Organizations receiving contracts from the federal government are classified by types of industries based on the North American Industry Classification System. These categories allow the government to understand the kinds of businesses receiving federal contracts. For example, the Department Health and Human Services gave a contract for ventilators to Ventec Life Systems, Inc., which is classified in the “Surgical and medical instrument manufacturing” category. The Department of Education gave a COVID testing kits contract to Emed Labs, LLC, which is classified as “medical laboratories.”
Federal agencies have distributed most of the pandemic funding through grants, direct payments, and loans. However, the agencies have also signed contracts to buy goods and services related to the pandemic.
In order to get pandemic relief funding out the door quickly, federal agencies are primarily using new and existing federal contracts and financial assistance awards to distribute the money. Do you know the difference? Here are the details.