For federally funded projects with state oversight, a Federal Project Authorization and Agreement (FPAA) must be signed before obligation of project funds. In addition, a state Letter of Authority (LOA) must be signed before letting. For federally funded projects with federal oversight, each state must obtain its own LOA from Federal Highway Administration (FHWA) and provide participating adjacent states with a copy at least three weeks before letting.

Any prospective bidder who is qualified under the requirements of either state will be considered by the other state as being qualified and eligible to bid on the project and will be provided with proposals upon request.

At a time to be agreed upon by the parties, and subject to the approval of FHWA, the project shall be publicly advertised for bids. The project must be advertised in accordance with federal requirements as well as the laws of both states. Each state shall issue public notice of advertisement that bids are to be received on the project. The responsible state shall provide the adjacent state with a copy of the legal advertisement, the number of days specified in the agreement, prior to the proposed letting date for publishing in the state official journal.

Copies of the bid tabulations for all bids received shall be provided to the adjacent state for review.

Both the Texas Transportation Commission and the highway authority of the other state must approve award of the contract.