26.202-1
Local area set-aside
Contracting officers can restrict competition to local firms within a disaster or emergency area, and may further limit it to local small businesses, to support rapid and effective response.
Overview
FAR 26.202-1 allows contracting officers to set aside certain federal contract solicitations exclusively for firms located within a defined local geographic area, particularly in response to major disasters or emergencies. The regulation outlines the process for defining the local area, ensuring it aligns with the boundaries of the declared disaster or emergency, and provides the option to further restrict participation to small businesses within that area. This approach is intended to support local economic recovery and ensure rapid response by leveraging local resources.
Key Rules
- Defining the Local Area
- The contracting officer, with input from the requirements office, must clearly define the geographic boundaries for the set-aside.
- Geographic Limitations
- The set-aside area must be within the officially declared disaster or emergency area but does not have to include all affected counties.
- Small Business Restriction Option
- The contracting officer may choose to limit the set-aside further to only small business concerns within the defined local area, referencing FAR Part 19 for guidance.
Responsibilities
- Contracting Officers: Define the local area, ensure it is within the declared disaster/emergency boundaries, consult with the requirements office, and determine if the set-aside should be limited to small businesses.
- Contractors: Must be located within the defined local area (and be a small business if further restricted) to be eligible to compete.
- Agencies: Oversee compliance with set-aside boundaries and ensure proper documentation of the process.
Practical Implications
- This regulation enables rapid, localized contracting in disaster or emergency situations, supporting local economies and efficient response.
- Contractors outside the defined area are ineligible, so understanding the boundaries is critical.
- Common pitfalls include misdefining the set-aside area or failing to properly document the restriction to small businesses.