[Federal Register Volume 77, Number 114 (Wednesday, June 13, 2012)]
[Pages 35466-35471]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-14418]



Federal Railroad Administration

Pilot Project Grants in Support of Railroad Safety Risk Reduction 

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

ACTION: Notice of Funding Availability, Solicitation of Applications.


SUMMARY: This notice details the application requirements and 
procedures for obtaining grant funding for pilot projects designed to 
eliminate or reduce railroad accidents caused by Electronic Device 
Distraction (EDD), by improving safety culture and making misuse 
socially unacceptable. Components of these pilot projects will include 
peer-to-peer safety training techniques, and other innovative 
processes. These pilot projects will be used to supplement and enhance 
compliance with Title 49 Code of Federal Regulations (CFR) Part 220, 
Subpart C, Electronic Devices. The purpose of this subpart is to reduce 
safety risks resulting from railroad operating employees being 
distracted by the inappropriate use of electronic devices, such as 
mobile telephones and laptop computers. This subpart was codified in 
response to an increase in the number of accidents caused by misuse of 
personal electronic devices. The opportunities described in this notice 
are available under the Catalog of Federal Domestic Assistance (CFDA) 
Number 20.301

DATES: Applications for funding under this solicitation are due no 
later than 5 p.m., 30 days after publication in the Federal Register, 
and must be submitted on Grants.gov. See Section 4 for additional 
information regarding the application process. FRA reserves the right 
to modify this deadline.

FOR FURTHER INFORMATION CONTACT: Michael Fitzpatrick, Risk Reduction 
Railroad Specialist, Risk Reduction Program Division, Office of 
Railroad Safety, FRA, 1200 New Jersey Avenue SE., Washington, DC 20590; 
(202) 493-6021; or [email protected].


Table of Contents

1. Funding Opportunity Description
2. Award Information
3. Eligibility Information
4. Application and Submission Information
5. Application Review Information
6. Award Administration Information
7. Payment Method
8. Agency Contact
Appendix 1: Administrative and National Policy Requirements
Appendix 2: Additional Information on Award Administrations and 
Grant Conditions
Appendix 3: Additional Information on Applicant Budgets

Section 1: Funding Opportunity Description

1.1 Authority

    The purpose of this notice is to detail the process of applying for 
grant funding for risk reduction pilot projects designed to eliminate 
or reduce railroad accidents caused by electronic devices by making 
misuse of electronic devices socially unacceptable and improving safety 
culture using peer-to-peer coaching techniques. Congress, in Section 
103 of the Rail Safety Improvement Act of 2008 (Pub. L. 110-432, 
October 16, 2008) required the Secretary of Transportation, by 
regulation, to require each railroad carrier that is either a Class I 
railroad, a railroad carrier that has inadequate safety performance, or 
a railroad carrier that provides intercity rail passenger or commuter 
rail passenger transportation to develop a railroad safety risk 
reduction program that systematically evaluates railroad safety risks 
on its system and manages those risks in order to reduce the numbers 
and rates of railroad accidents, incidents, injuries, and fatalities. 
The statute also authorized the Secretary to conduct behavior-based 
safety and other research, including pilot programs, and to use any 
such research and pilot programs in developing the regulations.

1.2 Funding Approach

    At least $200,000 is available for awards under this solicitation.

Section 2: Award Information

    FRA anticipates making multiple awards from the $200,000 available. 
As such, FRA expects applicants to tailor their applications and 
proposed project scopes accordingly. There are no minimum or maximum 
dollar thresholds for awards, and FRA may choose to award a grant for 
less than the amount requested in the application. The funding provided 
under these grants will be made available to grantees on a 
reimbursement basis.

Section 3: Eligibility Information

3.1 Eligible Applicants

    Eligible applicants include: Individual railroad(s), railroad 
association(s), rail labor organization(s), or a combination of a 
railroad and its attendant labor organization(s) developing a 
cooperative program (multiple stakeholders).

3.2 Cost Sharing and Matching

    Applicants should specify the non-Federal match amount, if any, in 
their application. Applicants should indicate whether funding made 
available through grants provided under this program, together with 
committed funding from other sources, will be sufficient to complete 
the overall project or a discrete portion of the project. An 
applicant's contribution toward the cost of its proposed project may be 
in the form of cash or permitted in-kind contributions. As part of its 
application, an applicant offering an in-kind contribution must provide 
a documented estimate of the monetary value of any such contribution. 
All in-kind contributions must be allowable, reasonable, allocable, and 
in accordance with applicable Office of Management and Budget (OMB) 
cost principles (see Appendix 1), and must not represent double 
counting of costs otherwise accounted for in an indirect cost rate 
pursuant to which the applicant will seek reimbursement.

3.3 Eligible Projects

    FRA is seeking innovative pilot projects that eliminate or reduce 
accidents where the primary or contributing cause is distraction 
associated with the misuse of personal electronic devices. The selected 
pilot projects will use innovative processes such as peer-to-peer 
coaching to make misuse of personal electronic devices socially 
unacceptable, thereby improving the safety culture and eliminating or 
reducing accidents caused by distractions.

[[Page 35467]]

    Submitted applications should address the following criteria and 
     Program Logic and Resource Allocation: The projects must 
clearly show a link between the resources being allocated, the 
processes and tasks being developed and executed, and the desired 
     Partnership with stakeholders: Shared responsibility and 
program ownership are critical to a successful project, and 
understandings and commitments between stakeholders should be clearly 
     Feasibility: Projects must show feasibility and a strong 
likelihood of success.
     Results: Program goals (process goals such as number of 
people educated/trained, and end goals) must be clearly stated.
     Impact: The projected impact on safety must be stated: 
Local, division or region, systemwide, and industrywide (e.g. the pilot 
could be targeted at a single yard or terminal, single group at the 
location such as train, yard, and engine, single shift such as 11:00 
p.m. to 7:00 a.m.).
     Schedule: Estimate time and location to begin 
implementation, estimate time when demonstrable improvements will be 

Section 4: Application and Submission Information

4.1 Application Procedures

4.1.1 Applying Online
    All applications must be submitted through Grants.gov by 5 p.m., 30 
days after this notice is published in the Federal Register. Applicants 
are strongly encouraged to apply early to ensure that all materials are 
received before this deadline. To apply for funding through Grants.gov, 
applicants must be properly registered. Complete instructions on how to 
register and submit an application can be found at Grants.gov. 
Registering with Grants.gov is a onetime process; however, it can take 
up to several weeks for first-time registrants to receive confirmation 
and a user password. FRA recommends that applicants start the 
registration process as early as possible to prevent delays that may 
preclude submitting an application package by the application deadline. 
Applications will not be accepted after the due date. Delayed 
registration is not an acceptable justification for an application 
extension. In order to apply for funding under this announcement and to 
apply for funding through Grants.gov, all applicants are required to 
complete the following:
1. Acquire a DUNS Number
    A Data Universal Numbering System (DUNS) number is required for 
Grants.gov registration. The Office of Management and Budget requires 
that all businesses and nonprofit applicants for Federal funds include 
a DUNS number in their applications for a new award or renewal of an 
existing award. A DUNS number is a unique nine-digit sequence 
recognized as the universal standard for identifying and keeping track 
of entities receiving Federal funds. The identifier is used for 
tracking purposes and to validate address and point of contact 
information for Federal assistance applicants, recipients, and 
subrecipients. The DUNS number will be used throughout the grant life 
cycle. Obtaining a DUNS number is a free, one-time activity. Applicants 
may obtain a DUNS number by calling (866) 705-5711 or by applying 
online at http://www.dnb.com/us.
2. Acquire or Renew Registration With the Central Contractor 
Registration Database
    All applicants for Federal financial assistance must maintain 
current registrations in the Central Contractor Registration (CCR) 
database. An applicant must be registered in the CCR to successfully 
register in Grants.gov. The CCR database is the repository for standard 
information about Federal financial assistance applicants, recipients, 
and subrecipients. Organizations that have previously submitted 
applications via Grants.gov are already registered with CCR, as it is a 
requirement for Grants.gov registration. Please note, however, that 
applicants must update or renew their CCR registration at least once 
per year to maintain an active status, so it is critical to check 
registration status well in advance of the application deadline. 
Information about CCR registration procedures can be accessed at http://www.ccr.gov.
3. Acquire an Authorized Organization Representative and a Grants.gov 
Username and Password
    Applicants must complete an Authorized Organization Representative 
(AOR) profile on Grants.gov and create a username and password. 
Applicants must use the organization's DUNS number to complete this 
step. Additional information about the registration process is 
available at http://www.Grants.gov/applicants/get_registered.jsp.
4. Acquire Authorization for Your AOR From the E-Business Point of 
    The Applicant's E-Business Point of Contact (EBiz POC) must log in 
to Grants.gov to confirm a representative as an AOR. Please note that 
there can be more than one AOR at an organization.
5. Search for the Funding Opportunity on Grants.gov
    The CFDA number for this opportunity is 20.301. It is titled: 
Electronic Device Distraction Safety Culture Improvement Pilot Project 
6. Submit an Application Addressing All of the Requirements Outlined in 
This Funding Availability Announcement
    Within 24 to 48 hours after submitting an electronic application, 
an applicant should receive an email validation message from 
Grants.gov. The validation message will explain whether the application 
has been received and validated or rejected, with an explanation. 
Applicants are urged to submit an application at least 72 hours prior 
to the due date of the application to allow time to receive the 
validation message and to correct any problems that may have caused a 
rejection notification. If you experience difficulties at any point 
during this process, please call the Grants.gov Customer Center Hotline 
at (800) 518-4726, 24 hours a day, and 7 days a week (closed on Federal 

    Note:  Please use generally accepted formats such as .pdf, .doc, 
.docx, .xls, .xlsx, and .ppt, when uploading attachments.

4.1.2 Address To Request/Submit Application Package
    To request a hard copy of the application package, please contact: 
Michael Fitzpatrick, Risk Reduction Railroad Specialist, Risk Reduction 
Program Division, Office of Railroad Safety, FRA, 1200 New Jersey 
Avenue SE., Washington, DC 20590; (202) 493-6021; or 
[email protected].

4.2 Content of Application

    Required documents for the application package are outlined below. 
Applicants must complete and submit all components of the application 
package; failure to do so may result in the application being removed 
from consideration for award.
4.2.1 Project Narrative/Statement of Work
    The following points describe the minimum content that will be 
required in the Project Narrative/Statement of

[[Page 35468]]

Work elements of grant applications. These requirements must be 
satisfied through a narrative statement submitted by the applicant, and 
may be supported by spreadsheet documents, tables, drawings, and other 
materials, as appropriate. FRA recommends that applicants read this 
section carefully and submit all required information. If an 
application does not address each of these requirements to FRA's 
satisfaction, the application may be considered incomplete and removed 
from consideration for award. Each Project Narrative/Statement of Work 
     Designate a point of contact for the applicant and provide 
his or her name and contact information, including phone number, 
mailing address, and email address. The point of contact must be an 
employee of an eligible applicant. Indicate the amount of Federal 
funding requested from the program, proposed non-Federal match, and 
total project cost.
     Explain how the applicant is an eligible applicant. For a 
full discussion of how an applicant can meet this burden, see Section 
3.1 Eligible Applicants.
     Include a detailed project description with an explanation 
of how the project is an eligible project. For a full discussion of how 
an applicant can meet this burden, see Section 3.3 Eligible Projects.
     Include a thorough discussion of how the project meets all 
of the selection criteria. Applicants should note that FRA evaluates 
applications based upon the selection criteria. If an application does 
not sufficiently address the selection criteria, FRA will have little 
or no basis on which to evaluate the application; therefore, it will 
likely not be a competitive application. The selection criteria are 
described in detail in Section 5.2.
     Provide a detailed scope of work for the proposed project 
and include the anticipated project schedule. Describe the proposed 
project's physical location (as applicable). If the funding from the 
program is only going to be a component of the overall funding for the 
project, describe the complete project and specify which component will 
involve FRA funding. Applications should include feasibility studies 
and cost estimates, if completed. FRA will more favorably consider 
applications that include these types of studies and estimates, as they 
demonstrate that an applicant has a definite understanding of the scope 
and cost of the project. If FRA approves a project for funding, 
allowable costs (i.e., costs that can qualify for reimbursement from 
Federal funds or as part of the required non- Federal match) will have 
to directly support the pilot project.
     Describe proposed project implementation and project 
management arrangements. Include descriptions of expected arrangements 
for project contracting, contract oversight, change-order management, 
risk management, and conformance to Federal requirements for project 
progress reporting.
     Describe the anticipated benefits associated with the 
proposed project.
     Although FRA will weigh all of the selection criteria, 
potential applicants should be aware that FRA is seeking the maximum 
safety benefit from these limited funds.
     Format: Excluding spreadsheets, drawings, and tables, the 
Project Narrative/Statement of Work for grant applications may not 
exceed 10 pages in length. Failure to adhere to this page limitation 
may result in the application being removed from consideration for 
     All application materials should be submitted as 
attachments through Grants.gov.
     Spreadsheets consisting of budget or financial information 
should be submitted via Grants.gov as Microsoft Excel (or compatible) 
4.4.2 Detailed Budget
    Applicants must present a detailed budget for the proposed project 
that includes both Federal funds and matching funds. Items of cost 
included in the budget must be reasonable, allocable, and necessary for 
the project. For a non-construction project at a minimum, the budget 
should separate total cost of the project into the following 
categories, if applicable: (1) Personnel; (2) fringe benefits; (3) 
travel; (4) equipment; (5) supplies; (6) consultants/contracts; (7) 
other; and (8) indirect costs. See Appendix 3 of this solicitation for 
more information on project budgets.

4.3 Submission Dates and Times

    Complete applications must be submitted to Grants.gov (as specified 
in Section 4.1) no later than 5 p.m., 30 days after this notice is 
published in the Federal Register. Grants.gov will send the applicant 
an automated email confirming receipt of the application. FRA reserves 
the right to contact applicants with any concerns, questions, or 
comments related to applications.

Section 5: Application Review Information

5.1 Application Review and Selection Process

    Applications will proceed through a three-part review process:
    1. Screening for completeness and eligibility.
    2. Evaluation of eligible applications by technical panels applying 
the selection criteria.
    3. Project selection by the FRA Administrator.
    Each application will first be screened for completeness 
(containing all required documentation outlined in Section 4.2, and 
eligibility (requirements outlined in Section 3). Eligible and complete 
applications will then be evaluated by technical panels consisting of 
subject-matter experts against the selection criteria (outlined in 
Section 5.2). The ratings assigned by the technical panels will not 
constitute the final award determination. The FRA Administrator may 
take into account other factors determined to be relevant to achieving 
the goals of the program when making final award decisions.

5.2 Selection Criteria

    FRA will consider the following selection factors in evaluating 
applications for grants under this program (all elements will have 
equal weight):
     Program Logic: The link between the resources being 
allocated, the processes and tasks being developed and executed and the 
desired outcome.
     Partnership with stakeholders: Shared responsibility and 
program ownership are critical to a successful project, clarity of 
understandings and commitments between stakeholders are important.
     Feasibility: Feasibility and a strong likelihood of 
     Results: Achievement of program goals.
     Schedule: Programs with scheduled results showing sooner 
projected completion will be given greater consideration than programs 
with a longer timeline of completion.
     Cost sharing: Projects with a greater portion of matching 
funds will be given greater consideration, i.e. a program that proposes 
to match one company dollar for every grant dollar (1 to 1) would be 
given more consideration than a program that matches fifty cents for 
every grant dollar (.50 to 1).

[[Page 35469]]

Section 6: Award Administration Information

6.1 Award Notices

    Applications selected for funding will be announced after the 
application review period. FRA will contact applicants with successful 
applications after announcement with information and instructions about 
the award process. Notification of a selected application is not an 
authorization to begin proposed project activities. The period of 
performance for this grant program is dependent on the project. 
However, any unobligated funds will be de-obligated at the end of the 
90-day close-out period, provided for in Appendix 2.4. Extensions to 
the period of performance will be considered only through written 
requests to FRA with specific and compelling justifications why an 
extension is required.

6.2 Administrative and National Policy Requirements

    The grantee and any subgrantee shall comply with all applicable 
laws and regulations. For a non-exclusive list of regulations commonly 
applicable to FRA grants refer to Appendix 1.

6.3 General Requirements

    Grant recipients must comply with reporting requirements. All post-
award information pertaining to reporting, auditing, monitoring, and 
the close-out process is detailed in Appendix 2.

Section 7. Payment Method

    Payment of FRA funding through FRA's Office of Financial Services 
shall be made on a reimbursable basis whereby the grantee will be 
reimbursed, after the submission of proper invoices, for actual 
expenses incurred.
    The grantee will use the following method for transfer of 
reimbursed funds: Automated Clearing House (ACH) Electronic Vendor 
Payment. The grantee submits SF 3881 and SF 270.

Section 8. Agency Contact

    For further information regarding this notice and the grants 
program, please refer to the section titled ``For Further Information 

Appendix 1. Administrative and National Policy Requirements

Appendix 1.1 Standard Financial and Program Administration Requirements

    Grant recipients must follow all standard financial and program 
administration requirements, including:
     49 CFR part 18, Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments.
     49 CFR part 19, Uniform Administrative Requirements for 
Grants and Cooperative
     Agreements with Institutions of Higher Education, 
Hospitals, and Other Non-Profits
     Organizations (OMB Circular A-110)
     Cost Principles
     2 CFR part 225, Cost Principles for State, Local, and 
Indian Tribal Governments (OMB Circular A-87)
     2 CFR part 220, Cost Principles for Educational 
Institutions (OMB Circular A-21)
     2 CFR part 230, Cost Principles for Non-Profit 
Organizations (OMB A-122)
     Federal Acquisition Regulations (FAR), part 31.2 Contract 
Cost Principles and Procedures, Contracts with Commercial Organizations
     Audit Requirements
     OMB Circular A-133, Audits of States, Local Governments, 
and Non-Profit Organizations

Appendix 1.2 Administrative and National Policy Requirements

    Grant recipients must follow all administrative and national policy 
requirements including: Procurement standards, compliance with Federal 
civil rights laws and regulations, disadvantaged business enterprises 
(DBE), debarment and suspension, drug-free workplace, FRA's and OMB's 
Assurances and Certifications, Americans with Disabilities Act (ADA), 
environmental protection, National Environmental Policy Act (NEPA), and 
environmental justice.

Appendix 1.3 Freedom of Information Act

    As a Federal agency, FRA is subject to the Freedom of Information 
Act (FOIA) (5 U.S.C. 552), which generally provides that any person has 
a right, enforceable in court, to obtain access to Federal agency 
records, except to the extent that such records (or portions of them) 
are protected from public disclosure by one of nine exemptions or by 
one of three special law enforcement record exclusions. Grant 
applications and related materials submitted by applicants pursuant to 
this guidance will become agency records, and are subject to FOIA and 
to public release through individual FOIA requests. FRA also recognizes 
that certain information submitted in support of an application for 
funding in accordance with this guidance could be exempt from public 
release under FOIA as a result of the application of one of the FOIA 
exemptions, most particularly Exemption 4, which protects trade secrets 
and commercial or financial information obtained from a person that is 
privileged or confidential (5 U.S.C. 552(b)(4)). In the context of this 
grant program, commercial or financial information obtained from a 
person could be confidential if disclosure is likely to cause 
substantial harm to the competitive position of the person from whom 
the information was obtained (see National Parks & Conservation 
Association v. Morton, 498 F.2d 765, 770 (DC Cir. 1974)). Entities 
seeking exempt treatment must provide a detailed statement supporting 
and justifying the request and should follow FRA's existing procedures 
for requesting confidential treatment in the railroad safety context 
found at 49 CFR Section 209.11. As noted in the Department's FOIA 
implementing regulation (49 CFR part 7), the burden is on the entity 
requesting confidential treatment to identify all information for which 
exempt treatment is sought and to persuade the agency that the 
information should not be disclosed (see 49 CFR Section 7.17). The 
final decision as to whether the information meets the standards of 
Exemption 4 rests with FRA.

Appendix 2. Additional Information on Award Administration and Grant 

Appendix 2.1 Reporting Requirements

    Reporting requirements must be met throughout the life of the grant 
(additional detail will be included in the award package provided to 
selected applicants).
     Progress Reports--Progress reports are to be submitted 
quarterly. These reports must relate the state of completion of items 
in the Statement of Work to expenditures of the relevant budget 
elements. The grant recipient must furnish the quarterly progress 
report to FRA on or before the 30th calendar day of the month following 
the end of the quarter being reported. Grantees must submit reports for 
the periods: January 1-March 31, April 1-June 30, July 1-September 30, 
and October 1-December 31. Each quarterly report must set forth concise 
statements concerning activities relevant to the project, and should 
include, but not be limited to, the following:
    [cir] An account of significant progress (findings, events, trends, 
etc.) made during the reporting period.
    [cir] A description of any technical and/or cost problem(s) 
encountered or anticipated that will affect completion of the grant 
within the time and fiscal constraints as set forth in the agreement, 
together with recommended solutions or corrective action plans (with 
dates) to

[[Page 35470]]

such problems, or identification of specific action that is required by 
FRA, or a statement that no problems were encountered.
    [cir] An outline of work and activities planned for the next 
reporting period.
     Quarterly Federal Financial Report (SF-425)--The grantee 
must submit a quarterly Federal financial report electronically in 
FRA's Web-based grant management system, GrantSolutions, on or before 
the 30th calendar day of the month following the end of the quarter 
being reported (e.g., for the quarter ending March 31, the SF-425 is 
due no later than April 30). A report must be submitted for every 
quarter of the period of performance, including partial calendar 
quarters, as well as for periods where no grant activity occurs. The 
grantee must use SF-425, Federal Financial Report, in accordance with 
the instructions accompanying the form, to report all transactions, 
including Federal cash, Federal expenditures and unobligated balance, 
recipient share, and program income.
     Final Report(s)--Within 90 days of the project completion 
date or termination by FRA, the grantee must submit a summary project 
report in GrantSolutions. This report should detail the results and 
benefits of the grantee's improvement efforts.
     Reports, Presentations, and Other Deliverables--Whether 
for technical examination, administrative review, or publication, all 
submittals shall be of a professional quality and suitable for their 
intended purpose. Due dates for submittals shall be based on the 
specified intervals or days from the effective date of the agreement.

Appendix 2.2 Audit Requirements

    Grant recipients that expend $500,000 or more of Federal funds 
during their fiscal year, combined from all sources, are required to 
submit an organization-wide financial and compliance audit report. The 
audit must be performed in accordance with the U.S. General 
Accountability Office, Government Auditing Standards, located at http://www.gao.gov/govaud/ybk01.htm, and OMB Circular A-133, Audits of 
States, Local Governments, and Non-Profit Organizations, located at 
http://www.whitehouse.gov/omb/circulars/a133/a133.html. Currently, 
audit reports must be submitted to the Federal Audit Clearinghouse no 
later than 9 months after the end of the recipient's fiscal year. In 
addition, FRA and the Comptroller General of the United States must 
have access to any books, documents, and records of grant recipients 
for audit and examination purposes. The grant recipient will also give 
FRA or the comptroller, through any authorized representative, access 
to, and the right to examine all records, books, papers, or documents 
related to the grant. Grant recipients must require that subgrantees 
comply with the audit requirements set forth in OMB Circular A-133. 
Grant recipients are responsible for ensuring that subrecipient audit 
reports are received and for resolving any audit findings.

Appendix 2.3 Monitoring Requirements

    Grant recipients will be monitored periodically by FRA to ensure 
that the project goals, objectives, performance requirements, 
timelines, milestones, budgets, and other related program criteria are 
being met. FRA may conduct monitoring activities through a combination 
of office-based reviews and onsite monitoring visits. Monitoring will 
involve the review and analysis of the financial, programmatic, and 
administrative issues relative to each program and will identify areas 
where technical assistance and other support may be needed. The 
recipient is responsible for monitoring award activities, including 
subawards and subgrantees, in order to provide reasonable assurance 
that the award is being administered in compliance with Federal 
requirements. Financial monitoring responsibilities include the 
accounting of recipients and expenditures, cash management, maintaining 
of adequate financial records, and refunding expenditures disallowed by 

Appendix 2.4 Closeout Process

    Project closeout occurs when all required project work and all 
administrative procedures have been completed, and when FRA notifies 
the grant recipient and forwards the final Federal assistance payment, 
or when FRA acknowledges the grant recipient's remittance of the proper 
refund. Project closeout should not invalidate any continuing 
obligations imposed on the grantee by an award or by the FRA's final 
notification or acknowledgment. Within 90 days of the project 
completion date or termination by FRA, grantees agree to submit a final 
Federal Financial Report (SF-425), a certification or summary of 
project expenses, and a final report.

Appendix 3. Additional Information on Applicant Budgets

    The information contained in this appendix is intended to assist 
applicants with developing the SOW budget and OMB Standard Forms 424A: 
Budget Information-- Non-Construction Programs and 424C: Budget 
Information--Construction Programs, as described in Section 4.2.

Appendix 3.1 Non-Construction Project Budgets

    Applicants must present a detailed budget for the proposed project 
that includes both Federal funds and matching funds. Items of cost 
included in the budget must be reasonable, allocable, and necessary for 
the project. At a minimum, the budget should separate total cost of the 
project into the following categories and provide a basis of 
computation for each cost:
     Personnel: List each position by title and name of 
employee, if available, and show the annual salary rate and the 
percentage of time to be devoted to the project. Compensation paid for 
employees engaged in grant activities must be consistent with that paid 
for similar work within the applicant organization.
     Fringe Benefits: Fringe benefits should be based on actual 
known costs or an established formula. Fringe benefits are for 
personnel listed in the ``Personnel'' budget category and only for the 
percentage of time devoted to the project.
     Travel: Itemize travel expenses of project personnel by 
purpose (training, interviews, and meetings). Show the basis of 
computation (e.g., X people to Y-day training at airfare, lodging, 
     Equipment: List non-expendable items that are to be 
purchased. Nonexpendable equipment is tangible property having a useful 
life of more than 2 years and an acquisition cost of $5,000 or more per 
unit. (Note: the organization's own capitalization policy may be used 
for items costing less than $5,000.) Expendable items should be 
included either in the ``Supplies'' category or in the ``Other'' 
category. Applicants should analyze the cost benefits of purchasing 
versus leasing equipment, especially high-cost items and those subject 
to rapid technical advances. Rented or leased equipment should be 
listed in the ``Contractual'' category. Explain how the equipment is 
necessary for the success of the project. Attach a narrative describing 
the procurement method to be used.
     Supplies: List items by type (office supplies, postage, 
training materials, copying paper, and expendable equipment items 
costing less than $5,000) and show the basis for computation. (Note: 
The organization's own capitalization policy may be used for items 
costing less than $5,000). Generally, supplies include any materials 
that are expendable or

[[Page 35471]]

consumed during the course of the project.
     Consultants/Contracts: Indicate whether applicant's 
written procurement policy (see 49 CFR Section 18.36) or the FAR are 
     Consultant Fees: For each consultant enter the name, if 
known, service to be provided, hourly or daily fee (8-hour day), and 
the estimated time on the project.
     Consultant Expenses: List all expenses to be paid from the 
grant to the individual consultants in addition to their fees (travel, 
meals, and lodging).
     Contracts: Provide a description of the product or service 
to be procured by contract and an estimate of the cost. Applicants are 
encouraged to promote free and open competition in awarding contracts. 
A separate justification must be provided for sole source contracts in 
excess of $100,000.
     Other: List items (rent, reproduction, telephone, 
janitorial, or security services) by major type and the basis of the 
computation. For example, provide the square footage and the cost per 
square foot for rent, or provide the monthly rental cost and how many 
months to rent.
     Indirect Costs: Indirect costs are allowed only if the 
applicant has a federally approved indirect cost rate. A copy of the 
rate approval (a fully executed, negotiated agreement) must be 
attached. If the applicant does not have an approved rate, one can be 
requested by contacting the applicant's cognizant Federal agency, which 
will review all documentation and approve a rate for the applicant 

    Issued in Washington, DC, on June 7, 2012.
Robert C. Lauby,
Acting Associate Administrator for Railroad Safety/Chief Safety 
[FR Doc. 2012-14418 Filed 6-12-12; 8:45 am]