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Operating Assistance Grants

Frequently Asked Questions

FTA Circular 4220.1F states, in Chapter II, subparagraph 2b(2)(a), regarding applicability of the circular, that, "The provisions of this circular continue to apply to contracts in support of a recipient’s or subrecipient’s operations financed with FTA assistance."  Does the term "contracts in support of . . . operations" include professional services contracts such as accounting services, legal services and the like? 

The term "contracts in support of . . . operations," as used in FTA Circular 4220.1F, includes professional services contracts such as accounting services, legal services and similar professional services.  Therefore, when a grantee uses FTA assistance to procure those services, FTA requirements will apply to the procurement of those services.  If, however, the grantee finances an operations contract, such as a professional services contract, entirely without FTA assistance, and its records can demonstrate without question that this is the case, then FTA’s third party contracting requirements will no longer apply to those procurements, except for certain DBE provisions. See, Chapter II, subparagraph 2b(2)(b) of FTA Circular 4220.1F, “Third Party Contracting Guidance.” (Revised: July 2010)