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JUK 23 d. When the COUNTY will perform all such "Relocation Work" entirely by continuing contract, which contract to perform all future "Relocation Work" was executed with COUNTY'S Contractor prior to August 3,1965, then Appendix "A" of Assurances is not required. 3. The DEPARTMENT hereby agrees to reimburse the COUNTY for all costs incurred by it in each such relocation of said facilities, in accordance with the provisions set forth in DEPART- NIENT Procedure 132.046 "Reimbursement for Utility and Railroad Relocation," dated October 1, 1973, and any supplements or revisions thereof. It is understood and agreed by and between the parties that preliminary engineering costs not incorporated in the COUNTY's plans and esti- mates, as approved by the DEPARTMENT, shall not be subject to payment by the DEPART- MENT. 4. Plans and specifications of the work to be performed by the COUNTY on each project contemplated under the terms of this agreement are made a part hereof by reference, upon approval by the DEPARTMENT. All work performed by the COUNTY pursuant hereto shall be performed according to these plans and specifications as approved by the DEPARTMENT, and all subsequent plan changes shall likewise be approved by the DEPARTMENT. All "Relocation Work" covering facilities to be relocated to a position within the highway right of way will be accommodated in accordance with the provisions of said "Utility Accommodation Guide," and any supplements thereto or revisions thereof. 5. All labor, services, materials and equipment furnished by the COUNTY in carrying out the work to be performed hereunder on each project shall be billed by the COUNTY direct to the DEPARTMENT. Separate records as to the cost of contract bid items and force account items performed for the COUNTY on each project shall also be furnished by the COUNTY to the DEPARTMENT. 6. The COUNTY and the DEPARTMENT agree that the method to be used in developing the relocation or adjustment cost may be any of the following: a. Actual and related indirect costs accumulated in accordance with a work order accounting procedure prescribed by the applicable Federal or State regulatory body. b. Actual and related indirect costs accumulated in accordance with an established accounting procedure developed by the COUNTY and approved by the DEPART- MENT. c. An agreed lump sum as supported by a detailed analysis of estimated cost, such specific sum and analysis to be attached to the COUNTY's plans and specifications and approved by the DEPARTMENT (Note: This method is not applicable where the estimated cost of the proposed adjustment exceeds $25,000). The COUNTY shall clearly state the applicable method in its plans, specifications and estimates as submitted to the DEPARTMENT. 7. The DEPARTMENT and the COUNTY agree that the adjustment of the COUNTY'S facilities on individual projects may require the operation of the old facility until the new facility is functioning. If the old facility must remain in operation until the new facility is functioning, the reason(s) must be clearly stated in the COUNTY'S plans, estimates and specifications as submitted to the DEPARTMENT. 8. The DEPARTMENT and the COUNTY agree that the proposed new facilities on individual projects to be installed in the COUNTY'S system may remain in useful service beyond the time when the overall (old) facility, of which it is a part, is replaced. If the new facility will remain in useful service as above and indicated in the COUNTY'S plans and specifications, or if an entirely new facility is constructed and the old facility retired, credit for expired service life will apply and the estimated or actual credit must appear in COUNTY'S plans and estimates. 42 7-7 i