Interagency
or Interlocal Cooperation UPPS
No. 03.04.07
Contracts
or Agreements Issue
No. 1
Effective Date: 10/09/2009
Review: October 1 E6Y
01. POLICY STATEMENTS
01.01 The purpose of
this UPPS is to ensure the timely preparation, execution and payment of “Interagency”
or “Interlocal” Cooperation contracts or agreements between Texas State and
another state agency, or local governmental entity. Except as noted in this
UPPS, a written contract or agreement is executed between the contracting
parties prior to the performance of the services.
01.02 When the university determines the need for services of employees,
materials, or equipment it cannot provide internally, it may enter into a
negotiated agreement or contract for these services from another state agency
or local government entity. In addition,
when another state agency or local governmental entity requests Texas State to
provide special or technical services in return for compensation of services
performed, a contract or agreement is prepared and executed.
01.03 Contracts or
agreements meeting the definition of a “Sponsored Program” are not covered by
this UPPS (refer to UPPS No. 02.02.01, Applying for Sponsored Programs). In addition, transactions involving the simple
pass-through of federal government funds from one state agency to another,
where services are not rendered in return for the receipt of the funds, do not
require a contract under this UPPS.
01.04 Approval of Interagency or Interlocal Cooperation contracts shall comply
with UPPS No. 03.04.02, Contracting
Authority to Commit the University. Certain
contracts require additional approval prior to university signature (see The Texas State University System (TSUS) Rules and Regulations, Chapter III, Section 1. “Items Requiring Board Approval”).
01.05 Texas Education Code, Sec. 95.21 or the current General Appropriations
for the biennium during which the contract term is in effect grants Texas
State’s specific contracting authority. Applicable contracts must contain this
legal citation.
01.06 Texas State must comply with Texas Administrative Code Title 1, Part 10, Chapter 204, Subchapter C prior to contracting with another state agency or institution of higher
education for any commodity or service identified as “information resource
technologies” and the total cost is estimated to
exceed the dollar amount specified in Texas Administrative Code (TAC), Rule §204.31.
02. DEFINITIONS
02.01
Interagency Cooperation (IAC) Contract:
A legal written agreement or contract in accordance with Texas Government Code, Chapter 771, “Interagency Cooperation
Act” between state agencies to furnish
special or technical services, including the services of employees, materials
or equipment.
02.02
Interlocal Cooperation (ILC)
Contract or Agreement: A legal written agreement or contract executed with a
local governmental entity in accordance with Texas Government Code, Chapter 791 “Interlocal Cooperation Contracts” to receive or furnish special or technical services,
including the services of employees, materials or equipment.
02.03
Receiving Agency: State agency or
local governmental entity receiving the benefits of the services defined by
contract in return for consideration or payment.
02.04
Performing Agency: State agency or
local governmental entity performing the services defined by the contract in
return for consideration or payment.
02.05
Contracting Officer: Individual specifically
authorized to enter into a contractual agreement on behalf of their
organization.
02.06
The
following forms are used with this UPPS:
Interagency Transaction
Voucher (Form #73-176) (rev. 10-93/4)
Texas
State University Payment Request (Form
#AP-1)
Contracted
Services Payment Voucher (Form
#FS-03)
Interagency Cooperation Contract Form
03. PROCEDURES FOR DETERMINATION, PREPARATION
AND PROCESSING OF AN INTERAGENCY OR INTERLOCAL COOPERATION CONTRACT
03.01 Any university department may request Texas State prepare and execute an
IAC or ILC contract with another state agency or local governmental entity. ILC contracts should follow the general form of an IAC
contract to capture the essential contract elements.
a.
The Contract Compliance Office will address any
questions regarding IAC or ILC contract use, preparation, or processing.
b. A Texas State contracting officer must grant emergency approval to
provide or receive services without an executed contract. The contracting officer
is responsible for ensuring a written contract or agreement, when required, is
processed and executed in a timely fashion.
03.02 Upon request,
the Contract Compliance Office shall provide blank copies of the Interagency Cooperation Contract Form and a Contract Cover Sheet
for preparation and processing of a contract. The department head or account
manager should provide the following information on a Contract Cover Sheet,
or via an interdepartmental memorandum, and submit it along with the proposed
contract or agreement to the Contract Compliance Office:
a. state agency or
local governmental entity performing or receiving the service, including the branch, division or department
of the agency or entity involved;
b. mailing address of
the involved agency or entity;
c. agency or entity contact and telephone number for additional information or
clarification regarding the proposed contracted services;
d. brief description
of the scope of the service or product to be provided under the terms of the
contract;
e. total actual or
estimated cost, (i.e., “not to exceed”), of the service or product being provided;
f. beginning and
termination dates of the contract; and
g. Texas State
department contact for additional information or clarification regarding the
proposed contract.
03.03 No contract,
whether formal or informal, between Texas State and other state agencies, or
local governmental entities, is executed or the service initiated until a Texas
State contracting officer has reviewed and approved the contract or agreement.
The only exceptions are when emergency oral approval to proceed is obtained
(see section 03.01b.).
a.
A formal contract is prepared and executed if the
total contract amount or agreement is expected to equal or exceed $50,000 for
the contract term or a fiscal year, whichever is longer.
b.
A formal contract is not required if the total
contract amount does not exceed $50,000 for the contract term or fiscal year,
whichever is longer. However an informal contract, agreement or memorandum of
understanding (MOU) is prepared to identify the essential contract elements and
obtain the necessary Texas State approvals:
1)
the account manager should use the Interagency Cooperation Contract Form to get the essential elements of the contract in writing,
or prepare a memorandum of understanding between Texas State and the other
contracting party outlining the essential contract elements;
2)
an authorized Texas State contracting officer must
approve the contract, regardless of whether the contract or agreement is
formal; and
3)
a formal contract is prepared and executed to cover
the amended scope if a change from the original scope of services increases the
total amount to $50,000 or greater.
03.04 State agencies
are required to obtain Department of Information Resources (DIR) approval prior
to contracting for acquisition of computer software, hardware, maintenance,
rental, programming and training, or any commodity or service concerning
Information Resource Technology from another state agency when the cost is
estimated to exceed the dollar amount specified in TAC, Rule §204.30. Prior to
initiating an IAC contract for information resource technologies, the account
manager is to contact the university’s Technology Resources Office to determine
if TAC Rule §204.30 applies; TAC Rule §204.31 exceptions apply; or a waiver
from the public solicitation requirement was previously granted to Texas State
by the DIR.
03.05 If determined
that TAC §204.30 requirements do:
a.
not apply, the contract’s supporting
documents should clearly indicate the TAC exception, or a copy of the DIR
approved waiver included. If exempt from DIR prior approval, the contract
documents should clearly state the specific exemption to this requirement.
b.
apply, the
account manager is to prepare a public competitive solicitation in accordance
with this rule or request a waiver from DIR for this requirement to determine
which constitutes the “best value.”
1)
The account manager may request that
Technology Resources prepare and submit a request to DIR for a waiver from the
public solicitation requirement in accordance with TAC §204.32.
2)
If the waiver is approved, the
account manager may prepare and submit the IAC for processing. A copy of the
approved DIR waiver is included in the contract’s supporting documentation.
3)
If DIR rejects the waiver request,
the account manager must initiate a public competitive solicitation in
accordance with UPPS No. 05.02.02, Texas State Purchasing Policy to determine if a private vendor’s solicitation response
meets the criteria set forth by TAC §204.30 which requires an award to a
private vendor instead of executing an IAC to meet the identified needs.
03.06 The account
manager prepares two original contract copies by completing the applicable
sections, initials all original copies of the contract on the signature sheet,
attaches the Contract Cover Sheet
and forwards the documents to the Contract Compliance Office for review and
finalization.
The following is required:
a.
The director of Contract Compliance shall review the
proposed contract. If any proposed terms or conditions are not in the
university’s best interests, the director shall confer with the appropriate university
offices to resolve the issues.
b.
Upon completion of the review, the director
shall initial the signature sheet of all original contract copies and forward
all original copies of the contract to the appropriate Texas State contracting officer
for approval.
c.
The contracting officer authorized
to sign the contract on behalf of the university shall approve the contract and
return all original signed copies to the Contract Compliance Office for
transmittal and distribution.
03.07 If Texas State
is the receiving agency and the estimated or actual total contract amount
exceeds $5,000.00 upon execution of the contract, memorandum of understanding
or another form of agreement, the following is required:
a.
the responsible account manager or department head
shall forward a purchase requisition to the performing agency to encumber the
funds for the services contracted for performance during a fiscal year;
b.
the appropriate
account managers or their designees shall approve the purchase requisition and
forward it to the Purchasing Office;
c.
the purchase requisition should
reference the IAC or ILC and attach supporting documentation for the Purchasing
Office’s file;
d.
if the contract transcends two or more fiscal years,
the responsible account manager shall prepare a new purchase requisition at the
beginning of each fiscal year to encumber funds to pay for services performed
in that fiscal year and attach a copy of the contract.
04. PROCEDURES FOR TRANSMITTAL TO THE
APPROPRIATE STATE AGENCY OR LOCAL GOVERNMENTAL ENTITY
04.01 Upon receipt of
the Texas State approved contract, the director of Contract Compliance shall do
one of the following:
a.
if Texas State’s approval executes
the contract, a copy of the executed contract is transmitted to the other state
agency or local governmental entity for information purposes; or
b.
if the contract requires the other state agency’s or
local governmental entity’s approval to execute, Texas State will transmit two
signed copies to the agency or entity for their approval. The director of Contract
Compliance shall forward a copy of the transmittal letter to the responsible
account manager or department head for information purposes.
04.02 Upon receipt of an executed contract, the Contract Compliance Office
shall distribute copies to the responsible divisional vice president and
account manager. An original copy of the executed
contract is filed in the Contract Compliance Office for records retention
purposes.
04.03 The account
manager who originated the IAC or ILC contract is responsible for any follow-up
actions which are required to expedite the execution of the contract due to
delays encountered in the above process.
05. PROCEDURES FOR AMENDMENT TO AN IAC OR ILC
CONTRACT
05.01 The responsible
account manager may amend a valid IAC or ILC contract to:
a.
extend or shorten the contract
period, if within the biennium (or a fiscal year in the event of a special
one-year appropriation) in which the contract term is in effect;
b.
increase or decrease the dollar
amount of the current valid contract; or
c.
increase or decrease the quantity of
services called for under the current valid contract.
05.02 The responsible account manager cannot amend an IAC or ILC contract and
must create a new contract:
a.
to extend the contract period beyond
the biennium or a fiscal year (in the event of a special one-year
appropriation) in which the contract term is in effect;
b.
to add new or different scope of
work not already authorized by the existing contract; or
c.
if the contract’s term has expired.
05.03 An IAC or ILC
contract amendment shall follow the same process for review, approval,
execution and distribution as outlined in Section 04. above. The Contract Compliance Office must receive a copy of executed contract
amendments.
06. PROCEDURES FOR PAYMENT OR BILLING FOR
SERVICES RENDERED
06.01 The university will not process payment for services without an executed
IAC or ILC contract or agreement, except as noted in Section 03.03 above.
06.02 Payment of
services performed when Texas State is the receiving agency through an IAC or
ILC contract is processed on a Texas
State University Payment Request (Form
#AP-1) or a Contracted
Services Payment Voucher (Form #FS-03).
Contact the General Accounting Office if copies of this form are required, or
if questions arise regarding the form’s use or preparation.
a.
The performing agency normally
prepares the applicable form and submits it to Texas State for processing. The
General Accounting Office, with the approval of the account manager, will
process the request for payment for services rendered.
b.
When payment is made with state
appropriated funds, the performing agency must provide a recurring transaction
index (RTI) number to process the transaction in the State Accounting System in
compliance with Government Code Chapter 771 and Comptroller Fiscal Policies and
Procedures A.028.
c.
The interagency transaction voucher must contain the
IAC contract number or the specific exception (as shown in Section 03.03).
06.03 The receiving agency
may advance funds to the performing agency for the performance of services
under an IAC contract if:
a.
federal funds are involved and the receiving
agency determines that the advance would facilitate the implementation of a federally
funded program;
b.
state appropriated funds are
involved. The advance may be up to the total cost of the approved IAC contract
for providing the contracted services, materials, or equipment.
06.04 Billing of
services performed when Texas State is the performing agency through an IAC or
ILC contract is processed on a Interagency Transaction
Voucher, (Form #73-176) (rev. 10-93/4) or the receiving agency’s authorized
form.
06.05 The account
manager is responsible for the submittal, reporting and follow-up activities
related to the processing of the payment to Texas State for providing services.
07. PROCEDURES FOR CONTINUANCE OF A CONTRACT
07.01 The account
manager must allow sufficient lead time for processing, approving and executing
an extension to an IAC or ILC contract, if allowed per Section 05 above. At
least two months prior to the termination date of a valid IAC or ILC contract,
the account manager should determine if a new contract is required and notify
the Contract Compliance Office.
a.
If sufficient time is not available,
the responsible account manager is to contact the appropriate university contracting
officer for approval to proceed under the emergency approval procedure (see section
03.01b. above).
b.
When granting emergency approval to
extend, the contracting officer is to notify the director of Contract
Compliance.
07.02 If the account manager
has not notified the director of Contract Compliance, the director of Contract
Compliance should attempt to contact the account manager to determine if the
contract will be renewed, terminated or a new contract processed.
08. REVIEWERS
OF THIS UPPS
08.01 Reviewers of this UPPS include the following:
Position Date
Director, Contract Compliance Oct 1 E6Y
Director, General Accounting Office Oct 1 E6Y
Director, Technical Resources Oct 1 E6Y
Business Services
09. CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in
their official capacities and represents Texas State policy and procedure from
the date of this document until superseded.
Director of Contract Compliance; senior reviewer of this
UPPS
Associate Vice President for Financial Services
Vice President for Finance and Support Services
President