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COOPERATIVE AGREEMENT
BETWEEN THE
(Federal resource agency),

FEDERAL HIGHWAY ADMINISTRATION (FHWA)
(IF APPROPRIATE)

AND THE

(STATE) DEPARTMENT OF TRANSPORTATION

RELATIVE TO
PRIORITY HIGHWAY DESIGN
PROJECT REVIEW

(DATE)

PREAMBLE: This Cooperative Agreement (Agreement) between the _____________(state) Department of Transportation, the Federal Highway Administration (FHWA), and the _____________(Federal resource agency) sets forth the responsibilities of the signatory agencies (Parties) relative to priority review of highway projects with the goal of achieving timely design and implementation of adequate, safe and economical highway improvements while also assuring such design and implementation is sensitive to the protection of _____________ (identify Federal Resource Agency's primary responsibility, e.g. protection of natural resources, fish and wildlife, etc.) for which the ____________(Federal resource agency) is responsible under federal statute and regulation.

WHEREAS, this Agreement is entered into under the authority of ________________(Identify funding authority)

WHEREAS, because of federal-aid highway funding increases under the Transportation Equity Act for the 21st Century (TEA-21), the __________(state DOT) has substantially increased the number of highway construction projects the _____________(Federal resource agency) has to review pursuant to (list the agency's applicable statutory responsibilities)

WHEREAS, the _______________(Federal resource agency) has indicated that due to staff resource constraints, it is currently unable to provide the ________(state DOT) with priority review and permitting decisions for the increased number of highway construction projects pursuant to its responsibilities; and

WHEREAS, the Parties have determined that it would be mutually beneficial to supplement _____________(Federal resource agency) staffing above normal levels which were established at pre-TEA-21 highway program levels; and

WHEREAS, the Parties have determined that any supplemental staffing above normal levels would provide priority review of federal-aid highway construction projects contemplated or under design by ___________(state DOT); and

WHEREAS, (state DOT) is willing to reimburse the______________(Federal resource agency) for supplemental staffing to provide these functions; and

WHEREAS, the Federal Highway Administration (FHWA) has indicated and agrees that _________ (state DOT's) apportioned Federal-aid highway funds can be used to support this agreement and would be eligible for reimbursement at applicable federal-aid match rates; and

WHEREAS, guidance provided by ___________(Federal resource agency) indicates such agreements and funding transfers must be able to demonstrate an improvement in performance.

NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the signatory parties to this Agreement concur with the following responsibilities and terms.

I.AGENCY RESPONSIBILITIES

A.____(state DOT) Shall:

1. Program a federal-aid project to track costs and support state payment to the ___(Federal resource agency) for the costs contemplated by this Agreement, including:
   • Salary and benefits for (number of employees) (__) full-time employee (meeting the professional standard described in Attachment __) adjusted annually to cover appropriate step-increases and cost of living allowance (COLA) costs awarded Federal government employees at a rate equivalent to a federal white-collar (Indicate appropriate Pay Schedule and General Schedule (GS- )). Attachment ___ is attached by reference to this Agreement.
   • Actual burdened overhead rate carried by the __(Federal resource agency),__ including:
     • Special Effective Rate,
     • Departmental Rate, and
     • General Administrative Rate.
       
       An illustrative breakdown of these rates is shown in Attachment ____ for a (Identify appropriate GS and step levels).
   • Travel and per-diem at federal government rates as needed to support the priority review contemplated by this Agreement.
   • It is anticipated that total annual funds needed for these services will not initially exceed __($)__. Actual costs may be more or less than this amount, depending on the amount of travel needed to support the priority review contemplated by this Agreement. __ (state DOT) shall advance additional state payment as necessary.
     
     In the event that ___(state DOT) workload allows, ___(Federal resource agency) funding is available, and the __(state DOT)__ Project Manager agrees, the employee may work on assignments other than __(state DOT) projects and charge that work to the appropriate __(Federal resource agency) account. However, it is anticipated that _ (state DOT) workload will be sufficient to cover a full time employee. This situation would be executed only if beneficial to both agencies.
2. Upon receipt of a signed Agreement/modification, transmit an advance state payment equal to either the annual total of funds needed to support the services contemplated by this Agreement or additional funds needed to fund any modifications. To ensure proper accounting, the State DOT should refer to the agreement number in transmitting payments to the Federal agency.
   
   
3. Review for approval, (identify frequency, e.g. monthly) ___(Federal resource agency)__ submittals of actual account of expenditures for salaries, benefits, travel and indirect costs as drawn against advance state payment in support of work contemplated in paragraph 1.B.1.
   
   
4. If the __(state DOT) Project Manager agrees with the Federal resource agency) monthly account of expenditure as submitted, an approval will be transmitted to the _____(Federal resource agency)____ Project Manager within ten (10) working days. If the ____(state DOT )_ Project Manager disagrees with this submittal, a meeting to clarify the account of expenditures will be requested within (identify number of working days). In the event of a disagreement over the account of expenditures, ___(state DOT ) pledges to negotiate in good faith towards a reconciliation of the disputed amount.
   
   
5. Reconcile and adjust federal-aid project funding and/or advance state payment to the ___(Federal resource agency)_ at the point of Agreement extension, modification, or termination and upon completion of this cooperative agreement make any adjustments needed in Federal share payable as consistent with __(cite appropriate USC)___.
   
   
6. Hold (identify frequency, e.g. quarterly, monthly, etc.) meetings with the ___(Federal resource agency)__ to establish priorities and evaluate work performed under the agreement.

B.___(Federal resource agency)__ Shall:

1. ___(Federal resource agency)__ shall supplement its existing staff, which currently processes ___(state DOT) projects on a routine basis, with qualified staff as detailed in Attachment __, and use the funds provided under this Agreement to pay the costs of salaries, associated benefits and actual burdened overhead rate; and to reimburse reasonable travel expenses in accordance with the Federal Travel Regulations, 41 C.F.R. Chapter 301, which is incorporated into this agreement by reference.
   
   
2. ____(Federal resource agency) shall seek to hire a permanent career professional staff person to undertake work contemplated by this agreement, and as necessary shall pay all permanent change of station (PCS) costs associated with filling the position.
   
   
3. ____(Federal resource agency) shall ensure that 100% of the supplemental staff contemplated by this Agreement is detailed to work on the priority projects identified by the ___(state DOT) in accordance with the coordination procedures defined in I.D. unless detailing to other projects is agreed to by the ___(state DOT )__ Project Manager, see I.A.1.
   
   
4. _____(Federal resource agency) shall ensure that the supplemental staff identified in Attachment __ shall keep daily time records identifying the number of hours spent working on each specific ___(state DOT)____ project and any other work tasks such as those listed under I.D. relative to coordination. These records shall account for 100% of the time worked by supplemental staff, including any time spent on non- (state DOT)____ work. In addition, __(Federal resource agency) shall keep accurate and separate accounting records of all receipts and disbursements of all funds received pursuant to this Agreement and produce such records for examination as required by the __(state DOT) or the Federal Highway Administration and shall permit extracts and copies to be made by these other signatory agencies or their duly authorized representatives. ____(Federal resource agency) shall keep records substantiating hours and costs billed pursuant to this Agreement for a period of at least three (3) years after the final billing is submitted. These records shall be subject to audit by the __(state DOT)___, as appropriate.
   
   
5. Hold (specify frequency, e.g., quarterly, monthly, etc.) meetings with ____(state DOT) to evaluate work performed under this Agreement.
   
   
6. Upon receipt of initial advance state payment supplement existing staff as expeditiously as possible to support work contemplated by this agreement.
   
   
7. Provide (specify frequency — monthly, quarterly, or semiannual, as appropriate) accounting records using an "Advice Notice" and will return unused funds to the State of ____________ at project completion or termination.
   
   
8. In the event of disagreement over statements of expenditure, negotiate in good faith towards reconciliation of the disputed amount, continue the priority review of highway construction projects throughout negotiations as long as current advance state payment is sufficient to cover costs, and credit the ___(state DOT)__ for any amount determined to be a __(Federal resource agency) overcharge.

C. FHWA Shall:

1. Approve programming a federal-aid project to accomplish the work contemplated by this Agreement at the applicable federal-aid reimbursement rate.
   
   
2. Under the authority of ______________, reimburse __(state DOT) the total amount of federal share payable for any project programmed (including advance payments) to support this Agreement upon obtaining notification of its execution.

II.SCOPE

1. In the event of conflicting transportation priorities, the, __(state DOT) in coordination with the FHWA, will determine the priority listing of projects for the ___(Federal resource agency) which will guide the __(Federal resource agency) supplemental staff efforts in the priority review process.
   
   
2. Initially, __(state DOT) and the __(Federal resource agency) will hold _(identify frequency, e.g., monthly, biweekly, etc.)_meetings to discuss coordination of the priority review process. After a reasonable start-up period, the scheduling of these meetings may be changed at the discretion of the project managers.
   
   
3. Both ____(state DOT) and the ____(Federal resource agency) agree that ready and reasonable access will be provided to working level staff of the other agency in an effort to minimize the need for formal meetings.
   
   
4. While the focus will be on review permitting decisions for priority __(state DOT ) projects, ____(Federal resource agency) ____ supplemental staff may also be involved in other tasks which support agency coordination and which serve to expedite the implementation of the ____(state DOT)____ highway construction program and compliance with the statutes and regulations for which the ___(Federal resource agency)___ bears responsibility. Examples of other tasks which may be assigned at the request of ____(state DOT) and with concurrence of the ______(Federal resource agency) include, but are not limited to (the following are examples):
   • early review of projects contemplated for programming.
   • participation in agency scoping activities,
   • review of data base information relative to permit activities along the state's highway system,
   • provide detailed input on alternatives under discussion, or
   • review and provide comments on systems-level planning documents.

III.PERFORMANCE OBJECTIVES — Example

A.The ___(Federal resource agency) agrees to meet the goals established by these performance indicators:

1. The __(state DOT) and __(Federal resource agency) will review existing interagency coordination processes and formulate recommendations to streamline procedures and increase efficiency within three months of the individual in the position starting duty.
   
   
2. The ____(Federal resource agency) will provide a preliminary response to ___(state DOT) on all applications within (___) days of submission to include a status update on the expected level of complexity and the estimated future action that will be needed on the permit.
   
   
3. Unless initially flagged as a more complex project, the __(Federal resource agency) will (identify specific task(s), e.g. issue permits) within (______) days of receipt of a completed __(as appropriate, application, document, etc.)__ from ___ (state DOT) .
   
   
4. The _____(Federal resource agency) will meet all timelines established by regulation for (identify specific task, e.g., environmental review, permit issuance, etc.) unless otherwise previously indicated or noted as an exception. The ____ (Federal resource agency) will inform _____(state DOT) if project evaluation may exceed standard processing times due to issues such as required Endangered Species Act coordination, controversial public interest factors, etc.

IV.GENERAL TERMS

1. Length of Agreement. The length of this Agreement is _____ years from the date of signature of the last signing party unless extended or terminated as provided in III.B. and III.C.
   
   
2. Modification and Extension. This Agreement may be modified, amended or extended in _____ increments by the mutual Agreement of the signatory parties.
   
   
3. Termination. This Agreement may be terminated by either the ___(state DOT) or the ___(Federal resource agency) upon _____days written notice to the point of contact/project manager in the other agency if the party requesting termination has demonstrated that other agency has not substantially fulfilled the responsibilities and terms of the Agreement after being provided with notice and _____ days to remedy the situation.
   
   
4. Point of Contact/Project Managers.
   1. The Point of Contact/Project Manager in each signatory agency is as listed below unless such responsibilities delegated by this individual.
      1. (state DOT) :
         Name:
         Address:
         Tel:Fax:E-mail:
         
      2. (Federal resource agency)
         Name:
         Address:
         Tel:
         Fax:
         E-mail:
      3. FHWA:
         Name:
         Address:
         Tel:
         E-mail:
5. Required Clauses.
   
   During the performance of this Agreement, the parties agree to abide by the terms of Executive Order 11246 on non-discrimination and will not discriminate against any person because of race, color, religion, sex or national origin. The participants will take affirmative action to ensure that applicants are employed without regard to their race, color, religion, sex or national origin.
   1. No member of or delegate to Congress, or appointed transportation official or commissioners, shall be admitted to any share or part of this Agreement or any benefit that may arise there from; but this provision shall not be construed to extend to this Agreement if made with a corporation for its general benefit.
      
      
   2. The parties agree that in any contracts to be developed and awarded pursuant to this Agreement all design, plans, specifications, estimates of costs, construction, utility relocation work, right-of-way acquisition procedures, acceptance of the work and procedures in general shall at all times, conform to the applicable federal and state laws, rules, regulations, orders and approvals, including, specifically, procedures and requirements relating to labor standards, equal employment opportunity non-discrimination, compliance with the Americans with Disabilities Act, anti-solicitation, information, auditing and reporting provisions.
6. Continuation of Existing Responsibilities.
   1. The parties to this Agreement are acting in an independent capacity in the performance of their respective functions under this Agreement, and regardless of the funding source for any supplemental staff to be hired by the ___(Federal resource agency) ____ to support priority review on highway construction projects, such staff shall not be construed as an officer, agent or employee of either the ___(state DOT) or FHWA.
      
      
   2. In no way do the (Federal resource agency , ____( state DOT)__, or FHWA intend to abrogate through this Agreement any obligations or duties to comply with the regulations promulgated under the ___(identify relevant statute(s)) ,
7. Other Agreements.
   1. This Agreement does not preclude the signatory agencies from entering other inter-agency agreements relative to their respective roles and responsibilities; however, any other agreements should be consistent with this Agreement.

APPROVED FOR LEGAL SUFFICIENCY

Date: _______________	BY: ___________________________________
	______(state)______ Department of Transportation
Date: _______________	BY: ___________________________________
	______________________Director ______(state)______ Department of Transportation
Date: _______________	BY: ___________________________________
	(Name and Title for Federal Resource Agency)
Date: _______________	BY: ___________________________________
	(Name and Title of appropriate) Administrator Federal Highway Administration

ATTACHMENT A
EXAMPLE

THE FOLLOWING INFORMATION IS PROVIDED AS AN EXAMPLE ONLY; AGENCIES SHOULD CUSTOMIZE THEIR AGREEMENTS AS APPROPRIATE.

Professional Standards for Supplemental Staff
One (1) specialist with experience and /or education in (identify areas of expertise, e.g. Engineering, Biology, Natural Resources, or other related Environmental Science, etc).
Working knowledge of (identify appropriate statutes, e.g., Section 404 of the Federal Clean Water Act, Section 10 of the Rivers and Harbors Act of 1899, National Environmental Policy Act, the Endangered Species Act, the National Historic Preservation Act, and the Joint Federal Manual for the Identification and Delineation of Wetlands, etc. is essential. In addition, an ability to travel, occasionally overnight is mandatory. Federal White Collar Pay Schedule at the full performance level of General Schedule ____. See attached Standard Job Description.

ATTACHMENT B
EXAMPLE

NOTE: The following information is provided as an example only; agencies should customize their agreements as appropriate.

An Illustrative Breakdown of Actual Burdened Overhead Rate Carried by the __(Federal resource agency)__as added on to Labor and Per Diem

1. General and Administrative rate
   
   G&A rate is ___% of all direct costs.
   The G&A is used to record cost of either a general or administrative nature. These are the support services to the District that are paid for as a portion of all direct costs. These costs support things such as the executive office, office of counsel, personnel, EEO, etc. These types of costs include labor, travel, awards, training, space costs, communications, expendable property less than $_____, etc., related to the support organizations.
   
   
2. Our special effective rate (if appropriate)
   Special effective rate is _______
   Rate includes factors to absorb the cost of paid leave, holiday pay, other excused absences and government contributions. Included in the government contribution factor is the government's share of the CSRS and FERS retirement plans, social security benefits, life and health insurance benefits, survivors insurance and Medicare.
3. Department rate (if appropriate)
   Department overhead is used to record and distribute costs incurred in the day-to-day operation of the technical organization which can not be directly identified or charged to a specific project, program or reimbursable order. Administrative costs include, training, management, budgeting, quarterly reviews, awards, supplies and materials, printing charges, GSA space costs, etc.

Source: (Federal resource agency contact and address)