81 FR 45354 - Capital Cost Estimating Guidance

DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration

Federal Register Volume 81, Issue 134 (July 13, 2016)

FRA invites public comment on its Capital Cost Estimating Guidance, available on FRA's Web site at https://www.fra.dot.gov/Page/ P0926.

[Federal Register Volume 81, Number 134 (Wednesday, July 13, 2016)]
[Notices]
[Pages 45354-45355]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16544]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. FRA-2016-0035]


Capital Cost Estimating Guidance

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Request for public comment on FRA's Capital Cost Estimating 
Guidance.

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SUMMARY: FRA invites public comment on its Capital Cost Estimating 
Guidance, available on FRA's Web site at https://www.fra.dot.gov/Page/P0926.

DATES: Submit comments on or before August 29, 2016.

ADDRESSES: All comments must make reference to the ``Federal Railroad

[[Page 45355]]

Administration'' and the title ``Capital Cost Estimating Guidance.'' 
Submit comments by only one of the following methods:
    Electronic Docket: Follow the instructions for submitting comments 
on the U.S. Government electronic docket site at http://www.regulations.gov.
    Delivery Service or Hand Delivery: Submit two copies of comments to 
U.S. Department of Transportation, 1200 New Jersey Avenue SE., Docket 
Operations, M-30, Room W12-140 (first floor of the West Building), 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays. For confirmation that the FRA has received the 
comments, include a self-addressed stamped postcard. Comments will be 
posted without change to www.regulations.gov, including any personal 
information included in a comment. Refer to the Privacy Act in the 
Supplementary Information section below.

FOR FURTHER INFORMATION CONTACT: Susan Herre, Transportation Industry 
Analyst, Office of Program Delivery, Federal Railroad Administration, 
(202) 631-1825.

SUPPLEMENTARY INFORMATION: FRA developed this guidance document on 
capital cost estimating for project sponsors and the industry as part 
of its continuing efforts to provide technical assistance and ensure 
successful project delivery. FRA's guidance emphasizes accuracy, 
comprehensiveness, and completeness of estimating materials, as well as 
credibility. These are all qualities highlighted by the U.S. Government 
Accountability Office (GAO) in its own capital cost estimating 
guidance, which describes the same primary capital cost estimating 
methodologies and activities as stated in this document.
    FRA's guidance focuses specifically on railroad projects; it 
provides examples of common estimating shortfalls in railroad projects; 
and it defines agency-specific requirements for project sponsors 
regarding format and submission of cost estimate-related materials.
    FRA recognizes that it is not always easy to persuade stakeholders 
and funders of a project's merit, or to withstand criticism for capital 
costs that seem ``too high'' and schedules that seem ``too long.'' The 
pressures associated with project development and implementation can be 
immense. GAO recognized these pressures when it stated, ``many 
organizations are not mature enough to acknowledge . . . cost risk 
realism because of the possible repercussions [and] . . . fear that the 
program could be canceled.'' With this in mind, FRA's guidance asserts 
that true or ``non-depressed'' costs can get funded, and reminds us 
that delivering projects ``as promised'' increases industry 
credibility.
    By following FRA's guidance, project sponsors should be better able 
to compensate for uncertainties, unforeseen conditions, and unknowns in 
capital cost estimates. Such should improve estimate reliability, and 
enable as-built costs to land within a reasonable range of the 
estimates generated at every project phase. With a consistent 
estimating approach, project sponsors should be better able to make 
useful comparisons among estimates, and to evaluate their own 
estimates.
    This guidance will be incorporated by reference into FRA's Notices 
of Funding Availability/Opportunity and grant and loan agreements. FRA 
expects project sponsors to adhere to this guidance, and the principles 
and methods described herein.

Privacy Act

    FRA wishes to inform all interested parties that anyone is able to 
search the electronic form of any written communications and comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). Interested parties may 
review DOT's complete Privacy Act Statement in the Federal Register 
published on April 11, 2000, 65 FR 19477, or see http://www.regulations.gov/#!privacyNotice for the privacy notice of 
regulations.gov.

    Issued in Washington, DC, on July 7, 2016.
Paul Nissenbaum,
Associate Administrator for Railroad Policy and Development.
[FR Doc. 2016-16544 Filed 7-12-16; 8:45 am]
 BILLING CODE 4910-06-P