Purchasing Bid Laws

Texas Government Code Chapter 791 – Interlocal Cooperation Act – Chapter 791 of the Texas Government Code is the Interlocal Cooperation Act, which allows Texas cities, counties, school districts, and other government entities to partner in buying goods or services instead of each running their own bid.   

Public entities are normally required to follow competitive bidding laws for purchases above certain dollar amounts. Chapter 791 provides a legal way to meet those requirements through cooperation. This saves time, money, and resources by avoiding duplicate bidding.  

Texas Government Code 791.025 – Contracts for Purchases – This section of the Interlocal Cooperation Act provides rules for how one local government can purchase goods or services (including employee benefits) through another local government or cooperative that has already done the competitive procurement.  A local government may agree to purchase goods or services through another local government’s contract if that contract was awarded using a competitive bidding that meets the requirements of Texas law.  This applies to employee benefits programs such as medical, dental, vision, life or disability insurance.