Blog | July 03, 2024
Blog: Don't leave money on the table
Looming ARPA deadlines underscore need for good procurement practices. TAC has resources.
LegalEase Continuing Education course library in 2025. The team recently filmed segments of the training
in TAC's Law Library. Pictured in the foreground are Legal Services Operations Manager Jamie Chandler,
Video Production Services Manager Louis Le Jeune, Paralegal Abbie Jamison. In the background are
Associates General Counsel Katherine Howard and John Redington. (Credit: Texas Association of Counties)
Counties have until Dec. 31 to obligate the $5.6 billion in American Rescue Plan Act (ARPA) funding Texas counties received – or risk losing any dollars leftover.
Entities must write a check to the U.S. Treasury to return funds not obligated by the deadline. With so much money on the line, it's a good time to highlight county procurement. The Texas Association of Counties published a new legal handbook on procurement in late 2023 that provides guidance on navigating the County Purchasing Act (Chapter 262, Subchapter C of the Local Government Code).
"County purchasing is its own animal, unique even among other local public entities," said Guadalupe County Auditor Kristen Klein. Klein serves on the TAC Board of Directors.
County procurement resource
TAC's Procurement Handbook, like everything TAC does, is specifically tailored to county officials and staff. The publication covers various aspects of competitive bidding, notice provisions, contracts, cooperative purchasing, conflicts of interest, emergency purchasing, special funds and more. It also includes sample forms to help with documentation and a section of best practices.
The publication cites relevant statutes, Texas Attorney General Opinions and case law, too.
Interest from counties prompted the TAC Legal Services group to create the handbook. "We receive many calls related to county procurement on the TAC Legal Helpline from county officials," said Associate General Counsel Katherine Howard.
Howard and Associate General Counsel John Redington are developing an online course on county procurement—part of the LegalEase Continuing Education series—that will be offered for continuing education credit for officials in 2025.
"Counties need these resources," Klein said. "Making purchasing missteps can blow up much later—years, even—and damage the county's reputation or cost the county more money."
ARPA procurement deadlines and guidance
TAC's resident ARPA expert, Judicial Resource Liaison and County Relations Officer Tramer Woytek, says a common misconception has been that county purchasing rules don't apply to the federal grant program. "ARPA's rules don't override Texas' purchasing requirements, or any other federal rules," he said.
He encourages counties to be diligent in wrapping up their documentation for ARPA by Dec. 31, which includes evaluating whether the projects can be reasonably completed by 2026—another ARPA requirement. "There's still time to pare back a project now and meet the 2024 deadline to obligate the funds. Changing the project later will be much harder," Woytek said.
Beyond ARPA, Klein suggests smaller counties could benefit from hiring a third-party grant administrator for any grants they receive with complex requirements.
Her best advice? Take the time to understand the rules and allow plenty of time for the procurement process. "Nothing goes fast in procurement if you're doing it right," she said.