Transition of work
Agencies must transition emergency response work to local firms after a disaster declaration unless a prompt, written determination justifies otherwise, ensuring local business participation in recovery efforts.
Overview
FAR 26.203 outlines requirements and best practices for transitioning emergency response work to local firms following a major disaster or emergency. Agencies are encouraged to plan ahead by awarding emergency response contracts before disasters occur, but must ensure these contracts do not prevent the timely transition of work to local businesses. When a major disaster or emergency is declared, agencies are required by law (42 U.S.C. 5150(b)(2)) to transition ongoing response, relief, and reconstruction work to local firms unless a written determination is made that such a transition is not feasible or practicable. This determination must be documented promptly, considering the circumstances. Agencies are not required to terminate or renegotiate existing contracts, but should transition work at the earliest practical opportunity, taking into account factors such as the disaster's duration and severity, contract structure, transition impact, and the availability of qualified local firms. The transition should utilize the local area set-aside procedures described in FAR 26.202-1.
Key Rules
- Advance Contracting for Emergencies
- Agencies should award emergency response contracts in advance, but must avoid contract terms that hinder transition to local firms.
- Mandatory Transition to Local Firms
- Agencies must transition work to local firms after a disaster declaration unless a written determination justifies otherwise.
- Written Determination Requirement
- If transition is not feasible or practicable, a written determination must be prepared promptly.
- Transition Considerations
- Agencies should consider disaster duration, severity, contract structure, transition impact, and local firm availability when planning transitions.
- Use of Local Area Set-Aside
- Transitions must use the local area set-aside procedures in FAR 26.202-1.
Responsibilities
- Contracting Officers: Plan contracts to allow for transition, prepare written determinations if needed, and execute transitions using set-aside procedures.
- Contractors: Be prepared for possible transition of work to local firms and comply with contract terms.
- Agencies: Oversee compliance, document determinations, and ensure timely transition to local businesses.
Practical Implications
- Ensures local businesses have opportunities in disaster response.
- Requires careful contract planning and documentation.
- Delays or failures in transition can result in noncompliance or missed opportunities for local firms.