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Section 6: Interagency Agreements and Contracts

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The Interagency Cooperation Act, Chapter 771 of the Government Code, authorizes state agencies to contract with one another when special or technical services are needed and internal resources are not available to the agency needing the service. This act also provides for the performing agency to be reimbursed by the receiving agency for the actual cost of those services. For the reimbursement process, refer to the Financial Management Policy Manual.

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Interagency Exchanges of Less Than $50,000

Interagency exchanges of less than $50,000 are exempt from the requirements of a written agreement or contract. Agencies involved with this type of exchange may document the exchange with an informal letter agreement. The division director or district engineer will sign letter agreements. A sample letter agreement for interagency exchanges of less than $50,000 is pictured below.

Sample letter agreement for interagency
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Figure 4-1. Sample letter agreement for interagency exchange of less than $50,000

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Interagency Exchanges of More Than $50,000

An interagency exchange of more than $50,000 requires a contract and must be executed by the executive director or the director of Research and Technology Implementation. These contracts would be processed through Contract Services.

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