1. Presented to: By: Date: Federal Aviation Administration Changes in Reimbursable Agreements 31 st Annual Airports Conference V Thompson & R Farrell, Lead Planners March 18, 2008

2. 2 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 2 Eastern Service Center System Support Business Services Safety Assurance Planning & Requirements Administrative Services NAS PLANNING & INTEGRATION REQUIREMENTS PROGRAM IMPLEMENTATION MANAGEMENT RESOURCE PLANNING

3. 3 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 3 Lead Planner Boundaries

4. 4 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 4 NAS Planning and Integration – Lead Planners Liaison for the Eastern Service Center to Airports Division, Airport Sponsors, and State Aviation Departments. Responsible for integration of Sponsors’ current and future development plans with FAA plans for airspace and NAS Facilities and Equipment projects. Coordinate and negotiate Reimbursable Agreements. Point of contact for the Reimbursable Agreement for the life of the Agreement. Liaison for the Eastern Service Center to Airports Division, Airport Sponsors, and State Aviation Departments. Responsible for integration of Sponsors’ current and future development plans with FAA plans for airspace and NAS Facilities and Equipment projects. Coordinate and negotiate Reimbursable Agreements. Point of contact for the Reimbursable Agreement for the life of the Agreement.

5. 5 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 5 Why FAA Must Enter Into Reimbursable Agreements FAA and sponsor activities are clearly defined. Work on NAS facilities is performed in accordance with regulatory requirements. The safety and efficiency of the NAS is maintained. The impact to facility life cycle costs (long term) is minimized. The highest level of FAA expertise and experience is available to help solve project problems and challenges. FAA and sponsor activities are clearly defined. Work on NAS facilities is performed in accordance with regulatory requirements. The safety and efficiency of the NAS is maintained. The impact to facility life cycle costs (long term) is minimized. The highest level of FAA expertise and experience is available to help solve project problems and challenges.

6. 6 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 6 Reimbursable Agreements Notify NPI at least 4 months prior to expected Engineering Services organization involvement. Engineering Services cannot incur any obligations (labor and non-labor) prior to receipt of Project Authorization from FAA Budget Office. If sponsor’s proposal includes non-Federal facilities, sponsor will be advised to contact the ATO Non-Fed Coordinator. Master agreements will no longer be processed. Notify NPI at least 4 months prior to expected Engineering Services organization involvement. Engineering Services cannot incur any obligations (labor and non-labor) prior to receipt of Project Authorization from FAA Budget Office. If sponsor’s proposal includes non-Federal facilities, sponsor will be advised to contact the ATO Non-Fed Coordinator. Master agreements will no longer be processed.

7. 7 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 7 Reimbursable Agreements Relocation, modification, or replacement of existing FAA facilities Need is initiated by non-federal entity (private entities, state/local governments, airport owners, etc.) or other federal agency. Scope of work is defined by ATO. All FAA costs to be reimbursed by Project Sponsor. Relocation, modification, or replacement of existing FAA facilities Need is initiated by non-federal entity (private entities, state/local governments, airport owners, etc.) or other federal agency. Scope of work is defined by ATO. All FAA costs to be reimbursed by Project Sponsor.

8. 8 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 8 Reimbursable Agreements Establishment of non-Federal Facility for FAA Takeover Requires Project Sponsor to formally request FAA takeover. Request should be made in advance of project execution to ensure FAA requirements are addressed as part of project implementation. If takeover is approved, ATO requests a Quality Control role via a reimbursable agreement. Establishment of non-Federal Facility for FAA Takeover Requires Project Sponsor to formally request FAA takeover. Request should be made in advance of project execution to ensure FAA requirements are addressed as part of project implementation. If takeover is approved, ATO requests a Quality Control role via a reimbursable agreement.

9. 9 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 9 Reimbursable Agreements Establishment/Relocation of a non-Federal ATCT Required to fund AFTIL siting, if federal funds are involved. Required to fund relocation of FAA data processing equipment. Required to fund establishing/relocating telecommunication interconnection with the FAA NAS. Required to fund design review/approvals if federal contract controllers are used. Establishment/Relocation of a non-Federal ATCT Required to fund AFTIL siting, if federal funds are involved. Required to fund relocation of FAA data processing equipment. Required to fund establishing/relocating telecommunication interconnection with the FAA NAS. Required to fund design review/approvals if federal contract controllers are used.

10. 10 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 10 Changes in Reimbursable Agreement Policy The Office of Management and Budget (OMB) requires agencies to collect an advance when they enter into a reimbursable agreement with non- Federal entities (Public). OMB does not consider receivables from the Public as a budgetary resource until collected. Collection of an advance is to remedy the resulting shortfall in the budgetary resource. The Office of Management and Budget (OMB) requires agencies to collect an advance when they enter into a reimbursable agreement with non- Federal entities (Public). OMB does not consider receivables from the Public as a budgetary resource until collected. Collection of an advance is to remedy the resulting shortfall in the budgetary resource.

11. 11 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 11 Changes in Reimbursable Agreement Policy Now using a new National Reimbursable Agreement Tool ATO Finance Policy requires advance payment in full prior to incurring any obligations. Overhead rate of 26.5% to be included on all new and amended agreements. Period of performance for each agreement cannot exceed 5 years. Policy changes were effective October 31, 2006. Now using a new National Reimbursable Agreement Tool ATO Finance Policy requires advance payment in full prior to incurring any obligations. Overhead rate of 26.5% to be included on all new and amended agreements. Period of performance for each agreement cannot exceed 5 years. Policy changes were effective October 31, 2006.

12. 12 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 12 Reimbursable Agreement Process Airport Owner should notify the ADO of their intentions to build or remove airport facilities during the conception and planning stage For a detailed facility impact review, the proposal should be submitted thru the OE/NRA process Airport Owner must decide how to proceed - relocate/modify the proposed airport construction project or relocate/modify the FAA facility Agreement Types: –Preliminary Design Agreement –Full Scope Agreement Airport Owner should notify the ADO of their intentions to build or remove airport facilities during the conception and planning stage For a detailed facility impact review, the proposal should be submitted thru the OE/NRA process Airport Owner must decide how to proceed - relocate/modify the proposed airport construction project or relocate/modify the FAA facility Agreement Types: –Preliminary Design Agreement –Full Scope Agreement New Runway Project

13. 13 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 13 Reimbursable Agreement Process Development of a full scope reimbursable agreement: –Define Scope of Work – 4 weeks –Define Responsibilities –Cost Estimates – 2 weeks –Coordinate Draft Agreement – 4 weeks –Sign Agreement – 4 to 8 weeks –Establish Project Authorization – 3 to 4 weeks Development of a full scope reimbursable agreement: –Define Scope of Work – 4 weeks –Define Responsibilities –Cost Estimates – 2 weeks –Coordinate Draft Agreement – 4 weeks –Sign Agreement – 4 to 8 weeks –Establish Project Authorization – 3 to 4 weeks

14. 14 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 14 Typical Project Timeline to Establish a NAS Facility

15. 15 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 15 Other Planning Considerations All Projects involving Relocation, Modification and/or Replacement of FAA facilities must be sited and constructed using current FAA standards All costs for establishing and maintaining non-Fed NDBs must be paid for by the Project Sponsor. ILS burn-in is required before commissioning CAT II/III Procedures. Flight Check is required for PAPIs on IFR runways or if circling is authorized. All Projects involving Relocation, Modification and/or Replacement of FAA facilities must be sited and constructed using current FAA standards All costs for establishing and maintaining non-Fed NDBs must be paid for by the Project Sponsor. ILS burn-in is required before commissioning CAT II/III Procedures. Flight Check is required for PAPIs on IFR runways or if circling is authorized.

16. 16 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 16 Other Planning Considerations ATO does not support relocation of FAA VASIs – ATO will decommission. –ATO will try to obtain PAPI equipment for installation via the F&E process. Project Sponsor will be responsible for cost of establishing the PAPI. FAA will maintain the facility at FAA cost. Underground Cables –If airport development causes a need to establish or replace an existing cable link, fiber optics transmission system (FOTS) requirements must be considered as part of project scope. ATO does not support relocation of FAA VASIs – ATO will decommission. –ATO will try to obtain PAPI equipment for installation via the F&E process. Project Sponsor will be responsible for cost of establishing the PAPI. FAA will maintain the facility at FAA cost. Underground Cables –If airport development causes a need to establish or replace an existing cable link, fiber optics transmission system (FOTS) requirements must be considered as part of project scope.

17. 17 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 17 NAVAIDS Discontinuance FAA is working to identify decommissioned NAVAID facilities and relinquish costly leases. Direction Finders (DF) - Performing site surveys to remove DF equipment. VORTAC - By 2025 all remaining FAA VORs should be removed from service. A VOR replacement program is under development to replace VORs that will remain in service until 2025. FAA is working to identify decommissioned NAVAID facilities and relinquish costly leases. Direction Finders (DF) - Performing site surveys to remove DF equipment. VORTAC - By 2025 all remaining FAA VORs should be removed from service. A VOR replacement program is under development to replace VORs that will remain in service until 2025.

18. 18 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 18 New on the Horizon Runway Status Lights (RWSL) –National Transportation Safety Board Most Wanted Transportation Safety Improvements (Aviation). –The RWSL system integrates airport lighting equipment with approach and surface surveillance systems to provide a visual signal to pilots and vehicle operators indicating that it is unsafe to enter/cross or begin takeoff on runway. –Implementation of RWSL requires the use of the Airport Authority’s lighting vault, fiber optic system, and requires installation of lights in designated runways/taxiways. –Initial Investment Decision made July 2007. In-Service Decision expected Summer 2008. Runway Status Lights (RWSL) –National Transportation Safety Board Most Wanted Transportation Safety Improvements (Aviation). –The RWSL system integrates airport lighting equipment with approach and surface surveillance systems to provide a visual signal to pilots and vehicle operators indicating that it is unsafe to enter/cross or begin takeoff on runway. –Implementation of RWSL requires the use of the Airport Authority’s lighting vault, fiber optic system, and requires installation of lights in designated runways/taxiways. –Initial Investment Decision made July 2007. In-Service Decision expected Summer 2008. Runway Entrance Lights (RELs) Takeoff Hold Lights (THLs)

19. 19 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 19 New on the Horizon Airport Strategic Profiles –Will allow a high level understanding of all activities impacting the NAS in the Service Area, both internally and externally to the ATO. –Ensure that all current and future activities initiated in the Service Area are aligned with the Agency’s Flight Plan, Strategic Management Plan, Business Plans and Operations Plans. –Ensure horizontal integration of all activities and schedules of programs and projects at individual and groups of facilities. –Matrixes with the other stakeholder teams to ensure horizontal integration. Airport Strategic Profiles –Will allow a high level understanding of all activities impacting the NAS in the Service Area, both internally and externally to the ATO. –Ensure that all current and future activities initiated in the Service Area are aligned with the Agency’s Flight Plan, Strategic Management Plan, Business Plans and Operations Plans. –Ensure horizontal integration of all activities and schedules of programs and projects at individual and groups of facilities. –Matrixes with the other stakeholder teams to ensure horizontal integration.

20. 20 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 20 We’re Here! If you have questions about how to proceed with accomplishing projects at your airports, contact the NPI Lead Planner for information: Denise Knight, North Team Manager Richard Farrell (404) 305-7069 Freddie Chez (404) 305-7067 Guy Hall (404) 305-7075 Willie Weatherly (404) 305-7073 Send Correspondence to: Federal Aviation Administration ATO/P&R/NAS Planning and Integration PO Box 20636 Atlanta, GA 30320 If you have questions about how to proceed with accomplishing projects at your airports, contact the NPI Lead Planner for information: Denise Knight, North Team Manager Richard Farrell (404) 305-7069 Freddie Chez (404) 305-7067 Guy Hall (404) 305-7075 Willie Weatherly (404) 305-7073 Send Correspondence to: Federal Aviation Administration ATO/P&R/NAS Planning and Integration PO Box 20636 Atlanta, GA 30320

21. 21 Federal Aviation Administration Changes in Reimbursable Agreements March 18, 2008 21