FAR Overhaul - Part 26
Part 26 - Other Socioeconomic Programs
Subpart 26.1 - Indian Incentive Program
Subpart 26.2 - Major Disaster or Emergency Assistance Activities
26.202-3 Solicitation provision and contract clauses.
Subpart 26.3 - Historically Black Colleges and Universities and Minority Institutions
26.301-2 Solicitation provision.
Subpart 26.4 - Food Donations to Nonprofit Organizations
Subpart 26.5 - Drug-Free Workplace
26.505-1 Suspension of payments, contract termination, and debarment and suspension actions.
Subpart 26.1 - Indian Incentive Program
26.101 Definitions.
As used in this subpart-
Indian means any person who is a member of any Indian tribe, band, group, pueblo, or community that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs (BIA) in accordance with 25 U.S.C. 1452(c) and any "Native" as defined in the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601).
Indian organization means the governing body of any Indian tribe or entity established or recognized by the governing body of an Indian tribe for the purposes of 25 U.S.C., Chapter 17.
Indian-owned economic enterprise means any Indian-owned (as determined by the Secretary of the Interior) commercial, industrial, or business activity established or organized for the purpose of profit, provided that Indian ownership constitutes not less than 51 percent of the enterprise.
Indian tribe means any Indian tribe, band, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act, that is recognized by the Federal Government as eligible for services from BIA in accordance with 25 U.S.C. 1452(c).
Interested party means a prime contractor or an actual or prospective offeror whose direct economic interest would be affected by the award of a subcontract or by the failure to award a subcontract.
26.102 Presolicitation.
Indian organizations and Indian-owned economic enterprises shall have the maximum practicable opportunity to participate in performing contracts awarded by Federal agencies. In fulfilling this requirement, the Indian Incentive Program allows an incentive payment equal to 5 percent of the amount paid to a subcontractor in performing the contract, if the contract so authorizes and the subcontractor is an Indian organization or Indian-owned economic enterprise.
26.102-1 Policy.
Agencies may allow an incentive payment to prime contractors equal to 5 percent of the amount paid to a subcontractor that is an Indian organization or Indian-owned economic enterprise (see 25 U.S.C. 1544).
26.102-2 Contract clause.
Contracting officers in civilian agencies may insert the clause at 52.226-1, Utilization of Indian Organizations and Indian-Owned Economic Enterprises, in solicitations and contracts if-
(a) In the opinion of the contracting officer, subcontracting possibilities exist for Indian organizations or Indian-owned economic enterprises; and
(b) Funds are available for any increased costs as described in paragraph (b)(2) of the clause at 52.226-1.
26.103 Postaward.
(a)Contracting officers and prime contractors may rely on the representation of an Indian organization or Indian-owned economic enterprise as to its eligibility, unless an interested party challenges its status or the contracting officer has independent reason to question that status.
(b)Contracting officers must refer challenges to the U.S. Department of the Interior, Bureau of Indian Affairs (BIA), Acquisition Management Director (https://www.bia.gov/as-ia/ocfo/acquisitions). The BIA will determine the eligibility and notify the contracting officer.
Subpart 26.2 - Major Disaster or Emergency Assistance Activities
26.201 Definitions.
As used in this subpart—
Emergency response contract means a contract with private entities that supports assistance activities in a major disaster or emergency area, such as debris clearance, distribution of supplies, or reconstruction.
Local firm means a private organization, firm, or individual residing or doing business primarily in a major disaster or emergency area.
Major disaster or emergency area means the area included in the official Presidential declaration(s) and any additional areas identified by the Department of Homeland Security. Major disaster declarations and emergency declarations are published in the Federal Register and are available at https://www.fema.gov/disasters/disaster/declarations.
26.202 Presolicitation.
(a) When awarding emergency response contracts during the term of a major disaster or emergency declaration by the President of the United States under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121, et seq.), preference shall be given, to the extent feasible and practicable, to local firms. Preference may be given through a local area set-aside or an evaluation preference.
(b) When using the authority under the Stafford Act, see the definitions of "micro-purchase threshold" and "simplified acquisition threshold" in 2.101 for the authority to use an increased micro-purchase threshold and simplified acquisition threshold.
26.202-1 Policy.
(a)Local area preference. Contracting officers must, when practicable, award emergency response contracts to local firms (see 42 U.S.C. 5150). To support this policy, contracting officers may—
(1)Set aside acquisitions to allow only local firms within a specific geographic area to compete (see part 6); or
(2)Use an evaluation preference.
(b)Transition of work.
(1)Agencies may award emergency response contracts before a major disaster or emergency occurs to ensure immediate relief is available. Structure such contracts to support timely transition of work to local firms after a major disaster or emergency area has been established.
(2)Agencies must transition emergency response contracts to local firms after a major disaster or emergency is declared, unless the head of the agency determines on an individual or class basis that is not practicable. However, agencies are not required to terminate or renegotiate existing contracts to make the transition.
26.202-2 Procedures.
(a)Elevated thresholds. When contracting for emergency response activities, the elevated micro-purchase and simplified acquisition thresholds in 2.101 apply.
(b)Non-local justification requirements. After the President declares a major disaster or emergency, agencies must justify spending any Federal funds on emergency response contracts not awarded to a local firm. Agencies must document such justification in writing, and contracting officers must keep it in the contract file.
(c)Area. A major disaster or emergency area may span counties in several neighboring States. When establishing a geographic area for a local firm set-aside, the contracting officer must stay within the declared area(s), but is not required to include all the counties within the declared areas(s).
(d)Disaster response registry. Contracting officers must consult the Disaster Response Registry via https://www.sam.gov to determine contractor availability for emergency response activities inside the United States and outlying areas.
26.202-3 Solicitation provision and contract clauses.
(a)Insert the provision at 52.226-3, Disaster or Emergency Area Representation, and fill in the geographic area in paragraph (a), in solicitations involving local area set-asides.
(b)Insert the clause at 52.226-4, Notice of Disaster or Emergency Area Set-aside, and fill in the geographic area in paragraph (a), in solicitations and contracts involving local area set-asides.
(c)Insert the clause at 52.226-5, Restrictions on Subcontracting Outside Disaster or Emergency Area, in solicitations and contracts involving local area set-asides.
Subpart 26.3 - Historically Black Colleges and Universities and Minority Institutions
26.301 Presolicitation.
26.301-1 General.
(a)As established in Executive Order 12928 of September 16, 1994, agencies should promote participation of Historically Black Colleges and Universities and Minority Institutions in Federal procurement.
(b)This subpart does not apply to contracts performed entirely outside the United States and its outlying areas.
26.301-2 Solicitation provision.
(a)Insert the provision at 52.226-2, Historically Black College or University and Minority Institution Representation, in solicitations that exceed the micro-purchase threshold, and that are for research, studies, supplies, or services of the type normally acquired from higher educational institutions.
Subpart 26.4 - Food Donations to Nonprofit Organizations
26.401 Definitions.
As used in this subpart-
Apparently wholesome food means food that meets all quality and labeling standards imposed by Federal, State, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions.
Excess food means food that-
(1) Is not required to meet the needs of the executive agencies; and
(2) Would otherwise be discarded.
Food-insecure means inconsistent access to sufficient, safe, and nutritious food.
Nonprofit organization means any organization that is-
(1)Exempt from tax under section 501(a) of that Code.
(2)Described in section 501(c) of the Internal Revenue Code of 1986; andDescribed in section 501(c) of the Internal Revenue Code of 1986; and
26.402 Presolicitation.
The Government encourages executive agencies and their contractors, to the maximum extent practicable and safe, to donate excess apparently wholesome food to nonprofit organizations that provide assistance to food-insecure people in the United States.
26.402-1 Policy.
(a)The Government encourages agencies and their contractors to donate excess, apparently wholesome food to nonprofit organizations helping food-insecure people in the United States (see 42 U.S.C. 1792).
(b)The following limitations apply—
(1) Costs. Agencies may not assume responsibility for the costs and logistics of collecting, transporting, maintaining the safety of, or distributing excess food donations.
(2) Liability. An agency (including an agency that enters into a contract with a contractor) and any contractor making food donations following this policy is exempt from civil and criminal liability to the extent provided under 42 U.S.C. 1791.
26.402-2 Contract clause.
Insert the clause at 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations, in solicitations and contracts greater than $30,000 for providing, serving, or selling food in the United States.
Subpart 26.5 - Drug-Free Workplace
26.501 Applicability.
This subpart applies to contracts, except those-
(a) At or below the simplified acquisition threshold; however, the requirements of this subpart apply to all contracts of any value awarded to an individual;
(b) For commercial products and commercial services (see part 12);
(c) Performed outside the United States and its outlying areas or any part of a contract performed outside the United States and its outlying areas;
(d)Awarded by law enforcement agencies, if the head of the law enforcement agency involved determines that applying this subpart would be inappropriate in connection with the law enforcement agency's undercover operations; or
(e) Where application would be inconsistent with the international obligations of the United States or with the laws and regulations of a foreign country.
26.502 Definitions.
As used in this subpart-
Controlled substance eans a controlled substance in schedules I through V of section 202 of the Controlled Substances Act (21 U.S.C. 812), and as further defined in regulation at 21 CFR 1308.11-1308.15.
Conviction means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes.
Criminal drug statute means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, possession, or use of any controlled substance.
Employee means an employee of a contractor directly engaged in performing work under a Government contract. "Directly engaged" includes all direct cost employees and any other contractor employee who has other than a minimal impact or involvement in contract performance.
Individual means an offeror or contractor that has no more than one employee including the offeror or contractor.
26.503 Presolicitation.
26.503-1 Contract clause.
Insert the clause at 52.226-7, Drug-Free Workplace, in solicitations and contracts except as provided in 26.501.
26.504 Evaluation, and award.
26.504-1 Policy.
(a) Contracting officers may not consider an offeror, other than an individual, a responsible source unless it agrees to provide a drug-free workplace according to the clause at 52.226-7.
(b) Contracting officers may not award a contract of any dollar value to an individual unless that individual agrees to not engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance while performing the contract.
26.505 Postaward.
26.505-1 Suspension of payments, contract termination, and debarment and suspension actions.
(a) Contracting officers may suspend contract payments when they determine in writing that there is adequate evidence of any of the causes at paragraph (d) of this section.
(b) Contracting officers may terminate contracts for default when they determine in writing any of the causes at paragraph (d) of this section exist.
(c) When a contracting officer initiates action under paragraph (a) or (b) of this section, they must refer the case to the agency suspending and debarring official (see part 9).
(d) The specific causes for suspension of contract payments, termination of a contract for default, or suspension and debarment are—
(1) The contractor has failed to comply with the requirements of the clause at 52.226-7, Drug-Free Workplace; or
(2) The number of contractor employees convicted of violations of criminal drug statutes occurring in the workplace indicates that the contractor has failed to make a good faith effort to provide a drug-free workplace.
(e) An agency head may waive a suspension of payments, termination of contract, or suspension or debarment of a contractor under this section, if considered necessary to prevent a severe disruption of the agency operation to the detriment of the Government or the general public. The agency head cannot delegate the waiver authority.
Subpart 26.6 - Texting While Driving
26.601 Presolicitation.
26.601-1 Policy.
Agencies must encourage contractors and subcontractors to adopt and enforce policies that ban text messaging while driving-
(a) Company-owned or rented vehicles or Government-owned vehicles; or
(b) Privately-owned vehicles when on official Government business or when performing any work for or on behalf of the Government.
26.602 Contract clause.
The contracting officer shall insert the clause at 52.226-8, Encouraging Contractor Policies to Ban Text Messaging While Driving, in all solicitations and contracts.
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Caveat
The FAR Council created deviations will include clauses and provisions currently required by statute and Executive Order. OMB and the FAR Council will work with Congress to recommend statutory changes and with the White House to recommend rescission of requirements stemming from prior Executive Orders that are inconsistent with the goals of Executive Order 14275 to stop the inefficient use of American taxpayer dollars in federal procurement. Any changes to Executive Orders or statute will be reflected when the Revolutionary FAR Overhaul turns to rule-making.