Common use of HIGH RISK CATEGORIES Clause in Contracts

HIGH RISK CATEGORIES. A. In 23 U.S.C. 106(c), Congress directs that the Secretary shall not assign any approvals or related responsibilities for projects on the Interstate System if the Secretary determines the project to be in a high risk category. Under 23 U.S.C. 106(c)(4)(B), the Secretary may define high risk categories on a national basis, State-by-State basis, or national and State-by-State basis. FHWA Headquarters coordinates establishment of national high risk categories. Presently, the only national high risk category is for high risk grantees, pursuant to 49 CFR 18.12. A State that has been designated as a high risk grantee may not assume any of the Secretary’s responsibilities for design, PS&E, contract awards, and project inspections for any project on the Interstate System. B. Divisions also may establish high risk categories for projects on the Interstate System on a State-by-State basis. Divisions may establish high risk categories that are specific to a particular Interstate project or group of Interstate projects or a particular project delivery method being employed on Interstate projects. Divisions must receive concurrence from FHWA Headquarters prior to designating any high risk category. The Division has determined there are no high risk categories in Arizona.