FAR 26.203—Transition of work.
Plain-English Summary
FAR 26.203 addresses how agencies should plan for and carry out the transition of emergency response, relief, and reconstruction work to local firms after a major disaster or emergency. It covers advance planning for emergency response contracts, the requirement to transition work performed under contracts already in effect when the President declares a major disaster or emergency, the written determination that transition is not feasible or practicable, the timing and factors agencies must consider when deciding when to transition, and the required use of the local area set-aside at FAR 26.202-1. In practice, this section is meant to ensure the government can respond immediately to emergencies while still promoting local economic recovery and local contractor participation as soon as conditions allow. It also limits contract structures that could unnecessarily delay or block the shift of work to local firms, such as overly broad scopes or long performance periods. The section gives agencies flexibility, but only after a documented, reasoned assessment of feasibility, safety, mission impact, and local market availability.
Key Rules
Plan emergency contracts early
Agencies should consider awarding emergency response contracts before a disaster or emergency occurs so immediate response and relief can begin without delay. Those contracts should be designed for urgent needs and should not be written so broadly or for so long that they hinder later transition to local firms.
Transition work to local firms
For contracts in effect on the date of a presidential major disaster or emergency declaration, agencies must transition response, relief, and reconstruction work to local firms unless the agency head determines in writing that doing so is not feasible or practicable. The requirement applies to work already being performed under those contracts.
Written determination required
If transition is not feasible or practicable, the agency head must make a written determination, which may apply to an individual contract or a class of contracts. The determination must be prepared within a reasonable time given the emergency circumstances.
No need to terminate contracts
Agencies are not required to terminate or renegotiate existing contracts in order to effect the transition. Instead, they should move the work at the earliest practical opportunity based on the facts of the emergency and the contract structure.
Consider specific transition factors
Before transitioning, agencies should evaluate the expected duration and severity of the emergency, the contract’s scope, period of performance, and logical transition points, the impact on safety, national defense, and mobilization, and whether qualified local offerors are available at a reasonable price.
Use local area set-aside
When transitioning work, the agency must use the local area set-aside identified in FAR 26.202-1. This ties the transition process to the FAR’s local preference mechanism for disaster recovery and related work.
Responsibilities
Agency
Plan ahead for emergency response needs, structure pre-disaster contracts so they support immediate response without blocking later transition, assess when transition should occur, and use the local area set-aside when moving work to local firms.
Head of the agency
If transition to local firms is not feasible or practicable, issue a written determination within a reasonable time based on the emergency circumstances. The determination may cover one contract or a class of contracts.
Contracting Officer
Administer emergency response contracts in a way that supports transition planning, identify practical transition points, and coordinate the shift of work without unnecessarily terminating or renegotiating existing contracts.
Local firms
Compete for transitioned work under the local area set-aside and provide the needed products or services at a reasonable price when qualified and available.
Practical Implications
Agencies should build transition planning into emergency acquisition strategy from the start, not after the disaster hits. Poorly drafted scopes or long base periods can make later transition harder and may conflict with the policy in this section.
The written determination is a key compliance point. If an agency keeps work with the incumbent because transition is not practical, it needs a timely, defensible record explaining why.
Contracting officers should look for natural transition points, such as before exercising an option, rather than forcing abrupt changes that could disrupt safety, mobilization, or mission support.
Availability of local firms matters, but agencies should document market research and pricing expectations rather than assume local capacity is unavailable.
This section does not require termination or renegotiation, so agencies should manage transition through planning and contract administration instead of treating transition as a default contract closeout action.
Official Regulatory Text
(a) In anticipation of potential emergency response requirements, agencies involved in response planning should consider awarding emergency response contracts before a major disaster or emergency occurs to ensure immediate response and relief. These contracts should be structured to respond to immediate emergency response needs, and should not be structured in any way that may inhibit the transition of emergency response work to local firms ( e.g. , unnecessarily broad scopes of work or long periods of performance). (b) 42U.S.C.5 150(b)(2) requires that agencies performing response, relief, and reconstruction activities transition to local firms any work performed under contracts in effect on the date on which the President declares a major disaster or emergency, unless the head of such agency determines in writing that it is not feasible or practicable. This determination may be made on an individual contract or class basis. The written determination shall be prepared within a reasonable time given the circumstances of the emergency. (c) In effecting the transition, agencies are not required to terminate or renegotiate existing contracts. Agencies should transition the work at the earliest practical opportunity after consideration of the following: (1) The potential duration of the disaster or emergency. (2) The severity of the disaster or emergency. (3) The scope and structure of the existing contract, including its period of performance and the milestone(s) at which a transition is reasonable ( e.g. , before exercising an option). (4) The potential impact of a transition, including safety, national defense, and mobilization. (5) The expected availability of qualified local offerors who can provide the products or services at a reasonable price. (d) The agency shall transition the work to local firms using the local area set-aside identified in 26.202-1 .