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Section 2: Required Contract Provisions – Federal-Aid Construction Projects

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Form FHWA-1273 and Special Provisions

Form FHWA-1273 and specific Special Provisions must be physically incorporated in each construction contract, all subcontracts, and lower-tier subcontracts compensated with federal-aid funds.

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  • Form FHWA-1273, “Required Contract Provisions – Federal-Aid Construction Contracts,”
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  • Special Provision 000-003, “Certification of Nondiscrimination in Employment” – include in all subcontracts, at any tier, greater than $10,000.00,Special Provision 000-004, “Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity (Executive Order 11246)” – include in all subcontracts, at any tier, greater than $10,000.00,Special Provision 000-005, “Standard Federal Equal Employment Opportunity Construction Contract Specifications (Executive Order 11246)” – include in all subcontracts, at any tier, greater than $10,000.00,Special Provision 000-002, “Nondiscrimination” (Include provisions of Articles 3.1 – 3.6 in all subcontracts and agreements for materials),Special Provision 000-241, “Cargo Preference Act Requirements in Federal-Aid Contracts” – include in all subcontracts, andSpecial Provision 000-394, “Disadvantaged Business Enterprise in Federal-Aid Contract” – include in any subcontract
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Major Project Requirements

The district typically begins preparation of a project management plan (PMP) and initial finance plan (IFP) for projects that receive federal financial assistance and are designated as Federal Highway Administration (FHWA) "Major Projects" (=/> $500M total project cost). Other Federal-Aid projects between $100M to $500M total project cost require IFPs and corresponding annual updates, as well as Operationally Independent and Non-Concurrent construction projects. The Department's procurement team may also prepare the PMP and IFP if it has not been prepared by the district.

Once a PMP and IFP have been prepared and have received FHWA approval, comply with PMP and IFP guidelines and review and perform Financial Plan Annual Updates (FPAUs) and updates to the PMP as needed.

PMP and IFP requirements for FHWA Major Projects can be found on the FHWA website under “Innovative Program Delivery.” Verify that the PMP includes all contract and DB contractor proposal commitments and expectations to assist with oversight and auditing. Reference the Design-Build Contract Administration Manual; Procedure 125. See Chapter 17 for a copy of Procedure 125 and FHWA’s “Major Project Financial Plan Guidance”.

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