In 2019, the TxDOT Contract Services Division (CSD) further streamlined formats for AFAs with LGs and included a newly identified category for on-system projects in which the LG contributes all funds and performs all activities known as a Local On System Improvement Project Agreement (LOSA).

The formats consist of standard agreements, such as:

The use of the above agreements further simplifies the majority of local project agreements and substantially reduces executive review and processing time.

The AFA standard agreement sets out the general terms and conditions of the relationship and cites the federal and state laws that govern the agreements with LGs.

The AFA is used to define the scope of work and funding responsibilities for a specific project. Execution of an AFA requires formal action by the LG’s governing body. The AFA contract period usually ends upon completion of the project unless the AFA is terminated early or is extended based on an amendment executed by both parties. The AFA specifies the distribution of responsibilities for performing work, such as right-of-way acquisition, environmental, preparation of the PS&E, construction of the roadway and other aspects of the project.

The AFA also specifies which party will provide what resources, such as the land or the funding necessary for a project. The party responsible for performing work may or may not be the party responsible for paying for the work. The AFA also includes general terms and conditions of the agreement.