Shared Services Agreements - New Orleans Law
Shared services agreements let New Orleans, Louisiana agencies and municipal entities share staff, equipment, and programs to reduce costs and coordinate services. This guide explains how shared services or cooperative agreements are typically processed in New Orleans, who enforces compliance, common issues to watch for, and practical steps to prepare, approve, and manage an agreement. It focuses on municipal procedures, required approvals, and where to find official documents and contacts so local officials, nonprofit partners, and contractors can act consistently with city practice.
Scope and Legal Basis
Shared services commonly rely on Cooperative Endeavor Agreements or intergovernmental contracts approved by the Mayor and City Council or by the department with delegated authority. The City of New Orleans central contracts and procurement office provides templates and routing for city agreements; review of the official procurement page is recommended City Contracts & Procurement[1].
Key Elements of a Shared Services Agreement
- Parties and authority - identify each municipal entity and citation of enabling ordinance or charter power.
- Scope of shared services - tasks, staff, equipment, locations, and duration.
- Funding and cost allocation - payment schedules, invoicing, and fiscal controls.
- Performance standards and reporting - metrics, records, and audits.
- Liability, indemnity, and insurance requirements.
- Approval and execution - signature authorities, Council review, and filing.
Penalties & Enforcement
Specific monetary fines and penalty schedules for breaches of shared services agreements are not generally set out on the central contracts page; financial penalties, if any, are typically contract-specific or based on governing ordinance or state law and must be read in the executed agreement or the controlling ordinance. The official procurement page does not list standard fine amounts or escalation tables for shared services breaches, so those specifics are not specified on the cited page.[1]
- Fines and monetary penalties: not specified on the cited page; contract terms or ordinance controls may set amounts.
- Escalation: first, repeat, or continuing offence treatment is contract-dependent and not specified on the cited page.
- Non-monetary sanctions: typical remedies include written notices, cure periods, suspension of services, termination, and recovery actions; specific availability depends on the agreement language.
- Enforcer and complaints: Department of Finance - Contracts & Procurement handles contract administration and routing; departmental managers and the City Council may also receive complaints and enforce remedies. [1]
- Appeals and review: procedures and time limits for appeals or administrative review are not standardized on the cited procurement page and are found in the specific agreement or governing ordinance.
- Defences and discretion: common contractual defenses include force majeure, compliance with municipal approvals, and authorized variances; permitting or prior Council authorization can be a defense to enforcement claims.
Applications & Forms
The city maintains contract routing, templates, and signature authority processes through the Finance Department; no universal shared-services form is published on the central procurement page, and specific templates or exhibit schedules are included with each agreement or ordinance as applicable. For forms and routing instructions, contact Contracts & Procurement directly via the official page.[1]
Negotiation and Approval Steps
- Identify legal authority for sharing services and confirm budget availability.
- Draft agreement with clear scope, costs, performance metrics, and termination clauses.
- Route draft for departmental, finance, and legal review; obtain required signatures and Council approval if required.
- Execute and record the agreement; implement invoicing and reporting routines.
Common Violations
- Failure to secure required approvals or Council authorization before performance.
- Poor recordkeeping or failure to produce required performance reports.
- Missed payments or disputed cost allocations.
FAQ
- Who must approve a shared services agreement?
- Approval depends on the delegated authority and the agreement value; some require Mayor and City Council approval while smaller interdepartmental agreements may be approved through departmental signature authorities.
- Are there standard templates for shared services?
- The Finance Department provides contract templates and routing guidance; specific exhibits for services and costs are usually attached to each agreement.[1]
- How do I report a suspected contract breach?
- Report contract compliance concerns to the responsible department and Contracts & Procurement; serious allegations may be directed to the City Attorney or Inspector General as appropriate.
How-To
- Confirm legal authority and budget for the shared service.
- Prepare a written agreement with scope, costs, performance metrics, and termination terms.
- Route the draft to department finance, Contracts & Procurement, and legal counsel for review.
- Obtain required signatures and, if necessary, City Council approval before starting services.
- Implement reporting, invoicing, and recordkeeping as required by the agreement.
Key Takeaways
- Shared services require clear authority, defined cost-sharing, and documented performance measures.
- Contracts & Procurement is the central routing office for city agreements and templates.
- Enforcement and penalties are contract-specific and may not be standardized on the central procurement page.
Help and Support / Resources
- City of New Orleans - Contracts & Procurement
- City Code of Ordinances - Municode Library
- Department of Safety and Permits - City of New Orleans