COVID-19 Guidance: Procurements Under Grants During Periods of Exigent or Emergency Circumstances

Current Federal procurement standards (found at 2 C.F.R. § 200.320(f)(2)) allow non-state entities to noncompetitively procure contracts (i.e., sole-sourcing) under certain emergency or exigent circumstances. FEMA defines an emergency or exigent circumstances as unexpected and unusually dangerous situations requiring immediate action or an urgent need for assistance or relief. Emergencies typically involve a threat to life, public health or safety, improved property, or some other form of dangerous situation. 


Exigencies, on the other hand, typically involve an urgent need to avoid, prevent, or alleviate serious harm or injury, financial or otherwise. Under both an emergency and exigency, using a competitive procurement process would prevent a non-state entity from taking immediate action required to address the situation. However, use of the emergency/exigency exception is only permissible during the actual emergency or exigent circumstances.


The President’s unprecedented Nationwide Emergency Declaration, and the Secretary of Health and Human Services’ (HHS) declaration of a Public Health Emergency for COVID-19 establish that exigent and emergency circumstances currently exist.


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This website  is intended as a national source of information about the coronavirus (COVID-19) and the delivery of  financial recovery services. It includes resources on eligibility, procurement, grant management delivery, and issues related to various Federal Programs currently supporting Covid-19 financial recovery for governments and non-profits. This website is not affiliated or endorsed or sponsored  by  FEMA  or any other Federal grant program. The information provided in various webpage documents is derived largely from Federal  published materials. In general, under section 105 of the Copyright Act, such works are not entitled to domestic copyright protection under U.S. law and are therefore in the public domain.  The goal is to help navigate the various Federal websites and summarize grant information and requirements. It does not constitute legal advice or grant management advise and is provided for general informational purposes only. Only the Federal Agency responsible for grants can make determinations on eligibility and grant amounts. You should consult with your professional services advisors and State and Federal Grant Coordinators for more detailed guidance on specific Covid-19 financial recovery issues.

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