P.R. Laws tit. 21, § 4652
The municipality may contract with any agency of the central or federal governments to undertake, through its own administration or under contract, any study, job or public works or improvements of any public agency of the central or federal government, or for the agencies of the central or municipal government to develop or carry out any study, job or municipal public work or improvement for the municipality. It may also execute contracts with those agencies and with any other municipality for the development, administration and operation, of facilities to provide services to the citizenry, jointly, or in coordination or by delegation.
In addition, any municipality may contract with other municipalities to jointly perform any study, work or activity and develop any project, program or public work or improvement, or fulfill any duty or activity authorized by law, or jointly acquire services, advice, property or supplies, or provide each other with any other common services.
All contracts executed in accordance with this section must comply with the following:
(a) Be approved by means of a resolution to such effects by the legislature of each municipality that is a party to the contract. Contracts with public agencies shall be approved by the chief executive or highest ranking official thereof, subject to the applicable provisions of law. Contracts that imply a commitment or obligation to transfer to the municipality, or invest a larger amount than what was approved in the agency’s budget to carry out or perform the activity contracted for, shall require the approval of the Governor of Puerto Rico.
(b) Determine the cost of the contracted activity; the source of the funds to defray it, which may be totally or partially by municipal, central or federal government funds, and the form conditions or terms to transfer the funds to the agency or municipality, as the case maybe.
(c) Specify the human resources needed to carry out the execution or performance of the activity. Both the municipal government as well as the agencies may assign or transfer, on a temporary or permanent basis, the personnel needed to fulfill the terms of the contract, subject to the applicable legal provisions regarding personnel administration, and without prejudice of their vested rights at the time of the transfer, nor the fringe benefits to which they are entitled by virtue of any applicable law, ordinance, rule or regulations.
(d) Provide for the property, equipment or other material, if any, that is to be transferred on a temporary or permanent basis to the municipality or agency contracted to carry out or execute the activity subject to the contract, and the restrictions and rules for its custody, maintenance, use and disposal.
(e) Establish the general conditions to which the activity to be carried out by virtue of the contract will be subject, the contributions of each of the parties and the effective term of the contract.
(f) Determine the control and degree of supervision and monitoring of the activity that will be retained by the contracting agency or municipality, including the power to evaluate, supervise, examine and audit the way in which the contracting municipality or agency is performing the contract.
The contracting agency or municipality, as the case may be, may request information at any time about the undertaking, work or service under contract and make the necessary recommendations to correct any deficiencies that are found.
History —Aug. 30, 1991, No. 81, § 14.002.