Overview
General
In order for TxDOT to spend funds or other resources on a transportation project with a local government (LG), a written contract must first be executed between the parties. At TxDOT, an Advance Funding Agreement (AFA) is the form of contract most frequently used for development of projects with LGs. When TxDOT contracts with another party, usually a private firm, for a well-defined good or service such as engineering plans, environmental studies or asphalt for a highway, a procurement contract is used. However, the AFA is not a procurement contract. The AFA is an agreement under which TxDOT and the LG allocate participation in a transportation improvement project. The AFA allows TxDOT and the LG to “jointly” provide for the implementation of a specific project.
The term “advance funding agreement” is used throughout the Manual and Local Government Project Management (LGPM) Guide as a generic term for a variety of joint-funding agreements between TxDOT and LGs. Some specific agreement types included with the AFA are:
- Pass-through Agreement;
- AFA for Bridge Replacement or Rehabilitation Off the State System;
- AFA for a Transportation Enhancement (TE) Project;
- AFA for a Transportation Alternatives Program (TAP) Project;
- AFA for Transportation Alternatives Set-Aside Program (TASA) Projects;
- AFA for Voluntary Maintenance by a Local Government;
- AFA for a Safe Routes to School Project;
- Local Transportation Project Non-construction AFA;
- AFA for Voluntary Utility Relocation;
- Agreement for the Furnishing of Traffic Signal Equipment by a Municipality;
- Congestion Mitigation and Air Quality Improvement Agreement for the Reimbursement of Engineering Services Performed by a Municipality for the Justification of and the Plan Work for Traffic Signal Indications;
- Agreement for the Installation, Operation, Adjustment, and Removal of Temporary Traffic Signal Equipment by a Municipality; and
- State Agency Advance Funding Agreement.
This list is not intended to be all inclusive, but to demonstrate the types of agreements that fall within the general category of AFAs.
The AFA defines the scope of work, labor and material resources, and cash or in-kind funding responsibilities to be contributed by each party necessary to accomplish a transportation project. In addition to contract provisions specifying the work and resource contributions, an AFA will have other legally required provisions. For example, if the AFA involves federal funds, a provision requiring the parties to follow the audit requirements of
will be included in the AFA. Other federal requirements are also included in the AFA. In all cases for projects using federal funds, an approved Federal Project Authorization and Agreement (FPAA) is required before the LG can begin work.
The purpose of this section of the Manual is to help the LG:
- Identify and assign a Responsible Person in Charge (RPIC) for TxDOT and LG;
- Identify and assign a “Qualified” Person and a Project Manager for the LG;
- Identify, negotiate, execute, administer and manage an AFA for a transportation improvement project with TxDOT;
- Identify and complete TxDOT prescribed forms, if any, including Funding Structure Special Approval form, Oversight Level Special Approval form, Parts A & B, or other forms required to complete the AFA;
- Calculate and track funding; and
- Implement proper contract management procedures for an AFA.
The
provides additional information describing the parties to an AFA. In general, the LG will work with the TxDOT district to develop and execute the AFA, and the district will coordinate the process within TxDOT. The AFA determines which party, the LG or TxDOT, is responsible for conducting the work, providing funding or contributing items in kind. Under the contractual commitments established in the AFA, both TxDOT and the LG must follow their rules and regulations applicable to that type of work, as well as federal or state laws and requirements that may apply.