OMB Allows for Donation of Federally Purchased Medical Equipment & Supplies to Support COVID-19 Response

Thoughtware Alert Apr 14, 2020
OMB Allows for Donation of Federally Purchased Medical Equipment & Supplies to Support COVID-19 Response

On April 9, 2020, the U.S. Office of Management and Budget (OMB) released a third memorandum in a series addressing administrative relief for federal awards recipients. M-20-20, “Repurposing Existing Federal Financial Assistance Programs and Awards to Support the Emergency Response to the Novel Coronavirus (COVID-19),” issues an exception that provides federal awarding agencies with the flexibility to repurpose awards to support the COVID-19 response. 
  
As a result of this memo, federal agencies may allow recipients to donate medical equipment, labor, supplies and contract services purchased with federal funds to hospitals, medical centers and other entities supporting the COVID-19 response.  

If a recipient entity is considering doing so, recipients: 

  • Should seek out information from their federal awarding agency for further guidance. The OMB has given this authority to the federal awarding agency, and each recipient must follow further instruction from the awarding agency 
  • Must maintain appropriate records and documentation
  • Shouldn’t assume additional funds will be available should the repurposing result in a shortage

For additional information from the first two memorandum in the series, view our recent BKD Thoughtware® article

Resources 

The OMB has released the following memos addressing federal awarding agencies:

As with most topics related to COVID-19, changes are being made rapidly. Please note that this information is current as of the date of publication. Visit BKD's COVID-19 Resource Center to learn more. If you have questions, contact your BKD Trusted Advisor or use the Contact Us form below.
 

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