October 22, 2010
In Reply Refer to: HIPA
D. W. Vaughn, P.E.
Chief Engineer/Deputy Director
Alabama Department of Transportation
1409 Coliseum Boulevard
Montgomery, AL 36110
Through: Mr. Mark D. Bartlett
Division Administrator
Montgomery, Alabama
Dear Mr. Vaughn:
Thank you for your letter concerning force account contracting on Federal-aid projects.
The use of the word "rare" in our Contract Core Curriculum Manual could be construed as establishing a higher standard for the approval of force account work than required under existing law and regulations. The law requires that work for Federal-aid highway projects be performed by contracts awarded through competitive bidding unless a State transportation department demonstrates, to the satisfaction of the Secretary, that some other method is more cost effective or that an emergency exists. The standard for the use of force account is established in our regulation:
It may be found cost effective for a State transportation department or county to undertake a federally financed highway construction project by force account when a situation exists in which the rights or responsibilities of the community at large are so affected as to require some special course of action, including situations where there is a lack of bids or the bids received are unreasonable.
We agree that our guidance implementing the statutory and regulatory provisions should be clarified and are preparing a directive to do this. We also will modify the Contract Core Curriculum Manual to delete the reference to "rare."
In requesting the use of force account, a State transportation department must document that this approach would be cost effective. Documentation should include all the costs incurred in the performance of the work (such as materials, equipment, salary, equipment overhead related to direct costs, agency and employee overhead, and inspection) and a comparison with competitive prices for similar work. All products and materials incorporated into the force account project must meet the Federal-aid requirements outlined in the regulation.
I encourage you to work with Division Administrator Mark D. Bartlett if you have any questions about applying the regulation in Alabama.
Sincerely,
/s/ original signed by
Victor M. Mendez
Administrator