FAR 52.226-3 — Disaster or Emergency Area Representation
Provides preferences for businesses located in or substantially affected by Presidentially-declared disaster or emergency areas in contracts supporting disaster response.
When This Clause Applies
Used in contracts for disaster response, emergency assistance, or major reconstruction in declared disaster areas.
What This Means for Contractors
Local businesses in the disaster area receive bid preferences; non-local businesses must subcontract to local firms or provide justification. FEMA and other agencies use this to maximize local economic impact of disaster response spending.
Common Pitfalls
- 1Inadequate local subcontracting plan
- 2Misrepresenting business location in the disaster area
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