Navy and Marine Corps COVID-19 Spending Plans
Published: July 02, 2020
The Navy and Marine Corps have plans to use more than $925M in Department of Defense coronavirus response funds.
- The Navy and Marine Corps receive more than $925M combined in supplemental funding to address COVID-19 requirements as part of the overall Department of Defense pandemic response funds.
- The Navy plans to spend $100M on personal protective equipment (PPE) and $94M on cleaning contracts and non-medical supplies and equipment.
- Department of the Navy IT requirements receive nearly $124M in pandemic-related funding, spread across the Navy, Marine Corps and Navy Reserve.
- IT suppliers should watch for procurements to enhance Navy and Marine Corps telework and remote operations capabilities spread across hardware, software, network services, and contract support.
Department of Defense CARES Act Funding
In March, Congress provided the Department of Defense (DOD) with $10.5B in emergency supplemental funding as part of the Coronavirus Aid, Relief, and Economic Security “CARES” Act to address urgent pandemic response requirements. At the end of May, DOD finally submitted its plan for spending those funds to the Pandemic Response Accountability Committee (PRAC) created to oversee the use of CARES Act funds. The new “Department of Defense Spend Plan For Funding Received in the--Coronavirus Aid, Relief, and Economic Security “CARES” Act provides a detailed plan of what the DOD’s different components will spend in the coming months, including the Department of the Navy, which includes the U.S. Marine Corps (USMC).
Pharmaceuticals and Other Medical Supplies: $100M
Within this category the Navy will use $100.1M in appropriated Operation & Maintenance (O&M) funding to purchase non-medical Personal Protective Equipment (PPE) to limit the transmission of infections among general Navy and Marine Corps personnel and those working outside Medical Treatment Facilities (MTFs), including medical personnel working outside of MTFs who engage in supporting activities, such as screening and transport of patients persons under investigation (PUI) for COVID-19. The goal is to protect the force and ensure the continuation of DOD missions.
Cleaning Contracts and Non-Medical Supplies/Equipment: $94M
These funds are required to support enhanced cleaning and disinfecting services contracts and to purchase cleaning and disinfecting supplies as a preventative measure to reduce the spread of the virus in work areas and living spaces and to keep military personnel at combat mission-ready status.
- Navy O&M: $75.0M
- Marine Corps O&M: $17.6M
- Navy Reserve O&M: $1.2M
The Navy and Marine Corps funding to sustain operations will come from the following three appropriations accounts:
- Military Personnel: Navy $14M; USMC $5.4M; USMC Reserve $0.2M – Funds to cover additional costs due to the COVID-19 pandemic, including costs from mitigation policies (i.e. restricted movement, quarantine, etc.) like Meals Ready to Eat (MRE) rations and other temporary dining allowances for isolated service members, etc.; increases in relocation costs due to surcharges on household good shipments; and hardship duty pay for personnel cannot quarantine in their existing quarters or other in-kind government lodging.
- O&M: Navy $162.1M; USMC $96.9M – Funds the construction and sustainment of temporary facilities, isolation facilities and support for mission essential crews, and lodging and support for personnel either prohibited from returning to home station or in quarantine upon return from overseas locations or following exposure to COVID-19.
Information Technology (IT) Equipment/Support: $123.6M
Funding under the following Department of the Navy appropriations accounts will go for the purchase of laptop/notebook computers, Common Access Card (CAC) readers, software licensing, increased bandwidth and associated circuitry, increased services and contract support, and other IT capabilities in response to the COVID-19 pandemic. Funds will also be used in expanding ongoing commercial solutions that provide remote access to NIPRNet and SIPRNet.
- O&M: Navy $100M, USMC $18.5M; Navy Reserve $5.1M
Transactions with Non-Appropriated Fund Instrumentalities (NAFI): $146.7M
These O&M funds will be used to protect the jobs of 12,000 employees at Navy and Marine Corps Morale, Welfare, and Recreation (MWR) facilities – food operations, fitness centers, golf courses, outdoor recreation, libraries, youth centers, bowling alleys, child development centers, and lodging facilities – and who are facing the immediate risk of furlough due to COVID-19 closures.
- O&M: Navy $99.2M; USMC $47.5M
Navy, Defense Working Capital Fund: $475M
Funds are provided for the Defense Working Capital Funds in accordance with the CARES Act to address existing cash shortfalls to better position the funds to respond to the coronavirus.