Coronavirus Government Response Updates for Contractors for Q1 2021

Posted by Nick Schiffler on February 22, 2021

Government Response to COVID-19 Pandemic 2021

After a full year of enduring the COVID-19 pandemic and the economic fallout that has come with it, government contractors at all levels of government have needed to develop creative approaches to keeping their businesses healthy.

In a recent webinar hosted by GovWin Director of Research Deniece Peterson and Sr. Manager of Research Chris Dixon, nearly 78% of respondents stated that their government contracting business has been at least somewhat impacted. And nearly 30% of all respondents said that the pandemic has “impacted us a lot and tampered our growth trajectory for the year.”


 

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Needless to say, in the months to come, it will still be critical to track the latest developments making an impact on the government contracting landscape. Below are a few of the most recent and notable updates for the first quarter of 2021 at the federal and state, local and education (SLED) levels.

COVID-19 Response Updates for Federal Government Contractors

In late January, President Biden released a National Strategy for COVID-19 Response and Pandemic Preparedness, and around the same time several executive orders and memorandums from the new administration were put into place to kick off this response.

The overall plan of the Biden administration emphasizes data as the premises to gaining public trust of federal response efforts, supporting a vaccination campaign, and mitigating the spread of COVID-19 throughout the country.

“The Biden administration focuses its COVID-19 strategy and related executive orders on open data practices, effective collection and analysis of health data, and interoperability of public health data systems.”

Christine Fritsch, Principal Research Analyst, Federal Market Analysis, Deltek

There are several emerging themes that are impacting businesses of all sizes. Below are some of the top federal procurement issues that are coming out of the recent response to the pandemic:

  • Telework. Some federal government agencies are rethinking strict telework policies, as agency heads have noted strong employee efficiency and performance while teleworking.
  • Supply Chain. Efforts to tighten and reform supply chain security are expected, with increased oversight of supply chain health and an increased desire to “Buy American.
  • Acquisition Speed. There is a desire to implement potential policy and reform changes to streamline and speed up regular procurement processes.
  • Oversight. Changes to acquisition policy will be heavily influenced by the presence and scale of any waste, fraud and abuse uncovered by various COVID-19 oversight activities.

COVID-19 Response Updates for State, Local and Education (SLED) Government Contractors

When attendees of GovWin’s recent COVID-19 response webinar, COVID-19 Response: Q1 2021 Update for Government Contractors, were asked which area related to the pandemic is most likely to impact their government contracting success in the year ahead, the leading response was “government budgets and the potential for additional related stimulus” at more than 34%. And while additional stimulus activity is still in the works, the SLED forecast for 2021 for overall spending and bid opportunities is more positive.

As the chart below shows, the SLED market is expected to rebound in 2021 to about 96% of the overall bid volume from 2019, the most recent full pre-pandemic year. Additional stimulus could accelerate this forecast and could potentially cause rates of government bids and RFPs to catch back up to 100% of 2019 rates.

State and Local Government Bids Coronavirus Pandemic

Looking for the most up-to-date coverage of the government’s response to the COVID-19 pandemic across all levels of government?

Stay on top of recent spending bills and trends by reading the unrivaled research from GovWin’s Market Analysis team, available for free in the Coronavirus Government Response Resource Center. And follow GovWin’s on-demand and upcoming COVID-19 response webinars to hear directly from GovWin’s analyst team with the details you and your business need to know. 

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