52.226-3 Disaster or Emergency Area Representation
Source: FAR 52.226-3 on acquisition.gov
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.
As prescribed in 26.206(a), insert the following provision:
Disaster or Emergency Area Representation (Nov 2007)
(a) Set-aside area. The area covered in this contract is: ________________________________________________ [Contracting Officer to fill in with definite geographic boundaries.]
(b) Representations. The offeror represents that it □ does □ does not reside or primarily do business in the designated set-aside area.
(c) An offeror is considered to be residing or primarily doing business in the set-aside area if, during the last twelve months-
(1) The offeror had its main operating office in the area; and
(2) That office generated at least half of the offeror’s gross revenues and employed at least half of the offeror’s permanent employees.
(d) If the offeror does not meet the criteria in paragraph (c) of this provision, factors to be considered in determining whether an offeror resides or primarily does business in the set-aside area include-
(1) Physical location(s) of the offeror’s permanent office(s) and date any office in the set-aside area(s) was established;
(2) Current state licenses;
(3) Record of past work in the set-aside area(s) (e.g., how much and for how long);
(4) Contractual history the offeror has had with subcontractors and/or suppliers in the set-aside area;
(5) Percentage of the offeror’s gross revenues attributable to work performed in the set-aside area;
(6) Number of permanent employees the offeror employs in the set-aside area;
(7) Membership in local and state organizations in the set-aside area; and
(8) Other evidence that establishes the offeror resides or primarily does business in the set-aside area. For example, sole proprietorships may submit utility bills and bank statements.
(e) If the offeror represents it resides or primarily does business in the set-aside area, the offeror shall furnish documentation to support its representation if requested by the Contracting Officer. The solicitation may require the offeror to submit with its offer documentation to support the representation.
(End of provision)