Risk Analysis and Management Program
Risk analysis and risk management is important in order to deliver projects within budget and on-schedule. It is also important for stabilizing and supporting the Work Program by providing better project cost estimates and schedules. Risk analysis involves replacing the traditional cost contingency with a risk-based contingency. Risk items (both threats and opportunities) are identified and quantified through this process. These items are analyzed using a Monte-Carlo simulated program to provide cost and schedule ranges from which a reasonable contingency can be determined. The Risk items can then be managed by Project Managers to reduce (or control) project cost and schedule.
Local Agency Program
Nationwide approximately 75% or 2.9 million of the 3.9 million total miles of roadway are owned and operated by local public agencies. The Local Agency Program or “LAP” is a procurement process where local towns, cities and counties develop, design, and construct transportation facilities with federal funds. The Department is the steward of the federal funds and is responsible for oversight of funded projects on behalf of the Federal Highway Administration (FHWA). LAP agencies prioritize and fund local projects (through their respective MPO or governing board) and are then eligible for reimbursement for the services provided to the traveling public through compliance with applicable Federal statutes, rules and regulations.