Federal-aid Highway Program Policies and Procedures

North Carolina Department of Transportation (NCDOT)

The NCDOT engaged Mercator to review its Federal-aid Highway program to help address the state’s growing investment needs and uncertainty about future funding. We provided strategic guidance to help the state optimize policies and procedures related to advance construction, GARVEE bonds, bridge/ toll credits, and fund-swapping.

We performed an in-depth review of current and/or potential policies, practices, programs, and technical topics including: management of the Advance Construction program, specifically assisting with planning and implementing an AC Process Mapping Workshop; management of projects financed with GARVEE bonds; provision of “soft match” for Federal-aid funds, including the use of bridge credits and toll credits; review and implementation of certain provisions contained in the most recent federal program authorizing legislation (the “Bipartisan Infrastructure Law”); examination of the state’s FAHP budget authority balances and its ability to transfer funds or otherwise mitigate funding uncertainty and improve funds management including, for example, establishment of a formal “fund swapping” program; and various other Federal-aid policy and technical topics of interest to NCDOT leadership.