its proposed use of funding under the Program. It should describe whether the applicant is applying for a Technical Assistance Cooperative Agreement (including if an entity is applying for either an Asset Scan or for a Program of Existing Assets) or Expert Services Cooperative Agreement and provide any background information that would be useful to understand the rest of the application.

• For Technical Assistance Cooperative Agreement, the overview should explain in depth how the cooperative agreement funds will be used to build organizational capacity, the expanded capacity being sought, and the goals the applicant expects to achieve by participating in the Program. These goals should align with the activities set forth in Section C.5(a) of this Notice.

• For Expert Services Cooperative Agreements, the overview should explain in depth how cooperative agreement funds will be used to explore leveraging public and private funding in connection with the development of at least one specific Existing Asset and the goals the applicant expects to achieve by participating in the Program. These goals should align with the activities set forth in Section C.5(b) of this Notice.

B. Proposed Activities, Need, and Goals

This section should introduce the Proposed Activities for which the applicant is seeking funding. Applicants should describe the need for the Proposed Activities (Technical Criterion #1) and the goals for the Proposed Activities (Technical Criterion #2). Additionally, the applicant should describe its approach to build organizational capacity to advance early-stage TIFIA-eligible Projects by leveraging public and private funding (Technical Criterion #3). This includes a discussion of how the private sector can assume a greater role in project development, construction, maintenance, and/or operations. The applicant should also describe how the Proposed Activities align with the USDOT’s strategic goals and priorities as described in Section A.1 (Policy Alignment Selection Consideration).

C. Work Plan

The application should discuss the work plan of the Proposed Activities. The applicant should discuss the required labor hours to complete the Proposed Activities. This portion of the application narrative should include a discussion of plans to hire staff (Technical Assistance Cooperative Agreements only) or procure Advisors to complete the Proposed Activities. The applicant should include a timeline with key milestones to execute the Proposed Activities (Readiness Criterion #1). The timeline should also identify opportunities for the private sector to assume a role in project development, financing, construction, maintenance, and/or operations (Readiness Criterion #2).

The applicant should describe its public engagement and partnership activities in the work plan. The applicant’s planning and evaluation activities should provide channels for potentially impacted communities to express their concerns and meaningfully influence infrastructure decision making (Readiness Criterion #1).

D. Budget

This section should provide a budget plan that corresponds to and describes the information contained in the applicant’s SF-424A. The budget plan should describe all planned activity costs and how they relate to the workplan (Readiness Criterion #4).

If the budget plan for a Technical Assistance Cooperative Agreement includes personnel costs eligible under Section C.5(a)(ii) of this NOFO, the applicant must include a complete breakdown of those costs, including personnel title/position, hourly rate, and the number of hours expected to be spent by each person on the proposed activity (Readiness Criterion #4)

The budget should show how different funding sources will share in each activity and present those data in dollars and percentages. The budget should identify other federal funds the applicant is applying for or has been awarded, if any, that the applicant intends to use. Funding sources should be grouped into three categories: non-federal, IFACGP requested funds, and other federal with specific amounts from each funding source. Additional federal funds are not required to participate in the IFACGP. Budget spreadsheets may be included as an appendix and do not count against the page limitation.

If applicable, the non-federal share must be reflected in the budget section of the cooperative agreement application and must be utilized as indicated therein. If applicable, the non-federal share should be remitted directly to the organizations that provide technical assistance or expert services to the cooperative agreement recipient, with the federal cooperative agreement manager copied on all invoices and payment notices.

If indirect costs are included in the budget, the applicant must include documentation to support the indirect cost rate they are using (unless claiming the 10 percent de minimis indirect cost rate, discussed below). The applicant must submit a copy of its current, approved, and negotiated indirect cost rate agreement (NICRA). If the applicant does not have a current or pending NICRA, it may propose indirect costs in its budget; however, the applicant must prepare and submit an allocation plan and rate proposal for approval within ninety days from the award start date (unless claiming the 10 percent de minimis indirect cost rate, discussed below). See 2 CFR Part 200 Apps. III, IV, V, VI, VII for guidance. The allocation plan and the rate proposal shall be submitted to USDOT. The applicant should include a statement in its Budget Narrative that it does not have a current or pending NICRA and will submit an allocation plan and rate proposal to USDOT or the applicant’s cognizant federal agency for approval. Documentation does not count against page limitation.

In accordance with 2 CFR § 200.414(f), an applicant that does not have a current negotiated (including provisional) rate, may elect to charge a de minimis rate of 10 percent of modified total direct costs (subject to the exceptions of § 200.414(f)). No documentation is required to justify the 10 percent de minimis indirect cost rate; however, an applicant electing to charge a de minimis rate of 10 percent must include a statement in its Budget Narrative that it does not have a current negotiated (including provisional) rate and is electing to charge the de minimis rate.

If the applicant is a state or local unit of government (or an Indian Tribe) that receives less than $35 million in direct federal funding per year it may submit any of the following (does not count against page limitation):

• a Certificate of Indirect Costs from the Department of the Interior (DOI) or USDOT;

• an acknowledgment received from the Department of Interior (on behalf of USDOT) and a Certificate of Indirect Costs in the form prescribed at 2 C.F.R. pt. 200, app. VII; or

• a Negotiated Indirect Cost Rate Agreement (NICRA).

Other terms and conditions as well as performance requirements will be addressed in further communications with the recipient. The full terms and conditions may vary and are subject to discussions and negotiations.

In connection with any program or activity conducted with or benefiting from funds awarded under this notice, recipients of funds must comply with all applicable requirements of federal law, including, without limitation, the Constitution of the United States statutory, regulatory, and public policy requirements, including without limitation, those protecting free speech, religious liberty, public welfare, the environment, and prohibiting discrimination; the conditions of performance, non-discrimination requirements, and other assurances made applicable to the award of funds in accordance with regulations of the Department of Transportation; and applicable federal financial assistance and contracting principles promulgated by the Office of Management and Budget. In complying with these requirements, recipients must ensure that no concession agreements are denied, or other contracting decisions made on the basis of speech or other activities protected by the First Amendment. If the Bureau determines that a recipient has failed to comply with applicable federal requirements, the Bureau may terminate the award of funds and disallow previously incurred costs, requiring the recipient to reimburse any expended award funds.

Additionally, Executive Order 13858 directs the Executive Branch Departments and agencies to maximize the use of goods, products, and materials produced in the United States through the terms and conditions of federal financial assistance awards. If selected for an award, cooperative agreement recipients must be prepared to demonstrate how they will maximize the use of domestic goods, products, and materials, as applicable.

Pursuant to 2 CFR 200.340, a federal award may be terminated in whole or in part if the recipient fails to comply with the terms and conditions of the award or if USDOT determines the award no longer effectuates the program goals or agency priorities.

E. Oversight and Staffing

The applicant should detail the staffing and oversight of the Proposed Activities.

This includes a discussion of proposed leadership, staff expertise required, expected levels of effort, institutional controls, and policies. The applicant should discuss its ability to carry out the proposed scope of work based on relevant and necessary expertise, and its capability to oversee and manage the procurement of expert services under the Program. Any previous experience with procuring expert services, public private partnerships, or use of credit markets should be included in the narrative and may be expanded upon in an appendix (Readiness Criterion #3).

F. Appendices

One or more appendices may be included in the proposal. Applicants should reference and summarize appendices in the…