BP oil spill proves fertile ground for procurement

Source: Government Executive

While it appears oil has stopped seeping into the Gulf of Mexico, US federal spending in response to Deepwater Horizon disaster is still flowing. As of Aug. 31, federal agencies have spent nearly $126 million in contracts to respond and recover from the April 20 BP oil spill, according to government procurement data. Those figures are an estimate, as several federal procurement offices have relocated to the Gulf Coast and do not have access to their normal contract writing systems, making it difficult to populate the Federal Procurement Data System-Next Generation with updated contract information, according to a note attached to the data."

The Commerce Department’s National Oceanic and Atmospheric Administration has been the largest federal spender, issuing more than $55 million in contracts. The spending includes contracts for the lease of small ships, commercial fishing equipment and electronic measuring instruments to check oil content. The government has a history of responding to significant domestic and international incidents through investments in federal contracting. Agencies issued nearly $19 billion in contracts after Hurricane Katrina in 2005, according to procurement data. Most recently, the government spent $141 million on recovery and relief contracts in Haiti following the devastating earthquake last January.

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