Chapter 4: Interlocal Agreements

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Section 1: Overview

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Statutory Authority

Texas Transportation Code §201.209 authorizes TxDOT to enter into Interlocal contracts with one or more local governments in accordance with Texas Government Code Chapter 791. Interlocal agreements are for TxDOT to either provide or acquire goods or services.

43 Texas Administrative Code §9.9 establishes procedures for contracting with one or more local government agencies to perform governmental functions and services through an Interlocal contract.

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Interlocal Agreements Compared to Advance Funding Agreements

Advance Funding Agreements are agreements where a local government is providing either resources or money to a project. Typically, these Advance Funding Agreements are road-related contracts and the projects are authorized under statutes that either allow or require local governments to contribute toward road-related expenditures.

Interlocal agreements are also agreements with a local government. However, TxDOT uses the term “Interlocal” to indicate agreements that are not Advance Funding Agreements. Instead, Interlocal agreements are used when contracting to acquire non-roadway governmental functions and services.

Interlocal agreements require a detailed Scope of Work and Advance Funding Agreements do not.

Interlocal agreements do not allow for construction. Construction projects must be handled through Advance Funding Agreements.

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