Although WisDOT policy is to let construction agreements through a competitive bidding process, under special circumstances the department may negotiate directly with local governments for the performance of construction work. These negotiated agreements are allowed by
Local Force Account (LFA) agreements are used when a local unit of government works on
its own local highway system or does work for the department on the
state trunk highway system. The type of work associated with
these projects may include traffic safety improvement and minor pavement/drainage improvements.
It may also include pavement resurfacing, pavement replacement, reconditioning, and reconstruction. Under these agreements
local governments are reimbursed for the actual costs incurred in performing the work, up to an agreement maximum (as amended by any change orders); however, the labor,
material and machinery rates are projected in advance and must be determined to be cost effective. These agreements are to be based on the actual cost required to perform the work so that they cannot result in profit or loss for the unit of government performing the work. Any state, local or federal funding program for which the project is eligible may be used with this agreement type.
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