Chapter 1: Standards for Contracts

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Section 1: Overview

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The Negotiated Contracts Policy Manual presents statutory authority and policies to guide Texas Department of Transportation (TxDOT) personnel in the selection, administration, and monitoring of entities that will perform work under negotiated contracts using uniform standards prior to and following contract execution. Policy specific to agreement types (i.e. Advance Funding Agreements, Scientific Services) can be found in the chapters addressing those agreement types.

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Statutory Authority

Appropriate law, federal regulation, state regulation, and TxDOT policy govern all TxDOT contracts. For example:

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  • State and Federal Statutes are written laws or acts enacted by the Texas Legislature or the U.S. Congress,
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  • Code of Federal Regulations (CFR) is a record of federal regulations that TxDOT must reference and follow if federal dollars are used to fund an outsourced project in any capacity,
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  • Texas Government Code (Tex. Gov’t Code) is a record of laws passed by the Texas Legislature governing all state agencies,
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  • Texas Transportation Code (Tex. Trans. Code) is a record of laws passed by the Texas Legislature specific to transportation, and
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  • Texas Administrative Code (TAC) is a record of rules that state agencies have adopted for implementing certain statutes set forth in the Government Code and Transportation Code. Rules have the force of law.

Negotiated Contract Defined

When used in this manual, the term negotiated contracts refers to those contracts that govern services whose authorizing statute requires TxDOT to select a performing entity using a process other than competitive bids. A negotiated contract may be:

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  • a contract with a public or private entity to obtain a service that requires TxDOT to perform a selection process in which one or more items may need to be evaluated, scored, or negotiated prior to the award and execution of a contract,
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  • a grant, or
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  • an advance funding agreement (AFA) that requires TxDOT to determine which entities will perform required tasks and which entities will contribute resources (for example, land, funds or labor) to complete a transportation project.
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