Pentagon to Modify Hundreds of Contracts for COVID-19 Response

Pentagon to Modify Hundreds of Contracts for COVID-19 Response

The Defense Department modified an existing government contract to purchase 8,000 ventilators from four vendors worth as much $84 million, with an initial shipment of 1,400 of the increasingly important ventilators due for delivery by early May.


The announcement to purchase ventilators—already in need in COVID-19 hot spots like New York and Louisiana— for the Federal Emergency Management Agency to distribute was one of several major partnership efforts with the defense industrial base the Pentagon touted over the weekend. In total, the Defense Department “has processed several hundred contracts and orders related to COVID activities, including everything ranging from transportation, communication to medical supplies,” according to Department of Defense spokesperson Lt Col Mike Andrews.


"The Department continues to aggressively partner with the defense industry to mitigate impacts from the COVID-19 national emergency,” Andrews added.


In addition, the Defense Logistics Agency has purchased $2 million worth of pharmaceuticals and medical supplies, nearly 1 million gallons of fuel and food and repair components for the USNS Comfort and USNS Mercy hospital ships that will assist New York City and Los Angeles.


Andrews said the Defense Threat Reduction Agency helped deliver 3 million COVID-19 test kit swabs nationwide and will continue working with U.S. Transportation Command to support future deliveries.


On the procurement front, the Defense Contracting Management Agency announced plans to implement a mass modification on 1,500 contracts to raise limits on progress payments to 90% for large businesses and to 95% to small businesses.


“This will provide immediate cash flow to industry, especially small businesses in the supply chain, once incorporated into the contract,” Andrews said. “The department has a high expectation level that prime companies are also ensuring cash flow is moving to small businesses in their respective supply chains.”


During the COVID-19 outbreak, ..

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