TEA Policy under Federal Regulations (EDGAR)

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Texas Education Agency

News Bulletin

Department of Contracts, Grants and 
Financial Administration

November 30, 2017


ESCs are required under TEC Section 8.002 to (1) assist school districts in improving student performance, and (2) enable school districts to operate more efficiently and economically. ESCs use many methods to meet this statutory requirement, including the creation of shared services arrangements, through local contracts, and interlocal agreements.

TEA Policy under Federal Regulations (EDGAR)

The following options for providing LEAs more flexibility in procuring services with federal funds from ESCs are available under the EDGAR regulations.

1. Use of Interlocal Agreements

2 CFR 200.318(e) encourages LEAs to use state and local intergovernmental agreements or inter-entity agreements, where appropriate, for procurement or use of common or shared goods and services. LEAs can procure services from an ESC in different ways.


Option 1A

If multiple LEAs are procuring the same services for the same price by joining interlocal agreements through ESCs, then the ESC could maintain EDGAR procurement compliance documentation for the group of LEAs entering into the interlocal agreement. Once each LEA verifies the ESC’s compliance with the EDGAR, the LEA can purchase the services from the ESC without any further compliance documentation being needed. One example of this type of interlocal agreement is a consortium for professional development where all the participating LEAs have access to the same professional development and pay the same price for the services.

Note, there have been audit findings when one LEA is paying a different price from another LEA for the same service received through the interlocal agreement. However, the price can be per teacher participating, where LEAs pay different prices due to different numbers of teachers participating.


Option 1B

If the LEA is procuring specific services that are different for each LEA, then the LEA must follow EDGAR procurement requirements, including obtaining price quotes from an appropriate number of vendors (preferably other private vendors, not other ESCs) and using some type of selection matrix to identify the service provider who best benefits the LEA, as appropriate.

2. TEA Authorizing ESC Services as Noncompetitive

2 CFR 200.320(f)(3) allows TEA, as the pass-through entity, to authorize noncompetitive proposals in response to a written request, including contracted services from ESCs to LEAs. TEA will authorize written requests for ESC services to be considered noncompetitive procurements for LEAs.


Option 2A

LEAs would submit the request for noncompetitive procurement form (located on the TEA website) for those ESC services they wish to have authorized as noncompetitive.


Option 2B

Each ESC may request TEA to provide a broad, general authorization that any service from that ESC be authorized as a noncompetitive procurement for LEAs.*  Contact your ESC to determine if your ESC will be submitting a broad, general request. If your ESC submits this request to TEA then Options 1A and 2A are not needed.


*A broad, general authorization from TEA for all ESC services to be considered noncompetitive procurements is consistent with state law. However, as noted above, the EDGAR requirement stipulates that the TEA preauthorization be in response to a “written request from the non-federal entity.” An auditor may request evidence of the LEA’s written request. Therefore, TEA recommends each ESC consult with its constituent LEAs and submit the noncompetitive procurement request in writing on behalf of the LEAs.


If LEAs have any questions related to procuring ESC services, LEAs may contact their ESC or TEA for additional technical assistance and support.