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Section 2: Types of AFAs

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Contract Services uses a streamlined format for AFAs with local governments. The format consists of two components:

The MAFA contains the general terms and conditions and cites the federal and state laws that govern these agreements between the State of Texas, through TxDOT and the local governments. The local government adopts a MAFA and agrees that its general terms and conditions will be followed on all the local projects undertaken by TxDOT and the local government, unless a specific exception is made in a project agreement (LPAFA). Signing a MAFA helps the two parties avoid negotiating and reviewing standard contract terms and conditions each time they wish to enter into an agreement. The MAFA does not specify either the cost or the scope of work for individual projects. The MAFA does not have a set termination date and is in effect until terminated by TxDOT or the local government.

Once a MAFA has been adopted, a LPAFA is used to define the scope of work and funding for a specific project. The LPAFA contract period usually ends upon completion of the project unless the LPAFA is terminated in accordance with the terms of the contract. The LPAFA specifies the division of responsibilities for performing work, such as:

The LPAFA also specifies which party will provide what resources, such as which party will provide the land or the cash necessary for a project. The party responsible for performing work may or may not be the party responsible for paying for the work. The LPAFA does not include general terms and conditions of the contract, as TxDOT and the local government agreed to these provisions in the MAFA. If there are exceptions to the MAFA that pertain to a specific project, then the LPAFA provides for these exceptions. It expands or adds to what is not covered in the MAFA.

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Advance Funding Agreement (Long Form)

An AFA (long form) template must be used when the local government elects not to enter into a MAFA. It can also be used even if the MAFA is in place. Each AFA contains the scope of work, who is responsible for the funding, who is responsible for doing the work, the general terms and conditions, the local government’s resolution, the project map, and it also cites the federal and state laws that govern the agreement with the local government.

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Voluntary AFA

The AFA for a Voluntary Project is a standard template to be used when cash or other resources are voluntarily contributed by a local government or state agency to an on-system project. The local government funds 100% of the costs for a distinct project or a discrete element of a larger project. The agreement does not contain required federal provisions because the contributed resources are not a part of a federal program agreement. Projects or discrete elements of a project that are funded by federal or state programs requiring a financial match are not eligible for a Voluntary AFA.

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Non-Construction AFA

The AFA for non-construction projects is a standard template for local projects that do not involve construction. A typical non-construction AFA terminates upon completion of the project or termination by either party. A non-construction AFA requires a termination date of no more than three years.

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Templates for all AFAs, LPAFAs and the MAFA can be found on Contract Services’ intranet site.

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