chapter 23 agility - penndot home can only be altered by additional legislation. 23-3 update #1...

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Chapter 23: Agility PUB 23 - MAINTENANCE MANUAL

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CHAPTER 23AGILITY

TABLE OF CONTENTS

23.1 Agility Overview ....................................................................................23-123.2 Purpose of this Agility Chapter is To...................................................23-123.3 Theory of Agility.....................................................................................23-123.4 Applying Agility at Work......................................................................23-223.5 When to Enter into an Agility Partnership .........................................23-223.6 What Services Exchanges are Not ........................................................23-223.7 Many Benefits of Service Exchanges....................................................23-323.8 Roles and Responsibilities .....................................................................23-423.9 Legal Foundations of the Agility Program .........................................23-423.10 Legal Issues and Policies .......................................................................23-523.11 Eligible Partners......................................................................................23-523.12 Processing Agility Agreements and Work Plans ...............................23-623.13 Agility Agreements ................................................................................23-623.14 Agility Agreement Terms and Conditions..........................................23-723.15 Letter of Understanding ........................................................................23-823.16 Agility Work Plans..................................................................................23-823.17 Financial Matters...................................................................................23-1123.18 Monitoring Agility Activities..............................................................23-1223.19 Related Activities ..................................................................................23-12Attachments:

Attachment A - Organizational ChartAttachment B - Agility AgreementAttachment C - Agility Work PlanAttachment D - Agility File ChecklistAttachment E - PAS Form

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23.1 AGILITY OVERVIEW INTRODUCTIONAgility is a “way of doing business” that

enables PennDOT and eligible partners toexchange services, equipment and staff instead ofmoney. By doing this, PennDOT and the partnermake the most of their limited resources; whiledeveloping strong and rewarding relationships.One of the biggest advantages of the AgilityProgram is the long-term relationships developedbetween PennDOT, other state agencies and localgovernments.Presently, municipalities represent the majority

of partners in the program, but others are eligibleincluding: water, sewer, housing and municipalauthorities, council of governments, metropolitanand rural planning organizations, public schooldistricts and state universities, community collegesand vocational technical schools, volunteer fireand rescue companies, volunteer emergencymedical transport companies, state and federalgovernment agencies, and charitable hospitals.The Agility Program is available in all elevenengineering districts, which cover 67 counties inPennsylvania.Service exchanges must be reasonably equal in

amount between the Department and its partner.To avoid the exchange of service that may have anegative effect on the workforce, PennDOT entersinto Agility Work Plans in cooperation with theAmerican Federation of State, County andMunicipal Employees (AFSCME). In this way, theDepartment, AFSCME, and the eligible partnerprovide services that benefit everyone without theneed to pay each other cash for the servicesrendered. A Work Plan can be implemented aftera fully executed Agility Agreement is in place.The County Agility Coordinator (CAC) is

responsible for the proper completion andimplementation of an Agility Agreement andWork Plan. The Work Plan can be developed forservices that are specified and approved inAttachment B of the Agility Agreement. EachWork Plan contains PennDOT’s management,AFSCME’s and the partner’s signatures. AgilityAgreements are valid for five years with onerenewal period of three additional years for a totalof eight years, but can be cancelled after the termsof the agreement and Work Plan have been met. Anew Agility Agreement can also be executed if thepartner and PennDOT want to exchange servicesbeyond the eight years.

23.2 PURPOSE OF THIS AGILITYCHAPTER IS TO

• Provide broad and consistent direction to the District Agility Coordinators (DAC), CAC, County Managers, Assistant County Managers and others who engage in service exchanges with eligible partners.

• Ensure that the field staff and the Agility Division are working from the same information.

• Present factors to consider in making Agility business decisions as they relate to the exchange of services with eligible partners.The guidelines are not intended to address

every issue that may arise, nor are they intendedto stifle creativity or new ideas. The chapter ismade up of two kinds of information:l. Requirements which must be followed and implemented in every service exchange.

2. Suggestions, which may be implemented by the District and County Maintenance Offices.

Finally, this document is a “work in progress”and will be continuously changed to show theevolution of service exchanges and relationshipsbetween PennDOT and its eligible partners,lessons learned from the field staff and AFSCMEand our customers’ changing expectations.Updates will be provided to the field staff throughsuch sources as the Agility Digest, a link to theBureau of Municipal Services via the PennDOTwebsite, at training sessions, etc.

23.3 THEORY OF “AGILITY”Agility is an organizational strategy or a “way

of doing business” that enables PennDOT torespond quickly to its customers, partners andcontinuously changing environment. PennDOT’senvironment entails providing transportationservices and products to more than 12.5 millioncitizens of all ages, cultures and geographiclocations. Some people define “Agility” as an attitude that

shows PennDOT’s and AFSCME’s joint interest inbuilding and maintaining relationships withinternal and external customers. Theserelationships position PennDOT to make positivedifferences in a wide variety of situations.Most agile relationships involve at least one or

more of the following four principles:

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Emphasizing People and Information - Peopleand information determine the success of anorganization, not technology, facilities, orequipment.Organizing to Master Change and Uncertainty- Create a flexible organization that can quicklyadapt its human and physical resources to arapidly changing environment.Enriching Customers - Involve customers indeveloping products and services, which arecustomized by them to meet their needs.Cooperating to Enhance Competitiveness -Identify win-win relationships as the strategicjustification for internal and externalorganizational cooperative ventures.To varying degrees throughout PennDOT,

employees at all levels are encouraged to applythese four principles at work.

23.4 APPLYING AGILITY AT WORKThe Agility Program is an innovative approach

to conducting business that can greatly enhanceefficiencies for PennDOT and its localcommunities. Given the rapid changes in ouroperating environment and the many diversedemands on our organization, PennDOT must beincreasingly more innovative and proactive.Below are some examples of how to apply Agilityat work.Maintenance• Consider Agility service exchanges first, before contracting out for services.

• District and County Agility Coordinators are responsible for entering in to Agility Agreements and Work Plans so long as these transactions make good business sense. When needed, the CAC should refer to their district management for review and guidance when trying to develop agility partnerships.

BridgesWhen performing preventive maintenance on

bridges, such as flushing activities, consider theuse of Agility with local volunteer firedepartments based on the availability of thevolunteer fire departments.Transportation Systems Operations andEmergency ResponsesWhere practical, use the Agility Program to

formalize Agility Agreements and Work Plans as

“insurance policies” to access back-up crews,facilities, knowledge resources and equipment atthe local level and across state-borders. The typesof emergencies in which these service exchangesmay be used include, but are not limited to:electrical outages, downed power lines, snowplowing, flooding, traffic control, etc.SafetyUse Agility service exchanges as a way of

meeting local governments’ needs for low-costsafety services. This could help reduce fatalitiesand crashes. For example, a local governmentcould cut tree limbs and brush along our rights-of-way and in return, the Department could installrumble strips along dangerous curves on localroads.RelationshipsThe Agility Division may survey AFSCME

Council Directors, staff and local representativesusing a standard survey to determine their level ofsatisfaction with the Agility Program. The surveyresults will be quantified and given to theAssistant District Executives for Maintenance andothers to use in strengthening relationships and tomake further improvements in the program.

23.5 WHEN TO ENTER INTO ANAGILITY PARTNERSHIP

Establishing an Agility partnership for thepurpose of exchanging services between PennDOTand a partner is voluntary and optional for bothparties. Each party must believe that it makesgood business sense for their organization to beinvolved in a service exchange. The exchange ofservices is a good deal if: more work gets donequicker, more work gets done within the sametime frame, the exchange allows PennDOT to keepcash in its budget for other needed projects, as wellas retains work in PennDOT instead of contractingout services, etc.

23.6 WHAT SERVICE EXCHANGESARE NOT

Service exchanges should not be confused with“giving away” services. The receiving partnermust provide PennDOT with a reasonably equalamount of services. PennDOT is required by law to preserve the

allocations that are distributed from the MLF.These allocations are determined on a county-by-county basis through a formal legislative process,which can only be altered by additional legislation.

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Furthermore, PennDOT is statutorily prohibitedfrom diverting the Motor License Funds forproposals and activities that are contrary to ArticleVIII, Section 11 of the Pennsylvania Constitution of1968 (relating to the use of proceeds from gasolineand other motor fuel excise taxes and motorvehicle registration and license fees). Reference tothis anti-diversion requirement can be found atSection 2001.2 of the Administrative Code of 1929,as amended, 71 P.S. Section 511511.2. Any“consideration,” such as services or materials,funded from the MLF that is given to an Agilitypartner may result in offsetting the originalformula allocations, which have been carefullyestablished through legislation, or in diverting thefunds contrary to the constitutional and statutorymandates. Therefore, when PennDOT uses itsfield staff, equipment and related materials tobenefit a partner as part of a service exchange,PennDOT must receive a reasonably equal serviceback from that partner. Moreover, to ensure thatthe MLF is restored, the service or activityperformed for PennDOT must be something onwhich it is permissible to spend MLF in the firstplace. To maintain the integrity of the MLF, thepartner and PennDOT have up to eight years, orby the expiration date of the Agility Agreement, tocomplete one or more Work Plans to validate thatthe services received by PennDOT are reasonablyequal in amount to the services provided to thepartner, thereby ensuring the integrity of the MLF.Service exchanges are not good business

decisions if the County Maintenance Office fails tofactor in the costs associated with using equipmentbeyond the planned time frame to “extend” aservice to complete a project. For example, if thefield staff must borrow equipment from anadjoining district to perform a task for its partner,the field staff should factor in the “extended cost”of mobilizing the borrowed equipment. If, afterconsidering this cost factor, it is still feasible tocomplete the project, then the field staff shouldproceed to do so. Service exchanges are not good business

decisions if the CAC fails to coordinate withhis/her county on the shared use of purchasedand/or rented equipment for service exchanges.For example, if the county rents equipment for 20days and it is left idle for five of those days, theCAC could have used that rented equipment forthe five days to perform a service exchange ifproper planning and scheduling occurred.

23.7 MANY BENEFITS OF SERVICE EXCHANGES

The most significant benefit of an Agilitypartnership is that it helps PennDOT buildrelationships with its local communities. Sharinginformation enables all parties to understand whydecisions are made and brings to light factorswhich may influence those decisions as well. Other benefits include, but are not limited to:

• Enabling PennDOT and partners to use fundsmore efficiently and effectively.

• Enabling PennDOT and its partners to providesmoother and safer roads by reducing thenumber of outstanding maintenance needs.

• Improving PennDOT’s and its partner’sresponse time on fixing road problems,preventing accidents, etc.

• Completing work that otherwise may not havebeen done.

• Enabling PennDOT to receive more timely andaccurate information from its partners. This isbecause relationships formed under the AgilityProgram usually become strong relationships.In strong relationships, the quantity and qualityof information communicated between bothpartners is greatly improved.

• Strengthening relationships between PennDOTand AFSCME union leaders at all levels.

• Strengthening relationships between PennDOT,other state agencies and local governments,including municipalities.

• Increasing PennDOT’s and government’spositive image with the public.

• Increasing opportunities for employees to workin greater leadership roles.

• Increasing the quality of life by balancingsocial, economic, and environmental concerns, which are all essential components of smart transportation.

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23.8 ROLES AND RESPONSIBILITIESPLANNING DEPUTATE

The Agility Division is located in a non-highway deputate and is one of three divisions inthe Bureau of Municipal Services. See AttachmentA for a copy of the organizational chart. The Agility Division is a support and program

office whose Agility Program Specialists providetechnical guidance to field staff that work in theHighway Administration’s deputate. The Agility Division’s key products and

services that support field implementation include:• Executing Agility Agreements that allow Work

Plans to be developed between PennDOT andits partners,

• Assisting with outreach efforts by conductingon-site training for potential and currentpartners as well as training for AFSCMEemployees,

• Reviewing Agility documentation to ensurethe County Maintenance Offices’ records are inproper order,

• Staffing the Agility Steering Committee,• Maintaining an Agility Agreement database,• Preparing an Agility Program Annual Report,• Conducting Agility office based and on-site

Agility Quality Assurance reviews and relatedtraining,

• Maintaining an Agility Partner Guide,• Developing training tools such as the PlantMaintenance and Agility training course,

• Maintaining this chapter,• Maintaining an Agility website• Maintaining the Agility Work Plan TrainingManual, and

• Issuing an Agility Digest and other items thatdirectly support the CACs.

HIGHWAY ADMINISTRATIONDEPUTATEThe Highway Administration’s field staff works

daily to maintain our highway and bridgesystems. Typically, each engineering districtselects a DAC to be a liaison between the Agility

Division and the County Maintenance Office staff.Some of the responsibilities of the DAC includeserving as a single point of contact for the AgilityDivision, communicating information on Agilityfrom any source to the Assistant District Executivefor Maintenance, County Managers, CAC, andothers, performing quality assurance reviews onAgility Agreements and Work Plans, conductingand/or coordinating training on the AgilityProgram, assisting with identifying marketingopportunities for the Agility Program, serving asrequested on the Agility Steering Committee,attending meetings as requested by the AgilityDivision, coordinating the collection of datarequested by the Agility Division, and assistingwith the resolution of Agility issues.Some of the CAC’s responsibilities include

serving as the single point of county contact for theDAC, communicating information on Agility tothe County Maintenance Manager and the entireorganization, performing quality assurancereviews on Agility Agreements prior to theirsubmission to the DAC, participating in thedevelopment, review, and implementation ofWork Plans, conducting training at the countylevel and/or coordinating training on the AgilityProgram for others, identifying, developing andimplementing marketing strategies for the countyto current and potential partners, attendingmeetings as requested on the Agility Program,completing data requests on the Agility Program,ensuring Work Plan activities are accuratelytracked and reported, maintaining accurate andauditable records on the Agility Program,soliciting input from and providing information tocustomers, and encouraging their employees’participation in the program. The District Municipal Services staff are also

located in the Highway Administration deputateand have frequent contact with local governmentswho are current and potential Agility partners.This staff serves as a referral source for localgovernments who are interested in learning moreabout the Agility Program.

23.9 LEGAL FOUNDATION OFTHE AGILITY PROGRAM

Chapter 19 of the Procurement Code (alsoreferred to as Act 57) provides PennDOT with thestatutory basis to enter into Agility Agreements.Although Chapter 19 does not specifically cite theword “agility,” it enables PennDOT to engage inintergovernmental contracts with various levels

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and types of governmental bodies, as well asparticular non-profit entities. Agility Agreementsare one type of an intergovernmental contract.Prior to Act 57, the Department’s statutory

authority for Agility Agreements was Section 561of the State Highway Law, relating to minorroutine maintenance by municipalities. When theProcurement Code took effect, it gave PennDOTfurther authority for the Agility Program andbroadened the types of services that the partnerscould provide to PennDOT. The Agility Program can “respond quickly” to

its partners because these intergovernmentalcontracts involve less paperwork and shorterprocessing times. Traditional contracts, which takelonger, are not necessary because PennDOT and itspartners exchange services, not money.

23.10 LEGAL ISSUES AND POLICIESThroughout the Agility process, from drafting

Agility Agreements to executing serviceexchanges, several legal issues may arise. Onepurpose of this chapter is to minimize the need toconsult the Office of Chief Counsel and thusincrease efficiency by providing accurate andcoherent legal policies for the Agility Program.Before specific legal and policy issues are

discussed, it is important to state the five legalrequirements that serve as the foundation of theAgility Program’s operations:

REQUIREMENTS OF THE AGILITY PROGRAMThere are five legal requirements that must be

followed in the Agility Program. 1. First, PennDOT must enter into a formal,written agreement with each partner. A letter ofcooperation is not acceptable because it is not aformal agreement.

2. Second, to be a partner in the Agility Program,the partner must be a public entity thatconforms to the definition of a “local publicprocurement unit.” Partners must meet thisdefinition because it is required by law (i.e., Act57).

3. Third, no money can be exchanged betweenPennDOT and its partner. If money wereinvolved in the Agility Program, thenPennDOT would have to comply with the same

lengthy and more involved Procurement Coderequirements which apply to traditionalcontracts.

4. The MLF cannot operate in the red, or incur adeficit.

5. Materials can only be included in an Agilityproject if they are essential and incidental toperforming the service. Materials alone cannotbe exchanged between PennDOT and thepartner, except for the following items: RoadSigns, Salt Brine and Millings.

23.11 ELIGIBLE PARTNERSPennDOT can only enter into Agility

Agreements with entities that are classified as“local public procurement units” or others whoprovide “external procurement activities”(essentially out-of-state government agencies andagencies of the federal government) under theProcurement Code. One preliminary indicator thatPennDOT uses to identify a potential Agilitypartner is whether they secure and spend publicfunds. Public funds are taxes, fees or governmentappropriations. A second preliminary indicator is whether the

partner’s agency is managed by a Board ofDirectors and if these directors are publicly electedofficials. However, public authorities are eligible,even though their directors are not elected. A thirdpreliminary indicator is that the entity mustexpend the public funds in accordance withstatutory or regulatory provisions that address itsfunctions and activities, including its spendingpowers.A local public procurement unit is defined in

Section 1901 of the Commonwealth ProcurementCode (62 Pa. C.S. Section 1901) as “A politicalsubdivision, public authority, tax–exempt,nonprofit educational or public health institutionor organization, nonprofit fire company, nonprofitrescue company, nonprofit ambulance companyand, to the extent provided by law, any otherentity, including a council of governments or anarea government, which expends public funds forthe procurement of supplies, services andconstruction.” PennDOT’s Office of Chief Counsel ultimately

determines whether the potential partner meetsthe requirements to be a local public procurementunit. When in question, potential partners may be

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asked to submit copies of their articles ofincorporation, bylaws, annual audit report or otherdocumentation concerning their organization andoperation to the Office of Chief Counsel forreview. The following are examples of local public

procurement units:Boroughs, Townships, Counties and Cities,Council of Governments, Water, Sewer, Housingand Municipal Authorities, Metropolitan/RuralPlanning Organizations, Public School Districtsand State Universities, Community Colleges andVocational Technical Schools, Charitable HospitalsVolunteer Fire and Rescue Companies, VolunteerEmergency Medical Transport Companies, Stateand Federal Government Agencies

23.12 PROCESSING AGILITY AGREEMENTS AND WORK PLANS

Incorrectly completed Agility Agreements orWork Plans can cause significant delays in theprocessing of either of these documents. Thissection details policies and procedures to followthat helps the CAC and the partner avoid commonmistakes.

23.13 AGILITY AGREEMENTS An Agility Agreement (See Attachment B for a

copy of an Agility Agreement) is a contract, whichindicates PennDOT’s and the partner’s intent toexchange services with each other when and if anopportunity arises. Having an agreement in placedoes not obligate either party to perform a service.It provides the foundation and legal authority forexchanging services. The Agility Agreement alsodescribes the potential service exchanges, theagreement time frame of eight years, and othergeneral terms and conditions of the relationship.The Agility Agreement submitted to the AgilityDivision for processing, must have originalsignatures. A “copy” of the Agility Agreementfrom the CAC cannot be accepted by the AgilityDivision

WHO CAN SIGN THE AGILITYAGREEMENTThe Agility Agreement must contain a valid

signature. This means that the signatures on theAgility Agreement must be from people who havethe proper legal authority to sign the document.An executed resolution is necessary to grant

someone within the partner’s organization or itsgoverning body the proper authority to sign theAgility Agreement. A resolution is a formalstatement which allows a governing body to givean individual the authority to sign the AgilityAgreement on behalf of the partner. As a matterof PennDOT policy, Agility Agreements musthave a completed resolution.If the agreement is with a nonprofit corporation,

only one corporate officer needs to sign, providedthat officer is a senior officer. Senior officersinclude:ChairmanPresidentVice-PresidentSenior Vice-PresidentExecutive Vice-PresidentAssistant Vice-PresidentChief Executive OfficerChief Operations OfficerIf a senior officer signs the agreement for the

corporation, then a junior officer may attest to thesignature of the senior officer. To attest is to affirmthe authenticity of the individual who has signedeither the Agility Agreement or the resolution onbehalf of the partner. The affirming individual isusually the secretary, treasurer, or other appointedindividual.Signing an Agility Agreement on behalf of aFederal AgencyWithin the partner’s organization, for a person

to sign an Agility Agreement on behalf of a federalagency, it has to have a citation to federalregulations, an internal agency memo delegatingsignature authority, or in the case of a contractingofficer, an appointment certification.

STAMPED SIGNATURES ON AN AGILITYAGREEMENTStamped signatures on Agility Agreements are

only valid in extenuating medical circumstances.For such a signature to be valid, it requires anattached letter from the municipal solicitor with anexplanation for the absence of a manual signature.

VALID DATESAgility Agreements must be submitted to the

Office of Chief Counsel within sixty (60) days ofthe partner’s signature date on page 3 of theagreement. If the 60 days are exceeded, theagreement is considered “stale” and will need to

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be resigned and re-dated, and the signatureprocess will begin again. The attest date must be either equal to or later

than the signed date on the signature page.Agility Agreements or resolutions will not beaccepted if the attest date is earlier than that of thesignature.

OBTAINING APPROVALWhen processing an Agility Agreement with

Attachments A, B, C and D, approval is requiredfrom the Agility Division and the Office of ChiefCounsel. If activities other than what is listed onAttachment B of the Agility Agreement are added,the Agility Agreement must then be approved bythe Office of the Attorney General.The Office of Chief Counsel will review the

Resolution Page and the Agility Agreement forform and legality, and the reviewing attorney willreturn the agreement to the Agility Division ifproblems exist. When entering into an Agility Agreement with

a Commonwealth Agency, a Letter ofUnderstanding (LOU) must be used. Noresolution is necessary with executive agencies—that is, those under the Governor’s jurisdiction.However, independent agencies, such as thePennsylvania Game Commission, require anAgility Agreement. When the Agility partner is an out of state

agency, an Agility Agreement must be used.These Agility Agreements must be approved bythe Office of General Counsel and the Office of theAttorney General.The Agility Division is responsible for

submitting Agility Agreements and LOUs to theOffice of Chief Counsel as well as for entering allAgility Agreements and LOUs into the LegalApproved Tracking System.

TERMINATION OF AGILITYAGREEMENTSAn Agility Agreement may be terminated prior

to the official termination of the agreement ifPennDOT or the partner so desire. Theterminating party must submit a letter of intent tothis effect to the other party which references thethirty day termination notice. If an Agility Agreement expires before work is

completed under a Work Plan, the followingactions must be taken immediately:

1. All work must cease until a new AgilityAgreement is in place.

2. The new Agility Agreement must have a newand unique agreement number.

3. Indicate on the old Work Plan the “Balance stillowed by either party at the end of the expiredAgility Agreement” and reference the newAgility Agreement number.

LEGALLY BINDING CONTRACTSigning an Agility Agreement does not obligate

either party to perform any of the services listedon Attachment B of the Agility Agreement. TheAgility Agreement becomes a legally bindingcontract only after a Work Plan is completed andsigned by all parties: PennDOT, AFSCME, and thepartner.

Since the Work Plan signed by all parties underan Agility Agreement is a legally binding contract,it would be a breach of contract if the partner orPennDOT did not perform the necessary work tothe party’s satisfaction. Should the partner refuseto perform or re-perform the work for PennDOT,the situation should be communicated to theDistrict Office who can ask for assistance, ifapplicable, from the Agility Division. The reverseis also true: if PennDOT does not perform work tothe partner’s satisfaction, it would be a breach ofcontract.

23.14 AGILITY AGREEMENT TERMSAND CONDITIONS

The following section is a brief description ofthe Terms and Conditions as listed in the AgilityAgreement.

Part One describes the partner’s responsibilitiesunder the Agility Agreement. As a supplier ofpersonnel and equipment, the activities specifiedon the individual Work Plan must be reasonablyequal in amount to those supplied by PennDOTand meet the guidelines in the appropriatePennDOT publications.

Part Two outlines PennDOT’s responsibilitiesunder the Agility Agreement. PennDOT’sactivities specified on individual Work Plans mustbe reasonably equal in amount to those suppliedby the partner and meet the guidelines in theappropriate PennDOT publications. If the

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partner’s organization has stricter policies orstandards regarding highway maintenance,PennDOT will perform those services accordingly. Part Three states that the partner’s employees

and lessors remain in the partner’s employ whenperforming services under this agreement forPennDOT. PennDOT’s employees and lessorsremain in PennDOT’s employ when performingservices for the partner’s organization. In addition,liability issues are addressed in the event anemployee or lessor of either party commitsnegligent acts. Part Four guarantees the right of inspection and

remedies to both parties of the Agility Agreement.Inspections may be made by authorizedrepresentatives of either party within 60 days ofthe completion of work. Spot inspections can beperformed at any time when activities are takingplace under this agreement. Part Five describes PennDOT’s Green Plan

Policy to protect the environment, conserveresources and comply with environmental lawsand regulations. It addresses the partner’sresponsibility to ensure its personnel andsubcontractors are aware of PennDOT’scommitment to protecting the environment andrelated obligations.Part Six adds the Non-discrimination/Sexual

Harassment Clause, Contractor IntegrityProvisions, and the Provisions Concerning theAmericans with Disabilities Act as attachments tothe agreement. Part Seven allows you to sign the different

sections of the agreement separately. Part Eight describes the conditions under which

PennDOT can receive your services. There arecircumstances where you can provide servicesunder the agreement when those services arealready under contract with a private vendor. Italso addresses training, meals and materials thatyou use in the performance of a service.Part Nine sets forth the conditions under which

PennDOT can provide services to the partner’sorganization. It addresses the materials used,signs provided and how to handle surplus.

RECORD RETENTIONAll original Agility Agreements are maintained

in the Agility Division and are kept for seven yearsafter they expire. In addition, copies of all

agreements are maintained in the ElectronicDocument Management System (EDMS). TheAgility field staff is required to maintain all AgilityAgreement documents which include theagreement, Work Plans and supporting documentsfor seven years after the expiration date of theAgility Agreement.

INFORMATION DISCLOSUREAgility Agreements, Letters of Understanding

and Work Plans that the Department is a party toare considered public information under the Rightto Know Law. Therefore, the Department mustprovide to the public non-confidential partnerinformation upon request.

23.15 LETTER OF UNDERSTANDING A LOU is a document used by two state

agencies that wish to exchange services, since theCommonwealth cannot formally contract withitself. LOUs are signed by each agency’sdesignated signatory, who is usually located in theHarrisburg area. Once approved, staff from eachCounty Maintenance Office, which includesAFSCME, may develop a Work Plan with theother agency’s field or regional staff and theirunion representatives to exchange services.Documentation must be maintained to support theWork Plans that are completed as a result ofhaving LOUs in place.

GRANTSUnder no circumstances can our Agility partner

use grant funds to perform a service exchange forPennDOT. However, Work Plans may be entered into with

organizations that receive grant funding fromPennDOT (such as publicly owned airports), aslong as non-grant funding is used to pay for thegrantee’s performance of a service exchange.

23.16 AGILITY WORK PLANSA Work Plan specifically describes the nature of

work that PennDOT and the partner will performfor each other under the Agility Agreement. TheWork Plan also indicates the quantity, unit ofmeasure, unit price of the Agility project,estimated and actual completion dates andcontains signature lines for PennDOT, AFSCMEand the partner, etc. It is important to note thatthe “cost” of the Agility project is indicated on theWork Plan not the value. Information related to

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the value of an Agility project may be kept inPennDOT’s files along with supporting rateinformation. See Attachment C for a copy of theWork Plan.An unlimited number of Work Plans may be

developed and signed over the life of one AgilityAgreement. The quantity is governed by thecapacity of either party to perform the work withinthe life of the agreement. It is a good practice to expect our partners to

complete their work for PennDOT within one ortwo work seasons from the date that PennDOTfinished providing its services to the partner. Thisincreases accountability and lowers the risk of apartner defaulting on a Work Plan. However, inall situations, the partner must provide services toPennDOT on or before the expiration date of theAgility Agreement.

MANAGING WORK PLAN SERVICEEXCHANGES AND RELATED ACTIVITIES Work Plan activities must be properly managed,

tracked, reported and an accurate and auditablerecord maintained. At a minimum, the CAC isrequired to perform the following tasks for eachwork plan:Send a Work Plan Copy to the Agility Divisionwithin 10 business days from the last signaturedate on the document. If the executed work planis amended, a copy of the amended work planmust also be submitted to the Agility Divisionwithin 10 business days of the transaction. TheAgility Division will use the information toestablish and maintain a statewide inventory of allwork plans.Create and Enter Notifications in SAP-PlantMaintenance for each service shown on the workplan. There are two types of work plan services.One service is the work performed by PennDOT orRP work. The second service is the work receivedby PennDOT from the partner or RR work. Thesetransactions must be entered in SAP-PlantMaintenance within 10 business days from thedate the work plan was executed. (See the trainingcourse entitled “Plant Maintenance & Agility” fordetails on how to perform these transactions andthe required data elements for Agilitynotifications.) Note that one notification peragility service exchange must be created. Thatnotification is valid for the life of the service evenif the exchange continues beyond one fiscal year.

Document the Receipt of Partner or RR Services.Since the life of an Agility Agreement (if renewed)can last for eight years, our partners may take upto eight years to complete service exchanges forPennDOT. Therefore it is important to documentthe partner’s return of services as follows:Request that the partner complete and return

the Partner’s Agility Service form (PAS) every twoweeks to show the nature of RR work and numberof production units provided. (See Attachment Efor a copy of the form.) There are two exceptionsto this requirement. First, no form should becompleted if the partner did not perform anywork. The second exception is when the partnerprovides a service to PennDOT that “reoccurs”over a period of months like storage or parking. Inthese situations and for the partner’s convenience,one PAS form may be completed every six months,so long as the form contains the total amount ofservices provided for that time frame.After the entire service exchange has been

completed, the “receiving” party must initial anddate the Work Plan column entitled “CompletionDate/Initials/Date Work Approved” to signifythat the job was accepted.Create and Oversee the Processing of ZIPYPartner Payrolls using appropriate codes and PASforms, similar to how work is processed by a paidcontractor. ZIPY Partner Payroll information mustbe entered for all partner provided services or RRwork twice a year in SAP-Plant Maintenance.Agility work received from the partner betweenJuly and December must be entered in PlantMaintenance by the fourth business day inJanuary. Services received from all partnersbetween January and June must be entered inPlant Maintenance by the fourth business day inJuly.Ensure a Reasonably Equal Service ExchangeOccurs. One legal premise of the Agility Programis that PennDOT must preserve the allocations thatare distributed from the MLF. This means that theactual costs incurred by PennDOT to serve thepartner in the Agility Program must be offset bythe partner’s return of a comparable amount ofservices to PennDOT

USE OF CONTRACTORS ANDSUBCONTRACTORS An Agility partner may repay PennDOT by

using contractors or subcontractors to provide theservices. However, AFSCME must agree to thisarrangement by signing the Work Plan.

23-10Update #1


Ch. Updated 10/13

WORK PLANS WITH MULTIPLEPARTNERSSome municipalities decide not to participate in

the Agility Program because they may lack theresources to participate in an Agility exchange.Having multiple partners under an Agility WorkPlan is allowable and may be especially helpful inenabling a group of municipalities to participate inthe Agility Program. PennDOT could have threemunicipalities join together to “give somethingback” to the Department. Individually the threemunicipalities may have been excluded from theprogram due to their inability to compensate theDepartment for services rendered. For example:three municipalities could provide litter pickup toPennDOT in exchange for line painting on aroadway that runs through the threemunicipalities. By providing the service to allthree municipalities at the same time, themobilization costs would be reduced making theservice more affordable to the municipalities.

WORK PLANS UNDER A THREE-WAYAGILITY WORK PLANA three-way Work Plan refers to a Work Plan

that contains three parties on the face of the WorkPlan – PennDOT and two eligible partners, whomall must sign a Work Plan as part of the agreement.In this scenario, PennDOT could complete anAgility project for Partner A but be compensatedfor doing so by partner B. Partner B would thenreceive a service from Partner A so that all threeparties benefit in some way from being in theAgility partnership.

AMENDING WORK PLANSIf after work begins under a Work Plan,

PennDOT or the partner wants to change the scopeof the project all parties may re-negotiate andamend the costs and work activities in the WorkPlan. The amended Work Plan should be initialedand dated by PennDOT, AFSCME and the partner.

BANKING Banking is like a savings account where one

party “saves up” dollar values by performingmore than one service for their partner over anextended period of time. The cumulative value ofthese performed services is then paid back by thereceiving partner within the time frame of theAgility Agreement. Note that the exchange ofservices under a banking arrangement must befully documented and completed before theAgility Agreement expires between partners.

Although permissible, banking should be kept to aminimum and the nature of the service exchangesand estimated dates of completion for each servicemust be established when the Work Plan is beingdeveloped. A “to be determined” designation isnot acceptable.

CLAIMS PROCESSA dissatisfied partner can sue PennDOT in the

Board of Claims, as long as the value of thedisputed services is $300 or more. This is whyPennDOT must view Work Plans signed under anAgility Agreement as legally binding documents.Conversely, if PennDOT has a claim against apartner, the available forums are either theCommonwealth Court or the Court of CommonPleas for the county where the partner is located(the choice of the forum rests with PennDOT); andthere is no minimum dollar value. In the lattersituation, the County Maintenance Office staffshould first contact the Agility Division beforetaking any action.

LIABILITYWork performed under an Agility Agreement

should be viewed similar to the way thatPennDOT views work performed by a contractor.Under Section 1911 of the Procurement Code, apartner that provides personnel, property,supplies or services to another partner shall beimmune from liability for any damages whicharise out of the use of such personnel, property,supplies or services. Also, Section 561(b) of theState Highway Law, 36 P.S. Section 670-561 (b),provides that a municipality which completesminor routine maintenance work on the roadwayor shoulders of a state highway for PennDOTunder a contract is relieved from any tort liabilityarising after the completion of the work so long asit conforms to the standards of the contract asagreed to by PennDOT.Partners sometimes ask whether PennDOT

would be liable if the partner’s employee wasinjured while working on an Agility project forPennDOT. The answer to this question is no,because the Procurement Code providesimmunity. The injured person’s employer isresponsible for providing him or her withworker’s compensation and related insurances.The same principle applies to PennDOTemployees undertaking projects for partners—PennDOT is responsible for the worker’scompensation coverage, and the partner isimmune from liability.

23-11Update #1


Ch. Updated 10/13

Further, Agility partners should be kept to thesame safety standards as PennDOT employees.The standards can be found under the Terms andConditions portion of the Agility Agreement (SeeAttachment A of the Agility Agreement), and areinterpreted in an earlier section of the guidelines.

23.17 FINANCIAL MATTERS “COSTING OUT” AN AGILITY PROJECTTHAT WILL BE PROVIDED TOPENNDOT’S PARTNER“Costing out” an Agility project can be a

challenge. This is because the items that go into“making a business offer” to PennDOT’s partneroften vary from one district to another andsometimes from county to county. There are alsotimes when unforeseen circumstances arise as partof completing a Work Plan activity. For thesereasons, costing out an Agility project is not anexact science.Generally, PennDOT considers two or more

items as part of costing out the service it willprovide to the partner. These items are:

Direct or hourly cost of PennDOT’s field staff,who are involved in the Agility project plus thecost of their benefits.Equipment cost. Material cost (that is incidental to the servicebeing provided).Other Costs.These four categories are defined below along

with several places where the cost information canbe obtained.

DIRECT COSTS AND BENEFITSDirect costs include direct salaries, wages and

overtime that are incurred by the Department’sdistrict, and county staff in implementing thework included in the Work Plan. The direct cost ofCentral Office staff who works in the AgilityProgram should not be included in thesecalculations. The hourly cost of PennDOT’s staff toperform a service can be determined by looking atactual payroll costs. Actual payroll costs containinformation on salaries, wages and overtime aswell as the average, hourly cost of PennDOT’sfield staff to perform a service, plus the cost oftheir benefits, payroll additives, etc.

EQUIPMENT COSTS Plant Maintenance equipment costs refer to the

cost to PennDOT to own, maintain, and operateequipment or the cost to PennDOT to rent andoperate equipment. All County MaintenanceOffice staff maintains a list of these hourlyequipment rates. Be sure to include costs forDepartment forces and equipment to mobilize forthe service being provided. Also, the rates to useand operate outside rented equipment are usuallymaintained at the County Maintenance Office.

MATERIAL COSTSMaterial costs refer to the cost of materials that

PennDOT purchases or provides to the partnerthat are incidental to the service rendered. Theword “incidental” means “something that is minorin nature…” when compared to the overall cost ofthe service. Material costs can be found on thePlant Maintenance system or by calling localsuppliers and/or by researching Internet sources. PennDOT is prohibited from providing only

materials to a partner as part of an Agility project,with the exception of the materials listed on page23-5. If materials are provided, the materials mustbe incidental to the service that PennDOT alsoprovides to the partner. Note that PennDOTcannot exchange salt alone with a partner. Inaddition, district office staff has the discretion toprovide only services to their partner.

OTHER COSTSOther costs involved in an Agility project may

result in additional expenses due to the localconditions in which the work is to be performed.For example, PennDOT’s lack of knowledge of ageographical area where the work is to be donemay result in extending the time frames in whichthe job can be completed. Other costs to considerare the distance to the work site, nature of thework (cutting overgrown shoulder areas instead ofregularly maintained areas), differences in the ageand condition of equipment, need for flaggers,extensive work zone set-up and administrativecosts incurred at the district/county offices.By adding the costs in two or more of the four

categories above, PennDOT arrives at a “businessoffer” or the amount of resources PennDOTbelieves it will need to complete an Agility projectfor its partner. Some other thoughts to keep in mind when

calculating and presenting PennDOT’s businessoffer to the partner are:

23-12Update #1


Ch. Updated 10/13

a. It is likely that PennDOT’s business offer tocomplete the partner’s Agility project may bemarginally higher in amount than whatPennDOT’s actual costs are. This is becausePennDOT must factor in other costs that weredescribed earlier.

b. PennDOT may, but is not required to, share itscost calculations with the partner. This is abusiness offer and PennDOT should keep inmind that had the partner procured acontractor to do the same work, it is unlikelythat the contractor would itemize and share itscosts with the partner.

c. When developing a Work Plan where a partneris to provide PennDOT with winter services, besure that a municipal agreement is not alreadyin place with PennDOT for the same areasbeing described in the Work Plan.Developing the Agility Work Plan (See Agility

Work Plan Training Manual for details)

23.18 MONITORING AGILITYACTIVITIES

Since the life of an Agility Agreement is usuallyfive years, with an option to renew for three years,our partners may take up to eight years tocomplete Agility projects for PennDOT. This issubject to arrangements made in the Work Plan.Therefore, it is important to monitor the qualityand quantity of the services being provided toPennDOT over a number of years by the partner.Two ways to do this include producing a

written receipt of the quality and quantity ofservices provided by the partner to PennDOT. Thereceipt will indicate to the partner what thecurrent balance due to PennDOT is andsubsequently be maintained on file in thePennDOT County Maintenance Office. Thewritten receipt can be the Work Plan if it isinitialed and dated by all parties after the work hasbeen performed and officially noted by thereceiving party that the job was acceptable.

A second method is to capture thisinformation on a computer system that will enablethe CAC to electronically maintain suchinformation. Regardless of the approach taken,the CAC is required to maintain documentationthat supports the figures and information cited inthe Work Plan for auditing purposes.Of equal importance is PennDOT’s need to

document, in writing, that the partner accepted the

Department’s work as described in the Work Planand the date this acceptance occurred. Likewise,the Department’s acceptance of the partner’s workand the date of acceptance should also bedocumented.See Attachment D for a copy of the Agility File

Checklist.

23.19 RELATED ACTIVITIESAGILITY WORK PLANS WITH PENN STATE UNIVERSITY (PSU)Developing Work Plans with PSU is a

complicated issue, which needs to be consideredon a case-by-case basis. Therefore, whencompleting Work Plans with PSU, there is anadditional approval required. After the Work Planhas been signed off by PennDOT, the partner andAFSCME, it must then go to the Agility Divisionwhich will forward the Work Plan to the Office ofChief Counsel for final approval.

WORK VERSUS VOLUNTEERACTIVITIESSometimes, in promoting the Agility Program

and other Department initiatives, union-coveredemployees are recruited to represent PennDOT atstate fairs, speak at customer advisory boardmeetings or otherwise promote some aspect of theDepartment in forums with partners, customers,and other employees. In these situations, theunion-covered employees who carry out theseapproved Agility work tasks are to becompensated for their time even if the work isperformed outside of their regular work hours. Other paid work activities may include, but are

not limited to, union-covered employees speakingon behalf of the Department at schools or otherlocations in order to educate people abouttransportation, or to carry out activities listed inthe Department’s business plans. In these cases, anemployee is not acting as a volunteer: he or she isacting as an employee of the Department.In contrast and as defined by the U.S.

Department of Labor, a volunteer is a person whooffers his/her services “…freely and withoutpressure or coercion, direct or implied from anemployer” (U.S. Department of Labor, 29 CFR555.103).Three examples in which an employee is acting

as a volunteer and not entitled to compensationwhile performing activities associated with theDepartment are the following:

23-13Update #1


Ch. Updated 10/13

1. An employee who is a member of a volunteerfire company requests and is grantedpermission to drive a piece of Departmentequipment in a parade. In this case, while theDepartment may get some publicity byshowcasing the equipment in the parade, theemployee has requested to use the equipmentin his role as a volunteer fireman.

2. The Department sponsors a sports team foryouth and an employee volunteers to be acoach for the sports team. In this case theemployee is acting as a volunteer.

3. As a union representative, an employee attendsan evening meeting to develop and sign anAgility Work Plan For assistance and clarification on these matters,

please contact your Labor Relations Officer.

GENERAL COMMONWEALTHINFORMATION REQUIREMENTNo PennDOT employee can use the information

contained in this chapter for the purpose ofsuperceding any Commonwealth or Departmentpolicies and procedures. Purchasing andcontracting activities involving Commonwealthfunds and all expenditures and practices mustadhere to Commonwealth policies. Whereapplicable, this chapter incorporates such policiesand procedures. Questions about the use of theAgility concept for activities that are not coveredin this chapter should be directed to the AgilityDivision, the district office, or the responsibleprogram area.

MARKETING THE AGILITY PROGRAMMarketing is the process of planning and

executing the conception, pricing, promotion, anddistribution of ideas. This process createsexchanges of goods and services that satisfyindividual and organizational objectives.The following activities are just some of the

ways that you can market the Agility Program.Union employees are an integral part of anyoutreach plan.a. Personally contact every municipality andpromote Agility with ENTHUSIASM.

b. Attend a municipality meeting to explain theconcept of Agility.

c. Send a list of all active Agility projects to allmunicipalities each month.

d. Send Agility newsletters to municipalities.e. Encourage media coverage where possible.f. Send invitations to individuals andmunicipalities inviting them to attendCustomer Advisory Board meetings.

g. Use advertising activities for the AgilityProgram as one immediate way for the partnerto compensate PennDOT.

h. Do satisfaction surveys including telephoneand person-to-person calls.

i. Directly mail letters to a targeted audience.j. Use the Internet Web Page to advertise theprogram and encourage partners to “visit” thewebsite regularly.

23-14Update #1


Ch. Updated 10/13

23-15Update #1


Ch. Updated 10/13

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23-16Update #1


Ch. Updated 10/13

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23-17Update #1


Ch. Updated 10/13

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23-18Update #1


Ch. Updated 10/13

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23-19Update #1


Ch. Updated 10/13

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23-20Update #1


Ch. Updated 10/13

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23-21Update #1


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23-27Update #1


Ch. Updated 10/13

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23-28Update #1


Ch. Updated 10/13

23-29Update #1


Ch. Updated 10/13

23-30Update #1


Ch. Updated 10/13

23-31Update #1


Ch. Updated 10/13

chapter 23 agility - penndot home can only be altered by additional legislation. 23-3 update #1...

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