Transcript GeevargheseTues830 - American Association of State

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…
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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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Strategic Project Oversight
Universe of Projects
State Authorized
Delegated
Projects
Full Oversight
Delegated
Responsibilities
High Profile Projects
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What is the foundation of the new
Stewardship Agreement?
Caltrans & FHWA
Strategic Plans
Collaborative MultiYear Plan
Comprehensive
Risk
Based Approach
Strategic Stewardship
and Oversight
Performance Measures
Compliance Indicators
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Components of New
Stewardship Agreement
1.
2.
3.
4.
Joint Strategic Planning Process
Performance Indicators/Measures
Multi-Year Plan
Strategic Stewardship and Oversight
– Program Reviews
– Program Assessments
– Strategic Project Oversight
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Joint Strategic Planning Process
Caltrans & FHWA
Strategic Plans
Influence both
Strategic Plans
Align desired
outcomes
Align desired
objectives
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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
Collaborative
Multi-Year Plan
3-year list of
strategies
Current list of
High Profile Projects
Significant
Accomplishments
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Strategic Stewardship and
Oversight
Program Assessment
Strategic Stewardship
and Oversight
Program Reviews
Strategic Project
Oversight
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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 nondelegated 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. Geevarghese
Realty Specialist
FHWA California Division
650 Capitol Mall, Ste. 4-100
Sacramento, CA 95814
(916) 498-5344
E-mail: [email protected]
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