AIP Handbook Order 5100 38D Chg1

ORDER
5100.38D,
Change 1
National Policy Effective date:

February 26, 2019
SUBJ: Airport Improvement Program Handbook
1. PURPOSE.
This Handbook provides guidance and sets forth policy and procedures used in the
administration of the Airport Improvement Program.
2. DISTRIBUTION.
This Handbook is located on the FAA Office of Airports website (see Appendix B for link)
where it is available to all interested parties.
3. CANCELLATION.
This Handbook cancels the following order:
• FAA Order 5100.38D, Airport Improvement Program Handbook (dated

September 30, 2014).
4. EXPLANATION OF CHANGES.
This Handbook replaces the above order with updated information that reflects current
legislation and policy as of September 30, 2018, with the exception of Program Guidance Letter
(PGL) 17-01. The changes in this Handbook reflect feedback from industry stakeholders over
the last 4 years. It does not include changes in FAA Reauthorization Act of 2018 (Public Law
115-254), which will initially be addressed in the form of PGLs and then in a subsequent update
of the AIP Handbook itself. The FAA Office of Airports has streamlined this Handbook and
replaced guidance with references where there is a more appropriate source of guidance (such as
in other orders or advisory circulars). This includes deleting guidance on airport planning,
capital planning, labor rates, and civil rights. The references appear as the basic publication
numbers without any suffix. The intent is for the reader to use the latest version of the
referenced publications.
The Office of Airports is issuing Change 1 to this Handbook to:
• Incorporate PGLs issued up to, but not including PGL 17-01.
• Reflect the transition to 2 Code of Federal Regulations (CFR) part 200, which became
effective on December 19, 2014.
• Incorporate legislation from the authorization extensions following the expiration of the FAA
Modernization and Reform Act of 2012 (Public Law 112-95), which includes the following:
February 26, 2019 Order 5100.38D, Change 1
o The Airport and Airway Extension Act of 2015 (Public Law 114-55) enacted
September 30, 2015.
o The Airport and Airway Extension Act of 2016 (Public Law 114-141) enacted
March 30, 2016.
o The FAA Extension, Safety, and Security Act of 2016 (Public Law 114-190) enacted
July 15, 2016.
o The Disaster Tax Relief and Airport and Airway Extension Act of 2017 (Public Law
115-63) enacted September 29, 2017.
o The Consolidated Appropriations Act, 2018 (Public Law 115-141) enacted

March 23, 2018.
• Include provisions from the following appropriation:
o The Consolidated Appropriations Act of 2016 (Public Law 114-113), enacted

December 18, 2015.
o The Consolidated Appropriations Act of 2017 (Public Law 115-31) enacted May 5, 2017.
o The Consolidated Appropriations Act, 2018 (Public Law 115-141) enacted

March 23, 2018.
Note: The FAA Reauthorization Act of 2018 (Public Law 115-254) enacted on October 5, 2018
is not incorporated in Change 1. These changes, as well as those from PGL 17-01, will be
included in subsequent updates to the AIP Handbook.
Vertical bars in the margins indicate the substansive text revisions made in Change 1. The
FAA Office of Airports will publish a separate summary of changes as a companion document
to Change 1. Non-substantive formatting, grammar, and wording changes were made
throughout Change 1, which requires FAA Order 5100.38D to be replaced by Change 1 in its
entirety, and are not marked.
Original signed by: Robin K. Hunt
Robin K. Hunt
Acting Director, Office of Airport Planning and Programming
Table of Contents
Chapter 1. What do I need to know about this order? ......................................................................... 1-1
1-1. This Order Is Called the Handbook. ........................................................................................... 1-1
1-2. Purpose of the Handbook. ......................................................................................................... 1-1
1-3. Handbook Audience. .................................................................................................................. 1-1
1-4. Handbook Location on the Internet. ........................................................................................... 1-1
1-5. Publications this Handbook Cancels. ......................................................................................... 1-1
1-6. Relevant AIP Legislation (Referred to as the Act). .................................................................... 1-1
1-7. AIP Transition to 2 CFR part 200. .............................................................................................. 1-2
1-8. Format for References to the Act. .............................................................................................. 1-4
1-9. Broad Objective of the Act. ........................................................................................................ 1-4
1-10. The Act is a Permissive Statute. .............................................................................................. 1-4
1-11. Aviation Priorities in the Act. .................................................................................................... 1-5
1-12. List of Handbook References (with Links to the Associated Websites). .................................. 1-5
1-13. General Principles of this Handbook. ....................................................................................... 1-5
1-14. Warning on Taking Handbook Text Out of Context. ................................................................ 1-6
1-15. Use of the Term Airports District Office (ADO). ....................................................................... 1-6
1-16. Use of the Phrase ADO has the option. ................................................................................... 1-6
1-17. FAA Office of Airports Positions/Divisions/Branches Referenced in this Handbook. .............. 1-6
1-18. Location of Handbook Definitions. ........................................................................................... 1-7
1-19. Process for Handbook Changes. ............................................................................................. 1-7
1-20. Supplemental Guidance and Standard Operating Procedures. ............................................... 1-7
1-21. New Handbook Layout and Format. ........................................................................................ 1-7
Chapter 2. Who can get a grant? ............................................................................................................ 2-1
2-1. Grant Recipients are Referred to as Sponsors. ......................................................................... 2-1
2-2. Type of Sponsors. ...................................................................................................................... 2-1
2-3. Type of Projects Each Sponsor Type Can Receive in a Grant. ................................................. 2-2
2-4. Grant Assurances – Definition and Which Ones to Use. ........................................................... 2-5
2-5. Grant Assurances – Duration and Applicability. ......................................................................... 2-9
2-6. Sponsor Qualification Criteria. ................................................................................................. 2-14
2-7. State Sponsorship Benefits. ..................................................................................................... 2-20
2-8. Sponsorship Determination Process. ....................................................................................... 2-20
2-9. Transfer of Sponsorship. .......................................................................................................... 2-20
2-10. Conflicting Grant Requests from More than One Entity. ........................................................ 2-21
Chapter 3. What projects can be funded? ............................................................................................. 3-1
Section 1. List of 16 Requirements for Project Funding. ..................................................................... 3-1
3-1. List of 16 Requirements for Project Funding. ............................................................................. 3-1
Section 2. Project Eligible. ...................................................................................................................... 3-2
3-2. The Act Establishes the General Types of Eligible Projects. ..................................................... 3-2
3-3. Project Requirement Tables (in the Appendices by Project Type). ........................................... 3-2
3-4. Prohibited Project and Unallowable Cost Tables. ...................................................................... 3-2
3-5. Only Specific Equipment is Eligible under the Act. .................................................................... 3-2
3-6. Eligibility of Maintenance, Rehabilitation, Reconstruction, and Replacement Projects. ............ 3-2
3-7. Difference between AIP and Passenger Facility Charge (PFC) Eligibility. ................................ 3-6
Section 3. Project Justified. .................................................................................................................... 3-7
3-8. Three Basic Tests for Project Justification. ................................................................................ 3-7
3-9. Justification Requirements for Safety and Security Projects. .................................................... 3-8
3-10. Justification Requirements for Unclassified Airport Projects. .................................................. 3-8
3-11. The Use of Critical Aircraft for Justification. ............................................................................. 3-9
iii
3-12. Useful Life Test for Equipment and Facilities. .......................................................................... 3-9
3-13. Benefit-Cost Analysis (BCA) for NAVAIDs and Weather Reporting Equipment. ................... 3-10
3-14. BCAs for Capacity Projects Using Discretionary Funds. ....................................................... 3-10
3-15. BCAs for All Other Projects. ................................................................................................... 3-12
Section 4. Project on Airport Property (with Good Title). .................................................................. 3-12
3-16. On-Airport Property Requirements......................................................................................... 3-12
Section 5. Project on Airport Layout Plan. .......................................................................................... 3-14
3-17. Airport Layout Plan Requirement. .......................................................................................... 3-14
Section 6. Intergovernmental Review and Airport User Consultation Complete. ........................... 3-15
3-18. Intergovernmental Review. .................................................................................................... 3-15
3-19. Consultation with Airport Users. ............................................................................................. 3-16
Section 7. FAA Environmental Finding Complete. ............................................................................. 3-17
3-20. Environmental Finding Requirements. ................................................................................... 3-17
Section 8. Usable Unit of Work Obtained. ........................................................................................... 3-17
3-21. Usable Unit Requirements (and Phased Project Conditions). ............................................... 3-17
Section 9. FAA Standards Met. ............................................................................................................. 3-18
3-22. Mandatory FAA Standards. .................................................................................................... 3-18
3-23. Modification to FAA Standards (or Specifications). ................................................................ 3-19
3-24. Standards that Exceed those of the FAA. .............................................................................. 3-20
3-25. Eligibility Differences between the Handbook and the Advisory Circulars............................. 3-23
3-26. Approval and Use of State Standards. ................................................................................... 3-23
3-27. Projects with No FAA Standard. ............................................................................................. 3-24
3-28. ADO Review of Plans and Specifications. ............................................................................. 3-24
Section 10. Project Procured Correctly. .............................................................................................. 3-25
3-29. Importance of 2 CFR §§ 200.317-200.326 (Formerly 49 CFR § 18.36). ............................... 3-25
3-30. Sponsor Procurement Requirements. .................................................................................... 3-26
3-31. Summary Table of Mandatory/Optional ADO Procurement Review. ..................................... 3-26
3-32. Bid Protests and Appeals. ...................................................................................................... 3-29
3-33. Procurement Protests and Appeals after the Contract Award. .............................................. 3-31
3-34. Bonding that Does Not Meet the Minimum Requirements. .................................................... 3-31
3-35. Noncompetitive Proposals (Including Sole Source and Inadequate Number of
Qualified Sources). ............................................................................................................... 3-32
3-36. Limited Noncompetitive Proposal Situations (ALCMS Modifications, One
Manufacturer, Sponsor Preferred, Prohibited LED Lighting). ............................................... 3-32
3-37. Change Orders, Supplemental Agreements, and Contract Modifications. ............................ 3-34
3-38. Contract Clauses and Contract Provisions Required for AIP Grants. .................................... 3-34
3-39. Contracts Containing Ineligible and/or Non-AIP Funded Work (Including Proration). ........... 3-34
3-40. Contracts Containing Requirements that May Reduce the Number of Potential
Bidders.................................................................................................................................. 3-36
3-41. Contracts Containing Work that Exceeds FAA Standards. .................................................... 3-36
3-42. Consultant Contracts (Qualifications Based with Negotiated Price). ..................................... 3-37
3-43. Design-Build and Construction Manager-at-Risk Contracts. ................................................. 3-37
3-44. Engineering Materials Arrestor System (EMAS). ................................................................... 3-38
3-45. Bid Alternates (Including Life Cycle Cost Analysis Alternates) and Bid Additives. ................ 3-39
3-46. Bidding Asphalt and Concrete Alternates. ............................................................................. 3-39
3-47. Buy American Requirements. ................................................................................................ 3-39
3-48. DOT Office of Inspector General (OIG) Notification of Potential Procurement/Bid
Improprieties. ........................................................................................................................ 3-40
3-49. Escalator Clauses. ................................................................................................................. 3-41
iv
3-50. Plans and Specifications Review. .......................................................................................... 3-41

3-51. Pre-award Review of Contracts. ............................................................................................ 3-41
3-52. Sponsor’s Procurement System............................................................................................. 3-42
3-53. Force Account Work. .............................................................................................................. 3-42
3-54. Value Engineering. ................................................................................................................. 3-44
3-55. Indefinite Delivery (Task Orders) Extensions for Construction Services. .............................. 3-45
3-56. Indefinite Delivery (Task Orders) Extensions for Consultant Services. ................................. 3-45
3-57. Suspension or Debarment of Persons or Companies............................................................ 3-45
Section 11. Cost Allowable. .................................................................................................................. 3-46
3-58. Allowable Cost Legislation and Policy.................................................................................... 3-46
3-59. Unallowable Cost Table. ........................................................................................................ 3-47
3-60. Administrative Costs............................................................................................................... 3-47
3-61. Indirect Costs. ........................................................................................................................ 3-49
3-62. Architectural Enhancements Costs. ....................................................................................... 3-51
3-63. Benefit-Cost Analysis (BCA) Costs. ....................................................................................... 3-51
3-64. Construction Costs. ................................................................................................................ 3-52
3-65. Construction Project Signs Costs........................................................................................... 3-52
3-66. Computer Software and Data Subscription Costs. ................................................................ 3-52
3-67. Disadvantaged Business Enterprise (DBE) Plan Updates. ................................................... 3-52
3-68. Drainage Costs....................................................................................................................... 3-53
3-69. Duct Bank Costs for Ineligible Facilities. ................................................................................ 3-53
3-70. Energy Efficiency (Green/Sustainable) Improvement Costs. ................................................. 3-53
3-71. Engineering and Architectural (A/E) Costs. ........................................................................... 3-54
3-72. Environmental Finding Costs. ................................................................................................ 3-55
3-73. Equipment Leasing (instead of Purchase) Costs. .................................................................. 3-55
3-74. Facility Impeding an AIP Development Project – Costs to Rebuild or Relocate in
Another Location. ................................................................................................................. 3-55
3-75. Flight Check. .......................................................................................................................... 3-61
3-76. Force Account Costs. ............................................................................................................. 3-62
3-77. Geographic Information System (GIS) Data Collection. ........................................................ 3-62
3-78. Heated Airfield Pavement. ..................................................................................................... 3-63
3-79. Historic Building Costs. .......................................................................................................... 3-63
3-80. Hydrant Fuel Lines and Pit Costs........................................................................................... 3-63
3-81. Land Acquisition Costs. .......................................................................................................... 3-63
3-82. Legal Fees and Settlement Costs. ......................................................................................... 3-66
3-83. Lighted X’s and Other Runway Closure Markings Costs. ...................................................... 3-67
3-84. Nonroad Diesel Engines. ....................................................................................................... 3-67
3-85. Normally Unallowable Costs that are Necessary to Carry Out the Project. ........................... 3-68
3-86. Project Formulation Costs. ..................................................................................................... 3-68
3-87. Reimbursable Agreements with Other Federal Agencies. ..................................................... 3-69
3-88. Safety Management System (SMS) and Safety Risk Management (SRM) Costs. ............... 3-69
3-89. Secondary Electrical Power Supply Costs. ............................................................................ 3-70
3-90. Seismic Standards. ................................................................................................................ 3-71
3-91. Site Preparation Costs for Ineligible Work. ............................................................................ 3-71
3-92. Spare Part Costs. ................................................................................................................... 3-71
3-93. Sponsor Furnished Materials or Supplies. ............................................................................. 3-72
3-94. Temporary Construction Costs. ............................................................................................. 3-74
3-95. Thermoplastic Markings. ........................................................................................................ 3-75
3-96. Used Equipment Costs. ......................................................................................................... 3-75
3-97. Utility Costs. ........................................................................................................................... 3-75
3-98. Value Engineering. ................................................................................................................. 3-76
Section 12. Costs Necessary (Allowable Cost Rule #1). .................................................................... 3-76
3-99. Requirements for Costs to be Necessary. ............................................................................. 3-76
v
Section 13. Costs Incurred after Grant Executed (Allowable Cost Rule #2). ................................... 3-76
3-100. Rules for Reimbursing Project Costs Prior to the Grant (or LOI) Execution Date. .............. 3-76
Section 14. Costs Reasonable (Allowable Cost Rule #3)................................................................... 3-81
3-101. Sponsor Requirements. ....................................................................................................... 3-81
3-102. ADO Review Requirements. ................................................................................................ 3-84
3-103. Documentation of ADO Determination. ................................................................................ 3-84
Section 15. Costs Not in Another Federal Grant (Allowable Cost Rule #4). .................................... 3-85
3-104. Requirement for Costs to Not be in Another Federal Grant. ................................................ 3-85
Section 16. Costs within Federal Share (Allowable Cost Rule #5). .................................................. 3-85
3-105. Allowable Federal Share Requirement. ............................................................................... 3-85
Section 17. No Unreasonable Delay in Completion. ........................................................................... 3-85
3-106. Requirement for No Unreasonable Delay in Project Completion. ........................................ 3-85
Chapter 4. What AIP funding is available? ............................................................................................ 4-1
4-1. Legislation Needed to Issue AIP Grants (Authorization/Appropriation). .................................... 4-1
4-2. Airport and Airway Trust Fund (Source of AIP). ......................................................................... 4-1
4-3. Calendar Year Used for Passenger Boardings, Entitlements, and Cargo Landed
Weight..................................................................................................................................... 4-1
4-4. Categories of AIP Funding (Including Calculations and Legislative References). ..................... 4-1
4-5. Types of Potential Funding by Airport Type (Including Airport Type Definitions). ..................... 4-7
4-6. Airports that Can Use Each Fund Type (Funding Restrictions by Airport Type). .................... 4-14
4-7. Project Restrictions by Fund Type. .......................................................................................... 4-18
4-8. Fund Expiration Time Frames by Airport and Fund Type. ....................................................... 4-22
4-9. Federal Share by Airport Type (Including Exceptions). ........................................................... 4-23
4-10. Federal Share Exception for States with Large Amounts of Public Land .............................. 4-27
4-11. Transfer of Entitlement Funds between Airports. ................................................................... 4-28
4-12. Use of Donations (or Previously Acquired Land) as the Sponsor Share. .............................. 4-31
4-13. Budget Augmentation (Combining Funds between Different Federal Programs). ................ 4-39
Chapter 5. How does the grant process work? .................................................................................... 5-1
Section 1. Basic Grant Steps. ................................................................................................................. 5-1
5-1. Basic Grant Steps. ..................................................................................................................... 5-1
Section 2. Pre-Grant Actions. ................................................................................................................. 5-1
5-2. Introduction. ................................................................................................................................ 5-1
5-3. Identification of Potential Projects by Sponsors and ADO. ........................................................ 5-2
5-4. Early Coordination between ADO and Sponsor. ........................................................................ 5-4
5-5. ADO Verification of Sponsor Eligibility. ...................................................................................... 5-5
5-6. ADO Verification that All Project Requirements Will Be Met...................................................... 5-5
5-7. ADO Verification that Airport Layout Plan is Current. ................................................................ 5-5
5-8. ADO Notification to New Sponsors of Flood Insurance Requirements. ..................................... 5-6
5-9. ADO Notification and Verification of Sponsor Civil Rights Requirements.................................. 5-6
5-10. ADO Verification that Risk Level Determination is Current. ..................................................... 5-7
5-11. ADO Review of Open Grant Status.......................................................................................... 5-7
5-12. ADO Verification that Competition Plan is Current. ................................................................. 5-7
Section 3. Grant Programming. .............................................................................................................. 5-8
5-13. Introduction. .............................................................................................................................. 5-8
5-14. Project Evaluation Report and Development Analysis (PERADA) Completion. ...................... 5-8
5-15. Grant Programming. ................................................................................................................. 5-8
vi
5-16. Congressional Notification. ...................................................................................................... 5-8

5-17. Sponsor Notification. ................................................................................................................ 5-9
Section 4. Grant Application, Offer, and Acceptance. ......................................................................... 5-9
5-18. Introduction. .............................................................................................................................. 5-9
5-19. Grant Application Package Submittal....................................................................................... 5-9
5-20. Grant Application Review. ...................................................................................................... 5-12
5-21. Reservation of Funds. ............................................................................................................ 5-13
5-22. Grant Offer. ............................................................................................................................ 5-14
5-23. Grant Acceptance................................................................................................................... 5-23
5-24. The FAA Office of Finance and Management, FAA Accounts Payable Section B
(AMK-314) Notification. ........................................................................................................ 5-23
Section 5. ADO Grant Oversight. .......................................................................................................... 5-23
5-25. ADO Oversight (and Required Sponsor Documentation) Based on Sponsor Risk
Level. .................................................................................................................................... 5-23
5-26. Requirement to Include a Copy of FAA Determinations in the Grant File. ............................ 5-24
5-27. Statutory Requirement for ADO Project Oversight. ............................................................... 5-24
5-28. Safety Risk Management (SRM) Panels................................................................................ 5-24
5-29. Construction Safety Phasing Plans. ....................................................................................... 5-24
5-30. Predesign, Prebid, and Preconstruction Conferences. .......................................................... 5-24
5-31. Equipment Photographs. ........................................................................................................ 5-24
5-32. Construction Photographs. ..................................................................................................... 5-25
5-33. Construction Management Programs. ................................................................................... 5-25
5-34. Notices to Proceed. ................................................................................................................ 5-25
5-35. Change Orders, Supplemental Agreements, and Contract Modifications. ............................ 5-25
5-36. Periodic Inspections. .............................................................................................................. 5-30
5-37. Construction Progress and Inspection Report. ...................................................................... 5-30
5-38. Meetings for Planning and Environmental Study Grants. ...................................................... 5-30
5-39. Forecasts in Planning or Environmental Projects. ................................................................. 5-30
5-40. Performance Report (formerly called Quarterly Performance Report). ................................. 5-30
5-41. Annual Reporting of Residential Population Benefits. ........................................................... 5-32
5-42. Final Inspection. ..................................................................................................................... 5-32
Section 6. Grant Payments. .................................................................................................................. 5-32
5-43. Summary of Payment Request Requirements and Limitations. ............................................ 5-32
5-44. Requirements and Process for Using the Current DOT Electronic Payment System. .......... 5-33
5-45. Requirements for Frequency of Payment Requests and Expenditure Rate. ......................... 5-33
5-46. Requirements for Approving Payment within the Last 10% of the Federal Share. ................ 5-34
5-47. Requirements for Payment Requests to be Based on Incurred Costs. ................................. 5-34
5-48. Requirements for Reducing or Withholding Payments. ......................................................... 5-35
5-49. Limitations for Contract Retainage. ........................................................................................ 5-36
5-50. Limitations for Contractor Disputed Costs.............................................................................. 5-38
5-51. Limitations for Land Acquisition Costs. .................................................................................. 5-38
5-52. Requirements for Avoiding Improper Payments. ................................................................... 5-38
5-53. Requirements for Financial Reporting (Standard Forms 425, 271, and 270). ....................... 5-40
5-54. Requirements for Retaining/Providing Supporting Documentation. ...................................... 5-40
Section 7. Grant Amendments. ............................................................................................................. 5-40
5-55. Criteria for Amending a Grant. ............................................................................................... 5-40
5-56. Procedure for the ADO to Process an Amendment. .............................................................. 5-50
Section 8. Grant Closeouts. .................................................................................................................. 5-51
5-57. Grant Closeout Steps and Requirements. ............................................................................. 5-51
5-58. Block Grant Closeout. ............................................................................................................ 5-56
vii
Section 9. Grant Suspension and/or Termination. ............................................................................. 5-57

5-59. Reasons for Possible Grant Suspension or Termination. ...................................................... 5-57
5-60. Suspension of a Grant............................................................................................................ 5-57
5-61. Termination for Cause. ........................................................................................................... 5-58
5-62. Termination for Convenience. ................................................................................................ 5-59
Section 10. Post-Grant Actions. ........................................................................................................... 5-59
5-63. Sponsor Records Retention. .................................................................................................. 5-59
5-64. ADO Records Retention. ........................................................................................................ 5-60
5-65. Reopening Grants. ................................................................................................................. 5-60
5-66. Audit Requirements. ............................................................................................................... 5-60
5-67. Disposal of AIP Funded Equipment. ...................................................................................... 5-62
5-68. Disposal of Excess/Unneeded AIP Funded Land (and ADO/Sponsor Tracking). ................. 5-63
Chapter 6. What special AIP programs are available? ......................................................................... 6-1
Section 1. Letters of Intent (LOI). ........................................................................................................... 6-1
6-1. LOI Overview. ............................................................................................................................. 6-1
6-2. LOI Funding Rules and Policy. ................................................................................................... 6-1
6-3. LOI in the Context of an Airport’s Overall Capital Program. ...................................................... 6-3
6-4. LOI Project Criteria by Airport Type. .......................................................................................... 6-4
6-5. LOI Approval/Disapproval Process. ........................................................................................... 6-7
6-6. Sponsor LOI Submission Requirements. ................................................................................... 6-9
6-7. LOI Evaluation Criteria. ............................................................................................................ 6-12
6-8. LOI Offer Package.................................................................................................................... 6-12
6-9. LOI Grant Administration. ......................................................................................................... 6-14
6-10. LOI Amendments. .................................................................................................................. 6-14
6-11. LOI Closeout. ......................................................................................................................... 6-15
6-12. Revising, Suspending, or Terminating an LOI. ...................................................................... 6-15
Section 2. State Block Grant. ................................................................................................................ 6-15
6-13. General. .................................................................................................................................. 6-15
6-14. Limited State Flexibility. ......................................................................................................... 6-15
6-15. Responsibilities Retained by the FAA. ................................................................................... 6-15
6-16. Legislative History and List of Participants. ........................................................................... 6-16
6-17. State Block Grant Program Application.................................................................................. 6-17
6-18. FAA Selection of State Block Grant Participants. .................................................................. 6-18
6-19. Memorandum of Agreement. ................................................................................................. 6-19
6-20. Grant Assurances................................................................................................................... 6-19
6-21. Criteria for an Airport to be in the State Block Grant Program. .............................................. 6-20
6-22. ADO Right to Issue Grants Directly to Airports in the State Block Grant Program. ............... 6-20
6-23. Decision Authority for Discretionary Funds. ........................................................................... 6-20
6-24. Grant Federal Share............................................................................................................... 6-21
6-25. Grant and Amendment Processes. ........................................................................................ 6-21
6-26. Transfer of AIP Funding between Airports. ............................................................................ 6-21
6-27. Project Eligibility and Allowable Costs. .................................................................................. 6-21
6-28. Project Administrative Costs. ................................................................................................. 6-22
6-29. Program Administration Costs. .............................................................................................. 6-22
6-30. Required Timeframe to Issue Subgrants. .............................................................................. 6-22
6-31. Grant/Project Oversight. ......................................................................................................... 6-22
6-32. Grant Payments. .................................................................................................................... 6-22
6-33. Grant Closeout. ...................................................................................................................... 6-22
6-34. Program Review by the FAA. ................................................................................................. 6-22
6-35. Accounting and Audits. .......................................................................................................... 6-22
6-36. Suspension/Termination of a Grant Issued under the State Block Grant Program. .............. 6-23
6-37. Suspension of a State from the State Block Grant Program.................................................. 6-23
viii
6-38. Removal or Voluntary Withdrawal from the State Block Grant Program. .............................. 6-23
Section 3. Military Airport Program. ..................................................................................................... 6-24
6-39. General. .................................................................................................................................. 6-24
6-40. AIP Funding. ........................................................................................................................... 6-24
6-41. Designation Authority. ............................................................................................................ 6-24
6-42. Original MAP Designation Duration. ...................................................................................... 6-24
6-43. Redesignation Duration. ......................................................................................................... 6-24
6-44. Requirements. ........................................................................................................................ 6-24
6-45. Typical MAP Projects. ............................................................................................................ 6-27
6-46. Use of Regular AIP on a MAP Designated Airport................................................................. 6-28
6-47. MAP Funding Limitations. ...................................................................................................... 6-28
6-48. Reimbursement with Discretionary. ....................................................................................... 6-28
6-49. Application Process. ............................................................................................................... 6-28
Section 4. Innovative Finance Demonstration Program. ................................................................... 6-29
6-50. Legislative History and References........................................................................................ 6-29
6-51. Program Rules. ...................................................................................................................... 6-29
Section 5. Voluntary Airport Low Emission Program (VALE). .......................................................... 6-30
6-52. Legislative History. ................................................................................................................. 6-30
6-53. Legislative References. .......................................................................................................... 6-31
6-54. Purpose and General Overview. ............................................................................................ 6-31
6-55. Available Guidance. ............................................................................................................... 6-31
6-56. Application and Grant Process............................................................................................... 6-32
6-57. Project Funding Requirements............................................................................................... 6-32
Section 6. Zero Emission Vehicle and Infrastructure Pilot Program. ............................................... 6-32
6-60. Purpose. ................................................................................................................................. 6-33
Section 7. Program to Increase Energy Efficiency of Airport Power Sources. ............................... 6-33
6-66. Purpose. ................................................................................................................................. 6-34
6-69. Funding and Federal Share. .................................................................................................. 6-34
Section 8. Airport Development Rights Pilot Program. ..................................................................... 6-34
6-72. Rules of the Pilot Program. .................................................................................................... 6-34
Section 9. Redevelopment of Airport Properties Pilot Program. ...................................................... 6-39
6-74. Purpose. ................................................................................................................................. 6-39
6-75. Availability of Guidance. ......................................................................................................... 6-39
Appendix A. Definitions of Terms Used in this Handbook ................................................................. A-1
A-1. Definitions of Terms Used in this Handbook..............................................................................A-1
ix
Appendix B. References and Web Links .............................................................................................. B-1

B-1. References and Web Links. .......................................................................................................B-1
Appendix C. Prohibited Projects and Unallowable Costs .................................................................. C-1
C-1. Examples of General Prohibited Projects/Costs (for All Types of Projects). ............................ C-1
C-2. Examples of Construction Prohibited Projects/Costs. .............................................................. C-6
C-3. Examples of Equipment Prohibited Projects/Costs. ............................................................... C-14
C-4. Examples of Land Prohibited Projects/Costs. ........................................................................ C-18
C-5. Examples of Noise Mitigation Prohibited Projects/Costs........................................................ C-19
C-6. Examples of Planning or Environmental Prohibited Projects/Costs. ...................................... C-21
Appendix D. Miscellaneous Projects .................................................................................................... D-1
D-1. How to Use This Appendix. ...................................................................................................... D-1
D-2. Airfield Needs Requirement for Revenue Producing Aeronautical Support Facilities. ............. D-1
D-3. Project Requirements. .............................................................................................................. D-1
Appendix E. Planning Projects ...............................................................................................................E-1
E-1. How to Use This Appendix. .......................................................................................................E-1
E-2. Conditions for Posting Planning Documents on the Internet. ....................................................E-1
E-3. Disclaimer for AIP Funded Planning Studies. ............................................................................E-1
E-4. Stand-Alone Master Plan and System Plan (Metropolitan and State) Projects. .......................E-1
E-5. Project Requirements Table. .....................................................................................................E-4
Appendix F. New Airport Projects .......................................................................................................... F-1
F-1. How to Use This Appendix. ........................................................................................................ F-1
F-2. Project Requirements Tables. .................................................................................................... F-1
Appendix G. Runway Projects ............................................................................................................... G-1
G-1. How to Use This Appendix. ...................................................................................................... G-1
G-2. Secondary, Crosswind and Additional Runways. ..................................................................... G-1
G-3. Pavement Condition Index Requirements for Airfield Pavement Projects. .............................. G-2
G-4. Project Requirements Tables. .................................................................................................. G-3
Appendix H. Taxiway Projects ............................................................................................................... H-1
H-1. How to Use This Appendix. ...................................................................................................... H-1
H-2. Taxiway Types (and Associated AIP Funding Rules). ............................................................. H-1
H-3. Pavement Condition Index Requirements for Airfield Pavement Projects. .............................. H-2
H-4. Project Requirements Tables. .................................................................................................. H-2
Appendix I. Apron Projects ...................................................................................................................... I-1
I-1. How to Use This Appendix. .......................................................................................................... I-1
I-2. Non-Exclusive Use Available for Public Aircraft Parking/Access. ................................................ I-1
I-3. Apron in Front of a Building. ......................................................................................................... I-1
I-4. Pavement Condition Index Requirements for Airfield Pavement Projects. .................................. I-1
I-5. Project Requirements Tables. ...................................................................................................... I-2
Appendix J. Airfield Marking, Signage, and Lighting Projects ........................................................... J-1
J-1. How to Use This Appendix. ........................................................................................................ J-1
J-2. Eligibility of Pavement Marking as a Stand-Alone Project. ........................................................ J-1
J-3. Eligibility of Sign Panel Replacement as a Stand-Alone Project. ............................................... J-1
J-4. Airport Lighting Control Panel Modification. ............................................................................... J-2
J-5. Certified Lighting Equipment for which there is Only a Single Manufacturer. ............................ J-3
J-6. Lighting for Pavement that Exceeds FAA Design Standards. .................................................... J-3
J-7. Project Requirements Table. ...................................................................................................... J-3
x
Appendix K. Navigational Aid (NAVAID) and Weather Reporting Equipment Projects ................... K-1
K-1. How to Use This Appendix. .......................................................................................................K-1
K-2. Installation of Instrument Landing Systems (ILS). .....................................................................K-1
K-3. Transfer of Equipment to the FAA Air Traffic Organization (ATO). ...........................................K-1
K-4. Required FAA Air Traffic Organization (ATO) Coordination. .....................................................K-2
K-5. Designated Instrument Runway Requirement. ..........................................................................K-2
K-6. NAVAID and Weather Reporting Equipment Communication Requirements. ..........................K-2
K-7. Compass Calibration Pad. .........................................................................................................K-2
K-8. Airside Service Roads to Access AIP Eligible NAVAIDs. ..........................................................K-2
K-9. Project Requirements Table. .....................................................................................................K-2
Appendix L. Safety and Security Equipment Projects ......................................................................... L-1
L-1. How to Use This Appendix. ........................................................................................................ L-1
L-2. Justification for Safety and Security Equipment. ........................................................................ L-1
L-3. Safety Equipment beyond 14 CFR part 139 Requirements. ...................................................... L-1
L-4. Use of Safety and Security Equipment. ..................................................................................... L-1
L-5. Off-Airport Storage of ARFF Equipment. ................................................................................... L-1
L-6. Radios and Communication Equipment. .................................................................................... L-2
L-7. Security Equipment beyond 49 CFR part 1542 Requirements. ................................................. L-2
L-8. Sensitive Security Information. ................................................................................................... L-2
L-9. Project Requirements Table. ...................................................................................................... L-2
Appendix M. Other Equipment Projects ............................................................................................... M-1
M-1. How to Use This Appendix. ...................................................................................................... M-1
M-2. Project Requirements Table. .................................................................................................... M-1
Appendix N. Terminal Building Projects .............................................................................................. N-1
N-1. How to Use This Appendix. ...................................................................................................... N-1
N-2. Eligibility of Terminals Non-Commercial Service Airports. ....................................................... N-1
N-3. Public-Use and Movement of Passengers/Baggage Requirements. ....................................... N-1
N-4. Revenue Producing Eligibility and Conditions for Terminal Buildings. ..................................... N-2
N-5. Safety, Security, and Access Needs Met. ................................................................................ N-3
N-6. Terminal Areas Related to Security (Landside, Sterile, and Secured). .................................... N-3
N-7. Prorated Areas and High Cost Eligible/Ineligible Items. ........................................................... N-4
N-8. Terminal Area Impacted by an AIP Eligible Terminal Project................................................... N-4
N-9. Typical Eligible Areas/Equipment within a Terminal Building. .................................................. N-4
N-10. Additional Eligible Terminal Areas/Equipment at Nonhub Primary and Nonprimary
Airports. ................................................................................................................................. N-7
N-11. Terminal Building Funding Rules by Airport Type. ................................................................. N-8
N-12. Project Requirements Tables. .............................................................................................. N-10
Appendix O. Other Building Projects .................................................................................................... O-1
O-1. How to Use This Appendix. ...................................................................................................... O-1
O-2. Aircraft Rescue & Firefighting Building Costs at 14 CFR part 139 Airports. ............................ O-1
O-3. Project Requirements Tables. .................................................................................................. O-2
Appendix P. Roads and Surface Transportation Projects ...................................................................P-1
P-1. How to Use This Appendix. .......................................................................................................P-1
P-2. Project Requirements Tables. ...................................................................................................P-1
Appendix Q. Land Projects .................................................................................................................... Q-1
Q-1. How to Use This Appendix. ...................................................................................................... Q-1
Q-2. General Eligibility Requirements. ............................................................................................. Q-1
Q-3. Applicable Land Orders, Regulations, and Advisory Circulars. ............................................... Q-1
Q-4. Appraisal Requirement. ............................................................................................................ Q-1
xi
Q-5. Good Title Requirements for Land and Easement Acquisition. ............................................... Q-2
Q-6. Acceptable Land Interests. ....................................................................................................... Q-2
Q-7. Logical Boundaries. .................................................................................................................. Q-3
Q-8. Uneconomic Remnants. ........................................................................................................... Q-3
Q-9. Disposal of Excess Land. ......................................................................................................... Q-3
Q-10. Purchasing Land from a State/Local Public Agency. ............................................................. Q-3
Q-11. Project Requirements Tables. ................................................................................................ Q-4
Appendix R. Noise Compatibility Planning/Projects ........................................................................... R-1
R-1. How to Use This Appendix. ...................................................................................................... R-1
R-2. General Eligibility Requirements (The Four Types of Justification). ........................................ R-1
R-3. Noncompatible Land Uses. ...................................................................................................... R-1
R-4. Not all 14 CFR part 150 Measures are Eligible. ....................................................................... R-2
R-5. Reduction Due to Aircraft Noise Associated with the Airport. .................................................. R-2
R-6. Eligible Noise Contour Threshold (or the Use of a Lower Local Standards). ........................... R-2
R-7. Required Validation of the Noise Exposure Maps. ................................................................... R-2
R-8. Interior Noise Level Requirements. .......................................................................................... R-3
R-9. Block Rounding. ........................................................................................................................ R-4
R-10. Neighborhood Equity. ............................................................................................................. R-4
R-11. Pre- and Post-Testing Criteria for Noise Insulation Projects. ................................................. R-5
R-12. Conditions for Posting Planning Documents on the Internet. ................................................. R-7
R-13. Disposal of Excess/Unneeded AIP Funded Noise Land (and ADO/Sponsor Tracking). ....... R-8
R-14. Project Requirements Tables. ................................................................................................ R-8
Appendix S. Environmental Planning/Mitigation Projects ...................................................................S-1
S-1. How to Use This Appendix. .......................................................................................................S-1
S-2. Conditions for Posting Planning Documents on the Internet. ....................................................S-1
S-3. Project Requirements Tables. ...................................................................................................S-1
Appendix T. Military Airport Program Projects ..................................................................................... T-1
T-1. How to Use This Appendix. ........................................................................................................ T-1
T-2. Project Requirements Tables. .................................................................................................... T-1
Appendix U. Sponsor Procurement Requirements (Including 2 CFR §§ 200.317-200.326 (formerly
49 CFR § 18.36)) ...................................................................................................................................... U-1
U-1. Appendix Layout. ...................................................................................................................... U-1
U-2. Sponsor Force Account Costs. ................................................................................................. U-1
U-3. Sponsor Furnished Material or Supplies. ................................................................................. U-1
U-4. Buy American Requirements. ................................................................................................... U-1
U-5. Suspension or Debarment of Persons or Companies. ............................................................. U-1
U-6. Terminology Used in Industry .................................................................................................. U-2
U-7. Prohibited Light Emitting Diode (LED) Lighting. ....................................................................... U-2
U-8. Why 2 CFR §§ 200.317-200.326 is Reproduced in This Appendix. ........................................ U-3
U-9. 2 CFR § 200.317 - Procurements by States. ........................................................................... U-3
U-10. 2 CFR § 200.318 - General Procurement Standards. ............................................................ U-3
U-11. 2 CFR § 200.319 - Competition. ............................................................................................. U-7
U-12. 2 CFR § 200.320 - Methods of Procurement to be Followed. .............................................. U-10
U-13. 2 CFR § 200.320(a) - Procurement by Micro-Purchases. .................................................... U-11
U-14. 2 CFR § 200.320(b) - Procurement by Small Purchase Procedures. .................................. U-12
U-15. 2 CFR § 200.320(c) - Procurement by Sealed Bids (Formal Advertising). .......................... U-13
U-16. 2 CFR § 200.320(d) - Procurement by Competitive Proposals. ........................................... U-16
U-17. 2 CFR § 200.320(e) - Reserved. .......................................................................................... U-21
U-18. 2 CFR § 200.320(f) - Procurement by Noncompetitive Proposals. ...................................... U-21
U-19. 2 CFR § 200.321 - Contracting with Small and Minority Businesses, Women’s
Business Enterprises, and Labor Surplus Area Firms. ....................................................... U-24
U-20. 2 CFR § 200.322 - Procurement of Recovered Materials. ................................................... U-25
xii
U-21. 2 CFR § 200.323, Contract Cost and Price. ......................................................................... U-26

U-22. 2 CFR § 200.324 - Federal Awarding Agency or Pass-Through Entity Review. .................. U-28
U-23. 2 CFR § 200.325 - Bonding Requirements. ......................................................................... U-30
U-24. 2 CFR § 200.326 - Contract provisions. ............................................................................... U-31
Appendix V. Revenue Sources for the Airport and Airway Trust Fund .............................................V-1
V-1. General. .....................................................................................................................................V-1
Appendix W. Competition Plans ............................................................................................................W-1
W-1. Legislative History. ...................................................................................................................W-1
W-2. Purpose. ...................................................................................................................................W-1
W-3. Covered Airports. .....................................................................................................................W-1
W-4. Prohibition on Grant Execution. ...............................................................................................W-1
W-5. Requirements for Initial Plan Submittal and Updates. .............................................................W-2
W-6. Initial Competition Plan Contents. ............................................................................................W-3
W-7. Competition Plan Update Contents. ........................................................................................W-7
W-8. Sponsor Guidance. ..................................................................................................................W-7
W-9. Plan Review Process. ..............................................................................................................W-7
W-10. Additional FAA Actions. .........................................................................................................W-8
W-11. Plan Development Eligibility. .................................................................................................W-8
Appendix X. Buy American Guidance ....................................................................................................X-1
X-1. General Sponsor Buy American Requirements. ........................................................................X-1
X-2. Other Buy American and Buy America Requirements. .............................................................X-1
X-3. Changes Orders and Buy American Requirements. .................................................................X-1
X-4. Buy American Waiver Process and Delegation. ........................................................................X-1
X-5. National Buy American Waiver. .................................................................................................X-3
X-6. Definitions. .................................................................................................................................X-4
Appendix Y. Federal Share at Public Land State Airports ...................................................................Y-1
Y-1. General Federal Share Definition. .............................................................................................Y-1
Y-2. Public Land States Definition. ....................................................................................................Y-1
Y-3. History of the Public Land Share Formula. ................................................................................Y-2
Y-4. Calculating the Federal Share in Public Land States Using the Part ‘b’ and Part ‘c’
Formulas. ................................................................................................................................Y-3
Y-5. Part ‘b’ Formula..........................................................................................................................Y-3
Y-6. Part ‘c’ Calculation (the Grandfather Rule). ...............................................................................Y-9
Y-7. Public Land State Federal Share Results. ...............................................................................Y-10
Appendix Z. Establishment and Category Upgrade Policy for Instrument Landing Systems (ILS) Z-1
Z-1. Background. ............................................................................................................................... Z-1
Z-2. Use of RNAV Approaches Instead of Cat I ILS Systems........................................................... Z-1
Z-3. FAA Air Traffic Organization (ATO) Funding for Cat I ILSs. ...................................................... Z-1
Z-4. AIP Funding for Cat I ILSs. ........................................................................................................ Z-2
Z-5. AIP or ATO Funding of Cat II/III ILSs. ........................................................................................ Z-2
Z-6. AIP Transition from ILS to RNAV. .............................................................................................. Z-2
xiii
List of Tables and Figures

Table of Contents .......................................................................................................................................... iii
List of Tables and Figures ........................................................................................................................... xiv
Table 1-1 AIP Related Legislation ............................................................................................................ 1-2
Table 1-2 Crosswalk between 2 CFR part 200 and Previous OMB Circulars (see Appendix B for
link to the website containing these crosswalks)............................................................................... 1-3
Table 1-3 Examples of Differences Where 2 CFR part 200 is Addressing Grant Program
Administration .................................................................................................................................... 1-3
Table 1-4 Differences Between AIP Policy and 2 CFR part 200 .............................................................. 1-4
Table 1-5 FAA Office of Airports Key Positions ........................................................................................ 1-6
Table 1-6 FAA Office of Airports Divisions and Branches ........................................................................ 1-7
Table 1-7 Handbook Chapters .................................................................................................................. 1-8
Table 1-8 Handbook Appendices .............................................................................................................. 1-9
Table 2-1 Types of Sponsors .................................................................................................................... 2-1
Table 2-2 Types of Projects that May be Included in a Grant (by Sponsor Type) .................................... 2-3
Table 2-3 Statutory Basis for Grant Assurances....................................................................................... 2-6
Table 2-4 Applicable Grant Assurances (by Sponsor and Project Type) ................................................. 2-6
Table 2-5 Duration and Applicability of Grant Assurances (Airport Sponsors) ....................................... 2-10
Table 2-6 Duration and Applicability of Grant Assurances (Planning Agency Sponsors) ...................... 2-11
Table 2-7 Duration and Applicability of Grant Assurances (Non-Airport Sponsors Undertaking
Noise Compatibility Program Projects)............................................................................................ 2-12
Table 2-8. Duration and Applicability of Grant Assurances (Aviation Block Grant Program)* ................ 2-13
Table 2-9 Legal and Financial Requirements for Public Agencies ......................................................... 2-15
Table 2-10 Legal and Financial Requirements for Private Entities ......................................................... 2-16
Table 2-11 Additional Criteria, Requirements, and Considerations for Specific Sponsorship
Situations ......................................................................................................................................... 2-17
Table 3-1 The 16 General Requirements for Project Funding .................................................................. 3-1
Table 3-2 Differences between Maintenance, Rehabilitation, Reconstruction, and Replacement
Projects .............................................................................................................................................. 3-3
Table 3-3 Examples of Maintenance, Rehabilitation, Reconstruction, and Replacement Projects .......... 3-4
Table 3-4 Three Basic Tests to Determine if a Project is Justified ........................................................... 3-7
Table 3-5 Examples of Projects Not Meeting the Basic Justification Tests .............................................. 3-7
Table 3-6 Safety and Security Projects Proposals Requiring Additional ADO Review ............................ 3-8
Table 3-7 Minimum Useful Life ............................................................................................................... 3-10
Table 3-8 Projects Where the FAA Has Determined if a BCA is Required ............................................ 3-11
Table 3-9 BCA Process........................................................................................................................... 3-12
Table 3-10 Eligible Off-Airport Projects ................................................................................................... 3-13
Table 3-11 Projects Requiring Intergovernmental Review ..................................................................... 3-15
Table 3-12 Key Requirements for Intergovernmental Review ................................................................ 3-15
Table 3-13 Airport User Consultation Requirements .............................................................................. 3-16
Table 3-14 Requirements for Grants that will Not Result in a Usable Unit of Work ............................... 3-17
Table 3-15 Examples of Acceptable and Unacceptable Grant Descriptions .......................................... 3-18
Table 3-16 Examples of Modifications of Standards that Must Not be Considered for AIP Funded
Projects ............................................................................................................................................ 3-20
Table 3-17 Limited Circumstances Where Work Exceeding FAA Standards May be Funded with
AIP ................................................................................................................................................... 3-20
Table 3-18 Funding Examples for Work Exceeding FAA Standards ...................................................... 3-21
Table 3-19 Requirements for the Use of State Standards ...................................................................... 3-23
Table 3-20 Required Content for Engineer’s Reports ............................................................................. 3-25
Table 3-21 Summary Table of Mandatory/Optional ADO Procurement Review .................................... 3-26
Table 3-22 ADO Review Requirements for Bid Protest and Appeals ..................................................... 3-29
Table 3-23 Additional Actions for Bid Protests that are a Federal Concern ........................................... 3-30
Table 3-24 ADO Review Requirements for Bonding that Does Not Meet the Minimum
Requirements .................................................................................................................................. 3-31
Table 3-25 Procurement Rules for Limited Noncompetitive Proposal Situations ................................... 3-32
xiv
Table 3-26 ADO Review Requirements for Contracts Containing Ineligible or Non-AIP Funded
Work ................................................................................................................................................ 3-35
Table 3-27 Examples of Being in the Federal Government’s Best Interest ............................................ 3-36
Table 3-28 Examples Where the Number of Potential Bidders May be Reduced .................................. 3-36
Table 3-29 Unique Consultant Contract Methods ................................................................................... 3-37
Table 3-30 Typical Steps for an RSA Project with EMAS ....................................................................... 3-38
Table 3-31 Circumstances Requiring OIG Notification ........................................................................... 3-40
Table 3-32 Situations Where the ADO has the Option to Conduct a Pre-Award Review ...................... 3-41
Table 3-33 Sponsor Force Account Submittal Requirements................................................................. 3-43
Table 3-34 Sponsor Force Account Documentation Requirements ....................................................... 3-43
Table 3-35 Other Sponsor Force Account Requirements ....................................................................... 3-44
Table 3-36 ADO Requirements Regarding Suspension or Debarment .................................................. 3-46
Table 3-37 Resources to Determine if a Project Cost is Necessary and Allowable ............................... 3-47
Table 3-38 Five Basic Requirements to Determine a Cost is Allowable ................................................ 3-47
Table 3-39 Administrative Costs Examples and Requirements.............................................................. 3-48
Table 3-40 Requirements for Indirect Costs ........................................................................................... 3-50
Table 3-41 Allowability Examples for Architectural Treatments.............................................................. 3-51
Table 3-42 Drainage Proration Example................................................................................................. 3-53
Table 3-43 Criteria for Energy Efficiency Improvement Costs ................................................................ 3-54
Table 3-44 Examples of Engineering and Architectural Costs ............................................................... 3-54
Table 3-45 Allowability of Costs to Rebuild or Relocate Facility Impeding an AIP Development
Project ............................................................................................................................................. 3-56
Table 3-46 Examples of Allowability of Costs for Facilities Impeding an AIP Project............................. 3-59
Table 3-47 GIS Data Collection Cost Requirements .............................................................................. 3-62
Table 3-48 Common Allowable Land Costs and Associated Restrictions .............................................. 3-64
Table 3-49 Allowability of Costs for Facilities on AIP Acquired Land ..................................................... 3-66
Table 3-50 Requirements for Legal Fees and Settlement Costs ............................................................ 3-67
Table 3-51 Examples of Unallowable Costs Necessary to Carry Out a Project ..................................... 3-68
Table 3-52 Examples of Project Formulation Costs ............................................................................... 3-68
Table 3-53 Allowable SRM Costs ........................................................................................................... 3-70
Table 3-54 Reasons for an ADO to find a Primary Power Supply Extremely Unreliable ....................... 3-70
Table 3-55 Allowability Examples of Site Preparation for Ineligible Facilities ......................................... 3-71
Table 3-56 Spare Part Requirements ..................................................................................................... 3-72
Table 3-57 Rules for Sponsor Furnished Materials or Supplies ............................................................. 3-73
Table 3-58 Examples of Allowable Temporary Construction .................................................................. 3-74
Table 3-59 Utility Costs Proration Example ............................................................................................ 3-76
Table 3-60 Rules for Reimbursing Project Costs Prior to the Grant Execution Date ............................. 3-77
Table 3-61 Sponsor Assumption of Risk................................................................................................. 3-78
Table 3-62 Legislative Requirements that Must be Met for FAA to Consider Reimbursement
Based on Climate-Related Conditions ............................................................................................ 3-78
Table 3-63 Implementation Requirements that Must be Met for FAA to Consider Reimbursement
Table 3-64 Alternative Funding Requirements that Must be Met for FAA to Consider
Reimbursement Based on Climate-Related Conditions .................................................................. 3-80
Table 3-65 Request Requirements that Must be Met for FAA Consideration of Reimbursement
Table 3-66 APP-500 Acknowledgement Process for Requests for Reimbursement Based on
Climate-Related Conditions ............................................................................................................. 3-81
Table 3-67 Sponsor Requirements for Cost Reasonableness ............................................................... 3-82
Table 3-68 Documentation of ADO Cost Reasonableness Determinations ........................................... 3-84
Table 4-1 AIP Funds by Category, Type, and Calculation ........................................................................ 4-2
Table 4-2 Fiscal Year 2017 Final Funding Breakdown by Fund Type ...................................................... 4-7
Table 4-3 Airport Type Criteria and Potential Funding Types ................................................................... 4-8
Table 4-4 Airports that Can Use Each Fund Type .................................................................................. 4-14
Table 4-5 Project Restrictions by Fund Type .......................................................................................... 4-18
Table 4-6 Expiration of AIP Funds .......................................................................................................... 4-22
xv
Table 4-7 Federal Share by Airport Type (Including Exceptions) ........................................................... 4-23
Table 4-8 Federal Shares by Airport Classification in Public Land States ............................................. 4-27
Table 4-9 Requirements to Transfer Entitlement Funds between Airports ............................................. 4-29
Table 4-10 Summary of Tables Containing Requirements for using Donations for the Sponsor’s
Share ............................................................................................................................................... 4-31
Table 4-11 General Requirements for Offsetting the Sponsor Share of a Grant.................................... 4-31
Table 4-12 Value of Items Used to Offset the Sponsor Share................................................................ 4-33
Table 4-13 Process to Offset the Sponsor Share of a Grant .................................................................. 4-35
Table 4-14 Example Calculations for Offsetting the Sponsor Share of a Grant ..................................... 4-36
Table 4-15 Instances of Allowable Budget Augmentation ...................................................................... 4-39
Table 5-1 The Basic Steps in the Grant Process ...................................................................................... 5-1
Table 5-2 The Major Pre-Grant Actions .................................................................................................... 5-2
Table 5-3 Important Potential Projects for ADO/Sponsor Discussion ...................................................... 5-3
Table 5-4 Common Key Steps in the Grant Process ................................................................................ 5-4
Table 5-5 Sponsor Civil Rights Requirements .......................................................................................... 5-6
Table 5-6 Grant Application Contents ..................................................................................................... 5-10
Table 5-7 Grant Offer Package ............................................................................................................... 5-14
Table 5-8 Requirements for All Grant Agreement Types ........................................................................ 5-15
Table 5-9 Specific Requirements by Grant Agreement Type ................................................................. 5-15
Table 5-10 Examples of Grant Descriptions ........................................................................................... 5-18
Table 5-11 Summary of Sponsor Certifications ...................................................................................... 5-21
Table 5-12 Examples of Actions Specifically Excluded from Sponsor Certification ............................... 5-22
Table 5-13 Steps and Requirements for Sponsor Grant Acceptance .................................................... 5-23
Table 5-14 Types of Contract Changes .................................................................................................. 5-26
Table 5-15 Sponsor and ADO Requirements for Contract Changes ...................................................... 5-27
Table 5-16 Examples of Change Orders that Can and Cannot be Approved by the ADO for AIP
Participation ..................................................................................................................................... 5-28
Table 5-17 Examples of Changes to Professional Services Agreements that Can and Cannot be
Approved by the ADO for AIP Participation .................................................................................... 5-29
Table 5-18 Performance Report Requirements by Project Type ............................................................ 5-31
Table 5-19 Grant Payment Request Requirements and Limitations ...................................................... 5-32
Table 5-20 Conditions the Sponsor Must Meet for Advance Payments ................................................. 5-35
Table 5-21 Situations Where an ADO Would Reduce or Withhold a Sponsor Payment Request ......... 5-36
Table 5-22 Contract Retainage Limitations ............................................................................................. 5-37
Table 5-23 Examples of Improper Payments.......................................................................................... 5-38
Table 5-24 ADO Remediation Actions for Improper Payments .............................................................. 5-39
Table 5-25 Sponsor Remediation Actions for Improper Payments ........................................................ 5-39
Table 5-26 Criteria for an ADO to Amend a Grant .................................................................................. 5-41
Table 5-27 Grant Amendment Limits for Increases ................................................................................ 5-46
Table 5-28 Examples of Grant Amendments with Land Increases for a Nonprimary Airport ................. 5-48
Table 5-29 Appropriate Amendment Formats......................................................................................... 5-49
Table 5-30 Amendment Steps ................................................................................................................ 5-50
Table 5-31 Project Physical Completion Requirements ......................................................................... 5-52
Table 5-32 Grant Administration Closeout Requirements ...................................................................... 5-53
Table 5-33 Closeout Processing Steps ................................................................................................... 5-55
Table 5-34 Block Grant Closeout Requirements .................................................................................... 5-56
Table 5-35 Examples of Reasons for Grant Suspension or Termination ............................................... 5-57
Table 5-36 Examples of Documents that a Sponsor Must Retain .......................................................... 5-60
Table 5-37 Requirements for AIP Audits by Entity ................................................................................. 5-61
Table 5-38 Criteria for Disposing or Replacing AIP Funded Equipment ................................................ 5-62
Table 5-39 Order of Precedence for Applying Sale Proceeds of AIP Funded Land............................... 5-64
Table 6-1 LOI Funding Rules and Policy .................................................................................................. 6-1
Table 6-2 Three Overlapping Sets of Capital Data in the LOI Review ..................................................... 6-3
Figure 6-1 Three Overlapping Sets of Capital Data in the LOI Review .................................................... 6-4
Table 6-3 LOI Project Criteria by Airport Type .......................................................................................... 6-5
Table 6-4 LOI Approval/Disapproval Process ........................................................................................... 6-7
xvi
Table 6-5 Sponsor LOI Submission Requirements .................................................................................. 6-9

Table 6-6 Evaluation Criteria for LOI Requests ...................................................................................... 6-12
Table 6-7 LOI Offer Contents .................................................................................................................. 6-13
Table 6-8 History of the State Block Grant Program .............................................................................. 6-16
Table 6-9 State Block Grant Participants ................................................................................................ 6-17
Table 6-10 State Block Grant Application Information ............................................................................ 6-18
Table 6-11 State Block Grant Selection Criteria ..................................................................................... 6-19
Table 6-12 Criteria for an Airport to be in the State Block Grant Program ............................................. 6-20
Table 6-13 AIP Funding Transfer Rules for the State Block Grant Program .......................................... 6-21
Table 6-14 MAP Requirements ............................................................................................................... 6-25
Table 6-15 Examples of Projects That May Not Be Suitable for MAP Funding...................................... 6-28
Table 6-16 Innovative Finance Demonstration Program Legislative History .......................................... 6-29
Table 6-17 Innovative Finance Demonstration Program Rules .............................................................. 6-29
Table 6-18 VALE Legislative References ............................................................................................... 6-31
Table 6-19 Zero Emission Vehicle and Infrastructure Pilot Program Legislative References ................ 6-32
Table 6-20 Program to Increase the Energy Efficiency of Airport Power Sources Legislative
References ...................................................................................................................................... 6-33
Table 6-21 Rules for the Airport Development Rights Pilot Program ..................................................... 6-35
Table 6-22 Required Sponsor’s Attorney Certification Language .......................................................... 6-38
Table 6-23 Requirements for the Instrument Recording the Purchase of Airport Development
Rights .............................................................................................................................................. 6-38
Table A-1 Definition of Terms Used in This Handbook .............................................................................A-1
Table B-1 References and Web Links ......................................................................................................B-1
Table C-1 Examples of General Prohibited Projects/Costs for All Project Types .................................... C-1
Table C-2 Examples of Prohibited Projects/Costs for Construction ........................................................ C-6
Table C-3 Examples of Prohibited Projects/Costs for Equipment ......................................................... C-14
Table C-4 Examples of Prohibited Projects/Costs for Land ................................................................... C-18
Table C-5 Examples of Prohibited Projects/Costs for Noise Mitigation ................................................. C-19
Table C-6 Examples of Prohibited Projects/Costs for Planning or Environmental ................................ C-21
Table D-1 Miscellaneous Project Requirements ...................................................................................... D-1
Table E-1 Eligible Stand-Alone Planning Projects ....................................................................................E-1
Table E-2 Planning Project Requirements ................................................................................................E-4
Table F-1 New Airport Work Codes .......................................................................................................... F-1
Table F-2 New Airport Project Requirements ........................................................................................... F-1
Table G-1 Runway Types and Eligibility .................................................................................................. G-1
Table G-2 Pavement Condition Index Requirements for Airfield Pavement Projects ............................. G-2
Table G-3 Distinctions between Construct, Extend, Widen, Strengthen, Rehabilitate, Shift, and
Remove ............................................................................................................................................ G-3
Table G-4 Runway Work Codes .............................................................................................................. G-3
Table G-5 Runway Project Requirements ............................................................................................... G-4
Table H-1. Pavement Condition Index Requirements for Airfield Pavement Projects .............................. H-2
Table H-2 Distinctions between Construct, Extend, Widen, Strengthen, Rehabilitate, Shift, and
Remove ............................................................................................................................................ H-3
Table H-3 Taxiway Work Codes .............................................................................................................. H-3
Table H-4 Taxiway Project Requirements ............................................................................................... H-4
Table I-1 Pavement Condition Index Requirements for Airfield Pavement Projects ................................. I-1
Table I-2 Distinctions between Construct, Expand, Strengthen, and Rehabilitate .................................... I-2
Table I-3 Apron Work Codes...................................................................................................................... I-2
Table I-4 Apron Project Requirements ....................................................................................................... I-3
Table J-1 Eligibility of Stand Alone-Projects for New and Faded Marking ............................................... J-1
Table J-2 Eligibility of Stand-Alone Projects for Sign Panel Replacement ............................................... J-2
Table J-3 Airfield Marking, Signage, and Lighting Work Codes ............................................................... J-3
Table J-4 Airfield Signage and Lighting Project Requirements ................................................................ J-4
Table K-1 NAVAID and Weather Reporting Equipment Work Codes ......................................................K-3
Table K-2 NAVAID and Weather Reporting Equipment Project Requirements........................................K-3
Table L-1 Requirements for Off-Airport Storage of ARFF Vehicles .......................................................... L-1
xvii
Table L-2 Safety and Security Equipment Project Requirements............................................................. L-3

Table M-1 Other Equipment Project Requirements ................................................................................. M-1
Table N-1 Public-Use Requirements for Terminal Buildings ................................................................... N-1
Table N-2 Movement of Passengers and Baggage Requirements ......................................................... N-2
Table N-3 Revenue Producing Eligibility and Conditions for Terminal Buildings .................................... N-3
Table N-4 Terminal Eligibility Proration Calculation ................................................................................. N-4
Table N-5 Typical Eligible Areas/Equipment within a Terminal Building ................................................. N-5
Table N-6 Additional Eligible Terminal Areas/Equipment at Nonhub Primary and Nonprimary
Airports ............................................................................................................................................. N-7
Table N-7 Terminal Building Funding Rules by Airport Type................................................................... N-8
Table N-8 Terminal Work Codes ........................................................................................................... N-10
Table N-9 Terminal Project Requirements............................................................................................. N-11
Table O-1 Allowable Costs for Areas in an ARFF Building at 14 CFR part 139 Certificated
Airports ............................................................................................................................................. O-1
Table O-2 Distinctions between Construct, Expand, Modify, Improve, and Rehabilitate ........................ O-2
Table O-3 Other Building Project Requirements (Other than Terminals) ................................................ O-3
Table P-1 Distinctions between Construct, Expand, Modify, Improve, and Rehabilitate ..........................P-1
Table P-2 Road and Surface Transportation Work Codes .......................................................................P-1
Table P-3 Roads and Surface Transportation ..........................................................................................P-2
Table Q-1 Good Title Requirements for Land and Easement Acquisition ............................................... Q-2
Table Q-2 Types of Land Interests .......................................................................................................... Q-3
Table Q-3 Land Work Codes ................................................................................................................... Q-4
Table Q-4 Land Project Requirements .................................................................................................... Q-4
Table R-1 General Eligibility Requirements for Noise Compatibility Projects .......................................... R-1
Table R-2 Block Rounding Requirements................................................................................................ R-4
Table R-3 Requirements for Neighborhood Equity .................................................................................. R-5
Table R-4 Pre- and Post-Testing Criteria for Noise Insulation Projects .................................................. R-6
Table R-5 Noise Compatibility Planning/Project Work Codes ................................................................. R-8
Table R-6 Noise Compatibility Planning/Project Requirements............................................................... R-8
Table S-1 Environmental Planning/Mitigation Project Requirements .......................................................S-1
Table T-1 Distinctions between Construct, Expand, Modify, Improve, and Rehabilitate .......................... T-1
Table T-2 Military Airport Program Project Requirements (for typical projects) ....................................... T-2
Table U-1 Sponsor Requirements Regarding Suspension or Debarment............................................... U-2
Table U-2 AIP Handbook Clarification of 2 CFR § 200.317 - Procurements by States ........................... U-3
Table U-3 AIP Handbook Clarification of 2 CFR § 200.318 - General Procurement Standards ............. U-6
Table U-4 AIP Handbook Clarification of 2 CFR § 200.319 - Competition .............................................. U-9
Table U-5 AIP Handbook Clarification of 2 CFR § 200.320 - Methods of Procurement to be
Followed ......................................................................................................................................... U-10
Table U-6 AIP Handbook Clarification of 2 CFR § 200.320(a) - Procurement by Micro-Purchases ..... U-12
Table U-7 AIP Handbook Clarification of 2 CFR § 200.320(b) - Procurement by Small Purchase
Procedures ..................................................................................................................................... U-12
Table U-8 AIP Handbook Clarification of 2 CFR § 200.320(c) - Procurement by Sealed Bids
(Formal Advertising) ....................................................................................................................... U-14
Table U-9 AIP Handbook Clarification of 2 CFR § 200.320(d) - Procurement by Competitive
Proposals ........................................................................................................................................ U-17
Table U-10 AIP Handbook Clarification of 2 CFR § 200.320(f) - Procurement by Noncompetitive
Proposals 2 CFR § 200.320(f) - Procurement by Noncompetitive Proposals ................................ U-22
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 ............................... U-25
Table U-12 AIP Handbook Clarification of 2 CFR § 200.322 - Procurement of Recovered
Materials ......................................................................................................................................... U-26
Table U-13 AIP Handbook Clarification of 2 CFR § 200.323 - Contract Cost and Price ....................... U-27
Table U-14 AIP Handbook Clarification of 2 CFR § 200.324 - Federal Awarding Agency or Pass-
Through Entity Review ................................................................................................................... U-30
Table U-15 AIP Handbook Clarification of 2 CFR § 200.325 - Bonding requirements .......................... U-31
xviii
Table U-16 AIP Handbook Clarification of 2 CFR § 200.326 - Contract Provisions

2 CFR § 200.326 - Contract provisions .......................................................................................... U-34
Table V-1 Revenue Sources for the Airport and Airway Trust Fund ........................................................V-1
Table W-1 Airports Falling Under the Competition Plan Requirements ..................................................W-1
Table W-2 Completion Plan and Update Requirements ..........................................................................W-2
Table W-3 Required Initial Competition Plan Content .............................................................................W-3
Table W-4 Required Competition Plan Update Content ..........................................................................W-7
Table X-1 General Sponsor Buy American Requirements .......................................................................X-1
Table X-2 Criteria by Buy American Waiver Type ....................................................................................X-2
Table X-3 Buy American Specific Definitions............................................................................................X-4
Table Y-1 Federally-Controlled Acreage in Public Land States................................................................Y-1
Table Y-2 Federal Shares by Airport Classification in Public-Land States Between 1970 and
1980 ...................................................................................................................................................Y-3
Table Y-3 Yes/No Test for Part ‘b’ Calculation .........................................................................................Y-4
Table Y-4 Part ‘b’ Calculation Results (see Table Y-5 for columns marked *) .........................................Y-4
Table Y-5 Column Notes for Table Y-4 .....................................................................................................Y-8
Table Y-6 Part ‘c’ Calculation ..................................................................................................................Y-10
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xx
Chapter 1. What do I need to know about this order?
1-1. This Order Is Called the Handbook.
Throughout this document, we refer to this order (FAA Order 5300-38D, Change 1, Airport
Improvement Program Handbook) as the Handbook.
1-2. Purpose of the Handbook.
This Handbook provides guidance and sets forth policies and procedures for the Airport
Improvement Program (AIP).
1-3. Handbook Audience.
All FAA organizations that work with the Airport Improvement Program will use this Handbook,
in particular, the FAA Office of Airports (ARP) headquarters and field offices. This Handbook
will also be publicly available to airports, consultants, state agencies and others associated with
the Airport Improvement Program.
1-4. Handbook Location on the Internet.
You can find this Handbook on the FAA Office of Airports website (see Appendix B for link).
1-5. Publications this Handbook Cancels.
a. FAA Order 5100.38C, AIP Handbook, dated June 28, 2005.
b. FAA Order 5100.20C, Programming Control and Reporting Procedures Grant-In-Aid

Program, dated December 7, 1999.
1-6. Relevant AIP Legislation (Referred to as 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. This legislation is shown in Table 1-1. 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).
14 CFR part 151 (Federal Aid to Airports) and 14 CFR part 152 (Airport Aid Program) were
regulations for previous programs that existed prior to AIP and do not apply to AIP.
1-1
Table 1-1 AIP Related Legislation
The USC Which Which Which That Under

contains… contains… contains… contains… Authorizes… Sections (§)…
Title 49 Subtitle VII Part B Chapter 471 The Airport 49 USC § 47101
(Transportation) (Aviation (Airport (Airport Improvement through
Programs) Development Development) Program 49 USC § 47175
and Noise)
Most, but not all,
sections within this
range apply.
Title 49 Subtitle VII Part B Chapter 475 Noise 49 USC § 47501

(Transportation) (Aviation (Airport (Noise) compatibility through
Programs) Development planning and 49 USC § 47507
and Noise) projects
Most, but not all,
sections within this
range apply.
Title 49 Subtitle VII Part C Chapter 481 The FAA to 49 USC § 48103
(Transportation) (Aviation (Financing) (Airport and have contract
Programs) Airway Trust authority to
Fund issue grants
Authorizations).
Title 49 Subtitle VII Part A (Air Chapter 445 The FAA to 49 USC § 44502(e)
(Transportation) (Aviation Commerce (Facilities, install an
Programs) and Safety) Personnel, and instrument
Research) landing system
with AIP funds
that can be
turned over to
the FAA for
operation and
maintenance
1-7. AIP Transition to 2 CFR part 200.
2 CFR part 200 became effective for AIP on December 19, 2014. This version of the Handbook
contains the correct 2 CFR part 200 references and text. 2 CFR part 200 includes the
requirements formerly contained in OMB Circular A-102 (administrative); OMB Circular A-87
(cost principles); and OMB Circulars A-89 and A-133 (audit requirements) for Federal awards.
Available crosswalks between 2 CFR part 200 and these OMB circulars are listed in Table 1-2
(see Appendix B for link to the website containing these crosswalks). 2 CFR part 200 also
includes the requirements formerly contained in 49 CFR § 18.36.
There are some differences between 2 CFR part 200 and AIP policy. On occasion, the AIP
statute contains certain requirements (or lack thereof) which do not permit application of a part
of 2 CFR part 200. Wherever this occurs, it will be noted in this Handbook. Some of the
1-2
differences occur where 2 CFR part 200 is addressing grant program administration. These
differences are due principally because of the types of grant programs that are covered by
2 CFR part 200. Examples are included in Table 1-3. Some of the differences between AIP
policy and 2 CFR part 200 are listed in Table 1-4.
Table 1-2 Crosswalk between 2 CFR part 200 and Previous OMB Circulars (see
Appendix B for link to the website containing these crosswalks)
The following crosswalk… Addresses the following AIP related policy…
a. Uniform Guidance Crosswalk from Summary crosswalk for all OMB circulars
Predominant Source in Existing Guidance (including A-89 which does not have detailed
crosswalks)
b. Uniform Guidance Crosswalk to Predominant Summary crosswalk for all OMB circulars in
Source in Existing Guidance reverse order from above (including A-89 which
does not have detailed crosswalks)
c. Uniform Guidance Cost Principles Text Includes a detailed crosswalk for OMB Circular
Comparison A-87
d. Uniform Guidance Audit Requirements Text Includes a detailed crosswalk for OMB Circular
Comparison A-133
e. Uniform Guidance Administrative Includes a detailed crosswalk for OMB Circular

Requirements Text Comparison A-102
Table 1-3 Examples of Differences Where 2 CFR part 200 is Addressing Grant
Program Administration
Examples include…
a. The Federal Highway Administration (FHWA) issues grants for a state’s grant programs. The state
Departments of Transportation then issue subgrants and administer the FHWA grant funding (this is
similar to the FAA AIP Block Grant Program).
b. AIP is a project grant program. AIP grants are written for a specific grant project. AIP grants do not
allow a sponsor to use AIP to fund administration of the grant program, or to pay for sponsor
overhead costs that are not specifically and directly related to a grant.
1-3
Table 1-4 Differences Between AIP Policy and 2 CFR part 200
AIP Policy (which 2 CFR part 200 AIP Policy

governs)
Costs to recover 2 CFR § 200.428 considers costs 49 USC § 47110(b)(1) indicates all
improper payments are incurred recovering improper costs paid with AIP funds must be
not allowable. payments to be allowable costs. necessary to carry out the project. It is
Costs to recover improper payments the sponsor’s responsibility to recover
are part of grant program improper payments without using AIP
administration. AIP does not fund funding to carry out the work effort.
program administration. However,
some Federal grant programs are
allowed to use grant funds for
administration. These agencies do
not have any other source of local
funds, and must use grant funds to
recover improper payments.
1-8. Format for References to the Act.
Specific references to sections (§) of the Act are provided in the form of 49 USC § XXXXX. It
is useful to note that the first three numbers in the section reference are always the chapter
number.
1-9. Broad Objective of the Act.
The Act’s broad objective is to help in developing a nationwide system of public-use airports
that meets the current needs and the projected growth of civil aviation.
1-10. The Act is a Permissive Statute.
The key nature of the Act is that it is a permissive statute, rather than a mandatory or prohibitory
one. Put more simply, if the AIP statute does not provide the authority to fund an action or an
item, that action or item cannot be funded under AIP.
A permissive statute does not contain a comprehensive list of mandatory or prohibited actions.
Rather, a permissive statute gives permission to do certain things. As such, an airport is not
required to construct some or all of the items that are allowed under AIP, but may do so provided
that the FAA determines that the items are justified at that airport.
This is not a concept exclusive to AIP. This is a rule that stems from Federal appropriations law,
which applies to Federal agencies. The Government Accountability Office’s (GAO) Principles
of Federal Appropriations Law, Third Edition (commonly referred to as the Red Book) states
that “A Federal agency is a creature of law and can function only to the extent authorized by
law” (Atlantic City Electric Co. v. Federal Energy Regulatory Commission, 295 F.3d 1, (D.C.
Cir. 2002)). The Supreme Court (United States v. MacCollom, 426 U.S. 317, 321 (1976)) has
upheld this notion by stating “[T]he established rule is that the expenditure of public funds is
1-4
proper only when authorized by Congress, not that public funds may be expended unless
prohibited by Congress.”
1-11. Aviation Priorities in the Act.
49 USC § 47101 lists the policy directives and aviation priorities of the United States. These
priorities include:
a. Providing a safe and secure airport and airway system.
b. Minimizing airport noise impacts on nearby communities.
c. Developing reliever airports, cargo hub airports, and intermodalism.
d. Protecting natural resources.
e. Reducing aircraft delays.
f. Converting former military air bases to civil use or improving joint-use airports.
g. Carrying out various other projects to ensure a safe and efficient airport system.
1-12. List of Handbook References (with Links to the Associated Websites).
Appendix B contains a list of the documents referenced in this Handbook. Links for these
references are also provided in the Appendix B (they are not given again in the Handbook) and
were current on the Handbook publication date. Each reference is also followed by a brief
summary of what the document contains and how it relates to AIP. The versions of these
reference documents are not given (use the current version of the document).
1-13. General Principles of this Handbook.
The contents of this Handbook are based on principles below:
a. The Use of the AIP Handbook is Mandatory. The Handbook is the published policy for
AIP. Except where options are specifically noted or where non-mandatory language is used, the
procedures and requirements are mandatory. The Director of the Office of Airport Planning and
Programming (APP-1) must approve any deviation from the procedures or requirements. All
requests for deviations must be sent to APP-1 for processing.
b. Use of the Term FAA Policy. The term FAA policy denotes policy that the FAA Office of
Airports has established for AIP where there is not a direct statutory reference in the Act .
c. Regional Office Discretion. Unless set procedures are necessary to achieve national
standardization in grant program administration, regional offices may adjust procedures that are
not dictated by legislation, rule, this Handbook, other published Federal policy, or reasons
beyond the FAA’s control.
1-5
d. Reference to Other Guidance. The Handbook summarizes pertinent information from

other guidance material when appropriate to relieve users from needing to reference another
document. The source documents, rather than this Handbook, are the authoritative technical
sources; however, this Handbook is the authoritative source on AIP, including eligibility.
1-14. Warning on Taking Handbook Text Out of Context.
There may be paragraphs in this Handbook that appear to conflict with the general requirements
for eligibility, justification, or program administration. This is usually due to legislative
exceptions for a specific project or location. These exceptions do not amend, change, or modify
the general guidance and requirements. These exceptions do not apply to other situations and
must not be taken out of context.
1-15. Use of the Term Airports District Office (ADO).
For the purposes of this Handbook, we are using ADO to reference the FAA Office of Airports
office that directly works with the sponsor. 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.
1-16. Use of the Phrase ADO has the option.
For the purposes of this Handbook, the phrase, the ADO has the option indicates situations where
there is a choice to be made and that the ADO will make the choice.
1-17. FAA Office of Airports Positions/Divisions/Branches Referenced in this Handbook.
A list of the key positions within the FAA Office of Airports is contained in Table 1-5 and a list
of the divisions and branches within the FAA Office of Airports is contained in Table 1-6. The
routing codes for many of these positions, divisions, and branches are used throughout this
Handbook.
Table 1-5 FAA Office of Airports Key Positions
Routing Code Position Name
ARP-1 Associate Administrator
AAS-1 Director, Airport Safety and Standards
APP-1 Director, Airport Planning and Programming
ACO-1 Director, Airport Compliance and Management Analysis
AXX-600 Regional Division Manager (AXX meaning the regional designation of AAL, AEA,
ACE, AGL, ANE, ANM, ASO, ASW, or AWP)
1-6
Table 1-6 FAA Office of Airports Divisions and Branches
Routing Code Organization Name
AAS-100 Airport Engineering Division
AAS-300 Airports Safety and Operations Division
ACO-100 Airport Compliance Division
APP-400 Airport Planning and Environmental Division
APP -500 Airports Financial Assistance Division
APP-510 Financial Analysis and Passenger Facility Charge Branch
APP-520 Airport Improvement Program Branch
1-18. Location of Handbook Definitions.
Definitions are an important part of this Handbook. As with any large program, there are many
words and phrases that have specific, defined meanings within the program. Appendix A
contains the definitions of terms used in this Handbook.
1-19. Process for Handbook Changes.
APP-500 will continue to issue program guidance letters (PGLs) for short-term policy guidance
between Handbook changes. In addition, APP-500 has the option to issue official numbered
changes to the Handbook. The ADOs have the option to forward these PGLs to block grant state
sponsors or others impacted by the PGLs.
1-20. Supplemental Guidance and Standard Operating Procedures.
The FAA Office of Airports has the option of issuing additional guidance, such as FAA Office of
Airports Standard Operating Procedures (see Appendix B for link) as well as other formats, to
supplement this Handbook. The ADOs have the option to forward the additional guidance to
block grant state sponsors or others impacted by the guidance.
1-21. New Handbook Layout and Format.
The format of this version of the Handbook is significantly altered from the FAA Order
5100.38C, AIP Handbook.
a. Chapters. The chapters are reduced and are organized in question format as shown in
Table 1-7. This allows the reader to more easily identify the chapter they need to reference.
1-7
b. Appendices. Detailed information and long lists were moved to the appendices to
simplify the main body of the Handbook. For instance, while Chapter 3 provides the general
requirements that each project must meet in order to be considered for AIP funding, the project
specific requirements have been split out into appendices and are in tabular format for easier
reference. Where a paragraph from an appendix is referenced, the reference will be in the form,
Paragraph X-##. A list of the appendices is provided in Table 1-8.
Table 1-7 Handbook Chapters
Chapters in this handbook include…
Chapter 1. What do I need to know about this order?

Chapter 2. Who can get a grant?
Chapter 3. What projects can be funded?
Chapter 4. What AIP funding is available?
Chapter 5. How does the grant process work?
Chapter 6. What special AIP programs are available?
1-8
Table 1-8 Handbook Appendices
Appendices in this handbook include…
Appendix A. Definitions of Terms Used in this Handbook

Appendix B. References and Web Links
Appendix C. Prohibited Projects and Unallowable Costs
Appendix D. Miscellaneous Projects
Appendix E. Planning Projects
Appendix F. New Airport Projects
Appendix G. Runway Projects
Appendix H. Taxiway Projects
Appendix I. Apron Projects
Appendix J. Airfield Marking, Signage, and Lighting Projects
Appendix K. Navigational Aid (NAVAID) and Weather Reporting Equipment Projects
Appendix L. Safety and Security Equipment Projects
Appendix M. Other Equipment Projects
Appendix N. Terminal Building Projects
Appendix O. Other Building Projects
Appendix P. Roads and Surface Transportation Projects
Appendix Q. Land Projects
Appendix R. Noise Compatibility Planning/Projects
Appendix S. Environmental Planning/Mitigation Projects
Appendix T. Military Airport Program Projects
Appendix U. Sponsor Procurement Requirements (Including 2 CFR §§ 200.317-200.326 (formerly
49 CFR § 18.36))
Appendix V. Revenue Sources for the Airport and Airway Trust Fund
Appendix W. Competition Plans
Appendix X. Buy American Guidance
Appendix Y. Federal Share at Public Land State Airports
Appendix Z. Establishment and Category Upgrade Policy for Instrument Landing Systems (ILS)
1-9
1-10
Chapter 2. Who can get a grant?
2-1. Grant Recipients are Referred to as Sponsors.
A recipient of an AIP grant is normally called a sponsor.
2-2. Type of Sponsors.
For AIP purposes, sponsors are broken down into the specific types shown in Table 2-1. This
table also lists each of the entities that may qualify under each sponsor type.
Table 2-1 Types of Sponsors
For the following type of Only the following entities may qualify…
sponsor…
a. Airport sponsors Public agency owning (or leasing from another government entity)
a public-use airport. 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 are all considered public
agencies.
Private entity owning a public-use airport.
State acting as a sponsor for one or more specific airports in the
state.
Indian tribe or pueblo owning or leasing a public-use airport.
The Secretary of the Interior, during fiscal years 2012-2018 for
Midway Island Airport per Section 186(d) of the Vision 100 –
Century of Aviation Reauthorization Act (Public Law 108-176) as
amended by Section 102 of Division M, Title I of the Consolidated
Appropriations Act, 2018 (Public Law 115-141).
The Republic of the Marshall Islands, Federated States of
Micronesia, and Republic of Palau (or political subdivision) during
fiscal years 2012-2018 (per 49 USC § 47115(j)).
b. Sponsors that are not currently Public agency not owning or leasing a public-use airport.
airport owners (in the planning
stages of acquiring or
constructing the airport)
c. Sponsors that are not currently Public agency not owning or leasing a public-use airport.
airport owners (after the
planning is complete and before
the airport is open)
d. Planning agency sponsors Metropolitan planning agency.

State planning agency.
Council of governments.
2-1
Table 2-1 Types of Sponsors
For the following type of Only the following entities may qualify…
sponsor…
e. Noise compatibility project Public agency not owning or leasing a public-use airport.
sponsors that are not airport
owners
f. State block grant sponsor State approved by the FAA to be in the State Block Grant
Program.
g. Sponsors for compatible land State or local government around Medium or Large Hub Airports
use planning or compatible land (if the airport has not submitted a Noise Compatibility Program to
use projects per the FAA or updated the Noise Compatibility Program within the
49 USC § 47141 past ten years).
h. Sponsors that are acquiring State or a political subdivision of a state (such as a city,
airport development rights from municipality, or state agency) in the same state as the airport.
a privately-owned public-use
airport under the pilot program
in 49 USC § 47138(a)
i. Sponsors designated under Federal agency owning an FAA designated safety critical airport.
49 USC § 47118(h)
2-3. Type of Projects Each Sponsor Type Can Receive in a Grant.
For each sponsor type, Table 2-2 lists the entities that qualify for that sponsor type and the types
of projects they may receive in a grant.
2-2
Table 2-2 Types of Projects that May be Included in a Grant (by Sponsor Type)
For the following type of Only the following entities may And may only receive grants
sponsor… qualify… for the following types of
projects…
a. Airport sponsors Public agency owning (or leasing from Airport master planning
another government entity) a public-
Airport development
use airport. A state; a political
subdivision of a state (such as a city, Noise compatibility planning
municipality, or state agency); a tax-
supported organization; or an Indian Noise compatibility projects
tribe or pueblo are all considered When a state is acting as a
public agencies. sponsor for more than one airport
within the state, this is often
Private entity owning a public-use
referred to as a various locations
airport.
grant.
State acting as a sponsor for one or
Note: Per Public Law 108-176,
more specific airports in the state.
the Secretary of the Interior may
Indian tribe or pueblo owning or only receive Airport Development
leasing a public-use airport. grants for Midway Island.
The Secretary of the Interior, during
fiscal years 2012-2018 for Midway
Island Airport per Section 186(d) of
the Vision 100 – Century of Aviation
Reauthorization Act (Public Law 108-
176) as amended by Section 102 of
Division M, Title I of the Consolidated
Appropriations Act, 2018 (Public Law
115-141).
The Republic of the Marshall Islands,
Federated States of Micronesia, and
Republic of Palau (or political
subdivision) during fiscal years 2012-
2018, per 49 USC § 47115(j).
b. Sponsors that are not Public agency not owning or leasing a Planning grants associated with
currently airport owners public-use airport. acquiring or establishing a public-
(in the planning stages use airport
of acquiring or
constructing the airport)
c. Sponsors that are not Public agency not owning or leasing a Acquisition of existing airports
currently airport owners public-use airport.
Acquisition of land in anticipation
(after the planning is
of constructing a new airport
complete and before the
airport is open) Initial airport development
d. Planning agency Metropolitan planning agency. System planning

sponsors
Council of governments.
2-3
projects…
e. Noise compatibility Public agency not owning or leasing a Noise compatibility planning
project sponsors that public-use airport.
Noise compatibility projects
are not airport owners
f. State block grant State approved by the FAA to be in A state block grant for funds to be
sponsor the State Block Grant Program. issued in subgrants to airports in
the State Block Grant Program
for:
Airport master planning
Airport development
Noise compatibility planning
Noise compatibility projects
g. Sponsors for compatible State or local government around Compatible land use planning
land use planning or Medium or Large Hub Airports (if the and compatible land use projects
compatible land use airport has not submitted a Noise
projects per Compatibility Program to the FAA or
49 USC § 47141 updated the Noise Compatibility
Program within the past ten years).
h. Sponsors that are State or a political subdivision of a Acquisition of airport

acquiring airport state (such as a city, municipality, or development rights
development rights from state agency) in the same state as the
a privately-owned airport.
public-use airport under
the pilot program in
49 USC § 47138(a)
2-4
projects…
i. Sponsors designated Federal agency owning an FAA A project to preserve or enhance

under designated safety critical airport. minimum airfield infrastructure if
49 USC § 47118(h) the project meets all of the
following criteria:
(1) The project is necessary to
meet the minimum safety
and emergency operational
requirements established
under 14 CFR part 139.
(2) 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.
2-4. Grant Assurances – Definition and Which Ones to Use.
When airport owners or sponsors, planning agencies, or other organizations accept AIP funds,
they must agree to certain obligations. These obligations are called grant assurances. The grant
assurances require the recipients to maintain and operate their facilities safely and efficiently and
in accordance with specified conditions, while some grant assurances state conditions that must
occur before a grant is issued, or are specific to implementation of grant projects. These grant
assurances are either included in the grant or are specifically incorporated by reference. The
assurances are based on the legislation shown in Table 2-3.
2-5
Table 2-3 Statutory Basis for Grant Assurances
The following statutory Does the following…

reference…
49 USC § 47105 Gives the requirements for the FAA to approve a grant application.
49 USC § 47106 Permits the FAA to give a grant if the FAA is satisfied that a number of
specific project requirements will be met.
49 USC § 47107 Requires the FAA to obtain written assurances from sponsors concerning
current and future airport operations.
There are three sets of grant assurances (Airport Sponsors, Planning Agency Sponsors, and Non-
Airport Sponsors Undertaking Noise Compatibility Program Projects) for AIP funded projects
that are not issued through the State Block Grant Program. In addition, there are Aviation Block
Grant Program Assurances that apply only to State Block Grant Program sponsors (see
Paragraph 6-20). For each sponsor type, Table 2-4 lists the entities that qualify for that sponsor
type, the types of projects they may receive a grant for, and the set of grant assurances they must
follow.
The current versions of the assurances can be obtained from the FAA Office of Airports website
(see AIP Grant Assurances link in Appendix B).
Table 2-4 Applicable Grant Assurances (by Sponsor and Project Type)
For the following type Only the following And may only receive And must follow
of sponsor… entities may qualify… grants for the following this set of grant
types of projects… assurances…
a. Airport sponsors Public agency owning (or Airport master planning Airport Sponsors
leasing from another
Airport development
government entity) a
public-use airport. A state; Noise compatibility
a political subdivision of a planning
state (such as a city,
municipality, or state Noise compatibility
agency); a tax-supported projects
organization: or an Indian Note: When a state is
tribe or pueblo are all acting as a sponsor for
considered public more than one airport
agencies. within the state, this is
often referred to as a
Private entity owning a
various locations grant.
public-use airport.
State acting as a sponsor
for one or more specific
airports in the state.
2-6
Indian tribe or pueblo
owning or leasing a public-
use airport.
The Secretary of the
Interior, during fiscal years
2012-2018 for Midway
Island Airport per Section
186(d) of the Vision 100 –
Century of Aviation
Reauthorization Act (Public
Law 108-176) as amended
by Section 102 of Division
M, Title I of the
Consolidated
Appropriations Act, 2018
(Public Law 115-141).
The Republic of the
Marshall Islands,
Federated States of
Micronesia, and Republic
of Palau (or political
subdivision) during fiscal
years 2012-2018 per
49 USC § 47115(j).
b. Sponsors that are Public agency not owning Planning grants associated Planning Agency
not currently airport or leasing a public-use with acquiring or Sponsors
owners (in the airport. establishing a public-use
planning stages of airport
acquiring or
constructing the
airport)
c. Sponsors that are Public agency not owning Acquisition of existing Airport Sponsors
not currently airport or leasing a public-use airports
owners (after the airport.
Acquisition of land in
planning is
anticipation of constructing
complete and
a new airport
before the airport is
open) Initial airport development
d. Planning agency Metropolitan planning System planning Planning Agency

sponsors agency. Sponsors
2-7
e. Noise compatibility Public agency not owning Noise compatibility Non-Airport

project sponsors or leasing a public-use planning Sponsors
that are not airport airport. Undertaking Noise
Noise compatibility
owners Compatibility
projects
Program Projects
f. State Block Grant State approved by the FAA Planning Aviation Block
Program sponsor to be in the State Block Grant Program
Airport development
Grant Program.
Noise compatibility See Paragraph 6-
planning 20 to see how
these relate to
Noise compatibility subgrant
projects assurance
obligations.
g. Sponsors for State or local government Compatible land use Non-Airport

compatible land use around Medium or Large planning and compatible Sponsors
planning or Hub Airports (if the airport land use projects Undertaking Noise
compatible land use has not submitted a Noise Compatibility
projects per Compatibility Program to Program Projects
49 USC § 47141 the FAA or updated the
Noise Compatibility
Program within the past ten
years).
h. Sponsors that are State or a political Acquisition of airport None (per FAA
acquiring airport subdivision of a state (such development rights policy)
development rights as a city, municipality, or
from a privately- state agency) in the same
owned public-use state as the airport.
airport under the
pilot program in
49 USC § 47138(a)
2-8
i. Sponsors Federal agency owning an A project to preserve or None.

designated under FAA designated safety enhance minimum airfield
49 USC § 47118(h)
49 USC § 47118(h) critical airport. infrastructure if the project
specifically
meets all of the following
exempts these
criteria:
sponsors from
(1) The project is normal AIP
necessary to meet the requirements.
minimum safety and
emergency operational
requirements
established under
14 CFR part 139.
(2) 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, or
(b) Locations where
there is a
demonstrable lack
of diversionary
airports within the
distance or flight-
time required by
regulations
governing
transoceanic
flights.
2-5. Grant Assurances – Duration and Applicability.
The duration and applicability for each set of grant assurances (Airport Sponsor, Planning
Agency Sponsor, Non-Airport Sponsors Undertaking Noise Compatibility Program Projects, and
Aviation Block Grant Program) are listed in Table 2-5, Table 2-6, Table 2-7, and Table 2-8,
respectively. Note that the grant assurance numbers are different between these four sets of grant
assurances.
2-9
Table 2-5 Duration and Applicability of Grant Assurances (Airport Sponsors)
Assurances that… Include (by assurance # if applicable)…
a. Must be met #2 Responsibility and Authority of the Sponsor

before a grant is
#3 Sponsor Fund Availability
offered
#4 Good Title
#6 Consistency with Local Plans
#7 Consideration of Local Interest
#8 Consultation with Users
#9 Public Hearings
#12 Terminal Development Prerequisites
b. Apply until the #1 General Federal Requirements (except for 49 CFR part 23)
grant is closed
#10 Air and Water Quality Standards
#14 Minimum Wage Rates
#15 Veteran’s Preference
#16 Conformity to Plans and Specifications
#17 Construction Inspection and Approval
#18 Planning Projects
#32 Engineering and Design Services
#33 Foreign Market Restrictions
#34 Policies, Standards, and Specifications
#35 Relocation and Real Property Acquisition
c. Apply for three #13 Accounting System, Audit, and Record Keeping Requirements
years after the
#26 Reports and Inspections
grant is closed
2-10
Table 2-5 Duration and Applicability of Grant Assurances (Airport Sponsors)
d. Apply for the #5 Preserving Rights and Powers

useful life of the
#11 Pavement Preventive Maintenance (This applies to all of the airfield
project (not to
pavement on the airport, not just the specific pavement in the grant.)
exceed 20
years from the #19 Operations and Maintenance
grant
acceptance #20 Hazard Removal and Mitigation
date) except in #21 Compatible Land Use
the case of a
land acquisition #22 Economic Nondiscrimination
grant, for which #24 Fee and Rental Structure
the useful life is
indefinite and #27 Use by Government Aircraft
the assurance #28 Land for Federal Facilities
obligations do
not expire. #29 Airport Layout Plan
#36 Access by Intercity Buses
#37 Disadvantaged Business Enterprises (See 49 CFR parts 23 and 26, since
certain program requirements may extend the obligation beyond the 20 year
period, while the DBE requirements for the project apply until the project is
closed.)
#38 Hangar Construction
#39 Competitive Access
e. Last for as long #23 Exclusive Rights

as the airport is
#25 Airport Revenue
owned and
operated as an #30 Civil Rights
airport
#31 Disposal of Land
Table 2-6 Duration and Applicability of Grant Assurances (Planning Agency

Sponsors)

before a grant is
offered
b. Apply until the #1 General Federal Requirements (except for 49 CFR part 23)
grant is closed
#4 Preserving Rights and Powers
2-11
Table 2-6 Duration and Applicability of Grant Assurances (Planning Agency

Sponsors)

#7 Planning Projects
#9 Civil Rights
#12 Policies, Standards, and Specifications
#13 Disadvantaged Business Enterprises (See 49 CFR parts 23 and 26, since
certain program requirements may extend the obligation beyond the 20 year
period)
years after the
grant is closed
The three year duration for record keeping is a requirement of The Single Audit
Act of 1984, Public Law 98-502 (as amended in 1996, Public Law 104-156, as
amended and recodified at 31 USC § 7501 et seq.) and 2 CFR § 200.333-
200.337.
Table 2-7 Duration and Applicability of Grant Assurances (Non-Airport Sponsors

Undertaking Noise Compatibility Program Projects)

before a grant is
offered
#4 Good Title
#7 Consideration of Local Interest
b. Apply until the #1 General Federal Requirements

grant is closed
#9 Minimum Wage Rates
#10 Veteran’s Preference
#11 Conformity to Plans and Specifications
#12 Construction Inspection and Approval
#21 Relocation and Real Property Acquisition
2-12
Table 2-7 Duration and Applicability of Grant Assurances (Non-Airport Sponsors

Undertaking Noise Compatibility Program Projects)
years after the
grant is closed
d. Apply for the #5 Preserving Rights and Powers

useful life of the
#13 Operations and Maintenance
project (not to
exceed 20 #14 Hazard Prevention
years from the
grant issuance #15 Compatible Land Use
date) except in #22 Disadvantaged Business Enterprises (See 49 CFR parts 23 and 26, since
the case of a certain program requirements may extend the obligation beyond the 20 year
land acquisition period), while the DBE requirements for the project apply until the project is
grant, for which closed.
the useful life is
indefinite and
the assurance
obligations do
not expire.
e. Last for as long #17 Civil Rights

as the airport is
#20 Disposal of Land
owned and
operated as an
airport
Table 2-8. Duration and Applicability of Grant Assurances (Aviation Block Grant
Program)*
a. Must be met #7 State Resources

before a grant is
offered
b. Apply until the #1 Incorporated in Grant Agreement

grant is closed
#2 General Federal Requirements
#6 Environmental Responsibilities
c. Apply for three #3 Program Reporting

years after the
grant is closed
2-13
Table 2-8. Duration and Applicability of Grant Assurances (Aviation Block Grant
Program)*
d. Last for as long #5 Compliance Requirements

as the state is in
the Block Grant
Program
e. Meets the #4 Obligated to Standard Assurances

duration of the
following
assurances:
Airport
Sponsors and
Non-Airport
Sponsors
Undertaking
Noise
Compatibility
Program
Projects
* Block grant states must ensure that subrecipients are obligated to the applicable grant
assurances by attaching the appropriate set(s) of grant assurances to each subgrant. In addition,
block grant states that perform actions for the subrecipient that are beyond their block grant state
administrative responsibilities must comply with all sponsor assurances associated with those
actions.
2-6. Sponsor Qualification Criteria.
For an ADO to issue a grant, the FAA must first determine that the sponsor is able to assume the
responsibilities defined in the grant. Details of this requirement are outlined in
49 USC § 47105, § 47106 and § 47107. The general sponsorship criteria are different for public
agencies and private entities. The criteria for public agencies are listed in Table 2-9 and for
private entities are listed in Table 2-10. Additional criteria, requirements, and considerations that
apply to specific sponsorship situations are listed in Table 2-11. These requirements do not
apply to Federal agency sponsors of an FAA designated safety critical airport eligible under
49 USC § 47118(h).
2-14
Table 2-9 Legal and Financial Requirements for Public Agencies
The criteria are…
a. Per 49 USC § 47105(b)(2), a sponsor must be proposing a project for a public-use airport included in
the current National Plan of Integrated Airport Systems (NPIAS).
b. Per 49 USC § 47106(a)(3), a sponsor must be financially able to assume and carry out the sponsor’s
duties in the AIP project application and grant agreements. This includes being able to finance the
sponsor share of grants. Per FAA policy, if a public sponsor has an open grant from a Federal
agency that requires compliance with 2 CFR part 200 Subpart E (OMB Circulars A-87, Cost
Principles for State, Local, and Indian Tribal Governments and OMB Circulars A-102, Grants and
Cooperative Agreements with State and Local Governments), this requirement is met. Otherwise, the
ADO must work with ACO-100 to make this determination.
c. Per 49 USC § 47106(b)(1), the sponsor, another public agency, or the Federal government must
have good title to the areas of the airport used or intended to be used for the landing, taking off, or
surface maneuvering of aircraft. Per FAA policy, if the good title requirement is not met prior to the
grant being issued, the acquisition of good title must be in process. Also per FAA policy, the sponsor
can meet this good title requirement by leasing from another public agency that holds good title,
provided that the duration of the lease is at least as long as the useful life of the project. (A lease
from a private entity does not provide good title.)
d. Per 49 USC § 47106(a)(5), a sponsor must legally have the authority to act as a sponsor.
The sponsor must not be encumbered by any existing agreements that would prevent it from acting
as a sponsor. Legal authority to be a public sponsor comes from its state authorizing legislation, also
called state enabling legislation. The authorizing legislation must clearly provide the sponsor the
authority to carry out the obligations and responsibilities of sponsorship. Per FAA policy, the sponsor
must provide a copy of the state authorizing legislation to the ADO prior to the sponsor applying for its
first grant. Per FAA policy, the ADO has the option to require an opinion from the sponsor’s attorney
regarding whether the sponsor has the legal authority to act as a sponsor.
e. Per 49 USC § 47106(d), if a sponsor has previously received a grant, the sponsor must be in
compliance with its current grant obligations. The ADO and regional office must obtain a list of the
sponsors that are not in compliance from ACO-100.
f. Per 49 USC § 47107(d), the sponsor must be able to maintain and operate the airport as a public-use
airport to FAA standards.
g. Per 2 CFR part 180, a sponsor must not be suspended or debarred by the Federal government.
2-15
Table 2-10 Legal and Financial Requirements for Private Entities
The criteria are…
a. Per 49 USC § 47105(b)(2), a sponsor must be proposing a project for a public-use airport included in
the current National Plan of Integrated Airport Systems (NPIAS).
b. Per 49 USC § 47102(26)(B), the sponsor must be the private owner of a public-use airport.
49 USC § 47102(22)(B) defines a privately-owned airport as a public use airport if it is used or
intended to be used for public purposes and meets one of the following conditions:
(1) Is a reliever airport. The FAA defines which airports are privately owned reliever airports in the
current version of FAA Order 5090.3, Field Formulation of the National Plan of Integrated Airport
Systems (NPIAS).
(2) The FAA has determined that the airport has at least 2,500 passenger boardings each year and
receives scheduled passenger aircraft service.
c. Per 49 USC § 47106(b), the sponsor must have good title to the airport property. Per FAA policy, if
the good title requirement is not met prior to the grant being issued, the acquisition of good title must
be in process. Also per FAA policy, the sponsor can meet this good title requirement by leasing from
a public agency that holds good title, provided that the duration of the lease is at least as long as the
useful life of the project.
d. Per 49 USC § 47107(d), the sponsor must be able to maintain and operate the airport as a public-use
airport to FAA standards.
e. Per 49 USC § 47106(a)(3), a sponsor must be financially able to assume and carry out the sponsor’s
duties in the AIP project application and grant agreements.
If a private sponsor can provide documentation that a certified public accounting firm has determined
they are financially able to assume and carry out the sponsor duties, this requirement has been met.
The certified public accounting firm must have reviewed the sponsor’s financial documentation and
affirmed the sponsor has sufficient funds on hand, or a combination of funds and agreements with
airport tenants, that will provide adequate income to finance the sponsor share and costs of
operating/maintaining the airport for at least 10 years in the future. Otherwise, the ADO must have
obtained concurrence from ACO-100 to proceed.
f. Per 49 USC § 47106, a sponsor must legally have the authority to act as a sponsor.
The sponsor must not be encumbered by any existing agreements that would prevent it from acting
as a sponsor. The ADO may require an opinion of the sponsor’s attorney of its legal authority to act
as a sponsor and carry out its responsibilities under the grant agreement.
g. Per 49 USC § 47106(d), if a sponsor has previously received a grant, the sponsor must be in
compliance with its current grant obligations.
The ADO and regional office may obtain a list of the sponsors that are not in compliance from ACO-
100.
h. Per 2 CFR part 180, a sponsor must not be suspended or debarred by the Federal government.
2-16
Table 2-11 Additional Criteria, Requirements, and Considerations for Specific

Sponsorship Situations
For the following The additional criteria, requirements, and considerations apply…
sponsorship
situation…
a. A state acting as a (1) 49 USC § 47105(a)(1)(B) allows state sponsorship of development and
sponsor for one or planning projects for one or more airports provided:
more specific
(a) The sponsor of each airport consents in writing to the state
airports (Note:
sponsorship.
When a state is
acting as a sponsor (b) There is administrative merit and aeronautical benefit to the state
for more than one sponsorship. Per FAA policy, the ADO makes this determination.
airport within the
state, this is often (c) There is written documentation that the state will comply with the
referred to as a required grant conditions and assurances. Per FAA policy, the ADO
various locations makes this determination.
grant.) (2) 49 USC § 47102(27) defines a state 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).
(3) This sponsorship type is not the State Block Grant Program.
(4) The state must provide the signed copy of FAA Form 5100-128,
Agreement on State Sponsorship and Airport Sponsor Obligations (see
the AIP Forms link in Appendix B) to the ADO with the grant application
and the ADO must approve or disapprove any changes or addendum to
the agreement.
b. A state approved by (1) State block grant sponsorship is restricted to states selected for the State
the FAA to be in the Block Grant Program as discussed in Section 2 of Chapter 6.
block grant program
(2) Under the State Block Grant Program, the state is the sponsor. The state
then issues subgrants to the airports that are included in the program.
c. A public agency not (1) During the acquisition or establishment of an airport, the regional division
owning or leasing a manager must have made two separate sponsor designations.
public-use airport
(2) First, the regional division manager may designate a public agency as a
sponsor for a planning grant to acquire or establish a public-use airport.
(3) Second, if the regional division manager, ADO, and the sponsor decide to
continue with the airport acquisition or establishment, the regional division
manager must separately designate that the sponsor is legally and
financially able to assume the responsibilities of a sponsor. This is
because the Planning Agency Sponsors Assurances are less extensive
than the Airport Sponsors Assurances.
2-17

sponsorship
situation…
d. A metropolitan (1) A planning agency sponsor must be authorized by the laws of the state
planning agency or a (or states or political subdivisions concerned) to engage in area-wide
state planning planning for the areas in which the grant funding is to be used.
agency
(2) Typical state agencies that may qualify as a planning agency sponsor are
planning offices, aeronautics commissions, and departments of
transportation.
(3) Typical metropolitan planning agencies include metropolitan planning
organizations, councils of government, and regional planning
commissions.
e. Entities acting as (1) A public agency may act as an agent of the sponsor without being
sponsor agents considered a co-sponsor. These agents are not true sponsors or co-
(including sponsors, but they do play a role in the AIP grant process.
channeling act
(2) Channeling is the most common type of agent agreement. State
states)
channeling of Federal airport grants occurs in various forms within
numerous states. Normally, when an airport is in a channeling act state,
the sponsor submits payment request information to the state, who then
submits the request to the FAA. In this case, the FAA makes payments to
the state, and the state then distributes the payment to the sponsor. In
some cases, the state may also provide technical oversight and review,
which may include state submittal of grant applications and/or closeout
requests. This is based on state enabling legislation, rather than Federal
law. In many cases, the state also signs the grant agreements.
Channeling agreements based on state enabling legislation do not need
approval from the ADO.
(3) Except for channeling act agreements, other agent-sponsor agreements
require prior ADO review and regional division manager approval in order
to be valid. These agreements are rare and must include the terms,
conditions, powers, responsibilities, and relationship of the agent to the
sponsor. The agreement may be in the form of a resolution or ordinance,
and a copy of the agreement, along with regional division manager’s
concurrence, must be kept on file in the ADO.
2-18

sponsorship
situation…
f. Two or more entities (1) The FAA has determined that the public agencies either independently (or
acting as co- jointly) meet the sponsorship requirements. The ADO agrees to the co-
sponsors sponsorship by issuing the grant.
(2) Each of the co-sponsors is individually bound to the terms and conditions
of the grant agreement unless their respective rights and obligations are
otherwise set forth in a written agreement. The agreement must, as a
minimum, set forth:
(a) The responsibilities of each cosponsor to the other(s) with respect to
the accomplishment of the proposed development, operation, and
maintenance of the airport;
(b) The obligations which each will assume to the United States:
(c) The names of the sponsor or sponsors who will accept the grant
agreement; and
(d) The names of the sponsor or sponsors who will accept receipt of and
disburse grant payments.
(3) Channeling act states are not considered to be co-sponsors, they are
sponsor agents even if they sign the grant agreement.
(4) Any two or more public agencies may submit a request to the FAA to co-
sponsor a project. The FAA will consider the relationship of the proposed
cosponsors to the airport.
(5) The FAA is not a party to a co-sponsorship agreement. Therefore,
disagreements between co-sponsors must be addressed at a local or
state level, as appropriate.
g. Sponsors for (1) The sponsor has authority to plan and adopt land use compatibility plans
compatible land use and control measures, including zoning, in the planning area in and
planning or around the airport.
compatible land use
(2) The sponsor and the airport must enter into a written agreement to
projects per
prepare the compatible land use plan cooperatively.
49 USC § 47141
h. Sponsors that are (1) The additional sponsor requirements are contained in Section 8 of
acquiring airport Chapter 6, which covers the airport development rights pilot program.
development rights
from a privately-
owned public-use
airport under the
pilot program in
49 USC § 47138(a)
2-19
2-7. State Sponsorship Benefits.
One of the benefits of having a state act as a sponsor for more than one airport (like for various
location grants) is that it may reduce ADO, state, or sponsor workload by combining multiple
grants into one. It may also provide economies of scale through state sponsorship. For instance,
equipment can be acquired in quantity at potentially lower unit cost, several small and similar
construction projects can be accomplished or related airport master plans or airport layout plans
can be prepared. Co-sponsorship of projects between the airport and the state remains an
alternative to this procedure if the airport, the state and ADO believe this to be more efficient.
2-8. Sponsorship Determination Process.
The FAA Office of Airports is responsible for making sponsor determinations for AIP. The
process differs by entity type as outlined below. For Federal agency sponsors of an FAA
designated safety critical airport eligible under 49 USC § 47118(h), this determination will be
made by APP-1.
a. Public Agencies. Per the current version of FAA Order 1100.145, Delegations of
Authority, Appendix 4, the regional division manager is delegated to take actions with respect to
their function and assigned responsibilities, which are detailed in the current version of FAA
Order 1100.5, FAA Organization – Field. These responsibilities include making sponsorship
determinations for public agencies. The regional division manager may document their
determination in one of two ways. First, the regional division manager may make a written
designation of sponsorship prior to issuing a grant. Second, if there is no controversy or
complexity, the regional division manager may make an implicit determination by allowing the
ADO to issue a grant to the proposed sponsor. The FAA has determined that it is preferable to
have a written determination of sponsorship prior to the regional division manager issuing the
first grant to a new sponsor. Therefore, for determinations made by the regional division
manager after the publication of this Handbook, the regional division manager must make a
written determination prior to issuing the first grant to the new sponsor. The regional division
manager and ADO may contact APP-500, ACO-100, or regional legal counsel for assistance
with these sponsorship determinations.
b. Private Entities. APP-1 makes the sponsorship determination for a private entity. APP-1
must have made a written designation of sponsorship prior to the ADO issuing the first grant (an
implicit determination is not an option).
c. Public Private Entities. In addition, a sponsor may also fall in the rare public-private
sponsorship category. This is where an airport privatizes some, but not all, of the management
of the airport. In this case, the regional division manager and ADO must consult ACO-100 and
APP-500 for direction on how to proceed. APP-1 must have made a written designation of
sponsorship prior to the ADO issuing the first grant (an implicit determination is not an option).
2-9. Transfer of Sponsorship.
In order for an existing sponsor to transfer the sponsorship of an obligated airport to another
entity, the sponsor must obtain pre-approval from the FAA. Per the current version of
FAA Order 5190.6, FAA Airport Compliance Manual, the existing sponsor must first obtain
2-20
ARP-1 pre-approval to release the entire airport. Then the FAA must make a sponsorship
determination for the new entity as discussed in Paragraph 2-8. The existing sponsor cannot
transfer sponsorship unless ARP-1 approves the release of the airport and the FAA makes a
positive sponsorship determination for the new sponsor. The ADO must refer to the current
version of FAA Order 5190.6, FAA Airport Compliance Manual for specific sponsor transfer
requirements, including the willingness of the sponsor to take on the applicable grant assurances
and obligations.
The ADO and regional office must contact APP-500 and ACO-100 to determine the current
process prior to initiating the review of a sponsorship transfer request.
2-10. Conflicting Grant Requests from More than One Entity.
Where more than one entity applies for a grant for the same or similar project, and where
identification of the appropriate agency empowered to do the project is not clear, the regional
division manager will designate the eligible applicant based on which one is best equipped to do
the project. This is a rare situation and is generally related to a planning project. APP-400 can
provide assistance to the regional division manager and the ADO in these cases.
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Chapter 3. What projects can be funded?
Section 1. List of 16 Requirements for Project Funding.
3-1. List of 16 Requirements for Project Funding.
A project must meet the 16 general requirements listed in Table 3-1 in order for the ADO to
consider it for AIP funding. The ADO must not approve projects that do not meet these
requirements. The remaining sections of this chapter discuss each of these 16 general
requirements in greater detail.
Table 3-1 The 16 General Requirements for Project Funding
The general requirements are… As found in…
a. Is the project eligible? Section 2
b. Is the project justified? Section 3
c. Is the project on airport property (with good title)? Section 4
d. Is the project on the FAA approved airport layout plan? Section 5
e. Has the sponsor satisfied the intergovernmental review and airport user Section 6
consultation requirements?
f. Has the FAA completed an environmental finding for the project? Section 7
g. Will the project result in a usable unit of work? Section 8
h. Will the project be planned, designed, and/or constructed to FAA standards? Section 9
i. Has the project been procured correctly? Section 10
j. Are the project costs allowable? Section 11
k. Are the project costs necessary to accomplish the project (Allowable Rule #1)? Section 12
l. Were the project costs incurred after the grant was executed (Allowable Section 13
Rule #2)?
m. Are the project costs reasonable (Allowable Rule #3)? Section 14
n. Is this the only Federal grant containing these project costs (Allowable Rule #4)? Section 15
o. Are the project costs within the allowable Federal share (Allowable Rule #5)? Section 16
p. Can the project be completed without unreasonable delay? Section 17
3-1
Section 2. Project Eligible.
3-2. The Act Establishes the General Types of Eligible Projects.
The Act identifies the general types of projects that may be funded with AIP, which are airport
planning, airport development, noise compatibility planning, and noise compatibility projects
(see 49 USC § 48103).
Only these types of projects are eligible and can be funded. The Federal Appropriations Law
prohibits the ADO from funding ineligible projects (as discussed in Paragraph 1-10). If this
Handbook does not list a project as eligible, the ADO must receive an eligibility determination
from APP-500 in order to proceed with the project. This effort will maintain consistency on a
national basis.
However, just because a project is eligible under the Act, it does not mean that the ADO can
fund the project. The project must meet the other requirements further outlined in this chapter.
3-3. Project Requirement Tables (in the Appendices by Project Type).
The tables in the appendices contain project specific requirements for projects that are eligible
under the Act. These tables have been broken out into the appendices for ease of use. ADOs
must not use these appendices independently. They must also apply the 16 general project
requirements outlined in this chapter to determine if a project can be funded with AIP.
3-4. Prohibited Project and Unallowable Cost Tables.
Appendix C contains tables that the ADO can use to help determine if the FAA has previously
identified a project or cost to be ineligible or unallowable.
3-5. Only Specific Equipment is Eligible under the Act.
49 USC § 47102(3) lists the specific pieces of equipment eligible under AIP. No other pieces of
equipment (including associated computer hardware or software for the equipment) are eligible
unless AAS-1 has made a written determination that the equipment will contribute significantly
to airport safety or security.
3-6. Eligibility of Maintenance, Rehabilitation, Reconstruction, and Replacement Projects.
These concepts cause much confusion. The goal for all of the actions above is to obtain a
functioning unit as the final outcome. What differentiates these concepts is the level of effort
and the resulting change in useful life. As the work effort for a category increases, the question
of whether the work belongs in the category surfaces (for example, determining when timely
maintenance is actually rehabilitation.) As a result, the conclusion of which category the project
falls into rests with the specific circumstances. Table 3-2 explains the differences between these
concepts and Table 3-3 provides eligibility examples.
3-2
Table 3-2 Differences between Maintenance, Rehabilitation, Reconstruction, and

Replacement Projects
Item Explanation Eligibility
a. Maintenance Maintenance includes any regular Maintenance work is not airport development
(including or recurring work necessary to as defined in the Act. Therefore, it is not
minor repair) preserve existing airport facilities in eligible for AIP funding except for one specific
good condition, any work involved situation.
in the care or cleaning of existing
49 USC § 47102(3)(H) provides the exception
airport facilities, and any incidental
for routine runway, taxiway, or apron
or minor repair work on existing
maintenance at nonhub primary airports and
airport facilities.
nonprimary airports.
Minor repair is a stopgap measure
Typical runway, taxiway, or apron
taken by a sponsor to keep a
maintenance includes routine cleaning, filling,
facility operational until the sponsor
and or sealing of longitudinal and transverse
can complete a rehabilitation,
cracks; grading pavement edges; maintaining
reconstruction, or replacement
pavement drainage systems; patching
project. Replacing individual parts
pavement; and remarking pavement areas.
and mending portions of a facility
are considered minor repair.
b. Rehabilitation Rehabilitation is a more Rehabilitation is generally eligible (but must

comprehensive restoration of an still be justified).
original functionality that results in
a piece of pavement, piece of
equipment, or building with a useful
life of at least 10 years, or half of
the useful life per Table 3-7,
whichever is less.
This approach deals with the facility
or item as a whole and is more far-
reaching than the minor repair
discussed under maintenance.
c. Reconstruction Reconstruction is a complete Reconstruction is generally eligible (but must

restoration of an original still be justified).
functionality that results in a
virtually new piece of pavement,
piece of equipment, or building with
a use life as listed in Table 3-7.
3-3
Table 3-2 Differences between Maintenance, Rehabilitation, Reconstruction, and

Item Explanation Eligibility
d. Replacement Replacement is building a complete Replacement is generally eligible (but must

(including new facility or replacing a whole still be justified) provided;
replacement of new piece of equipment that has
(1) The facilities or equipment was
damaged reached the end of its useful life.
destroyed, become obsolete, worn out, or
equipment)
otherwise deemed inoperable through no
fault of the sponsor under normal use.
An example of this may be replacement
of Engineered Materials Arresting System
(EMAS) panels that were destroyed by an
aircraft, only if the sponsor can prove that
there is no other avenue, such as
insurance, for funding the replacement.
(2) The sponsor has determined that there
are no other avenues for replacement
(such as through insurance or by another
Federal agency responsible for such
disasters).
Table 3-3 Examples of Maintenance, Rehabilitation, Reconstruction, and

The following project of… Is considered… And is…
a. Applying a herbicide on cracks in asphalt Maintenance Not eligible at any airport

pavement
b. Changing fluid on a scheduled basis to keep Maintenance Not eligible at any airport
a vehicle’s engine and parts functional
c. Mowing the airfield grass Maintenance Not eligible at any airport
d. Sweeping airfield pavement Maintenance Not eligible at any airport
e. Re-topping trees for approach protection if Maintenance Not eligible at any airport
this work was previously completed in an AIP
grant
f. Replacing airfield light bulbs Maintenance Not eligible at any airport
g. Replacing runway lighting fixtures due to Maintenance Not eligible at any airport
snow plow damage
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h. Replacing a component of an existing eligible Maintenance Not eligible at any airport

equipment or system. Examples include
replacement of a regulator for an airfield
lighting circuit; replacement of a transmission
in an Aircraft Rescue and Firefighting (ARFF)
truck; and replacement of a sensor for an
AWOS system.
i. Replacing carpeting (or other flooring, such Maintenance Not eligible at any airport
as tiles or terrazzo), painting, wall coverings,
doors or ceiling tiles in a terminal not required
as a result of an eligible terminal project
j. Replacing public-use seating (including fixed Maintenance Not eligible at any airport
tables and counters) in a terminal that is
bolted or affixed to the terminal wall or floor, if
the replacement is not associated with a
larger terminal project.
k. Replacing small sections of roofing in Maintenance Not eligible at any airport

terminals and airport buildings
l. Replacing faded sign panels Maintenance or See Paragraph J-3 for details.
incidental costs,
depending on the
situation
m. Minor work or repair on a turf or aggregate Maintenance Eligible at a nonhub primary

runway airports or nonprimary airport
(subject to adequate
justification)
n. Performing spall repair, crack sealing, or Maintenance Eligible at a nonhub primary

repair of a small portion of the total taxiway, airports or nonprimary airport
runway or apron pavement (subject to adequate
justification)
o. Applying seal coats or slurry seal, or Rehabilitation Eligible at any airport (subject
resealing of joints for a major portion of a to adequate justification)
taxiway, runway or apron pavement
p. Rehabilitation of a turf or aggregate runway Rehabilitation Eligible at any airport (subject

to adequate justification)
q. Replacing panels and replacing all joint seal Rehabilitation Eligible at any airport (subject
material on concrete pavement to obtain at to adequate justification)
least 10 years of useful life
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r. Milling and repaving an apron to obtain at Rehabilitation Eligible at any airport (subject
least 10 years of useful life to adequate justification)
s. Completely renovating the terminal restrooms Rehabilitation Eligible at any airport (subject
t. Performing lid rehabilitation for Engineered Rehabilitation Eligible at any airport (subject
Material Arresting System (EMAS) blocks to adequate justification)
installed with AIP funds prior to fiscal year
2007 (after fiscal year 2007, the manufacturer
began fully encasing the blocks, eliminating
the need for lid replacement)
u. Bringing a runway down to its subgrade and Reconstruction Eligible at any airport (subject
completely repaving it to adequate justification)
v. Replacement of sign panels required by a Replacement Eligible at any airport (subject

change in airfield geometry or new sign panel to adequate justification)
specifications
w. Purchasing an ARFF vehicle to replace one Replacement Eligible at any airport (subject
paid for with AIP funding to adequate justification)
x. Replacement of damaged Engineered Replacement Eligible at any airport (subject

Material Arresting System (EMAS) panels to adequate justification)
that were damaged by an aircraft and the
sponsor can prove that there is no other
avenue for funding the replacement, such as
the aircraft owner’s or sponsor’s insurance
y. Replacement of terminal escalators Replacement Eligible at any airport (subject

3-7. Difference between AIP and Passenger Facility Charge (PFC) Eligibility.
While closely related, there are differences between project eligibility between AIP and the PFC
program. These differences are discussed in the current version of FAA Order 5500.1, Passenger
Facility Charge.
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Section 3. Project Justified.
3-8. Three Basic Tests for Project Justification.
The ADO must apply the three basic tests in Table 3-4 to determine if a project is justified. The
ADO must not fund projects or project elements that are not justified based on the following
three tests. Table 3-5 contains examples where one or more of the following tests are not met.
Table 3-4 Three Basic Tests to Determine if a Project is Justified
The three basic tests to determine if a project is justified are…
a. The Project Advances an AIP Policy. The ADO must verify that the project advances at least one
of the AIP policies contained in 49 USC § 47101. The basic goals and objectives in these policies
include airport safety, airport security, airport capacity, meeting an FAA standard, preserving airport
infrastructure through reconstruction or rehabilitation, protecting and enhancing the environment,
minimizing aircraft noise impacts, and airport planning. AIP funds must not be used for a project that
does not specifically advance one of the AIP policies.
b. There is an Actual Need. Per FAA policy, the ADO must determine if there is an actual need for the
project at the airport within the next five years (per the definition near-term development per the
current version of Advisory Circular 150/5070-6, Airport Master Plans). This includes all
subcomponents of the project.
c. The Project Scope is Appropriate. The ADO must determine that only the elements that are
required to obtain the full benefit of the project are included in the project scope. Any elements that
do not meet these criteria must stand on their own separate merit and justification. The current
version of FAA Order 5100.39, Airports Capital Improvement Plan, discusses this concept in further
detail in the discussions on overall development objective.
Table 3-5 Examples of Projects Not Meeting the Basic Justification Tests
For the following situation… Is not justified because…
a. A sponsor has a runway shown on their ALP and This project does not advance an AIP policy.
would like to build it to increase capacity. However,
The actual need does not exist.
the airport already has adequate capacity and will
continue to have adequate capacity in the
foreseeable future.
b. A sponsor would like to build a runway extension to The actual need does not exist.
attract a new class of aircraft or for marketing
purposes. In this case, the need is speculative and
not based on documented future need.
c. A sponsor would like include dorm rooms and day This project scope is not appropriate.
rooms in an ARFF building expansion for an airport
with a class of certification that does not require 24/7
ARFF personnel.
3-7
Table 3-5 Examples of Projects Not Meeting the Basic Justification Tests
For the following situation… Is not justified because…
d. A sponsor would like to replace its existing asphalt The actual need does not exist.
pavement with concrete even though the pavement
section has existing useful life.
3-9. Justification Requirements for Safety and Security Projects.
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 Table 3-6.
Table 3-6 Safety and Security Projects Proposals Requiring Additional ADO
Review
Examples of proposals that require additional ADO review for eligibility and justification…
a. A proposal that addresses a14 CFR part 139 violation
b. A written recommendation by a 14 CFR part 139 certification inspector
c. A proposed runway incursion prevention measure
d. A Runway Safety Action Team recommendation
e. An item included in an Airport Emergency Plan
f. An item included in an Airport Certification Manual
g. An item included in a wildlife hazard assessment (or associated wildlife hazard management plan) or
wildlife hazard site visit (or associated written sponsor adoption of the site visit recommendations).
h. An item included in an airport’s approved 49 CFR part 1542 security program (typically eligible
security projects are included in Appendix L and Appendix N and the commonly requested security
projects that have been determined ineligible are included in Appendix C).
3-10. Justification Requirements for Unclassified Airport Projects.
Very-low activity nonprimary airports that are not classified as National, Regional, Local, or
Basic airports in the latest edition of the FAA Asset or the latest NPIAS report are designated as
unclassified airports. Because these airports are low-activity, the only projects for which these
airports are justified are: projects to rehabilitate the airport’s existing primary runway pavement
3-8
at a frequency not to exceed 10 years; a one-time project to remove obstructions from each end
of the primary runway; and runway maintenance projects allowed per 49 USC § 47102(3)(H).
Other projects, including those needed to correct design standards issues, may be considered by
the ADO in limited cases where extraordinary justification exists. The ADO must not program
these types of projects unless the project has received pre-approval by APP-500. APP-500
provides the current pre-approval process for each fiscal year in an internal Regional Guidance
Implementation Memo.
3-11. The Use of Critical Aircraft for Justification.
For some projects, the ADO must determine if a project is justified based on the applicable
critical aircraft for the project. More than one critical aircraft may control the design of any
specific airport’s different facility features, such as runway length, strength of paved areas or
lateral separations in airfield layout. The ADO must use the current version of Advisory Circular
150/5000-17, Critical Aircraft and Regular Use Determination, to determine the critical aircraft
for specific projects and airport types. For funding purposes, it is APP-500 policy that the annual
operations requirement for critical aircraft must not include military or federally-owned aircraft.
The ADO has the option to determine that a project is justified based on existing activity at the
airport or activity that is projected to be at the airport within the next five years. The ADO has
the option to require the sponsor to submit letters of support from airport users if the justification
is based on projected activity. The letter must describe the airport user’s plans or anticipated
activity by the most demanding airplane, or critical aircraft.
3-12. Useful Life Test for Equipment and Facilities.
The useful life of the facility or equipment being rehabilitated, reconstructed or replaced must
have been met in order for the project to be funded. The exception is when the ADO has
determined that the rehabilitation, reconstruction, or replacement is necessary for safety reasons.
Table 3-7 provides a list of minimum useful lives.
Although the minimum useful life of facility, equipment or vehicles may have been met, this
does not automatically mean that the rehabilitation, reconstruction or replacement of the item is
needed. Simply meeting the minimum useful life does not justify replacing the item if the
facility, equipment, or vehicle is performing as intended.
3-9
Table 3-7 Minimum Useful Life
Project Type Useful Life
a. All construction projects (unless listed separately below) 20 years
b. All equipment and vehicles (unless listed separately below) 10 years
c. Pavement rehabilitation (not reconstruction, which is 20 years) 10 years
d. Asphalt seal coat, slurry seal, and joint sealing 3 years
e. Concrete joint replacement 7 years
f. Airfield lighting and signage 10 years
g. ARFF vehicles 15 years
h. ARFF structural gear (firefighting suits), which has less heat insulation than 7 years
proximity gear (per the National Fire Protection Association 1971 Standard on
Protective Ensembles for Structural Firefighting and Proximity Firefighting)
i. ARFF proximity gear (firefighting suits), which is also referred to as slicks, 5 years
bunker, or turn out gear (per the National Fire Protection Association 1971
Standard on Protective Ensembles for Structural Firefighting and Proximity
Firefighting)
j. NAVAIDs and Weather Reporting Equipment 15 years
k. Buildings 40 years
l. Land Unlimited
m. Loading Bridges 20 years
n. Fencing 20 years
3-13. Benefit-Cost Analysis (BCA) for NAVAIDs and Weather Reporting Equipment.
If a BCA is required for a NAVAID or weather reporting equipment, this requirement is listed in
the appendices for that specific project. The ADO must contact APP-500 for the latest tools and
procedures for this process.
3-14. BCAs for Capacity Projects Using Discretionary Funds.
A BCA is a tool to determine if a project’s benefits outweigh its costs. If the ADO is considering
funding a capacity project with AIP discretionary funding, 49 USC § 47115(d) requires that the
FAA review a BCA. It is FAA policy that, as of October 28, 2011, a BCA is only required if the
sponsor is requesting more than $10 million in discretionary funding over the life of the project.
3-10
This is a key change to the detailed BCA preparation guidance contained in the document titled
FAA Airport Benefit-Cost Analysis Guidance (see Appendix B for link). A few of the more
important highlights from this document are included below.
a. Capacity Project Definition. This definition is included in Appendix A. Except for the
two types of projects listed in Table 3-8, it is FAA policy that the ADO must obtain a joint
APP-400 and APP-510 concurrence on whether the project is considered capacity and therefore
requires a BCA.
Table 3-8 Projects Where the FAA Has Determined if a BCA is Required
For the following project… A BCA is…
a. Construct a new airport that is not Required. By definition, the airport will create capacity where
replacing an existing airport of any none currently exists.
type or obligation status.
b. Rehabilitate/reconstruct eligible Typically Not Required, although the FAA may require a
airfield infrastructure with no BCA. Although the FAA Airport Benefit-Cost Analysis
increase to the original Guidance (see Appendix B for link) requires that the FAA make
functionality. this determination on a case by case basis, the FAA has
determined that these projects are cost beneficial and typically
do not require a separate BCA.
b. Associated Work. When preparing the BCA, the sponsor must include all of the
development items directly associated with the capacity project in the BCA. The sponsor cannot
pull out pieces of the associated work, even if the sponsor believes the associated work is not
capacity related, without the express approval of the FAA.
c. Estimates of Future AIP Funding. Since the BCA must occur before the project is
planned in detail, the financial analysis may be incomplete, or not detailed enough to identify all
the funding sources for the project. A sponsor may be uncertain about its future entitlement
funds and is unable to predict accurately the discretionary funds needed to fund the project. In
cases like these, the sponsor and the FAA must jointly agree on a reasonable amount of
discretionary funding, given the best information available at the time.
d. BCA Process. The BCA process, per FAA policy, is outlined in Table 3-9.
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Table 3-9 BCA Process
The BCA process steps include…
a. ADO Notification to Regional Office and APP-500. ADOs must notify the regional office and APP-
500 promptly when the ADO determines that a sponsor will be submitting a BCA in the near future.
Preliminary information provided to APP-500 must include a general description of the project, the
estimated cost, and the project’s justification.
b. APP-500 Guidance to Regional Office and ADO. Based on the project, APP-500 will indicate
whether a BCA is required and provide the ADO and regional office with the appropriate review
method, internal coordination, appropriate samples, and other necessary information.
c. Sponsor Preparation of BCA. Sponsors must use FAA Airport Benefit-Cost Analysis Guidance (see
Appendix B for link) when preparing a BCA for a capacity project.
d. Sponsor Submittal. Sponsors must submit one hard copy and one electronic copy of the BCA to the
ADO. Sponsor must submit BCAs far enough in advance of any requested grants or LOI offers in
order to avoid potential delays in funding decisions.
e. FAA Determination. In most cases, APP-500 will prepare the official FAA determination, which may
include internal coordination with other FAA offices, and forward a copy of the official determination to
the ADO and regional office.
f. ADO Notification to Sponsor. The ADO will send the official FAA determination to the sponsor and
will place a copy in the grant file.
3-15. BCAs for All Other Projects.
The FAA also reserves the option to require a BCA for any AIP funded project, regardless of
project type, funding type, or funding amount.
Section 4. Project on Airport Property (with Good Title).
3-16. On-Airport Property Requirements.
As a general rule, projects must be located on airport property (to which the sponsor holds good
title). Per FAA policy, off-airport projects are limited to those listed in Table 3-10. As discussed
in Table 2-9, leasing from a private entity does not meet the requirements for good title.
3-12
Table 3-10 Eligible Off-Airport Projects
Eligible off-airport projects are limited to… And the sponsor, at a minimum, must have…
a. Removal of obstructions. An easement or verification of adequate land use

controls (such as ordinances or zoning) that would
prohibit the obstruction from reoccurring.
Easements must be shown on the Exhibit A (property
inventory map). The reason the ADO must not issue a
grant to remove the obstruction without an easement or
land use control is because the obstruction removal
needs to be a permanent solution.
b. Marking or lighting obstructions. An easement or a written agreement. If the sponsor

executes an easement, the easement must be shown
on the Exhibit A (property inventory map). If the
sponsor wants to use a written agreement, the ADO
has the option to contact APP-400 to ensure that the
written agreement is adequate. The agreement must
also transfer the responsibility of maintaining the
development to the property owner once the project is
complete.
c. Outfall drainage ditches. An easement. The easement must be shown on the

Exhibit A (property inventory map).
d. Relocation of roads and utilities constituting A written agreement. The sponsor must have a
airport obstructions or to allow eligible formal written agreement with the property owner that
airport development. allows the work to be done. The agreement must also
transfer the responsibility of maintaining the
complete.
e. Installation or relocation of NAVAIDs. An easement. The easement must be shown on the

f. Construction or installation of eligible An easement. The easement must be shown on the

utilities. Exhibit A (property inventory map).
g. Airport waste-water treatment plants. An easement. The easement must be shown on the
h. Noise soundproofing projects. A written agreement. The sponsor must have a

formal written agreement with the property owner that
allows the work to be done. The agreement must also
transfer the responsibility of maintaining the
complete.
i. Noise implementation projects requiring An easement. The easement must be shown on the
placement of sponsor owned equipment Exhibit A (property inventory map).
(such as installation of noise monitors).
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Table 3-10 Eligible Off-Airport Projects
Eligible off-airport projects are limited to… And the sponsor, at a minimum, must have…
j. Environmental mitigation measures A written agreement The sponsor must have a formal
required as a condition of environmental written agreement with the property owner that allows
approval for property improvements (such the work to be done. The agreement must also transfer
as wetlands replacement). the responsibility of maintaining the development to the
property owner once the project is complete.
k. Environmental mitigation measures An easement. The easement must be shown on the

required as a condition of environmental Exhibit A (property inventory map).
approval for placement of sponsor owned
equipment (such as installation of noise
monitors).
l. Regional Aircraft Rescue and Firefighting A written agreement. The sponsor must have a
Training Facility formal written agreement with the property owner that
allows the work to be done. The agreement must also
outline who is responsible for maintaining the project
when it has been completed.
Section 5. Project on Airport Layout Plan.
3-17. Airport Layout Plan Requirement.
49 USC § 47107(a)(16) requires that the sponsor must maintain a current airport layout plan
(ALP). It also prohibits the sponsor from altering the airport unless the ADO has determined
that the project will not adversely affect the safety, utility, and efficiency of the airport.
Per FAA policy, the ADO must not program a project that needs to be added to an FAA
approved ALP until the sponsor submits a revised ALP and it receives FAA approval.
Therefore, for projects not shown on the approved ALP that are expected to have a significant
impact on aeronautical or airport operations, the ADO must advise the sponsor to complete an
ALP Update for FAA review and approval.
For projects not shown on the approved ALP that are not expected to have a significant impact
on aeronautical or airport operations, the ADO may allow the sponsor to revise their ALP by
submitting an aeronautical study. If the aeronautical study does not result in an objection from
the FAA, the ADO may accept the ALP revision by issuing a letter to the sponsor that includes a
reference of the aeronautical study determination number in the approval letter. If the
aeronautical study results in an objection from the FAA, then the sponsor must revise the scope
of the project as necessary to address the objection, and submit another aeronautical study. The
ADO must not program the grant until an acceptable aeronautical study is complete. In addition,
the ADO must then require the sponsor to submit a revised ALP as a condition of closing the
grant.
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In limited cases where directed by APP-500, the ADO may program the project without the
above ALP or aeronautical study approval; however the ADO must complete the required
determination prior to issuing the grant per 49 USC § 47107(a)(16)(C).
The methods presented under this section do not preclude or satisfy the sponsor’s requirement to
conduct an environmental review of the project.
Section 6. Intergovernmental Review and Airport User Consultation Complete.
3-18. Intergovernmental Review.
The current version of FAA Order 1200.21, Intergovernmental Review of FAA Programs and
Activities contain intergovernmental review requirements for AIP projects. This satisfies the
requirement in 49 USC § 47106(a)(1) that the project be consistent with plans (existing at the
time the ADO issues the grant offer) of public agencies around the airport.
Sponsors are required to coordinate projects through the appropriate state contact for projects
listed in Table 3-11. The state contact information is available on the Intergovernmental Review
page of the Office of Management and Budget (OMB) website (see Appendix B for link).
Table 3-12 contains key requirements.
Table 3-11 Projects Requiring Intergovernmental Review
The sponsor must coordinate projects through the appropriate state contact for…
a. Projects that significantly affect state or local governments beyond airport boundaries.
b. Projects specifically requested under a state’s review process.
c. Projects at a medium or large hub airport that involve the siting of the airport location, a new runway
or a major runway extension. In this case, 49 USC § 47106(c)(1)(A) requires that the sponsor must
also provide airport layout plan amendments (and an associated master plan) upon request by the
relevant Metropolitan Planning Organization (MPO).
Table 3-12 Key Requirements for Intergovernmental Review
Some of the key requirements are…
a. Sponsor Notification. The regional office is responsible for informing new sponsors of the required
intergovernmental project review process per the current version of FAA Order 1200.21,
Intergovernmental Review of FAA Programs and Activities, however the regional office may delegate
this to the ADO. The ADO must also notify all affected sponsors when a Federal change is made to
the review process.
b. Review Timeline. It normally takes state and local agencies 60 days to complete their review. The
sponsor must not submit a grant application before this coordination is complete. The ADO must not
issue a grant before the 60 day review period is over.
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Table 3-12 Key Requirements for Intergovernmental Review
Some of the key requirements are…
c. Early Project Review. If an interagency review was completed in the environmental or planning
stage of the project, it normally will not need to be repeated during the implementation stage unless
the scope of work has changed, substantial new information has become available, or significant time
has passed.
d. Process Changes. The ADO must forward formal changes in a state’s intergovernmental project
review process to the Department of Transportation (DOT) Assistant Secretary for Administration. All
affected DOT offices must implement the process changes submitted by the state within 90 days of
receipt from the state.
e. Establishment of State Process. States, in consultation with local elected officials, have the option
to establish their own process for reviewing and commenting on Federal programs and activities.
f. Treatment of Comments. The ADO has the option to accept the comments, reach a mutually
agreeable solution with the state or local agency, or reject the comments. While the ADO is not
required to accept comments or discuss another solution, the ADO has the option to provide a written
explanation of the final decision as a courtesy to the single point of contact at the state (preferably at
least 15 days before the project begins). If no single point of contact for the state exists, the ADO has
the option to send the written explanation to the parties that initially provided comments. When
49 USC § 47106(c)(1)(A) is triggered, the ADO must send the MPO a written explanation of the final
decision. When the ADO provides a written explanation of the final decision to a state or MPO, the
ADO must also send an informational copy to the DOT Assistant Secretary for Administration.
3-19. Consultation with Airport Users.
Per 49 USC § 47105(a)(2), a sponsor must consult with the airport users that will be affected by
the project. The consultation process does not require users to provide input or agree with the
proposal. Other consultation requirements are included in Table 3-13.
Table 3-13 Airport User Consultation Requirements
Requirements per FAA policy include…
a. The affected parties must be given a reasonable opportunity to provide input to proposals for airport
development.
b. The consultation must take place prior to submittal of the grant application. Since consultation is part
of planning project, separate pre-grant consultation is not required.
c. The consultation must include all project considerations that bear on the decision to proceed and
which impact users’ charges or operations.
d. At a minimum, the consultation must cover the general nature of the development proposed, its
estimated cost, and its estimated start and stop dates.
3-16
Section 7. FAA Environmental Finding Complete.
3-20. Environmental Finding Requirements.
Per 49 USC § 47106(c), any airport project funded with AIP funds requires an environmental
finding (Categorical Exclusion, Finding of No Significant Impact, or Record of Decision) prior
to initial grant programming. The requirements for environmental analysis and findings are
included in the current version of FAA Order 5050.4, National Environmental Policy Act
(NEPA) Implementing Instructions for Airport Projects.
Per FAA policy, the ADO must not program a project until the environmental finding is
complete.
Section 8. Usable Unit of Work Obtained.
3-21. Usable Unit Requirements (and Phased Project Conditions).
AIP grants that are given must result in a complete project. Partial construction or incomplete
acquisition does not result in a complete project and therefore is not a usable unit of work. The
required usable unit of work by project type is included in the project requirement appendices for
that project.
There is one exception to this, and it is often referred to as a phased project. The FAA may issue
a grant for a portion of a project when conditions in Table 3-14 are met.
Examples of acceptable and unacceptable grant descriptions are listed in Table 3-15.
Table 3-14 Requirements for Grants that will Not Result in a Usable Unit of Work
The project must meet all of the following requirements…
a. The ADO must include a special condition in the grant that requires the sponsor to complete a safe,
useful, and usable unit of development that is, per 49 CFR 47106(a)(4), completed in a reasonable
timeframe.
a. The grant description must clearly define the specific portion of the work being done in the grant, not
the work that will be completed in all of the phases. The ADO can accomplish this by referencing the
dimensions of the work or the specific contracts being funded.
b. Where the grant is for reimbursement of work, the requirements that the grant describe the work
specifically in each phase must be met.
3-17
Table 3-15 Examples of Acceptable and Unacceptable Grant Descriptions
The description is… For the following grant description for a multi-phase terminal building
project…
a. Unacceptable. Construct Terminal (Phase 1 – Building)

Construct Terminal (Phase 2 – Building)
b. Acceptable. Construct Terminal (Phase 1 – Site work)

Construct Terminal (Phase 2 – Building- Foundation)
Construct Terminal (Phase 3 – Building –Structure)
Construct Terminal (Phase 4 – Building –Electrical, HVAC, Plumbing)
Construct Terminal (Phase 5 – Building – Finishes, Interior and Exterior)
Construct Terminal (Phase 6 – Building) – Passenger Boarding Bridges)
Section 9. FAA Standards Met.
3-22. Mandatory FAA Standards.
a. General Requirement. Per 49 USC § 47105(b)(3), a project must be planned, designed

and constructed in accordance with current FAA standards unless the FAA has approved a
modification to the standard for the specific project. Mandatory FAA standards include airport
design, construction, and equipment standards and specifications.
b. Safe Approaches for Runway Projects (Clear Approaches). The FAA has interpreted
49 USC § 47105(b)(3) to mean that safe approaches are part of the FAA standards that must be
met for runway projects. Per FAA policy, the ADO must not fund the rehabilitation,
construction, or extension of any section of a runway that the ADO has determined will not be
usable due to unsafe approaches using the latest version of Advisory Circular 150/5300-13,
Airport Design.
c. List of Advisory Circulars. The FAA standards consist of the current version of the
advisory circulars listed in the document titled Current FAA Advisory Circulars Required for
Use in AIP Funded and PFC Approved Projects. This list (see Appendix B for link), is published
to comply with Airport Sponsors Assurance 34, regulations, published guidance, and FAA
policy.
3-18
d. Timing of Advisory Circulars. If an FAA standard changes while a project is in

progress, the sponsor must contact the ADO to determine whether the new standard must be met.
Generally:
(1) If a project has not been bid, it is the sponsor’s responsibility to ensure that the
finished design meets the latest published standard, unless the ADO and the sponsor agree that
the latest published standard does not have to be included.
(2) If the project has been bid, the ADO will not normally require the sponsor to meet the
revised standard. The ADO has the option to require the sponsor to meet the revised standard
when:
(a) The requirements can be easily incorporated.
(b) The ADO has determined that the old standard will negatively impact the airport.
(c) The ADO and sponsor mutually agree to include the new standard.
e. Other Standards. The ADO may incorporate other standards into a project as a special
condition in the grant agreement. These standards then become mandatory by their inclusion in
the grant. The automated AIP system contains the currently available special conditions.
3-23. Modification to FAA Standards (or Specifications).
Where the FAA has published specifications for specific items, it is FAA policy that sponsors
must use the specifications as written, with no changes from the specifications, except where
explicitly allowed in the specification.
The sponsor must obtain an FAA modification to standards approval for any change that is not
specifically allowed, no matter how minor it may seem to the sponsor. This is necessary to
ensure an acceptable level of safety, capacity, efficiency, utility or access. Additionally, the
FAA review will ensure the proposed modification will not unduly limit competition, eliminate
FAA approved vendors, compromise statutory or regulatory requirements, or negatively impact
the project.
For AIP funding purposes, some modifications to FAA standards (such as those examples in
Table 3-16) will not be considered because they violate 2 CFR part 200 or deviate from FAA
design standards. The ADO or AAS-100 must not approve such requests for AIP funded
projects. However, in the event of a pre-existing nonstandard airfield configuration, AIP funds
may only be used to rehabilitate or reconstruct the affected airfield element if FAA has formally
approved a modification to standards or the airfield element is brought up to standards.
The current version of FAA Order 5300.1, Modifications to Agency Airport Design,
Construction, and Equipment Standards contains the requirements for modification to standards.
3-19
Table 3-16 Examples of Modifications of Standards that Must Not be Considered

for AIP Funded Projects
Examples include…
a. For cost saving only without regard to level of performance and safety as provided by FAA standards.
b. Standardization of equipment type.
c. Local preference.
d. Airfield lighting circuits that are not 6.6 amperes per current FAA standards.
3-24. Standards that Exceed those of the FAA.
FAA policy is that if the project meets the FAA standards, then the public need has been fully
met. Therefore, a project that is designed or built to a more rigorous standard is considered to
exceed FAA standards. Except in limited circumstances for select projects as outlined in
Table 3-17, the ADO must not fund work exceeding FAA standards with AIP.
The ADO also has the option of allowing the sponsor to pay for the cost to exceed the FAA
standards if the procurement requirements in Paragraph 3-39 are met for inclusion of ineligible
and/or non-AIP work in a contract. Funding examples are provided in Table 3-18.
Per FAA policy, sponsors must obtain written ADO concurrence prior to either to designing or
bidding AIP funded projects that will include work that exceeds FAA standards. The ADO must
put a copy of their determination in the grant file.
Per FAA policy, if the ADO allows the sponsor to pay for the added cost of a project or
equipment, the sponsor is not allowed to use the bid process to determine the non-AIP costs.
Table 3-17 Limited Circumstances Where Work Exceeding FAA Standards May
be Funded with AIP
The limited circumstances include…
a. Meeting a Local Standard. 49 USC § 47110(b)(1) gives the ADO the option to consider funding a
cost if the cost is necessary to allow the project to proceed. Therefore, if there is added cost to meet
a local permitting standard, the ADO has the option to consider funding the added cost.
3-20
Table 3-17 Limited Circumstances Where Work Exceeding FAA Standards May
be Funded with AIP
The limited circumstances include…
b. Rehabilitating an Airfield Facility (or Piece of Equipment). The ADO has the option of funding a
project to rehabilitate (not reconstruct) an airfield facility (or piece of equipment) that exceeds FAA
standards if the project meets the following criteria.
(1) The project component is normally an eligible cost.
(2) The sponsor has demonstrated a continuing need for the existing facility or equipment. This can
either be based on past aeronautical activity or use, or to accommodate the aircraft of a current
tenant based at the airport.
(3) The ADO has determined that the added cost is reasonable compared to the benefit being
obtained. The ADO has the option to request a life cycle cost analysis, benefit-cost analysis, or
other applicable analysis to support this determination. Sponsor guidance on life cycle cost
analysis is discussed in Paragraph U-15 and sponsor guidance on benefit-cost analysis is
contained in the document titled FAA Airport Benefit-Cost Analysis Guidance (see Appendix B for
link).
Table 3-18 Funding Examples for Work Exceeding FAA Standards
If a sponsor requests… If the requirements of Table 3-17

have been met, the ADO has the
option to…
a. A project to construct a parallel taxiway at 400 feet from the Fund the added cost with AIP.
runway when the FAA standard (based on the critical aircraft
and approach minimums) is 300 feet based. The extra costs
for normal site preparation and pavement construction (there
are no large extra expenses). In this case, no cost analysis
would be required because the FAA has already determined
that the long term benefit of locating the taxiway far
outweighs the potential cost of relocating the taxiway in the
future. This applies regardless of whether the airport shows
the need for the 400 feet within the 20 year planning period.
b. A project for reconstruction of a runway to a width wider or Allow the sponsor to pay for the
length longer than required by the critical aircraft. Because added cost if the procurement
the project is reconstruction, it is considered similar to requirements in Paragraph 3-39 are
construction of a new runway. met for inclusion of ineligible and/or
non-AIP work in a contract.
c. A project for rehabilitation or overlay of a runway or taxiway Fund all or a portion of the added cost
to a width wider or length longer than required by the current with AIP.
critical aircraft.
3-21
Table 3-18 Funding Examples for Work Exceeding FAA Standards
If a sponsor requests… If the requirements of Table 3-17

have been met, the ADO has the
option to…
d. A project for construction of a 75 foot wide taxiway when the Allow the sponsor to pay for the
justified width is 50 feet. This project is designed for a critical added cost if the procurement
aircraft that will not be met for five or more years. requirements in Paragraph 3-39 are
met for inclusion of ineligible and/or
e. A project for construction of a 75 foot wide taxiway when the Fund the added cost with AIP.
justified width is 50 feet. This project is designed for a critical
aircraft that the ADO has determined will be met within five
years.
f. An apron construction project that includes fire hydrant Fund the added cost with AIP.
installation that is required to receive a building permit
determined that the cost of the fire hydrant installation is
necessary to allow the project to proceed.
g. A project that has an extended warranty period of 36 Allow the sponsor to pay for the
months, and the FAA standard is 12 months. added cost if the procurement
requirements in Paragraph 3-39 are
met for inclusion of ineligible and/or
h. A project to rehabilitate an ARFF building that includes a Allow the sponsor to pay for the
weight training room that requires the ventilation system in added cost if the procurement
the building be replaced. The weight training room is not requirements in Paragraph 3-39 are
required by FAA standards. The ADO has determined the met for inclusion of ineligible and/or
weight training room and the ventilation system are ineligible non-AIP work in a contract.
costs.
i. A project to rehabilitate an ARFF vehicle that is larger than Fund the added cost with AIP.
required by 14 CFR part 139 index. The ADO has
determined that rehabilitation of the larger ARFF vehicle is
less expensive than acquiring a new vehicle that is correctly
sized.
j. A project to remove obstructions, including land acquisition, Allow the sponsor to pay for the
to meet the clearance requirements for an approach additional costs, including the costs of
category that is greater than the aircraft category (for the land acquisition. AIP cannot be
example clearing to C standards where the airport is used for the additional land or
designated as a B-II airport on its ALP for the entire planning clearing because the work is not
period.) necessary.
3-22
3-25. Eligibility Differences between the Handbook and the Advisory Circulars.
Advisory circulars are written to cover a broad range of airport design, construction, and
equipment standards. There are recommendations in many advisory circulars that exceed what is
justified under AIP. However, just because an item is discussed in an advisory circular, this does
not make it eligible or justified. This Handbook, not the advisory circular, provides the guidance
for determining eligibility and justification for any project that is AIP funded.
3-26. Approval and Use of State Standards.
Per 49 USC § 47105(c), a sponsor may request to use state standards for nonprimary airport
development that are different from FAA standards. Per 49 USC § 47114(d)(5), a sponsor may
also request to use state highway construction and material specifications for full strength airfield
pavement construction at a nonprimary airport. The requirements for these two uses of state
standards are different, and are discussed in detail in the current version of Advisory Circular
150/5100-13, Development of State Standards for Nonprimary Airports.
In order for the ADO issue grants using any type of state standards on a project in the grant, the
requirements in Table 3-19 must be met.
Table 3-19 Requirements for the Use of State Standards
In order for an ADO to permit the use of state standards on an AIP funded project, the following
requirements must be met…
a. Modification to Standard Approved. AAS-1 must have approved the modification to standards
according to the current version of FAA Order 5300.1, Modifications to Agency Airport Design
Construction and Equipment Standards prior to the ADO issuing the grant. The ADO must put a copy
of the written determination (or a reference to the location of the electronic determination) in the grant
file.
b. Advisory Circular Requirements Met. The sponsor’s request for use of the modification to
standards must comply with all requirements contained in the current version of Advisory Circular
150/5100-13, Development of State Standards for Nonprimary Airports.
c. Additional Restriction #1 for Airfield Pavement Built Using State Highway Specifications Met.
Per 49 USC § 47114(d)(5)(A), the runway cannot currently be greater than 5,000 feet or currently be
serving aircraft that are greater than 60,000 pounds gross weight.
(1) For those airports where all runways meet the 5,000 feet or less criteria, the sponsor may
consider the use of state highway standards for all eligible airfield pavement.
(2) For those airports with multiple runways, some of which exceed the 5,000-runway length
limitation, the sponsor may only consider the use of state highway standards for airfield pavement
exclusively serving a runway with a length of 5,000 feet or less and for apron and taxilanes that
only serve aircraft less than 60,000 pounds gross weight.
d. Additional Restriction #2 for Airfield Pavement Built Using State Highway Specifications Met.
Per 49 USC § 47114(d)(5)(A), the life of the pavement must not be less than the life of the pavement
built using FAA standards. However, for funding purposes, AIP can only be used to fund to the life
required by the FAA standards, which is 20 years.
3-23
Table 3-19 Requirements for the Use of State Standards
In order for an ADO to permit the use of state standards on an AIP funded project, the following
requirements must be met…
e. Additional Restriction #3 for Airfield Pavement Built Using State Highway Specifications Met.
Per 49 USC § 47114(d)(5)(B), the ADO must not issue another AIP grant to rehabilitate or reconstruct
the airfield pavement for a period of 10 years after the pavement construction is completed. The only
exception to this requirement is if AAS-1 has determined rehabilitation or reconstruction is required
for safety reasons.
f. Additional Restriction #4 for Airfield Pavement Built Using State Highway Specifications Met.
Because 49 USC § 47114(d)(5)(A) limits the runway length and aircraft weight, the airport layout plan
must not show a future extension (in the 20 year planning period) that will result in a runway greater
than 5,000 feet or serve aircraft that are greater than 60,000 pounds gross weight.
3-27. Projects with No FAA Standard.
Some eligible projects have no corresponding FAA standards, procedures, policy, plans, and/or
specification.
The ADO must contact APP-520 for assistance on project eligibility and AAS-100/300 to obtain
the FAA standards and requirements for the project. Until the FAA standard is published,
APP-520 will provide eligibility of these projects and AAS-100/300 will provide the standards to
which the project must be constructed on a case-by-case basis.
In some cases, the FAA has specifically adopted the standards of another Federal agency or of an
industry group. The ADO can obtain a current list of these adopted standards from
AAS-100/300 and APP-520.
3-28. ADO Review of Plans and Specifications.
Sponsors must prepare plans and specifications to meet FAA standards as discussed in this
section of the Handbook. In addition, sponsors are required to prepare an engineer’s report that
contains the information in Table 3-20. The ADO must follow the FAA policy for reviewing
plans and specifications outlined in the latest version of the Implementation Plan for FAA
Review of Construction Plans and Specifications for AIP Funded Projects memorandum issued
by AAS-1.
If the ADO reviews the plans and specifications and engineer’s report, the ADO is not required
to issue an approval. Instead, the ADO has the option to provide comments to the sponsor. In
reviewing the plans and specifications and engineer’s report, the ADO also has the option to
request input from affected FAA lines of business. If the ADO provides a written response, the
ADO must file a copy of the response (or a reference to the location of the electronic
determination) in the grant file. The ADO must not fund any project the ADO has determined
does not meet FAA standards.
3-24
The FAA’s review of a sponsor’s plans or specifications is for the benefit of the FAA. This
review is not intended to relieve the sponsor of their responsibility to fully comply with AIP
requirements and does not represent approval of the plans or specifications.
In addition, sponsor certification of plans and specifications does not relieve the sponsor of the
requirement to obtain prior FAA approval for modifications to standards or to notify the ADO of
any limitations to competition within the project.
Table 3-20 Required Content for Engineer’s Reports
Engineer’s reports must include…
a. Design Computations. The report must include a summary of the design computations used in the
design of major development items. The sponsor is required to include pavement design information
by either submitting FAA Form 5100-1, Airport Pavement Design or by submitting the first page of this
form with the FAARFIELD design results. A summary of computations and a description of the
method used to conduct the drainage design must be presented. Earthwork cross-sections and
mathematical calculations for designs are not required to be included in the design report unless
requested by the ADO.
b. Selections of Design Materials and Equipment and Proposed Modifications to Standards. The
engineer’s choices and recommended modifications will, in most cases, be influenced by service
records for comparable construction and by cost comparisons. The report must include concise
statements and cost comparisons that justify selections made and the proposed modifications to
standards proposed in the project. The current version of FAA Order 5300.1, Approval Level for
Modification of Agency Airport Design and Construction Standards, provides additional information on
modifications to design and construction standards.
c. Sole-Source, Proprietary, or other Competition-Limiting Specifications or Design Elements.

The report must list all such items, including the reason for the limitation, impacts of limiting
competition, and the benefits to the Federal government for the proposal.
d. Other Elements. The report must outline related project work elements to be done without AIP
assistance, including details on how the work is to be accomplished, and how it relates to the AIP
work. Work to be done by utility companies must be described in sufficient detail to verify adequate
funding for the work.
e. Support Data. The report must also include supporting data and itemized project cost estimates with
source information. Any unique circumstances that may influence adjustments of existing project cost
estimates must be explained.
Section 10. Project Procured Correctly.
3-29. Importance of 2 CFR §§ 200.317-200.326 (Formerly 49 CFR § 18.36).
Sponsors must follow 2 CFR §§ 200.317-200.326 when making procurements under an AIP
grant. This regulation contains the policies and procedures for AIP project actions such as
construction, equipment purchases, and selection for professional services. If a sponsor fails to
3-25
meet any of the procurement requirements for their AIP funded project, it may result in the ADO
determining a normally allowable cost to be unallowable.
3-30. Sponsor Procurement Requirements.
The sponsor, not the ADO, is responsible for meeting all procurement requirements. The
sponsor establishes, enforces, and administers the contract agreements and is responsible for all
contractual matters, including evaluation and award of contract, resolution of claims and
disputes, and settlement of litigation issues. The ADO is not a party to the contracts that a
sponsor executes under an AIP grant.
Per 2 CFR § 200.318(k), the ADO cannot substitute their judgment for the sponsor unless the
matter is primarily a Federal concern. However, the ADO still has a defined role in procurement
oversight per 2 CFR §§ 200.317-200.326 as further defined in this chapter.
Sponsor procurement requirements are discussed in more detail in Appendix U.
3-31. Summary Table of Mandatory/Optional ADO Procurement Review.
There are only certain situations where the ADO is required by 2 CFR §§ 200.317-200.326 to
review the sponsor’s procurement process. Otherwise, 2 CFR § 200.324(c)(2) allows the ADO
to accept sponsor certification that the sponsor is following 2 CFR §§ 200.317-200.326. This
certification is included in the grant assurances signed by the sponsor and therefore, no
additional action is required by the ADO.
There are also certain situations where FAA policy or legislation requires the ADO to review the
sponsor’s procurement process. Table 3-21 contains a summary of the mandatory and optional
ADO procurement review responsibilities. The ADO always has the option of reviewing any
sponsor procurement documents and systems at any time during the grant process.
Table 3-21 Summary Table of Mandatory/Optional ADO Procurement Review
For the following situation… ADO review is… The associated And the
2 CFR §§ 200.317-200.326 requirements
general reference is… are in
Paragraph…
a. Bid Protests and Appeals. Mandatory (but limited 2 CFR § 200.318(k) 3-32
in nature)
b. Procurement Protests and Mandatory (but limited 2 CFR § 200.318(k) 3-33

Appeals after the Contract in nature)
Award.
c. Bonding that Does Not Mandatory (or can rely 2 CFR § 200.325 3-34
Meet the Minimum on sponsor’s written
Requirements. assurance)
3-26
Paragraph…
d. Noncompetitive Proposals Mandatory 2 CFR § 200.320(f) 3-35

(Including Sole Source and
Inadequate Number of
Qualified Sources).
e. Limited Noncompetitive Mandatory (for 2 CFR § 200.320(f) 3-36

Proposal Situations prohibited LED Lighting (N/A for prohibited LED
(ALCMS Modifications, the notification review is lighting)
One Manufacturer, mandatory and review
Sponsor Preferred, of the procurement
Prohibited LED Lighting). documents is optional)
f. Change Orders, Mandatory (but not 2 CFR § 200.320(f) 3-37

Supplemental required until the ADO
Agreements, and Contract is issuing an
Modifications. amendment or closing
the grant)
g. Contract Clauses and Optional (ADO 2 CFR § 200.326 3-38

Contract Provisions responsibility is limited
Required for AIP Grants. to notifying new
sponsors of
requirements)
h. Contracts Containing Mandatory N/A 3-39

Ineligible and/or Non-AIP
Funded Work.
i. Contracts Containing Mandatory 2 CFR § 200.319 3-40

Requirements that May
Reduce the Number of
Potential Bidders.
j. Contracts Containing Work Mandatory N/A 3-41

that Exceeds FAA
Standards.
k. Consultant Contracts Optional with Sponsor 2 CFR § 200.320(d) 3-42

(Qualifications Based with Certification (unless
Negotiated Price). sponsor deviates from
requirements, then
mandatory)
l. Design-Build and Mandatory 2 CFR § 200.320(d) 3-43

Construction Manager-at-
Risk Contracts.
3-27
Paragraph…
m. Engineering Materials Mandatory 2 CFR § 200.320(d) 3-44

Arrestor System (EMAS).
n. Bid Alternates (Including Optional with Sponsor 2 CFR § 200.320(c) 3-45

Life Cycle Cost Analysis Certification
Alternates) and Bid
Additives.
o. Bidding Asphalt and Optional with Sponsor 2 CFR § 200.320(c) 3-46

Concrete Alternates. Certification
p. Buy American Mandatory (if a waiver N/A 3-47

Requirements is required)
q. DOT Office of Inspector Mandatory N/A 3-48

General (OIG) Notification
of Potential
Procurement/Bid
Improprieties.
r. Escalator Clauses Mandatory N/A 3-49
s. Plans and Specifications As required in “Plans 2 CFR § 200.324(a) 3-50

Review. and Specifications
Review Implementation
Memorandum”
published by FAA
Office of Airport Safety
and Standards.
t. Pre-award Review of Optional with Sponsor 2 CFR § 200.324(b) 3-51

Contracts. Certification
u. Sponsor’s Procurement Optional with Sponsor 2 CFR § 200.324(c) 3-52

System. Certification
v. Force Account Work. Mandatory N/A 3-53
w. Value Engineering. Mandatory 2 CFR § 200.318(g) 3-54
x. Indefinite Delivery (Task Mandatory N/A 3-55

Orders) Extensions for
Construction Services.
3-28
Paragraph…
y. Indefinite Delivery (Task Mandatory N/A 3-56

Orders) Extensions for
Consultant Services..
z. Suspension or Debarment Optional with Sponsor 2 CFR part 180 and 3-57
of Persons or Companies. Certification (mandatory 2 CFR part 1200
if a problem is
identified)
3-32. Bid Protests and Appeals.
The sponsor requirements for bid protests and appeals is contained in 2 CFR § 200.318(k) (see
Paragraph U-10). Table 3-22 contains the ADO specific review requirements. Many bid
protests result from a sponsor’s improper modification of project specifications or solicitation
package to include a sponsor’s preference. In those situations, the ADO must not rely on the
sponsor to resolve the protest, but must treat the protest as a Federal concern. Table 3-23
contains additional requirements for bid protests that are a Federal concern.
Table 3-22 ADO Review Requirements for Bid Protest and Appeals
The following applies…
a. Protest Sent Directly to the FAA by the Protester. If a protest is sent directly to the FAA, the FAA
must send a copy of the protest to the sponsor per FAA policy. The ADO must notify the protester
that the protest has been forwarded to the sponsor and they must deal directly with the sponsor. In
addition, the ADO must request the sponsor to send a copy of the sponsor’s protest procedures to the
ADO. Per 2 CFR § 200.318(k), the sponsor is responsible for handling bid complaints and protests.
The ADO’s review responsibility at this point is limited to a cursory review of the protest to determine
if there is a Federal concern and establishing that the sponsor has protest procedures in place. If
there is a Federal concern, the ADO must notify the sponsor and request the sponsor immediately
send a copy of the sponsor’s proposed resolution. The ADO must not issue AIP funding until the
ADO is satisfied the sponsor resolved the issue and correctly addressed any Federal concerns.
b. Copies of Protests Sent to the ADO by the Sponsor. After the sponsor’s mandatory and timely
submittal of the bid protests and a copy of the sponsor protest procedures to the ADO, the ADO’s
review responsibility at this point is limited to scanning the protest to determine if there is a Federal
concern and establishing that the sponsor has protest procedures in place.
3-29
Table 3-22 ADO Review Requirements for Bid Protest and Appeals
c. Protests that are a Federal Concern. 2 CFR § 200.318(k) cautions that the Federal agencies (the
ADO) not substitute their judgment for that of the sponsor unless the matter is a Federal concern. If
there is a Federal concern, the ADO must notify the sponsor and request a resolution. The ADO
must not issue AIP funding until the ADO is convinced the sponsor resolved the issue and correctly
addressed any Federal concerns.
d. Cancelation of Prior Approval or Sponsor Certification. The receipt of the bid protest
automatically cancels the ADO approval of the plans and specification or acceptance of the sponsor’s
certification.
e. Restrictions on AIP Funding Pending Resolution. The ADO must not issue AIP funding until the
ADO has received the sponsor’s written notification of how the issue was resolved and the ADO is
satisfied the sponsor resolved the issue and correctly addressed any Federal concerns. By issuing
the associated grant, the ADO is documenting their determination that the bid protest has been
resolved.
f. Protester Appeals. Per FAA policy, a protester may pursue a protest with the Federal agency after
exhausting all administrative remedies with the sponsor. Before taking any action, the ADO must
have conducted a cursory review of the protest to determine if there is a Federal concern and
established whether the sponsor has protest procedures in place. The ADO has the option to
respond to the protester, but is not required to by 2 CFR §§ 200.317-200.326.
Table 3-23 Additional Actions for Bid Protests that are a Federal Concern
a. Determining a Federal Concern. Federal concerns include violation of Federal law or regulations. It
includes allegations that the project plans or specifications have been altered to give preference to a
manufacturer, to exclude a product, or otherwise limit competition. This is because limiting
competition may violate 2 CFR § 200.319. Modification of specifications without receiving an FAA
Modification of Standards is also a Federal concern.
b. Copies of Redlined Specifications and Solicitation Package Sent to the ADO by the Sponsor.
The sponsor must send the ADO a copy of the as-bid specifications and the complete solicitation
package, detailing where changes to the FAA standard specification have been made and which
aspects of the solicitation are being protested.
c. Protests that Must Be Forwarded. If the bid protest involves another FAA line of business, such as
the FAA Office of Civil Rights, the ADO must forward all documentation regarding the protest to the
affected office. The ADO must notify the sponsor of the transfer and must advise the sponsor that the
ADO will not issue AIP funding until the issue is resolved.
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Table 3-23 Additional Actions for Bid Protests that are a Federal Concern
d. Cancelation or Rebidding a Project. If the ADO determines that the protest was a result of
improper modification of the specifications or an otherwise defective solicitation package, the ADO
must advise the sponsor that additional costs incurred fixing the package and soliciting the project are
not eligible for reimbursement.
e. Documenting ADO Actions. Where the bid protest is a Federal concern, the ADO must document
steps in the grant file that the ADO takes to ensure that the sponsor properly resolves the protest.
3-33. Procurement Protests and Appeals after the Contract Award.
The ADO review requirements for protest and appeals that occur after the contract is awarded is
the same as the requirements for bid protests and appeals in Paragraph 3-32. However, since the
project may already be under grant, the ADO must notify the sponsor that the sponsor must not
request payments for the disputed costs.
3-34. Bonding that Does Not Meet the Minimum Requirements.
The sponsor requirements for bonding are contained in 2 CFR § 200.325 (see Paragraph U-23).
Table 3-24 contains the ADO specific review requirements for bonding that does not meet the
minimum requirements in 2 CFR § 200.325.
Table 3-24 ADO Review Requirements for Bonding that Does Not Meet the
Minimum Requirements
For… The following applies…
a. Bonding that Does The ADO is allowed to rely on the sponsor’s written assurance that the Federal
Not Meet the interests are adequately protected under the proposed bonding method. As
Minimum long as the ADO has not issued a written negative determination, it is implicitly
Requirements. implied that the ADO has issued a favorable determination for all future
procurement actions using the proposed bonding method.
b. Combined Payment The ADO is allowed to rely on the sponsor’s written assurance that the Federal
and Performance interests are adequately protected under the combined payment and
Bonds. performance bonding proposal. As long as the ADO has not issued a written
negative determination, it is implicitly implied that the ADO has issued a
favorable determination for all future procurement actions using the proposed
bonding method.
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3-35. Noncompetitive Proposals (Including Sole Source and Inadequate Number of

Qualified Sources).
Sponsors are only allowed to use a noncompetitive procurement process for the limited
circumstances outlined in 2 CFR § 200.320(f) (see Paragraph U-18). Some special
noncompetitive proposal situations and their associated requirements are included in
Paragraph 3-36.
Per FAA policy, the ADO must not issue a grant that includes noncompetitive proposals unless
the ADO has reviewed the proposal and concurs that the requirements of 2 CFR § 200.320(f)
have been met (see Paragraph U-18). The exception is for change orders, supplemental
agreements, and contract modifications, which are discussed in Paragraph 5-35.
Except as otherwise noted in this section, the ADO has the option to document their concurrence
either by notifying the sponsor in writing (with a copy to the grant file) or issuing the grant.
3-36. Limited Noncompetitive Proposal Situations (ALCMS Modifications, One

Manufacturer, Sponsor Preferred, Prohibited LED Lighting).
Some limited noncompetitive proposal situations and their associated requirements are included
in Table 3-25. These requirements are in addition to those in Paragraph 3-35.
Table 3-25 Procurement Rules for Limited Noncompetitive Proposal Situations
For the following limited The following applies…

noncompetitive situation…
a. Airfield Lighting Control (1) Only for ALCMS Modifications. The following requirements only
and Monitoring System apply to ALCMS modifications. Sponsors must competitively procure
(ALCMS) Modifications new ALCMS installations.
(2) Separation into a Noncompetitive Procurement. There are very
specific requirements to separate the procurement into a separate
noncompetitive procurement. Theses sponsor procurement
requirements are contained in Paragraph U-18.
(3) ADO Review of Sponsor Notification. The ADO must review the
sponsor notification to verify if all of the requirements in Paragraph U-
18 have been met. It is not necessary for the ADO to acknowledge
the sponsor’s notification.
(4) Filing of Sponsor Notification. The ADO must keep a copy of the
sponsor’s notification and any ADO acknowledgement in the grant
file.
(5) Equipment and/or Installation Eligibility. The eligibility for the
purchase and/or installation of this equipment is contained in
Paragraph 3-93.
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b. Certified Airfield Lighting (1) Separation into a Noncompetitive Procurement. There are very
Equipment with Only specific requirements to separate the procurement into a separate
One Manufacturer noncompetitive procurement. Theses sponsor procurement
requirements are contained in Paragraph U-18.
file.
Paragraph 3-93.
c. Sponsor Preferred (1) Separation into a Noncompetitive Procurement. There are very
Airfield Lighting specific requirements to separate the procurement into a separate
Equipment noncompetitive procurement. Theses sponsor procurement
requirements are contained in Paragraph U-18
file.
(4) Installation Eligibility. The eligibility for the purchase and/or
installation of this equipment is contained in Paragraph 3-93.
(5) Not Force Account. The ADO must not consider this situation as
equivalent to sponsor force account or donated materials.
(6) Cannot be Used for Sponsor’s Share. Sponsors are prohibited
from using the costs of sponsor-preferred airfield lighting equipment
as part of the sponsor’s share of a grant.
(7) Limited to Airfield Lighting Equipment. By FAA policy, the use of
AIP for certain costs associated with the use of non-AIP funded
sponsor furnished equipment is limited to a sponsor’s preferred
airfield lighting manufacturer’s equipment.
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d. Certified Airfield Light (1) Prohibited Equipment. The list of LED lighting that is prohibited
Emitting Diode (LED) from AIP funding is included in Paragraph C-2.
Lighting Equipment that
is Prohibited from AIP
sponsor notification to verify separation of prohibited LED lighting
Funding
procurement from AIP funded procurement per Paragraph U-7. It is
not necessary for the ADO to acknowledge the sponsor’s notification.
file.
(4) ADO Review of Sponsor Procurement Documents. The ADO has
the option to review the sponsor’s procurement documents on AIP
funded projects to validate that the sponsor has separated AIP
funded procurement and prohibited LED lighting procurement.
Paragraph 3-93.
3-37. Change Orders, Supplemental Agreements, and Contract Modifications.
The requirements for change orders, supplemental agreements, and contract modifications are
contained in Paragraph 5-35.
3-38. Contract Clauses and Contract Provisions Required for AIP Grants.
The sponsor requirements for AIP required contract clauses and provisions are contained in
Appendix II of 2 CFR part 200 (as referenced in 2 CFR § 200.326) as well as other regulations
and statutes (see Paragraph U-24). The ADO responsibility is limited to making sure that new
sponsors are aware of these requirements.
3-39. Contracts Containing Ineligible and/or Non-AIP Funded Work (Including

Proration).
The sponsor requirements for contracts containing ineligible and/or non-AIP funded work
(including how to determine the low bidder) are contained in Paragraph U-12. Table 3-26
contains the ADO specific review requirements.
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Table 3-26 ADO Review Requirements for Contracts Containing Ineligible or Non-
AIP Funded Work
For… The following applies…
a. Contracts Containing It is FAA policy that a sponsor must not combine ineligible work and/or
Ineligible Work or Work non-AIP funded work within the same contract unless the sponsor
not Funded with AIP provides a compelling reason documenting that it is in the Federal
governments best interest to the ADO and the ADO has concurred with
the sponsor’s request in writing.
Examples of situations that may be in the best interest of the Federal
government are included in Table 3-27. The FAA does not consider the
fact that including ineligible of non-AIP funded work is at no additional
cost to the Federal government to be a benefit to the Federal government.
b. ADO Concurrence In order to concur with the sponsor’s request, the ADO must determine
that including the work is in the best interest of the Federal government,
and that this will not result in an increase to the cost of the AIP funded
work and that the cost of ineligible and/or non-AIP funded work can be
easily identified. This is because 2 CFR § 200.302(a) requires that the
ADO know what was paid for under the grant. The ADO must put a copy
of their determination in the grant file.
If the field of potential bidders will be reduced by the inclusion of the
ineligible or non-AIP funded work, this may reduce competition and affect
the cost. Therefore, the ADO cannot conclusively determine that there
will be no increase in cost. Paragraph 3-40 includes examples of where
potential bidders may be reduced.
c. ADO Determination of The ineligible and/or non-AIP funded work must be clearly separated from
Federal Participation the AIP funded work. This is the preferred method for the ADO to
determine Federal participation. If the ADO determines the ineligible
and/or non-AIP funded cannot be feasibly separated from the AIP funded
work, the ADO can prorate the work to determine Federal participation.
Example of Prorating: A project will extend an off-airport drainage box
culvert through the airport. This box culvert will also serve the
neighborhood adjacent to the airport. The airfield runoff is 25 acres and
the neighborhood runoff is 75 acres. The eligible Federal participation
would be one fourth (25 acres divided by 100 acres) of the total cost to
extend the culvert through the airport (including associated design,
inspection, etc.).
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Table 3-27 Examples of Being in the Federal Government’s Best Interest
Examples include…
a. The inclusion of ineligible and or non-AIP work will result in an overall reduction in the amount of
construction workers and vehicles on the airfield. This is of benefit to the FAA because it reduces the
potential risk of runway incursions.
b. The inclusion of ineligible and or non-AIP work will result in the runway being closed for construction
for a significantly shorter period of time. This is of benefit to the FAA because it maintains system
capacity.
c. The inclusion of a significant amount of non-AIP pavement will reduce the overall unit cost of the
pavement, thus reducing the AIP project costs.
d. The inclusion of the ineligible portion of a hydrant fueling system in an AIP funded apron project that
includes hydrant fueling pits will allow a functioning fueling system to be completed.
3-40. Contracts Containing Requirements that May Reduce the Number of Potential
Bidders.
Per 2 CFR § 200.319, sponsor solicitations of AIP funded projects must not unduly restrict
competition. It is FAA policy that a sponsor must not include requirements that reduce the
number of potential bidders unless the sponsor must provide a compelling reason to the ADO
and the ADO has concurred with the sponsor’s request in writing. Table 3-28 contains examples
where the number of potential bidders may be reduced.
Table 3-28 Examples Where the Number of Potential Bidders May be Reduced
Examples include…
a. A project that has a warranty requirement to store spare parts in a manufacturer’s warehouse within
15 miles of the airport that has been in operation for at least one year.
b. A project specifying highway compliant snow removal equipment.
c. An ARFF vehicle that is required to be equipped with specialized extraction equipment that is only
available as standard equipment on one manufacturer’s vehicles.
d. A requirement for equipment to support remote maintenance monitoring.
3-41. Contracts Containing Work that Exceeds FAA Standards.
It is FAA policy that a sponsor must not include work that exceeds FAA standards in a contract
unless the sponsor provides a compelling reason to the ADO and the ADO has concurred with
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the sponsor’s request in writing. The requirements for ADO concurrence (as well as the
associated funding rules) are contained in Paragraph 3-24.
3-42. Consultant Contracts (Qualifications Based with Negotiated Price).
The sponsor requirements for competitive proposals (which includes consultant contracts) are
contained in 2 CFR § 200.320(d) (see Paragraph U-16). 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 listed in Table 3-29.
The ADO review of procurement of these types of proposals is optional if the sponsor has
submitted the associated sponsor certification.
However, if the sponsor is proposing to deviate from the sponsor procurement requirements per
the above advisory circular, the ADO must not issue the associated grant unless the ADO has
reviewed the contract and concurs with the deviations. The ADO has the option to document
their concurrence either by notifying the sponsor in writing (with a copy to the grant file) or
issuing the grant.
Table 3-29 Unique Consultant Contract Methods
Some unique contract methods include…
a. Retainers
b. Cost-plus-a-fixed-fee
c. Cost-plus-a-percentage-of-cost (note that is prohibited by 2 CFR § 200.323(d) and must not be used)
d. Indefinite delivery (also called task orders and work authorizations)
3-43. Design-Build and Construction Manager-at-Risk Contracts.
The sponsor procurement requirements for these types of competitive proposals are contained in
Paragraph U-16.
Mandatory ADO pre-review and concurrence with the sponsor’s use of design-build proposal for
AIP funded projects is based on requirements found in 49 USC § 47142(a)(2). ADO pre-review
and concurrence is also required by FAA policy for any AIP-funded project where construction
manager at risk or other competitive proposal methods that involve selection based on factors
other than price are proposed.
In order for the ADO to concur with the proposal, the ADO must be satisfied that the
requirements of 2 CFR § 200.320(d) have been met (see Paragraph U-16) prior to the sponsor
awarding the contract.
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The ADO documents their concurrence by issuing the grant.
3-44. Engineering Materials Arrestor System (EMAS).
Prior to April 2012, there was only one manufacturer whose product met 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 Change 1 of this Handbook, two manufacturers
meet these requirements. Therefore, the sponsor must currently procure the EMAS project under
the competitive proposal procurement method per 2 CFR § 200.320(d) as discussed in
Paragraph U-16. If only one manufacturer responds to the Request for Information (RFI), then
the sponsor may proceed with noncompetitive procurement per 2 CFR § 200.320(f).
The competitive proposal procurement process for EMAS is outlined in Table 3-30. The ADO
has the option to contact AAS-100 or APP-500 for assistance.
For existing EMAS, if the Sponsor and ADO concur 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.
If the ADO determines that a bed must be retrofitted, the sponsor must determine whether the
bed can only be modified or retrofitted by the original vendor, and whether the cost benefit of
replacing the bed outweighs the cost benefit of retrofit.
Table 3-30 Typical Steps for an RSA Project with EMAS
An RSA project with EMAS will typically follow the following steps…
a. Frequently, the EMAS installation is only a part of a larger Runway Safety Area (RSA) project.
Therefore, the EMAS design is incorporated into the overall project. The EMAS Request for Proposal
(RFP) will require that the selected EMAS vendor work with the overall RSA design consultant to
incorporate the specific features of the selected EMAS into the overall RSA project.
b. The sponsor conceptually considers EMAS during the planning and environmental phase of the RSA
project, and selects a RSA design consultant (RSA designer).
c. The sponsor and RSA designer identify the requirement for EMAS. The requirements will include the
proposed RSA limits, the limits of the EMAS footprint, any navigational aids within the RSA and
nearby, and any unique surrounding elements that may be adversely affected by the size of the
EMAS bed exceeding a certain height, length or width.
d. The sponsor issues 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.
e. The sponsor prepares the preliminary design and a Request for Proposal (RFP) that is used to select
the EMAS vendor.
f. The sponsor coordinates the RFP package with the ADO.
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Table 3-30 Typical Steps for an RSA Project with EMAS
An RSA project with EMAS will typically follow the following steps…
g. After receiving ADO concurrence with the RFP package, sponsor completes the RFP process, and
selects an EMAS vendor.
h. Prior to the sponsor’s final selection and award, the ADO has the option to review the sponsor’s
evaluation and rating.
i. The sponsor, RSA designer, general contractor and EMAS vendor complete the RSA design and
construction.
3-45. Bid Alternates (Including Life Cycle Cost Analysis Alternates) and Bid Additives.
The sponsor requirements for contracts containing bid alternates (including the use of life cycle
cost analysis) and additives are contained in Paragraph U-15. The ADO has the option to request
and review the bid package to ensure that the sponsor has correctly established how the award
will be made within the bid package (commonly referred to as the basis for award). Otherwise,
the ADO has the option to accept sponsor certification.
The ADO has the option to document their determination either by notifying the sponsor in
writing (with a copy to the grant file) or issuing the grant.
3-46. Bidding Asphalt and Concrete Alternates.
Bidding of both asphalt and concrete options is an example of the use of bid alternates, therefore,
the requirements in Paragraph 3-45 apply.
A sponsor has the option to design and bid both asphalt and concrete alternatives for a project.
However, only one design is normally allowable (the selected option). Design costs of the non-
selected option are limited to the lesser of 1) the difference in the bid schedule amounts between
the selected and non-selected low bidders and 2) the non-selected option design costs. The
design contract must clearly delineate the design costs of the two alternatives.
If the life cycle cost analysis and selection of the pavement structure is conducted at the
conceptual 30 percent design stage, the above funding restrictions on the design do not apply.
3-47. 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.
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3-48. DOT Office of Inspector General (OIG) Notification of Potential Procurement/Bid

Improprieties.
The ADO must contact the OIG through the DOT OIG hotline (see Appendix B for link) if they
suspect any of the activities listed in Table 3-31 on an AIP project. As of January 2015, the
ADO is no longer required to notify OIG in every instance where there are insufficient bidders,
only where the ADO suspects inappropriate activity.
Insufficient bidders were previously defined as either a) five or fewer bidders on a construction
project where the low bid was greater than the engineer’s estimate and the bid was $500,000 or
more or b) there was only a single bidder on a construction contract and the bid was $250,000 or
more. This former notification requirement had been implemented based on a 1983 OIG finding
and a subsequent meeting between the OIG and the FAA Office of Airports. The 1983 values
were adjusted for inflation by the FAA.
The ADO can find more discussion on contract fraud in a paper called Suggestions for the
Detection and Prevention of Construction Contract Bid Rigging (see Appendix B for link).
Table 3-31 Circumstances Requiring OIG Notification
ADO must contact the OIG if they suspect any of the following on an AIP project...
a. Contract and Grant Fraud
b. Environmental, Health, and Safety Violations
c. Computer Crimes
d. Product Substitution and Suspect/Counterfeit Parts
e. Bribery, Kickbacks, and Gratuities
f. False Statements and False Claims
g. Conflicts of Interest and Ethics Violations
h. Travel Fraud
i. Theft or Abuse of Government Property
j. Violation(s) of Criminal Law and/or the Civil False Claims Act in Connection with a Federal Contract
k. Other Violations of Federal Laws and Regulations
The above requirement was originally implemented based on a 1983 OIG finding and a
subsequent meeting between the OIG and the FAA Office of Airports (the 1983 values have
been adjusted for inflation by the FAA). The ADO can find definitions and more discussion on
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bid rigging, collusion, and unbalanced bidding in a paper called Suggestions for the Detection
and Prevention of Construction Contract Bid Rigging (see Appendix B for link).
3-49. Escalator Clauses.
Per FAA policy, the FAA will not fund any costs in a contract that are subject to an escalator
clause unless specifically approved by APP-1. Generally, APP-1 has not approved AIP funding
for escalator clauses because AIP project grant amendments are limited by
49 USC § 47108(b)(3) and because the construction projects are usually of short duration.
Per FAA policy, sponsors must send their request to the ADO and obtain written APP-1 approval
before awarding contracts containing an escalator clause (see Paragraph U-21).
If APP-1 does not approve the sponsor’s request, the ADO has the option of allowing the
sponsor to keep the escalator clause in the contract as a non-AIP funded work item provided that
the requirements in Paragraph 3-39 are met.
The ADO must provide a copy of the written determination to the sponsor and place a copy in
the grant file.
3-50. Plans and Specifications Review.
Per 2 CFR § 200.324(a), the ADO has the option to review the sponsor’s technical specifications
(including plans and specifications, engineer’s report, and any other items within the
procurement package) at any time during the process. However, the FAA policy on ADO review
is discussed further in Paragraph 3-28.
3-51. Pre-award Review of Contracts.
2 CFR § 200.324(b) gives the ADO the option to conduct a pre-award review for the situations
contained in Table 3-32. Otherwise, the ADO has the option to accept sponsor certification.
It is FAA policy that sponsors notify the ADO when any of these situations exist. If the ADO
conducts the review, the ADO has the option to provide the sponsor with a written response
containing the ADO finding. If the ADO provides a written response, the ADO must file a copy
of the response in the grant file.
Table 3-32 Situations Where the ADO has the Option to Conduct a Pre-Award
Review
Situations include…
a. A sponsor’s procurement procedures or operation fails to comply with the procurement standards in
2 CFR §§ 200.317-200.326.
b. 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 bid or offer is received in response to a
solicitation.
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Table 3-32 Situations Where the ADO has the Option to Conduct a Pre-Award
Review
Situations include…
c. The procurement, which is expected to exceed the simplified acquisition threshold (provided in
Table U-7), specifies a brand name product.
d. The proposed award is more than the simplified acquisition threshold (provided in Table U-7) and is
to be awarded to other than the apparent low bidder under a sealed bid procurement.
e. A proposed contract modification changes the scope of a contract or increases the contract amount
by more than the simplified acquisition threshold (provided in Table U-7). Note that although the
ADO is not required to conduct a pre-award review, the ADO must conduct a review prior to the grant
being amended or closed as discussed in Paragraph 5-35.
3-52. Sponsor’s Procurement System.
Per 2 CFR § 200.324(c) (see Paragraph U-22), the ADO must review a sponsor’s procurement
system unless the sponsor has submitted a sponsor certification that the system meets the
requirements of 2 CFR §§ 200.317-200.326.
If the ADO must conduct a review, the ADO has the option to provide the sponsor with a written
response containing the ADO findings and/or keep a copy available for future reference.
3-53. Force Account Work.
Sponsor force account work is planning, engineering, or construction work done by the sponsor’s
employees. Unlike other such work, it is done without the benefit of a construction or consultant
contract obtained through the normal procurement process rules in 2 CFR §§ 200.317-200.326.
Force account work is allowable per 2 CFR part 200 Subpart E (OMB Circular A-87, Cost
Principles for State, Local, and Indian Tribal Governments).
Per FAA policy, in order for the sponsor to use force account work, the sponsor must request the
use of force account work in writing and the ADO must have approved the request in advance of
the grant offer. In addition, it is in the best interest of the sponsor to obtain ADO approval prior
to the sponsor starting the work to ensure that the work is allowable. The sponsor’s written
request must meet the requirements in Table 3-33.
Per FAA policy, the sponsor must provide the ADO with detailed documentation of all force
account costs incurred as outlined in Table 3-34. In addition, the sponsor must follow the
additional requirements in Table 3-35. The ADO must provide a copy of the written
determination to the sponsor and place a copy in the grant file.
The ADO must not approve the use of force account for environmental work if the FAA is
responsible for performing or procuring the work per the current version of FAA Order 5050.4,
National Environmental Policy Act (NEPA) Implementing Instructions for Airport Projects.
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Table 3-33 Sponsor Force Account Submittal Requirements
Sponsors must include the following in their written request…
a. Project Scope. The sponsor must provide adequate details showing the nature and extent of the
work to be performed using force account.
b. Justification. The sponsor must provide justification for doing the work by force account rather than
by contract. The sponsor must clearly show that the benefits, including benefits to the Federal
government, of using force account override the Federal policy of competitive bidding or negotiated
contracts.
c. Personnel Qualifications. The sponsor must provide information on the ability of their personnel to
perform the force account work.
d. Detailed Cost Estimate. The sponsor must provide estimate of costs, including wage rates, non-
salary expenses, indirect costs, and comparison of costs between the sponsor’s force account and
normal procurement methods.
e. Sponsor’s Resources. The sponsor must provide information on sponsor’s resources (labor,
material, equipment, and financing) and workload as they affect capacity to do the work, date by
which the work will be complete, or dates within which the work will take place. Enough funds must be
available to the sponsor to carry payrolls and any necessary purchases of materials and rental
equipment.
f. Cost Analysis. The sponsor must prepare a cost analysis per 2 CFR § 200.323 (see Paragraph U-
21) and submit a copy to the ADO. The cost analysis can be used by the ADO to determine is the
costs are reasonable.
Table 3-34 Sponsor Force Account Documentation Requirements
Sponsors must document actual costs as follows…
a. Personnel. Because sponsor employees often work on multiple projects, or on activities outside the
project in the AIP grant, sponsors must submit timesheets (or a suitable report from an automated
payroll accounting system) to the ADO to support these salaries and wages. A sponsor must base
their charges upon actual payroll information documented under their agency’s generally accepted
practice. This payroll information must be reviewed and approved by the sponsor’s responsible
official. The timesheets must properly document all of the hours worked by the employees,
regardless if they were on the AIP project or not. These above requirements are discussed in more
detail in 2 CFR § 200.430 (Attachment B, Paragraph 8, of OMB Circular A-87, Cost Principles for
State, Local, and Indian Tribal Governments). The expense must be directly related to the AIP
project. Arbitrary or prorated costs are not allowable.
b. Equipment. Equipment rental rates applicable to the construction on force account development vary
widely. It is recommended that sponsors use the U.S. Army Corps of Engineers Construction
Equipment Ownership and Operating Expense Schedule (EP-1110-1-8) to determine the equipment
rates. The purchase price of equipment bought by the sponsor for use on a force account project is
not allowable, only this calculated rental and operating rate.
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Table 3-34 Sponsor Force Account Documentation Requirements
Sponsors must document actual costs as follows…
c. Supplies and Material. All supplies and materials must follow the procurement requirements in
2 CFR §§ 200.317-200.326 (see Appendix U) and the sponsor must keep records to document these
costs.
Table 3-35 Other Sponsor Force Account Requirements
Other requirements include…
a. Reporting. Construction and project reporting requirements are the same as those under a traditional
contract
b. FAA Standards. Force account work must meet the same engineering and construction standards
that are required under a traditional contract.
c. Labor Standards. Cost of labor and supervision must be in accordance with state and local
standards.
d. Insurance. It is the sponsor’s responsibility to comply with state and local insurance requirements.
e. Project Changes. The sponsor must obtain prior ADO approval to change the scope of the force
account work. Sponsors must make these requests in writing.
3-54. Value Engineering.
Value engineering is the systematic application of recognized techniques that identify the
function of a project or service and provide the best function reliably at lowest overall cost.
2 CFR § 200.318(g) encourages sponsors to use value engineering. The sponsor requirements
for value engineering are contained in Paragraph U-10, which, by FAA policy, is required 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).
The ADO must have concurred in writing with the use and scope of services for the value
engineering prior to the work commencing. The ADO must place a copy of the concurrence in
the grant file.
ADO’s are cautioned that significant advance preparation may be needed to comply with the
current version of Advisory Circular 150/5300-15, Use of Value Engineering for Engineering
and Design of Airport Grant Projects.
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3-55. Indefinite Delivery (Task Orders) Extensions for Construction Services.
Per FAA policy, a sponsor may not extend a task order contract for construction services beyond
a one-year duration (without re-advertising the contract) unless the ADO concurs with this
action. This is because AIP funded construction must be based on current Davis-Bacon wage
rates, which are updated at least on a yearly basis.
For the ADO to concur with the extension, the sponsor must provide compelling justification and
the ADO must be able to agree that the economic conditions and wage rates and project costs
have remained unchanged. Per FAA policy, the ADO must not concur with more than four
extensions to the same task orders.
3-56. Indefinite Delivery (Task Orders) Extensions for Consultant Services.
The sponsor must define the proposed projects, services, and estimated schedule as part of the
procurement process. The sponsor must limit the procurement to those projects and services that
can reasonably be started within five years of the final procurement selection. Per FAA policy, a
sponsor may not extend a task order contract for consultant services beyond a total overall
contract duration (without re-advertising the contract) of more than five years. This time
limitation has been established so that competition is not unduly restricted. Unless otherwise
approved in writing by the ADO, the sponsor must not add additional projects or services to the
contract.
3-57. Suspension or Debarment of Persons or Companies.
Suspension and debarment are actions that a Federal agency takes to prohibit certain person or
company from bidding on projects, receiving contracts or grants, or participating in federally
funded contracts or grants. If a person or company is suspended or debarred by a Federal
agency, the suspension or debarment extends to all Federal programs and procurement.
Suspension and debarment applies to contractors and subcontractors at any level, including
suppliers, fee appraisers, inspectors, real estate agents, consultants, architects, engineers, and
attorneys. It also applies to any others that are associated with the suspended or debarred person
or company.
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 Ineligibly Procedures. These are based on 2 CFR part 180 and
2 CFR part 1200. Note APP-500 is the Suspension and Debarment Official for AIP.
Paragraph U-5 contains the requirements sponsors must follow regarding persons or companies
that have been excluded from working on AIP funded projects. Table 3-36 contains the ADO
requirements.
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Table 3-36 ADO Requirements Regarding Suspension or Debarment
For the following… The ADO requirements include…
a. The sponsor is awarding a Per FAA policy, the ADO has the option to accept sponsor
contract. certification that the sponsor did the appropriate checks to assure that
contracts or subcontracts are not awarded to suspended, debarred,
or excluded firms or individual.
Per FAA policy, the ADO also has the option to request additional
information from the sponsor so the ADO can conduct a more
thorough review. If the ADO believes the sponsor requirements were
met, no further action or documentation by the ADO is required. If the
sponsor requirements were not met, the ADO must contact their
regional contact in the FAA Office of the Chief Counsel – Airports and
Environmental Law Division (AGC-600) to determine the course of
action.
b. A person or company If the ADO becomes aware of this situation, per FAA policy, the ADO
currently working on an AIP must contact their regional contact in AGC-600 to determine the
project is suspended or course of action.
debarred.
c. It appears that a person or If the ADO becomes aware of this situation, per FAA policy, the ADO
company might need to be must contact their regional contact in AGC-600 to determine the
suspended or debarred. course of action.
Section 11. Cost Allowable.
3-58. Allowable Cost Legislation and Policy.
The documents listed in Table 3-37 provide guidance to the ADO on how to determine what
costs are allowable and necessary within AIP funded projects.
49 USC § 47110(b) contains the five basic requirements that must be met for an ADO to
determine that a cost is allowable. These five basic requirements are discussed in further detail
in the following sections, as listed in Table 3-38.
In addition, the FAA has made a number of policy decisions on specific project cost items, which
are discussed in further detail in the rest of this section.
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Table 3-37 Resources to Determine if a Project Cost is Necessary and

Allowable
The resources include…
a. The Act. 49 USC § 47110(b) contains the basic five requirements that must be met for an ADO to
determine that a cost is allowable.
b. 2 CFR part 200 Subpart E (OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments). 2 CFR part 200 Subpart E (OMB Circular A-87, Cost Principles for State, Local,
and Indian Tribal Governments) provides the principles that the ADO must use to determine if a
cost is allowable for AIP funded projects.
c. The Single Audit Act of 1984. The Single Audit Act of 1984, Public Law 98-502 (as amended in
1996, Public Law 104-156, as amended and recodified at 31 USC § 7501 et seq.) is implemented
by 2 CFR part 200 Subpart F (OMB Circular A-133, Audits of State, Local Governments, and
Nonprofit Organizations). Although it is not this document’s primary purpose, the Single Audit Act
of 1984 provides valuable information about how to make allowable cost determinations.
Table 3-38 Five Basic Requirements to Determine a Cost is Allowable
For the following basic requirement… The requirements are in…
a. Costs Necessary (Allowable Cost Rule #1) Section 12
b. Costs Incurred after Grant Executed (Allowable Cost Rule #2). Section 13
c. Costs Reasonable (Allowable Cost Rule #3). Section 14
d. Costs Not in Another Federal Grant (Allowable Cost Rule #4). Section 15
e. Costs within Federal Share (Allowable Cost Rule #5). Section 16
3-59. Unallowable Cost Table.
Appendix C contains tables that the ADO can use to help determine if the FAA has previously
identified a project or cost to be ineligible or unallowable.
3-60. Administrative Costs.
The ADO may determine that administrative costs are allowable direct charges to a grant if the
administrative costs are required to carry out the grant project. Examples of common
administrative costs and their requirements are included in Table 3-39.
Administrative costs must not include planning, engineering, or construction work and are
therefore not considered force account work . Administrative costs may include work done by a
sponsor or by another entity, such as an attorney. Administrative costs must be supported by
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vouchers, receipts, personnel activity reports, or other verifiable documentation. Administrative

costs must not represent a pro-rated allocation of time or expenses.
By FAA policy, a line item for estimated administrative costs can be included in the grant
application if the sponsor cannot accurately calculate the total administrative costs. However,
these estimated administrative costs must not exceed 2% of the grant amount or $10,000,
whichever is less.
Once a grant is issued, the payment requests for administrative costs must represent actual costs
and must be supported by appropriate documentation. Claims may not represent an estimated,
allocated, or prorated cost.
Table 3-39 Administrative Costs Examples and Requirements
For the following example… The following requirements apply…
a. Sponsor Employee Time. (1) The ADO must determine that the work that is going to be
The cost for a sponsor’s accomplished by the sponsor’s employees is required to carry out
employee’s time directly the AIP project. This is required because 49 USC § 47110(b)
related to administrative limits reimbursement to costs that are, “necessarily incurred in
tasks that are required to carrying out the project in compliance with the grant agreement,”
complete an AIP project and establishes that costs must be “reasonable in amount”.
The cost for a sponsor’s
(2) The sponsor must have a time tracking system in place that tracks
employee’s time includes
all hours that its employees work.
the employee hourly salary;
and costs related to the (3) Because sponsor employees often work on multiple projects, or on
hourly rate such as activities outside the project in the AIP grant, sponsors must
Medicare, Social Security, submit timesheets (or a suitable report from an automated payroll
federal/state/local taxes accounting system) to the ADO.
(4) The timesheets must properly document all of the hours worked by
the employees, regardless if they were on the AIP project or not.
(5) A sponsor must base their charges upon actual payroll information
documented under their agency’s generally accepted practice.
This payroll information must be reviewed and approved by the
sponsor’s responsible official.
(6) A copy of the sponsor’s responsible official’s written approval must
be provided to the ADO.
(7) These above requirements are discussed in more detail in
2 CFR § 200.430 (Attachment B, Paragraph 8, of OMB Circular A-
87, Cost Principles for State, Local, and Indian Tribal
Governments).
(8) The expense must be directly required by and related to the AIP
project. These are normally limited to project specific costs such
as preparation of an independent fee estimate, legal review of a
construction contract, and submission of FAA required project
reports. Costs that are not directly related, or are prorated, are not
allowable.
(9) Costs to administer the AIP grant program are not allowable.
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Table 3-39 Administrative Costs Examples and Requirements
For the following example… The following requirements apply…
b. Overhead Costs. Anything (1) These are considered indirect costs, which are discussed in
more than direct Paragraph 3-61.
employee’s time. These
normally consist of support
services such as
accounting, billing, building
rent, and utilities that cannot
be attributed to one specific
project or activity.
c. Sponsor Employee (1) The expense must be reasonable, be directly related to the AIP
Expenses (such as tolls, project, and be supported by a receipt or voucher.
mileage, and parking).
d. Legal Fees. (1) The expense must be reasonable, be directly related to the AIP
project, and be supported by an invoice.
e. Independent Fee (1) The expense must be reasonable, be directly related to the AIP
Estimates. project, and be supported by an invoice.
f. Newspaper (1) The expense must be reasonable, be directly related to the AIP
Advertisements/ project, and be supported by an invoice.
Announcements in
Publications.
g. Audit Fees. (1) The expense must be reasonable, be directly related to an AIP
project (in this grant or in a prior grant), and be supported by an
invoice.
(2) The audit must be required by, and performed in accordance with,
the Single Audit Act, as implemented by 2 CFR part 200, Subpart
F (OMB Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations).
(3) If the audit includes other Federal programs beyond AIP, the costs
are prorated to include only the AIP portion.
(4) It is the opinion of the FAA that sponsors that are issued subgrants
under a state block grant are responsible for obtaining the single
audit and for the payment of the audit costs. Therefore, the
request for reimbursement of these costs is tied to the subgrant.
3-61. Indirect Costs.
The FAA’s policy allows a sponsor’s indirect costs to be charged to the sponsor’s employee’s
hourly salary for time working on an AIP grant if the indirect cost rate (IDC) was calculated
based on the requirements in Table 3-40. The FAA policy allows indirect costs to be applied
only to the direct wages and salaries of a sponsor’s employees (not to other project costs).
3-49
Table 3-40 Requirements for Indirect Costs
The following requirements apply…
a. Indirect or Overhead Costs. Costs incurred by a sponsor for other than employee’s direct time.
Allowable items of cost that make up indirect costs may include costs for support services such as
accounting, billing, building rent, and utilities that cannot be attributed to one specific project or
activity can be allocated via federally-sanctioned formula to the grant.
b. Indirect Cost Rate Calculation. Indirect or overhead costs are potentially allowable only if the
sponsor meets one of the following two criteria for calculation of the indirect cost rate.
(1) The sponsor has a Cost Allocation Plan approved by the cognizant Federal agency. In addition,
the sponsor has and an executed indirect cost rate agreement developed in accordance with
2 CFR part 200 Subpart E (OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments). These two documents are needed by the ADO to determine what percentage of
the costs, if any, can be allocated to of modified total direct cost (MTDC).
(2) If a sponsor does not have a Cost Allocation Plan, the sponsor has the option to charge a de
minimis rate of 10% of modified total direct cost (MTDC) per 2 CFR § 200.414(f).
c. Modified Total Direct Cost (MTDC). Per FAA policy, the allowable MTDC is the cost for a sponsor’s
employee’s time directly related to administrative tasks that are required to complete an AIP project
The cost for a sponsor’s employee’s time includes the employee hourly salary; and costs related to
the hourly rate such as Medicare, Social Security, federal/state/local taxes.
d. Cognizant Federal Agency. The cognizant agency of the Federal government that must approve or
disapprove the Cost Allocation Plan. This agency is generally the Federal agency that has the
greatest dollar involvement with a given sponsor. The ADO must contact APP-500 if the ADO has a
question regarding whether the FAA is the cognizant agency for a sponsor. For the most part, the
FAA is the cognizant agency for airport authorities. The Federal Highway Administration is the
cognizant agency for many state departments of transportation and in that role, negotiates the indirect
cost rate on behalf of the FAA.
e. FAA Determinations. For those sponsors for which the FAA is the cognizant agency, responsibility
for approving or disapproving cost allocation plans and negotiating and executing the indirect cost
rate agreement is delegated to the regional division manager. The ADO has the responsibility for
review of the cost allocation plan, for signature by the regional division manager, and must use the
following documents to make their recommendation:
(1) 2 CFR part 200 Subpart E (OMB Circular A-87. Cost Principles for State, Local and Indian
Tribal Governments).
(2) ASMB C-10. Cost Principles and Procedures for Establishing Cost Allocation Plans and Indirect
Cost Rates for Agreements with the Federal Government (developed by the United States
Department of Health and Human Services and dated April 8, 1997).
(3) Financial Assistance Guidance Manual. This DOT guidance, dated March 2009, replaces
DOT Order 4600.17A, Financial Assistance Management Requirements.
f. Application of Rate. The rate approved under the cost allocation plan (also referred to as the
indirect cost allocation plan rate, or ICAP rate) is applied only to the costs associated with sponsor’s
employees’ hourly rate, inclusive of employer paid costs, such as Medicare, Social Security, and
federal, state, and local taxes. For example, if the employee earns $10/hour (including employer paid
taxes or benefits) and the rate is 14%, the allowable overhead is $10/hour multiplied by 14%.
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Table 3-40 Requirements for Indirect Costs
g. Indirect Cost Rate Documentation. Sponsors that intend to claim reimbursement for indirect costs
must include a signed copy of the approved indirect cost rate and the indirect cost proposal for the
grant year in the grant application.
3-62. Architectural Enhancements Costs.
It is FAA policy to support projects that contribute to the architectural and cultural heritage of
local communities. In accordance with this policy, sponsors are encouraged in their early
planning procedures to use design, art, and architecture to reflect local customs and history of the
community or other cultural emphasis as long as this can be accomplished without impairing
function, safety, and efficiency of the facility.
Architectural treatment of the inside and outside of buildings to reflect local custom, style, or
cultural attitudes is an allowable cost. The work must be architectural in nature (it cannot be for
the sole purpose of aesthetic enhancement) and must be in an area accessible by the public.
Allowability examples for architectural treatments is contained in Table 3-41.
Table 3-41 Allowability Examples for Architectural Treatments
The cost to… Is…
a. Apply an adobe finish on the exterior and Allowable.

public interior walls of a terminal in the
Southwest.
b. Acquire and install terrazzo floors (depicting Not Allowable. The type of work is allowable, but
local scenes) in a non-public area of the because it is not in a public area, it is unallowable.
terminal.
c. Purchase and install a free standing sculpture Not Allowable. This is a work of art for the sole
in the terminal. purpose of aesthetic enhancement. It is not an
architectural treatment.
3-63. Benefit-Cost Analysis (BCA) Costs.
Per FAA policy, the costs incurred to prepare a BCA are only allowable as a grant formulation
cost for the specific project (not as a stand-alone grant). In addition, these costs cannot be
reimbursed until after the BCA shows that the project is justified.
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3-64. Construction Costs.
Construction costs are only allowable if they are necessary to complete the project according to
the plans and specifications.
3-65. Construction Project Signs Costs.
Project signs at an airport construction sites are not required, but if erected may be an eligible
cost if the construction includes at least $200,000 of Federal funds and will be underway for at
least three months. The allowable cost of the sign is limited to $1,000. The sign must contain a
brief description of the project and the following statement: Part of the funding for this project is
being provided by a grant from the Airport Improvement Program, which is administered by the
Federal Aviation Administration and financed through the Airport and Airway Trust Fund.
3-66. Computer Software and Data Subscription Costs.
The ADO may approve sponsor requests, on a case-by-case basis, to include a specifically
allocated portion of the costs of software acquisition, licensing and/or subscription. The ADO
may only approve the portion of the cost that is directly attributable to a specific, FAA-approved
AIP project, only for the duration of the approved AIP project, and only for the entity that is
actually doing the work for which the software is required.
These costs may include customized commercially available software, but only if the customized
software becomes public domain and the sponsor makes it available to any user without cost
beyond handling costs.
It is anticipated that the costs of this software will normally be incurred by the sponsor’s
consultant because the consultant is performing the technical work. The cost for sponsor
acquisition of software is not allowable unless it is approved by the ADO for force account work
(see Paragraph 3-53).
The costs of ongoing data subscription services, such as those needed for a noise monitoring
program, are not allowable. The sponsor is also responsible for the costs of any ongoing vendor
service costs that may be needed to access FAA surveillance tracking data.
3-67. Disadvantaged Business Enterprise (DBE) Plan Updates.
The requirement for a sponsor to have a DBE plan is discussed in Paragraph 5-9. A sponsor is
required to update their overall DBE program goals within this plan every three years. The cost
for this DBE plan update is eligible as project formulation costs in the sponsor’s first AIP grant
after the update. A sponsor with multiple airports is only required to have one DBE plan (which
covers its airports). Therefore, the sponsor is allowed to apply the cost to update the plan to a
grant at any of the airports it owns.
The cost to set the project specific DBE goal is also an eligible project formulation cost for that
project.
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3-68. Drainage Costs.
The drainage improvements are allowable to the extent the work serves eligible areas and
facilities. If the drainage improvement will serve both eligible and ineligible areas/facilities, the
allowable cost is limited to prorated share for the eligible portion. The ADO will determine the
method of proration. Table 3-42 contains a proration example. In addition, the requirements for
including ineligible or non-AIP funded work in the contract in Paragraph 3-39 must be met.
Drainage projects are eligible as stand-alone projects as discussed in Appendix D.
Table 3-42 Drainage Proration Example
For the following situation… The allowable prorated amount would be…
A project will extend an off-airport drainage box One fifth of the total cost to extend the culvert
culvert through the airport. This box culvert will through the airport (including associated design,
also serve the neighborhood adjacent to the airport. inspection, etc.).
The airfield runoff is 20 acres and the
neighborhood runoff is 100 acres.
3-69. Duct Bank Costs for Ineligible Facilities.
Normally, the cost to install, modify, or enlarge duct banks to support an existing or future
ineligible facility is not allowable. There is one exception. These costs are allowable as part of
an AIP funded pavement project only if the ADO has determined that they will reduce the need
to disturb the AIP funded pavement at a later date.
The acquisition and installation cost of the ineligible utilities and equipment remains
unallowable.
3-70. Energy Efficiency (Green/Sustainable) Improvement Costs.
Per 49 USC § 47110(b)(7), the costs to improve the energy efficiency of a building, sometimes
referred to as green or sustainable improvements, are allowable. Energy efficiency improvement
costs must meet the criteria in Table 3-43.
Note that the requirements for a project for improving the energy efficiency of airport power
sources are discussed in Section 7 of Chapter 6.
3-53
Table 3-43 Criteria for Energy Efficiency Improvement Costs
In order for an energy efficiency improvement cost to be allowable…
a. The cost must be incurred on a measure to improve the efficiency of an airport building (such as a
measure designed to meet one or more of the criteria for being considered a high-performance green
building as set forth under section 401(13) of the Energy Independence and Security Act of 2007
(42 USC 17061(13))).
b. Any increases in initial project costs must be offset by expected savings over the life cycle of the
project. The sponsor must follow the published FAA guidance for calculating the life cycle cost.
c. For building projects, the cost must be incurred on an otherwise eligible and justified airport building
project (improving energy efficiency cannot be the justification). A project to improve a building’s
energy efficiency is not eligible as a stand-alone project.
d. The cost must only include costs which are necessary for the project, such as those for design,
construction, testing, and inspection (not for obtaining LEED or similar certification or credits – which
is not a necessary cost of the project).
e. For a building which contains eligible and ineligible areas, all costs associated with the measure
(such as design, construction, testing, and inspection) must be prorated accordingly. In addition, the
requirements for including ineligible or non-AIP funded work in the contract in Paragraph 3-39 must
be met.
f. The sponsor must submit the initial project costs, the expected savings over the life of the project, the
life cycle cost calculations, and the proration calculations (for building contains eligible and ineligible
areas) to the ADO.
g. The costs to redesign or to modify ongoing construction to incorporate energy efficiency measures
into the project are only allowable to the extent that the previously incurred design costs are removed
from the AIP-funded project.
3-71. Engineering and Architectural (A/E) Costs.
Engineering and architectural costs are only allowable if they are necessary to complete an AIP
eligible project. If only part of the project is eligible, the engineering and architectural costs are
limited to the prorated eligible amount. Table 3-44 provides examples of some engineering and
architectural costs that may be necessary for an AIP project.
Table 3-44 Examples of Engineering and Architectural Costs
Some examples include costs to…
a. Prepare plans and specifications (stand-alone design grants are discussed in Appendix D)
b. Establish and report on project specific DBE goals
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Table 3-44 Examples of Engineering and Architectural Costs
Some examples include costs to…
c. Conduct initial field investigations
d. Conduct preliminary design
e. Conduct testing
f. Prepare construction management programs and the final test and quality control reports required for
projects with pavement costs of $500,000 or more
g. Provide engineering cost estimates
h. Prepare bid documents
i. Evaluate bid proposals
j. Conduct construction inspection
k. Provide technical consulting services
l. Surveying and data collection (see Paragraph 3-77 for guidance on Geographic Information System
(GIS) data collection)
3-72. Environmental Finding Costs.
Environmental finding costs are only allowable if they are necessary to complete the project per
the current version of FAA Order 5050.4, National Environmental Policy Act (NEPA)
Implementing Instructions for Airport Projects.
3-73. Equipment Leasing (instead of Purchase) Costs.
The Act only allows eligible equipment to be purchased, not leased. The exception is when
equipment is leased for temporary use to complete an AIP eligible project (either by a contractor
or through ADO approved sponsor force account).
In the case of lease/purchase agreements, only the purchase portion of the arrangement is an
allowable AIP cost, and the ADO cannot issue the grant for the equipment until after the sponsor
executes the option to purchase the equipment.
3-74. Facility Impeding an AIP Development Project – Costs to Rebuild or Relocate in

Another Location.
The definition of allowable costs is expenses necessary to complete the project

(49 USC § 47110 (b)). Normally, only demolition of facilities impeding an AIP development
project is considered necessary.
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However, there are situations where the cost of rebuilding an impacted facility (or paying to
physically relocate it to another location) is an allowable cost. This depends on the ownership
and type of the impacted facility. Table 3-45 provides detailed guidance and Table 3-46
provides examples.
For purposes of eligibility, impeding an AIP development project means physical interference
with the AIP funded development project. It does not include rebuilding or relocating the facility
to mitigate inconveniences to the facility.
In addition, if a facility is eligible for AIP funds, the ADO must also determine that there is no
reasonable alternative and the sponsor is not knowingly impacting the facility to justify the
participation of AIP funding. By issuing the grant, the ADO is documenting their determination.
Table 3-45 Allowability of Costs to Rebuild or Relocate Facility Impeding an AIP

Development Project
If the impacted facility The cost to rebuild or relocate the facility in a new location is…
is…
a. FAA-owned NAVAID Allowable only if all of the following criteria are met:
or federally owned
(1) The ADO has determined:
(other than FAA-
owned NAVAID) and (a) The new building or piece of equipment is the same size and function
is on airport of the original;
property.
(b) It is not feasible to relocate the original facility or equipment; and
(c) The allowable cost to construct a new facility to existing construction
standards (per 49 USC § 47110(b)(1) does not exceed the cost of
relocation of the existing facility.
(2) If the facility is FAA-owned, the ADO must complete all required
coordination with FAA Technical Operations (AJW). As part of the
coordination, if AJW determines that the facility is no longer required, it is
not eligible for relocation with AIP. It may be eligible to be demolished as
an obstruction. Sponsors are advised to consider this possibility during
the planning process.
(3) If the ADO determines that the relocation of the facility is feasible:
(a) The allowable costs are limited to the relocation costs, the site
preparation, and utility installation at the new location.
(b) AIP participation must not include refurbishing, enhancing or
upgrading the impacted facility.
(4) For FAA facilities, the relocation costs or costs of a new building or piece
of equipment must demonstrate a passing (greater than 1.0) benefit-cost
ratio.
3-56

Development Project
is…
b. Not sponsor or Not allowable (Rebuild). AIP cannot be used to rebuild the facility in a new
federally owned and location (this is the responsibility of the owner).
is on airport
Allowable (Purchase). AIP can be used to purchase the facility at market
property.
value. The costs associated with its demolition and removal are also
allowable, minus any salvage value.
Allowable (Relocate). The relocation of the structure or facility to another
location on the airport in lieu of purchase is eligible up to the market value of
the facility. Nominal incidental costs of the relocation (such as extinguishing a
lease) may be included.
c. Not sponsor or Allowable. Detailed guidance on allowable costs is provided in the current
federally owned and version of Advisory Circular 150/5100-17, Land Acquisition and Relocation
is off airport Assistance for Airport Improvement Program Assisted Projects. Unless
property. otherwise specified in this advisory circular, relocated facilities (such as roads
or utilities) must have an equivalent type and functionality as the existing
facility.
d. Sponsor-owned, is Allowable if the new facility is justified in the same way as if it were a stand-
on airport, and is an alone project. In other words, if the impacted facility is eligible and justified
AIP eligible stand- under AIP regardless of the impacting project, it is allowable to rebuild the
alone project. facility in another location to the current size justified.
Although obstruction removal is an eligible stand-alone project, the facility is
only eligible for demolition.
The ADO must follow the same funding rules for the demolition that exist for
the associated development project. In addition, the cost to rebuild the facility
in a new location must follow the funding rules (and any other AIP
requirements) that would exist if this were a stand-alone project.
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Development Project
is…
e. Sponsor-owned, is Allowable only if all of the following criteria are met:

on airport, is not an
(1) This is not a change in category of FAA design standard for the airport
AIP eligible stand-
due to increased traffic or other circumstances. Rather, this is a change
alone project, and is
in the actual physical dimension that is required for an airport to meet
required by an FAA
FAA design standards.
change to FAA
design standards per (2) APP-500 has advised the ADO and regional offices that a change has
49 USC § 47110(d). been made to FAA design standards that may trigger the provisions of
49 USC § 47110(d). Advisory circulars contain both FAA design
standards and recommendations. This provision only applies to changes
in FAA design standards, not updated or new recommendations.
(3) The ADO determines that the relocation or replacement is required due to
a change in the FAA design standards that were published after
February 14, 2012 (the date of enactment of FAA Modernization and
Reform Act of 2012, Public Law 112-95).
(4) The ADO determines that the change is beyond the control of the airport
sponsor.
(5) The ADO determines that the new FAA design standard clearly infringes
on the sponsor’s facility.
(6) Only passenger entitlements, state apportionment, or nonprimary
entitlements are used.
(7) If the facility is replaced (rather than relocated), the new facility must have
an equivalent type and functionality as the existing facility.
(8) The change must not be simply a sponsor’s preferred alternative. For
example, a change in FAA design standards requires reconfiguration of
an apron and the sponsor’s preferred alternative impacts a sponsor-
owned hangar. If the ADO determines that there are other design
alternatives that will not impact a sponsor-owned hangar (whether or not
those are the sponsor’s preferred alternative), the cost to rebuild is not
allowable.
(9) The ADO must also determine that there is no other reasonable way to
avoid rebuilding the facility and that the sponsor is not trying to knowingly
impact a facility so that AIP funds can be used to rebuild it.
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Development Project
is…
f. Sponsor-owned, is Not allowable. The only costs that are allowable are the removal or
on airport, is not demolition of the facility (minus salvage value) and lease extinguishments in
required by a very rare cases. Extinguishment of leases without termination clauses may
change to FAA invoke relocation requirements per 49 CFR § 24.2(9).
design standards,
Extinguishment of non-terminal building leases for leases executed before the
and is not an AIP
date of Change 1 of this Handbook that do not have a termination clause are
eligible stand-alone
allowable. For leases executed after the date of Change 1 of this Handbook
project.
or that have a termination clause, costs to extinguish the lease are not
allowable.
For tenant-owned improvements within a sponsor owned terminal, the
demolition of the tenant improvements is the only allowable cost. The reason
that the cost to rebuild the impacted tenant space is not allowable is because
the sponsor has control of airport development and is therefore responsible if
a tenant area is in the way of new development.
The sponsor also has the option to physically move the facility to another
location on the airport up to, but not exceeding, the demolition costs of the
facility.
Table 3-46 Examples of Allowability of Costs for Facilities Impeding an AIP

Project
For the following impacted facility… The following costs are allowable…
a. An FAA-owned air traffic control tower The costs to rebuild the cab based on the current square
with a cab that accommodates six foot per controller standards needed to accommodate six
controller positions. The existing controller positions up to the cost of relocating the existing
structure cannot be dismantled and facility.
relocated.
Even though this may result in a larger cab, this cost is
allowable because the facility has to be built to the same
functionality.
However, if the FAA Air Traffic Organization (ATO) wants to
upgrade the facility above the current functionality, the ATO
is allowed to pay for the increase in cost. (This combination
of AIP and ATO funding is allowable.)
Note that all air traffic control tower relocations must be
sited through the Airport Facilities Terminal Integration
Laboratory (AFTIL) based on the current version of FAA
Order 6480.4, Air Traffic Control Tower Siting Process.
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Project
b. An existing FAA-owned approach The cost to relocate the equipment shelter.

lighting system equipment shelter. The
ATO is responsible for any upgrades to the shelter as a
ADO has determined that the shelter
separate project.
can be relocated. ATO wants to take
the opportunity to also refurbish the
interior electrical system of the shelter.
c. An existing FAA-owned Visual The cost to relocate the VASI or the cost to install the new
Approach Slope Indicator (VASI). ATO ATO-provided precision approach path indicator PAPI (up
proposes that the ADO pay to replace to but not exceeding the cost of the VASI relocation cost).
the VASI with a precision approach
If a new ATO-provided PAPI is installed, any cost above the
path indicator (PAPI). The ADO has
VASI relocation cost (per engineering estimates) must be
determined that it is feasible to relocate
paid for directly by ATO. (This combination of AIP and ATO
the existing VASI.
funding is allowable.)
The sponsor must obtain the PAPI from ATO through a
reimbursable agreement. This is because the PAPI may not
be supported by ATO if the sponsor uses the normal
procurement process.
d. An existing FAA-owned VASI. ATO The cost to purchase and install a new PAPI.
proposes that the ADO pay to replace
Even though the PAPI is an upgrade, because the FAA no
the visual approach slope indicators
longer purchases and installs VASIs, a PAPI is the only
(VASI) with a precision approach path
option to provide equivalent functionality and is therefore
indicator (PAPI). The ADO has
allowable.
determined that it is not feasible to
relocate the existing VASI. The sponsor must obtain the PAPI from ATO through a
reimbursable agreement. This is because the PAPI may not
be supported by ATO if the sponsor uses the normal
procurement process.
e. An airport administration office in the The cost to demolish the office area.
sponsor-owned terminal.
The terminal is airport owned and the airport administration
office is not AIP eligible, therefore rebuilding the office in a
new location is not allowable.
f. A passenger holding area at a non- The cost to demolish the passenger holding area and
exclusive use gate in the sponsor- rebuild it in another location.
owned terminal.
The costs can include an area up to the size the ADO
would consider eligible if it were a stand-alone project.
g. A sponsor-owned T-Hangar at a GA The cost to demolish the T-Hangar.

airport. The ADO has determined that
The sponsor is choosing to unnecessarily impact the T-
the AIP project impacting the T-Hangar
Hangar, so the cost to rebuild the T-Hangar in another
could be located elsewhere on the
location is unnecessary and is not allowable.
airport.
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Project
h. A sponsor-owned T-Hangar at a GA The cost to demolish the T-Hangar and rebuild (or relocate)
airport. The ADO has determined that it in a new location up to the size and specifications the
the AIP project impacting the T-Hangar ADO would consider to be eligible if it were a stand-alone
could not be located elsewhere on the project.
airport and that the sponsor is not
However, since this is a revenue-producing aeronautical
trying to knowingly impact the building
support facility, only non-primary entitlements can be used
so that AIP funds can be used to
to rebuild the T-Hangar.
rebuild it.
In addition, the sponsor is restricted from using all but non-
primary entitlements for that fiscal year as well as the next
two fiscal years.
i. An ARFF building. The existing The costs to demolish the ARFF building, rebuild it in a new
building does not meet the current location, enlarge it to meet the 14 CFR part 139
construction standards for earthquake requirements, and bring it up to the current construction
protection, nor, based on the ADOs standards for earthquake protection.
calculations, is it big enough to address
the existing 14 CFR part 139
requirements. The ADO has also
determined that there is no other
reasonable way to avoid rebuilding the
facility and that the sponsor is not
trying to knowingly impact the building
so that AIP funds can be used to
rebuild it.
j. A sponsor-owned T-Hangar at a The cost to demolish the T-Hangar and rebuild (or relocate)
primary airport that is directly impacted it in a new location if all of the other requirements in
by a change in FAA design standards. Table 3-45 for this type of project have been met.
The ADO has determined that the only
reason the T-Hangar must be relocated
is due to a change in FAA dimensional
design standards issued after
February 14, 2012. Note that a change
in an FAA recommended design
practice is not a change in FAA design
standard.
3-75. Flight Check.
If a flight check is required by the FAA to commission an AIP-funded NAVAID, the cost of one
flight check under a reimbursable agreement with the FAA, and the associated costs for the
contractor to participate, is allowable. In the instance that FAA cancels a flight check and the
sponsor incurs costs from having the contractor on site for the flight check, these costs may also
be allowable. However, the cost for failed flight checks are not allowable.
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3-76. Force Account Costs.
Sponsor force account work is planning, engineering, or construction work done by the sponsor’s
employees. These costs are only allowable if they are necessary to complete the project and
have been approved by the ADO as discussed in Paragraph 3-53.
3-77. Geographic Information System (GIS) Data Collection.
GIS data collection is an allowable costs if it meets the requirements in Table 3-47. The Airports
GIS surveying and data collection efforts that allowed surveying beyond that allowed in the table
are no longer in effect.
Table 3-47 GIS Data Collection Cost Requirements
For GIS work The following restrictions apply…

within the
following type of
project…
a. AIP funded (1) The scope of the field survey, data collection, and uploading to the Airports GIS
development. program must be directly required by the AIP funded development project.
(2) The costs must be limited to that required to complete the AIP funded
development project.
(3) The field survey, data collection, and uploading to the Airports GIS program is in
accordance with FAA surveying standards.
b. AIP funded (1) Because a planning study is expected to result in an FAA-approved airport layout
planning. plan that reflects future conditions for the entire airport, the scope of the grant
may include Airports GIS-compliant surveying for the entire airport consistent
with the FAA’s established surveying standards for Airports GIS—regardless of
whether the airport sponsor chooses to characterize the planning study as a
master plan or master plan update, or some other type of planning study.
(2) In extraordinary circumstances, a planning study may be conducted in phases, in
which case it is permissible to include the full-airport survey work in a Phase 1
planning grant—i.e., a grant whose scope does not include the final master plan
or ALP documents. However, in such cases, the grant must include a special
condition (the automated AIP system contains the current available special
conditions).
(3) 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 generally include whole-airport
surveys unless specifically approved by APP-400 and APP-500.
(4) The field survey, data collection, and uploading to the Airports GIS program must
be in accordance with FAA surveying standards.
3-62
3-78. Heated Airfield Pavement.
The cost of a heating system for airfield pavement, as defined in the current version of Advisory
Circular 150/5370-17, Airside Use of Heated Pavement Systems, is eligible under AIP.
However, the sponsor must justify the costs with a positive benefit-cost analysis. In addition, the
ADO must remove the pavement from subsequent snow removal calculations when determining
AIP eligible snow removal equipment.
3-79. Historic Building Costs.
If a structure is being impacted as part of an eligible AIP project (including land acquisition and
noise mitigation) and the structure is on (or eligible for listing on) the National Register, as
amended, the associated costs required by Section 106 of the National Historic Preservation Act
of 1966, Public Law 89-665 (codified as amended at 16 USC § 470h-2) are allowable.
3-80. Hydrant Fuel Lines and Pit Costs.
The incidental cost of installing aircraft fuel lines and pits as part of an aircraft apron project is
an allowable cost. Per FAA policy, the costs must be prorated to include only the portion of the
lines and pits physically under the AIP funded apron project. These costs are allowable because
they will reduce the need to disturb the AIP funded apron at a later date. The requirements for
including ineligible or non-AIP funded work in the contract in Paragraph 3-39 must be met.
3-81. Land Acquisition Costs.
It is FAA policy that costs associated with a land acquisition (such as appraisals, legal fees, etc.)
are not allowable until after the sponsor has submitted evidence satisfactory to the ADO that the
sponsor will obtain good title to the land. Typical examples of this evidence are a binding
purchase agreement that will convey good title, evidence of a condemnation deposit, a
condemnation award, or a court settlement. Until the sponsor meets this requirement, there is no
guarantee that the land acquisition will be completed. Therefore, while the ADO may issue a
grant for land acquisition before the sponsor submits satisfactory evidence that good title will be
acquired, sponsors must not submit payment requests until these conditions are met.
Some of the common allowable land costs and their associated restrictions are listed in
Table 3-48. All of these costs need to be necessary and reasonable in amount. The ADO must
only fund cost allowed under 49 CFR part 24 and may contact APP-400 for assistance.
3-63
Table 3-48 Common Allowable Land Costs and Associated Restrictions
For the following cost… The following restrictions apply…
a. Appraisals One appraisal of each property to be acquired is allowed unless the ADO
concurs that a second, full appraisal is justified. Generally, a property with
potential fair market value over $500,000 may require a second appraisal.
Complex appraisal assignments may also require two appraisals to ensure
adequate market research and analysis is secured to support appraised
values. The sponsor must ensure all appraisal reports to establish the just
compensation offer to the property owner are reviewed by qualified review
appraiser and approved as required under 49 CFR part 24.
b. Title Evidence The reasonable and necessary cost of title evidence (title search and
acquisition closing procedures to ensure marketable clear title to property is
conveyed to the airport) is allowable. The sponsor’s attorney must certify to
ADO that good title has been acquired and may rely on title insurance (title
company commitment of insurance of marketable title), or title abstract or
an attorney’s certificate of title. Per FAA policy, AIP reimbursement of the
title insurance costs must not exceed $1000 per parcel.
c. Exhibit A Update Per FAA policy, the sponsor is required to maintain a current Exhibit A
(property inventory map). The cost to update the Exhibit A is both a required
and an allowable cost in a land project. An airport property map is not a
substitute for an Exhibit A.
d. Condemnation Awards The ADO may accept the cost of land or property interest established by the
courts in a condemnation proceeding as a reasonable cost, even though it
is above current appraised value. Reasonable attorney fees, delay interest,
and acceptable incidental expenses included in a court award to land
owners in a condemnation action are allowable costs. If the sponsor and
their legal counsel determine that the award was excessive or
unreasonable, they must evaluate whether to appeal the award.
The sponsor and their legal counsel are encouraged to appeal an
unfavorable award if there is good reason to believe that the amount of the
award will be significantly reduced on appeal or retrial.
3-64
Table 3-48 Common Allowable Land Costs and Associated Restrictions
For the following cost… The following restrictions apply…
e. Relocation Assistance Relocation assistance and eligible payment requirements are described in
Costs 49 CFR part 24. These are required both for all FAA assisted projects and
programs where acquisition or relocation is required or contemplated, and
for projects to reimburse the sponsor for prior acquisition or relocation. The
cost incurred by the sponsor to meet the requirements of 49 CFR part 24 is
allowable. Examples include, but are not limited to:
(1) Moving expenses.
(2) Reestablishment expenses.
(3) Replacement housing payments.
(4) Related non-residential expenses.
(5) Rent supplements.
(6) Down payments.
(7) Mortgage interest differentials or mortgage buy downs.
(8) Incidental expenses in connection with the acquisition of replacement
housing.
(9) Advisory services.
(10)Preparation of feasibility studies and relocation plans.
f. Appraisal (Highest and The acquisition of a private airport by a public sponsor will normally include
Best Use) for acquiring all of the airport property, including improvements. The appraised
Acquisition of an highest and best use of the land may either be continued airport use, or
Airport not in the market development of the land to a more valuable land use, but not a mix
NPIAS of the two. The ADO must contact APP-400 for additional guidance on the
appraisal requirements for the acquisition of a private owned airport.
g. Facilities on AIP When land is acquired using AIP funding and there are existing facilities on
Acquired Land the land, the ADO must determine if the cost for these facilities is allowable.
Table 3-49 provides the allowability requirements the ADO must use to
make these allowability determinations.
3-65
Table 3-49 Allowability of Costs for Facilities on AIP Acquired Land
If the facility will be … Then the cost of acquiring the facility is…
a. Demolished Allowable.
b. Used for an AIP eligible Allowable up to the justified size or use of the AIP eligible purpose (all
purpose (such as a other project and project related funding requirements apply).
general aviation
terminal)
c. Demolished at a later Allowable. The sponsor may use the structure for any incidental
date (not to exceed purposes it deems desirable provided it does not interfere with the
three years) purpose of the airport. However, any revenue at fair rental value received
during the period between acquisition and demolition of the structure
constitutes airport revenue and is to be used according to grant
assurances.
If a decision is ultimately made not to demolish the structure, then the
ADO must contact ACO-100 to determine the next course of action.
d. Used for a purpose that Not Allowable.

is not AIP eligible (such
as administrative
offices)
e. Relocated from its Partially Allowable. This cost is only allowable up to the lesser of the
present site relocation costs or the demolition costs.
3-82. Legal Fees and Settlement Costs.
Legal fees and settlement costs are allowable if the ADO has determined that all of the criteria in
Table 3-50 have been met. The ADO has the option to request the assistance of their regional
legal counsel in making these determinations. The ADO also has the option to request the
assistance of APP-400 for environmental or land related legal fees and settlement costs.
The ADO cannot find associated administrative expenses or consultant fees to be allowable if the
ADO has determined that the legal fees or settlement costs are unallowable.
The ADO has the option to either implicitly concur with the legal fees and/or settlement costs by
issuing the grant or make a written determination. In either case, the ADO must place the
documentation used to support this determination in the grant file.
3-66
Table 3-50 Requirements for Legal Fees and Settlement Costs
All of the following criteria must be met for the costs to be allowable…
a. The legal fees and/or settlement costs are a necessary part of the project or are needed to avoid
shutdown of the project. Examples include legal costs to file the title at the courthouse, legal costs to
review contracts before they are signed by the sponsor, and settlement costs required by a court
finding to avoid a project being shut down.
b. The costs are not associated with defending a specification or Federal provisions. This is because
the cost to defend a Federal provisions or specification is not a necessary part of the project and is
not needed to avoid shutdown of the project.
c. The costs are reasonable.
d. The costs are documented in an invoice.
e. The costs can be paid for within the existing grant (or any proposed amendment). A separate grant
cannot be issued if the costs are more than the amendment limit.
f. If the total legal fees and/or settlement costs within the grant (and any proposed amendments) will
exceed $100,000, the ADO has provided their recommendation up through the regional office and
APP-500 to APP-1, and APP-1 has provided written concurrence.
g. The ADO has determined that costs are not due to negligence on the part of the sponsor or
consultant (including bidding defective plans or improper payments) and the sponsor did not violate
contract provisions.
h. The ADO has determined that the costs are not associated with the recoveries of improper payments.
Under 49 USC § 47110(b)(1), all costs paid with AIP funds must be necessary to carry out the
project. It is the sponsor’s responsibility to recover improper payments without using AIP funding to
carry out the work effort.
i. The sponsor has exhausted all other avenues available to pay for the costs or resolve the issue.
3-83. Lighted X’s and Other Runway Closure Markings Costs.
The cost for a contractor to furnish runway closure markings during a project is an allowable
cost. However, a sponsor cannot require the contractor to purchase lighted X’s and then turn it
over to the airport as part of the project. If a sponsor would like to acquire a lighted X, they must
request this as a separate AIP project and justify the need to the ADO (see Appendix J).
3-84. Nonroad Diesel Engines.
In 2004, EPA issued a final rule adopting Tier 4 emission standards for nonroad diesel engines.
The Tier 4 standards (40 CFR part 1039), are intended to reduce harmful emissions and to
improve air quality. The EPA required all manufacturers to be fully compliant with the first
model year after December 31, 2014. The standards include a hardship provision
(40 CFR part 1039.635) that would delay compliance with Tier 4 emission standards for up to
3-67
two model years from the 2014 date for small-volume manufacturers (40 CFR part 1068.250).
What this means is that in certain cases, a manufacturer may provide a Tier 3 engine in a Tier 4
proposal.
A sponsor has the option to bid only the Tier 4 standards for nonroad diesel engines, which will
only allow Tier 4 engines to be bid, or to allow the Tier 4 hardship program engines, which will
allow Tier 3 or Tier 4 engines.
3-85. Normally Unallowable Costs that are Necessary to Carry Out the Project.
The ADO has the option of finding a normally unallowable cost allowable if the associated
project cannot proceed without it. However, the ADO also has the option to require the sponsor
to pay for these costs. Examples of these types of costs are included in Table 3-51. If no
precedent for these costs exists, the ADO must consult APP-500.
Table 3-51 Examples of Unallowable Costs Necessary to Carry Out a Project
Some examples include…
a. Planting trees that are required as an environmental mitigation measure in an FAA approved
environmental finding. Landscaping is normally an unallowable cost, but in this case it would be
allowable.
b. Fire hydrant installation required to obtain a local building permit for an apron project. Otherwise, fire
hydrants are not a necessary for an apron project and would not be allowable.
3-86. Project Formulation Costs.
Project formulation costs must be directly related to the project. These are costs that are
normally incurred before the project starts and would not have been incurred otherwise.
Table 3-52 contains some examples of project formulation costs.
Indirect costs for project formulation must not be approved except as allowed in Paragraph 3-61.
Table 3-52 Examples of Project Formulation Costs
a. Field surveys
b. Soil borings
c. Plans and specifications (if not a stand-alone design grant)
d. Project related airport layout plan revisions
3-68
Table 3-52 Examples of Project Formulation Costs
e. Land acquisition
f. Aeronautical studies
g. Grant administrative expenses for the projects in the grant
h. Benefit-cost analyses
i. Safety risk management (SRM) analysis for the specific project
j. Environmental studies (if not a stand-alone environmental study grant)
k. Land appraisals and review appraisals, title examination, and relocation plans
l. Construction and equipment procurement costs such as bid advertisement
m. Disadvantaged Business Enterprise (DBE) plan updates and project specific DBE goal formulation
3-87. Reimbursable Agreements with Other Federal Agencies.
The cost for reimbursable agreements between the sponsor and a Federal agency is allowable if
the cost is necessary for the project and the other Federal agencies statutes allow this action. For
instance, 49 USC § 106(l)(6) allows the FAA to enter into reimbursable agreements in order to
carry out the functions of the FAA. An example of this is a reimbursable agreement between a
sponsor and the FAA Air Traffic Organization (ATO) for the purpose of having the ATO
relocate an FAA-owned navigational aid that is required by an AIP funded project (as allowed
under 49 USC § 44502(a)(2)).
3-88. Safety Management System (SMS) and Safety Risk Management (SRM) Costs.
An SMS manual and implementation plan covers a wide range of projects and operations at a
specific airport. The requirements an ADO must follow to issue a grant for an SMS manual and
implementation plan are contained in Appendix E.
In addition, the sponsor may be required to participate in an SRM panel for specific projects or
operations. If the specific project is one that will be funded by AIP, then certain costs are
potentially allowable per Table 3-53.
3-69
Table 3-53 Allowable SRM Costs
The following are allowable SRM costs…
a. SRM Panel Costs. SRM panel costs are only allowable if they are specifically for the project in the
grant and are required and conducted per the current version of FAA Order 5200.11, FAA Airports
(ARP) Safety Management System. Allowable costs are limited to the reasonable costs of a
consultant to support the SRM, including the costs to obtain a third party facilitator, prepare
presentations, and provide meeting notes. The costs for airport employees, tenants, or FAA
employees are not allowable.
b. SRM Project Costs. The recommendations from an SRM panel are not automatically eligible or
justified. The reason is that many SRM panel recommendations will be operational or involve work
that is funded under another Federal program. The ADO must review these recommendations on a
case by case basis to determine if the recommendation is a project or project cost that meets the
eligibility and justification requirements outlined in this Handbook. The ADO may determine that the
recommendation is either a stand-alone project or is an allowable cost under another eligible and
justified project.
3-89. Secondary Electrical Power Supply Costs.
The primary electrical power supply is an allowable cost for any eligible project as outlined in
Paragraph 3-97. In extremely limited circumstances the ADO also has the option to find the cost
for a secondary, or redundant, power supply allowable.
The ADO may find a secondary power supply allowable if the primary power supply for the
eligible areas/facilities of the airport is extremely unreliable due to any of the reasons listed in
Table 3-54.
The secondary power supply must be in the form of an electrical service provided by a power
company. Generators are not considered secondary electrical power supplies under this
paragraph. (Generators are discussed in Appendix M.)
Table 3-54 Reasons for an ADO to find a Primary Power Supply Extremely
Unreliable
Reasons include…
a. An extensive, documented, history of cable cuts.
b. Extraordinary meteorological conditions.
c. An extensive, documented, record of commercial utility interruptions.
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3-90. Seismic Standards.
On June 14, 1993, the DOT published a final rule, 49 CFR part 41 implementing the provisions
of Executive Order 12699, Seismic Safety of Federal and Federally-Assisted or Regulated New
Building Construction, effective July 14, 1993. The result of the final rule is that that any
building constructed with AIP funds must be designed and constructed in accordance with
seismic standards of 49 CFR § 41.120. Therefore, the costs to include required seismic standards
in an AIP project are allowable.
3-91. Site Preparation Costs for Ineligible Work.
a. Prorating Ineligible Site Preparation Costs. In some cases, a sponsor may determine
that it is beneficial to undertake site preparation for both eligible and ineligible development
through one construction contract. The sponsor cannot include this ineligible site preparation
work unless the sponsor has obtained approval from the ADO in advance (see Paragraph 3-39 for
the rules regarding ADO approval of contracts containing ineligible costs).
b. Funding Incidental Site Preparation Costs. There is only one situation where site
preparation for ineligible facilities is allowable. This situation is when clearing, grading,
grubbing, or related work for an eligible AIP project inadvertently overlaps the site preparation
area for an ineligible facility. Examples are included in Table 3-55.
Table 3-55 Allowability Examples of Site Preparation for Ineligible Facilities
For the following situation… The extra site preparation costs are…
a. A project to improve a runway safety area overlaps Allowable. This is because the sites
the grading work needed for an FAA-owned approach overlap.
lighting system.
b. A project to build an eligible apron is adjacent to the Not allowable. The sites do not overlap.
proposed site for an exclusive use maintenance
facility. The sponsor has requested minor site
preparation for the maintenance facility be included in
the apron project.
3-92. Spare Part Costs.
FAA policy allows sponsors to acquire spare parts in very limited circumstances. The cost for
spare part is allowable if the criteria in Table 3-56 can be met.
3-71
Table 3-56 Spare Part Requirements
All of the following criteria must be met…
a. The spare parts are for eligible airport visual aids listed in the current version of Advisory Circular
150/5340-26, Maintenance of Airport Visual Aid Facilities.
b. The spare parts are included in the same grant that installs the airport visual aid.
c. The cost of the spare parts does not exceed 10% of the total cost of the airport visual aid.
d. The total cost for the spare parts does not exceed $10,000.
e. The spare parts are minor components of the airport visual aid.
f. The sponsor can replace the spare parts using their own staff.
g. The ADO believes the sponsor will be able to store or accurately account for the spare parts
inventory.
3-93. Sponsor Furnished Materials or Supplies.
The sponsor requirements for using sponsor furnished materials or supplies within an AIP
funded project are contained in Paragraph U-3.
The ADOs ability to concur with the use of sponsor furnished materials or supplies and use AIP
funding on these items (and/or associated installation) depends on whether the material or
supplies have been procured per 2 CFR §§ 200.317-200.326 (see Appendix U) and meet all of
the requirements shown in Table 3-57. The ADO has the option of relying on the sponsor’s
written statement regarding the sponsor’s ability to meet these requirements. The ADO also has
the option of requiring the sponsor to provide additional support documentation.
The ADO must provide a copy of the written determination (including the approval of force
account work, if applicable) to the sponsor and place a copy in the grant file. As discussed in
Paragraph 4-12, per 2 CFR § 200.434 (Paragraph 12 in Attachment B of OMB Circular A-87,
Cost Principles for State, Local, and Indian Tribal Governments), sponsors are prohibited from
using sponsor furnished materials or supplies against the sponsor’s share of a grant, unless
approved as part of force account work.
3-72
Table 3-57 Rules for Sponsor Furnished Materials or Supplies
If the sponsor furnished materials or The following can be funded with Examples that
supplies… AIP… potentially meet
these requirements
include…
a. Meets all of the following: The materials or supplies and the ALCMS modifications.
associated installation, testing and
(1) Meets the procurement Certified airfield
inspection of the equipment are AIP
requirements of lighting equipment
eligible (provided all AIP requirements
2 CFR §§ 200.317-200.326. with only one
are met).
manufacturer.
(2) Meets all required Federal
contract provisions for
equipment procurement,
including Buy American.
(3) Meets all applicable FAA
technical standards for material
or supply.
(4) Is approved by the ADO for
force account work (see
Paragraph 3-53).
b. Only meets the applicable FAA Installation, testing, and inspection Sponsor preferred
technical standards for material or only (the cost of the materials or airfield lighting
supply. supplies is not eligible). equipment.
Sponsor preferred
access control
cameras.
c. Does not meet all applicable FAA Neither the materials or supplies nor Materials or supplies
technical standards for material or the associated installation testing, with unapproved
supply. and inspection (all ineligible). modifications to FAA
standards.
In addition the materials may not be
used on the project.
d. Are prohibited from Federal funding The equipment, installation testing, Certified airfield light
(even if it meets FAA technical and inspection (and any other emitting diode (LED)
standards). associated cost) are not eligible. lighting equipment
that is prohibited from
Installation of cans and conduit are
AIP funding.
allowable as part of an AIP funded
pavement project only if the ADO has
determined that they will reduce the
need to disturb the AIP funded
pavement at a later date.
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3-94. Temporary Construction Costs.
If the ADO makes a determination that uninterrupted operation of the airport is necessary and
that such operation could not be continued without temporary construction, costs of temporary
construction are allowable even though a portion of the work cannot be salvaged. The costs of
the temporary construction must be determined by the ADO to be both necessary and reasonable.
Costs that are unreasonable are not allowable and the ADO has the option of requiring the
sponsor to use lesser cost alternatives if these alternatives meet the project need. In general,
temporary construction that includes new airfield pavement such as a temporary visual runway
or a runway extension is unallowable without extraordinary and significant justification. The
ADO must coordinate with, and obtain APP-400 and APP-500 approval, to include new airfield
pavements as temporary construction measures.
Examples of allowable temporary construction are included in Table 3-58.
Temporary construction often results in pavement, facilities, or NAVAIDs that may have value
to the airport once the construction is complete. The ADO has the option to concur with a
sponsor’s request to keep the temporary improvement in place (or relocate it to another location
on the airport). However, relocation, rehabilitation, maintenance, and/or replacement of the
improvement is not automatically justified for AIP funding unless the improvement would have
been eligible and justified as a stand-alone project.
For items that have salvage value, such as NAVAIDs, the sponsor must follow the disposal
requirements outlined in Paragraph 5-67. In addition, the ADO has the option of requiring the
sponsor (normally through a special condition in the grant agreement) to transfer the item to an
airport that is eligible for the item. The automated AIP system contains the current available
special conditions.
Table 3-58 Examples of Allowable Temporary Construction
a. Temporary measures required to protect air and water quality.
b. The acquisition and installation of interim non-Federal NAVAIDs if the ADO determines they are
necessary to provide visual or instrument capability during an extended period of time during the
construction of the AIP project.
c. The acquisition and installation of interim Federal NAVAIDs if the FAA Air Traffic Organization (ATO)
determines they are necessary to provide visual or instrument capability during an extended period of
time during the construction of the AIP project. These costs are normally included in the
reimbursable agreement between the ATO and the sponsor.
d. Construction of a haul road to avoid runway and/or taxiway crossings.
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Table 3-58 Examples of Allowable Temporary Construction
e. Measures to designate a taxiway as temporary runway in accordance with the current version of FAA
Order 7110.19, Designation Taxiways as Temporary Runways.
f. An interim terminal facility if there is no other reasonable way to accomplish the project. The interim
facilities must be only that necessary to keep the operations in motion. The facilities must only be
built for this interim use. Costs to develop the facility into a follow on use are not allowable.
3-95. Thermoplastic Markings.
The FAA standard specifications allow a sponsor to select and use thermoplastic markings
instead of paint for airfield markings. However, as of the publication date of this Handbook,
thermoplastic materials cost more than paint, both on a first cost and a life cycle cost basis (based
on a life cycle for paint of approximately 3 years and thermoplastic markings of up to 7 years).
In order to determine that the use of thermoplastic markings meet the statutory requirement for
reasonable costs, the sponsor must provide a life cycle cost comparison that demonstrates that
the costs are reasonable and verification that there are more than one manufacturer of
thermoplastic markings. The ADO must retain a copy of the sponsor’s successful life cycle cost
analysis in the grant file.
3-96. Used Equipment Costs.
The acquisition of used equipment is allowable provided it meets FAA specifications and has an
acceptable useful life based on the proposed purchase price.
The GSAXcess program is an excellent source for free used equipment. The GSAXcess website
and the current version of Advisory Circular 150/5150-2, Federal Surplus Personal Property for
Public Airport Purposes, are good resources for a sponsor to learn more about this program.
3-97. Utility Costs.
The installation, improvement, reconstruction, or repair of water, gas, and electric (primary
power supply only) is allowable to the extent the work serves eligible areas and facilities and the
utility is an allowable cost for the facility. For instance, gas, water, and electric are needed for a
terminal building, whereas only electric is needed for a general aviation aircraft storage hangar.
If the utility installation will serve both eligible and ineligible areas/facilities, the allowable cost
is limited to prorated share for the eligible portion. The ADO will determine the method of
proration. Table 3-59 contains an example of prorated utility costs. If the utility work is required
for the AIP portion of the airport, as well as for other non-AIP portions of the airport, the ADO
can presume that the determination of the best interest of the Federal government required in
Paragraph 3-39 has been met. However, the other requirements for including ineligible or non-
AIP funded work in the contract in Paragraph 3-39 must be met.
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Per FAA policy, utility projects are not eligible as stand-alone projects.
Table 3-59 Utility Costs Proration Example
For the following situation… The allowable prorated amount would be…
A project to run electrical lines to a T-Hangar area Two thirds of the total cost of the electrical line
also contains an ineligible office building. The T- installation (including associated design,
Hangars are estimated to use 2/3 of the electrical inspection, etc.).
load and the ineligible office building will use the
remainder.
3-98. Value Engineering.
The cost for value engineering is allowable if all of the sponsor requirements in Paragraph U-10
and the ADO requirements in Paragraph 3-54 are met.
Section 12. Costs Necessary (Allowable Cost Rule #1).
3-99. Requirements for Costs to be Necessary.
Per 49 USC § 47110(b)(1), the ADO must only approve costs that are directly necessary to
accomplish the project. All other costs are considered unallowable.
Section 13. Costs Incurred after Grant Executed (Allowable Cost Rule #2).
3-100. Rules for Reimbursing Project Costs Prior to the Grant (or LOI) Execution Date.
Unless specifically allowed in the Act, 49 USC § 47110(b)(2) requires that all project costs must
be incurred after the grant execution date. Table 3-60 list the entire set of rules regarding when
project costs can be incurred in relationship to the grant execution date, the type of funding, and
the type of project.
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Table 3-60 Rules for Reimbursing Project Costs Prior to the Grant Execution Date
For… The following rules apply…
a. Allowable costs using Per 49 USC § 47110(b)(2)(C), project costs must have been incurred after
any or all of the 9/30/1996.
following types of funds:
All allowable costs after this date may be reimbursed with these types of
• Passenger funds, regardless of whether they were incurred before the grant was
Entitlement executed as long as all other applicable AIP requirements have been met.
• Cargo Entitlement
• Nonprimary
Entitlements
b. Allowable costs using Per 49 USC § 47110(b)(2)(A), project costs must have been incurred after
any or all of the the grant execution date. The only exception for these three types of
following types of funds: funding are (these exceptions are statutory and are the only exceptions
allowed):
• Discretionary
(1) 14 CFR part 150 Projects. Per 49 USC § 47110(b)(2)(B), if the project
• State is specifically contained in an FAA approved 14 CFR part 150 program
Apportionment (including schools and medical buildings), all of the project costs can
(including Insular) be reimbursed. If a school or medical building is being mitigated
• Alaska outside an FAA approved 14 CFR part 150 program, it cannot be
Supplemental reimbursed.
(2) Project Formulation (Development Projects). Per
49 USC § 47110(c), project formulation costs must be directly related
to the project. These are costs that are normally incurred before the
project starts and would not have been incurred otherwise. Examples
of allowable project formulation costs are included in Paragraph 3-86.
Per FAA policy, only land acquisition may be reimbursed under a
stand-alone grant.
(3) Project Formulation (Planning Projects). Per 49 USC § 47110(c),
costs necessary and directly incurred in developing the work scope of
a planning project can be reimbursed.
(4) Land Acquisition. Per 49 USC § 47110(c), land acquisition is
considered a project formulation cost and can therefore be reimbursed
with all types of funding. The sponsor must have purchased the land
after May 13, 1946. Per FAA policy, land acquisition may be
reimbursed under a stand-alone grant for land acquisition.
(5) Letters of Intent. Per 49 USC § 47110(e), all costs incurred after the
LOI execution date, and only project formulation costs incurred before
the LOI execution date, may also be reimbursed with any type of
funding.
(6) Design-Build Projects. The FAA believes that under
49 USC § 47142(b), the design and construction costs may be
reimbursed with these types of funds if this contracting method is
approved in advance by the ADO and all other applicable AIP
requirements have been met. ADO approval is not a commitment of
funds. Approval in advance by the ADO does not guarantee that the
project will be considered or given priority for discretionary by the
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Table 3-60 Rules for Reimbursing Project Costs Prior to the Grant Execution Date
For… The following rules apply…

ADO. Therefore, the sponsor must have an alternative funding source
available to fund the project without discretionary funding.
(7) Certain MAP Projects. Per 49 USC § 47118(f)(2), the FAA has the
option to use discretionary to reimburse approved MAP projects if the
sponsor incurred the costs during fiscal years 2003 and 2004.
(8) Climate-Related Conditions. In very limited circumstances,
49 USC § 47110(b)(2)(D) provides the FAA with the option to allow
reimbursement for a project if the project meets all of the conditions in
Table 3-61 through Table 3-66.
Table 3-61 Sponsor Assumption of Risk
The sponsor acknowledges that it assumes all risk by…
Sponsor Assumes All Risk. The sponsor must include a statement in the request for FAA
acknowledgement of its request to be considered for reimbursement that includes the following sponsor
assumption of risk:
“Because the FAA cannot guarantee the availability of any types of AIP funding on the project, the
sponsor must be prepared to complete the project using other sources of funds even if the sponsor meets
all of the requirements for discretionary reimbursement. There are no circumstances under which the
sponsor can infer that the project will be funded with discretionary funds.”
Table 3-62 Legislative Requirements that Must be Met for FAA to Consider
Reimbursement Based on Climate-Related Conditions
The ADO has determined that the sponsor has met all of the following legislative requirements…
a. Per 49 USC § 47110(b)(2)(D), construction of the project must have started in the same fiscal year as
execution of the grant agreement. A construction project for which construction started in a prior
fiscal year cannot be reimbursed with discretionary funding.
b. Per 49 USC § 47110(b)(2)(D)(i), the airport must be in an area that experiences a shortened
construction season due to climatic conditions, which the FAA has determined to mean cold weather.
To make this determination, the FAA reviewed reports from the American Association of State
Highway and Transportation Officials (AASHTO) and the Federal Highway Administration on
construction impacts due to weather and found that shortened construction season was understood
to be related to work such as earthwork that is shut down or suspended during the winter cold
weather.
c. Per 49 USC § 47110(b)(2)(D)(ii), all other applicable AIP requirements have been met.
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Table 3-62 Legislative Requirements that Must be Met for FAA to Consider
The ADO has determined that the sponsor has met all of the following legislative requirements…
d. Per 49 USC § 47110(b)(2)(D)(iii), the sponsor must notify the Airports District Office or regional office
(ADO) in advance of starting the work of the sponsor’s intent to request discretionary funding for this
project. The sponsor must complete FAA Form 5100-142, Sponsor Request for FAA
Acknowledgement for Cold Weather Early Start, at least 30 calendar days prior to issuing a Notice to
Proceed. The ADO must forward the sponsor’s request to APP-500 for processing.
e. Per 49 USC § 47110(b)(2)(D)(iv), the sponsor must have an alternative funding source available to
fund the project. Because the sponsor has agreed to fully fund the complete project if AIP
discretionary funding is not provided, the sponsor’s alternative funding plan may include AIP future
year entitlement funding or Passenger Facility Charge funding. If the sponsor’s alternative funding
plan does include future AIP entitlement funding which then impacts other future project requests, the
sponsor will need to consider other options of funding those future projects.
f. Per 49 USC § 47110(b)(2)(D)(v), the sponsor’s decision to proceed with the project in advance of
execution of the grant agreement does not raise the priority assigned to the project by the FAA.
g. Per 49 USC § 47120, the FAA will give lower priority to discretionary project requests if the sponsor is
using its entitlement funds for projects that have a lower priority than the projects for which
discretionary funds are being requested. Therefore, this cold weather provision cannot be requested
in a year when the sponsor is using its entitlement funds on a lower priority project.
Table 3-63 Implementation Requirements that Must be Met for FAA to Consider
The requirements that APP-500 will consider are…
a. The request is not due to short-term disruptions. Short-term disruptions that prevent construction
from occurring, including but not limited to rain, wind, tropical weather, fog, snowfall, ice, or high
temperatures do not satisfy the requirement of a shortened construction season due to climatic
conditions. This is because construction project specifications, including the FAA standard
specifications, include provisions for inclement weather and temporary shutdowns.
b. The request is not due to operational considerations. Operational or coordination considerations,

such as the desire to reopen before winter, to allow planned construction sequencing, or to meet a
particular aeronautical chart publication date do not satisfy the requirement of a shortened
construction season due to climatic conditions.
c. The request is for a project that may be impacted. The FAA has generally identified paving
projects or pavement rehabilitation projects as those that are most likely to be impacted by a
shortened construction season due to climatic conditions. In reviewing the request, APP-500 will
consider the type of construction included in the project, the duration of the construction activities that
may be impacted by a shortened construction season and the date by when the sponsor indicates
that construction must begin to avoid impacts of a shortened construction season.
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Table 3-63 Implementation Requirements that Must be Met for FAA to Consider
The requirements that APP-500 will consider are…
d. The airport is in an impacted area. Generally, the APP-500 will consider issuing an
acknowledgement if there is at least one month in the average calendar year with an average high
temperature below 40 degrees Fahrenheit and specific construction activities required for the project
would be impacted by the cold temperatures.
e. An early start may be justified. The sponsor has demonstrated that the project requires an early
start in order to fit the construction schedule into the construction season by providing the length of
the construction project, date by which construction must begin in order to avoid being negatively
impacted by cold weather conditions.
(1) For example, this provision would not likely be justified for a 90-day paving project where the
ADO anticipates that a grant could be issued in May.
(2) The ADO may determine that this provision is justified for a 180-day paving project and grants are
not expected to be able to be issued until July.
Table 3-64 Alternative Funding Requirements that Must be Met for FAA to
Consider Reimbursement Based on Climate-Related Conditions
The sponsor’s alternative funding plan includes…
a. The sponsor may include future year entitlements in the alternative funding plan. However, if the
sponsor’s Capital Improvement Program (CIP) previously identified projects that the sponsor planned
to fund with those entitlements, the sponsor must revise their CIP accordingly.
b. If the sponsor proposes using future year entitlements, in those future years, the requested
reimbursement may impact the sponsor’s ability to fund other projects that year with discretionary
funds, based on the requirement to fund the highest priority projects first with the sponsor’s
entitlement funds.
c. If the sponsor has started construction and discretionary funding is not provided in the year in which
the construction started, the project is ineligible for discretionary funding in this, or future years.
d. For phased projects, these requirements must be applied individually to each phase or grant request.
Funding of one phase of a phased project does not establish eligibility for funding either prior or
subsequent phases.
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Table 3-65 Request Requirements that Must be Met for FAA Consideration of
The requirements are…
a. The sponsor must submit the written request to the ADO before contract award and before issuing
Notice to Proceed to the selected contractor.
b. The sponsor must allow at least 30 calendar days following the submittal of a complete and accurate
submittal to the ADO to receive a determination from APP-500.
c. Upon receipt of a sponsor’s request for consideration, the ADO must review the request for
completeness. If the request is incomplete, the ADO must return the request to the sponsor for
correction. If the request is complete, the ADO must forward the request to APP-500. The ADO must
submit the completed sponsor request, with ADO Staff Recommendation to APP-500 within nine
business days of receiving the sponsor request.
Table 3-66 APP-500 Acknowledgement Process for Requests for Reimbursement

Based on Climate-Related Conditions
The requirements are…
a. APP-500 will notify the ADO whether or not the proposed project can be considered for
reimbursement based on climate related conditions.
b. After APP-500 notifies the ADO whether or not the proposed project can be considered under this
limited exception, the ADO must advise the sponsor of the determination. The ADO notification to the
sponsor may be in writing or by e-mail. The determination is solely a determination as to whether the
sponsor has met the necessary requirements for the FAA to be able to consider AIP discretionary
funding subsequent to contract award or NTP, and does not in any way represent an actual
commitment of discretionary funds.
c. APP-500 will attempt to respond to a sponsor’s request within 30 days after receipt of the request.
However, only actual receipt by a sponsor of an APP-500 determination that the project will be
acknowledged by the FAA as having been requested for consideration for discretionary funding for a
Cold Weather Construction Project constitutes FAA acknowledgement. The sponsor cannot consider
lack of a response within 30 days is the equivalent of APP-500 acknowledgement.
Section 14. Costs Reasonable (Allowable Cost Rule #3).
3-101. Sponsor Requirements.
Per 2 CFR § 200.323(a), sponsors must perform a cost or price analysis in connection with every
procurement action in excess of the Simplified Acquisition Threshold (provided in Table U-7).
However, the ADO must determine that costs are reasonable to comply with
49 USC § 47110(b)(3). Therefore, all noncompetitive procurement actions (including change
orders, supplemental agreements, and contract modifications) require a cost or price analysis
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regardless of cost. Table 3-67 lists the type of analysis that the sponsor must perform and the
documents the sponsor must submit for various procurement scenarios. Paragraph U-21 contains
guidance to sponsors on how to perform price and cost analyses. The requirements for change
orders, supplemental agreements, and contract modifications are contained in Paragraph 5-35.
Table 3-67 Sponsor Requirements for Cost Reasonableness
For the following… The sponsor And the sponsor must submit all of the following…
must perform a…
a. Land and Cost Analysis (1) Appraisals and review appraisals.

easement
(2) A statement signed by the sponsor that the cost
acquisition
analysis was performed that includes the sponsor’s
recommendation that the FAA accept the statement
and analysis as evidence of cost reasonableness.
(3) Negotiated agreements amount.
(4) Copy of the signed negotiated agreement only if
(5) Any other support documentation requested by the
ADO.
b. Equipment Price Analysis (1) Engineer’s estimate.

acquisition and (if the cost is in
(2) A written statement signed by the sponsor that the
construction where excess of the
cost is reasonable. If a price analysis is required, the
there is adequate Simplified
sponsor must include in this statement that a price
competition (two or Acquisition
analysis was performed.
more bidders by Threshold
sealed bids) (provided in (3) Bid tabulations.
Table U-7))
(4) Copy of the signed contract only if requested by the
ADO.
ADO.
c. Equipment Cost Analysis (1) Engineer’s estimate.

acquisition and
construction where
there is not
adequate
competition (one
bidder, sole (3) Bid tabulation (one bidder), proposal (sole source,
source, design/build, construction manager-at-risk), or winning
design/build, small quote (small purchase).
purchase,
(4) Copy of the signed contract (or full set of quotes for
construction
small purchase) only if requested by the ADO.
manager-at-risk,
etc.) (5) Any other support documentation requested by the
ADO.
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Table 3-67 Sponsor Requirements for Cost Reasonableness
For the following… The sponsor And the sponsor must submit all of the following…
must perform a…
d. Negotiated Cost Analysis (1) Independent fee estimate.

professional
services (such as
consultant costs or
contract
modifications to a
professional (3) Amount of contract.
services contract)
(4) Copy of the signed contract only if requested by the
ADO.
ADO.
e. Non-negotiated Price Analysis (if (1) Advertised pricing.

services (such as the cost is in
(2) A written statement signed by the sponsor that the
newspaper excess of the
cost is reasonable. If a price analysis is required, the
advertisements Simplified
sponsor must include in this statement that a price
and rental of Acquisition
analysis was performed.
facilities for a Threshold
public hearing) (provided in (3) Quote for services (or sponsor’s estimate based on
Table U-7)) advertised price).
ADO.
f. Non-negotiated Price Analysis (if (1) A written statement signed by the sponsor that the
service based on the cost is in cost is reasonable. If a price analysis is required, the
law or regulation excess of the sponsor must include in this statement that a price
(such as utility Simplified analysis was performed.
work by the utility Acquisition
(2) Quote or signed contract.
company or a Threshold
reimbursable (provided in (3) Any other support documentation requested by the
agreement with Table U-7)) ADO.
the FAA Air Traffic
Organization
(ATO))
g. Sponsor force Cost Analysis (1) All of the documentation required in Paragraph 3-53.
account planning,
engineering or
construction
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3-102. ADO Review Requirements.
In order to fund a project or make payment on a grant, 49 USC § 47110(b)(3) requires a cost
reasonableness determination. Per FAA policy, the ADO, not the sponsor, makes the
determination that the project costs are reasonable. This reasonableness determination is not an
action that is covered by sponsor certification.
In order for the ADO to make a cost reasonableness determination, the ADO must review the
documents submitted by the sponsor per Paragraph 3-101.
3-103. Documentation of ADO Determination.
Table 3-68 contains the documentation requirements for ADO cost reasonableness
determinations. If an ADO determines that any of the costs are unreasonable, the ADO has the
option to document this in writing to the sponsor and/or the grant file, however, this
documentation is not mandatory.
Table 3-68 Documentation of ADO Cost Reasonableness Determinations
For… The ADO must document its determination by…
a. Grants not based on If the ADO finds the documentation acceptable, the ADO may issue
estimates. the grant. By issuing the grant, the ADO is documenting that they
have found the costs to be reasonable.
In the specific instance of a state block grant that is not based on
estimates, the ADO may rely on the state’s signature of the grant
application as documentation that the state has found all costs to be
reasonable.
b. Grants based on estimates In the rare instance that an ADO issues a grant or part of a grant
based on estimates, the ADO must make the cost reasonableness
determination before the sponsor receives a grant payment for the
work. In this instance, the ADO must document their cost
reasonableness determination in writing and place a copy in the
grant file.
In the specific instance of a state block grant that is based on
estimates, the ADO may rely on the state’s request for a grant
payment for the work as documentation that the state has found all
costs to be reasonable.
c. Change Orders, Following the process outlined in Paragraph 5-35.

Supplemental Agreements,
and Contract Modifications
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Section 15. Costs Not in Another Federal Grant (Allowable Cost Rule #4).
3-104. Requirement for Costs to Not be in Another Federal Grant.
Per 49 USC § 47110(b)(4), the cost must not be incurred in a project for airport development or
airport planning for which other Federal assistance has been granted. Per FAA policy, AIP must
not be used for a project cost that has already been covered in another Federal grant. In other
words, the costs must not be paid for by the Federal government more than once, and may not
cause the Federal share percentage of the project to exceed the Federal share allowed in
49 USC § 47109. Note that this requirement does not prohibit another Federal agency from
providing funding to a sponsor to be used for the local share if that Federal agency permits its
funds to be used for local share.
Section 16. Costs within Federal Share (Allowable Cost Rule #5).
3-105. Allowable Federal Share Requirement.
Per 49 USC § 47110(b)(5), the total allowable Federal costs cannot exceed the maximum Federal
cost that is in the grant agreement (except as allowed within the amendment rules per, Section 7
of Chapter 5).
Section 17. No Unreasonable Delay in Completion.
3-106. Requirement for No Unreasonable Delay in Project Completion.
Per 49 USC § 47106(a)(4), the ADO cannot issue a grant to a project if the ADO is aware of
circumstances that will unreasonably delay project completion. For instance, the ADO might
delay putting a project under grant if there are runway closure timing issues that have not been
adequately worked out with the airlines.
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3-86
Chapter 4. What AIP funding is available?
4-1. Legislation Needed to Issue AIP Grants (Authorization/Appropriation).
49 USC § 47104(a) allows the Administrator to issue grants for airport planning and
development in the United States. In order to be able to issue grants and operate the AIP grant
program, the FAA normally needs both an authorization and an appropriation.
a. Authorization. The authorization is often referred to as the FAA Bill or Reauthorization

and may be passed by Congress for one or more years. The authorization defines the annual
funding level for AIP and gives the FAA contract authority to issue grants. The authorization
updates 49 USC § 48103(a) to reflect the amount authorized for airport planning and airport
development under 49 USC § 47104, airport noise compatibility planning under
49 USC § 47505(a)(2), and carrying out noise compatibility programs under 49 USC § 47504(c).
At the time this Handbook was published, AIP was operating under the Consolidated
Appropriations Act, 2018 (Public Law 115-141).
b. Appropriation. The appropriation is an annual budget that Congress establishes for the
FAA. The appropriation allows the FAA to incur obligations and make payments for specific
purposes. Congress may also use the appropriation to reduce the authorized AIP funding level
from the levels set by the authorization for the current year.
4-2. Airport and Airway Trust Fund (Source of AIP).
49 USC § 48103 authorizes revenue for AIP from the Airport and Airway Trust Fund, which is
commonly referred to as the Trust Fund. The Airport and Airway Revenue Act of 1970 created
the Trust fund to provide a dedicated source of funding for the aviation system.
26 USC § 9502(c) (the Internal Revenue Code of 1986) authorizes funds to be made available
from the Trust Fund for AIP.
The revenue sources of the Trust Fund can be found in Appendix V.
4-3. Calendar Year Used for Passenger Boardings, Entitlements, and Cargo Landed
Weight.
49 USC § 47102(15) defines the time period for calculating the number of passenger boardings
at an airport as in the prior calendar year. For example, the passenger boardings set at the
beginning of FY 2014 are the passenger boardings in calendar year 2012. These passenger
boardings are used to calculate passenger entitlements.
Although not defined in 49 USC § 47102(10), the time period for calculating the landed cargo
weight at an airport is also in the prior calendar year.
4-4. Categories of AIP Funding (Including Calculations and Legislative References).
Once an authorization and an appropriation are in place, the approved AIP funding is split into
defined categories and types according to formulas in the Act. A detailed summary of the AIP
fund categories, fund types, and associated calculation methods in Table 4-1. Table 4-2 shows
4-1
the actual percentage of AIP funding by fund type in fiscal year 2011. The calendar year used to
determine the passenger boardings, entitlements, and cargo landed weight is discussed in
Paragraph 4-3.
Table 4-1 AIP Funds by Category, Type, and Calculation
Fund Type and How Calculated if less than How Calculated if $3,200,000,000
Legislative Reference $3,200,000,000 in AIP is or More in AIP is Available in the
Available in the Fiscal Year Fiscal Year
Passenger Entitlement
a. Passenger Entitlement Per 49 USC § 47114(c)(1)(A): Per 49 USC § 47114(c)(1)(C):

49 USC § 47114(c)(1)
$7.80 for each of the first 50,000 $15.60 for each of the first 50,000
passenger enplanements. passenger enplanements.
$5.20 for each of the next 50,000. $10.40 for each of the next 50,000.
$2.60 for each of the next $5.20 for each of the next 400,000.
400,000.
$1.30 for each of the next 500,000.
$0.65 for each of the next
$1 for each passenger enplanement
500,000.
> 1 million enplanements.
$0.50 for each passenger
Per 49 USC § 47114(c)(1)(C), The
enplanement > 1 million
annual minimum is 1 million and the
enplanements.
annual maximum is $26 million per
Per 49 USC § 47114(c)(1)(B), the airport.
annual minimum is $650,000 and
Per 49 USC § 47114(f), the amount
the annual maximum is $22
of entitlement funds for large and
million per airport.
medium hub airports collecting a
Per 49 USC § 47114(f), the PFC are reduced based on the PFC
amount of entitlement funds for collection level approved for the
large and medium hub airports airport. If the airport is collecting at
collecting a PFC are reduced $3.00 or less, the amount of
based on the PFC collection level entitlements is reduced by 50%. If
approved for the airport. If the the airport is collecting more than
airport is collecting at $3.00 or $3.00, the amount of entitlements is
less, the amount of entitlements is reduced by 75%. In Hawaii, this
reduced by 50%. If the airport is calculation is modified based on the
collecting more than $3.00, the percent of inter-island passengers.
amount of entitlements is reduced
Special Rule for Fiscal Year 2012
by 75%. In Hawaii, this
and 2013: Per
calculation is modified based on
49 USC § 47114(c)(1)(F), an airport
the percent of inter-island
that was a primary airport in 2007,
passengers.
but in calendar year 2009 and/or
Special Rule for Fiscal Year 2010, the annual number of
2012 and 2013: Per passenger boardings was less than
49 USC § 47114(c)(1)(F), an 10,000; an amount equal to the
airport that was a primary airport amount apportioned for that airport
in 2007, but in calendar year in fiscal year 2009 may be
2009 and/or 2010, the annual apportioned during fiscal years
number of passenger boardings 2012 and 2013.
4-2
was less than 10,000; an amount
equal to the amount apportioned
for that airport in fiscal year 2009
may be apportioned during fiscal
years 2012 and 2013.
Cargo Entitlement
b. Cargo Entitlement 3.5% of total AIP available for 3.5% of total AIP available for
49 USC § 47114(c)(2) grants to airports with a total grants to airports with a total
annual landed weight of more than annual landed weight of more than
100 million pounds of all cargo 100 million pounds of all cargo only
only aircraft. Each airport’s cargo aircraft. Each airport’s cargo
entitlements are calculated based entitlements are calculated based
on their percentage of the total on their percentage of the total
landed weight (e.g., an airport with landed weight (e.g., an airport with
5% of the cargo weight would 5% of the cargo weight would
receive 5% of the available cargo receive 5% of the available cargo
entitlements).. entitlements).
Per 49 USC § 47114(c)(2)(C), not
more than 8% of the total cargo
entitlements may be apportioned
for any one airport.
4-3
Amounts Apportioned for General Aviation Airports

Split between Nonprimary Entitlements and State Apportionment.
c. Nonprimary Entitlement None. Per 49 USC § 47114(d)(3)(A), the

49 USC § 47114(d)(3)(A) lesser of $150,000 or 1/5 of an
The exception is if, per
49 USC § 47114(d)(7) airport’s 5-year development cost
49 USC § 47114(d)(7), $650,000
listed in the biennial NPIAS report
for an airport that meets both of
to Congress.
the following criteria:
The exception is if, per
(1) Received scheduled or
49 USC § 47114(d)(7), $1,000,000
unscheduled air service from a
for an airport that meets both of the
large certificated air carrier (as
following criteria:
defined in 14 CFR part 241 or
such other regulations as may (1) Received scheduled or
be issued by the Secretary unscheduled air service from a
under the authority of large certificated air carrier (as
49 USC § 41709) in the defined in 14 CFR part 241 or
calendar year used to such other regulations as may
calculate the apportionment. be issued by the Secretary
under the authority of
(2) Had more than 10,000
49 USC § 41709) in the
passenger boardings in the
calendar year used to calculate
calendar year used to
the apportionment.
calculate the apportionment.
(2) Had more than 10,000
passenger boardings in the
calendar year used to calculate
the apportionment.
d. State Apportionment Per 49 USC § 47114(d)(2), 18.5% Per 49 USC § 47114(d)(3), 20% of
(including Insular) of total AIP available for grants total AIP available for grants minus
49 USC § 47114(d)(2) minus the total nonprimary the total nonprimary entitlements.
49 USC § 47114(d)(3)(B) entitlements.
Per 49 USC § 47114(d)(3)(B),
Per 49 USC § 47114(d)(2), a total 99.38% of the funds remaining
of 99.34% of the funds remaining after the deduction of nonprimary
after the deduction of nonprimary entitlement is apportioned for
entitlement is apportioned for airports based on an
airports based on an area/population formula within the
area/population formula within the 50 States, the District of Columbia,
50 States, the District of Columbia, and Puerto Rico.
and Puerto Rico.
The remaining 0.62% is
The remaining 0.66% is apportioned for airports in the
apportioned for airports in the insular areas (Guam, American
insular areas (Guam, American Samoa, the Commonwealth of the
Samoa, the Commonwealth of the Northern Mariana Islands, and the
Northern Mariana Islands, and the U.S. Virgin Islands).
U.S. Virgin Islands).
4-4
Alaska Supplemental
e. Alaska Supplemental Per 49 USC § 47114(e)(1), Per 49 USC § 47114(e)(4),

49 USC § 47114(e) Alaskan airports are apportioned at Alaskan airports are apportioned at
least as much money as they were least double as much money as
apportioned in fiscal year 1980 they were apportioned in fiscal
under Section 15(a)(3)(A) of the year 1980 under Section
Airport and Airway Development 15(a)(3)(A) of the Airport and
Act of 1970. This amount is Airway Development Act of 1970.
$10,672,557. This doubled amount is
$21,345,114.
Small Airport Fund

This is a calculation, not a set aside fund.
f. Small Airport Fund The Small Airport Fund is not an The Small Airport Fund is not an
49 USC § 47116 actual stand-alone set-aside fund. actual stand-alone set-aside fund.
It is merely a calculation to ensure It is merely a calculation to ensure
that a required level of that a minimum level of
discretionary is used on small discretionary is used on small
airports. airports.
A total of 87.5% of the amount of A total of 87.5% of the amount of
passenger entitlement funds passenger entitlement funds
reduced from large and medium reduced from large and medium
hub airports (per hub airports (per
49 USC § 47114(f)) is used to 49 USC § 47114(f)) is used to
calculate the Small Airport Fund. calculate the Small Airport Fund.
The Small Airport Fund is divided The Small Airport Fund is divided
by airport type as follows: by airport type as follows:
1/7 to small hub. 1/7 to small hub.
2/7 to general aviation and reliever 2/7 to general aviation and reliever
airports, as well as and certain airports, as well as and certain
public use airports with restrictions public use airports with restrictions
(see Table 4-3). (see Table 4-3).
4/7 to nonhub primary and non- 4/7 to nonhub primary and non-
primary commercial service. primary commercial service.
4-5
Discretionary
Includes Discretionary Set Asides and Remaining Discretionary
Remainder of AIP after above distributions.
Discretionary Set Asides
g. Noise and At least 35% of discretionary, but At least 35% of discretionary, but
Environmental Set not more than $300 million. not more than $300 million.
Aside
49 USC § 47117(e)(1)(A)
h. MAP Set Aside At least 4% of discretionary. At least 4% of discretionary.

49 USC § 47117(e)(1)(B)
i. Reliever Set Aside None. At least 0.66% (2/3 of 1%) of

49 USC § 47117(e)(1)(C) discretionary.
Remaining Discretionary
Includes Discretionary that Remains after Calculating the Discretionary Set Asides
49 USC § 47115(a)
j. Capacity/ Safety/ 75% of remainder of AIP after 75% of remainder of AIP after
Security/ Noise above distributions and set-asides, above distributions and set-asides,
(C/S/S/N) and and
49 USC § 47115(c)
75% of 12.5% of the returned 75% of 12.5% of the returned
entitlements that are not allocated entitlements that are not allocated
to the Small Airport Fund. to the Small Airport Fund.
k. Pure Discretionary 25% of remainder of AIP after 25% of remainder of AIP after
49 USC § 47115(b) above distributions and set-asides, above distributions and set-asides,
and and
25% of 12.5% of the returned 25% of 12.5% of the returned
entitlements that are not allocated entitlements that are not allocated
to the Small Airport Fund. to the Small Airport Fund.
l. Discretionary from No calculation. This funding is No calculation. This funding is

Converted Entitlements/ obtained from carrying over obtained from carrying over
Apportionments entitlements and apportionments entitlements and apportionments to
49 USC § 47117(f) to the next year. the next year.
This funding is not subject to the This funding is not subject to the
set aside calculation requirements. set aside calculation requirements.
4-6
Table 4-2 Fiscal Year 2017 Final Funding Breakdown by Fund Type
Fund Type Percentage
a. Passenger Entitlement 27.01%
b. Cargo Entitlement 3.50%
c. Nonprimary Entitlements 12.01%
d. State Apportionment 7.99%
e. Alaska Supplemental 0.67%
f. Noise and Environmental Set Aside 3.37%
g. MAP Set Aside 0.39%
h. Reliever Set Aside 0.06%
i. Small Airport Fund 16.33%
j. Capacity/ Safety/ Security/ Noise (C/S/S/N) 4.36%
k. Pure Discretionary 1.45%
l. Discretionary from Converted Entitlements/Apportionments 22.85%
4-5. Types of Potential Funding by Airport Type (Including Airport Type Definitions).
As established in 49 USC § 47104, only public-use airports in the NPIAS are eligible for AIP
funding. These airports are classified into various categories as shown in Table 4-3, along with
the types of potential funding that an ADO can apply to these airport types.
4-7
Table 4-3 Airport Type Criteria and Potential Funding Types
Airport Type And meets all of the following Airport Types of Potential Funding
Criteria (See Paragraphs 4-6 and 4-7
for additional restrictions by
airport and project type)
a. Large Hub (1) Commercial Service Airport. Passenger Entitlement

Publicly owned airport that has at least Discretionary
2,500 passenger boardings each Alaska Supplemental
calendar year and receives scheduled Cargo Entitlement
passenger service. (Note: Privately
State Apportionment – Per
owned airports are not commercial
49 USC § 47114(d)(4), State
service airports per
Apportionment may be used
49 USC § 47102(7) even if the airport
by any size public airport in
has at least 2,500 passenger
Hawaii, Alaska or Puerto Rico.
boardings.)
(2) Primary Airport. A commercial
service airport with more than 10,000
annual passenger boardings per
49 USC § 47102(16).
(3) Meets Large Hub Criteria. 1% or
more of annual passenger boardings
per 49 USC § 47102(11).
b. Medium Hub (1) Commercial Service Airport. Passenger Entitlement

Publicly owned airport that has at least Discretionary
2,500 passenger boardings each Alaska Supplemental
calendar year and receives scheduled Cargo Entitlement
passenger service. (Note: Privately
49 USC § 47114(d)(4), State
boardings.)
49 USC § 47102(16).
(3) Meets Medium Hub Criteria. At least
0.25%, but less than 1% or more of
49 USC § 47102(13).
4-8
c. Small Hub (1) Commercial Service Airport. Passenger Entitlement

Publicly owned airport that has at least Small Airport Fund
2,500 passenger boardings each Discretionary
calendar year and receives scheduled Alaska Supplemental
passenger service. (Note: Privately Cargo Entitlement
49 USC § 47114(d)(4), State
boardings.)
49 USC § 47102(16).
(3) Meets Small Hub Criteria. At least
0.05%, but less than 0.25% or more of
49 USC § 47102(25).
d. Nonhub Primary (1) Commercial Service Airport. Passenger Entitlement

Publicly owned airport that has at least Small Airport Fund
2,500 passenger boardings each Discretionary
calendar year and receives scheduled Alaska Supplemental
passenger service. (Note: Privately Cargo Entitlement
49 USC § 47114(d)(4), State
boardings.)
49 USC § 47102(16).
(3) Meets Nonhub Criteria. More than
10,000, but less than 0.05% or more of
49 USC § 47102(14).
e. Virtual Primary (1) Primary Airport in Last Fiscal Year. Passenger Entitlement
(Scenario 1) A commercial service airport with more Small Airport Fund
than 10,000 passenger boardings two Discretionary (except for
Per calendar years preceding the current C/S/S/N)
49 USC § 47114 fiscal year Alaska Supplemental
(c)(1)(E) Cargo Entitlement
(2) Meets Nonprimary Airport Criteria in
4-9
Current Fiscal Year. Less than State Apportionment – Per
10,000 annual passenger boardings in 49 USC § 47114(d)(4), State
the calendar year before the current Apportionment may be used
fiscal year. by any size public airport in
(3) Reason for Fall of Passenger
Boardings. APP-400 must determine Note: If APP-400 determines
that the cause of the shortfall in that the airport qualifies as a
passenger boardings was a temporary virtual primary, the current
but significant interruption in service by fiscal year passenger
an air carrier to that airport due to an entitlement amount will be
employment action, natural disaster, or equal to entitlement amount in
other event unrelated to the demand the preceding fiscal year.
for air transportation at the affected
airport.
(a) Examples of temporary but
significant interruptions that have
qualified for this provision:
(i) Closure of a single-runway
airport for three months for
runway rehabilitation.
(ii) FAA grounding of the air
carrier serving the airport for
several months.
(b) Examples of shortfalls in
passenger boardings that have not
qualified for this provision:
(i) Air carrier business decisions,
such as canceling lightly-
loaded flights.
(ii) Air carrier business decision to
reduce the number of seats
available in the market by
using smaller aircraft or
removing seats from an
aircraft.
(iii) Nationwide issues such as
pilot shortages or rising fuel
costs. The provision is
specific that the interruption is
to “that” airport, which
excludes issues affecting
many airports.
(iv) The sponsor has not taken all
4-10
reasonable measures to
ensure that enplanements are
correctly reported.
(4) Duration. This virtual primary status is
only good for one fiscal year.
f. Virtual Primary (1) Primary Airport in Fiscal Year 2009. Passenger Entitlement
than 10,000 passenger boardings in Discretionary (except for
Per Section 141(b) calendar year 2007. C/S/S/N)
of the FAA Alaska Supplemental
Modernization and Cargo Entitlement
Fiscal Years 2011 or 2012. Less than
Reform Act of 2012
10,000 annual passenger boardings in State Apportionment – Per
(Public Law 112-95)
either calendar year 2009 or 2010. 49 USC § 47114(d)(4), State
only good for fiscal years 2012 and
2013.
Note: If APP-400 determines
that the airport qualifies as a
virtual primary, the current
fiscal year passenger
entitlement amount will be
equal to entitlement amount in
fiscal year 2009.
g. Virtual Primary (1) Primary Airport in Fiscal Year 2014. Passenger Entitlement
than 10,000 passenger boardings in Discretionary (except for
Per 49 USC § calendar year 2012. C/S/S/N)
47114 (c)(1)(F) Alaska Supplemental
(2) Scheduled Service in Calendar Year
Cargo Entitlement
2015. Had scheduled service at any
point in calendar year 2015 (the year State Apportionment – Per
used to calculate the apportionment for 49 USC § 47114(d)(4), State
fiscal year 2017). Apportionment may be used
Fiscal Year 2017. Less than 10,000
annual passenger boardings in Note: If APP-400 determines
calendar year 2015. that the airport qualifies as a
virtual primary, the current
fiscal year passenger
only good for fiscal year 2017 and
entitlement amount will be
2018, unless extended by Congress.
equal to entitlement amount in
fiscal year 2009.
4-11
h. Nonprimary (1) Commercial Service Airport. Nonprimary Entitlement

Commercial Publicly owned airport that has at least State Apportionment
Service (also 2,500 passenger boardings each Small Airport Fund
referred to as calendar year and receives scheduled Discretionary (except for
Nonhub passenger service. (Note: Privately C/S/S/N)
Nonprimary) owned airports are not commercial Alaska Supplemental
service airports per Cargo Entitlement
boardings.)
(2) Not a Primary Airport. Not a primary
airport because the airport has less
than or equal to 10,000 annual
passenger boardings per
49 USC § 47102(16).
i. General Aviation (1) Public Airport. Per Nonprimary Entitlement

49 USC § 47102(8), a public airport State Apportionment
that is located within a state. Per Small Airport Fund
49 USC § 47102(21), a public airport is Discretionary (except for
an airport used or intended to be used C/S/S/N)
for public purposes that is under the Alaska Supplemental
control of a public agency where the Cargo Entitlement
area used or intended to be used for
the landing, taking off, or surface
maneuvering of aircraft is publicly
owned.
(2) Not a Commercial Service Airport.
Per 49 USC § 47102(8), the airport
must either have no scheduled service,
or scheduled service with less than
2,500 annual passenger boardings
each year.
4-12
j. Reliever (1) Airport Designated as a Reliever by Nonprimary Entitlement

the FAA. The criteria for the FAA to State Apportionment
designate an airport as a reliever is as Small Airport Fund
follows: Discretionary
Alaska Supplemental
(a) Definition in Statute. Per
Cargo Entitlement
49 USC § 47102(23), a reliever is
an airport the Secretary designates Note: To be eligible to receive
to relieve congestion at a the reliever set-aside, per
commercial service airport and to 49 USC § 471117(e)(1)(C),
provide more general aviation the reliever airport must have
access to the overall community more than 75,000 annual
operations, a runway of
(b) How the FAA (Secretary)
greater than 5,000 feet, a
Designates Relievers. Per the
precision instrument landing
current version of FAA Order
procedure, 100 based aircraft,
5090-3, Field Formulation of the
and must relieve an airport
National Program of Integrated
with 20,000 hours of annual
Airport Systems, reliever airports
delays of commercial
must have more than 25,000
passenger aircraft operations.
annual itinerant operations or at
least 100 based aircraft that is
relieving a commercial service
airport that serves a metropolitan
area with a population of at least
250,000 persons or at least
250,000 annual enplaned
passengers, and operates at 60%
of its capacity, or would be
operated at such a level before
being relieved by one or more
reliever airports, or is subject to
restrictions that limit activity that
would otherwise reach 60% of
capacity.
4-13
k. General Aviation (1) Received Large Certificated Air Nonprimary Entitlement

Airport Eligible for Carrier Service. Per State Apportionment
Minimum Primary 49 USC § 47114(d)(7)(A), received Small Airport Fund
Entitlement (per scheduled or unscheduled air service Discretionary (except for
49 USC § 47114 from a large certificated air carrier (as C/S/S/N)
(d)(7)) defined in 14 CFR part 241, or such Alaska Supplemental
other regulations as may be issued by Cargo Entitlement
the Secretary of Transportation under
the authority of 49 USC § 47109) Note that these airports
receive the amount of
(2) Over 10,000 Passenger Boardings.
minimum primary entitlements,
Had more than 10,000 passenger
but as nonprimary
boardings in the calendar year used to
entitlements.
calculate the apportionment, per
49 USC § 47114(d)(7)(B).
l. Privately-Owned, (1) Public Use Airport Meeting Small Airport Fund

Public Use Airport Statutory Limitations. Per Discretionary (except for
meeting Statutory 49 USC § 47102(22)(B)(ii), a privately- C/S/S/N)
Limitations owned airport used or intended to be
used for public purposes that has at
least 2,500 passenger boardings each
year and receives scheduled
passenger aircraft service.
(2) NPIAS Airport. Designated by the
FAA to be a NPIAS Airport.
4-6. Airports that Can Use Each Fund Type (Funding Restrictions by Airport Type).
Table 4-4 provides a comprehensive list of airport limitations by fund type.
Table 4-4 Airports that Can Use Each Fund Type
Fund Type and Legislative Public Use NPIAS Airports that Can Use this Funding
Reference
a. Passenger Entitlement (1) Primary and virtual primary airports.

49 USC § 47114(c)(1)
(2) Airports in the Republic of the Marshall Islands, Federated
States of Micronesia, and Republic of Palau are excluded
per 49 USC § 47115(j).
4-14
Reference
b. Cargo Entitlement (1) Airports that have more than 100,000,000 pounds of
49 USC § 47114(c)(2) landed all-cargo weight annually.
per 49 USC § 47115(j).
c. Nonprimary Entitlement (1) General aviation, reliever, and nonprimary commercial

49 USC § 47114(d)(3) service airports.
per 49 USC § 47115(j).
d. State Apportionment (1) General aviation, reliever, and nonprimary commercial

49 USC § 47114(d)(2) service airports within the specific state or insular area
(except for in Alaska, Hawaii and Puerto Rico, where the
funds can be used on any airport type per
49 USC § 47114(d)(4)).
(2) Primary and virtual primary airports only when the project
is an integrated airport system planning project that
encompasses one or more primary airports per
49 USC § 47114(d)(6).
per 49 USC § 47115(j).
e. Alaska Supplemental (1) Airports located in Alaska.

49 USC § 47114(e)
f. Small Airport Fund (1) Small hub, nonhub, virtual primary, nonprimary
49 USC § 47116 commercial service, and general aviation, and reliever
airports, as well as and certain public use airports with
restrictions (see Table 4-3).
(2) 49 USC § 47116(c), also specifically allows an airport in
block grant states to receive grants directly from the FAA
with small airport funds as if the state were not within the
program.
g. Discretionary: Noise and (1) Airports. Any airport eligible for one of the follow
Environmental Set Aside projects:
49 USC § 47117(e)(1)(A)
(a) Airport Noise Compatibility Planning. Airport noise
compatibility planning under section
49 USC § 47505(a)(2).
(b) Noise Compatibility Program Projects. Airport
noise compatibility program projects approved by the
FAA in a noise compatibility program under
4-15
Reference
49 USC § 47504(c).
(c) Noise Mitigation Projects in a Record of Decision.
Noise mitigation projects approved in an
environmental record of decision for an airport
(d) Compatible Land Use Planning/Projects.
Compatible land use planning and projects carried out
by state and local governments under
49 USC § 47141.
(e) Americans with Disabilities Act of 1990 (ADA)
Projects. Airport development projects (including
equipment) to comply with ADA per
49 USC § 47102(3)(F).
(f) Clean Air Act Projects. Airport development
projects (including equipment) to comply with the
Clean Air Act (42 USC § 7401) per
49 USC § 47102(3)(F).
(g) Federal Water Pollution Control Act (commonly
referred to as the Clean Water Act) Projects.
Airport development projects (including equipment)
required to comply with the Federal Water Pollution
Control Act (33 USC § 1251 et seq) per
49 USC § 47102(3)(F). In addition, water quality
mitigation projects to comply with the Federal Water
Pollution Control Act that are approved in an
development project may use this type of funding.
(h) Voluntary Airport Low Emissions (VALE) Projects.
Projects that meet the requirements of the VALE
program per 49 USC § 47102(3)(K) and
49 USC § 47102(3)(L). These requirements are
discussed in Section 5 of Chapter 6.
(2) Non-Airport Sponsors. Any non-airport sponsors that is
eligible for one of the follow projects:
(a) Airport Noise Compatibility Planning. Airport noise
compatibility planning under section
49 USC § 47505(a)(2).
(b) Noise Compatibility Program Projects. Airport
noise compatibility program projects approved by the
FAA in a noise compatibility plan under
49 USC § 47504(c).
(c) Noise Mitigation Projects in a Record of Decision.
Noise mitigation projects approved in an
4-16
Reference
(d) Compatible Land Use Planning/Projects.
Compatible land use planning and projects carried out
by state and local governments under
49 USC § 47141.
(3) Sponsors and Airports Not Included. Sponsors and
airports in the Republic of the Marshall Islands, Federated
States of Micronesia, and Republic of Palau are able to
receive grants from the discretionary fund in
49 USC § 47115 and the Small Airport Fund in
49 USC § 47116 per 49 USC § 47115(j), which means
that they are not able to receive grants from the Noise and
Environmental Set Aside in 49 USC § 47117(e)(1)(A).
h. Discretionary: MAP Set Aside (1) FAA designated Military Airport Program airports. These
49 USC § 47117(e)(1)(B) are former military airports closed or realigned and
designated for conversion to civil or joint use.
(2) Sponsors and airports in the Republic of the Marshall
Islands, Federated States of Micronesia, and Republic of
Palau are able to receive grants from the discretionary
fund in 49 USC § 47115 and the Small Airport Fund in
49 USC § 47116 per 49 USC § 47115(j).
(3) Per 49 USC § 47118(h), an FAA designated safety critical
airport.
that they are not able to receive grants from the MAP Set
Aside in 49 USC § 47117(e)(1)(B).
i. Discretionary: Reliever Set Aside (1) Only those reliever airports with more than 75,000 annual
49 USC § 47117(e)(1)(C) operations, a runway of greater than 5,000 feet, a
precision instrument landing procedure, 100 based
aircraft, and relieves an airport with 20,000 hours of
annual delays of commercial passenger aircraft
operations.
that they are not able to receive grants from the Reliever
Set Aside in 49 USC § 47117(e)(1)(C).
4-17
Reference
j. Discretionary: Capacity/ Safety/ (1) Only primary and reliever airports.

Security/ Noise (C/S/S/N)
49 USC § 47115(c)
k. Pure Discretionary (1) Any public-use NPIAS airport.

49 USC § 47115(b)
(2) Midway Island Airport during fiscal years 2012-2018 per
Section 186(d) of the Vision 100 – Century of Aviation
Reauthorization Act (Public Law 108-176) as amended by
Section 102 of Division M, Title I of the Consolidated
Appropriations Act, 2018 (Public Law 115-141). This
funding can only be issued through a reimbursable
agreement between the FAA and the Secretary of the
Interior and is limited to $2.5 million of pure discretionary
per fiscal year.
l. Discretionary from Converted (1) Any public-use NPIAS airport.

Entitlements/ Apportionments
49 USC § 47117(f)
4-7. Project Restrictions by Fund Type.
Table 4-5 provides a comprehensive list of project restrictions by fund type.
Table 4-5 Project Restrictions by Fund Type
Fund Type Project Restrictions by Fund Type
a. Passenger (1) Non-Revenue Producing Public Parking Lots. Not allowed for any
Entitlement airport type except a nonhub primary airport (only if associated with a
commercial service terminal building) per 49 USC § 47119(a)(2) and
49 USC § 47119(c)(1).
(2) Revenue Producing Aeronautical Support Facilities. Not allowed. (The
Act does not authorize this funding for this purpose.)
b. Cargo (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details).
Entitlement
(2) Non-Revenue Producing Public Parking Lots. Not allowed (the Act
does not authorize this funding for this purpose).
(3) Revenue Producing Aeronautical Support Facilities. Not allowed (the
Act does not authorize this funding for this purpose).
(4) Relocation of Sponsor Owned Facilities Caused by a Change in FAA
Design Standards. Not allowed (see Paragraph 3-74 for details).
4-18
c. Nonprimary (1) Non-Revenue Producing Public Parking Lots. Not allowed for any
Entitlement airport types except nonprimary commercial service airports (only if
associated with a commercial service terminal building) or general aviation
and reliever airports (only if associated with a general aviation terminal
building) per 49 USC § 47119(a)(2) and 49 USC § 47119(c)(5).
d. State (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details).
Apportionment
e. Alaska (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details).
Supplemental
(2) Non-revenue Producing Public Parking Lots. Not allowed (the Act does
not authorize this funding for this purpose).
(5) Contract Air Traffic Control Towers. Not allowed. Funding is restricted
by airport and fund type per 49 USC § 47124(b)(4)(A).
f. Small Airport (1) Terminal Buildings. Not allowed for any airport type other than small hub
Fund primary airports with exactly .05% of the annual passenger boardings and
nonhub primary airports (see Paragraph N-11 for details).
(2) Non-Revenue Producing Public Parking Lots. Not allowed for any
airport types except nonhub primary airports (only if associated with a
commercial service terminal building) per 49 USC § 47119(a)(2) and
49 USC § 47119(c)(3).
(3) Projects without Small Airport Fund Notification. The ADO must not
use these funds on any project unless the ADO notifies the sponsor in
writing that the project is being funded, all or in part, by the Small Airport
Fund per 49 USC § 47116(f).
4-19
g. Noise and (1) Projects that are not Noise, Air Quality, or Environmental. The ADO
Environmental must not use these funds on projects except eligible noise, air quality, and
Set Aside specific environmental projects. Energy efficiency studies and projects are
not included (see Section 7 of Chapter 6). Per 49 USC § 47117(e)(1)(A),
the eligible projects are restricted to:
(a) Airport Noise Compatibility Planning. Airport noise compatibility
planning under section 49 USC § 47505(a)(2).
(b) Noise Compatibility Program Projects. Airport noise compatibility
program projects approved by the FAA in a noise compatibility
program under 49 USC § 47504(c).
(c) Noise Mitigation Projects in a Record of Decision. Noise mitigation
projects approved in an environmental record of decision for an airport
(d) Compatible Land Use Planning/Projects. Compatible land use
planning and projects carried out by state and local governments
under 49 USC § 47141.
(e) Americans with Disabilities Act of 1990 (ADA) Projects. Airport
development projects (including equipment) to comply with ADA per
49 USC § 47102(3)(F).
(f) Clean Air Act Projects. Airport development (including equipment)
projects to comply with the Clean Air Act (42 USC § 7401) per
49 USC § 47102(3)(F).
(g) Federal Water Pollution Control Act (commonly referred to as the
Clean Water Act) Projects. Airport development projects (including
equipment) required to comply with the Federal Water Pollution
Control Act (33 USC § 1251 et seq) per 49 USC § 47102(3)(F). In
addition, water quality mitigation projects to comply with the Federal
Water Pollution Control Act that are approved in an environmental
record of decision for an airport development project may use this type
of funding.
(h) Voluntary Airport Low Emissions (VALE) Projects. Projects that
meet the requirements of the VALE program per
49 USC § 47102(3)(K) and 49 USC § 47102(3)(L). These
requirements are discussed in Section 5 of Chapter 6
(i) Zero Emission Vehicle and Infrastructure Projects. Projects that
meet the requirements of this pilot program per 49 USC § 47136a(a).
This is further discussed in Section 6 of Chapter 6.
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h. MAP Set Aside (1) Projects that are not approved under MAP or 49 USC § 47118(h). The
ADO must not use these funds on projects that are not approved under
MAP (see Section 3 of Chapter 6 for details) or as an FAA designated
safety critical project under 49 USC § 47118(h) (see Paragraph 2-3 for
details).
i. Reliever Set (1) Terminal Buildings. Not allowed (see Paragraph N-11 for details).
Aside
j. Remaining (1) Terminal Buildings. Only allowed in limited amounts at non-hub primary
Discretionary airports, nonprimary commercial service airports, and reliever airports and
(C/S/S/N, Pure in limited circumstances where the airport has changed airport types (see
Discretionary, Paragraph N-11 for details).
and Discretionary
(2) Non-Revenue Producing Public Parking Lots. Not allowed except for
from Converted
nonhub primary airports, nonprimary commercial service airports, and
Entitlements/
reliever airports per 49 USC § 47119(a)(2), 49 USC § 47119(c)(2), and
Apportionments)
49 USC § 47119(c)(3). The non-revenue producing public parking lot is
only allowable if it is associated with an eligible commercial service or
general aviation terminal building. The same discretionary funding rules
and amounts apply for non-revenue producing public parking lots as the
associated terminal (see Item 1 above that discuss discretionary rules for
commercial service and general aviation terminal buildings).
(5) Use on Higher Priority Projects than Entitlement Projects. To meet
the requirements of 49 USC § 47120, the ADO must obtain prior approval
from APP-520 to use these funds on a project if passenger, cargo,
nonprimary, state apportionment, or Alaska supplemental will be used on
lower priority projects.
(6) Consideration of Project Priority. To comply with
49 USC § 47115(d)(2)(A), the ADO, prior to selecting a project for this type
of funding, must determine if the decision will impact the ability to fund
other projects with a higher national priority rating in the same fiscal year
and obtain regional office approval.
(7) Consideration of Project Execution. To comply with
49 USC § 47115(d)(2)(B), the ADO must consider whether the sponsor
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can start the project in either the current fiscal year or six months after the
grant is issued, whichever is later. Per FAA policy, starting the project
means issuing a notice to proceed for construction projects; executing the
purchase order for equipment projects; beginning design for projects that
include design; or beginning planning for planning projects.
4-8. Fund Expiration Time Frames by Airport and Fund Type.
49 USC § 47117(b) defines how long AIP funding is available. Once AIP funds are apportioned,
the funds are only available for the number of fiscal years listed in Table 4-6.
Table 4-6 Expiration of AIP Funds
For the following The following funds… Are available for the fiscal year in which the
airport type… funds are apportioned plus…
a. Small, Medium, or Passenger Entitlement Two fiscal years immediately following the year in
Large Hub which the funds are apportioned, or a total of
Cargo Entitlement
Primary three years.
These funds continue to have a three year life
even if the airport type changes after the funds
have been allocated.
b. Nonhub Primary Passenger Entitlement Three fiscal years immediately following the year
in which the funds are apportioned, or a total of
Cargo Entitlement
four years.
These funds continue to have a four year life even
if the airport type changes after the funds have
been allocated.
c. Nonprimary Cargo Entitlement Three fiscal years immediately following the year
in which the funds are apportioned, or a total of
Nonprimary Entitlement
four years.
These funds continue to have a four year life even
if the airport type changes after the funds have
been allocated.
d. N/A State Apportionment Two fiscal years immediately following the year in
(including Insular) which the funds were apportioned, or a total of
three years.
Alaska Supplemental
e. N/A Discretionary Zero additional years, or a total of one year.
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4-9. Federal Share by Airport Type (Including Exceptions).
The Federal share of allowable project costs is a fixed percentage of the allowable project costs.
The Federal share by airport type, as well as the associated exceptions, is listed in Table 4-7.
Table 4-7 Federal Share by Airport Type (Including Exceptions)
Airport Type Normal Exceptions

Federal
Share
a. Large Hub 75% (1) Noise Projects. 80% for noise projects per
49 USC § 47504(c)(4). Note: Per 49 USC § 47505(b), the
b. Medium Hub
normal Federal share for noise compatibility planning projects
remains at 75% unless the airport receives a different Federal
share in one of the other exceptions listed here. In addition, the
Federal share for non-noise compatibility projects that are
funded through the environmental set-aside such as VALE,
noise planning projects, and other non-noise related
environmental projects also remain at 75%.
(2) States with Large Amounts of Public Land.
49 USC § 47109(b) increases the Federal share at some
airports in states with large amounts of publicly owned land.
These airports and their increased Federal shares are listed in
Paragraph 4-10.
(3) Insular Areas. Airports in American Samoa, Guam, the U.S.
Virgin Islands, or the Northern Mariana Islands have a waiver of
up to $200,000 of the sponsor’s share per 33 USC § 2310.
Therefore, a grant of up to $2,000,000 at the 90% participation
rate needs no contribution from the sponsor.
(4) Special Rule for Transition from Small to Medium Hub. The
Federal share for a medium hub is at 90% for the two fiscal
years following a status change from small to medium hub per
49 USC § 47109(e).
(5) Private Ownership Pilot Program. 49 USC § 47109(a)(4)
requires a 70% Federal share for projects funded with
discretionary at airports in the private ownership pilot program
under 49 USC § 47134.
(6) Airport Development Rights Pilot Program.
49 USC § 47138(b)(2) allows any Federal share up to and
including 90% for projects meeting the requirements in
Section 8 of Chapter 6.
(7) Zero Emission Airport and Infrastructure Pilot Program.
49 USC § 47136a(d) requires a 50% Federal share for projects
meeting the requirements in Section 6 of Chapter 6.
(8) Fiscal Year 2002 Security Projects. For fiscal year 2002,
49 USC § 47109(a)(5) allowed a 100% Federal share for certain
security projects allowed under Public Law 107-71.
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Federal
Share
c. Small Hub 90% (1) Temporary Increase to 95%. Section 161 of Vision 100 (Public
Law 108-176, December 12, 2003) added a Note to
d. Nonhub Primary
49 USC § 47109 to temporarily increase the Federal share of
allowable project costs from 90% to 95% for Fiscal Years 2004-
2007. Although scheduled to sunset at the end of Fiscal Year
2007, Congress extended this temporary increase from Fiscal
Years 2008-2011. The FAA Modernization and Reform Act of
2012 (Public Law 112-95) did not extend this temporary
provision, and the Federal share reverted back to 90% except
as listed below.
(2) States with Large Amounts of Public Land. 49 USC § 47109
increases the Federal share at some airports in states with large
amounts of publicly owned land. These airports and their
increased Federal shares are listed in Paragraph 4-10.
(3) Nonhub Primary Airports in States with Large Amounts of
Public Land. The Consolidated and Further Continuing
Appropriations Act, 2015, Section 119F, modifies the Federal
share of certain nonhub primary airports. The bill amends
49 USC § 47109(c)(2). Specifically, if a primary non-hub airport
located in a public land state is within 15 miles of another public
land state, the Federal share increases to an average of the two
states. If the average is less, the airport Federal share remains
the same. APP-500 will publish the list of airports that meet
these criteria at the beginning of each fiscal year.
(4) Economically Distressed Areas. Per 49 USC § 47109(f), the
Federal share for smaller airports (those that are not large or
medium hubs) who are both receiving Essential Air Service
(EAS) and are located in economically distressed areas (EDA)
is 95%. APP-500 will obtain a list of the EAS airports from the
DOT office administering the EAS program. APP-500 will use
the EDA data published by the Federal Highway Administration
to determine which EAS airports are in EDAs. APP-500 will
publish the list of airports that meet these criteria at the
beginning of each fiscal year and will not make mid-year
changes based on new EAS or EDA data.
(5) Innovative Finance Grants. A grant issued under the
innovative finance demonstration program per 49 USC § 47135
may have a flexible Federal shares.
Therefore, a grant of up to $800,000 at the 75% participation
(7) Turbine Powered Aircraft. 49 USC § 47116(d)(2) directs the
FAA to give consideration to airport development projects to
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Federal
Share
support operations by turbine powered aircraft if the non-Federal
share of the project is at least 40%. For these projects, the
Federal share must be less than 60%.
under 49 USC § 47134.
(9) Airport Development Rights Pilot Program.
(10)Zero Emission Airport and Infrastructure Pilot Program.
meeting the requirements in Section 6 of Chapter 6
(11)Fiscal Year 2002 Security Projects. For fiscal year 2002,
security projects under Public Law 107-71.
e. Nonprimary 90% (1) Temporary Increase to 95%. Section 161 of Vision 100 (Public
Commercial Law 108-176) added a note to 49 USC § 47109 to temporarily
Service increase the Federal share of allowable project costs from 90%
to 95% for Fiscal Years 2004-2007. Although scheduled to
f. General Aviation
sunset at the end of Fiscal Year 2007, Congress extended this
g. Reliever temporary increase from Fiscal Years 2008-2011. The FAA
Modernization and Reform Act of 2012 (Public Law 112-95) did
not extend this temporary provision, and the Federal share
reverted back to 90% except as listed below.
(2) States with Large Amounts of Public Land. 49 USC § 47109
increases the Federal share at some airports in states with large
amounts of publicly owned land. These airports and their
increased Federal shares are listed in Paragraph 4-10.
(3) Nonprimary Commercial Service Airports in States with
Large Amounts of Public Land. The Consolidated
Appropriations Act, 2017, Section 119E, modifies the Federal
share of certain nonprimary commercial service airports. The
bill amends 49 USC § 47109(c)(2). Specifically, if a nonprimary
commercial service airport located in a public land state is within
15 miles of another public land state, the Federal share
increases to an average of the two states. If the average is less,
the airport Federal share remains the same. APP-500 will
beginning of each fiscal year.
(4) Nonhub Primary Airports in States with Large Amounts of
Public Land. The Consolidated and Further Continuing
Appropriations Act, 2015, Section 119F, modifies the Federal
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Federal
Share
share of certain nonhub primary airports. The bill amends
49 USC § 47109(c)(2). Specifically, if a primary non-hub
airports located in a public land state is within 15 miles of
another public land state, the Federal share increases to an
average of the two states. If the average is less, the airport
Federal share remains the same. APP-500 will publish the list
of airports that meet these criteria at the beginning of each fiscal
year.
(5) Economically Distressed Areas. Per 49 USC § 47109(f), the
Federal share for smaller airports (those that are not large or
medium hubs) who are both receiving Essential Air Service
(EAS) and are located in economically distressed areas (EDA)
is 95%. APP-500 will obtain a list of the EAS airports from the
DOT office administering the EAS program. APP-500 will use
the EDA data published by the Federal Highway Administration
to determine which EAS airports are in EDAs. APP-500 will
beginning of each fiscal year and will not make mid-year
changes based on new EAS or EDA data.
(6) State Block Grant Subgrants. Per 49 USC § 47109(a)(2),
states may issue state block grant subgrants at a different
participation percentage than the associated state block grant.
The subgrant participation rate must be equal or lower than the
fiscal year Federal percentage rate of the associated state block
grant. In FY 2004 and FY 2012, the Federal share for
nonprimary airports changed. Per FAA policy, states must
either clearly document when they are commingling funds of
different Federal percentages within the same subgrant or issue
separate subgrants to avoid confusion.
(7) Innovative Finance Grants. A grants issued under the
innovative finance demonstration program per 49 USC § 47135
may have a flexible Federal shares.
Therefore, a grant of up to $800,000 at the 75% participation
under 49 USC § 47134.
(10)Airport Development Rights Pilot Program.
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Federal
Share
(11)Zero Emission Airport and Infrastructure Pilot Program.
meeting the requirements in Section 6 of Chapter 6.
(12)Fiscal Year 2002 Security Projects. For fiscal year 2002,
security projects allowed under Public Law 107-71.
4-10. Federal Share Exception for States with Large Amounts of Public Land
49 USC § 47109(b) includes special language that increases the Federal share for airports in
states that have more than 5% public or Indian land as defined by the Department of the
Interior’s Bureau of Land Management. 49 USC § 47109 requires that the FAA determine if an
airport is in a public land state and whether the current Federal share is less than the Federal
share was on June 30, 1975. On that date, the Federal share of most projects was 50% for large
hub airports (not large and medium hub airports as exists in current legislation) and 75% for all
other airport types, plus the bump-up for airports in the public land states.
Table 4-8 contains the increased Federal share for those states that have large amounts of public
land. Unless otherwise noted in these tables, the Federal share percentages are based on
49 USC § 47109.
Background information on the calculation of the increased Federal share for states with large
amounts of public land is found in Appendix Y.
Table 4-8 Federal Shares by Airport Classification in Public Land States
State Large Hub Medium Hub Small or Nonhub Non-primary General

Airports Airports Commercial Aviation and Reliever
Service airports* Airports
a. Alaska (AK) 75 87.76% 93.75% 93.75%
b. Arizona (AZ) 75 91.06% 91.06% 91.06%
c. California (CA) 75 80.59% 90.66% 90.00%
d. Colorado (CO) 75 79.02% 90.00% 90.00%
e. Idaho (ID) 75 83.51% 93.75% 90.00%
f. Montana (MT) 75 79.47% 90.00% 90.00%
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Table 4-8 Federal Shares by Airport Classification in Public Land States
State Large Hub Medium Hub Small or Nonhub Non-primary General

Airports Airports Commercial Aviation and Reliever
Service airports* Airports
g. Nevada (NV) 75 93.75% 93.75% 93.75%
h. New Mexico (NM) 75 84.29% 93.75% 90.00%
i. Oregon (OR) 75 83.33% 93.75% 90.00%
j. South Dakota (SD) 75 78.55% 90.00% 90.00%
k. Utah (UT) 75 90.63% 90.63% 90.63%
l. Washington (WA) 75 77.31% 90.00% 90.00%
m. Wyoming (WY) 75 84.58% 93.75% 90.00%
* The Consolidated and Further Continuing Appropriations Act, 2015, Section 119F, modifies
the Federal share of certain nonhub primary airports. Section 119E of the Consolidated
Appropriations Act, 2017 extends the modification of the Federal share to certain non-primary
commercial service airports. APP-500 will publish the list of airports that meet these criteria at
the beginning of each fiscal year.
4-11. Transfer of Entitlement Funds between Airports.
49 USC § 47117(c) allows the FAA to transfer entitlements between airports. The intention of
this statutory provision is to permit a sponsor to share its unused entitlements with another
airport so that the funds do not expire or get carried over to future years. The conditions and
required agreements for these transfers are outlined in Table 4-9. The Act does not allow the
FAA to transfer state apportionment or Alaskan supplemental between states. The Act also does
not allow the FAA to transfer entitlements to a state.
Because the FAA must know when entitlements are transferred and between which airports, the
FAA requires that the sponsor sign a transfer agreement. This agreement is necessary even when
the sponsor owns the airports between which the funds are being transferred.
This requirement does not apply to various location grants if each of the airports retains the
rights to their specific entitlements per the state sponsorship agreement that is required for
various location grants in Table 2-11. The transfer agreement requirement does apply to a
various locations grant if entitlements within the grant are being transferred between any of the
airports. In this case, FAA Form 5100-110, Agreement for Transfer of Entitlements (see the AIP
Forms link in Appendix B) is required for each of the transfers.
4-28
Table 4-9 Requirements to Transfer Entitlement Funds between Airports
If a sponsor wants to… Only the If the following conditions And the following
following are met… agreements are
entitlements provided…
can be
transferred…
a. Transfer all or part of Passenger The airport that will receive The sponsor does not have
their entitlements the entitlements is in the to submit a waiver request
between airports they NPIAS. or sign FAA Form 5100-
own per 110.
The airport that will receive
49 USC § 47117(c)(1).
the entitlements is also The ADO does not need to
owned by the sponsor. track these actions
separately.
The sponsor requests use
of the funding through the
sponsor’s capital
improvement plan and/or a
grant application.
b. Waive receipt of all or Passenger The airport that will receive If the ADO agrees with the
part of their the entitlements is in the transfer, the ADO (not the
Cargo
entitlements and NPIAS. sponsor) prepares FAA
allowing the FAA to Nonprimary Form 5100-110. The ADO,
determine which sponsor, and sponsor’s
the entitlements must be in
airport will receive the attorney must execute the
the same state or
entitlement per agreement in order for the
geographical area. In this
49 USC § 47117(c)(2). ADO to transfer the funds.
case, geographical area
The agreement must only
means the same or an
specify entitlements of one
adjacent Standard
airport. The ADO must
Metropolitan Statistical
prepare separate
Area.
agreements if entitlements
The sponsor must make a are being transferred from
written request to the ADO. more than one airport.
Note: The sponsor receiving
the transferred entitlements
does not incur grant
assurance obligations until
the sponsor signs a grant
that contains the transferred
entitlements. The sponsor
waiving receipt of the
transferred entitlements is
not tied to the grant
assurances associated with
this transferred entitlement.
4-29
Table 4-9 Requirements to Transfer Entitlement Funds between Airports
If a sponsor wants to… Only the If the following conditions And the following
following are met… agreements are
entitlements provided…
can be
transferred…
c. Waive receipt of all or Passenger The airport that will receive If the ADO agrees with the
part of their the entitlements is in the transfer, the ADO (not the
Cargo
entitlements and NPIAS. sponsor) prepares FAA
request they be used Nonprimary Form 5100-110, The ADO,
at a specific airport per the sponsor, and sponsor’s
the entitlements must be in
49 USC § 47117(c)(2). attorney must execute the
the same state or
agreement in order for the
geographical area. In this
ADO to transfer the funds.
case, geographical area
The agreement must only
means the same or an
specify entitlements of one
adjacent Standard
airport.
Metropolitan Statistical
Area. The sponsor waiving funds
and the sponsor receiving
The sponsor must make a
funds have the option to
written request to the ADO.
make separate agreements
The ADO must have concerning the transfer.
concurred with transferring This agreement is between
the entitlements to the the two sponsors. The
airport the sponsor has sponsors and/or their
requested. This is because attorneys are responsible
the ADO, not the sponsor, for ensuring the legality of
has the decision authority the agreement. The FAA is
regarding which airport will not a party to the
receive the transferred agreement, is not required
funds. If the ADO objects to obtain the agreement,
to the airport requested by and is not responsible for
the sponsor, the ADO will enforcing the conditions of
inform the sponsor and give the agreement.
the sponsor the option of
Note: The sponsor receiving
withdrawing the waiver
the transferred entitlements
request.
does not incur grant
The sponsor is not selling, assurance obligations until
trading or bartering away the sponsor signs a grant
their entitlement since this that contains the transferred
may be construed as using entitlements. The sponsor
Federal funds in an waiving receipt of the
inappropriate manner. In transferred entitlements is
other words, a sponsor may not tied to the grant
not trade its entitlements for assurances associated with
money or property that this transferred entitlement.
would not be eligible under
AIP.
4-30
4-12. Use of Donations (or Previously Acquired Land) as the Sponsor Share.
Per 2 CFR § 200.434, the ADO has the option of allowing a sponsor to use donated items or a
credit for previously acquired land as a portion or for the entire sponsor share in a grant. The
ADO must use the Table 4-10 to determine if and/or how to offset the sponsor share in a grant.
Table 4-10 Summary of Tables Containing Requirements for using Donations for
the Sponsor’s Share
The following table… Contains the following requirements…
Table 4-11. General requirements.
Table 4-12. Value requirements.
Table 4-13. Offset process.
Table 4-14. Offset examples.
Table 4-11 General Requirements for Offsetting the Sponsor Share of a Grant
For the following items… The following general requirements apply…
a. Land Donated to the Sponsor (1) The land must be AIP eligible, but does not have to be
required for the project.
(2) The ADO must have concurred with the value of land.
The ADO has the option to either implicitly concur with the
value by issuing the grant or make a written determination.
In either case, the ADO must place the documentation
used to support this value in the grant file.
(3) The sponsor must provide information documenting when
the donation or acquisition was or will be made.
(4) The sponsor must provide a copy of any agreements
between the donor and the sponsor and document to the
ADO that the donor has/will not receive an exclusive
benefit or consideration as a result of the transaction.
(5) The sponsor must provide the identity of the donor and
outline the relationship between the sponsor and the
donor.
(6) The sponsor must document to the ADO that there are no
reversion clauses tied to the donation other than reversion
back to the donor if and when the land is no longer
needed for airport purposes.
(7) The sponsor must document to the ADO that the donor
was not acting as an agent for the sponsor and is not a
government or quasi-government entity in the same state
as the sponsor.
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(8) The sponsor must add the donated land and document the
value that has been credited toward the sponsor share on
the Exhibit A.
(9) The sponsor is bound to Airport Sponsors Assurance 31
for the donated land.
(10)A description of the land donated as sponsor share must
be included in the grant.
b. Land Previously Acquired by the (1) The land must be AIP eligible, but does not have to be
Sponsor required for the project.
(2) The sponsor must document to the ADO that the
requirements in Appendix Q have been met.
(3) The ADO must have concurred with the value of land.
The ADO has the option to either implicitly concur with the
value by issuing the grant or make a written determination.
In either case, the ADO must place the documentation
used to support this value in the grant file.
(4) The sponsor must document the value of the land that has
been credited toward the sponsor share on the Exhibit A.
(5) The sponsor is bound to Airport Sponsors Assurance 31
for the previously acquired land.
(6) A description of the land donated as sponsor share must
be included in the grant.
c. Labor, Materials, Equipment, and (1) The ADO must determine that the labor, materials, and/or
Services Donated to the Sponsor equipment costs are allowable and necessary project
costs that would have normally been included in the grant.
(2) The sponsor must request the use of the donated labor,
materials, and/or equipment costs in writing, and the ADO
must have approved the request and the value of the
donated items in advance of the grant offer. The ADO
must use the sponsor force account requirements
provided in Paragraph 3-53 in making this determination.
When applying the requirement in Paragraph 3-53, the
ADO must simply substitute all references to the sponsor’s
labor, materials, equipment, or services with the donated
labor, materials, equipment, or services.
(3) The sponsor must provide a copy of any agreements
between the donor and the sponsor and document to the
ADO that the donor has/will not receive an exclusive
benefit or consideration as a result of the transaction. This
includes the benefit of the donor avoiding costs they would
have normally incurred (for instance, if donor donates
excess fill to avoid paying for disposal of the fill, the donor
would gain a benefit by not having to pay for the disposal.)
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(4) The sponsor must provide the identity of the donor and
outline the relationship between the sponsor and the
donor.
(5) The sponsor must document to the ADO that there are no
reversion clauses tied to the donation of equipment or
materials.
(6) The sponsor must document to the ADO that the donor
was not acting as an agent for the sponsor and is not a
government or quasi-government entity in the same state
as the sponsor.
d. Labor, Materials, Supplies, (1) These costs are not considered donations under
Equipment, and Services Provided 2 CFR § 200.434. Therefore, a sponsor cannot use these
by the Sponsor costs against the sponsor’s share.
(2) Instead, the ADO has the option of approving these costs
as force account work if all of the requirements for force
account work in Paragraph 3-53 are met. Note that force
account materials and supplies have the added
requirement of needing to be procured per
2 CFR §§ 200 317-200.326
Table 4-12 Value of Items Used to Offset the Sponsor Share
For the following items… The ADO must determine the value as follows…
a. Land Donated to the Sponsor (1) The ADO must use the fair market value of the land at the
time it was donated to the sponsor by an unrelated third
party. Per 2 CFR § 200.434, governmental or quasi-
governmental organizations located within the same state
are not considered unrelated third parties for this purpose.
In this case, the ADO must use the fair market value at the
time it was first donated by an unrelated third party to a
governmental or quasi-governmental organization.
(2) The ADO must only include the cost of the land. Per 2
CFR § 200.434(b), only the value of the land can be used
towards a sponsor’s matching share, so costs to acquire
the land (title fees, attorney fees, appraisal fees, etc.) are
not allowed.
(3) If the value of the land exceeds the amount needed to
cover the sponsor share, the ADO has the option to allow
the sponsor to use the unused value for the sponsor share
on future grants. In that case, the ADO must correctly
describe the amount of land being included as sponsor
share and the amount that is being set aside for future
sponsor share.
4-33
Table 4-12 Value of Items Used to Offset the Sponsor Share
For the following items… The ADO must determine the value as follows…
b. Land Previously Acquired by the (1) For a public sponsor, the ADO must use the fair market
Sponsor value of the land at the time of purchase, not the current fair
market value.
(2) For a sponsor of a privately-owned airport,
49 USC § 47109(d) requires that the ADO use the current
fair market value of the land at the time of the project.
(3) The ADO must only include the cost of the land.
Per 2 CFR § 200.434(b), only the value of the land can be
used towards a sponsor’s matching share, so costs to
acquire the land (title fees, attorney fees, appraisal fees,
etc.) are not allowed.
(4) If the value of the land exceeds the amount needed to
cover the sponsor share, ADO has the option to allow the
sponsor to use the unused value for the sponsor share on
future grants. In that case, the ADO must correctly
describe the amount of land being included as sponsor
share and the amount that is being set aside for future
sponsor share
c. Labor, Materials, Equipment and (1) The ADO must use the current fair market value of the
Services Donated to the Sponsor donated labor, materials, equipment, and services at the
time they are donated.
(2) The ADO must determine the current market value of the
donation by following the sponsor force account
requirements provided in Paragraph 3-53. When applying
the requirement in Paragraph 3-53, the ADO must simply
substitute all references to the sponsor’s labor, materials,
equipment, or services with the donated labor, materials,
equipment, or services.
4-34
Table 4-13 Process to Offset the Sponsor Share of a Grant
For the… The following applies…
a. Donation Value (or Previously The ADO calculates this value using the following formula:
Acquired Land Value) Needed for
= (Project Cost x Sponsor Share %) ÷ Federal Share %
the Grant
As the formula indicates, the calculated value is not a dollar to
dollar credit against the sponsor share.
If the state is participating, the sponsor share percent used
above is the percent the sponsor would be paying (the non-
Federal share percent minus the state share percent).
b. Credit Remaining for Future Grants The ADO calculates this using the following formula:
= Land Value – Donation Value (or Previously Acquired Land
Value) Applied to the Grant
c. Application Amount The sponsor must use the following formula to calculate the
amount they must show on the grant application:
= Project Cost + Donation Value (or Previously Acquired Land
Value) Applied to the Grant
d. Application Project Description The sponsor must list the proposed project as the project to be
accomplished under the grant. The sponsor must also show
the previously purchased land or donated labor, materials,
equipment and/or services as an item that will be used as a full
or partial credit against the sponsor share.
e. Grant Amount The ADO calculates this using the following formula:
= Application Amount x Federal Share %
f. Maximum Obligation in Grant The ADO shows the entire grant amount under the category of
the project (example: $1,000,000 for airport development), not
the category of the donated item.
g. Remaining Sponsor Share The ADO calculates this using the following formula:
= Application Amount – Federal Share Amount – Donation
Value (or Previously Acquired Land Value)
h. Grant Description The ADO must use the following format:

[Insert Normal Grant Description] including a credit of $[Insert
Value of Donation (or Value of Previously Acquired Land)
Applied to the Grant] for the [Insert either complete or partial]
sponsor share for the [Insert either complete or partial] [Insert
donated if applicable] value of [Insert brief description of item
being credited – include the parcel numbers for land].
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Table 4-14 Example Calculations for Offsetting the Sponsor Share of a Grant
Examples Include…
EXAMPLE 1: Donated Land, No State Participation, Value of Land Exceeds Sponsor Share.
A general aviation sponsor has a $1,000,000 runway extension project. A local businessman donated
a piece of land to the sponsor five years previously, and the appraised fair market value at the time of
donation was $2,000,000. All other requirements for the donation have been met. The non-Federal
share is 10%. In this case, the state is not contributing toward the non-Federal share, therefore the
sponsor share is 10%.
Project Cost = $1,000,000 Federal Share % = 90% Sponsor Share % = 10%
Donation Value Needed for this Grant = Project Cost x Sponsor Share % ÷ Federal Share %
= $1,000,000 x 10% ÷ 90%
= $111,112
Donation Value Remaining for Future Grants = Land Value – Donation Value Applied to the Grant
= $2,000,000 – $111,112
= $1,888,888
Application Amount = Project Cost + Donation Value Applied to the Grant
= $1,000,000 + $111,112
= $1,111,112
Application Project Description: The sponsor must list the runway extension as the project to be
accomplished under the grant, and show the land as a donated item that will be used as a credit
against the sponsor share.
Grant Amount = Application Amount x Federal Share %
= $1,111,112 x 90%
= $1,000,000
Maximum Obligation in Grant = $1,000,000 for airport development ($0 for land).
Grant Description = Extend Runway 9/27 (150’ x 1,000’) including a credit of $111,112 for the
complete sponsor share for the partial donation value of Parcel 48.
Participation Breakdown = The FAA contributes $1,000,000 and the sponsor virtually contributes
$111,112 as a credit, which adds up to the $1,111,112 application amount. This allows the FAA to
issue a grant for $1,000,000 to cover both the Federal share of the project costs ($1,000,000 x 90% =
$900,000) as well as the sponsor share ($1,000,000 x 10% = $100,000).
4-36
Examples Include…
EXAMPLE 2: Previously Acquired Land, State Participation, Value of Land Exceeds Sponsor
Share
A general aviation sponsor has a $1,000,000 runway extension project. The sponsor used local funds
to purchase a parcel of land, and the appraised fair market value at the time of acquisition was
$2,000,000. All other requirements for previously acquired land have been met. The non-Federal
share is 5%. In this case, the state contributes half of the non-Federal share, or 5% toward the non-
Federal share, therefore the sponsor share is also 5%.
Project Cost = $1,000,000 Federal Share % = 90% Sponsor Share % =5%
Land Value Needed for this Grant = Project Cost x Sponsor Share % ÷ Federal Share %
= $1,000,000 x 5% ÷ 90%
= $55,556
Land Value Remaining for Future Grants = Land Value – Land Value Applied to the Grant
= $2,000,000 – $55,556
= $1,944,444
Application Amount = Project Cost + Land Value Applied to the Grant
= $1,000,000 + $55,556
= $1,055,556
accomplished under the grant, and show the previously purchased land as an item that will be used as
a credit against the sponsor share.
= $1,055,556 x 90%
= $950,000
Maximum Obligation in Grant = $950,000 for airport development ($0 for land)
Grant Description = Extend Runway 9/27 (150’ x 1,000’) including a credit of $55,556 for the complete
sponsor share for the partial value of Parcel 48.
Participation Breakdown = The FAA contributes $950,000, the state contributes $50,000, and the
sponsor virtually contributes $55,556 as a credit, which adds up to the $1,055,556 application amount.
This allows the FAA to issue a grant for $950,000 to cover both the Federal share of the project costs
($1,000,000 x 90% = $900,000) as well as the sponsor share ($1,000,000 x 5% = $50,000).
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Examples Include…
EXAMPLE 3: Donated Labor/Materials, No State Participation, Value Less than Sponsor Share
A general aviation sponsor has a $1,000,000 runway extension project. A local businessman is willing
to donate the sodding required for the project. The ADO approves the request and concurs with the
donation value of $10,000. All other requirements for the donation have been met. The non-Federal
share is 10%. In this case, the state is not contributing toward the non-Federal share, therefore the
sponsor share is 10%.
Project Cost = $1,000,000 Federal Share % = 90% Sponsor Share % = 10%

Application Amount = Project Cost + Donation Value
= $1,000,000 + $10,000
= $1,010,000
accomplished under the grant, and show the donated sodding as an item that will be used as a partial
credit against the sponsor share.
= $1,010,000 x 90%
= $909,000
Maximum Obligation in Grant = $909,000airport development
Remaining Sponsor Share = Application Amount – Federal Share Amount – Donation Value
= $1,010,000 - $909,000- $10,000
= $91,000
Grant Description = Extend Runway 9/27 (150’ x 1,000’) including a credit of $10,000 for the partial
sponsor share for the complete donated value of required sodding.
Participation Breakdown = The FAA contributes $909,000, the sponsor virtually contributes $10,000
as a credit, and the sponsor contributes $91,000 for the remaining sponsor share, which adds up to the
$1,010,000 application amount. This allows the FAA to issue a grant for $909,000 to cover both the
Federal share of the project costs ($1,000,000 x 90% = $909,000) as well as a portion of the sponsor
share ($10,000 x 90% = $9,000), leaving the sponsor to pay for the remaining $91,000 of the sponsor
Share (($1,000,000 x 10%) - $9,000).
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4-13. Budget Augmentation (Combining Funds between Different Federal Programs).
Each Federal program is supported by appropriations, and the funding limits set out in the
relevant legislation are the limits of that program. Combining Federal funding is considered
improper budget augmentation unless specific authority is contained in the legislation to do so.
The Handbook calls out those rare instances where legislative authority has been granted for
budget augmentation within an AIP grant. These instances are included in Table 4-15.
More information on the rules regarding Federal budget augmentation is contained in the
Government Accountability Office’s (GAO) Principles of Federal Appropriations Law, Third
Edition, commonly referred to as the Red Book. APP-520 is also available for further guidance.
Table 4-15 Instances of Allowable Budget Augmentation
Some examples Include…
a. Economic development agency and Appalachian regional commission grants, which have specific
authority to give grants for local matching share of other Federal programs.
b. Costs for instrument landing systems to be transferred to the FAA under appropriation statutes.
c. The incidental costs for clearing, grading and grubbing for an AIP project that may also provide site
preparation for FAA facilities.
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4-40
Chapter 5. How does the grant process work?
Section 1. Basic Grant Steps.
5-1. Basic Grant Steps.
Table 5-1 captures the basic steps in the grant process as outlined in the following sections of
this chapter.
Table 5-1 The Basic Steps in the Grant Process
The basic steps are…
a. Pre-Grant Actions.
b. Grant Programming.
c. Grant Application, Offer, and Acceptance.
d. ADO Grant Oversight.
e. Grant Payment.
f. Grant Amendment.
g. Grant Closeouts.
h. Grant Suspension and/or Termination.
i. Post-Grant Actions.
Section 2. Pre-Grant Actions.
5-2. Introduction.
There are many actions that need to be taken before an AIP eligible project is ready to be
considered for inclusion in a grant. Table 5-2 captures these major actions. The subsequent
explanations in this section discuss which actions apply to which types of projects.
5-1
Table 5-2 The Major Pre-Grant Actions
The major actions include…
a. Identification of Potential Projects by Sponsors and ADO.
b. Early Coordination between ADO and Sponsor.
c. ADO Verification of Sponsor Eligibility.
d. ADO Verification that All Project Requirements Will Be Met.
e. ADO Verification that Airport Layout Plan is Current.
f. ADO Notification to New Sponsors of Flood Insurance Requirements.
g. ADO Notification and Verification of Sponsor Civil Rights Requirements.
h. ADO Verification that Risk Level Determination is Current.
i. ADO Review of Open Grant Status.
j. ADO Verification that Competition Plan is Current.
5-3. Identification of Potential Projects by Sponsors and ADO.
Sponsors normally develop 20-year airport development plans and often engage in other
planning efforts. From these activities, the sponsor develops their capital improvement plan and
submits it to the ADO. The ADO then uses this information, as well as other pertinent
information available in house, to identify projects that meet the applicable requirements in
Chapter 3.
The FAA Office of Airports uses this data to create a five year National Plan of Integrated
Airport Systems (NPIAS) Report outlining the projects that are eligible and justified for AIP
funding. The Secretary of Transportation is required to publish this plan every two years per
49 USC § 47103. The FAA Office of Airports then creates an Airports Capital Improvement
Plan (ACIP) to identify the projects that may be funded with AIP over the next three years.
FAA inclusion of the project in the NPIAS or the ACIP is not a guarantee of funding, nor is the
value of the project considered a final determination by the FAA.
Detailed information on the NPIAS and ACIP processes are found in the current versions of
FAA Order 5100.39, Airports Capital Improvement Plan and FAA Order 5090.3, Field
Formulation of the National Plan of Integrated Airport Systems.
It is important that during this process the ADO discuss the projects listed in Table 5-3 with the
sponsor and determine when the projects will be addressed. This is because these items have
5-2
been determined by Congress to be of special interest, are required by rule or regulation, or if not
implemented, can affect the utility of the airport in the future.
Table 5-3 Important Potential Projects for ADO/Sponsor Discussion
Important projects include…
a. Clear Runway Approaches. Per 49 USC § 47107(a)(9), the sponsor must take appropriate action to
ensure that terminal airspace required to protect instrument and visual operations to the airport
(including operations at established minimum flight altitudes) will be cleared and protected by
mitigating existing, and preventing future, airport hazards. (Note: 49 USC § 47107(a)(9) uses the term
“operations to the airport”, which includes departures and approaches. Because design surfaces are
typically described in terms of approach surfaces or missed approach surfaces, the term
“approaches” describes the clearance surfaces required to protect operations to or from a runway.)
b. Compatible Land Use Issues. Per 49 USC § 47107(a)(10), the sponsor must take appropriate
action (to extent reasonable) to restrict the use of land next to or near the airport to uses that are
compatible with normal airport operations. For example, if there are residential uses surrounding the
airport, acquisition of the properties or soundproofing the houses may be appropriate.
c. Congressionally Mandated Items. 49 USC § 47101(f) lists high priority projects at commercial
service airports (to be given consideration to the extent possible with available money and
considering other safety needs). The items on this list include:
(1) Electronic or visual vertical guidance on each runway.
(2) Grooving or friction treatment of each primary and secondary runway.
(3) Distance-to-go signs for each primary and secondary runway.
(4) A precision approach system, a vertical visual guidance system, and a full approach light system
for each primary runway.
(5) A non-precision instrument approach for each secondary runway.
(6) Runway end identifier lights on each runway that does not have an approach light system.
(7) A surface movement radar system at each category III airport (per FAA policy, not eligible for
AIP).
(8) A taxiway lighting and sign system.
(9) Runway edge lighting and marking.
(10)Radar approach coverage for each airport terminal area (per FAA policy, not eligible for AIP).
(11)Runway and taxiway incursion prevention devices, including integrated in-pavement lighting
systems for runways and taxiways (per FAA policy, may have limited eligibility).
d. 14 CFR 139 Violations. 14 CFR part 139 requires certificated airports to meet certain standards,
including required safety and signage. The ADO is encouraged to review the latest 14 CFR part 139
inspection report to determine if there are any AIP eligible equipment or development items that need
to be addressed.
5-3
5-4. Early Coordination between ADO and Sponsor.
The ADO has the option to give the sponsor some preliminary indication (for planning purposes
only) of the likelihood of the FAA being able to consider funding for a given project, focusing
not just on eligibility and justification but also on whether and when funds might become
available (including all categories of AIP funds). In such cases, the ADO must make it clear to
the sponsor that such early indications do not represent a decision or commitment, and that many
factors, including national, regional and local issues may affect the ultimate decision. The ADO
must also make it clear that it is the sponsor’s decision whether and when to initiate any steps
that might be required in order to be ready if and when the FAA is ultimately able to award a
grant. Finally, the ADO must ensure that such early indications, as well as any early actions by
the sponsor, cannot be misconstrued as pre-decisional, particularly if environmental review
processes are still underway.
The ADO also has the option to notify the sponsor of the favorable potential for receiving
Federal funding in the upcoming fiscal year. This is not a commitment nor a guarantee of funds
but simply a notice that funding for the project appears favorable and that the sponsor has the
option to initiate actions that require long lead times in order to avoid potential delays in the
grant process.
In addition, the sponsor must develop a realistic project schedule that will ensure that the grant
can proceed in a timely manner. The ADO may request sponsor coordination of this schedule.
The schedule must set realistic sponsor deadline dates for key steps in the grant process because
a sponsor’s failure to complete these steps in a timely manner may seriously impact or delay
project funding. Table 5-4 contains common key steps.
Table 5-4 Common Key Steps in the Grant Process
Common key steps include…
a. Submission of a benefit-cost analysis (for projects such as certain NAVAIDS, projects requesting
$10 million or more in discretionary funding over the life of the project, new airport projects, capacity
projects).
b. Submission of environmental review documents.
c. Selection of sponsor’s engineer.
d. Completion of final plans and specifications and engineer’s report.
e. Submission of aeronautical study to coordinate the project with other FAA lines of business and other
Federal agencies.
f. Submission of construction safety phasing plan.
g. Completion of safety management system (SMS) coordination.
h. Submission of disadvantaged business enterprise (DBE) plan.
5-4
Table 5-4 Common Key Steps in the Grant Process
Common key steps include…
i. Completion of necessary land acquisition and relocation of displaced persons.
j. Adoption of a zoning ordinance or other compatible land use measures.
k. Submission of title evidence or attorney certification of title.
l. Coordination with planning agencies.
m. Notice of intent to use entitlement funds (to meet the deadline published in the annual Federal
Register Notice).
n. Receipt of current wage rates.
o. Advertisement for bids.
p. Opening of bids.
q. Submission of Application for Federal Assistance.
r. Acceptance of grant offer.
s. Award of contract.
t. Completion of the pre-construction conference.
5-5. ADO Verification of Sponsor Eligibility.
The ADO must verify that all of the sponsor requirements in Chapter 2 have been met.
5-6. ADO Verification that All Project Requirements Will Be Met.
The ADO must verify that all of the sponsor requirements in Chapter 3 and the appropriate
project requirement appendix will be met by the required time in the grant process.
5-7. ADO Verification that Airport Layout Plan is Current.
Per 49 USC § 47107(a)(16), the sponsor must maintain a current layout plan of the airport in
order to receive an airport design, construction, or equipment grant as defined under
49 USC § 47102(3). The ALP that is on file with the ADO must reflect the current and proposed
conditions at the airport and all proposed and existing access points used to taxi aircraft across
the airports property boundary.
5-5
5-8. ADO Notification to New Sponsors of Flood Insurance Requirements.
Per the Flood Disaster Protection Act of 1973, sponsors with an airport in a Federal Emergency
Management Agency (FEMA) identified area having a special flood hazard must participate in
the National Flood Insurance Program.
The ADO is responsible for advising new sponsors of this requirement and advising that there
are additional details available at the FEMA website (see Appendix B for link). Sponsor will be
certifying in the grant assurances that they comply with this requirement for acquisition and
construction projects.
5-9. ADO Notification and Verification of Sponsor Civil Rights Requirements.
Sponsors (including block grant states) receiving AIP funding must follow all applicable civil
rights requirements in Table 5-5. Sponsors must work directly with the FAA Office of Civil
Rights (ACR) to ensure that all of these requirements have been met.
The ADO is responsible for advising new sponsors to contact ACR to discuss these
requirements.
The ADO is also responsible for coordinating with ACR before a grant is issued to verify that the
DBE plan, goals and monitoring (and ACDBE plan, goals and monitoring if the airport is a
commercial service airport) have been accepted by ACR.
Table 5-5 Sponsor Civil Rights Requirements
Civil rights requirements for sponsors include…
a. Disadvantaged Business Enterprise (DBE) Program. 49 CFR part 26; Airport Sponsors
Assurances #1 and #37; Planning Agency Sponsors Assurances #1 and #13; Non-Airport Sponsors
Undertaking Noise Compatibility Program Projects Assurances #1 and #22; and 49 USC § 47113.
The sponsor must have a DBE program if they will be receiving $250,000 or more in AIP funding
during a Federal fiscal year. Contracts solely for the purpose of land are excluded. Block grant
states must submit either a single overall goal or multiple goals that cover all of the subgrants funded
during a fiscal year.
b. Airport Concessions Disadvantaged Business Enterprise (ACDBE) Program. 49 CFR part 23;
Airport Sponsors Assurance #1 and #37; and 49 USC § 47107(e).
c. Americans with Disabilities Act (ADA). Titles II & III. Section 504 of the Rehabilitation Act of 1973;
Airport Sponsors Assurances #1, #30, and #34; Planning Agency Sponsors Assurance #1 and #9;
Non-Airport Sponsors Undertaking Noise Compatibility Program Projects Assurances #1 and #17;
49 USC § 47123 and § 47107; 49 CFR parts 27, 37, and 38; and 28 CFR parts 35 and 36.
5-6
Table 5-5 Sponsor Civil Rights Requirements
Civil rights requirements for sponsors include…
d. Air Carrier Access Act of 1986 (ACAA). 14 CFR part 382.
e. Title VI of Civil Rights Act of 1964. 42 USC § 2000d, et seq. As a condition of receiving any
Federal funding assistance, all sponsors are subject to and agree to comply with the Standard Title
VI/Non-Discrimination Assurances. In addition, the Standard Title VI/Non-Discrimination Assurances
are also binding on subrecipients, subgrantees, contractors, successors, transferees, and/or
assignees.
5-10. ADO Verification that Risk Level Determination is Current.
Based on a DOT Office of Inspector General (OIG) audit and findings related to the FAA’s
administration of AIP, the FAA has implemented a risk base oversight system to minimize the
risk of misuse of funds by sponsors. The FAA uses a tiered ranking system to assign a risk level
to each sponsor. The risk level defines the level of oversight needed. Current detailed guidance
on how to assign sponsor risk a level is contained in the Airport Improvement Program (AIP)
Grant Oversight Risk Model Policy (see Appendix B for link).
At this point in the process, the ADO must verify that a risk level has been assigned to the
sponsor and is still current. If not, it is FAA policy that the ADO must complete the original
determination or redo the risk level assignment.
5-11. ADO Review of Open Grant Status.
Per FAA policy, the ADO must determine if the sponsor has any open grants older than four
years or that have not had a payment request for 18 months or more. If so, the ADO must obtain
the reason why and the sponsor’s plans to address the situation.
This is because 49 USC § 47106(a)(4) requires that the sponsor carry out and complete AIP
funded projects without unreasonable delay, and a history of old and/or inactive grants may be an
indicator that the sponsor may not be able to comply with this requirement.
5-12. ADO Verification that Competition Plan is Current.
For certain medium and large hub airports, the ADO must verify that all required competition
plans and updates are approved. The competition plan requirements are discussed in detail in
Appendix W.
5-7
Section 3. Grant Programming.
5-13. Introduction.
Once the ADO has completed the pre-grant actions in the previous section, there are four major
steps before the grant application can be processed.
a. Project Evaluation Report and Development Analysis (PERADA)
b. Grant Programming
c. Congressional Notification
d. Sponsor Notification
5-14. Project Evaluation Report and Development Analysis (PERADA) Completion.
FAA Form 5100-109, Project Evaluation Report and Development Analysis (see the AIP Forms
link in Appendix B), is an optional checklist that the ADOs may use to ensure that certain
important statutory, regulatory and grant requirements listed in this Handbook have been
considered prior to a grant being programmed. If the ADO’s PERADA review identifies any
items that are not met at the time of programming, this checklist can act as a useful tool for the
ADO in following up on these items at the appropriate time during the grant process. For
example, if a required aeronautical case was not approved prior to the ADO programming the
grant, the ADO must follow up and make sure the aeronautical case was approved prior to the
issuance of the grant offer.
While it is mandatory for the ADO to review the items on the PERADA checklist, the use of the
checklist itself is not mandatory. By issuing the grant, the ADO confirms that all of the
applicable requirements as detailed in this Handbook have or will be met.
5-15. Grant Programming.
Grant programming is defined as the ADO action of creating a proposed grant in the automated
AIP system. At this point, the ADO may enter the project into the automated AIP system based
on estimates found in the sponsor’s capital improvement plan or in cost estimate updates
provided by the sponsor. In the past, sponsors provided these costs to the ADO in a
preapplication. Formal preapplications are no longer required.
After this is done, the grant is then reviewed at various levels within the FAA Office of Airports.
If the grant is approved, it is then ready to begin the congressional notification process.
5-16. Congressional Notification.
If the FAA Office of Airports approves the grant, the grant then is forwarded to the FAA Office
of Government and Industry Affairs (AGI). AGI reviews the grant and forwards it electronically
to the DOT Office of the Secretary (OST).
5-8
After reviewing the grant, OST notifies the appropriate congressional office that the
congressional office can publicly announce the grant. The OST process varies depending on the
type and amount of funding involved and current legislative requirements. OST electronically
notifies the FAA when this process is complete (often referred to as the OST release date).
The FAA can share specific grant information with the public (including the sponsor) only after
the OST release date is entered in the automated AIP system.
5-17. Sponsor Notification.
After the congressional notification process is complete, the FAA Office of Airports posts the
grant on the FAA Office of Airports website (see AIP Grant History link in Appendix B for
link). This is considered the official FAA notification to the sponsor that the ADO has authority
to issue a grant for the project. The ADO has the option of also directly notifying the sponsor.
Section 4. Grant Application, Offer, and Acceptance.
5-18. Introduction.
The ADO and sponsor must complete the steps listed below as part of the grant application,
offer, and acceptance process.
a. Grant Application Package Submittal
b. Grant Application Review
c. Funds Reservation
d. Grant Offer
e. Grant Acceptance
f. The FAA Office of Finance and Management, FAA Accounts Payable Section B
(AMK-314) Notification
5-19. Grant Application Package Submittal.
a. Timing of Submission. Sponsors must submit a complete and correct grant application
package prior to the ADO issuing a grant offer.
b. Grant Application Package Contents. Table 5-6 outlines what a sponsor must submit in
a grant application package. The ADO will advise the sponsor how many original and/or copies
must be submitted to the ADO.
5-9
Table 5-6 Grant Application Contents
For the following… The sponsor submittal requirement is…
a. Application for Federal Mandatory. Sponsors must sign and submit the latest version this form as
Assistance part of all grant application packages (see the AIP Forms link in
(Standard Form 424) Appendix B). The signed grant application is contractually referenced in the
grant agreement and a signed copy must be included in the ADO grant file.
b. Application for Mandatory. FAA Form 5100-100, or its equivalent, must be submitted for
Development Projects all projects (see the AIP Forms link in Appendix B). The term its equivalent
(Parts II through IV) is intended to allow sponsors to create their own documents that contain the
(FAA Form 5100-100) exact information requested in FAA Form 5100-100, but allows them to
include sponsor-specific information or data.
This form provides supporting grant information such as the source of the
sponsor share, detailed cost breakdowns, project specific information (such
as narratives and justifications), and confirmation that items such as
coordination with on airport users has been accomplished.
Per FAA policy, contingency costs are not allowed because the ADO has
the option to amend an AIP grants, dependent on eligibility and availability
of funding, to reflect final costs. Therefore, sponsors must leave Part III,
Budget Information Item 18 (Contingencies) blank.
Optional for the State Block Grant Applications. The ADO has the
option to request this information, but states do not normally include this in
a state block grant application. The state must collect this information for
subgrants in accordance with their State Block Grant Program
Memorandum of Agreement.
c. Application for Mandatory for Planning Projects if FAA Form 5100-100 is Not Used.
Planning Projects For planning projects, sponsors can submit FAA Form 5100-101, or its
(Parts II through IV) equivalent, instead of FAA Form 5100-100 (see the AIP Forms link in
(FAA Form 5100-101) Appendix B). The term its equivalent is intended to allow sponsors to create
their own documents that contain the exact information requested in FAA
Form 5100-101, but allows them to include sponsor-specific information or
data.
Optional for the State Block Grant Applications. The ADO has the
option to request this information, but states do not normally include this in
a state block grant application. The state must collect this information for
5-10
d. Detailed Project At the Request of the ADO. Sponsors must provide an additional detailed
Narratives and/or Cost narrative summary statement and/or a detailed project cost breakdown
Breakdowns (beyond (beyond that provided in either FAA Form 5100-100 or FAA Form 5100-
that provided in either 101) if requested by the ADO. The detailed summary will normally include
FAA Form 5100-100 or a description and justification for each of the projects in the grant. The
FAA Form 5100-101) detailed project cost breakdowns will normally be in sufficient detail for the
ADO to determine whether the project costs for each of the projects are
reasonable.
Optional for State Block Grant Applications. The ADO has the option to
request this information (especially for discretionary projects), but states do
not normally include this in a state block grant application. The state must
collect this information for subgrants in accordance with their State Block
Grant Program Memorandum of Agreement.
e. Project Sketches At the Request of the ADO. Sponsors must provide an 8 ½” x 11” or
larger sketch for each of the projects if requested by the ADO. This sketch
must clearly identify the limits of the proposed project and its location on the
airport. For land acquisition projects, the sketch must show the boundaries
of currently owned land and the boundaries and proposed property rights of
each parcel of land or easement to be acquired, and include parcel
numbers and acreage.
request this information (especially for discretionary projects), but states do
not normally include this in a state block grant application. The state must
collect this information for subgrants in accordance with their State Block
Grant Program Memorandum of Agreement.
f. Project Documentation Mandatory. Sponsors must provide all of the documentation necessary for
Needed For ADO the ADO to make a cost reasonableness determination for the costs
Reasonableness contained in the grant application. The sponsor and ADO requirements are
Determination discussed in detail in Section 14 of Chapter 3. It is FAA policy that a
sponsor must submit the grant application incorporating actual bid or
negotiated agreement amounts. The ADO has an option to accept a grant
application based on estimates when actual bids or negotiated agreement
amounts are not available, however this practice is suboptimal because it
may unnecessarily tie up funding that could be used on other projects.
5-11
g. Exhibit A Mandatory (If A Current Approved Version is Not On File in the ADO).
The ADO must have a current approved Exhibit A (property inventory map)
on file prior to issuing a grant at that airport because it is contractually
referenced in the grant agreement. If the airport is a first time sponsor, or
the Exhibit A is not up to date, the ADO must require the sponsor to submit
an Exhibit A. Otherwise, the ADO may allow the sponsor to include the
Exhibit A on file by reference in Part II, Section C of FAA Form 5100-100 (or
equivalent).
The following documents contain guidance on Exhibit A requirements:
(1) The current version of Advisory Circular 150/5100-17, Land Acquisition
and Relocation Assistance for Airport Improvement Program Assisted
Projects
(2) The current version of FAA Order 5190-6, FAA Airport Compliance
Manual
(3) The current version of FAA Order 5100.37, Land Acquisition and
Relocation Assistance for Airport Projects
request this information, but states do not normally include this in a state
block grant application. The state must collect this information for
h. Title Certificate or At the Request of the ADO. Sponsors must have good title for the land on
Long Term Lease which they will be constructing the project. The ADO has the option of
Agreement requiring copies of the title certificates or long term lease agreement for the
grant file.
Optional for State Block Grant Program. The ADO has the option to
request this information, but states do not normally include this in a state
block grant application. The state must collect this information for
5-20. Grant Application Review.
The ADO must review the application and supporting documents for accuracy and completeness.
The ADO may adjust the depth and intensity of the review in accordance with the complexity of
the project, the amount of the grant, the size of the airport, and past experience with that sponsor.
The ADO may also request that the sponsor provide any additional information needed for the
ADO to complete this review. By issuing the grant offer, the ADO is officially approving the
projects in the grant application.
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a. Minimum Grant Amount. Per FAA policy, the ADO must not process applications for
grants totaling less than $25,000 in Federal funding unless the ADO has received APP-520
concurrence that it is clearly advantageous to the Federal government. The ADO documents this
determination of this being clearly advantageous by issuing the grant. Note that the sponsor has
the option to include multiple projects in the grant application to meet or exceed this $25,000
requirement.
b. All Pre-Grant Actions Complete. Before the ADO can issue a grant, the ADO must
verify that all of the pre-grant actions in Section 2 of this chapter (verification of sponsor
eligibility, current ALP, etc.) have been completed.
c. Determination of Reasonableness of Grant Amounts. Before the ADO can issue a

grant, the ADO must determine that all of the applicable requirements for costs are reasonable as
required in Section 14 of Chapter 3. This is an important and mandatory part of the ADO grant
application review process. The ADO’s reasonableness determination is not covered by sponsor
certifications and the ADO cannot delegate this responsibility.
5-21. Reservation of Funds.
If the ADO finds the grant application to be in order, the ADO must reserve the funds in the
automated AIP system. The system generates an electronic FAA Form 1413-1, Request for
Change in Reservation/Obligation. The ADO has the option of printing a copy of this form and
placing it in the grant file, however, this is not mandatory because the form is retained in the
automated AIP system. This is reviewed in the system at the regional level and if approved, the
system forwards the request to the FAA Office of Finance and Management, FAA Accounts
Payable Section B (AMK-314) for AMK-314’s acceptance. Once AMK-314 accepts the
reservation in the system, the funds are officially reserved.
Project and funding changes may be made by the ADO after the congressional notification
process. Normally this is due to differences between the estimated costs and the actual bid
amounts. Occasionally this occurs because the sponsor wants to change, add, or delete a project.
In these instances, the ADO must ensure that this is not a substitute for proper planning or
estimating. Project and funding changes after congressional notification may require APP
approval or additional congressional notification as follows.
a. APP-520 Approval. The ADO must obtain APP-520 approval for the following two
types of program changes to projects that have gone through congressional notification:
(1) Replacement of a Project Receiving Discretionary Funds. Replacement of a

project that is receiving discretionary funding with another project.
(2) New Lower Priority Entitlement Project at an Airport Receiving Discretionary

Funds. Replacement of a project that has a lower priority than a project the airport has or will
receive discretionary funds in the same fiscal year. This is because discretionary distributions are
based in part on how an airport is using its entitlements.
b. Additional Congressional Notification. If the grant amount is increased after

congressional notification, the ADO may be required to send the grant back through the
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congressional notification process. APP-520 provides the criteria for sending a grant back
through congressional notification process based on legislation and DOT Office of the Secretary
(OST) requirements.
5-22. Grant Offer.
There are multiple items that are part of a grant offer package. The ADO must include all of
these items in the grant file and is only required to send some of these items to the sponsor.
a. Grant Offer Package Components. The grant offer package consists of the components
listed in Table 5-7. All of these components must be filed by the ADO in the applicable grant
file.
b. Items Sent to Sponsor. The grant offer sent to the sponsor must contain items a-f in
Table 5-7 (the ADO has the option of sending the sponsor certifications to the sponsor before the
sponsor receives the grant offer). The ADO also has the option of attaching any of the other
components.
Table 5-7 Grant Offer Package
The following items are components of the grant offer package…
a. Grant Cover Letter.
b. Grant Agreement.
c. Applicable Special Conditions.
d. Grant Assurances.
e. Sponsor Certifications.
f. Current FAA Advisory Circulars Required for Use in AIP Funded and PFC Approved Projects.
g. Applicable State Agency Agreements.
h. The Entire Grant Application (see Paragraph 5-19 for requirements).
c. Grant Cover Letter. Traditionally, the grant cover letter highlights important grant
information to the sponsor. This may include when the grant needs to be returned, how many
copies the ADO requires, and reference to any special conditions the ADO wants to emphasize.
The ADO must use the grant cover letter template provided in the automated AIP system. Per
49 USC § 47116, the ADO must include the following sentence in all grant offer letters except
those for medium or large hub: Please note that this grant offer may be funded all or in part,
with funds from the Small Airport Fund.
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d. Grant Agreement. A fully signed and executed grant agreement is a binding agreement
obligating the sponsor and the FAA to the terms and conditions of the grant agreement. There
are three basic types of grant agreements. These are the traditional, the multi-year, and the state
block grant. Table 5-8 contains general requirements that apply to all three types of grants, and
Table 5-9 contains specific requirements for each of the types of agreements. Table 5-10
includes examples of grant descriptions.
Table 5-8 Requirements for All Grant Agreement Types
a. Grant Description. The ADO must write the grant description in sufficient detail to clearly identify
and define each project (see Table 5-10 for examples).
b. Grant Agreement. The ADO must use the grant agreement templates provided in the automated
AIP system. Sample traditional, multi-year, state block grant agreements are available on the FAA
Office of Airports website (see the AIP Forms link in Appendix B).
c. Standard Conditions. The ADO must not modify the standard grant conditions found in the grant
templates. These may only be updated by APP-500.
d. Funding Level. If the grant application is based on actual bid or negotiated agreement amounts, the
ADO must issue the grant based on these amounts (not the programmed amount). In addition, the
ADO cannot write the grant agreement for more than what is requested in the signed grant
application from the sponsor. However, the ADO can write the grant agreement for less than the
grant application without requesting an updated application from the sponsor as long as the project
components in the grant are included in the signed application and a note is made in the grant file
explaining the reduced grant amount.
Table 5-9 Specific Requirements by Grant Agreement Type
For this type of The following applies…

grant
agreement…
a. Traditional (1) Grant Agreement Format. The ADO must use the grant agreement template
(FAA Form 5100-37, Grant Agreement) provided in the automated AIP system.
A sample traditional grant agreement is available on the FAA Office of Airports
website (see the AIP Forms link in Appendix B).
(2) Type of Funding. The ADO must only use current year funding and funding
carried over from prior years.
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grant
agreement…
b. Multi-Year (1) Applicability. 49 USC § 47108(a) allows the ADO to issue multi-year grants
when the FAA AIP authorization is for multiple years.
(2) Grant Agreement Format. For a multi-year grant, the ADO must begin with the
traditional grant agreement. The ADO must use the grant agreement template
provided in the automated AIP system.
(3) Additional Condition. The multi-year agreement must contain the following
extra condition: This project is part of a multi-year grant, which is more fully
described in the Special Conditions. The total United States share of the project
is $[Enter total estimated Federal cost of multi-year project], and the project is
planned to be funded in Fiscal Years [List the fiscal years from Year 1 - End
Year]. For the fiscal years in which this project is being funded, the FAA will
establish that fiscal year’s maximum obligation in a letter to the Sponsor. When
the FAA can calculate the funding and incur the obligation, the FAA will issue this
letter to the Sponsor. Funding which will be subject to the restriction on the use
of such apportionments imposed on FAA by existing and future Appropriations
Acts. This commitment does not in itself obligate, preclude, or restrict the FAA in
the use of any funds made available for discretionary use to further aid the
Sponsor in meeting the cost of this project.
(4) Special Condition. The ADO must also include a special condition regarding
the subsequent multi-year amendments to the grant. The automated AIP system
contains the current available special conditions.
(5) Type of Funding. Under this type of grant, the ADO allows the sponsor to
commit the sponsor’s future year entitlement funds (passenger, cargo, or
nonprimary) within the grant. However, the ADO can only commit funds to a
multi-year grant for years within the current program authorization. For example,
The FAA Modernization and Reform Act of 2012 (Public Law 112-95)
reauthorization was in effect from fiscal year 2012 through the end of fiscal year
2015. The ADO could have written a multi-year grant written in FY2013 that
committed the sponsor’s fiscal year 2013 – 2015 entitlements. The ADO could
not have committed the sponsor’s fiscal year 2016 entitlements because it is
outside of the authorization period.
(6) Initial Year Requirements. The initial year of a multi-year grant must include
sponsor entitlement funds (passenger, cargo, or nonprimary) and may include
other types of funds such as discretionary. The initial year funding is shown as
the grant amount in the initial grant (the total multi-year grant amount is captured
in the additional clause discussed above).
(7) Future Year Requirements. Only sponsor entitlement funds (passenger, cargo,
or nonprimary) can be used for the future years of a multi-year grant. The future
year funds are added to the initial grant by a multi-year amendment (see multi-
year amendments under Paragraph 5-55).
(8) Total Multi-Year Funding Amount. The total multi-year funding amount is the
sum of the initial year and future years. This amount is captured in the additional
clause discussed above.
5-16

grant
agreement…
c. State Block (1) Grant Agreement Format. The ADO must use the state block grant agreement
Grant provided in the automated AIP system.
(2) Type of Funding. The ADO must only use current year funding and funding
carried over from prior years.
(3) Number of Grants per Fiscal Year. The ADO may write as many state block
grants during a fiscal year as it deems prudent. For example, although one grant
could be issued for the year, it may be beneficial to write one grant for state
apportionment, one for non-primary entitlement, and one or more for specific
discretionary projects.
(4) Passenger, Cargo, and Nonprimary Entitlements. If the state block grant
contains entitlements, the ADO must list the airport name, city, and associated
entitlement type and amount. (Note that if passenger entitlements are included
in the state block grant, these are the passenger entitlements allocated to virtual
primary airports under 49 USC 47114(c)(1).)
(5) Discretionary Funds. If the state block grant contains discretionary funds, the
ADO must list the airport name, airport city, the discretionary funding amount,
and a brief description of the project (see Table 5-10). The ADO has the option
to issue these discretionary projects under a separate state block grant, which
may be preferable for timing and/or tracking purposes.
(6) Special Conditions. Special conditions are normally included by the state in the
specific subgrants. However, the ADO has the option of adding special
conditions to the state block grant if the ADO deems it appropriate. The
automated AIP system contains the current available special conditions.
d. Grant (1) Grant Amendments. The requirements for grant amendments are included in
Amendments Section 7 of this chapter.
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Table 5-10 Examples of Grant Descriptions
For the following The following description And examples include…

projects involving… information is appropriate…
a. Runways (1) The runway number. Reconstruct Runway 13/31 (9,000’ x

150’).
(2) The length, width, and location
on the runway where the work Rehabilitate Runway 10/28 between
is being accomplished. Taxiway A1 and A2 (500’ x 150’).
Extend Runway 9/27 (200’ x 150’
northeast).
b. Runways (Phased (1) The runway number. Reconstruct Runway 13/31 Phase 1
over three grants) Design (9,000’ x 150’).
(2) The length, width, and location
on the runway where the work Reconstruct Runway 13/31 Phase 2
is being accomplished. (South 4,000’ x 150’).
Reconstruct Runway 13/31 Phase 3
(North 5,000’ x 150’).
c. Taxiways (1) The taxiway number. Reconstruct Taxiway A (9,000’ x 75’).

(2) The length, width, and location Rehabilitate Taxiway B between
on the taxiway where the work Taxiway A1 and A2 (500’ x 50’).
is being accomplished.
Extend Taxiway C (200’ x 50’ to the end
of Runway 9).
d. Aprons (1) The name of the apron (or Rehabilitate the General Aviation Ramp
reference by location). (5000 square feet).
(2) The length, width, and location Expand the South Terminal Apron
on the apron where the work is (40,000 square feet).
being accomplished.
e. Land Acquisition (1) The tract or parcel number. Acquire Parcel A (40 Acres, Fee
Simple) for the Runway Protection Zone
(2) The acreage.
of Runway 4.
(3) The type of acquisition
Acquire an easement for Parcel 54
(easement, fee simple).
(20.3 Acres) for approach protection for
(4) The purpose of the acquisition Runway 12.
(RPZ for runway end XX,
Acquire Parcel 84A (5 Acres, Fee
approach for runway end XX,
Simple) Including Relocation Costs
new airport, future
(3 residences, 1 barbershop) for future
development).
airport development.
(5) A short description of any
building relocation.
5-18
Table 5-10 Examples of Grant Descriptions
For the following The following description And examples include…

projects involving… information is appropriate…
f. Obstruction (1) The object being removed. Remove antenna tower off Runway 4.
Removal or
(2) If clearing and grubbing is being Clear and grub Runway 18 runway
Marking
accomplished, the acreage. protection zone (40 acres).
(3) The runway end on which the Install obstruction lighting on Hangar 6.
obstruction is located.
g. Noise Mitigation (1) The type of noise mitigation Provide residential sound insulation
(such as residential (approximately 20 residences) in the
soundproofing, school DNL 70 dB.
soundproofing, blast fence).
Sound insulate Roosevelt High School
(2) The associated noise contour, if (230 students) in the DNL 65 dB.
applicable.
(3) If known, the number of
houses/schools or
people/students affected.
h. State Block Grant (1) If the ADO chooses to write the For a project specific grants: See
(No Discretionary) grant for a specific project or above examples.
projects, the appropriate
For non-project specific grants:
information for that project.
Various airport developments under the
(2) If the grant will not be project State Block Grant Program.
specific, a general statement is
appropriate.
e. Special Conditions. Special conditions highlight extra steps the sponsor must take as part
of accepting the grant offer and included in the actual grant document. Special conditions are
tailored to the type of project, special sponsor circumstances, and/or unique situations and are
binding as part of the grant agreement. The automated AIP system contains the current available
special conditions. If the ADO determines that an additional special condition is needed, the
ADO must receive APP-520 approval to include the special condition in the grant. If
appropriate, APP-520 has the option to amend the special condition list to include this additional
special condition in the list of special conditions.
f. Grant Assurances. The requirements for the grant assurances are listed in Paragraph 2-4.
g. Sponsor Certifications. 49 USC § 47105(d) allows the FAA to require sponsors to

certify that they will comply with statutory and administrative requirements in carrying out an
AIP funded project. There are eight certifications as shown in Table 5-11 (see the AIP Forms
link in Appendix B). Certifications are considered to be part of the Grant Package.
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(1) Sponsor Certification History. It is FAA policy that the sponsor has primary
responsibility for complying with AIP requirements.
(2) Sponsor Certification Purpose. The grant agreement and the associated grant
assurances are the official, legal-binding documents that obligate the sponsor to AIP policies,
regulations and standards. The sponsor’s certifications are an additional measure used by the
ADO to focus a sponsor’s attention on certain grant obligations. These certifications are
intended to enhance a sponsor’s knowledge and ensure their compliance with the grant
obligations.
(3) Sponsor Certification Timing. Per FAA policy, all applicable certifications must be
signed by the sponsor on or before the date the sponsor signs the associated grant agreement
offer. The ADO normally accomplishes this by sending the applicable sponsor certifications
with the grant agreement offer. The ADO has the option of requesting these sponsor
certifications at an earlier date, for instance, at the same time as the grant application. If the
ADO believes changes have occurred on the project that may affect the sponsor certification on
file, the ADO has the option to require the Sponsor re-submit a certification form when it
completes the applicable actions that pertain to a specific certification statement. For example,
the ADO has the option to require resubmittal of the Construction Project Final Acceptance
certification as part of the closeout submittal for the project.
(4) FAA Sponsor Certification Responsibility. The ADO retains the responsibility of
maintaining a broad overview of AIP projects and being reasonably assured that the sponsor is
meeting all of its obligations. The ADO’s acceptance of a sponsor certification does not limit the
ADO from reviewing the appropriate documentation to validate the certification.
(5) False Sponsor Certification. If the ADO determines that the sponsor has not
adhered to the certifications, the ADO must review the associated project costs to determine if
the costs are still allowable under AIP. In addition, if the sponsor knowingly makes false
statements, further penalties may apply under 49 USC § 47126.
(6) Items Specifically Not Covered by Sponsor Certification. The use of sponsor
certifications is limited. Table 5-12 contains examples of Federal actions that cannot be covered
by sponsor certification.
5-20
Table 5-11 Summary of Sponsor Certifications
The following Requires the sponsor to…

document…
a. FAA Form 5100-134, Certify that they have properly followed or will properly follow key
Selection of consultation selection requirements.
Consultants
b. FAA Form 5100-132, Certify that they have or will prepare the plans and specifications in
Project Plans and accordance with key requirements.
Specifications
c. FAA Form 5100-131, Certify that they have properly followed or will properly follow key Federal
Equipment/Construction procurement requirements.
Contracts
d. FAA Form 5100-133, Certify that they have properly followed or will properly follow key land
Real Property acquisition requirements.
Acquisition
e. FAA Form 5100-129, Certify that they have or will complete key requirements prior to final
Construction Project project acceptance.
Final Acceptance
f. FAA Form 5100-130, Certify that the work place will be drug-free as required under the Drug-
Drug-Free Work Place Free Work Place Act of 1998 and 49 CFR part 32.
g. FAA Form 5100-135, Certify that there are no conflicts of interest to the FAA or to the state (for
Certification and state block grant subrecipients). The new requirement for this certification
Disclosure Regarding is contained in 2 CFR § 200.112 and became effective for AIP on
Potential Conflict of December 19, 2014. Per FAA policy, this is accomplished by the sponsor
Interests completing a Conflict of Interest certification.
h. Certification Regarding Certify that no federally appropriated funds have been used to influence a
Lobbying federal employee or member of Congress in connection with the grant.
Further details of requirements are found in Appendix A to 49 CFR part 20.
Note that for AIP purposes, this is not a separate certification. This
certification has been rolled into the grant application forms.
5-21
Table 5-12 Examples of Actions Specifically Excluded from Sponsor Certification
Some examples of inappropriate actions for sponsor certification…
a. Review of projects for inclusion in the NPIAS.
b. Entry or deletion of airports from the NPIAS.
c. Determination of AIP eligibility or justification.
d. Review of impacts to the National Airspace System architecture.
e. Review and approval of modifications to standards.
f. Review and approval of aeronautical study.
g. Designation of instrument runways.
h. Determination of AIP project cost reasonableness.
i. Disadvantaged Business Enterprise program approval (this is the responsibility of the FAA Office of
Civil Rights (ACR)).
j. Approval of environmental studies.
k. Approval of airport layout plans.
l. Review and approval of construction safety phasing plans.
m. Review and approval of various safety determinations (such as compliance with 14 CFR part 139
requirements and airfield safety determinations by Flight Standards).
n. Issuing waivers to the Buy American Preference requirements.
o. Review and approval of Project Labor Agreements.
h. Advisory Circular List. The FAA publishes a list of certain advisory circulars that set
out the applicable policies, standards, and specifications that sponsors must carry out on an AIP
funded project. The ADO includes this list directly in the grant agreement, which officially
incorporates it as part of the grant conditions. This list, FAA Advisory Circulars Required for
use in AIP Funded and PFC Approved Projects, is available online (see Appendix B for link).
i. Applicable State Agency Agreements. Some grants must be cosigned by the state
agency. In these cases, the ADO must obtain the state agency agreement with the sponsor and
retain this documentation in the ADO office files.
j. The Entire Grant Application. The requirements for the grant application are listed in
Paragraph 5-19.
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5-23. Grant Acceptance.
If the sponsor(s) agrees with the grant offer, the steps and requirements for the sponsor(s) to
accept the grant offer are included in Table 5-13. Once the ADO receives a copy of the executed
grant, the ADO must record that the grant was signed by the sponsor(s) in the automated AIP
system. The ADO has the option of printing the FAA Form 5100-107, Airport Improvement
Program Form (also called AIP Grant Status Report) generated by the automated AIP system and
placing the form in the file. However, this is not mandatory because a current version of the
form containing the grant history is retained in the automated AIP system.
Table 5-13 Steps and Requirements for Sponsor Grant Acceptance
The steps and requirements include…
a. The sponsor(s) cannot alter the grant agreement. The grant agreement can only be changed by a
grant amendment issued by the ADO.
b. The sponsor(s) must sign the grant in one of the two sponsor signature locations.
c. If the sponsor(s) signs where a notary is required, the notary must sign and stamp (or seal) the grant
at the same time. Therefore, the notary date must be the same date as the sponsor signature date.
d. Each sponsor’s attorney must sign the grant agreement after the sponsor. Therefore, the attorney’s
signature date must be on or after the sponsor’s signature date.
e. The sponsor(s) must keep one original executed grant agreement for its files and send the remaining
executed grant(s) back to the ADO by the date required by the ADO.
5-24. The FAA Office of Finance and Management, FAA Accounts Payable Section B
(AMK-314) Notification.
The ADO must send the pages of the grant offer that contain the grant description, grant amount,
and signatures to AMK-314.
Section 5. ADO Grant Oversight.
5-25. ADO Oversight (and Required Sponsor Documentation) Based on Sponsor Risk
Level.
Based on a DOT Office of Inspector General (OIG) audit and findings related to the FAA’s
administration of AIP, the FAA has implemented a risked base oversight system to minimize the
risk of misuse of funds by sponsors. The FAA uses a tiered ranking system to assign a risk level
to each sponsor. The risk level defines the level of oversight required by the ADO and lists the
sponsor documentation that the ADO must retain in the grant file. Current detailed guidance on
how to assign sponsor risk levels and the associated oversight requirements is contained in the
5-23
Airport Improvement Program (AIP) Grant Oversight Risk Model Policy(see Appendix B for
link).
5-26. Requirement to Include a Copy of FAA Determinations in the Grant File.
If a written ADO determination is required by this Handbook or other FAA policy, the ADO
must include a copy in the associated grant file. The ADO also has the option of adding a
reference to the grant file of the location (physical or electronic) of the written determination
instead of including a written copy in the grant file. The reference must be specific enough for
authorized personnel to readily find the document.
5-27. Statutory Requirement for ADO Project Oversight.
AIP is a grant program, and under 31 USC § 6304 and § 6305 (Federal Grant and Cooperative
Agreement Act of 1977) Federal agencies must use a grant agreement, rather than a cooperative
agreement when limited involvement between the sponsor and the Federal government is
expected. ADO involvement in an AIP project is generally limited to the oversight necessary to
protect the Federal interests as specified in 31 USC § 6304.
In addition to the other ADO oversight requirements listed throughout this Handbook, the ADO
has the following oversight requirements and options during the life of the project.
5-28. Safety Risk Management (SRM) Panels.
ADOs must participate in safety risk management panels associated with the project when it is
required by a triggering action listed in the current version of FAA Order 5200.11, FAA Airports
(ARP) Safety Management System. There is a separate tracking system for SRM, therefore the
ADO is not required to document the ADO’s participation in the grant file.
5-29. Construction Safety Phasing Plans.
The current version of Advisory Circular 150/5370-2, Operational Safety on Airports during
Construction, outlines when a sponsor is required to submit a construction safety phasing plan.
The ADO must review and approve or disapprove all required construction safety phasing plans
in writing. This ADO responsibility cannot be delegated and is not covered by sponsor
certification.
5-30. Predesign, Prebid, and Preconstruction Conferences.
Sponsors have the option to hold predesign, prebid, and preconstruction as discussed in the
current version of Advisory Circular 150/5370-12, Quality Management for Federally Funded
Airport Construction Projects. The ADO has the option to participate in these conferences.
5-31. Equipment Photographs.
The ADO has the option to require a sponsor to submit a picture of the actual delivered
equipment unless the sponsor’s risk level makes submitting a photograph mandatory. The ADO
must file any submitted photographs in the grant file.
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5-32. Construction Photographs.
The ADO has the option to require a sponsor to submit pictures of the project site before, during,
and/or after a construction project unless the sponsor’s risk level makes submitting a photograph
mandatory. The ADO must file any submitted photographs in the grant file.
5-33. Construction Management Programs.
In 1990, the FAA enacted a construction management plan policy for projects with a total
pavement construction contract value over $250,000 to satisfy an DOT Office of Inspector
General (OIG) Audit on Airport Construction Materials Conformance finding. The FAA has
since raised the dollar value to $500,000. It is FAA policy that a sponsor must submit a
construction management program to the ADO prior to the start of construction for projects with
a total pavement construction contract value over $500,000. The pavement construction contract
value is calculated by totaling the costs of the total pavement structure (including subgrade, base
and subbase courses, and surface course). If these costs exceed $500,000, a construction
management program is required.
When construction of a project requiring a construction management program is complete, the

sponsor is required to submit a summary of the quality assurance test results and the disposition
of any problem test results.
The ADO has the option of requiring the sponsor to provide the plan for lower dollar value
pavement projects. The ADO also has the option to review and/or comment on the construction
management program.
The ADO must place a copy of the construction management program, the summary of the
quality assurance test results, and a copy of the ADO comments (if applicable) in the grant file.
5-34. Notices to Proceed.
Once all contract documents have been executed, the sponsor will issue a notice to proceed to the
contractor. The sponsor must send a copy of the notice to proceed to the ADO if requested by
the ADO.
5-35. Change Orders, Supplemental Agreements, and Contract Modifications.
Sponsors have the option to change contracts through change orders, supplemental agreements,
and contract modifications as discussed in Table 5-14.
All change orders, supplemental agreements, and contract modifications must eventually be
reviewed by the ADO. This is because these actions are considered noncompetitive proposals
per 2 CFR § 200.320(f) (see Paragraph U-18). The notification, submittal, and determination
documentation requirements vary as discussed in Table 5-15. As discussed in Paragraph 3-101,
the Simplified Acquisition Threshold exception does not apply to change orders, supplemental
agreements, and contract modifications.
5-25
Unless specifically requested by the ADO, the sponsor does not have to obtain prior ADO
approval for contract changes. However, if a sponsor proceeds with a contract change without
FAA prior approval, it is at the sponsor’s risk. The ADO review at a later date could determine
that the costs in the contract change cannot be paid for under the grant. Sponsors have the option
to request prior ADO review of contract changes.
The exception is if the change order includes steel or manufactured goods that are less than
100% domestic materials. In this case, each change order requires separate Buy American
review by the ADO before the sponsor proceeds with the change order.
The ADO cannot approve costs that the ADO has determined are due to errors and omissions in
the plans and specifications that were foreseeable at the project design. In addition, the ADO
must only approve costs that are directly necessary to accomplish the project. Examples of
change orders that the ADO can approve and cannot approve are discussed in Table 5-16.
Examples of changes to professional services agreements that the ADO can approve and cannot
approve are discussed in Table 5-17.
Table 5-14 Types of Contract Changes
For the following type The following types of And guidance is contained in the current
of contract… contract changes are version of…
used…
a. Construction and Change orders or The current version of Advisory Circular

equipment contracts supplemental agreements 150/5370-10, Standards for Specifying
Construction of Airports
b. Negotiated Contract modifications or The current version of Advisory Circular

professional service supplemental agreements 150/5100-14, Architectural, Engineering, and
agreements Planning Consultant Services for Airport Grant
Projects
5-26
Table 5-15 Sponsor and ADO Requirements for Contract Changes
If the sponsor The sponsor must… And the ADO…

proposes to…
a. Execute change (1) Conduct a cost analysis. Paragraph U-21 Has the option to
orders, supplemental contains guidance to sponsors on how to request that the sponsor
agreements, and perform price and cost analyses. submit associated
contract documentation.
(2) If there is a change in scope, notify the ADO.
modifications
Otherwise notify the ADO upon ADO Has the option to
request. conduct a pre-award
review.
(3) If requested by the ADO, submit the
following documentation: Has the option, if the
ADO chooses to conduct
(a) Change order or supplemental
a review, to provide the
agreement.
sponsor with a written
(a) Justification for the change. response containing the
ADO finding and/or keep
(b) A statement signed by the sponsor that
a copy available for
the cost analysis was performed that
future reference.
includes the sponsor’s recommendation
that the FAA accept the statement and
analysis as evidence of cost
reasonableness.
(c) Any other support documentation
b. Request a grant (1) Have conducted a cost analyses for all Must review the project
amendment change orders, supplemental agreements, costs to ensure that all of
and contract modifications. Paragraph U-21 the requirements in
contains guidance to sponsors on how to Chapter 3 have been
perform price and cost analyses. met, including cost
reasonableness.
(2) Submit (or have submitted) the following
documentation: By signing the grant
amendment, the ADO is
(a) All associated change orders,
documenting that the
supplemental agreements, and contract
associated project costs
modifications.
in the amendment meet
(b) Justification for the changes. the requirements in
Chapter 3.
(c) A statement signed by the sponsor that
a cost analysis was performed for all
change orders, supplemental
agreements, and contract modifications
that includes the sponsor’s
recommendation that the FAA accept
the statement and analysis as evidence
of cost reasonableness.
(d) Any other support documentation
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Table 5-15 Sponsor and ADO Requirements for Contract Changes
If the sponsor The sponsor must… And the ADO…

proposes to…
c. Submit the grant (1) Have conducted a cost analyses for all Must review the project
closeout package change orders, supplemental agreements, costs to ensure that all of
and contract modifications. Paragraph U-21 the requirements in
contains guidance to sponsors on how to Chapter 3 have been
perform price and cost analyses. met, including cost
reasonableness.
(2) Submit (or have submitted) the following
documentation: By signing the FAA final
project report, the ADO
(a) All associated change orders,
is documenting that the
final project costs in the
modifications.
grant meet the
(b) Justification for the changes. requirements in
Chapter 3.
(c) A statement (or statements) signed by
the sponsor that a cost analysis was
performed for all change orders,
modifications that includes the sponsor’s
recommendation that the FAA accept
the statement and analysis as evidence
of cost reasonableness.
(d) Any other support documentation
Table 5-16 Examples of Change Orders that Can and Cannot be Approved by the
ADO for AIP Participation
For the following change order… The ADO…
a. To revise quantities of items to reflect Has the option to approve the request for adjustment
actual quantities used for the project. (increase/decrease) in construction cost.
b. To address differing site conditions or Has the option to approve the request.
materials that were not found during the
site investigation.
c. To remove subsurface materials that Has the option to approve the request. Even though this
were shown in the soil borings taken work must be accomplished to finish the project, the
during the site investigation. existing field condition was readily apparent but was
overlooked. (The difference between this and the
preceding entry is that while the construction costs may
be allowable, the costs to redesign are not allowable as
discussed in the next table.)
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Table 5-16 Examples of Change Orders that Can and Cannot be Approved by the
ADO for AIP Participation
For the following change order… The ADO…
d. To make changes in a terminal building Must not approve the request unless the ADO has
using the proration that was used to determined that the initial AIP proration is valid for the
determine initial AIP participation. work included in the change order. If the initial AIP
proration is not valid, the ADO must not approve the
change order until the change order amount is calculated
based on actual cost information.
e. For construction costs to add work Must not approve the request unless the ADO has
outside of the grant description. coordinated the steps needed to add work to a project.
Table 5-17 Examples of Changes to Professional Services Agreements that Can

and Cannot be Approved by the ADO for AIP Participation
For the following request… The ADO…
a. To revise contract documents to rebid a Must not approve the request.

package because of a bid protest that
was upheld by the ADO.
b. To revise contract documents because Must not approve the request.

the project specifications were deficient.
This includes failure to use FAA
standards, unapproved modifications,
unduly restrictive requirements.
c. To rebid a project as a result of a non- Has the option to approve the request for additional
competitive bid environment or high bids professional services fees provided the sponsor’s actions
due to factors outside of the sponsor’s were not the cause of the non-competitive environment
control. or high bids.
d. To address, via redesign, differing site Has the option to approve the request.
conditions or materials that were not
found during the site investigation.
e. To address, via redesign, the removal of Must not approve the request. Even though this work
subsurface materials that were shown in must be accomplished to finish the project, and the
the soil borings taken during the site construction costs may be allowable, the existing field
investigation. condition was readily apparent but was overlooked during
the design phase. (The difference between this and the
preceding entry is that while the construction costs may
be allowable, the costs to redesign are not allowable.)
f. To add work outside of the grant Must not approve the request unless the ADO has
description. coordinated the steps needed to add work to a project.
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5-36. Periodic Inspections.
The ADO has the option of conducting periodic inspections of the worksite.
5-37. Construction Progress and Inspection Report.
Per the current version of Advisory Circular 150/5370-12, Quality Management for Federally
Funded Airport Construction Projects, the sponsor’s engineer must complete FAA Form 5370-1,
Construction Progress and Inspection Report, or the equivalent for all AIP funded construction
projects. The sponsor must submit the requested reports to the ADO at least quarterly (or more
frequently at the ADO’s request).
5-38. Meetings for Planning and Environmental Study Grants.
Sponsors (and sometimes the ADO) are often required to hold meetings in association with
planning and environmental study grants. The ADO has the option of attending these meetings
unless otherwise required by an FAA order or other FAA policy. For instance, the current
version of FAA Order 5050.4, National Environmental Policy Act (NEPA) Implementing
Instructions for Airport Projects, requires that the ADO not only attend required EIS meetings
(not optional), but also organize and lead the meetings. The specific requirements for these
meetings are discussed in the current versions of the following documents.
a. Advisory Circular 150/5070-7, The Airport System Planning Process
b. Advisory Circular 150/5070-6, Airport Master Plans
c. FAA Order 5050.4, National Environmental Policy Act (NEPA) Implementing

Instructions for Airport Projects
5-39. Forecasts in Planning or Environmental Projects.
If the grant contains planning or environmental projects that require forecasts, the sponsor is
required to submit the forecast to the ADO. The ADO must approve or disapprove the forecast
before it is used as part of the project. This ADO responsibility cannot be delegated and is not
covered by sponsor certification.
5-40. Performance Report (formerly called Quarterly Performance Report).
2 CFR § 200.328 requires sponsors of Federal grants to submit performance reports. Table 5-18
provides the performance report requirements for AIP projects by project type. Note that this
performance reporting provides project schedule and dates, and is not the same thing as the
Standard Form 425, Federal Financial Report.
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Table 5-18 Performance Report Requirements by Project Type
For the following The FAA policy is…

type of project…
a. Non-construction (1) Per 2 CFR § 200.328, the sponsor must submit FAA Form 5100-140,
Performance Report (see the AIP Forms link in Appendix B) at least
annually, but not more than quarterly, until the non-construction project is
completed. The ADO has the option of requiring the performance report
quarterly.
(2) The sponsor must submit each performance report within 30 days of the
end of quarter if required quarterly or semiannually; and within 90 days of
the end of the fiscal year if required annually. Sponsors must not submit
the performance reports in batches or at the end of the project.
(3) If a major project or schedule change occurs between performance reports,
the sponsor must submit an out of cycle performance report to the ADO.
(4) Guidance on the current ADO review requirements is contained in the
Airport Improvement Program (AIP) Grant Payment and Sponsor Financial
Reporting Policy (see Appendix B for link).
b. Construction (1) The FAA has determined that sponsor submittal of FAA Form 5370-1,
Construction Progress and Inspection Report, satisfies the performance
reporting requirement.
(2) FAA Form 5370-1 (see the AIP Forms link in Appendix B) is discussed in
more detail in the current version of Advisory Circular 150/5370-12, Quality
Management for Federally Funded Airport Construction Projects.
(3) 2 CFR § 200.328 establishes general reliance on inspection reports and
certified percentage of completion for Federal monitoring of construction
project status. Per FAA policy, the sponsor must submit FAA Form 5370-1
to the ADO at least quarterly, however, the ADO has the option to require
the sponsor submit these reports on a more frequent basis. Per FAA policy,
the quarterly frequency for this report will generally provide adequate ADO
monitoring for construction projects.
(4) The sponsor must submit FAA Form 5370-1 to the ADO for each fiscal
quarter until the construction project is completed.
(5) The sponsor must submit each FAA Form 5370-1 within 30 days of the end
of the quarter (not in batches or at the end of the project).
(6) The sponsor must include the certified percentage-of-completion
information on FAA Form 5370-1. If not, the ADO must require the sponsor
to resubmit the form with this information.
(7) If a major project or schedule change occurs between the reporting cycles,
the sponsor must submit an out of cycle FAA Form 5370-1 to the ADO.
(8) Guidance on the current ADO review requirements is contained in the
Airport Improvement Program (AIP) Grant Payment and Sponsor Financial
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5-41. Annual Reporting of Residential Population Benefits.
The ADO must report the residents and students that benefit from noise compatibility projects.
This reporting is done on a yearly basis by APP-400 with the assistance of the regional offices
and ADOs.
5-42. Final Inspection.
For construction projects, the sponsor must provide the ADO with documentation confirming
that the project was completed in accordance with the terms and conditions of the contract(s).
The ADO must include a copy of this documentation in the grant file.
The ADO has the option of attending the final inspection. If the ADO does not attend the final
inspection, then the ADO has the option to rely on the sponsor Construction Project Final
Acceptance certification and the sponsor final inspection report as confirmation that the work has
been completed in accordance with the approved plans and specifications.
Section 6. Grant Payments.
5-43. Summary of Payment Request Requirements and Limitations.
The requirements and limitations for grant payment requests are summarized in Table 5-19.
These items are discussed in more detail in the following paragraphs.
Table 5-19 Grant Payment Request Requirements and Limitations
The grant payment requirements and limitations include…
a. The sponsor and ADO must process all grant payment requests through the currently approved
Department of Transportation (DOT) grant payment system unless otherwise approved by the ADO.
b. The sponsor must submit payment requests at least annually unless the ADO requires more frequent
payment requests.
c. The sponsor must base payment requests on costs incurred (based upon invoices, billing statements,
or other appropriated payment support provided to the ADO by the sponsor).
d. The ADO must not approve any payment requests for the last 10% of the Federal share of the grant
(or the last 10% of the estimated Federal share of the grant after amendment, whichever is less)
unless the requirements in Paragraph 5-46 are met. The ADO has the option of excluding a state
block grant from this requirement only if the state is following this requirement for all of the subgrants
within the state block grant and the ADO is confident that the state will submit the state block grant
closeout documentation in a timely manner.
e. The ADO is allowed to determine the timing and amount of the payment and may reduce or withhold
the payment if the ADO follows the applicable requirements.
f. The sponsor must stay within the contract retainage limitations.
5-32
Table 5-19 Grant Payment Request Requirements and Limitations
The grant payment requirements and limitations include…
g. The sponsor must stay within the disputed cost limitations.
h. The sponsor must stay within the land acquisition cost limitations.
i. The sponsor must not request a payment that is improper.
j. The sponsor must document and/or report their payment requests on ) the following forms (see the
AIP Forms link in Appendix B) as required in the Airport Improvement Program (AIP) Grant Payment
and Sponsor Financial Reporting Policy (see Appendix B for link).
(1) Standard Form 425, Federal Financial Report.
(2) Standard Form 271, Outlay Report and Request for Reimbursement for Construction Programs
(or ADO approved equivalent) or Standard Form 270, Request for Advance or Reimbursement
(for non-construction projects in lieu of Standard Form 271or ADO approved equivalent).
k. The sponsor must maintain all of the documentation supporting the grant payment for the required
time period and must make this information available upon request.
5-44. Requirements and Process for Using the Current DOT Electronic Payment System.
a. Sponsor Payment Requests. Sponsors must submit all grant payment requests and
related supporting documentation electronically through the currently approved Department of
Transportation grant payment system. Sponsors that are unable to use the DOT system must
submit a waiver request to the ADO for review by the DOT. Guidance and help desk contact
information for the current DOT electronic payment system is available on the FAA Office of
Airports website (see AIP Grant Payments link in Appendix B). Note that it is the sponsor’s
responsibility to keep their banking information up to date.
b. ADO Payment Approval. The sponsor’s risk level determines the level of payment
review required by the ADO within the currently approved DOT grant payment system. Current
detailed guidance on ADO review responsibilities and how the ADO is to use the electronic
system is contained in the Airport Improvement Program (AIP) Grant Payment and Sponsor
Financial Reporting Policy (see Appendix B for link).
c. Method of Payments. Once ADO and AMK-314 approve the payment request, AMK-
314 will request the U.S. Treasury to transfer funds to the sponsor’s bank through an electronic
funds transfer. If a sponsor requires a Treasury check, the sponsor must work with AMK-314 to
determine the process.
5-45. Requirements for Frequency of Payment Requests and Expenditure Rate.
Per 2 CFR § 200.400, the sponsor must efficiently and effectively administer the grant by
applying sound management practices. In addition, 49 USC § 47106(a)(4) requires that a project
be completed without unreasonable delay. The ADO ensures compliance with these requirement
5-33
by monitoring Performance Reports as required in Paragraph 5-40 and ensuring that regular
grant payments are being made to support project accomplishments.
a. Frequency of Sponsor’s Payment Requests. Per FAA policy, sponsors must submit
payment requests at least every twelve months starting from the date of the grant acceptance. An
ADO also has the option to require the sponsor to submit payment request as often as every three
months (quarterly). This mirrors the financial reporting frequency provided in 2 CFR § 200.327.
This does not limit the sponsor from submitting payment requests more frequently than every
three months.
b. Requirements for Payment Request Frequencies Exceeding 12 Months. If a sponsor

has not submitted a payment request for more than 12 months, it is FAA policy that the ADO
must notify the sponsor in writing of this delinquency and request the sponsor to submit a
payment request or, if applicable, close the grant. If the sponsor is unable to submit a payment
request or close the grant, the sponsor must provide the ADO with the reason for the delay and
the sponsor’s proposed resolution. If the ADO finds the reason for the delay or the proposed
resolution unacceptable, the ADO has the option to suspend the grant as outlined in Section 9 of
this chapter and/or, upon further coordination with ACO-100, delay issuing any future grants to
the sponsor until the issue is resolved.
c. Expenditure Rate. If the sponsor is drawing down the grant funding at a pace that is not
consistent with the project progress or completing the project in a timely manner, the ADO has
the option of asking the sponsor to submit the reason for the delay and the proposed resolution to
the ADO in writing. If the ADO finds the reason for the delay or the proposed resolution
unacceptable, the ADO has the option to suspend/terminate the grant as outlined in Section 9 of
this chapter and/or, upon further coordination with ACO-100, delay issuing any future grants to
the sponsor until the issue is resolved.
5-46. Requirements for Approving Payment within the Last 10% of the Federal Share.
Per 49 USC § 47111, no more than 90% of the Federal share of a project’s estimated allowable
costs may be made before the project is complete. The language in this section of the statute has
been misinterpreted in the past to only apply to advance payments. The intent and origination of
this language has been researched by the FAA, and it has been determined that this requirement
applies to all types of payment requests, not just advance payments.
Per FAA policy, the ADO has the option to approve payment requests for a portion of the
remaining 10% for a project that the ADO determines meets all of the requirements in the latest
version of the Airport Improvement Program (AIP) Grant Payment and Sponsor Financial
5-47. Requirements for Payment Requests to be Based on Incurred Costs.
Per 2 CFR § 200.305, the advance payment method is the standard method used by the Federal
government to pay a sponsor. In order for an ADO to allow a sponsor to be paid in this manner,
the sponsor must meet the conditions in Table 5-20.
5-34
When a sponsor is not able to satisfy the advance payment method requirements in Table 5-20,
then the ADO must require the sponsor to submit payment requests under the reimbursement
method. The ADO must document the reasons a sponsor has been placed on the reimbursement
method of payment in the sponsor’s file. The ADO has the option to revisit this decision if
conditions with the sponsor change that may warrant the sponsor returning to the advance
payment method.
If the FAA has determined that the sponsor lacks sufficient working capital to even operate on an
advance payment basis, 2 CFR § 200.305(b)(4) allows sponsors to request cash advances prior to
receiving invoices and billing statements. Under this procedure, the FAA advances cash
payments to the sponsor to cover its initial capital start up needs for the grant. After this initial
advancement(s), normal payment requirements apply. This is a very unusual situation requiring
adequate justification, and APP-520 must approve or disapprove all requests of this nature.
Table 5-20 Conditions the Sponsor Must Meet for Advance Payments
The following conditions must be met for a sponsor to receive advance payments…
a. The Advance Payment Request is Based on Invoices and Billing Statements. Per FAA policy,
the sponsor must provide documentation showing that the advance payment is based upon invoices,
billing statements, or other appropriated payment support. For direct or indirect sponsor costs such
as administrative costs, force account costs, or costs not supported by a contract, the sponsor must
be able to provide documentation that supports the amount and validity of the cost. This ensures that
the advance payment is based upon defined costs as opposed to estimated amounts.
b. The Sponsor Provides Prompt Payment to the Vendor. Per 2 CFR § 200.305(b)(1), the sponsor
must maintain or demonstrate the willingness to maintain both written procedures that minimize the
time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial
management systems that meet the standards for fund control and accountability.
c. The Sponsor Meets Payment Requirements in Their Contracts and in Local/State Law. Per
FAA policy, the sponsor must not withhold payment from their vendors beyond the time frame
addressed in their contract or by local and state law, regardless of the timing of the grant or advance
payment.
5-48. Requirements for Reducing or Withholding Payments.
Under 49 USC § 47111, the ADO is allowed to decide when and in what amounts payments
under the grant may be made. The unique situations where the ADO would reduce or withhold a
sponsor payment request are discussed in Table 5-21.
5-35
Table 5-21 Situations Where an ADO Would Reduce or Withhold a Sponsor

Payment Request
For the ADO to… The ADO must…
a. Approve less than the sponsor (1) Determine that the payment request contains unallowable,
payment request due to unreasonable, or unjustified costs.
unallowable, unreasonable, or
(2) Notify the sponsor of the adjusted amount and the reason
unjustified costs
behind the adjustment.
(3) Reject the payment back to the sponsor and require the
payment to be resubmitted.
b. Withhold a sponsor payment (1) Determine that there is insufficient information in the payment
request pending satisfactory request for the ADO to determine the reasonableness,
backup allowability, and necessity of the claimed costs.
payment to be resubmitted.
c. Withhold a sponsor payment (1) Have been notified by the FAA Office of Finance and
request from a sponsor who is Management, FAA Accounts Payable Section B (AMK-314)
indebted to the U.S. Government that the sponsor owes money to a Federal agency.
(2) Determine if withholding payments will significantly impact the
progress on the AIP project.
(3) Notify the sponsor of the indebtedness and request
documentation of resolution.
payment to be resubmitted once the indebtedness has been
resolved.
d. Withhold payment requests for a (1) Have been notified by ACO-100 that ACO-100 has found the
sponsor in noncompliance with a sponsor to be in noncompliance with a grant assurance (or
grant assurance (or other other egregious violation).
egregious violation)
(2) Coordinate with ACO-100 to determine whether to withhold
payments.
(3) Not withhold payment for proper charges for more than
180 days unless the sponsor has been notified and given an
opportunity for a hearing (if required by either
49 USC § 47106(d) or 47111) and ACO-100 concurs with this
action.
5-49. Limitations for Contract Retainage.
The current version of Advisory Circular 150/5370-10, Standards for Specifying Construction of
Airports, allows a sponsor to retain a percentage of a contractor’s invoices until the contractor
satisfactorily completes the work. A summary of these retainage requirements and the associated
limitations for the sponsor to include them in payment request is included in Table 5-22.
5-36
Table 5-22 Contract Retainage Limitations
If the sponsor opts The sponsor is required to… And the sponsor’s payment
to… request…
a. Hold retainage, but (1) Include a clause in the contract Must not include the
not in an escrow obligating prime contractors to make retainage amount. This is
account. prompt and full payment of any retainage because the sponsor does
to their subcontractors. not incur a cost when
withholding retainage. The
(2) Ensure that the retainage percentage
sponsor incurs the cost when
that the prime contractor sets for the
retainage is released.
subcontractor does not exceed the
retainage percentage the sponsor sets
for the prime contractor.
(3) Ensure prompt and full payment of
retainage from the prime contractor to
the subcontractor within 30 days after the
subcontractor’s work is satisfactorily
completed (as required in
49 CFR § 26.29).
b. Hold retainage in an (1) Include a clause in the contract May include the retainage
escrow account obligating prime contractors to make amount. This is because the
prompt and full payment of any retainage sponsor is responsible for
to their subcontractors. paying these costs and does
so by placing the retainage in
(2) Ensure that the retainage percentage
an escrow account.
that the prime contractor sets for the
subcontractor does not exceed the
retainage percentage the sponsor sets
for the prime contractor.
(3) Ensure prompt and full payment of
retainage from the prime contractor to
the subcontractor within 30 days after the
subcontractor’s work is satisfactorily
completed (as required in
49 CFR § 26.29).
c. Not hold retainage (1) Ensure that the prime contractor does Must not deduct a retainage
not set a retainage percentage for the amount from the payment
subcontractor. request. All costs are based
on actual paid costs.
(2) Require a contract clause obligating
prime contractors to make prompt and
full payment of any retainage kept by
prime contractor to the subcontractor
within 30 days after the subcontractor’s
work is satisfactorily completed.
5-37
5-50. Limitations for Contractor Disputed Costs.
When the sponsor and the contractor do not agree on the amount owed to the contractor, and the
dispute is likely to go to court, the sponsor is still allowed to submit a payment request for any
undisputed costs.
5-51. Limitations for Land Acquisition Costs.
It is FAA policy that costs associated with a land acquisition (such as cost of land, appraisals,
legal fees, etc.) are not allowable until after the sponsor has submitted evidence satisfactory to
the ADO that the sponsor will receive good title to land. The sponsor must submit a binding
purchase agreement that will convey good title, evidence of a condemnation deposit, a
condemnation award, or a court settlement. Until the sponsor meets this requirement, there is no
guarantee that the land acquisition will be completed. Therefore, sponsors must not submit
payment requests until these conditions are met.
5-52. Requirements for Avoiding Improper Payments.
a. Background, Definition, and Examples. The Improper Payments Elimination and

Recovery Improvement Act of 2012 (Public Law 112-248) outlines Federal requirements
regarding improper payments. An improper payment occurs when the funds go to the wrong
sponsor, the sponsor receives an incorrect amount of funds, or the sponsor uses the funds in an
improper manner. Sponsors must avoid requesting and the ADO must avoid approving improper
payments. Examples of improper payments are listed in Table 5-23
Table 5-23 Examples of Improper Payments
Some examples include payments that are made…
a. To the wrong AIP sponsor.
b. To an ineligible sponsor.
c. To the wrong AIP grant.
d. For an ineligible or unallowable work (see Chapter 3 for requirements).
e. That duplicates previous payments.
f. For costs that have not been paid (unless the ADO has approved an advance payment).
g. For an incorrect amount (either over or under the correct amount).
h. Where the sponsor cannot provide documentation to support that the payment was made correctly.
5-38
b. Identification and Remediation of Improper Payments. Improper payments may be

identified through a number of avenues. This may include audits under the Single Audit Act, by
the DOT Office of Inspector General (OIG), by state or local authorities, by the U.S. General
Accountability Office. Improper payments may also be identified by the ADO or the sponsor.
In all cases, the ADO must take action as outlined in Table 5-24 and the sponsor must take action
as outlined in Table 5-25.
c. Costs Incurred to Recover Improper Payments. By FAA policy, the costs incurred by a
recipient to recover improper payments are not allowable as either direct or indirect costs.
Table 5-24 ADO Remediation Actions for Improper Payments
The ADO must…
a. Notify the OIG if the ADO has reason to believe the improper payment was a deliberate attempt to
defraud the FAA. The OIG hotline may be used for this purpose (see Appendix B for link).
b. Notify the sponsor in writing of the improper payment, including a description of the error or problem
that was found (unless otherwise directed by the OIG).
c. Work with the sponsor to determine how the error or problem will be corrected (unless otherwise
directed by the OIG).
d. Document the steps that will be taken to resolve the improper payment and include the
documentation in the grant file.
Table 5-25 Sponsor Remediation Actions for Improper Payments
If the sponsor… The sponsor must…
a. Has not received Withdraw and resubmit the payment request that contains the improper
the payment. payment.
b. Has received the Per 31 CFR § 901.2(b)(3), pay the improper payment within 30 days of the
payment. initial ADO notification using the established process for returning AIP funds
electronically through the currently approved Department of Transportation
grant payment system. Any alternate forms of returning funds to the FAA must
be coordinated with the ADO and the FAA Office of Finance and Management,
FAA Accounts Payable Section B (AMK-314).
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5-53. Requirements for Financial Reporting (Standard Forms 425, 271, and 270).
Sponsors are required to submit certain financial reports to summarize grant expenditures and the
status of project funds. Sponsors must submit the following financial reporting forms as required
in the current version of Airport Improvement Program (AIP) Grant Payment and Sponsor
Financial Reporting Policy (see Appendix B for link). The forms are also available on this
website (see the AIP Forms link in Appendix B). 2 CFR § 200.327 requires sponsors to report at
least annually, but not more than quarterly.
a. Standard Form 425, Federal Financial Report, or ADO approved equivalent (see the AIP
Forms link in Appendix B). This requirement is found in 75 Federal Register 54215 (September
3, 2010). Per this Federal Register Notice, the Standard Form 272 is replaced by the Standard
Form 425 (Federal Financial Report) and outlines the timing of the sponsor submittal.
b. Standard Form 271, Outlay Report and Request for Reimbursement for Construction
Programs (see the AIP Forms link in Appendix B), or ADO approved equivalent. The ADO may
allow the use of a Standard Form 270, Request for Advance or Reimbursement (see the AIP
Forms link in Appendix B), for non-construction projects in lieu of Standard Form 271.
5-54. Requirements for Retaining/Providing Supporting Documentation.
The sponsor is responsible for maintaining all of the documentation supporting a grant payment
and making this information available upon request.
Per 2 CFR §§ 200.333- 200.337, the sponsor is required to keep these records for at least three
years from the date the sponsor submits the last payment request. If any litigation, claim,
negotiation, audit or other action involving the records has been started before the end of the
three year period, the sponsor must retain the records until the completion or resolution of the
action, or the three year period, whichever is later.
Section 7. Grant Amendments.
5-55. Criteria for Amending a Grant.
49 USC § 47108 allows the ADO to amend a grant once it has been issued. The ADO is allowed
to issue an amendment as long as the ADO adheres to the criteria in Table 5-26 through
Table 5-28. The appropriate amendment formats are described in Table 5-29.
5-40
Table 5-26 Criteria for an ADO to Amend a Grant
If the grant The ADO can amend the grant if the following criteria are met…
description…
a. Remains the same (1) If the grant amount will be increased, the sponsor must make the request
(regular in writing and fully document the amount and justification.
amendments)
(2) Decreases to the grant amount can be requested by the sponsor in
writing or can be initiated by the ADO. The standard practice is for the
sponsor to submit a written request fully documenting the amount and
reason for the decrease, which the ADO must include in the grant file.
However, the ADO has the option to decrease a grant, even if the
sponsor is in disagreement, as long as the ADO documents the decision
in the grant file.
(3) The ADO must determine that it is advantageous to the Federal
government.
(4) The ADO must not increase the grant amount for planning projects. This
restriction is based on 49 USC § 47108(b)(3) which only allows increasing
the grant amount for airport development or land acquisition projects.
(5) Normally, the ADO only amends a grant at closeout to adjust the grant
amount to reflect final costs. However, the ADO has the options to
amend the grant more than once and at times other than at closeout.
(6) In the rare case where a grant is based on estimates, the ADO must
amend the grant to remove excess funds as soon as the actual costs are
known.
(7) The ADO has confirmed that the applicable requirements in Chapter 3
have been met.
(8) The ADO has confirmed that the amendment increase is within the limits
found in Table 5-27.
b. Remains the same (1) Unless the grant is a multi-year grant (see multi-year amendment below)
(amendment to or the ADO needs to correct a mistake in the Federal share percentage,
correct the Federal the Federal share percentage must remain the same throughout the life of
share percentage) the grant. The ADO must not amend a grant to change the Federal share
unless the amendment is needed to correct a mistake in the Federal
share percentage.
c. Remains the same (1) Unless otherwise required by the ADO, the sponsor is not required to
(adding future year submit a written request.
funds to a multi-year
(2) The multi-year amendment will not increase the total Federal share for the
amendment)
multi-year agreement beyond the amount listed in the original grant
agreement.
(3) The ADO is only allowed to include sponsor entitlement funds
(passenger, cargo, or nonprimary) in the multi-year amendment.
(4) If the Federal participation rate changes during the course of the multi-
year grant, the ADO must write the amendment using the current fiscal
year rate (not the rate that was in affect when the grant was issued).
5-41
description…
d. Remains the same (1) If the Federal share of the eligible project costs exceeds the total multi-
(adding additional year amendment amount established in the initial grant agreement, the
funds to a multi-year ADO has the option to issue a regular amendment.
amendment)
(2) The ADO must follow the amendment rules for increases in Table 5-27
and use the total multi-year amendment amount as the basis of these
calculations.
(3) The total multi-year funding amount is the sum of the initial year and
future years.
e. Is changed to clarify (1) If the ADO is clarifying the project with no change in funding, then the
a project ADO can initiate this action. Unless requested by the ADO, the sponsor
does not need to request the change in writing or provide additional
information.
(2) The change to the grant description must simply provide a corrected grant
description for the originally intended project. For this situation, work can
only be added to the description if the ADO inadvertently omitted it from
the original grant description. For example, the ADO might change the
grant description to add relocation of a PAPI associated with a runway
extension if the PAPI was always intended to be included in the project.
(3) If the ADO wants to also adjust the funding for final project costs in the
same amendment, then all of the criteria in Item a of this table also apply.
(4) To avoid the risk of an improper payment, the ADO must issue the
clarifying amendment prior to the start of the affected work.
f. Is changed to add a (1) FAA policy is to avoid adding both a new project and funding to a grant.
project and increase The ADO must only consider using this option in rare circumstances. The
funding in the grant standard accepted practice is to issue a new grant. An example of a
suitable situation to add both a new project and funding is when it will help
rapidly implement an emergency fix related to the original grant scope
(i.e., during a runway rehabilitation, to replace a failure of a taxiway
lighting system on the taxiway that is used to move aircraft around the
closed runway). In this example, replacement of a taxiway lighting
system would normally be a separate grant. This work is closely related
to the current project, and the taxiway lighting system must be operational
in order to support existing night operations on the airport.
(2) The sponsor must make the request in writing and fully document the
amount and justification.
government.
(4) FAA policy is that the ADO must have requested, and received separate
regional approval from the 610 branch in advance of adding a new project
to the grant.
(5) The ADO must determine that the need for the additional project is closely
related to a project contained in the original grant.
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description…
(6) If there is enough sponsor entitlement in the grant to cover the new
project, then the sponsor can begin the work on the new project before
the amendment is issued. Otherwise, the ADO must follow the
reimbursement rules in Paragraph 3-100, replacing grant execution date
with grant amendment execution date.
have been met.
(8) All other statutory and regulatory requirements (such as environmental
clearance, aeronautical study determination, ALP) that may apply to the
new project have been or will be met.
g. Is changed to add a (1) The sponsor must make the request in writing and fully document the
project (with no amount and justification.
increase in funding
over the original
government.
grant amount)
(3) The sponsor must document that all work in the existing grant has been
completed or have progressed to the point that all costs in the existing
grant projects are known.
(4) The ADO must determine that the need for the additional project is closely
related to a project contained in the original grant.
(5) The ADO must not add the project to the grant for the purpose of using
excess funds remaining in the grant. The reason for this prohibition is
that it delays the timely closeout of the grant and in the case of
discretionary funding, bypasses the discretionary funding competition
process.
(6) If there is enough sponsor entitlement in the grant to cover the new
project, then the sponsor can begin the work on the new project before
the amendment is issued. Otherwise, the ADO must follow the
reimbursement rules in Paragraph 3-100, replacing grant execution date
with grant amendment execution date.
(7) FAA policy is that the ADO have requested, and received separate
regional approval from the 610 branch in advance of adding a new project
to the grant.
have been met.
(9) All other statutory and regulatory requirements (such as environmental
clearance, aeronautical study determination, ALP) that may apply to the
new project have been or will be met.
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description…
h. Is changed to delete (1) Deletion of a project from a grant can be requested by the sponsor in
a project (not land) writing or can be initiated by the ADO. The standard practice is for the
sponsor to submit a written request, and ADO initiation of an amendment
to delete a project is normally only done when the sponsor does not agree
with the amendment. Unless the deletion is initiated by the ADO based
on information the ADO has in house, the sponsor must fully document
the amount and reason for the deletion.
government to delete the project.
(3) The ADO must adjust the grant amount by the Federal share of the
deleted project.
(4) The amendment must not prejudice the interests of the United States.
This is a rare occurrence and APP-500 will notify the ADO if the situation
exists.
amendment so that the sponsor does not inadvertently draw down
funding for the deleted work.
i. Is changed to delete (1) Deletion of land acquisition from a grant can be requested by the sponsor
a land project from in writing or can be initiated by the ADO. The standard practice is for the
the grant sponsor to submit a written request, and ADO initiation of an amendment
to the land project is normally only done when the sponsor does not agree
with the amendment. Unless the deletion is initiated by the ADO based
on information the ADO has in house, the sponsor must fully document
the amount and reason for the deletion.
government to delete the land project.
(3) The ADO must adjust the grant amount by the Federal share of the
deleted land project.
(4) The amendment must not prejudice the interests of the United States.
This is a rare occurrence and APP-500 will notify the ADO if the situation
exists.
(5) Because AIP cannot pay twice for the same costs, if the sponsor has
received payment on any incurred land acquisition cost, the sponsor must
repay those costs or provide written confirmation to the ADO that the
costs for performing that work again will be locally funded.
amendment so that the sponsor does not inadvertently draw down
funding for the deleted work.
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description…
j. Is changed to modify (1) The sponsor must make the request in writing and fully document the
a project amount and justification for the modification.
(2) If a portion of a project is deleted, the ADO must determine a usable unit
will still be obtained.
(3) If the project scope is being increased, the ADO must determine that the
need for the additional work is closely related to the original project.
government.
regional approval from the 610 branch in advance of modifying a project
within the grant.
(6) Examples of a project modification are increasing a runway extension
from 400’ to 500’ or reducing scope of a fencing project.
amendment to modify the project prior to the start of the affected work.
have been met.
k. Is changed to (1) The sponsor has made the request in writing and has fully documented
substitute a project the amount and justification for the substitution.
(2) All of the criteria for adding and deleting a project have been met.
(3) If the cost of the substituted project is less than the deleted project, the
ADO decreases the Federal share of the grant accordingly.
(4) The ADO must determine that the funding rules for the projects do not
prohibit the substitution.
regional approval from the 610 branch in advance of substituting a project
within a grant. The regional office must provide a higher level of scrutiny
if the existing project is funded with discretionary and the new project is of
a lower priority.
amendment to substitute a project prior to the start of the affected work.
have been met.
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Table 5-27 Grant Amendment Limits for Increases
Type of Grant Primary Airport Rules Nonprimary Airport Rules
a. Land Acquisition Not more than 15% of the grant Up to the greater of:
amount.
(1) 15% of the grant amount for land
(Federal share is used here, not project
cost).
(2) 25% of the total increase in allowable
land costs (project cost is used here,
not Federal share).
This is currently the only instance where
the ADO has the option to amend the
original grant amount by more than 15%.
See Table 5-28 for example calculations.
b. Airport Development Not more than 15% of the grant Not more than 15% of the grant amount.
amount.
c. Planning May not be increased above May not be increased above the grant
the grant amount. amount.
d. Noise Compatibility Not more than 15% of the grant Not more than 15% of the grant amount.
Projects amount.
(implementation, not
planning)
e. Design Only Grants Not more than 15% of the grant Not more than 15% of the grant amount.
amount.
f. Mixed Project Types Not more than 15% of the grant Not more than 15% of the grant amount
amount after the planning after the planning portion of the grant is
portion of the grant is deducted. deducted. If the increase includes land,
also take into account the above rules for
land and see Table 5-28 for example
calculations.
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Table 5-27 Grant Amendment Limits for Increases
Type of Grant Primary Airport Rules Nonprimary Airport Rules
g. State Block Grants Not applicable. As of the publication date of this

Handbook, it is FAA policy that the ADO
must not amend a state block grant to
increase the grant amount.
If the ADO does not issue all of the
available funds to the state in the first grant
of the fiscal year, the ADO must issue the
remaining funds in one or more separate
grants.
If the state chooses to cover an eligible
project overrun with AIP funds, the state
must only do this with unused entitlements
(following all applicable transfer rules per
Paragraph 4-11), state apportionment, or
discretionary from their open state block
grants.
Per FAA policy, states are prohibited from
using unused discretionary for new
projects. This policy aligns the use of
discretionary between state block and non-
state block grants.
The only adjustment an ADO can make to
the grant amount is a deobligation to
remove any unused funds. Because the
State Block Grant Program provides states
with the flexibility to reobligate entitlement
and state apportionment on new or existing
projects, it will be rare for the ADO to
deobligate these types of funds. However,
for discretionary projects, if the state has
not used unused discretionary toward
existing projects, then the ADO must
deobligate the unused discretionary at
grant closeout.
If the ADO needs to reduce the funding in
the grant at closeout, a separate
amendment is not required (the decrease
is entered into the system when the
closeout is initiated).
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Table 5-28 Examples of Grant Amendments with Land Increases for a

Nonprimary Airport
Example 1
Nonprimary airport given a grant for development and land at 90% Federal share.
Item Original Project Cost Grant Amount Final Project Cost
Development $800,000 $720,000 $800,000
Land $200,000 $180,000 $260,000
Total $1,000,000.00 $900,000.00 $1,060,000.00
Development: No change in development cost. Therefore, grant amount portion remains at

$720,000.
Land: Total cost of land increases by $60,000. The grant amount may be increased by
25% of the difference between the final total project cost and the original total
project cost of the land (($260,000-$200,000) x 25% = $15,000), or by 15% of the
original Federal share of the grant pertaining to the land ($180,000 x 15% =
$27,000), whichever is greater. Consequently, the land portion of the original
grant amount of $180,000 can be increased by $27,000 to $207,000.
Final Grant Amount: $720,000 + $207,000 = $927,000
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Table 5-28 Examples of Grant Amendments with Land Increases for a

Nonprimary Airport
Example 2
Nonprimary airport given a grant for development and land at 90% Federal share.
Item Original Project Cost Grant Amount Final Project Cost
Development $800,000 $720,000 $950,000
Land $200,000 $180,000 $400,000
Total $1,000,000.00 $900,000.00 $1,350,000.00
Development: Development cost increases by $150,000. The development portion of the grant
amount can be increased by a maximum of 15%. Therefore, the maximum
increase is ($720,000 x 15% = $108,000). The amended grant amount for
development is $828,000.
Land: Total cost of land increases by $200,000. The grant amount may be increased
by 25% of the difference between the final total project cost and the original total
project cost of the land (($400,000-$200,000) x 25% = $50,000), or by 15% of the
original Federal share of the grant pertaining to the land ($180,000 x 15% =
$27,000), whichever is greater. Consequently, the land portion of the original
grant amount of $180,000 can be increased by $50,000 to $230,000.
Final Grant Amount: $828,000 + $230,000 = $1,058,000
Note: In this case, the amended total grant amount is increased by an amount which is more than 15% of
the original grant amount.
Table 5-29 Appropriate Amendment Formats
The following format is When all of the following criteria apply…

appropriate…
a. Formal Amendment (1) If one or more of the following conditions exist:

(FAA Form 5100-38)
(a) The amendment will change the grant assurances.
(See the AIP Forms (b) The amendment will change the grant conditions.
link in Appendix B.)
(c) A project within the grant is controversial.
(d) A project within the grant is in litigation.
(e) The amendment reduces the grant by equal to or more than
$25,000 or 5% of the current approved grant obligation, whichever
is greater, and the grant is not being closed out. (For a grant
reduction at closeout, a separate amendment is not required
because the decrease is entered into the system when the closeout
is initiated.)
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Table 5-29 Appropriate Amendment Formats
The following format is When all of the following criteria apply…

appropriate…
b. Final Payment (1) The ADO is basing the final grant amount upon the FAA final project
Notification and FAA report and completes the sponsor notification as outlined in Table 5-33.
Final Project Report
(2) The grant amount will be reduced, and the reduction is less than
$25,000 or 5% of the current approved grant obligation, whichever is
(See Table 5-33)
greater.
c. Multi-Year Amendment (1) The sole amendment purpose is to add multi-year funding as described
in the grant agreement.
(Letter from the ADO
to the sponsor)
d. Letter Amendment (1) None of the above formats are applicable.
(Letter from the ADO

to the sponsor)
5-56. Procedure for the ADO to Process an Amendment.
After all of the criteria in Paragraph 5-55 have been met, the ADO processes the amendment
using the steps in Table 5-30.
Table 5-30 Amendment Steps
The amendment steps are…
a. Reductions as part of a closeout. If the ADO is simply reducing the funding in the grant as part of
the closeout and is not required to complete a formal or letter amendment per Table 5-29, the ADO
must follow the steps in Table 5-33 instead of those in this table.
b. Amendment Programming. The ADO creates an amendment in the automated AIP system from an
open grant. If the grant is closed, the ADO must reopen the grant following regional policy and/or
approval. The amendment is then reviewed at the regional level. If the amendment is approved, it is
then ready to begin the congressional notification process, if required. If congressional notification is
not required, the amendment skips to the funds reservation step.
c. Congressional Notification (if applicable). If the grant amount is increased, the ADO may be
required to send the amendment through the congressional notification process. APP-520 provides
the criteria for sending an amendment through congressional notification process based on legislation
and DOT Office of the Secretary (OST) requirements.
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Table 5-30 Amendment Steps
The amendment steps are…
d. Funds Reservation (if applicable). If amendment is to increase funds, the ADO must reserve the
funds in the automated AIP system. The system generates an electronic FAA Form 1413-1, Request
for Change in Reservation/Obligation. This is reviewed in the system at the regional level and if
approved, the system forwards the request to the FAA Office of Finance and Management, FAA
Accounts Payable Section B (AMK-314) for AMK-314’s acceptance. Once AMK-314 accepts the
reservation in the system, the funds are officially reserved.
e. Recovery of Funds (if applicable). If the amendment is to decrease funds, the ADO must decrease
the funds in the automated AIP system. The system generates an electronic FAA Form 1413-1,
Request for Change in Reservation/Obligation. This is reviewed in the system at the regional level
and if approved, the system forwards the request to AMK-314 for AMK-314’s acceptance. Once
AMK-314 approves the decrease, the system forwards the request to the FAA Office of Budget and
Performance – Operations and Capital Execution Branch (ABP-410) for ABP-410 approval. Once
ABP-410 approves the decrease in the system, the funds are officially recovered.
f. Amendment Offer. The ADO issues the amendment offer to the sponsor using the format required
in Table 5-29.
g. Amendment Acceptance (if applicable). If a formal amendment is used, the sponsor and the
sponsor’s attorney must sign and return the executed amendment to the ADO. The sponsor’s
attorney must sign the amendment after the sponsor in order for the amendment to be properly
executed. The amendment cannot be altered by the sponsor without ADO concurrence and issuance
of another grant amendment. The sponsor must keep one executed amendment for its files.
h. AMK-314 Notification. If the funding amount has been changed, the ADO must send a scanned
copy of the signed amendment to AMK-314.
Section 8. Grant Closeouts.
5-57. Grant Closeout Steps and Requirements.
In order for the ADO to close a grant, the ADO and sponsor must have completed three basic
steps. These are:
a. Physically complete all projects in the grant (as discussed in Table 5-31).
b. Complete all grant administrative and financial requirements (as discussed in Table 5-32).
c. Complete the closeout processing steps (as discussed in Table 5-33).
2 CFR § 200.210 requires Federal agencies to identify a period of performance for Federal
grants. The FAA has established this period of performance as a maximum of four years from
the date of grant execution. 2 CFR § 200.331 also requires pass through entities such as block
grant states to identify a period of performance for subgrants.
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2 CFR § 200.343 requires that the sponsor submit all required closeout documentation to the
ADO within 90 days after the period of performance ends. However, per 2 CFR § 200.343(a),
APP-520 has the option to extend this time frame to beyond the 90 days.
Per 2 CFR § 200.343, the FAA has a maximum of one year from receipt and acceptance of the
closeout documentation to complete all closeout actions. This includes all closeout actions from
all FAA offices (including the FAA Office of Finance and Management, FAA Accounts Payable
Section B (AMK-314)). APP-520 has the option to further define ADO specific closeout time
frames within this one year period.
Table 5-31 Project Physical Completion Requirements
For the following type The project is not complete until the following requirements are met…
of project…
a. Planning (1) The sponsor has submitted the final planning deliverable to the ADO.
(2) The FAA has reviewed, accepted, or approved the planning document as
applicable..
b. Land Acquisition (1) The sponsor has obtained satisfactory property interest in all parcels
included in the grant description.
(2) The sponsor has submitted an updated Exhibit A to the ADO that properly
reflects the land acquisition.
c. Equipment (1) The sponsor has full ownership of the equipment (must be delivered,
Acquisition installed, and tested in accordance with plans and specifications).
(2) The FAA Air Traffic Organization (ATO) has completed all required
commissioning, inspection, initial flight check, and/or acceptance
requirements (if applicable to the project).
(3) The sponsor has submitted any FAA required equipment inventory
updates to the ADO.
d. Construction (1) The ATO has completed all required commissioning, inspection, initial
flight check, and/or acceptance requirements (if applicable to the project).
(2) The sponsor has completed the final inspection and verifies that all punch
list items have been addressed.
(3) A complete and useable facility is fully available for its intended use
(except in the case of phased projects).
(4) The sponsor has received the as-built plans. The ADO has the option to
require the sponsor to submit an electronic or paper copy of these plans to
the ADO.
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Table 5-32 Grant Administration Closeout Requirements
For the following The ADO must verify that the following requirements are met prior to the
item… ADO processing a grant closeout…
a. Standard Required (1) The sponsor has submitted all documentation required based on the
Sponsor sponsor’s risk level and the type of project including the following closeout
Documentation per specific documentation:
2 CFR § 200.343
(a) The final Standard Form 425, Federal Financial Report (see the AIP
Forms link in Appendix B), equivalent. This requirement for a final
Standard Form 425 is included in the instructions for this form.
(b) An advance paper copy of the final Standard Form 271, Outlay Report
and Request for Reimbursement for Construction Programs (see the
AIP Forms link in Appendix B), or equivalent, that summarizes the final
project costs. The ADO may allow the use of a Standard Form 270,
Request for Advance or Reimbursement (see the AIP Forms link in
Appendix B), for non-construction projects in lieu of Standard Form 271.
This advance copy provides the information that the ADO needs to
determine the final allowable project cost. Note that the sponsor will still
have to make a final payment request once the ADO completes their
determination.
(c) The final vendor invoices (unless the final vendor invoice is less than
$1,000). For state block grants, the ADO has the option to only require
a list of subgrants that shows the projects and final project amounts as
long as the state has obtained the final vendor invoices.
b. Additional Sponsor (1) The ADO has the option to require the sponsor to submit any other
Documentation documentation the ADO determines necessary to support the grant
Required by the closeout. This may include a formal closeout package or separate items
ADO such as a final construction report that summarizes major project issues, a
summary of project events, a project timeline, a summary of any
Department of Labor issues, and the final DBE participation rates.
c. Additional Sponsor (1) The FAA must have determined that the AWOS has been successfully
Documentation commissioned, and the sponsor must have provided the ADO with the FAA
Required by the initial inspection and successful commissioning documentation.
ADO for AWOS
(2) The sponsor must have provided the ADO with a copy of the Weather
projects
Message Switching Center reporting contract with the third party interface
provider if the sponsor has a connection to the Weather Message Switching
Center Replacement (WMSCR). (Note that AWOS-A, A/V, I and II are not
eligible for reporting, so this is not required.)
d. Grant Special (1) The sponsor has met all of the grant special conditions required to be
Conditions accomplished during the grant.
e. Updated Airport (1) The sponsor has updated the ALP to reflect that the project has been
Layout Plan completed (vs. proposed). Not all projects are shown on the ALP (such as
runway rehabilitation or equipment acquisition) and in those cases an ALP
update is not required. This does not normally require an additional
aeronautical study.
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Table 5-32 Grant Administration Closeout Requirements
For the following The ADO must verify that the following requirements are met prior to the
item… ADO processing a grant closeout…
f. Exhibit A (1) The sponsor has updated the Exhibit A to reflect that the property
acquisition has been completed.
g. Noise Land (1) The sponsor has updated the Noise Land Inventory and Reuse Plan to
Inventory and reflect that the property acquisition has been completed. Noise Land
Reuse Plan Management and Requirements for Disposal of Noise Land or Development
Land Funded with AIP (see Appendix B for link) contains guidance for these
plans.
h. Environmental (1) All project related environmental requirements found in the environmental
Requirements determination have been completed.
i. Program Income, (1) The sponsor has identified any program income, including interest earned
Including Interest and liquidated damages on Federal grant funds, in the Program Income
Earned section of Standard Form 425 Federal Financial Report (or equivalent) (see
the AIP Forms link in Appendix B).
(2) The sponsor must have deducted this income from the Federal share of the
grant.
j. Disputed Costs (1) The sponsor has identified any disputed costs in the Remarks section of
Standard Form 425, Federal Financial Report (or equivalent) (see the AIP
Forms link in Appendix B).
(2) If the sponsor and the contractor do not agree on the amount owed to the
contractor, and the dispute is likely to go to court, the sponsor has only
requested reimbursement for the amount that is not in dispute.
(3) Following review of the sponsor’s closeout documentation, the ADO may
choose to continue with the project closeout or leave the grant open until all
litigation is completed.
k. Overpayment (1) If Standard Form 425, Federal Financial Report (or equivalent), indicates
that payments have been made which exceed the Federal share of the
allowable costs, the sponsor must repay this amount (see the AIP Forms
link in Appendix B).
(2) The ADO must notify the DOT Office of Inspector General (OIG) if the ADO
has reason to believe the overpayment was a deliberate attempt to defraud
the FAA. The OIG hotline is available for this purpose (see Appendix B for
link).
(3) The ADO must notify the FAA Office of Finance and Management, FAA
Accounts Payable Section B (AMK-314) in writing of the overpayment.
(4) The sponsor must send a check for the overpayment amount as directed in
the Airport Improvement Program (AIP) Grant Payment and Sponsor
Financial Reporting Policy (see Appendix B for link) which is based on DOT
requirements. The overpayment processing must follow the DOT electronic
grant payment system policy through the Delphi eInvoicing system.
5-54
Table 5-33 Closeout Processing Steps
The closeout processing steps are…
a. FAA Final Project Report. Once all of the project physical completion requirements in Table 5-31
and the grant administration closeout requirements in Table 5-32 have been met, the ADO must
conduct a final project review that results in an FAA final project report. The report must contain
information deemed necessary for a subsequent examination or evaluation of the project. The
report will normally be prepared and signed by the ADO project manager. The report must then
also be reviewed and signed by the regional division manager (the regional division manager may
delegate the approval authority down, but the authority must remain at one level higher than the
project manager in the chain of command). This constitutes a routine element of program checks
and balances as required by 2 CFR §§ 200.343 and 200.303 (OMB Circular A-123, Management’s
Responsibility for Internal Control).
b. Final Payment Notification. Once the ADO completes the FAA final project report, the ADO must
provide a written notification to the sponsor. This notification must include:
(1) the maximum obligation amount calculated in the FAA final project report,
(2) the reason for any differences between the maximum obligation amount and the sponsor’s
requested amount, and
(3) the FAA final project report.
The ADO must place a copy of this notification in the grant file. Until the ADO completes the FAA
final project report and completes this sponsor notification, the ADO must follow the requirements
in Paragraph 5-46 for payment within the last 10% of the Federal share of the grant (or the last
10% of the estimated Federal share of the grant after amendment, whichever is less). The ADO
has the option of excluding a state block grant from this requirement only if the state is following
this requirement for all of the subgrants within the state block grant and the ADO is confident that
the state will submit the state block grant closeout documentation in a timely manner.
c. Amendments. If the ADO needs to change the work scope or increase the funding, the ADO must
follow the amendment requirements and process listed in Paragraphs 5-55 and 5-56. If the ADO
needs to reduce the funding in the grant, a separate amendment is not required (the decrease is
entered into the system when the closeout is initiated).
d. Final Payment Request Approval. Once the ADO notifies the sponsor of the final payment
amount and completes any necessary amendment actions, the sponsor must submit the final
payment request through the currently approved Department of Transportation grant payment
system.
e. Validation of Draw Downs. The ADO must not process a closeout in the automated AIP system
until the sponsor has drawn down the entire final grant amount calculated in the ADO’s final project
report. The ADO must validate this by reviewing the draw downs on the grant in the current
financial system being used by the FAA Office of Finance and Management, FAA Accounts
Payable Section B (AMK-314).
5-55
Table 5-33 Closeout Processing Steps
The closeout processing steps are…
f. Initiating Closeout. After the ADO has validated the drawdowns, the ADO must initiate a closeout
in the automated AIP system for the grant. The ADO can reduce the grant amount at this time to
reflect the final project cost. The closeout is then reviewed at the regional level. If it is approved,
the system will generate an electronic FAA Form 1413-1, Request for Change in
Reservation/Obligation (if the grant is decreased) and will send the decrease (if applicable) and
closeout request to AMK-314. The ADO has the option of printing this form and placing a copy in
the grant file, however, this is not mandatory because the form is retained in the automated AIP
system.
g. AMK-314 and the FAA Office of Budget and Performance – Operations and Capital
Execution Branch (ABP-410) Review and Acceptance. Once AMK-314 makes any necessary
funding adjustments in their financial system and approves the closeout; and all recoveries (if
applicable) are approved in the automated AIP system by ABP-410; the grant is officially closed in
the automated AIP system.
h. Grant Closeout Letter. After AMK-314 and ABP-410 review and acceptance is complete, the
ADO must notify the sponsor of the grant closeout in writing. This closeout letter must include the
grant closeout date and the final grant amount. The ADO must send a scanned copy of this letter
to AMK-314 and include a copy in the grant file.
i. Printing FAA Form 5100-107, Airport Improvement Program Form (also called AIP Grant
Status Report). At this point, the ADO has the option of printing the FAA Form 5100-107, Airport
Improvement Program Form (also called AIP Grant Status Report) generated by the automated
AIP system and placing the form in the grant file. However, this is not mandatory because a
current version of the form containing the grant history is retained in the automated AIP system.
5-58. Block Grant Closeout.
In order for the ADO to close a block grant, the ADO and block grant sponsor must have
completed three basic steps as shown in Table 5-34: The required state and ADO closeout time
frames are discussed in Paragraph 5-57.
Table 5-34 Block Grant Closeout Requirements
In order for the ADO to close a block grant, the ADO and block grant sponsor must have…
a. Physically, administratively, and financially closeout all of the projects that were issued under the
specific state block grant.
b. Followed the requirements in the block grant master agreement regarding which documents must be
submitted to the ADO and which documents must be retained by the sponsor.
c. Completed the financial closeout steps in Table 5-33 for the specific state block grant.
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Section 9. Grant Suspension and/or Termination.
5-59. Reasons for Possible Grant Suspension or Termination.
Table 5-35 includes examples of when the ADO would consider suspending or terminating a
grant. Note that for civil rights violations and non-compliance issues, there are additional
legislative requirements. The FAA Office of Civil Rights (ACR) and ACO-100 are responsible
for providing the ADO with direction on meeting these requirements.
In addition, if the suspension or termination of the grant will involve withholding an existing
grant payment request, the ADO must follow the requirements in Paragraph 5-48.
Table 5-35 Examples of Reasons for Grant Suspension or Termination
a. The circumstances that justify the project no longer exist.
b. The sponsor has not incurred any cost on the project and has requested that the grant be deferred.
c. The ADO has determined that progress on the project has stopped.
d. The ADO has determined that the project cannot be commissioned and accepted into the National
Airspace System.
e. The ADO has determined that the sponsor has not met the requirements of a grant special condition.
f. ACO-100 has notified the ADO that the sponsor is in non-compliance and has advised the ADO to
suspend or terminate the grant. The applicable compliance requirements are contained in
14 CFR part 16, Rules of Practice for Federally-Assisted Airport Enforcement Proceedings, and the
current version of FAA Order 5190.6, FAA Airport Compliance Manual.
g. The FAA Office of Civil Rights (ACR) has determined that the sponsor has violated a civil rights
requirement and has advised the ADO to suspend or terminate the grant. This is because ACR, not
the ADO, is the point of contact for civil rights enforcement procedures, while the ADO normally
handles any required grant suspension or termination procedures.
5-60. Suspension of a Grant.
The ADO may suspend the grant in whole or in part if the sponsor fails to comply with
conditions of the grant. The ADO does this through a written notice to the sponsor. Costs
incurred by the sponsor on the grant project after the sponsor has received the suspension notice
are not allowable, unless specifically authorized in writing by the ADO. The ADO may allow
costs which are otherwise allowable and could not be avoided during the period of suspension.
The notice of suspension must contain the following:
a. The reasons for the suspension and the corrective action necessary to lift the suspension.
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b. A date by which the corrective action must be taken.
c. Notification that the sponsor has a right to request that the Associate Administrator for
Airports (ARP-1) reconsider the suspension or termination.
d. Notification that the ADO will be giving consideration to terminating the grant if the
sponsor does not take the corrective action by the required date.
In addition, if the suspension of the grant will involve withholding an existing grant payment
request, the ADO must follow the requirements in Paragraph 5-48.
5-61. Termination for Cause.
The ADO may unilaterally terminate the grant for cause if the sponsor fails to comply with the
conditions of the grant. This is done by written notice to the sponsor. The ADO must use the
following procedures for termination:
a. First, the ADO must have already suspended the grant.
b. The ADO must only use factual and objective language in all correspondence which may
lead to termination for cause.
c. The ADO must send a written notification of the proposed termination to APP-1 and
ACO-100 at the earliest possible opportunity. The ADO must also forward a copy of the notice
of suspension and the ADO assessment of the sponsor’s action to remedy the situation to
APP-500 and ACO-100.
d. Upon receipt, ACO-100 will acknowledge the proposed termination to the ADO via
telephone or e-mail. Within 30 days of ACO-100’s acknowledgement, ACO-100 will notify the
ADO, in writing, of the procedures to be followed.
e. The ADO must notify the sponsor of the termination in writing. This notice must include
the reasons for the termination and must inform the sponsor of their right to request the Associate
Administrator (ARP-1) reconsider the suspension or termination.
f. The ADO must ensure that payments or recoveries of payments under the grant are in
accordance with the legal rights and liabilities of all parties involved.
g. ACO-100 may require the ADO to provide further coordination and action as a result of
the termination for cause in accordance with 14 CFR part 16, Rules of Practice for Federally-
Assisted Airport Enforcement Proceedings, and the current version of FAA Order 5190.6, FAA
Airport Compliance Manual.
h. The FAA Office of Civil Rights (ACR) may require the ADO to provide further
coordination and action as a result of the termination for cause in accordance with the applicable
civil rights requirements.
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In addition, if the termination of the grant will involve withholding an existing grant payment
request, the ADO must follow the requirements in Paragraph 5-48
5-62. Termination for Convenience.
The ADO has the option of terminating a grant for convenience if there is no beneficial reason to
continue the project. This can be initiated by either the ADO or the sponsor. Termination for
convenience requires:
a. A written agreement that details the termination conditions, including the effective date
and, in the case of partial terminations, the portion to be terminated.
b. The termination agreement must state that the sponsor may not incur new obligations for
the terminated portion of the grant after the effective date and must cancel as many obligations
relating to the termination as possible.
c. The ADO can reimburse the sponsor for allowable project costs that were incurred prior to
the effective cancellation date if, in the opinion of the ADO, incurring the costs was unavoidable
and could not be canceled.
In addition, if the termination of the grant will involve withholding an existing grant payment
request, the ADO must follow the requirements in Paragraph 5-48.
Section 10. Post-Grant Actions.
5-63. Sponsor Records Retention.
2 CFR §§ 200.333-200.337 requires that a sponsor retain all grant related documentation for
three years after the sponsor submits the final payment request. If a sponsor becomes involved
in litigation or other action involving the records, the sponsor must retain the records until the
issue is resolved or the end of the three year period, whichever is later.
Sponsors are also required to provide copies of this documentation upon request to the FAA, the
DOT Office of Inspector General (OIG), General Accountability Office and independent auditors
acting on behalf of those offices, and independent auditors under the Single Audit Act of 1984.
Table 5-36 contains examples of documentation that the sponsor must retain.
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Table 5-36 Examples of Documents that a Sponsor Must Retain
a. Invoices and inspection reports for third party contracts and suppliers.
b. Detailed employee pay records (including supporting labor distribution records) for force account
work.
c. Detailed labor distribution for project administration costs.
d. Records of land purchases (including relocation costs).
5-64. ADO Records Retention.
The ADO must retain grant records according to the requirements of the current version of FAA
Order 1350.14, Records Management.
5-65. Reopening Grants.
In extraordinary circumstances, a grant can be reopened by the ADO if the ADO finds that the
sponsor has either not been reimbursed for allowable costs or has been reimbursed for costs that
are not allowable. The ADO must notify APP-520 in writing before the ADO reopens any
closed grant explaining the reason that this action is necessary.
5-66. Audit Requirements.
2 CFR part 200, Subpart F (OMB Circular A-133, Audits of States, Local Governments and
Non-Profit Organizations), establishes audit requirements for states, local governments, and non-
profit organizations receiving Federal funding, which includes AIP. Table 5-37 contains the
guidance on when AIP audit are required by entity, including privately owned sponsors that do
not fall under 2 CFR § 200.501 (OMB Circular A-133, Audits of States, Local Governments and
Non-Profit Organizations ).
A grant can be audited at any time whether the grant is open or closed. Audit standards and
requirements are included in 2 CFR part 200 ) and in the Single Audit Act of 1984. Revenue use
compliance reviews are also required as part of the ACO-100 requirements and are discussed in
the current version of FAA Order 5190.6, FAA Airport Compliance Manual.
The ADO has the option of requesting that the DOT Office of Inspector General (OIG) conduct
additional audits where the ADO determines a need exists. Examples of reasons for the ADO to
request an additional audit include where there is evidence of financial discrepancies or evidence
of an unusual financial situation.
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Table 5-37 Requirements for AIP Audits by Entity
For the following The following audit requirements apply…

entity…
a. Publicly Owned If the sponsor expends Federal grants for more than $500,000 in a fiscal year in
Sponsor Federal funding, the sponsor must have a single or program-specific audit
conducted for that fiscal year. This $500,000 requirement applies to all Federal
funding, not just AIP.
b. Block Grant If the sponsor expends Federal grants for more than $500,000 in a fiscal year in
Subgrant Federal funding, the sponsor must have a single or program-specific audit
Recipient conducted for that fiscal year. This $500,000 requirement applies to all Federal
funding, not just AIP.
For block grant states, it is the opinion of the FAA that the airport receiving the
subgrant, not the state, is responsible for obtaining the single audit.
The airport that received the subgrant must report the grants on their Schedules of
Expenditures of Federal Awards (see 2 CFR § 200.331 (OMB Circular A-133,
Audits of States, Local Governments and Non-Profit Organizations)). The airport
must report the grant on their Schedules of Expenditures of Federal Awards as
subrecipients.
c. Block Grant For block grant states, it is the opinion of the FAA that block grant states are
State responsible for ensuring the airports under the block grant obtain single audits, if
required.
For block grant states, both the state must report the grants on their Schedules of
Expenditures of Federal Awards (see 2 CFR § 200.331 (OMB Circular A-133,
Audits of States, Local Governments and Non-Profit Organizations)). The states
must report the grants to airports as a pass through.
d. Privately 2 CFR part 200 Subpart F (OMB Circular A-133, Audits of States, Local
Owned Sponsor Governments and Non-Profit Organizations) does not apply to privately owned
sponsors.
However, the ADO must require the privately owned sponsor to have an audit of
the grant conducted for all but the most basic projects (such as acquisition of a
snow removal vehicle). The ADO must include a special condition in the grant to
require this. The automated AIP system contains the current available special
conditions.
This audit must be conducted at the completion of the project and must be done in
accordance with accepted standard audit practices. The sponsor must provide
copies to both the ADO and the OIG.
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5-67. Disposal of AIP Funded Equipment.
The criteria for a sponsor to dispose of equipment that is no longer needed, is being replaced, or
has exceeded its useful life (per Paragraph 3-12) are listed in Table 5-38. The criteria are
consistent with 2 CFR § 200.33. A sponsor can determine the fair market value by advertising
the equipment to determine the amount a willing purchaser would pay, or by hiring an accredited
appraiser. Advertising is different than soliciting specific companies. Advertising opens up the
arena to a large audience. Soliciting narrows that audience and therefore is not allowable.
Table 5-38 Criteria for Disposing or Replacing AIP Funded Equipment
If the equipment is… And, per The following applies…

2 CFR § 200.33, the
fair market value
is…
a. Retained by the airport Less than $5,000. No reimbursement to the FAA is required.
(for any use) or donated
or sold to any another
entity
b. Retained and used for $5,000 or more. No reimbursement to the FAA is required.
airport purposes
No AIP funds may be used to provide building
space for this equipment.
c. Retained and used for $5,000 or more. Reimbursement to the FAA is required (for an
non-airport purposes amount equal to the fair market value multiplied
by the current Federal share).
The reimbursement to the FAA is accomplished
by the ADO reducing the total project cost of the
next grant received by the sponsor by an amount
equal to the total fair market value of the
equipment.
No AIP funds may be used to provide building
space for this equipment.
d. Donated at no cost to $5,000 or more. The grant obligations for the equipment are
another sponsor and the transferred to the other sponsor.
equipment is both eligible
No reimbursement to the FAA is required.
and justified at the
receiving airport
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Table 5-38 Criteria for Disposing or Replacing AIP Funded Equipment
If the equipment is… And, per The following applies…

2 CFR § 200.33, the
fair market value
is…
e. Sold (at fair market value $5,000 or more. This is not the preferred scenario. Donation of
or less) to another the equipment is a much more effective way to
sponsor and the transfer the equipment.
equipment is both eligible
The grant obligations for the equipment are
and justified at the
transferred to the other sponsor.
receiving airport
Reimbursement to the FAA is required (for an
amount equal to the fair market value multiplied
by the current Federal share).
equipment.
The purchasing airport may request a grant for
the purchase price, provided the equipment
meets FAA specification and has an acceptable
useful life based on the purchase price.
f. Sold (at fair market value $5,000 or more. Reimbursement to the FAA is required (for an
or less) or donated to a amount equal to the fair market value multiplied
non-eligible entity by the current Federal share). This
reimbursement amount is required even if the
equipment was donated at no cost or sold for
less than fair market value.
equipment.
5-68. Disposal of Excess/Unneeded AIP Funded Land (and ADO/Sponsor Tracking).
49 USC § 47107(c)(2) requires a sponsor to promptly dispose of AIP funded land when the land
is no longer needed for airport purposes. In this specific case, airport purpose includes land is
needed for an existing or future aeronautical purpose (including runway protection zone) or that
serves as noise buffer land.
If the ADO determines that the land is no longer need for these purposes, the sponsor has the
choice of either selling or keeping the land for non-airport purposes. In either case, the sponsor
must use the Federal share of the fair market value on projects in the order of precedence listed
in Table 5-39 per 49 USC § 47107(c)(4). This is done outside of the grant process and requires a
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land release approval from the ADO (see the current version of FAA Order 5190, FAA Airport
Compliance Manual). The ADO must also review and approve or disapprove the sponsor’s
choice of how to apply the funding prior to the funds being used for sponsor’s requested purpose.
The ADO and regional office may contact APP-400 and ACO-100 for assistance on the ADO
and sponsor requirements for tracking and disposal of AIP, Federal Aid to Airports Program
(FAAP), or Airport Development Aid Program (ADAP) acquired land.
Table 5-39 Order of Precedence for Applying Sale Proceeds of AIP Funded Land
Order of precedence to apply the Federal share of the fair market value is…
(1) Reinvestment in an approved noise compatibility project.
(2) Reinvestment in an approved project that is eligible for funding under 49 USC § 47117(e). The only
projects in this section of the law are projects eligible for noise and environmental set aside funding.
A complete list of projects eligible for noise and environmental set aside funding is contained in
Paragraph 4-7.
(3) Reinvestment in all other approved airport development projects at the airport.
(4) Transfer to a sponsor of another public airport for a noise compatibility project at the other airport.
(5) Send the ADO a check as directed by the FAA Office of Finance and Management, FAA Accounts
Payable Section B (AMK-314) for deposit in the Airport and Airway Trust Fund.
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Chapter 6. What special AIP programs are available?
Section 1. Letters of Intent (LOI).
6-1. LOI Overview.
A Letter of Intent (LOI) is a formal document issued by the FAA that states an intention to
provide future funding using appropriate entitlements or apportionments, discretionary or funds
from the small airport fund. The LOI is limited to airport development projects, including
project formulation costs, at primary and reliever airports. It is further limited to projects that
enhance or preserve capacity. 49 USC § 47110(e) gives the FAA the authority to issue LOIs and
describes the requirements and prescribes the limitations on the use of the LOI.
The LOI establishes a schedule for future AIP funding, subject to annual appropriations and
availability of funds. A sponsor who has received an LOI may start the project without waiting
for individual AIP grants. Allowable project costs are eligible for reimbursement, subject to the
payment schedule set forth in the LOI.
The LOI process is rigorous and requires early coordination and a full understanding of the
submission and evaluation criteria by all parties involved. This section of the Handbook
discusses the regulatory requirements.
Historical LOI information is available on the FAA Office of Airports website (see Appendix B
for link). However, this information is not a reliable guide for future award amounts and
disbursement schedules.
6-2. LOI Funding Rules and Policy.
Table 6-1 contains the unique funding rules and policy that apply to LOIs.
Table 6-1 LOI Funding Rules and Policy
Unique LOI funding rules and policy include…
a. LOI Budget. Per 49 USC § 47110(e)(4), the FAA must reserve a reasonable amount of AIP funding
for grants not covered by LOIs. APP-510 meets this requirement by annually establishing an LOI
budget that it uses to establish future LOI payment schedules.
b. Scheduling LOI Payments beyond the Fiscal Year of the Current AIP Authorization. The
Department of Transportation and Related Agencies Appropriations Act, 1989 (Section 334 of
Public Law 100-457) allows the FAA to issue an LOI with payments scheduled beyond the statutory
expiration of the current AIP authorization.
6-1
Table 6-1 LOI Funding Rules and Policy
Unique LOI funding rules and policy include…
c. Use of Airport Entitlements. It is FAA policy for a sponsor to commit all of the airport entitlements
over the life of the LOI to the project unless APP-500 and the ADO agree otherwise. If during any
given year a sponsor’s entitlements vary from the amount approved in the LOI schedule for that year:
(1) Fiscal Year Entitlements Less than LOI Schedule. The ADO cannot increase the discretionary
funds to compensate for the shortfall. Instead, the sponsor is expected to make up the shortfall
with entitlements from a future year or other funding source.
(2) Fiscal Year Entitlements More than LOI Schedule. After consultation with the sponsor, the
ADO has the discretion to apply the funds to other higher priority projects during that fiscal year,
carry over the funds to the following fiscal year, or add them to that year’s annual payment
(reducing the entitlements that need to be applied to the LOI in future years).
d. Use of Discretionary. It is FAA policy that the total of discretionary funds in all LOIs subject to future
obligation is limited to approximately 50% of the forecast discretionary funds available for that
purpose. Depending on the size of airport, the discretionary funding may be drawn from the
Capacity/Safety/Security/Noise fund, the Small Airport Fund, or the Remaining Discretionary fund.
e. Use of Passenger Facility Charges. Per 49 USC § 47110(e)(5), the FAA is restricted from requiring
a sponsor to impose a passenger facility charge for the project in order to obtain a letter of intent.
f. Reimbursing with Discretionary. The ability to reimburse with discretionary funds under an LOI is
discussed in Paragraph 3-100.
g. Change to Nonprimary Airport Status. Per 49 USC § 47108(e)(1), if a primary airport changes to a
nonprimary airport when a development project approved under an LOI is underway, the project
remains eligible for discretionary funds.
h. Insufficient Project Progress. In cases where significant final design, land acquisition, permitting or
other requirements must still be completed, the FAA has an option to establish a disbursement
schedule that defers the first year’s disbursement until certain milestones have been achieved.
i. Interest Costs. Because interest from bonds or other forms of indebtedness is not an allowable cost,
interest costs may not be included in project costs and will not be covered as part of an approved
LOI.
6-2
6-3. LOI in the Context of an Airport’s Overall Capital Program.
The proposed action is the primary project or program in a sponsor’s LOI request. Typically, the
proposed action is not the only capital project for the airport. The FAA’s financial analysis will
focus principally on the projects for which the LOI is requested, but it is also beneficial to
consider major funding requests in the context of the airport’s broader financial environment.
Therefore, it is important to clearly define three overlapping sets of capital project data as shown
in Table 6-2 and Figure 6-1.
Table 6-2 Three Overlapping Sets of Capital Data in the LOI Review
The three overlapping sets of capital data are…
a. Overall Capital Program. The sponsor must provide a complete financial picture of the airport in its
LOI request. This includes both eligible and ineligible airport development needs. The FAA will
assess whether any of these needs may impact the sponsor’s ability to support the LOI, including
other higher priority projects that may require use of entitlement funds. However, the FAA’s
evaluation will focus primarily on the proposed action.
b. LOI Proposed Action. The proposed action includes all work necessary to achieve the overall LOI
objective whether or not the work is AIP eligible. It is important to include all of this work to capture
the benefits and/or costs that will be calculated in the Benefit Cost Analysis (BCA) as further
discussed in Paragraph 3-14. For example, if the proposed action involves a runway extension, then
the proposed action may include multiple related projects such as associated facility relocations. The
full cost of the proposed action must be reflected in the BCA and the associated funding plan.
c. LOI Projects. The LOI projects are the individual project elements that the ADO will place under
grant if the LOI is approved. These projects must have clearly established AIP eligibility, and must be
scheduled for implementation in advance of the requested LOI disbursement schedule.
6-3
Overall Capital
Program
LOI Proposed
Action
LOI Projects
Figure 6-1. Three Overlapping Sets of Capital Data in the LOI Review
6-4. LOI Project Criteria by Airport Type.
49 USC § 47110(e) gives the FAA the authority to issue the LOI’s for projects that enhance or
preserve capacity at primary and reliever airports. By FAA policy, LOI projects must meet the
criteria listed in Table 6-3. All of the other project funding requirements in Chapter 3 apply,
including the restriction on using AIP funds for interest payments.
A project under an LOI must also satisfy all statutory and administrative requirements for an AIP
project. Sponsors must proceed as though they had applied for and been awarded AIP funds and
must fulfill all environmental, civil rights, bidding, procurement, and contracting requirements
associated with an AIP grant, even though portions of the work may proceed in advance of
receiving AIP funds.
6-4
Table 6-3 LOI Project Criteria by Airport Type
For the The following criteria apply…

following type
airport…
a. Large and Capacity Enhancing Projects:

Medium Hub
(1) Airfield Capacity Enhancement. The proposed project must enhance airfield
capacity by increasing aircraft movements, increasing aircraft seating or cargo
capacity (including a different aircraft design group), or reducing airfield delays.
(2) Supporting Infrastructure. LOI projects must only include other AIP-eligible
infrastructure that is logically necessary to complete the LOI project. In many
cases this will be something that is physically required, such as acquiring land to
complete a runway extension. However, in some cases, project components
may not be physically required but logically necessary. For example, when
extending a runway, it may also be necessary that the parallel taxiway be
extended to ensure the full operational benefits of the runway extension are
successfully realized. While the taxiway extension is not physically required, it is
logically necessary because it links to the operational efficiency of the LOI
project.
(3) Non-Supporting Infrastructure. The LOI project must not include project
components that, while completed concurrently because of convenience, are not
logically necessary for the completion of the LOI project or for realizing the
benefits of the LOI project.
(4) Aprons. To qualify for LOI consideration, new apron areas must increase
airfield capacity. However, aprons compete less favorably for LOIs than runway
or taxiway projects. In addition, apron projects caused by terminal
reconfiguration or relocations do not typically add capacity and are rarely eligible
under an LOI.
(5) System Capacity. Per 49 USC § 47110(e)(2)(C), APP-510 must determine that
the project will significantly enhance system-wide airport capacity.
(6) Ineligible Rehabilitation or Reconstruction Projects. Rehabilitation or
reconstruction projects undertaken solely to extend the life of existing pavement
does not satisfy the system capacity statutory requirement.
(7) Eligible Reconstruction Projects. Reconstruction of an existing runway or
taxiway must strengthen or relocate/shift the pavement and result in a capacity
enhancement by:
(a) Increasing aircraft movements, increased aircraft seating or cargo capacity
(including accommodating a different aircraft design group), or reduced
airfield delays.
(b) Creating an added arrival stream or reducing dependency between arrival
streams.
(c) Eliminating intersecting runways.
(d) Improving departure, approach, or missed approach procedures.
6-5
Table 6-3 LOI Project Criteria by Airport Type

following type
airport…
b. Small Hub, Airfield Capacity Enhancing Projects:

Non Hub,
(1) Airfield Capacity Enhancement. The proposed project must enhance airfield
Reliever
capacity by increasing aircraft movements, increasing aircraft seating or cargo
capacity (including a different aircraft design group), or reducing airfield delays.
(2) Supporting Infrastructure. LOI projects must only include other AIP-eligible
infrastructure that is logically necessary to complete the LOI project. In many
cases this will be something that is physically required, such as acquiring land to
complete a runway extension. However, in some cases, project components
may not be physically required but logically necessary. For example, when
extending a runway, it may also be necessary that the parallel taxiway be
extended to ensure the full operational benefits of the runway extension are
successfully realized. While the taxiway extension is not physically required, it is
logically necessary because it links to the operational efficiency of the LOI
project.
(3) Non-Supporting Infrastructure. The LOI project must not include project
components that, while completed concurrently because of convenience, are not
logically necessary for the completion of the LOI project or for realizing the
benefits of the LOI project.
(4) Aprons. To qualify for LOI consideration, new apron areas must increase
airfield capacity. However, aprons compete less favorably for LOIs than runway
or taxiway projects. In addition, apron projects caused by terminal
reconfiguration or relocations do not typically add capacity and are rarely eligible
under an LOI.
Airfield Capacity Preservation Projects
(1) Eligible Rehabilitation or Reconstruction Projects. Rehabilitation or
reconstruction projects must either enhance or preserve capacity. However,
rehabilitation and reconstruction projects to preserve capacity have historically
competed less favorably for LOIs than those that will enhance capacity.
c. New or (1) Additional Capacity Considerations. In addition to the above criteria, new
Replacement and replacement airports must provide a net capacity gain that would fulfill an
Airports unmet civil aeronautical need, with due consideration of the proposed facility’s
functional and operational position relative to other existing or proposed airport
facilities.
6-6
6-5. LOI Approval/Disapproval Process.
The FAA’s process for evaluating LOI requests is principally a financial planning process rather
than grant administration. Formal grant applications will still be required for each year once an
LOI is awarded, based on the LOI payment schedule and subject to the availability of funds. The
current process, as of the publication date of this Handbook, is contained in Table 6-4. APP-510
also maintains a timeline diagram for the LOI process that is available upon request.
Table 6-4 LOI Approval/Disapproval Process
The steps in the LOI process include…
a. Early FAA/Sponsor Coordination. Any sponsor interested in pursuing an LOI must contact their
ADO as early as possible, generally at least five to six months before the LOI request deadline of
March 1. The ADO must then brief the sponsor on all aspects of LOIs, including the LOI request
process, evaluation criteria and submission requirements. The ADO is the primary contact for the
sponsor regarding an LOI.
b. Joint Meeting. The ADO has the option to hold a joint meeting so that the ADO, the regional
office, APP-510, the sponsor, and the sponsor’s consultant understand the purpose and scope of
the project, FAA authority and policy, and sponsor financial needs, schedules, and responsibilities.
This joint meeting will normally include a discussion of the evaluation criteria including the
relationship between the FAA’s Terminal Area Forecast (TAF) and the sponsor’s forecast
assumptions and level of effort to be used in their financial planning and Benefit-Cost Analysis.
c. Benefit-Cost Analysis. The FAA recommends that sponsors submit the Benefit-Cost Analysis
(BCA) for the proposed action to the ADO as far in advance of the LOI request as possible, but no
later than March 1. This is because the review of the BCA may take more than six months and
could delay the LOI decision. The BCA process for capacity projects is contained in Paragraph 3-
14.
d. ADO Notification to APP-510. Per FAA policy, APP-510 requests a list of LOI candidates from
the regional offices early in the fiscal year. Regional offices must coordinate with the ADOs and
provide the list to APP-510 in the time frame requested by APP-510. In addition, the ADO must
notify the regional office, and the regional office must notify APP-510 promptly when a sponsor that
is not on this list expresses interest in obtaining an LOI. Preliminary information provided to
APP-510 must include a general description of the project, the estimated cost, the proposed
schedules for construction and reimbursement, and an indication of whether the project is a good
candidate for an LOI.
e. Sponsor Submits LOI Request. It is FAA policy for sponsors to submit LOI requests to the ADO
on or before March 1. The LOI review committee will normally review and either approve or
disapprove the request by end of the same fiscal year. If a sponsor submits an LOI request after
March 1, the LOI review committee will normally not review the request until the following fiscal
year. The LOI review committee also has the option to review incomplete or partial requests on a
case by case basis.
f. ADO Review. The ADO and regional office will prepare an overview, assessment and preliminary
recommendation for Headquarters consideration, within 30 days of receiving an LOI request unless
an extension is requested of and approved by APP-510 in advance. The ADO and regional office
must contact APP-510 to request the preferred format for this recommendation.
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Table 6-4 LOI Approval/Disapproval Process
The steps in the LOI process include…
g. Committee Review. The FAA will establish a national-level committee each year to review LOI
requests to ensure that all statutory requirements have been met, and to advise the FAA Associate
Administrator for Airports (ARP-1) and the FAA Director of the Office of Airport Planning and
Programming (APP-1) on the selection of LOI proposals. The committee will be composed of
representatives of the FAA Office of Airports (ARP). The committee is chaired by APP-510 and
may include ARP representatives from APP-510, APP-520, and an ARP regional division manager
(or designee) with no LOI candidate in the current year. The committee may also include
representation by the FAA Office of Aviation Policy and Plans (APO), the FAA Air Traffic
Organization (ATO) and/or other FAA offices, as determined by the committee chair. The
committee may recommend that APP-510 request additional information from the sponsor, and/or
additional assessment from the ADO or regional office.
h. LOI Selection. After receiving the recommendations from the LOI Committee, ARP-1 makes the
official selections.
i. LOI Programming. After ARP-1 selects the sponsors that will receive LOIs, APP-500 coordinates
the LOI sign-off package within Headquarters including the FAA Office of Government and Industry
Affairs (AGI). The LOI package contains a draft of the LOI documents, a memorandum from
APP-500 to the regional division manager containing documentation of the FAA’s review and
proposed LOI approval, and the unsigned congressional notification letters.
j. DOT Office of the Secretary (OST) Coordination. APP-500 forwards the LOI sign-off package
electronically to OST including the unsigned congressional notification letter.
k. Congressional Notification. For new or amended LOIs that exceed $10,000,000, OST must
send the signed congressional notification letter to the Committees on Appropriations of the Senate
and the House of Representatives; the Committee on Commerce, Science, and Transportation of
the Senate; and the Committee on Public Works and Transportation of the House of
Representatives of the proposed LOI. This requirement is contained in a note in the Department of
Transportation and Related Agencies Appropriations Act, 1993 (Public Law 102-388, title III § 320).
The FAA interpretation of this requirement is that OST must notify these parties of the new or
amended LOI and may proceed if no legislation is passed to prohibit the LOI within 30 days after
notification. OST electronically notifies the FAA when this process is complete.
l. LOI Decision Memorandum. When the congressional notification process is complete, APP-510
will officially prepare a memorandum that establishes the LOI funding level and provides
supporting information for the decision.
m. LOI Offer. The ADO will issue the LOI to the sponsor when APP-510 has provided the ADO with
the LOI Decision Memorandum. The same official who normally signs a grant offer for the FAA will
be the official who signs the LOI offer.
n. ADO Issues Initial LOI Grant. APP-520 normally schedules the initial LOI grant for the fiscal year
following the year in which the application was received unless the approval of the LOI is delayed
beyond the end of the fiscal year. However, as allowed by 49 USC § 47110(e)(6), APP-500 has
the option to schedule the initial LOI grant during the same fiscal year that the LOI is approved.
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6-6. Sponsor LOI Submission Requirements.
Per FAA policy, sponsors must submit one hard copy and one electronic copy of the
documentation listed in Table 6-5to the ADO.
Table 6-5 Sponsor LOI Submission Requirements
The sponsor must provide…
a. Executive Summary. This summary must include an overview of the existing airport’s facilities and
operating environment, along with an overview of the proposed capital project or program to be
supported by the requested LOI.
b. Description of the Existing Problem. This description must focus on the capacity constraints of the
existing facilities relative to existing or projected demand.
c. Description of System-Wide Airport Capacity Enhancement (required for Large and Medium
hub airports). This description must include how the proposed action will meet the requirement for a
significant system-wide capacity enhancement. Sponsors must not construe this to refer solely to
throughput capacity for major airline hubs. Sponsors may rely upon any one or more of several
factors that the FAA may then consider in making this determination. Examples include, but are not
limited to, physical airport improvements that result in or support one or more of the following.
Reduction of required minimums will not generally be considered sufficient evidence, on its own, to
represent a significant system-wide airport capacity enhancement.
(1) Capacity increase in annual operations, either in Visual Flight Rules (VFR) or Instrument Flight
Rules (IFR) conditions or both.
(2) Increase in airport service volume by the addition of a new runway, elimination of runway
intersections or other airfield operational constraints. For large hub airports, sponsors will need to
demonstrate that the capacity benefits are real, measurable and significant.
(3) Increase in hourly call rates (i.e., local tower acceptance rates in terms of hourly arrivals and
departures).
(4) Delay reduction relative to existing or forecast levels, either at the individual airport or among
multiple airports serving the same geographic area.
(5) Projected delay savings as a percentage of existing delays at the airport, or as a percentage of all
national delays.
(6) Delay reduction that can be shown to enhance airline schedule reliability, even if the project does
not lead to substantial increases in operations.
(7) Creation of an additional arrival stream or reduced dependency between arrival streams.
(8) Regional distribution of demand from one or more capacity-constrained or significantly delayed
airports.
(9) Elimination of a demonstrable capacity constraint for an airport serving a region or metropolitan
area where population or economic growth has exceeded growth in available departing seats or
cargo capacity.
(10)Increase in the maximum stage-length that can be served from the airport.
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d. Description of the Sponsor’s Forecast. This description must include both summary and detailed
information on enplanements and operations. If applicable, the description must also include details
of the fleet mix, the peak hour airfield mix by class, and the airline load factors. The sponsor must
provide a clear discussion of how the forecasts were derived and their key assumptions.
e. Description of the Proposed Action. This description must focus on how the proposed action will
provide additional capacity. For large and medium hub airports, this description must also explain
how the proposed action will enhance system-wide airport capacity.
f. Description of the Capital Cost Estimates. This description must delineate the level of planning or
design data on which the estimates are based, the source of quantities and unit costs, and the levels
of contingency assigned. The ADO has the option to request that the sponsor secure the services of
an independent consultant to conduct a formal cost estimate review, including unbiased quantity
calculations, estimates of unit costs and determination of appropriate contingency levels based on the
level of design information available.
g. Status of and Schedule for the ALP Approval. If the sponsor has not submitted an ALP depicting
the proposed action by March 1, the sponsor must provide a schedule to the ADO that clearly
demonstrate that the FAA will be able to approve the ALP by September 30. This schedule must
include sufficient time for full aeronautical study and determination and all required coordination.
h. Status of Environmental Decision and Required Federal/State Permits. Both approval of the
proposed action on the airport layout plan and issuance of the LOI are considered Federal actions
subject to the requirements of the National Environmental Policy Act (NEPA). If the FAA has not
completed the environmental decision or the sponsor has not obtained the required federal/state
permits, the sponsor must provide a status/schedule of when this will be accomplished. The
schedule must demonstrate the FAA has sufficient time to issue an environmental decision by
August 1. If the schedule suggests a date later than August 1, the sponsor must consider deferring
the LOI request to the following year.
i. LOI Application Financial Template and Supporting Documentation. The sponsor must include
the requested LOI amounts (payment schedule) and all other proposed sources and amounts for the
proposed action in the FAA Form 5100-139, LOI Application Financial Template (see the AIP Forms
link in Appendix B). If additional approvals or other actions are required for any funding type (such as
for Passenger Facility Charges or General Airport Revenue Bonds) the sponsor must include the
status. Using the LOI Application Financial Template, the sponsor must clearly outline all sources
and amounts of financing for the proposed project as well as for all other anticipated capital projects
during the life of the LOI request. The Finance Template also provides an opportunity for sponsors to
discuss alternative LOI disbursement schedules and how those alternatives might impact the overall
financial plan.
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j. Description of the Financial Plan for Other Capital Needs. The sponsor must discuss other
significant capital costs identified in the LOI Application Financial Template beyond the proposed
action to enable the FAA to identify whether the funding plan for the proposed action is viable. The
FAA does not normally review the impact on rates and charges, landing fees, cost per enplanement,
or the ability to attract or retain airline service, which is driven by many factors including underlying
market strength, the competitive environment, revenue potential, and other operating expenses
beyond airport rates and charges The FAA will also not generally consider current or projected Cost
Per Enplanement (CPE) or landing fee projections as a means of comparing one airport to another.
CPE is highly dependent upon a number of factors, including the ownership and operation of
passenger terminals, the nature of each airport’s use and lease agreement, and the structure of each
airport’s rates and charges. However, the FAA may consider analyses and conclusions prepared by
other industry experts or stakeholders, including municipal bond rating agencies, bond insurers,
institutional investors and the airlines themselves, particularly in cases where the airlines have
already approved the issuance of bonds in support of the proposed action. Therefore, it can be
beneficial for sponsors to provide such analyses or documentation as part of the LOI request.
k. Benefit-Cost Analysis (BCA). If not submitted previously, the sponsor must include a BCA that was
prepared in accordance with the FAA Airport Benefit-Cost Analysis Guidance (see Appendix B for
link). This information must include all data necessary to explain the assumptions regarding existing
and proposed facilities and operational parameters.
(1) Detailed Simulation Modeling. For a project over $50 million dollars, it may also be beneficial
for the sponsor to conduct detailed simulation modeling. The FAA has the option to require this if
they feel the complexity of the project warrants it.
(2) Financial Data for Required Proposed Action Components. Sponsors must recognize that
the total project cost used in the BCA may be more than that of the proposed LOI project. This is
necessary if the additional project components are required to realize the benefits of the
proposed action. For example, for an LOI for a new runway, the BCA may need to include
taxiway and other airfield improvements to realize the benefits of the new runway.
(3) Sensitivity Analysis. For the purposes of the LOI financial analysis, sponsors are also
encouraged to consider evaluating the effects of more conservative growth assumptions, to
minimize the potential for overestimating future airport activity levels and capacity benefits, as
well as other funding sources including PFCs and entitlements. This may be accomplished by
the sponsor through sensitivity analyses designed to quantify the overall effect of slower growth
rates or alternative assumptions regarding demand.
l. Additional Information for New and Replacement Airports. The FAA may require additional
information about any aspect of the proposed development, including phasing of the new or
replacement airport, the facility’s functional and operational position relative to other existing or
proposed airport facilities, population and demographic patterns, air service (including passenger and
cargo) and underlying economic activity.
m. Additional Information for High Federal Participation. Sponsors seeking the highest levels of
Federal participation may be required to provide additional documentation of forecast demand levels,
sensitivity analyses, and/or more heavily backend loaded disbursement schedules.
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6-7. LOI Evaluation Criteria.
49 USC § 47115(d)(1) contains the six criteria that the FAA must use when selecting system-
wide capacity enhancement projects for discretionary funding. The FAA interprets
49 USC § 47110(e) to require the FAA to use these criteria, which are listed in Table 6-6, for
LOI evaluation.
The FAA will also consider the sponsor’s requested rate of Federal participation relative to
comparable projects, airport revenue diversion or other compliance issues, and grandfathered
payments to other governmental offices.
The ADO and regional office must contact APP-510 to request the preferred format for the ADO
and region office evaluation and recommendation to ensure a consistent review process
throughout the FAA Office of Airports.
Table 6-6 Evaluation Criteria for LOI Requests
The criteria, which are used by the FAA to evaluate LOI requests, are….
a. The effect that the project will have on overall national transportation system capacity.
b. The benefit and cost of the project, including, in the case of a project at a reliever airport, the number
of operations projected to be diverted from a primary airport to the reliever airport as a result of the
project, as well as the cost savings projected to be realized by users of the local airport system.
c. The financial commitment from non-United States Government sources to preserve or improve airport
capacity.
d. The airport improvement priorities of the States to the extent such priorities are not in conflict with
items a and b in this table.
e. The projected growth in the number of passengers or aircraft that will be using the airport at which the
project will be carried out.
f. The ability of the project to foster United States competitiveness in securing global air cargo activity at
a United States airport.
6-8. LOI Offer Package.
An LOI Offer Package is normally comprised of two documents, the cover letter and the LOI
Offer. Both documents are developed by APP-510 and signed by the ADO. Per FAA policy
required contents of this LOI Offer are included in Table 6-7.
In addition, the ADO has the option to include any additional guidance or information that the
ADO deems necessary. For example, the ADO may wish to include a spreadsheet with a
detailed cost breakdown that shows the project component costs that are included in the proposed
action and/or a project sketch that clearly shows the approved project components.
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Table 6-7 LOI Offer Contents
APP-510 must include the following information in the LOI Offer…
a. LOI Number. Currently this is based on the regional office’s three letter code, the fiscal year of
issuance, and a sequential number (for example: AGL-88-02 is the second LOI issued by AGL in FY
1988). APP-510 is in the process of converting this to the following format, which must be used by
the ADO once officially adopted:
3-AA-BBBB-LCC-YYYY
Where:
3 = The program code for AIP.
AA-BBBB = The NPIAS code for the airport.
L = A single letter designator indicating this is an LOI.
CC = The sequential number of LOIs issued for that airport.
YYYY = The fiscal year in which the LOI is executed.
b. Airport Name.
c. Project Description. A brief, but complete, project description.
d. Maximum Federal Funding. The maximum amount of Federal funds which will be made available
for the project.
e. Funding Schedule. A schedule of reimbursements by fiscal year and type of funds (apportionment
and/or discretionary).
f. Sponsor Compliance Statement. A statement that the sponsor must be in compliance with all
statutory and administrative requirements.
g. Intent to Obligate Statement. A statement that the LOI is not considered an obligation of the United
States, must not be deemed an administrative commitment for funding, but only an intention to
obligate from future budget authority as such funds become available.
h. Amendment Statement. A statement that the LOI, with sufficient justification, may be amended to
adjust the maximum Federal obligation, the payment schedule, or both.
i. Requirements before Proceeding Statement. A statement that if a sponsor proceeds without

satisfying all of the statutory and administrative requirements associated with an actual grant, the
commitment to reimburse the sponsor under the LOI may be voided.
j. Failure to Comply with Federal Requirements Statement. A statement that a sponsor’s failure to
comply with all Federal requirements could lead to a requirement to repay paid amounts and
jeopardize later reimbursements.
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6-9. LOI Grant Administration.
Once an LOI is approved, the ADO is responsible for issuing and administering the associated
grants according to the approved LOI payment schedule. This includes ensuring that all of the
sponsor (Chapter 2), project (Chapter 3), funding (Chapter 4), and grant (Chapter 5)
requirements have been met.
The ADO has the flexibility to determine which phases of the LOI project will be included in
each grant as long as the ADO is able to accurately track what is being funded.
The sponsor is required to maintain a current record of the physical and financial status of the
project. The ADO has the option to request this information in the format and frequency the
ADO determines is necessary.
6-10. LOI Amendments.
There must be ongoing ADO involvement as each project phase is completed, as subsequent
phases come to bid, and as successive grants are issued under the LOI. In extremely limited
circumstances, the FAA may amend an LOI in future years to adjust the total maximum Federal
obligation, the schedule of payments, or both. Circumstances that warrant an amendment
include, but are not limited to, a change in project cost related to unforeseen Federal or state
regulatory requirements, changes in project timing or scope, or changes in future obligating
authority. APP-510 approval is required prior to an ADO amending an LOI.
The sponsor has a responsibility to estimate and manage costs as accurately as possible. In cases
where the sponsor faces unexpected increases in costs driven solely by economic conditions,
sponsors must not view a possible LOI amendment as the first solution to be considered,
particularly since the FAA’s overall participation rate will generally represent a small percentage
of overall funding.
The sponsor must either consider cost reduction or deferral measures, and/or pursue the full
range of funding sources available. The FAA has the option to issue an amendment, but such
amendments will be the exception rather than the rule and may result in the FAA extending the
LOI payment schedule beyond the term of the original schedule and/or revising the level of
Federal participation.
In cases where an amendment would exceed $10 million or 20% of the original LOI
discretionary funding amount, APP-510 has the option to require the sponsor to submit updated
information. If such an amendment is approved, APP-510 must initiate an DOT Office of the
Secretary (OST) and congressional notification process as if a new LOI were being awarded.
An LOI is amended by the FAA issuing an LOI amendment letter. The LOI amendment is not
subject to grant amendment rules.
The LOI amendment may or may not affect the individual grants previously issued under the
LOI. If an individual grants is affected, the amendment rules in Section 7 of Chapter 5 will
apply.
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6-11. LOI Closeout.
Once all of the associated LOI grants are closed, the ADO must officially close the LOI in the
automated AIP system.
6-12. Revising, Suspending, or Terminating an LOI.
If a sponsor proceeds without satisfying all of the statutory and administrative requirements
associated with an actual grant, the FAA has the option to suspend or terminate the LOI. In the
rare instance a sponsor proposes a substantial revision to the approved project, the ADO must
contact APP-500 to determine the appropriate course of action. Sponsors must fully understand
that failure to comply with all Federal requirements could lead to a requirement to repay paid
amounts and jeopardize later reimbursements.
Section 2. State Block Grant.
6-13. General.
The State Block Grant Program allows states to assume the administrative responsibilities that
are traditionally performed by the ADO for nonprimary airports. These functions are specifically
defined by a state block grant agreement that is executed between the state and the FAA once the
state is chosen for participation in the program.
6-14. Limited State Flexibility.
The State Block Grant Program provides participating states with some flexibility in the
administration of the state apportionment and sponsor entitlement for the airports in their
program. The limitations on this flexibility are outlined in the Memorandum of Agreement that
is signed by both the state and the FAA. Unless specifically waived in the Memorandum of
Agreement, the state must ensure that all applicable statutory and regulatory requirements
discussed in this Handbook are met.
6-15. Responsibilities Retained by the FAA.
The FAA has determined that there are key functions that must be retained by the FAA. The
ADO cannot delegate these functions to the state. The current version of Advisory Circular
150/5100-21, State Block Grant Program, contains a list of the specific functions that must be
retained by the FAA.
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6-16. Legislative History and List of Participants.
49 USC § 47128 authorizes the FAA to allow no more than ten states to administer block grants
for the nonprimary airports in the state. Table 6-8 contains the history of the State Block Grant
Program and Table 6-9 contains a list of the approved State Block Grant participants.
Table 6-8 History of the State Block Grant Program
Date Major Milestones
December 30, 1987 The Airport and Airway Safety and Capacity Expansion Act of 1987 was
passed. Section 116 of this Act amended the Airport and Airway
Improvement Act of 1982, by adding new section 534 entitled State Block
Grant Pilot Program.
October 20, 1988 14 CFR part 156, State Block Grant Pilot Program, was published in
53 Federal Register 41303 (October 20, 1988).
October 1, 1989 This State Block Grant Pilot Program became effective and allowed three
states to apply for the program.
October 31, 1992 The Airport and Airway Safety, Capacity, Noise Improvement, and
Intermodal Transportation Act of 1992 extended the State Block Grant
Program until 1996. This Act also authorized the issuance of block grants
for fiscal years 1993 through 1996 in four additional states (for a total of
seven).
October 9, 1996 The Federal Aviation Reauthorization Act of 1996 authorized one new state
block grant participant (for a total of eight) and made the State Block Grant
Program a permanent feature of AIP.
st
April 4, 2000 The Wendell H. Ford Aviation Investment and Reform Act for the 21
Century (AIR-21) authorized one new state block grant participant in fiscal
years 2000 and 2001 (for a total of nine) and an additional state block grant
participant after fiscal year 2001 (for a total of ten).
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Table 6-9 State Block Grant Participants
State Fiscal Year Selected Fiscal Year Exited Program
(1) Illinois 1989 N/A
(2) Missouri 1989 N/A
(3) North Carolina 1989 N/A
(4) Michigan 1993 N/A
(5) New Jersey (no longer in program) 1993 2003
(6) Texas 1993 N/A
(7) Wisconsin 1993 N/A
(8) Tennessee 1997 N/A
(9) Pennsylvania 1997 N/A
(10)New Hampshire 2008 N/A
(11)Georgia 2008 N/A
6-17. State Block Grant Program Application.
The FAA will accept applications for the State Block Grant Program at any time – there is no set
application schedule. To do this, the state simply sends a letter of request with the information
listed in Table 6-10to the ADO.
States are encouraged to check with the FAA prior to submitting an application to determine if
there are any available slots in the program. If a state is accepted into the program, the state can
remain in the program until the state decides it wants to withdraw from the program or the FAA
suspends or terminates its participation.
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Table 6-10 State Block Grant Application Information
The state must describe…
a. The state’s organization and capabilities to effectively administer a block grant program.
b. The state’s airport system planning process.
c. The state’s programming process.
d. The state’s willingness and ability to comply with the State Block Grant Agreement.
e. The state’s willingness and ability to comply with the National Environmental Policy Act of 1969, state
and local environmental policy acts, Executive orders, agency regulations, and other Federal
environmental requirements.
f. The state’s willingness and ability to provide all program information that is requested by the FAA.
g. The state’s process for determining which projects will be funded, including:
(1) The state’s process for ensuring that critical safety, and security, and other national aviation
priority needs will be met.
(2) The state’s system for determining a project’s priority and how this process is consistent with the
FAA’s national priority system.
6-18. FAA Selection of State Block Grant Participants.
49 USC § 47128 (b) and (c) describe the criteria that the FAA must use to select a state for the
State Block Grant Program. These criteria are listed in Table 6-11. The ADO must review the
state’s request against the criteria in this table and make a recommendation to the regional office.
The regional office must then make a recommendation to APP-520, who is responsible for the
final determination. The ADO is responsible for notifying the sponsor of the FAA’s official
determination.
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Table 6-11 State Block Grant Selection Criteria
In order for the FAA to select a state for the State Block Grant Program, the FAA must determine
that…
a. The state has an organization capable of effectively administering a block grant program.
b. The state uses a satisfactory airport system planning process.
c. The state uses a programming process that is acceptable to the FAA.
d. The state is both willing and able to comply with the State Block Grant Agreement.
e. The state is both willing and able to provide all program information that is requested by the FAA.
f. The state is both willing and able to comply with the National Environmental Policy Act, state and
local environmental policy acts, Executive orders, agency regulations, and other Federal
environmental requirements.
g. The state uses a satisfactory process for determining which projects will be funded, including:
(1) A satisfactory process for ensuring that critical safety, and security, and other national aviation
priority needs will be met.
(2) A satisfactory process for determining a project’s priority that is consistent with the FAA’s national
priority system.
6-19. Memorandum of Agreement.
As of the publication date of this Handbook, it is FAA policy that the state and the FAA must
enter into a State Block Grant Program Memorandum of Agreement in order for the state to
qualify for grants under the program. The FAA officially documents that the selection criteria
have been met by executing a State Block Grant Program Memorandum of Agreement (MOA)
with the state. The ADO must retain a signed original of the executed State Block Grant
Program MOA and forward a copy to APP-520.
This MOA outlines the responsibilities of the state and the FAA under the State Block Grant
Program. The current version of Advisory Circular 150/5100-21, State Block Grant Program,
contains the standard template that the ADOs must use for this MOA.
6-20. Grant Assurances.
The ADO must include Aviation Block Grant Program Assurances as part of all state block
grants as well as a set of Airport Sponsors Assurances and Non-Airport Sponsors Undertaking
Noise Compatibility Program Projects Assurances (see Appendix B for link to these assurances).
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Per Aviation Block Grant Assurance #4, the state and or the associated airport owner receiving a
subgrant are obligated to the Airport Sponsors Assurances or Non-Airport Sponsors Undertaking
Noise Compatibility Program Projects Assurances as appropriate to the individual project. The
state accomplishes this by attaching the applicable assurances to the subgrant agreement.
6-21. Criteria for an Airport to be in the State Block Grant Program.
Table 6-12contains the criteria for an airport to be in the State Block Grant Program.
The state and the FAA have the option to allow specific airports to remain outside of the State
Block Grant Program. This would mean that the administrative responsibilities would remain in
the ADO. Both the state and the FAA must agree with this action, otherwise the airport must
stay within the State Block Grant Program. The ADO must include a list of these airports in the
MOA and must include the process for these airports to compete for state apportionment. In
addition, the ADO provides this list annually to APP-520.
Table 6-12 Criteria for an Airport to be in the State Block Grant Program
In order for an airport to be eligible to be in a State Block Grant Program, the airport must be…
a. In the National Plan of Integrated Airport System (NPIAS).
b. Within the state boundaries of a block grant state.
c. An existing (not planned) public-use airport.
d. A general aviation, reliever, or nonprimary commercial service airport (primary airports are not
eligible).
e. Listed as a block grant airport in the State Block Grant Program Memorandum of Agreement between
the state and the FAA.
6-22. ADO Right to Issue Grants Directly to Airports in the State Block Grant Program.
The ADO retains the right to issue a grant directly to an airport in the state block grant program.
This grant would use small airport funds per 49 USC § 47116(c). This would be a rare
occurrence and would normally only be done by the ADO to address an unusual circumstance.
6-23. Decision Authority for Discretionary Funds.
As of the publication date of this Handbook, it is FAA policy that the FAA retains the decision
authority regarding which airport projects will be funded with discretionary funds within the
block grant. The current APP-520 discretionary policy applies to these projects.
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6-24. Grant Federal Share.
The Federal share rules for state block grants and their associated subgrants are included in
Table 4-7.
6-25. Grant and Amendment Processes.
The ADO issues one or more grants to the state each year for the state’s available nonprimary
entitlement, state apportionment, and cargo funds (where applicable). The ADO also has the
option of issuing additional grants to the state with discretionary funds at specific airports. The
state then issues the individual subgrants to nonprimary airports in its state.
The grant and amendment processes for the State Block Grant Program are incorporated in the
applicable sections of Chapter 6Chapter 5.
6-26. Transfer of AIP Funding between Airports.
The rules for transferring funding between airports within the State Block Grant Program are
included in Table 6-13.
Table 6-13 AIP Funding Transfer Rules for the State Block Grant Program
For the following funding The following transfer rules apply…

type…
a. State Apportionment None.
b. Passenger, Cargo, and The state must follow the transfer rules provided in Paragraph 4-11.
Nonprimary Entitlement
c. Discretionary Per FAA policy, states are prohibited from transferring ADO assigned
discretionary to another airport or project, or using unused discretionary
for new projects. This policy aligns the use of discretionary between
state block and non-state block grants.
6-27. Project Eligibility and Allowable Costs.
AIP requirements for airport project eligibility and allowable cost (see Chapter 3) are the same
for states receiving a block grant as they would be if the ADO were administering the project.
The ADO has the final call in eligibility determinations where there are disagreements with the
states interpretation.
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6-28. Project Administrative Costs.
The state can charge for project administrative costs that would otherwise be an allowable cost
for the project (normally done by a consultant or other hired company). Paragraph 3-60 outlines
the requirements for the cost for a state’s employee’s time as well as overhead or indirect costs
(overhead or indirect costs include anything more than direct employee’s time).
6-29. Program Administration Costs.
State program administration costs are unallowable. These are costs that would be incurred by
the ADO if the FAA were administering the grant. Per FAA Policy, exemptions from this
prohibition are not considered.
6-30. Required Timeframe to Issue Subgrants.
It is FAA policy that the state must issue all funding to subgrants in a manner that allows them to
meet the period of performance and closeout deadlines contained in Paragraph 5-57. If the state
does not do this, the ADO has the option to unilaterally deobligate the funds and close the grant.
6-31. Grant/Project Oversight.
Unless otherwise stated in the State Block Grant Program Memorandum of Agreement, all of the
project and grant oversight requirements in Section 5 of Chapter 5 apply.
6-32. Grant Payments.
The rules for grant payments for state block grants are included in Section 6 of Chapter 5.
6-33. Grant Closeout.
The rules for grant payments for state block grants are included in Section 8 of Chapter 5.
6-34. Program Review by the FAA.
The FAA has the option of reviewing a state’s administration of the State Block Grant Program.
The state must provide all documentation requested by the FAA.
6-35. Accounting and Audits.
States must have an accounting system that accurately reflects expenditures of all funding within
a state block grant. State block grants and subgrants are subject to the same audit requirements
as any other AIP grant.
6-22
6-36. Suspension/Termination of a Grant Issued under the State Block Grant Program.
The FAA has the option to suspend and/or terminate any state block grant. The procedures are
listed inSection 9 of Chapter 5. The ADO must assume the administrative responsibilities
associated with the suspended grant. This is not the same as suspending a state from the
program, which is covered in Paragraph 6-37.
6-37. Suspension of a State from the State Block Grant Program.
The FAA has the option to suspend a state from the State Block Grant Program if the FAA
determines the State fails to comply with mandatory requirements. The FAA must use the
criteria used for admitting the state to the program (see Paragraph 6-18) and the conditions in the
State Block Grant Memorandum of Agreement to make this decision. The FAA must also work
with the state to determine a course for corrective action and a time frame in which it will be
completed by the state.
If a state is suspended, the ADO must assume the administrative responsibilities associated with
the program. Prior to suspension, the ADO must obtain copies of all subgrants (open or closed).
6-38. Removal or Voluntary Withdrawal from the State Block Grant Program.
States may voluntarily withdraw from the State Block Grant Program. In addition, failure of
states to comply with block grant conditions or regional agreements may result in the FAA
removing the state from the program.
a. APP-1, APP-500, and ACO-100 Coordination/Concurrence. The ADO must

coordinate and obtain concurrence from APP-1, APP-500, and ACO-100 prior to initiating
withdrawal or removal of a state from the State Block Grant Program.
b. Negotiations on Transfer of Responsibilities from State to ADO. Unless the FAA

determines otherwise, the ADO and the state have the option to negotiate the transfer of
responsibilities from the state to the ADO. For instance, the ADO might request to phase out the
state’s participation in the program starting with selected categories of airports or projects.
c. Amendment to Memorandum of Agreement. The State Block Grant Program

Memorandum of Agreement must be amended to reflect the transfer of responsibilities to the
ADO. The memorandum must list all open and closed subgrants and must indicate what
documentation must be transferred to the ADO. The ADO must obtain APP-500 and ACO-100
concurrence with the memorandum before it is executed by the ADO.
d. State Reapplication after Termination. A terminated state can reapply to be in the State
Block Grant Program under the same application procedures for a new applicant.
6-23
Section 3. Military Airport Program.
6-39. General.
The Military Airport Program (MAP) allows the FAA to give grants to civil sponsors of joint-use
military airfields or former military airports.
6-40. AIP Funding.
49 USC § 47117(e)(1)(B) designates a 4% set-aside of AIP discretionary funds that the FAA
may use towards projects at MAP designated airports. The FAA normally directs MAP funding
towards those specific projects that will allow a MAP designated airport to successfully
transition from military to civilian use.
6-41. Designation Authority.
49 USC § 47118(a) allows the FAA to designate up to 15 current or former military airfields in
the Military Airport Program. These airports can receive grants to help convert them to civilian
use or to reduce congestion. Per 49 USC § 47118(g), three of the 15 airports may be general
aviation airports and the remaining twelve must be commercial service or reliever airports.
6-42. Original MAP Designation Duration.
The FAA has the option to designate an airport as a MAP airport for one to five years per
49 USC § 47118(d). Per FAA policy, the FAA must evaluate the conversion needs of the airport
in the sponsor’s capital development plan to determine the appropriate length of designation.
6-43. Redesignation Duration.
Previously designated airports may apply for redesignation of additional terms not to exceed a
five year per term per 49 USC § 47118(d). Those airports must meet current MAP requirements
and, per FAA policy, have remaining MAP eligible projects that were not funded by the FAA.
The FAA’s goal is to graduate MAP airports to regular AIP participation by successfully
converting these airports to civilian airport operations.
6-44. Requirements.
Sponsors must submit documentation that clearly shows they meet the 49 USC § 47118 and
FAA policy requirements listed in Table 6-14.
6-24
Table 6-14 MAP Requirements
For the following The following criteria apply…

requirement…
a. System Benefits Per 49 USC § 47118(c), the proposed projects will accomplish at least one of
the following:
(1) Reduce delays at an airport with more than 20,000 hours of annual delays
in commercial passenger aircraft takeoffs and landings.
(2) Enhance airport and air traffic control system capacity in a metropolitan
area or reduce current and projected flight delays.
(3) Preserve or enhance minimum airfield infrastructure facilities at former
military airports to support emergency diversionary operations for
transoceanic flights in locations where both of the following criteria are met:
(a) The location is within United States jurisdiction or control.
(b) The location has a demonstrable lack of diversionary airports within the
distance or flight-time required by regulations governing transoceanic
flights.
b. Current or Former Per 49 USC § 47118(a), the airport is either a current or former military airport
Military Airport under at least one of the following conditions:
(1) The airport was closed or realigned under Section 201 of the Defense
Authorization Amendments and Base Closure and Realignment Act, and/or
Section 2905 of the Defense Base Closure and Realignment Act of 1990
(Installations Approved for Closure by the Defense Base Realignment and
Closure Commissions). Only public agencies qualify under these acts.
(2) The airport was closed or realigned under 10 USC § 2687 as excess
property. These are bases announced for closure by the Department of
Defense after September 30, 1977 (this is the date of announcement for
closure and not the date the property was deeded to the sponsor). Only
public agencies qualify under this regulation.
(3) The airport is a commercial service or reliever airport that is a military
installation with both military and civil aircraft operations (also called a joint
use airport).
Per 49 USC § 47118(g), a joint use airport that is not a commercial service or
reliever airport is not eligible under MAP unless the airport meets conditions (1)
or (2) above.
c. Public-Use Airport Per 49 USC § 47105(b)(2), the airport is a public-use airport (see the definition
Appendix A for the criteria) in the National Plan of Integrated Airport Systems.
d. MAP Slots are Per 49 USC § 47118(a) and § 47118(g), three of the 15 airports may be general
Available aviation airports and the remaining twelve must be commercial service or
reliever airports.
e. Eligible Sponsor The sponsor is an eligible sponsor per the requirements of the Act (see
Chapter 2 for a listing of the requirements).
6-25

requirement…
f. Airport Layout Per 49 USC § 47107(a)(16), the airport has an FAA approved airport layout
Plan plan.
g. Capital Per FAA policy, the sponsor has a five-year capital improvement plan that
Improvement Plan includes all eligible AIP projects that can be funded with MAP and AIP.
h. Environmental Per FAA policy, the environmental review necessary to convey the property,
Requirements enter into a long-term lease, or finalize a joint-use agreement must have been
completed. The military department conveying or leasing the property, or
entering into a joint-use agreement, has the lead responsibility for this
environmental review.
Per FAA policy, the environmental reviews for each specific MAP project are
separate processes. These environmental reviews must meet the normal AIP
requirements and timeframes.
i. Good Title Per 49 USC § 47106(b), the sponsor has to have good title. Per FAA policy,
good title requirements are as follows:
(1) Former Military Airport. The sponsor must hold or will hold satisfactory
title, a long-term lease in furtherance of conveyance of property for airport
purposes, or a long term interim lease more than 20 years or longer to the
property on which the civil airport is being located. This is because the
lease term must be longer than the grant assurances for AIP construction
projects. Documentation that an application for surplus or BRAC airport
property has been accepted by the Federal government is sufficient to
indicate the eligible sponsor holds or will hold satisfactory title or a long-
term lease. In addition, the sponsor must possess all necessary property
rights prior to accepting a grant for a proposed project.
(2) Current Military Airport. The sponsor must have an existing joint-use
agreement with the military department having jurisdiction over the airport. If
the sponsor is a first time applicant, the sponsor must submit a copy of the
existing joint-use agreement no later than the time of the application. This is
necessary to permit the ADO to issue grants to the sponsor. In addition, the
sponsor must possess all necessary property rights prior to accepting a
grant for a proposed project.
6-26

requirement…
j. Marketing Plan For a commercial service airport to qualify for redesignation, it is FAA policy that
the sponsor must provide a reanalysis of their original business/marketing plans
(for example, a plan previously funded by the Department of Defense Office of
Economic Adjustment or the original Master Plan for the airport) and prepare a
report. If there is no existing business/marketing plan, the sponsor must
develop a business/marketing plan or strategy. The report must contain all of
the following information:
(1) Whether the original business/marketing plan is still appropriate.
(2) Whether the airport is continuing to work towards the goals established in
the business/marketing plan.
(3) How the MAP projects contained in the application contribute to the goals of
the sponsor’s marketing plan.
(4) If the business/marketing plan no longer applies to the current goals of the
airport, how the airport has altered the business/marketing plan.
Specifically, how have they established a new direction for the facility, how
projects contained in the MAP application aid in the completion of the new
direction and goals, and by what date they anticipate completing the MAP
projects.
6-45. Typical MAP Projects.
The FAA will normally only consider MAP funding for projects that aid in the conversion of a
military or former military facility to civilian use. These projects can include revenue generating
projects that may not normally be eligible at the airport. These projects can also include lower
priority AIP project that would not compete well for regular discretionary funding. A list of the
MAP project requirements is contained in Appendix T.
It is FAA policy to use regular discretionary or entitlement funding, not MAP funding, for
projects that compete well for discretionary funding or are not necessary to convert the airport to
civilian use. Some examples of projects that APP-520 would anticipate an ADO use regular AIP
funding are in Table 6-15.
6-27
Table 6-15 Examples of Projects That May Not Be Suitable for MAP Funding
The following project… May not be suitable for MAP funding because…
a. Runway rehabilitation This type of project normally competes well for regular AIP funding.
b. Runway extension This type of project is normally not necessary to convert the airport to
civilian use (most military runways are a suitable length for civilian
use).
6-46. Use of Regular AIP on a MAP Designated Airport.
MAP designated airport projects are not limited to MAP funding. They may also qualify for
other AIP funding if they meet all associated project eligibility and justification requirements. In
fact, it is FAA policy that the ADO not recommend an airport for the MAP program unless the
ADO is willing to support the airport’s needs for higher priority projects with regular
discretionary funding (if necessary).
6-47. MAP Funding Limitations.
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, only if the hangar or air cargo
terminal building facility is 50,000 square feet or less.
6-48. Reimbursement with Discretionary.
Per 49 USC § 47118(f)(2), the FAA has the option to use discretionary to reimburse approved
MAP projects if the sponsor incurred the costs during fiscal years 2003 and 2004.
6-49. Application Process.
Every year, the FAA publishes the information that a sponsor must submit if it wants to be
designated or redesignated into the MAP program. The publication also announces the number
of available MAP slots and the factors that the FAA will use to evaluate the MAP candidates for
that fiscal year.
Each fiscal year, APP-520 will provide the regional offices and ADOs with instructions for the
current internal MAP application review process.
6-28
Section 4. Innovative Finance Demonstration Program.
6-50. Legislative History and References.
The legislative history of the innovative finance demonstration program is outlined in

Table 6-16. This program has been retained without change in subsequent legislation under
49 USC § 47135.
Table 6-16 Innovative Finance Demonstration Program Legislative History
The following legislation… Provided the following…
a. Section 148 of the Federal Aviation Established the program and allowed the FAA to
Reauthorization Act of 1996 approve applications for 10 airport development
projects.
b. Section 132 of AIR -21 (Wendell H. Ford Allowed the FAA to approve applications for 20
st
Aviation Investment and Reform Act for the 21 airport development projects during fiscal years
Century) 2000-2003.
c. Section 156 Vision 100 – Century of Aviation Allowed the FAA to approve applications for 20
Reauthorization Act airport development projects beginning in fiscal
year 2004 and beyond.
6-51. Program Rules.
The rules for the innovative finance demonstration program are included in Table 6-17.
Table 6-17 Innovative Finance Demonstration Program Rules
The current Innovative Finance Demonstration Program rules include…
a. Eligible Airports. Per 49 USC § 47135(a), the program is open to all airports except large and
medium hub airports. Only 20 airport development projects may be approved beginning in fiscal year
2004.
b. No Guarantee of Debt Instruments. Per 49 USC § 47135(c)(1), FAA approval of the project does
not (directly or indirectly) create a guarantee by the United States Government of any airport debt
instrument.
6-29
Table 6-17 Innovative Finance Demonstration Program Rules
The current Innovative Finance Demonstration Program rules include…
c. Allowable Innovative Techniques. Per 49 USC § 47135(c)(2), the program is limited to the
following innovative techniques.
(1) Payment of interest.
(2) Commercial bond insurance and other credit enhancement associated with airport bonds for
eligible airport development. Per FAA policy, this may include underwriting fees.
(3) Flexible non-Federal matching requirements.
(A) This may include increased local and state shares using contribution from private sources.
(B) The FAA has determined that this technique has been adequately tested; therefore, the FAA
is less inclined to pursue future uses of these techniques.
(4) Use of entitlement and state apportionment funds to pay principal and interest costs for terminal
development if the costs were incurred before December 12, 2003 (the date of the enactment of
Vision 100 – Century of Aviation Reauthorization Act). The FAA has determined that this
technique has been adequately tested. Therefore the FAA is less inclined to pursue future uses
of these techniques.
d. Justification. Per FAA policy, the sponsor must demonstrate that the innovative finance proposal
will result in cost savings or improved performance of the national aviation system. For instance, it
might show that the airport development would either not be built or would be built earlier than would
have been possible without the program.
e. Application Deadline. Per FAA policy, sponsors may submit an innovative finance demonstration
application to the ADO at any time unless otherwise established by APP-500.
f. Project Selections. Per FAA policy, ADOs must forward all applications to APP-500 for their review.
APP-500 will approve or disapprove all project applications.
g. Normal AIP Requirements. Per FAA policy, all other applicable AIP sponsor, funding, project, and
grant rules apply. Changes to FAA standards will not be considered under this program.
h. Additional Sponsor Reporting. Per FAA policy, sponsors must submit all additional documentation
and reporting as required by the ADO.
Section 5. Voluntary Airport Low Emission Program (VALE).
6-52. Legislative History.
In fiscal year 2004, Sections 151, 158 and 159 of Vision 100 – Century of Aviation
Reauthorization Act established a voluntary program to reduce airport ground emissions at
commercial service airports located in nonattainment and maintenance areas designated by the
U.S. Environmental Protection Agency.
6-30
6-53. Legislative References.
Table 6-18 contains the legislative references applicable to the VALE program.
Table 6-18 VALE Legislative References
The following… Provides...
a. 49 USC § 47102(3)(K) The language that makes certain VALE projects eligible as airport
and § 47102(3)(L) development.
b. 49 USC § 47110(b)(6) Guidance on VALE project funding restrictions.
c. 49 USC § 47117(e)(1)(A) Guidance on the use of noise and environmental set aside funding.
d. 49 USC § 47139 Guidance on emission credits for air quality projects.
e. 49 USC § 47140 Guidance on the airport ground support equipment emissions retrofit pilot
program.
6-54. Purpose and General Overview.
The goal of the Voluntary Airport Low Emission (VALE) Program is to improve airport air
quality by providing commercial service airports with grants to acquire low emission vehicles
and infrastructure. The VALE Program helps airport sponsors meet their general conformity
obligations under the Clean Air Act (42 USC § 7401, et. Seq.). It also assists state planning to
meet health-based national ambient air quality standards.
The airports must be located in nonattainment or maintenance areas designated by the

Environmental Protection Agency (EPA) per 49 USC § 47140(b). Some of the key equipment
requirements are that the equipment must provide cleaner technology then the conventional
equipment, be airport-owned, provide the best achievable emissions reductions based on EPA
standards, and rely exclusively on alternative fuels that are substantially non-petroleum based (as
defined by the U.S. Department of Energy, not excluding hybrid systems). Typical projects
include gate electrification, boiler pollution control devices, and new or retrofitted low emission
vehicles and ground support equipment.
6-55. Available Guidance.
The authorizing legislation requires the FAA to publish program guidance in areas of project
eligibility, how air quality benefits are demonstrated, and how sponsors receive appropriate
airport emission reduction credits. Specific program guidance is contained in the VALE
Program Technical Report (see Appendix B for link). Associated guidance on airport emission
reduction credits is contained in the EPA Report, Guidance on Airport Emission Reduction
Credits for Early Measures through Voluntary Airport Low Emission Programs, which is
available on the same website.
6-31
6-56. Application and Grant Process.
Sponsors interested in applying for VALE grants must submit a project application as outlined in
the VALE Technical Report. VALE requirements and special conditions supplement AIP
requirements and grant assurances unless otherwise stated in VALE guidance. The automated
AIP system contains the current available special conditions. Sponsors must submit VALE
applications concurrently to the ADO, regional office and APP-400. VALE grants are processed
similarly to other AIP grants.
APP-400 determines funding priority primarily on the basis of project cost-effectiveness, as

defined by project lifetime emission reductions per dollar spent.
6-57. Project Funding Requirements.
Appendix S includes the funding requirements for environmental planning/mitigation projects,

including VALE projects.
Section 6. Zero Emission Vehicle and Infrastructure Pilot Program.
In fiscal year 2012, Section 511 of the FAA Modernization and Reform Act of 2012
(Public Law 112-95) added a pilot program for zero emission vehicles and infrastructure.
Table 6-19 contains the legislative references applicable to the zero emission vehicle and
infrastructure pilot program.
Table 6-19 Zero Emission Vehicle and Infrastructure Pilot Program Legislative
References
49 USC § 47117 Guidance on the use of set aside funding for these projects.
(Note: The only set aside discretionary funding that the FAA anticipates using
toward these projects is Noise and Environmental Set Aside funding, even
though 49 USC § 47117 includes MAP and Reliever Set Aside funding.)
49 USC § 47136a Guidance on zero emission airport vehicles and infrastructure.

(Note that this section is after 49 USC § 47136, not part of it.)
6-32
6-60. Purpose.
The goal of the Zero Emission Vehicle and Infrastructure Pilot Program is to improve airport air
quality by providing eligible airports with grants to purchase zero emission airport vehicles and
infrastructure.
Specific program guidance is contained in the Zero Emissions Airport Vehicle and Infrastructure
Pilot Program Technical Guidance (see Appendix B for link).
ADOs and regional offices must contact APP-400 for application information and APP-500 for
grant information.

including zero emission airport vehicles and infrastructure projects. The Federal share for these
projects is restricted to 50% per 49 USC § 47136a(d). These projects are eligible for noise and
environmental set aside funding per 49 USC § 47136a(a), as further discussed in Paragraph 4-6.
Section 7. Program to Increase Energy Efficiency of Airport Power Sources.
(Public Law 112-95) added a program for certain projects that increase the energy efficiency of
airport power sources. This legislation simply made these projects eligible for AIP. The
legislation did not make these projects eligible for any special set aside funding (including the
noise and environmental set aside).
Table 6-20 contains the legislative references applicable to the program to increase the energy
efficiency of airport power sources.
Table 6-20 Program to Increase the Energy Efficiency of Airport Power Sources
Legislative References
49 USC § 47140a Guidance on increasing the energy efficiency of airport power sources.
(Note that this section is after 49 USC § 47140, not part of it.)
6-33
6-66. Purpose.
The goal of the program to increase the energy efficiency of airport power sources.
As of the publication date of this Handbook, APP-400 was developing guidance for the program
to increase the energy efficiency of airport power sources. Until this new guidance is published,
ADOs and regional offices must contact APP-400 for guidance.
As of the publication date of this Handbook, APP-400 was developing guidance for the program
to increase the energy efficiency of airport power sources. Until this new guidance is published,
ADOs and regional offices must contact APP-400 for application information and APP-500 for
grant information.
6-69. Funding and Federal Share.
Because 49 USC § 47117(e)(1)(A) limits the funding of the noise and environmental set-aside to
specific projects, projects to increase the energy efficiency of airport power sources are not
eligible for noise and environmental set aside funding. In addition, the airport’s regular Federal
share applies.

including airport energy assessments and projects to increase the energy efficiency of airport
power sources.
Section 8. Airport Development Rights Pilot Program.
In fiscal year 2004, Section 152 of Vision 100 – Century of Aviation Reauthorization Act created
a pilot program for the purchase of development rights for up to 10 privately-owned public-use
airports. The rules for this pilot program are provided for in 49 USC § 47138. This pilot
program allows the FAA to issue a grant to a state (or a political subdivision of the state) for the
purchase of airport development rights to ensure the airport property will continue to be available
for use as a public use airport in perpetuity (in this case, public use airport means that the airport
is open to the public). Through this pilot program, the FAA will evaluate the merits of
purchasing airport development rights instead of the purchase of fee simple interests for the
airports.
6-72. Rules of the Pilot Program.
The rules and requirements of the pilot program are outlined in Table 6-21.
6-34
Table 6-21 Rules for the Airport Development Rights Pilot Program
The requirements Include…

for…
a. The Number of (1) Per 49 USC § 47138(e), the FAA is only allowed to issue grants to purchase
Participants airport development rights at 10 airports under this pilot program.
b. The Airport and (1) Per 49 USC § 47138(a), the airport must be a privately-owned public-use
Airport Owner airport.
(2) Per FAA policy, the airport owner must have filed a notice with the ADO in
accordance with 14 CFR part 157, Notice of Construction, Alteration,
Activation, and Deactivation of Airports, indicating that the airport status is
privately-owned, public-use.
(3) 49 USC § 47138 does not require the airport to meet the privately-owned
public-use airport requirements in 49 USC § 47102(22)(B) or to be in the
National Plan of Integrated Airports (NPIAS).
(4) Per FAA policy, the airport owner must not have any existing grant
obligations requiring the airport to remain open.
c. The Grant (1) Per 49 USC § 47138(a), the sponsor must be a state or a political
Sponsor subdivision of a state (such as a city, municipality, or state agency) in the
same state as the airport.
d. The Grant (1) Per 49 USC § 47138(b)(1)(A), the airport property must continue to be
Purpose available for use as a public airport (in this case, public airport means that
the airport is open to the public).
(2) Per 49 USC § 47138(b)(1)(B), the airport must remain a public use airport in
perpetuity.
e. Requesting (1) Per FAA policy, the FAA may contact potentially interested owners and/or
Participation sponsors at any time and informally invite them to express interest in the
pilot program.
(2) Per FAA policy, the sponsor must express interest in a letter to the FAA. If
the airport owner does not cosign the letter, then the sponsor must indicate
that the airport owner has agreed in the sponsor’s letter.
f. The Selection (1) Per FAA policy, the regional office will send a joint ADO/regional office
recommendation to APP-500. APP-500 is the selecting office. Once an
airport has been selected, the ADO will inform the sponsor of the selection
and request a grant application.
6-35

for…
g. The Grant (1) 49 USC § 47138(c) requires that the FAA set the requirements for the grant
Application application and approval procedures.
(2) Per FAA policy, the sponsor must use the standard grant application as
discussed in Paragraph 5-19.
(3) Per FAA policy, grant application must include a property inventory map
(Exhibit A) that is approved by both the sponsor and the airport owner and
clearly shows the land and development subject to the agreement.
(4) Per FAA policy, the airport owner must provide a letter to the FAA describing
its concept for ownership and operation of the airport over the next ten years.
(5) Per FAA policy, if the airport owner does not operate the airport, the airport
owner must provide a copy of the associated lease or agreement.
(6) Per FAA policy, the ADO must determine whether the costs of the proposed
grant are less than buying the airport outright. The issuance of the grant
documents a positive determination by the ADO.
(7) Per FAA policy, the sponsor must provide a signed certification from their
attorney as outlined in Table 6-22.
(8) The FAA has the option of not issuing a grant for the purchase of airport
development rights if the FAA determines that it is not in the best interest of
the Federal government or that the requirements will not be met.
h. Option for FAA (1) Per FAA policy, airport owner must agree to allow a site inspection by the
Site Visit FAA and sponsor prior to the grant being issued.
i. FAA Coordination (2) Per FAA policy, the ADO must discuss the terms and conditions of the pilot
program with the airport owner as well as the sponsor to ensure both parties
understand their obligations.
j. Acquisition (1) Per FAA policy, the FAA, sponsor, and airport owner must follow the same
policies and procedures for airport acquisition in fee simple as contained in
Appendix Q. This includes meeting the requirements of 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.
k. AIP Fund Types (1) 49 USC § 47138(a) allows of all types of apportionment and entitlement
funds available to the sponsor that are listed under 49 USC § 47114 to be
used on this type of grant.
l. AIP Federal (1) Per 49 USC § 47138(b)(2), the Federal share is limited to 90% of the costs
Share to acquire the development rights.
6-36

for…
m. AIP Grant (1) Per FAA policy, the FAA can only compensate the airport owner for the
Description and market value of the development rights sold based on an acceptable before
Amount and after appraisal. Under this appraisal method, the market value of the
development rights conveyed is appraised at the difference between the
market value of the property for continued airport use and the current market
value of the property for some other development.
(2) Per FAA policy, planning costs to prepare the Exhibit A and/or associated
documentation are allowable project formulation costs under the grant (not
as a separate grant).
(3) Per FAA policy, the property interests must be for a complete airfield or
those combined parcels that collectively allow the airport to serve as a
public-use airport. The property interests cannot be for only select areas of
the airport (such as only the runway protection zones).
n. Grant Template (1) The ADO must consult with APP-500 on how the standard grant template
must be modified for a grant of this type.
o. Instrument (1) Per FAA policy, the instrument recording the purchase of airport
Recording the development rights must include all of the terms and conditions listed in
Purchase of Table 6-23. The instrument recording the purchase of development rights is
Airport the document evidencing the purchase of the airport development rights by
Development the sponsor, and the easement or covenant given by the airport owner that
Rights the airport must remain a public-use airport in perpetuity.
p. Grant Assurances (1) Per FAA policy, the standard grant assurances must not be included in the
grant. Instead, the requirements in Table 6-23 must be contained in the
instrument recording the purchase of airport development rights, as
discussed above.
q. Final Payment (1) Per FAA policy, ADO must not allow the payment for the full amount of the
grant until the instrument recording the purchase of development rights and
easement has been recorded in the local registry of deeds and land transfers
in compliance with local law.
r. Release of (1) Per 49 USC § 47138(d), the state or political subdivision may not transfer or
Purchase Rights dispose of the development rights unless the FAA determines that it is in the
and Covenant best interest of the Federal government.
s. Advisory Circular (1) Per FAA policy, the ADO has the option to provide the airport owner/operator
for Airport Safety with the current version of Advisory Circular 150/5200-18, Airport Safety Self
Self-Inspection Inspection.
6-37
Table 6-22 Required Sponsor’s Attorney Certification Language
The following certification language must be completed and signed by the sponsor’s attorney…
CERTIFICATE OF SPONSOR’S ATTORNEY

I, ________________ , acting as Attorney for the Sponsor do hereby certify that in my opinion the
Sponsor is empowered to file the Application for Federal Assistance for the purchase of development
rights in accordance with Title 49, United States Code, section 47138, under the laws of the State of
_____________and has the authority from its governing body. Further, the actions taken by said sponsor
and sponsor’s representative has been duly authorized and that the execution thereof is in all respects
due and proper and in accordance with the laws of the said State.
Dated at _________________ (location) this _____ day of _____________, _______.
By: ______________________________________________
(Signature of Sponsor’s Attorney)
Table 6-23 Requirements for the Instrument Recording the Purchase of Airport
Development Rights
Per FAA policy, the instrument recording the purchase of airport development rights must include
the following terms and conditions…
a. Exhibit A (Property Inventory Map). Parcels of land obligated under the development rights
agreement must be described on the Exhibit A. The Exhibit A must be approved by both the sponsor
and the airport owner.
b. Notice to Airmen. The airport owner must promptly notify pilots of any condition affecting
aeronautical use of the airport property.
c. Acquisition of Development Rights. The acquisition of development rights by the sponsor is for the
right to develop and use the property depicted on the Exhibit A for a purpose other than as an airport
open to the public or enhancing convenience of aviation activities. The purpose of the acquisition of
development rights is to ensure that the airport will continue to be available as a public use airport (in
this case, public use airport means that the airport is open to the public).
d. Hazardous Substance. The FAA and state (or political subdivision of the state) do not assume any
right to control the means by which the airport owner complies with restrictions on airport property;
and do not assume any liability for discharge of a hazardous substance.
e. Public-Use Airport in Perpetuity. The airport owner, for good and valuable consideration, must
grant the sponsor an easement or covenant that the airport must remain open to the public for use as
an airport in perpetuity. Such easement or covenant must be in effect in perpetuity unless modified or
released with the approval of the FAA.
f. Modification or Release of Purchased Rights and Covenant. The sponsor must not modify,
transfer, or disposal of the airport development rights unless the FAA has made a written
determination that the action is in the best interest of the Federal government.
6-38
Table 6-23 Requirements for the Instrument Recording the Purchase of Airport
Development Rights
Per FAA policy, the instrument recording the purchase of airport development rights must include
the following terms and conditions…
g. Recordation. The sponsor must record the instrument evidencing the purchase of development
rights and the granting of the easement or covenant that the airport must remain open to the public
for use as an airport in perpetuity, in the local registry of deeds and land transfers in compliance with
local law.
h. Sponsor’s Obligation for Airport Operation. The sponsor may be obligated to operate and
maintain the airport if it is closed during other than periods of temporary climatic conditions that
interfere with safe operation and maintenance. The airport owner and sponsor agree that in the event
the airport owner discontinues safe airport operation and maintenance, the sponsor, in consultation
with the FAA, may be required to assume that obligation.
i. Airport Owner’s Obligation for Airport Operation in Perpetuity. The airport owner or its
successor is obligated to own the airport and operate it as an airport except for periods of temporary
climatic conditions that interfere with safe operation and maintenance. In the event the airport owner
discontinues safe airport operation and maintenance, the airport owner must notify the FAA within 24
hours.
j. Enforcement of Development Rights by the FAA. The instrument recording the purchase of
development rights must grant the FAA third party beneficiary rights to enforce the easement or
covenant that the airport must remain a public-use airport in perpetuity and the sponsor’s obligation
for airport operation.
Section 9. Redevelopment of Airport Properties Pilot Program.
(Public Law 112-95) created a pilot program to fund activities related to the redevelopment of
airport properties purchased for airport noise compatibility. Note that the pilot program language
was not incorporated into 49 USC Chapter 471, therefore the text of the pilot program can only
be found in Section 822 of the FAA Modernization and Reform Act of 2012
(Public Law 112-95). As of the publication date of this Handbook, the current sunset date is
September 30, 2018 per the Consolidated Appropriations Act, 2018 (Public Law 115-141).
6-74. Purpose.
The purpose of this pilot program is to expedite redevelopment of airport property purchased for
noise mitigation by the airport with AIP or Passenger Facility Charge (PFC) funds.
6-75. Availability of Guidance.
Guidance for this pilot program is available in Pilot Program for Redevelopment of Airport
Properties (Acquired Noise Land) (see Appendix B for link).
6-39
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6-40
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
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 A-
87, 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.
A-1
Definitions
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:

An area of land or water used or intended to be used for the landing and taking off of aircraft;
An appurtenant area used or intended to be used for airport buildings or other airport facilities or rights of
way;
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. For obstructions, 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, the current version of 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.
A-2
Definitions
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.
A-3
Definitions
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).
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.
Carryover Entitlements. Entitlements that were provided in a prior fiscal year were not used and remain
available for obligation for the original recipient.
A-4
Definitions
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 is 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 DOT Office of the Secretary (OST) and 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.
A-5
Definitions
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 2 CFR part 200 Subpart E (OMB Circular A-87, Cost Principles for State, Local, and
Indian Tribal Governments). 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. The ADO must use the
current version of Advisory Circular 150/5000-17, Critical Aircraft and Regular Use Determination to
determine the critical aircraft for specific projects and airport types.
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 A-
87, 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.
A-6
Definitions
Drawdown. A series of payments made during a project reflecting the progress that is being made on
the project.
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.
th
Easement. Per Black’s Law Dictionary (9 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.
A-7
Definitions
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.
th
Fee Simple. Per Black’s Law Dictionary (9 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.
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.
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.
A-8
Definitions
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).
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 USC § 5130, 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.
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.
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.
A-9
Definitions
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.
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.
A-10
Definitions
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.
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 Improvement 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.
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.
A-11
Definitions
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.
th
Permissive Statute. Per Black’s Law Dictionary (9 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.
A-12
Definitions
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.
Reconstruction. A comprehensive definition, including the differentiation between maintenance,

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 the Office of Management and Budget (OMB) and is
communicated to regional offices in the allotment process as a recovery ceiling.
Rehabilitation. A comprehensive definition, including the differentiation between maintenance,

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,

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).
A-13
Definitions
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.
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 07-
03, 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.
A-14
Definitions
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.
A-15
Definitions
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.
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.
A-16
Definitions
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.
A-17
A-18
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.
http://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.
http://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).
http://www.faa.gov/airports/aip/grant_histories/
AIP Grant Payments

This website provides information on how to use the current DOT electronic payment system.
http://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).
http://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.
http://www.faa.gov/airports/aip/guidance_letters
B-1
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.
http://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.
http://www.faa.gov/airports/aip/
Airport Improvement Program (AIP) Grant Oversight Risk Model Policy

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

This order provides guidance to FAA staff about the administration of the Airport Improvement Program.
http://www.faa.gov/airports/aip/aip_handbook/
AJW-144 Weather Processors and Sensors – Non-Federal AWOS

This FAA Technical Operations website describes the requirements for design, installation,
commissioning and maintenance of a non-Federal AWOS.
http://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.
http://www.nhtsa.gov/nhtsa/whatsup/tea21/grantman/html/00_manl_contents1_01.html
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/
B-2
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.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=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.
http://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://cfo.gov/cofar/cofar-resources/
Current FAA Advisory Circulars Required for Use in AIP Funded and PFC Approved Projects
This is a checklist 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.
Department of Defense Contract Pricing Reference Guides

This document provides guidance to sponsor’s preparing cost or price analyses.
https://www.dau.mil/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).
http://www.transportation.gov/assistant-secretary-administration/procurement/suspension-and-debarment
B-3
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

http://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.
http://www.faa.gov/airports/aip/bc_analysis/
FAA CertAlerts
http://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.
http://www.faa.gov/airports/
FAA Office of Airports Standard Operating Procedures

This website contains standard operating procedures for various FAA Office of Airports functions.
http://www.faa.gov/airports/resources/sops/
FAA Orders
http://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.
http://www.fasab.gov/accounting-standards/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.
http://www.faa.gov/regulations_policies/orders_notices/
B-4
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.
http://www.fema.gov/national-flood-insurance-program-flood-hazard-mapping
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

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

This website provides links to references on suspension and debarment.
http://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.
http://www.gao.gov/legal/redbook/redbook.html
Guidance on Airport Recycling, Reuse, and Waste Reduction Plans

Technical guidance on preparing airport recycling plans and enhancing airport recycling programs.
http://www.faa.gov/airports/environmental/airport_recycling/
B-5
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.
http://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.
http://www.faa.gov/airports/environmental/policy_guidance/
Office of Management and Budget (OMB)

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
B-6
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)
Public Laws
http://www.gpo.gov/fdsys/
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.
http://portal.hud.gov/hudportal/HUD?src=/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.
http://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
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)

http://fdsys.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.
http://www.publications.usace.army.mil/USACEPublications/EngineerPamphlets
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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.
http://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.
http://www.faa.gov/airports/environmental/zero_emissions_vehicles/
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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 and Establishment Costs. 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.
C-1
(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 cost, 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.
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(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 – Certain Cost. Flight check costs 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.
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(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 contractor 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).
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(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.
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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
(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.
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(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.
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(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.
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(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.
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(26)NAVAID Relocation – Refurbishing/Enhancing/Upgrading. AIP participation to move FAA-owned

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.
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(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.
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(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 O).
(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, triterators, 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.
C-12

(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.
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C-3. Examples of Equipment Prohibited Projects/Costs.
Table C-3 Examples of Prohibited Projects/Costs for Equipment
(2) Air Compressors. Other than fixed air compressors built into an ARFF building to fill self-contained
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 Non-Federal Program Implementation Manager
on all AWOS-III requirements.
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(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.
C-15
(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 FAA Air Traffic Organization (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.
C-16
(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.
C-17
(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.
Table C-4 Examples of Prohibited Projects/Costs for Land
(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-18
C-5. Examples of Noise Mitigation Prohibited Projects/Costs.
Table C-5 Examples of Prohibited Projects/Costs for Noise Mitigation
(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.
C-19
(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.
C-20
(24)Terminal Based Air Conditioning, Heating, or Electric Power. Acquiring or installing terminal-
based 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.
Table C-6 Examples of Prohibited Projects/Costs for Planning or Environmental
(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.
C-21
(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 whole-airport
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 stand-alone 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.
C-22
(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.).
C-23
C-24
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 Factors to Consider For Justification Required Usable Work Code*
Done If Justified and Eligibility Unit of Work and
Required Outcome
a. Stand-Alone (1) The ADO has every expectation that A set of plans and Same as
Design Only the associated development project specifications that is development
Projects will begin within two years after the ready to be bid. project
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.
D-1
Required Outcome
b. Construct Wash (1) A wash rack is a pavement area with A fully functional OT OT WR
Rack proper drainage and water runoff wash rack that
collection available for washing charges for services
aircraft. and is not exclusive
use.
(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) All airfield needs have been
accommodated per Paragraph D-2
(5) The ADO must ensure that the proper
environmental permits have been
obtained.
c. Fuel Farms (1) For MAP funded projects, see A fully functional OT OT FF
(Construct or Appendix T, as many of the following fuel farm that
Improve) requirements do not apply. charges for services
and is not exclusive
(2) The fuel farm must be owned by the
use.
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
D-2
Required Outcome
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.
D-3
Required Outcome
d. Construct (1) An exclusive paved area for aircraft A fully functional ST AP DI

Deicing Pad deicing or anti-icing activities is aircraft deicing pad
eligible if the improvements are to be that meets FAA
(Includes owned by the airport and will become standards including
Associated available on a non-exclusive use aircraft and vehicle
Facilities) basis per 49 USC § 47102. access.
(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.
D-4
Required Outcome
e. Parking Lot (1) For MAP funded projects, see A fully functional OT OT PA
(Construct or Appendix T, as many of the following parking lot.
Rehabilitate) 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.
f. Remove (1) The project must be supported by a An RNAV approach SP OT VI

obstructions to RNAV obstruction removal survey that is clear of
support Area based on the airport category on the obstructions.
Navigation approved ALP.
(RNAV)
(2) Per 49 USC § 47102(3)(A)(i)
Approach
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
D-5
Required Outcome
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
(7) Obstruction removal within runway
safety areas must meet the
requirements and use the work codes
in Appendix G.
D-6
Required Outcome
g. Obstructions (1) Per 49 USC § 47102(3)(A)(i) The elimination or SA OT OB

(Light, Mark, or and § 47102(4), the removal, mitigation of an
Remove) lowering, relocating, lighting, and airport hazard.
marking of airport hazards is eligible.
(For Hazards)
(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.
h. Obstructions (1) Per 49 USC § 47102(3)(A)(i) The elimination or ST OT OB

(Light, Mark, or and § 47102(4), the removal, mitigation of an
Remove) lowering, relocating, lighting, and airport obstruction.
marking obstructions is eligible.
(For Standards)
(2) Per FAA policy, obstructions are
eligible standards projects based on
the aircraft category on the approved
ALP for that runway and may include:
Circular. Obstruction removal
necessary to meet the object
clearing criteria in the current
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
D-7
Required Outcome
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.
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 and use the work codes
in Appendix G.
lighting or marking is limited to the
airport category shown on the
approved ALP.
lighting or marking to support Area
Navigation (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.
D-8
Required Outcome
i. Heliport/Helipad (1) The ADO must contact AAS-100 for A fully functional CA HE CO
(Construct, guidance. heliport or helipad ST HE CO
Expand, that meets FAA
(2) If the project meets the definition of a
Improve, design standards.
capacity project CA HE CO must be
Modify,
used. If the project meets the
Rehabilitate)
definition of a standards project, ST
HE CO must be used. Appendix A
contains these definitions.
j. Seaplane Base (1) The ADO must contact AAS-100 for A fully functional RE SB IM
(Rehabilitate) guidance. seaplane base that
meets FAA design
standards.
k. Seaplane Base (1) The ADO must contact AAS-100 for A fully functional ST SB CO
(Construct or guidance. seaplane base that
Improve) meets FAA design
standards.
l. Improve Airport (1) Stand-alone projects for drainage Improved airport ST OT IM

Drainage improvements are eligible to the drainage that meets
extent that they are needed to serve FAA design
areas eligible for AIP assistance. standards.
(2) The ADO will determine the method
of proration. Paragraph 3-97 contains
proration examples.
m. Improve Airport (1) Stand-alone projects for erosion A reduction in ST OT IM

Erosion Control control (blast pads, installation of sod, erosion.
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.
n. Improve Airport (1) The ADO must not use this work code N/A ST OT IM
Miscellaneous without first consulting with APP-520
Improvements or APP-400 and obtaining their
approval.
*The official list of work codes can be obtained from the automated AIP system.
D-9
D-10
Appendix E. Planning Projects
E-1. How to Use This Appendix.
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.
E-1
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 race-
based 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.
E-2
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-3
E-5. Project Requirements Table.
Table E-2 Planning Project Requirements
What Can Be Done Factors to Consider For Required Usable Work Code*
If Justified Justification and Eligibility Unit of Work and
Required
Outcome
a. State System (1) The ADO must have determined A completed state PL PL ST (full
Plan Study that the plan is necessary and system plan that state system
(Conduct or justified and approved the scope of meets FAA plan study)
Update) work. The needs of airports differ advisory circular
Note: The ADO
in as many ways as there are requirements and
must use
airports. Although similar airports the ADO has
Conduct/
with similar roles may share officially accepted.
Update
common characteristics, system
Miscellaneous
planning looks at specific needs
Study (PL PL
and assets at the airports in
MS) for eligible
question. Not all of the elements
stand-alone
identified in the current version of
projects in
Advisory Circular 150/5070-7, The
Paragraph E-3.
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.
E-4
Required
Outcome
b. Metropolitan (1) The ADO must have determined A completed PL PL ME (full

System Plan that the plan is necessary and metropolitan metropolitan
Study (Conduct justified and approved the scope of system plan that system plan
or Update) work. The needs of airports differ meets FAA study)
in as many ways as there are advisory circular
Note: The ADO
airports. Although similar airports requirements and
must use
with similar roles may share the ADO has
Conduct/
common characteristics, officially accepted.
Update
metropolitan planning looks at
Miscellaneous
specific needs and assets at the
Study (PL PL
airports in question. Not all of the
MS) for eligible
elements identified in the current
stand-alone
projects in
150/5070-7, The Airport System
Paragraph E-3.
Planning Process will be required
for all airports in the system plan.
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
metropolitan system planning level
are noted.
(4) The sponsor is a planning agency
sponsor as defined in Table 2-4.
c. Airport Master (1) The ADO must have determined An FAA accepted PL PL MA (full
Plan Study that the plan is necessary and master plan and master plan
(Conduct or justified and approved the scope of FAA approved study)
Update) work. The needs of airports differ airport layout plan
Note: The ADO
in as many ways as there are that meet FAA
must use
airports. Although similar airports advisory circular
Conduct/
with similar roles may share requirements and
Update
common characteristics, master identifies the
Miscellaneous
planning looks at the specific airport’s future
Study (PL PL
needs and assets at the airport in needs (as
MS) for eligible
question. Not all airports need to opposed to simply
stand-alone
do all of the elements identified in reflecting previous
projects in
the current version of Advisory changes and/or
Paragraph E-3.
Circular 150/5070-6, Airport existing
Master Plans. In some cases, an conditions).
E-5
Required
Outcome
ALP Narrative Report and an ALP
update may suffice.
must be updated.
(3) Table E-1 contains a list stand-
alone planning 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.
E-6
Required
Outcome
d. Conduct an (1) APP-400 must have concurred A set of electronic PL PL VI

Aeronautical with the survey (to avoid airport data that
Survey for Area duplication of effort with the RNAV meets FAA
Navigation office) before the ADO can standards.
(RNAV) program the grant.
Approach
(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.
e. Prepare SMS (1) The project must meet the An SMS manual SA PL MS
Manual minimum requirements of the and
current version of FAA Order implementation
5200.11, FAA Airports (ARP) plan that meets
Safety Management System. the requirements
of AAS-300.
(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,
E-7
Required
Outcome
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
E-8
Required
Outcome
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).
E-9
Required
Outcome
f. Wildlife Hazard (1) AAS-300 has made a For a wildlife PL PL WH

Assessments determination that wildlife hazard hazard site visit,
assessments are justified at the an FAA accepted
(Or Wildlife following types of airports: wildlife hazard site
Hazard Site visit report with an
(a) General aviation (and reliever)
Visits) associated written
airports that have 100 or more
sponsor adoption
based jets.
of the report
(b) General aviation (and reliever) recommendations.
airports that have 75,000 or For a wildlife
more annual operations. hazard
assessment, an
(c) 14 CFR part 139 airports.
FAA accepted
(2) AAS-300 has determined that wildlife hazard
general aviation (and reliever) assessment
airports with fewer than 100 based mitigation plan
jets or less than 75,000 annual with an associated
operations may only need a wildlife wildlife hazard
hazard site visit. The regional management plan.
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 a wildlife hazard
assessment. 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.
E-10
Required
Outcome
(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
E-11
Required
Outcome
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.
E-12
Appendix F. New Airport Projects
F-1. How to Use This Appendix.
F-2. Project Requirements Tables.
In addition to the information provided in the above paragraphs and the following tables,
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 CA NA CO

Appendix A).
b. The project meets the definition of a standards project (see ST NA CO

Appendix A).
Table F-2 New Airport Project Requirements
Required Outcome
a. Construct New (1) The airport is needed to replace an A new airport ST NA CO

Airport existing airport that is unable to meet constructed to FAA CA NA CO
long-term aviation demand in the design standards.
See
(Replacement) community because the existing
Table F-1 for
airport is constrained.
the correct
(2) The ADO must notify APP-400 as work code.
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.
F-1
Required Outcome
(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
F-2
Required Outcome
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.
b. Construct New (1) The airport is needed to supplement A new airport CA NA CO

Airport an existing NPIAS airport and the constructed to FAA
existing NPIAS airport stays open. It design standards.
(Supplemental) 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
(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.
have been met:
feasibility study.
(d) The benefit-cost analysis (BCA)
F-3
Required Outcome
have been met.
Paragraph 3-54.
(6) Per 49 USC § 47106(c)(1)(A)(i), the
requirements.
c. Construct New (1) The community must not have an A new airport CA NA CO
Airport existing NPIAS airport. constructed to FAA
design standards.
(Additional)
(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:
feasibility study.
F-4
Required Outcome
(d) The benefit-cost analysis (BCA)
are met.
Paragraph 3-54.
(6) Per 49 USC § 47106(c)(1)(A)(i), the
requirements.
d. Acquire (1) These requirements are typically for Acquisition of an ST NA AQ

Existing Airport a public sponsor acquiring a airport that meets, or
privately-owned airport or possibly can be upgraded to
another public-owned airport. meet FAA
standards.
(2) These requirements do not apply to
airports under the Military Airport
Program (those requirements are
contained in Section 3 of Chapter 6).
soon the ADO becomes aware that
acquisition is being considered and
(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.
F-5
Required Outcome
have been met:
feasibility study.
(c) If the airport is not in the NPIAS,
the ADO has obtained APP-400
(d) If the existing airport is in the
NPIAS, the ADO has obtained
ACO-100 and APP-500 approval
prior to programming the grant.
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.
*The current list of work codes can be obtained from the automated AIP system.
F-6
Appendix G. Runway Projects
G-1. How to Use This Appendix.
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 Must meet all of the following criteria… And is…
runway type…
a. Primary Runway (1) A single runway at an airport is eligible for Eligible

development consistent with FAA design and
engineering standards.
b. Crosswind Runway (1) One of the following two criteria are met: Eligible if justified
(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.
G-1
Table G-1 Runway Types and Eligibility
For the following Must meet all of the following criteria… And is…
runway type…
c. Secondary Runway (1) There is more than one runway at the airport. Eligible if justified.
(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.
d. Additional Runway (1) There is more than one runway on the airport. Ineligible.
(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.
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 The pavement condition index (PCI) must be less
project… than…
a. Reconstruction 55 (Poor)
b. Rehabilitation 70 (Fair)
c. Maintenance N/A
G-2
G-4. Project Requirements Tables.
In addition to the information provided in the above paragraph and the following tables,
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

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 EN RW CO (construct)

program for environmental reasons. The project must be a condition of
the environmental finding or 14 CFR part 150 program.
G-3
Table G-5 Runway Project Requirements
What Can Be Done Factors to Consider For Justification Required Usable Work Code*
If Justified and Eligibility Unit of Work and
Required
Outcome
a. Runway (1) Where a study is required to An operational CA RW CO

(Construct, demonstrate need, the FAA must runway constructed CA RW EX
Extend, Widen, have accepted the study and to FAA design ST RW CO
Strengthen, concurred with the need. standards, ST RW IM
Shift) including required EN RW CO
(2) For a runway capacity project
proper access,
intended to relieve scheduled See Table G-4
clear approaches,
commercial air service congestion or for the correct
shoulders, turf
add capacity for scheduled work code.
along edge of
commercial air service in
shoulders, signs,
metropolitan areas with a large or
marking, and
medium hub airport, the ADO must
lighting.
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
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
G-4
Required
Outcome
runway. In addition, the justification
must be based 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
for a public hearing for a new runway
or major runway extension as part of
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.
G-5
Required
Outcome
b. Groove Runway (1) Grooving is eligible as a stand-alone An operational SP RW FR

project at a commercial service runway with
airport as either part of a project on surface treatment.
the runway (code under that runway
project) or as a stand-alone 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
G-6
Required
Outcome
c. Rehabilitate (1) Maintenance is generally ineligible. An operational RE RW IM

Runway However, per 49 USC § 47102(3)(H), runway.
the exception is routine runway,
(Maintenance) 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.
G-7
Required
Outcome
d. Rehabilitate (1) A major portion of the pavement is A fully functional RE RW IM

Runway being addressed. runway with
extended useful
(2) The ADO concurs with the need for
(Seal Coat or life.
the project.
Resealing of
Joints in (3) The sponsor has satisfactorily
Concrete complied with grant assurances on
Pavement) pavement maintenance.
(4) The length and width of the
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.
e. Rehabilitate (1) The work must be supported a A fully functional RE RW IM

Runway Pavement Condition Index (PCI) or runway with
planning study. The ADO has the extended useful
(Rehabilitate,
option to consult AAS-100 for life.
Reconstruct)
assistance with justifying pavement
rehabilitation or reconstruction.
design standards.
requirements and that turf and
aggregate runway rehabilitation is
eligible) and examples that the ADO
G-8
Required
Outcome
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.
f. Construct, (1) The project must be supported by a A runway safety SA RW SF

Extend or regional determination under the area that
Improve a current version of FAA Order 5200.8, incorporates all of
Runway Safety Runway Safety Area Program, to the improvements
Area establish a safety area. outlined in the
regional
(For (2) Engineered Material Arresting
determination.
14 CFR part 139 Systems (EMAS) must be supported
certificated by a runway safety area
runways only) 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
G-9
Required
Outcome
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.
g. Construct, (1) The project must be supported by a A runway safety ST RW SF

Extend or regional determination under the area that
Improve a current version of FAA Order 5200.8, incorporates all of
Runway Safety Runway Safety Area Program, to the improvements
Area establish a safety area. outlined in the
regional
(For runways (2) Engineered Material Arresting
determination.
that are not Systems (EMAS) must be supported
14 CFR part 139 by a runway safety area
certificated) 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
G-10
Required
Outcome
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.
h. Runway Surface (1) The runway sensors must transit An operational ST RW SR

Condition airfield conditions so that the timing system that
Sensors of chemical applications may be successfully
determined. transmits runway
conditions,
(2) The ADO must have concurred that
indicates when
the local weather conditions justify
chemical treatment
the need for the equipment.
must be applied,
(3) The purpose is to ensure that aircraft and meets FAA
can land and take off safely.
G-11
Required
Outcome
Therefore, only runways are eligible standards.
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.
*The current list of work codes can be obtained from the automated AIP system.
G-12
Appendix H. Taxiway Projects
H-1. How to Use This Appendix.
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).
H-1
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.
listed in Table H-1. The ADO has the option to fund pavement work outside of these thresholds
Table H-1. Pavement Condition Index Requirements for Airfield Pavement

Projects
For the following type of airfield pavement The pavement condition index (PCI) must be less
project… than…
c. Maintenance N/A
H-4. Project Requirements Tables.
H-2
Table H-2 Distinctions between Construct, Extend, Widen, Strengthen,

Rehabilitate, Shift, and Remove
a. Construct Build a brand new taxiway.
b. Extend Add additional length to a taxiway.
c. Widen Increase the pavement width.

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

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 EN TW CO (construct)

H-3
Table H-4 Taxiway Project Requirements
Required
Outcome
a. Taxiway (1) The taxiway must connect runways, An operational CA TW CO

(Construct, taxiways, public-use aprons, or taxiway constructed CA TW EX
Extend, buildings eligible at that airport. to FAA design EN TW CO
Widen, standards, ST TW CO
(2) The length, width, and strength of the
Strengthen, including required ST TW IM
Shift) proper access,
critical aircraft justification per See Table H-3
shoulders, turf
Paragraph 3-11. The exception is if for the correct
along edge of
the project meets the requirements in work code.
shoulders, signs,
taxiway safety
design standards.
areas, marking,
(3) Taxiway lighting may be included for and lighting.
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).
b. Install (1) This is for a parallel taxiway required An operational SP OT VI

Infrastructure for an approved RNAV approach. taxiway constructed
to support to FAA design
(2) An approved RNAV approach is not
Area standards,
sufficient justification for a parallel
Navigation including required
taxiway. The length, width, and
(RNAV) proper access,
strength of the pavement work must
Approach shoulders, turf
still be based on critical aircraft
along the edge of
justification per Paragraph 3-11.
(Parallel the shoulders,
Taxiway) signs, marking, and
taxiway lighting.
H-4
Required
Outcome
c. Rehabilitate (1) Maintenance is generally ineligible. An operational RE TW IM

Taxiway However, per 49 USC § 47102(3)(H), taxiway.
the exception is routine runway,
(Maintenance) 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.
(3) The taxiway must connect runways,
taxiways, public-use aprons, or
buildings eligible at that airport.
H-5
Required
Outcome
d. Rehabilitate (1) A major portion of the pavement is A fully functional RE TW IM

Taxiway being addressed. taxiway with
extended useful
(2) The ADO concurs with the need for
(Seal Coat or life.
the project.
Resealing of
Joints in (3) The sponsor has satisfactorily
Concrete complied with grant assurances on
Pavement) pavement maintenance.
(4) The length and width of the pavement
work must be based on critical aircraft
justification per Paragraph 3-103-11.
The exception is if the project meets
the requirements in Paragraph 3-24 to
exceed FAA design standards.
and reconstruction.
H-6
Required
Outcome
e. Rehabilitate (1) The work must be supported a A fully functional RE TW IM

Taxiway Pavement Condition Index (PCI) or taxiway with
(Rehabilitate planning study. The ADO has the extended useful
or option to consult AAS-100 for life.
Reconstruct) assistance with justifying pavement
(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.
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.
(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.
H-7
H-8
Appendix I. Apron Projects
I-1. How to Use This Appendix.
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 flying public must 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.
listed in Table I-1. The ADO has the option to fund pavement work outside of these thresholds
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…
c. Seal Coat or Resealing of Joints in Concrete Pavement N/A
d. Maintenance N/A
I-1
I-5. Project Requirements Tables.
Table I-2 Distinctions between Construct, Expand, Strengthen, and Rehabilitate
Use the following If the project will…

description…
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.

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 EN AP CO (construct)

I-2
Table I-4 Apron Project Requirements
What Can Be Done If Factors to Consider For Required Usable Work Code*
Justified Justification and Eligibility Unit of Work and
Required
Outcome
a. Apron (1) The project cannot include An operational CA AP CO

(Construct, pavement for auto parking or apron constructed CA AP EX
Expand, other non-aeronautical uses. to FAA design ST AP CO
Strengthen) standards, ST AP IM
(2) The project cannot include
including required EN AP CO
pavement for exclusive use
proper access,
areas (must be open to the See Table I-3 for
shoulders, turf
public to park their aircraft). the correct work
along edge of
code.
(3) Cargo aprons are limited use shoulders, signs,
and the public is not allowed to marking, and
freely use the apron. However, lighting.
apron for freight or cargo
activity is eligible if the
opportunity to compete for use
of the apron is available.
b. Rehabilitate Apron (1) The project cannot include An operational RE AP IM

(Maintenance) pavement for auto parking or apron.
other non-aeronautical uses.
(2) The project cannot include
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.
I-3
Required
Outcome
c. Rehabilitate Apron (1) A major portion of the A fully functional RE AP IM

pavement is being addressed. apron with
(Seal Coat or extended useful
(2) The ADO concurs with the need
Resealing of Joints life.
for the project.
in Concrete
Pavement) (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.
pavement work must be based
on critical aircraft justification
per Paragraph 3-11. The
exception is if the project meets
the requirements in
design standards.
(7) Paragraph 3-6 contains
additional guidance (including
useful life requirements) and
examples that the ADO must
use to differentiate between
reconstruction.
I-4
Required
Outcome
d. Rehabilitate Apron (1) The project must not include A fully functional RE AP IM
(Rehabilitate or pavement for auto parking or apron with
Reconstruct) other non-aeronautical uses. extended useful
life.
(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
pavement work must be based
on critical aircraft justification
per Paragraph 3-11. The
exception is if the project meets
the requirements in
design standards.
(5) Paragraph 3-6 contains
additional guidance (including
useful life requirements) and
examples that the ADO must
use to differentiate between
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.
I-5
I-6
Appendix J. Airfield Marking, Signage, and Lighting Projects
J-1. How to Use This Appendix.
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.
J-1
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 Eligible. Note that the requirements in the current version of
a runway designation change Advisory Circular 150-5340-1 are not sufficient justification
based on magnetic variation as for this type of project. The designation change must be
required by the current version of required by the current version of FAA Order 8260.19, Flight
FAA Order 8260.19, Flight Procedures and Airspace. The correct code for this project is
Procedures and Airspace. 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 Eligible. Since this may be a small stand-alone grant, the
required by a change in airfield ADO must ensure that the minimum grant amount
geometry or new sign panel requirement in Paragraph 5-20 are be met. The correct code
specifications. 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 Not Eligible (but can be funded as an allowable cost).
associated with an AIP funded The cost to replace faded sign panels is considered to be
runway, taxiway, or apron project. 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-2
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
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.
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 SP XX XX

49 CFR § 47101(f) for a primary or secondary runway or
taxiway at a commercial service airport.
b. The project meets all of the associated eligibility SA XX XX

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. The 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.
c. The project is required to meet current FAA design standards ST XX XX

in accordance with applicable advisory circulars and does
not meet the above two sets of criteria.
J-3
Table J-4 Airfield Signage and Lighting Project Requirements
Required
Outcome
a. Install Guidance (1) If the airport is a 14 CFR part 139 Fully functional SP OT SG
Signs certificated airport, the sponsor guidance signs SA OT SG
must have included the proposed that meets FAA ST OT SG
signs in the sign plan, and the standards.
See Table J-3 for
FAA must have reviewed and
the correct work
accepted the airport sign plan.
code.
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.
J-4
Required
Outcome
b. Install Runway (1) Installation of runway lighting A fully functional SP RW LI

Lighting may include modifications of the runway lighting SA RW LI
airfield electrical vault as part of system that meets ST RW LI
the overall project. FAA standards.
See Table J-3 for
(2) The lighting must be supported the correct work
by night or instrument approach code.
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.
J-5
Required
Outcome
c. Rehabilitate (1) Rehabilitation of runway lights A fully functional RE RW LI

Runway Lighting may include replacing a runway lighting
significant number of fixture system that meets
lenses, transformers, and FAA standards.
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.
d. Install Land and (1) Justification for land and hold A runway lighting SP RW LI
Hold Short short (LAHSO) lights requires an system that allows SA RW LI
Lights approved LAHSO plan per the LAHSO at the ST RW LI
current version of FAA Order airport.
See Table J-3 for
7110.118, Land and Hold Short
the correct work
Operations.
code.
J-6
Required
Outcome
e. Install Runway (1) Per FAA policy, the runway must A fully functional SP RW SG
Distance-To-Go have turbojet aircraft operations. set of distance-to-
Signs go signs that meet
(2) These signs are also called
FAA standards.
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.
f. Improve Airport (1) The vault must serve eligible A fully functional ST OT IM
Miscellaneous airfield lighting. vault that meets
Improvements FAA standards.
(2) Rehabilitation of a vault must
include replacement of major
(Install/Rehabilit
equipment such as the
ate Airfield
regulators.
Lighting Vault)
(3) Rehabilitation must be supported
by analysis demonstrating a need
for rehabilitation and that
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).
J-7
Required
Outcome
g. Install Taxiway (1) Taxiway lighting is only justified A fully functional SP TW LI

Edge Lighting for taxiways that are associated taxiway lighting SA TW LI
with lighted runways. system that meets ST TW LI
FAA standards.
(2) Reflectors are eligible in lieu of See Table J-3 for
taxiway edge lights. the correct work
code.
h. Install Taxiway (1) Taxiway centerline lighting is only A fully functional SP TW LI

Centerline justified for taxiways that are taxiway lighting SA TW LI
Lighting associated with runways that system that meets ST TW LI
have centerline lighting. FAA standards.
See Table J-3 for
(2) One of the following conditions the correct work
must be met: code.
(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.
J-8
Required
Outcome
i. Rehabilitate (1) Taxiway lighting is only justified A fully functional RE TW LI

Taxiway Lighting for taxiways that are associated taxiway lighting
with lighted runways. Taxiway system that meets
centerline lighting is only justified FAA standards.
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
least five years.
J-9
Required
Outcome
j. Install Runway (1) Runway incursion lighting may A fully functional SA OT SG

Incursion include lighted X’s, runway status runway incursion
Lighting lights, runway guard lights, lighting system or
clearance bars, and/or stop bars. a lighted X that
(Including Lighted X’s may also be meets FAA
Lighted X’s) purchased. standards.
(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.
k. Install Runway (1) This is also referred to as A set of runway SA OT SG

Incursion enhanced taxiway centerline incursion (14 CFR part 139)
Marking marking. markings that
SP OT SG
meets FAA
(2) Runway incursion markings (non
standards and are
cannot be applied to select 14 CFR part 139
applied to all
airfield locations. They must be Commercial
runway holding
applied to every runway holding Service)
positions on the
position on the airport.
airport.
l. Install Surface (1) SMGCS lighting may include A complete SP OT SG

Movement runway guard lights, clearance SMGCS lighting
Guidance and bars, and/or stop bars. pattern that allows
Control System aircraft to taxi
(2) The airport must have an FAA
(SMGCS) from a Category
approved SMGCS plan.
Lighting II/ III runway to the
(3) The associated pavement must apron.
J-10
Required
Outcome
m. Install Apron (1) The apron must be eligible. An apron with ST AP LI

Edge Lights edge lights that
meet FAA
standards.
n. Install Apron (1) The added lighting must not An illuminated ST OT LI

Flood Lighting cause an adverse effect on apron area.
airport 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.
o. Install Terminal (1) The ADO must coordinate the An operational ST OT LI

Gate Position project with AAS-100 to ensure lead in system to
Lead-In Lights the added lighting will not cause an eligible gate.
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.
J-11
J-12
Appendix K. Navigational Aid (NAVAID) and Weather Reporting Equipment

Projects
K-1. How to Use This Appendix.
K-2. Installation of Instrument Landing Systems (ILS).
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, the 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-1
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.
K-2
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 SP XX XX

at a commercial service airport.
b. The project is needed to satisfy a safety issue identified by a SA XX XX

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.
c. The project is required to meet current FAA design standards ST XX XX

in accordance with applicable advisory circulars and does
not meeting the above to sets of criteria.
Table K-2 NAVAID and Weather Reporting Equipment Project Requirements
What Can Be Done If Factors to Consider For Justification Required Usable Work
Justified and Eligibility Unit of Work and Code*
Required Outcome
a. Install Instrument (1) The ADO must not program a A fully functional ST RW IN
Approach Aid ground-based ILS without specific ILS that meets FAA
written APP-1 approval. The standards.
(Instrument guidance for funding an ILS can be
Landing System) found in Paragraph K-2.
(2) The ADO must not program a
ground-based ILS unless the ADO
has received written notification
from the FAA Air Traffic
Organization (ATO) that the ATO
has determined that an Area
Navigation (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 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 ¼
mile and records 300 or more
annual instrument approaches to
the runway.
K-3
Required Outcome
(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.
K-4
Required Outcome
b. Install Instrument (1) The FAA Air Traffic Organization A fully functional ST RW IN
Approach Aid (ATO) must have designated the RVR that meets
runway as an instrument runway. FAA design
(Runway Visual standards.
(2) The visibility information is made
Range (RVR))
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.
c. Install (1) The airport rotating beacon A fully functional SP OT IN

Miscellaneous equipment must be necessary for airport beacon that ST OT IN
NAVAIDs visual approaches to the airfield at meets FAA design
See
night. standards.
Table K-1
(Airport Beacon)
(2) The airport must be open at night for the
and must have runway lights in correct
order to have a justified beacon. work code.
d. Install (1) The airport must be open at night A fully functional SP OT IN

Miscellaneous and must have runway lights in wind cone that ST OT IN
NAVAIDs order to justify a lighted wind cone. meets FAA
See
standards.
Table K-1
(Wind Cone)
for the
correct
work code.
K-5
Required Outcome
e. Install (1) Where warranted, segmented A fully functional SP OT IN

Miscellaneous circles used for landing direction, segmented circle ST OT IN
NAVAIDs traffic pattern indicators or right turn that meets FAA
See
indicators are allowed. standards.
Table K-1
(Segmented Circle)
for the
correct
work code.
f. Install Runway (1) The FAA Air Traffic Organization A complete ALS SP RW VI
Vertical/Visual (ATO) must have designated the installation with ST RW VI
Guidance System runway as an instrument runway. clear approaches
See
that reduces the
(2) Per APP-500 policy, an ALS is not Table K-1
(Approach Light minimums and
justified for AIP funding unless the for the
System (ALS)) meets FAA
airport will have a reduction in correct
standards.
minimums of at least ¼ mile. work code.
(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 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
K-6
Required Outcome
(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).
g. Install Runway (1) The FAA Air Traffic Organization A complete ODALS SP RW VI
Vertical/Visual (ATO) must have designated the installation with ST RW VI
Guidance System runway as an instrument runway. clear approaches
See
that reduces the
(2) The ODALS must result in a Table K-1
(Omni-Directional minimums and
reduction of minimums of at least for the
Approach Lighting meets FAA
¼ mile. correct
System (ODALS)) standards.
work code.
(3) An ODALS is only eligible on a
runway that either has a published
instrument approaches or is
forecast to have a published
instrument approaches within five
years.
(5) The airport cannot transfer the
ownership of these systems to the
ATO.
K-7
Required Outcome
h. Install Runway (1) This project will provide visual A fully functional SP RW VI
Vertical/Visual guidance on runways that are not REILS that meet ST RW VI
Guidance System equipped with an approach light FAA standards.
See
system.
Table K-1
(Runway End
(2) Per FAA policy, the ADO can fund for the
Identification Light
REILs at a nonprimary airport only correct
System (REILS))
if the REILS are funded using work code.
nonprimary entitlement funds only.
FAA Air Traffic Organization (ATO).
i. Install Runway (1) The precision approach path A PAPI system that SP RW VI
Vertical/Visual indicator (PAPI) is the only eligible meets FAA ST RW VI
Guidance System visual glide-slope system eligible standards.
See
for an airport holding a
Table K-1
(Visual Glide-Slope 14 CFR part 139 certificate.
for the
Indicator System
(2) Although there are some other correct
(PAPI))
older types of visual glideslope work code.
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.
FAA Air Traffic Organization (ATO).
(7) The design threshold crossing
K-8
Required Outcome
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.
j. Acquire Snow (1) The WSDDM equipment must be A fully functional ST EQ SN

Removal included in an FAA approved snow WSDDM system.
Equipment and ice control plan. If not, the
ADO must make this a requirement
(Weather Support in the grant offer.
to Deicing
Decision-Making)
k. Install Weather (1) The AJW-144 Weather Processors A fully functional, ST EQ WX

Reporting and Sensors – Non-Federal AWOS operational,
Equipment website identifies the reference commissioned and
documents containing the design, FAA-inspected
(AWOS III or installation, commissioning, and AWOS that meets
better) maintenance requirements for non- FAA design
Federal AWOS equipment. standards.
(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.
K-9
Required Outcome
(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 APP-500 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, APP-500 will
not rerun the BCA once the
analysis is completed.
(8) When preparing the BCA, APP-500
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
K-10
Required Outcome
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).
K-11
Required Outcome
(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.
l. Install Weather (1) The AJW-144 Weather Processors A fully functional, ST EQ WX

Reporting and Sensors – Non-Federal AWOS operational,
Equipment website identifies the reference commissioned and
documents for the design, FAA-inspected
(AWOS A, A/V, installation, commissioning, and AWOS that meets
I or II) maintenance requirements for non- FAA design
Federal AWOS equipment. standards.
(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
K-12
Required Outcome
manufacturers of FAA-certified
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.
m. Install (1) The requirements for parallel N/A N/A

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

obstructions to removal projects that are required
support Area for an approved RNAV approach
Navigation (RNAV) are provided in Appendix D.
Approach
o. Install Approach (1) APP-400 Coordination. The ADO A fully functional ST RW IN

Aid (and/or the regional office) must NextGen system
May be
coordinate with APP-400 and have that meets FAA
replaced
(NextGen received APP-400 and APP-500 standards.
with a new
Equipment such as written concurrence with the
work code.
Ground Based project.
Augmentation
(2) Equipment Location. AIP funding
System (GBAS)
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
K-13
Required Outcome
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 in-place
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 is
responsible for the maintenance
and operation of the approach aid.
ATO will not take over the
maintenance and operation of the
equipment under current NAS
strategic plans.
K-14
Appendix L. Safety and Security Equipment Projects
L-1. How to Use This Appendix.
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).
L-1
Table L-1 Requirements for Off-Airport Storage of ARFF Vehicles
The requirements include…
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 are
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 has 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.
L-2
Table L-2 Safety and Security Equipment Project Requirements
Required Outcome
a. Acquire Aircraft (1) The airport must currently hold a A fully operational SA EQ RF
Rescue & 14 CFR part 139 certificate. ARFF vehicle that
The ST EQ RF
Firefighting meets FAA design
(2) If an airport that does not hold is no longer
Vehicle standards.
14 CFR part 139 certificate, AAS-1 available
must have made an airport specific because it
determination that the vehicle will applied to a
contribute significantly to the safety situation that
or security at the airport (as allowed was in place
under 49 USC § 47102(3)(B)(ii)). prior to the
2004 revision
(3) 14 CFR part 139 sets forth
to 14 CFR
minimum extinguishing agents and
part 139.
water required for ARFF vehicles.
AIP funding is limited to the
minimum number and 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.
L-3
Required Outcome
(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.
L-4
Required Outcome
b. Acquire Aircraft (1) The airport must hold a A fully operational SA EQ RF

Rescue & 14 CFR part 139 certificate. structural firefighting
Firefighting vehicle that meets
(2) If an airport that does not hold
Vehicle FAA design
14 CFR part 139 certificate, AAS-1
standards.
must have made an airport specific
(Structural
determination that the vehicle will
Firefighting
contribute significantly to the safety
Vehicle)
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
L-5
Required Outcome
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.
c. Acquire Driver’s (1) The airport must have a A fully functional ST EQ MS

Enhanced Vision 14 CFR part 139 certificate and DEVS added to an
System (DEVS) published operations below 1200 existing ARFF
feet runway visual range. vehicle in
accordance with
(2) The primary fire station that
FAA standards.
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.
L-6
Required Outcome
d. Forward Looking (1) Forward looking infrared system A fully functional ST EQ MS

Infrared System (FLIRS) is a component of DEVS. A FLIRS added to an
stand-alone FLIRS mounted is existing ARFF
eligible for AIP eligible ARFF vehicle in
vehicles in accordance with the accordance with
current version of Advisory Circular FAA design
150/5210-19, Driver’s Enhanced standards.
Vision System.
e. Acquire Aircraft (1) The airport must hold a Protective clothing SA EQ RF

Rescue & 14 CFR part 139 certificate. that meets FAA
Firefighting standards.
Vehicle
(Protective
determination that the clothing will
Clothing)
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.
L-7
Required Outcome
f. Regional ARFF (1) Project costs may include land, the A fully operational ST OT RF
Training Facility burn area, maneuvering areas, a regional ARFF
control center, an ARFF vehicle training facility that
with capacity not to exceed 1,500 meets FAA
gallons, the vehicle bay(s), utilities, standards.
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.
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
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.
L-8
Required Outcome
g. Mobile ARFF (1) The airport has a 14 CFR part 139 A fully operational ST OT RF
Training Facility certificate and is required to comply mobile ARFF
with Index A or B ARFF standards. training facility that
meets FAA design
(2) The airport must be more than 100
standards.
miles from the nearest regional
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.
h. Acquire Aircraft (1) The airport must hold a A fully operational SA EQ RF

Rescue & 14 CFR part 139 certificate. piece of water
Firefighting rescue equipment
Vehicle that meets FAA
design standards.
(Water Rescue
determination that the equipment
Equipment)
will contribute significantly to the
safety or security at the airport (as
allowed under
49 USC § 47102(3)(B)(ii)).
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.
L-9
Required Outcome
i. Acquire (1) The power sweeper is for the A fully operational ST EQ MS

Equipment control of debris on the airport. sweeper that meets
FAA design
(2) Per FAA policy, eligibility is limited
(Power Vacuum standards.
as follows.
Sweeper for
Foreign Object (a) Where the primary areas are
Debris (FOD)) 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.
j. Acquire (1) AAS-100 has determined that FOD A fully operational ST EQ MS

Equipment detection equipment contributes fixed FOD Detection
“significantly to the safety or System that meets
(Acquire Fixed security of individuals and property” FAA standards.
Foreign Object at an airport as described in
Debris (FOD) 49 USC § 47102(3)(B)(ii).
Detection
(2) The airport must be a large hub
Equipment)
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.
L-10
Required Outcome
(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.
L-11
Required Outcome
k. Acquire (1) AAS-100 has determined that FOD A fully operational ST EQ MS

Equipment detection equipment contributes mobile FOD
“significantly to the safety or Detection System
(Acquire Mobile security of individuals and property” that meets FAA
Foreign Object at an airport as described in standards.
Debris (FOD) 49 USC § 47102(3)(B)(ii).
Detection
(2) The airport must be a large hub
Equipment)
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.
L-12
Required Outcome
(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.
L-13
Required Outcome
l. Acquire (1) On October 4, 2010, AAS-1 A fully operational ST EQ MS

Equipment determined that avian radar avian radar system
Note: Do not
systems contribute significantly to that meets FAA
use SA EQ
(Avian Radar the safety or security at an airport, standards.
MS. APP-500
System) which makes them eligible under
decided that
49 USC § 47102(3)(B)(ii).
ST EQ MS is
(2) The airport has a wildlife hazard the work code
management plan that has been that must be
accepted by the FAA. used.
(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
L-14
Required Outcome
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.
m. Acquire (1) The acquisition of squitters is Up to 75 squitter ST EQ MS

Equipment limited to the 35 ASDE-X equipped units installed and
airports or the 8 civil airports that operational in
(Initial Squitter are scheduled to receive ASSC. existing sponsor-
Acquisition) owned and operated
(2) APP-1 must select the specific
vehicles.
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) FAA Air Traffic Organization (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
L-15
Required Outcome
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.
n. Wildlife Hazard (1) Equipment for broadcasting distress A fully operational ST EQ MS

Reduction calls, exploding gas cannons, piece of equipment.
Equipment 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.
L-16
Required Outcome
o. Wildlife Hazard (1) The project must be recommended A completed project ST OT MS

Habitat by a wildlife hazard management that reduces wildlife
Modification plan or a written sponsor’s adoption attractants.
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.
p. Install Perimeter (1) TSA must have approved the A complete fencing SA EQ SE
Fencing required airfield access control project in installation that
by 49 CFR 1542 writing as being needed to meet the meets the
minimum requirements of 49 CFR part 1542
49 CFR part 1542. requirements.
(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.
q. Install Perimeter (1) The proposed fencing must be A complete fencing ST EQ SE

Fencing not identified on the approved airport installation that
Required by layout plan to be eligible. increases safety of
49 CFR part 1542 the airfield.
(2) If the purpose of the fence is to
discourage wildlife, the fence is not
L-17
Required Outcome
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 non-certificated
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.
L-18
Required Outcome
r. Command and (1) Command and Control Centers, or A fully operational ST BD MS

Control Centers, Emergency Operations Centers are command and
also known as not specifically required under control center
Emergency 49 CFR part 1542 and are not console for airfield
Operations consider security or safety security.
Centers equipment.
(2) The requirements for Command
and Control Centers or Emergency
Operations Centers are found in
Appendix O.
s. Security (1) The TSA must have approved, in Fully functional SA EQ SE

Enhancements writing, that the airport is required fingerprinting
by 49 CFR part 1542 to have a equipment.
(Fingerprinting badging system that requires
Equipment for background checks.
Background
(2) The type of equipment and quantity
Checks)
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.
t. Security (1) TSA must have approved the A fully operational SA EQ SE

Enhancements terminal access control system, in access control
writing, as being needed to meet system that meets
(Terminal Access the minimum requirements of 49 CFR part 1542.
Control) 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.
L-19
Required Outcome
u. Security (1) TSA must have approved the police A fully operational SA EQ SE
Enhancements vehicle, in writing, as being needed standard police
to meet the minimum requirements vehicle that meets
(Police Vehicle) of 49 CFR part 1542. 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.
v. Security (1) TSA have approved the badging Fully operational SA EQ SE

Enhancements equipment, in writing, as being badging equipment
needed to meet the minimum that meets
(Badging requirements of 49 CFR part 1542. 49 CFR part 1542.
Equipment)
w. Security (1) Although apron lighting may be a N/A N/A

Enhancements recommendation from TSA, a TSA
letter is not mandatory. Apron
(Apron Lights) lighting requirements are listed in
Table J-4.
L-20
Appendix M. Other Equipment Projects
M-1. How to Use This Appendix.
M-2. Project Requirements Table.
In addition to the information provided in the above paragraph and the following table,
Table M-1 Other Equipment Project Requirements
Required Outcome
a. Acquire Aircraft (1) The equipment must be owned by A fully functional ST EQ DI

Deicing Equipment the airport and be available on a piece of aircraft
non-exclusive use basis for any deicing equipment
aircraft owner. that meets FAA
design standards.
(2) Vehicles and equipment for aircraft
deicing and anti-icing on the
ground are eligible at any NPIAS
airport.
b. Acquire Interactive (1) The systems and software must be A fully functional OT EQ MS
Training System for federally required safety and interactive training
security requirements, or training system that meets
related to the Americans with FAA design
Disabilities Act and the Clean Air standards.
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 of the training system
has been met.
(4) New training modules to add new
eligible material are eligible.
c. Emergency (1) Fixed standby generators A fully functional ST EQ LI

Generator necessary to support the following emergency
(Acquire, Install or lighting on Cat II/III runways are generator that
Rehabilitate) eligible (not limited to entitlement meets FAA design
M-1
Required Outcome
funding): standards.
(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.
M-2
Required Outcome
d. Acquire Snow (1) For 14 CFR part 139 certificated A fully functional ST EQ SN
Removal airports: piece of snow
Equipment removal equipment
(a) Equipment required for clearing
that meets FAA
snow and ice from the
standards.
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
Airport Snow and Ice Control
Equipment.
(c) As of September 24, 2014,
Airport Field Condition
Assessments and Winter
Operations Safety and
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
M-3
Required Outcome
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
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
M-4
Required Outcome
the design requirements
when procuring the SRE.
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.
e. Acquire Friction (1) Only a self-contained device or a A fully functional ST EQ SR

Measuring towed device is eligible. Airports piece of friction
Equipment must provide their own towing measuring
vehicles for towed devices. equipment (if
towed, truck to be
(2) The airport must be a commercial
paid for with local
service airport, hold a
funds) that meets
14 CFR part 139 certificate, and
FAA design
have scheduled turbojet
standards.
operations.
(3) This equipment can be acquired for
use at multiple neighboring
airports. State aviation agencies
may sponsor such projects.
M-5
M-6
Appendix N. Terminal Building Projects
N-1. How to Use This Appendix.
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.
N-1
Table N-1 Public-Use Requirements for Terminal Buildings
The space must be public use as follows…
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.
N-2
Table N-3 Revenue Producing Eligibility and Conditions for Terminal Buildings
For the following Revenue producing And the following conditions apply…
size airports… areas are…
a. Large, medium, Ineligible N/A

or small hub
primary
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-3
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), only the demolition of the
impacted area is 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,
N-4
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-5
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 O.
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.
N-6
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-7
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 The following funding rules apply…

following
airport type…
a. Large, (1) Passenger Entitlements (Allowed). The ADO is only allowed to apply passenger
Medium entitlement funds at large, medium and small hub airports. 49 USC § 47119(c)(1)
and Small authorizes funds from amounts apportioned under 49 USC § 47114(c)(1), which is
Hub the statutory reference for passenger entitlement.
Airports
(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 (1) Passenger Entitlements (Allowed). The ADO can apply passenger entitlement
Primary funds at nonhub primary airports. 49 USC § 47119(c)(1) authorizes funds from
Airports 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).
these airports except as listed above.
N-8

following
airport type…
c. Nonprimary (1) Nonprimary Entitlement (Allowed). The ADO can apply nonprimary entitlement
Commercial funds at nonprimary commercial service airports. 49 USC § 47119(c)(5)
Service 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.
these airports except those listed above.
d. Reliever (1) Discretionary (Allowed up to $200,000 per fiscal year). 49 USC § 47119(c)(2)
Airports 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.
reliever airports except those listed above.
N-9

following
airport type…
e. General (1) Discretionary (Potentially allowed for a general aviation airport that has
Aviation dropped from commercial service). Per 49 USC § 47108(e)(2), if a commercial
Airports service airport (either a nonprimary commercial service or a primary airport)
(Excluding changes to a noncommercial service airport (either a reliever or general aviation
Reliever airport) when a phased terminal development project is underway, the project
Airports) 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.
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 (see Appendix A). ST TE XX
N-10
Table N-9 Terminal Project Requirements
What Can Be Done If Factors to Consider For Required Usable Work

Justified Justification and Eligibility Unit of Work and Code*
Required Outcome
a. Construct Terminal (1) The ADO must have concurred A complete terminal CA TE CO
Building with the sponsor’s terminal sizing building to allow the ST TE CO
methodology. The ADO and movement of
See
regional office may contact APP- passengers and
Table N-8
400 for assistance on terminal baggage.
for the
design and justification.
correct
(2) To the extent possible, the work code.
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
N-11

Required Outcome
walkway that is on airport is
eligible.
(7) Per 49 USC § 47119(a)(1)(A), the
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.
b. Expand Terminal (1) The requirements for Construct A completed terminal CA TE EX

Building Terminal Building apply. expansion with an ST TE EX`
increase in the
(2) This work code is used for See
number of gates,
physical expansion to increase the Table N-8
ticket counters, or
number of gates, ticket counters, for the
baggage carousels.
or baggage carousels. correct
work code.
(3) The ADO must coordinate all
associated grant.
N-12

Required Outcome
c. Modify Terminal (1) The requirements for Construct A completed CA TE IM

Building Terminal Building apply. modification of the ST TE IM
building that allows
(2) This may include modification See
for a specific
needed for security screening, Table N-8
additional function.
modifications to meet Federal for the
mandates, or modifications correct
needed to accommodate a new work code.
class of aircraft at the terminal.
associated grant.
d. Rehabilitate (1) The requirements for Construct A complete CA TE IM

Terminal Building Terminal Building apply. renovation that ST TE IM
extends the useful
(2) This may include the replacement See
life by the minimums
of eligible major capital equipment Table N-8
in Paragraph 3-12
systems that will extend the useful for the
(note that equipment
life of the terminal building or correct
may have a shorter
replacement of a fixed building work code.
minimum useful life
component.
than the building).
(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.
associated grant.
N-13

Required Outcome
e. Improve Terminal (1) The requirements for Construct A completed CA TE IM

Building Terminal Building apply. improvement of the ST TE IM
building that adds
(2) Justification for improvement of a See
new capabilities.
terminal building will rely on a Table N-8
terminal study that justifies for the
improvements based on improved correct
passenger or baggage handling. work code.
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).
associated grant.
N-14

Required Outcome
f. Acquire Passenger (1) This is eligible under A new lift device that ST TE MS
Lift Device 49 USC § 47102(3)(F). meets FAA design
standards.
(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.
N-15
N-16
Appendix O. Other Building Projects
O-1. How to Use This Appendix.
O-2. Aircraft Rescue & Firefighting 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 allowable.
b. Maintenance bay A maintenance bay may be allowable 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 allowable.
O-1
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…
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.
g. 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 allowable training space requirements.
h. Furnishings, appliances, and Minimum fixed furnishings and utilities to serve the building are
support utilities 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.
Table O-2 Distinctions between Construct, Expand, Modify, Improve, and

Rehabilitate
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.
O-2
Table O-3 Other Building Project Requirements (Other than Terminals)
Required
Outcome
a. Aircraft Rescue & (1) The building must be sized A fully functional SA BD EX
Firefighting according to the airport’s ARFF ARFF building.
Building index.
(Construct,
(2) Allowable building costs are
Expand, Modify,
discussed in Paragraph O-2.
Improve, or
Rehabilitate) (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).
b. Aircraft Rescue & (1) Total replacement of the ARFF A new, fully SA BD EX
Firefighting communication system is eligible for functional ARFF
Building a stand-alone project every communication
(Rehabilitate) 10 years and is coded as system.
rehabilitation.
(Replace
Communication
System)
c. Snow Removal (1) Snow removal equipment buildings A fully functional ST BD SN

Equipment Building are intended to protect the AIP snow removal
(Construct, funded snow removal equipment equipment building.
Expand, Modify, and materials.
Improve, or
(2) Funding snow and ice control
Rehabilitate)
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
O-3
Required
Outcome
other areas and equipment
recommended in the current version
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 3-39 must be
met.
(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
O-4
Required
Outcome
(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.
d. Construct Sand (1) Small stand-alone buildings for A fully functional ST BD SN

and Chemical storage of airport surface deicing sand and chemical
Storage Building chemicals and sand may be storage building.
(Construct, constructed if the size and design is
Expand, Modify, appropriate for the facility.
Improve, or
(2) This function may also be
Rehabilitate)
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.
e. Miscellaneous (1) One service facility (also called a A fully functional ST BD MS

Building maintenance bay) for maintaining maintenance or
(Construct, required safety and security service area or
Expand, Modify, equipment at airports with a building.
Improve, or 14 CFR part 139 certificate may be
Rehabilitate) funded. For AIP purposes, snow
removal equipment is not
(Maintenance Bay considered safety or security
or Service Facility) equipment. Only ARFF equipment is
allowed to be used to justify and
size the building.
(2) The facility must not exceed 1500
square feet in size and may be co-
located within an existing or new
O-5
Required
Outcome
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) Eligibility is limited to the
construction of bare space with
appropriate utilities.
(6) The building/area must not be used
for storage of any equipment or
materials. Limited use of the facility
to maintain other airport eligible
equipment is permitted provided
such use does not adversely affect
maintenance of the eligible ARFF
vehicles.
f. Miscellaneous (1) For MAP funded hangars, see A fully functional ST BD MS

Building Appendix T, as many of the aircraft hangar,
(Construct, following requirements do not apply FBO building, or
Expand, for MAP projects. aircraft
Rehabilitate) maintenance
(2) 49 USC § 47102(3)(24) specifically
building.
allows expansion and construction
(Aircraft Hangar,
of sponsor owned hangars that the
Fixed Based
ADO has determined will increase
Operator (FBO)
the revenue producing ability of the
Building, or Aircraft
airport. In addition,
Maintenance
49 USC § 47102(3)(24) allows
Building)
expansion and construction of
sponsor owned aeronautical support
facilities that the ADO has
determined will increase the
O-6
Required
Outcome
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
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.
(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
O-7
Required
Outcome
requirements outlined in the current
version of FAA Order 5190.6, FAA
Airport Compliance Manual.
(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
(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.
O-8
Required
Outcome
g. Miscellaneous (1) Only the portion of the building A fully operational ST BD MS

Building dedicated to airfield security is command and
(Construct, eligible. By FAA policy, this only control center
Expand, Modify, includes the prorated building cost console for airfield
Improve, or for a single position at the console security.
Rehabilitate) and must not include the cost for
equipment or furniture that is not
(Command and fixed or mounted. In addition, the
Control Center or requirements for including ineligible
Emergency or non-AIP funded work in the
Operations Center) contract in Paragraph 3-39 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.
h. Miscellaneous (1) If an airport proposes state Construction or ST BD MS

Building apportionments for these projects, equipment to
(Construct, those funds may be used provided support a contract
Expand, Modify, the ADO consults with the state control tower that
Improve, or aviation official and obtains the meets FAA
Rehabilitate) state’s support for the project as standards.
part of its airport capital
(Contract Air improvement plan. State
Traffic Control apportionment funds may only be
Tower (ATCT)) used on projects that are to be
undertaken in the future rather than
O-9
Required
Outcome
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
O-10
Required
Outcome
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
(10)The ATCT must be based on the
6480.4, Air Traffic Control Tower
Siting Process.
i. Law Enforcement (1) The only eligible law enforcement N/A N/A
Facilities 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).
O-11
O-12
Appendix P. Roads and Surface Transportation Projects
P-1. How to Use This Appendix.
P-2. Project Requirements Tables.
Table P-1 Distinctions between Construct, Expand, Modify, Improve, and

Rehabilitate
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 Road 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
P-1
Table P-3 Roads and Surface Transportation
Required Outcome
a. Access Road (1) The terminal development A complete CA GT AC

(Construct, definition in Appendix A defines roadway access OT GT AC
Expand, Modify, which portion of the access road is system that ties the
See
Improve, or treated as terminal development public highway to
Table P-2
Rehabilitate) and therefore is subject to the the airport.
for the
funding restrictions for terminal
correct
development in Table N-7.
work code.
(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
P-2
Required Outcome
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
P-3
Required Outcome
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.
rehabilitate is listed in Table P-1.
b. Service Road (1) Airfield service roads are eligible as A fully functional OT GT SV
(Construct, follows: service road that
Expand, Modify, provides access to
(a) A service road for ARFF
Improve, or the intended area.
access to a runway or runway
Rehabilitate)
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
P-4
Required Outcome
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.
c. Terminal People (1) Per FAA policy, terminal people A fully functional CA GT PM
Mover (Construct, movers are treated the same as airport people OT GT PM
Expand, Modify, access roads. As such, per mover.
See
Improve, or 49 USC § 47102(28), terminal
Table P-2
Rehabilitate) people movers are included in the
for the
definition of terminal development
correct
and must follow the terminal
work code.
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.
P-5
Required Outcome
(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
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
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.
P-6
Required Outcome
d. Access Rail (1) Per FAA policy, access rails are A fully functional CA GT RL
(Construct, treated the same as access roads. access rail system. OT GT RL
Expand, Modify, As such, per 49 USC § 47102(28),
See
Improve, or access rails are considered to be
Table P-2
Rehabilitate) terminal development. Therefore,
for the
all funding restrictions for terminal
correct
development apply.
work code.
(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
met.
P-7
P-8
Appendix Q. Land Projects
Q-1. How to Use This Appendix.
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.
Q-1
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.
Q-2
Table Q-2 Types of Land Interests
For the following The following applies…

type of land
interest…
a. Fee Simple. This is the preferred land interest for AIP funded projects.
b. Easements and In some instances, a lesser property interest may be appropriate if the interest
Lesser Interests. 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-3
Q-11. Project Requirements Tables.
Table Q-3 Land Work Codes
If the project is for… Use the following work codes…
a. Land or easement acquisition The work code for the associated project
for a specific AIP eligible project.
b. Land or easement acquisition ST LA DV (Acquire Land for Development)

for multiple AIP eligible projects. ST LA DV (Acquire Easement for Development)
c. Land acquisition for airport purposes (as ST LA MS (Acquire Miscellaneous Land)

defined in Appendix A) that are not AIP eligible.
Table Q-4 Land Project Requirements
Required Outcome
a. Acquire Land or (1) The acquisition must meet the Sponsor owned See
Easements requirements of 49 CFR part 24, land or easement Table Q-3
the current version of FAA Order with good title. for the
5100.37, Land Acquisition and correct
Relocation Assistance for Airport work code.
Projects, and in the current version
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
Q-4
Required Outcome
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.
b. Lease Publically (1) These are rare, so the ADO must A long term lease See
Owned Land contact APP-400 for guidance to that helps ensure Table Q-3
ensure that all of the necessary adequate rights for the
requirements are being met. needed to operate correct
the airport. work code.
(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
(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
Q-5
Required Outcome
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
(13)The sponsor must certify that the
being met.
(14)The Exhibit A must be updated
c. Exchange Land or (1) These are rare, so the ADO must Sponsor owned See
Easement contact APP-400 for guidance to land or easement Table Q-3
ensure that all of the necessary with good title. for the
requirements are being met. correct
work code.
(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
Q-6
Required Outcome
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
being met.
d. Acquire Land or (1) Land acquisition and easements for Sponsor owned ST LA SZ
Easement for approaches are eligible for the land or easement
Approaches following: with good title.
Circular Surfaces. Approach
surfaces in the current version
of Advisory Circular 150/5300-
13, 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.
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
Q-7
Required Outcome
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.
(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.
requirements and use the work
Q-8
Required Outcome
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.
e. Acquire Land for (1) The requirements for this type of N/A N/A
Noise Compatibility land are contained in Appendix R.
Q-9
Q-10
Appendix R. Noise Compatibility Planning/Projects
R-1. How to Use This Appendix.
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-1
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
R-2
as substantial. The exception is for noise mitigation projects in an environmental record of

decision for an airport development project.
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-3
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 the reasonable number of additional 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 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.
R-4
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 than 10% 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.
R-5
Table R-4 Pre- and Post-Testing Criteria for Noise Insulation Projects
For the following… The requirement is…
a. Published (1) In 1992, the FAA adopted guidance on test sampling frequency and other
Guidance 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 (1) The sponsor must submit the proposed testing protocol to the ADO.
Requirements for
(2) The ADO has the option to review the testing protocol.
submitting
Testing Protocol (3) After ADO review or after the ADO has indicated that the testing protocol will
to the ADO not be reviewed, the sponsor will then noise insulate the residences in the
testing phase.
c. First Step – Initial (1) The first step of a noise insulation program is generally the initial testing
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
R-6
Table R-4 Pre- and Post-Testing Criteria for Noise Insulation Projects
For the following… The requirement is…

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 - (1) The sponsor must review the results to determine if there is a need to test
ADO and additional residences.
Sponsor Review
(2) The ADO has the option to review and approve or disapprove all sponsor
of Initial Testing
revisions to the sampling program.
Results
e. Special (1) A resident may request that their residence be tested specifically. This may
Circumstance – be because of the condition of the home, or because the resident believes
Resident that their residence will test differently than others. These additional tests
Requests Specific are generally allowable. However, if an additional residence is tested, it
Testing must be tested both before and after any noise insulation work to ensure the
5 dB NLR is achieved.
f. Final Step – (1) After the completion of the testing phase, the sound insulation program will
Completing the begin for the neighborhood. In these later phases, the sponsor is still
Testing Phase 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.
document. In addition 5 USC § 552a(e), The Privacy Act of 1974, prohibits the unnecessary
R-7
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
Table R-5 Noise Compatibility Planning/Project Work Codes
If the noise mitigation planning and implementation project is Use the following work
defined by where it is in the DNL, and is… 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
Required Outcome
a. Conduct Noise (1) The study and noise exposure An FAA approved EN PL NO
Compatibility maps must comply with the noise compatibility
Program Study requirements of 14 CFR part 150. program study and
FAA accepted noise
(14 CFR part 150 exposure maps.
Study)
b. Conduct Noise (1) The noise exposure map (NEM) New FAA accepted EN PL NO
Compatibility Plan update must comply with the noise exposure
Study requirements of maps.
14 CFR § 150.21(d).
(Stand-Alone
(2) Per 14 CFR § 150.21(a)(1), the
Noise Exposure
noise exposure levels must be
Map Update)
based on forecast aircraft
operations at the airport for a
forecast period that is at least five
R-8
Required Outcome
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.
c. Conduct Noise (1) The compatible land use planning is An FAA accepted EN PL NO
Compatibility Plan for an area around a large or (and airport
Study medium hub airport. approved)
compatible land use
(2) The airport has not submitted an
(Compatible Land plan with a capital
airport noise compatibility program
Use Plan by State improvement plan
to the FAA under 14 CFR part 150,
and Local containing the plan
or has not updated its approved
Governments per measures.
noise compatibility program within
49 USC § 47141)
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).
R-9
Required Outcome
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.
sponsor must include evidence of
public involvement in the land use
plan.
R-10
Required Outcome
(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.
d. Noise Mitigation (1) Noise mitigation projects approved A noise mitigation The work
in an environmental record of measure that meets code of the
(Required by an decision for an AIP eligible project the requirements of associated
Environmental is an allowable cost (or phase) of the record of AIP eligible
Record of the AIP eligible project per decision. project
Decision) Paragraph R-2. must be
used
e. Acquire Land for (1) The project must be included in an Sponsor owned land EN LA 60
Noise FAA approved 14 CFR part 150 with good title that EN LA 65
Compatibility program or an FAA accepted will allow the EN LA 70
compatible land use plan. sponsor to clear the EN LA 75
(To Change Land noncompatible land
(2) The land must be included on the See
Use) use.
Noise Land Inventory Map and the Table R-5
Noise Land Reuse Plan. Noise for correct
Land Management and work code
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
(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
R-11
Required Outcome
do not apply to acquisition projects.
(6) The project may include residential
relocation.
with the number of people that have
benefited.
(8) The acquisition must meet the
requirements of 49 CFR part 24, the
Projects, and the current version of
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.
f. Acquire Easement (1) The project must be included in an A sponsor owned EN LA 60

for Noise FAA approved 14 CFR part 150 easement with good EN LA 65
Compatibility program or an FAA accepted title. EN LA 70
compatible land use plan. EN LA 75
(No Change in
(2) Per 49 USC § 47141(f), grants for See
Land Use)
projects approved under an FAA Table R-5
accepted compatible land use plan for correct
are only allowable until work code
(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
R-12
Required Outcome
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
Projects, and the current version of
being met.
(7) The acquisition must meet all other
applicable requirements in
Appendix Q.
(8) The project must meet the general
Paragraph R-2.
g. Noise Mitigation (1) The project must be included in an A residence that has EN HO 60
Measures for FAA approved 14 CFR part 150 been mitigated to EN HO 65
Residences program or an FAA accepted 14 CFR part 150 EN HO 70
compatible land use plan. requirements. EN HO 75
(Full Sound
(2) Per 49 USC § 47141(f), grants for See
Insulation
projects approved under an FAA Table R-5
Package)
accepted compatible land use plan for correct
are only allowable until work code.
(3) The project must meet the two-
stage eligibility test. First the
property must be in an eligible noise
R-13
Required Outcome
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, weather-
stripping, 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.
R-14
Required Outcome
(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
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
R-15
Required Outcome
classified as permanent if they meet
construction guidelines applied to
permanent structures.
Paragraph R-2.
h. Noise Mitigation (1) The residence must not have A residence that has EN HO 60
Measures for continuous positive ventilation and been mitigated to EN HO 65
Residences when tested, must demonstrate 14 CFR part 150 EN HO 70
interior noise levels less than 45 dB. requirements. EN HO 75
(Positive
(2) Because the interior noise See
Ventilation
measurements are conducted with Table R-5
Package Only)
“windows closed”, there may be for correct
situations where a residence does work code.
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
ventilation system in place even if
the system is inoperable, older, or
does not meet the current building
R-16
Required Outcome
code standards for air exchanges.
Paragraph R-2.
i. Noise Mitigation (1) The project must meet the two- A public building that EN PB 60
Measures for stage eligibility test. First the has been mitigated EN PB 65
Public Buildings property must be in an eligible noise to 14 CFR part 150 EN PB 70
contour threshold (per requirements. EN PB 75
(Full Sound Paragraph R-6) and second, the
See
Insulation property must meet the interior
Table R-5
Package) noise level requirement (per
for correct
Paragraph R-8).
work code
(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, weather-
stripping, 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
R-17
Required Outcome
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
R-18
Required Outcome
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
agreements locally, exclusive of
FAA grant stipulations.
with the number of students
benefitting.
Paragraph R-2.
j. Noise Mitigation (1) The building must not have A public building that EN PB 60
Measures for continuous positive ventilation and has been mitigated EN PB 65
Public Buildings when tested, must demonstrate to 14 CFR part 150 EN PB 70
interior noise levels less than 45 dB. requirements. EN PB 75
(Positive
(2) Because the interior noise See
Ventilation
measurements are conducted with Table R-5
Package Only)
“windows closed,” there may be for correct
situations where a public building work code
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
R-19
Required Outcome
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
ventilation system. It is not
available to structures that have an
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.
Paragraph R-2.
k. Install Outdoor (1) The project must be included in an A completely EN OT NO

Noise Monitoring FAA approved 14 CFR part 150 operational portable
System/Equipment Noise Compatibility Program or an outdoor noise
FAA accepted compatible land use monitoring system
(Portable Noise plan. that meets the
Monitoring System requirements of
and Equipment 14 CFR part 150.
(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.
R-20
Required Outcome
(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.
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.
Paragraph R-2.
R-21
Required Outcome
l. Install Noise (1) The project must be included in an A completely EN OT NO

Monitoring FAA approved 14 CFR part 150 operational fixed
System/Equipment program or an FAA accepted noise monitoring
compatible land use plan. system that provides
(Fixed Noise regular reporting of
Monitoring System noise events.
and Equipment)
(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.
copies of noise monitoring data on
R-22
Required Outcome
request.
Paragraph R-2.
m. Noise Mitigation (1) The project must be approved in a A fully functional EN OT MS

Measures 14 CFR part 150 program. noise reduction
structure that meets
(2) Noise barriers, earth berms, wall
(On-Airport Noise the requirements of
structures, hush houses, ground
Barriers) 14 CFR part 150.
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.
Paragraph R-2.
R-23
Required Outcome
n. Noise Mitigation (1) These are rare, so the ADO must An airfield or EN OT MS
Measures contact APP-400 for guidance to NAVAID installation
ensure that all of the necessary that meets FAA
(Runway and requirements are being met. design standards.
Taxiway
(2) The project must be approved in a
Construction)
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.
Paragraph R-2.
o. Conduct (1) The requirements for environmental N/A N/A

Environmental studies for flight procedure
Study for Flight approvals are provided in
Procedures Appendix S.
Approved in a
14 CFR part 150
Study
R-24
Appendix S. Environmental Planning/Mitigation Projects
S-1. How to Use This Appendix.
S-2. Conditions for Posting Planning Documents on the Internet.
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.
Table S-1 Environmental Planning/Mitigation Project Requirements
What Can Be Done If Factors to Consider For Justification Required Usable Work Code*
Justified and Eligibility Unit of Work and
Required
Outcome
a. Conduct (1) The project must follow the A completed EN PL MA

Environmental requirements of the current version environmental
Study of FAA Order 5050.4, National study that has
Environmental Policy Act (NEPA) been approved by
Implementing Instructions for the FAA.
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
S-1
Required
Outcome
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.
b. Conduct (1) Per 49 USC § 47504(e)(1), the A completed EN PL NO

Environmental project must be for the FAA to environmental
Study for Flight complete an environmental review study that has
Procedures for flight procedures that have been been approved by
Approved in a approved by the FAA in a noise the FAA.
14 CFR part 150 compatibility plan study
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.
S-2
Required
Outcome
c. Conduct/Update (1) 49 USC § 47102(5)(B), makes A completed PL PL MS

Miscellaneous development of an environmental environmental
Study management system (EMS) eligible management
as airport planning. system document
(Environmental that meets FAA
(2) The airport must be a medium or
Management advisory circular
large hub airport.
System) requirements.
(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.
d. Conduct/Update (1) 49 USC § 47102, makes A completed PL PL MS

Miscellaneous construction, reconstruction, repair drainage study
Study or purchasing capital equipment for that is acceptable
meeting the requirements of to the ADO.
(Conduct Drainage 33 USC § 1251, Federal Water
Study) Pollution Control Act eligible. A
drainage study may be required to
determine the means of complying
with this Act.
e. Conduct Airport (1) Per 49 USC § 47140a(a), the A completed EN PL ES

Energy Efficiency project must assess the airport’s airport energy
Assessment energy requirements, including efficiency study
heating and cooling, base load, that is acceptable
back-up power, and power for on- to the ADO.
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
S-3
Required
Outcome
APP-400 for guidance.
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.
f. Energy Efficiency (1) A completed airport energy A fully functional EN EQ MS

Equipment/ efficiency assessment that is project that
Infrastructure acceptable to the ADO is a increases the
prerequisite for these projects. energy efficiency
of airport power
(2) As of the publication date of this
sources.
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.
S-4
Required
Outcome
g. Airport (1) The FAA has determined that this A completed EN PL ES

Sustainability Plan is airport planning under study that the
49 USC § 47102(5) and is no ADO has officially
(Note that the longer a pilot program as of fiscal accepted.
project name, year 2012.
Identify the Airports
(2) Until told otherwise by APP, the
Environmental
ADO must obtain approval of the
Footprint was only
scope from APP-400 prior to
for the pilot
programming these types of
program and is no
projects.
longer in use)
(3) The term sustainability master plan
refers to a traditional master plan
that incorporates sustainability,
whereas an airport sustainability
plan is a stand-alone 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 APP-
400.
h. Construct Deicing (1) 49 USC § 47102 makes A fully functional EN OT DI

Containment construction, reconstruction, repair deicing
Facility or purchasing capital equipment for containment
meeting the requirements of facility that meets
33 USC 1251, Federal Water FAA standards.
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.
S-5
Required
Outcome
i. Environmental (1) This is also referred to as a glycol A fully functional EN OT MT

Mitigation vacuum. glycol recovery
truck that meets
(2) 49 USC § 47102(3)(F) and (G)
(Purchase Glycol FAA standards.
makes construction, reconstruction,
Recovery Truck)
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.
j. Environmental (1) Environmental mitigation projects An environmental The work

Mitigation (such as wetland mitigation) mitigation code of the
approved in an environmental measure that associated
(Required by an determination for an AIP eligible meets the AIP eligible
Environmental project is and allowable cost (or requirements of project must
Determination) phase) of the AIP eligible project. the environmental be used
determination.
(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.
k. Voluntary Airport (1) The ADO must coordinate all A fully functional EN EQ MS
Low Emissions proposed projects with APP-400 VALE
(VALE) and receive their approval for the infrastructure.
Infrastructure 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.
S-6
Required
Outcome
l. VALE Vehicle (1) The ADO must coordinate all A fully functional EN EQ MS
proposed projects with APP-400 VALE vehicle.
and receive their approval for the
grant.
(2) A large volume of guidance on this
subject is available at the Airports
Organization website.
m. Zero Emissions (1) The ADO must coordinate all Fully functional EN EQ ZE
Infrastructure proposed projects with APP-400 zero emissions
and receive their approval for the infrastructure.
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.
n. Zero Emissions (1) The ADO must coordinate all A fully functional EN EQ ZE
Vehicle proposed projects with APP-400 zero emissions
and receive their approval for the vehicle.
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.
S-7
S-8
Appendix T. Military Airport Program Projects
T-1. How to Use This Appendix.
T-2. Project Requirements Tables.
Table T-1 Distinctions between Construct, Expand, Modify, Improve, and

Rehabilitate
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.
T-1
Table T-2 Military Airport Program Project Requirements (for typical projects)
Required Outcome
a. All regularly eligible (1) Unless otherwise specified in this Same as for the Same as
AIP projects table, all of the justification and regularly eligible for the
eligibility factors that would AIP project. regularly
normally be associated with the eligible AIP
project, airport, and sponsor apply. project.
(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.
T-2
Required Outcome
b. Miscellaneous (1) The normal AIP restrictions for A fully functional ST BD MS

Building (Construct, hangars do not apply (such as the aircraft hangar.
Expand, Modify, requirement to meet airside needs,
Improve, or the restriction on discretionary, the
Rehabilitate) restriction by funding type, and the
restriction by airport type).
(Hangar)
(2) Except as noted above, all of the
justification and eligibility factors
that would normally be associated
with the project, airport, and
sponsor apply.
programmed.
(5) Per 49 USC § 47118(f), total MAP
per year per airport for
feet or less.
T-3
Required Outcome
c. Miscellaneous (1) The cargo building must not be A fully functional ST BD MS

Building (Construct, exclusive use (see Appendix A for cargo building.
Expand, Modify, a definition and references on
Improve, or exclusive use).
Rehabilitate)
(2) The facility must be 50,000 square
feet or less.
(Cargo Building)
sponsor apply.
programmed.
feet or less.
T-4
Required Outcome
d. Construct Utilities (1) Eligible costs include utility A fully functional OT OT FF

upgrades necessary to meet code utility system.
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.
sponsor apply.
programmed.
(5) Per 49 USC § 47118(e), total MAP
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
feet or less. These limits include
the costs of utility projects.
T-5
Required Outcome
e. Parking Lot (1) The parking lot must be a surface A fully functional OT OT PA
(Construct or parking lot. parking lot.
Rehabilitate)
(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).
sponsor apply.
programmed.
feet or less.
T-6
Required Outcome
f. Fuel Farms (1) The normal AIP restrictions for fuel A fully functional OT OT FF
(Construct, Repair, farms do not apply (such as the fuel farm.
or Improve) restriction by airport type and the
restriction against revenue
production).
sponsor apply.
programmed.
feet or less.
(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).
T-7
Required Outcome
g. Operational and (1) The airport cannot be a commercial An airport that The ADO
Maintenance service airport. remains open. must
Expenses (per contact
(2) The ADO must restrict the grant
49 USC § 47117(e) APP-520
amount for this type of work to
(1)(B)) for the
$30,000 in any fiscal year.
correct
(3) The FAA must have determined work code.
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.
programmed.
T-8
Required Outcome
h. A project to (1) APP-1 must have designated the A completed project Same as
preserve or airport as a safety critical airport. that meets for the
enhance minimum 49 USC § 47118(h). regularly
(2) The APP-500 must have officially
airfield eligible AIP
approved the project for MAP
infrastructure under project.
funding before the grant is
49 USC § 47118(h)
programmed.
(Safety Critical (3) The normal AIP restrictions for
Airports) 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.
T-9
T-10
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.
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.
U-1
Table U-1 Sponsor Requirements Regarding Suspension or Debarment
For the following… The sponsor requirements include…
a. The sponsor is awarding a 2 CFR part 180, OMB Guidelines to Agencies on Governmentwide
contract. 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 If the Federal government suspends or debars a person or company

currently working on an AIP while the person or company is working on an AIP funded project, the
project is suspended or sponsor must follow the procedures in 2 CFR part 180 (Subpart C)
debarred. 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 If the sponsor becomes aware of this situation, the sponsor must
company might need to be pursue their own contractual remedies and has the option to contact
suspended or debarred. the ADO with this information.
d. The sponsor has suspended Per the current version of DOT Order 4200.5, Suspension and
or debarred a person or Debarment Procedures and Ineligibility, the sponsor must notify the
company. 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-2
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.
§ 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.
U-3
(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 cost-
effective 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.
U-4
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.
U-5
Table U-3 AIP Handbook Clarification of 2 CFR § 200.318 - General Procurement

Standards
(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.
U-6
Table U-3 AIP Handbook Clarification of 2 CFR § 200.318 - General Procurement

Standards
(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.
§ 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
U-7
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
U-8
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
(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.
U-9
Table U-4 AIP Handbook Clarification of 2 CFR § 200.319 - 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.
§ 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.
U-10
Table U-5 AIP Handbook Clarification of 2 CFR § 200.320 - Methods of

Procurement to be Followed
(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.
(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.
U-11
Table U-6 AIP Handbook Clarification of 2 CFR § 200.320(a) - Procurement by

Micro-Purchases
(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.
(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
(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-12
U-15. 2 CFR § 200.320(c) - Procurement by Sealed Bids (Formal Advertising).
(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.
U-13
Table U-8 AIP Handbook Clarification of 2 CFR § 200.320(c) - Procurement by

Sealed Bids (Formal Advertising)
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.
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.
U-14

(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.
U-15

(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.
(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 cost-
reimbursement 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
U-16
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
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
st
Act for the 21 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.
U-17

(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-a-fixed-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
U-18

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
U-19

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 non-
standard 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
U-20

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.
(e) [Reserved]
U-18. 2 CFR § 200.320(f) - Procurement by Noncompetitive Proposals.
(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:
U-21
(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 2 CFR § 200.320(f) - Procurement by Noncompetitive
Proposals
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.
specifications, the engineer’s report, cost analysis, and any other items that make up the procurement
package.
U-22

Proposals
(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.
U-23

Proposals
(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.
§ 200.321Contracting 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;
U-24
(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
(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 race-neutral 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.
§ 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.
U-25
Table U-12 AIP Handbook Clarification of 2 CFR § 200.322 - Procurement of

Recovered Materials
(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.
§ 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.
U-26
Table U-13 AIP Handbook Clarification of 2 CFR § 200.323 - Contract Cost and
Price
(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.
For the following project type… The independent estimate method

is…
Land and easement acquisition Appraisals and review appraisals
Equipment acquisition and construction Engineer’s estimate
Negotiated professional services (such as Independent fee estimate

consultant costs)
Non-negotiated services (such as newspaper Advertised pricing

advertisements and rental of facilities for a public
hearing)
Non-negotiated service based on law or regulation Not applicable

(such as utility work by the utility company or a
reimbursable agreement with the FAA Air Traffic
Organization (ATO))
(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.
U-27
Table U-13 AIP Handbook Clarification of 2 CFR § 200.323 - Contract Cost and
Price
(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.
§ 200.324 Federal awarding agency or pass-through entity review.
U-28
(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 self-
certification 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.
U-29
Table U-14 AIP Handbook Clarification of 2 CFR § 200.324 - Federal Awarding

Agency or Pass-Through Entity Review
(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.
§ 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.
U-30
Table U-15 AIP Handbook Clarification of 2 CFR § 200.325 - Bonding

requirements
(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.
§ 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.
U-31
(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 60-
1.4(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.
U-32
(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.
U-33
Table U-16 AIP Handbook Clarification of 2 CFR § 200.326 - Contract Provisions

2 CFR § 200.326 - Contract provisions
(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 non-
construction 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.
U-34
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 V-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 Ad valorem tax. 7.5% of ticket price.

Ticket Tax
(including areas of
Canada and Mexico not
more than 225 miles
from the continental
United States)
b. Domestic Passenger A domestic segment is a flight leg Rate is indexed by the

Flight Segment consisting of one takeoff and one Consumer Price Index starting
landing by a flight. January 1, 2002.
c. Passenger Ticket Tax Assessed on tickets on flights that 7.5% of ticket price (same as
at Rural Airports begin/end at a rural airport. passenger ticket tax).
(having less than
Rural airports are airports having less Flight segment fee does not
100,000 boardings and
than 100,000 enplanements during apply.
more than 75 miles
second preceding calendar year, and
from an airport with
either 1) not located within 75 miles of
100,000 boardings)
another airport with 100,000
enplanements, 2) is receiving essential
air service subsides, or 3) is not
connected by paved roads to another
airport.
d. International Departure Head tax assessed on passengers Rate is indexed by the

and Arrival Taxes arriving or departing for foreign Consumer Price Index starting
destinations (and U.S. territories) that January 1, 1999.
are not subject to the passenger ticket
tax.
V-1
Table V-1 Revenue Sources for the Airport and Airway Trust Fund
Aviation Taxes Comment Tax Rate
e. Flights between the Rate is indexed by the

Continental United Consumer Price Index starting
States and Alaska or January 1, 1999.
Hawaii
f. Frequent Flyer Tax Ad valorem tax assessed on mileage 7.5% of value of miles.
awards (for example, credit cards).
g. Domestic Freight and 6.25% of amount paid for the

Mail transportation of property by air.
h. General Aviation Fuel Aviation gasoline – 19.3¢ per

Tax 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.
V-2
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. 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-1
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 Submit an initial plan to the FAA. The FAA will send written
airport and has not submitted notification letters to airports that will be required to file initial
an initial Competition Plan. 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 Submit the update within 18 months of the latest FAA approval letter.
initial plan, and the sponsor is The FAA will send written notification letters to airports that will be
on the first or second update. 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 Submit an update if either of the following special conditions arise.
initial plan and two updates. 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 discuss any changes
since the previous submittal as well as and any issues that were
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-2
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), Per FAA policy, the following information must be provided to meet
Competition Plans must the requirements in 49 USC § 47106(f):
include…
a. The availability of airport (1) Number of gates available at the airport by lease arrangement, i.e.,
gates and related exclusive, preferential, or common-use, and current allocation of
facilities. 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 Program
Assurance # 7 (Competitive Access) 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. The current version of
the assurances can be obtained from the FAA Office of Airports
website (see Appendix B for link).
(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
Program Assurance #7 (Competitive Access) operated to convert
previously exclusive-use gates to preferential-use gates or it caused
such gates to become available to other users. The current version
of the assurances can be obtained from the FAA Office of Airports
website (see Appendix B for link).
(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
W-3
include…
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 must 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 (1) Whether a subleasing or handling arrangement with an incumbent
arrangements. 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.
W-4
include…
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 must
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 must 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.
W-5
include…
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 (1) Majority-in-interest (MII) or no further rates and charges clauses
and ground-side covering groundside and airside projects.
capacity.
(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 (1) The number of common-use gates that the airport intends to build or
intends to build or acquire and the timeline for completing the process of acquisition or
acquire gates that would construction. This must include a description of the intended
be used as common financing arrangements for these common-use gates, and whether
facilities. 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 (1) 49 USC § 47107(a)(15) requires sponsors to make special airport

49 USC § 47107(a)(15), financial reports available to the public. Therefore, the Competition
the method for making Plan must include the covered airport’s method of satisfying this
the Competition Plan requirement. If web posting is employed, the filing must identify the
available to the public. 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-6
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 DOT Office of the Secretary (OST) and 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-7
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.
W-8
Appendix X. Buy American Guidance
X-1. General Sponsor Buy American Requirements.
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
X-1
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

following…
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.
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
X-2
Table X-2 Criteria by Buy American Waiver Type

following…
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-3
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).
X-4
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%
Y-1
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…
(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
Y-2
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 Medium Hub Small Hub Primary, Non-primary

Airports Airports Nonhub Primary and General Aviation
Nonprimary and Reliever
Commercial Service Airports*
Airports*
a. 1970 – 1973 50% 50% 50% 50%
b. 1974 – 1975 (part 50% 75% 75% 75%

‘b’ reference)
c. 1976 – 1978 75% 75% 90% 90%
d. 1979 (part ‘c’ 75% 75% 80% 80%

reference) – 1980
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.
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 Then the Federal Share is…

Share (Column C of Table Y-4) less
than the 1975 Share (Column B of
Table Y-4)?
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/ A* B* C D (y/n) E* (calc 1) F (calc 2) G (calc 3) H

Airport
% Federal Current Is Current Current Increased Part ‘b’
Type*
Public Share, Federal Current Share Share to = 1975 Results
Land % in Share Share Increased Increased Fed Share
1975 (FMRA) < 1975 by 25% by 1/2
Fed Public
Share? Land %
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, 93.75 90 yes 112.5 105.31 93.75 93.75

& NPCS
GA & RL 93.75 90 yes 112.5 105.31 93.75 93.75
Arizona 43.37
LH 60.65 75 no 75
Y-4

Airport
Type*
1975 (FMRA) < 1975 by 25% by 1/2
Fed Public
Share? Land %
MH 91.06 75 yes 93.75 91.26 91.06 91.06
SH, NHP, 91.06 90 yes 112.5 109.52 91.06 91.06

& NPCS
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, 80.59 90 no 90

& NPCS
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, 79.02 90 no 90

& NPCS
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, 83.64 90 no 90

& NPCS
GA & RL 83.64 90 no 90
Y-5

Airport
Type*
1975 (FMRA) < 1975 by 25% by 1/2
Fed Public
Share? Land %
Montana 12.42
LH 52.98 75 no 75
MH 79.47 75 yes 93.75 79.66 79.47 79.47
SH, NHP, 79.47 90 no 90

& NPCS
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, 93.75 90 yes 112.5 121.15 93.75 93.75

& NPCS
GA & RL 93.75 90 yes 112.5 121.15 93.75 93.75
New 26.44
Mexico
LH 56.16 75 no 75
MH 84.29 75 yes 93.75 84.92 84.29 84.29
SH, NHP, 84.29 90 no 90

& NPCS
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, 83.33 90 no 90
Y-6

Airport
Type*
1975 (FMRA) < 1975 by 25% by 1/2
Fed Public
Share? Land %
& NPCS
GA & RL 83.33 90 no 90
South 9.72
Dakota
LH 52.57 75 no 75
MH 78.55 75 yes 93.75 78.65 78.55 78.55
SH, NHP, 78.55 90 no 90

& NPCS
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, 90.63 90 yes 112.5 108.82 90.63 90.63

& NPCS
GA & RL 90.63 90 yes 112.5 108.82 90.63 90.63
Washing- 6.6
ton
LH 51.52 75 no 75
MH 77.31 75 yes 93.75 77.48 77.31 77.31
SH, NHP, 77.31 90 no 90

& NPCS
GA & RL 77.31 90 no 90
Y-7

Airport
Type*
1975 (FMRA) < 1975 by 25% by 1/2
Fed Public
Share? Land %
Wyoming 27.58
LH 56.33 75 no 75
MH 84.58 75 yes 93.75 85.34 84.58 84.58
SH, NHP, 84.58 90 no 90

& NPCS
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 LH = Large Hub

Type
MH = Medium Hub
SH = Small Hub
NHP = Non Hub Primary
NPCS = Nonprimary Commercial Service
GA = General Aviation
RL = Reliever
(2) A - % Public The actual percentage of public land in a state was last calculated in 1992 by
Land 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 158 (January 4, 1993) by the
Federal Highway Administration) to calculate current Federal share.
Y-8
Table Y-5 Column Notes for Table Y-4
For Column… The following applies…
(3) B - Federal The adjusted Federal shares for large hub airports were published in
Share % in 1975 37 Federal Register 11014 (June 1, 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
(Public Law 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) - The statutory formula to increase the current Federal share by 1/2 the public
Current share land percentage is calculated by multiplicatively, not additively. To be
Increased by consistent with the Column D directive to increase current Federal share by
25% 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
Y-9
Table Y-6 Part ‘c’ Calculation
State A B C D Part ‘c’

Adjusted Adjusted Max Part 'b' Maximum of Results
Fed Share in Federal Calculation 93.75%
1979 Share
(Current
a. Non Public-Land 80.00% 90.00% NA NA 90.00%

States (all those not
listed below)
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.
Y-10
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-1
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 non-
Federal 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 airport-
owned 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 in-
pavement centerline runway lights) that are needed to support upgraded approaches.
Z-2

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ORDER

National Policy Effective date:

SUBJ: Airport Improvement Program Handbook

This Handbook cancels the following order:

• FAA Order 5100.38D, Airport Improvement Program Handbook (dated

The Office of Airports is issuing Change 1 to this Handbook to:

• Incorporate PGLs issued up to, but not including PGL 17-01.

o The Consolidated Appropriations Act, 2018 (Public Law 115-141) enacted

• Include provisions from the following appropriation:

o The Consolidated Appropriations Act of 2016 (Public Law 114-113), enacted

o The Consolidated Appropriations Act, 2018 (Public Law 115-141) enacted

Original signed by: Robin K. Hunt

3-50. Plans and Specifications Review. .......................................................................................... 3-41

5-16. Congressional Notification. ...................................................................................................... 5-8

Section 9. Grant Suspension and/or Termination. ............................................................................. 5-57

Appendix B. References and Web Links .............................................................................................. B-1

U-21. 2 CFR § 200.323, Contract Cost and Price. ......................................................................... U-26

List of Tables and Figures

Table 6-5 Sponsor LOI Submission Requirements .................................................................................. 6-9

Table L-2 Safety and Security Equipment Project Requirements............................................................. L-3

Table U-16 AIP Handbook Clarification of 2 CFR § 200.326 - Contract Provisions

This page has been intentionally left blank.

Chapter 1. What do I need to know about this order?

1-1. This Order Is Called the Handbook.

1-2. Purpose of the Handbook.

1-3. Handbook Audience.

1-4. Handbook Location on the Internet.

1-5. Publications this Handbook Cancels.

a. FAA Order 5100.38C, AIP Handbook, dated June 28, 2005.

b. FAA Order 5100.20C, Programming Control and Reporting Procedures Grant-In-Aid

1-6. Relevant AIP Legislation (Referred to as the Act).

Table 1-1 AIP Related Legislation

The USC Which Which Which That Under

Title 49 Subtitle VII Part B Chapter 475 Noise 49 USC § 47501

1-7. AIP Transition to 2 CFR part 200.

The following crosswalk… Addresses the following AIP related policy…

e. Uniform Guidance Administrative Includes a detailed crosswalk for OMB Circular

AIP Policy (which 2 CFR part 200 AIP Policy

1-8. Format for References to the Act.

1-9. Broad Objective of the Act.

1-10. The Act is a Permissive Statute.

1-11. Aviation Priorities in the Act.

a. Providing a safe and secure airport and airway system.

b. Minimizing airport noise impacts on nearby communities.

c. Developing reliever airports, cargo hub airports, and intermodalism.

d. Protecting natural resources.

e. Reducing aircraft delays.

1-12. List of Handbook References (with Links to the Associated Websites).

1-13. General Principles of this Handbook.

The contents of this Handbook are based on principles below:

d. Reference to Other Guidance. The Handbook summarizes pertinent information from

1-14. Warning on Taking Handbook Text Out of Context.

1-15. Use of the Term Airports District Office (ADO).

1-16. Use of the Phrase ADO has the option.

1-17. FAA Office of Airports Positions/Divisions/Branches Referenced in this Handbook.

Table 1-5 FAA Office of Airports Key Positions

Routing Code Position Name

ARP-1 Associate Administrator

AAS-1 Director, Airport Safety and Standards