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Section 4: Agreement and Negotiations

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Introduction

Railroads may participate in the Replanking Program by negotiating a contract with the state called a “master agreement” or by executing separate agreements for each project.

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Master Agreements

Master agreements are in place with each railroad company that receives new projects on a regular basis and are the preferred contracting instrument under the railroad dedicated fund programs. Master agreements are updated each year by adding an Exhibit L (List of Projects) to the original master agreement. This eliminates the need for a separate agreement each year or for each project, saving administrative time and resources.

Master agreements contain:

  • scope of work, including:
    • the responsibilities of the railroad and the state
    • the quality of materials
    • the inspection of materials
    • requirement that all rail joints be welded
    • requirements for subgrade stabilization work (if necessary)
    • materials the state will not pay for (rails, tie plates, rail anchors, track spikes, and other material or labor intrinsic to maintenance of the railroad tracks)
    • railroad maintenance responsibilities
    • reference to the Exhibit A
  • a work order clause, explaining the requests, issuance, and receipt of work orders
  • a payment clause, covering:
    • conditions and guidelines for reimbursement
    • railroad submission of final bills
  • solicitation of bids clause (optional):
    • requiring that the railroad submit sufficiently detailed uniform proposals to qualified contractors using the Detailed Estimate for Railroad Solicitation of Bids (TxDOT Form 1891) (see “Form Available” following this list)
    • requiring the submission of at least three qualified contractors to the state for approval
    • requiring that approval of bids be contingent on sufficiency of detail, uniformity, and cost.
    • including information concerning the railroad’s recommendation
    • limiting the time frame of the project notice.

Form Available. A sample Form 1891, Detailed Estimate for Railroad Solicitation of Bids, is provided in Appendix A of the hard copy print version of this volume. This sample form may be photocopied as necessary. Copies may also be obtained from the Traffic Operations Division (TRF). In the on-line version of this volume, an MS Word version of the form may be opened and printed out by clicking on the following file name: 1891.

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Individual Project Agreements

The railroad may also participate in the Replanking Program by negotiating a separate agreement for each project on the program. In addition to the items required in a master agreement, individual project agreements should include:

  • project data, including:
    • location of the project
    • county
    • control-section-job (CSJ)
    • highway number or street name
    • project number
    • DOT number (if available)
    • city
  • a construction and maintenance clause, specifying:
    • details relating to the request, issuance, and receipt of work orders
    • materials for which the state will not reimburse the railroad (rails, tie plates, rail anchors, track spikes, and other material or labor related to the improvement or maintenance of the railroad tracks)
    • the railroads future responsibility for maintenance after the project is complete
  • conditions, including:
    • the conditions under which the agreement may be canceled.
    • a requirement that the railroad retain adequate cost accounting records
    • provision for state inspection of construction.
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Negotiations

TRF coordinates all comments from participating parties (districts, railroad companies, industries, counties, cities, etc.) and prepares all necessary agreements. TRF also acts as liaison in negotiations with all parties involved.

TRF reviews the Exhibit A plan layout and traffic control plans, and prepares and sends project notices to the railroad companies.

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