← All Free ToolsGo back to previous tools page
Explore More Tools →
section26.204

Justification for expenditures to other than local firms

Overview

This section outlines the statutory requirement for written documentation when federal emergency response contracts are awarded to non-local entities following a Presidential disaster or emergency declaration.

Key Rules

  • Written Justification: Under 42 U.S.C. 5150(b)(1), any federal expenditure for emergency response awarded to a non-local firm must be justified in writing within the contract file.
  • Mandatory Criteria: The justification must account for the scope of the disaster and the urgency of protecting life, caring for victims, and safeguarding property.
  • Application Levels: Justifications are flexible and can be authored on an individual contract basis or as a "class" justification covering multiple related actions.
  • Approval Authority: The Contracting Officer holds the formal authority to approve these justifications.

Practical Implications

  • While the Stafford Act mandates a preference for local firms, this regulation provides the necessary legal mechanism for Contracting Officers to bypass local preferences when immediate life-safety needs or specialized requirements exceed local capacity.
  • Contracting agencies should maintain pre-drafted templates for these justifications to ensure compliance remains streamlined during the high-pressure environment of an active emergency response.

Need help?

Get FAR guidance, audit prep support, and proposal insights from the AudCor team.

Talk to an expert