Overview
FAR Subpart 26.2 implements the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which mandates a statutory preference for local organizations and individuals when awarding federal contracts for disaster relief or emergency assistance. It establishes the framework for local area set-asides, the transition of ongoing work to local firms, and the use of the Disaster Response Registry to identify capable vendors within impacted zones.
Key Rules
- Local Preference Mandate: Agencies must give preference to "local firms" (those residing or doing business primarily in the disaster area) for emergency response contracts to the extent feasible and practicable.
- Set-Aside Geographic Boundaries: Contracting Officers (COs) define the specific geographic area for a set-aside. This area must be within the Presidential disaster declaration zone but does not have to encompass the entire declared region.
- Transition of Work: If a non-local firm is performing work when a disaster is declared, the agency must transition that work to a local firm unless the Head of the Agency determines in writing that it is not feasible or practicable.
- Justification for Non-Local Awards: Any expenditure of federal funds for emergency response to a non-local firm must be justified in writing in the contract file, explaining why a local firm was not used.
- Subcontracting Restrictions: When a local area set-aside is used, specific clauses (FAR 52.226-5) are included to restrict subcontracting outside the designated disaster area to ensure the economic benefits stay local.
- Threshold Increases: The subpart references FAR 2.101, allowing for increased micro-purchase and simplified acquisition thresholds during Stafford Act contingencies to expedite procurement.
Responsibilities
- Contracting Officers (COs):
- Defining the specific geographic boundaries for local set-asides in consultation with requirements offices.
- Determining if local set-asides should be further restricted to small businesses.
- Approving written justifications for awards made to non-local firms.
- Consulting the Disaster Response Registry via SAM.gov before awarding contracts.
- Inserting necessary solicitation provisions (52.226-3) and contract clauses (52.226-4, 52.226-5).
- Requirements/Program Offices:
- Consulting with the CO to define geographic areas.
- Planning for immediate response needs without inhibiting future transitions to local firms.
- Head of the Agency:
- Providing written determinations when it is not feasible to transition work from national/non-local contractors to local firms.
- Contractors:
- Must register in SAM.gov and identify as "Disaster Response Contractors" to be included in the registry.
- Must represent their status as a local firm to qualify for set-asides.
Practical Implications
- Economic Recovery Focus: This subpart prioritizes local economic stimulus following a catastrophe, ensuring that federal tax dollars aid the specific community that was harmed.
- Shift from National to Local: In the immediate aftermath of a disaster, a large national firm may be used for "life and safety" (e.g., immediate search and rescue or heavy logistics). However, as the situation stabilizes, FAR 26.2 requires a deliberate pivot to local contractors for long-term debris removal and reconstruction.
- Market Research Requirements: COs cannot simply rely on known large-scale vendors; they have a regulatory "homework" assignment to search the Disaster Response Registry in SAM.gov to find local capacity.
- Audit Risk: The requirement to justify non-local expenditures in writing creates a significant paper trail. Failure to document why a local firm wasn't used can lead to post-award protests or negative audit findings from the GAO or Inspector General.