Flowchart 1: Intergovernmental Agreement (IGA)

Flowchart 1 Project Development Phase Information

1.1 Start: Awarding Agency: Notification of Funding Award

• Awarding agency issues notification of funding award.

1.2 Document: Local Public Agency: Notification of Award

• 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.
• 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).

1.3 Decision Item: Is the Project an MPO?

• What is an MPO?
• Federal statutes and regulations 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 no, go to 1.6
• If yes, go to 1.4

1.4 LPA Follows MPO procedures to amend TIP

• 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.

1.5 Once a TIP Amendment is approved by the MPO

• A packet containing the MPO resolution is forwarded to CDOT OFMB.
• MPO resolution to CDOT: 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.

1.6 Decision Item: Is the project in the STIP & consistent with Transparency Plans?

• If the project is not an MPO, is the project in the STIP and consistent with transportation plans?
  • 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 the project is not in the STIP & consistent with transportation plans, 1.7 Adjustments to STIP and 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.
• If no, go to 1.7
• If yes, go to 1.9

1.7 LPA/Region work together to add the project into the STIP and amend the Transportation Plans, if necessary

• 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.

1.8 LPA Preparation for scope meeting

• LPA provides cost estimate, scope of work, project schedule, approved funding application, in-kind information if applicable (see flowchart 1A), and completed risk assessment to LAC.

• 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.

1.9 Region and LPA hold initial project meeting(s)

• CDOT provides Form 1243, Local Agency Contract Administration Checklist.
• 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.

1.10 Regions requests IGA from Contracts Unit

• Upon receipt of cost estimate, Region budgets project by project phrase and (through OFMB) requests and receives project authorization from FHWA.
• This step can take 2 to 4 weeks.

1.11 Decision item: Outline or Traditional IGA

• 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 Outline IGA, go to 1.13
• If Traditional IGA, go to 1.12

1.12 Traditional 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.
• Region forwards forms (preliminary) 463, form 1243, Scope of Work, Performance Measures Certification, Risk Assessment, performance end dates and Funding Provisions (Exhibit C). Contracts unit drafts IGA and forwards to Region for review.
• The timing of this step depends upon the completeness of the information and the timing of the submittal.

1.13 Outline IGA

• Contracts drafts Outline IGA and forwards to region for review.
• Outline IGA: 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.

1.14 Region reviews IGA and returns to Contracts Unit

• This step takes about a week.

1.15 Contracts Unit coordinates LPA reviews

• Responsibility for coordination with LPA varies by region.

1.16 Document: Draft agreement

• 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.

1.17 Decision Item: Are changes needed to the draft IGA?

• Occasionally your agency will desire changes to the draft IGA.
• Please return the draft with your comments as instructed in the transmittal.
• If yes, go to 1.18
• If no, go to 1.19

1.18 Contracts Unit makes changes, as appropriate

• CDOT Procurement incorporates or resolves the comments with your agency and returns them to you for execution.
• Return to step 1.17.

1.19 LPA Approves IGA

• 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.

1.20 CDOT Approves IGA

• Contracts Unit coordinates execution of IGA within CDOT and distributes copies.
• Option Letter later prepared for each phase of work.
• This step takes 1 to 2 weeks.

1.21 Notice to Proceed issued by LPA

• 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.
• This step takes 1 week.

1.22 End: NTP

• Awarding agency ends with an NTP