High Risk Designation
A subgrantee may be considered “High Risk” if TxDOT determines
that a subgrantee:
- Has a history of unsatisfactory performance.
- Is not financially stable.
- Has not conformed to the terms and conditions of the award.
- Is otherwise not responsible.
Special conditions and/or restrictions must correspond to
the high-risk condition and must be included in the notification
to the subgrantee. Special conditions and restrictions may include:
- Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given time period.
- Requiring additional, more detailed financial reports.
- Additional project monitoring.
- Requiring the subgrantee to obtain technical or management assistance.
- Establishing additional prior approvals.
If TxDOT decides to impose such conditions, the TxDOT Project
Manager will notify the subgrantee as early as possible, in writing,
of:
- The nature of the special conditions/restrictions.
- The reasons for imposing the special conditions/restrictions.
- The corrective actions which must be taken before special conditions/restrictions will be removed.
- The time period allowed for completing the corrective actions.
- The method of requesting reconsideration of the conditions and/or restrictions imposed.