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Flowchart 1: Intergovernmental Agreement (IGA)

Full Flowchart

You can also dig more deeply into the separate pieces of the flowchart below.


Congratulations! Your agency has just been notified either verbally or by letter that you have been selected by your planning region to receive federal funds for a local project. Depending on your location within the state and the funding program, this notification may be from your planning region or from CDOT. You may have many questions at this time. Your CDOT planner or CDOT project manager can answer questions about getting started with your project. Please see the list of CDOT contacts available on this site on the right rail.

Local agency projects are selected or approved to receive federal funding by awarding agencies in accordance with the particular eligibility requirements and selection processes of each individual funding program. Metropolitan planning organizations (MPOs), transportation planning regions (TPRs) and CDOT are the customary agencies selecting projects to receive a funding award. Examples of programs include the Surface Treatment Block Grant Program (STBGP), Congestion Mitigation Air Quality (CMAQ), a portion of Transportation Alternative Program (TAP) funds, and Bridge Off-System Program (BRO).

What is an MPO? Federal statute and regulation establish metropolitan planning organizations (MPOs) for urbanized areas over 50,000 in population. In Colorado, these areas are the Denver Regional Council of Governments (DRCOG) MPO, the Pikes Peak Area Council of Governments (PPACG) MPO, the North Front Range MPO (NFRMPO), the Pueblo Area Council of Governments (PACOG) MPO and the Grand Valley MPO (GVMPO).

If your agency is located within a MPO, there are certain federal regulations you must follow. One of the most important is that your project be listed in the MPO's Transportation Improvement Program or TIP. Federal regulations concerning TIPs can be found at 23 CFR § 450.326 – Development and content of the TIP. For additional information, please watch the federal video on project requirements.

A transportation improvement program (TIP) identifies all projects that will receive federal or state funds in the MPO area. Each MPO is responsible for the development, approval and amendment processes for its TIP. You should contact your MPO to determine if your project is in the TIP or to determine the process for adding your project to an existing TIP. Adding a project to an existing TIP is done by TIP amendment. Depending on your particular MPO, the timeframe to amend the TIP can take up to 10 weeks.

The MPO's governing body approves all TIPs and TIP amendments and forwards this information to CDOT for incorporation into the Statewide Transportation Improvement Program (STIP). Federal regulations require the governor to approve all TIPs and TIP amendments. Once a TIP amendment has been approved, the MPO will forward a packet of information, including the board resolution, to CDOT Office of Financial Management and Budget.

All projects that receive federal funds must be identified in the Statewide Transportation Improvement Program (STIP) for the funding to be released for the project. In order for your project to receive funding, it must also be consistent with the transportation plan for its area and the Statewide Transportation Plan. CDOT will work with you to review any federally funded local project to ensure that the project is listed in the approved STIP and the scope of the project is consistent with the long-range transportation plans.

More information about the STIP can be found at 23 CFR § 450.326 – Development and content of the statewide transportation improvement program (STIP). Information concerning transportation plans is provided in 23 CFR § 450.216 - Development and content of the long-range statewide transportation plan.

Under the current federal transportation act, CDOT and each of the five metropolitan areas with a population over 50,000 are required to develop and adopt a long-range transportation plan. Per state statute in Colorado, each of the 10 transportation planning regions (TPRs) located outside of the metropolitan areas also prepare long-range transportation plans.

If your project is not consistent with the STIP, the transportation plan for your area, or the Statewide Transportation Plan, CDOT will amend the STIP and work with you and the affected TPR to amend the plans. The process to amend the local transportation plan and the Statewide Transportation Plan is approximately 12 weeks. For more information about the STIP, transportation plans and amendment processes you should talk to your CDOT region planner.

You should assemble the following information in advance of the initial project meetings with CDOT:

  • Scope of work
    (See example SOWs in the resource section of this website.)
  • Project cost estimate, by phase
    (See example templates in the resource section of this website.)
  • Approved funding application as submitted to the awarding agency
  • Non-federal, nonfinancial (in-kind) contribution information, if applicable
    (See Flowchart 1A.)
  • Completed Subrecipient Risk Assessment, if applicable.
    Contact your CDOT project manager for this template.
  • Performance period start and end dates for the relevant phase(s) of work

At the initial project meetings, you will work with CDOT to develop CDOT Form 1243 Local Agency Contract Administration Checklist, which identifies whether CDOT or the local agency is responsible for each project element. Form 1243 will become part of the Scope of Work and will be incorporated into the Intergovernmental Agreement (IGA). You will refer to Form 1243 throughout the life of the project.

CDOT develops CDOT Form 463 Design Data (preliminary information), after the meeting.

After the initial project meetings and receipt of all necessary information from your agency, CDOT prepares an IGA. Using the cost estimate provided by you, CDOT budgets the project by project phase and requests project authorization from FHWA.

Depending on the funding information provided by your agency at the initial project meetings and from discussion with the CDOT Region, CDOT Procurement prepares a traditional IGA or an outline IGA.

If all sources of funding for all phases of the project are secured and known at the initiation of the funding agreement, CDOT will prepare a traditional IGA. This type of IGA typically takes slightly longer to put into place initially, but once in place, is complete for the project's duration. The following information is used in drafting the IGA:

  • CDOT Form 463 Design Data (preliminary information)
  • CDOT Form 1243 Local Agency Contract Administration Checklist
  • Performance period start and end dates
  • Funding provisions, which form Exhibit C of the IGA
  • Performance Measures Certification

Once the draft agreement is prepared, it is sent to your CDOT region for review.

If your agency or CDOT wants to get an IGA in place quickly, an outline IGA, or zero dollar agreement is prepared. This type of IGA will not initially encumber funds. Before each phase of the project is initiated, an option letter will be prepared that will encumber funds for that phase.

The following information is used in drafting the IGA:

  • CDOT Form 463 Design Data (preliminary information)
  • CDOT Form 1243 Local Agency Contract Administration Checklist
  • Performance period start and end dates
  • Funding provisions which will eventually form Exhibit C of the IGA
  • Performance Measures Certification

Once the draft agreement is prepared, it is sent to your CDOT region for review.

The CDOT region reviews the draft IGA and returns with comments to CDOT Procurement.

CDOT Procurement coordinates your agency's review of the revised IGA with the CDOT Region.

CDOT will send you the draft IGA for review. An example of the traditional and outline IGAs can be found on the right rail of this site under resources.

Occasionally your agency will desire changes to the draft IGA. Please return the draft with your comments as instructed in the transmittal.

CDOT Procurement incorporates or resolves the comments with your agency and returns to you for execution.

Your agency will sign the IGA, either electronically or manually, and typically will pass a resolution approving the expenditure of funds. You will then return the signed IGA to CDOT for execution. CDOT is implementing the use of DocuSign for electronic signatures on IGAs.

CDOT Procurement coordinates the execution of the IGA within CDOT and distributes copies of the agreement to the region.

After receipt of the executed IGA, the region issues you a Notice to Proceed. You may not begin work until you have received a notice to proceed from CDOT.

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