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Section 14: Alternative Delivery Project Agreements

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An Alternative Delivery project allows for public-private-partnership involvement by selecting a developer, that is typically a consortium of different companies. The developer on these types of projects is responsible for some or all the following: designing the project, financing the project, acquiring right of way, adjusting utilities, and construction of the roadway. The developer may also be responsible for maintaining and/or operating the roadway. The Alternative Delivery projects are designed to accelerate the construction and completion of transportation projects. Such public-private-partnerships are typically evidenced by one or more agreements, including a Comprehensive Development Agreement. Due to the accelerated project schedule, utility coordination meetings and other utility activities, including construction, may begin immediately after the award of the Alternative Delivery Project Agreement.

With respect to utility adjustments on Alternative Delivery projects, the developer may be responsible for a number of tasks which would otherwise be the responsibility of TxDOT on a traditional project, including entering into adjustment agreements with utility owners and reimbursing utility owners for their adjustment costs (where required, pursuant to Transportation Code, Section 203.092, as referenced above). Because of the "turnkey" nature of these types of projects, certain procedures for utility adjustments in the associated agreement may differ from the procedures of a traditional project, in which case the procedures in the Alternative Delivery Project Agreement will govern.

Additionally, if federal participation is included on the project, utility facility owners will use domestically manufactured products that are composed predominately of steel and/or iron to incorporate into the permanent installation of the utility facility - in compliance with the Buy America provisions of 23 CFR 635.410 as amended. Non-domestic iron and steel materials may be used provided the cost of such materials does not exceed one-tenth of one percent (0.1 %) of the individual Utility Agreement amount, or $2,500.00 whichever is greater. This De Minimis use (not to exceed 0.1%) is to be calculated by the following formula: Combined Cost of only those materials that are subject to the Buy America provisions and are Non-Compliant (limited to the individual utility agreement) divided by the Total Utility Relocation Cost (cited in the individual utility agreement).

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