Overview
This section prescribes the requirement to give preference to local firms when awarding emergency response contracts following a major disaster or emergency declaration under the Stafford Act. It provides Contracting Officers with the authority to restrict competition to specific geographic areas or apply evaluation preferences to support local economic recovery.
Key Rules
- Applicability: Preference applies to emergency response contracts during Presidentially declared disasters or emergencies under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
- Methods of Preference: Agencies may implement preference through either a local area set-aside or a specific evaluation preference.
- Geographic Boundaries: The Contracting Officer defines the specific geographic area for a set-aside; this area must be within the declared disaster/emergency boundaries but does not need to cover the entire declared region.
- Small Business Integration: A local area set-aside can be further restricted to local small business concerns only, combining local preference with socioeconomic goals.
- Increased Thresholds: When using Stafford Act authority, agencies may utilize increased micro-purchase and simplified acquisition thresholds as defined in FAR 2.101.
- Evaluation Preference Authorization: The use of evaluation preferences is contingent upon authorization within specific agency regulations or procedures.
Practical Implications
- Restricted Competition: Non-local firms may be entirely excluded from bidding on emergency response opportunities if the Contracting Officer establishes a local area set-aside.
- Strategic Location: To benefit from these provisions, contractors must demonstrate they are "local firms" within the specific counties or states defined in the solicitation, emphasizing the importance of maintaining updated geographic data in the System for Award Management (SAM).