Tools for State and Local Government Contractors to Navigate COVID-19 Purchasing

Posted by Nick Schiffler on April 29, 2020


The ongoing COVID-19 crisis has caused a dramatic shift in the United States, and state and local government agencies are taking dramatic measures to manage the crisis and prepare to rebuild in the aftermath. States, counties, cities, special districts and educational institutions are relying on contractors and working with them closely in order to respond to the ongoing COVID-19 crisis.  

GovWin is dedicated to providing the support that those contractors need to understand how to navigate the government response to the coronavirus. That’s why we recently released an on-demand webinar highlighting the implications for the state, local and education (SLED) market, related to the COVID-19 government response and recovery.


COVID-19 Implications for the State and Local Market

Watch the Webinar


In this blog we have summarized some key pieces of information that state and local government contractors can use to navigate the market, plus a sample of the latest research from GovWin’s SLED Market Analysis team.

Implications for State and Local Government Contractors

The federal government has been passing major bills to provide more than $2T in supplemental funding, in order to expand the scope of the governmental medical and economic response to COVID-19. Included in that funding are billions of dollars for state and local governments.

The majority of funding that state and local government agencies are receiving falls into the category of “Direct Relief,” meaning that the funding is specifically tied to the response to COVID-19 or to make up for the revenue shortfall that agencies are experiencing. Some of the other main categories of funding include that tied to the FEMA response in major disaster areas, education spending including distance learning, and transportation services like mass transit.

Federal aid directed to SLED government generally falls into three broad categories:

  • Costs related to the COVID-19 response: This includes medical response, personal protective equipment (PPE), National Guard deployment, logistics, telehealth, ventilators, vaccines, diagnostics, communications and medical supplies.
  • Continuation of business: Used to replace revenue shortfalls, support transition to telework and distance learning operations. (This funding can have strings attached.)
  • Supplemental support for social services: Includes child care, community development, housing and the Low Income Home Energy Assistance Program (LIHEAP). Some of this is targeted to emergency services for first responders and workers in essential industries.

The webinar goes into more detail explaining how the SLED procurement landscape has dramatically changed over the past several months, including detailing which states and regions are operating under major disaster declarations – and what that means for procurement. It also examines how SLED bid volumes are being impacted by the coronavirus, along with the rates of bid extensions and cancellations. And it shows how government contractors that operate in a variety of industries will be impacted differently, including public safety, social services, operations & maintenance (O&M), K-12 education, and architecture, engineering and construction (AEC).

More Research on the State and Local Coronavirus Response

The last several weeks have seen state and local agencies take hugely differing approaches to managing the current crisis, with heavily-impacted states like New York and New Jersey taking very different approaches to less-impacted states like South Carolina and Utah. Below are some key pieces of research and guidance from GovWin’s State and Local Market Analysts that can help make sense of this fragmented market.

Housing and Urban Development Grants $3B in Housing for State and Local Government: The CARES Act included more than $3B in overall funding to help low-income and vulnerable citizens by constructing medical facilities, expanding hospital capacity, and helping provide safe care and housing.

Implications for Architecture, Engineering and Construction: Contractors in the AEC industry can register for this on-demand webinar to understand the business development impact of COVID-19 policy, and learn about where in the market supplemental pandemic response funding is going.

Newsom’s Roadmap to Reopen California Marks Major Pivot for SLED Market: California Governor Gavin Newsom’s roadmap provides insight for contractors ready to pivot towards a more proactive purchasing model that will help SLED governments begin to rebuild.

With the impact of the coronavirus on the market at large not expected to diminish any time soon, GovWin is committed to providing insight for government contractors. And of course, our expert research team of more than 150 market analysts will continue to provide the most details on COVID-19 related government spending in GovWin’s Coronavirus Government Response Resource Center, where you can find the latest information and implications for contracting at all levels of government.

If you’re looking for more resources to help your business manage the government contracting market during the coronavirus outbreak, click below to learn more about how GovWin can offer valuable research and tools that will empower businesses to aid state and local government agencies in managing this crisis.