President Donald Trump will reportedly be signing a disaster or emergency declaration under the Stafford Act today in response to the Coronavirus, or COVID-19. With universities closing, the N.B.A. suspending its season, and flights being cancelled left and right, the Coronavirus outbreak is no laughing matter. However, the outbreak should be confronted with facts and figures rather than hysteria. With regards to your government contract, the world will continue to turn. The General Services Administration is designed to continue to function in times of national emergency or disaster. GSA's Disaster Purchasing Program allows federal, state, and local governments to buy services and supplies directly from GSA Schedules to assist with disaster preparation, response, or major disaster recovery. Purchases made in support of recovery must be in response to a Stafford Act Presidential declaration, like the one President Trump is likely to announce this afternoon. So let’s break down how the GSA Schedule Program can help in a national emergency or disaster.
The disaster relief section is designed to quickly connect federal, state, and local governments to products and services typically needed for preparation, response, and recovery from disasters. Ensuring fair and reasonable pricing through the GSA Schedule programs makes purchasing in times of great stress and pressure much easier for state and local governments.
It’s important to note that the Disaster Recovery Purchasing authority is limited to GSA Schedule contracts and does NOT include other GSA programs. A list of GSA Vendors who have elected to sell to State and Local Governments can be found here.
Typical Services under Disaster Relief include, but are certainly not limited to, the following:
Typical Supplies under Disaster Relief include, but are not limited to, the following:
On the government side, state and local governments can purchase equipment and services to help fight against natural or man-made disasters, such as the coronavirus.
On the contractor side, all GSA Contract holders may participate in the Disaster Recovery Program. Most vendors choose to participate, but some opt-out because they understand the strength of disaster purchasing in the state and local markets. Other contractors opt out due to their products/services not being applicable during times of national disasters or emergencies.
It is also important to note that just because a Schedule contractor may have indicated that they would like to participate in the Disaster Purchasing Program, the contractor still has the right to decline orders received from a state or local government on a case-by-case basis. Orders can be declined for any reason within a five-day period after receipt of order, unless the order is made by credit card; these orders need to be declined within 24 hours. All orders accepted are subject to the same prices extended to GSA, including the Industrial Funding Fee. GSA will always accept additional discounts, but orders from State and Local Disaster Purchasing Program customers should not be considered separate from other GSA orders in terms of pricing. The IFF is still required under purchases made by state and local government entities, as it reimburses GSA for administrative and procurement costs.
While most of the rules under the Disaster Purchasing Program are similar to those that apply to purchases made by federal government entities, it is always a good idea to contact your Contracting Officer with any questions before entering into an agreement with a state or local government entity under the program.
As a result of the Federal government streamlining the process of disaster/recovery spending, we will see some great benefits, both to the taxpayer and victims of Coronavirus. Simplified contracting methods will cut the red tape and allow vital goods and services be delivered quickly where they are needed. For more questions regarding the Disaster Purchasing Program, contact the Winvale team today and review our new Coronavirus Resource Center for government contractors.