... and the agency is on the hot seat to get the money disseminated. Speaking at the AAAE/ACC Airport Planning, Design & Construction Symposium being held this week in the Mile High City, Benito ‘Ben’ DeLeon, director of FAA’s Office of Airport Planning and Programming, advises airports that they will play a key role in getting the dollars doled out at the rapid pace dictated by the American Recovery and Reinvestment Act of 2009. He calls it “a real tight schedule.â€
DeLeon says the airports division has 120 days in which to distribute 50 percent of the $1.1 billion targeted for airports. The timeline breakdown: 30 days for applications; 30 days for agency review; 30 days for awarding the grants. FAA was working to get out the specific guidelines to the airport industry by the end of this week, or early next week at the latest. Any funds not distributed by February 2010 will be lost, he says.
The bill waives the 5 percent match which usually is required for FAA grants for most airports; however, larger airports that fall under the 75/25 grant/match formula are not being given the waiver. Thus, says DeLeon, the final amount of funds initially distributed will likely be in the $850-900 million range.
One challenge – a significant concern for consultants attending the conference – is the ‘Buy American’ provision in the bill, says DeLeon. It’s not mandatory, but airport grant applications that include non-U.S. suppliers will require a special waiver from FAA, he says.
On the subject of how the dropping prices of commodities – concrete; copper; steel; etc. – might impact airport grants, DeLeon says “it remains to be seen.†Central to that answer is how the stimulus bill impacts other segments, particularly highways. Competition for supplies and contractors will heat up, he says, and highways are a much more dominant force in this arena. Thus, at the end of the day it could be a wash, or prices could again begin to rise due to the increase in demand.
Overall, attendees at this year’s design/build symposium were cautiously optimistic. The legislation intended to stimulate has done just that, at least in terms of providing some positive momentum and an attitude shift. The ball is now in FAA’s court.
Thanks for reading. jfi