An owner-side guide

Using another entity's job order contract in Texas: what the statutes say

A neighboring city, a county, a school district, or a purchasing cooperative may already have a job order contract in place and offer to let other entities order from it. Before your team treats that as a shortcut, your own procurement process has to answer one question: does your entity have the authority to use that contract for the work you have in mind?

Updated October 2026

General information only. Not legal or procurement advice. Check your own procurement rules, statutes, and contract documents.

This page walks through the Texas statutes that bear on that question, what each one actually says, and the questions to settle before you issue an order. It does not answer the question for your entity. That depends on your governing body, your contract documents, and your counsel.

Start with the JOC statute: Government Code 2269.407

The Texas job order contracting statute has one section on this exact topic. Section 2269.407 says a job order contract "may be used to accomplish work only for the governmental entity that awards the contract unless: (1) the solicitation for the job order contract and the contract specifically provide for use by other persons; or (2) the governmental entity enters into an interlocal agreement that provides otherwise."

So the default is that a JOC serves only the entity that awarded it. There are two ways around that default, and both are documents you can ask to see:

The solicitation and the contract. The statute says both have to specifically provide for use by other persons, so on this path, outside-use language in only one of the two documents does not meet the text.
An interlocal agreement. The awarding entity can enter an interlocal agreement that provides otherwise.

Before anything else, get copies of the original solicitation and the awarded contract and find the language that allows other entities to use it.

Interlocal contracts: Government Code Chapter 791

If the path is an interlocal agreement, Chapter 791 (the Interlocal Cooperation Act) sets the ground rules. Under section 791.011, an interlocal contract must:

be authorized by the governing body of each party (a municipally owned electric utility may set its own procedures for interlocal contracts up to $100,000);
state the purpose, terms, rights, and duties of the parties; and
specify that each paying party makes its payments from current revenues available to it.

Payments must fairly compensate the performing party for the services or functions it performs. An interlocal contract may be renewed and may have a specified term of years.

In practice, that means your governing body acts on the interlocal agreement itself. Plan board or council time into the schedule.

Two limits that matter for construction

Section 791.011 has two provisions that apply when a purchasing cooperative is involved. The statute defines a "purchasing cooperative" as "a group purchasing organization that governmental entities join as members and the managing entity of which receives fees from members or vendors."

No design services. Under 791.011(h), an interlocal contract between a governmental entity and a purchasing cooperative "may not be used to purchase engineering or architectural services."
The $50,000 certification. Under 791.011(j), a local government may not contract to purchase construction-related goods or services through a purchasing cooperative under Chapter 791 for more than $50,000 unless a person the local government designates certifies in writing that either (1) the project does not require plans and specifications under Occupations Code Chapter 1001 or 1051, or (2) the plans and specifications those chapters require have been prepared.

Occupations Code Chapter 1001 is the Texas Engineering Practice Act, and Chapter 1051 governs the practice of architecture. So for an order over $50,000 on a project that needs those plans and specifications, the written certification has to say they have been prepared.

The bid-satisfaction language, and what it does not say

Two statutes say that buying through them satisfies competitive bid requirements:

Government Code 791.025. A local government may agree with another local government or the state to purchase goods and services, and subsection (b) covers "goods and any services reasonably required for the installation, operation, or maintenance of the goods." Subsection (c) says a local government that purchases goods and services under the section "satisfies the requirement of the local government to seek competitive bids for the purchase of the goods and services."
Local Government Code 271.102. A local government may participate in a cooperative purchasing program with another local government or a local cooperative organization, in Texas or another state. Subsection (c) says a local government that purchases goods or services under the subchapter "satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services."

Neither section mentions job order contracts or Chapter 2269, and we did not find a Texas Attorney General opinion that squarely addresses using either one to buy construction through a JOC. Do not assume either section settles the question for a construction order. Ask your counsel how it applies to the work you plan to order.

If you agree to a cooperative program under 271.102, the agreement can say that your entity will designate a person to act for it in all matters relating to the program, how payments are made (to another participating government, to the cooperative, or directly to the vendor), and that your entity is responsible for the vendor's compliance on quality and delivery terms to the extent the agreement provides.

A note for school districts

The Education Code has its own purchasing rules. Section 44.031(a) says school district contracts for goods and services valued at $100,000 or more in the aggregate for each 12-month period must use the method that provides the best value for the district. Two of the listed methods are "an interlocal contract" and "a method provided by Chapter 2269, Government Code, for construction services."

Section 44.0331 adds a reporting duty. A district that enters a purchasing contract valued at $25,000 or more under Section 44.031(a)(5), under Local Government Code Chapter 271 Subchapter F, or under any other cooperative purchasing program authorized for school districts by law must document each contract-related fee, including a management fee, and its purpose. The amount, purpose, and disposition of those fees go in a written report presented annually in an open board meeting as an agenda item, and the commissioner may audit that report.

If your district plans to order JOC work through a cooperative, set up fee tracking from the first order so the annual report is easy.

Questions to settle before you issue an order

Do the original solicitation and the awarded contract both specifically provide for use by other entities? Where is that language?
If you are relying on an interlocal agreement, has your governing body authorized it, and does it state purpose, terms, rights, duties, and payment from current revenues?
Is a purchasing cooperative involved? If so, does any part of the work include engineering or architectural services, and does any order over $50,000 need the written plans and specifications certification?
Has your counsel confirmed how 791.025, 271.102, or (for a school district) 44.031 applies to construction ordered under this JOC?
Who on your side is the designated person for the program, and who reviews each job order's scope and price before it is approved?
For a school district, who documents fees for the annual 44.0331 report?

Once authority is settled, the work itself runs the same way as on your own JOC. How a JOC program works covers the owner-side pieces, Setting up a JOC program covers what to have in place, and the JOC readiness checklist helps you check whether your team is ready to issue orders.

This page is general information about Texas statutes, not legal advice. Check the current statute and your counsel before relying on another entity's contract. Last checked against the statute text on October 18, 2026.