CARES Act | The Contracting Education Academy

July 8, 2020 By cs

Federal contract spending reaches its highest level ever in fiscal 2019, marking 4 straight years of growth

Spending is expected to increase even more for fiscal 2020, exceeding $600 billion even before coronavirus stimulus funding is included.

**Click on image above to download report.**

Federal contract spending grew for the fourth year in a row to reach $597 billion in fiscal 2019, its highest level yet and a 6% increase over the previous year, according to newly released data. Spending is expected to exceed $600 billion in fiscal 2020, without even including spending on economic stimulus funds in the wake of the novel coronavirus pandemic.

The data, compiled by Bloomberg Government, encompasses prime and unclassified contract spending. Bloomberg released the findings in the ninth annual BGOV200 report, which ranks the top 200 federal contractors. The report analyzes market trends, contractors’ performance and other dynamics among 92 federal agencies in 20 purchasing categories during fiscal 2019.

The agencies with the biggest gains in contract spending in fiscal 2019 included: the Housing and Urban Development, Commerce and Defense departments, and the General Services Administration. Some of the top markets were: facilities and construction; professional services; information technology and aircrafts, ships/submarines and land vehicles.

The 200 companies won the same share of total contracts as in 2018 and 2017, which was 64%. The top six companies — all in the defense industry — were: Lockheed Martin Corp., Boeing Co., General Dynamics Corp., Raytheon Co., Northrop Grumman Corp. and United Technologies Corp. This was the same as last year, except McKesson Corp. was number six in 2018 and this year it ranked seventh. In 2019, 37 companies entered the top 200 for the first time.

Keep reading this article at: https://www.govexec.com/management/2020/06/federal-contract-spending-reaches-its-highest-level-ever-fiscal-2019-marking-4-straight-years-growth/166484/

June 30, 2020 By cs

Pentagon requesting ‘lower double digit billions’ to support COVID-hit defense contractors

The U.S. Department of Defense’s chief purchasing officer said the Pentagon has filed a budget request in the “lower double-digit billions” to support defense contractors disrupted by the coronavirus pandemic.

Ellen Lord, the Under Secretary of Defense for Acquisition and Sustainment, said the Pentagon submitted the multibillion-dollar request to the White House Office of Management and Budget in order to sustain the hiring and workforce levels of key defense contractors.

When asked during a press conference to provide a more precise estimate of the “lower double-digit billions” Lord did not provide further specifics.

The funding request, made under Section 3610 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, authorizes the federal government to reimburse Federal contractors for paid leave where they have been sickened by the coronavirus, or where conditions have required healthy workers to stay home.

Keep reading this article at: https://americanmilitarynews.com/2020/06/pentagon-requesting-lower-double-digit-billions-to-support-covid-hit-defense-contractors/

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/

June 25, 2020 By cs

Pentagon IG offers advice for effective contracting during pandemic

With billions of dollars in CARES Act funding yet to be spent and several billion more potentially in the appropriations pipeline, it’s far too early to tell how effectively the Defense Department is spending its share of the disaster funding.

**Click on image above to download the report.**

But according to the Pentagon’s inspector general, DoD — and its auditors — have more than enough experience with prior emergencies to know what to do, and what not to do, to make sure money is spent well even when contracts have to be executed quickly.

In a new special report, drawing on 36 earlier audits that dealt with contracting during previous emergencies, the OIG tries to outline what it considers best practices for contracting under time pressure.

“It is a very fast paced, ever changing environment right now with this pandemic. But what contracting officers are experiencing right now is similar to pressures that were present during past disaster response and relief efforts. So our intent here was to highlight best practices and lessons learned that really span a significant portion of time,” Theresa Hull, the assistant inspector general for audit acquisition, contracting, and sustainment said in an interview for Federal News Network’s On DoD. “Our reports go back to Hurricane Katrina in 2005 but also include the more recent hurricanes, Florence and Irma, and we highlighted four areas that the contracting community should be aware of: Communication and coordination; documentation, consistency in the contracting process, and staffing and training.”

Keep reading this article at: https://federalnewsnetwork.com/on-dod/2020/06/pentagon-ig-offers-advice-for-effective-contracting-during-pandemic/

June 24, 2020 By cs

Pentagon starts bailing out companies that have lost business due to coronavirus

The Pentagon has begun to bail out U.S. companies that have seen large parts of their business dry up amid the coronavirus pandemic, in a bid to make sure they can still build weapons.

Officials have announced that five mid-tier defense companies had received a total of $135 million to “help sustain defense-critical workforce capabilities in body armor, aircraft manufacturing, and shipbuilding,” according to a Defense Department statement. “These actions will help to retain critical workforce capabilities throughout the disruption caused by COVID-19 and to restore some jobs lost because of the pandemic,” Lt. Col. Mike Andrews, a Defense Department spokesman, said in the statement.

Meanwhile, a senior Pentagon official told lawmakers that DoD plans to ask Congress for money to reimburse many of its contractors for COVID-related expenditures; for example, wages paid to keep employees on the payroll despite idled production lines and vacated offices; purchases of personal protective gear, and alterations to factory and other work spaces for social distancing.

These moves will buttress earlier Pentagon efforts to shore up its COVID-rattled contractors, including paying firms more money up front and awarding multibillion-dollar contracts earlier than planned.

Keep reading this article at: https://www.defenseone.com/business/2020/06/pentagon-starts-bailing-out-companies-have-lost-business-due-coronavirus/166106/

June 17, 2020 By cs

Pentagon says it needs billions to repay contractors for employee leave

The Coronavirus Aid, Relief, and Economic Security (CARES) Act gave the Defense Department the authority to reimburse federal contractors who faced sudden expenses because of COVID-19.

But the bill didn’t include any new funding to make those payments, and DoD officials are telling Congress they need billions of additional dollars to make contractors whole.

One section of the law — Section 3610 — lets agencies repay contractors who put their employees on paid leave rather than furloughing or laying them off. The idea was to keep as much of the industrial base workforce as possible in a ready state.

But those reimbursements are “subject to the availability of appropriations,” which aren’t expected to come through until Congress passes the next round of coronavirus relief. DoD officials have submitted a rough cost estimate to the Office of Management and Budget (OMB).

But in testimony before the House Armed Services Committee (HASC), Ellen Lord, the undersecretary of Defense for acquisition and sustainment, declined to provide an exact figure, saying only that it’s likely to be in the double-digit billion dollar range. In any event, the bill is expected to be so large that DoD can’t pay it out of its existing budget without affecting other programs, she said.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/06/pentagon-says-it-needs-billions-to-repay-contractors-for-employee-leave/

Spending is expected to increase even more for fiscal 2020, exceeding $600 billion even before coronavirus stimulus funding is included.

The U.S. Department of Defense’s chief purchasing officer said the Pentagon has filed a budget request in the “lower double-digit billions” to support defense contractors disrupted by the coronavirus pandemic.

With billions of dollars in CARES Act funding yet to be spent and several billion more potentially in the appropriations pipeline, it’s far too early to tell how effectively the Defense Department is spending its share of the disaster funding.

The Pentagon has begun to bail out U.S. companies that have seen large parts of their business dry up amid the coronavirus pandemic, in a bid to make sure they can still build weapons.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act gave the Defense Department the authority to reimburse federal contractors who faced sudden expenses because of COVID-19.

Search this Website