Phase: Applied learning · Worked scenarios · Calculations · Audit findings · Document drills
Apply what you've read — scenario by scenario, calculation by calculation
PS&E checklist, Buy America, federal contract provisions. Each exercise has a hidden solution — work through your answer before revealing.
I
Scenario 01
Buy America compliance
Setup
An LPA federal-aid project includes steel reinforcing bars (rebar) and structural steel for a small bridge. The contractor proposes using imported steel from a non-domestic supplier due to a price advantage.
Question
Is this permitted? What governs?
Solution
Not permitted without a Buy America waiver. 23 CFR 635.410 (Buy America) requires that "all manufacturing processes including coating" for iron and steel products used on federal-aid projects must occur in the United States.
Applies to:
• Steel reinforcing bars
• Structural steel
• Steel piling
• Steel guardrail
• Steel signs and signal poles
• Steel manhole covers
• ...all iron and steel products permanently incorporated in the project.
Not covered: minor temporary items, items below the de minimis threshold (currently 0.1% of total contract value or $2,500, whichever is greater).
Waiver process: FHWA can issue a Buy America waiver for:
1. Public interest waiver (project would not be feasible without).
2. Non-availability waiver (no domestic source can supply).
3. Cost differential waiver (domestic cost exceeds non-domestic by 25% or more).
Waivers are NOT delegable — they require FHWA approval (Ch 2 §2.10.1). The LPA submits the waiver request through DLAE to FHWA CADO. Waiver requests are public-notice and reviewed federally.
The contractor's price differential alone is insufficient — they must document that the cost differential meets the waiver threshold AND apply through proper channels.
For this project, advise the contractor to source domestic steel. If they object, they can submit a formal waiver request — but the project schedule will be delayed.
Authority: LAPM Ch 12; 23 CFR 635.410; LAPM Ch 2 §2.10.1
II
Calculation 01
Construction Engineering (CE) cost guideline
Given
A federal-aid construction project has an engineer's estimate of $4.2M. The LPA is preparing the construction RFA and estimating CE costs.
Find
What CE cost is reasonable? What documentation is needed if exceeding the guideline?
Worked solution
Workings
- LAPM Ch 3 §3.3.5 and Ch 12 §12.12: 15% of the engineer's estimate recommended as a guide for CE costs.
- 15% × $4.2M = $630,000.
- CE must be specifically included in LAPM 3-A. If authorized after construction begins, only costs incurred after CE authorization are eligible.
Answer: Reasonable CE: $630,000 (15% guide). If LPA estimates higher CE (e.g., $750K due to project complexity), justification is required and documented in the LAPM 3-A or construction administration plan. Common justifications for higher CE:
• Complex traffic control requiring full-time TC subcontractor.
• Multi-phase construction with active utility coordination.
• Significant materials testing demands (e.g., AC overlay with bonding tests).
• NHS source inspection by Caltrans (request 30 days before RFA).
• Difficult or extensive R/W coordination during construction.
CE costs include: supervision and inspection by responsible charge, additional staking, materials testing, shop drawings review, measurement of pay quantities, labor compliance monitoring.
Authorize CE concurrent with construction phase — do NOT defer. CE costs incurred before CE authorization are not federally reimbursable.
Authority: LAPM Ch 12; LAPM Ch 3 §3.3.5
IV
Document Drill 01
PS&E Checklist — Exhibit 12-D
Drill
Identify the key elements that must be present in a federal-aid PS&E package per Exhibit 12-D.
Model answer
Exhibit 12-D PS&E Checklist key elements (LAPM Ch 12):
Plans:
• Title sheet with project number, location, and signatures.
• Typical sections.
• Plan and profile sheets.
• Detail sheets (drainage, structural, electrical, signing).
• Traffic control plans (TCP).
• Erosion and sediment control plans (if MS4 applicable).
• Notes sheets with general notes, construction notes, environmental notes.
• Cross-sections for earthwork.
Specifications:
• Caltrans Standard Specifications (CTSS) — incorporated by reference.
• Standard Special Provisions (SSPs) — Caltrans pre-approved.
• Project-specific Special Provisions (PSPs) — bid items, work descriptions, materials, methods.
• Required federal-aid contract provisions:
- Equal Employment Opportunity (EEO).
- Davis-Bacon prevailing wage rates.
- DBE special provisions including project goal.
- Buy America provisions.
- On-the-Job Training (OJT) requirements (if applicable).
- Convict labor provisions.
- Subletting and subcontracting (Section 8 of CTSS).
• Required state-aid provisions (state prevailing wage, state DBE).
Estimate:
• Bid item list with quantities and unit prices.
• Engineer's estimate of total project cost.
• Cost breakdown by phase (PE/R/W/Util/CON).
Supporting documentation:
• Geotechnical report.
• Hydraulic report (if drainage involved).
• Structural design calculations.
• Traffic studies.
• Materials reports.
• Cost estimate backup.
Certifications:
• LPA engineer's seal/signature on plans.
• Designer's certification of design standards compliance.
• ADA compliance certification.
PS&E package goes with the LAPM 3-A construction authorization request.
Authority: LAPM Ch 12; Exhibit 12-D
Applied learning · Companion chapter
These exercises apply the procedural framework presented in LAPM Chapter 12: Plans, Specifications, and Estimate. For the full chapter reference, glossary, and recall quiz, see the deep chapter file.