What is a cost share agreement?

A cost share agreement is a pivotal document that outlines the financial responsibilities and contributions of different agencies involved in managing an incident. This agreement specifically details how costs will be distributed among the participating agencies during an emergency response or a joint operation, ensuring that all parties understand their obligations and can plan their budgets accordingly.

Such agreements are crucial in interagency collaboration, particularly in wildland firefighting or other large-scale incident responses, where multiple organizations may contribute personnel, equipment, and resources. Clarity in financial arrangements helps to streamline the reimbursement process and reduce disputes later on regarding expenses incurred during the incident.

In contrast, agreements for sharing equipment, contracts for purchasing supplies, and invoices for services rendered serve different purposes in the context of interagency interactions and do not encapsulate the essence of cost sharing, which is strictly financial in nature and focused on the equitable management of shared expenses.