Section 3: Memorandum of Understanding and Advance Funding Agreement
The Federal Highway Administration (FHWA) has determined a LG must operate under TxDOT’s DBE program even if it has its own program already approved by USDOT. Participation in TxDOT’s approved DBE program requires the execution of a memorandum of understanding (MOU) between the LG and TxDOT. This can be accomplished through reference to the MOU in the Advance Funding Agreement (AFA) executed by both parties but eventually should be accomplished by joint execution of a MOU by the LG and TxDOT. LGs are encouraged to contact TxDOT’s Civil Rights Division for assistance.
The LG must implement TxDOT’s DBE program and coordinate closely with the TxDOT Districts. This includes TxDOT pre-approval of procurement procedures and periodic LG reporting requirements.