An interim FAR rule was published Nov 7 to further awards to local firms of federal contracts for cleanup and assistance following a major disaster or emergency under the Robert Stafford Disaster Relief and Emergency Assistance Act. The Stafford Act provides that once the president declares a major disaster or emergency under the Act any award of an emergency response contract that is made to a firm located outside the area must be justified in writing and that work performed under an existing contract must be transitioned to a local firm. The rule establishes new criteria for what firms will be eligible for local set-asides. Under a new Section (c) of FAR 52.226-3 an offeror is considered to be residing or primarily doing business in the area if during the last 12 months (1) it had its main operating office in the area and (2) that office generated at least half of the offeror’s gross revenues and employed at least half of the offeror’s permanent employees. The new rule is asking for input as to whether a branch office should be eligible for local set asides when that branch office does business in the affected area (FED REG 63084).

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