> So the "oversighters" would simply watch what is
> going on in the shops, report back to the EDA, and
> then the EDA would respond back to the commission ?
Well, that should be on top of a well-crafted "contract" that accompanies the funds, describing what the money is to be used for, and any stipulations or restrictions. This is the way I'd do it, to both give EDA the appropriate insight into how their funds are being expended while preserving the organizational integrity of the shop.
Now, I've seen this position described elsewhere as a "program manager", which may convey a different set of expectations on the part of the EDA. My current job is exactly this sort of role: I'm the prime contractor on-site representative responsible for "overseeing" the activities of a sub-contractor. The subcontractor's scope of work is clearly defined in the contract's statement of work; my job is to make sure they meet those requirements (not a problem here, these folks typically go over and above the call), and to insulate them from the idiots who think the word "manage" is first and formost a verb...
For the railroad, YMMV...