26.204
Justification for expenditures to other than local firms
Any emergency response contract not awarded to a local firm after a major disaster or emergency must have a written, contracting officer-approved justification in the contract file.
Overview
FAR 26.204 requires that when federal funds are expended under an emergency response contract following a Presidential declaration of a major disaster or emergency, and the contract is not awarded to a local firm, a written justification must be included in the contract file. This justification must address the scope of the disaster or emergency and the immediate needs for supplies and services to protect life, care for victims, and safeguard property. The justification can be prepared for individual contracts or for a class of contracts, and must be approved by the contracting officer.
Key Rules
- Written Justification Requirement
- Any emergency response contract not awarded to a local firm must have a written justification in the contract file explaining the decision.
- Content of Justification
- The justification should consider the disaster's scope and the urgent needs for supplies and services.
- Approval Authority
- The contracting officer is responsible for approving the justification, whether it is for an individual contract or a class of contracts.
Responsibilities
- Contracting Officers: Must prepare and approve written justifications for awarding contracts to non-local firms and ensure these are included in the contract file.
- Contractors: Should be aware that awards to non-local firms require justification and may be subject to additional scrutiny.
- Agencies: Must ensure compliance with justification requirements and maintain proper documentation for audit and oversight.
Practical Implications
- This section ensures transparency and accountability in awarding emergency contracts to non-local firms, supporting local economic recovery when possible.
- Failure to document and justify such awards can result in compliance violations and potential challenges during audits or reviews.
- Contracting professionals should establish clear procedures for preparing, approving, and filing justifications during disaster or emergency response contracting.