Contracting Trends Driven by the Government’s COVID-19 Response

Posted by Chris Dixon on June 23, 2020

Government COVID-19 Response Contracting Trends

GovWin's state, local and education (SLED) reports are designed to highlight long-term trends that are impacting the SLED contracting market, and provide contractors with data to inform their business development plans. Due to the unforeseen and significant impacts of COVID-19 on state, local and education government, we have compiled this special analysis, featured in this year’s 10 Hotspots in State & Local Government Contracting for 2020 report, to highlight some of the emerging and temporary hot areas driven by the COVID-19 pandemic.


10 Hotspots in SLED Contracting for 2020

Get the Report


Immediate COVID-19 Response Demand

In the initial weeks of the COVID-19 crisis, SLED governments utilized existing contracts and cooperative purchasing options to quickly buy high-demand items such as cleaning supplies and medical equipment. However, these shifts in demand could also be seen in formal bids. Out of the 12 defined major industry categories, Public Safety and Operations & Maintenance were the top two ranked for growth in Q1 2020, and had previously averaged 7th-8th. On a year-over-year basis, bids in the month of March rose for “respiratory equipment” (up 68%), “disposable gloves” (up 85%) and “disinfectants and sanitizers” (up over 300%).

Longer-Term Pandemic Management Demand

As buyers move into this new, indeterminate phase of pandemic management, the following areas will see growth in demand over the coming months.

  1. Testing, contact tracing, isolating, etc. In recent years, states and localities have focused on acquiring information systems and expertise oriented to various aspects of public health, including all-payer claims databases (APCD), primarily in an effort to contain Medicaid costs and overuse of public safety net hospitals. Recent opioid interdiction efforts, such as New Jersey’s data dashboard, could be combined with pandemic tracking to create better biosurveillance solutions at all levels of government.
  2. Infection prevention for at-risk populations. States will need to focus on infection prevention tracking and solutions to protect the most vulnerable populations (i.e. the elderly and immunocompromised). Our nation is unlikely to implement hard tracking systems as in other countries. This can’t be seen as a form of pandemic house arrest. Therefore, the end solution will need to involve geolocation and coordination of delivery of health care and social services with privacy protection.
  3. Building healthcare capacity to handle surges. Many governments and hospitals have inventory resource management systems. However, COVID-19 will require cross-agency integration to track statewide caches and materials to provide broad situational awareness and strategic just-in-time allocation to outbreak hot spots.
  4. Developing therapeutics. Many university labs along with other R&D institutes are engaged in commercial research. Over time, increased national and global collaboration, in the form of public-interest research marketplaces, will be vital to harnessing the capacity of these labs for pandemic management.
  5. Supporting physical distancing in public facilities. Health checking will be required upon entry to public facilities. Additional space—including temporary annexes— will be required to accommodate social distancing. Blended environments will be needed, combining on-premises activities with distance learning, telehealth and remote work for students, citizens and employees in isolation. Also, routine disinfecting will be a necessity. Enhanced decontamination protocols will be necessary to support public transit systems and gain the confidence of a reluctant ridership.
  6. Determining when to reinstitute “stay-at-home,” etc. Many states and localities have been engaged in all-hazards preparedness, with particular emphasis on acts of terrorism. Pandemic intelligence will be added to fusion center portfolios in order to monitor and precisely respond to events as they develop.

For more information and ongoing analysis from GovWin’s expert team of federal, state, local and education market analysts, visit the Coronavirus Government Response Resource Center

To download your free copy of this year’s 10 Hotspots in State & Local Government Contracting for 2020 report, simply click the link below.


10 Hotspots in SLED Contracting for 2020

Get the Report


Subscribe to our Project Nation Newsletter

Subscribe >>

Contact Us >>