The LOSA is a new agreement with the LG that is available for use. The primary purpose is to document a construction project located on the State Highway System right of way for which the LG is contributing all funds and managing or performing all engineering and construction activities.

There are numerous requirements that must be considered if a LG believes the project should use a LOSA and should be discussed with the TxDOT district as soon as a project is identified.

LOSA projects are not considered a LG project under the strict definition in Section 1 of the LGPM and therefore many state and federal requirements are not applicable.

If the provisions of the LOSA are not acceptable, then the LG must use an AFA-Long Non-Federal template to document the agreement between the parties.