FAR 18.203—Emergency declaration or major disaster declaration.
Plain-English Summary
FAR 18.203 addresses two emergency-related contracting topics. First, it explains that when the President has issued a Stafford Act declaration for a major disaster or emergency, agencies should give preference to local organizations, firms, and individuals when buying major disaster or emergency assistance activities; that preference can be implemented through local area set-asides or an evaluation preference, and the rule points readers to FAR 6.208 and FAR subpart 26.2 for the related procedures. Second, it notes that the Cargo Preference Act of 1954, which normally requires ocean transportation on U.S.-flag vessels, may be waived in emergency situations, with the implementing reference in FAR 47.502(c). In practice, this section gives contracting officers flexibility to speed relief and recovery efforts while still following the special rules that apply in disaster response. It matters because emergency acquisitions often need to balance urgency, local economic support, and statutory transportation requirements that may be relaxed only under specific emergency conditions.
Key Rules
Local preference after Stafford declaration
When the President has declared a major disaster or emergency under the Stafford Act, agencies should prefer local organizations, firms, and individuals for contracting related to disaster or emergency assistance activities. The preference is not automatic for every contract, but it is a recognized policy for these emergency-response procurements.
Preference methods allowed
The local preference may be implemented as a local area set-aside or as an evaluation preference. Contracting officers must use the applicable procedures and limits in FAR 6.208 and FAR subpart 26.2 when applying these preference tools.
Applies to disaster assistance work
This rule is tied to contracting for major disaster or emergency assistance activities, not ordinary peacetime acquisitions. The subject matter is the procurement needed to support response, relief, and recovery operations after a qualifying declaration.
Cargo preference may be waived
In emergency situations, the Cargo Preference Act of 1954 requirements for ocean transportation by U.S.-flag vessels may be waived. Any waiver must be handled under the emergency transportation rules referenced in FAR 47.502(c).
Cross-references control implementation
FAR 18.203 is a short policy section and does not provide the full mechanics. Users must consult the cited provisions for the detailed rules on local area preferences and cargo preference waivers.
Responsibilities
Contracting Officer
Determine whether the procurement is for major disaster or emergency assistance activities under a Stafford Act declaration, then apply the appropriate local preference method if used by the agency. The contracting officer must also follow the cited FAR provisions for set-asides, evaluation preferences, and any cargo preference waiver process.
Agency
Establish and apply policies for using local area preferences in disaster or emergency acquisitions, consistent with FAR 6.208 and subpart 26.2. The agency must also ensure emergency transportation decisions comply with cargo preference rules and waiver authority.
Contractor
Understand that emergency-response procurements may be limited to or favor local firms and individuals, and be prepared to compete under set-aside or evaluation-preference procedures. Contractors involved in shipping must also account for the possibility that U.S.-flag cargo preference requirements could be waived in an emergency.
President
Issue the Stafford Act declaration that triggers the local preference policy for disaster or emergency assistance activities. Without that declaration, the specific preference language in this section does not apply.
Practical Implications
This section is most important during disaster response, when agencies may need to move quickly but still document why local firms are being favored or why a cargo preference waiver is being used.
A common pitfall is treating the local preference as a blanket rule for all emergency buys; it applies to major disaster or emergency assistance activities tied to a Stafford Act declaration and must be implemented through the referenced FAR procedures.
Another risk is overlooking the cross-references. The section itself does not authorize every detail, so contracting officers must check FAR 6.208, FAR subpart 26.2, and FAR 47.502(c) before acting.
Contractors should watch for shortened competition, local set-asides, or evaluation preferences that can change who is eligible or how offers are scored.
For transportation, parties should not assume U.S.-flag vessel requirements always remain in force during emergencies; a waiver may be available, but only under the proper emergency circumstances and approval process.
Official Regulatory Text
(a) Disaster or emergency assistance activities. Preference will be given to local organizations, firms, and individuals when contracting for major disaster or emergency assistance activities when the President has made a declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Preference may take the form of local area set-asides or an evaluation preference. (See 6.208 and subpart 26.2 .) (b) Ocean transportation by U.S. flag vessels. The provisions of the Cargo Preference Act of 1954 may be waived in emergency situations. (See 47.502 (c).)