FAR 52.226-4—Notice of Disaster or Emergency Area Set-Aside.
Plain-English Summary
FAR 52.226-4 is a solicitation clause used when the Government is setting aside an acquisition for businesses located in, or primarily doing business in, a designated disaster or emergency area. It tells offerors that only businesses meeting the geographic residency/primary-business requirement may compete, and that offers from all other businesses will not be considered. The clause also makes clear that this disaster or emergency area set-aside is separate from, and in addition to, any small business set-aside that may apply to the same contract. In practice, the clause is used to support local economic recovery after a disaster or emergency by directing contracting opportunities to affected-area businesses. The contracting officer must define the area with definite geographic boundaries, and the solicitation must clearly communicate that boundary so offerors can determine eligibility. For contractors, the clause means eligibility turns on location and business operations, not just size status, and nonqualifying offers are excluded from award consideration.
Key Rules
Geographic set-aside only
The solicitation is limited to businesses residing or primarily doing business in the specifically identified disaster or emergency area. The contracting officer must insert definite geographic boundaries so the set-aside area is clear and enforceable.
Ineligible offers are excluded
Offers from businesses outside the designated area shall not be considered. This is a hard eligibility rule, not a preference, so nonqualifying offerors are removed from award consideration.
Area must be precisely defined
The clause requires the contracting officer to fill in the blank with definite geographic boundaries. Vague references to a city, county, or region without clear limits can create ambiguity and protest risk.
Separate from small business set-asides
This set-aside is in addition to any small business set-aside in the contract. A firm must satisfy the disaster/emergency area requirement, and if a small business set-aside also applies, it must satisfy that requirement too.
Solicitation-level restriction
The clause operates at the solicitation stage by limiting who may submit acceptable offers. It is not merely a post-award performance preference; it controls competition before award.
Responsibilities
Contracting Officer
Insert the clause when prescribed, define the disaster or emergency area with definite geographic boundaries, and ensure the solicitation clearly states that only businesses residing or primarily doing business in that area may compete. The contracting officer must also evaluate offers consistently and exclude offers from businesses outside the designated area.
Offerors/Contractors
Determine whether they reside or primarily do business within the stated geographic boundaries before submitting an offer. They must understand that if they do not meet the area requirement, their offer will not be considered, even if they are otherwise responsible or competitively priced.
Agency
Use the set-aside only when appropriate to support disaster or emergency response and local economic recovery. The agency must ensure the acquisition strategy and solicitation terms align with the intended geographic restriction and any other applicable set-aside requirements.
Practical Implications
This clause can sharply narrow competition, so contractors should verify eligibility early rather than assume they can compete based on past work in the region.
The biggest drafting risk is an imprecise area description; unclear boundaries can lead to disputes over whether a business qualifies.
Because the clause is separate from small business status, a firm may be small but still ineligible if it is not located in or primarily doing business in the designated area.
Contracting officers should document the basis for the geographic designation and use plain, map-like boundary descriptions where possible to reduce ambiguity.
Offerors should be prepared to show where they reside or where their primary business operations are located if eligibility is questioned.
Official Regulatory Text
As prescribed in 26.206 (b) , insert the following clause: Notice of Disaster or Emergency Area set-Aside (Nov 2007) (a) Set-aside area. Offers are solicited only from businesses residing or primarily doing business in ________________________________________________ [ Contracting Officer to fill in with definite geographic boundaries. ] Offers received from other businesses shall not be considered. (b) This set-aside is in addition to any small business set-aside contained in this contract. (End of clause)