Section 3: Contract Standards
Commission Approval
A highway improvement project must be authorized in a Commission
Minute Order. This is usually an individual minute order or can
be a series of MOs depending on the funding. However, when a project
is included in the Unified Transportation Program (UTP), the MO
approving the UTP is the only MO needed.
Executive Director Approval
Some projects require Executive Director approval, but not
specific Commission approval. Title 43 TAC §15.56 (d) states that
the executive director is authorized to approve requests to finance
an approved highway improvement project. An “approved highway improvement
project” is defined as a highway improvement project on the state
highway system identified in the statewide transportation plan (STP)
or a regional transportation plan. The district's Transportation
Improvement Plan (TIP) is considered to be the regional plan. If
the project is in the STP or the district's TIP, a separate MO is
not required.
Special Approvals
Some types of circumstances and funding structures with the
local government involve special approval from TxDOT’s Administration
or the appropriate District Engineer. The requirements can be found
in Title 43 TAC §15.52.
TxDOTCONNECT is the System of Record
TxDOTCONNECT is the system of record for all Advance Funding
Agreements. Therefore, AFAs must be entered into TxDOTCONNECT and
an AFA ID must be generated. There must be adequate funding allocated
in TxDOTCONNECT to meet or exceed the budgeted amount of the AFA.
Federal Funds and Direct State Costs
When federal funds are being used, it is TxDOT policy to provide
an estimate of the direct state costs in the budget when reviewing
construction, preliminary engineering, environmental, right of way,
and utility work.
State Funds and Off-system Projects
It is TxDOT policy, with limited exceptions, that no state
funds will be expended on off-system projects.
Projects in Economically Disadvantaged Counties
An economically disadvantaged county is one that has below
average per capita taxable property value and income and above average
unemployment. In evaluating a proposal for a highway improvement
project with a local government that consists of all or a portion
of an economically disadvantaged county, the Executive Director
shall, for those projects in which the Commission is authorized
by law to provide state cost participation, adjust the minimum local
matching funds requirement after evaluating a local government's
effort and ability to meet the requirement. Title 43 TAC §15.55.
Outstanding Balance
When Contract Services receives a partially executed agreement,
Contract Services will check the Financial Management Division’s
website to see if the local government has any outstanding balance
and how long the balance has been outstanding. If an outstanding
balance exists with the local government, Contract Services will
review the district’s attempts to collect the balance, the amount outstanding,
and the impact of the project on mobility, and will obtain the Deputy
Executive Director’s approval before fully executing the contract.
Executed Agreement
A written agreement must be executed before TxDOT can expend
money or resources on a project.
Older Agreements Without Current Federal Requirements
When it is discovered that an agreement does not comply with
current federal requirements, Contract Services will obtain a commitment
from the OPR that the agreement will be amended or terminated and
that work will not be performed under the present agreement. If
the district does not provide the requested assurance, Contract
Services will notify Administration.
Withdrawal from the Project
A local government that withdraws from a project after an
AFA is executed may still have funding responsibilities. The local
government is responsible for payment of direct and indirect project costs
incurred by TxDOT for the items of work in which it is participating.
Document Retention
Contract Services is the Office of Record for all AFAs and
amendments. The Office of Primary Responsibility maintains a file
for all other documentation relating to the contract. This file
is subject to audit and will be used in resolving contractual issues.
If the AFA includes right of way or maintenance provisions, the
file must be maintained indefinitely.