26.203 Transition of work
Source: FAR 26.203 on acquisition.gov
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.
(a) In anticipation of potential emergency response requirements, agencies involved in response planning should consider awarding emergency response contracts before a major disaster or emergency occurs to ensure immediate response and relief. These contracts should be structured to respond to immediate emergency response needs, and should not be structured in any way that may inhibit the transition of emergency response work to local firms (e.g., unnecessarily broad scopes of work or long periods of performance).
(b) http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5&num=0&edition=prelim" target="_blank">42U.S.C.5 150(b)(2) requires that agencies performing response, relief, and reconstruction activities transition to local firms any work performed under contracts in effect on the date on which the President declares a major disaster or emergency, unless the head of such agency determines in writing that it is not feasible or practicable. This determination may be made on an individual contract or class basis. The written determination shall be prepared within a reasonable time given the circumstances of the emergency.
(c) In effecting the transition, agencies are not required to terminate or renegotiate existing contracts. Agencies should transition the work at the earliest practical opportunity after consideration of the following:
(1) The potential duration of the disaster or emergency.
(2) The severity of the disaster or emergency.
(3) The scope and structure of the existing contract, including its period of performance and the milestone(s) at which a transition is reasonable (e.g., before exercising an option).
(4) The potential impact of a transition, including safety, national defense, and mobilization.
(5) The expected availability of qualified local offerors who can provide the products or services at a reasonable price.
(d) The agency shall transition the work to local firms using the local area set-aside identified in 26.202-1.