Risk Assessments, Evaluations of LG Qualifications and Project Update Evaluations

General
LGs may manage elements of the project development process (environmental, right-of-way acquisition, utility relocation, design/bid document preparation, letting and award, and construction/project close-out) with written TxDOT approval. This approval is typically provided by language in the AFA executed by TxDOT and the LG.
As required by federal law, federal regulations and state regulations, TxDOT has a responsibility to determine each LG is qualified and has adequate resources and controls to perform the project work, prior to authorizing it to perform any element of the project development process. TxDOT has developed a standardized process and a series of forms to evaluate each LG’s qualifications for performance of one or more elements of the project development process. The process includes the following forms: LG Agency Risk Assessment; Oversight Level Special Approval, Parts A and B; and Project Update Evaluation of LG Qualifications.
Federal Requirements
  1. 23 U.S.C. §106(g)(4)
    – Requires TxDOT to determine if a LG that is a sub-recipient of federal funds has adequate project delivery systems and sufficient accounting controls in place to successfully complete the project element(s) managed by the LG.
  2. 2 CFR §200.331(b)
    – Requires TxDOT to evaluate a LG’s risk of noncompliance with applicable laws and regulations, as well as the terms and conditions of its sub-award in order to determine TxDOT’s appropriate monitoring level.
  3. 23 CFR §1.11
    – TxDOT may utilize, under its supervision, the services of well-qualified and suitably equipped engineering organizations of other governmental instrumentalities for making surveys, preparing plans, specifications and estimates, and for supervising the construction of any project.
  4. 23 CFR §635.105
    – TxDOT is not relieved of its responsibility for the construction of all federal-aid projects, even when it has authorized a LG to perform element(s) of the project. TxDOT is further responsible for ensuring such projects receive adequate supervision and inspection to ensure projects are completed in conformance with approved plans and specifications; all federal requirements are met; and the LG is adequately staffed and suitably equipped to undertake and satisfactorily complete the work.
State Requirements
  1. 43 TAC §15.52(4)
    – Requires the agreement between TxDOT and the LG specifies the funding arrangement agreed upon between the parties.
  2. 43 TAC §15.52(3)
    – Requires the agreement to identify which party is responsible for each element of the project. In addition, TxDOT may only approve the LG’s performance of an element of the project after consideration of the LG’s previous experience and capability to perform the type of work proposed for completion by the LG.
Required Practices
The
LGPM Guide
provides the procedures and practices associated with addressing LG risk assessments, evaluations of LG qualifications and project update evaluations. All new LG projects require completion of a risk assessment and an evaluation of LG qualifications prior to execution of the project AFA.