This Master Interlocal Agreement will allow Kyle to partner with Grand Prairie for better pricing for purchasing equipment, supplies and services. One example of cost savings using this agreement will be microsurfacing projects. Last year, Kyle contracted with Viking Construction for all the microsurfacing projects at a rate of $3.35 per square yard (sq yd); however, Grand Prairie has a microsurfacing contract with Viking Construction at a rate of $2.89 per sq yd. Having this agreement will allow Kyle to use Grand Prairie’s rate of $2.89. Without this agreement, a microsurfacing project consisting of 69,198 sq yds based on Kyle’s last year’s rate with Viking would cost $231,813.30; whereas having this agreement, Kyle would get Grand Prairie’s rate making the cost $199,982.22, a savings of $31,831.08 for this one microsurfacing project.
Chapter 791 of the Texas Government Code, also known as the Interlocal Cooperation Contracts Act, authorizes all local governments to contract with each other to perform governmental functions or services including administrative functions normally associated with the operation of government such as purchasing of necessary equipment, supplies and services.
The City of Kyle and the City of Grand Prairie would like to enter into a Master Interlocal Agreement that would authorize each to utilize current active and future contracts awarded by the other entity.
The supplier for each contract shall bill the entity using the contract directly for all goods and services purchased and each entity shall be responsible for payments and ensuring the supplier's compliance with all conditions of the agreement. |