March

2020 Issue #22

The Soter Group

Perspectives – U.S. Federal Government National Emergency Contract Spending

U.S. Federal government response to and recovery from COVID-19 likely to require billions in
contracted products and services across many years.

The U.S. is just in the beginning stages of responding to the ongoing novel coronavirus outbreak (COVID-
19), but it is inarguable that the entire scope of the response, recovery, and resulting emergency
preparedness activities will likely span many years. Throughout this entire emergency management
process, contractors who provide products and services to the U.S. Federal government and its
constituents play essential roles.
The following table shows the aggregate amount of contract spending (exclusive of grants and other
financial assistance) directed by the Federal government in response to select national emergencies.
Not only are the reported amounts significant (e.g., $20.7 billion associated with Hurricane Katrina), but
they are also distributed across numerous fiscal years (e.g., fourteen fiscal years to respond to and
recover from Hurricane Katrina). While the response to a global pandemic is undoubtedly unique to
that of a hurricane or other types of national emergencies, examining historical data may provide insight
into how government contractors can prepare for and assist the government in achieving its mission
now and into the future.
U.S. Federal Government Prime Contract Obligations in support of Select National Emergencies (in $
millions)
Total Prime
Fiscal
Sample National Emergencies Contract
Years*
Obligations*
Hurricane Katrina (2005) $20,666 2005 - 2018

Hurricane Maria (2017) 5,848 2017 - 2020

Hurricane Sandy (2013) 2,940 2013 - 2018

Operation United Assistance – Ebola Outbreak West Africa (2014) 569 2014 – 2016

Gulf Oil Spill (2010) 568 2010 - 2013

2020 –
COVID-19 (2020) 42
(Ongoing)
*FY20 data is year-to-date as of the publication of this document – March 20, 2020. Federal government data may
be subject to a 90-day delay or otherwise delayed due to the ongoing COVID-19 emergency.

The following two tables provide greater detail into Operation United Assistance, a mission initiated in
2014 to assist in addressing the Ebola outbreak in West Africa. While more narrow and isolated in scope
compared to COVID-19, this emergency event was also medical in nature. The first table focuses on the
types of products and services that were contracted by the Federal government. While some of the

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leading categories were concentrated in professional support and IT support services, there were also
research and development (R&D) services and a broad spectrum of other products and services required
to address the Ebola outbreak response and recovery efforts.
U.S. Federal Government Prime Contract Obligations in support of Operation United Assistance, by
Product/Service (in $ millions)
FY14-FY16
Product/Service FY14 FY15 FY16
Total
Emergency Response/Disaster
$5.0 $86.5 ($0.0) $91.4
Planning/Preparedness Support
Logistics Support Services 1.8 67.3 0.2 69.3

Other Professional Services 1.9 36.0 25.2 63.0

IT Strategy and Architecture Services – 26.8 – 26.8

Other IT and Telecommunications
– 14.0 8.5 22.5
Services
Communications Services – 8.9 13.0 21.9
R&D: Biomedical – Advanced
8.1 13.0 – 21.1
Development
R&D: Specialized Medical Services –
– 13.9 3.7 17.6
Management and Support
All Other (218 categories) 21.2 187.1 27.5 235.8

TOTAL $38.0 $453.4 $78.1 $569.4

The second table identifies the departments and agencies responsible for contracting and providing the
funding for the products and services acquired in support of Operation United Assistance. It is
important to note that the contracting and funding organizations can, in some cases, differ, highlighting
the multi-stakeholder characteristic of government emergency management and related procurement.
U.S. Federal Government Prime Contract Obligations in support of Operation United Assistance, by
Contracting or Funding Department/Agency (in $ millions)
Contracting FY14-FY16 Funding Department/Agency FY14-FY16
Department/Agency (D/A) Total (D/A) Total
HHS/CDC $218.2 HHS/CDC $218.2
DoD/Army 118.3 DoD/Army 119.1
USAID 89.7 USAID 90.8
DoD/DLA 46.4 DoD/DLA 45.8

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 March 2020 Issue #22
The Soter Group

DoD/DTRA 33.5 DoD/DTRA 33.5

All Other (37 D/As) 63.5 All Other (38 D/As) 62.2
TOTAL $569.4 TOTAL $569.4

As mentioned, the U.S. Federal government is just beginning the response activities associated with
COVID-19. Year-to-date – as of March 20, 2020 – there has only been a reported $42 million in prime
contract obligations associated to the emergency. However, if history is any indication and given the
scope and magnitude of the ongoing crisis, the government will need an immense amount of products
and services from the government contracting community now and many years into the future to
respond to, recover from, and learn from this outbreak as well as to prepare for future pandemic and
public health emergencies.
About The Soter Group
The Soter Group provides services to both the Federal government and the commercial entities that
support it. Our Commercial Services Division provides market research and assessments, competitive
assessments, and strategic advisory services to commercial clients seeking to enter or grow in the
Federal government security market. Justin Taft, President & CEO, and Peter Wong, Director of Market
Research, authored these perspectives. The Soter Group welcomes the opportunity for our research to
be cited in third-party reports. To learn more, please visit www.TheSoterGroup.com and/or email
info@TheSoterGroup.com. To access and read our other reports, please visit: The Soter Group Market
Reports.

Report March 2020: Perspectives – Federal Government National Emergency Contract Spending

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