Contracts & Procurement
Federal grants that fund local technology, and what they require
Where technology funding comes from and the obligations attached when federal money pays for a local project.
Much of the money that pays for state and local technology originates with the federal government: cybersecurity grants, homeland security grants, transportation and transit funding, health and human services program funding, and broadband programs. Understanding the source explains many of the requirements attached to a project.
Common programs
- Cybersecurity grants administered through state agencies to improve local government security posture, with planning and reporting requirements.
- Homeland security and emergency management grants that fund interoperable communications, emergency operations technology, and planning.
- Transportation and transit formula and discretionary grants that fund systems such as fare collection, vehicle location, and traffic management.
- Health and human services program funding with federal cost sharing for eligibility, case management, and health information systems, often with federal review of large projects.
- Broadband and digital equity programs funding infrastructure and adoption.
Obligations that come with the funds
- Procurement standards. Federally funded purchases must follow federal procurement rules in addition to local ones, including competition requirements and prohibitions on certain vendors and equipment.
- Reporting. Progress and financial reporting on the grant's schedule.
- Allowable costs. Only costs the grant permits can be charged to it; cost allocation across programs must be documented.
- Records retention. Project records kept for the grant's required period.
- Vendor eligibility. Vendors generally must have a Unique Entity ID and not be suspended or debarred.
- Oversight. Large systems may require federal approval of planning documents and independent verification and validation.
Timing
Grant periods drive project timing. Funds must be obligated and spent within the period, which often sets the schedule for solicitation and delivery.
Planning the project
Confirm the funding source before drafting the solicitation so that the required clauses, vendor checks, and reporting deliverables are included from the start. Build grant reporting into the vendor's deliverables. Coordinate with the grants office on allowable costs before scoping.
For technology staff
Grant-funded projects are not harder, but they are less forgiving of missed steps. The grants office and purchasing are partners from day one.