INTERGOVERNMENTAL COOPERATION ACT
AGREEMENTS
The Intergovernmental
Cooperation Act, 31 U.S.C. § 6505, provides that the President may prescribe
statistical and other studies and compilations, development projects, technical
tests and evaluations, technical information, training activities, surveys,
reports, documents, and other similar services that an executive agency is
especially competent and authorized by law to provide. The services prescribed
must be consistent with and further the policy of the United States Government
of relying on the private enterprise system to provide services reasonably and
quickly available through ordinary business channels.
Executive branch agencies may provide services prescribed by
the President to a State or local government when (1) written request is made by
the State or local government; and (2) payment of pay and all other identifiable
costs of providing the services is made to the executive agency by the State or
local government making the request. Payment received by an executive agency for
providing services under this section shall be deposited to the credit of the
principal appropriation from which the cost of providing the services has been
paid or will be charged.
OMB Circular A-97
sets forth guidance concerning the Intergovernmental Cooperation Act. It
provides that agencies may provide the following services to a state or local
government pursuant to the Act:
1. Any existing statistical or other studies and
compilations, results of technical tests and evaluations, technical
information, surveys, reports, and documents, and any such materials which
may be developed or prepared in the future to meet the needs of the Federal
Government or to carry out the normal program responsibilities of the
Federal agencies involved.
2. Preparation of statistical and other studies
and compilations, technical tests and evaluations, technical information,
surveys, reports, and documents, and assistance in the conduct of such
activities and in the preparation of such materials, provided they are of a
type similar to those which the Federal agency is authorized by law to
conduct or prepare.
3. Training of the type which the Federal agency
is authorized by law to conduct for Federal personnel and others or which is
similar to such training.
4. Technical aid in the preparation of proposals
for development and other projects for which the Federal agency provides
grants-in-aid or other assistance, provided such aid primarily strengthens
the ability of the recipient in developing its own capacity to prepare
proposals.
5. Technical information, data processing,
communications and personnel management systems services which the Federal
agency normally provides for itself or others under existing
authorities.
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Such services may not be provided unless the agency providing the
services is providing similar services for its own use under the policies set
forth in OMB Circular A-76. In addition, in accordance with the policies set
forth in Circular No. A-76, the requesting entity must certify that such
services cannot be procured reasonably and expeditiously by it through ordinary
business channels.
Such services may not
be provided if they require any additions of staff or if they involve outlays
for additional equipment or other facilities solely for the purpose of providing
such services, except where the costs thereof are charged to the user of such
services. No staff additions may be made which impede the implementation of or
adherence to the employment ceilings contained in OMB guidance or directives. In
the event a request for a service is denied, the Federal agency shall furnish
the entity making the request with a statement indicating the reasons for the
denial.
OMB Circular A-97 also states that
when a Federal agency provides services under the Intergovernmental Cooperation
Act, full cost recovery must be achieved; payment of all identifiable direct or
indirect costs of performing such services must be made.
NOTE: Agreements are subject to legal review and clearance in
accordance with your office’s policies and procedures. For advice on whether a
certain transaction should be undertaken pursuant to the Intergovernmental
Cooperation Act or some other authority, contact the General Law Division,
Office of the Assistant General Counsel for Administration, at (202)
482-5391.
Model Intergovernmental Cooperation Act
Agreement.
MEMORANDUM OF
UNDERSTANDING
THROUGH
WHICH
[name of State or local
agency]
IS
PURCHASING
[state what they are purchasing]
FROM
[name of your operating
unit]
U.S. DEPARTMENT OF
COMMERCE
Agreement No.___
3
1. PARTIES AND
PURPOSE
This Memorandum of
Understanding (MOU) establishes an agreement between the [name of other party]
and [name of DOC
office], U.S. Department of Commerce
(DOC), through which [name of other
party] will pay [name of DOC office]
for [provide a general description of the good/service for which the other
party is paying].
2. AUTHORITY
The authorities for
[name of other party] and DOC to enter into this agreement are:
(1) the Intergovernmental Cooperation Act, 31
U.S.C. § 6505, and
(2) [set
forth the other party’s legal authority under which it is making the
purchase for goods/or services, i.e., the programmatic authority to which
the purchase is related].
3.
TERMS AND
CONDITIONS
[State the terms and
conditions of the agreement, i.e., what it is specifically that the other party
is purchasing, delivery requirements, and the amount that your office will
receive as payment.]
[Name
of your office] will achieve full cost
recovery for the goods and services it is providing under this
agreement.
4. TRANSFER OF
FUNDS
[Explain the details of
how the other party will pay for the goods/services, e.g., whether payments will
be monthly, quarterly, in advance, etc.]
5. OMB CIRCULAR A-97
CERTIFICATION
As required by OMB Circular A-97, [name of other party] certifies
that the services being requested pursuant to this agreement cannot be procured
reasonably and expeditiously by it through ordinary business
channels.
6. CONTACTS
The contacts of each
party to this agreement are:
[Name of DOC
contact]
[title of DOC
contact]
[Address of DOC
contact person]
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phone:[phone number of DOC contact person]
fax : [fax number of
DOC contact person]
E-mail:
[E-mail address of DOC contact
person]
[Name of other
party’s contact person]
[title of other party’s contact person]
[address of other party’s
contact person]
phone:[phone number of other
party’s contact person]
fax : [fax number of other party’s contact person]
E-mail:
[E-mail address of other party’s
contact person]
The parties
agree that if there is a change regarding the information in this section, the
party making the change will notify the other party in writing of such
change.
7. DURATION OF AGREEMENT, AMENDMENTS AND
MODIFICATIONS
This agreement will
become effective when signed by all parties. The agreement will terminate on
[date], but may be amended at any time by mutual consent of the parties.
[NOTE: If the agreement will last longer
than 3 years, the following sentence should be included in the agreement: “The
parties will review this agreement at least once every three years to determine
whether it should be revised, renewed, or canceled.”]
Any party may terminate this
agreement by providing ___ days written notice to the other party. This
agreement is subject to the availability of funds.
8. RESOLUTION OF
DISAGREEMENTS
Should disagreement
arise on the interpretation of the provisions of this agreement, or amendments
and/or revisions thereto, that cannot be resolved at the operating level, the
area(s) of disagreement shall be stated in writing by each party and presented
to the other
party for consideration. If
agreement on interpretation is not reached within thirty days, the parties shall
forward the written presentation of the disagreement to respective higher
officials for appropriate resolution.
_______________________________
[signature of person who has authority
to bind other party to the
agreement]
[typed
name]
[typed title]
[typed name
of other party]
[typed address of other party]
_____________________
[date]
_______________________________
[signature--must be an official with
authority to sign “Intergovernmental
Cooperation Act”
Agreements]
[typed name]
[typed
title]
[typed office at
DOC]
U.S. Department of Commerce
[typed address]
_____________________
[date]
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