The federal contracting community has gotten used to seeing major upticks in contract outlays in the last couple months of the fiscal year.
But for the Department of the Navy, April’s numbers rivaled those figures: Contract obligations this month are already up 30% compared to the same period a year ago, and almost double the figures from April 2018.
To be sure, the coronavirus pandemic was a big factor in the increase in dollars-on-contract. Like most other parts of the government, the Navy and Marine Corps are spending a lot to respond to the pandemic itself and to keep vulnerable parts of their supply chains afloat.
But that’s not the whole story, said James Geurts, the assistant secretary of the Navy for research, development and acquisition. The Navy Department’s ability to get cash out the door more quickly is also the result of reform efforts that have been underway for the last two-and-a-half years and emergency planning that predated the COVID crisis.
“I’m seeing some remarkable efficiencies,” he told reporters on a conference call Tuesday. “I think a lot of that is getting rid of layers of bureaucracy that weren’t needed. Some of it is also creating better partnerships with industry so that we can leverage cost and pricing data we already have, and we don’t have to send out an RFP and get a proposal back just to confirm that data. And some of it is just a continued sense of urgency and mission focus.”
Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/04/navy-contract-spending-jumps-30-in-april-amid-covid-pandemic/
The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized. Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/
