Chapter 4: Interlocal Agreements
Section 1: Overview
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.
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.