PROJECT MANAGEMENT OVERSIGHT.

SEC. 324. PROJECT MANAGEMENT OVERSIGHT. (a) In General.—The Urban Mass Transportation Act of 1964 is amended by adding at the end thereof the following: “project management oversight“Sec. 23. (a) Authority To Use Funds.—Beginning October 1, 1987, the Secretary may use not to exceed ½ of 1 percent of— “(1) the funds made available for any fiscal year by section 21(a)(2)(C) to carry out section 3 to contract with any person to oversee the construction of any major project under section 3; “(2) the funds appropriated for any fiscal year pursuant to section 21(a)(1) to carry out section 9 to contract with any person to oversee the construction of any major project under section 9; “(3) the funds appropriated for any fiscal year pursuant to section 21(a)(1) to carry out section 18 to contract with any person to oversee the construction of any major project under section 18; “(4) the funds appropriated for any fiscal year pursuant to section 4(g) to contract with any person to oversee the construction of any major public transportation project substituted for an Interstate segment withdrawn under section 103(e)(4) of title 23, United States Code; and 101 STAT. 236 “(5) the funds appropriated for any fiscal year pursuant to section 14(b) of the National Capital Transportation Act of 1969 to contract with any person to oversee the construction of any major project under such Act. “(b) Federal Share.—Any contract entered into under this subsection shall provide for the payment by the Secretary of 100 percent of the cost of carrying out the contract. “(c) Access to Sites and Records.—Each recipient of assistance under this Act or section 14(b) of the National Capital Transportation Act of 1969 shall provide the Secretary and a contractor chosen by the Secretary in accordance with subsection (a) such access to its construction sites and records as may be reasonably required. “(d) Requirement for Plan.—As a condition of Federal financial assistance for a major capital project under this Act or the National Capital Transportation Act of 1969, the Secretary shall require the recipient to prepare, and, after approval by the Secretary, implement a project management plan which meets the requirements of subsection (e). “(e) Contents of Plan.—A project management plan shall, as required in each case by the Secretary, provide for— “(1) adequate recipient staff organization complete with well-defined reporting relationships, statements of functional responsibilities, job descriptions, and job qualifications; “(2) a budget covering the project management organization, appropriate consultants, property acquisition, utility relocation, systems demonstration staff, audits, and such miscellaneous payments as the recipient may be prepared to justify; “(3) a construction schedule; “(4) a document control procedure and recordkeeping system; “(5) a change order procedure which includes a documented, systematic approach to the handling of construction change orders; “(6) organizational structures, management skills, and staffing levels required throughout the construction phase; “(7) quality control and quality assurance functions, procedures, and responsibilities for construction and for system installation and integration of system components; “(8) materials testing policies and procedures; “(9) internal plan implementation and reporting requirements; “(10) criteria and procedures to be used for testing the operational system or its major components; “(11) periodic updates of the plan, especially with respect to such items as project budget and project schedule, financing, ridership estimates, and where applicable, the status of local efforts to enhance ridership in cases where ridership estimates are contingent, in part, upon the success of such efforts; and “(12) the recipient’s commitment to make monthly submissions of project budget and project schedule to the Secretary. “(f) Regulations.—The Secretary shall promulgate such regulations as may be necessary to implement the provisions of this section. Such regulations shall be published in proposed form for comment in the Federal Register and shall be submitted for review to the Committee on Public Works and Transportation of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate not later than 60 days after the date of 101 STAT. 237enactment of this section, and shall be promulgated in final form not later than 180 days after the date of enactment of this section. Such regulations shall, at a minimum, include the following: “(1) A definition of the term ‘major capital project’ for the purpose of subsection (a). Such definition shall exclude projects for the acquisition of vehicles or other rolling stock, or for the performance of vehicle maintenance or rehabilitation. “(2) A requirement that, in order to maximize the transportation benefits and cost savings associated with project management oversight, such oversight shall begin during the preliminary engineering stage of a project. The requirement of this paragraph shall not apply if the Secretary finds that it is more appropriate to initiate such oversight during another stage of the project. “(g) Approval.—The Secretary shall approve a plan submitted pursuant to subsection (d) within 60 days following its submittal. In the event that approval cannot be completed within 60 days, the Secretary shall notify the recipient that approval cannot be completed within 60 days, explain the reasons for the delay, and estimate how much additional time will be required for completion. If a plan is disapproved, the Secretary shall inform the recipient of the reasons.”.