Negotiated Agreements - Local Force Accounts Sample Clauses

Negotiated Agreements - Local Force Accounts. Highway improvement and maintenance work can be constructed by negotiating an agreement with counties and municipalities without bids. Compensation under a local force account (LFA) agreement is based on actual costs for labor, materials, incidentals, and established rental rates. LFA agreements do not provide an opportunity for profit or loss for doing the work. Work performed by counties and municipalities on state trunk highways and local roads may be an LFA- local, LFA-state, or AFE type agreement. Under LFA agreements, the county or municipality is authorized to purchase and furnish work materials such as culvert pipe, posts, and other similar manufactured items, but some other items may not be allowed to be purchased depending upon the circumstances of production and the quantity used. Items such as aggregates, premixed asphaltic materials, and other similar materials, when used in minor quantities necessary for associated work, may be purchased from third parties. When these items are produced exclusively for the job, or when their uses are among the major items of the contract, furnishing of these materials becomes performance of work under the agreement. LFA agreements require the work to be performed with county or municipal forces and equipment. Agreements are negotiated only with counties or municipalities staffed, equipped, and capable of performing the required work. However, the need may occasionally arise for the limited use of an item of equipment the county or municipality does not generally use and would not have. In this case, the county or municipality can arrange with someone else for use of the equipment. The arrangement will be on a rental basis at an agreed rate per unit of time and may either include or exclude the operator. LFA-state agreements are only for State Highway Rehabilitation Maintenance (SHRM) projects and are with the county in which the work is located. The SHRM project designation denotes a specific funding program and may be with state funds and any federal funds for which individual projects are eligible. Construction of SHRM projects may also be accomplished by private contractors through the let process. Administration of an executed agreement is performed by the region - SPO section.