FAR 26.202—Local area preference.
Plain-English Summary
FAR 26.202 addresses local area preference in emergency response contracting during a presidential major disaster or emergency declaration under the Stafford Act. It tells contracting officers that, when awarding emergency response contracts in that period, they should give preference to local firms to the extent feasible and practicable. The section also explains that this preference may be implemented either through a local area set-aside or through an evaluation preference, giving agencies flexibility in how they structure the competition. In addition, it points users to the definitions of "micro-purchase threshold" and "simplified acquisition threshold" in FAR 2.101 when the Stafford Act authority is being used to apply increased thresholds. In practice, this section is meant to speed disaster response while supporting businesses in the affected area and ensuring agencies use the correct acquisition thresholds and preference tools.
Key Rules
Local firms get preference
During the term of a presidential major disaster or emergency declaration under the Stafford Act, preference shall be given to local firms for emergency response contracts, but only to the extent feasible and practicable. This is a mandatory preference requirement tied to disaster-response contracting, not a general preference for all procurements.
Applies to emergency response contracts
The rule applies specifically to emergency response contracts awarded during the covered disaster or emergency period. It is not a blanket local preference for all contracting activity; the trigger is the Stafford Act declaration and the emergency response nature of the contract.
Set-aside or evaluation preference
The preference may be implemented either as a local area set-aside or as an evaluation preference. Agencies have discretion to choose the method that best fits the acquisition, but the chosen approach must still be feasible and practicable under the circumstances.
Feasibility and practicability limit
The local preference is required only to the extent it is feasible and practicable. This means the contracting officer must consider operational needs, urgency, market conditions, and the availability of local sources before applying the preference.
Stafford Act threshold references
When using Stafford Act authority, users must look to FAR 2.101 for the definitions of micro-purchase threshold and simplified acquisition threshold. This matters because the Stafford Act can authorize increased thresholds, and the correct threshold determines which acquisition procedures apply.
Responsibilities
Contracting Officer
Determine whether the procurement is an emergency response contract during a presidential major disaster or emergency declaration, assess whether a local preference is feasible and practicable, and choose an appropriate implementation method such as a local area set-aside or evaluation preference. The contracting officer must also apply the correct micro-purchase and simplified acquisition threshold rules when Stafford Act authority is used.
Agency
Establish acquisition approaches and internal procedures that support local preference in disaster-response contracting and ensure personnel understand when Stafford Act authorities and increased thresholds apply. The agency must also ensure its contracting actions remain consistent with the feasibility and practicability standard.
Local Firms
Compete for emergency response work in the affected area and, where the agency uses a local area set-aside or evaluation preference, benefit from the preference structure if they meet the applicable local and solicitation requirements.
All Offerors/Contractors
Understand that local preference may affect competition for emergency response contracts during a Stafford Act declaration and ensure they can document eligibility or local status if the solicitation uses a local area preference mechanism.
Practical Implications
Contracting officers should document why a local preference is or is not feasible and practicable, especially in urgent disaster-response buys where speed and supply availability may limit local sourcing.
The choice between a set-aside and an evaluation preference affects competition strategy, solicitation language, and award decisions, so the acquisition plan should clearly state which method is being used.
A common pitfall is assuming the local preference applies to every disaster-related purchase; it is limited to emergency response contracts during the declaration period.
Another frequent issue is using the wrong acquisition threshold after Stafford Act authority is invoked, so the FAR 2.101 definitions should be checked before selecting procedures.
Contractors should watch for solicitation terms defining what counts as a local firm, because eligibility may depend on the specific geographic area and documentation required by the agency.
Official Regulatory Text
(a) When awarding emergency response contracts during the term of a major disaster or emergency declaration by the President of the United States under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 , et seq .), preference shall be given, to the extent feasible and practicable, to local firms. Preference may be given through a local area set-aside or an evaluation preference. (b) When using the authority under the Stafford Act, see the definitions of "micro-purchase threshold" and "simplified acquisition threshold" in 2.101 for the authority to use an increased micro-purchase threshold and simplified acquisition threshold.