Interagency and Interlocal Contracts (C-18)
Original Implementation: Unpublished
Last Revision: July 10, 2007
The purchase of goods or services from another agency of the state of Texas is allowed by the Interagency Cooperation Act, except that a state agency may not enter into an agreement or contract that requires or permits the agency to exceed its duties and responsibilities or the limitations of its appropriated funds. An agency may purchase goods, equipment and special or technical services including the services of an employee through an Interagency Cooperation Agreement.
The purchase of goods or services from or by a political subdivision such as a city or county government, school district, or junior or community college in agreement with a state agency is handled as an Interlocal Agreement, and is allowed so long as neither the agency nor the political subdivision exceeds its duties and responsibilities or the limitation of its appropriated funds or its governing board or commission.
A state agency may not provide services or resources to another agency that are required by Article XVI, Section 21, of the Texas Constitution to be provided under a contract awarded to the lowest responsible bidder. Printing services MAY NOT be purchased through an Interagency or Interlocal Agreement.
For some large dollar interagency and interlocal contracts, board approval may be required; see Policy D-20.5, Items Requiring Board of Regents Approval.
SFA AS THE RECEIVING AGENCY
A requisition must be submitted to initiate an interagency or interlocal purchase where SFA is the receiving agency. The requisition must include the following:
- the kind and amount of goods or services to be provided;
- the basis for computing reimbursable costs; and
- the maximum cost during the period of the agreement.
If the cost will be $50,000 or greater a formal agreement must be completed in addition to the requisition and including the same information above.
SFA AS THE PERFORMING AGENCY
The purchasing office is not involved. A formal written agreement signed by both agency heads is required. Forms for interlocal and interagency contracts are available on the general counsel web site. An Interlocal Agreement requires a formal written agreement regardless of the dollar amount. The written agreement must include the following.
- the kind and amount of goods or services to be provided;
- the basis for computing reimbursable costs; and
- the maximum cost during the period of the agreement.
Cross Reference: Texas Government Code, Title 7, Chapter 771 and Chapter 791; Texas Constitution, Article XVI, Section 21;
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Director of Purchasing and Inventory/HUB Coordinator
Forms: Purchase Requisition (Use FRS System); Interagency Cooperation Agreement (General Counsel’s website); Interlocal Agreement (Purchasing Office)