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Subrecipient Compliance with FTA C4220.1F

Frequently Asked Questions

NCTD is a direct grantee of Section 5307 funds, and is also our Sub-Recipient for 5311 funds. We understand that our agency has the duty of "verifying" NCTD's procurement process since they are our sub-recipient. Will FTA exempt CalTrans from "verifying" NCTD's federal procurement process in these circumstances?

Even if Caltrans awards FTA Section 5311 grant funds to NCTD, which is also a direct grantee of FTA Section 5307 funds, Caltrans is still responsible for that subrecipient’s compliance with FTA procurement provisions. FTA has not exempted States from overseeing each of their Section 5311 subrecipient’s compliance with Federal requirements and guidance. NCTD would be covered under the same regulations and guidance as any other subrecipient. [See the second sentence of the first paragraph of Chapter II, Subsection 3.b of FTA Circular 4220.1F, “Nonurbanized Area Formula Program Guidance and Grant Application Instructions,” April 7, 2007, and also the second sentence of the second paragraph of Chapter I, Subsection 5.x of  FTA Circular 4220.1F, “Third Party Contracting Guidance,” November 1, 2008, revised April 14, 2009.]

Although FTA contractors perform procurement oversight reviews (as well as financial and management reviews that may involve procurement matters) of FTA’s Section 5307 grantees, the timing of those reviews will vary. Depending on when a triennial review has taken place, the results of that review might not accurately reflect the current level of that grantee’s compliance with FTA procurement provisions. Consequently, Caltrans may rely on recent reports prepared by FTA’s oversight or triennial review contractors as evidence of the level of the NCTD’s compliance with FTA procurement provisions.  If, however, FTA’s oversight or triennial review reports are not reasonably current (within 6 months or less of Caltrans’s review) or do not address all procurement compliance matters that must be reviewed, then Caltrans will need to verify the NCTD’s compliance. Nevertheless, because NCTD is an existing FTA recipient, verifying compliance with Federal procurement provisions should impose no additional burdens on either CalTrans or NCTD. (Posted: March 2009, and revised: September 15, 2009)