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New AI Agreements Open for Local Governments in the U.S.

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30 July 2025

by Jonathan Andrews

In an exciting move for local governments and non-profit entities across the United States, new opportunities in artificial intelligence (AI) contracting have been unveiled through TXShare, the cooperative purchasing program of the North Central Texas Council of Governments (NCTCOG). The rise of AI has presented challenges and uncertainties for these organizations, but with TXShare’s innovative solutions, they can now access a curated marketplace designed to meet their specific needs.

The newly developed contracts, in collaboration with Civic Marketplace and the Alliance for Innovation, aim to streamline the procurement process. This means that agencies can take advantage of competitively awarded AI solutions and consultancy services without the cumbersome steps of issuing new Requests for Proposals (RFPs). Additionally, these contracts encourage the participation of small and local businesses, creating a more inclusive landscape in the AI service sector.

The TXShare initiative has seen a robust response, receiving 108 bids and ultimately awarding contracts to 77 suppliers. Among these, the AI Consultancy contract features 35 awardees, covering a range of essential services including strategy development, roadmap planning, feasibility studies, and training. Likewise, the AI Solutions contract boasts 42 awardees whose services span the deployment, integration, and ongoing support of AI technologies, with a notable focus on critical areas such as cybersecurity.

“In a procurement landscape increasingly saturated by cooperative contracts that seem to reward participation over discernment, the real breakthrough here isn’t just the scale – it’s the standard,” remarked Todd Little, Executive Director of NCTCOG. “Our AI contract catalogue is a rigorously curated marketplace of highly vetted suppliers. We are making it safe, efficient, and effective for your organization to be at the leading edge of citizen service using AI.”

Little emphasized that the intent behind these contracts is to alleviate procurement challenges that often accompany emerging technologies. By removing the need for separate RFPs and supplier vetting, the NCTCOG aims to facilitate smoother entry into the world of AI for local government agencies and non-profits.

Ron Holifield, Co‑Founder and President of Civic Marketplace, highlighted the initiative as a direct response to the increasing demand from agencies eager to harness AI but uncertain about how to embark on this journey. “These contracts enable agencies to take their first steps into the AI-powered future with confidence,” he stated, reiterating the importance of guidance and support for organizations in this transformative phase.

The reception from suppliers has been equally positive. Parth Shah, CEO of Polimorphic, shared that the partnership would not only streamline workflows but also enhance government communications. Mary Frances Coryell, Chief Revenue Officer of Citibot, echoed this sentiment, noting that the initiative is set to promote more responsive and transparent procurement practices.

Agencies looking to leverage these innovative resources can now find the available contracts through Civic Marketplace, marking a significant step toward integrating AI into their operations.

Image: Funtap P | Dreamstime.com

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