Services
Salt Procurement: Interlocal Cooperation Agreement
Joint Procurement with Other Local Governments
Counties may procure road salt through a joint purchasing effort with other local governments using an Interlocal Cooperation Agreement. Kentucky law allows public agencies to collaborate on shared services and procurement activities under KRS 65.210–65.300.
Joint procurement can allow participating governments to aggregate purchasing power, potentially securing better pricing, improved delivery terms, and greater vendor interest.
Step 1: Determine Interest from Other Local Governments
County officials should first determine whether neighboring counties, cities, or other public agencies are interested in participating in a joint road salt purchase.
Potential partners may include:
- Neighboring counties
- Cities within the county
- Other regional governmental entities with road maintenance responsibilities
Early discussions should address:
- Estimated salt tonnage needs for each participating agency
- Preferred delivery schedules and locations
- Storage capacity and logistical considerations
- Desired timing of the procurement process
Combining purchase quantities may allow vendors to offer more competitive pricing due to larger volume purchases.
Step 2: Review Interlocal Cooperation Statutes
Participating agencies should review the requirements outlined in KRS 65.210–65.300, which authorize local governments to cooperate in the exercise of governmental powers, including procurement.
These statutes establish the legal framework for:
- Joint governmental activities
- Shared services and purchasing
- Formal agreements between public agencies
Ensuring compliance with these statutes helps ensure the procurement process is legally valid and transparent.
Step 3: Determine the Lead Agency
The participating governments should designate one agency to serve as the lead agency for the procurement process.
The lead agency is typically responsible for:
- Preparing procurement specifications
- Advertising the solicitation
- Managing the bid or reverse auction process
- Receiving and opening bids
- Coordinating evaluation and award recommendations
Other participating agencies should clearly define their expected purchase quantities and delivery locations.
Step 4: Develop an Interlocal Cooperation Agreement
The participating agencies must enter into a written Interlocal Cooperation Agreement that outlines the terms of the joint procurement.
The agreement should generally address:
- Participating agencies
- Purpose of the agreement (joint salt procurement)
- Responsibilities of the lead agency
- Estimated purchasing quantities
- Cost allocation and payment responsibilities
- Procurement procedures to be followed
- Duration of the agreement
Each participating government must approve the agreement according to its local approval process, typically through the Fiscal Court or governing body.
Step 5: Submit Agreement to the Kentucky Department for Local Government
Under KRS 65.260, interlocal cooperation agreements must be submitted to the Kentucky Department for Local Government (DLG) for review.
DLG ensures that the agreement:
- Complies with statutory requirements
- Clearly defines the responsibilities of participating agencies
Once approved, the participating governments may proceed with the joint procurement.
Step 6: Conduct Procurement
After the agreement is approved, the lead agency should conduct the procurement using a competitive method such as sealed bidding.
The procurement should follow the same procedures outlined in the county’s standard procurement process, including:
- Public advertisement
- Receipt and opening of bids
- Bid evaluation
- Contract award
Each participating agency then purchases salt under the terms of the jointly awarded contract.
