Section 2: Contract Standards

Private Entity Participation

A private entity may participate in a TxDOT highway construction project through a gift of money or tangible goods. TxDOT may accept private participation in a TxDOT highway construction project only if it determines that the private participation will serve the interest of the traveling public. Gifts by private entities must meet the requirements of 43 TAC §1.506, including, when required, commission approval and the execution of a donation agreement.

Approval

Acceptance of a gift or donation must be approved by the Executive Director. If the gift or donation has a value of $500 or more, it must be acknowledged by order of the Texas Transportation Commission not later than the 90
th
 day after the date the donation is accepted by TxDOT.
The Executive Director may approve acceptance of a gift or donation if the Executive Director determines that:
  • the gift or donation will further TxDOT’s responsibilities,
  • the donor is not a party to a contested case before TxDOT, unless the decision in the case became final at least 30 days prior to the donation, and
  • the donor is not subject to TxDOT regulation or oversight, or interested in or likely to become interested in any contract, purchase, payment, or claim with or against TxDOT. However, even in this situation, the Executive Director may approve acceptance of a gift or donation if the Executive Director determines that acceptance:
    • would provide a significant public benefit, and
    • would not influence or reasonably appear to influence TxDOT in the performance of its duties.
43 TAC §1.503

Donations Greater than $1,500

The donor and TxDOT must execute a donation agreement if the donation involves real estate, has an estimated value of more than $1,500, or it is necessary to:
  • warrant or indemnify TxDOT as to ownership,
  • prevent possible claims that could result from the use of the property, or
  • document conditions of the gift.
Agreements must comply with the requirements in 43 TAC §§ 1.504, 1.506.

Acknowledgment Program

Donations to TxDOT for highway-related
services
 may be acknowledged with signs located adjacent to the traveled way with the intent to inform the traveling public that a highway-related service is sponsored by a participating sponsor.
As described in 43 TAC §12.353, the acknowledgment program includes the following requirements:
  • the donation may be used only for the highway-related purpose for which it is made,
  • the acknowledgment program is applicable to all state highways,
  • 43 TAC ch. 1, subch. M (for other types of donations such as cash) does not apply to a donation accepted under this program,
  • TxDOT may contract with a vendor under 43 TAC §12.354 for services related to the program,
  • the vendor will install and maintain acknowledgments, including signs,
  • TxDOT or vendor may not accept donations from an individual or entity that is regulated by TxDOT or that is involved with TxDOT through a contract, purchase, payment, or claim,
  • an acknowledgment may not reference an alcoholic beverage, tobacco product or sexually oriented business, product, or service,
  • a donation must be acknowledged by the Texas Transportation Commission, and
  • an acknowledgment must comply with all applicable laws.