PennDOT's retro-reimbursement process differs from the traditional design-to-construction process for capital projects. Local bridge projects that follow the "traditional" delivery process employ federal procedures and must follow the full PennDOT oversight project development process. Local bridge projects that follow a "retro-reimbursement" process adheres to the state liquid-fuel procedure, which streamlines reviews and delegates various PennDOT reviews to the local sponsor.
In the retro-reimbursement process, PennDOT still performs a structural adequacy review of the structure. A municipality that follows the retro-reimbursement process will use local funds to rehabilitate or replace the bridge and then request reimbursement from PennDOT. PennDOT will reimburse the municipality 80 percent of the following documented costs: design, engineering, right-of-way, utility, construction (including construction inspection and construction engineering). The municipality will be responsible for 20 percent of the project costs.
The process entails the following steps:
- The municipality obtains the services of a design consultant by using its own procurement procedures.
- The project bridge design undergoes a Structural Adequacy Review by PennDOT's Bridge Engineer (or delegates). The project bid package may not be advertised until this approval has been issued.
- The municipality/consultant prepares the bid package. The municipality advertises the project and opens bids according to its own procurement procedures.
- If a municipality does not have qualified personnel on its own staff, it must obtain the services of a qualified construction inspection consultant. This includes providing for inspections at fabricator facilities.
- The municipality enters into a contract with the low-bid construction company. The selected contractor must be pre-qualified by PennDOT to perform the construction work.
- Upon completion of the construction, the municipality sends documentation of project completion to PennDOT's project manager.
- The municipality enters into a retro-reimbursement agreement with PennDOT. The agreement will be electronically processed through PennDOT's Reimbursement Agreement System (RAS).
- The municipality submits invoices to PennDOT requesting 80 percent reimbursement and is subsequently paid by PennDOT based on availability of funds in the TIP line item, Municipal Bridge Line Item (MPMS #102105). Projects will be funded on a “first-come, first-served” basis. If final project cost is higher than requested amount at time of application, the municipality must work with PennDOT District 6 and DVRPC to resolve discrepancies in cost-overruns and be prepared to cover all cost increases that are above the requested amount in the application.