Interagency Agreements - 1509

Introduction

An Interagency Agreement (IAA) is an agreement between two or more state departments (Government Code, Section 11256) with one furnishing services, materials or equipment to, or performing work for the other state department(s). This topic provides information on when IAAs are used, special provisions, and requirements.

When IAAs are Used

IAAs are used when contracting with:

• Another state department,
• A California State University, or
• A University of California campus (UC) if the UC agrees to calculate cost based upon the provisions of the State Administrative Manual (SAM)

Unique Considerations

IAAs:

• Are exempt from
  • Advertising in the California State Contracts Register
  • Competitive bidding
• Do not include the DVBE participation requirement if the department is using its own personnel
• May provide for advancing of funds (Government Code, Sections 11257 – 11263 and the SAM section 8758.1)

When IAAs are Not Used

IAAs may not be used for contracts with:

• Campus Foundations
• The Federal Government
• Local entities
• Other states

Additionally:

• Agencies shall not use IAAs to obtain third party goods or services from any third parties (for example: State Agency A and B need to purchase new computers. State Agency A cannot purchase the computers for both Agencies then enter into an IAA to sell them to Agency B.);
• Agencies shall not use IAAs to circumvent any state law or contracting requirements.

Dollar Thresholds

Routine computer processing and related IT services that the California Department of Technology (CDT) is required to provide to “customer” departments are without dollar limits.

Departments should refer to their approved PAAL for the dollar threshold applicable to all other IT IAAs.

Please contact the Purchasing Authority Unit at: pams@dgs.ca.gov for assistance.

Authority to Conduct Purchasing Activities Using IAAs

Executing IAAs for services is part of a department’s approved purchasing authority. Departments with IAA purchasing authority may execute an IAA subject to the following:

• The current General Terms and Conditions for Interagency Agreements (GIA), including SAM 8752 and 8752.1 cost provisions, are used without modification and
• The agreement has no direct or indirect subcontracting (Government Code, Section 11256).

Although these acquisitions can be conducted under purchasing authority, review/approval services are available on request for any contract, regardless of value or complexity.

If the department does not have purchasing authority or if an IAA exceeds the department’s approved purchasing authority dollar threshold, and is not part of a reportable IT project, departments must workflow the IAA to DGS/PD One Time Acquisition Unit for review and approval.

When the contract is part of a reportable IT project and exceeds the delegated purchasing authority dollar threshold issued by DGS/PD, the state department must contact CDT in accordance with Public Contract Code, Section 12100.

Requirements for Executing

The requirements to execute an IAA are:

• Departments must use the current General Terms and Conditions for Interagency Agreements.
• The department requesting and paying for the services shall be the “State Agency” and the department rendering the services shall be the “Contractor”.
• The Purchasing Authority number and the contract number shall be that of the State Agency.

Additional IT Considerations

All pre-procurement rules must be followed including the signed Certificate of Compliance with state IT Policies (SIMM 71B), in accordance with SAM §§ 4819.41 and 4832.

If the IT/IAA is to procure services from a consolidated data center in support of multiple projects, the following must be certified (SAM § 4832):

• The funding level is appropriate for the nature and scope of the services to be supplied;
• The services are consistent with CDT policy; and
• Project reporting for the various projects is current.