Faizan,
I wanted to know what version of IOS and platform that you are trying to comfigure dot1x for? As far as device administration goes, using telnet or ssh will allow you access to the device since that is the design of authentication to the device itself. As far as network access goes there is no local failover feature avaialble. There is a critical vlan feature that you can use in case the radius servers were to go down, and in this case the user will be assign to that specific vlan, you then can enable authentication once the radius servers come back online.
Let me know version of ios and platform you are running and i can send the commands along.
Thanks,
Tarik Admani