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Tariffs, Delays, and Rising Costs A Procurement Crossroads for Local Government

Tariffs, Delays, and Rising Costs A Procurement Crossroads for Local Government
Tariffs, Delays, and Rising Costs A Procurement Crossroads for Local Government

As tariffs and supply chain issues disrupt local budgets, the Alliance for Innovation urges procurement leaders to act strategically, not reactively. Learn how AFI’s new multi-vendor cooperative contracts and partnership with Civic Marketplace help agencies reduce risk, avoid delays, and deliver critical services on time and on budget.

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Right now, every good CFO in local government is having the same conversation.

They’re talking to their organizational leadership about sales tax projections, budget adjustments, and whether it’s smart to delay purchases until they see where the tariff winds blow. It’s a reasonable response, but paralysis would be a dangerous course of inaction if it leaves communities without the tools and services they need to operate.

That’s why strategic procurement matters more than ever. And it’s why I believe this moment isn’t just a challenge; it’s an opportunity to lead smarter and more wisely than ever.

We’re Not in a Normal Buying Environment

When tariffs go up, so do prices, especially for goods cities rely on: vehicles, infrastructure materials, HVAC, and even basic IT. Multiply that by supply chain delays, and local governments are left asking: Do we wait, or do we pay more now?

One agency in Arkansas recently told us that they’re expecting a surge in March sales tax for the moment because people have been stocking up, but after that, they’re preparing to tighten up. Agencies like theirs aren’t alone. Across the country, leaders are considering delaying capital purchases, deferred equipment replacements, and stalled service expansions. And behind every one of those delays is a procurement team trying to solve an impossible equation with their current toolset.

The Procurement Trap: Single Supplier = Single Point of Failure

Most traditional bids award a contract to one supplier. That works fine, until it doesn’t. If that supplier gets hit with tariff-related cost increases or can’t deliver due to backlogs, you’re stuck. Restarting the procurement process takes weeks, sometimes months. In the meantime, projects stall and residents feel the impact.

That’s one reason why AFI has launched a linkage to a new purchasing cooperative, awarding multiple-vendor contracts and partnering with Civic Marketplace, the industry's leading technology platform for dramatically simplifying and speeding up the procurement process. It’s not just a feature of AFI membership - it’s a resilience strategy for local government buying.

When agencies have access to multiple pre-vetted, competitively awarded suppliers for the same goods or services, they’re not locked in. If one hits a pricing wall, you pivot. If another faces a shipping delay, you choose differently. No red tape. No sole-source panic. No disruption to your residents.

That’s not just smart government; it’s leadership in action.

Procurement Is the New Strategy Department

If you’ve worked with me and know my local government and public safety expertise, you know where I stand on this: procurement shouldn’t be sidelined. It should be center stage.

Right now, procurement officers have an extraordinary opportunity to lead their organizations through uncertainty. That starts with modeling where tariff impacts are likely to hit. It continues by identifying which purchases can’t be delayed. And it’s solidified by using tools like Civic Marketplace’s cooperative contracts to reduce complexity and build in flexibility.

This isn’t about chasing the lowest price. It’s about getting the right result at the right time for the people we all serve.

When agencies use AFI’s cooperative contracts, the hard work is already done:

Legal compliance

Competitive solicitation

Transparent pricing

Multiple supplier options ready to go

Don’t Wait for the Crisis to Pass

Waiting feels safe. But in government, delays often turn into backlogs. Budgets get cut. Projects miss their windows. And we end up reacting instead of leading.

Let me say this plainly: if you’re facing uncertainty, this is your moment to act, not to wait.

AFI’s cooperative program is live, and cooperative contracts in numerous essential categories are available through Civic Marketplace’s AI-driven platform. You can view them here, and once you’re part of the network, you can move forward with purchases immediately. Joining is free, and our team will walk you through every step.

No pressure, no pitch. Just partnership.

Let’s keep our teams moving. Let’s deliver the products and services our communities need on time and on budget. Because in the end, great procurement isn’t about paperwork or process. It’s about protecting taxpayer dollars and delivering better outcomes for your community.

About the Alliance for Innovation

The Alliance for Innovation (AFI) is a nationwide, nonprofit network of forward-thinking local governments committed to transforming the way local governments work. Through thought leadership, peer learning, and partnerships, AFI empowers public sector leaders to drive innovation, improve outcomes, and build a stronger future for residents. In partnership with Civic Marketplace, AFI is leading a new era of public procurement, offering multi-vendor cooperative contracts and simplified purchasing tools that help agencies save time, stretch dollars, and reduce risk. Together, we’re equipping procurement professionals to lead with confidence and deliver results that matter. Learn more here.

Tariffs, Delays, and Rising Costs A Procurement Crossroads for Local Government