At MDG, we specialize in delivering high-impact solutions for airport sponsors navigating FAA Airport Improvement Program (AIP) grants. One critical tool in this process is the Independent Fee Estimate (IFE), required for professional services contracts exceeding $100,000. As experts in the FAA grant processes, our firm has over 15 years of experience in reviewing or preparing for IFEs. This ensures sponsors secure fair, reasonable costs while complying with FAA regulations like AC 150/5100-14E and 2 CFR § 200.323.
Our value-add starts with precision, leveraging deep knowledge of airport-specific scopes—from runway designs to terminals and hangar buildings—to craft detailed IFEs that break down direct labor, overhead, expenses, and profit. We’ve supported dozens of projects, helped reduce negotiation times, and averted overcharges through side-by-side comparisons with historical data and ASCE guidelines. An IFE is a tool that can be used to identify scope inefficiencies and save the sponsor unnecessary cost while enhancing project outcomes.
Beyond cost savings, our IFE services empower sponsors to demonstrate accountability to taxpayers. In qualifications-based selection (QBS), mandated by 49 U.S.C. §47107, the focus isn’t on the lowest bid but on the best value—prioritizing expertise, innovation, and long-term reliability. Low-bid approaches often lead to subpar work, hidden costs, and delays, eroding public trust. For this reason, professional services are typically a best-value, qualifications-based approach. The IFE is used to provide transparent, auditable documentation that justifies selections based on qualifications. This helps maintain trust in the use of public funds in the absence of a low-bid public contract.
By partnering with us, sponsors seamlessly fulfill FAA requirements, turning compliance into a strategic advantage. We conduct market research and task/hour analysis, so you are free to focus on managing the day-to-day operations of the airport. In an era of tight budgets, our approach ensures every dollar delivers maximum impact, fostering sustainable airports that serve communities effectively. Reach out today to elevate your next AIP project!
Sources to Review:
FAA Advisory Circular (AC) 150/5100-14E, Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects (consolidated version, including Change 1): (https://www.faa.gov/documentLibrary/media/Advisory_Circular/150-5100-14E-consolidated.pdf)
Paragraph 2.13 details the IFE preparation, methods, and thresholds: Paragraph 2.13.2 specifies detailed analysis for contracts over $100,000; Paragraph 2.14.3 addresses its use in negotiations. Figure 2-2 (flowchart) includes the IFE step. Appendices D and E provide sample formats.
AIP Sponsor Guide, Section 300 – Procurement of Professional Services (FAA Central Region Airports Division): (https://www.faa.gov/airports/central/aip/sponsor_guide/0300.pdf)
Pages 300-5 to 300-8 cover Step 6.b (estimating costs), requiring detailed IFE for contracts $100,000 or more. Table 3-1 outlines comparative vs. detailed methods. Figure 3-1 (cost analysis flowchart) and Figure 3-2 (negotiations flowchart) depict the IFE process.
faa.gov
Airports ARP Standard Operating Procedure (SOP) 11.00: (https://www.faa.gov/sites/faa.gov/files/airports/resources/sops/arp-SOP-1100-Consultant-Fee-Analysis.pdf)
Consultant Fee Analysis (July 2018): Specifies IFE requirements for contracts over $100,000, including detailed task-based review, preparation responsibilities, and FAA evaluation criteria for grant eligibility.
2 CFR § 200.324 (Contract Cost and Price): (https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR45ddd4419ad436d/section-200.324)
Requires cost or price analysis for all procurements, including IFE for federal awards like AIP grants, to ensure reasonableness.
