52.226-4
Notice of Disaster or Emergency Area Set-Aside
FAR 52.226-4 restricts contract offers to businesses located or primarily operating within a designated disaster or emergency area, giving local firms priority in federal recovery efforts.
Overview
FAR 52.226-4 establishes requirements for set-aside procurements in areas affected by disasters or emergencies. This clause restricts offers to businesses that reside or primarily operate within a specific geographic area designated by the Contracting Officer. The intent is to prioritize local businesses in the recovery and rebuilding efforts following a disaster or emergency. This set-aside is separate from, and can be in addition to, any small business set-aside that may also apply to the contract.
Key Rules
- Geographic Restriction
- Only businesses located or primarily operating within the defined disaster or emergency area are eligible to submit offers.
- Additional Set-Aside
- This set-aside does not replace small business set-asides; both can apply simultaneously to a contract.
Responsibilities
- Contracting Officers: Must specify the geographic boundaries for the set-aside and ensure only eligible businesses are considered.
- Contractors: Must confirm their business location or primary operations are within the designated area to be eligible to submit an offer.
- Agencies: Oversee compliance with set-aside requirements and ensure proper documentation of eligibility.
Practical Implications
- This clause ensures that local businesses have priority in federal contracting opportunities during disaster recovery, supporting local economies and rapid response. Contractors outside the designated area are automatically disqualified. Common pitfalls include failing to verify eligibility or misunderstanding the geographic boundaries set by the Contracting Officer.