POLICY: The Local Government Agency (LGA) and NCDOT will execute an Agreement that addresses relevant federal and state regulations governing the implementation of the project. Each party must adhere to all provisions for funding participation to occur. Any modifications, deletions, or additions to the Agreement must be agreed to in writing by both parties.
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A Locally Administered Project (LAP) Agreement (to be referred throughout this handbook as “Agreement") sets out the roles and responsibilities of NCDOT and any Entity that is being affected by a transportation-related project. The provisions of an Agreement will be based on the funding source (state or federal), who is performing the work (NCDOT or Entity), and who is receiving Reimbursement (NCDOT or Entity). In most instances, the Entity will be a LGA.
IMPORTANT: No work should be undertaken on a project before the Agreement is executed and funding authorized (see Funding Authorization). If work takes place on a particular phase without an Agreement and
Funding Authorization for that phase, it will not be eligible for
Reimbursement by NCDOT and FHWA.
This manual follows the outline of the Agreement and spells out how the terms of the Agreement will be implemented.
The Agreement outlines the responsibilities and the consequences of failing to meet required procedures. The terms of the Agreement define who has the primary responsibility for undertaking the design and construction of the project and/or the implementation of the program being funded (NCDOT or LGA).
Unless otherwise stated, the LGA has responsibility for all phases of the project and must comply with all provisions of the Agreement for NCDOT to participate in the funding.
Main Components of the Agreement
The Agreement must be fully executed and funds must be authorized before NCDOT can participate in the costs of the project.
For LAPs selected through NCDOT Prioritization, there should generally be an 80/20 federal/local funding share for the life of the project (no maximum), assuming the scope and project limits remain the same as when the project was scored in Prioritization. LAPs are intended to be designed and constructed to NCDOT standards; however, if betterments above and beyond NCDOT standards are preferred, the LGA would have to provide funding for the additional cost (e.g. local or federal discretionary funds, if applicable).
Possible Agreement Modifications
The Agreement is a binding and legal document. Any modifications, deletions, or additions must be agreed to in writing by all parties. Modifications may also require amendments to the State Transportation Improvement Program (STIP) which need to be coordinated with the respective Metropolitan Planning Organization (MPO)/ Rural Planning Organization (RPO). Examples include:
- Change to the scope of work (addition or deletion of work)
- Change to Milestone Dates
- Change to the parties of the Agreement – usually only occurs when NCDOT Division Offices agree to undertake the design or construction of a project
- Changes to the funding amount
If the LGA requests additional funding, it should be reviewed by the Division to determine if the requested amount is necessary to complete the project. If the Division agrees with the request for additional funds (or some portion of the request), an updated Cost Verification Memo (CVM) needs to be submitted for approval by the Division Engineer. After the CVM is approved, a Supplemental Agreement (see below) with the LGA is prepared with the updated cost.
Voiding an Agreement
If for any reason a project cannot be completed as agreed upon, then the Agreement must be voided. The LGA should initiate this process with the respective Planning Organization (MPO/RPO). There may be financial consequences to voiding an Agreement – see Reimbursement for more information.
Agreement Application
Once the project has been programmed into the NCDOT STIP, the LGA will be required to submit an application via NCDOT's
Enterprise Business Service (EBS) Portal project management tool to prepare an Agreement (see
Procedure).
The Agreement Application will ask specific questions about the scope of the project, location, implementation schedule, phases for reimbursement, and responsibilities of each party.
To prepare an Agreement efficiently and accurately, it is important for the LGA to fully complete the Agreement Application. If any information is omitted, the application will be returned to the LGA.
Supplemental Agreement
Any material changes in the scope, character, complexity, timeline, funding, or phases of work of the project from those included in the Agreement require a change request, or Supplemental Agreement, between NCDOT and the LGA.
Procedure
Preparing and Executing an Agreement
- The LGA will receive notification from the respective MPO/RPO that the project has been programmed and a STIP number has been generated, which indicates they can proceed with an Agreement Application.
- The LGA will
complete and submit the Agreement Application through the EBS portal.
- The LPMO will schedule a kickoff meeting with the LGA, if needed, to discuss overall project scope, schedule, and responsibilities.
- NCDOT will draft an Agreement within two weeks of receiving a completed Agreement Application and after the kickoff meeting (if applicable) and will send it to the LGA for signatures via DocuSign.
NOTE: The kickoff meeting may result in changes to the project scope that could impact the timeline of the Agreement being sent out. - After receiving the Agreement, it should be reviewed and signed by the LGA within 120 days.
- Once both parties have signed, an electronic copy of the fully executed Agreement is complete.
Modifying an Agreement
- The LGA submits a Change Request in EBS to modify the Agreement, describing the requested changes.
- NCDOT will review and respond in writing. Not all requested changes may be accepted.
- Changes may be made in the form of an amended or Supplemental Agreement or may be documented via correspondence.
