Report to the Finance Committee
Recommendation to Approve a Budget Reprogramming from the Ronald Reagan Washington National Airport New
Concourse Projects to the Secure National Hall Project within the Capital Construction Program
October 2021
Recommended Action
Staff requests that the Finance Committee approve and recommend that the Board of Directors (Board)
approve a reprogramming from the Ronald Reagan Washington National (Reagan National) Airport New
Concourse and New Concourse Enabling Projects to the Reagan National Secure National Hall Project
within the Capital Construction Program (CCP). The total reprogramming amount requested is $35.0 million.
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Background
▪ In accordance with Budget Resolution No. 20-21, the President and Chief Executive Officer is authorized by the Board to modify budgeted expenditures within each of the Metropolitan Washington Airports Authority’s (Airports Authority) six budget programs, so long as the total budgeted expenditures within any such program do not exceed the level authorized for the program.
▪ Any such reprogramming which increases or decreases an expenditure item or project by more than ten million dollars shall be submitted to the Finance Committee and Board for approval before it may take effect.
▪ A reprogramming represents a deduction from one budget line item and an addition to another budget line item within the defined budget program area. The net budget impact of all budget reprogramming actions is zero.
▪ A reprogramming action that falls within this criteria for advance approval is being requested in the
Aviation CCP Budget.
Discussion
▪ The Secure National Hall and Secure National Hall Enabling Projects were initially funded in the 2015 Budget based on planning estimates at the time and have a total current budget authorization of $269.8 million ($262.0 million and $7.8 million respectively).
▪ The total current forecast at completion for Secure National Hall is estimated at $297.0 million, a $35.0 million increase from the total current budget of $262.0 million.
▪ The increases in project costs can be attributed to the following:
✓ Additional scope of work post opening of new checkpoints for restrooms, concessions and other enhancements in National Hall,
✓ Square footage increases to accommodate required number of screening lanes and queuing area,
✓ Unforeseen site conditions in the interior of existing facilities and underground utilities,
✓ Costs and schedule delays related to the COVID-19 pandemic.
▪ The New Concourse and New Concourse Enabling Projects are nearing completion and these projects
are projected to have sufficient remaining balances to accommodate this request.
Aviation DCA CCP decrease:
New Concourse ($13,381,000)
New Concourse Enabling Projects ($21,600,000)
(Projects nearing completion with funding available)
Aviation DCA CCP increase:
Secure National Hall $ 34,981,000
Net Impact of Reprogramming $ 0
(Fund projected increases in project costs related to additional scope of work, unforeseen site conditions and COVID-19 pandemic impact to construction activities)
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Discussion (continued)
Recommendation
Staff requests that the Finance Committee approve and recommend to the Board the reprogramming of
$35.0 million from the Reagan National New Concourse and New Concourse Enabling Projects to the
Reagan National Secure National Hall Project within the CCP. The net budget impact is zero.
REPORT TO THE FINANCE COMMITTEE
RECOMMENDATION TO APPROVE A BUDGET REPROGRAMMING FROM THE NEW CONCOURSE PROJECTS TO THE SECURE NATIONAL HALL PROJECT WITHIN THE RONALD REAGAN WASHINGTON NATIONAL AIRPORT CAPITAL
CONSTRUCTION PROGRAM
OCTOBER 2021
RECOMMENDED ACTION
Staff requests that the Finance Committee approve and recommend the Board of Directors (Board) approve the reprogramming of funds from the Ronald Reagan Washington National (Reagan National) Airport New Concourse and New Concourse Enabling Projects to the Reagan National Secure National Hall Project within the Capital Construction Program (CCP). The total reprogramming amount requested is $35.0 million.
BACKGROUND
The President and Chief Executive Officer is authorized by the Board to modify or adjust expenditures within each of the Metropolitan Washington Airports Authority’s (Airports Authority) six program budgets, so long as the total expenditures within any such program do not exceed the level authorized for the program. Such modification or adjustment of expenditures is referred to as a budget reprogramming. A reprogramming represents a deduction from one budget line item and an addition to another budget line item within the defined budget program area. Generally, a budget reprogramming may be required to facilitate the Airports Authority’s current mission, emergency response, business plan, action plan items, or to accommodate newly mandated initiatives not originally funded in the approved annual budget.
In April 2010, the Finance Committee adopted guidelines, which stated that all material budget reprogrammings would be reported to the Finance Committee on a quarterly basis. Additionally, certain guidelines were adopted requiring advance approval by the Finance Committee for material reprogramming requests. Any reprogramming which increases or decreases an expenditure item or project in any budget program area by more than $10,000,000 requires advance approval from the Finance Committee and Board. The criteria for budget reprogramming reporting and advance approval are included as a part of the annual budget resolution.
DISCUSSION
The Secure National Hall and Secure National Hall Enabling Projects were initially funded in the 2015 Budget based on planning estimates at the time and have a total current budget authorization of $269.8 million ($262.0 million and $7.8 million respectively). The total current forecast at completion for Secure National Hall is estimated at $297.0 million, a $35.0 million increase from the total current budget of $262.0 million. The projected increases in costs are driven by additional scope of work post opening of new checkpoints for restrooms, concessions and other enhancements in National Hall, square footage increases to accommodate required number of screening lanes and
queuing area, unforeseen site conditions in the interior of existing facilities and underground utilities, and COVID-19 pandemic impacts such as material delivery delays and continuous rescheduling of construction activities due to potential COVID-19 exposure.
The New Concourse and New Concourse Enabling Projects have been identified as projects with available funding. These projects are both nearing completion and are projected to have sufficient remaining balances to accommodate this request.
Reprogramming Summary
RECOMMENDATION
Staff requests that the Finance Committee approve and recommend to the Board the reprogramming of $35.0 million from the Reagan National New Concourse and New Concourse Enabling Projects to the Reagan National Secure National Hall Project within the CCP. The net budget impact is $0.
Prepared by:
Office of Finance
October 2021
FROM/TO Projects
Current CCP Budget
Current Expended to Date including
Obligations
Proposed Reprogramming
Remaining Balance After Reprogramming FROM PJ10414 New Concourse $ 393,883,000 $ 347,695,416 $ (13,381,000) $ 32,806,584 FROM PJ10411 New Concourse
Enabling Projects $ 80,047,748 $ 52,379,053 $ (21,600,000) $ 6,068,695 TO PJ10412 Secure National Hall $ 262,019,000 $ 249,734,561 $ 34,981,000 $ 47,265,439
