Section 2: Types of AFAs
MAFA and LPAFA
Contract Services uses a streamlined format for AFAs with
local governments. The format consists of two components:
- A Master Advance Funding Agreement (MAFA), and
- A Local Transportation Project Advance Funding Agreement (LPAFA).
The MAFA contains the
general terms and conditions
and
cites the federal and state laws that govern these agreements between
the State of Texas, through TxDOT and the local governments. The
local government adopts a MAFA and agrees that its general terms
and conditions will be followed on all the local projects undertaken
by TxDOT and the local government, unless a specific exception is
made in a project agreement (LPAFA). Signing a MAFA helps the two
parties avoid negotiating and reviewing standard contract terms
and conditions each time they wish to enter into an agreement. The
MAFA does not
specify either the cost or the
scope of work for individual projects. The MAFA does not
have
a set termination date and is in effect until terminated by TxDOT
or the local government.Once a MAFA has been adopted, a LPAFA is used to define the
scope of work and funding for a
specific project
.
The LPAFA contract period usually ends upon completion of the project
unless the LPAFA is terminated in accordance with the terms of the
contract. The LPAFA specifies the division of responsibilities for
performing work, such as:- right of way acquisition,
- preparation of PS&E, and
- construction of a roadway.
The LPAFA also specifies which party will provide what resources,
such as which party will provide the land or the cash necessary
for a project. The party responsible for performing work may or may
not be the party responsible for paying for the work. The LPAFA
does
not
include general terms and conditions of the contract,
as TxDOT and the local government agreed to these provisions in
the MAFA. If there are exceptions to the MAFA that pertain to a
specific project, then the LPAFA provides for these exceptions.
It expands or adds to what is not covered in the MAFA.Advance Funding Agreement (Long Form)
An AFA (long form) template must be used when the local government
elects not to enter into a MAFA. It can also be used even if the
MAFA is in place. Each AFA contains the scope of work, who is responsible
for the funding, who is responsible for doing the work, the general
terms and conditions, the local government’s resolution, the project
map, and it also cites the federal and state laws that govern the
agreement with the local government.
Voluntary AFA
The AFA for a Voluntary Project is a standard template to
be used when cash or other resources are voluntarily contributed
by a local government or state agency to an on-system project. The
local government funds 100% of the costs for a distinct project
or a discrete element of a larger project. The agreement does not
contain required federal provisions because the contributed resources
are not a part of a federal program agreement. Projects or discrete
elements of a project that are funded by federal or state programs
requiring a financial match are not eligible for a Voluntary AFA.
Non-Construction AFA
The AFA for non-construction projects is a standard template
for local projects that do not involve construction. A typical non-construction
AFA terminates upon completion of the project or termination by
either party. A non-construction AFA requires a termination date
of no more than three years.
Templates
Templates for all AFAs, LPAFAs and the MAFA can be found on
Contract Services’ intranet site.