FAR 26.206—Solicitation provision and contract clauses.
Plain-English Summary
FAR 26.206 tells contracting officers which solicitation provisions and contract clauses must be used when an acquisition involves a local area set-aside tied to a disaster or emergency area. It specifically covers three required FAR text items: the representation at 52.226-3, Disaster or Emergency Area Representation; the notice clause at 52.226-4, Notice of Disaster or Emergency Area Set-aside; and the subcontracting restriction clause at 52.226-5, Restrictions on Subcontracting Outside Disaster or Emergency Area. The section also points out a special rule for commercial products and commercial services, directing users to FAR 12.301(e)(5) for the representation provision. In practice, this section ensures that only eligible local-area firms are represented correctly, that offerors are on notice that the procurement is reserved for local-area participation, and that subcontracting does not undermine the purpose of the set-aside by shifting work outside the disaster or emergency area. For contracting officers, the rule is a mandatory clause-and-provision prescription; for contractors, it creates eligibility, notice, and performance restrictions that must be understood before bidding and throughout contract performance.
Key Rules
Insert local-area representation
For solicitations involving a local area set-aside, the contracting officer must include FAR 52.226-3, Disaster or Emergency Area Representation. This provision is used to obtain the offeror’s representation regarding its status in relation to the disaster or emergency area.
Use commercial-item exception guidance
When the acquisition is for commercial products or commercial services, the contracting officer must follow FAR 12.301(e)(5) for the representation provision. This means the commercial-item rules control how the representation is incorporated in those solicitations.
Provide set-aside notice clause
The contracting officer must insert FAR 52.226-4, Notice of Disaster or Emergency Area Set-aside, in solicitations and contracts involving local area set-asides. This clause alerts offerors and contractors that the procurement is restricted and explains the set-aside nature of the requirement.
Restrict subcontracting outside area
The contracting officer must insert FAR 52.226-5, Restrictions on Subcontracting Outside Disaster or Emergency Area, in all solicitations and contracts that involve local area set-asides. The clause is intended to preserve the local-area benefit by limiting subcontracting work outside the designated area.
Mandatory prescription, not discretion
The section uses 'shall insert,' which makes these provisions and clauses mandatory whenever the stated conditions are met. Contracting officers do not have discretion to omit them when the acquisition falls within the rule.
Responsibilities
Contracting Officer
Determine whether the acquisition involves a local area set-aside and, if so, include the required FAR provision and clauses. Use 52.226-3 in the solicitation, use 52.226-4 in both the solicitation and contract, and use 52.226-5 in all solicitations and contracts involving the set-aside. For commercial products and commercial services, apply FAR 12.301(e)(5) for the representation provision.
Contractor / Offeror
Review the solicitation to identify that it is a disaster or emergency area local area set-aside, complete the required representation accurately, and comply with the notice and subcontracting restrictions if awarded the contract. Ensure subcontracting plans and performance practices do not violate the clause limiting work outside the disaster or emergency area.
Agency
Support proper use of local area set-asides by ensuring acquisition personnel apply the correct FAR prescriptions and by overseeing compliance with the set-aside structure. Agencies should also ensure internal procedures align with the mandatory clause and provision requirements.
Practical Implications
Contracting officers should treat these insertions as mandatory checklist items whenever a local area set-aside is used; omitting them can create solicitation defects or contract administration problems.
Offerors should pay close attention to the representation requirement, because eligibility and status statements tied to a disaster or emergency area can affect award eligibility and later compliance.
The subcontracting restriction clause is especially important in performance: even if the prime contractor is eligible, excessive or improper outsourcing outside the designated area can undermine the set-aside and create contractual noncompliance.
For commercial-item buys, the cross-reference to FAR 12.301(e)(5) is a common trap; users should not assume the standard commercial-item clause set automatically satisfies the representation requirement without checking the commercial-item prescription.
Because the section is narrowly focused on clause and provision insertion, users should read it together with the underlying local area set-aside authority and the text of 52.226-3, 52.226-4, and 52.226-5 to understand the full eligibility and performance obligations.
Official Regulatory Text
(a) The contracting officer shall insert the provision at 52.226-3 , Disaster or Emergency Area Representation, in solicitations involving the local area set-aside. For commercial products and commercial services, see 12.301 (e)(5). (b) The contracting officer shall insert the clause at 52.226-4 , Notice of Disaster or Emergency Area Set-aside in solicitations and contracts involving local area set-asides. (c) The contracting officer shall insert the clause at 52.226-5 , Restrictions on Subcontracting Outside Disaster or Emergency Area, in all solicitations and contracts that involve local area set-asides.