Overview
This section prescribes the specific FAR provisions and clauses that contracting officers must include in solicitations and contracts when utilizing local area set-asides during disaster or emergency response efforts.
Key Rules
- Provision 52.226-3 (Disaster or Emergency Area Representation): Must be included in solicitations to require offerors to represent whether they are a "local" entity within the designated disaster area.
- Clause 52.226-4 (Notice of Disaster or Emergency Area Set-aside): Must be included in both solicitations and contracts to provide formal notification that the procurement is restricted to local sources.
- Clause 52.226-5 (Restrictions on Subcontracting Outside Disaster or Emergency Area): Must be included in all local set-aside actions to ensure that the primary economic benefits of the contract remain within the affected area by limiting work performed by non-local subcontractors.
- Commercial Items: Specific instructions for commercial products and services are cross-referenced to FAR 12.301(e)(5).
Practical Implications
- Geographic Compliance: Contractors must carefully monitor their subcontracting volume to ensure they do not exceed the limits for work performed by entities outside the specific disaster or emergency zone.
- Eligibility Verification: These clauses provide the legal framework for the government to disqualify offerors who do not meet the "local" residency or business presence requirements during a declared emergency.