Washington State Department of Transportation 10/20/2025

estimate of the charges to be billed no later than July 15th so WSDOT may accrue the expenditures in the proper fiscal year. Any claim reimbursement submitted after the timeframe prescribed above may not be eligible for reimbursement. D.Progress Payments for Federally Funded Construction: For federally funded construction contracts, the GRANTEE is required to make progress payments based on a percentage-of-completion method. WSDOT will reimburse the GRANTEE for eligible costs as identified in the claim reimbursement. E.Progress Payments for Heavy-Duty Buses: For heavy-duty transit bus (“bus”) purchases, WSDOT may reimburse the GRANTEE for progress payments made to a bus manufacturer prior to the final delivery of the bus. 1.Progress payments will only be made for the completion of specific, discrete activities necessary for the manufacture of the bus. 2.Progress payments are only allowable to bus manufacturers that are eligible to receive federal funds. It is the GRANTEE’s responsibility to obtain assurances confirming the manufacturer’s ability to deliver and comply with state and federal regulations and requirements. 3.The GRANTEE must obtain adequate security for progress payments. The security for progress payments is typically a performance bond or letter of credit in the amount of the payments but there may be other types of security negotiated by the GRANTEE and the bus manufacturer as appropriate, such as receipt of title to the rolling stock at an appropriate point in the manufacturing process. 4.The GRANTEE shall determine if progress payments are in the best interest of the GRANTEE after negotiating an anticipated delivery date for the bus(es) with the manufacturer. Regardless of whether the GRANTEE pursues progress payments, the GRANTEE shall include an anticipated delivery date for the bus(es) in the Purchase Order (PO) for the bus(es). 5.To be eligible for reimbursement of progress payments, and prior to issuing a PO, the GRANTEE must negotiate a milestone payment schedule (MPS) with the bus manufacturer as applicable for each vehicle type and specifications. The MPS must identify a limited number of discrete activities whose completion qualifies for a milestone progress payment and an anticipated delivery date for the bus(es). The GRANTEE must submit the MPS to WSDOT for concurrence. 6.Once the MPS is approved, the GRANTEE will include the MPS in the PO for the bus(es). A copy of the PO with the agreed-upon terms for the manufacturer’s delivery of the bus(es) must be submitted to WSDOT. 7.During manufacture, if any of the terms of the PO need to be updated, the GRANTEE will implement a change order process. WSDOT concurrence on the change order is required prior to approving any changes to the terms of the PO. 8.The GRANTEE will submit documentation of completion of each progress milestone when submitting a request for progress payment reimbursement. Images and/or other forms of tangible verification of milestone completion will be required. 9.The GRANTEE will submit Quarterly Status Reports for the grant while the bus(es) is/are being built and until the final reimbursement is made. WSDOT will make final reimbursement for the bus(es) upon delivery and acceptance of the bus(es), per standard procedures. The GRANTEE is to comply with post-delivery bus purchase requirements. Everett Transit PTD1163 7 of 25