Local on-system agreements

TxDOT’s Local On-System Agreement (LOSA) Program, which is administered under the Local Government Programs portfolio, focuses on delivering highway improvement projects on the state highway system that are fully locally funded. A LOSA is a contract between TxDOT and a local government (LG) where the LG agrees to pay 100% of the costs and perform all phases of the work, and is intended for small, short-duration projects, such as turn lanes and traffic light installations. The LOSA contains elements of scope, time, budget, and project management that are aligned with the expectations of those project types.

LOSAs are not intended for large projects, such as overpasses, new roadways, or large interchanges. Projects included in the Unified Transportation Program (UTP) or Statewide Transportation Improvement Program (STIP) must use an Advance Funding Agreement (AFA) rather than a LOSA. Certain elements should be considered in the determination of using a LOSA versus an AFA for the project’s funding agreement.

• LOSA projects are not listed in the UTP or STIP.
• LOSA templates are not negotiable; no articles or contract language can be modified.
• LOSA projects are time-constrained, and durations are identified in the agreement -- construction must begin within 6 to 12 months after execution and be completed with 6 to 36 months of concurrence to commence construction.

The final determination of whether the LOSA is the appropriate agreement structure is made by the Contract Services Division, with input from the TxDOT district.

• LOSA template

These improvements will be made on the state highway system, and the LG will need to obtain approvals from the TxDOT district before moving forward.

• All components of the project must be in compliance with TxDOT’s safety standards.
• Projects will be designed and developed by the LG, either in-house or by a consultant, using
• TxDOT technical specifications and design standards, unless alternatives are approved by the district.
• The LG shall coordinate with the District to provide any necessary environmental documents, which could include National Environmental Policy Act (NEPA) analyses and other necessary documents.
• Rights of way and utilities are the responsibility of the LG and must be in compliance with applicable laws and regulations.
• The LG must obtain TxDOT’s written approval of
  • the final plans, specifications and estimates (PS&E) submittal prior to advertising for bids, and
  • any change orders during construction.
• The LG must obtain TxDOT’s written approval to commence construction and provide a certification of compliance when construction is complete.

LGs interested in pursuing a project under the LOSA program should reach out to their local TxDOT district.