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United States Department of TransportationUnited States Department of Transportation

AIP Handbook

Office of Airports

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Appendix A. Definitions of Terms Used in this Handbook

A-1. Definitions of Terms Used in this Handbook.

Definitions are an extremely important part of this Handbook. As with any large program, there are many words and phrases that have specific, defined meanings within the program. Table A-1 contains an alphabetical listing of the definitions used in this Handbook. The following letters are links to the appropriate alphabetical sections in Table A-1.

A B C D E F G H I J L M N O P R S T U W
Table A-1 Definition of Terms Used in This Handbook
Definitions - A
Access Road. See Terminal Development. A portion of an access road or an access road can be considered access road improvement instead of terminal development is when it does not go directly to or from a terminal building.
The Act. The contents of this Handbook are based on the AIP related legislation contained in the United States Code (USC). Throughout this Handbook, the AIP related legislation under Title 49 is referred to as the Act. Previously, AIP was authorized by the Airport and Airway Improvement Act of 1982 (Public Law 97-248), which Congress repealed in 1994 and recodified as Title 49 § 47101, et seq. (Public Law 103-272).
Administrative Cost. Administrative costs are costs incurred in support of the general management and administration of the project, including all executive, organizational, and clerical costs rather than the specific costs like construction, or manufacturing.

There are two types of Administrative Costs, Direct Administrative Costs and Indirect Administrative Costs. Direct administrative costs can be allowable costs in an AIP project if

1) it can be specifically documented to the project and

2) the ADO has approved the administrative costs in advance of incurring the administrative cost.

2 CFR part 200 (OMB Circular A87, Appendix C ) establishes the procedures for calculating administrative costs. Indirect administrative costs cannot be readily identifiable with a particular project or cost objective. Indirect administrative costs can be allowed only if the ADO has an approved Cost Allocation Plan from the cognizant agency.
ADO. For the purposes of this Handbook, ADO means the local FAA Airports District Office. In regional offices that do not have ADOs, the use of the term ADO refers to the FAA Office of Airports branch within the regional office that deals directly with the sponsors. Where other FAA offices are discussed, those offices will be specifically identified.
Aeronautical Study (Commonly Referred to as an Airspace Study). An aeronautical study is a study conducted to determine the effect a proposal has on the operation of air navigational facilities and on the safe and efficient use of navigable airspace. Aeronautical studies are also used by the FAA Office of Airports to coordinate airport construction projects and changes to Airport Layout Plans (ALPs) with the rest of the FAA.
Air Carrier Airport. Per 49 USC § 47102(1), an air carrier airport is a public airport regularly served by:

An air carrier certificated by the Secretary of Transportation under 49 USC § 41102 of this title (except a charter air carrier);

or At least one air carrier: Operating under an exemption from section 49 USC § 41101(a)(1) that the Secretary grants; and Having at least 2,500 passenger boardings at the airport during the prior calendar year.
Airport. Per 49 USC § 47102(2), an airport is:

a. An area of land or water used or intended to be used for the landing and taking off of aircraft;

b. An appurtenant area used or intended to be used for airport buildings or other airport facilities or rights of way;

c. Airport buildings and facilities located in any of those areas;

Per 49 USC § 47102(2)(B), this specifically includes heliports.
Airport Development. Airport development is a legal definition in 49 USC § 47102(3). This definition contains development projects that are eligible under AIP. This list is extensive and is therefore not duplicated in this table. However, this list is reflected throughout this Handbook (most specifically in Chapter 3 and the associated appendices).
Airport Hazard. Per 49 USC § 47102(4), a structure or object of natural growth located on or near a public-use airport, or a use of land near the airport, that obstructs or otherwise is hazardous to the landing or taking off of aircraft at or from the airport. The FAA Air Traffic Organization (ATO) must make this determination (per the current version of FAA Order JO 7400.2, Procedures for Handling Airspace Matters).
Airport Layout Plan. As of the publication date of this Handbook, Advisory Circular 150/5070-6, Airport Master Plans, defines an airport layout plan set as a set of drawings that provides a graphic representation of the sponsor’s long-term development plan for an airport. This plan must show both existing and proposed airport facilities and all proposed and existing access points used to taxi aircraft across the airport’s property boundary; the approval of which is evidenced by the signature of the FAA Administrator or his duly designated representative.
Airport Master Plan. As of the publication date of this Handbook Advisory Circular 150/5070-6, Airport Master Plans, defines airport master plan as a comprehensive study of the airport and typically describes short-, medium-, and long-term plans for airport development. Master planning studies that address major revisions are commonly referred to as master plans, while those that change only parts of the existing document and require a relatively low level of effort tend to be known as master plan updates.
Airport Planning. Per 49 USC § 47102(5), airport planning means planning as defined by regulations the Secretary prescribes and includes:

Integrated airport system planning.

Developing an environmental management system.

Developing a plan for recycling and minimizing the generation of airport solid waste, consistent with applicable state and local recycling laws, including the cost of a waste audit.
Airport Property Map. An airport property map is a drawing depicting the airport property boundary, land or property interests (including method of acquisition and type of interest), and future proposed land acquisition. The Airport Property Map is required as part of the Airport Layout Plan drawing set if any of the airport land was acquired with federal funds or through an FAA administered land transfer program. An airport property map is not a substitute for an Exhibit A (property inventory map), unless it is prepared in accordance with the Exhibit A requirements in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects.
Airport Purposes. All aviation activities normally found on an airport.
Airport Revenue. The current version of FAA Order 5190.6, Airport Compliance Manual, defines airport revenue. As of the publication date of this Handbook, that definition is as follows: Airport revenue generally includes those revenues paid to or due to the airport sponsor for use of airport property by the aeronautical and nonaeronautical users of the airport. It also includes revenue from the sale of airport property and resources and revenue from state and local taxes on aviation fuel. If this definition is modified in any succeeding version of FAA Order 5190.6, the new definition must be used.
Airside Needs/Development. All development within the areas accessible to aircraft including runways, taxiways, aprons, and aircraft gates and the land adjacent to these facilities required by current FAA standards. This may include airside facilities that are not justified for AIP grant funding.
Allocation. An allocation is the FAA notification to the sponsor of the intent to obligate funds (by issuing a grant). It does not involve a transfer of funds. It is an internal administrative re-delegation of the authority to incur obligations and make expenditures.
Allotments. After the FAA receives an Office of Management and Budget (OMB) apportionment, APP-520 requests the FAA Office of Budget and Performance – Operations and Capital Execution Branch (ABP-410) to make an allotment of funds to regional offices to support previously issued planning figures. Allotments and adjustments to allotments are made throughout the year.
Allowable Cost. The cost of an item or activity that can be funded with AIP per 49 USC § 47110.
Amendments. A formal change to the terms or scope of a grant agreement.
Apportionments. There are two actions referred to as apportionments in AIP. The Act requires an apportionment of funds to be made each fiscal year to sponsors and states based on formulas in the Act. This notifies sponsors and states that these funds are available for eligible work but does not involve any transfer of funds. These funds are referred to interchangeably as state or sponsor apportionments, entitlements, or formula funds. The second type of apportionment is made by the Office of Management and Budget (OMB) to allow the FAA to use congressionally approved AIP funds. The OMB apportionment is formally requested by the FAA, which provides a financial plan for orderly use of the funds. The OMB apportionment may contain restrictions on the use of funds, such as the amount that may be used quarterly.
Appropriation. The appropriation is the annual budget established by Congress each year. Generally speaking, the appropriation allows federal agencies to incur obligations and make payments for specific purposes. AlP gains the ability to incur its obligations through the Contract Authority set in the Authorization. This Contract Authority, however, is subject to the terms set forth in the annual appropriation each year. This means that Congress may use the appropriation to adjust the annual AlP funding level to exceed or reduce the amount of Contract Authority designated for any year.
Authorization. The authorization is commonly referred to as the FAA Bill or Reauthorization and may be passed by Congress for one or more years. The authorization sets yearly limits on the AIP funding levels and gives the FAA contract authority to issue grants.
Automated AIP System. This database integrates the project planning data necessary for the NPIAS Report, the project planning data necessary for the ADOs to create a three year ACIP, and the grant data for all grants issued into one system. This is an internal FAA system. As of the publication of this Handbook, this system is the System of Airport Reporting (SOAR).
Definitions - B
Based Aircraft. Per the FAA report titled General Aviation Airports: A National Asset, dated May 2012, based aircraft are aircraft that are operational and airworthy, and are based at the airport for the majority of the year. Based aircraft are single-engine, multi-engine, jets, and helicopters derived from the FAA Form 5010-1, Airport Master Record (Existing Public Use Airports), Items 90 – 93.
Bathroom or Bathing Facility. A dedicated room for toilet facilities, washing basins, and bathing facilities such as a shower or tub. Restrooms do not provide bathing facilities.
Brooks Act. A federal law (Public Law 92-582, codified at 40 USC § 1101) passed in 1972 that requires the federal government to use qualifications based selection (a special form of competitive negotiations) for obtaining professional services.
Definitions - C
Carryover Entitlements. Entitlements that were provided in a prior fiscal year were not used and remain available for obligation for the original recipient.
Capacity Project. The current version of FAA Order 5100.39, Airports Capital Improvement Plan, defines capacity projects. As of the publication date of this Handbook, that definition is as follows: Development items that improve an airport or system of airports for the primary purpose of accommodating more passengers, cargo, aircraft operations or based aircraft. If this definition is modified in the next version of FAA Order 5100.39, the new definition must be used.

In cases where it is unclear if a project is capacity or standards, the ADO must obtain a joint APP-400 and APP-510 concurrence on whether the project is considered capacity.
Certified Airfield Lighting Equipment. Airfield lighting equipment that has received a third party certification that it meets the requirements in the current version of Advisory Circular 150/5345-53, Airport Lighting Equipment Certification Program, and is in the latest published addendum to Appendix 3 of this advisory circular.
Channeling Act State. Based on individual state law, typically all funds from AIP would be deposited in a state account. State legislative action may be required to release funds to individual airports.
Cognizant Agency. Per 2 CFR §§ 200.18 and 200.19 (OMB Circular A-87, Attachment A, paragraph B.6.), the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals developed under 2 CFR part 200 Subpart E (OMB Circular A-87) on behalf of all Federal agencies.
Commercial Service Airport. Per 49 USC § 47102(7), a commercial service airport means a public airport in a state that the Secretary determines has at least 2,500 passenger boardings each year and is receiving scheduled passenger aircraft service.
Compatible Land Use. Per 14 CFR § 150.7, the use of land that normally compatible with the outdoor noise environment (or an adequately attenuated noise level reduction for any indoor activities involved) at the location because the yearly day-night average sound level is at or below that identified for that or similar use under appendix A (Table 1) of 14 CFR part 150.
Condemnation. The governmental authority to take private property for public use is known as the power of eminent domain, commonly referred as condemnation. Most airport owners have this power which is an inherent power of the local government derived from its sovereignty, as well as a power implied from Article 1, Section 8, and the Tenth Amendment of the Constitution. The property owner’s right to just compensation (fair market value payment) for property taken by condemnation is reserved in the Fifth Amendment to the Constitution.
Congressional Notification. Senate and House members are notified of proposed grants in their states or districts before others are notified. The Talking Points are used to inform Senate and House members about the proposed grant. An allocation is not made until this Congressional release process is completed by OST/FAA headquarters offices. In some cases, certain Senate and House committees are also given advance notification.
Continuing Resolution. This is legislation that allows an agency to continue funding programs, usually at levels equal to the previous year, while Congress continues work towards annual appropriations legislation and is generally of a shorter duration than a fiscal year. Due to the nature of the AIP formulas, the FAA needs to compute the different entitlements and discretionary funding (including set-asides) to match the funding available for each continuing resolution.
Cost Allocation Plan. Sponsors that want to include a portion of their indirect costs in a project must have an approved Cost Allocation Plan. The Cost Allocation Plan must be prepared according to the requirements of OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments (2 CFR 200 Subpart E, Cost Principles). It is the formal means by which a sponsor identifies indirect costs (i.e., overhead) and assigns them to the benefiting departments/funds on a reasonable and consistent basis. The Cost Allocation Plan must be approved by the cognizant agency of the federal government. The approved indirect costs can only be applied to the sponsor’s employee’s salaries and wages, and cannot be applied to pass-through costs in the grant such as construction costs, consultant contracts, and equipment costs; or to other non-salary and wages costs.
Cost Analysis. A cost analysis is the evaluation of individual elements of a project, such as labor or materials that make up the total price, to determine if the elements are allowable, directly related to the project, and reasonable.
Critical Aircraft. The critical aircraft is the most demanding airplane which is currently, or is planned to use a runway, taxiway, apron or other aeronautical facility on a regular basis. The weight, wingspan, performance characteristics of the airplane impact the design of the facility. APP-400 maintains guidance on how to determine the critical aircraft for specific projects and airport types.
Definitions - D
DELPHI. The Department of Transportation’s official accounting system of record. Each sponsor with a grant must have a designated user of the system in order to receive reimbursements on their grants. A grant cannot be issued until the sponsor has an account in the DELPHI system.
Design Standards. The engineering, design, and construction standards for various airport-related equipment, facilities, and structures defined by the FAA via the Advisory Circulars.
Design-Build Contracting. Per 49 USC § 47142, design-build contracting is defined as an agreement that provides for both design and construction of a project by a contractor.
Direct Cost. A direct cost is a cost that is only attributable to the work being performed. The payments for construction contract work for the project, contract design services of a design firm and contract planning services under a planning project are examples of direct costs. Project administrative costs are also considered direct costs (such as legal review, contract administration and oversight activities being performed specifically for the project) if the basis for the cost is easily identifiable through methods such as time cards used in cost accounting or other methods of capturing actual direct costs. Further information on direct cost can be found in 2 CFR § 200.413 (Attachment A, Section E of OMB Circular A87, Cost Principles for State, Local, and Indian Tribal Governments).
Discretionary Funds. Discretionary funds are funds remaining within the obligation limitation after the entitlements are calculated. These funds, subject to certain restrictions in legislation, are available for distribution at the discretion of the FAA. The discretionary funds are not required to be distributed to specific states and sponsors. 49 USC § 47115 and 49 USC § 47117 provide statutory set-asides and minimum funding for noise, military, capacity, safety and security.
Drawdown. A series of payments made during a project reflecting the progress that is being made on the project.
Definitions - E
Earmark. A legislative provision that directs funds to be spent on specific projects. Note that these projects must still be eligible and justified before the ADO can approve funding.
Easement. Per Black’s Law Dictionary (9th ed. 2009), an interest in land owned by another person, consisting in the right to use or control the land, or an area above or below it, for a specific limited purpose (such as to cross it for access to a public road).

See Paragraph 2-15 in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement (AIP) Assisted Projects, for description of typical avigation easement rights.
Enplanement. Revenue passenger boardings at airports (including heliport or seaplane base) that receive scheduled or nonscheduled passenger service. The definition also includes passengers who continue on an aircraft in international flight that stops at an airport in any of the 50 states for a non-traffic purpose, such as refueling or aircraft maintenance rather than passenger activity.
Exclusionary Practices. Exclusionary practices are designed to eliminate rivals, enabling the surviving firm to reap the benefit of less competition. Exclusionary practices are prohibited on AIP projects and the costs associated with exclusionary practices are not allowable.
Exclusive Use (of an area such as a taxiway, apron, or hangar). Per the current version of Advisory Circular 150/5190-6, Exclusive Rights at Federally Obligated Airports, [an area] that by express agreement, from the imposition of unreasonable standards or requirements, or by any other means excludes others from using the area. A taxiway that leads only to a single hangar is an exclusive use taxiway. If this definition is modified in a succeeding version of the advisory circular, the new definition must be used.
Exclusive Right. Per the current version of Advisory Circular 150/5190-6, Exclusive Rights at Federally Obligated Airports, a power, privilege, or other right excluding or debarring another from enjoying or exercising a like power, privilege, or right. An exclusive right can be conferred either by express agreement, by the imposition of unreasonable standards or requirements, or by any other means. Such a right conferred on one or more parties, but excluding others from enjoying or exercising a similar right or rights, would be an exclusive right. If this definition is modified in a succeeding version of the advisory circular, the new definition must be used.
Exhibit A. A detailed airport property inventory map that is prepared in accordance with the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects. Note that this is a more detailed drawing than the airport property map that is sometimes required in the airport layout plan drawing set, and an Exhibit A can be substituted for an airport property inventory map.
Definitions - F
Fair Market Value. Per 44 CFR § 79.2, the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal. Different variations may apply when purchasing personal property.
Fee Simple. Per Black’s Law Dictionary (9th ed. 2009), an interest in land that, being the broadest property interest allowed by law, endures until the current holder dies without heirs.
Future Development. Development of a facility more than five years from the date of the approval of the ALP or the land acquisition. For the ALP, future development is shown in 5, 10, and 15 year time frames.
Definitions - G
General Aviation Airport. Per 49 USC § 47102(8) a public airport that is located in a state that, as determined by the Secretary:

Does not have scheduled service; or

Has scheduled service with less than 2,500 passenger boardings each year.
Grant Agreement. Under 31 USC § 6304 and § 6305 (Federal Grant and Cooperative Agreement Act of 1977), a grant is a legal instrument used by a federal agency to provide aid to carry out a public purpose as authorized by a United States law.
Grant Assurances. The obligations airport owners, planning agencies, or other organizations undertake when they accept funds from FAA-administered airport financial assistance programs. These obligations require the recipients to maintain and operate their facilities safely and efficiently and in accordance with specified conditions. The assurances appear either in the application for federal assistance and become part of the final grant offer or in restrictive covenants to property deeds. The duration of these obligations depends on the type of recipient, the useful life of the facility being developed, and other conditions stipulated in the assurances.
Grantee. Many of the federal documents referenced in the Handbook use the term grantee. For purposes of this Handbook, it is the same as sponsor.
Definitions - H
Handbook. The current version of FAA Order 5100-38, Airport Improvement Program.
Hangar. A hangar is a facility for the storage of aircraft (self-maintenance is allowed as defined in the current version of FAA Order 5190-6, FAA Airport Compliance Manual). Throughout this document, the term hangar applies only to aircraft storage facilities. This differs from a fixed based operator building or aircraft maintenance facility, both of which have revenue generating maintenance activities.
Hub Airport. 49 USC § 47102 defines hub airports as commercial service airports meeting the following criteria.

Large hub airports enplane at least 1% of the national annual passenger boardings per 49 USC § 47102(11).

Medium hub airports enplane at least 0.25% but less than 1% of the national annual passenger boardings per 49 USC § 47102(13).

Small hub airports enplane at least 0.05% but less than 0.25% of the national annual passenger boardings per 49 USC § 47102(25).

Non hub airports enplane less than 0.05% of the national annual passenger boardings per 49 USC § 47102(14).
Definitions - I
Incurred Cost. An expense that has been incurred during the course of business, and is a liability until it is paid.
Indian tribe. Per 25 U.S.C. 479a, the term “Indian Tribe” means any Indian or Alaska Native tribe, band, nation, pueblo, village, or community that the Secretary of the Interior acknowledges to exist as an Indian tribe. Pursuant to the Federally Recognized Indian Tribe List Act of 1994, the Secretary of the Interior publishes a list of federally acknowledged tribes.
Indirect Cost. Indirect costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective. For a public agency, indirect costs may include the costs of utilities or rent that are allocated to different departments of the agency.
Indirect Cost Allocation Plan. See Cost Allocation Plan.
Insular Areas. The Insular Areas of the United States includes American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the United States Virgin Islands.
Definitions - J
Joint Use Airport. Per 49 USC § 47175(7), an airport owned by the Department of Defense, at which both military and civilian aircraft make shared use of the airfield.
Definitions - L
Landside Needs/Development. All development on airport property that does not meet the definition of airside needs/development.
Large hub airport. Per 49 USC § 47102(11), a commercial service airport that enplanes at least 1% of the national annual passenger boardings.
Letter of Intent. A formal document issued by the FAA that states an intention to provide future funding.
Definitions - M
Maintenance. A comprehensive definition, including the differentiation between maintenance, rehabilitation, reconstruction, and replacement and examples are provided in Paragraph 3-6.
Medium hub airport. Per 49 USC § 47102(13), a commercial service airport that enplanes at least 0.25% but less than 1% of the national annual passenger boardings.
Metropolitan Area. Per OMB Bulletin 06-01 Corrected, Update of Statistical Area Definitions and Guidance on Their Uses, the Office of Management and Budget (OMB) defines metropolitan areas . The OMB published the Standards for Defining Metropolitan and Micropolitan Statistical Areas in a 65 Federal Register 82228 (December 27, 2000). Metropolitan areas comprise metropolitan statistical areas (MSAs), consolidated metropolitan statistical areas (CMSAs), and primary metropolitan statistical areas (PMSAs). These areas are defined in terms of entire counties, except in the six New England States where they are defined in terms of cities and towns. New England county metropolitan areas (NECMAs) are an alternative set of county-based areas defined for New England States.
Metropolitan Planning Agency. An organization whose is purpose is to ensure that government funding for transportation projects within a metropolitan area is based on continuing, cooperative, and comprehensive planning. Typical metropolitan planning agencies include metropolitan planning organizations (MPOs), councils of government, and regional planning commissions.
Modification to Standards. Any FAA approved change to FAA standards (other than dimensional standards for runway safety areas) applicable to an airport design, construction, or equipment procurement project.
Definitions - N
NAVAID. An acronym for navigation aid. From the FAA Pilot/Controller Glossary, a navigational aid is any visual or electronic device airborne or on the surface which provides point-to-point guidance information or position data to aircraft in flight.
Near-Term Development. Per the current version of Advisory Circular 150/5070-6, Airport Master Plans, within the next five years.
Noncompatible Land Use. Per 14 CFR § 150.7, the use of land that normally not compatible with the outdoor noise environment (or an adequately attenuated noise level reduction for any indoor activities involved) at the location because the yearly day-night average sound level is at or below that identified for that or similar use under appendix A (Table 1) of 14 CFR part 150.
Nonhub Airport. Per 49 USC § 47102(14), a commercial service airport that enplanes less than 0.05% of the national annual passenger boardings.
Non-Federal Entity. Per 2 CFR § 200.69, a state, local government, Indian tribe, institution of higher education (IHE), or nonprofit organization that carries out a Federal award as a recipient or subrecipient. These were previously referred to as grantees and subgrantees
Non-Primary Airport. An airport that is not a primary airport as defined under 49 USC § 47102(16). In other words, an airport that has 10,000 or less passenger enplanements each year.
Definitions - O
Obligations. The execution (signing) of a grant agreement with a sponsor constitutes an obligation of the federal government to eventually pay the amount specified in the grant. Obligations of funds are processed through the FAA Office of Finance and Management, FAA Accounts Payable Section B (AMK-314) in two steps: a reservation of funds is made before the grant is signed, and an obligation is reported when the grant is signed. Total obligations for a year may never exceed the total of funds allotted to a regional office. There are gross and net obligations. Gross obligations are the total obligations of all types of funds (including recovered funds) without deducting funds recovered from old obligations. Net obligations are total obligations (including obligations of recovered funds) minus total funds recovered during the year.
Office of Management and Budget (OMB). The federal agency responsible for providing fiscal accounting and budgeting services for the federal government.
Order. Per the current version of FAA Order 1320.1, FAA Directives Management, directives are the primary means within the FAA to issue, establish, and describe agency policies, organization, responsibilities, methods, and procedures. Orders are permanent directives and stay in effect until canceled.

Note: Although the AIP Handbook is published as an FAA order, it provides program requirements to airports, consultants and all involved with AIP.
OST Release Date. The DOT Office of the Secretary (OST) release date is the date that the Congressional notification process is completed.
Overall Development Objective (ODO). The ODO is found in the current version of FAA Order 5100.39, Airport Capital Development Plan. The intent of the ODO is to recognize that many airport projects require several different projects in order to complete the overall objective. For example, a new runway project may require land acquisition, obstruction clearing and runway construction. Through the use of the ODO, the costs and effort involved with the land acquisition and obstruction clearing is captured as part of the new runway project.
Definitions - P
Passenger Boardings. Per 49 USC § 47102(15), unless the context indicates otherwise, revenue passenger boardings in the United States in the prior calendar year on an aircraft in service in air commerce, as the Secretary determines under regulations the Secretary prescribes. This includes passengers who continue on an aircraft in international flight that stops at an airport in the 48 contiguous states, Alaska, or Hawaii for a nontraffic purpose.

Note that revenue passenger is further defined in Section 3 of 14 CFR part 241, Uniform System of Accounts and Reports of Large Certificated Air Carriers.
Passenger Facility Charge. A charge approved by the FAA which is imposed by a public agency on eligible revenue passengers enplaned at a commercial service airport it controls. Public agencies may use PFC revenue to finance FAA-approved projects that meet the requirements of 49 USC § 40117.

Note that revenue passenger is further defined in Section 3 of 14 CFR part 241, Uniform System of Accounts and Reports of Large Certificated Air Carriers.
Permissive Statute. Per Black’s Law Dictionary (9th edition 2009), a statute that allows certain acts but does not command them.
Precision Approach Procedure. From the FAA Pilot/Controller Glossary, a Precision Approach Procedures is a standard instrument approach procedure in which an electronic glide slope/glide path is provided, e.g., ILS (Instrument Landing System), MLS (Microwave Landing System), and PAR (Precision Approach Radar)
Price Analysis. A price analysis is a process analyzing a proposed total price without evaluating separate cost elements (including profit). The purpose is solely to ensure that a total price is fair and reasonable.
Primary Airport. Per 49 USC § 47102(16), primary airport means a commercial service airport the Secretary determines to have more than 10,000 passenger boardings each year.
Program Income or Program Revenue. Per 2 CFR § 200.80, gross income received by the recipient or subrecipient directly generated by a grant supported activity, or earned only as a result of the grant agreement during the grant period. “During the grant period” is the time between the effective date of the award and the ending date of the award reflected in the final financial report. To be considered program income, the sponsor must receive the income.
Programming. The FAA process of moving a proposed grant through all of the appropriate levels of review required prior to reserving funds for that grant.
Project. For the purposes of this Handbook, an item of work such as a runway extension or apron rehabilitation. Separate projects can be included in one grant application.
Project cost. A cost involved in carrying out a project.
Public Agency. Per 49 USC § 47102(20), any one of the following:

A state or political subdivision of a state (this includes state agencies, cities, and other municipalities).

A tax-supported organization.

An Indian tribe or pueblo.

Except an Indian tribe or pueblo, a public agency requires specific state-enabling legislation that authorizes the agency and defines the responsibilities of the agency.
Public Airport. Per 49 USC § 47102(21), an airport used or intended to be used for public purposes that meet the following two criteria:

The airport is under the control of a public agency.

The area used or intended to be used for the landing, taking off, or surface maneuvering of aircraft is publicly owned.
Public-Use Airport. Per 49 USC § 47102(22), a public-use airport is:

A public airport; or

A privately-owned airport used or intended to be used for public purposes that is:

A reliever airport; or

Determined by the Secretary to have at least 2,500 passenger boardings each year and to receive scheduled passenger aircraft service.
Definitions - R
Reconstruction. A comprehensive definition, including the differentiation between maintenance, rehabilitation, reconstruction, and replacement and examples are provided in Paragraph 3-6.
Recoveries. As adjustments are made to grant amounts based on actual payments, funds may be recovered (deobligated) from existing obligations and reobligated for upward adjustments to existing projects and under certain circumstances may be reobligated for new projects. The amount of recoveries that may be reobligated is controlled by OMB and is communicated to regional offices in the allotment process as a recovery ceiling.
Rehabilitation. A comprehensive definition, including the differentiation between maintenance, rehabilitation, reconstruction, and replacement and examples are provided in Paragraph 3-6.
Regularly Scheduled Commercial Service. A 14 CFR part 121, 14 CFR part 129, or 14 CFR part 135 certificated air carrier operating on a published schedule and reporting scheduled commercial activity.
Reliever Airport. Per 49 USC § 47102(23), a reliever airport is an airport the Secretary designates to relieve congestion at a commercial service airport and to provide more general aviation access to the overall community.
Replacement. A comprehensive definition, including the differentiation between maintenance, rehabilitation, reconstruction, and replacement and examples are provided in Paragraph 3-6.
Restrooms. A dedicated room for toilet and wash basin facilities. Restrooms do not include bathing facilities such as a shower or tub (these are considered a bathroom or bathing facility).
Retainage. The money earned by a contractor but not paid to the contractor until the completion of construction or another predetermined date. The retainage is held back as assurance for the quality of the contractor’s work. Per 2 CFR § 200.305(b), the ADO must not make payments to sponsors for amounts that the sponsor has retained or withheld from the contractor. 49 CFR § 26.29 requires that the retainage that is held for subcontracts must match or must not exceed the level of retainage held back from the contractor by the sponsor. (Although 49 CFR § 26.29 is the regulation for Disadvantaged Business Enterprises (DBE) in Department of Transportation Federal assistance programs, the requirements for prompt payment apply to payment to all contractors and subcontractors, and are not limited to DBE only.)
Revenue Producing Aeronautical Support Facilities. Per 49 USC § 47102(24), fuel farms, hangar buildings, self-service credit card aeronautical fueling systems, air plane wash racks, major rehabilitation of a hangar owned by a sponsor, or other aeronautical support facilities that the Secretary determines will increase the revenue producing ability of the airport.
Runway Protection Zone (RPZ). Per the current version of Advisory Circular 150/5300-13, Airport Design, area at ground level prior to the threshold or beyond the runway end to enhance the safety and protection of people and property on the ground. This advisory circular defines RPZ requirements.
Definitions - S
Safety/Security Equipment. Per 49 USC § 47102(3)(B)(ii), equipment, including explosive detection devices, universal access systems, and emergency call boxes, the Secretary requires by regulation for, or approves as contributing significantly to, the safety or security of individuals and property at the airport and integrated in-pavement lighting systems for runways and taxiways and other runway and taxiway incursion prevention devices.
Secretary. For the purposes of this Handbook, Secretary refers to the Secretary of the Department of Transportation. For some limited instances, Secretary may mean the Secretary of Homeland Security.
Sensitivity Analysis. For the purposes of Letter of Intent reviews, and as originally published in PGL 0703, a sensitivity analysis is an analysis of the net impact of potential changes in key independent variables. For example, sensitivity analyses typically conducted on capital cost estimates may involve calculating the overall cost impact of an additional half-percentage point of annual cost escalation—e.g., the difference between 3.0% versus 3.5%—or the effect of a one-year delay in the overall construction schedule.
Set-Aside Funding. The AIP funding structure contains certain funding percentages or amounts that represent a minimum requirement for dedicated AIP funding. These set-asides include money for noise compatibility planning and projects, Military Airport Program participants, certain reliever airports and projects for capacity, safety, and security and noise projects at primary and reliever airports. Since these set-asides represent a minimum annual amount, the FAA calculates these categories after the apportionment of entitlement funding (which represent specific amounts). Funding remaining after entitlement funding and set-asides is referred to as remaining or pure discretionary.
Simplified Acquisition Threshold. Per 2 CFR 200.88, the dollar amount below which a non-Federal entity may purchase property or services using small purchase methods. The simplified acquisition threshold is set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and in accordance with 41 USC § 1908. This threshold is periodically adjusted for inflation. The current threshold amount can be found in Table U-7.
Small hub airport. Per 49 USC § 47102(25), a commercial service airport that enplanes at least 0.05% but less than 0.25% of the national annual passenger boardings.
Sponsor. A sponsor is defined in 49 USC § 47102(26) as:

A public agency that submits to the Secretary under this subchapter an application for financial assistance; and

A private owner of a public-use airport that submits to the Secretary under this subchapter an application for financial assistance for the airport.
Standards Projects. The current version of FAA Order 5100.39, Airports Capital Improvement Plan defines standards projects. As of the publication date of this Handbook, that definition is as follows: Projects to bring an airport up to standards recommended by the FAA based on the current design category of the airport. If this definition is modified in the next version of FAA Order 5100.39, the new definition must be used.

In cases where it is unclear if a project is capacity or standards, the ADO must obtain a joint APP-400 and APP-510 concurrence on whether the project is considered capacity.
State. Per 49 USC § 47102(27), a state, for the purposes of this Handbook, is defined as a state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Trust Territory of the Pacific Islands (Republic of the Marshall Islands, the Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, the Republic of Palau).
State Planning Agency. A state organization whose purpose is to ensure that government funding for transportation projects within a state is based on continuing, cooperative, and comprehensive planning. Typical state planning agencies include, but are not limited to, planning offices, aeronautics commissions, and departments of transportation.
Subgrant. Typically under AIP, the subgrant is the award of federal funds to a subrecipient.
Subrecipient. Per 2 CFR § 200.93 (OMB Circular A-133, Subpart A), a non-Federal entity that expends Federal awards received from a pass-through entity to carry out a Federal program, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency. Typically under AIP grants, the subrecipient is the airport receiving a grant from a state in a block grant state.
Substantial Completion. Substantial completion is generally a defined term in a contract and is the stage of the project when work is sufficiently complete in accordance with the contract documents so that the sponsor can occupy or use the project for its intended purpose. The substantial completion date typically triggers: retainage release; the warranty period; determination of any actual or liquidated damages; the start of the statute of limitations; and related actions.
Definitions - T
Terminal Development. Per 49 USC § 47102(28), terminal development includes:

An airport passenger terminal building, including terminal gates.

Access roads servicing exclusively airport traffic that leads directly to or from an airport passenger terminal building. (Note that per FAA policy, the boundaries of this road are the first road or driveway in either direction from the terminal.)

Note that an on-airport road (or the portion of a road) that does not go directly to or from a passenger terminal building is considered access road rather than terminal development.

Walkways that lead directly to or from an airport passenger terminal building.

Vehicles to move passengers between terminal facilities and between terminal facilities and aircraft per 49 USC § 47119(a)(1)(B).
Through-The-Fence Operation. A through-the-fence operation consists of an individual or company who owns property with aircraft storage facilities near an airport accessing the airfield of the airport with aircraft from off-airport property.
Turbojet Aircraft. For purposes of this Handbook, includes aircraft that have jet engines.
Definitions - U
Unallowable Cost. The cost of an item or activity that is not allowed to be funded with AIP, either by FAA policy, published cost standards, or legal prohibition.
Uneconomic Remnant. A parcel of real property in which the owner is left with an interest after the partial acquisition of the owner’s property, and which the sponsor has determined has little or no value or utility to the owner. This is a parcel in addition to the property needed. Uneconomic remnants may be incorporated into airport property as feasible, or disposed.
Usable Unit of Work. A completed project that will result in an increase in safety, usefulness, or usability at the airport. For the purposes of AIP grants, a usable unit of work can be obtained over one or more grants, provided the end result is a usable unit of work. This also requires a special condition in the grant requiring the sponsor to complete the work regardless of whether the associated future grants are issued. The automated AIP system contains the current available special conditions.
Used or Intended to be Used. Used means currently in use. Per FAA policy, intended to be used means that the use will be realized within the next three to five years.
Useful Life. Useful life is the period during which an asset or property is expected to be usable for the purpose it was acquired. It may or may not correspond with the item’s actual physical life or economic life.
Definitions - W
Wide Area Augmentation System (WAAS). Wide Area Augmentation System (WAAS). WAAS provides improved navigation accuracy, availability, integrity, and continuity for aircraft navigation during departure, en route, arrival, and approach operations including no precision approaches and approach procedures with vertical guidance. Without WAAS, aircraft using GPS navigation equipment under instrument flight rules (IFR) must be equipped with an approved and operational alternate means of navigation appropriate for the flight. WAAS corrects for GPS signal errors caused by ionospheric disturbances, timing, and satellite orbit errors, and it provides vital integrity information regarding the health of each GPS satellite.

Appendix B. References and Web Links

B-1. References and Web Links.

Table B-1 contains a list of the references included in this Handbook. Web links are provided in this list (they are not given again in the Handbook) and were current on the Handbook publication date. The versions for specific documents are not given – the current version must be used. Also, where possible, website links do not link directly to documents because these types of links tend to break often. Instead, they link to source web pages to ensure links stay current (and for some documents this is required by FAA Web policy).

Table B-1 References and Web Links
Web links to references in this Handbook include…
AIP Forms This website provides all available forms for AIP as well as other FAA Office of Airports functions.

https://www.faa.gov/airports/resources/forms/
AIP Grant Assurances

The grant assurances are the obligations associated with a grant that require the sponsors to maintain and operate their facilities safely and efficiently and in accordance with specified conditions. Many of the assurances are based on 49 USC § § 47105, 47106 and 47107.

https://www.faa.gov/airports/aip/grant_assurances/
AIP Grant Histories

This website provides AIP grant histories for all airports included in the National Plan of Integrated Airport Systems (NPIAS).

https://www.faa.gov/airports/aip/grant_histories/
AIP Grant Payments

This website provides information on how to use the current DOT electronic payment system.

https://www.faa.gov/airports/aip/grant_payments/
AIP Letter of Intent History

This document contains the annual payments for all open and closed Letter of Intents (LOIs).

https://www.faa.gov/airports/aip/loi/
AIP Program Guidance Letters (PGLs)


Program guidance letters are interim guidance issued about AIP. A PGL is a change to the Handbook.

https://www.faa.gov/airports/aip/guidance_letters
AIP Program Information Memorandums (PIMs)

Program Information Memorandums are interim guidance that does not change the content of the AIP Handbook, but provides additional clarifying information.

https://www.faa.gov/airports/aip/guidance_letters
Airport Business Practices and Their Impact on Airline Competition

This document discusses the reduction and/or elimination of airline entry barriers to an airport.

https://www.faa.gov/airports/planning_capacity/
Airport Improvement Program (AIP) Grant Oversight Risk Model Policy

This policy outlines the FAA Office of Airports risk-based approach to grant oversight.

https://www.faa.gov/airports/aip/
Airport Improvement Program Handbook

This order provides guidance to FAA staff about the administration of the Airport Improvement Program.

https://www.faa.gov/airports/aip/aip_handbook/
AJW-144 Weather Processors and Sensors – Non-Federal AWOS

This website describes the requirements for design, installation, commissioning and maintenance of a non-federal AWOS.

https://www.faa.gov/about/office_org/headquarters_offices/ato/service_units/techops/safety_ops_support/n onfedawos/
ASMB C-10 Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect Cost Rates for Agreements with the Federal Government

The United States Department of Health and Human Services issued this guidance on cost allocation plans and indirect cost rate agreements.

Indirect Cost Rate – Requirements of OMB’s Supercircular (2 C.F.R. Part 200)
Bulletin 05-02, Update of Statistical Area Definitions and Guidance on Their Uses

This Office of Management and Budget (OMB) publication defines the term metropolitan area.

https://obamawhitehouse.archives.gov/omb/bulletins_fy05_b05-02
Buy American Product Content Percentage Worksheet

Worksheet to calculate Buy American percentages for AIP funded projects.

https://www.faa.gov/airports/aip/buy_american/
Buy American Product Final Assembly Questionnaire

Questionnaire to provide information to determine if the Buy American product final assembly requirements have been met.

https://www.faa.gov/airports/aip/buy_american/
Code of Federal Regulations (CFR)

https://www.govinfo.gov/app/collection/cfr
Contract Provision Guidelines for Obligated Sponsors and Airport Improvement Program Projects

This document provides a consolidated listing of required clauses and provision for AIP projects and obligated sponsors.

https://www.faa.gov/airports/aip/procurement/federal_contract_provisions/
Crosswalk between 2 CFR part 200 and Previous OMB Circulars

This site contains crosswalks between OMB Circulars A-102 (administrative); OMB Circulars A-87 (cost principles); and OMB Circulars A-89 and A-133 (audit requirements) and 2 CFR part 200.

https://www.cfo.gov
Current FAA Advisory Circulars Required for Use in AIP Funded and PFC Approved Projects

This is the list of advisory circulars that must be used on AIP and PFC funded projects. Other advisory circulars that are specific to the project may also be needed. The list is kept up-to-date by AAS-100.

https://www.faa.gov/airports/aip/
Department of Defense Contract Pricing Reference Guides

This document provides guidance to sponsor’s preparing cost or price analyses.

https://www.dau.edu/tools/p/cprg
Department of Transportation (DOT) Office of Inspector General (OIG) Hotline

This website allows OIG to receive allegations of fraud, waste, abuse, or mismanagement of AIP funds.

https://www.oig.dot.gov/hotline
Department of Transportation (DOT) Order 4200.5 Suspension and Debarment, and Ineligibility Procedures

This order outlines the requirements for suspending and debarring persons and companies from federally funded projects (including those funded by AIP).

https://www.transportation.gov/assistant-secretary-administration/procurement/suspension-and-debarment
Establishment and Discontinuance Criteria for Automated Weather Observing Systems FAA Report APO-83-6

This report provides benefit-cost analysis requirements for automated weather observing systems (AWOS) for publication in the current version of FAA Order 7031.2, Airway Planning Standard Number One.

http://trid.trb.org/view.aspx?id=933426
FAA Advisory Circulars (ACs) – Series 150 for Airport Projects

https://www.faa.gov/airports/resources/advisory_circulars/
FAA Airport Benefit-Cost Analysis Guidance

This document provides guidance to sponsors on benefit-cost analysis (BCA) for capacity projects.

https://www.faa.gov/airports/aip/bc_analysis/
FAA CertAlerts

https://www.faa.gov/airports/airport_safety/certalerts/
FAA Office of Airports Website

This website contains many references, forms, guidance, and other information needed for AIP projects.

https://www.faa.gov/airports/
FAA Office of Airports Standard Operating Procedures

This website contains standard operating procedures for various FAA Office of Airports functions.

https://www.faa.gov/airports/resources/sops/
FAA Orders

https://www.faa.gov/regulations_policies/orders_notices/
Federal Accounting Standard Advisory Board (FASAB) Standards

Statement of Accounting Standards No. 27, Identifying and Reporting Earmarked Funds, explains how earmarked funds are financed by specifically identified revenues. This document details the reporting requirements for these projects.

https://fasab.gov/accounting-standards/archived-versions/2004-pronouncements-as-amended
Federal Contract Tower Minimum Equipment List

The list is included in FAA Order JO 7210.54, FAA Contract Tower (FCT) Operation and Administration and lists the eligible equipment at contract towers.

https://www.faa.gov/regulations_policies/orders_notices/
Federal Emergency Management Agency (FEMA) Flood Maps

This website provides flood maps for federal agencies to determine if a sponsor requires flood insurance for certain projects prior to receiving a grant.

https://www.fema.gov/flood-maps
Federal Funding Accountability and Transparency Act of 2006 (FFATA)

This act (Public Law 109-282) outlines the subgrant reporting requirements for block grant states.

https://www.fsrs.gov
Federal Register Notices

https://www.archives.gov/federal-register/
FHWA Construction Program Guide (Suspension/Debarment)

This website provides links to references on suspension and debarment.

https://www.fhwa.dot.gov/construction/cqit/suspensi.cfm
Final Report – Life Cycle Cost Analysis for Airfield Pavements (AAPTP 06-06)

This Federal Highway Administration document provides a good primer for sponsors who would like to learn about life-cycle cost analysis.

http://www.eng.auburn.edu/research/centers/ncat/info-pubs/aaptp/index.html
Financial Assistance Guidance Manual

This guidance manual replaces DOT Order 4600.17A, Financial Assistance Management Requirements, and outlines the requirements for administering AIP and prescribes the procedures for implementing laws, regulations, executive orders, and Office of Management and Budget (OMB) circulars, providing guidance for the administration of DOT financial assistance programs.

https://www.transportation.gov/mission/administrations/administration/senior-procurement-executive/financial-assistance-policy
Government Accountability Office’s (GAO) Principles of Federal Appropriations Law (Red Book)

This publication is a multi-volume publication that discusses federal fiscal law requirements and legal decisions.

https://www.gao.gov/legal/appropriations-law/red-book
GSAXcess

This is the website for the Federal Excess Personal Property Utilization Program. Sponsors can go to this site to find free used equipment for their airport.

http://gsaxcess.gov
Highlights of Reported Actions to Reduce Barriers to Entry and Enhance Competitive Access

This document summarizes reported actions taken by covered airports to reduce barriers to entry and enhance competitive access. Not currently available on the FAA Office of Airports website (contact APP-510 for a copy).
Life-Cycle Cost Analysis Primer

This Federal Highway Administration document provides a good primer for sponsors who would like to learn about life-cycle cost analysis.

https://www.fhwa.dot.gov/infrastructure/asstmgmt/lcca.cfm
National Fire Protection Association (NFPA) 1971 Standard on Protective Ensembles for Structural Fire Fighting and Proximity Fire Fighting

This document provides minimum levels of protection during structural and proximity firefighting operations.

http://www.nfpa.org/codes-and-standards/all-codes-and-standards/list-of-codes-and-standards/detail?code=1971
Noise Land Management and Requirements for Disposal of Noise Land or Development Land Funded with AIP

This document provides guidance on FAA and sponsor requirements regarding the management of noise and AIP funded land.

https://www.faa.gov/airports/environmental/policy_guidance/
Office of Management and Budget (OMB) Circulars

https://www.whitehouse.gov/omb/information-for-agencies/circulars/
Office of Management and Budget (OMB) State Point of Contact Information for Intergovernmental Review

This website provides the contact information that the sponsor must use when a project is required to go through the intergovernmental review process.

https://obamawhitehouse.archives.gov/omb/grants_spoc
Pilot Program for Redevelopment of Airport Properties (Acquired Noise Land)

Guidance for the FAA pilot program to fund activities related to the compatible redevelopment of airport properties purchased for airport noise compatibility with AIP and PFC funds.

https://www.faa.gov/airports/aip/guidance_letters/historical_guidance_letters/ (See PGL 13-04)
Procurement and Contracting under AIP – Federal Contract Provisions

This webpage provide links to all of the required federal contract provisions by contract type.

https://www.faa.gov/airports/aip/procurement/federal_contract_provisions/
Public Laws

https://www.congress.gov/
Quick Guide to Cost and Price Analysis for HUD Grantees and Funding Recipients United States Department of Housing and Urban Development

This document provides guidance to sponsor’s preparing cost or price analyses.

https://www.hud.gov/program_offices/cpo/grantees/cstprice
Suggestions for the Detection and Prevention of Construction Contract Bid Rigging

This paper discusses bid improprieties and how to detect them.

https://www.fhwa.dot.gov/programadmin/contracts/dotjbid.cfm
System for Award Management (SAM)

This website contains a list of suspended and debarred persons and companies that have been excluded from doing business with the federal government.

https://sam.gov/content/home
Uniform Appraisal Standards for Federal Land Acquisition

This document is for use by appraisers to promote uniformity in appraising federally funded land acquisition.

http://www.justice.gov/enrd/appraisal-unit
United States Code (USC)

The United States Code is a consolidation and codification by subject matter of the general and permanent laws of the United States. It is prepared by the Office of the Law Revision Counsel of the United States House of Representatives.

https://uscode.house.gov/
US Army Corps of Engineers Engineer Pamphlet (EP) 1110-1-8 Construction Equipment Ownership and Operating Expense Schedule
This document provides the method for a sponsor to determine the hourly rate they can claim for construction equipment used in force account work.
https://www.publications.usace.army.mil/USACE-Publications/Engineer-Pamphlets
Voluntary Airport Low Emission Program (VALE) Technical Report

This report presents information on the application process, project eligibility, vehicle low emission standards, and how to calculate project emission reductions, cost-effectiveness, and credits.

https://www.faa.gov/airports/environmental/vale
Zero Emissions Vehicle and Infrastructure Pilot Program Technical Guidance

This guidance provides details on eligibility for zero emissions vehicles and associated infrastructure, allowable vehicle use, eligible airports, grant limitations, and the application process.

https://www.faa.gov/airports/environmental/zero_emissions_vehicles/

Appendix C. Prohibited Projects and Unallowable Costs

C-1. Examples of General Prohibited Projects/Costs (for All Types of Projects).

The list in Table C-1 is not comprehensive. Instead, it contains examples of projects or costs specifically prohibited in the Act or whose eligibility is frequently questioned. Unless a specific reference to the Act is cited, these prohibitions are FAA policy.

Table C-1 Examples of General Prohibited Projects/Costs for All Project Types
Examples include, but are not limited to…
(1) ACIP Update as Project Formulation. Updates to an airport’s capital improvement plan as part of the project formulation costs. Updates to an airport’s capital improvement plan are only eligible if warranted as part of a master plan study or update grant.
(2) Administrative Costs as a Percent of the Grant Amount. Administrative costs must be based on work that is necessary for carrying out the project.
(3) Administrative Costs for AIP Program Management. Because AIP funds can only be used for costs to carry out a specific AIP project, program administrative costs incurred by the sponsor for managing the grant program are not allowable.
(4) Airfield Operations and Maintenance Costs.
(5) Approach Procedures – Design of, Costs associated with establishing. In general, AIP cannot be used to design new approach procedures or to fund the costs associated with establishing a new procedure except in very limited circumstances that are allowed under the Act.
(6) Budget Augmentation. Combining funds between different federal programs if not specifically allowed as discussed in Paragraph 4-13.
(7) Catering. Including at public meetings or other events for an AIP project.
(8) Computer Software (Including Common Use Gate Software). Software that does not meet the requirements in Paragraph 3-66.
(9) Conferences, Seminars, and Courses. Tuition, travel, or subsistence for a sponsor’s personnel to attend conferences, seminars, or courses.
(10) Construction on Land Leased from a Private Entity. Projects must be on airport property with good title per Paragraph 3-16. As discussed in Table 2-9, leasing from a private entity does not meet the requirements for good title.
(11) Contingencies or Allowances.
(12) Correcting or Doing Something More than Once – Construction/Equipment/Land. Cost to correct or do something more than once. This is based on the general AIP premise that AIP is intended for something to be done correctly one time. Therefore, costs not required to complete the project are not allowable. This includes restocking charges if a contractor orders too much or an incorrect material and wants to return the materials to the supplier. While the supplier may charge the contractor to restock the materials, the costs of restocking are not required to complete the projects. It also includes costs for replacing defective materials, or items that are warranty issues, and all costs associated with the removal and replacement of pavement or materials that do not meet the FAA specifications.
(13) Correcting or Doing Something More than Once – Design/Planning. Cost for design more than once except as allowed in Paragraph 3-22 for advisory circular changes. Following the premise above, AIP grant funds cannot be used to redesign. The exception is for design omissions that were not negligent and the additional work was necessary and would have been done anyway under a correct set of plans. For example, if a sponsor is given a design-only grant and is delayed in starting the construction, the plans may need to be reviewed and some parts of it redesigned. The costs to redesign or to bring the plans up to date are not allowable costs since AIP paid the first time to correctly design the project.
(14) Costs to Recover Improper Payments. By FAA policy, the costs incurred by a sponsor to recover improper payments are not an allowable cost of an AIP grant project. Although 2 CFR § 200.428 considers costs to recover an improper payment an allowable costs, these costs are not allowable under AIP. This is because AIP grants are project specific and limited by 49 USC § 47110 to only those costs that are reasonable and necessary to carry out the project. The costs to recover improper payments do not meet that statutory requirement.
(15) Decorative Landscaping. This is per 49 USC § 47110(f). Planting can only be funded to the extent that it is a cost associated with an AIP project and required for erosion control, state and/or local construction practices or for noise mitigation. As with any ineligible work, where the sponsor desires to include landscaping for aesthetic effect with a project, the costs must be broken-out from the grant funded part of the project.
(16) DBE Plan Updates as a stand-alone plan. DBE updates are required when the anticipated amount of federal funding is $250,000 or greater in a fiscal year, and the cost of the plan update may be included as an allowable cost of the project that is triggering the need for the plan update.
(17) Equipment – Turned Over at End of Project. Acquisition of non-expendable equipment as part of an AIP development project. Some examples include:

(a) Hand held radios

(b) Vehicle beacons

(c) Pavement marking machines

(d) Joint sealing machines

(e) Ohm meters

(f) Sweeper brooms

(g) Commercial barricades

(h) Construction vehicles/trucks

(i) Inspection vehicles/trucks

(j) Construction office trailer/building

(k) Hand held cameras

(l) Lighted X’s

While the cost associated with the temporary use of non-expendable equipment is eligible under AIP, the acquisition of such equipment under a development grant is not. The practice of requiring a project contractor to transfer ownership of temporary non-expendable equipment to the owner at the end of the project is an impermissible procurement action. For example, it is reasonable to require the contractor to furnish hand-held radios during the duration of the project. It is not allowable under AIP to require the contractor to transfer ownership of these radios to the airport owner at the conclusion of the project. AIP may not participate in costs associated with acquiring equipment for day-to-day airport operations. This includes direct and indirect acquisitions.
(18) Extended Warrantees. Not allowable because not required under 2 CFR § 200.325.
(19) Flight Checks – for Establishing Procedures or anything other than the initial flight check for an AIP funded NAVAID or weather aid.
(20) Fundraising. Any costs incurred in connection with raising funds by the sponsor, including interest and premium charges and administrative expenses involved in conducting bond elections and in selling bonds. Such costs are ineligible unless specifically allowed by statute, regulation, or a similar provision.
(21) Indirect Cost Applied to Costs Other Than Direct Salary and Wages. The rate approved under the cost allocation plan (also referred to as the indirect cost allocation plan rate, or ICAP rate) for a sponsor is applied only to the costs associated with sponsor’s employee’s hourly rate. The rate is not a multiplier on anything but the employee’s hourly rate. This means that the ICAP cannot be applied to contract costs, construction costs, consultant costs, or any other type of cost that is not a sponsor’s employees’ salaries and wages for hours worked on an AIP project.
(22) Interest Charges. Interest charges, except payment of interest directed by a court in a condemnation proceeding, which then becomes part of the condemnation award and allowable. However, where the amount deposited in court as fair market value was adequate and could have been withdrawn by the property owner without prejudice to his/her rights in the condemnation proceeding, such interest payment is not allowable.
(23) Legal Fees Defending a Specification or Federal Contract Requirement. These costs are not required to complete the project.
(24) Liability Insurance – Excessive for Contractor/Consultant. Liability insurance well beyond that normally carried by the contractor or consultant for his own protection. This includes liability for damages beyond the scope of the consultant or contractors contract (such as making a consultant liable for acts of third party contractors not under the control of the consultant).
(25) Liability Insurance – For the Airport Sponsor. The requirement that the sponsor be indemnified by the contractor against potential damages is not an FAA or AIP requirement, nor is it an essential element in completing the project. Rather, this third party coverage would simply protect the airport and its insurer against the presumed added risk of airport operations during periods of construction and add the cost of that protection to the construction costs.
(26) Lobbying. Cost of activities associated with the lobbying for a project or influencing federal employees. The regulations on lobbying or influencing federal employees do not restrict technical negotiations involving AIP projects.
(27) Maintenance Bonds. Not allowable because not required under 2 CFR § 200.325.
(28) On the Job Training Programs. Agencies such as the Federal Highway Administration have specific statutory authorization to establish apprenticeship and training programs targeted to move women, minorities, and disadvantaged individuals into journey-level positions. The FAA does not have similar statutory authorization for AIP and therefore cannot participate in such programs.
(29) Procurements with Improper Bid Alternates. Using the procurement process as a cost estimating tool is not allowed. The sponsor is not allowed to bid alternates that it has no intention of putting under contract. An example would be where a sponsor is permitted by its 14 CFR part 139 index to acquire a 1,500 gallon ARFF vehicle, but wants a 3,000 gallon vehicle and intends to pay the additional cost using local funds. This is to avoid having contractors and suppliers incur significant costs to bid hypothetical projects.
(30) Projects That Have Not Been Determined to be Eligible. Any project that has not been determined to be eligible by the FAA. If this Handbook does not list a project as eligible, the ADO must receive an eligibility determination from APP-500.
(31) Repair, Replacement or Upgrading of AIP funded Computer Hardware and Software used in AIP Projects. Repair, replacement, or upgrading computer hardware or software before the useful life of the system has been met. Computer hardware and software are considered supplies and the ADO cannot fund interim replacement of components prior to the end of the useful life of the AIP project (such as electrical vaults and access control systems).
(32) Replacement or Repair of Damaged Facilities or Equipment.

(a) Non-Emergency Repair or Replacement of Eligible Infrastructure. Replacement or repair of facilities or equipment that has been damaged are not eligible unless the sponsor can prove that there is no other avenue of funding, such as insurance, legal recourse, an airport emergency reserved fund, or funding through another Federal agency responsible for such disasters.

(b) Emergency Repair or Replacement of Eligible Infrastructure. From a disaster recovery aspect, AIP grant funding efforts are focused on the capital improvements that have been damaged. AIP funding is limited to eligible projects as long as there is no other avenue of funding, such as insurance, legal recourse, an airport emergency reserved fund, or funding through another Federal agency responsible for such disasters. In addition, the normal grant rules apply.

(c) Emergency Repair or Replacement of Ineligible Infrastructure. AIP funding of emergency disaster repairs that are not normally eligible for AIP are not allowed without express congressional authorization.
(33) Replacement, Repair, or Renovation of Ineligible Facilities/Equipment. Unless allowed under Paragraph 3-74, if AIP cannot be used to construct or acquire something, then AIP cannot be used to repair, replace, or renovate it.
(34) Sculptures or Works of Art. Per 49 USC § 47110(f).
(35) Training. Only acquisition of certain training systems and equipment is eligible, not the actual training.
(36) Unclassified Airport Projects – Unjustified. Nonprimary airports that are not classified as National, Regional, Local, or Basic airports in the latest edition of the FAA Asset report have very low levels of activity. As a result, only projects that meet the requirements in Paragraph 3-10 may be funded by the ADO.

C-2. Examples of Construction Prohibited Projects/Costs.

The list in Table C-2 is not comprehensive. Instead, it contains projects or costs specifically prohibited in the Act or whose eligibility is frequently questioned. Unless a specific reference to the Act is cited, these prohibitions are FAA policy.

Table C-2 Examples of Prohibited Projects/Costs for Construction
Examples include, but are not limited to…
(1) All of the Examples in Table C-1.
(2) Access Road – Ineligible Segments. A portion of an access road that meets any of the following criteria:

(a) Does not exclusively serve airport traffic to/from an aeronautical use on the airport (aeronautical use includes terminals, cargo facilities, hangars, air national guard, etc.).

(b) Is exclusively for the purpose of connecting parking facilities (or other non-aeronautical facilities such as rental car facilities and on-airport hotels) to an eligible portion of the access road.

(c) Solely serves industrial or non-aeronautical areas or facilities.

(d) Is necessary only to maintain FAA facilities installed under the F&E program.

(e) Is not on airport property or an airport-owned easement.

(f) Is not needed for the circulation of airport passengers or air cargo.
(3) Air Compressors. Air compressors beyond the single fixed system in an ARFF building that is intended to support the maintenance bay and self-contained breathing apparatus (SCBA). Portable air compressors are also ineligible.
(4) Aircraft Deicing Equipment and Fluid Storage Facilities. Per 49 USC 47102(3)(G), the acquisition of aircraft deicing fluids or constructing or reconstructing storage facilities for aircraft deicing equipment or fluids. Note that this is not the same as drainage collection, treatment, and discharge systems for treating aircraft deicing fluids, which are considered AIP eligible.
(5) Airline Operations and Maintenance Facilities. This includes catering facilities and airline related waste disposal facilities such as triturators and food waste incinerators.
(6) Aircraft Rescue and Firefighting (ARFF) Buildings – Certain Areas/Equipment.

(a) Buildings Bays for Non-Airport ARFF Vehicles or Non-ARFF Vehicles. ARFF building bays for fire trucks or vehicles that are stationed on the airport, but primarily provide services outside the airport boundaries, or for any vehicle that is not required by regulation except for a single structural fire truck that is used to provide backup support to ARFF vehicles and protection to airport buildings.

(b) Dedicated Office Space. Office space beyond an open area to accommodate a desk for the shift commander and one administrative staff (when applicable). Dedicated space for other administrative purposes that are not allowable include office space for the Fire Chief, Deputy Chief, and other officers

(c) Conference Rooms.

(d) Private Dormitories and Lavatories.

(e) Exercise Facilities.

(f) Extra Generators or Air Compressors. Only one fixed emergency generator and one fixed air compressor of sufficient size to operate the ARFF bay system and to maintain the readiness of self-contained breathing apparatus (SCBA) are allowable.

(g) Non-fixed Furniture or Equipment. Non-fixed items such as tables, chairs, couches, portable generators, and portable air compressors are not allowable.

(h) Station Store.

(i) Public Restrooms and/or Bathrooms. Restrooms and bathrooms beyond what is need for the ARFF staff.

(j) Separate TV Room. Only a day room of proper size is eligible.

(k) Separate Telephone Room.

(l) Washers/Dryers. (m) Separate Computer Training Room. Only one training room for computer and non-computer training is allowable.
(7) Aircraft Self-Docking Systems. System to automatically guide pilots to the gate and allow the pilots to self –park aircraft without ramp personnel (advantageous during presence of lightning) through the use of laser range finders and light-emitting diode (LED) displays. This equipment is not required by rule or regulation and is typically airline owned.
(8) Bathrooms/Restrooms. Bathrooms differ from restrooms in that they include a shower or a tub, which is not required by the Americans with Disabilities Act (ADA).

(a) Bathrooms. Not allowed except in ARFF buildings if required by 14 CFR part 139 staffing requirements.

(b) Restrooms. Not allowed in any building other than ARFF buildings and public areas of a terminal building.
(9) Bid Alternates that are Not Possible. Sponsors must not use the procurement process, such as including bid alternates, as a means of determining project costs. Bidding a 1,500 gallon ARFF vehicle and a 3,000 gallon vehicle simply to determine the difference in costs of the two vehicles when the sponsor has no intent of actually acquiring the smaller vehicle.
(10) Buildings – Not in Act. Any building that is not an eligible facility at that airport for storing airfield deicing materials, terminal, ARFF building, snow removal equipment building, hangar, or contract tower (unless specifically allowed under a special AIP funding program in Chapter 6).
(11) Cell Phone Waiting Lots – Unnecessary Costs. Areas for unattended car parking and amenities such as flight information display boards are not considered necessary.
(12) Command and Control Centers Area/Cost Beyond Maximum. Any area or cost beyond what is allowed in Table O-3.
(13) Early Completion Bonuses.
(14) Explosive Detection System (EDS) or Associated Terminal Modification. Beginning in FY 2004, and in every year since then, the FAA appropriations bill has prohibited using AIP grant funds on EDS systems or any building modifications that are necessary to support or install an EDS system. Because PFC eligibility hinges on AIP eligibility, leaving the project eligible but prohibiting funding is a work-around that allows these projects to be funded with PFCs.
(15) Environmental Remediation. Environmental remediation and removal of fuel farms, underground fuel tanks, hazardous waste, or contaminated soil. This is because sponsors are required by the grant assurances to maintain facilities to environmental standards. In addition, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as Superfund, provides that the responsible party causing the contamination can be accountable for recovery of clean-up costs, regardless of the level of negligence.
(16) Fueling Facilities – Non-Aircraft. Fueling facilities are not eligible for non-aircraft vehicles, regardless of the location on the airport or the non-aircraft vehicles that will use the facility. This includes fueling facilities for AIP eligible vehicles such as aircraft rescue and firefighting trucks and snow removal equipment. Fuel storage for non-aircraft vehicles within a fuel farm is also ineligible.
(17) Fueling Facilities – Rehabilitating or Replacing. Unless otherwise eligible and approved under the Voluntary Airport Low Emission Program (VALE) or the Zero Emission Vehicle and Infrastructure Pilot Program (ZEV), the following is not eligible:

(a) Constructing a new fuel farm if the airport already has a fuel farm, even if the existing fuel farm has reached the end of its useful life (AIP can only fund initial construction, then the facility is expected to be self-supporting).

(b) Projects to address environmental deficiencies.

(c) Replacing individual components like fuel tanks, even if the purpose is to provide more capacity. Only adding supplemental tanks are allowed if justified.
(18) Furniture. All furniture except fixed furniture for passenger seating (including fixed tables and counters) in holding areas of a terminal that is installed as an allowable cost of a terminal building project.
(19) Furniture – Replacement of Fixed. Replacement of fixed terminal furniture after the initial installation, unless the replacement is necessitated by an eligible terminal project.
(20) Hangar Acquisition (on Land Leased from the Airport). Acquisition of an existing hangar on land leased from the airport because there should have been a reverter clause for the hangar in the land lease agreement. APP-500, with support from and ACO-100, may approve exceptions with extraordinary justification on a case by case basis.
(21) Law Enforcement Facilities. Law enforcement facilities that are not airfield facilities to provide for a law enforcement presence required for air transportation security. The FAA has determined that the only facilities that are eligible are guard shacks at airfield access points. Co-located Command and Control Centers or Emergency Operations Centers also have limited eligibility.
(22) Light Emitting Diode (LED) Lighting. It is FAA policy that:

(a) LED obstruction lights, LED approach lights (does not include touch down zone or centerline lights) and LED high intensity runway edge lights are not currently AIP eligible. This is because LED fixtures may not provide the infrared signature necessary for aircraft using Enhanced Flight Vision Systems or Night Vision Imagery technology. This FAA prohibition was reviewed and upheld in December 2014.

(b) AIP funds cannot be used to replace AIP funded lighting fixtures with LED fixtures (either allowed or prohibited) if the existing AIP funded fixtures have not met the end of their useful life.

(c) The installation of nonstandard electrical system components as part of an eligible LED lighting project is not allowed.

(d) Costs for associated cable, conduit, etc., for prohibited LED lights is also restricted as discussed in Table 3-57.
(23) Maintenance/Service Facilities. Construction of maintenance/service facilities, except that allowed to store snow removal equipment, and to store the aircraft rescue and firefighting equipment that is required under 14 CFR part 139.
(24) Multimodal Terminals. Areas not Directly Related to Air Commerce. Only the areas directly related to air commerce are eligible.
(25) NAVAID Relocation. The relocation of NAVAIDs and other facilities except as allowed under Paragraph 3-74. Relocation strictly for the convenience of the owner (be it the sponsor, the FAA, or other type of owner) is not allowable.
(26) NAVAID Relocation – Refurbishing/Enhancing/Upgrading. AIP participation to move FAAowned NAVAIDS that impede an AIP funded project must not include refurbishing, enhancing, or upgrading the impacted facility.
(27) Noise Barriers – Exclusive Use.
(28) Obstruction Removal – Beyond the Aircraft Category on the Approved ALP for that Runway.
(29) Obstruction Removal – Creation of Parks or Play Fields. Any redevelopment, such as the creation of parks or play fields, unless required as part of court ordered mitigation. This is because the redevelopment is not an essential element in completing the project.
(30) Obstruction Removal – More than Once. Topping trees, or any other obstruction removal, more than once using AIP funding. This includes re-topping a tree that cannot be removed because of environmental reasons (more than one topping is considered maintenance).
(31) Painting and Carpeting – Stand-Alone. Carpet replacement and painting as stand-alone projects. Carpet replacement or repainting impacted by an eligible project (and only within the boundaries of the eligible project) would be eligible as an incidental part of that project.
(32) Parking Lots/Garages for Passenger Vehicles – Except as Specifically Allowed. The following parking facilities are ineligible:

(a) All parking lots at large, medium, and small hub airports.

(b) All parking lots that are not for the movement of passengers per FAA policy (such as employee parking lots and restaurant parking lots) except as specifically allowed in this Handbook for limited passenger vehicle parking associated with an eligible building.

(c) All parking garages. These are not considered parking lots (as specified in 49 USC 47119(a)(2)) and are not eligible at any size airport.

(d) Revenue producing parking lots at nonhub airports (unless specifically allowed under a special AIP funding program in Chapter 6).
(33) Pavement – Adjacent to Terminal. The areas immediately adjacent to the terminal building that cannot be used by aircraft. This pavement may be eligible as terminal work provided it is associated with eligible terminal facilities.
(34) Pavement – Associated with a Snow Removal Equipment (SRE) or Aircraft Rescue and Firefighting (ARFF) Building. Pavement beyond what is necessary to move eligible SRE and ARFF vehicles in and out of AIP eligible SRE and ARFF buildings is ineligible. The exception is limited automobile parking for employee as allowed in this Handbook.
(35) Pavement – Exclusive Use. This includes exclusive use and near exclusive use aprons, taxiways, and taxilanes. Near exclusive use means that the airport has no procedures for the management and operation of the apron, hangar, or taxiway to ensure prompt access by each potential user. Appendix A contains a more complete definition and references on exclusive use.
(36) Pavement – In Front of an Ineligible Building.

(a) For apron pavement in front of an ineligible building, the 50 feet of pavement immediately in front of the building is ineligible

(b) A taxiway or taxilane that exclusively serves an ineligible building is ineligible.
(37) Pavement – Maintenance. Routine runway, taxiway, or apron maintenance except at nonhub primary airports and nonprimary airports under 49 USC § 47102(3)(H). Examples of eligible and ineligible maintenance are provided in Paragraph 3-6.
(38) Pavement – Unavailable for Aircraft Parking/Taxiing. Pavement for vehicle/aircraft maintenance, automobile parking, ground service equipment storage, areas to square off pavement if it is not needed or used for aircraft parking, or apron areas on the apron side of a hangar that cannot be used for public aircraft parking.
(39) Planning as Project Formulation. Including costs incurred preparing a metropolitan area or statewide airport planning as project formulation costs, even if the plan was not AIP funded. For example, photo slope or other obstruction analysis that was prepared in a non-AIP funded obstruction plan that is used as a basis for removing the obstructions at an airport.
(40) Price Escalation Increases.
(41) Restrooms. See Bathrooms/Restrooms in this table.
(42) Revenue Producing Aeronautical Support Facilities – Construction. Revenue producing aeronautical support facilities at other than nonprimary and Military Airport Program airports.
(43) Revenue Producing Aeronautical Support Facilities – Maintenance/Repair/Minor Rehabilitation. The maintenance, repair, and minor rehabilitation of revenue producing facilities is only allowed as part of the MAP program under 49 USC § 47118((f). The major rehabilitation of a hangar at a nonprimary airport or a Military Airport Program airport is allowed per 49 USC § 47102(24).
(44) Roads – To federally owned NAVAIDS.
(45) Roads – To Non-Aviation Areas/Facilities. This includes driveways and other access points that connect the access road to off airport property.
(46) Roads – To Parking. Roads, whatever length, exclusively for the purpose of connecting public parking facilities to an access road except where the public parking facility is constructed with AIP grant funds.
(47) Seismic Retrofit. For any building completed after July 14, 1993. This is because the DOT regulation requiring seismic measures was issued on this date.
(48) Service Road – For Airport Operations and Maintenance. Except as specifically allowed in Appendix P.
(49) Snow Removal Equipment (SRE) Buildings – Certain Areas.

(a) Personnel Quarters.

(b) Training Space.

(c) Non-equipment Storage.

(d) Restrooms and Bathrooms.

(e) Maintenance Areas (beyond that eligible on an airport wide basis per Appendix N).

(f) Offices.

(g) Day Rooms or Lounges.

(h) Kitchens or Break Rooms.
(50) Terminal – Certain Areas:

(a) Airline Frequent Flyer Lounge. This is because these areas are not public use and are not necessary for the movement of passengers and baggage.

(b) Areas Behind Counters. The areas behind airline, rental car, and concession counters are not eligible because they are not public use areas.

(c) Chamber of Commerce. This is because these areas are not necessary for the movement of passengers and baggage.

(d) Conference Rooms. Even if these areas are occasionally accessed by the public, they are not considered public-use.

(e) Customs and Border Patrol – Non-Public Areas. Areas that are restricted from the public, including offices for screeners and supervisors, break rooms, training rooms, secure rooms where a passenger must be escorted (such as hold or search rooms), and similar uses are not eligible areas.

(f) Garbage Rooms. Including equipment such as aircraft lavatory dump equipment, triturators, and incinerators. This is because these areas are not public use, are considered operations/maintenance, and are not necessary for the movement of passengers and baggage.

(g) Hallways (or Portions of Hallways) Not Serving Public Use Areas. The portion of a hallway that is necessary to access a public use area (even if it also serves non-public use areas along the way), is eligible. The portion of the hallway that only serves non-public use area (including mechanical and electrical rooms) is not eligible.

(h) Janitor’s Room. This is because these areas are not public use, are considered operations/maintenance and are not necessary for the movement of passengers and baggage.

(i) Loading Docks. This is because these areas are not public use, are considered operations/maintenance, and are not necessary for the movement of passengers and baggage.

(j) Lost and Found Rooms. Even if these areas are occasionally accessed by the public, they are not considered public-use.

(k) Offices. All offices (airline, airport, tenant, security, etc.) are ineligible. Even if these areas are occasionally accessed by the public, they are not considered public-use and are not necessary for the movement of passengers and baggage.

(l) Passenger Screening Area Build Out and Equipment. All build out costs and equipment (as with other terminal tenants) are ineligible. This includes exit doors or walls not needed for eligible purposes. Unlike access control and perimeter fencing, passenger screening is not 49 CFR part 1542 requirement.

(m) Police and Law Enforcement Facilities. The only facilities that are eligible are guard shacks at airfield access points. In addition, co-located Command and Control Centers or Emergency Operations Centers also have limited eligibility.

(n) Staff Break Rooms.

(o) Training Rooms. Even if these areas are occasionally accessed by the public, they are not considered public-use.

(p) Transportation Security Administration (TSA) Security Checkpoint Consolidation – For TSA Staff Purposes Only. In order for a checkpoint consolidation project to be eligible, there must be a current to five-year problem with the capacity of the existing lanes and the consolidation must be a reasonable cost solution to this problem. Security checkpoint consolidation for the sole purpose of reducing TSA staff costs is not eligible.

(q) TSA Checkpoint Rooms. The room required by TSA staff to observe the checkpoint through a one way mirror is not eligible because it is not public use.

(r) TSA Storage Room for Confiscated Items. Even if these areas are occasionally accessed by the public, they are not considered public-use.

(s) United Service Organizations (USO) Facilities. This is because these areas are not public use and are not necessary for the movement of passengers and baggage.
(51) Terminal People Mover or Access Rail – Operations/Maintenance. Costs to operate or maintain the terminal people mover or access rail. This includes all associated maintenance facilities and equipment (including storage facilities, spare parts, spare equipment, tracks to a maintenance facility, maintenance equipment, and administrative offices).
(52) Terminal People Mover or Access Rail – To Certain Areas. Terminal people mover or access rail cost associated with access to commercial areas, maintenance areas, employee parking lots, or ticketing or fare collection areas.
(53) Through-the-Fence. Any development project to serve a through-the-fence operation per 49 USC § 47107(t)(2)(B)(ii). This is because through-the-fence operations are considered exclusive use and are not the responsibility of the sponsor.
(54) Utility Work – Stand-Alone Project. This is an allowable cost to an AIP eligible project, not a stand-alone project.

C-3. Examples of Equipment Prohibited Projects/Costs.

The list in Table C-3 is not comprehensive. Instead, it contains projects or costs specifically prohibited in the Act or whose eligibility is frequently questioned. Unless a specific reference to the Act is cited, these prohibitions are FAA policy.

Table C-3 Examples of Prohibited Projects/Costs for Equipment
Examples include, but are not limited to…
(1) All of the Examples in Table C-1.
(2) Air Compressors.Other than fixed air compressors built into an ARFF building to fill selfcontained breathing apparatuses (SCBA).
(3) Aircraft deicing fluids. Per 49 USC § 47102(3)(B)(v).
(4) Aircraft Removal Equipment.
(5) Airport Surface Detection Systems. This must not be confused with equipment that TSA determines to be required to meet 49 CFR part 1542 for securing the airport perimeter, which may be eligible as security equipment.
(6) Airport Rescue and Firefighting (ARFF) Vehicles – Support Vehicles. ARFF support vehicles, such as fire marshal vehicles, unless AAS-1 has determined that this will significantly contribute to safety of individuals and property at the airport per 49 USC § 47102(3)(B)(ii).
(7) ARFF Vehicles – Back-Up or Reserve.
(8) ARFF Vehicles – Beyond Index. More than the minimum number, type, and size required by the ARFF index.
(9) ARFF Vehicles – No 14 CFR part 139 Certificate. ARFF vehicles for airports that do not hold 14 CFR part 139 certificates unless AAS-1 has determined that this will significantly contribute to safety of individuals and property at the airport per 49 USC § 47102(3)(B)(ii).
(10) ARFF Vehicles – Requiring a delivery period that is less than 360 days. Specifying a shorter period of time limits competition to those manufacturers that have ARFF vehicles that are already built.
(11) AWOS – Bid as Upgradable. Sponsors must not bid an AIP funded AWOS-A, AWOS-A/V, AWOS-I and AWOS-II with a requirement for the system to be upgradable to an AWOS III or better. This is because not all AWOS manufacturers offer systems that can be upgraded, and therefore a bid requirement that establishes upgrade capabilities would limit competition. If the sponsor correctly bids the AWOS-A, AWOS-A/V, AWOS-I and AWOS-II (without an upgrade requirement), and the low bidder happens to be an AWOS that can be upgraded, the sponsor may use non-AIP funding to upgrade the system. However, it would then be the sponsor’s responsibility to coordinate with their FAA Air Traffic Organization (ATO) Service Center NonFederal Program Implementation Manager on all AWOS-III requirements.
(12) Certain Vehicles. The following vehicles are not eligible, even if the intent is to use the vehicle to pull an AIP eligible attachment. The exception is where AAS-1 has made a written determination that the vehicle or truck fills a unique safety or security need at that specific airport per Paragraph L-3.

(a) Passenger cars (as defined by DOT).

(b) Passenger trucks (as defined by DOT).

(c) Snow removal vehicles below class 5.

(d) Motor graders.

(e) Skid steer loaders.

(f) All-terrain vehicles (ATVs).

(g) Lawn mowers.

(h) Agricultural Tractors that do not have at least 100 horse power (HP) power take off (PTO) and 110 gross engine horse power (HP).
(13) Emergency Power Equipment. Equipment to provide emergency power to an airport for emergency housing, marshaling of equipment or supplies for catastrophe relief or other purposes. In addition to not being allowed, this could be an augmentation of another federal agency’s budgets since other agencies have the specific responsibility to provide those services.
(14) Expendable Items. Expendable items, such as extinguishing agents (except for one test charge and one refill at time of initial purchase of an ARFF vehicle), deicing materials (sand, chemicals, fluids, etc.), shotgun shells, chemicals, pyrotechnic devices (other than pyrotechnic pistols) and ammunition.
(15) Extended Warranty Costs or Requirements for Extended Servicing. The cost of extended warranties beyond that which is common in business because this is a maintenance and operational expense. This includes requirements in the bidding documents for ability to be onsite within a specified number of hours or for having service personnel within a certain geographic proximity of the project site which have been determined to be anti-competitive.
(16) Fencing – Beyond What is Reasonable. Fencing beyond what is minimally required for wildlife or people/vehicle deterrent purposes per the minimum requirements of the current version of Advisory Circular 150/5370-10, Standards for Specifying Construction of Airports.
(17) Fencing – Non-Aeronautical. Fencing to benefit non-aeronautical use areas of the airport that is not primarily for protection of the airfield or terminal building.
(18) Flight Checks – More than One. The cost for the FAA Air Traffic Organization (ATO) to conduct more than one flight check (also called flight inspections) during the commissioning of a NAVAID or weather aid.
(19) Foreign Object Debris (FOD) Detection Systems – Optional Features. Optional features that exceed FAA design standards for system output requirements are not eligible for AIP and may not be used as a basis for selection of the system.
(20) Ground Communications Outlet (GCO). A GCO is a variant of a remote communications outlet (RCO), and like an RCO, is ineligible. Communications equipment of this type is normally funded through the FAA Air Traffic Organization (ATO).
(21) Ineligible Equipment – Any Associated Costs. AIP cannot be used to reimburse any costs associated with ineligible equipment. The single exception is for the installation of a sponsor’s preferred airfield lighting equipment as discussed in Paragraph 3-36.
(22) Interactive Training Systems – Rental.
(23) Land and Hold Short Equipment. Trucks, follow-me signs, and other associated Land and Hold Short Operations (LAHSO) equipment.
(24) Maintenance Equipment/Tools. The acquisition of equipment or tools that are used to maintain, repair, reconstruct, or rehabilitate an item or facility, including equipment or tools used for pavement maintenance at nonhub primary or nonprimary airports. (If pavement maintenance is done by the sponsor’s own forces using force account methods, a portion of the cost of the use of the equipment may be allowable.)
(25) Mobile Command Vehicles. The FAA has determined that mobile command vehicles cannot be considered as eligible firefighting and rescue equipment. This is because mobile command vehicles do not deliver firefighting personnel, equipment and fire suppression agents to the site of an accident, nor are they used in physically extinguishing fire or physically assisting in rescue efforts.
(26) Mobile Gate Power for Aircraft. Mobile air conditioning, heating or electric power facilities or equipment for the benefit of aircraft. This includes mobile preconditioned air units (PCA) and auxiliary power units (APU). This equipment is not considered terminal-based and are not eligible (unless otherwise eligible and approved under VALE). This is because the eligibility conferred in 49 USC 47102(O) limits this to only terminal-based systems. Therefore, systems that are mobile, non-terminal based, are not eligible.
(27) NAVAIDS at Airports without an ATO-designated Instrument Runway. Only airport rotating beacons, runway end identification lights, and visual glide-slope indicator systems are eligible at airports without a designated instrument runway.
(28) Paint Machines. Paint machines for any purpose.
(29) Pest Control Equipment for Rodent Extermination. This is considered a maintenance tool.
(30) Police Vehicles – More Than Allowed. Police vehicles are not eligible at airports without a 14 CFR part 139 certificate. Airports with a 14 CFR part 139 certificate are allowed a maximum of one police vehicle.
(31) Portable Emergency Generators. Portable emergency generators or light plants that function essentially as portable emergency generators.
(32) Radios and Communication Equipment – Stand-Alone and Portable (or hand held) Equipment. Radios and communication equipment are allowable costs only if they are part of the acquisition of an eligible ARFF vehicle, police vehicle, or a piece of snow removal equipment.
(33) Remote Communications Outlet (RCO). Communications equipment of this type is normally funded through the FAA Air Traffic Organization (ATO).
(34) Runway Surface Condition Sensors – Certain Features/Services. Service agreements, spare parts, and on-site service by the sensor system manufacturer required by the SAE document included in the current version of Advisory Circular 150/5200-30, Airport Field Condition Assessments and Winter Operations Safety. In addition, wind sensors, air sensor, relative humidity sensor, precipitation sensor, present weather/visibility sensor, sub-surfaces sensors; requirements for field processing units that exceed the minimum needed to support the eligible system, and central processing systems to receive, accept and display weather forecasts. These features and services are not allowable costs for runway surface condition sensors.
(35) Safety Equipment - Not Specifically Required by 14 CFR part 139. Except as allowed under Paragraph L-3.
(36) Security and Access Control Equipment – Landside. Security and access control equipment (such as closed circuit cameras) for protection of the unsecured landside areas of the airport (such as parking garages, rental car facilities, and terminal areas prior to security screening checkpoints).
(37) Security Equipment. Projects exceeding the minimum requirements of 49 CFR part 1542 or are necessary to support local law enforcement. Examples include:

(a) Video cameras that are not in the secured terminal area or airfield operations area.

(b) Handheld cameras.

(c) Badging supplies.

(d) Tow trucks to tow vehicles.

(e) Canines (dogs) and kennels (live animals). With the transfer of responsibility to DHS, airports are no longer responsible for canines for airport security.

(f) Police radios (other than in an eligible police vehicle at time of acquisition).

(g) Firearms for law enforcement or security purposes.

(h) Law enforcement facilities except guard shacks at airfield access points.
(38) Sign Panel Replacement. See Paragraph J-3 for further discussion.
(39) Snow Removal Equipment (SRE) – Oversized or Increased Functionality. The size and/or functionality of snow equipment cannot be based on clearing snow from areas that are not priority 1 areas, such as parking lots, landside pavement, or between hangars.
(40) Snow Removal Equipment (SRE) - Specialized for Snow and Ice Removal on EMAS. There currently is no FAA requirement for the EMAS to be cleared of snow or ice.
(41) Squitters – Maintenance Contracts. This is an operational cost that is the responsibility of the sponsor.
(42) Tow Vehicles for Eligible Equipment.
(43) Towed FOD Sweepers. These are not considered eligible power sweepers.
(44) Visual Approach Slope Indicators (VASI). These have been replaced by the installation of Precision Approach Path Indicators (PAPI).
(45) Wildlife Reduction Equipment and Supplies. Shotgun shells, chemicals, pyrotechnic devices (other than pistols), and airport operations vehicles.

C-4. Examples of Land Prohibited Projects/Costs.

The list in Table C-4 is not comprehensive. Instead, it contains projects or costs specifically prohibited in the Act or whose eligibility is frequently questioned. Unless a specific reference to the Act is cited, these prohibitions are FAA policy.

Table C-4 Examples of Prohibited Projects/Costs for Land
Examples include, but are not limited to…
(1) All of the Examples in Table C-1.
(2) Compensation for Frustration of Development Plans.
(3) Compensation for Goodwill.
(4) Compensation for Loss of Business.
(5) Costs Exceeding Requirements. Any costs that exceed what is required by 49 CFR part 24 or do not conform to the Uniform Appraisal Standards for Federal Land Acquisitions.
(6) Costs to Lease Privately Owned Land. A lease of privately owned land is normally not considered adequate title and acquisition of the needed interest in the land is required.
(7) Land for Other than Airport Purposes. See Appendix A for definition of airport purposes.
(8) Real Estate Commissions.
(9) Stand-Alone grants for appraisals.

C-5. Examples of Noise Mitigation Prohibited Projects/Costs.

The list in Table C-5 is not comprehensive. Instead, it contains projects or costs specifically prohibited in the Act or whose eligibility is frequently questioned. Unless a specific reference to the Act is cited, these prohibitions are FAA policy.

Table C-5 Examples of Prohibited Projects/Costs for Noise Mitigation
Examples include, but are not limited to…
(1) All of the Examples in Table C-1.
(2) Block Rounding for Anything Other than a Residence. This includes buildings such as schools and places of worship.
(3) Block Rounding with Lower Local Standards. For example, if a local standard has been adopted to include residences that lie within the DNL 60 dB noise contour, residences that lie outside the DNL 60 dB are not eligible for block rounding. This is because by accepting a lower local standard, the FAA has already accepted exterior noise that is below the land use compatibility with yearly day-night average sound levels that FAA has accepted in 14 CFR part 150.
(4) Building Code Corrections. If it is determined in the course of designing a sound insulation project that a building needs improvements in order to conform to local building codes, only the costs of the sound insulation are allowable. This includes making changes to meet current ventilation requirements where the existing central ventilation or air conditioning units do not meet current building code ventilation requirements.
(5) Cannot Be Implemented by an Eligible Sponsor. A 14 CFR part 150 approved NCP measure for a project that cannot be implemented by an eligible sponsor.
(6) Comfort or Attractiveness Improvements.
(7) Demonstration Programs. This may include installation of unproven methods of reducing sounds such as installing white noise generators in classrooms. This includes any 14 CFR part 150 approved NCP measure for a demonstration program intended to test the effectiveness of new noise mitigation technology.
(8) Follow-on Replacement. Follow-on replacement of windows, doors, equipment, or any items installed for noise reduction that appear to have met their useful life. Installation of noise reduction equipment is limited to the initial installation only.
(9) Inadequate Maintenance Corrections. Improvements to address inadequate maintenance.
(10) Inside DNL 75 dB or greater. Noise insulation projects for residences, schools, hospitals, places of worship, auditoriums, and concert halls within a DNL 75 dB or greater noise contour since these uses are never compatible in these noise contours, per Table 1 of Appendix A in 14 CFR part 150 — Land Use Compatibility With Yearly Day-Night Average Sound Levels. If a sponsor requests sound insulation in the DNL 75 dB contour, the ADO may consider consulting with APP-400 for guidance.
(11) Interior Noise Less than 45 dB. Noise mitigation inside the DNL 65 dB contour where the interior noise level is less than 45 dB unless the ADO has concurred that the limited costs are due to neighborhood equity.
(12) Mitigation of a Noise Sensitive Use in a Commercially Zoned Structure.
(13) Mitigation Outside DNL 65 dB.Noise mitigation outside the DNL 65 dB contour unless the interior noise level is greater than 45 dB and the ADO has concurred that the limited costs are due to block rounding, or the community has adopted a significant noise standard less than DNL 65 dB.
(14) Mobile Homes or Mobile Classrooms. Mobile homes and Mobile Classrooms are not viable noise compatibility projects since their design and construction do not lend themselves to effective noise reduction measures. (Note that this is not the same thing as permanent modular buildings.)
(15) Noise Buffer Land – Not Airport Owned. Noise buffer land must be owned by the airport.
(16) Noise Monitoring Equipment - Fixed in Certain Situations. Fixed noise monitoring equipment where the 14 CFR part 150 noise exposure maps (existing and forecast) show no noncompatible land uses or the sponsor is unable to clearly show that portable monitors would be inadequate.
(17) Noise Monitoring Systems – Unnecessary Capability. Flight tracking capabilities beyond that needed for noise monitoring, such as the ability to track 100% of flights and/or real time display of flight tracks.
(18) Noise Monitoring Systems – Vendor Data Retention. Systems where the data ownership remains with the vendor, not the sponsor as required.
(19) Noise Compatibility Program (NCP) Measures Approved in Fiscal Years 2004-2007 Outside the DNL 65 dB Noise Contour. Per 49 USC § 47504(b)(4), a 14 CFR part 150 approved NCP measure for a project to mitigate aircraft noise less than DNL 65 dB if the FAA approved the NCP in fiscal years 2004-2007. This fiscal year requirement does not apply to soundproofing schools and hospitals since they are not required to be in an approved NCP.
(20) Non-Aircraft Noise Mitigation. The mitigation must be based on aircraft noise associated with the airport.
(21) Operational or Administrative Costs for an Ongoing Program. A 14 CFR part 150 approved NCP measure for operational or administrative costs of a sponsor’s ongoing noise mitigation program.
(22) Parts of Schools. Sound insulation of school facilities such as gymnasiums, cafeterias, and hallways unless approved by APP-400. These areas are not considered to be adversely affected by a given level of noise as areas such as classrooms that are eligible for funding.
(23) Projects/Costs Based on Noise Exposure Maps that Are Not Current. The requirements and exceptions are provided in Paragraph R-7.
(24) Terminal Based Air Conditioning, Heating, or Electric Power. Acquiring or installing terminalbased air or power systems is allowable as a terminal project, but is not fundable as a noise mitigation measure.
(25) Undefined Noise Benefit. A 14 CFR part 150 approved NCP measure for a project that is not described in sufficient detail to determine its noise mitigation benefits.
(26) Ventilation or Central Air Conditioning System Replacement. Ventilation systems or central air conditioning systems are allowable only in buildings that do not currently have a ventilation or central air conditioning system.

C-6. Examples of Planning or Environmental Prohibited Projects/Costs.

The list in Table C-6 is not comprehensive. Instead, it contains projects or costs specifically prohibited in the Act or whose eligibility is frequently questioned. Unless a specific reference to the Act is cited, these prohibitions are FAA policy.

Table C-6 Examples of Prohibited Projects/Costs for Planning or Environmental
Examples include, but are not limited to…
(1) All of the Examples in Table C-1.
(2) Airport Capital Improvement Plan – Stand-Alone. A stand-alone grant to update an airport’s capital improvement plan. Capital plan development costs are only eligible if warranted as part of a master plan study or update grant.
(3) Airport Certification Manual Updates. Only the initial airport certification manual developed for a new 14 CFR part 139 airport with scheduled air carrier service greater than 9 seats and/or unscheduled air carrier service greater than 30 passenger seats is eligible. Per APP-500 policy, this is considered planning because it is necessary for the airport to begin operations. Updates are considered operational, not planning.
(4) Airport Emergency Plan – Stand-Alone. Preparation or update of an airport emergency plan as a stand-alone project. An Airport Emergency Plan is operational by nature and therefore ineligible. The cost of preparing an Airport Emergency Plan may be an allowable cost if it is included in an AIP funded airport master plan, is required by 14 CFR part 139, and will result in AIP eligible development.
(5) Airport Geographic Information System (GIS) - Certain Costs. Any GIS costs not specifically allowable under Paragraph 3-77, including:

(a) Under Pilot Program or Transition Policy. Both the pilot program and the transition policy are complete, so stand-alone GIS grants under either of these are no longer eligible.

(b) Under State or Metropolitan System Planning. State or metropolitan system planning studies are used to study the performance and interaction of an entire aviation system in a specific geographic area. As such, AIP-funded system planning grants may not include wholeairport surveys unless approved by APP-400 and APP-500.
(6) Airport Zoning Ordinance. The cost of preparation and adoption of an airport zoning ordinance unless the work is done as part of an airport master plan, noise compatibility program, or land use compatibility planning program for states and units of local government for compatible land use planning and projects around large and medium hub airports that have either never submitted a noise compatibility program or have not updated such program within the preceding ten years.
(7) ALP Update to Only Document What Has Already Been Constructed. A drafting effort to update an ALP to only document what has already been constructed is not eligible as standalone project. An ALP update is considered an allowable cost within an eligible planning study grant (see Appendix E) that address a future airport need or with a construction or land grant.
(8) Airport Master Planning Study - Certain Planning Elements. The following are not allowable elements in an airport master plan or as stand-alone planning projects.

(a) Asset management planning

(b) Aviation business park analysis

(c) Business plans

(d) Economic benefit studies

(e) Information technology (IT) master plan or analysis

(f) Marketing studies

(g) Minimum standards development

(h) Rates and charges analysis

(i) Rules and regulations development

(j) Snow removal plans

(k) Strategic business plans

(l) Surface movement guidance and control system (SMGCS) plans

(m) Tower siting studies beyond what general areas will work unless AIP is paying for the tower
(9) Benefit-Cost Analysis – Stand-Alone Grant. A benefit-cost analysis in a stand-alone grant. A benefit-cost analysis for a project can only be reimbursed as project formulation costs once the benefit-cost analyses has shown that the associated project is economically viable.
(10) Competition Plans – Stand-Alone Grant. Development or update of a competition plan as a stand-alone grant.
(11) Computer Hardware – Planning Projects. Computer hardware in planning projects. This includes Geographic Information System planning and Safety Management System manual and implementation plan development.
(12) Environmental Management System Updates. Only the initial development is eligible.
(13) GIS Platform. If a sponsor wishes to integrate the FAA-required data with other GIS datasets, then the sponsor must secure the necessary platform to do so at their own expense, as with any other airport operating expense.
(14) Ineligible Project Environmental Analysis. Preparing an EA or other environmental analysis for an ineligible project.
(15) Mitigation Site Management and Protection. Sponsors are responsible for funding long–term management and protection of mitigation sites past the period of establishment.
(16) Monitoring Mitigation Sites beyond the Period Specified in an Environmental Determination. By FAA policy, funding for monitoring is limited to the period specified in an environmental determination, up to five years maximum.
(17) Planning Project Equipment. Equipment for planning purposes, such as aircraft counters.
(18) Stand-Alone Planning Studies. Portions of system, metropolitan, or master planning projects as stand-alone planning studies unless they are listed as eligible stand-alone studies in Paragraph E-4.
(19) Surface Transportation Origin-Destination Surveys. If not required as part of Metropolitan Planning Organization coordination or as part of an eligible multimodal project, surveys to determine the modes of surface transportation airport users are using to get to and from the airport as well as where they are coming from or going to (hotel, home, etc.).

Appendix D. Miscellaneous Projects

D-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

D-2. Airfield Needs Requirement for Revenue Producing Aeronautical Support Facilities.

Per 49 USC § 47110(h), the sponsor must certify that all airfield needs have been accommodated before the ADO can fund a revenue producing aeronautical support facilities. Per FAA policy, the sponsor must adequately demonstrate to the ADO that airside needs within the next three years (current fiscal year and next two future fiscal years) will be accommodated through local funds or nonprimary entitlement funds. It is APP-500 policy that the sponsor requests for AIP would be limited to non-primary entitlement funds during that time unless there is a specific safety issue that must be addressed and was not foreseeable under normal planning efforts of the sponsor.

D-3. Project Requirements.

In addition to the information provided in the above paragraphs and the following table, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table D-1 Miscellaneous Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Stand-Alone Design Only Projects (1) The ADO has every expectation that the associated development project will begin within two years after the design is completed.

(2) The development work has not been started. If the work has been started, the ADO must include the design work in the development grant.
A set of plans and specifications that is ready to be bid. Same as development project
b. Construct Wash Rack (1) A wash rack is a pavement area with proper drainage and water runoff collection available for washing aircraft.

(2) A wash rack is not technically considered apron construction, but a revenue-producing aeronautical support facility project, and maintenance and repair is not eligible.

(3) The airport must be a nonprimary airport and only nonprimary entitlements may be used for the project.

(4) Per 49 USC § 47110(h), the sponsor must certify that all airfield needs have been accommodated. Per FAA policy, the sponsor must adequately demonstrate to the ADO that airside needs within the next three years will be accommodated through local funds or nonprimary entitlement funds. It is APP-500 policy that the sponsor requests for AIP would be limited to non-primary entitlement funds during that time unless there is a specific safety issue that must be addressed and was not foreseeable under normal planning efforts of the sponsor.

(5) The ADO must ensure that the proper environmental permits have been obtained.
A fully functional wash rack that charges for services and is not exclusive use. OT OT WR
c. Fuel Farms (Construct or Improve) (1) For MAP funded projects, see Appendix T, as many of the following requirements do not apply.

(2) The fuel farm must be owned by the sponsor. The current version of FAA Order 5190.6, FAA Airport Compliance Manual, contains detailed guidance on whether the sponsor may allow a fixed based operator to operate the fuel farm.

(3) A fuel farm includes the bulk fuel storage tanks, the containment area, the pavement area needed for the fuel farm operations, and pumps and equipment needed to operate the fuel farm. In addition, since fuel trucks must be parked in a containment area when not in use, additional area in the containment area may also be included. It also may include self-service fuel pumps for the public (also referred to as credit card pumps).

(4) Eligible fuel farm construction projects are limited to:

(a) Initial construction of a fuel farm if the airport does not currently have a fuel farm.

(5) Eligible fuel farm improvement projects are limited to:

(a) Initial installation of self-service fuel pumps. This can be done as a stand-alone project.

(b) Installing facilities necessary to provide a fuel type not currently available at the airport (such as jet fuel).

(c) Adding supplemental tanks if the sponsor is able to document to the ADO that the additional tanks are necessary based on increased demand and will therefore increase the revenue production at the airport.

(6) A fuel farm is not technically considered apron construction, but a revenue-producing aeronautical support facility project, and maintenance and repair is not eligible.

(7) The airport must be a nonprimary airport and only nonprimary entitlements may be used for the project.

(8) All airfield needs have been accommodated per Paragraph D-2

(9) The facility must meet the requirements of 40 CFR § 112.8, Spill Prevention, Control, and Countermeasure Plan Requirements for On-Shore Facilities (excluding production facilities).

(10) The ADO must ensure that the proper environmental permits have been obtained.
A fully functional fuel farm that charges for services and is not exclusive use. OT OT FF
d. Construct Deicing Pad

(Includes Associated Facilities)
(1) An exclusive paved area for aircraft deicing or anti-icing activities is eligible if the improvements are to be owned by the airport and will become available on a non-exclusive use basis per 49 USC § 47102.

(2) A ground deicing pad includes the paved areas, drainage collection structures, treatment and discharge systems, lighting, paved access for deicing vehicles and aircraft.

(3) The airport must be a commercial service airport.

(4) This is not the same as a separate deicing containment facility required to serve the aircraft gate area at a terminal. See Appendix S for these projects.
A fully functional aircraft deicing pad that meets FAA standards including aircraft and vehicle access. ST AP DI
e. Parking Lot

(Construct or Rehabilitate)
(1) For MAP funded projects, see Appendix T, as many of the following requirements do not apply.

(2) The airport is a nonprimary commercial service, a nonhub primary airport, a reliever airport, or a general aviation airport.

(3) The parking lot is non-revenue producing.

(4) The parking lot is public-use.

(5) Per 49 USC § 47119(c), this is considered an allowable cost of a terminal development project and must follow the terminal building funding rules in Table N-7. Stand-alone grants can be issued for eligible parking lots.

(6) Per 49 USC § 47119(a)(1)(A), the airport has all safety equipment required for the airport per 49 USC § 44706 (Airport Operating Certificate), has all security equipment required by rule or regulation, and has provided for access by passenger to the area of the airport for boarding or exiting aircraft that are not air carrier aircraft.
A fully functional parking lot. OT OT PA
f. Remove obstructions to support Area Navigation (RNAV) Approach (1) The project must be supported by a RNAV obstruction removal survey based on the airport category on the approved ALP.

(2) Per 49 USC § 47102(3)(A)(i) and § 47102(4), the removal, lowering, relocating, lighting, and marking obstructions is eligible.

(3) Per FAA policy, this obstruction removal for RNAV approach purposes may include:

(a) Airport Design Advisory Circular. Obstruction removal necessary to meet the object clearing criteria in the current version of Advisory Circular 150/5300-13, Airport Design. There are many surfaces and areas contained in the object clearing criteria. They include, but are not limited to, object free areas, runway and taxiway safety areas, obstacle free zones, threshold obstacle clearance surfaces, NAVAID critical areas, 14 CFR part 77 surfaces, approach and departure surfaces, runway protection zones, runway visibility zones, and inside the building restriction line. The ADO must consult the current version of the advisory circular to determine the current requirements.

(b) 14 CFR part 77 Surfaces. Per FAA policy, obstructions to the 14 CFR part 77 primary approach and 7:1 transitional surfaces.

(c) TERPS. Any of the United States Standard for Terminal Instrument Procedures (TERPS) requirements.

(4) Obstruction removal is limited to obtain 100 feet vertical clearance above the elevation of the runway ends but no more than 5000 feet beyond the end of the runway.

(5) Obstruction removal is limited to the airport category shown on the approved ALP.

(6) Rebuilding a facility in a new location is only eligible if the facility meets the requirements in Paragraph 3-74.

(7) Obstruction removal within runway safety areas must meet the requirements and use the work codes in Appendix G.
An RNAV approach that is clear of obstructions. SP OT VI
g. Obstructions (Light, Mark, or Remove)

(For Hazards)
(1) Per 49 USC § 47102(3)(A)(i) and § 47102(4), the removal, lowering, relocating, lighting, and marking of airport hazards is eligible.

(2) Per FAA policy, the object must be determined by the FAA Air Traffic Organization (ATO) to be a hazard (per the current version of FAA Order JO 7400.2, Procedures for Handling Airspace Matters), or would be a significant adverse operational impact if no action were taken (such as cancelling an approach, raising an approach minimum, or relocating the runway threshold).

(3) This code is limited to obstructions that have a written ATO hazard determination.

(4) Obstruction removal is limited to obtain 100 feet vertical clearance above the elevation of the runway ends but no more than 5000 feet beyond the end of the runway.
The elimination or mitigation of an airport hazard. SA OT OB
h. Obstructions (Light, Mark, or Remove)

(For Standards)
(1) Per 49 USC § 47102(3)(A)(i) and § 47102(4), the removal, lowering, relocating, lighting, and marking obstructions is eligible.

(2) Per FAA policy, obstructions are eligible standards projects based on the aircraft category on the approved ALP for that runway and may include:

(a) Airport Design Advisory Circular. Obstruction removal necessary to meet the object clearing criteria in the current version of Advisory Circular 150/5300-13, Airport Design. There are many surfaces and areas contained in the object clearing criteria. They include, but are not limited to, object free areas, runway and taxiway safety areas, obstacle free zones, threshold obstacle clearance surfaces, NAVAID critical areas, 14 CFR part 77 surfaces, approach and departure surfaces, runway protection zones, runway visibility zones, and inside the building restriction line. The ADO must consult the current version of the advisory circular to determine the current requirements.

(b) 14 CFR part 77 Surfaces. Per FAA policy, obstructions to the 14 CFR part 77 primary approach and 7:1 transitional surfaces.

(c) TERPS. Any of the United States Standard for Terminal Instrument Procedures (TERPS) requirements.

(3) Obstruction removal, lowering, lighting or marking is limited to obtain 100 feet vertical clearance above the elevation of the runway ends but no more than 5000 feet beyond the end of the runway.

(4) Rebuilding a facility in a new location is only eligible if the facility meets the requirements in Paragraph 3-74.

(5) Obstruction removal within runway safety areas must meet the requirements and use the work codes in Appendix G.

(6) Obstruction removal, lowering, lighting or marking is limited to the airport category shown on the approved ALP.

(7) Obstruction removal, lowering, lighting or marking to support RNAV approaches is covered elsewhere in this table and has a different work code.

(8) If the obstruction removal, lowering, lighting or marking is part of a larger AIP project, it can be included in the code for that project.
The elimination or mitigation of an airport obstruction. ST OT OB
i. Heliport/Helipad (Construct, Expand, Improve, Modify, Rehabilitate) (1) The ADO must contact AAS-100 for guidance.

(2) If the project meets the definition of a capacity project CA HE CO must be used. If the project meets the definition of a standards project, ST HE CO must be used. Appendix A contains these definitions.
A fully functional heliport or helipad that meets FAA design standards. CA HE CO

ST HE CO
j. Seaplane Base (Rehabilitate) (1) The ADO must contact AAS-100 for guidance. A fully functional seaplane base that meets FAA design standards. RE SB IM
k. Seaplane Base (Construct or Improve) (1) The ADO must contact AAS-100 for guidance. A fully functional seaplane base that meets FAA design standards. ST SB CO
l. Improve Airport Drainage (1) Stand-alone projects for drainage improvements are eligible to the extent that they are needed to serve areas eligible for AIP assistance.

(2) The ADO will determine the method of proration. Paragraph 3-97 contains proration examples.
Improved airport drainage that meets FAA design standards. ST OT IM
m. Improve Airport Erosion Control (1) Stand-alone projects for erosion control (blast pads, installation of sod, etc.) are eligible to the extent that they are needed to protect AIP eligible facilities.

(2) The ADO will determine the method of proration. Paragraph 3-97 contains proration examples.
A reduction in erosion. ST OT IM
n. Improve Airport Miscellaneous Improvements (1) The ADO must not use this work code without first consulting with APP-520 or APP-400 and obtaining their approval. N/A ST OT IM

*The official list of work codes can be obtained from the automated AIP system.

Appendix E. Planning Projects

E-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

E-2. Conditions for Posting Planning Documents on the Internet.

If the sponsor, or a sponsor’s consultant, posts an AIP funded planning document on the internet, it is FAA policy that the public must not be required to register to view or download the document (even if the document is posted elsewhere without registration requirements). This is because the collection of personal data may be construed by the public as a surveillance tool for the airport, which may intimidate members of the public, dissuading them from reviewing the document. In addition 5 USC § 552a, The Privacy Act of 1974, prohibits the unnecessary collection of private data by Federal agencies.

E-3. Disclaimer for AIP Funded Planning Studies.

The sponsor must include the following disclaimer and the AIP grant number on the inside front cover of each final narrative report of all AIP funded planning studies.

“The preparation of this document was supported in part with financial assistance through the Airport Improvement Program from the Federal Aviation Administration (AIP Grant Number ________) as provided under Title 49 USC § 47104. The contents do not necessarily reflect the official views or policy of the FAA. Acceptance of this report by the FAA does not in any way constitute a commitment on the part of the United States to participate in any development depicted therein, nor does it indicate that the proposed development is environmentally acceptable in accordance with appropriate public laws.”

E-4. Stand-Alone Master Plan and System Plan (Metropolitan and State) Projects.

Table E-1 contains a list of studies that can be funded as stand-alone planning projects if the ADO determines that they are both necessary and reasonable in scope.

Table E-1 Eligible Stand-Alone Planning Projects
Eligible stand-alone projects (coded PL PL MS unless otherwise noted) are limited to…
a. Airport Certification Manuals. Only the initial airport certification manual developed for a newly certificated 14 CFR part 139 airport with scheduled air carrier service greater than 9 seats and/or unscheduled air carrier service greater than 30 passenger seats is eligible. Per APP-500 policy, this is considered planning because it is necessary for the airport to begin operations. Updates are considered operational, not planning.
b. Airport Energy Efficiency Assessment. See Appendix S.
c. Airport Sustainability Plans. If done as a separate stand-alone study outside of a master plan, see Appendix S.
d. Develop Environmental Management System (EMS).See Appendix S.
e. Drainage Studies. See Appendix S.
f. Disparity Studies. The purpose of a disparity study is to determine whether there is evidence of discrimination or its effects showing a compelling need for an airport sponsor’s DBE program. A disparity study will show whether there is evidence of discrimination supporting the need for racebased measures. The ADO must contact the FAA Office of Civil Rights (ACR) as soon as this type of study is proposed. This can only be done as a state or metropolitan system planning project.
g. Environmental Studies. See Appendix S.
h. Feasibility Studies. These are eligible for establishing a new airport or replacing an existing airport.
i. Noise Compatibility Plan. See Appendix R.
j. Obstruction Surveys. This normally involves a survey for all of the runways on an airport and is performed to identify existing obstructions to the existing runway approaches. Aeronautical surveys for Area Navigation (RNAV) approaches have a separate work code as listed in Table E-2. This can be done as a state or metropolitan system planning project.
k. Pavement Management Programs. This is a two part planning process.

First, a pavement condition index (PCI) survey is conducted on eligible public use airfield pavements to establish the current condition of the airfield pavement.

Second, a pavement maintenance program is developed to address how the airfield pavement will be maintained or upgraded to acceptable PCI levels. The current version of Advisory Circular 150/5380-7, Airport Pavement Management Program, provides detailed guidance on the preparation of pavement management programs.

These two parts can be completed together, or under separate grants, however, the end result must be a pavement management program. Calculation of the pavement classification numbers (PCN) of the AIP eligible pavement at the airport per the current version of Advisory Circular 150/5335-5, Standardized Method of Reporting Airport Pavement Strength (PCN).is an allowable cost of a pavement management program.

The cost to incorporate this information into the airport layout plan is also allowable. This can be done as a state or metropolitan system planning project.
l. Initial Pavement Classification Number Study. A study for the initial determination of pavement classification numbers (PCN) of the AIP eligible pavement at the airport per the current version of Advisory Circular 150/5335-5, Standardized Method of Reporting Airport Pavement Strength (PCN) is eligible.

The cost to incorporate this information into the airport layout plan is also allowable. After this study is complete, the sponsor must complete PCN updates as part of their pavement management program or as part of the applicable pavement construction project, and must update the ALP accordingly. This can be done as a state or metropolitan system planning project.
m. Recycling Plans. These types of plans are eligible under 49 USC § 47102(5)(C) and include developing a plan for recycling and minimizing the generation of airport solid waste, consistent with applicable state and local recycling laws.

The cost of a waste audit is an allowable cost under these plans. The scope of these plans must be consistent with the current version of Guidance on Airport Recycling, Reuse, and Waste Reduction Plans (see Appendix B for link).
n. Site Selection Studies. A site selection study requires a completed ADO approved feasibility study.
o. State or Metropolitan System Plan Economic Impact Study. This can only be done as a state or metropolitan system planning project.
p. State or Metropolitan System Plan Multi-Airport Acoustical Counting Study. This can only be done as a state or metropolitan system planning project.
q. Terminal Area Narrative Reports. This may be appropriate if a terminal lacks capacity, has specific security needs, or if the aircraft fleet mix has changed at the airport impacting the terminal building space and use.

This is limited to the passenger terminal building and associated facilities (a Triggering Event Narrative Report is appropriate for all other facilities). In addition, only planning, not preliminary design, is eligible under this project.

The deliverable for a Terminal Area Narrative Report may result in an information revision to an ALP that identifies the airport’s future needs (as opposed to simply reflecting previous changes and/or existing conditions) rather than a formal revision reissuing a new ALP.
r. Triggering Event Narrative Reports and Airport Layout Plan. Not all airports need to do all of the elements identified in the current version of Advisory Circular 150/5070-6, Airport Master Plans.

In some cases, an ALP Narrative Report and an ALP update may suffice. In addition, if a specific area of an airport has changed functionality due to a triggering event, and a complete master plan is not necessary, a Triggering Event Narrative Report (and associated update to the airport layout plan) may be appropriate.

Examples of triggering activities that may drive a Triggering Event Narrative Report are the introduction of new carriers, increased or decreased cargo activity, increased or decreased general aviation activity, a proposed residential through-the-fence operation, new availability of building areas or property, or changes to a nearby airport.

The deliverable for a Triggering Event Narrative Report may result in an information revision to an ALP that identifies the airport’s future needs (as opposed to simply reflecting previous changes and/or existing conditions) rather than a formal revision reissuing a new ALP.
s. Other Specifically Approved Stand-Alone Projects. Stand-alone projects that APP-500 and APP-400 have approved in writing prior to the ADO approving the scope of the project, such as a state system plan general aviation security study, or a state or metropolitan system plan surface access study.

E-5. Project Requirements Table.

In addition to the information provided in the above paragraphs and the following table, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table E-2 Planning Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome WorkCode*
a. State System Plan Study (Conduct or Update) (1) The ADO must have determined that the plan is necessary and justified and approved the scope of work. The needs of airports differ in as many ways as there are airports.

Although similar airports with similar roles may share common characteristics, system planning looks at specific needs and assets at the airports in question.

Not all of the elements identified in the current version of Advisory Circular 150/5070-7, The Airport System Planning Process will be required for all airports in the system plan.

(2) APP-400 is available to answer questions regarding which elements in these plans are justified and how often the plans must be updated.

(3) Table E-1 contains a list of stand-alone planning projects. The specific stand-alone projects that can be conducted on a state system planning level are noted.

(4) The sponsor is a planning agency sponsor as defined in Table 2-4.
A completed state system plan that meets FAA advisory circular requirements and the ADO has officially accepted. PL PL ST (full state system plan study)

Note: The ADO must use Conduct/ Update Miscellaneous Study (PL PL MS) for eligible stand-alone projects in Paragraph E-3.
b. Metropolitan System Plan Study (Conduct or Update) (1) The ADO must have determined that the plan is necessary and justified and approved the scope of work. The needs of airports differ in as many ways as there are airports.

Although similar airports with similar roles may share common characteristics, metropolitan planning looks at specific needs and assets at the airports in question.

Not all of the elements identified in the current version of Advisory Circular 150/5070-7, The Airport System Planning Process will be required for all airports in the system plan.

(2) APP-400 is available to answer questions regarding which elements in these plans are justified and how often the plans must be updated.

(3) Table E-1 contains the list of planning elements that can be funded as stand-alone metropolitan system plan projects.

(4) The sponsor is a planning agency sponsor as defined in Table 2-4.
A completed metropolitan system plan that meets FAA advisory circular requirements and the ADO has officially accepted. PL PL ME (full metropolitan system plan study)

Note: The ADO must use Conduct/ Update Miscellaneous Study (PL PL MS) for eligible stand-alone projects in Paragraph E-3.
c. Airport Master Plan Study (Conduct or Update) (1) The ADO must have determined that the plan is necessary and justified and approved the scope of work. The needs of airports differ in as many ways as there are airports.

Although similar airports with similar roles may share common characteristics, master planning looks at the specific needs and assets at the airport in question.

Not all airports need to do all of the elements identified in the current version of Advisory Circular 150/5070-6, Airport Master Plans. In some cases, a narrative report and an ALP update may suffice.

(2) APP-400 is available to answer questions regarding which elements in these plans are justified and how often the plans must be updated.

(3) Table E-1 contains the list of planning elements that can be funded as stand-alone master plan projects.

(4) The ADO must contact APP-520 for sponsors that own multiple airports to issue a single grant to conduct master plans for the sponsor’s airports.

This is not considered a state or metropolitan system plan, but is similar to a state’s Various Locations grants.

APP-520 will advise the ADO whether or not the automated AIP system will allow tracking projects at different sponsor airports under one grant.

(5) Per 49 USC § 47102(5)(C), the master plan must address issues related to solid waste recycling at the airport. The scope of these plans must be consistent with the current version of Guidance on Airport Recycling, Reuse, and Waste Reduction Plans maintained by APP-400.

(6) Per 49 USC § 47102(5)(C), the FAA Modernization and Reform Act of 2012 (Public Law 112-95) also made the cost of a waste audit an allowable master planning element.

(7) Airport sustainability planning is also an allowable master planning element (or can be funded as a separate planning study as detailed in Appendix S.
An FAA accepted master plan and FAA approved airport layout plan that meet FAA advisory circular requirements and identifies the airport’s future needs (as opposed to simply reflecting previous changes and/or existing conditions). PL PL MA (full master plan study)

Note: The ADO must use Conduct/ Update Miscellaneous Study (PL PL MS) for eligible stand-alone projects in Paragraph E-3.
d. Conduct an Aeronautical Survey for Area Navigation (RNAV) Approach (1) APP-400 must have concurred with the survey (to avoid duplication of effort with the RNAV office) before the ADO can program the grant.

(2) The project may include the allowable cost to upload the data in the FAA Airports GIS program.

(3) The project must meet the minimum requirements of the current versions of FAA advisory circulars addressing airport surveys.
A set of electronic airport data that meets FAA standards. PL PL VI
e. Prepare SMS Manual (1) The project must meet the minimum requirements of the current version of FAA Order 5200.11, FAA Airports (ARP) Safety Management System.

(2) This is an eligible project for all airports, however, the ADO must determine that the project costs for airports that are not 14 CFR part 139 certificated are reasonable and reflect the scale and complexity of the airports infrastructure and operating environment.

(3) The sponsor must receive ADO approval of the scope of work, deliverables, and cost estimates in order for the costs to be considered allowable.

(4) Development of an SMS manual remains eligible even if an airport chooses to include the SMS manual in its Airport Certification Manual.

(5) Only the portions of the Implementation Plan and SMS Manual that outline the sponsor’s initiatives to enforce airport policies and procedures, such as rules and regulations, minimum standards, or other existing controls are allowable.

The plan can help establish safety protocols that affect users of the airport, but the costs associated with helping users of the airport manage their own operations are not allowable costs.

(6) If a sponsor chooses to include aspects in the SMS manual and implementation plan that are outside the control of the sponsor, the sponsor must provide proration calculations for the ADO to exclude these costs from the grant.

If the ADO does not agree with the prorated costs, the sponsor must revise the proration to address the concerns. The ADO also has the option to disallow the inclusion of these aspects from the SMS manual and implementation plan.

In addition, the requirements for including ineligible or non-AIP funded work in the contract in Paragraph 3-39 must be met.

(7) One time (initial) acquisition of airport-owned software applications that are specifically designed to support airport SMS implementation will be considered an allowable cost providing all of the following requirements are met:

(a) The sponsor has demonstrated to the ADO that the software is necessary for successful SMS implementation consistent with the size and complexity of the airport;

(b) The sponsor has completed the SMS manual for FAA review and acceptance before selecting or specifying computer software;

(c) The sponsor agrees to share sanitized data with the FAA;

(d) The software is a deliverable as part of the SMS planning study; and

(e) The allowable cost of the software is limited to $50,000 per airport sponsor, based on demonstrated justification.

(8) Other SMS activities and costs associated with a project must be included as project formulation costs or preliminary project costs for the grant for that project (see Paragraph 3-86 for additional details).
An SMS manual and implementation plan that meets the requirements of AAS-300. SA PL MS
f. Wildlife Hazard Assessments

(Or Wildlife Hazard Site Visits)
(1) AAS-300 has made a determination that Wildlife Hazard Assessments are justified at the following types of airports:

(a) General aviation (and reliever) airports that have 100 or more based jets.

(b) General aviation (and reliever) airports that have 75,000 or more annual operations.

(c) 14 CFR part 139 airports.

(2) AAS-300 has determined that general aviation (and reliever) airports with fewer than 100 based jets or less than 75,000 annual operations may only need a wildlife hazard site visit.

The regional office (or if delegated to the ADO, the ADO) will determine if a wildlife hazard assessment is needed (and therefore eligible) based on the results of the site visit.

(3) A wildlife hazard management plan must be based on the wildlife hazard assessment or site visit. This wildlife hazard management plan is eligible as part of the wildlife hazard assessment project.

Normally the wildlife hazard management plan is done within the same grant. However, the wildlife hazard management plan is eligible as a stand-alone grant as long as it is based on an FAA-approved wildlife hazard assessment.

(4) For a wildlife hazard site visit, the sponsor must submit the following information (referred to as an Adoption of Wildlife Hazard Site Visit Recommendations) to the ADO:

(a) The airport name, LOCID, city and state.

(b) The airport manager name and airport sponsor name.

(c) The biologist name, company/agency, and date of wildlife hazard site visit.

(d) A table that contains the list of accepted recommendation from the wildlife hazard site visit, who is responsible for carrying out the recommendation, and the frequency the recommendation will be performed.

(e) A table that contains the list of remaining recommendations not accepted from the wildlife hazard site visit and the reason each recommendation is not being accepted.

(f) A statement as follows: “I hereby certify that this is a complete and accurate listing of responses to the foregoing items and have prepared documentation attached hereto for any item marked “no”.”

(g) The signature of the sponsor’s designated official representative, the typed name and title of this representative, and the date of the signature. (5) The sponsor must first solicit qualifications from private sector firms under either the competitive proposal process or the small procurement process (see 2 CFR § 200.319 and 2 CFR § 200.320 in Appendix U for these requirements).

Since the U.S. Department of Agriculture (USDA) Wildlife Services (WS) is a governmental entity, the sponsor cannot include USDA WS as a qualified source under these procurement processes.

However, the sponsor can separately obtain price and schedule information from USDA WS. If the sponsor determines that the qualified sources cannot reasonably or expeditiously provide the services, the sponsor may opt to use USDA WS as long as the sponsor provides a written statement to the ADO to this affect prior to the grant application.

The ADO must include this written statement in the grant file.

(6) AAS-300 is available for specific guidance on the scope of wildlife hazard assessments and wildlife hazard sight visits.
For a wildlife hazard site visit, an FAA accepted wildlife hazard site visit report with an associated written sponsor adoption of the report recommendations.

For a wildlife hazard assessment, an FAA accepted wildlife hazard assessment mitigation plan with an associated wildlife hazard management plan.
PL PL WH

*The official list of work codes can be obtained from the automated AIP system.

Appendix F. New Airport Projects

F-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

F-2. Project Requirements Tables.

In addition to the information provided in the above paragraphs and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table F-1 New Airport Work Codes
If the project is justified as follows… Use the following work codes…
a. The project meets the definition of a capacity project (see Appendix A). CA NA CO
b. The project meets the definition of a standards project (see Appendix A). ST NA CO
Table F-2 New Airport Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Construct New Airport

(Replacement)
(1) The airport is needed to replace an existing airport that is unable to meet long-term aviation demand in the community because the existing airport is constrained.

(2) The ADO must notify APP-400 as soon the ADO becomes aware that a new airport is being considered and the ADO must keep APP-400 involved during the entire process.

(3) APP-400 concurrence and APP-1 approval are required prior to issuing a grant for the feasibility study. A feasibility study to replace a NPIAS airport can be undertaken without adding the new airport to the NPIAS.

(4) The ADO must not issue a grant for any work beyond the feasibility study unless all of the following criteria have been met:

(a) The sponsor has completed the feasibility study.

(b) The ADO has concurred that the feasibility study supports the replacement airport.

(c) ADO has obtained APP-400 concurrence and APP-1 approval prior to APP-400 adding the airport to the NPIAS.

(d) The sponsor has submitted a signed request for release of the existing airport that includes a plan on how the airport revenue will be reinvested in the new airport per the current version of FAA Order 5190.6, FAA Airport Compliance Manual.

(e) The FAA has approved the release of the old airport and the reinvestment plan. Generally, the existing airport will not be closed until the new airport is opened.

(f) The sponsor has agreed to permanently close the existing airport when the new airport opens.

(g) If the airport is a capacity project (historically, the majority have been standards projects), the benefit-cost analysis (BCA) requirements in Paragraph 3-14 have been met.

(5) Value Engineering must be used for new primary airports as outlined in Paragraph 3-54.

(6) Per 49 USC § 47106(c)(1)(A)(i), the sponsor must provide an opportunity for a public hearing as part of meeting the environmental requirements.

(7) The justifications for AIP funded airport facilities (runways, terminals, etc.) must follow the guidelines in the specific tables for those items.
A new airport constructed to FAA design standards. ST NA CO

CA NA CO

See Table F-1 for the correct work code.
b. Construct New Airport

(Supplemental)
(1) The airport is needed to supplement an existing NPIAS airport and the existing NPIAS airport stays open. It would be unusual to have a new general aviation airport supplement an existing general aviation airport. Typically, a supplemental airport would be considered to provide additional capacity for a large, medium, or small hub airport.

(2) The ADO must notify APP-400 as soon the ADO becomes aware that a new airport is being considered and the ADO must keep APP-400 involved during the entire process.

(3) The ADO has obtained APP-400 concurrence and APP-1 approval prior to issuing a grant for the feasibility study. A feasibility study to supplement a NPIAS airport can be undertaken without adding the new airport to the NPIAS.

(4) The ADO must not issue a grant for any work beyond the feasibility study unless all of the following criteria have been met:

(a) The sponsor has completed the feasibility study.

(b) The ADO has concurred that the feasibility study supports the replacement airport.

(c) ADO has obtained APP-400 concurrence and APP-1 approval prior to APP-400 adding the airport to the NPIAS.

(d) The benefit-cost analysis (BCA) requirements in Paragraph 3-14 have been met.

(5) Value Engineering must be used for new primary airports as outlined in Paragraph 3-54.

(6) Per 49 USC § 47106(c)(1)(A)(i), the sponsor must provide an opportunity for a public hearing as part of meeting the environmental requirements.

(7) The justifications for AIP funded airport facilities (runways, terminals, etc.) must follow the guidelines in the specific tables for those items.
A new airport constructed to FAA design standards. CA NA CO
c. Construct New Airport

(Additional)
(1) The community must not have an existing NPIAS airport.

(2) The ADO must notify APP-400 as soon the ADO becomes aware that a new airport is being considered and the ADO must keep APP-400 involved during the entire process.

(3) The ADO has obtained APP-400 concurrence and APP-1 approval that an additional NPIAS location is feasible and would meet entry criteria. APP-400 must identify the additional airport in the NPIAS before the ADO can program any grants for the additional airport. A feasibility study can be undertaken once the new location is added to the NPIAS.

(4) The ADO must not program a grant for any work other than a feasibility study until all of the following criteria have been met:

(a) The sponsor has completed the feasibility study.

(b) The ADO has concurred that the feasibility study supports the replacement airport.

(c) ADO has obtained APP-400 concurrence and APP-1 approval prior to APP-400 adding the airport to the NPIAS.

(d) The benefit-cost analysis (BCA) requirements in Paragraph 3-14 are met.

(5) Value Engineering must be used for new primary airports as outlined in Paragraph 3-54.

(6) Per 49 USC § 47106(c)(1)(A)(i), the sponsor must provide an opportunity for a public hearing as part of meeting the environmental requirements.

(7) The justifications for AIP funded airport facilities (runways, terminals, etc.) must follow the guidelines in the specific tables for those items.
A new airport constructed to FAA design standards. CA NA CO
d. Acquire Existing Airport (1) These requirements are typically for a public sponsor acquiring a privately-owned airport or possibly another public-owned airport.

(2) These requirements do not apply to airports under the Military Airport Program (those requirements are contained in Section 3 of Chapter 6).

(3) The ADO must notify APP-400 as soon the ADO becomes aware that acquisition is being considered and the ADO must keep APP-400 involved during the entire process.

(4) If the airport is not in the NPIAS (including non-NPIAS former military or joint use airports not in the Military Airport Program), the ADO must obtain APP-400 concurrence and APP-1 approval prior to issuing a grant for the feasibility study.

A feasibility study to replace a NPIAS airport can be undertaken without adding the new airport to the NPIAS. If the airport is in the NPIAS, a feasibility study is not required.

(5) The ADO must not issue a grant for any work beyond the feasibility study unless all of the following criteria have been met:

(a) The sponsor has completed the feasibility study.

(b) The ADO has concurred that the feasibility study supports the replacement airport.

(c) If the airport is not in the NPIAS, the ADO has obtained APP-400 concurrence and APP-1 approval prior to APP-400 adding the airport to the NPIAS.

(d) If the existing airport is in the NPIAS, the ADO has obtained ACO-100 and APP-500 approval prior to programming the grant.

(6) The justifications for AIP funded acquisition of the airport facilities (runways, terminals, etc.) must follow the guidelines in the specific tables for those items.

(7) If the airport is a former military or joint use airport (not in the Military Airport Program), the AIP eligible work is limited to buying out the non-federal tenants for eligible facilities.

This is because the federally owned portions of the airport must be transferred, not purchased. The ADO must contact APP-400 and obtain additional guidance on this process.
Acquisition of an airport that meets, or can be upgraded to meet FAA standards. ST NA AQ

*The current list of work codes can be obtained from the automated AIP system.

Appendix G. Runway Projects

G-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

G-2. Secondary, Crosswind and Additional Runways.

Per FAA policy, the ADO can only fund a single runway at an airport unless the ADO has made a specific determination that one or more crosswind or secondary runways are justified. The requirements, justification and eligibility for runways are listed in Table G-1.

Before planning a project on a runway, the ADO must determine the type of runway (primary, secondary, crosswind, or additional).

A runway that is not a primary runway, a secondary runway, or a crosswind runway is considered to be an additional runway. It is not unusual for a two-runway airport to have a primary runway and an additional runway, and no secondary or crosswind runway. This is because the ADO can only designate a runway as a secondary runway or crosswind runway if it meets the specific operating and justification parameters in Table G-1. Note that at busy airports, there may be more than one secondary and/or crosswind runways.

Additional runways are not eligible. Any development such as marking, lighting, or maintenance projects on an additional runway is also ineligible. There may be specific situations where additional runways may be considered a secondary or crosswind runway, however, APP-400 and APP-500 must concur with this reclassification.

Table G-1 Runway Types and Eligibility
For the following runway type… Must meet all of the following criteria… And is…
a. Primary Runway (1) A single runway at an airport is eligible for development consistent with FAA design and engineering standards. Eligible
b. Crosswind Runway (1) One of the following two criteria are met:

(a) For the first crosswind, the wind coverage on the primary runway less than 95%

(b) For more than one crosswind runway, the wind coverage on the primary runway less than 95% and the existing crosswind runway(s) are operating at 60% or more of their annual capacity, which is based on guidance developed by APP-400 as the threshold for considering when to plan a new runway.
Eligible if justified
c. Secondary Runway (1) There is more than one runway at the airport.

(2) This is not a crosswind runway.

(3) Either of the following:

(a) The primary runway (or primary runway AND all secondary runways) is operating at 60% or more of its annual capacity, which is based on guidance developed by APP-400 as the threshold for considering when to plan a new runway.

(b) APP-400 has made a specific determination that the runway is required for operation of the airfield.
Eligible if justified.
d. Additional Runway (1) There is more than one runway on the airport.

(2) The ADO has determined that this runway does not meet the requirements to be designated a crosswind runway.

(3) The ADO has determined that this runway does not meet the requirements to be designated a secondary runway.
Ineligible.

G-3. Pavement Condition Index Requirements for Airfield Pavement Projects.

For an airfield pavement project, the ADO may justify pavement work based on the thresholds listed in Table G-2. The ADO has the option to fund pavement work outside of these thresholds if the ADO determines that the work is justified based on engineering analysis and the ADO obtains concurrence from AAS-100. The definitions (and eligibility restrictions by airport type) for reconstruction, rehabilitation, and maintenance are defined in Paragraph 3-6.

Table G-2 Pavement Condition Index Requirements for Airfield Pavement Projects
For the following type of airfield pavement project… The pavement condition index (PCI) must be less than…
a. Reconstruction55 (Poor)
b. Rehabilitation 70 (Fair)
c. Maintenance N/A

G-4. Project Requirements Tables.

In addition to the information provided in the above paragraph and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table G-3 Distinctions between Construct, Extend, Widen, Strengthen, Rehabilitate, Shift, and Remove
Use the following description… If the project will…
a. Construct Build a brand new runway.
b. Extend Add additional length to a runway.
c. Widen Increase the pavement width.
d. Strengthen Will allow the pavement to accommodate a heavier class of aircraft.
e. Rehabilitate Improves the pavement for the same class of aircraft.
f. Shift Keep the same length, but move both ends of the runway.
g. Remove Only remove pavement.
Table G-4 Runway Work Codes
If the project is justified as follows… Use the following work codes…
a. The project meets the definition of a capacity project (see Appendix A). CA RW CO (construct)
CA RW EX (extend)
b. The project meets the definition of a standards project (see Appendix A). ST RW CO (construct)
ST RW CO (shift)
ST RW CO (remove)
ST RW IM (extend)
ST RW IM (widen)
ST RW IM (strengthen)
c. The project is justified in an environmental finding or 14 CFR part 150 program for environmental reasons. The project must be a condition of the environmental finding or 14 CFR part 150 program. EN RW CO (construct)
Table G-5 Runway Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Runway (Construct, Extend, Widen, Strengthen, Shift) (1) Where a study is required to demonstrate need, the FAA must have accepted the study and concurred with the need.

(2) For a runway capacity project intended to relieve scheduled commercial air service congestion or add capacity for scheduled commercial air service in metropolitan areas with a large or medium hub airport, the ADO must confirm consistency with a regional or state system plan document (if available) prior to programming the grant.

(3) The length, width, and strength of the pavement work must be based on critical aircraft justification per Paragraph 3-10. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(4) Runways must be planned, designed and constructed in accordance with current FAA standards, including clearing the approach slopes that will be used upon completion of the project.

For runway projects, object clearing and approach surfaces must be appropriate to the instrument approach procedures for that runway. If the approaches to a new runway or extended runway end will not be clear, the project does not meet FAA standards.

(5) If the runway has a non-standard runway protection zone (RPZ), the RPZ requirements per the current version of Advisory Circular 150/5300-13, Airport Design must be followed.

(6) Crosswind runways may be justified if the crosswind criteria of 95% wind coverage are not met on the primary runway. In addition, upon the number and type of aircraft that would use the crosswind in accordance with current APP-400 policy.

(7) The approval criteria and coding for turf and aggregate runways is the same as for paved runways. If this project is required because the FAA Office of Aviation Safety (AVS) has issued a finding that ultralight aircraft must be relocated from the paved runway, the ADO must contact AAS-100 for further guidance.

(8) Per 49 USC § 47106(c)(1)(A)(i), the sponsor must provide an opportunity for a public hearing for a new runway or major runway extension as part of meeting the environmental requirements.

(9) The project may include runway safety area improvements (stand-alone projects are also covered in this table) or other runway approach obstruction removal (stand-alone projects are covered in Appendix D).

(10) Runway lighting may be included for the new runway pavement as long as it meets the runway lighting requirements in Appendix J.

Per APP-520 policy, runway lighting for existing pavement must be coded as a lighting project unless the lighting is in pavement lighting (then it can coded under the runway project).

(11)The difference between construct, expand, modify, improve, rehabilitate, shift, and remove is listed in Table G-3.

(12) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
An operational runway constructed to FAA design standards, including required proper access, clear approaches, shoulders, turf along edge of shoulders, signs, marking, and lighting. CA RW CO

CA RW EX

ST RW CO

ST RW IM

EN RW CO

See Table G-4 for the correct work code.
b. Groove Runway (1) Grooving is eligible as a standalone project at a commercial service airport as either part of a project on the runway (code under that runway project) or as a standalone project.

(2) Grooving of a non-commercial service airport is justified for the following two situations:

(a) Runways over 5,000 feet.

(i) The runway must serve turbojet aircraft.

(ii) The grooving may either be included as part of the runway project (code under that runway project) or as a stand-alone project.

(b) Runways between 4,000 feet to 5,000 feet.

(i) There is either one or more based turbo jet aircraft or there is documented history of turbojet aircraft operations on that runway.

(ii) The grooving is only eligible as part of runway rehabilitation, reconstruction, or construction project (code under that runway project). Grooving is not eligible as a stand-alone project.

(3) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
An operational runway with surface treatment. SP RW FR
c. Rehabilitate Runway

(Maintenance)
(1) Maintenance is generally ineligible. However, per 49 USC § 47102(3)(H), the exception is routine runway, taxiway, or apron maintenance at nonhub primary airports and nonprimary airports.

Paragraph 3-6 contains additional guidance and examples.

(2) It is FAA policy that the sponsor must be unable to fund maintenance with its own resources. One way to satisfy this requirement is for the sponsor to submit a written certification to the ADO to this affect prior to the sponsor executing the grant.

(3) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
An operational runway. RE RW IM
d. Rehabilitate Runway

(Seal Coat or Resealing of Joints in Concrete Pavement)
(1) A major portion of the pavement is being addressed.

(2) The ADO concurs with the need for the project.

(3) The sponsor has satisfactorily complied with grant assurances on pavement maintenance.

(4) The length and width of the pavement work must be based on critical aircraft justification per Paragraph 3-10. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(5) Paragraph 3-6 contains additional guidance (including useful life requirements) and examples that the ADO must use to differentiate between maintenance, rehabilitation, and reconstruction.

(6) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
A fully functional runway with extended useful life. RE RW IM
e. Rehabilitate Runway

(Rehabilitate, Reconstruct)
(1) The work must be supported a Pavement Condition Index (PCI) or planning study. The ADO has the option to consult AAS-100 for assistance with justifying pavement rehabilitation or reconstruction.

(2) The length and width of the pavement work must be based on critical aircraft justification per Paragraph 3-10. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(3) Paragraph 3-6 contains additional guidance (including useful life requirements and that turf and aggregate runway rehabilitation is eligible) and examples that the ADO must use to differentiate between maintenance, rehabilitation, and reconstruction.

(4) The pavement must not have been reconstructed within the last 20 years, rehabilitated within the last 10 years or resealed within the last 3 years except as allowed in Paragraph 3-12.

(5) The project may include runway safety area improvements (stand-alone projects are also covered in this table) or other runway approach obstruction removal (stand-alone projects are covered in Appendix D).

(6) Only in pavement runway lighting can be included in the rehabilitation project (as long as it meets the runway lighting requirements in Appendix J). Per APP-520 policy, all other runway lighting must be separated into a stand-alone project.

(7) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
A fully functional runway with extended useful life. RE RW IM
f. Construct, Extend or Improve a Runway Safety Area

(For 14 CFR part 139 certificated runways only)
(1) The project must be supported by a regional determination under the current version of FAA Order 5200.8, Runway Safety Area Program, to establish a safety area.

(2) Engineered Material Arresting Systems (EMAS) must be supported by a runway safety area determination.

(3) The only EMAS rehabilitation that is eligible is lid rehabilitation for EMAS installed with AIP funds prior to fiscal year 2007. This is because the EMAS installed before 2007 did not have the plastic lids. After fiscal year 2007, the manufacturer began fully encasing the blocks, which eliminated the need for lid replacement.

(4) EMAS panels that were destroyed by an aircraft are eligible only if the sponsor can prove that there is no other avenue, such as insurance, for funding the replacement.

(5) Where an airport is improving its RSA and existing FAA-owned equipment will be impacted by the airport’s RSA project, it is FAA policy that the ADO may be able to include the relocation of the FAA-owned equipment as part of the AIP project.

However, where the airport’s RSA meets the RSA standards except for FAA-owned equipment, it is FAA policy that the Air Traffic Organization is responsible for relocating and/modifying the FAA-owned equipment in the RSAs.

This policy is contained in the Relocation of FAA-owned Equipment from Runway Safety Areas jointly signed on July 31, 2012 by ARP-1 and AJO-0.

(6) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
A runway safety area that incorporates all of the improvements outlined in the regional determination. SA RW SF
g. Construct, Extend or Improve a Runway Safety Area

(For runways that are not 14 CFR part 139 certificated)
(1) The project must be supported by a regional determination under the current version of FAA Order 5200.8, Runway Safety Area Program, to establish a safety area.

(2) Engineered Material Arresting Systems (EMAS) must be supported by a runway safety area determination.

(3) The only EMAS rehabilitation that is eligible is lid rehabilitation (encasing the top of the blocks) for EMAS installed with AIP funds prior to fiscal year 2007. This is because the EMAS installed before 2007 did not have the plastic lids. After fiscal year 2007, the manufacturer began fully encasing the blocks, which eliminated the need for lid replacement.

(4) EMAS panel replacement for panels that were destroyed by an aircraft is eligible if the sponsor has determined that there is no other avenue, such as insurance, for funding the replacement.

(5) Where an airport is improving its RSA and existing FAA-owned equipment will be impacted by the airport’s RSA project, it is FAA policy that the ADO may be able to include the relocation of the FAA-owned equipment as part of the AIP project.

However, where the airport’s RSA meets the RSA standards except for FAA-owned equipment, it is FAA policy that the Air Traffic Organization is responsible for relocating and/modifying the FAA-owned equipment in the RSAs.

This policy is contained in the Relocation of FAA-owned Equipment from Runway Safety Areas jointly signed on July 31, 2012 by ARP-1 and AJO-0.

(6) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
A runway safety area that incorporates all of the improvements outlined in the regional determination. ST RW SF
h. Runway Surface Condition Sensors (1) The runway sensors must transit airfield conditions so that the timing of chemical applications may be determined.

(2) The ADO must have concurred that the local weather conditions justify the need for the equipment.

(3) The purpose is to ensure that aircraft can land and take off safely. Therefore, only runways are eligible for sensors.

(4) Based on the current version of Advisory Circular 150/5200-30, Airport Field Condition Assessments and Winter Operations Safety, three or four sensors are normally sufficient for a runway. The ADO has the option to fund additional sensors if the ADO determines additional sensors are justified.

(5) The runway surface condition sensor system is limited to a system that reports:

(a) Runway surface temperature (actual temperature of pavement at the sampling site),

(b) Presence or absence of moisture (dry pavement - no perceptible moisture, or wet pavement – perceptible moisture on surface),

(c) Pre-ice conditions – advance alert of incipient ice formation prior to actual formation on the pavement,

(d) Actual ice – visible or otherwise detectable ice on pavement; and

(e) Ambient air temperature – at ground level in the vicinity of the runway.

(6) The runway must be eligible and justified as a primary, crosswind, or secondary runway per the requirements in Paragraph G-2.
An operational system that successfully transmits runway conditions, indicates when chemical treatment must be applied, and meets FAA standards. ST RW SR

*The current list of work codes can be obtained from the automated AIP system.

Appendix H. Taxiway Projects

H-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

H-2. Taxiway Types (and Associated AIP Funding Rules).

AIP participation in a taxiway is limited to the requirements of the current version of Advisory Circular 150/5320-6, Airport Pavement Design and Evaluation, and the current version of Advisory Circular 150/5300-13, Airport Design. The common forms of taxiway pavements projects are listed below. For the purposes of this Handbook, the term taxiway refers to any of these types of projects so long as they are public-use.

a. Parallel and Partial Parallel Taxiway. A full length parallel taxiway connected to each end of a runway. If the runway is eligible and justified, then a parallel taxiway is eligible. A partial parallel taxiway is also eligible if the runway is eligible and justified and is normally considered at low activity airports where cost to construct the full length is excessive and the benefits do not warrant a full parallel taxiway.

b. Turnarounds. Turnarounds (also referred to as teacups) are small taxiways constructed at the end of a runway so that aircraft can change direction on the runway. A turnaround is eligible if the runway is eligible and justified. They are normally constructed at low activity airports when it is not economically feasible to construct a parallel or partial taxiway.

c. Holding Bays. Holding bays (also referred to as run-up pad and holding pads) are a paved area off the taxiway near the end of the runway where aircraft can conduct their final preflight activities or can wait for departure clearance or tower instruction. A holding bay is eligible if the runway is eligible and justified and the holding bay meets the justification requirements in the current version of Advisory Circular 150/5300-13, Airport Design.

d. Other Taxiways. A taxiway is a defined path for taxing of aircraft from one point to another. Taxiways on, or connecting to, aprons available for use by the general public are eligible.

e. Taxilanes. Taxilanes are used for access between taxiways and aircraft parking positions or buildings/hangars. They are outside the aircraft movement area controlled by the tower (if a towered airport). Public use taxilanes which serve multiple buildings are eligible using the same funding rules that apply to taxiways. A taxiway or taxilane that exclusively serves a hangar or building is considered part of the hangar or building (and the associated hangar or building eligibility and funding rules apply).

f. Converting Runways to Taxiways. A project to convert an ineligible runway to a taxiway will be eligible only if the ADO has determined that the taxiway is justified based on an operational need and the costs are reasonable to convert the pavement. Such projects must be identified on the airport layout plan and the pavement markings must be modified to meet FAA design standards.

H-3. Pavement Condition Index Requirements for Airfield Pavement Projects.

For an airfield pavement project, the ADO may justify pavement work based on the thresholds listed in Table H-1. The ADO has the option to fund pavement work outside of these thresholds if the ADO determines that the work is justified based on engineering analysis and the ADO obtains concurrence from AAS-100. The definitions (and eligibility restrictions by airport type) for reconstruction, rehabilitation, and maintenance are defined in Paragraph 3-6.

Table H-1. Pavement Condition Index Requirements for Airfield Pavement Projects
For the following type of airfield pavement project… The pavement condition index (PCI) must be less than…
a. Reconstruction 55 (Poor)
b. Rehabilitation 70 (Fair)
c. Maintenance N/A

H-4. Project Requirements Tables.

In addition to the information provided in the above paragraphs and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table H-2 Distinctions between Construct, Extend, Widen, Strengthen, Rehabilitate, Shift, and Remove

Use the following description… If the project will…
a. Construct Build a brand new taxiway.
b. Extend Add additional length to a taxiway.
c. Widen Increase the pavement width.
d. Strengthen Will allow the pavement to accommodate a heavier class of aircraft.
e. Rehabilitate Improves the pavement for the same class of aircraft.
f. Shift Keep the same length, but move both ends of the taxiway.
g. Remove Only remove pavement.
Table H-3 Taxiway Work Codes
If the project is justified as follows… Use the following work codes…
a. The project meets the definition of a capacity project
(see Appendix A).
CA TW CO (construct)
CA TW EX (extend)
b. The project meets the definition of a standards project
(see Appendix A).
ST TW CO (construct)
ST TW CO (shift)
ST TW CO (remove)
ST TW IM (extend)
ST TW IM (widen)
ST TW IM (strengthen)
RE TW IM (rehabilitate)
c. The project is justified in an environmental finding or 14 CFR part 150 program for environmental reasons. The project must be a condition of the environmental finding or 14 CFR part 150 program. EN TW CO (construct)
Table H-4 Taxiway Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Taxiway (Construct, Extend, Widen, Strengthen, Shift) (1) The taxiway must connect runways, taxiways, public-use aprons, or buildings eligible at that airport.

(2) The length, width, and strength of the pavement work must be based on critical aircraft justification per Paragraph 3-11. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(3) Taxiway lighting may be included for the new taxiway pavement as long as it meets the taxiway lighting requirements in Appendix J. Per APP-520 policy, taxiway lighting for existing pavement must be separated into a stand-alone project.

(4) The difference between construct, expand, modify, improve, rehabilitate, shift, and remove is listed in Table H-2.

(5) Construction of parallel taxiways to support an approved Area Navigation (RNAV) approach is covered elsewhere in this table and has a different work code.

(6) A taxiway or taxilane that exclusively serves a building is considered part of the building (and the associated building funding rules apply).
An operational taxiway constructed to FAA design standards, including required proper access, shoulders, turf along edge of shoulders, signs, taxiway safety areas, marking, and lighting. CA TW CO

CA TW EX

EN TW CO

ST TW CO

ST TW IM

See Table H-3 for the correct work code.
Install Infrastructure to support Area Navigation (RNAV) Approach

(Parallel Taxiway)
(1) This is for a parallel taxiway required for an approved RNAV approach.

(2) An approved RNAV approach is not sufficient justification for a parallel taxiway. The length, width, and strength of the pavement work must still be based on critical aircraft justification per Paragraph 3-11.
An operational taxiway constructed to FAA design standards, including required proper access, shoulders, turf along edge of shoulders, signs, marking, and taxiway lighting. SP OT VI
c. Rehabilitate Taxiway

(Maintenance)
(1) Maintenance is generally ineligible. However, per 49 USC § 47102(3)(H), the exception is routine runway, taxiway, or apron pavement maintenance at nonhub primary airports and nonprimary airports. Paragraph 3-6 contains additional guidance and examples.

(2) It is FAA policy that the sponsor must be unable to fund maintenance with its own resources.

(3) The taxiway must connect runways, taxiways, public-use aprons, or buildings eligible at that airport.

(4) A taxiway or taxilane that exclusively serves a building is considered part of the building (and the associated building funding rules apply).
An operational taxiway. RE TW IM
d. Rehabilitate Taxiway

(Seal Coat or Resealing of Joints in Concrete Pavement)
(1) A major portion of the pavement is being addressed.

(2) The ADO concurs with the need for the project.

(3) The sponsor has satisfactorily complied with grant assurances on pavement maintenance.

(4) The length and width of the pavement work must be based on critical aircraft justification per Paragraph 3-11. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(5) Paragraph 3-6 contains additional guidance (including useful life requirements) and examples that the ADO must use to differentiate between maintenance, rehabilitation, and reconstruction.

(6) The taxiway must connect runways, taxiways, public-use aprons, or buildings eligible at that airport.

(7) A taxiway or taxilane that exclusively serves a building is considered part of the building (and the associated building funding rules apply).
A fully functional taxiway with extended useful life. RE TW IM
e. Rehabilitate Taxiway

(Rehabilitate or Reconstruct)
(1) The work must be supported a Pavement Condition Index (PCI) or planning study. The ADO has the option to consult AAS-100 for assistance with justifying pavement rehabilitation or reconstruction.

(2) The length and width of the pavement work must be based on critical aircraft justification per Paragraph 3-11. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(3) Paragraph 3-6 contains additional guidance (including useful life requirements) and examples that the ADO must use to differentiate between pavement maintenance, rehabilitation, and reconstruction.

(4) The pavement must not have been reconstructed within the last 20 years, rehabilitated within the last 10 years or resealed within the last 3 years except as allowed in Paragraph 3-12.

(5) The taxiway must connect runways, taxiways, public-use aprons, or buildings eligible at that airport.

(6) Only in-pavement taxiway lighting can be included in the rehabilitation project (as long as it meets the taxiway lighting requirements in Appendix J). Per APP-520 policy, all other taxiway lighting must be separated into a stand-alone project.

(7) A taxiway or taxilane that exclusively serves a building is considered part of the building (and the associated building funding rules apply).
A fully functional taxiway with extended useful life. RE TW IM

*The official list of work codes can be obtained from the automated AIP system.

Appendix I. Apron Projects

I-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

I-2. Non-Exclusive Use Available for Public Aircraft Parking/Access.

Apron pavement is only eligible if it will be used for aircraft parking or as a compass calibration pad and is not exclusive use (see Appendix A for a definition and references on exclusive use). A good rule of thumb is that the public should be able to park on the pavement in order for it to be considered eligible apron area.

The portion of the apron project that will be used for support areas, such as service vehicle parking and fixed based operator equipment storage, is not eligible.

I-3. Apron in Front of a Building.

For apron pavement immediately in front of a building, per FAA policy, the 50 feet of pavement in front of the building is considered part of that building (and the associated building eligibility and funding building apply). The rest of the apron pavement in front of a building is only eligible as apron work if is available for public aircraft parking and is not exclusive use.

I-4. Pavement Condition Index Requirements for Airfield Pavement Projects.

For an airfield pavement project, the ADO may justify pavement work based on the thresholds listed in Table I-1. The ADO has the option to fund pavement work outside of these thresholds if the ADO determines that the work is justified based on engineering analysis and the ADO obtains concurrence from AAS-100. The definitions (and eligibility restrictions by airport type) for reconstruction, rehabilitation, and maintenance are defined in Paragraph 3-6.

Table I-1 Pavement Condition Index Requirements for Airfield Pavement Projects
For the following type of airfield pavement project… The pavement condition index (PCI) must be less than…
a. Reconstruction 55 (Poor)
b. Rehabilitation 70 (Fair)
c. Seal Coat or Resealing of Joints in Concrete Pavement N/A
d. Maintenance N/A

I-5. Project Requirements Tables.

In addition to the information provided in the above paragraphs and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table I-2 Distinctions between Construct, Expand, Strengthen, and Rehabilitate
Use the following description… If the project will…
a. Construct Build a brand new apron.
b. Extend Add additional area to an apron.
c. Widen Add additional area to an apron by widening the apron.
d. Strengthen Will allow the pavement to accommodate a heavier class of aircraft.
e. Rehabilitate Improves the pavement for the same class of aircraft.
Table I-3 Apron Work Codes
If the project is justified as follows… Use the following work codes…
a. The project meets the definition of a capacity project (see Appendix A). CA AP CO (construct)
CA AP EX (expand)
b. The project meets the definition of a standards project (see Appendix A). ST AP CO (construct)
ST AP IM (expand)
ST AP IM (strengthen)
RE AP IM (rehabilitate)
c. The project is justified in an environmental finding or 14 CFR part 150 program for environmental reasons. The project must be a condition of the environmental finding or 14 CFR part 150 program. EN AP CO (construct)
Table I-4 Apron Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Apron

(Construct, Expand, Strengthen)
(1) The project cannot include pavement for auto parking or other non-aeronautical uses.

(2) The project cannot include pavement for exclusive use areas (must be open to the public to park their aircraft).

(3) Cargo aprons are limited use and the public is not allowed to freely use the apron. However, apron for freight or cargo activity is eligible if the opportunity to compete for use of the apron is available.
An operational apron constructed to FAA design standards, including required proper access, shoulders, turf along edge of shoulders, signs, marking, and lighting. CA AP CO
CA AP EX
ST AP CO
ST AP IM
EN AP CO

See Table I-3 for the correct work code.
b. Rehabilitate Apron

(Maintenance)
(1) The project cannot include pavement for auto parking or other non-aeronautical uses.

(2) The project cannot include pavement for exclusive use areas (must be open to the public to park their aircraft).

(3) Maintenance is generally ineligible. However, per 49 USC § 47102(3)(H), the exception is routine runway, taxiway, or apron maintenance at nonhub primary airports and nonprimary airports. Paragraph 3-6 contains additional guidance and examples.

(4) It is FAA policy that the sponsor must be unable to fund maintenance with its own resources.
An operational apron. RE AP IM
c. Rehabilitate Apron

(Seal Coat or Resealing of Joints in Concrete Pavement)
(1) A major portion of the pavement is being addressed.

(2) The ADO concurs with the need for the project.

(3) The sponsor has satisfactorily complied with grant assurances on pavement maintenance.

(4) The project must not include pavement for auto parking or other non-aeronautical uses.

(5) The project must not include pavement for exclusive use areas (must be open to the public to park their aircraft).

(6) The length and width of the pavement work must be based on critical aircraft justification per Paragraph 3-11. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(7) Paragraph 3-6 contains additional guidance (including useful life requirements) and examples that the ADO must use to differentiate between pavement maintenance, rehabilitation, and reconstruction.
A fully functional apron with extended useful life. RE AP IM
d. Rehabilitate Apron

(Rehabilitate or Reconstruct)
(1) The project must not include pavement for auto parking or other non-aeronautical uses.

(2) The project must not include pavement for exclusive use areas (must be open to the public to park their aircraft).

(3) The work must be supported a Pavement Condition Index (PCI) or planning study. The ADO has the option to consult AAS-100 for assistance with justifying pavement rehabilitation or reconstruction.

(4) The length and width of the pavement work must be based on critical aircraft justification per Paragraph 3-11. The exception is if the project meets the requirements in Paragraph 3-24 to exceed FAA design standards.

(5) Paragraph 3-6 contains additional guidance (including useful life requirements) and examples that the ADO must use to differentiate between maintenance, rehabilitation, and reconstruction.

(6) The pavement must not have been reconstructed within the last 20 years, rehabilitated within the last 10 years or resealed within the last 3 years except as allowed in Paragraph 3-12.
A fully functional apron with extended useful life. RE AP IM

*The official list of work codes can be obtained from the automated AIP system.

Appendix J. Airfield Marking, Signage, and Lighting Projects

J-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

J-2. Eligibility of Pavement Marking as a Stand-Alone Project.

The eligibility of pavement markings as a stand-alone project depends on the airport type as shown in Table J-1.

Table J-1 Eligibility of Stand-Alone Projects for New and Faded Marking
For the following airport types… Stand-alone projects for new or faded marking are…
a. Large, medium, and small hub Not Allowed. This includes new marking due to a change in magnetic variation. In addition, the replacement of faded markings is not eligible (considered maintenance) because 14 CFR part 139.311 includes replacing faded or inaccurate markings as a maintenance activity at an airport.
b. Nonhub primary and nonprimary Allowed. The project must be coded as runway, taxiway, or apron rehabilitation (maintenance).

J-3. Eligibility of Sign Panel Replacement as a Stand-Alone Project.

The eligibility of sign panel replacement as a stand-alone project is included in Table J-2.

Table J-2 Eligibility of Stand-Alone Projects for Sign Panel Replacement
For the following situation… Stand-alone projects for sign panel replacement are…
a. Replacement of sign panels due to a runway designation change based on magnetic variation as required by the current version of FAA Order 8260.19, Flight Procedures and Airspace. Eligible. Note that the requirements in the current version of Advisory Circular 150-5340-1 are not sufficient justification for this type of project. The designation change must be required by the current version of FAA Order 8260.19, Flight Procedures and Airspace.

The correct code for this project is that of a signage project under Table J-4. Also, since this may be a small grant, the ADO must ensure that the minimum grant amount requirement in Paragraph 5-20 are be met.
b. Replacement of sign panels required by a change in airfield geometry or new sign panel specifications. Eligible. Since this may be a small stand-alone grant, the ADO must ensure that the minimum grant amount requirement in Paragraph 5-20 are be met.

The correct code for this project is that of a signage project under Table J-4. If the project is being done concurrently with an associated AIP funded runway, taxiway, or apron project, the costs can be include and coded under the runway, taxiway, or apron project.
c. Replacement of faded sign panels associated with an AIP funded runway, taxiway, or apron project. Not Eligible (but can be funded as an allowable cost). The cost to replace faded sign panels is considered to be incidental allowable costs if it is included in the grant for the runway, taxiway, or apron project. In this case, the ADO must include the costs under the project code for the runway, taxiway, or apron project.
d. Replacement of faded sign panels. Not Eligible. Stand-alone projects to replace faded sign panels are considered a maintenance activity.

J-4. Airport Lighting Control Panel Modification.

Airfield lighting projects may include modification of the airport lighting control panel in the air traffic control tower to accommodate the changes to the airfield lighting. The panel modification is considered a noncompetitive proposal must follow the additional requirements that are located in Paragraphs 3-36 and U-18.

J-5. Certified Lighting Equipment for which There is Only a Single Manufacturer.

Airfield lighting projects may include acquisition of certified airfield lighting equipment for which there is only a single manufacturer. The procurement of this equipment is considered a noncompetitive proposal and must follow the additional requirements that are found in in Paragraphs 3-36 and U-18.

J-6. Lighting for Pavement that Exceeds FAA Design Standards.

For pavements that exceed FAA design standards width, the ADO must not fund installation of edge lighting to the extra width unless the sponsor agrees that it will not seek pavement rehabilitation funds for 10 years (which is the useful life of a lighting project).

The sponsor must also agree that if pavement rehabilitation is needed within the 10 year period, the pavement will be rehabilitated to the FAA design standards width and the cost of removing and replacing the airfield lighting to the corrected width will be funded with non-AIP funds.

The ADO must include a special condition in the associated grant outlining this requirement. The automated AIP system contains the current available special conditions.

J-7. Project Requirements Table.

In addition to the information provided in the above paragraphs and the following table, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table J-3 Airfield Marking, Signage, and Lighting Work Codes
If the project is justified as follows… Use the following work codes…
a. The project is one of the special emphasis items listed in 49 CFR § 47101(f) for a primary or secondary runway or taxiway at a commercial service airport. SP XX XX
b. The project meets all of the associated eligibility requirements for that type of project and is needed to satisfy a safety issue identified by a 14 CFR part 139 violation, be identified by a 14 CFR part 139 certification inspector as needed runway incursion prevention measure, or a Runway Safety Action Team (RSAT) recommendation.

ADO must review the project to verify that it is eligible. For instance, runway marking is not eligible at a small hub airport and a 14 CFR part 139 violation does not make it eligible.
SA XX XX
c. The project is required to meet current FAA design standards in accordance with applicable advisory circulars and does not meet the above two sets of criteria. ST XX XX
Table J-4 Airfield Signage and Lighting Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Install Guidance Signs (1) If the airport is a 14 CFR part 139 certificated airport, the sponsor must have included the proposed signs in the sign plan, and the FAA must have reviewed and accepted the airport sign plan.

For non-certificated airports, the 14 CFR part 139 certification inspector and/or the ADO have the option to impose this same requirement.

(2) Lighted guidance signs must be supported by night or instrument approach operations.

(3) The associated pavement must be AIP eligible and justified.
Fully functional guidance signs that meets FAA standards. SP OT SG
SA OT SG
ST OT SG

See Table J-3 for the correct work code.
b. Install Runway Lighting (1) Installation of runway lighting may include modifications of the airfield electrical vault as part of the overall project.

(2) The lighting must be supported by night or instrument approach operations.

(3) Per APP-520 policy, taxiway and/or apron lighting must not be included in the runway lighting project. These projects must be separated into stand-alone projects.

(4) For centerline lights, the runway must meet at least one of the following criteria:

(a) Landing operations below 2,400 feet runway visual range ;

(b) Used by aircraft with approach speeds exceeding 140 knots or if the runway has a width greater than 170 feet; or

(c) Takeoff operations below 1,600 feet RVR.

(5) Touchdown zone lights are considered an integral part of a centerline lighting system.

(6) The associated pavement must be AIP eligible and justified.
A fully functional runway lighting system that meets FAA standards. SP RW LI
SA RW LI
ST RW LI

See Table J-3 for the correct work code.
c. Rehabilitate Runway Lighting (1) Rehabilitation of runway lights may include replacing a significant number of fixture lenses, transformers, and cabling. The main light base and conduit will normally remain in place.

(2) If new light bases and fixtures are installed for a major part of the runway, the project is no longer considered rehabilitation, and the appropriate install work code must be used instead.

(3) The lighting must be supported by night or instrument approach operations.

(4) Per APP-520 policy, taxiway and/or apron lighting must not be included in the runway lighting project. These projects must be separated into stand-alone projects.

(5) The rehabilitation must be supported by analysis demonstrating a need for rehabilitation and that rehabilitation will result in the useful life being extended by at least five years.

(6) The associated pavement must be AIP eligible and justified.
A fully functional runway lighting system that meets FAA standards. RE RW LI
d. Install Land and Hold Short Lights (1) Justification for land and hold short (LAHSO) lights requires an approved LAHSO plan per the current version of FAA Order 7110.118, Land and Hold Short Operations.

(2) The associated pavement must be AIP eligible and justified.
A runway lighting system that allows LAHSO at the airport. SP RW LI
SA RW LI
ST RW LI

See Table J-3 for the correct work code.
e. Install Runway Distance-To-Go Signs (1) Per FAA policy, the runway must have turbojet aircraft operations.

(2) These signs are also called distance remaining signs.

(3) This would only rarely be a stand-alone grant. The ADO can only allow this as a stand-alone grant if an airport begins having turbojet operations.

(4) Lighted signs must be supported by night or instrument approach operations.

(5) The associated pavement must be AIP eligible and justified.
A fully functional set of distance-to-go signs that meet FAA standards. SP RW SG
f. Improve Airport Miscellaneous Improvements

(Install/Rehabilit ate Airfield Lighting Vault)
(1) The vault must serve eligible airfield lighting.

(2) Rehabilitation of a vault must include replacement of major equipment such as the regulators.

(3) Rehabilitation must be supported by analysis demonstrating a need for rehabilitation and that rehabilitation will result in the useful life being extended by at least five years.

(4) The vault work may be coded under another project if it is required by the other project and is done as part of that project (such as runway lighting rehabilitation that requires an upgrade to the vault).

(5) The associated pavement must be AIP eligible and justified.
A fully functional vault that meets FAA standards. ST OT IM
g. Install Taxiway Edge Lighting (1) Taxiway lighting is only justified for taxiways that are associated with lighted runways.

(2) Reflectors are eligible in lieu of taxiway edge lights.

(3) The associated pavement must be AIP eligible and justified.
A fully functional taxiway lighting system that meets FAA standards. SP TW LI
SA TW LI
ST TW LI

See Table J-3 for the correct work code.
h. Install Taxiway Centerline Lighting (1) Taxiway centerline lighting is only justified for taxiways that are associated with runways that have centerline lighting.

(2) One of the following conditions must be met:

(a) The taxiway connects to a Category II or III runway.

(b) The lighting is a Runway Safety Action Team recommendation. The ADO must review RSAT recommendations on a case by case basis to determine if they are eligible and justified.

(3) The associated pavement must be AIP eligible and justified.
A fully functional taxiway lighting system that meets FAA standards. SP TW LI
SA TW LI
ST TW LI

See Table J-3 for the correct work code.
i. Rehabilitate Taxiway Lighting (1) Taxiway lighting is only justified for taxiways that are associated with lighted runways. Taxiway centerline lighting is only justified for taxiways that are associated with runways that have centerline lighting.

(2) Rehabilitation of taxiway lights may include replacing a significant number of fixture lenses, transformers, and cabling. The main light base and conduit will normally remain in place.

(3) If new light bases and fixtures are installed for a major part of the taxiway, the project is no longer considered rehabilitation, and the appropriate install work code must be used instead.

(4) The rehabilitation must be supported by analysis demonstrating a need for rehabilitation and that rehabilitation will result in the useful life being extended by at least five years.

(5) The associated pavement must be AIP eligible and justified.
A fully functional taxiway lighting system that meets FAA standards. RE TW LI
j. Install Runway Incursion Lighting

(Including Lighted X’s)
(1) Runway incursion lighting may include lighted X’s, runway status lights, runway guard lights, clearance bars, and/or stop bars. Lighted X’s may also be purchased.

(2) The sponsor cannot transfer the ownership and maintenance of these systems to the FAA Air Traffic Organization (ATO).

(3) Except for lighted X’s, the project must be identified as a safety issue by a 14 CFR part 139 certification inspector or in a Runway Safety Action Team recommendation. The ADO must review RSAT recommendations on a case by case basis to determine if they are eligible and justified.

(4) The associated pavement must be AIP eligible and justified.
A fully functional runway incursion lighting system or a lighted X that meets FAA standards. SA OT SG
k. Install Runway Incursion Marking (1) This is also referred to as enhanced taxiway centerline marking.

(2) Runway incursion markings cannot be applied to select airfield locations. They must be applied to every runway holding position on the airport.

(3) The associated pavement must be AIP eligible and justified.
A set of runway incursion markings that meets FAA standards and are applied to all runway holding positions on the airport. SA OT SG
(14 CFR part 139)

SP OT SG
(non 14 CFR part 139 Commercial Service)
l. Install Surface Movement Guidance and Control System (SMGCS) Lighting (1) SMGCS lighting may include runway guard lights, clearance bars, and/or stop bars.

(2) The airport must have an FAA approved SMGCS plan.

(3) The associated pavement must be AIP eligible and justified.
A complete SMGCS lighting pattern that allows aircraft to taxi from a Category II/ III runway to the apron. SP OT SG
m. Install Apron Edge Lights (1) The apron must be eligible. An apron with edge lights that meet FAA standards. ST AP LI
n. Install Apron Flood Lighting (1) The ADO must coordinate the project with AAS-100 to ensure the added lighting will not cause confusion for aircraft operations.

(2) Apron flood lighting must be free standing. Lighting that is attached to a building is coded as the building, not the apron.

(3) Although apron lighting may be a recommendation from TSA, a TSA letter is not mandatory.

(4) The associated pavement must be AIP eligible and justified.
An illuminated apron area. ST OT LI
o. Install Terminal Gate Position Lead-In Lights (1) The ADO must coordinate the project with AAS-100 to ensure the added lighting will not cause confusion for aircraft operations.

(2) Gate position lead-in lighting must be free standing. Lighting that is attached to a building is coded as the building, not the apron.

(3) The associated terminal gate must not be exclusive use.
An operational lead-in system to an eligible gate. ST OT LI

*The official list of work codes can be obtained from the automated AIP system.

Appendix K. Navigational Aid (NAVAID) and Weather Reporting Equipment Projects

K-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

K-2. Installation of Instrument Landing Systems.

The FAA Air Traffic Organization (ATO) is transitioning to Performance Based Navigation (PBN) approaches, as enabled by satellite navigation, rather than adding new ILS ground based equipment to the National Airspace System. These GPS approaches using Area Navigation (RNAV) provide equivalent instrument approach capability as ground based equipment can for Category I approaches.

On December 15, 2011, the FAA announced in 76 Federal Register 77939 that “In order to maximize operational benefits and take advantage of the cost savings associated with WAAS, the FAA no longer intends to establish new Category I ILSs using Facilities and Equipment (F&E) funding.”

In the same notice, FAA announced consideration of “…programmatic changes under AIP that would favor WAAS for new precision approaches at airports, rather than ILS.”

Consistent with the notice, the FAA policy is that AIP funds must not be used to install a new Instrument Landing System (ILS) where the FAA has determined that an RNAV approach can provide similar capabilities.

Therefore, where the ATO has determined that an RNAV approach cannot be implemented on a new or extended runway, and APP-500 has determined that the ILS installation is justified, the installation of a ground-based ILS installation is allowable with AIP. In accordance with the FAA Office of Airports and the Air Traffic Organization written agreement, the ADO must not program a new ILS on an existing runway.

Appendix Z summarizes the contents of ILS policy of the Offices of Airports and Air Traffic Control.

K-3. Transfer of Equipment to the FAA Air Traffic Organization (ATO).

Under 49 USC § 44502(e), an airport may transfer an instrument landing system (and associated approach lighting equipment and runway visual range equipment) to ATO if funded with AIP and the applicable FAA standards have been met. However, because the FAA is transitioning away from installing new ground based ILS, by FAA policy, installation of an ILS that is planned for ATO takeover must be approved in advance by APP-1.

Except for the specific statutory exception that allows a full ILS to be transferred to the ATO for ownership and maintenance, all NAVAIDs and signs installed under AIP will be owned and operated by the airport.

K-4. Required FAA Air Traffic Organization (ATO) Coordination.

If the project impacts or involves the relocation of an FAA-owned NAVAID, the ADO must complete all required coordination with FAA Technical Operations (AJW).

K-5. Designated Instrument Runway Requirement.

Airport approach and landing systems are not eligible unless the FAA Air Traffic Organization (ATO) has designated the associated runway as an instrument runway. The ATO designation considers safety requirements, relevant meteorological history, NAS-wide capacity, delays at individual airports, aviation activity forecasts, changes in the airfield and operational environment (including relocation of existing systems), as well as overall airport capital improvement costs regardless of the funding source.

Only airport rotating beacons, runway end identification light systems, and visual glide-slope indicator systems are eligible at airports without a designated instrument runway.

K-6. NAVAID and Weather Reporting Equipment Communication Requirements.

All NAVAID and weather reporting equipment must directly communicate with pilots, rather than directly communicate with the air traffic control tower, in order to be considered eligible. This is because equipment that communicates with the air traffic control tower is funded through the FAA Air Traffic Organization (ATO)’s budget.

K-7. Compass Calibration Pad.

A compass calibration pad is normally planned and constructed with adjacent taxiway or apron pavements. A compass calibration pad is not normally a stand-alone project. If the ADO determines that a stand-alone project is appropriate, the project is coded as an apron project rather than a NAVAID.

K-8. Airside Service Roads to Access AIP Eligible NAVAIDs.

The ADO has the option to fund an airside service road for access to an AIP eligible NAVAID. However, note that service roads are not eligible for pavement maintenance under AIP (only runway, taxiway, and apron pavement maintenance at certain airports is eligible).

K-9. Project Requirements Table.

In addition to the information provided in the above paragraphs and the following table, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table K-1 NAVAID and Weather Reporting Equipment Work Codes
If the project is justified as follows… Use the following work codes…
a. The project is for a primary or secondary runway or taxiway at a commercial service airport. SP XX XX
b. The project is needed to satisfy a safety issue identified by a 14 CFR part 139 violation or a Runway Safety Action Team (RSAT) recommendation. The ADO must review RSAT recommendations on a case by case basis to determine if they are eligible and justified. SA XX XX
c. The project is required to meet current FAA design standards in accordance with applicable advisory circulars and does not meeting the above to sets of criteria. ST XX XX
Table K-2 NAVAID and Weather Reporting Equipment Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Install Instrument Approach Aid

(Instrument Landing System)
(1) The ADO must not program a ground-based ILS without specific written APP-1 approval. The guidance for funding an ILS can be found in Paragraph K-2.

(2) The ADO must not program a ground-based ILS unless the ADO has received written notification from the ATO that the ATO has determined that an RNAV approach is not suitable for a given location (e.g., ILS is needed to maintain efficiency with merging and spacing, approach transition guidance, or substantially better minima).

(3) An instrument landing system (ILS) will not necessarily include installing an Approach Lighting System, which must be separately justified. Per APP-500 policy, an ALS is not justified for AIP funding unless the airport will have a reduction in minimums of at least 1/4 mile and records 300 or more annual instrument approaches to the runway.

(4) The project must be designed to meet the requirements in the current version of Advisory Circular 150/5300-13, Airport Design, and the requirements in the ATO reimbursable agreement.

(5) Unless the ADO has received APP-1 approval per (1), and ATO notification that an RNAV approach is not suitable per (2), then of the following must be met:

(a) The airport must be a large, medium, or small hub primary airport.

(b) The ILS is for a new or extended runway.

(c) The ILS will provide Category II or III minimums.

(6) APP-500 has conducted a benefit-cost analysis that resulted in a benefit-cost ratio of 1.0 or more.
A fully functional ILS that meets FAA standards. ST RW IN
b. Install Instrument Approach Aid

(Runway Visual Range (RVR))
(1) The FAA Air Traffic Organization (ATO) must have designated the runway as an instrument runway.

(2) The visibility information is made available directly to pilots.

(3) Per FAA policy, the ADO can program an RVR at a nonprimary airport using nonprimary entitlement funds only.

(4) Per FAA policy, the ADO can only program an RVR at an airport that has a published instrument flight procedure that has published RVR minimums.

(5) The airport cannot transfer ownership of AIP-funded RVR equipment to the ATO unless it will be associated with an ILS that is being installed in the same project.

(6) ADOs must contact APP-500 for assistance with proposed RVR projects.
A fully functional RVR that meets FAA design standards. ST RW IN
c. Install Miscellaneous NAVAIDs

(Airport Beacon)
(1) The airport rotating beacon equipment must be necessary for visual approaches to the airfield at night.

(2) The airport must be open at night and must have runway lights in order to have a justified beacon.
A fully functional airport beacon that meets FAA design standards. SP OT IN
ST OT IN

See Table K-1 for the correct work code.
d. Install Miscellaneous NAVAIDs

(Wind Cone)
(1) The airport must be open at night and must have runway lights in order to justify a lighted wind cone. A fully functional wind cone that meets FAA standards. SP OT IN
ST OT IN

See Table K-1 for the correct work code.
e. Install Miscellaneous NAVAIDs

(Segmented Circle)
(1) Where warranted, segmented circles used for landing direction, traffic pattern indicators or right turn indicators are allowed. A fully functional segmented circle that meets FAA standards. SP OT IN
ST OT IN

See Table K-1 for the correct work code.
f. Install Runway Vertical/Visual Guidance System

(Approach Light System (ALS))
(1) The FAA Air Traffic Organization (ATO) must have designated the runway as an instrument runway.

(2) Per APP-500 policy, an ALS is not justified for AIP funding unless the airport will have a reduction in minimums of at least 1/4 mile.

(3) APP-500 has conducted a benefit-cost analysis that resulted in a benefit-cost ratio of 1.0 or more.

(4) The sponsor cannot transfer the ownership and maintenance of these systems to ATO unless installed as part of a complete ILS that includes an ALS.

(5) An ALS is only eligible on a runway that either has a precision approach procedure published instrument flight procedure and 300 or more recorded annual instrument approaches or is forecast to have a published instrument flight procedure and 300 or more recorded annual instrument approaches within five years.

(6) Eligible ALSs include:

(a) Approach Lighting System (ALS).

(b) Approach Lighting System with Sequenced Flashing Lights (ALSF).

(c) Medium-Intensity Approach Light System and Runway Alignment Indicator Lights (MALSR).

(d) Medium-Intensity Approach Light System without Runway Alignment Indicator Lights (MALS). This is rare and requires additional justification because Runway Alignment Indicator Lights are an integral part of most ALS installations.

(e) Medium-Intensity Approach Lights System with Sequenced Flashing Lights (MALSF).
A complete ALS installation with clear approaches that reduces the minimums and meets FAA standards. SP RW VI
ST RW VI

See Table K-1 for the correct work code.
g. Install Runway Vertical/Visual Guidance System

(Omni-Directional Approach Lighting System (ODALS))
(1) The FAA Air Traffic Organization (ATO) must have designated the runway as an instrument runway.

(2) The ODALS must result in a reduction of minimums of at least 1/4 mile.

(3) An ODALS is only eligible on a runway that either has a published instrument flight procedure and 300 or more recorded annual instrument approaches or is forecast to have a published instrument flight procedure and 300 or more recorded annual instrument approaches within five years.

(4) APP-500 has conducted a benefit-cost analysis that resulted in a benefit-cost ratio of 1.0 or more.

(5) The airport cannot transfer the ownership of these systems to the ATO.
A complete ODALS installation with clear approaches that reduces the minimums and meets FAA standards. SP RW VI
ST RW VI

See Table K-1 for the correct work code.
h. Install Runway Vertical/Visual Guidance System

(Runway End Identification Light System (REILS))
(1) This project will provide visual approaches on runways that are not equipped with an approach light system.

(2) Per FAA policy, the ADO can fund REILs at a nonprimary airport only if the REILS are funded using nonprimary entitlement funds only.

(3) The airport cannot transfer the ownership of these systems to the FAA Air Traffic Organization (ATO).
A fully functional REILS that meet FAA standards. SP RW VI
ST RW VI

See Table K-1 for the correct work code.
i. Install Runway Vertical/Visual Guidance System

(Visual Glide-Slope Indicator System (PAPI))
(1) The precision approach path indicator (PAPI) is the only eligible visual glide-slope system eligible for an airport holding a 14 CFR part 139 certificate.

(2) Although there are some other older types of visual glideslope systems still in use by some airports, the PAPI is the only eligible visual glide-slope system eligible for funding at facilities used by fixed-wing aircraft without the sponsor providing significant justification to the ADO as to why a PAPI cannot be installed.

(3) For non-PAPI installations, the sponsor must obtain a Modification of Standards for siting and installation requirements.

(4) Per FAA policy, the ADO can only fund a PAPI at a nonprimary airport using nonprimary entitlement funds.

(5) Per the current versions of Advisory Circular 150/5340-30, Design and Installation of Airport Visual Aids, a four box PAPI is only justified for runways with any jet operations.

(6) The airport cannot transfer the ownership of these systems to the FAA Air Traffic Organization (ATO).

(7) The design threshold crossing height angle must not limit the airport or aircraft from the Airplane Design Group shown or forecast on the approved ALP.

(8) Unless the airport is a nonprimary airport, the project must have a benefit-cost analysis (BCA) ratio of 1.0 or more based on the criteria in the current version of FAA Order 7031.2, Airway Planning Standard Number One Terminal Air Navigation Facilities and ATC Services (APS-1), Appendix 2.
A PAPI system that meets FAA standards. SP RW VI
ST RW VI

See Table K-1 for the correct work code.
j. Acquire Snow Removal Equipment

(Weather Support to Deicing Decision-Making)
(1) The WSDDM equipment must be included in an FAA approved snow and ice control plan. If not, the ADO must make this a requirement in the grant offer. A fully functional WSDDM system. ST EQ SN
k. Install Weather Reporting Equipment

(AWOS III or better)
(1) The AJW-144 Weather Processors and Sensors – Non-federal AWOS website identifies the reference documents for the design, installation, commissioning, and maintenance requirements for non-federal AWOS equipment.

(2) The sponsor must have notified the Service Center non-Federal Program Implementation Manager (PIM) of its intent to procure and install an AWOS and have received concurrence by the PIM to proceed with the proposed project.

(3) If a discrete frequency is required, the sponsor must have filed for and received a radio frequency spectrum assignment. Some AWOS may transmit over the existing UNICOM frequency.

(4) The sponsor must provide the ADO the evidence of PIM concurrence and radio frequency spectrum assignment information.

(5) A benefit-cost analysis (BCA) is not required if the airport is a primary airport, or if the airport is a National or Regional Airport in the latest published edition of FAA’s ASSET report.

Otherwise, a new AWOS requires a BCA ratio greater than one; and a proposed replacement, relocation, and/ or rehabilitation of an existing AWOS requires a BCA ratio of 0.5 or greater.

(6) If a BCA is required, the sponsor must provide the ADO with the documentation required in FAA Form 5100-138, Data Requirements for an Office of Airports Automated Weather Observation System (AWOS) Benefit Cost Analysis (BCA) (see the AIP Forms link in Appendix B).

The ADO must forward this information to APP500 so that APP-500 can prepare the benefit-cost analysis. The ADO must advise the sponsor that incomplete documentation will not be accepted, and that the sponsor must allow at least three months after APP-500 has received the data to complete the analysis.

(7) Because the BCA is based principally on published factual data, unless the sponsor can demonstrate that significant circumstances have changed that may alter the result, APP500 will not rerun the BCA once the analysis is completed.

(8) When preparing the BCA, APP500 will include the full costs of the AWOS, including all fixed costs and variable costs, not simply the incremental cost increase over the basic cost of an AWOS installation. Inclusion of the AWOS data into the Weather Message Switching Center Replacement (WMSCR) is not considered a benefit and must not be included in the BCA to increase the BCA score.

(9) The ADO must not program the project unless the ADO has received verification that the sponsor has completed PIM coordination, radio spectrum frequency assignment, and received a greater than one benefit-cost analysis.

(10) No other FAA-owned and/or maintained weather reporting systems must exist or be planned at the airport. The ADO must confirm this with the PIM. If another FAA-owned system exists or is planned, AIP cannot be used to install an AWOS.

(11) The sponsor is willing and able to obtain a third party contract, for the life of the equipment, to report the minimum METAR data to the Weather Message Switching Center for the dissemination of weather data. The first 60 days of a subscription cost are allowable costs of the AIP grant, however all costs after the first 60 days are the responsibility of the sponsor.

(12) The ADO must advise the sponsor that AWOS are not eligible for FAA Air Traffic Organization (ATO) takeover under the current version of FAA Order 6700.20, Non-Federal Navigational Aids and Air Traffic Control Facilities.

(13) The ADO must advise the sponsor that the sponsor will be responsible for operation and periodic maintenance of the AWOS (including paying the costs of third party reporting contracts and participating in the yearly FAA inspections).

(14) The sponsor must not limit a bid for an AWOS based on the method of radio transmission.

(15) Automatic telephone answering systems or radio transmitters are an allowable cost to an AWOS.
A fully functional, operational, commissioned and FAA-inspected AWOS that meets FAA design standards. ST EQ WX
l. Install Weather Reporting Equipment

(AWOS A, A/V, I or II)
(1) The AJW-144 Weather Processors and Sensors – Non-federal AWOS website identifies the reference documents for the design, installation, commissioning, and maintenance requirements for non-federal AWOS equipment.

(2) The AWOS-A, AWOS-A/V, AWOS-I and AWOS-II are eligible without additional justification.

(3) No other FAA-owned and/or maintained weather reporting systems must exist or be planned at that airport. The ADO must confirm this with Service Center Non-Federal Program Implementation Manager (PIM), and if another FAA-owned system exists or is planned, AIP cannot be used to install an AWOS.

(4) The ADO must advise the sponsor that AWOS are not eligible for FAA Air Traffic Organization (ATO) takeover under the current version of FAA Order 6700.20, Non-Federal Navigational Aids and Air Traffic Control Facilities

(5) The ADO must advise the sponsor that the sponsor will be responsible for operation and periodic maintenance of the AWOS (including paying the costs of third party reporting contracts and participating in the yearly FAA inspections).

(6) The sponsor must not limit a bid for an AWOS based on the method of radio transmission. Different manufacturers of FAAcertified AWOS may use Unicom or radio discrete frequency transmission.

(7) Automatic telephone answering systems or radio transmitters are eligible as an allowable cost to an AWOS.

(8) A replacement AWOS is eligible if the existing AWOS has reached the end of its useful life.
A fully functional, operational, commissioned and FAA-inspected AWOS that meets FAA design standards. ST EQ WX
m. Install Infrastructure to support RNAV Approach

(Parallel Taxiway)
(1) The requirements for parallel taxiway projects that are required for an approved RNAV approach are provided in Appendix H. N/A N/A
n. Remove obstructions to support Area Navigation (RNAV) Approach (1) The requirements for obstruction removal projects that are required for an approved RNAV approach are provided in Appendix D. N/A N/A
o. Install Approach Aid

(NextGen Equipment such as Ground Based Augmentation System (GBAS))
(1) APP-400 Coordination. The ADO (and/or the regional office) must coordinate with APP-400 and have received APP-400 and APP-500 written concurrence with the project.

(2) Equipment Location. AIP funding can install equipment that is physically located on the airfield. This will typically be transmitters and related equipment that augment satellite navigation feeds. No effort has been made to list the eligible types of equipment. Rather, any equipment that meets the prescribed guidelines will be eligible for AIP.

(3) Cable Ducts and Cabling. For AIP funded NextGen equipment, AIP can be used for incidental cable ducts for cabling from the equipment to the processors. FAA Air Traffic Organization (ATO) will install the cabling, work in the tower, or computer hardware or software work.

This is consistent with current guidance that allows for installation of duct banks for ATO. If the airport installs the empty ducts when it is installing the equipment, the ducts are inplace and ready for ATO to pull cables, install wiring and activate the system at a future date without impacting airport operations. The equipment will be installed and the associated earthwork, grading, and construction of gravel access roads will be included in the AIP grant.

(4) ATO’s Responsibility. Cabling, computer programming and verification testing will remain ATO’s responsibility. The integrity of the NAS relies on a computer system that drives the communication, tracking, and surveillance systems together. This entire system is mission-critical. ATO cannot ensure the system integrity if individual airports are asked to modify or install the data systems.

(5) Operation/Maintenance. As a non-federal system, the airport should expect to be responsible for the maintenance and operation of the approach aid. ATO is not expected to take over the maintenance and operation of the equipment under current NAS strategic plans.
A fully functional NextGen system that meets FAA standards. ST RW IN

May be replaced with a new work code.

*The official list of work codes can be obtained from the automated AIP system.

Appendix L. Safety and Security Equipment Projects

L-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

L-2. Justification for Safety and Security Equipment.

Safety and security projects are not automatically justified. In all cases, the ADO must review these projects to determine if the project meets the eligibility and justification requirements outlined in this Handbook. Safety and security projects that require additional review by the ADO include, but are not limited to, those listed in Paragraph 3-9.

L-3. Safety Equipment beyond 14 CFR part 139 Requirements.

The basic criteria for eligibility of equipment beyond 14 CFR part 139 requirements will be that it is needed to meet a significant safety requirement at a particular airport. The sponsor’s justification or reasoning to acquire the equipment with documentation of the features and costs, as well as the 14 CFR part 139 inspector recommendation, must be sent to APP-500. Decisions on funding of safety equipment contributing significantly to the safety of persons and property at an airport will be referred on a case-by-case basis to AAS-1.

L-4. Use of Safety and Security Equipment.

AIP funded equipment cannot be used for non-airport purposes. The exception is when a mutual aid agreement is approved by the 14 CFR part 139 certification inspector. In that case, an AIP funded ARFF vehicle can be used to meet the requirements of that agreement.

L-5. Off-Airport Storage of ARFF Equipment.

The option to allow a sponsor to store ARFF equipment off airport was originally introduced in Program Guidance Letter 07-02.1. This exception was in response to changes in 14 CFR part 139 that required many smaller airports to obtain certification. In order to approve off airport storage of ARFF Equipment the conditions in Table L-1 must be met.

Table L-1 Requirements for Off-Airport Storage of ARFF Vehicles
The requirements include…
a. The vehicle must be available for airport use at times necessary to meet 14 CFR part 139 requirements.
b. The vehicle must not be used for local community needs (AIP funding cannot be used for non-airport purposes and use of the vehicle for non-airport purposes must not reduce the useful life of the vehicles).
c. The sponsor must demonstrate to the satisfaction of the ADO that there is no viable on-airport storage solution and the off-airport storage provides a tangible benefit to the airport.
d. The sponsor and the local government entity must execute an agreement that:

(1) Restricts the use of the vehicle for airport purposes only (except for FAA-approved mutual aid agreement uses).

(2) Contain language that use of the vehicle of other than airport purposes could require repayment of the grant funding since it would be in violation of the grant conditions.

(3) Contains provisions for documenting the use of the vehicle.
e. The ADO must forward a copy of the agreement between the sponsor and the local government entity to the 14 CFR part 139 certification inspector so that the certification inspector can ensure that the requirements are included in the certification manual and are being met.
f. The ADO must obtain approval for this request from AAS-300 and ACO-100 prior to issuing approval to the sponsor.

L-6. Radios and Communication Equipment.

Radios and communication equipment for an eligible AIP vehicle or piece of equipment is an allowable costs of the eligible AIP vehicle or piece of equipment. This may include installation of ADS-B out vehicle squitters per Advisory Circular 150/5220-26, Airport Ground Vehicle Automatic Dependent Surveillance – Broadcast (ADS-B) Out Squitter Equipment, for vehicles that are used at an airport with FAA ADS-B Surface Surveillance.

L-7. Security Equipment beyond 49 CFR part 1542 Requirements.

Projects exceeding the minimum requirements of 49 CFR part 1542 or that are necessary to support local law enforcement are ineligible. The security equipment that is currently eligible for AIP is included in Table L-2 and the commonly requested security equipment that have been determined ineligible is included in Table C-3.

L-8. Sensitive Security Information.

The ADO must coordinate with a TSA official to identify planning and material that must be protected under 49 CFR part 1520, which governs the release of such information.

L-9. Project Requirements Table.

In addition to the information provided in the above paragraphs and the following table, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table L-2 Safety and Security Equipment Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Acquire Aircraft Rescue & Fire Fighting Vehicle (1) The airport must currently hold a 14 CFR part 139 certificate.

(2) If an airport that does not hold 14 CFR part 139 certificate, AAS-1 must have made an airport specific determination that the vehicle will contribute significantly to the safety or security at the airport (as allowed under 49 USC § 47102(3)(B)(ii)).

(3) 14 CFR part 139 sets forth minimum extinguishing agents and water required for ARFF vehicles. IP funding is limited to the minimum number of ARFF vehicles and the minimum size of ARFF vehicles required to satisfy 14 CFR part 139 requirements.

(4) A rapid response vehicle (also called a rapid intervention vehicle) is only eligible if specifically required to satisfy 14 CFR part 139 requirements.

(5) For an airport that currently holds a 14 CFR part 139 certificate, the ADO may calculate the number of eligible vehicles based on the airport index in accordance with the criteria specified in 14 CFR part 139 for conditions forecast within five years of the proposed ARFF equipment acquisition date provided that the ADO has received written confirmation from its regional certification inspector that the airport meets the other requirements associated with owning an ARFF vehicle, including training, staffing, and maintaining the vehicle.

(6) In the event of a conflict between the requirements in any applicable advisory circular and 14 CFR part 139, the requirements in 14 CFR part 139 take precedence.

(7) For vehicles that are 10 or more years old, a major rehabilitation is eligible if it extends the useful life by 10 or more years. Forcible aircraft entry tools may also be replaced at this time.

(8) One set of forcible aircraft entry tools per vehicle is eligible if it is included in the grant for acquisition of an eligible ARFF vehicle and is not acquired as a stand-alone grant. For assistance and/or a list of standard equipment, contact AAS-300.

(9) Emergency lighting that is mounted to the ARFF vehicles is eligible if it is included in the acquisition of an ARFF vehicle and is not acquired as a stand-alone grant.

(10) One test charge and one refill of expendable items at the time of initial purchase of an ARFF vehicle are eligible.

(11) The sponsor must separate the acquisition purchase of the ARFF vehicle and the acquisition of the gear and tools into two procurements. This is because including the gear and tools in the ARFF vehicle procurement documents unnecessarily increases the costs of those items.

(12) The airport must either include a line item in the ARFF vehicle procurement to mount the necessary ARFF gear to the vehicle or must mount the equipment using its own forces.

(13) The upgrade of an ARFF vehicle to add enhanced struts is eligible for ARFF vehicles built before 2002. Those built after 2002 are required to come equipped with the enhanced struts so an upgrade is neither necessary nor eligible.
A fully operational ARFF vehicle that meets FAA design standards. SA EQ RF

The ST EQ RF is no longer available because it applied to a situation that was in place prior to the 2004 revision to 14 CFR part 139.
b. Acquire Aircraft Rescue & Fire Fighting Vehicle

(Structural Fire Fighting Vehicle)
(1) The airport must hold a 14 CFR part 139 certificate.

(2) If an airport that does not hold 14 CFR part 139 certificate, AAS-1 must have made an airport specific determination that the vehicle will contribute significantly to the safety or security at the airport (as allowed under 49 USC § 47102(3)(B)(ii)).

(3) Only one vehicle per airport is eligible.

(4) The vehicle must be stored on-airport.

(5) The 14 CFR part 139 certification inspector has determined that the response time for an off airport structural unit exceeds 10 minutes.

(6) For vehicles that are 10 or more years old, a major rehabilitation is eligible if it extends the useful life by 10 or more years. Forcible aircraft entry tools may also be replaced at this time.

(7) One set of forcible aircraft entry tools per vehicle is eligible if it is included in the acquisition of an eligible ARFF vehicle and is not acquired as a stand-alone grant. For assistance, contact AAS-300.

(8) Emergency lighting that is mounted to the ARFF vehicles is eligible if it is included in the acquisition of an ARFF vehicle and is not acquired as a stand-alone grant.

(9) One test charge and one refill of expendable items at the time of initial purchase of an ARFF vehicle are eligible.

(10) The sponsor must separate the acquisition of the ARFF vehicle and the acquisition of the gear and tools into two procurements. This is because including the gear and tools in the ARFF vehicle procurement documents unnecessarily increases the costs of those items.

(11) The airport must either include a line item in the ARFF vehicle procurement to mount the necessary ARFF gear to the vehicle or must mount the equipment using its own forces.

(12) The upgrade of an ARFF vehicle to add enhanced struts is eligible for ARFF vehicles built before 2002. Those built after 2002 are required to come equipped with the enhanced struts so an upgrade is neither necessary nor eligible.
A fully operational structural fire fighting vehicle that meets FAA design standards. SA EQ RF
c. Acquire Driver’s Enhanced Vision System (DEVS) (1) The airport must have a 14 CFR part 139 certificate and published operations below 1200 feet runway visual range.

(2) The primary fire station that services the airfield can have DEVS on a maximum of two vehicles per the current version of Advisory Circular 150/5210-19, Driver’s Enhanced Vision System. This will provide driver’s enhanced vision system (DEVS) equipment to an ARFF vehicle and one additional vehicle.

(3) In addition, one more DEVS is eligible for each fire station that services the airfield beyond the first station. For instance, an airport with two fire stations that service the airfield is eligible for three DEVS.

(4) Forward-looking infrared system (FLIRS) is a component of DEVS. A stand-alone FLIRS mounted is eligible for AIP eligible ARFF vehicles.
A fully functional DEVS added to an existing ARFF vehicle in accordance with FAA standards. ST EQ MS
d. Forward Looking Infrared System (1) Forward looking infrared system (FLIRS) is a component of DEVS. A stand-alone FLIRS mounted is eligible for AIP eligible ARFF vehicles in accordance with the current version of Advisory Circular 150/5210-19, Driver’s Enhanced Vision System. A fully functional FLIRS added to an existing ARFF vehicle in accordance with FAA design standards. ST EQ MS
e. Acquire Aircraft Rescue & Fire Fighting Vehicle

(Protective Clothing)
(1) The airport must hold a 14 CFR part 139 certificate.

(2) If an airport that does not hold 14 CFR part 139 certificate, AAS-1 must have made an airport specific determination that the clothing will contribute significantly to the safety or security at the airport (as allowed under 49 USC § 47102(3)(B)(ii)).

(3) One suit is eligible for each fire fighter employed full-time to fight aircraft fires.

(4) For part time positions, the number of suits is limited to a maximum of two per lightweight vehicle and five per large type vehicle. These limitations may be exceeded if approved by the 14 CFR part 139 certification inspector.

(5) The replacement of personal protective equipment is eligible after the useful life has been reached (see Paragraph 3-12). Self-contained breathing apparatus is only replaced when the gear is replaced.

(6) In addition, the replacement of protective clothing is eligible if the 14 CFR part 139 inspector has verified that the clothing has been destroyed accidentally, or may be otherwise deemed inoperable through no fault of the sponsor.
Protective clothing that meets FAA standards. SA EQ RF
f. Regional ARFF Training Facility (1) Project costs may include land, the burn area, maneuvering areas, a control center, an ARFF vehicle with capacity not to exceed 1,500 gallons, the vehicle bay(s), utilities, maintenance facilities, environmental protection, fencing, the access road, and a building for classrooms, showers, and lockers as discussed in the current version of Advisory Circular 150/5210-17, Programs for Training of Aircraft Rescue and Firefighting Personnel.

(2) One additional ARFF vehicle may be eligible if justified in the view of the 14 CFR part 139 certification inspector based on the mix of area airport indices.

(3) The 14 CFR part 139 certification inspector must review the list of available training facilities in the area of the proposed facility to avoid duplication. This information is currently available in the addendum to the current version of Advisory Circular 150/5210-17, Programs for Training of Aircraft Rescue and Firefighting Personnel (see Appendix B for link).

(4) Not all states need such a facility, but if the 14 CFR part 139 certification inspector determines several area-wide training facilities in a state are required due to the area served they must contact APP-500 for additional assistance.

(5) The initial acquisition of the computer server, software, and dedicated hardware are eligible.
A fully operational regional ARFF training facility that meets FAA standards. ST OT RF
g. Mobile ARFF Training Facility (1) The airport has a 14 CFR part 139 certificate and is required to comply with Index A or B ARFF standards.

(2) The airport must be more than 100 miles from the nearest area-wide training facility. The FAA CertAlerts contain the latest list of facilities. At the time this Handbook was published, the current list was in FAA CertAlert 09-07 (see Appendix B for link).

(3) The ADO has the option to contact AAS-100 regarding the design requirements of this equipment.

(4) Mobile training equipment is also eligible for acquisition by states if it will benefit more than one airport.

(5) The initial acquisition of the computer server, software, and dedicated hardware are eligible.
A fully operational mobile ARFF training facility that meets FAA design standards. ST OT RF
h. Acquire Aircraft Rescue & Fire Fighting Vehicle

(Water Rescue Equipment)
(1) The airport must hold a 14 CFR part 139 certificate.

(2) If an airport that does not hold 14 CFR part 139 certificate, AAS-1 must have made an airport specific determination that the equipment will contribute significantly to the safety or security at the airport (as allowed under 49 USC § 47102(3)(B)(ii)).

(3) The 14 CFR part 139 certification inspector determines that the equipment is need at the airport.

(4) Acquisition of a helicopter for water rescue must be supported by additional justification and AAS-1 and APP-1 must have concurred with the action.
A fully operational piece of water rescue equipment that meets FAA design standards. SA EQ RF
i. Acquire Equipment

(Power Vacuum Sweeper for Foreign Object Debris (FOD))
(1) The power sweeper is for the control of debris on the airport.

(2) Per FAA policy, eligibility is limited as follows.

(a) Where the primary areas are less than 500,000 square yards and the where the airports annual operations level is 40,000 or less, one power sweeper is eligible.

(b) Where the primary areas are 500,000 square yards or more, or where the airports annual operations level is more than 40,000, two power sweepers are eligible.
A fully operational sweeper that meets FAA design standards. ST EQ MS
j. Acquire Equipment

(Acquire Fixed Foreign Object Debris (FOD) Detection Equipment)
(1) AAS-100 has determined that FOD detection equipment contributes “significantly to the safety or security of individuals and property” at an airport as described in 49 USC § 47102(3)(B)(ii).

(2) The airport must be a large hub airport.

(3) The sponsor must provide the following information to the ADO:

(a) Number of aircraft operations per average 24-hour period for the selected runway.

(b) Distribution of operations and percentage of airport departures over a 24-hour period on the selected runway.

(c) Percentage of wide body aircraft using selected runway per day and overall diversity of fleet-mix using the runway.

(d) Surface material and condition of selected runway.

(e) Climatic conditions at the airport.

(f) Significant construction activity on or near the airfield.

(g) If available, historical data of FOD at the airport and/or on the specific runway being considered.

(4) The airport is eligible for either one fixed system for a single primary runway at the airport, or one mobile system, not both.

(5) Selection of airports receiving FOD detection systems will be made by APP-1; therefore, after the sponsor has submitted the required information to the ADO, the regional office must submit the proposal to APP-1.

(6) AIP participation is limited to 50% of the eligible items associated with the project at the normal federal share.

(7) Reimbursement of administrative costs is limited to $2,000.

(8) The system must be configured to provide real time alerts, FOD identification, and FOD location to airport operations personnel.

(9) The airport must continue to comply with all 14 CFR part 139 requirements for detection and removal of FOD.

(10) Installation of a FOD detection system is a categorically excluded action unless extraordinary circumstances exist.

(11) Optional features that exceed FAA design standards for system output requirements are not eligible for AIP and may not be used as a basis for selection of the system.
A fully operational fixed FOD Detection System that meets FAA standards. ST EQ MS
k. Acquire Equipment

(Acquire Mobile Foreign Object Debris (FOD) Detection Equipment)
(1) AAS-100 has determined that FOD detection equipment contributes “significantly to the safety or security of individuals and property” at an airport as described in 49 USC § 47102(3)(B)(ii).

(2) The airport must be a large hub airport.

(3) The sponsor must provide the following information to the ADO:

(a) Number of aircraft operations per average 24-hour period for the selected runway.

(b) Distribution of operations and percentage of airport departures over a 24-hour period on the selected runway.

(c) Percentage of wide body aircraft using selected runway per day and overall diversity of fleet-mix using the runway.

(d) Surface material and condition of selected runway.

(e) Climatic conditions at the airport.

(f) Significant construction activity on or near the airfield.

(g) If available, historical data of FOD at the airport and/or on the specific runway being considered.

(4) The airport is eligible for either one fixed system for a single primary runway at the airport, or one mobile system.

(5) Selection of airports receiving FOD detection systems will be made by APP-1; therefore, after the sponsor has submitted the required information to the ADO, the regional office must submit the proposal to APP-1.

(6) AIP participation is limited to 50% of the eligible items associated with the project at the normal federal share.

(7) Reimbursement of administrative costs is limited to $2,000.

(8) Acquisition of a mobile FOD detection system may also include the vehicle on which the equipment is mounted if the airport does not already own a suitable vehicle that can be converted to FOD detection system use. The use of the FOD detection vehicle is strictly limited to FOD detection. The maximum reimbursement for the vehicle is $15,000, regardless of the type, size, or options selected for the vehicle.

(9) A separate Buy American determination must be made for the vehicle.

(10) The system must be configured to provide real time alerts, FOD identification, and FOD location to airport operations personnel.

(11) The airport must continue to comply with all 14 CFR part 139 requirements for detection and removal of FOD.

(12) Installation of a FOD detection system is a categorically excluded action unless extraordinary circumstances exist.

(13) Optional features that exceed FAA design standards for system output requirements are not eligible for AIP and may not be used as a basis for selection of the system.
A fully operational mobile FOD Detection System that meets FAA standards. ST EQ MS
l.Acquire Equipment

(Avian Radar System)
(1) On October 4, 2010, AAS-1 determined that avian radar systems contribute significantly to the safety or security at an airport, which makes them eligible under 49 USC § 47102(3)(B)(ii).

(2) The airport has a wildlife hazard management plan that has been accepted by the FAA.

(3) The airport has an ongoing bird harassment plan in place incorporating the recommendations for continued harassment by airport employees to reduce wildlife hazards.

(4) If the airport is a 14 CFR part 139 airport and has an Airport Certification Manual, the manual must include the requirements for operation and maintenance of the avian radar system, as well as requirements for analyzing the incoming data feeds, tracking the data, and acting on the data trends.

(5) The airport must have a training plan in place that includes initial and yearly follow-up training on the proper use of radar readings, analysis and interpretation.

(6) The costs of acquiring the radar equipment, installing the antenna(s) and radar equipment, and acquiring the Digital Radar Signal Processor are allowable costs. However, because accommodating the equipment is essentially providing space for airport employees to monitor the radar, the costs of modifying existing office space to accommodate the radar equipment, acquiring a mobile trailer, and constructing a permanent structure to support the avian radar equipment is not allowable. (7) Because the proper placement of the antenna includes an initial trial placement, the costs of a trial installation and a final operational installation are allowable.

(8) The airport must maintain data to evaluate the radar performance until advised otherwise by the FAA. This must include the daily archives or radar recordings of birds tracked, related logs of birds harassed, hours in service, hours out of service, service and repair records, and updates to software or hardware. The data must be available for review by the FAA upon request.

(9) Replacement of the system is only eligible after the useful life of the whole system has been met.
A fully operational avian radar system that meets FAA standards. ST EQ MS

Note: Do not use SA EQ MS. APP-500 decided that ST EQ MS is the work code that must be used.
m. Acquire Equipment

(Initial Squitter Acquisition)
(1) The acquisition of squitters is units installed and operational in limited to the 35 ASDE-X equipped airports or the 8 civil airports that are scheduled to receive ASSC.

(2) APP-1 must select the specific airport for participation in the squitter acquisition program.

(3) Acquisition is limited to 75 squitters.

(4) By FAA policy, the APP-1 sets the maximum grant amount for a squitter project on an annual basis.

(5) Squitters may use either the 1090 ES or 978 MHz/UAT link.

(6) Only products that have been approved following certification testing may be acquired.

(7) ATO Surveillance and Broadcast Services will generate the squitter transmit map.

(8) Only ADS-B out is allowable (ADS-B In is not eligible).

(9) Squitters are limited to installation in airport-owned, airport employee-operated vehicles that operate on pavements that are controlled by FAA Air Traffic Control, such as snow plows, airport rescue and firefighting vehicles, and airside operations vehicles.

(10) The sponsor must provide a listing of the vehicle, assigned use (such as airside operational vehicle), and its airside designation (such as Operations Vehicle OPS-1, ARF-2) to the ADO.

(11) The costs of acquiring computer hardware, software or software subscription services used in support of airport surface displays are not allowable.

(12) Costs for installation and commissioning services, including Site Acceptance Testing (SAT) are allowable.
Up to 75 squitter units installed and operational in existing sponsor-owned and operated vehicles ST EQ MS
n. Wildlife Hazard Reduction Equipment (1) Equipment for broadcasting distress calls, exploding gas cannons, shotguns, and pyrotechnic pistols are eligible if recommended in a wildlife hazard management plan or a written sponsor’s adoption of a wildlife hazard site visit report.

(2) The airport has an ongoing bird harassment plan in place incorporating the recommendations for continued harassment by airport employees to reduce wildlife hazards.
A fully operational piece of equipment. ST EQ MS
o. Wildlife Hazard Habitat Modification (1) The project must be recommended by a wildlife hazard management plan or a written sponsor’s adoption of a wildlife hazard site visit report. However, these recommendations are not automatically eligible or justified.

(2) Some wildlife hazard reduction equipment (see this appendix), some avian radar system (see this appendix), some wildlife fencing (see this appendix) and some airport drainage (see Appendix D) is normally eligible and justified.

(3) For other potentially eligible projects (like tree removal or pond meshing), the ADO must consult both APP-520 (for eligibility) and AAS-300 (for feasibility) prior to grant programming.
A completed project that reduces wildlife attractants. ST OT MS
p. Install Perimeter Fencing required by 49 CFR 1542 (1) TSA must have approved the airfield access control project in writing as being needed to meet the minimum requirements of 49 CFR part 1542.

(2) The fencing project may include closed circuit monitoring of the airfield boundary or guard shacks. Guard shacks must be minimal in nature (no additional office space, restrooms, etc.).

(3) The closed circuit cameras must be for the secured airfield area.

(4) Unless the TSA has approved the use of an electric locking device or automatic gate, only standard gate and mechanical locking devices are eligible.
A complete fencing installation that meets the 49 CFR part 1542 requirements. SA EQ SE
q. Install Perimeter Fencing not Required by 49 CFR part 1542 (1) The proposed fencing must be identified on the approved airport layout plan to be eligible.

(2) If the purpose of the fence is to discourage wildlife, the fence is not eligible unless it is justified by a wildlife hazard management plan (mandatory for Class I-III 14 CFR part 139 certificated airports) or a written sponsor’s adoption of a wildlife hazard site visit report (required for noncertificated airports). Either type of documentation is acceptable for Class IV 14 CFR part 139 certificated airports. In addition, the fence must met FAA design standards for wildlife fencing.

(3) If the purpose of the fencing is to discourage unauthorized access to the airfield by people or vehicles, the fence must be reasonable for the type of situation. (a) Five foot high chain link fence is reasonable within 500 feet of a terminal area because it is considered a sensitive security area. (b) Fencing around the remainder of the airfield perimeter is only needed to serve as a notice of legal boundary. Five foot high woven wire fence, which is significantly more economical than chain link fence, is reasonable. For urban areas, no more than a five foot chain link fence is also considered reasonable.

(4) Epoxy-coated fencing is not considered reasonable for perimeter fencing.

(5) Unless the ADO has approved the use of an electric locking device or automatic gate, only standard gate and mechanical locking devices are eligible.
A complete fencing installation that increases safety of the airfield. ST EQ SE
r. Command and Control Centers, also known as Emergency Operations Centers (1) Command and Control Centers, or Emergency Operations Centers are not specifically required under 49 CFR part 1542 and are not consider security or safety equipment.

(2) The requirements for Command and Control Centers or Emergency Operations Centers are found in Appendix O.
A fully operational command and control center console for airfield security. ST BD MS
s. Security Enhancements

(Fingerprinting Equipment for Background Checks)
(1) The TSA must have approved, in writing, that the airport is required by 49 CFR part 1542 to have a badging system that requires background checks.

(2) The type of equipment and quantity to permit processing of three employees per hour is eligible provided the airport has that turnover rate.

(3) Equipment certified by the Federal Bureau of Investigation is listed on their website.
Fully functional fingerprinting equipment. SA EQ SE
t. Security Enhancements

(Terminal Access Control)
(1) TSA must have approved the terminal access control system, in writing, as being needed to meet the minimum requirements of 49 CFR part 1542.

(2) Replacement of the systems and software is only eligible after the useful life of the system has been met.

(3) The closed circuit cameras must be for the secured terminal area.

(4) If the terminal access control system is being installed as part of larger terminal project, the ADO has the option of coding the project as a separate security project or as part of the terminal project.
A fully operational access control system that meets 49 CFR part 1542. SA EQ SE
u. Security Enhancements

(Police Vehicle)
(1) TSA must have approved the police vehicle, in writing, as being needed to meet the minimum requirements of 49 CFR part 1542.

(2) The primary purpose of the police vehicle must be for perimeter patrol of the airfield operational area or other secured airfield area.

(3) Only one police vehicle is allowed. The vehicle must be a standard police vehicle.

(4) The airport must have a 14 CFR part 139 certificate.
A fully operational standard police vehicle that meets 49 CFR part 1542. SA EQ SE
v. Security Enhancements

(Badging Equipment)
(1) TSA have approved the badging equipment, in writing, as being needed to meet the minimum requirements of 49 CFR part 1542. Fully operational badging equipment that meets 49 CFR part 1542. SA EQ SE
w. Security Enhancements

(Apron Lights)
(1) Although apron lighting may be a recommendation from TSA, a TSA letter is not mandatory. Apron lighting requirements are listed in Table J-4. N/A N/A

*The official list of work codes can be obtained from the automated AIP system.

Appendix M. Other Equipment Projects

M-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

M-2. Project Requirements Table.

In addition to the information provided in the above paragraph and the following table, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table M-1 Other Equipment Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Acquire Aircraft Deicing Equipment (1) The equipment must be owned by the airport and be available on a non-exclusive use basis for any aircraft owner.

(2) Vehicles and equipment for aircraft deicing and anti-icing on the ground are eligible at any NPIAS airport.
A fully functional piece of aircraft deicing equipment that meets FAA design standards. ST EQ DI
b. Acquire Interactive Training System (1) The systems and software must be for federally required safety and security requirements, or training related to the Americans with Disabilities Act and the Clean Air Act (42 USC § 7401).

(2) The initial acquisition of the server, software, and dedicated hardware are eligible.

(3) Replacement of the systems and software is only eligible after the useful life has been met.

(4) New training modules to add new eligible material are eligible.
A fully functional interactive training system that meets FAA design standards. OT EQ MS
c. Emergency Generator

(Acquire, Install or Rehabilitate)
(1) Fixed standby generators necessary to support the following lighting on Cat II/III runways are eligible (not limited to entitlement funding):

(a) Runway touch down zone, centerline, and edge lights.

(b) Land and hold short lights.

(c) Taxiway edge lights for taxiways serving the runway.

(d) Surface movement guidance and control system (SMGCS) lights.

(2) Specific airports have been designated as continuous power airports and are eligible for fixed generators (not limited to entitlement funding). They provide continuous operations in the event of an area wide power failure. The current versions of FAA Order 6030.20, Electrical Power Policy, and FAA Order 6950.2, Electrical Power Policy Implementation at National Airspace System Facilities, list these airports and the designated runways. These orders outline the fixed generator requirements.

(3) Per FAA policy, for airports that do not meet one of the two criteria listed above, one fixed generator is eligible to support AIP eligible airside infrastructure. Only entitlement funds can be used in this case.

(4) Per FAA policy, fixed emergency generators are only eligible for terminal use for the specific purpose of meeting life safety code requirements for building evacuation of the public use areas (not to allow the terminal to continue operations).

(5) The generator must be a fixed generator, not a mobile generator.
A fully functional emergency generator that meets FAA design standards. ST EQ LI
d. Acquire Snow Removal Equipment (1) For 14 CFR part 139 certificated airports:

(a) Equipment required for clearing snow and ice from the runways, principal taxiways, aprons, and emergency access roads is eligible.

(b) The equipment must be justified based on the current versions of Advisory Circular 150/5200-30, Airport Field Condition Assessments and Winter Operations Safety and Advisory Circular 150/5220-20, Airport Snow and Ice Control Equipment.

(c) As of September 24, 2014, Advisory Circular 150/5200-30, Airport Field Condition Assessments and Winter Operations Safety and Advisory Circular 150/5220-20, Airport Snow and Ice Control Equipment, permits a sponsor to specify multi-task equipment (MTE). An MTE counts as two pieces of equipment for eligibility purposes (a plow and a broom).

(d) The number of eligible pieces must be determined using the above two advisory circulars and the airport’s approved Snow and Ice Control Plan, and there must be existing FAA specifications for the equipment.

(e) Eligibility is limited to the minimum requirements recommended by the advisory circulars unless the ADO approves the airport’s assertion that the volume of traffic requires additional equipment. Sponsors must have submitted detailed information supporting additional equipment and the ADO must have agreed with the justification.

(2) For airports that are not 14 CFR part 139 certificated airports:

(a) Per FAA policy, only one snow removal carrier vehicle is eligible unless the ADO concurs that the airport is large enough, busy enough, and/or has significant snowfall to warrant an additional vehicle.

(b) The equipment must be designed and justified based on the current versions of Advisory Circular 150/5200-30, Airport Field Condition Assessments and Winter Operations and Advisory Circular 150/5220-20, Airport Snow and Ice Control Equipment.

(c) Per FAA policy, incidental use on non-AIP eligible surfaces is permitted at nonprimary airports without an active 14 CFR part 139 certificate only if:

(i) The activity does not significantly degrade the SRE useful life.

(ii) The SRE is used only for airport purposes and will not be used off airport.

(iii) The SRE is only used by airport employees.

(iv) The SRE is generally used for activities on AIP eligible surfaces.

(v) The incidental use is not used as part of the SRE justification or as part of the design requirements when procuring the SRE.

(3) The sponsor must provide the ADO with a current FAA Form 5100-141, Inventory of Snow Removal Equipment (see the AIP Forms link in Appendix B).

(4) Fixed and portable snow melters are eligible in very limited circumstances and must have been coordinated and approved by APP-500. The airport must be able to document that there is no other safe and efficient way to remove snow without adversely impacting aircraft operations.
A fully functional piece of snow removal equipment that meets FAA standards. ST EQ SN
e. Acquire Friction Measuring Equipment (1) Only a self-contained device or a towed device is eligible. Airports must provide their own towing vehicles for towed devices.

(2) The airport must be a commercial service airport, hold a 14 CFR part 139 certificate, and have scheduled turbojet operations.

(3) This equipment can be acquired for use at multiple neighboring airports. State aviation agencies may sponsor such projects.
A fully functional piece of friction measuring equipment (if towed, truck to be paid for with local funds) that meets FAA design standards. ST EQ SR

*The official list of work codes can be obtained from the automated AIP system.

Appendix N. Terminal Building Projects

N-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

N-2. Eligibility of Terminals Non-Commercial Service Airports.

It is not clear in the Act that non-commercial service airports can receive a grant for terminal development. However, this congressional intent is clearly contained in § 512(d) of House Report 108-143 to Vision 100 (Public Law 108-176). This section indicates that 49 USC § 47119(c)(5) (formerly (b)(5)) “permits a general aviation airport to use its AIP entitlement for terminal development.” H.R Report 108-143 § 512(d), 2003 WL 21301449, 72. Both revenue producing and non-revenue producing terminal development can be funded using nonprimary entitlements.

N-3. Public-Use and Movement of Passengers/Baggage Requirements.

Terminal development is defined under 49 USC § 47102(28). 49 USC § 47119 further defines the eligible space within terminal development projects as public-use areas that are directly related to the movement of passengers and baggage in terminal facilities within the boundaries of the airport.

In order to determine if a particular area within a terminal is eligible, it must be a public-use area per Table N-1 and it must be for the movement of passengers and baggage per Table N-2.

Table N-1 Public-Use Requirements for Terminal Buildings
The space must be public use as follows…
a. Public use spaces are those areas that passengers may need to occupy as part of their air travel. Areas such as airport administration offices or conference rooms (even if occasionally accessed by the public) are not considered public-use.
b. Public use spaces include the utility support space needed to make the public space operational, including the mechanical and electrical rooms.
c. Public use spaces do not include areas such as airport operations areas, police areas, administrative space, janitor’s closets, and meetings and conference rooms, even though the public may occasionally go to some of these areas.
d. General aviation terminals can be stand-alone buildings, collocated within a commercial service terminal, or collocated within a fixed base operator (FBO) facility. What makes general aviation terminal areas eligible is that they are public use. In the case of general aviation terminal area that is collocated within an FBO, the areas behind the counter, office space, and conference room space (even if occasionally used by the public for meetings) are not considered public-use and are not eligible as terminal development. Although this space is ineligible as terminal development, it may be eligible under the revenue producing aeronautical support facility eligibility rules and requirements in Table O-3.
e. Areas that are past passenger screening (meaning that only ticketed passengers may access the public-use area) may still be considered public-use.
Table N-2 Movement of Passengers and Baggage Requirements
The space must be directly related to the movement of passengers or baggage as follows…
a. The prime function of a terminal building is to allow passengers and baggage to move from the curb of the terminal building to an airplane. Other uses that may be constructed in a terminal building may be public-use, but may not be directly related to moving passengers and baggage.
b. If the area does not need to be at an airport, but could be located somewhere else, it is not directly related to the movement of passengers and baggage and is not eligible. For example, a satellite office for a county’s Department of Motor Vehicles may be public-use, but it is not directly related to the movement of passengers and baggage and is therefore not eligible.
c. Stores and restaurants for the convenience of the general traveling public are considered related to the movement of passengers. However, these facilities are subject to the revenue producing limitations outlined in Paragraph N-4, and the eligible area is limited to the space that the general public can access.

N-4. Revenue Producing Eligibility and Conditions for Terminal Buildings.

Revenue producing areas are eligible as outlined in Table N-3.

Table N-3 Revenue Producing Eligibility and Conditions for Terminal Buildings
For the following size airports… Revenue producing areas are… And the following conditions apply…
a. Large, medium, or small hub primary Ineligible N/A
b. All other airports Eligible (1) The area must be public-use per 49 USC § 47119(a)(1). The ability to fund revenue producing terminal areas at these airports under 49 USC § 47119(a)(2) does not remove this requirement.

(2) The sponsor must certify any needed airport development project affecting safety, security or capacity will not be deferred due to the revenue producing project. These certifications are required per 49 USC § 47119(a)(2)(B) and the sponsor must provide this certification in writing to the ADO. Per FAA policy, deferring a needed capacity project includes allowing airfield pavement to deteriorate to a poor to failed condition.

N-5. Safety, Security, and Access Needs Met.

Per 49 USC § 47119(a)(1)(A), the sponsor must certify that it has, on the date of submittal of the project application, all the applicable 14 CFR part 139 safety and 49 CFR part 1542 security equipment required by rule or regulation. In addition, the sponsor must certify that they have provided access and equipment for passengers boarding or exiting non-air carrier aircraft. The sponsor must provide this certification in letter format to the ADO.

N-6. Terminal Areas Related to Security (Landside, Sterile, and Secured).

A terminal building is divided into roughly three different areas (landside, sterile area, and secured area). The TSA is responsible under 49 CFR part 1544 for controlling access between the landside and the sterile area. The airport is responsible under 49 CFR part 1542 for controlling access to the secured area.

a. Landside. This is the area that is accessible to the general public.

b. Sterile Area. This area (as more fully defined in 49 CFR part 1540) is restricted to passengers, airline employees and others who have passed airport security.

c. Secured Area. This area (as more fully defined in 49 CFR part 1540) is the portion of terminal or terminal ramp that has direct access to the aircraft.

N-7. Prorated Areas and High Cost Eligible/Ineligible Items.

AIP cannot be used to pay for items or costs that are not eligible or allowable. The way this is addressed in terminals, which contain a mix of both eligible and ineligible areas, is by prorating the total cost.

The easiest method of proration is to use the ratio of the square footage of the eligible areas to the total area. High cost eligible and ineligible items of equipment must not be included in the proration calculations, but added (or deducted) separately to avoid skewing the result. An example of a high cost eligible item is a passenger loading bridge or an escalator/elevator. An example of a high cost ineligible item is a large commissioned sculpture. The formula for determining the eligible cost of a terminal building is in Table N-4.

In addition, the requirements for including ineligible or non-AIP funded work in the contract in Paragraph 3-39 must be met.

Table N-4 Terminal Eligibility Proration Calculation
Step Action
1 Determine the square footage for each of the following categories:

A: Eligible Areas

B: Ineligible Areas

C: Prorated Areas (areas that needed for utilities such as mechanical, electrical, or water)

D: High Cost 100% Eligible Items (Examples: Passenger loading bridges, escalators, elevators)

E: High Cost 100% Ineligible Items (Example: Large commissioned sculpture, ineligible build out costs)
2 Determine the eligible proration % as follows: Eligible Proration % = A / (A+B)
3 Determine the eligible cost as follows: Eligible Cost = [(Cost of A+B+C) * (Eligible Proration %)] + (Cost of D)

N-8. Terminal Area Impacted by an AIP Eligible Terminal Project.

If the area being impacted would normally be AIP eligible, then this area can be replaced with AIP funding under the project. If the area being impacted is not AIP eligible (such as a revenue producing restaurant in a small, medium, or large hub airport), then only the demolition of the impacted area would be eligible. This impacted area is considered an ineligible sponsor facility and cannot be replaced with AIP funding (see Paragraph 3-74).

N-9. Typical Eligible Areas/Equipment within a Terminal Building.

Table N-5 contains typical eligible areas within a terminal building. As further discussed in Paragraph 3-6, replacement of carpeting (or other flooring, such as tiles or terrazzo), painting, wall coverings, ceiling tiles, and fixed public use seating (including tables and counters) in a terminal are considered ineligible maintenance items if they are not directly required as a result of an eligible terminal project.

Table N-5 Typical Eligible Areas/Equipment within a Terminal Building
The following terminal areas/equipment…
a. Ticketing lobby from entrance to ticket counters (but not including the ticket counters or the areas behind the counters).
b. Other lobbies used by passengers and guests (commonly called meeters and greeters).
c. The public use-portion of the baggage claim delivery areas (including lost baggage retrieval areas). This includes the baggage carousel equipment (even though by function, a portion of the carousel is located in the non-public area).
d. A prorated amount of the space for equipment needed to make the public space operational, including the mechanical and electrical rooms.
e. Public-use corridors to boarding areas.
f. Central waiting rooms.
g. Passenger boarding bridges at commercial service terminals.
h. Public restrooms.
i. Gate holding areas, including fixed public-use seating (including fixed tables and counters) within the holding area.
j. Directional signs and non-exclusive use flight information display systems (FIDS) and baggage information display systems (BIDS).
k. Passenger screening areas that are used directly for the inspection of passengers have limited eligibility. Eligibility is limited to the construction of bare space (drywall, standard paint, and standard floor covering) with appropriate utilities.
l. Customs and Border Control (formerly Federal Inspection Service) areas that are used directly for the inspection of individuals and goods have limited eligibility. Eligibility is limited to the construction of bare space (drywall, standard paint, and standard floor covering) with appropriate utilities and baggage carousels. Note that these can be separate buildings, but still are considered terminal development. Customs and Border Control must verify that the building is sized to the staffing levels that will be provided (note that the funding source of the staffing does not affect eligibility).
m. The FAA has determined that public use areas for general aviation operations are eligible areas (even within commercial service terminals). Note that these can be separate buildings, but still are considered terminal development.
n. Terminal modifications to accommodate in-line baggage screening as required by 49 CFR part 1542. In-line explosive detection system (EDS) equipment is eligible for AIP funding. However, from FY 2004 to the publication date of this Handbook, the FAA appropriations bill has prohibited using AIP grant funds on EDS systems or any building modifications that are necessary to support or install an EDS system. Because PFC eligibility is based on AIP eligibility, leaving the project eligible but prohibiting use of AIP still allows these projects to be funded with PFCs. TSA determines the size of the facility and the amount of equipment. Normally, this consists of EDS machines, various baggage conveyer systems, monitoring cameras and rooms, and baggage containment rooms. Associated space for staff rooms, offices, and break rooms are not considered necessary components of an EDS installation.
o. Acquiring and installing facilities and equipment to provide air conditioning, heating, or electric power from terminal-based (not mobile), non-exclusive use facilities to aircraft per 49 USC § 47102(3)(O). This type of work used to only be eligible if approved under the Voluntary Airport Low Emissions (VALE) program, but is now also eligible as terminal development outside of the VALE program and does not require the airport to be in a nonattainment or maintenance area. 49 USC § 47102(3)(O) limits eligibility to those facilities that will reduce energy use or harmful emissions as compared to aircraft based systems. There is ample scientific evidence that using power from the terminal rather than from the aircraft will reduce emissions, therefore, per FAA policy, the airport does not have to provide any documentation supporting this assertion. Terminal-based aircraft air conditioning, heating or electric power will be eligible following all of the funding, usage, and hub size requirements for other terminal projects.
p. Although a sponsor has the option to include a command and control center in the terminal, it is not required to be in a terminal. The ADO has the option of separating the command and control center out into a separate project (prorating the cost of the square footage) or including it as eligible terminal development (in which case the terminal funding rules would apply). Regardless of which method the ADO choses (as a separate project or as part of the terminal), the command and control center must meet all of the requirements in Appendix N.
q. If the terminal is a multimodal, only the area that is public use for the movement of passengers and baggage is eligible.
r. Incidental use of public space for display, advertising, or vending machines for public convenience will not make the space ineligible, although modifications to install these items are not eligible.
s. Service animal relief areas to comply with Title II of the Americans with Disabilities Act of 1990 (42 USC § 12101 et seq.).
t. Elevators to normally ineligible areas of the terminal (such as the airport offices to accommodate public meetings) if the elevators are necessary for the sponsor to comply with Title II of the Americans with Disabilities Act of 1990 (42 USC § 12101 et seq.). The elevators are 100% eligible (do not have to be prorated to reflect the ineligible areas being served).
u. Other accommodations to normally ineligible areas of the terminal (such as the airport offices to accommodate public meetings) if the accommodations are necessary for the sponsor to comply with Title II of the Americans with Disabilities Act of 1990 (ADA) (42 USC § 12101 et seq.). The ADO must contact the FAA Office of Civil Rights (ACR) to determine if the accommodations are required under ADA.
v. If the terminal access control system (see Table L-2 for requirements) is being installed as part of larger terminal project, the ADO has the option of coding the project as a separate security project or as part of the terminal project. In addition, the space required to house the associated computer equipment is eligible. If the area to house the equipment is also an office or other ineligible use, that portion of the area remains ineligible.
w. A public address system in the public use portions of the terminal is an allowable cost of terminal development (similar to lights in the public area and the sprinkler system in the public area). This is because the public address system is necessary for the movement of passengers and baggage in the public portion of the terminal.

N-10. Additional Eligible Terminal Areas/Equipment at Nonhub Primary and Nonprimary Airports.

In addition to the eligible areas listed in Paragraph N-9, nonhub primary and nonprimary airports may be eligible for the areas listed in Table N-6.

Table N-6 Additional Eligible Terminal Areas/Equipment at Nonhub Primary and Nonprimary Airports
Additional eligible terminal areas/equipment at nonhub primary and nonprimary airports includes the public-use space associated with...
a. Ticket counters at commercial service airports (but not the areas behind the counters).
b. Rental car counters (but not the area behind the counter).
c. The public portion of concession areas (the part that the general public can actually access) that is commonly found in airports such as restaurants, lounges, business centers, snack bars, snack vending areas, seating areas for snack areas/restaurants, newsstands, rental car areas, ground transportation and bookstores. Although not considered directly related to the movement of passengers or baggage per 49 USC § 47119(a)(1)(B), these areas are eligible under 49 USC § 47119(a)(2) as terminal development. However, the eligibility is limited to the construction of bare space (drywall, standard paint, and standard floor covering) with appropriate utilities and fixed public-use seating (including fixed tables and counters).
d. Nonrevenue parking lots for the parking of vehicles of passengers and persons meeting or delivering passengers.
e. A pilot briefing area or pilot lounge at general aviation terminals if the area is open to the public.

N-11. Terminal Building Funding Rules by Airport Type.

The funding rules for terminal buildings are listed in Table N-7.

Table N-7 Terminal Building Funding Rules by Airport Type
For the following airport type… The following funding rules apply…
a. Large, Medium and Small Hub Airports (1) Passenger Entitlements (Allowed). The ADO is only allowed to apply passenger entitlement funds at large, medium and small hub airports. 49 USC § 47119(c)(1) authorizes funds from amounts apportioned under 49 USC § 47114(c)(1), which is the statutory reference for passenger entitlement.

(2) Discretionary (Potentially allowed at a small hub primary that has changed from a nonhub primary). Per 49 USC § 47108(e)(3), if a nonhub primary airport changes to a small hub primary when a phased terminal development project that has received discretionary is underway, the project remains eligible for discretionary under the nonhub airport discretionary funding rules for three fiscal years after the start of the construction project (or longer if the ADO approves an extension).

(3) Discretionary (Allowed at a small hub airport with exactly .05% of the annual passenger boardings up to $20 million total). 49 USC § 47119(c)(3) authorizes funds from the discretionary fund and the Small Airport Fund at a small hub airport with exactly .05% of the annual passenger boardings. On February 14, 2012, the FAA Modernization and Reform Act of 2012 (Public Law 112-95) added 49 USC § 47119(f), which limits the amount of discretionary to $20 million for the cumulative total of all terminal development project costs as of February 14, 2012 at that airport. See the definition for terminal development in Appendix A for an explanation of what needs to be included in the $20 million dollar calculation (including what portion of the access road must be included).

(4) All Other Funding (Not allowed). The Act does not authorize other funding at large, medium or small hub airports except as listed above.
b. Nonhub Primary Airports (1) Passenger Entitlements (Allowed). The ADO can apply passenger entitlement funds at nonhub primary airports. 49 USC § 47119(c)(1) authorizes funds from amounts apportioned under 49 USC § 47114(c)(1), which is the formula for passenger entitlements.

(2) Discretionary (Allowed up to $20 million total). 49 USC § 47119(c)(3) authorizes funds from the discretionary fund and the Small Airport Fund at nonhub primary airports. On February 14, 2012, the FAA Modernization and Reform Act of 2012 (Public Law 112-95) added 49 USC § 47119(f), which limits the amount of discretionary to $20 million for the cumulative total of all terminal development project costs as of February 14, 2012 at that airport. See the definition for terminal development in Appendix A for an explanation of what needs to be included in the $20 million dollar calculation (including what portion of the access road must be included).

(3) All Other Funding (Not allowed). The Act does not authorize other funding at these airports except as listed above.
c. Nonprimary Commercial Service (1) Nonprimary Entitlement (Allowed). The ADO can apply nonprimary entitlement funds at nonprimary commercial service airports. 49 USC § 47119(c)(5) authorizes funds from amounts apportioned under 49 USC § 47114(d)(3)(A), which is the reference for nonprimary entitlements.

(2) Discretionary (Allowed up to $200,000 per fiscal year). 49 USC § 47119(c)(2) authorizes funds from the discretionary fund under 49 USC § 47115 at nonprimary commercial service airports. The Small Airport Fund cannot be used because 49 USC § 47119(c)(3) only authorize the use of these funds at small hub airports with exactly .05% of the annual passenger boardings and nonhub primary airports.

(3) All Other Funding (Not allowed). The Act does not authorize other funding at these airports except those listed above.
d. Reliever Airports (1) Discretionary (Allowed up to $200,000 per fiscal year). 49 USC § 47119(c)(2) authorizes funds from the discretionary fund under 49 USC § 47115 at these airports. After review of the legislative history, the FAA has determined that 49 USC § 47119(c)(2) allows reliever airports to use discretionary on a terminal building, regardless if the airport has commercial service. The Small Airport Fund cannot be used because 49 USC § 47119(c)(3) only authorize the use of these funds at small hub airports with exactly .05% of the annual passenger boardings and nonhub primary airports.

(2) Discretionary (Potentially allowed for a reliever airport that has dropped from commercial service). Per 49 USC § 47108(e)(2), if a commercial service airport (either a nonprimary commercial service or a hub airport) changes to a noncommercial service airport (either a reliever or general aviation airport) when a phased terminal development project is underway, the project remains eligible for discretionary under the funding rules for the previous airport type.

(3) Nonprimary Entitlement (Allowed). The ADO can apply nonprimary entitlements at reliever airports. 49 USC § 47119(c)(5) authorizes funds from amounts apportioned under 49 USC § 47114(d)(3)(A), which is the reference for nonprimary entitlements. After review of the legislative history, the FAA has determined that 49 USC § 47119(c)(5) allows reliever airports to use nonprimary entitlements on a terminal building, regardless of whether the airport has commercial service.

(4) All Other Funding (Not allowed). The Act does not authorize other funding at reliever airports except those listed above.
e. General Aviation Airports (Excluding Reliever Airports) (1) Discretionary (Potentially allowed for a general aviation airport that has dropped from commercial service). Per 49 USC § 47108(e)(2), if a commercial service airport (either a nonprimary commercial service or a primary airport) changes to a noncommercial service airport (either a reliever or general aviation airport) when a phased terminal development project is underway, the project remains eligible for discretionary under the original funding rules for the previous airport type.

(2) Nonprimary Entitlement (Allowed). The ADO can apply nonprimary entitlements at general aviation airports. 49 USC § 47119(c)(5) authorizes funds from amounts apportioned under 49 USC § 47114(d)(3)(A), which is the reference for nonprimary entitlements. After review of the legislative history, the FAA has determined that 49 USC § 47119(c)(5) allows general aviation airports to use nonprimary entitlements on a terminal building, regardless if the airport has commercial service.

(3) All Other Funding (Not Allowed). The Act does not authorize other funding at these airports except those listed above.

N-12. Project Requirements Tables.

In addition to the information provided in the above paragraphs and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table N-8 Terminal Work Codes
If the project is justified as follows…… Use the following work codes…
a. The project meets the definition of a capacity project (see Appendix A). CA TE XX
b. The project meets the definition of a standards project Appendix A). ST TE XX
Table N-9 Terminal Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Construct Terminal Building (1) The ADO must have concurred with the sponsor’s terminal sizing methodology. The ADO and regional office may contact APP-400 for assistance on terminal design and justification.

(2) To the extent possible, the development must meet the anticipated terminal needs for the 10 years after project completion.

(3) Modification/rehabilitation of existing facilities must be considered before the ADO can consider new terminal development. The ADO can consider funding new terminal development if costs are comparable to modification/rehabilitation of existing facilities and the new construction will provide better flexibility, ability to expand, or a longer useful life.

(4) Because of the requirement for public use, by FAA policy, gates cannot be leased for more than 10 years and must not be subject to a majority in interest clause.

(5) The project must be supported by an FAA-accepted planning study.

(6) A project for walkways that lead directly to or from a terminal is eligible terminal development per 49 USC § 47102(28)(iii). Per FAA policy, walkways include surface sidewalks, moving sidewalks, tunnel walkways, stairs, and overhead walkways. Covers or canopies over surface sidewalks may be included in a walkway project when necessary to protect concentrations of persons from the weather such as at passenger loading or unloading areas. In addition, only the portion of the walkway that is on airport is eligible.

(7) Per 49 USC § 47119(a)(1)(A), the airport has all safety equipment required for the airport per 49 USC § 44706 (Airport Operating Certificates), has all security equipment required by rule or regulation, and has provided for access by passenger to the area of the airport for boarding or exiting aircraft that are not air carrier aircraft.

(8) Per 49 USC § 47119(a)(1), only public-use areas of the terminal are allowable (regardless of the revenue producing status of the area).

(9) ADOs may use the current versions of Advisory Circular 150/5360-13, Planning and Design Guidelines for Airport Terminal Facilities and Advisory Circular 150/5360-9, Planning and Design of Airport Terminal Facilities at Non-Hub Locations for additional guidance. However, the eligibility and justification rules within this Handbook must be followed for AIP funded terminals.

(10) The ADO must coordinate all multimodal terminal projects with APP-520 prior to programming the associated grant.
A complete terminal building to allow the movement of passengers and baggage. CA TE CO
ST TE CO

See Table N-8 for the correct work code.
b. Expand Terminal Building (1) The requirements for Construct Terminal Building apply.

(2) This work code is used for physical expansion to increase the number of gates, ticket counters, or baggage carousels.

(3) The ADO must coordinate all multimodal terminal projects with APP-520 prior to programming the associated grant.
A completed terminal expansion with an increase in the number of gates, ticket counters, or baggage carousels. CA TE EX
ST TE EX

See Table N-8 for the correct work code.
c. Modify Terminal Building (1) The requirements for Construct Terminal Building apply.

(2) This may include modification needed for security screening, modifications to meet federal mandates, or modifications needed to accommodate a new class of aircraft at the terminal.

(3) The ADO must coordinate all multimodal terminal projects with APP-520 prior to programming the associated grant.
A completed modification of the building that allows for a specific additional function. CA TE IM
ST TE IM

See Table N-8 for the correct work code.
d. Rehabilitate Terminal Building (1) The requirements for Construct Terminal Building apply.

(2) This may include the replacement of eligible major capital equipment systems that will extend the useful life of the terminal building or replacement of a fixed building component.

(3) Rehabilitate Terminal Building projects are:

(a) Major renovation of public restrooms.

(b) Replacement or major overhaul of public elevators, escalators, and moving sidewalks.

(c) Major replacement of a significant percentage of a terminal roof.

(d) Replacement of a significant portion of the terminal windows in the public-use areas.


(4) The ADO must coordinate all multimodal terminal projects with APP-520 prior to programming the associated grant.
A complete renovation that extends the useful life by the minimums in Paragraph 3-12

(note that equipment may have a shorter minimum useful life than the building).
CA TE IM
ST TE IM

See Table N-8 for the correct work code.
e. Improve Terminal Building (1) The requirements for Construct Terminal Building apply.

(2) Justification for improvement of a terminal building will rely on a terminal study that justifies improvements based on improved passenger or baggage handling. It will involve adding new capabilities that do not currently exist at the terminal, generally through the installation of new capital equipment.

(3) Improve terminal building projects may include installations of:

(a) New baggage carousels.

(b) Loading bridges.

(c) Pedestrian walkways.

(d) Elevators or escalators.

(e) Preconditioned air/power for aircraft parked at a gate per 49 USC § 47102(3)(O).

(4) The ADO must coordinate all multimodal terminal projects with APP-520 prior to programming the associated grant.
A completed improvement of the building that adds new capabilities. CA TE IM
ST TE IM

See Table N-8 for the correct work code.
f. Acquire Passenger Lift Device (1) This is eligible under 49 USC § 47102(3)(F).

(2) The equipment must be required for compliance with the Americans with Disabilities Act of 1990 (42 USC 12101 et seq)

(3) The equipment must be used to board passengers on an aircraft, not to transport passengers between gates in airport terminals (these are considered people mover projects and are covered under Appendix P).

(4) The sponsor must include specific information describing the vehicle or equipment that is being acquired in the project description of the application.
A new lift device that meets FAA design standards. ST TE MS

*The official list of work codes can be obtained from the automated AIP system.

Appendix O. Other Building Projects

O-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

O-2. Aircraft Rescue & Fire Fighting Building Costs at 14 CFR part 139 Airports.

The main purpose of an ARFF building is to protect the grant-funded ARFF vehicle. For airports without a 14 CFR part 139 certificate a minimal structure to house and protect the grant funded ARFF vehicle is usually all that is justified.

More areas and items are eligible at an airport with a 14 CFR part 139 certificate. However, the current version of Advisory Circular 150/5210-15, Aircraft Rescue and Firefighting Station Building Design, contains facilities that are not required and will not be considered justified for project funding. Table O-1 narrows these FAA design standards to the allowable costs for AIP funding. Although the advisory circular allows for a 20% increase in the size of the areas without receiving FAA approval, this does not apply to AIP eligibility. Only the minimum space required for the eligible function is allowable under AIP unless the ADO provides written approval. In order to provide such approval, the ADO must have determined that there is justification for the increase and must document this justification and determination in the grant file.

Table O-1 Allowable Costs for Areas in an ARFF Building at 14 CFR part 139 Certificated Airports
For the following area/items… The following cost criteria apply…
a. Vehicle bays The number of eligible bays is limited to that necessary for housing eligible ARFF equipment. Space for a structural fire truck is eligible if the structural fire truck is eligible.
b. Maintenance bay A maintenance bay may be eligible within an ARFF building if all of the requirements for maintenance facilities in Table O-3 are met.
c. Administrative space Administrative space is limited to a common area for maintaining department files and documents. This may include an open area to accommodate a desk for the shift commander and one administrative staff member (when applicable).
d. Watch/alarm room The space is limited to that necessary for a consolidated area to receive emergency calls, dispatch ARFF vehicles and direct support resources.
e. Support rooms Space for necessary gear, medical equipment storage, and decontamination is eligible.
f. Personnel facilities The number of personnel (as required by 14 CFR part 139 response times or local government staffing requirements) for the eligible ARFF vehicles determines the allowable personnel space requirements. Allowable areas include a day room, dormitories, locker rooms, restrooms, bathrooms, shower facilities, a kitchen, and a laundry room.
f. Training The number of personnel (as required by 14 CFR part 139 response times or local government staffing requirements) for the eligible ARFF vehicles determines eligible training space requirements.
g. Furnishings, appliances, and support utilities Minimum fixed furnishings and utilities to serve the building are allowable. This includes cabinets, a stove, a refrigerator, and a sink. One fixed emergency generator and one fixed air compressor of sufficient size to operate the ARFF bay system and one fixed compressor to maintain the readiness of self-contained breathing apparatus (SCBA) are allowable.

O-3. Project Requirements Tables.

In addition to the information provided in the above paragraphs and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table O-2 Distinctions between Construct, Expand, Modify, Improve, and Rehabilitate
Use the following description… If the project will…
a. Construct Build a brand new building.
b. Expand Add on to an existing building.
c. Modify Change a building.
d. Improve Provide a distinct new feature to a building.
e. Rehabilitate Extend the useful life of a building by completing major renovation or major replacement of parts of the building.
Table O-3 Other Building Project Requirements (Other than Terminals)
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Aircraft Rescue & Fire Fighting Building

(Construct, Expand, Modify, Improve, or Rehabilitate)
(1) The building must be sized according to the airport’s ARFF index.

(2) Allowable building costs are discussed in Paragraph O-2.

(3) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table O-2.

(4) The ADO must determine that only the allowable areas listed in Table O-3 are included in the project.

(5) The ADO has the option to fund limited employee vehicle parking necessary to support essential ARFF personnel on duty.

(6) The ADO has the option to fund an airside service road for access to the facility. However, note that service roads are not eligible for maintenance under AIP (only runway, taxiway, and apron maintenance at certain airports is eligible).
A fully functional ARFF building. SA BD EX
b. Aircraft Rescue & Fire Fighting Building (Rehabilitate)

(Replace Communication System)
(1) Total replacement of the ARFF communication system is eligible for a stand-alone project every 10 years and is coded as rehabilitation. A new, fully functional ARFF communication system. SA BD EX
c. Snow Removal Equipment Building

(Construct, Expand, Modify, Improve, or Rehabilitate)
(1) Snow removal equipment buildings are intended to protect the AIP funded snow removal equipment and materials.

(2) Funding snow and ice control buildings is limited to space in the building necessary for eligible Snow Removal Equipment as well as storing abrasive or chemicals used in treatment of paved areas. All other areas and equipment recommended in the current version of Advisory Circular 150/5220-18, Buildings for Storage and Maintenance of Airport Snow and Ice Control Equipment and Materials, must be paid for by the sponsor.

(3) The eligibility of a maintenance bay for safety and security equipment is provided elsewhere in this table and may be included in the SRE building if the requirements for the safety and security equipment maintenance bay are met.

(4) At the time the building is programmed, the eligible equipment must be owned, on order, or budgeted by the airport within the next five years.

(5) The SRE building is not intended to function as personnel quarters, snow desk, training space, or other functions. It is only intended for storage of eligible equipment. If non-eligible equipment storage is included in the building, the requirements for including ineligible or non-AIP funded work in the contract in Paragraph 3-42 must be met.

(6) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table O-2.

(7) The ADO has the option to fund limited employee vehicle parking necessary to accommodate essential snow removal personnel on duty.

(8) The ADO has the option to fund an airside service road for access to the facility. However, note that service roads are not eligible for pavement maintenance under AIP (only runway, taxiway, and apron pavement maintenance at certain airports is eligible).

(9) For airports that are not 14 CFR part 139 certificated airports and are only eligible for one snow removal carrier vehicle, it is FAA policy that a 1600 square foot SRE building is eligible. In the instance where two vehicles are eligible, a 2000 square foot SRE building is eligible.
A fully functional snow removal equipment building.

ST BD SN
d. Construct Sand and Chemical Storage Building

(Construct, Expand, Modify, Improve, or Rehabilitate)
(1) Small stand-alone buildings for storage of airport surface deicing chemicals and sand may be constructed if the size and design is appropriate for the facility.

(2) This function may also be incorporated as eligible area in a snow removal equipment building.

(3) Snow and ice control abrasive or chemicals are to be used for airport pavement (not aircraft) because 49 USC § 47102(3)(G) does not permit the purchase or storage of deicing materials for aircraft.

(4) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table O-2.
A fully functional sand and chemical storage building. ST BD SN
e. Miscellaneous Building

(Construct, Expand, Modify, Improve, or Rehabilitate)

(Maintenance or Service Facility)
(1) One maintenance or service facility (also called a maintenance bay) for maintaining required safety and security equipment at airports with a 14 CFR part 139 certificate may be funded.

(2) The facility must not exceed 1500 square feet in size and may be co-located within an existing or new building or in its own free standing building.

(3) The eligible area is determined by adding 10 feet to the length and 10 feet to the width of the largest ARFF vehicle serving the airport, then multiplying these two dimensions for the bay size and adding a like amount for support space.

(4) The ADO must confirm whether the airport already has an existing maintenance or service bay in the ARFF or SRE buildings. If so, an additional facility is not justified.

(5) Construction of maintenance space does not include maintenance equipment, supplies, or tools because the costs of maintenance are not eligible.

(6) The building/area must not be used for storage of any equipment or materials. The space must only be used for maintenance of eligible safety and security equipment.

(7) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table O-2.
A fully functional maintenance or service area or building. ST BD MS
f. Miscellaneous Building

(Construct, Expand, Modify, Improve, or Rehabilitate)

(Aircraft Hangar, Fixed Based Operator (FBO) Building, or Aircraft Maintenance Building)
(1) For MAP funded hangars, see Appendix T, as many of the following requirements do not apply for MAP projects.

(2) 49 USC § 47102(3)(24) specifically allows expansion and construction of sponsor owned hangars that the ADO has determined will increase the revenue producing ability of the airport. In addition, 49 USC § 47102(3)(24) allows expansion and construction of sponsor owned aeronautical support facilities that the ADO has determined will increase the revenue producing ability of the airport. The FAA has determined that this includes sponsor owned FBOs and aircraft maintenance buildings.

(3) The only rehabilitation allowed under 49 USC § 47102(3)(24), is major rehabilitation of a sponsor owned hangar.

(4) Per 49 USC § 47110(h), the airport must be a nonprimary airport.

(5) Only nonprimary entitlements funding may be used for the building.

(6) Per 49 USC § 47110(h), the sponsor must certify that all airfield needs have been accommodated before the ADO can fund a revenue producing aeronautical support facilities. Per FAA policy, the sponsor must adequately demonstrate to the ADO that airside needs within the next three years (current fiscal year and next two future fiscal years) will be accommodated through local funds or nonprimary entitlement funds. It is APP-500 policy that the sponsor requests for AIP would be limited to nonprimary entitlement funds during that time unless there is a specific safety issue that must be addressed and was not foreseeable under normal planning efforts of the sponsor.

(7) Per 49 USC § 47102(24), the use of the building must only be for aeronautical purposes (storage of property other than aircraft or aircraft supplies is not allowed). Non-aeronautical uses are not allowed.

(8) The use and lease of the building must meet the compliance requirements outlined in the current version of FAA Order 5190.6, FAA Airport Compliance Manual.

(9) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table O-2.

(10) The apron in front of a building that cannot be used for public parking or taxiing of aircraft is considered part of the building (and the associated building funding rules apply). This includes the wingtip clearance from the building as defined in the current version of Advisory Circular 150/5300-13, Airport Design.

(11) The taxilane/taxiway that exclusively serves a building is also considered part of the building (and the associated building funding rules apply).

(12) The ADO has the option to fund limited landside vehicle parking necessary to support the functions of the building.

(13) The acquisition of existing buildings involves further review of existing environmental issues, useful life issues, and reverter clause issues. Therefore the ADO must coordinate these requests with APP-520 and ACO-100.

(14) If the FBO is collocated with the general aviation terminal, the public use area can be funded as terminal development as discussed in Appendix N. The areas behind the counter, office space, and conference room space (even if occasionally used by the public for meetings) are not considered public-use and are not eligible as terminal development.
A fully functional aircraft hangar, FBO building, or aircraft maintenance building. ST BD MS
g. Miscellaneous Building

(Construct, Expand, Modify, Improve, or Rehabilitate)

(Command and Control Center or Emergency Operations Center)
(1) Only the portion of the building dedicated to airfield security is eligible. By FAA policy, this only includes the prorated building cost for a single position at the console and must not include the cost for equipment or furniture that is not fixed or mounted. In addition, the requirements for including ineligible or non-AIP funded work in the contract in Paragraph 3-42 must be met.

(2) This is not specifically required under 49 CFR part 1542, therefore a letter from TSA is not mandatory for AIP funding.

(3) Although a sponsor has the option to include a command and control center in the terminal, it is not required to be in a terminal and is therefore not considered terminal development.

(4) For ease of prorating the eligible costs of a Command and Control Center, the square footage allowed for the single position is limited to a maximum of 500 square feet (which includes consideration of common spaces in the center.) For example, in a 5,000 center, the maximum AIP participation is limited to 500 square feet/5,000 square feet, or 10% of the total project cost.
A fully operational command and control center console for airfield security. ST BD MS
h. Miscellaneous Building

(Construct, Expand, Modify, Improve, or Rehabilitate)

(Contract Air Traffic Control Tower (ATCT))
(1) If an airport proposes state apportionments for these projects, those funds may be used provided the ADO consults with the state aviation official and obtains the state’s support for the project as part of its airport capital improvement plan. State apportionment funds may only be used on projects that are to be undertaken in the future rather than for retroactive funding. The project file must include the state’s written support.

(2) Only the equipment contained in the Federal Contract Tower Minimum Equipment List is eligible for AIP funding.

(3) The FAA Air Traffic Organization (ATO) must provide a letter or comparable documentation stating that the airport was selected to be a participant in the FAA Contract Tower program under 49 USC § 47124 or that the construction of the ATCT would qualify the sponsor to be added to the program and it will seek appropriations for the airport to be in the contract tower program. The ADO must keep a copy of this documentation in the grant file.

(4) The Federal share of the cost of planning and construction is limited to a cumulative maximum of $2.0 million per airport per 49 USC § 47124(b)(4)(C). In addition, the type of AIP funding is limited per Paragraph 4-7.

(5) Eligible costs include the ATCT structure and equipment inside it.

(6) ATO standards must be met for ATCT equipment in an AIP project. Modification of any equipment standard must have been approved by ATO.

(7) For projects that were completed after October 1, 1996, retroactive funding of the ATCT and equipment is eligible, provided the airport demonstrates statutory requirements were met. For instance, the project must have been accomplished using DBE, minimum wage, veteran’s preference, environmental approval, and other requirements under 2 CFR part 200).

(8) The sponsor must certify in the FAA operating agreement and the cost share agreement, if applicable, that it will pay its share of the cost to equip, maintain and operate the ATCT.

(9) The ATCT must be located so that it does not conflict with the airport design requirements in the current version of Advisory Circular 150/5300-13, Airport Design.

(10) The ATCT must be based on the current version of FAA Order 6480.4, Air Traffic Control Tower Siting Process.

(11) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table O-2.
Construction or equipment to support a contract control tower that meets FAA standards. ST BD MS
i. Law Enforcement Facilities (1) The only eligible law enforcement facilities are airfield facilities to provide for a law enforcement presence required for air transportation security. The FAA has determined that the only facilities that meet these requirements are guard shacks at airfield access points. Guard shacks are coded under security fencing (see Table L-2). N/A N/A

*The official list of work codes can be obtained from the automated AIP system.

Appendix P. Roads and Surface Transportation Projects

P-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

P-2. Project Requirements Tables.

In addition to the information provided in the above paragraph and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table P-1 Distinctions between Construct, Expand, Modify, Improve, and Rehabilitate
Use the following description… If the project will…
a. Construct Build a brand new road or surface transportation facility.
b. Expand Add on to an existing road or surface transportation facility.
c. Modify Change a road or surface transportation facility.
d. Improve Provide a distinct new feature to a road or surface transportation facility.
e. Rehabilitate Extend the useful life of a road or surface transportation facility.
Table P-2 Roads and Surface Transportation Work Codes
If the project is justified as follows…… Use the following work codes…
a. The project meets the definition of a capacity project (see Appendix A). CA GT XX
b. The project meets the definition of a standards project (see Appendix A). ST GT XX
Table P-3 Roads and Surface Transportation
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Access Road

(Construct, Expand, Modify, Improve, or Rehabilitate)
(1) The terminal development definition in Appendix A defines which portion of the access road is treated as terminal development and therefore is subject to the funding restrictions for terminal development in Table N-7.

(2) Generally only one connection from the airport to the public road is allowable. However, more than one connection is eligible if the airport surface traffic is of sufficient volume to require more than one connection (must be supported by traffic counts and a recent traffic study) or there is no landside access to reach aeronautical facilities from any portion of the access road.

(3) The connection from the airport to the public road may only extend to the nearest public highway of sufficient capacity to accommodate airport traffic.

(4) Access roads directly to or from a terminal and an eligible or an ineligible area (such as a revenue producing parking lot or rental car facility) are eligible. This is because 49 USC § 47119(a)(1)(B) provides that access roads to and from a terminal is eligible because it is directly related to moving passengers and baggage in air commerce within the airport.

(5) Access roads must be located on the airport or within a right-of-way acquired by the sponsor.

(6) The access road must serve exclusively airport traffic. This means that an access road cannot be prorated. In mixed use situations of airport/nonairport use, only the portion of the road that is beyond the non-airport access point is allowable.

(7) Related facilities such as acceleration and deceleration lanes, exit and entrance ramps, street lighting, guidance and traffic signs, and bus stops may be included in the access road project when they are a necessary part of an eligible access road.

(8) Guidance signs are not eligible unless they are required as part of an eligible road project, a major roadway reconfiguration, or a complete replacement of the signage system because the signs have met the end of their useful life. Airport entrance signs are not eligible.

(9) Per FAA policy, bike lanes are allowable as part of access road development and must meet all of the other access road requirements.

(10) The pavement must not have been reconstructed within the last 20 years; rehabilitated within the last 10 years, or resealed within the last 3 years except as allowed in Paragraph 3-12.

(11) The application of asphalt seal coats or resealing of joints in concrete pavement is also eligible as a stand-alone project provided:

(a) A major portion of the access road is being addressed;

(b) The ADO concurs with the need for the project.

(12) Recirculation roads and cell phone waiting lots are allowable if the ADO has determined that the additional costs are minimal, and can be included in the access road project, but not as a stand-alone project. Allowable cell phone waiting area costs are limited to those necessary to allow cars to remove themselves from the roadway circulation traffic and safely wait for arriving passengers. Areas for unattended car parking and amenities such as telephones, seating, flight information display boards are not considered necessary and are therefore are not eligible.

(13) Like access roads, a project for walkways that lead directly to or from a terminal is eligible terminal development per 49 USC § 47102(28)(A)(iii); and the walkway can be included as part of the access road project. Per FAA policy, walkways include surface sidewalks, moving sidewalks, tunnel walkways, stairs, and overhead walkways. Covers or canopies over surface sidewalks may be included in a walkway project when they are necessary to protect concentrations of persons from the weather such as at passenger loading or unloading areas. In addition, only the portion of the walkway that is on airport is eligible.

(14)The difference between construct, expand, modify, improve, and rehabilitate is listed in Table P-1.
A complete roadway access system that ties the public highway to the airport. CA GT AC
OT GT AC

See Table P-2 for the correct work code.
b. Service Road

(Construct, Expand, Modify, Improve, or Rehabilitate)
(1) A service road located on the airfield side of the airport is eligible if necessary for:

(a) A service road for ARFF access to a runway or runway safety area.

(b) A service road for separation of vehicles and aircraft justified on the basis of safety as determined by a 14 CFR part 139 inspector or a Runway Safety Action Team recommendation.

(c) A gravel service road located along the perimeter fence if necessary for security (and supported by a letter from TSA) or for safety (as determined by a 14 CFR part 139 inspector or a Runway Safety Action Team recommendation). The road must be on airport property and per FAA policy is limited to a 15 foot wide gravel road.

(d) A temporary gravel service road on either side of a fence during construction of the fence.

(e) A service road for access to an AIP eligible airside facility or NAVAID is eligible as part of that project or as a stand-alone project.

(2) A service road that is otherwise eligible but provides incidental access to FAA or other non-aviation related areas or facilities is still considered eligible.

(3) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table P-1.
A fully functional service road that provides access to the intended area. OT GT SV
c. Terminal People Mover

(Construct, Expand, Modify, Improve, or Rehabilitate)
(1) Per FAA policy, terminal people movers are treated the same as access roads. As such, per 49 USC § 47102(28), terminal people movers are included in the definition of terminal development and must follow the terminal building funding rules in Table N-7. Stand-alone grants can be issued for these projects.

(2) Light rail, monorail, and automated people mover systems used to transport passengers and baggage between terminals are considered eligible terminal people movers.

(3) In addition, vehicles for moving passengers between terminal facilities and between terminal facilities and aircraft is specifically eligible as terminal development under 49 USC § 47102(28)(B).

(4) Stations or stops must be on airport property and only for passenger access to the airport.

(5) If any ineligible areas (examples of ineligible costs are listed in Appendix C) are included in the system’s or station’s design, the cost for the system and station must be prorated. The requirements for including ineligible or non-AIP funded work in the contract in Paragraph 3-39 must be met.

(6) Extensive justification for an on-airport passenger transportation system is required. This justification must include a discussion of other alternatives. Any such project must be coordinated with APP-500.

(7) The sponsor must include specific information describing the vehicle or equipment that is being acquired in the project description.

(8) Per 49 USC § 47119(a)(1)(A), the airport has all safety equipment required for the airport per 49 USC § 44706 (Airport Operating Certificate), has all security equipment required by rule or regulation, and has provided for access by passenger to the area of the airport for boarding or exiting aircraft that are not air carrier aircraft.

(9) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table P-1.
A fully functional airport people mover. CA GT PM
OT GT PM

See Table P-2 for the correct work code.
d. Access Rail

(Construct, Expand, Modify, Improve, or Rehabilitate)
(1) Per FAA policy, access rails are treated the same as access roads. As such, per 49 USC § 47102(28), access rails are considered to be terminal development. Therefore, all funding restrictions for terminal development apply.

(2) Public train service to an airport must meet the same eligibility criteria as airport access roads. The rail line must be limited to only serve passengers and employees traveling to and from the airport.

(3) If any ineligible areas (examples of ineligible costs are listed in Appendix C) are included in the system’s or station’s design, the cost for the system and station must be prorated. The requirements for including ineligible or non-AIP funded work in the contract in Paragraph 3-42 must be met.

(4) The difference between construct, expand, modify, improve, and rehabilitate is listed in Table P-1.
A fully functional access rail system. CA GT RL
OT GT RL

See Table P-2 for the correct work code.

*The official list of work codes can be obtained from the automated AIP system.

Appendix Q. Land Projects

Q-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

Q-2. General Eligibility Requirements.

The acquisition of any interest in land is eligible when it is needed for airport purposes. Even though many infrastructure and construction elements are not eligible for AIP, the land they occupy is eligible for AIP funding if they meet this definition (see Appendix A).

The sponsor is responsible for maintaining adequate documentation to support costs as eligible for federal reimbursement. A documentation checklist and quality control guidelines are provided in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects, and the current version of FAA Order 5100.37, Land Acquisition and Relocation Assistance for Airport Projects.

Q-3. Applicable Land Orders, Regulations, and Advisory Circulars.

When acquiring land for an AIP assisted project (AIP in any portion of the project) the airport owner must comply with 49 CFR part 24, Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-Assisted Programs. 49 CFR part 24 requirements are described in the current version of FAA Order 5100.37, Land Acquisition and Relocation Assistance for Airport Projects, and guidance for sponsor documentation and compliance is provided in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects. The airport owner must certify to the FAA its compliance to 49 CFR part 24 for any land acquired for an AIP funded airport project.

Q-4. Appraisal Requirement.

The cost of all AIP funded real property must be supported by a real estate appraisal, accepted settlement justification and evidence of good title to the acquired property. The FAA appraisal requirements are based on 49 CFR § 24.103. These requirements are described in the current version of FAA Order 5100.37, Land Acquisition and Relocation Assistance for Airport Projects, and in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects.

The fair market value of the land at the time of purchase must be used, not the current fair market value. The exception is for privately-owned airports, where 49 USC § 47109(d) requires that the current fair market value of the land at the time of the project be used.

Q-5. Good Title Requirements for Land and Easement Acquisition.

All AIP funded land and easement acquisition must meet the requirements for good title found in Table Q-1.

Table Q-1 Good Title Requirements for Land and Easement Acquisition
The following criteria apply…
a. The sponsor must acquire sufficient right, title and interest in the property to meet project requirements (e.g., construct, operate and maintain). Property interests required in off-airport areas must be sufficient to assure that the sponsor will not be deprived of its right to occupy and use such lands for the purposes intended.
b. The sponsor must ensure marketable title to property is conveyed to the airport free and clear of any interest or encumbrance that may conflict with the project need and use of the property.
c. Airport property title and airport interests in property must be recorded in the local public land records.
d. The property title conveyed must be as appraised and agreed for the purchase.
e. The sponsor’s attorney must certify to ADO that good to title has been acquired.
f. The attorney may rely on title insurance (title company commitment of insurance of marketable title), or title abstract or an attorney’s certificate of title.

Q-6. Acceptable Land Interests.

The acceptable types of land interests that may be funded with AIP are listed in Table Q-2.

Table Q-2 Types of Land Interests
For the following type of land interest… The following applies…
a. Fee Simple. The sponsor should normally acquire the fee simple interest in land needed to construct or protect airport use or development.
b. Easements and Lesser Interests. In some instances, a lesser property interest may be appropriate if the interest is legally sufficient for the purpose of the project or the acquisition is to a lesser property interest by a court order. For instance, it may be preferable to acquire an adequate easement for the transitional surface instead of the fee interest in the land.

However, if the cost of a lesser interest, such as an easement, is nearly equivalent to the cost of fee simple interest, the sponsor must give priority to acquiring fee simple title. The ADO has an option to approve a lesser interest in such instances if the sponsor provides a valid and just reason acceptable to the ADO that substantiates the lesser interest.

Additional guidance on easement terms and requirements is provided in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects.

Q-7. Logical Boundaries.

Where feasible, land may be acquired to a logical boundary, such as existing property lines and/or boundaries created by nature such as rivers and manmade development (highways, railroads, etc.).

Q-8. Uneconomic Remnants.

When a partial acquisition would leave the owner with an uneconomic remnant, as defined in 49 CFR part 24, the airport owner must offer to purchase the remnant.

Q-9. Disposal of Excess Land.

Occasionally, the sponsor may negotiate the purchase of more of a property than is required for the airport project (such as agreeing to a whole taking versus the needed partial take from the owner’s property). In this case, AIP can be used to acquire the excess land. However, the airport sponsor must agree that it will promptly dispose of the excess land (per the requirements of Paragraph 5-68).

Q-10. Purchasing Land from a State/Local Public Agency.

The FAA must determine that land acquired from another public agency is, in fact, a bona fide sale to the sponsor, and that such land was not transferred merely for the purpose of making the land eligible for federal funding.

Q-11. Project Requirements Tables.

In addition to the information provided in the above paragraphs and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table Q-3 Land Work Codes
If the project is for… Use the following work codes…
a. Land or easement acquisition for a specific AIP eligible project. The work code for the associated project
b. Land or easement acquisition for multiple AIP eligible projects. ST LA DV (Acquire Land for Development)
ST LA DV (Acquire Easement for Development)
c. Land acquisition for airport purposes (as defined in Appendix A) that are not AIP eligible. ST LA MS (Acquire Miscellaneous Land)
Table Q-4 Land Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Acquire Land or Easements (1) The acquisition must meet the requirements of 49 CFR part 24, the current version of FAA Order 5100.37, Land Acquisition and Relocation Assistance for Airport Projects, and in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects.

(2) The land or easement must be needed for airport purposes (as defined in Appendix A) within the next 20 years.

(3) For reimbursement of previously acquired land or easements, the land or easement can be currently used for existing airport purposes or be needed for airport purposes (as defined in Appendix A) within the next 20 years.

(4) The associated development must be shown on the FAA approved airport layout plan.

(5) The sponsor must certify that the requirements of 49 CFR part 24 are being met.

(6) The Exhibit A must be updated when the purchase is complete.
Sponsor owned land or easement with good title. See Table Q-3 for the correct work code.
b. Lease Publically Owned Land (1) These are rare, so the ADO must contact APP-400 for guidance to ensure that all of the necessary requirements are being met.

(2) The federal government is not considered a public agency in this instance.

(3) The lease must meet the requirements of 49 CFR part 24, the current version of FAA Order 5100.37, Land Acquisition and Relocation Assistance for Airport Projects, and in the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects.

(4) The lease must be between the sponsor and public agency (a state, a political subdivision of a state (such as a city, municipality, or state agency), a tax-supported organization, or an Indian tribe or pueblo).

(5) The acquisition, easement, or other interest in the land is not available.

(6) The lease negotiations must meet applicable requirements of 49 CFR part 24. If the sponsor cannot condemn the land, then the lease negotiations may be exempt from the provisions of 49 CFR part 24 as a voluntary transaction (as described at 49 CFR § 24.101(b)(2)).

(7) Prepaid rent, which is payment in full in advance for the full term of the lease, is eligible. The pre-paid rent must reflect the present value of the rent payments, not to exceed the current fair market value of the real property leased.

(8) The lease term must exceed 20 years. This is because the lease term must be longer than the grant assurances for AIP construction projects.

(9) Justification must include reason why the land is not to be acquired instead of leased.

(10) Periodic rental or lease payments are not allowable.

(11) The land must be needed for airport purposes (as defined in Appendix A) within the next 20 years.

(12) The associated development must be shown on the FAA approved airport layout plan.

(13) The sponsor must certify that the requirements of 49 CFR part 24 are being met.

(14) The Exhibit A must be updated when the purchase is complete.
A long term lease that helps ensure adequate rights needed to operate the airport. See Table Q-3 for the correct work code.
c. Exchange Land or Easement (1) These are rare, so the ADO must contact APP-400 for guidance to ensure that all of the necessary requirements are being met.

(2) Appraisals must be completed for the sponsor owned land and the property to be acquired.

(3) Both properties must be appraised. If one piece of property has a higher value, the owner of that property must be offered the difference.

(4) The ADO must issue a land release before the sponsor owned land can be exchanged.

(5) The acquired land or easement must be needed for airport purposes (as defined in Appendix A) within the next 20 years.

(6) The associated development must be shown on the FAA approved airport layout plan.

(7) The sponsor must certify that the requirements of 49 CFR part 24 are being met.

(8) The Exhibit A must be updated when the purchase is complete.
Sponsor owned land or easement with good title. See Table Q-3 for the correct work code.
d. Acquire Land or Easement for Approaches (1) Land acquisition and easements for approaches are eligible for the following:

(a) Airport Design Advisory Circular Surfaces. Approach surfaces in the current version of Advisory Circular 150/530013, Airport Design. There are many approach surfaces including, but are not limited to, obstacle free zones, threshold obstacle clearance surfaces, 14 CFR part 77 surfaces, and approach and departure surfaces.

(b) 14 CFR part 77 Surfaces. Per FAA policy, obstructions to the 14 CFR part 77 primary approach and 7:1 transitional surfaces.

(c) TERPS. Any of the United States Standard for Terminal Instrument Procedures (TERPS) requirements.

(2) Land acquisition and easements (to control land use on the property) for Runway Protection Zones are eligible per the current version of Advisory Circular 150/5300-13, Airport Design.

(3) For approach protection, land acquisition and easement are limited to that necessary for the approach surfaces to obtain vertical clearance 100 feet above the elevation of the runway ends, but no more than 5,000 feet beyond the end of the runway. Beyond 5,000 feet from the runway end, it is expected that the airport sponsor will rely on local zoning and land use controls to protect approaches.

(4) The Exhibit A must be updated when the purchase is complete.

(5) For new acquisition, the land or easement must be needed within the next 20 years.

(6) For reimbursement of previously acquired land or easements, the land or easement must currently be needed or must be needed within the next 20 years.

(7) If the sponsor is purchasing an easement for approaches, it is preferable that the easement allows the sponsor to clear rather than top trees. This is because AIP can only be used to top the trees once and any future clearing on the property cannot be grant funded. The actual clearing or topping is funded under an obstruction removal projects. If the easement and obstruction removal is done at the same time, the entire project is coded as obstruction removal.

(8) Rebuilding a facility in a new location is only eligible if the facility meets the requirements in Paragraph 3-74.

(9) Obstruction removal within runway safety areas must meet the requirements and use the work codes in Appendix G.

(10) Obstruction removal to support Area Navigation (RNAV) approaches is covered elsewhere in Appendix D and has a different work code.
Sponsor owned land or easement with good title. ST LA SZ
e. Acquire Land for Noise Compatibility (1) The requirements for this type of land are contained in Appendix R. N/A N/A

*The official list of work codes can be obtained from the automated AIP system.

Appendix R. Noise Compatibility Planning/Projects

R-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

R-2. General Eligibility Requirements (The Four Types of Justification).

To be eligible, a noise compatibility project (also referred to as a noise mitigation project) must meet one of the following justification requirements in Table R-1.

Table R-1 General Eligibility Requirements for Noise Compatibility Projects
The noise compatibility project must be…
a. Included in an FAA approved 14 CFR part 150 Program. A noise compatibility project in an FAA approved 14 CFR part 150 Noise Compatibility Program (NCP). The Aviation Safety and Noise Abatement Act of 1979 (ASNA) directed the FAA to identify land uses that are normally compatible with various noise exposure levels. In response, the FAA adopted the 14 CFR part 150, Airport Noise Compatibility Planning.

The adoption of the regulation was published in the 46 Federal Register 8316 (January 26, 1981). 14 CFR part 150 serves as the guidance for many of the AIP funded noise compatibility projects. 14 CFR part 150, Appendix A includes Table 1 - Land Use Compatibility with Yearly Day-Night Average Sound Levels that defines compatible and noncompatible land uses and related structures.
b. A Facility Used Primarily For Medical or Educational Purposes. A noise compatibility project for an adversely affected facility used primarily medical or educational purposes (per 49 USC § 47504(c)(2)(D), regardless if the airport has a 14 CFR part 150 program or not). Schools and hospitals are the most typical facilities that fall under this justification.
c. In a Land Use Compatibility Plan. A noise compatibility project that is included in a land use compatibility plan prepared by a local jurisdiction surrounding a medium or large hub airport that either has not prepared a 14 CFR part 150 program or has not updated 14 CFR part 150 program in the preceding 10 years. Per 49 USC § 47141(f), grants for projects approved under an FAA accepted compatible land use plan are only allowable until September 30, 2018. After this date, the ADO must check the current legislation to see if the sunset date was extended.
d. In a Record of Decision. A noise mitigation project approved in an environmental record of decision for an airport development project.

R-3. Noncompatible Land Uses.

Table 1 of Appendix A in 14 CFR part 150 contains the requirements for determining when various land uses are noncompatible with aircraft noise, and therefore potentially eligible for AIP funding.

R-4. Not all 14 CFR part 150 Measures are Eligible.

Not all of the projects included in an approved 14 CFR part 150 program are eligible for AIP funding. Examples of ineligible 14 CFR part 150 NCP measures are listed in Appendix C.

R-5. Reduction Due to Aircraft Noise Associated with the Airport.

Noise insulation projects are designed to reduce interior noise in habitable rooms or classroom areas due to aircraft noise associated with the airport (as further discussed in the current version of Advisory Circular 150/500-9, Announcement of Availability Report No. DOT/FAA/PP/92-5, Guidelines for the Sound Insulation of Residences Exposed to Aircraft Operations).

R-6. Eligible Noise Contour Threshold (or the Use of a Lower Local Standards).

The primary measurement of noise impact is the exterior noise measurement of cumulative yearly day-night average sound level (DNL), normally depicted as noise contours on a map. The noise contour is a graphical representation of the level of 24 hour average sound level in decibels for the period from midnight to midnight, obtained after the addition of ten decibels to sound levels for the periods between midnight and 7 a.m. and between 10 p.m. and midnight local time that is experienced by land uses surrounding the airport due to aircraft operations.

a. DNL 65 dB Noise Contour. The DNL 65 dB noise contour is the noise level at or above which certain land uses are not considered to be compatible (49 USC § 47502, as implemented by Table 1 of Appendix A in 14 CFR part 150). The converse is also true – because DNL 65 dB is the federal threshold for considering certain land uses as compatible, noise-sensitive land uses located outside of the DNL 65 dB noise contour are not considered to be impacted by airport related noise. They are not eligible for mitigation funding unless a lower local standard is formally adopted.

b. Community Noise Exposure Level (CNEL). The FAA recognizes CNEL (community noise exposure level) as an alternative noise metric for California. For purposes of this Handbook the metric DNL and CNEL can be used interchangeably for projects in California.

c. Lower Local Standard. The FAA can consider a lower level of noise than the DNL 65 dB noise contour only if both the jurisdictions with land use authority surrounding the airport and the sponsor have each formally adopted a lower local standard (per a footnote to Table 1 of Appendix A in 14 CFR part 150, which reads in part, “The responsibility for determining the acceptable and permissible land uses and the relationship between specific properties and specific noise contours rests with the local authorities.”). The ADO can contact APP-400 for further information on determining whether locally adopted noise contours may be considered a local standard in the 14 CFR part 150 study.

R-7. Required Validation of the Noise Exposure Maps.

Per 49 USC § 47503, the noise exposure maps that the sponsor submits to the FAA must reflect current or reasonably projected conditions. 49 USC § 47503(b) requires that sponsors update their noise exposure maps if there is a substantial increase or significant decrease in the noise contour over noncompatible land uses. 14 CFR part 150 defines a DNL 1.5 dB change or more

In addition, the FAA requires by policy that if the FAA-accepted Noise Exposure Maps used to document project eligibility are more than five years old, sponsors must confirm in writing to the ADO that the noise exposure maps upon which noise compatibility projects are based continue to be a reasonable representation of current and/or forecast conditions at the airport. The ADO must verify whether or not the noise exposure map reflects the current or projected operational conditions at the airport and associated noncompatible land uses. The ADO must also place a copy of the sponsor confirmation and ADO verification in the grant file. The ADO must not program noise compatibility projects using noise exposure maps that are more than five years old unless this process has been completed.

R-8. Interior Noise Level Requirements.

The 45 dB standard has been adopted by the FAA for interior noise. This is based on 46 Federal Register 8316 (January 26, 1981), which established the interim rule for 14 CFR part 150 and included specific requirements regarding interior noise level. This was further clarified in 1992 by the Federal Interagency Committee on Noise (FICON) findings of 45 dB to be the interior noise level that will accommodate indoor conversations or sleep.

A noise-impacted noncompatible structure must be experiencing existing interior noise levels that are 45 dB or greater with the windows closed to be considered eligible. (For schools, the 45 dB measurement is based on the number of hours of the school day.)

The calculation of interior noise level must be based on the average noise level of only the habitable rooms or parts of school that are used for educational instruction. Habitable areas of residences are living, sleeping, eating or cooking areas (single family and multifamily) per the current version of Advisory Circular 150/5000-9, Announcement of Availability Report No. DOT/FAA/PP/92-5, Guidelines for the Sound Insulation of Residences Exposed to Aircraft Operations. Bathrooms, closets, halls, vestibules, foyers, stairways, unfinished basements storage or utility spaces are not considered to be habitable. For schools, noise insulation is limited to classrooms, libraries, fixed seat auditoriums, and educators’ offices.

Areas that are not allowed under local building codes are not considered habitable. For example, a resident has converted part of a basement to a bedroom and the bedroom conversion does not meet the building code requirements to be categorized as a bedroom. The converted bedroom is not considered habitable space. For schools, areas that are used for incidental instruction, such as hallways, gymnasiums and cafeterias, are not eligible.

By policy, the FAA does not recognize a lower local standard below 45 dB for interior noise levels.

R-9. Block Rounding.

Per FAA policy, if sponsor proposes to expand noise mitigation just beyond the DNL 65 dB contour to include parcels contiguous to the project area (referred to as block rounding), the ADO has the option to approve this request if the requirements in Table R-2 are met.

Table R-2 Block Rounding Requirements
Requirements include…
a. DNL 65 dB Contour does not have a Reasonable End Point. The block rounding must be necessary to reach a reasonable end point for noise insulation projects.
b. Sponsor Provides a Detailed List of Residences. The sponsor must provide the ADO the proposed end point information, including a complete list of the specific residences (by address) that are proposed for block rounding.
c. Called Out on All Lists. On all other lists of residences, these residences must be noted as included due to block rounding.
d. ADO Determination. The ADO must review and either approve or disapprove including the proposed block rounding residences at part of the associated noise mitigation program or environmental study. The ADO must document the determination and place a copy of the determination in the grant file.
e. Logical Breakpoint. In determining the reasonable end point for noise insulation projects, the ADO must ensure that the end point is a logical breakpoint (such as a neighborhood boundary, significant arterial surface street, highway, river, other physical or natural barrier or feature) or whether the end point extends unreasonably beyond a natural break. Neighborhood or street boundary lines may help determine what is a reasonable additional number of properties.
f. Interior Noise Levels Qualify. Once a residence is approved for block rounding, its interior noise levels must meet the requirements in Paragraph R-8 in order for that particular residence to be eligible.
g. Not Applicable for Lower Local Standards. Residences that lie outside of an eligible lower local standard below DNL 65 dB (per Paragraph R-6) are not eligible for block rounding.

R-10. Neighborhood Equity.

A sponsor may consider the use of neighborhood equity when a few residences in the eligible noise contour threshold (per Paragraph R-6) that do not meet the interior noise level requirements are scattered among residences that do meet the interior noise level criteria. If sponsor proposes to use neighborhood equity provisions, the ADO has the option to approve this request if the requirements in Table R-3 are met.

Table R-3 Requirements for Neighborhood Equity
Requirements include…
a. In the Eligible Noise Contour Threshold. The residence must be in the eligible noise contour threshold (per Paragraph R-6).
b. Separate Package. The sponsor must develop a separate neighborhood equity package limited to improvements such as caulking, weather stripping, installation of storm doors or ventilation packages. The ADO must not approve the use of the standard noise insulation package for neighborhood equity residences.
c. Percent Participation Limit. Per FAA policy, the ADO must not approve neighborhood equity for more than10% of the residences in the neighborhood, (as logically bounded by either streets or other geographic delineation) or 20 residences in a phase of the noise insulation program, whichever is less. Note that the FAA has determined that PFC and airport revenue cannot be used to fund any residences beyond this limit, because homes beyond this limit are not adversely affected by airport noise.
d. APP-1 Approval for Exceeding Percent Participation Limit. In extremely rare cases, ADO may determine that the program will benefit by providing noise equity packages to more than the 10%/no more than 20 residence limit. In this instance, the ADO must have received written APP-1 approval to exceed this limit.
e. Sponsor Provides a Detailed List of Residences. The sponsor must provide the ADO with a complete list of the specific residences (by address) that are proposed for neighborhood equity.
f. Sponsor Provides a Cost Comparison. The sponsor must provide the ADO with detailed information comparing the cost of the proposed neighborhood equity package with the cost of a standard noise insulation package.
g. ADO Determination. The ADO must review and approve or disapprove the sponsor’s proposed neighborhood equity package. In their determination, the ADO must ensure that the use of the minimal neighborhood equity packages on non-eligible residences is required to allow successful completion of the overall noise insulation program in the neighborhood, thus allowing these residences to be noise insulated within the guidelines of AIP eligibility. The ADO must document the determination and place a copy of the determination in the grant file.

R-11. Pre-and Post-Testing Criteria for Noise Insulation Projects.

In order for a structure to be funded with AIP grant funding, the sponsor must follow the sampling and testing criteria listed in Table R-4.

Table R-4 Pre-and Post-Testing Criteria for Noise Insulation Projects
For the following… The requirement is…
a. Published Guidance (1) In 1992, the FAA adopted guidance on test sampling frequency and other statistical measures that can be applied to a neighborhood to estimate the interior noise levels in the residences that are in the 65 dB DNL contour. This information is compiled into the Acoustical Testing Plan. Long standing agency policy is that an airport sponsor must use the 1992 guidance to establish the existing interior noise levels to determine whether or not the building qualifies for sound insulation using AIP. The 1992 guidance is found in current version of Advisory Circular 150/5000-9, Announcement of Availability Report No. DOT/FAA/PP/92-5, Guidelines for the Sound Insulation of Residences Exposed to Aircraft Operations.

(2) The 1992 guidance was written to cover a broad range of sound insulation topics. There are recommendations in the guidance that exceed what is justified under AIP. However, just because an item is discussed in the guidance, this does not make it eligible or justified. This Handbook, not the guidance, provides the guidance for determining eligibility and justification for any project that is AIP funded.
b. Sponsor Requirements for submitting Testing Protocol to the ADO (1) The sponsor must submit the proposed testing protocol to the ADO.

(2) The ADO has the option to review the testing protocol.

(3) After ADO review or after the ADO has indicated that the testing protocol will not be reviewed, the sponsor will then noise insulate the residences in the testing phase.
c. First Step – Initial Testing (1) The first step of a noise insulation program is generally the initial testing phase. In this phase, the sponsor characterizes the neighborhood by characterizing the housing types, level of noise exposure (i.e., Location within the noise contour) and address. The sponsor must also describe the acoustical issues, number of residences to be tested and describe the acoustical criteria and testing methodology.

(2) A sponsor starting a sound insulation program in a community near the airport will typically first conduct a windshield survey of the types of residences that are in the current phase. The windshield survey catalogs the types of residences in the neighborhood, notes similarities and differences in the age, construction type, size, number of levels, and types of housing (single family or multi-family).

(3) Once the sponsor has characterized the diversity of the residences in the noise contour, it will select a representative sample of each type of similarly-constructed residences for testing, which based on industry review is typically 10% to 30%. Testing in this case means that the sponsor develops and installs a sound insulation package that the sponsor believes will reduce the interior noise level in the residence for each type of construction.

(4) In a neighborhood where the residences are made of either brick or wood siding, the sponsor will develop two different packages – one for the brick residences and one for the siding residences.

(5) The sponsor will then measure the interior noise levels and prepare a summary report detailing the effectiveness of the design package, make recommendations for any changes to the package, lists the before and after interior noise level data, and submits the package to the ADO.

(6) Reimbursement for initial and subsequent phase testing is limited to 10% of the residences of a particular type unless the sponsor has provided the justification for the request to the ADO and the ADO has approved the request.

(7) The ADO must approve or disapprove a sponsor request for reimbursement for testing more than 10%, but not more than 30%, of the residences of a particular construction type. The ADO may request APP-400 assistance in evaluating sponsor requests. A copy of the sponsor’s written request and the ADO approval or disapproval must be kept in the grant file.

(8) For requests for reimbursement for more than 30% of the residences of a particular type, the ADO must have received APP-400 approval. The request to APP-400 from the ADO must contain the sponsor’s justification for the request and the ADO’s recommendation for approval or disapproval.
d. Second Step - ADO and Sponsor Review of Initial Testing Results (1) The sponsor must review the results to determine if additional residences should be tested.

(2) The ADO has the option to review and approve or disapprove all sponsor revisions to the sampling program.
e. Special Circumstance – Resident Requests Specific Testing (1) A resident may request that their residence be tested specifically. This may be because of the condition of the home, or because the resident believes that their residence will test differently than others. These additional tests are generally allowable. However if an additional residence is tested, it must be tested both before and after any noise insulation work to ensure the 5 dB NLR is achieved.
f. Final Step – Completing the Testing Phase (1) After the completion of the testing phase, the sound insulation program will begin for the neighborhood. In these later phases, the sponsor is still expected to test from 10% to 30% of each different category of residences in the phase to revalidate the design assumptions. The results of the revalidation testing must be submitted by the sponsor to the ADO. The ADO has the option to review these test reports.

R-12. Conditions for Posting Planning Documents on the Internet.

If the sponsor, or a sponsor’s consultant, posts an AIP funded planning document on the internet, it is FAA policy that the public must not be required to register to view or download the document (even if the document is posted elsewhere without registration requirements). This is because the collection of personal data may be construed by the public as a surveillance tool for the airport, which may intimidate members of the public, dissuading them from reviewing the document. In addition 5 USC § 552a(e), The Privacy Act of 1974, prohibits the unnecessary collection of private data by Federal agencies by restricting the agency to maintain only such information about an individual as is relevant and necessary to accomplish the purpose.

R-13. Disposal of Excess/Unneeded AIP Funded Noise Land (and ADO/Sponsor Tracking).

The requirements for the disposal of excess or unneeded AIP funded noise land are contained in Paragraph 5-68.

R-14. Project Requirements Tables.

In addition to the information provided in the above paragraphs and tables, and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table R-5 Noise Compatibility Planning/Project Work Codes
If the noise mitigation planning and implementation project
is defined by where it is in the DNL, and is…
Use the following work codes…
Outside the 65 DNL. XX XX 60
Within the 65 – 69 DNL. XX XX 65
Within the 70 – 74 DNL. XX XX 70
Within the 75 DNL. XX XX 75
Table R-6 Noise Compatibility Planning/Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Conduct Noise Compatibility Program

(14 CFR part 150 Study)
(1) The study and noise exposure maps must comply with the requirements of 14 CFR part 150. An FAA approved noise compatibility program study and FAA accepted noise exposure maps. EN PL NO
b. Conduct Noise Compatibility Plan Study

(Stand-Alone Noise Exposure Map Update)
(1) The noise exposure map (NEM) update must comply with the requirements of 14 CFR § 150.21(d).

(2) Per 14 CFR § 150.21(a)(1), the noise exposure levels must be based on forecast aircraft operations at the airport for a forecast period that is at least five years in the future beginning at the date of sponsor submission.

(3) The sponsor must submit the updated noise exposure map to the ADO for FAA review.

(4) The FAA must complete the required notice and comment in the Federal Register (this is a requirement in 14 CFR § 150.21(c))

(5) The sponsor must evaluate the impact of the updated NEMs against the existing noise compatibility program (NCP).

Note: This is not a complete update of the Record of Approval and NCP – rather this is an evaluation of whether the work items in the NCP are still valid.

(6) The sponsor must submit the results of the evaluation to the ADO. The ADO must include the sponsor’s evaluation in the grant file.

(7) If, in the opinion of the FAA, the changes in the NCP impact are extensive, the FAA has the option to require an update to the NCP.
New FAA accepted noise exposure maps. EN PL NO
c. Conduct Noise Compatibility Plan Study

(Compatible Land Use Plan by State and Local Governments per 49 USC § 47141)
(1) The compatible land use planning is for an area around a large or medium hub airport.

(2) The airport has not submitted an airport noise compatibility program to the FAA under 14 CFR part 150, or has not updated its approved noise compatibility program within the preceding 10 years.

(3) The state or local government sponsor and airport have entered into a written agreement to prepare the compatible land use plan cooperatively (prior to the grant being issued).

(4) The state or local government sponsor must maintain compatible land use measures listed in the completed plan.

(5) The land use plan will be reasonably consistent with the goal of reducing existing non-compatible land uses and preventing the introduction of additional non-compatible land uses per 14 CFR part 150.

(6) The land use plan will only include measures that are within the authority of the state or local government sponsor to implement. Measures such as studying or implementing aircraft operational procedures, airport layout changes, and airport noise and access restrictions must not be included because the state or local government sponsor has no authority to carry out these measures.

(7) The airport must provide the state or local government sponsor with valid airport noise exposure maps and all noise abatement measures adopted by the airport. The airport must certify to the state or local government sponsor and the FAA that the noise exposure maps are representative of the current conditions at the airport. The state or local government sponsor must use this information when developing the land use plan.

(8) The land use plan must not duplicate and must be consistent with all of the airport’s noise compatibility measures for the same area.

(9) The state or local government sponsor must include evidence of public involvement in the land use plan.

(10) The state or local government sponsor must make provisions to implement those elements of the plan that are ineligible for federal financial assistance.

(11) Per 49 USC § 47141(f), these types of grants are only allowable until September 30, 2018. After this date, the ADO must check the current legislation to see if the sunset date was extended.
An FAA accepted (and airport approved) compatible land use plan with a capital improvement plan containing the plan measures. EN PL NO
d. Noise Mitigation

(Required by an Environmental Record of Decision)
(1) Noise mitigation projects approved in an environmental record of decision for an AIP eligible project associated is an allowable cost (or phase) of the AIP eligible project per Paragraph R-2. A noise mitigation measure that meets the requirements of the record of decision. The work code of the AIP eligible project must be used
e. Acquire Land for Noise Compatibility (To Change Land Use) (1) The project must be included in an FAA approved 14 CFR part 150 program or an FAA accepted compatible land use plan.

(2) The land must be included on the Noise Land Inventory Map and the Noise Land Reuse Plan. Noise Land Management and Requirements for Disposal of Noise Land or Development Land Funded with AIP (see Appendix B for link) contains guidance for these plans.

(3) Per 49 USC § 47141(f), grants for projects approved under an FAA accepted compatible land use plan are only allowable until September 30, 2018. After this date, the ADO must check the current legislation to see if the sunset date was extended.

(4) The project must be within the DNL 65 dB noise contour unless a lower local standard has been formally adopted.

(5) The requirements for interior noise do not apply to acquisition projects.

(6) The project may include residential relocation.

(7) The sponsor must provide the ADO with the number of people that have benefited.

(8) The acquisition must meet the requirements of 49 CFR part 24, the current version of FAA Order 5100.37, Land Acquisition and Relocation Assistance for Airport Projects, and the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects.

(9) The sponsor must certify that the requirements of 49 CFR part 24 are being met.

(10) The acquisition must meet all other applicable requirements in Appendix Q.

(11) The project must meet the general eligibility requirements in Paragraph R-2.
Sponsor owned land with good title that will allow the sponsor to clear the noncompatible land use. EN LA 60
EN LA 65
EN LA 70
EN LA 75

See Table R-5 for correct work code
f. Acquire Easement for Noise Compatibility

(No Change in Land Use)
(1) The project must be included in an FAA approved 14 CFR part 150 program or an FAA accepted compatible land use plan.

(2) Per 49 USC § 47141(f), grants for projects approved under an FAA accepted compatible land use plan are only allowable until September 30, 2015. After this date, the ADO must check the current legislation to see if the sunset date was extended.

(3) The project must be within the DNL 65 dB noise contour unless a lower local standard has been formally adopted.

(4) An easement may be conveyed by the property owner in exchange for the sound insulation improvements provided. However, an AIP grant may not include a requirement that a property owner convey an easement (or other interest in the property) to the sponsor in exchange for sound insulation. The FAA encourages sponsors to work out such voluntary property agreements locally.

(5) The acquisition must meet the requirements of 49 CFR part 24, the current version of FAA Order 5100.37, Land Acquisition and Relocation Assistance for Airport Projects, and the current version of Advisory Circular 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects.

(6) The sponsor must certify that the requirements of 49 CFR part 24 are being met.

(7) The acquisition must meet all other applicable requirements in Appendix Q.

(8) The project must meet the general eligibility requirements in Paragraph R-2.
A sponsor owned easement with good title. EN LA 60
EN LA 65
EN LA 70
EN LA 75

See Table R-5 for correct work code
g. Noise Mitigation Measures for Residences

(Full Sound Insulation Package)
(1) The project must be included in an FAA approved 14 CFR part 150 program or an FAA accepted compatible land use plan.

(2) Per 49 USC § 47141(f), grants for projects approved under an FAA accepted compatible land use plan are only allowable until September 30, 2018. After this date, the ADO must check the current legislation to see if the sunset date was extended.

(3) The project must meet the two-stage eligibility test. First the property must be in an eligible noise contour threshold (per Paragraph R-6) and second, the property must meet the interior noise level requirement (per Paragraph R-8).

(4) The sound insulation package must provide a reduction in indoor noise level of at least 5 dB and bring the average interior noise level below 45 dB. If for any reason the sponsor believes that the 5 dB reduction cannot be achieved, the sponsor must provide a written request to the ADO. The ADO must receive APP-1 concurrence to proceed with the work. APP-1 concurrence will generally be limited to ventilation packages, cases of neighborhood equity or for older or poorly maintained residences where the 5 dB reduction may be difficult to achieve.

(5) The sponsor must follow the sampling and testing criteria listed in Paragraph R-11.

(6) The following measures are allowable: window and door replacement, caulking, weatherstripping, and installing central air ventilation so that the windows can be kept closed only if the structure does not already have a central air ventilation system. The use of other measures is not allowable unless the ADO has approved the use of the measures in advance. In this case, the ADO must keep a copy of the sponsor’s request for use of other measures and a copy of the ADO approval of the request in the grant file. Eligibility is limited to the measures listed above unless the ADO has received approval from APP-400 and APP-500 to use other measures.

(7) The structure must have been built prior to October 1, 1998 unless the sponsor has demonstrated to the ADO that no published noise contours existed at that time. New noncompatible land uses created by subsequent airport development may also be eligible for funding consideration. The October 1, 1998 date is based on the FAA Final Policy on Part 150 Approval of Noise Mitigation Measures: Effect on the Use of Federal Grants for Noise Mitigation Projects, 63 Federal Register 16409 (April 3, 1998).

(8) An easement may be conveyed by the property owner in exchange for the sound insulation improvements provided. However, an AIP grant may not include a requirement that a property owner convey an easement (or other interest in the property) to the sponsor in exchange for sound insulation. The FAA encourages sponsors to work out such voluntary property agreements locally, exclusive of FAA grant stipulations.

(9) Both single and multi-family residences, including apartment buildings, are eligible.

(10) The sponsor must provide the ADO with the number and address of homes mitigated and the number of people that have benefited.

(11) Additional guidance is provided in the current version of Advisory Circular 150/5000-9, Announcement of Availability Report No. DOT/FAA/PP/92-5, Guidelines for the Sound Insulation of Residences Exposed to Aircraft Operations.

(12) Permanent Modular Buildings. Some modular structures may be classified as permanent if they meet construction guidelines applied to permanent structures.

(13) The project must meet the general eligibility requirements in Paragraph R-2.
A residence that has been mitigated to 14 CFR part 150 requirements. EN HO 60
EN HO 65
EN HO 70
EN HO 75

See Table R-5 for correct work code.
h. Noise Mitigation Measures for Residences

(Positive Ventilation Package Only)
(1) The residence must not have continuous positive ventilation and when tested, must demonstrate interior noise levels less than 45 dB.

(2) Because the interior noise measurements are conducted with “windows closed”, there may be situations where a residence does not have an existing ventilation system, but relies on keeping the windows open for air circulation.

(3) A Continuous Positive Ventilation System is the allowable package for these residences. The sponsor must also provide detailed information about the ventilation package including costs of the package compared to the cost of a standard noise insulation package. The sponsor may recommend an air conditioning system in lieu of ventilation-only.

(4) Because a ventilation system is likely to increase utility and maintenance costs for the residence, the sponsor must provide information about utility and maintenance costs for the installed equipment to the residence owners.

(5) This package is limited to those structures that do not have an existing continuous positive ventilation system. It is not available to structures that have an existing continuous positive ventilation system in place even if the system is inoperable, older, or does not meet the current building code standards for air exchanges.

(6) The project must meet the general eligibility requirements in Paragraph R-2.
A residence that has been mitigated to 14 CFR part 150 requirements. EN HO 60
EN HO 65
EN HO 70
EN HO 75

See Table R-5 for correct work code.
i. Noise Mitigation Measures for Public Buildings

(Full Sound Insulation Package)
(1) The project must meet the two-stage eligibility test. First the property must be in an eligible noise contour threshold (per Paragraph R-6) and second, the property must meet the interior noise level requirement (per Paragraph R-8).

(2) The sound insulation package must provide a reduction of at least 5 dB and bring the average interior noise level below 45 dB. Depending on the pre-insulation noise measurements, the 5 dB reduction may result in an interior noise level that is less than 45 dB. If for any reason the sponsor believes that the 5 dB reduction cannot be achieved, the sponsor must provide a written request to the ADO. The ADO must receive APP-1 concurrence to proceed with the work. APP-1 concurrence will generally be limited to ventilation packages and cases of neighborhood equity or for older or poorly maintained residences where the 5 dB reduction may be difficult to achieve.

(3) The sponsor must follow the sampling and testing criteria listed in Paragraph R-11.

(4) The following measures are allowable: window and door replacement, caulking, weatherstripping, and installing central air ventilation so that the windows can be kept closed only if the structure does not already have a central air ventilation system. The use of other measures is not allowable unless the ADO has approved the use of the measures in advance. In this case, the ADO must keep a copy of the sponsor’s request for use of other measures and a copy of the ADO approval of the request in the grant file. Eligibility is limited to the measures listed above unless the ADO has received approval from APP-400 and APP-500 to use other measures.

(5) For schools, only the actual educational areas are eligible. This normally only includes classrooms, libraries, fixed seat auditoriums, and school educator’s offices. The ADO must contact APP-400 for guidance on eligibility for facilities or areas beyond those specifically listed here. Appendix C includes some areas that have previously been determined to be ineligible.

(6) The structure must have been built prior to October 1, 1998 unless the sponsor has demonstrated to the ADO that no published noise contours existed at that time. New noncompatible land uses created by subsequent airport development may also be eligible for funding consideration. The October 1, 1998 date is based on the FAA Final Policy on Part 150 Approval of Noise Mitigation Measures: Effect on the Use of Federal Grants for Noise Mitigation Projects, 63 Federal Register 16409 (April 3, 1998).

(7) Permanent Modular Buildings. Some modular structures may be classified as permanent if they meet construction guidelines applied to permanent structures.

(8) The sponsor must certify to the ADO that the engineering plans and specifications for the noise insulation project conform to the local building code.

(9) Only the costs related to the noise insulation improvements are included in the project. If it is determined in the course of designing a noise insulation project that a building needs improvements in order to conform to local building codes, only the costs of the noise insulation are allowable.

(10) An easement may be conveyed by the property owner in exchange for the sound insulation improvements provided. However, an AIP grant may not include a requirement that a property owner convey an easement (or other interest in the property) to the sponsor in exchange for sound insulation. The FAA encourages sponsors to work out such voluntary property agreements locally, exclusive of FAA grant stipulations.

(11) The sponsor must provide the ADO with the number of students benefitting.

(12) The project must meet the general eligibility requirements in Paragraph R-2.
A public building that has been mitigated to 14 CFR part 150 requirements. EN PB 60
EN PB 65
EN PB 70
EN PB 75

See Table R-5 for correct work code
j. Noise Mitigation Measures for Public Buildings

(Positive Ventilation Package Only)
(1) The building must not have continuous positive ventilation and when tested, must demonstrate interior noise levels less than 45 dB.

(2) Because the interior noise measurements are conducted with “windows closed,” there may be situations where a public building does not have an existing ventilation system, but relies on keeping the windows open for air circulation.

(3) A Continuous Positive Ventilation System is the allowable package for these building. The sponsor must also provide detailed information about the ventilation package including costs of the package compared to the cost of a standard noise insulation package. The sponsor may recommend an air conditioning system in lieu of ventilation-only.

(4) This package is limited to those structures that do not have an existing continuous positive ventilation system. It is not available to structures that have an existing continuous positive ventilation system in place even if the system is inoperable, older, or does not meet the current building code standards for air exchanges.

(5) This package is limited to only those areas that are being noise insulated in the public building.

(6) The project must meet the general eligibility requirements in Paragraph R-2.
A public building that has been mitigated to 14 CFR part 150 requirements. EN PB 60
EN PB 65
EN PB 70
EN PB 75

See Table R-5 for correct work code
k. Install Outdoor Noise Monitoring System/Equipment

(Portable Noise Monitoring System and Equipment)
(1) The project must be included in an FAA approved 14 CFR part 150 Noise Compatibility Program or an FAA accepted compatible land use plan.

(2) Per 49 USC § 47141(f), grants for projects approved under an FAA accepted compatible land use plan are only allowable until September 30, 2018. After this date, the ADO must check the current legislation to see if the sunset date was extended.

(3) Non-airport sponsors are only eligible for portable noise monitoring equipment when used in connection with noise insulation projects managed by the non-airport sponsors.

(4) In cases where more than one sponsor is expected to engage in noise insulation programs, the airport sponsor is encouraged to acquire the equipment and make it available to other local agencies as needed.

(5) The system can be replaced every 10 years (the useful life).

(6) Portable outdoor noise monitors must be used for carrying out/certifying approved noise mitigation measures. This typically includes periodic short-term noise monitoring of aircraft operations at the airport for the purposes of reporting the results as described in an approved 14 CFR part 150 program management measure. This also means that purpose for the outdoor noise monitors cannot be for enforcement of noise rules.

(7) The sponsor must provide the ADO copies of noise monitoring data on request.

(8) Monitoring Systems are limited to outdoor monitoring systems.

(9) Only the Federal share of the least costly system that will satisfy the purposes used to justify the project is eligible. The ability to track 100% of flights and/or real time display of flight tracks is beyond the functionality necessary to meet the purposes of noise monitoring.

(10) The data ownership must remain with the sponsor, not the vendor.

(11) The sponsor is responsible for ongoing vendor service costs that may be needed to access FAA surveillance tracking data.

(12) The project must meet the general eligibility requirements in Paragraph R-2.
A completely operational portable outdoor noise monitoring system that meets the requirements of 14 CFR part 150. EN OT NO
l. Install Noise Monitoring System/Equipment

(Fixed Noise Monitoring System and Equipment)
(1) The project must be included in an FAA approved 14 CFR part 150 program or an FAA accepted compatible land use plan.

(2) Per 49 USC § 47141(f), grants for projects approved under an FAA accepted compatible land use plan are only allowable until September 30, 2018. After this date, the ADO must check the current legislation to see if the sunset date was extended.

(3) Systems are limited to circumstances where sponsors can clearly show that portable monitors are not feasible.

(4) Placement of fixed noise monitoring equipment is eligible only within the DNL 65 dB noise contour at the time of installation.

(5) Only the Federal share of the least costly system that will satisfy the purposes used to justify the project is eligible. The ability to track 100% of flights and/or real time display of flight tracks is beyond the functionality necessary to meet the purposes of noise monitoring.

(6) The data ownership must remain with the sponsor, not the vendor.

(7) The sponsor is responsible for ongoing vendor service costs that may be needed to access real-time FAA surveillance tracking data.

(8) The system can be replaced every 10 years (the useful life).

(9) Monitoring results must be in accordance with the approved 14 CFR part 150 program or compatible land use program measure.

(10) The sponsor must provide the ADO copies of noise monitoring data on request.

(11) The project must meet the general eligibility requirements in Paragraph R-2.
A completely operational fixed noise monitoring system that provides regular reporting of noise events. EN OT NO
m. Noise Mitigation Measures

(On-Airport Noise Barriers)
(1) The project must be approved in a 14 CFR part 150 program.

(2) Noise barriers, earth berms, wall structures, hush houses, ground run-up enclosures and other devices designed to shield land uses that are noncompatible with aircraft noise are eligible.

(3) The on-airport noise barrier must be public-use (not exclusive use by any specific aircraft operator).

(4) The project must reduce noise to a land use noncompatible with aircraft noise by at least 5 dB.

(5) The project must not impact wingtip clearances or air traffic control tower line of sight.

(6) The project must meet the general eligibility requirements in Paragraph R-2.
A fully functional noise reduction structure that meets the requirements of 14 CFR part 150. EN OT MS
n. Noise Mitigation Measures

(Runway and Taxiway Construction)
(1) These are rare, so the ADO must contact APP-400 for guidance to ensure that all of the necessary requirements are being met.

(2) The project must be approved in a 14 CFR part 150 program.

(3) A runway or taxiway project (including land acquisition, lighting, marking, and/or NAVAIDs) is eligible as a noise mitigation measure if it can be shown that the principal purpose and benefit of the project is for noise relief. If the noise relief is a secondary benefit, the FAA will not approve the project as a noise mitigation measure, and the project must meet the normal eligibility requirements for a runway or taxiway project.

(4) Lighting and NAVAIDs for noise must be used for the purpose of directing pilots to follow noise abatement flight paths and must be associated with a noise abatement runway.

(5) The project must meet the general eligibility requirements in Paragraph R-2.
An airfield or NAVAID installation that meets FAA design standards. EN OT MS
o. Conduct Environmental Study for Flight Procedures Approved in a 14 CFR part 150 Study (1) The requirements for environmental studies for flight procedure approvals are provided in Appendix S. N/A N/A

*The official list of work codes can be obtained from the automated AIP system.

Appendix S. Environmental Planning/Mitigation Projects

S-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

S-2. Conditions for Posting Planning Documents on the Internet.

If the sponsor, or a sponsor’s consultant, posts an AIP funded planning document on the internet, it is FAA policy that the public must not be required to register to view or download the document (even if the document is posted elsewhere without registration requirements). This is because the collection of personal data may be construed by the public as a surveillance tool for the airport, which may intimidate members of the public, dissuading them from reviewing the document. In addition 5 USC § 552a, The Privacy Act of 1974, prohibits the unnecessary collection of private data by Federal agencies by restricting the agency to maintain only such information about an individual as is relevant and necessary to accomplish the purpose.

S-3. Project Requirements Tables.

In addition to the information provided in the above paragraphs and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table S-1 Environmental Planning/Mitigation Project Requirements
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. Conduct Environmental Study (1) The project must follow the requirements of the current version of FAA Order 5050.4, National Environmental Policy Act (NEPA) Implementing Instructions for Airport Projects.

(2) Environmental Assessments (EA) and Environmental Impact Statements (EIS) must be coded separately from the proposed project (EN PL MA). The one exception is if such a study or assessment is less than $25,000, in which case it can then be coded under the proposed project.

(3) This work code is used for a study that analyzes a specific environmental condition at an airport. An example is an emissions analysis necessary to comply with the Clean Air Act (42 USC § 7401).

(4) This work code is also used for an environmental assessment for the development that is in the airport’s capital improvement plan in the next five-years.

(5) Per FAA policy, environmental assessments and environmental impact statements are considered to be planning. This allows the ADO to issue a stand-alone grant for an environmental study.
A completed environmental study that has been approved by the FAA. EN PL MA
b. Conduct Environmental Study for Flight Procedures Approved in a 14 CFR part 150 Study (1) Per 49 USC § 47504(e)(1), the project must be for the FAA to complete an environmental review for flight procedures that have been approved by the FAA in a noise compatibility plan study (14 CFR part 150 study).

(2) Until specific guidance is published by APP-400, ADOs must contact APP-400 to determine the correct procedures for conducting these studies.
A completed environmental study that has been approved by the FAA. EN PL NO
c. Conduct/Update Miscellaneous Study

(Environmental Management System)
(1) 49 USC § 47102(5)(B), makes development of an environmental management system (EMS) eligible as airport planning.

(2) The airport must be a medium or large hub airport.

(3) Only the initial development of the environmental management program is eligible.

(4) Per FAA policy, the sponsor must provide a written certification to the ADO at the end of the project that the EMS is compliant with the current version of Advisory Circular 150/5050-8, Environmental Management Systems for Airport Sponsors.
A completed environmental management system document that meets FAA advisory circular requirements. PL PL MS
d. Conduct/Update Miscellaneous Study

(Conduct Drainage Study)
(1) 49 USC § 47102, makes construction, reconstruction, repair or purchasing capital equipment for meeting the requirements of 33 USC § 1251, Federal Water Pollution Control Act eligible. A drainage study may be required to determine the means of complying with this Act. A completed drainage study that is acceptable to the ADO. PL PL MS
e. Conduct Airport Energy Efficiency Assessment (1) Per 49 USC § 47140a(a), the project must assess the airport’s energy requirements, including heating and cooling, base load, back-up power, and power for on-road airport vehicles and ground support equipment, for the purpose of identifying opportunities to increase energy efficiency at the airport.

(2) As of the publication date of this Handbook, APP-400 was developing guidance for airport energy efficiency assessments. Until this new guidance is published, ADOs must contact APP-400 for guidance.

(3) The ADO must coordinate all proposed projects with APP-400 and receive their approval for the project prior to programming the grant.

(4) It is FAA policy that airport energy efficiency studies are airport planning and are eligible for stand-alone grants.

(5) There is a limit of one assessment per five year period, unless the APP-400 concurs with an ADO determination that extraordinary circumstances exist that warrant an additional assessment.
A completed airport energy efficiency study that is acceptable to the ADO. EN PL ES
f. Energy Efficiency Equipment/ Infrastructure (1) A completed airport energy efficiency assessment that is acceptable to the ADO is a prerequisite for these projects.

(2) As of the publication date of this Handbook, APP-400 was developing guidance for projects to increase the energy efficiency of airport power sources. Until this new guidance is published, the ADO and regional office must contact APP-400 for project information prior to programming the grant.

(3) Additional guidance and requirements for this program are contained in Section 7 of Chapter 6.

(4) These grants are only for airport power sources discussed in Section 7 of Chapter 6. This differs from project costs to improve the energy efficiency of an AIP eligible project discussed in Paragraph 3-70.
A fully functional project that increases the energy efficiency of airport power sources. EN EQ MS
g. Airport Sustainability Plan

(Note that the project name, Identify the Airports Environmental Footprint was only for the pilot program and is no longer in use)
(1) The FAA has determined that this is airport planning under 49 USC § 47102(5) and is no longer a pilot program as of fiscal year 2012.

(2) Until told otherwise by APP, the ADO must obtain approval of the scope from APP-400 prior to programming these types of projects.

(3) The term sustainability master plan refers to a traditional master plan that incorporates sustainability, whereas an airport sustainability plan is a standalone document. The ADO must not fund a stand-alone airport sustainability plan if the sponsor is updating the master plan in the near future.

(4) The project must follow all requirements provided by APP400.
A completed study that the ADO has officially accepted. EN PL ES
h. Construct Deicing Containment Facility (1) 49 USC § 47102 makes construction, reconstruction, repair or purchasing capital equipment for meeting the requirements of 33 USC 1251, Federal Water Pollution Control Act eligible.

(2) The facility must be for public-use, must be for aeronautical purposes, and must not serve revenue producing areas.

(3) ACRP Report 14, Deicing Planning Guidelines and Practices for Stormwater Management Systems, is a useful reference.
A fully functional deicing containment facility that meets FAA standards. EN OT DI
i. Environmental Mitigation

(Purchase Glycol Recovery Truck)
(1) This is also referred to as a glycol vacuum.

(2) 49 USC § 47102(3)(F) and (G) makes construction, reconstruction, repair or purchasing capital equipment for meeting the requirements of 33 USC § 1251, Federal Water Pollution Control Act eligible.

(3) The airport must own and operate the truck.
A fully functional glycol recovery truck that meets FAA standards. EN OT MT
j. Environmental Mitigation

(Required by an Environmental Determination)
(1) Environmental mitigation projects (such as wetland mitigation) approved in an environmental record of decision for an AIP eligible project is and allowable cost (or phase) of the AIP eligible project.

(2) The costs of wetland monitoring for the required period of monitoring that is included in the record of decision, up to a maximum of five years is an allowable cost.
An environmental mitigation measure that meets the requirements of the environmental determination. The work code of the associated AIP eligible project must be used
k. Voluntary Airport Low Emissions (VALE) Infrastructure (1) The ADO must coordinate all proposed projects with APP-400 and receive their approval for the project prior to programming the grant.

(2) A large volume of guidance on this subject is available at the Airports Organization website.

(3) Terminal gate air conditioning, heating and electric power is eligible as terminal development outside of the VALE program and does not require the airport to be in a nonattainment or maintenance area per 49 USC § 47102(3)(O). If the work is not approved under VALE, the ADO must code this work as terminal development and follow the terminal development requirements in Appendix N.
A fully functional VALE infrastructure. EN EQ MS
l. VALE Vehicle (1) The ADO must coordinate all proposed projects with APP-400 and receive their approval for the project prior to programming the grant.

(2) A large volume of guidance on this subject is available at the Airports Organization website.
A fully functional VALE vehicle. EN EQ MS
m. Zero Emissions Infrastructure (1) The ADO must coordinate all proposed projects with APP-400 and receive their approval for the project prior to programming the grant.

(2) The requirements, including that the Federal share is restricted to 50% per 49 USC § 47136a(d), are discussed in Section 6 of Chapter 6.
Fully functional zero emissions infrastructure. EN EQ ZE
n. Zero Emissions Vehicle (1) The ADO must coordinate all proposed projects with APP-400 and receive their approval for the project prior to programming the grant.

(2) The requirements, including that the Federal share is restricted to 50% per 49 USC § 47136a(d), are discussed in Section 6 of Chapter 6.
A fully functional zero emissions vehicle. EN EQ ZE

*The official list of work codes can be obtained from the automated AIP system.

Appendix T. Military Airport Program Projects

T-1. How to Use This Appendix.

This appendix is not a valid stand-alone document for making eligibility and justification determinations. The information in this appendix must be used in conjunction with the Handbook, especially the project cost requirements in Chapter 3.

T-2. Project Requirements Tables.

In addition to the information provided in the above paragraph and the following tables, Appendix C contains examples of prohibited projects and costs and is very useful to use alongside this appendix.

Table T-1 Distinctions between Construct, Expand, Modify, Improve, and Rehabilitate
Use the following description… If the project will…
a. Construct Build a brand new building.
b. Expand Add on to an existing building.
c. Modify Change a building.
d. Improve Provide a distinct new feature to a building.
e. Rehabilitate Extend the useful life of a building by completing major renovation or major replacement of parts of the building.
Table T-2 Military Airport Program Project Requirements (for typical projects)
What Can Be Done If Justified Factors to Consider For Justification and Eligibility Required Usable Unit of Work and Required Outcome Work Code*
a. All regularly eligible AIP projects (1) Unless otherwise specified in this table, all of the justification and eligibility factors that would normally be associated with the project, airport, and sponsor apply.

(2) The FAA must have officially approved the airport and project for MAP funding before the grant is programmed.

(3) The project must aid in the conversion of a military or former military facility to civilian use.

(4) Per 49 USC § 47118(e), total MAP funding may not exceed $7 million per year per airport for terminal projects. Per 49 USC § 47118(f), total MAP funding may not exceed $7 million per year per airport for construction, improvement, or repair of airport surface parking lots, fuel farms, utilities, hangars and air cargo terminal building facilities that are 50,000 square feet or less. Hangars and air cargo terminal building facilities that are larger than 50,000 square feet are not eligible for funding.

(5) Per 49 USC § 47118(e), terminal gate projects must not be leased for more than 10 years and must not be subject to a majority in interest clause.

(6) Per APP-500 policy, the project justification must only be based on civilian operations.

(7) The sponsor must have good title to the land on which the project sits as discussed in Table 6-14.
Same as for the regularly eligible AIP project. Same as for the regularly eligible AIP project.
b. Miscellaneous Building

(Construct, Expand, Modify, Improve, or Rehabilitate)

(Hangar)
(1) The normal AIP restrictions for hangars do not apply (such as the requirement to meet airside needs, the restriction on discretionary, the restriction by funding type, and the restriction by airport type).

(2) Except as noted above, all of the justification and eligibility factors that would normally be associated with the project, airport, and sponsor apply.

(3) The FAA must have officially approved the airport and project for MAP funding before the grant is programmed.

(4) The project must aid in the conversion of a military or former military facility to civilian use.

(5) Per 49 USC § 47118(f), total MAPfunding may not exceed $7 million per year per airport for construction, improvement, or repair of airport surface parking lots, fuel farms, utilities, hangars and air cargo terminal building facilities that are 50,000 square feet or less.

(6) Per APP-500 policy, the project justification must only be based on civilian operations.

(7) The sponsor must have good title to the land on which the project sits as discussed in Table 6-13.
A fully functional aircraft hangar. ST BD MS
c. Miscellaneous Building

(Construct, Expand, Modify, Improve, or Rehabilitate)

(Cargo Building)
(1) The cargo building must not be exclusive use (see Appendix A for a definition and references on exclusive use).

(2) The facility must be 50,000 square feet or less.

(3) Except as noted above, all of the justification and eligibility factors that would normally be associated with the project, airport, and sponsor apply.

(4) The FAA must have officially approved the airport and project for MAP funding before the grant is programmed.

(5) The project must aid in the conversion of a military or former military facility to civilian use.

(6) Per 49 USC § 47118(f), total MAP funding may not exceed $7 million per year per airport for construction, improvement, or repair of airport surface parking lots, fuel farms, utilities, hangars and air cargo terminal building facilities that are 50,000 square feet or less.

(7) Per APP-500 policy, the project justification must only be based on civilian operations.

(8) The sponsor must have good title to the land on which the project sits as discussed in Table 6-14.
A fully functional cargo building. ST BD MS
d. Construct Utilities (1) Eligible costs include utility upgrades necessary to meet code requirements, to support the civilian function of a MAP airport, or to allow utilities serving the civilian portion of the base to be separated from the military portion.

(2) Except as noted above, all of the justification and eligibility factors that would normally be associated with the project, airport, and sponsor apply.

(3) The FAA must have officially approved the airport and project for MAP funding before the grant is programmed.

(4) The project must aid in the conversion of a military or former military facility to civilian use.

(5) Per 49 USC § 47118(e), total MAP funding may not exceed $7 million per year per airport for terminal projects. Per 49 USC § 47118(f), total MAP funding may not exceed $7 million per year per airport for construction, improvement, or repair of airport surface parking lots, fuel farms, utilities, hangars and air cargo terminal building facilities that are 50,000 square feet or less. These limits include the costs of utility projects.

(6) Per APP-500 policy, the project justification must only be based on civilian operations.

(7) The sponsor must have good title to the land on which the project sits as discussed in Table 6-14.
A fully functional utility system. OT OT FF
e. Parking Lot

(Construct or Rehabilitate)
(1) The parking lot must be a surface parking lot.

(2) The other normal AIP restrictions for parking lots do not apply (such as the restriction by airport type and the restriction against revenue production).

(3) Except as noted above, all of the justification and eligibility factors that would normally be associated with the project, airport, and sponsor apply.

(4) The FAA must have officially approved the airport and project for MAP funding before the grant is programmed.

(5) The project must aid in the conversion of a military or former military facility to civilian use.

(6) Per 49 USC § 47118(f), total MAP funding may not exceed $7 million per year per airport for construction, improvement, or repair of airport surface parking lots, fuel farms, utilities, hangars and air cargo terminal building facilities that are 50,000 square feet or less.

(7) Per APP-500 policy, the project justification must only be based on civilian operations.

(8) The sponsor must have good title to the land on which the project sits as discussed in Table 6-14.
A fully functional parking lot. OT OT PA
f. Fuel Farms

(Construct, Repair, or Improve)
(1) The normal AIP restrictions for fuel farms do not apply (such as the restriction by airport type and the restriction against revenue production).

(2) Except as noted above, all of the justification and eligibility factors that would normally be associated with the project, airport, and sponsor apply.

(3) The FAA must have officially approved the airport and project for MAP funding before the grant is programmed.

(4) The project must aid in the conversion of a military or former military facility to civilian use.

(5) Per 49 USC § 47118(f), total MAP funding may not exceed $7 million per year per airport for construction, improvement, or repair of airport surface parking lots, fuel farms, utilities, hangars and air cargo terminal building facilities that are 50,000 square feet or less.

(6) Per APP-500 policy, the project justification must only be based on civilian operations.

(7) The sponsor must have good title to the land on which the project sits as discussed in Table 6-14.

(8) The facility must meet the requirements of 40 CFR § 112.8, Spill Prevention, Control, and Countermeasure Plan Requirements for On-Shore Facilities (excluding production facilities).
A fully functional fuel farm. OT OT FF
g. Operational and Maintenance Expenses

(per 49 USC § 47117(e) (1)(B))
(1) The airport cannot be a commercial service airport.

(2) The ADO must restrict the grant amount for this type of work to $30,000 in any fiscal year.

(3) The FAA must have determined that the airport is adversely affected by the base closure or realignment.

(4) The sponsor of the airport must certify to the ADO that the airport would otherwise close if the airport does not receive the grant.

(5) The FAA must have officially approved the airport and project for MAP funding before the grant is programmed.
An airport that remains open. The ADO must contact APP-520 for the correct work code.
h. A project to preserve or enhance minimum airfield infrastructure under 49 USC § 47118(h)

(Safety Critical Airports)
(1) APP-1 must have designated the airport as a safety critical airport.

(2) The APP-500 must have officially approved the project for MAP funding before the grant is programmed.

(3) The normal AIP restrictions for these projects do not apply.

(4) The airport is federally owned.

(5) The project is necessary to meet the minimum safety and emergency operational requirements established under 14 CFR part 139.

(6) The project is necessary to support emergency diversionary operations for transoceanic flights in locations that meet the following criteria:

(a) Locations within United States jurisdiction or control.

(b) Locations where there is a demonstrable lack of diversionary airports within the distance or flight-time required by regulations governing transoceanic flights.
A completed project that meets 49 USC § 47118(h). Same as for the regularly eligible AIP project.

*The official list of work codes can be obtained from the automated AIP system.

Appendix U. Sponsor Procurement Requirements

(Including 2 CFR §§ 200.317-200.326 (formerly 49 CFR § 18.36))

U-1. Appendix Layout.

This appendix contains 2 CFR §§ 200.317-200.326 in its entirety, with clarifications. As discussed in detail in Paragraph 1-7, this regulation replaced 49 CFR § 18.36 on December 19, 2014.

The remaining paragraphs in this Appendix contain additional sponsor contracting and miscellaneous procurement issues not directly addressed in CFR §§ 200.317-200.326.

Section 10 of Chapter 3 contains ADO procurement responsibilities.

U-2. Sponsor Force Account Costs.

Procurement is obtaining services from commercial sources, therefore, sponsor force account work does not fall under the procurement rules of 2 CFR §§ 200.317-200.326. The rules for sponsor force account work are contained in Paragraph 3-53.

U-3. Sponsor Furnished Material or Supplies.

If a sponsor wishes to provide materials or supplies within an AIP funded project, the sponsor must obtain prior written approval from the ADO. The sponsor must provide a written statement to the ADO indicating whether the material or supplies have been procured per 2 CFR §§ 200.317-200.326 and meet all applicable federal contract provisions, which can be found on the FAA Office of Airports website (see Appendix B for link). The ADO also has the option to request that the sponsor submit additional documentation to support this statement.

The requirements for the ADO to concur with the use of sponsor furnished materials or supplies are contained in Paragraph 3-36.

U-4. Buy American Requirements.

The Buy American Preferences under 49 USC § 50101 require that all steel and manufactured goods used in AIP funded projects are produced in the United States. Detailed sponsor and ADO requirements are included in Appendix X.

U-5. Suspension or Debarment of Persons or Companies.

Table U-1 contains the requirements sponsors must follow regarding persons or companies that have been excluded from working on AIP funded projects.

Additional information on suspension and debarment is available on the FHWA Construction Program Guide/Suspension and Debarment and the current version of DOT Order 4200.5, Suspension and Debarment, and Ineligibility Procedures.

Table U-1 Sponsor Requirements Regarding Suspension or Debarment
For the following… The sponsor requirements include…
a. The sponsor is awarding a contract. 2 CFR part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) prohibits a sponsor from entering into a new contract with a person or company that is suspended or debarred. A sponsor must check the System for Award Management (SAM) website (see Appendix B for link) for every procurement to ensure that no suspended or debarred firms or individuals bid on, or are part of an AIP contract.
b. A person or company currently working on an AIP project is suspended or debarred. If the federal government suspends or debars a person or company while the person or company is working on an AIP funded project, the sponsor must follow the procedures in 2 CFR part 180 (Subpart C) OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), and 2 CFR part 1200, Nonprocurement Suspension and Debarment.
c. It appears that a person or company might need to be suspended or debarred. If the sponsor becomes aware of this situation, the sponsor must pursue their own contractual remedies and has the option to contact the ADO with this information.
d. The sponsor has suspended or debarred a person or company. Per DOT Order 4200.5, Suspension and Debarment Procedures and Ineligibility, the sponsor must notify the ADO.

U-6. Terminology Used in Industry

Industry terminology is evolving and may differ from the terminology contained in 2 CFR §§ 200.317-200.326. This is especially true in 2 CFR § 200.320(d) for competitive proposals. Sponsors are cautioned that the many project delivery methods, regardless of the terminology, must still conform to the basic requirements within this regulation.

U-7. Prohibited Light Emitting Diode (LED) Lighting.

The list of LED lighting that is prohibited from AIP funding is included in Paragraph C-2.

The sponsor must separately procure the prohibited LED lighting equipment from any associated AIP funded project. However, the sponsor may include the installation in the contract of the associated AIP funded project. The eligibility for the purchase and installation of this equipment is contained in Paragraph 3-93.

Sponsors must notify the ADO when the sponsor is proposing to procure prohibited LED lighting concurrently with an associated AIP funded project and confirm that the procurement of the lighting equipment will be separate from the associated AIP funded project. The ADO has the option to review the sponsor’s procurement documents to ensure that the sponsor has separated AIP funded procurement and prohibited LED lighting equipment procurement.

U-8. Why 2 CFR §§ 200.317-200.326 is Reproduced in This Appendix.

2 CFR §§ 200.317-200.326 is a critical companion document to the Handbook, and sponsors and ADOs should refer to its contents frequently. Therefore, this regulation has been included below in its entirety. In addition, clarifications have been added under the sections as appropriate.

U-9. 2 CFR § 200.317 - Procurements by States.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.317 Procurements by states.

When procuring property and services under a Federal award, a state must follow the same policies and procedures it uses for procurements from its non-Federal funds. The state will comply with § 200.322 Procurement of recovered materials and ensure that every purchase order or other contract includes any clauses required by section § 200.326 Contract provisions. All other non-Federal entities, including subrecipients of a state, will follow §§ 200.318 General procurement standards through 200.326 Contract provisions.

Table U-2 AIP Handbook Clarification of 2 CFR § 200.317 - Procurements by States
Clarifications include…
(1) Difference Between State Procurement Standards and State Design, Planning, or Construction Standards. State procurement standards are not the same thing as the state planning, design, or construction standards discussed in Paragraph 3-26.
(2) Buying off a State Schedule. A sponsor is not allowed to purchase off a state schedule unless the state procurement includes all of the required causes in 2 CFR § 200.317.
(3) Subrecipient of States. Per 2 CFR § 1201.317, the DOT has provided the following exception:

(a) Notwithstanding 2 CFR § 200.317, subrecipient of states must follow such policies and procedures allowed by the State when procuring property and services under a Federal award.

U-10. 2 CFR § 200.318 - General Procurement Standards.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.318 General procurement standards.

(a) The non-Federal entity must use its own documented procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in this section.

(b) Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.

(c)

   (1) The non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award and administration of contracts. No employee, officer, or agent must participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, non-Federal entities may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non-Federal entity.

   (2) If the non-Federal entity has a parent, affiliate, or subsidiary organization that is not a state, local government, or Indian tribe, the non-Federal entity must also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest means that because of relationships with a parent company, affiliate, or subsidiary organization, the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization.

(d) The non-Federal entity's procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach.

(e) To foster greater economy and efficiency, and in accordance with efforts to promote costeffective use of shared services across the Federal government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services.

(f) The non-Federal entity is encouraged to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs.

(g) The non-Federal entity is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost.

(h) The non-Federal entity must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.

(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.

(j)

   (1) The non-Federal entity may use time and material type contracts only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time and material type contract means a contract whose cost to a non-Federal entity is the sum of:

      (i) The actual cost of materials; and

      (ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.

   (2) Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the non-Federal entity awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.

(k) The non-Federal entity alone must be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the non-Federal entity of any contractual responsibilities under its contracts. The Federal awarding agency will not substitute its judgment for that of the non-Federal entity unless the matter is primarily a Federal concern. Violations of law will be referred to the local, state, or Federal authority having proper jurisdiction.

Table U-3 AIP Handbook Clarification of 2 CFR § 200.318 - General Procurement Standards
Clarifications include…
(1) Required Notification to ADO. Sponsors are responsible for complying with 2 CFR §§ 200.317-200.326. If the sponsor’s procurement procedures or operations fail to comply with 2 CFR §§ 200.317-200.326, the sponsor must notify the ADO in writing.
(2) Intergovernmental Agreement. An example where an intergovernmental agreement may be appropriate is where several small airports would like to purchase an AWOS-A for each of the airports. Another example is where a state aviation department enters into a task order contract for eligible pavement maintenance at multiple airports within the state.
(3) Time and Materials Contract. The time and materials contract discussed under 2 CFR § 200.318(j) is only used in the rare instance that no other contract method is suitable.
(4) Suitable Contract. The sponsor is the entity that determines contract suitability under 2 CFR § 200.318(j)(1).
(5) Fixed Hourly Rate. Under 2 CFR § 200.318(j), the hourly rate is fixed for the duration of the contract and cannot be changed when salaries increase.
(6) Value Engineering. Per FAA policy, sponsors are required to use value engineering for new primary airports. In addition, ADOs have the option to require sponsors to use value engineering for unusually complex projects of greater than average costs (or require cost-benefit studies, present worth analysis, the study of alternatives, tactical planning, or other forms of technical evaluation). Value engineering must follow the requirements of the current version of Advisory Circular 150/5300-15, Use of Value Engineering for Engineering and Design of Airport Grant Projects. In addition, the ADO must have concurred in writing on the scope of the value engineering contract prior to the work commencing. Sponsors are cautioned that significant advance preparation may be needed for value engineering.
(7) Sponsor Written Protest Procedures. Per FAA policy (formerly captured in 49 CFR § 18.36(b)(12)), the sponsor must have written protest procedures in place before initiating any procurement actions that will be funded with AIP. The protest procedures must define how the sponsor will handle and resolve disputes relating to their procurements and must disclose information regarding the protest to the ADO. A protestor must exhaust all administrative remedies with the sponsor before pursuing a protest with the ADO.
(8) Submittal of All Protests and Appeals to ADO. Per FAA policy, the sponsor must send a copy of the protest and the sponsor’s written protest procedures to the ADO without delay. The sponsor must also send a copy of the resolution to the ADO. The ADO will not formally act on bid protests until the protester has exhausted all administrative remedies with the sponsor and the protester submits a formal appeal to the ADO. The ADO’s role is limited to a review of 1) violations of Federal law and rules, and 2) violations of the sponsor’s protest procedures.
(9) Defects in Bid Solicitation. Per FAA policy, if a protester formally disputes the procurement because the bid solicitation is allegedly defective, it is the responsibility of the protester to notify the sponsor in writing before the bid opening (or before a reasonable deadline set by the sponsor). This will allow the sponsor to correct the deficiency by amending the solicitation. Per FAA policy, if a protester disputes a defective solicitation after bid opening, the sponsor has the choice of rejecting the protest without action if state and/or local procurement rules allow. This is because a protester normally has enough time to protest before bid opening. If the sponsor uses a shortened bidding time (such as 10 days), the FAA recommends that the sponsor accept protests up to contract award. If the protester is not satisfied with the way that the sponsor has resolved the protest, the protester has the option to appeal to the ADO. The ADO acceptance of a Sponsor Certification or the ADO approval of the plans and specifications does not relieve the sponsor of their responsibility for the accuracy, completeness, or technical content of the plans and specifications.
(10) Improper Evaluation of Bids. While protests pertaining to defective solicitations are made prior to bid opening, protests regarding improper bid evaluations occur after bid opening. If the protester believes the sponsor has improperly awarded the project, it is the responsibility of the protester to notify the sponsor in writing of their protest. If the protester is not satisfied with the way that the sponsor has resolved the dispute, the protester has the option to appeal to the ADO.
(11) Switching Suppliers or Subcontractors. A contractor may switch suppliers or subcontractors as long as there is no change in the bid and the requirements of 49 CFR part 26 are met. There is no Federal requirement preventing a contractor from switching suppliers or subcontractors as long as there is no change in the bid. However, the sponsor must not influence the contractor’s selection of subcontractors or suppliers. If the sponsor directs or influences a change in supplier or subcontractor, this would be a 2 CFR §§ 200.317-200.326 violation since the sponsor is interfering with the open and competitive market.
(12) Potential Funding Impacts. Failure of the sponsor to properly resolve a bid protest or an ADO identified violation may result in a loss of AIP funding.
(13) Submittal of Resolutions to the ADO. The sponsor must notify the ADO in writing how all bid protest and appeals were resolved.
(14) Restrictions on Payment Requests for Disputed Costs. If the project is already under grant, the sponsor must not request payments for the disputed costs.

U-11. 2 CFR § 200.319 - Competition.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.319 Competition.

(a) All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, and invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:

   (1) Placing unreasonable requirements on firms in order for them to qualify to do business;

   (2) Requiring unnecessary experience and excessive bonding;

   (3) Noncompetitive pricing practices between firms or between affiliated companies;

   (4) Noncompetitive contracts to consultants that are on retainer contracts;

   (5) Organizational conflicts of interest;

   (6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and

   (7) Any arbitrary action in the procurement process.

(b) The non-Federal entity must conduct procurements in a manner that prohibits the use of statutorily or administratively imposed state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

(c) The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations:

   (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equivalent” description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated; and

   (2) Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.

(d) The non-Federal entity must ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. Also, the non-Federal entity must not preclude potential bidders from qualifying during the solicitation period.

Table U-4 AIP Handbook Clarification of 2 CFR § 200.319 - Competition
Clarifications include…
(1) Unfair Competitive Advantage. Per 2 CFR § 200.319, contractors and consultants who develop or draft specifications, requirements, statements of work, invitations for bids, or requests for proposals on a project are not allowed to bid or submit a proposal on that project.
(2) Brand Name or Equal. If an existing FAA technical specification establishes all necessary performance requirements, the FAA considers the use of a brand name or equal to be a restriction on competition. A sponsor must not disqualify a material, product, or service for not having a characteristic that the brand name material, product, or service possesses if the characteristic was not explicitly identified in the technical requirements.
(3) Matching Existing Equipment. Sponsors often want to specify a particular company or brand of equipment so that the acquired equipment matches what is currently at the airport. The requirements for these situations are contained in Paragraph 3-36.
(4) Required Notification to ADO. If the specification requires a brand name or equal product, the sponsor must notify the ADO in writing prior to the award. A sponsor requiring that contractors obtain sponsor approval for a product prior to the award if the product is not a specified brand name or equal. This could unduly limit competition by placing additional burdens on the non-brand name product.
(5) Examples of situations that do not unduly limit competition. Some examples include:

(a) A sponsor limiting the height of an ARFF vehicle based on the existing height of the ARFF building door.

(b) A sponsor specifying sign face dimensions to fit in the existing sign units because the taxiways have been renamed as a result of an AIP funded project.
(6) Examples of situations that could unduly limit competition. Some examples include:

(a) A sponsor specifying Company X or equal for an L-858R, Mandatory Instruction Sign. Since an existing FAA technical specification establishes all necessary performance requirements, it is unnecessary for the sponsor to specify an actual company and implies a sponsor preference.

(b) A sponsor specifying that an ARFF truck windshield wiper must be mounted on the top center of the windshield. However, this is not a required feature for performance of the ARFF vehicle and is not a standard feature for ARFF trucks for all manufacturers. This places an unreasonable requirement that could unduly limit competition.

(c) A sponsor including a requirement for personal attendance at a pre-bid meeting for a project. Contractors and suppliers may not need to attend a pre-bid meeting if they are already very familiar with the project site, or have another member of the bidding team attending the meeting. This places an unreasonable requirement that could unduly limit competition.
(7) Geographical Preference. Some examples of geographical preference that unduly limit competition are:

(a) A sponsor requiring a vendor to have local maintenance support within 50 miles or 40 minutes away from the airport.

(b) A sponsor requiring that a percentage of employees reside in the city, county, or state boundaries.

(c) A sponsor requiring that a percentage of the required materials be purchased from companies located in the city, county, or state boundaries.

U-12. 2 CFR § 200.320 - Methods of Procurement to be Followed.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.320 Methods of procurement to be followed.

The non-Federal entity must use one of the following methods of procurement.

Table U-5 AIP Handbook Clarification of 2 CFR § 200.320 - Methods of Procurement to be Followed
Clarifications include...
(1) Difference from Procurement of Professional Services. Sponsors must not confuse the small purchase procurement procedures with the requirements for procurement of professional services discussed in the current version of Advisory Circular 150/5100-14, Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects. The procurement of professional services is not tied to the small purchase procedure threshold ($150,000) noted above.
(2) Sponsor Documentation. Sponsors must adequately document all quotations in writing and make this available to the ADO upon request. It is FAA policy that adequate documentation for projects over $10,000 includes a letter request from the sponsor and a written estimate from each qualified source. For projects $10,000 or below, it is FAA policy that the sponsor has the option of obtaining the quotes verbally as long as the sponsor documents the results in writing.
(3) Submittal of Technical Specifications to ADO. Per 2 CFR § 200.324(a), sponsors must submit all technical specifications to the ADO upon the ADO’s request. This may include the plans, the specifications, the engineer’s report, and any other items that make up the procurement package.
(4) Calculation of $150,000 and $10,000. It is FAA policy that the accepted quote must come below $150,000 for the sponsor to use the small procurement process. It is FAA policy that the accepted quote must come below $10,000 for the sponsor to obtain quotes verbally.
(5) Indefinite Quantity/Delivery (Task Orders for Construction and Equipment). This contracting method defines a minimum and maximum quantity that may be obtained at any time during the contract period through individual task orders. This contracting method is rarely used for AIP projects. In order to be used for an AIP project, the contract must include any clauses required by Federal statutes and Executive orders and their implementing regulations and must not exceed 12 months unless the contract contains provisions for updating Davis-Bacon requirements. In addition, it is FAA policy that the contract must not exceed five years.
(6) Proposals Containing Ineligible and/or non-AIP Funded Work. Per FAA policy, sponsors must obtain written ADO concurrence before including ineligible and/or non-AIP funded work within the same contract (see Paragraph 3-39). Per FAA policy, the sponsor must award to the lowest responsive and responsible bidder on the AIP-funded portion of the contract when the bid is separated by line items or bid schedules. The sponsor must award to the lowest responsive and responsible bidder on the entire contract when the bid will be prorated for Federal participation.
(7) Projects Exceeding Design Standards. Per FAA policy, sponsors must obtain written ADO concurrence before designing or bidding a project that will exceed FAA design standards (see Paragraph 3-24).
(8) Proposals Containing Improper Bid Alternates. Sponsors must not use the procurement process, such as including bid alternates, as a means of determining project costs. For example, a sponsor has justified the acquisition of a 1,500 gallon ARFF vehicle but plans to acquire a 3,000 gallon ARFF vehicle, paying the additional costs with local sources of funding. The sponsor is not allowed to bid both vehicles because the procurement process is based on an expectation that the sponsor intends to complete the procurement. In this case, the sponsor has no plan to acquire a 1,500 gallon ARFF vehicle and is simply using the procurement process as a cost estimating tool, which is not allowed.

U-13. 2 CFR § 200.320(a) - Procurement by Micro-Purchases.

The following italicized text is directly quoted from 2 CFR part 200.

(a) Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,000 (or $2,000 in the case of acquisitions for construction subject to the Davis-Bacon Act). To the extent practicable, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable.

Table U-6 AIP Handbook Clarification of 2 CFR § 200.320(a) - Procurement by Micro-Purchases
Clarifications include…
(1) New Requirement.This requirement was not found in 49 CFR 18.36.
(2) Construction Supplies and Services. This is limited to $2,000 under the micro-purchase procurement method.
(3) Non- Construction Supplies and Services. This is limited to $3,000 under the micro-purchase procurement method.
(4) Abuse of Micro-Purchase Procurement Method.Sponsors must not split a single procurement action into multiple procurement actions in order to apply the micro –purchase procurement method..

U-14. 2 CFR § 200.320(b) - Procurement by Small Purchase Procedures.

The following italicized text is directly quoted from 2 CFR part 200.

(b) Procurement by small purchase procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources.

Table U-7 AIP Handbook Clarification of 2 CFR § 200.320(b) - Procurement by Small Purchase Procedures
Clarifications include…
(1) Clarifications for all Procurement Methods. Additional clarifications that apply to all procurement methods, including small purchase procurement, are contained in Paragraph U-12.
(2) Adequate Number of Qualified Sources. The FAA considers an adequate number of qualified sources to be two or more for small purchase procedures (the same as for competitive bids under 2 CFR § 200.320(c)(1)(ii)). If the sponsor is only able to obtain a quotation from one qualified source, then the sponsor must then follow sole source requirements.
(3) Simplified Acquisition Threshold. The simplified acquisition threshold is set in 2 CFR § 200.88 at $150,000. This was previously directly referenced in 49 CFR § 18.36(d)(1) as $100,000.

U-15. 2 CFR § 200.320(c) - Procurement by Sealed Bids (Formal Advertising).

The following italicized text is directly quoted from 2 CFR part 200.

(c) Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction, if the conditions in paragraph (c)(1) of this section apply.

   (1) In order for sealed bidding to be feasible, the following conditions should be present:

      (i) A complete, adequate, and realistic specification or purchase description is available;

      (ii) Two or more responsible bidders are willing and able to compete effectively for the business; and

      (iii) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.

   (2) If sealed bids are used, the following requirements apply:

      (i) The invitation for bids will be publicly advertised and bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids;

      (ii) The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;

      (iii) All bids will be publicly opened at the time and place prescribed in the invitation for bids;

      (iv) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and

      (v) Any or all bids may be rejected if there is a sound documented reason.

Table U-8 AIP Handbook Clarification of 2 CFR § 200.320(c) - Procurement by Sealed Bids (Formal Advertising)
Clarifications include…
(1) Clarifications for all Procurement Methods. Additional clarifications that apply to all procurement methods are contained in Paragraph U-12. These clarifications must be used in addition to the ones listed below.
(2) Required Notification to ADO. The sponsor must notify the ADO in writing prior to the award if the procurement is expected to exceed the simplified acquisition threshold (provided in Table U-7) and any of the following situations apply:

(a) The award will be made without competition.

(b) Only one bid is received.

(c) The award will be made to other than the apparent low bidder.
(3) Submittal of Technical Specifications to ADO. Per 2 CFR § 200.324(a), sponsors must submit all technical specifications to the ADO upon the ADO’s request. This may include the plans, the specifications, the engineer’s report, and any other items that make up the procurement package.
(4) Items Needed for Bidder to Properly Respond. Bid documents must specify the method by which the successful bid will be determined, which may include factors such as life cycle costs, bid alternates, and availability of Federal funding.
(5) Responsive vs. Responsible. The terms responsive and responsible are often misunderstood. Responsive applies to the bid documents filed by a bidder and responsible applies to qualifications of the bidder.

(a) Responsive. A responsive bid conforms to all significant terms and conditions contained in the sponsor’s invitation for bid. It is the sponsor’s responsibility to decide if the exceptions taken by a bidder to the solicitation are material or not and the extent of deviation it is willing to accept.

(i) Material Deviations. It is FAA policy that sponsors may not waive material deviations. Material deviations include those that affect significant terms and conditions of the invitation for bids such as delivery time, quantity, technical specifications, price, or failure to send required bond and insurance information.

(ii) Minor Deviations. It is FAA policy that sponsors may waive minor deviations. These might include a simple failure to enter an extended price on an item, when such extended price can be ascertained simply by multiplying the unit price by the number of units.

(b) Responsible. A responsible bidder has the ability to perform successfully under the terms and conditions of a proposed procurement, as defined in 2 CFR § 200.318(h). This includes such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
(6) Apparent Low Bidder. The apparent low bidder is the bidder with the lowest dollar proposal, and does not reflect whether the sponsor has determined the bidder to be responsive or responsible.
(7) Bid Alternates. A sponsor must not bid a project with alternates (additive or deductive) without establishing how an award will be made within the bid package (commonly referred to as the basis for award). Otherwise, Federal participation may be adversely affected because the bid documents could be considered unclear and the award arbitrary.

(a) The solicitation must clearly establish the base bid and must define the order of bid alternate combinations based on the availability of funding.

(b) Sponsors must not arbitrarily choose a bid alternate combination for an unallowable purpose such as choosing or eliminating a specific bidder.

(c) Sponsors have the option of consulting with the ADO to validate that their use of bid alternates will meet grant requirements.

(d) The FAA cautions sponsors against using an excessive amount of bid alternates because it may create ambiguities in the bid award.

(e) Life cycle cost analyses is often used for as part of establishing the basis for award for bid alternatives.

(f) If a sponsor is bidding both asphalt and concrete alternatives in a project, there are funding implications as discussed in Paragraph 3-46.
(8) Life Cycle Cost Analysis (LCCA). The life cycle cost concept recognizes that although an item may have the lowest initial cost, it may be more expensive than another item when costs such as operation and maintenance are considered. Under the life cycle cost concept, any costs expected to be incurred for the item over its useful life (including acquisition, installation, operation, and maintenance) are considered. Cost data must be verifiable independently of a claim by the manufacturer or contractor. OMB Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs, requires elements of a life cycle cost analysis include the following:

(a) The LCCA must explicitly state assumptions, benefit factors, and costs.

(b) Sponsors must identify key data for independent analysis and review.

(c) Sponsor must use real or constant dollars in their LCCA (omit the effects of inflation).

(d) For AIP funded projects, the sponsor must use the 7% discount rate found in Paragraph 8b(1).of OMB Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs, instead of the real discount rate published annually in Appendix C of the same circular. The 7% rate is the rate that is prescribed by the Federal government for public investment, which is the standard by which AIP is judged. The 7% is based on historical long term trends and is not tied to current available rates.

(e) The sponsor must not use a project life that exceeds 20 years. For options that have a service life that exceeds 20 years, the sponsor may include a salvage value for the life beyond 20 years.

(f) If at the 30% design stage, a sponsor conducting a LCCA that results in a particular solution for which there is only one contractor has the option to bidding multiple solutions to establish competition.
(9) Guidance for Conducting Life Cycle Cost Analyses. The following three documents provide useful guidance to sponsors. The first document is especially useful for sponsors who have never completed a life cycle cost analysis and would like a simplified primer.

(a) Life-Cycle Cost Analysis Primer.

(b) The current version of Advisory Circular 150/5320-6, Airport Pavement Design and Evaluation.

(c) AAPTP 06-06, Life Cycle Cost Analysis for Airport Pavements.
(10) Limits on Using Life Cycle Cost Prior to Bidding. The practice of limiting what alternatives the sponsor will consider in their procurement action prior to bidding may unduly exclude an otherwise eligible alternative and is thus contrary to the fair and open requirements of 2 CFR § 200.319. Per FAA policy, the one exception to this limitation is the comparative analysis of pavement design alternatives. Due to additional design costs associated with multiple pavement design alternatives, sponsors have the option to select a pavement design alternative prior to the bid solicitation provided that sufficient competition exists for the selected alternative. Funding limitations for designing two pavement alternatives is discussed in Paragraph 3-46.

U-16. 2 CFR § 200.320(d) - Procurement by Competitive Proposals.

The following italicized text is directly quoted from 2 CFR part 200.

(d) Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or costreimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:

      (1) Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;

      (2) Proposals must be solicited from an adequate number of qualified sources;

      (3) The non-Federal entity must have a written method for conducting technical evaluations of the proposals received and for selecting recipients;

      (4) Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and

      (5) The non-Federal entity may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.

Table U-9 AIP Handbook Clarification of 2 CFR § 200.320(d) - Procurement by Competitive Proposals
Clarifications include…
(1) Clarifications for all Procurement Methods. Additional clarifications that apply to all procurement methods are contained in Paragraph U-12. These clarifications must be used in addition to the ones listed below.
(2) Difference between Sealed Bids and Competitive Proposals. The main difference between sealed bids and competitive proposals is that a sponsor awards sealed bids based principally on price, and awards competitive proposals based price and/or other factors (such as qualifications, contract time, proposed phasing, or method of construction).
(3) Common Types of Competitive Proposals in AIP. Design-build, construction manager-at-risk, qualification based, and any other alternative delivery methods are all considered to be competitive proposals. A competitive proposal may be a one step or a two-step process. A brief summary of the most common methods are discussed below. Clarification on EMAS procurement, which is a unique type of competitive proposal, is provided at the end of this table.

(a) Qualification Based with Negotiated Price (Professional Services). This method is a qualifications based method that is required for professional services. Per 49 USC § 47107(a)(17), AIP must use a qualification based selection method under the Brooks Act for “program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design engineering, surveying, mapping, and related services.” Per the Brooks Act, the competitor cannot provide (and the sponsor cannot use) price information when the sponsor ranks the competitors. The FAA interprets this to mean competitors cannot provide any price information before the sponsor determines the most qualified competitor, even if the price information is in a sealed envelope. However, the sponsor must then negotiate a fair and reasonable price or go to the next qualified competitor. The current version of Advisory Circular 150/5100-14, Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects, provides further guidance.

(b) Design-Build. 49 USC § 47142 establishes design-build contracting as an approvable form of contracting under AIP and defines it as “an agreement that provides for both design and construction of a project by a contractor”. This section of the Act also requires that “three or more bids must be submitted”. Section 139 of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) established a pilot program design-build contracting under AIP, however, this pilot program expired September 30, 2003 and was replaced by the statute in 49 USC § 47142 per Vision 100 – Century of Aviation Reauthorization Act which made this type of contracting eligible outside of the pilot program.

(c) Construction Manager At Risk (CMAR). Under CMAR, the sponsor engages a design firm for the project design. The sponsor selects a construction manager-at-risk (CMAR) based on qualifications and price (e.g. fee) early in the design phase. The CMAR conducts document reviews, constructability reviews, cost estimating and scheduling. The CMAR then competitively procures the construction component of the project and is responsible for ensuring the project is completed within budget and schedule.
(4) Required Notification to ADO. If the procurement is expected to exceed the simplified acquisition threshold (provided in Table U-7) and is to be awarded without competition, or only one proposal is received in response to a solicitation, the sponsor must notify the ADO in writing prior to the award.
(5) Competitive Proposals Containing Ineligible Work. For competitive proposals the sponsor must select the proposal that is most advantageous to Federal interest and the sponsor must be able to clearly show how the ineligible and eligible costs are divided.
(6) Adequate Number of Qualified Sources. The FAA considers an adequate number of qualified sources to be two or more for competitive proposals, except for when the sponsor uses the design-build method, in which case three or more are required. If the sponsor is only able to obtain a quotation from one qualified source, then the sponsor must then follow sole source requirements.
(7) Written Method for Selection. The sponsor must have a written basis for selection prior to receiving proposals.
(8) Qualification Based With Negotiated Price (Consultant Contracts) Only:

(a) When Price must not be used as a Factor. The only competitive proposal procedure where price cannot be used (only other factors) is for the qualifications based procurement of architectural/engineering professional services.

(b) Consultant Contract Requirements. The current version of Advisory Circular 150/5100-14, Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects, provides sponsor requirements for consulting contracts, including the unique contract methods (retainers, cost-plus-a-fixed-fee, cost-plus-a-percentage-of-cost, indefinite delivery). Sponsor must not deviate from the requirements in this advisory circular unless the ADO has reviewed the contract and concurs with the deviations. Note that cost-plus-a-percentage-of-cost is specifically prohibited per 2 CFR § 200.323(d). In addition, if the sponsor uses cost-plus-afixed-fee, it is FAA policy that profit must be based on a value, not on a multiplier or percentage. For lump sum contracts, it is FAA policy that the negotiation process must clearly show the amount of profit and how it was derived.
(9) Design Build And Construction Manager-At-Risk (And Any Other Competitive Proposal Not Qualification Based With Negotiated Price):

(a) Clarifications for Sealed Bids. Since these proposals use price as a factor, the clarifications under sealed bids contained in Paragraph U-15 also apply.

(b) When the Use of Sealed Bids Alone is Not Appropriate. The sponsor must only use sealed bids instead of competitive proposals unless:

(i) A complete, adequate, and realistic specification or purchase description is not available (for instance, a complex project contains too many unknowns).

(ii) The procurement does not lend itself to a firm fixed price contract and the selection of the successful bidder cannot be made principally on the basis of price.

(c) Example of Situations where Competitive Proposals may be Appropriate. Examples include complex terminal projects (where there are multiple methods of construction and phasing), large demolition projects (where there are multiple methods of demolition), and rehabilitation of runway crossings (where contract time, phasing, or method may have added benefits). In order for the sponsor to consider using competitive proposals, the sponsor must first determine that sealed bids cannot be used.

(d) Advantages of Competitive Proposals that are not Allowed under AIP. Because of the Federal contract and procurement requirements, some of the advantages of competitive proposals are not eligible for AIP funding. Sponsors must still meet all applicable 2 CFR §§ 200.317-200.326 and AIP requirements in order for the ADO to fund the costs with AIP. Examples of some costs that are not allowed include early completion bonuses, cost overruns greater than the allowable grant amendment percent, shared costs savings, contingency costs, price escalation, consultant and airport insurance costs, and state and local preferences.

(e) Obtaining ADO Concurrence Prior to Award. Per 49 USC § 47142, the sponsor must not award AIP funded design build proposals prior to obtaining ADO concurrence. Per FAA policy, this also applies to construction manager-at-risk proposals (and any other competitive proposals not qualifications based with negotiated price).

(f) Submittal of Technical Specifications to ADO. Per 2 CFR § 200.324(a), sponsors must submit all technical specifications to the ADO upon the ADO’s request. This may include the plans, the specifications, the engineer’s report, and any other items that make up the procurement package.

(g) Submittal of Additional Documentation. The sponsor must provide all additional documentation required by the ADO, which for these types of proposals includes, but is not limited to:

(i) A description of the method to be used.

(ii) A full description of the project with general sketches of proposed work.

(iii) Documentation that provides the reason and justification for using the competitive proposal method over sealed bids.

(iv) A responsibility matrix showing the contractual relationships between all parties involved in the project. A flowchart is often useful for this purpose.

(v) Documentation that the selection process is allowed under state or local law.

(vi) A statement describing what safeguards are in place to prevent conflicts of interest.

(vii) Proof that the system will be as open, fair and objective as the traditional sealed bid method under 2 CFR § 200.320(c). (viii) Documentation of the amount of experience the parties involved in the project have in the proposed method.
(10) Engineered Materials Arresting Systems (EMAS) Procurement.

(a) Procurement Requirement Background. Prior to April 2012, there was only one manufacturer whose product meets the requirements of the current version of Advisory Circular 150/5220-22, Engineered Materials Arresting Systems (EMAS) for Aircraft Overruns. As of the date of this publication, two manufacturers meet these requirements. Therefore, the sponsor must procure the EMAS project under the competitive proposal procurement method that bases the award on price plus other factors, such as phasing, design factors, or total contract time.

(b) Exception for Competitive Proposal Procurement. The exception on using the competitive procurement method for EMAS is when an EMAS design project is currently under design on the date of Change 1 of this Handbook and the design is beyond 30 percent. In this case, the ADO has the option of allowing the sponsor to use the noncompetitive proposal method to procure the EMAS acquisition and installation.

(c) Request for Information (RFI). The sponsor is allowed to issue a Request for Information (RFI) to obtain conceptual designs from EMAS vendors. The RFI is issued solely for informational purposes and is not a solicitation. Similarly, responses to RFI’s are not offers from the EMAS vendors.

(d) Request for Proposal (RFP) Requirements. At a minimum, the RFP must contain the following information:

(i) A description of the project.

(ii) An existing site drawing showing topography, utilities and structures.

(iii) Preliminary site design information that will affect the design of the EMAS bed. Examples include: RSA available dimensions, proposed grades, new drainage structures, runway/taxiway extensions, new approach light stations.

(iv) The current and future (if different from current) fleet mix. Future fleet mixes must be based on terminal area forecasts approved by the ADO.

(v) All evaluation criteria.

(e) Evaluation Criteria.

(i) Proposals demonstrating, through design, that they can meet the requirements for a standard EMAS (70 knot stopping capability for the design aircraft), will take precedence over proposals not demonstrating that they can meet the requirements for a standard EMAS

(ii) If all of the proposals are unable to demonstrate that they can meet the requirements for a standard EMAS, but still demonstrate that they can meet the requirements for a nonstandard EMAS (minimum of 40 knot stopping capability for the design aircraft), the Sponsor must apply the following rating method for relative importance for these primary categories:

a. Stopping capability of aircraft within the fleet mix (50% weighting)

b. Cost of the bed (40% weighting)

c. Maintenance requirements and costs of the bed annually over the design life (5% weighting)

d. Other unique local conditions, such as severe occurrences of jet blast and environmental and operational impact of the EMAS footprint (5% weighting)

(iii) The Sponsor may provide additional detailed evaluation criteria, such as ability to meet project schedule and any applicable and unique goal requirements, but must use the primary categories listed above. The rating method does not need to be included in the RFP.

(f) Vendor Proposal Requirements. The proposals from the vendors must contain the following information:

(i) The specifications of the proposed EMAS.

(ii) An updated preliminary site plan drawing that shows the actual dimensions of the proposed EMAS footprint and any changes to the sponsor’s provided site design.

(iii) A description of the product performance assessment and modeling process.

(iv) Details on the profile and cross sections of the EMAS including grade. (v) Preliminary calculations for the stopping capability of aircraft within the fleet mix of operation (the highest runway exit speed for each aircraft that can be arrested within the bed). (vi) The cost of the EMAS bed. The cost must be submitted based upon the firm fixed price contract method for all EMAS, installation materials, and self-inspection, testing and administration. Payment for materials will be made upon delivery to the site. At the Sponsor’s option, the Sponsor may allow the costs for construction inspection, by the vendor or its representative, to be broken out separately using the cost plus fixed fee method of contract pricing. All shipping, storage and travel costs must be included in the firm fixed price.

(vii) The schedule for material delivery.

(viii) Annual maintenance cost and requirements of the EMAS over the life of the product.

(g) Sponsor Evaluation. The sponsor must review, evaluate, and rate each proposal based on the criteria in the RFP. The sponsor’s review must result in the selection of a responsible vendor whose proposal is the most advantageous to the project. The sponsor must give precedence to proposals that provide a standard EMAS over those that do not. For proposals with a standard EMAS, the sponsor must award to the lowest responsible, responsive bidder, with respect to the cost of the EMAS bed.

(h) EMAS Bed Replacements and Retrofits. If the ADO concurs that an existing bed must be replaced, then the procurement requirements for new EMAS installation apply. The sponsor must follow the competitive procurement process to select the vendor. In order for a sponsor to retrofit an EMAS with the original vendor, the sponsor must submit documentation to the ADO showing that the bed can only be modified or retrofitted by the original vendor and that the cost benefit of replacing the bed outweighs the cost benefit of retrofit. The retrofitting project cannot be funded without ADO concurrence.

U-17. 2 CFR § 200.320(e) - Reserved.

The following italicized text is directly quoted from 2 CFR part 200.

(e) [Reserved]

U-18. 2 CFR § 200.320(f) - Procurement by Noncompetitive Proposals.

The following italicized text is directly quoted from 2 CFR part 200.

(f) Procurement by noncompetitive proposals. Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:

   (1) The item is available only from a single source;

   (2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;

   (3) The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or

   (4) After solicitation of a number of sources, competition is determined inadequate.

Table U-10 AIP Handbook Clarification of 2 CFR § 200.320(f) - Procurement by Noncompetitive Proposals
Clarifications include…
(1) Clarifications for all Procurement Methods. Additional clarifications that apply to all procurement methods are contained in Paragraph U-12. These clarifications must be used in addition to the ones listed below.
(2) Single Source, Sole Source, and Proposals with an Inadequate Number of Qualified Sources. Single source, sole source, and proposals with an inadequate number of qualified sources are noncompetitive. The number of adequate qualified sources is found in Table U-7 for small purchase proposals and Table U-9 for competitive proposals.
(3) Contract Changes. Change orders, supplemental agreements, and contract modifications are noncompetitive. The sponsor and ADO requirements are included in Paragraph 5-35.
(4) Cost Analysis. Per FAA policy, the sponsor must prepare a written cost analysis for noncompetitive procurement proposals.
(5) Required Notification to ADO. If the sponsor procures using noncompetitive proposals, makes a contract modification that changes the scope of a contract, or increases the contract amount by more than the simplified acquisition threshold (provided in Table U-7), the sponsor must notify the ADO in writing prior to executing the procurement action.
(6) Submittal of Technical Specifications to ADO. Per 2 CFR § 200.324(a), sponsors must submit all technical specifications to the ADO upon the ADO’s request. This may include the plans, the specifications, the engineer’s report, cost analysis, and any other items that make up the procurement package.
(7) Example where Noncompetitive Proposals may be Appropriate.

(a) Some Services for Less than $10,000. Services for $10,000 or less for appraisals, grant audit services performed as a part of a project, and Independent project cost estimates. The $10,000 was set by FAA policy in Advisory Circular 150/5100-14, Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects.

(b) Public utility company services. Public utility companies generally do not allow work on their property or equipment by anyone other than their own employees. A sponsor often has no other choice than to use a noncompetitive proposal for this type of work. In addition, the FAA has determined that the Federal contract provisions do not apply to this situation.

(c) Eligible replacement of a component of a piece of equipment. This may be allowable if using a competitor’s replacement part would make the equipment inoperable, such as during a rehabilitation of an ARFF vehicle. The sponsor must document their justification and make it available to the ADO upon request.
(8) Example where Noncompetitive Proposals may not be Appropriate.

(a) Sponsor convenience. Sponsors must not use a noncompetitive proposal to ensure consistency of equipment, to improve spare parts management, or to work with companies they have experience with.

(b) Compatibility with nonstandard features. If a sponsor purchased equipment with nonstandard features that were not required by the FAA, then the sponsor cannot use compatibility as justification for using noncompetitive procurement. An example is when a sponsor purchases an airfield lighting control panel that includes remote maintenance monitoring, which is not required by the FAA. The sponsor cannot limit the procurement of future regulators to only those regulators that support the nonstandard remote maintenance monitoring.
(9) Noncompetitive Proposals. If a sponsor is using a noncompetitive proposal, a modification to standards may be required. The requirements for a modification to standard are outlined in Paragraph 3-23.
(10) Separating Noncompetitive and Competitive Procurement. Per FAA policy, sponsors must separate noncompetitive and competitive procurement because it may limit the free and open competition of the competitive procurement. Four examples where sponsors must separate procurement include changes to existing Airfield Lighting Control and Monitoring Systems (ALCMS), certified airfield lighting equipment with only one manufacturer, sponsor preferred airfield lighting equipment, and certified airfield lighting equipment that is prohibited from AIP funding. Requirements include:

(a) The sponsor must notify the ADO in writing before the noncompetitive procurement begins.

(b) The notification must include the schedule for both procurements. These schedules must indicate that the equipment procurement will be completed before the overall AIP project procurement begins.

(c) The sponsor must acknowledge in the notification that not all costs will be eligible for reimbursement with AIP funding (see Paragraph 3-93 for the reimbursement rules).

(d) The sponsor must complete the noncompetitive procurement before the overall AIP project procurement begins.

U-19. 2 CFR § 200.321 - Contracting with Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms.

(a) The non-Federal entity must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible.

(b) Affirmative steps must include:

   (1) Placing qualified small and minority businesses and women's business enterprises on solicitation lists;

   (2) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;

   (3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;

   (4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;

   (5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and

   (6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.

Table U-11 AIP Handbook Clarification of 2 CFR § 200.321 - Contracting with Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms
Clarifications include…
(1) Disadvantaged Business Enterprise and Bid Responsiveness. The Small and Minority, Women's Business Enterprise (MWBE) and labor surplus area programs are distinct from the Disadvantaged Business Enterprise (DBE) program (which is a DOT program and a requirement for AIP). A sponsor is allowed to include aspirational goals in bid documents, as well as raceneutral small business set-asides per 49 CFR § 26.39. However, it is FAA policy, based on 49 CFR part 26, that the sponsor cannot use any goals other than DBE to determine bid responsiveness. Local goals for MWBE and labor surplus area programs may not be included on an AIP project.
(2) Other Civil Rights Requirements Outside of 2 CFR §§ 200.317-200.326. Sponsors are also required to follow the other civil rights requirements for AIP projects, such as those found in 49 CFR part 26.

U-20. 2 CFR § 200.322 - Procurement of Recovered Materials.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.322 Procurement of recovered materials.

A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

Table U-12 AIP Handbook Clarification of 2 CFR § 200.322 - Procurement of Recovered Materials
Clarifications include…
(1) New Requirement Per 2 CFR § 200.
(2) Clarification from Section 6002(c)(1) of the Resource Conservation and Recovery Act. Sponsors may decide not to procure recovered material if they are not reasonably available in a reasonable period of time; fail to meet reasonable performance standards; or are only available at an unreasonable price.
(3) Listing of Recovered Materials. A listing is available in 40 CFR § 247.3.

U-21. 2 CFR § 200.323 - Contract Cost and Price.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.323 Contract cost and price.

(a) The non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals.

(b) The non-Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

(c) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non-Federal entity under Subpart E—Cost Principles of this part. The non-Federal entity may reference its own cost principles that comply with the Federal cost principles.

(d) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.

Table U-13 AIP Handbook Clarification of 2 CFR § 200.323 - Contract Cost and Price
Clarifications include…
(1) Price or Cost Analysis is a Mandatory Sponsor Action. Sponsors are required to perform a cost or price analysis for every procurement action that uses AIP funds, including contract modifications. Per FAA policy, this includes all procurement actions including contract modifications that are below the simplified acquisition threshold (provided in Table U-7). The only exception is for micro-purchases discussed in Paragraph U-13).
(2) Application to Professional Services Contracts. Professional service contracts (such as engineering or consultant contracts) are considered for-profit firms and therefore the contract cost and price principles in 48 CFR part 31 (not 2 CFR § 200.323) apply.
(3) Contract Modifications. Contract modifications include such items as change orders to construction/equipment contracts and supplemental agreements to negotiated professional service contracts. Contract modifications that change the original scope of the project and do not have a line item in the original bid require a full cost analysis. Otherwise, the sponsor can perform a price analysis by simply documenting that the unit prices are consistent with those in the original contract and/or that the changes are necessary to complete the original scope of the work.
(4) Independent Estimate. The independent estimate methods by project type are included below. These estimates are the initial tool for the sponsor to use in price and cost analyses.
(5) Cost Analysis Purpose. A cost analysis is the evaluation of separate elements such as labor or materials that make up the total price to determine if the separate elements are allowable, directly related to the project, and reasonable.
(6) Price Analysis Purpose. A price analysis is a process analyzing a proposed total price without evaluating separate cost elements (including profit). The purpose is solely to ensure that a total price is fair and reasonable.
(7) Cost Analysis vs. Price Analysis. Cost analysis is used in instances where a price analysis is not viable (instances listed 2 CFR § 200.323(a)) and requires evaluation of the individual elements of cost that make up the total price. Price analysis is based solely on the total price.
(8) How to do a Cost or Price Analysis. There are a number of publically-available documents on preparing a cost analysis. DOD’s Contract Pricing Reference Guides is an excellent source. Another good source is the Quick Guide to Cost and Price Analysis for HUD Grantees and Funding Recipients, United States Department of Housing and Urban Development. Because HUD has similar grant requirements for their grantees as AIP does for sponsors, the requirements are very similar to those of AIP. References and links for these documents are included in Appendix B.
(9) File Retention. Sponsors must retain a copy of the price or cost analysis in the sponsor’s files.
(10) Documentation to the ADO. Sponsors must submit all cost and price analysis documentation to the ADO upon request as required in Section 14 of Chapter 3.
(11) Negotiation of Profit. Sponsor must remember to include this step as a separate action for all of the situations outlined in 2 CFR § 200.323(b) (including change orders).
(12) Contract Bonus for Expedited Construction Completion. Contracts sometimes provide for payment of a bonus to the contractor for completing construction early or a phase of the construction early. A sponsor can include a bonus clause in a contract on an AIP project, however, AIP cannot fund the bonus payment.
(13) Escalator Clauses. Escalator clauses are provisions in a contract for increasing or decreasing the contracted price for labor, material, etc., in step with the market prices or an agreed upon benchmark. Sponsors must send their request to the ADO and obtain written APP-1 approval before awarding contracts containing an escalator clause.
(14) Required Prior Notification to ADO. If the sponsor makes a contract modification that changes the scope of a contract or increases the contract amount by more than the simplified acquisition threshold (provided in Table U-7), the sponsor must notify the ADO in writing prior to executing the procurement action.

U-22. 2 CFR § 200.324 - Federal Awarding Agency or Pass-Through Entity Review.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.324 Federal awarding agency or pass-through entity review.

(a) The non-Federal entity must make available, upon request of the Federal awarding agency or pass-through entity, technical specifications on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the non-Federal entity desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass-through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.

(b) The non-Federal entity must make available upon request, for the Federal awarding agency or pass-through entity pre-procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:

   (1) The non-Federal entity's procurement procedures or operation fails to comply with the procurement standards in this part;

   (2) The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation;

   (3) The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product;

   (4) The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or

   (5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold.

(c) The non-Federal entity is exempt from the pre-procurement review in paragraph (b) of this section if the Federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part.

   (1) The non-Federal entity may request that its procurement system be reviewed by the Federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third party contracts are awarded on a regular basis;

   (2) The non-Federal entity may self-certify its procurement system. Such self-certification must not limit the Federal awarding agency's right to survey the system. Under a selfcertification procedure, the Federal awarding agency may rely on written assurances from the non-Federal entity that it is complying with these standards. The non-Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review.

Table U-14 AIP Handbook Clarification of 2 CFR § 200.324 - Federal Awarding Agency or Pass-Through Entity Review
Clarifications include…
(1) ADO Responsibilities. The ADO procurement responsibilities are discussed in detail in Section 10 of Chapter 3. The ADO always has the option of reviewing any sponsor procurement documents and systems at any time during the grant process.
(2) Required Sponsor Notifications to the ADO. It is FAA policy that the sponsor must notify the ADO when any of the situations listed in 2 CFR § 200.324(b) exist. The ADO then has the option to require the sponsor to provide further documentation or to conduct a pre-award review.

U-23. 2 CFR § 200.325 - Bonding Requirements.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.325 Bonding requirements.

For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency or pass-through entity may accept the bonding policy and requirements of the non-Federal entity provided that the Federal awarding agency or pass-through entity has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:

(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.

(b) A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.

(c) A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

Table U-15 AIP Handbook Clarification of 2 CFR § 200.325 - Bonding requirements
Clarifications include…
(1) Contracts at or below the Simplified Acquisition Threshold (provided in Table U-7). Sponsors have the option to follow their own requirements relating to bid guarantees, performance bonds, and payment bonds for construction if the contract or subcontract is at or below the simplified acquisition threshold (provided in Table U-7).
(2) Maintenance Bonds and Extended Warrantees. Maintenance bonds and extended warrantees are not required under 2 CFR § 200.325 and cannot be funded under AIP. If a sponsor chooses to require a maintenance bond or an extended warrantee, then the sponsor must clearly bid that item separately and not include the costs in the AIP project.
(3) Requirements for Nonstandard Bonding. If the sponsor deviates from the minimum bonding requirements, the sponsor must submit a written assurance to the ADO that the Federal interests are adequately protected.
(4) Combined Payment and Performance Bonds. A combined payment and performance bond does not meet the minimum requirements and must not be used unless sponsor has submitted a written assurance to the ADO that the Federal interests are adequately protected.
(5) Bonding for Equipment Procurement Projects (no construction included in project). For an AIP project that is solely to acquire equipment, with no associated construction of any kind, by FAA policy, the decision to require bonds (or not) is at the discretion of the sponsor.

U-24. 2 CFR § 200.326 - Contract provisions.

The following italicized text is directly quoted from 2 CFR part 200.

§ 200.326 Contract provisions.

The non-Federal entity's contracts must contain the applicable provisions described in Appendix II to Part 200—Contract Provisions for non-Federal Entity Contracts Under Federal Awards.

Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards

In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable.

(A) Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

(B) All contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement.

(C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 601.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.”

(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.

(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non-Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.

(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.

(G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

(H) Mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6201).

(I) Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide Excluded Parties List System in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), “Debarment and Suspension.” The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.

(J) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award of $100,000 or more must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.

(K) See § 200.322 Procurement of recovered materials.

Table U-16 AIP Handbook Clarification of 2 CFR § 200.326 - Contract Provisions
Clarifications include…
(1) Additional Clauses and Provisions for AIP Projects and Obligated Sponsors. Appendix II of 2 CFR part 200 (as referenced by 2 CFR § 200.326 does not contain all of the required clauses and provision for AIP projects and obligated sponsors. There are other regulations and statutes that establish additional clauses and provisions. A consolidated listing of required clauses and provision for AIP projects and obligated sponsors is contained in Contract Provision Guidelines for Obligated Sponsors and Airport Improvement Program Projects (see Appendix B for link).
(2) Explanation of Apparent Conflict in Contract Levels between 40 USC § 3701, et seq. and 2 CFR part 200, Appendix II (E). The Contract Work Hours and Safety Standards Act contract provision applies to all contracts in excess of $100,000 that involve labor based on the following:

(a) The Contract Work Hours and Safety Standards Act is codified at 40 USC § 3701, et seq.

(b) The Act applies to sponsor contracts and subcontracts “financed at least in part by loans or grants from… the [Federal] Government.” This is based on 40 USC § 3701(b)(1)(B)(iii) and (b)(2); 29 CFR § 5.2(h); and 2 CFR part 200, Appendix II (E).

(c) Although the original Act required its application in any construction contract over $2,000 or nonconstruction contract to which the Act applied over $2,500 (and language to that effect is still found in 2 CFR part 200, Appendix II (E)), the Act no longer applies to any “contract in an amount that is not greater than $100,000”. This is based on 40 USC § 3701(b)(3)(A)(iii)).
(3) Requirement to Include these Contract Provisions into AIP Funded Project Contracts. The sponsor must physically incorporate these contract provisions in each contract funded under AIP. The sponsor must require the contractor (or subcontractor) to insert these contract provisions in each subcontract and further require its inclusion in all lower tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services).

(a) The sponsor must require the contractor to incorporate applicable requirements of these contract provisions by reference for work done under any purchase orders, rental agreements and other agreements for supplies or services. The prime contractor is responsible for compliance by any subcontractor, lower-tier subcontractor or service provider.

(b) Subject to the applicability criteria noted in the specific contractor provisions, these contract provisions apply to all work performed on the contract by the contractor’s own organization and with the assistance of workers under the contractor’s immediate supervision and to all work performed on the contract by piecework, station work, or by subcontract.

(c) A breach of any of the stipulations contained in these required contract provisions may be sufficient grounds for withholding of progress payments, withholding of final payment, termination of the contract, suspension/debarment or any other action determined to be appropriate by the sponsor and AIP.
(4) Byrd Anti-Lobbying Amendment. This amendment, which is covered in 2 CFR part 200, Appendix II (J) is also covered under 49 CFR part 20.

Appendix V. Revenue Sources for the Airport and Airway Trust Fund

V-1. General.

The Airport and Airway Trust Fund, which was established by the Airport and Airway Revenue Act of 1970, provides the revenues used to fund AIP projects. The Trust Fund receives revenues from a series of excise taxes paid by users of the national airspace system. The excise taxes are associated with purchases of airline tickets and aviation fuel, as well as the shipment of cargo. Table W-1 lists these tax sources and how they are computed. The current tax structure is established under the Taxpayer Relief Act of 1997 (Public Law 105-35). Information on the Trust Fund can be found from the FAA Office of Policy, International Affairs and Environment website.

Table V-1 lists these tax sources and how they are computed.

Table V-1 Revenue Sources for the Airport and Airway Trust Fund

Aviation Taxes Comment Tax Rate
a. Domestic Passenger Ticket Tax
(including areas of Canada and Mexico not more than 225 miles from the continental United States)
Ad valorem tax. 7.5% of ticket price.
b. Domestic Passenger Flight Segment A domestic segment is a flight leg consisting of one takeoff and one landing by a flight. Rate is indexed by the Consumer Price Index starting January 1, 2002.
c. Passenger Ticket Tax at Rural Airports
(having less than 100,000 boardings and more than 75 miles from an airport with 100,000 boardings)
Assessed on tickets on flights that begin/end at a rural airport.

Rural airports are airports having less than 100,000 enplanements during second preceding calendar year, and either
1) not located within 75 miles of another airport with 100,000 enplanements,
2) is receiving essential air service subsides, or
3) is not connected by paved roads to another airport.
7.5% of ticket price (same as passenger ticket tax). Flight segment fee does not apply.
d. International Departure and Arrival Taxes Head tax assessed on passengers arriving or departing for foreign destinations (and U.S. territories) that are not subject to the passenger ticket tax. Rate is indexed by the Consumer Price Index starting January 1, 1999.
e. Flights between the Continental United States and Alaska or Hawaii Rate is indexed by the Consumer Price Index starting January 1, 1999.
f. Frequent Flyer Tax Ad valorem tax assessed on mileage awards (for example, credit cards). 7.5% of value of miles.
g. Domestic Freight and Mail 6.25% of amount paid for the transportation of property by air.
h. General Aviation Fuel Tax Aviation gasoline – 19.3¢ per gallon.

Jet fuel – 21.8¢ per gallon.

Effective after March 31, 2012, a 14.1¢ per gallon surcharge on fuel for aircraft used in a fractional ownership program.
i. Commercial Fuel Tax 4.3¢ per gallon.

Appendix W. Competition Plans

W-1. Legislative History.

AIR-21 (Wendell H. Ford Aviation Investment and Reform Act for the 21st Century, Public Law 106-181), Section 155, required the submission of a Competition Plan by certain large and medium hub airports (covered airports) for an AIP grant to be issued beginning in fiscal year 2001. The most current Competition Plan requirements are found in 49 USC § 47106(f).

W-2. Purpose.

Per FAA policy, major airports must be available on a reasonable basis to all carriers wishing to serve the airport. The underlying purpose of the competition plan is for the airport to demonstrate how it will provide for new entrant access and expansion by incumbent carriers.

W-3. Covered Airports.

Per 49 USC § 47106(f)(4) Completion Plans are required for covered airports that meet the conditions outlined in Table W-1.

Table W-1 Airports Falling Under the Competition Plan Requirements
If the following two conditions exist at an airport, the airport is considered a covered airport…
a. The airport is a medium or large hub airport.
b. One or two air carriers control more than 50% of the passenger boardings.

W-4. Prohibition on Grant Execution.

49 USC § 47106(f) prohibits the FAA from issuing an AIP grant to a covered airport unless the airport has submitted a written Competition Plan. It is FAA policy that AIP grants cannot be issued unless a required Competition Plan or Competition Plan update has been approved by the FAA. In rare circumstances, when there is a specific and urgent justification, APP-1 may approve a request for the FAA to award a grant based on a conditional approval, but only if the grant includes a special condition that prohibits drawdown of the grant funds until the conditions of the competition plan approval have been fulfilled to the FAA’s satisfaction.

W-5. Requirements for Initial Plan Submittal and Updates.

Per FAA policy, covered airports must submit Competition Plans and updates as required in Table W-2. The FAA encourages covered airport to file their initial Competition Plan as close as possible to the start of the fiscal year. Covered airports must either provide two copies of their Competition Plan or Competition Plan update to APP-1 or file an electronic version as directed by the APP-510. In addition, covered airports must also submit one copy of their Competition Plan or update to the ADO and regional office.

Table W-2 Completion Plan and Update Requirements
For the following situation… The sponsor must…
a. The sponsor is a covered airport and has not submitted an initial Competition Plan. Submit an initial plan to the FAA.

The FAA will send written notification letters to airports that will be required to file initial Competition Plans as close to the beginning of the fiscal year as possible. The FAA encourages covered airports to file their initial Competition Plan as close as possible to the start of the fiscal year to avoid undue delay in AIP grants.
b. The FAA has approved an initial plan, and the sponsor is on the first or second update. Submit the update within 18 months of the latest FAA approval letter.

The FAA will send written notification letters to airports that will be required to file Competition Plan updates as close to the beginning of the fiscal year as possible. The FAA encourages covered airports to file each update as close as possible to the start of the fiscal year to avoid undue delay in AIP grants.
c. The FAA has approved an initial plan and two updates. Submit an update if either of the following special conditions arise. Per FAA policy, covered airports must file these updates within 60 days of these conditions arising to avoid undue delays in AIP grants.

(1) Denial of Access. An airport files a competitive access report as required by 49 USC § 47107(s) stating it had denied access to an air carrier for gates or facilities within the last six months. 49 USC § 47107(s) requires any medium or large airport that has denied a carrier’s request or requests for access to file a report with the Secretary of Transportation describing the carrier’s requests, providing an explanation as to why the requests could not be accommodated, and providing a time frame within which, if any, the airport will be able to accommodate the requests. Reports are due each February and August. The FAA expects the airport’s written Competition Plan to detail any changes since the previous submittal and any issues raised in the FAA’s approval letter.

(2) New Lease and Use Agreement. An airport executes a new master lease and use agreement, or significantly amends a lease and use agreement, including an amendment due to use of Passenger Facility Charge financing for gates. The FAA encourages airports to consult with the FAA about new lease provisions and to provide the FAA the opportunity to review the new or amended provisions prior to formal execution.

W-6. Initial Competition Plan Contents.

Per 49 USC § 47106(f), initial Competition Plans must include the information in Table W-3 in order for the FAA to accept a filing.

Table W-3 Required Initial Competition Plan Content
Per 49 USC § 47106(f), Competition Plans must include… Per FAA policy, the following information must be provided to meet the requirements in 49 USC § 47106(f):
a. The availability of airport gates and related facilities. (1) Number of gates available at the airport by lease arrangement, i.e., exclusive, preferential, or common-use, and current allocation of gates.

(2) Whether any air carriers that have been serving the airport for more than three years are relying exclusively on common-use gates.

(3) Diagram of the airport’s concourses.

(4) Description of gate use monitoring policies, including any differences in policy at gates subject to Passenger Facility Charge assurance # 7 and samples of gate use monitoring charts, along with a description of how the charts are derived and how they are used by the airport.

(5) Description of the process for accommodating new service and for service by a new entrant.

(6) Description of any instances in which the Passenger Facility Charge competitive assurance #7 operated to convert previously exclusive-use gates to preferential-use gates or it caused such gates to become available to other users.

(7) Gate utilization (departures/gate) per week and month reported for each gate.

(8) The circumstances of accommodating a new entrant or expansion during the 12 months preceding filing, including the length of time between initial carrier contact of airport and start of service, the identity of the carriers and how they were accommodated.

(9) Resolution of any access complaints by a new entrant or an air carrier seeking to expand service during the 12 months preceding the filing, including a description of the process used to resolve the complaint.

(10) Use/lose, or use/share policies and recapture policies for gates and other facilities. If no such policies exist, an explanation the role, if any under-utilized gates play in accommodating carrier requests for gates must be provided.

(11) Plans to make gates and related facilities available to new entrants or to air carriers that want to expand service at the airport and methods of accommodating new gate demand by air carriers at the airport (common-use, preferential-use, or exclusive-use gates).

(12) Availability of an airport competitive access liaison to assist requesting carriers, including new entrants.

(13) Number of aircraft remain overnight (RON) positions available at the airport by lease arrangement, i.e., exclusive, preferential, common-use or unassigned, and distribution by carrier. This should include a description of the procedures for monitoring and assigning RON positions and for communicating availability of RON positions to users.
b. Leasing and subleasing arrangements. (1) Whether a subleasing or handling arrangement with an incumbent carrier is necessary to obtain access.

(2) How the airport assists requesting airlines to obtain a sublease or handling arrangement.

(3) Airport polices for sublease fees levels (e.g., maximum 15% above lease rates), and for oversight of fees, ground/handling arrangements and incumbent schedule adjustments that could affect access to subtenants.

(4) Process by which availability of facilities for sublease or sharing is communicated to other interested carriers and procedures by which sublease or sharing arrangements are processed.

(5) Procedures for resolving disputes or complaints among carriers regarding use of airport facilities, including complaints by subtenants about excessive sublease fees or unnecessary bundling of services.

(6) Resolution of any disputes over subleasing arrangements in the 12 months preceding filing.

(7) Accommodation of independent ground service support contractors, including ground handling, maintenance, fueling, catering or other support services.

(8) Copies of lease and use agreements in effect at the airport.
c. Gate use requirement. (1) Gate use monitoring policy, including schedules for monitoring, basis for monitoring activity (i.e., airline schedules, flight information display systems, etc.), and the process for distributing the product to interested carriers.

(2) Requirements for signatory status and identity of signatory carriers.

(3) Where applicable, minimum use requirements for leases (i.e., frequency of operations, number of seats, etc.).

(4) The priorities, if any, employed to determine carriers that will be accommodated through forced sharing or sub-leasing arrangements. This must include a description of how these priorities are communicated to interested carriers.

(5) Justifications for any differences in gate use requirements among tenants.

(6) Usage policies for common-use gates, including, where applicable, a description of priorities for use of common-use gates. This should include an explanation of how these priorities are communicated to interested carriers.

(7) Methods for calculating rental rates or fees for leased and common-use space. This should include an explanation of the basis for disparities in rental fees for common-use versus leased gates.
d. Gate-assignment policy. (1) Gate assignment policy and method of informing existing carriers and new entrants of this policy. This must include standards and guidelines for gate usage and leasing, such as security deposits, minimum usage, if any, fees, terms, master agreements, signatory and non-signatory requirements.

(2) Methods for announcing to tenant carriers when gates become available. The description must discuss whether all tenant air carriers receive information on gate availability and terms and conditions by the same process at the same time.

(3) Methods for announcing to non-tenant carriers, including both those operating at the airport and those that have expressed an interest in initiating service, when gates become available, and policies on assigning remain overnight (RON) positions and how RON position availability announcements are made.
e. Financial constraints. (1) The major source of revenue at the airport for terminal projects.

(2) Rates and charges methodology (residual, compensatory, or hybrid).

(3) Past use, if any, of Passenger Facility Charges for gates and related terminal projects.

(4) Availability of discretionary income for airport capital improvement projects.
f. Airport controls over air and ground-side capacity. (1) Majority-in-interest (MII) or no further rates and charges clauses covering groundside and airside projects.

(2) Any capital construction projects that have been delayed or prevented because an MII was invoked.

(3) Plans, if any, to modify existing MII agreements.
g. Whether the airport intends to build or acquire gates that would be used as common facilities. (1) The number of common-use gates that the airport intends to build or acquire and the timeline for completing the process of acquisition or construction. This must include a description of the intended financing arrangements for these common-use gates, and whether the gates will be constructed in conjunction with preferential or exclusive-use gates.

(2) Whether common-use gates will be constructed in conjunction with gates leased through exclusive or preferential-use arrangements.

(3) Whether gates being used for international service are available for domestic service.

(4) Whether air carriers that only serve domestic markets now operate from international gates. This must include a description and explanation of any disparity in their terminal rentals versus domestic terminal rentals.
h. Per 49 USC § 47107(a)(15), the method for making the Competition Plan available to the public. (1) 49 USC § 47107(a)(15) requires sponsors to make special airport financial reports available to the public. Therefore, the Competition Plan must include the covered airport’s method of satisfying this requirement.

If web posting is employed, the filing must identify the precise web address where the Competition Plan material may be found. Per FAA policy, if a web posting is not employed, the reasons for this decision must be discussed in the submission.

W-7. Competition Plan Update Contents.

Per FAA Policy, Competition Plan updates must include the information in Table W-4.

Table W-4 Required Competition Plan Update Content
Per FAA Policy, Competition Plan updates must include also include…
a. Changes from Last FAA Approval. Information regarding new relevant changes in competitive circumstances at the airport since the previous FAA approval. If there have been no changes in competitive filing information, the airport must state that there has been no change since the previous plan approval. For new master lease agreements or significantly amended lease agreements, this includes a copy of the agreement, a written description of the changes in lease terms, and leasing practices or policies included in the lease document.
b. Reasons for Not Instituting FAA Recommendations. In instances in which the FAA has recommended that an airport adopt a particular management or operating practice and the airport has declined the recommendation, per FAA policy, the airport must explain the activities and/or procedures it is performing that would achieve the same result as the FAA’s recommended practice.
c. Responses to FAA Questions. Responses to questions raised or recommendations included in previous FAA approvals.
d. Public Availability. 49 USC § 47107(a)(15) requires sponsors to make special airport financial reports available to the public. Therefore, the Competition Plan update must include the covered airport’s method of satisfying this requirement. If web posting is employed, the filing must identify the precise web address where the Competition Plan update material may be found. If a web posting is not employed, the reasons for this decision must be discussed in the submission.

W-8. Sponsor Guidance.

Additional guidance that sponsors can use to reduce barriers to entry and enhance competitive access is contained in the current version of the document titled Highlights of Reported Actions to Reduce Barriers to Entry and Enhance Competitive Access. Additional useful information is contained in the U.S Department of Transportation report titled Airport Business Practices and Their Impact on Airline Competition. See Appendix B for references and links to these documents.

W-9. Plan Review Process.

Per FAA policy, a joint OST/FAA team will review each plan to determine that the Competition Plan or Competition Plan update satisfies statutory requirements. APP-1 will advise the covered airport and the applicable regional office and ADO of all acceptances, identified deficiencies, or rejections in writing. The OST/FAA team has the option to contact the airport informally during the course of the Competition Plan review. This contact will generally take the form of a telephone conference call and may include a site visit.

W-10. Additional FAA Actions.

Per FAA policy, the FAA has the option to periodically review the implementation of competition plans of all covered airports and may conduct site visits to meet our obligation to ensure that each covered airport successfully implements its approved plan.

W-11. Plan Development Eligibility.

Per FAA Policy, competition plans and updates are only eligible for AIP funding as part of an eligible master planning project (not as a stand-alone project). Additionally, the scope of work for full master planning studies and updates for the full study must include a Competition Plan development or update as part of the effort (if the studies or updates include a review of terminal development and the airport is a covered airport). However, this requirement would not apply to master planning efforts that are either minor in scope or that are occurring at times that would create a duplication of effort with recently completed plans or updates.

Appendix X. Buy American Guidance

X-1. General Sponsor Buy American Requirements.

The Buy American Preferences under 49 USC § 50101 require that all steel and manufactured goods used in AIP funded projects be produced in the United States. Under 49 USC § 50101(c), ground transportation demonstration projects in 49 USC § 47127 are excluded. Sponsors must complete one of the three requirements in Table X-1 for the AIP projects (including ineligible or non-AIP funded work included in the same contract).

Table X-1 General Sponsor Buy American Requirements
All sponsors must complete one of the following for AIP funded projects…
(1) Certify, in writing, all products are wholly produced in America and are of 100% U.S. materials.
(2) Certify that all equipment that is being used on the project is on the Nationwide Buy American conformance list.
(3) Request a waiver to use non-U.S. produced products.

X-2. Other Buy American and Buy America Requirements.

There are other Buy American and Buy America preference rules and requirements imposed by other federal agencies that may differ from the AIP Buy American guidance. That is because there are difference statutory requirements for other federal agencies and grant programs that do not apply to AIP.

X-3. Changes Orders and Buy American Requirements.

A change order to a project requires a separate Buy American review and may require an ADO determination.

X-4. Buy American Waiver Process and Delegation.

Under 49 USC § 50101(b) and 49 CFR § 1.83(a)(11), the FAA is given the authority to waive these Buy American Preferences if certain market or product conditions exist. Many pieces of equipment are constructed with some non- U.S. produced components or subcomponents. Therefore, it is expected that the sponsor will have to request a waiver on a majority of projects (unless the project is constructed of materials that already have a nationwide waiver). These requirements only apply to manufactured components and subcomponents. Software is not considered a component or subcomponent.

The four types of Buy American waivers that the FAA may be issued are listed in Table X-2. The responsibility for Type I and II waivers, as well as any nationwide waivers remains with APP-500. The ADOs have been delegated the authority to issue Type III and Type IV waivers to a sponsor on a project level.

Table X-2 Criteria by Buy American Waiver Type
For the following… The following criteria apply…
Type I Waiver Per 49 USC § 50101(b)(1), the FAA can issue this type of waiver if the FAA determines that applying the Buy American requirements would be inconsistent with the public interest. Due to the possible national implications of such a waiver, APP-500 is responsible for reviewing and issuing Type I Waivers.
Type II Waiver Per 49 USC § 50101(b)(2), the FAA can issue this type of waiver for equipment or construction material if the FAA determines that the goods are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality. Type II Waivers can only be issued on the equipment/construction material level and cannot be issued for a system and/or facility that is comprised of various pieces of equipment/construction material. These waivers are issued by APP-500, after the FAA publishes a Federal Register Notice asking manufacturers to advise the FAA if they manufacture the equipment/material that is seeking a waiver and if their product meets the FAA specifications and Buy American requirements. After manufacturers respond to this notice, APP-500 will make a determination if there is insufficient quantity or quality.
Type III Waiver Per 49 USC § 50101(b)(3), the FAA can issue this type of waiver if the FAA determines that 60% or more of the components and subcomponents in the equipment/facility are of U.S. origin and their final assembly is in the United States. A Type III Waiver cannot be issued at the system level and must be issued for each piece of equipment; however, in the case of facilities a Type III Waiver may be issued for the entire facility if all the construction materials when combined meet the 60% U.S. origin requirement. The ADO may issue these waivers. For block grant state projects, only the FAA (usually the ADO) may issue the waivers. Block grant states are not allowed to issue a waiver. To complete a Type III Waiver request, the following supporting documentation must be submitted by the requester:

(1) A completed Buy American Content Percentage Calculation Worksheet (or equivalent) (see Appendix B for link). Per 49 USC § 50101(c), labor costs at final assembly must be excluded from this worksheet. This is because the Buy American statute is based on the cost of materials and equipment, not labor.

(2) A completed Buy American Product Final Assembly Questionnaire (or equivalent) (see Appendix B for link). Final assembly in the United States must meet the standard defined below under Final Assembly Location.

(3) The manufacturer must certify in writing that any major structural steel used in their equipment is of 100% U.S. origin. Small amounts of steel that are used in components and subcomponents, that are not structural steel, may be of foreign origin. This would typically consist of nuts, bolts and clips. For these types of steel, the manufacturer must indicate the use of the steel (nuts, bolts, clips, etc.) and must count this steel as non-U.S. origin when completing the Content Percentage Calculation Form. (3) The manufacturer must certify in writing that any major structural steel used in their equipment is of 100% U.S. origin.

Per FAA policy, after the ADO reviews the waiver request, the ADO must send a notification to the requester informing them of the approval or disapproval of the waiver. The ADO must use the following language in this notification for project specific waivers:

I have reviewed the request for Waiver of Buy American Requirement submitted by XXX for the use of XXXXX equipment on the subject project. The information submitted by XXXX satisfies the requirement for waiver of the requirements of 49 USC § 50101 based on XX% of the cost of components and subcomponents to be used in the project being produced in the United States with final assembly being performed in XXXXXXX. The waiver is hereby approved for use on this AIP grant project.

The ADO must place a copy of the notifications in the grant file. Following this notification, no further action is required.
Type IV Waiver Per 49 USC § 50101(b)(4), the FAA can issue this type of waiver if the FAA determines that applying Buy American requirements increases the cost of the overall project by more than 25%. The ADO may issue these waivers. For block grant state projects, only the FAA (usually the ADO) may issue the waivers. Block grant states are not allowed to issue a waiver. In order to issue this type of waiver, the FAA must determine that there is at least one bid from a Buy American compliant supplier to make the 25% cost increase determination.

Per FAA policy, after the ADO reviews the waiver request, the ADO must send a notification to the requester informing them of the approval or disapproval of the waiver. The ADO must use the following language in this notification for project specific waivers:

I have reviewed the request for Waiver of Buy American Requirement submitted by XXX for the use of XXXXX equipment on the subject project. The information submitted by XXXX satisfies the requirement for waiver of the requirements of 49 USC § 50101 that including domestic material will increase the cost of the overall project by more than 25%. The waiver is hereby approved for use on this AIP grant project.

The ADO must place a copy of the notifications in the grant file. Following this notification no further action is required.

X-5. National Buy American Waiver.

APP-500 may issue National Waivers for certain equipment/material that is used frequently in AIP funded projects. APP-500 will list these National Waivers on the FAA Office of Airports website under the Buy American Conformance List. Any equipment or materials on the Buy American Conformance List do not need additional waiver materials. All personnel not in APP-500 must direct any manufacturer seeking to be added to this Buy American Conformance List to APP-500.

X-6. Definitions.

To assist in making Buy American Waiver determinations the following definitions apply:

Table X-3 Buy American Specific Definitions
Buy American Waiver specific definitions include…
a. Project. The Project is generally the project that is being bid or procured. The Project does not extend over multiple grants or phases, even though the overall project may be phased or may be built in multiple bid packages.
b. Facility or Equipment. This will be defined differently depending on the project. For a building, the portion of the building that is being funded under the AIP grant is the facility listed in the waiver. For other projects, the bid items as described in the current version of Advisory Circular 150/5370-10, Standards for Specifying Construction of Airports, will generally be the equipment referred to in the waiver except for airfield electrical equipment. For airfield electrical equipment, the L-items listed in the Addendum to the current version of Advisory Circular 150/5345-53, Airport Lighting Equipment Certification Program, will generally be the equipment referred to in the waiver. For a vehicle or single piece of equipment like a snow plow or ARFF vehicle, the single vehicle itself is the equipment.
c. Final Assembly Location. Final assembly is a process whereby assembly is meaningful and complex utilizing a substantial amount of time and resources, a number of different assembly operations, and a high level of skilled labor. The Final Assembly Questionnaire must be completed in order to determine whether final assembly occurs at the recorded site.
d. Nonavailable Items. By FAA policy, the list of items that have been determined nonavailable per 48 CFR § 25.104 are excluded from the Buy American preference requirements for AIP funded projects. This list includes petroleum products; therefore, asphalt is a nonavailable item per this list. In addition, the FAA has determined that cement and concrete are also nonavailable items excluded from the Buy American preference requirements (although the steel used for reinforcement, ties, stirrups, etc. must meet Buy American).

Appendix Y. Federal Share at Public Land State Airports

Y-1. General Federal Share Definition.

The United States Government’s share of project costs on an AIP grant (also known as federal share or federal match) is defined in 49 USC § 47109. The federal share varies by airport size and is generally 75% for large and medium hub airports and 90% for all other airports. The share applicable to a generic class of airports is called the general federal share.

Y-2. Public Land States Definition.

Since the early days of Federal participation in airport infrastructure projects, Congress has provided a higher Federal share at airports located in states with more than 5% of their geographic acreage comprised of unappropriated and unreserved public lands and nontaxable Indian lands (individual and tribal). Land fitting this definition is called Federal land and states meeting the statutory criteria are called public land states.

There are currently 13 public land states whose Federal lands account for between 6.6% (Washington) and 69.23% (Nevada) of the states’ total acreage. The Federal land percentages in each of the public land states are identified in Table Y-1. The FAA obtained these percentages from Federal Highway Administration (FHWA) data published pursuant to 23 USC § 120(b)(1), effective March 17, 1992, per 58 Federal Register 158 (January 4, 1993).

Table Y-1 Federally-Controlled Acreage in Public Land States
For the following state… The percentage of unappropriated and unreserved public lands and nontaxable Indian lands (individual and tribal) in the State is…
(1) Alaska 34.03%
(2) Arizona 43.37%
(3) California 15.74%
(4) Colorado 12.06%
(5) Idaho 22.69%
(6) Montana 12.42%
(7) Nevada 69.23%
(8) New Mexico 26.44%
(9) Oregon 22.23%
(10)South Dakota 9.72%
(11)Utah 41.83%
(12)Washington 6.6%
(13)Wyoming 27.58%

Y-3. History of the Public Land Share Formula.

Since 1970, airport projects in these public land states have been eligible for increased Federal contributions calculated using a series of complex, legislatively-defined formulas. These grant Federal share formulas for public land states have changed over time to keep pace with legislative changes in general Federal shares. The Federal participation rates at airports in public land states are calculated using the prevailing general Federal share for each classification of airports in 49 USC § 47109.

Between 1970 and 1980, Congress adjusted the general Federal shares significantly through a series of amendments to the Airport and Airway Development Act of 1970. ADAP was the predecessor grant program to AIP. The laws that changed the Federal share during ADAP were Public Law 91-258 (May 21, 1970), Public Law 93-44 (June 18, 1973), Public Law 94-353 (July 12, 1976), Public Law 96-415 (November 15, 1979), Public Law 93-44 (July 18, 1973), and Public Law 94-353 (July 12, 1976).

As the general Federal shares for grants have increased, Congress changed the public land state formulas to ensure that smaller airports in public land states received some consideration for the large inventories of Federal lands. The legislative formulas under 49 USC § 47109 part ‘b’ and ‘c’ reference the general Federal shares on two specific dates: June 30, 1975 and August 3, 1979. Table Y-2 illustrates the changes in the general Federal share from 1970 to 1980, highlighting the general Federal shares on the two dates of interest.

AIP was established in 1982. The general Federal share under AIP for large and medium hub primary airport grants stabilized at 75%, and the general Federal share for other airport grants increased and then stabilized at 90%. The laws that changed the Federal share during this period were Public Law 97-248, Section 513(b)(5); (September 3, 1982); Public Law 100-223, Section 111(a)(2) (December 30, 1987); and Public Law 102-581, Section 110(b) (October 31, 1992).

In 2003, Congress passed the FAA Century of Aviation Reauthorization Act (Vision 100), Public Law 108-176, Section 161 (December 12, 2003), which temporarily increased the general Federal share of grants at small hub primary, nonhub primary, nonprimary commercial service airports, nonprimary general aviation, and reliever airports to 95%. This increase to 95% was greater than the maximum Federal share (93.75%) that could be calculated under the public land state formulas. Therefore, there was no reason to calculate the public land state Federal grant share while Vision 100 was in effect, since the 95% general Federal share would always be greater than the maximum public land state percentage. Therefore, between 2003 and 2011, the public land state airports – along with other small airports in the United States – generally received a Federal share of 95% for AIP grants.

In 2012, Congress passed the FAA Modernization and Reform Act of 2012 (FMRA), Public Law 112-95 (February 14, 2012), which did not retain the increased general Federal share provision of Vision 100. Most airports that had been receiving the higher Vision 100 share of 95% reverted to the prior general Federal share of 90%. Smaller airports in public land states reverted to the shares calculated under the public land state formulas, which allowed a Federal share of up to 93.75%.

Table Y-2 Federal Shares by Airport Classification in Public-Land States Between 1970 and 1980.
Year Large Hub Airports Medium Hub Airports Small Hub Primary, Nonhub Primary and Nonprimary Commercial Service Airports* Non-primary General Aviation and Reliever Airports*
a. 1970 – 1973 50% 50% 50% 50%
b. 1974 – 1975 (part ‘b’ reference) 50% 75% 75% 75%
c. 1976 – 1978 75% 75% 90% 90%
d. 1979 (part ‘c’ reference) – 1980 75% 75% 80% 80%

Y-4. Calculating the Federal Share in Public Land States Using the Part ‘b’ and Part ‘c’ Formulas.

49 USC § 47109 includes two sets of instructions for calculating the federal share at airports in public land states. Part ‘b’ provides the general formula for all airports in public land states. Part ‘c’ provides an additional formula that only applies to small hub primary, nonhub primary and nonprimary commercial service airports.

Y-5. Part ‘b’ Formula.

The Part ‘b’ formula applies to airports of all sizes and involves a multi-part analysis. The calculation involves a yes/no test to determine whether a specific class of airports in a public land state is eligible for an adjusted federal share calculation. If yes, a three-part formula is used to calculate the appropriate share as shown in Table Y-3.

The numerical values and results of the Part ‘b’ calculation for all airport classes in public land states are contained in Table Y-4. In each row, the highlighted cell identifies the federal share percentage that governs in that instance, based on the statutory formulas. Note that the federal shares for small hub primary, nonhub primary and nonprimary commercial service airports in Table Y-4 may change as a result of the part ‘c’ calculation discussed in the Grandfather Rule section to follow.

Table Y-3 Yes/No Test for Part ‘b’ Calculation
Is the Current General Federal Share (Column C of Table Y-4) less than the 1975 Share (Column B of Table Y-4)? Then the Federal Share is…
a. No The Current Share (Column C of Table Y-4)
b. Yes The lessor of:

(1) The Current Share Increased by 25% (Column E of Table Y-4)

(2) The Current Share + 1/2 the Public Land Percent (Column F of Table Y-4)

(3) The 1975 Share (Column G of Table Y-4)
Table Y-4 Part ‘b’ Calculation Results (see Table Y-5 for columns marked *)
State/ Airport Type* A* % Public Land B* Federal Share, % in 1975 C Current Federal Share (FMRA) D (y/n) Is Current Share < 1975? E* (calc 1) Current Share Increased by 25% F (calc 2) Current Share Increased by 1/2 Public Land % G (calc 3) Increased to = 1975 Fed Share H Part ‘b’ Results
Alaska 34.03
LH 62.5 75 no 75.00
MH 93.75 75 yes 93.75 87.76 93.75 87.76
SH, NHP, & NPCS 93.75 90 yes 112.5 105.31 93.75 93.75
GA & RL 93.75 90 yes 112.5 105.31 93.75 93.75
Arizona 43.37
LH 60.65 75 no 75
MH 91.06 75 yes 93.75 91.26 91.06 91.06
SH, NHP, & NPCS 91.06 90 yes 112.5 109.52 91.06 91.06
GA & RL 91.06 90 yes 112.5 109.52 91.06 91.06
California 15.74
LH 53.72 75 no 75
MH 80.59 75 yes 93.75 80.90 80.59 80.59
SH, NHP, & NPCS 80.59 90 no 90
GA & RL 80.59 90 no 90
Colorado 12.06
LH 52.68 75 no 75
MH 79.02 75 yes 93.75 79.52 79.02 > 79.02
SH, NHP, & NPCS 79.02 90 no 90
GA & RL 79.02 90 no 90
Idaho 22.69
LH 55.78 75 no 75
MH 83.64 75 yes 93.75 83.51 83.64 83.51
SH, NHP, & NPCS 83.64 90 no 90
GA & RL 83.64 90 no 90
Montana 12.42
LH 52.98 75 no 75
MH 79.47 75 yes 93.75 79.66 79.47 79.47
SH, NHP, & NPCS 79.47 90 no 90
GA & RL 79.47 90 no 90
Nevada 69.23
LH 62.5 75 no 75
MH 93.75 75 yes 93.75 100.96 93.75 93.75
SH, NHP, & NPCS 93.75 90 yes 112.5 121.15 93.75 93.75
GA & RL 93.75 90 yes 112.5 121.15 93.75 93.75
New Mexico 26.44
LH 56.16 75 no 75
MH 84.29 75 yes 93.75 84.92 84.29 84.29
SH, NHP, & NPCS 84.29 90 no 90 >
GA & RL 84.29 90 no 90
Oregon 22.23
LH 55.66 75 no 75
MH 83.33 75 yes 93.75 83.34 83.33 83.33
SH, NHP, & NPCS 83.33 90 no 90
GA & RL > 83.33 90 no 90
South Dakota 9.72
LH 52.57 75 no 75
MH 78.55 75 yes 93.75 78.65 78.55 78.55
SH, NHP, & NPCS 78.55 90 no 90
GA & RL 78.55 90 no 90
Utah 41.83
LH 60.65 75 no 75
MH 90.63 75 yes 93.75 90.69 90.63 90.63
SH, NHP, & NPCS 90.63 90 yes 112.5 108.82 90.63 90.63
GA & RL 90.63 90 yes 112.5 108.82 90.63 90.63
Washington 6.6
LH 51.52 75 no 75
MH 77.31 75 yes 93.75 77.48 > 77.31 77.31
SH, NHP, & NPCS 90 no 90
GA & RL 77.31 90 no 90
Wyoming 27.58
LH 56.33 75 no 75
MH 84.58 75 yes 93.75 85.34 84.58 84.58
SH, NHP, & NPCS 84.58 90 no 90
GA & RL 84.58 90 no 90

*The increased Federal share for large hub airports in 1975 was less than the current Federal share of 75%, therefore there is no increase in Federal share for a large hub airport in a public land states.

Table Y-5 Column Notes for Table Y-4
For Column… The following applies…
(1) State/Airport Type LH = Large Hub
MH = Medium Hub
SH = Small Hub
NHP = Non Hub Primary
NPCS = Nonprimary
Commercial Service
GA = General Aviation
RL = Reliever
(2) A - % Public Land The actual percentage of public land in a state was last calculated in 1992 by the Department of Interior (DOI). According to DOI, the agency stopped calculating this statistic because the source data comes from five separate federal agencies, none of which collect and report data consistently.

Because the AIP statute directs FAA to use these statistics, and 1992 was the last year these statistics were produced, FAA continues to rely on the 1992 DOI public land inventories (published in 58 Federal Register 128, 158 (January 4, 1993)) to calculate current federal share.
(3) B - Federal Share % in 1975 The adjusted federal shares for large hub airports were published in 37 Federal Register 11014, 11023 (June, 1972).

In 1974, Congress increased the general federal share to 75% for all airports enplaning less than 1% of passengers in 1974. The Airport Development Acceleration Act, enacted on June 18, 1973, amended the Airport and Airway Development Act of 1970 (Pub. L. 91-258). The Act became effective for grants issued during Federal Fiscal Year 1974, which began July 1, 1973.

While this change affected airports categorized as medium hubs and smaller, the FAA did not publish adjusted rates for the smaller airports until 1979. While the Part ‘b’ calculation requires a comparison to the rates in place for these smaller airports in 1975, the FAA is using the 1979 published shares as a proxy for the 1975 rates for smaller airports. These rates have been used by the FAA for at least 10 years to perform the Part ‘b’ calculations.
(4) E (calc 1) Current share Increased by 25% The statutory formula to increase the current federal share by 1/2 the public land percentage is calculated by multiplicatively, not additively.

To be consistent with the Column D directive to increase current federal share by 25%, Column E is calculated by increasing the current federal share by the percentage equal to 1/2 the state’s public land percentage.

For example, in Alaska, where the federal land accounts for 34.03% of the state’s acreage, Column E is calculated by increasing the current federal share (75) by 17.015%. [Federal Share = 75+(0.17 *75)].

Y-6. Part ‘c’ Calculation (the Grandfather Rule).

In Vision 100 (passed in 2003), Congress amended 49 USC § 47109 to include a provision that applies to only small hub primary, nonhub primary and nonprimary commercial service airports in public land states. This provision, which applies in addition to the Part ‘b’ calculation, is codified in 49 USC § 47109(c) and is called the Part ‘c’ formula or Grandfather Rule.

Table Y-6 identifies the calculated federal shares for small hub primary, nonhub primary and nonprimary commercial service airports in public land states. The Part ‘c’ formula calculates the ratio of the 1979 general federal share for small hub primary, nonhub primary and nonprimary commercial service airports (80%) to the 1979 public land state adjusted share (Col. A) and applies that ratio to the current federal share. The resulting adjusted federal share (Col. B) cannot exceed the maximum percentage calculated for small hub primary, nonhub primary and nonprimary commercial service airports under Part ‘b’ (Col. C) or 93.75% (Col. D). The shaded table cells represent the determined or calculated share resulting from the Part ‘b’ or Part ‘c’ formulas.

Formula: 80 / A = 90 / B where B is subject to the maximum of C and D

Table Y-6 Part ‘c’ Calculation
State A Adjusted Fed Share in 1979 B Adjusted Federal Share (Current) C Max Part 'b' Calculation D Maximum of 93.75% Part ‘c’ Results
a. Non Public-Land States (all those not listed below) 80.00% 90.00% NA NA 90.00%
b. Alaska 93.75% 105.47% 93.75% 93.75% 93.75%
c. Arizona 91.06% 102.44% 91.06% 91.06% 91.06%
d. California 80.59% 90.66% NA 90.66% 90.66%
e. Colorado 80.00% 90.00% NA 90.00% 90.00%
f. Idaho 83.64% 94.10% NA 93.75% 93.75%
g. Montana 80.00% 90.00% NA 90.00% 90.00%
h. Nevada 93.75% 105.47% 93.75% 93.75% 93.75%
i. New Mexico 84.29% 94.83% NA 93.75% 93.75%
j. Oregon 83.54% 93.98% NA 93.75% 93.75%
k. South Dakota 80.00% 90.00% NA 90 90.00%
l. Utah 90.94% 102.31% 90.63% 90.63 90.63%
m. Washington 80.00% 90.00% NA 90.00 90.00%
n. Wyoming 84.58% 95.15% NA 93.75% 93.75%

Y-7. Public Land State Federal Share Results.

Table 4-8 contains the final federal share calculation using the part ‘b’ and part ‘c’ calculations.

Appendix Z. Establishment and Category Upgrade Policy for Instrument Landing Systems (ILS)

Z-1. Background.

On March 24, 2015, the FAA published an updated policy on the Establishment and Category Upgrade Policy for Instrument Landing Systems. The updated policy reflects the significant progress that has been made in the availability and use of area navigation (RNAV) approach capabilities using the satellite-based Global Positioning System (GPS). Moreover, the updated policy recognizes that the FAA had already effectively moved away from installing new ILS. RNAV approaches can now provide an equivalent instrument approach capability as compared to ILS. Fleet equipage has also improved markedly such that aircraft that routinely fly under instrument flight rules (and so need an instrument approach capability) are normally equipped with the necessary avionics. Accordingly, FAA will no longer fund installation of new Category I ILS with AIP except in limited circumstances. Instead, RNAV will be the primary means of establishing new instrument approach access to qualified runway ends.

In 2017, there are approximately nine times as many RNAV/GPS approaches as compared to ILS. There are over 2300 airports, and over 3200 runway ends, that have RNAV approaches that do not have ILS. This represents a tremendous amount of reliable approach capability in the National Airspace System (NAS). Better than 92 percent of general aviation aircraft that actively fly IFR are equipped with RNAV or Wide Area Augmentation System (WAAS) avionics. In addition, the majority of air carrier aircraft have various levels of RNAV equipage installed; this continues to improve with the retirement of older aircraft with legacy non-RNAV avionics.

The existing ILS network will continue to serve non-RNAV equipped aircraft. FAA policy serves to encourage aircraft operators to equip their fleet with upgraded RNAV avionics by not adding to the existing network of ILS. The addition of new precision approach capabilities to the NAS will be accomplished with more cost-effective RNAV rather than ILS.

Z-2. Use of RNAV Approaches Instead of Cat I ILS Systems.

Development of an RNAV approach will be used instead of installation of a new Cat I ILS at all airports where technically feasible.

Z-3. FAA Air Traffic Organization (ATO) Funding for Cat I ILSs.

FAA announced in 76 Federal Register 77939 (December 15, 2011) that “In order to maximize operational benefits and take advantage of the cost savings associated with WAAS, the FAA no longer intends to establish new Category I ILSs using ATO funding.” In the same notice, FAA announced consideration of “…programmatic changes under AIP that would favor WAAS for new precision approaches at airports, rather than ILS.” The updated 2015 policy is consistent with these announcements and is also consistent with current practice as aligned with the 2016 FAA NAS Performance Based Navigation (PBN) Strategy.

Z-4. AIP Funding for Cat I ILSs.

At most airports, it is no longer cost effective or operationally justified to install a new Cat I ILS where an RNAV approach can provide nearly equivalent capabilities and service levels for reliable access. Therefore, instead of installing Cat I ILS for new runways or significant runway extension projects where an ILS was not presently installed, AIP funds will be the primary source of completing an RNAV survey. The sponsor can then coordinate the development of an RNAV approach with the ADO and ATO.

In the rare instances where the FAA has determined that an RNAV approach is not suitable for a given location, the sponsor can request a waiver from the ADO to use AIP funding of a traditional ILS. A possible example is a new or extended runways at a large or medium hub airports where an ILS may still be needed for merging and spacing operations for arrival sequencing. The ADO cannot use AIP funding unless APP-1 has approved the waiver.

Z-5. AIP or ATO Funding of Cat II/III ILSs.

AIP or ATO funding of Cat II/III ILS will continue for the present.

However, future enhancements to GBAS are expected to enable approaches to Cat II/III minima. When the technology is certified, FAA anticipates further policy amendments to favor nonFederal GBAS installations, rather than new ILS, to deliver Cat II/III access capabilities. Until that time, AIP funds will continue to a possible source of funding for a justified Cat II/III ILS on a new runway or major new extension.

Z-6. AIP Transition from ILS to RNAV.

a. Airport Owned ILS that has reached the end of its useful life. For any existing airportowned ILS equipment that has reached the end of its useful life, the ADO can support a project for an RNAV survey. Alternatively, if the airport wishes to replace the equipment with other ground based ILS equipment, FAA will consider supporting the replacement of the individual components up to the reasonable cost of the RNAV survey, but the equipment replacement will not qualify for the takeover provisions found in 49 USC § 44502(e), which requires the FAA to take over ownership of the ground based equipment. Therefore, the sponsor will continue to own and maintain the ILS.

b. FAA Owned ILS. Because of budget augmentation issues, AIP funds cannot be used to upgrade or replace ground based equipment that is owned by the FAA. (There is a limited exception where the FAA-owned equipment is impacted by an AIP funded project that is unchanged by this policy.) There is no change to the eligibility of AIP funds being used for justified airfield lighting improvements (such as the installation of a threshold bar or inpavement centerline runway lights) that are needed to support upgraded approaches.

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