This article is the third in our Introduction to Grants series.
Following the rigorous Pre-Award process detailed in the second installment of our Introduction to Grants series, awarded projects enter the critical Post-Award phase. The purpose of this phase is to ensure that grant recipients responsibly manage awarded funds, achieve project objectives, and maintain compliance with federal requirements.
Here, our team of grants experts at Bluejay Advisors breaks down:
- Stages and typical time frames of the Post-Award phase
- Necessary resourcing for grant management
What is the Grant Lifecycle?
At Bluejay, we view the lifecycle for Federal grant pursuits as the activities that span from early project planning through grant closeout. The stages follow a typical procession, but the timeline varies depending on the Federal agency offering the grant, funding program, project type and complexity, applicant experience, and more. Successful funding pursuits are followed by grant agreement negotiations, start of spending, activity and funding reporting, and closeout.
As discussed here, the Post-Award phase includes all activities from award announcements through grant closeout. The Pre-Award phase is discussed in Part 1.
Why is understanding the Post-Award Lifecycle important?
Regardless of funding agency, the grant lifecycle for a transportation infrastructure project follows a general trajectory since all Federally funded projects must adhere to the same Federal procurement laws and regulations and are administered through the same platform.
Understanding the full lifecycle of a Federal transportation infrastructure grant is critical for an applicant’s long-term planning, resourcing, and success. Before pursuing Federal grant funding, an applicant should determine if they can undertake the typical long-term grant management responsibilities whether in-house or with an external grant management provider like Bluejay Advisors.
Post-Award Phase
During the Post-Award phase, recipients negotiate the legally binding grant agreement with the funding agency, complete project activities, and document all spending and required measurements. Key to this phase are ongoing reports that demonstrate compliance with the program goals and award terms. Our team identifies three main stages of the Post-Award Phase and describes them at a high level:
- Award Announcement and Grant Obligation
- Begin Project and Track Expenditures
- Grant Closeout
Stage 1: Award Announcement and Grant Obligation
Typical Time Frame: 6–18 months
After the funding agency spends several months evaluating grant submissions, it will announce the projects selected for award. This notice of award marks the official start of the Post-Award phase. For some programs, awardees first learn of their success through the agency’s press release. Many times, the agency will notify the awardee’s congressional leader ahead of the official announcement. Regardless of how an awardee learns of a win, the funding agency will send official communication to recipients within weeks of announcement.
If your organization is selected for an award, you then enter grant negotiations with the funding agency. The goal here is to have the award fully obligated—that is, the funding agency is legally committed to make the funds available to your project. This requires a signed contract/agreement that outlines the terms of spending and the project’s scope of work.
During the negotiations, the funding agency will assign a contact to you who can help explain the expectations and terms of funding. Early engagement with your agency contact can prevent misunderstandings and ensure a smooth project launch.
It is important to remember that an awardee should not start project activities yet—terms and conditions of the award will apply, and beginning project activities before receiving clearance can be detrimental to the process.
Pre-Obligation Tasks
Depending on your project, a series of activities may need to be completed in advance of obligation, as communicated by your agency contact. Often, these tasks are not grant-funded activities but may require significant spending. As detailed in Part 1: Pre-Award Phase, the Federal government’s goal is to contribute funds to projects that are guaranteed to be operational. Risks to project completion include environmental and historical preservation conditions that the project may impact.
Federal funding must comply with the National Environmental Policy Act (NEPA) and relevant historic preservation regulations. This means awardees need to address environmental and historical risks and barriers before the funds are fully obligated. Many awardees do not begin these compliance processes until after receiving notice of award because the activities can be costly and are usually only required when Federal funds are involved.
National Environmental Policy Act (NEPA)
NEPA evaluations determine the extent of environmental review required to receive Federal funding. There are three levels of NEPA review. The lowest level of review is a Categorical Exclusion (CE) which indicates that the project is unlikely to have significant environmental impacts. For projects with potential environmental impacts, an Environmental Assessment (EA) may be required. The highest level is an Environmental Impact Statement (EIS) which is the most comprehensive review of the significant, expected environmental impacts.
The funding agency is responsible for overseeing the NEPA review process or will delegate authority to an approved entity. Your organization will not be alone in completing the required evaluation.
The NEPA review is one aspect of the project that can prolong the grant obligation process. Engaging a knowledgeable grant manager, like the team with Bluejay Advisors, can help you navigate this complicated process.
State Historic Preservation Offices (SHPO)
Projects are also subject to historic preservation review through the State Historic Preservation Offices (SHPO). According to the U.S. General Services Administration, “Section 106 of the NHPA requires that each federal agency identify and assess the effects its actions may have on historic buildings.” If the project will impact historic structures (typically more than 50 years old), a Section 106 review will apply.
It is important to recognize that both the NEPA and SHPO reviews are conducted at the Federal and state agency levels. Even if you do not think your project will be subject to review, the engineers and historians engaged for your project will make the final determination.
Obligation
Once your organization has completed all required tasks, you and the funding agency will sign the grant agreement. Finally, the funds are officially obligated to your project. The funding agency will set a start date at which time approved project activities are eligible for reimbursement. Congratulations! The hard work continues!
Stage 2: Begin Project and Track Expenditures
Typical Time Frame: 1–5 years
With the grant agreement in place, your organization can begin project activities. Fiscal accountability and transparent reporting are paramount during this stage.
The project will typically begin with Requests for Proposals (RFPs)/bids that comply with the Uniform Guidance for Federal Awards. The project continues until all activities are completed. During this time, you must track spending and submit receipts to receive reimbursement payments.
Each funding agency and program has its own reporting requirements. This may include monthly or quarterly reports that detail project progression, delays, and outcomes.
The funding agency will require your organization to maintain records on their chosen platforms, but it is also advised to implement robust internal controls and use grant management software or tracking tools to organize documentation and meet reporting deadlines. Early and accurate reporting builds trust with the funding agency and ensures continued funding flow.
Engaging a grant manager, like the team with Bluejay Advisors, can help your organization remain compliant with all spending and reporting guidelines throughout the construction phase.
Grant Closeout
Typical Time Frame: 1–3 months
The closeout phase marks the formal conclusion of the grant relationship and ensures all administrative, financial, and programmatic obligations are satisfied.
Closeout activities vary by funding agency and program—however, it is wise to anticipate needing to prepare and submit a final report that details project outcomes, performance measures, and financial reconciliation.
Even after the project reaches grant closeout, the funding agency will likely require the recipient to retain all records for a period of time in the event of an audit.
Conclusion
The Post-Award phase is as critical as the Pre-Award phase for the success of Federally funded infrastructure projects. Diligent management, proactive communication, and strict adherence to Federal requirements ensure that your organization not only fulfills its grant obligations but also positions itself for future funding opportunities. By understanding and effectively navigating each stage, grantees can maximize the impact of their federal awards and deliver lasting value to their communities.
Get started with Bluejay Advisors today
To navigate the complexities of grant management and ensure full compliance with federal requirements throughout the Post-Award phase, engaging a specialized grant management firm can be invaluable. Pursuing a Federal grant takes a collaborative team that understands the program terms and ongoing management expectations, but our team of experts with Bluejay Advisors can guide you through the negotiation and implementation processes.
We are ready to learn about your project and answer questions about funding opportunities that may be appropriate for your organization. Our initial discussions do not require a contract, any form of payment, or a long-term commitment. Contact us today to unlock funding for transportation and infrastructure projects.
