52.226-3
Disaster or Emergency Area Representation
FAR 52.226-3 requires offerors to certify and, if requested, document that they reside or primarily do business in a designated disaster or emergency area to qualify for set-aside contracts.
Overview
FAR 52.226-3, Disaster or Emergency Area Representation, is a solicitation provision used for contracts set aside for specific geographic areas affected by disasters or emergencies. Its purpose is to ensure that only offerors who reside or primarily do business in the designated area are eligible for award, supporting local economic recovery and response efforts.
Key Rules
- Set-Aside Area Identification
- The contracting officer specifies the geographic boundaries of the set-aside area in the solicitation.
- Offeror Representation
- Offerors must declare whether they reside or primarily do business in the set-aside area.
- Residency/Business Criteria
- An offeror is considered local if, in the past 12 months, its main office was in the area and it generated at least half its gross revenues and employed at least half its permanent employees there.
- Additional Factors
- If the main criteria are not met, other factors (e.g., office location, licenses, past work, local employees, revenues, memberships, and other evidence) are considered to determine eligibility.
- Documentation Requirement
- Offerors must provide supporting documentation for their representation if requested by the contracting officer, and may be required to submit it with their offer.
Responsibilities
- Contracting Officers: Define the set-aside area, include the provision in solicitations, and verify offeror eligibility and documentation.
- Contractors/Offerors: Accurately represent their residency or business status and provide supporting documentation as required.
- Agencies: Oversee compliance and ensure only eligible offerors are considered for award.
Practical Implications
- This provision ensures disaster or emergency recovery contracts benefit local businesses.
- Offerors must be prepared to substantiate their eligibility with documentation.
- Misrepresentation or lack of documentation can result in disqualification or penalties.