Authority/Reference(s) Texas Government Code §791
Revision Date April 1, 2016


An interlocal agreement is a type of contract used when DFPS enters into an agreement with local government to perform governmental functions and services as stipulated in the Interlocal Cooperation Act. 

An interlocal agreement must:

  • Be authorized by the governing body of both DFPS and the local governmental entity;
  • State the purpose, terms, rights, and duties of both parties; and
  • Specify that each party paying for the performance of governmental functions or services must make those payments from their current available revenues.
The HHS Data Use Agreement must be included when confidential or otherwise sensitive information (such as client information, protected  health information (PHI), personally identifiable information (PII)) is exchanged.

An interlocal agreement may be used to:

  • Study the feasibility of the performance of a governmental function or service; or
  • Provide a governmental function or service that each party to the contract is authorized to perform individually.

If the services sought do not fall into the definition of governmental functions and services as stipulated in the Texas Government Code 791.003 (1)(3), then the service must be procured competitively.