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Section 8: Grant Agreement and Contract Amendment

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Introduction

During the active period of a project, conditions may change that require the original grant agreement to be amended.

If both parties consent to altering the project in some way, then a formal grant agreement or Interagency Cooperation Contract (IAC) amendment document must be executed to effect the change.

Some reasons for amending the grant agreement or IAC might include:

  • adding or deleting a performance goal
  • increasing or decreasing the budgeted amount
  • moving budget cost items from one cost category to another
  • adding, deleting, or changing performance measures
  • changing the project beginning or ending date
  • changing, adding, or deleting listed objectives of the action plan.

Amendments are also executed to authorize a material change in other terms and conditions.

NOTE: An amendment cannot be used to authorize new or different work not related to the scope of the original grant.

NOTE: A written amendment must be fully executed by all parties before the changes are implemented.

NOTE: All amendments to a grant agreement or IAC must be fully executed at least 30 days prior to the end of the grant or contract.

NOTE: Additional money cannot be added unless additional work, time, or other elements are also added.

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Amendment Process

Amendment requests are initiated by the subgrantee and submitted to the Texas Department of Transportation (TxDOT) project manager through the Traffic Safety Electronic Grant Management System (eGrants). If the amendment request is approved, the project manager will open the grant pages in eGrants to allow for changes to be made to the existing grant agreement. Once these changes have been submitted, the project manager reviews the changes, and if the project manager approves the changes, the changes are submitted to the Traffic Operations Division - Traffic Safety Section (TRF-TS) program director and the TRF-TS section director for review.

If approved, a notification will be submitted to the subgrantee approving the changes. eGrants will generate a new amended grant agreement to include the amendment number, and this agreement will supersede the existing grant agreement. At this point, the subgrantee will obtain signatures necessary to fully execute the new amended agreement.

To review the procedures involved in the grant amendment process, see the Grant Amendment Instructions on the eGrants Help Page.

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Approval Process

A formal amendment will follow the same approval processing procedures as the original agreement. The same signature authority that applies for the original agreement also applies for any amendment to that agreement (see Chapter 1, Section 4, “ Signature Authority”). As with the original grant agreement, the amendment becomes effective when signed by the appropriate authority. If the agreement is for a local project under $100,000, the District Engineer (DE) signs the amendment; if the amount is $100,000 or more, the DE recommends approval to TRF.

NOTE: For IACs of $50,000 or more, the amendment will be processed through the TxDOT General Services Division - Contract Services Section (GSD-CSS) and signed by the CSS office director.

NOTE: If the amendment is to an IAC that was initially less than $50,000, but increases to $50,000 or more as a result of the amendment, then the amendment must be processed through CSS.

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Budget Amendments

No changes to a subgrantee’s budget are allowed without a budget amendment approved by TRF. Therefore, no changes may be made to the approved total budget amounts (that is, line item cost categories and accounting codes) in the Request for Reimbursement (RFR) until after a budget amendment is approved, except as noted under the following subheading.

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Allowable Cost Overruns

Subgrantees may overrun a budget category (see “ Budget Categories” in Chapter 3, Section 7 of this manual) without a budget amendment, as long as the overrun does not exceed 5 percent of the maximum amount eligible for reimbursement and provided there is a commensurate underrun elsewhere in the budget. The maximum amount eligible for reimbursement under the approved budget must not be exceeded without an approved budget amendment.

Subgrantees must notify the district (for district-managed projects) and the TxDOT TRF-TS of any cost overruns and related underruns. This notification is accomplished by submitting an RFR, including completing the eGrants RFR Budget Summary Page. See RFR Budget Summary Help for assistance in completing the information necessary to provide the notification of budget overruns/underruns.

EXAMPLE: A subgrantee is projecting an overrun of $200 in Travel and Per Diem (accounting code 300 of the Labor category). The total reimbursable amount in the approved budget is $4,000. Since the projected $200 overrun is exactly five percent of $4,000, it meets the allowable overrun policy requirements, provided there is an underrun of at least $200 in another budget category (such as Other Direct Costs).

For Selective Traffic Enforcement Program (STEP) grants only, subgrantees are not allowed to use underrun funds from the TxDOT amount of salaries, subcategory A, “Enforcement,” or B, “PI&E Activities,” to exceed the TxDOT amount listed in subcategory C, “Other.” Also, subgrantees are not allowed to use underrun funds from the TxDOT amount of Salaries, subcategory A, “Enforcement,” or C, “Other,” to exceed the TxDOT amount listed in subcategory B, “PI&E Activities.” The TxDOT amount for subcategory B, “PI&E Activities,” or C, “Other,” can only be exceeded within the five percent flexibility, with underrun funds from budget categories II or III.

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Suspension of Time

When a grant agreement includes a defined project period with an established completion date, there can be no suspension of time. Work can be suspended, if necessary, but time charges cannot.

The agreement expires on the specified date unless a prior amendment is executed.

NOTE: If a local government needs additional time to complete the project because of delays associated with any suspension of work, an amendment to extend the project period must be executed before the original grant end date is reached and if the project is included in the new Highway Safety Performance Plan (HSPP).

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Amendment Filing

When the amendment is fully executed and filed with the TxDOT Traffic Operations Division - Traffic Safety Section (TRF-TS), the document should be filed with the original agreement.

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Process Overview

An overview of the eGrants amendment process can be found in the eGrants Amendment Process Workflow (flow chart).

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Grant and Contract Agreement Termination

The executed traffic safety grant or contract agreement shall remain in effect until the subgrantee has satisfactorily completed all services and obligations described in the grant or contract agreement and these activities have been accepted by TxDOT, unless:

  • the agreement is terminated in writing with the mutual consent of both parties, or
  • there is a written 30-day notice by either party, or
  • TxDOT determines that the performance of the project is not in the best interest of TxDOT and informs the subgrantee that the project is terminated immediately.

TxDOT will compensate the subgrantee only for eligible expenses incurred during the grant period specified in the grant agreement that are directly attributable to the completed portion of the work covered by the grant or contract agreement provided that the work has been completed in a manner that is satisfactory and acceptable to TxDOT. The subgrantee will not be reimbursed for any new obligations after the effective date of termination.

For instructions on procedures for terminating or requesting to terminate a grant through the eGrants system, see the Grant Termination Instructions on the eGrants Help Page.

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Process Overview

An overview of the eGrants Grant Termination Process can be found in the eGrants Grant Closeout Process Workflow (flow chart).

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