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Board orders ARPA contract audit and tighter procurement rules after contract concerns

Orange County Board of Supervisors · September 24, 2024
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Summary

Supervisors directed an internal audit of ARPA-funded contracts within 90 days, instructed the CEO and procurement office to create stronger review policies for board-directed discretionary contracts, and approved revisions to the contract policy manual to increase oversight and training.

On Sept. 24 the Orange County Board of Supervisors approved a package of measures designed to tighten oversight of American Rescue Plan Act-funded contracts and county discretionary procurements.

The board directed the internal auditor to complete a risk assessment of ARPA-funded contracts within 90 days and asked the interim CEO to draft a policy requiring the County Procurement Office to review and return board-directed discretionary contracts for approval. Supervisors also ordered a countywide review of contracts to identify familial relationships that would require disclosure or abstention and asked for quarterly reporting of contract-compliance issues.

Why it matters: Those directives were paired with a separate update adopting a revised contract policy manual. Supervisors said the steps respond to identified weaknesses in the county's contract and grant processes and aim to prevent the kinds of problems cited in recent investigations and public reporting.

Supervisor Katrina Foley framed the package as a practical set of guardrails: "This item has essentially four parts" including the internal-audit directive, procurement review policy, familial-relationship review and quarterly reporting. Staff clarified that the term "contract disputes" in an earlier draft would be replaced with "contract compliance issues" for clarity.

The board also heard a letter read into the record from Congressman Lou Correa supporting the supplemental reforms and urging careful stewardship of ARPA federal funds. A county procurement official outlined recent improvements to compliance, training and vendor outreach intended to make early implementation feasible and to prepare staff for January statutory changes.

Outcome: The motions carried unanimously. County staff said they will work to implement early where possible and return quarterly compliance updates to the board.