There are three methods for reimbursing a railroad company. The appropriate method depends on whether the railroad company uses its own

workforce

or a contractor to perform the work.

If the railroad company uses its own

workforce

to perform the work, reimbursement is usually made on a lump sum basis. The reimbursement for an individual crossing will be determined by multiplying the length of crossing surface panels along the track by the cost per track foot agreed upon with the railroad company. Lump sum reimbursements typically occur when a Master Agreement exists with the railroad company.

Actual cost reimbursement to the railroad company may also be used. In these scenarios, a cost estimate is developed prior to construction by the railroad company and approved by

RRD

. Actual cost reimbursement is typically used when a Master Agreement does not exist with the railroad company.

Project costs and method of reimbursement (actual or lump sum) are approved in the individual project agreement.

The railroad company may use a contractor to perform the work under a continuous agreement with the railroad company. The continuous agreement must be for a minimum of three years. A copy of this agreement must be provided to

RRD

.

The contractor’s costs are included in the project estimate and reimbursed at actual cost during construction unless a lump sum arrangement with the railroad company is shown in the individual project agreement. The railroad company directly invoices TxDOT and reimburses their contractor separately.

The railroad company may also provide labor (inspection, etc.) and include estimated costs in the individual project agreement. Reimbursement to the railroad company will be at actual cost.

The railroad company may choose to solicit bids for the project from a minimum of three contractors. The lowest qualified bid will be accepted and reimbursed at actual cost not to exceed the original bid. A Form 1891 (Detailed Estimate for Railroad Solicitation of Bids) is

completed

for each bidding contractor which

groups

various costs on the project and helps to ensure balanced bids. If three bids are not received,

RRD

may still accept the lowest qualified bidder if at least three contractors were contacted and one or more chose not to bid the project.

The railroad company directly invoices TxDOT and reimburses their contractor separately.

The railroad company may also provide labor (inspection, etc.) and include estimated costs in the individual project agreement. Reimbursement to the railroad company will be at actual cost.

Refer to RRD Crossroads website for more information.

Typically, there are two separate paths replanking program projects will follow after Exhibit A

/SOW

and cost estimates have been completed and approved:

If a Master Agreement exists with the railroad company,

RRD

will prepare a Project Notice. The Project Notice normally consists of:

Depending on the terms in the Master Agreement, the Project Notice may need to be executed by the railroad company.

If a Master Agreement does not exist with the railroad company,

RRD

prepares and negotiates a Force Account Agreement for the crossing project. The Force Account Agreement will typically include the items listed above shown in both the Master Agreement and Project Notice.

RRD

will issue the Force Account Agreement to the railroad company for comments. Once comments are resolved, the railroad company will execute the agreement and return to

RRD

for final execution.

RRD

distributes a copy of the executed Project Notice or Force Account Agreement to:

The fully executed Project Notice or Force Account Agreement is uploaded into the TRIMS project management module by

RRD

.