Analysis of VA COVID-19 Contract Spending to Date

Published: June 03, 2020

Federal Market AnalysisCoronavirus (COVID-19) PandemicSpending TrendsVA

To date, $1.5B (9%) of VA FY 2020 contract spending has been devoted to COVID-19 requirements.

Key Takeaways:

  • To date, VA has spent $1.5B on contracts related to COVID-19 response.
  • Most of the VA contract spending to date has stemmed from the Technology Acquisition Center ($653M).
  • $445M of VA’s COVID-19 contract spending has been for information technology, specifically for annual software maintenance plans ($308M).

The Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020 (CARES Act) alone allocates over $19B in resources to VA to respond to the pandemic. According to Federal Procurement Data System (FPDS) contract spending data, VA shows $16.6B in total contract spending to date for FY 2020.  Of that, $1.5B or 9%, is related to contract spending for the COVID-19 pandemic.

Federal contracting personnel have the ability to code contract spending as a specific national interest action which in this case includes COVID-19. Due to data entry and data coding limitations, it is likely that even more VA contract spending may be related to COVID-19 response efforts.

The charts and data below include contract spending and actions that are specifically coded as a national interest action for COVID-19 for VA:

The VA Technology Acquisition Center (TAC) shows the highest contract spending on COVID-19 goods and services at nearly $653M for FY 2020 to date.

Most of the contract spending to date would fall into the category of information technology, at $445M for the fiscal year.

To break VA spending down a little deeper, top spending has been for product service codes for medical and surgical equipment and supplies; annual software maintenance service plans; and IT support equipment. 

Top contractors for VA COVID-19 spending include Dell, V3Gate, and Colossal Contracting. Dell’s contract actions are for exercising option periods for Enterprise License Agreements (ELAs). V3Gate’s contract actions were predominantly for laptops to support telework and telehealth services.

Top contract vehicles in use by VA to support COVID-19 response efforts include GSA Schedule 70 for IT equipment, software and services; SEWP V for IT equipment; and GSA Schedule 65 II for medical equipment and supplies.  

VA will continue to need contractor support to respond to the COVID-19 pandemic.  Agency needs run the gamut, and include health care staffing, information technology, PPE, medical supplies and equipment, pharmaceuticals, and cleaning services.