26.202
Local area preference
During Presidentially declared disasters, contracting officers must give preference to local firms for emergency response contracts and may use higher purchase thresholds under the Stafford Act.
Overview
FAR 26.202 establishes requirements for giving preference to local firms when awarding emergency response contracts during a major disaster or emergency declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The regulation mandates that, to the extent feasible and practicable, contracting officers should prioritize local businesses, either through set-asides or evaluation preferences. Additionally, it references the use of increased micro-purchase and simplified acquisition thresholds under the Stafford Act, as defined in FAR 2.101, to expedite procurement during emergencies.
Key Rules
- Local Area Preference Requirement
- Contracting officers must give preference to local firms for emergency response contracts during a declared major disaster or emergency, using set-asides or evaluation preferences where possible.
- Use of Increased Thresholds
- When operating under the Stafford Act, contracting officers may use higher micro-purchase and simplified acquisition thresholds as defined in FAR 2.101, allowing for faster and more flexible procurement.
Responsibilities
- Contracting Officers: Must implement local area preferences and apply increased thresholds when authorized; ensure compliance with Stafford Act provisions.
- Contractors: Should be aware of local preference opportunities and eligibility; understand threshold changes during emergencies.
- Agencies: Oversee proper application of preferences and thresholds; ensure documentation and justification for preference decisions.
Practical Implications
- This section exists to support local economic recovery and ensure rapid response during disasters.
- It impacts how contracts are solicited and awarded in disaster zones, potentially limiting competition to local firms.
- Common pitfalls include failing to document preference decisions or misapplying increased thresholds.