The Notice of Funding Opportunity (NOFO) for FY25, titled "Support of the American Association of State Highway Transportation Officials (AASHTO) Innovation Management (AIM) Program," is a grant opportunity offered by the Federal Highway Administration (FHWA). The goal of this cooperative agreement is to foster a culture of innovation within the surface transportation industry by enhancing the deployment of key programs such as Every Day Counts (EDC), State Transportation Innovation Council (STIC), and Accelerating Market Readiness (AMR). The anticipated funding amount is up to $1,800,000, and the agreement will support the activities of the AASHTO AIM technical service program over a period of 60 months. However, the total amount is contingent upon the availability of funds.

The primary purpose of this NOFO is to advance innovation in highway and transportation programs, ensuring sustainable, safe, and efficient practices. It supports initiatives like EDC, which identifies underutilized innovations for deployment and creates efficiencies in transportation project delivery. This agreement also emphasizes collaboration between FHWA and AASHTO to facilitate information sharing and the adoption of innovations through stakeholder engagement and other mechanisms.

Eligibility is restricted to the American Association of State Highway Transportation Officials (AASHTO), as this NOFO is a sole-source notice. A cost-sharing or matching requirement is in place, where the federal share cannot exceed 80% of the total project cost. Matching funds must adhere to federal regulations and are subject to the same requirements as federal funds.

Applications must be submitted through Grants.gov by February 3, 2025, at 5:00 PM EST. Submissions must include a technical project narrative and budget application. The project narrative should detail the scope of work, management and staffing plans, risks, outcomes, and alignment with FHWA program goals. The budget application must provide a comprehensive breakdown of costs and demonstrate compliance with federal cost principles.

Evaluation criteria focus on the degree to which the application addresses program and administrative goals, as well as the soundness of the technical and management approaches, staffing plan, and the applicant’s experience. Cost reasonableness and the proposed cost-share will also be evaluated. A risk assessment will be conducted before award decisions, considering financial stability, past performance, and potential conflicts of interest.

Selected applicants will be notified after the evaluation process, and funding will be disbursed through reimbursements for incurred costs. Awards are subject to several compliance requirements, including adherence to the Uniform Administrative Requirements, federal audit requirements, and FHWA reporting standards. Quarterly progress reports and an annual budget review will be required post-award.

This NOFO represents a unique opportunity to promote innovative transportation practices through a collaborative partnership between FHWA and AASHTO. Eligible applicants should carefully review the detailed NOFO document and ensure compliance with submission requirements to participate in this critical program.