Authority/Reference(s) Texas Constitution, Article XVI, Section 21; Texas Government Code, §771
Revision Date April 1, 2016


DFPS uses interagency contracts to contract with another state agency or state university to provide necessary and authorized services or resources. The Interagency Cooperation Act prohibits an agency from entering into an agreement or contract that requires or allows the agency to exceed its duties and responsibilities or the limitations of its appropriate funds.

An agency may purchase goods, equipment, and special or technical services, including the services of an employee through an interagency contract unless the purchase requires competitive procurement as stipulated in the Texas constitution.

A written contract is required unless the commissioner or  designee has authorized a policy waiver. A waiver may be necessary if:

  • There is an emergency for the defense or safety of the civil population or to plan and prepare for such emergencies
  • Cooperative efforts, proposed by the Governor, for the economic development of the State
  • Situations in which the amount involved is less than $50,000 (Best practice in these situations is to proceed with the development and implementation of a formal contract or other formal agreement in accordance with this policy unless it is clearly not practical to do so.)
Contract staff should consult with Legal if a waiver is needed.

An interagency agreement that is exempt from the requirements of a written contract should be documented in a memorandum of agreement (MOA) or  memoranda of understanding (MOU).


Interagency contracts must include:

  • The term of the agreement;
  • The kind and amount of services or resources to be provided;
  • The basis for computing reimbursable costs; and
  • The maximum cost during the period of the agreement or contract.
  • The HHS Data Use Agreement when confidential or otherwise sensitive information (such as client information, protected health information (PHI), personally identifiable information (PII)) is exchanged.

The 2035a web-based purchase request (WPR) is not applicable to interagency purchases; however, planning must be documented through the completion of a Needs Assessment for Administrative Interagency/Interlocal Contracts form (2035IAC-INL) or another similar instrument.

As a best practice, interagency contracts should be reviewed every five years to determine if there is a need to enter into a new interagency contract with a new contract number. This practice standardizes contracting across DFPS by keeping non-competitively procured contracts on the same cycle as competitively procured contracts.