FAR Part 26

Question 1

Part 26

Answer 1

OTHER SOCIOECONOMIC PROGRAMS

This part addresses socioeconomic programs not addressed in FAR part 29 or other FAR parts. It includes the Indian Incentive Program, Major Disaster or Emergency Assistance Activities, Historically Black Colleges and Universities and Minority Institutions, and Food Donations to Nonprofit Organizations.

Question 2

FAR 26.1 INDIAN INCENTIVE PROGRAM

Answer 2

This subpart implements 25 U.S.C.1544, which provides an incentive to prime contractors that use Indian organizations and Indian-owned economic
enterprises as subcontractors.

Question 3

$1544. ADDITIONAL COMPENSATION TO CONTRACTORS OF FEDERAL AGENCY

Answer 3

Notwithstanding any other provision of law, a contractor of a federal agency under any Act of Congress may be allowed an additional amount of compensation equal to 5 percent of the amount paid, or to be paid, to a subcontractor or supplier, in carrying out the contract if such subcontractor or supplier is an Indian organization or Indian-owned economic enterprise as defined in this chapter.

Question 4

INDIAN

Answer 4

means a member of any Indian tribe or community recognized by the government as eligible for services from the Bureau of Indian Affairs (BIA) and any “Native” as defined in the Alaska Native
Claims Settlement Act.

Question 5

INDIAN ORGANIZATION

Answer 5

means the governing body of any Indian.

Question 6

INDIAN-OWNED ECONOMIC ENTERPRISE

Answer 6

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.

Question 7

INDIAN TRIBE

Answer 7

means any Indian tribe or community, including native villages and native groups as defined in the Alaska Native Claims Settlement Act, recognized by the government as eligible for services from BIA.

Question 8

INTERESTED PARTY

Answer 8

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.

Question 9

The policy is intended to maximize the participation
of Indian organizations and Indian-owned economic enterprises in performing

Answer 9

contracts awarded by the government. 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 subcontractor is an Indian organization or Indian-owned economic enterprise.

Question 10

Contracting officers and prime contractors may rely on the representation of an Indian organization or Indian-owned economic enterprise as to its eligibility, unless

Answer 10

an interested party timely challenges its status, or the contracting officer has an independent reason to question that status.

The contracting officer must notify the prime contractor upon receipt of a challenge. To be considered timely, a challenge must be in writing, identify the basis of the challenge, provide detailed evidence supporting the claim, and be file with and received by the contracting officer prior to award of the subcontract in question.

Challenges to the representation are to be referredto the BIA, who will determine eligibility and notify the contracting officer. When the prime contractor isnotified prior to award, it must withhold award of itssubcontract pending the BIA investigation. Challengesreceived after award are also forwarded to the BIA forinformation only.

Question 11

When the contracting officer feels subcontracting possibilities exist for Indian organizations or Indian-owned economic enterprises,

Answer 11

and funds are available for the increased costs of the 5 percent incentive payment, clause 52.226-1 should be inserted into the related solicitation and contract.

Question 12

26.2 MAJOR DISASTER OR EMERGENCY
ASSISTANCE ACTIVITIES

A. SCOPE (FAR 26.200)

Answer 12

This subpart implements the Robert I. StaffordDisaster Relief and Emergency Assistance Act (42U.S.C. 5150), which provides a preference forlocal organizations, firms, and individuals whencontracting for major disaster or emergencyassistance activities.

Question 13

EMERGENCY RESPONSE CONTRACT

Answer 13

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.

Question 14

LOCAL FIRM

Answer 14

means a private organization, firm, or individual residing or doing business primarily in a major disaster or emergency area.

Question 15

MAJOR DISASTER OR EMERGENCY AREA

Answer 15

means the area included in the official presidential declaration(s) and any additional areas identified by the Department of Homeland Security. Major disaster declarations andemergency declarations are published in the Federal Register and are available at FEMA’s website.

Question 16

26.202 LOCAL AREA PREFERENCE
When awarding emergency response contracts during a major disaster or emergency presidential declaration,

Answer 16

preference should be given to local firms where feasible and practicable.

The preference may take the form of an evaluation preference or a local-area set-aside.

The contracting officer in consultation with the requirements office should define the geographic area for the local set-aside, as well as whether to restrict the set-aside to local small businesses.

Increased micro-purchase and simplified acquisition thresholds are also available (see 2.101 definitions).

Question 17

26.203 TRANSITION OF WORK
Although agencies are encouraged to anticipate emergency response requirements prior to actual
emergencies, they should

Answer 17

be structured to allow for transition of work to local firms during an emergency, where feasible and practical and as soon as possible.

Agencies are not required to cancel or renegotiate existing contracts.

Question 18

26.204 JUSTIFICATION FOR EXPENDITURES
TO OTHER THAN LOCAL FIRMS
During an emergency, any contracts not awarded to a local firm must be justified

Answer 18

in writing. The justification should include consideration for the scope of the disaster or emergency and the immediate requirements needed to ensure life is protected, victims are cared for, and property is protected. The justification may be on an individual or class basis and is approved by the contracting officer.

Question 19

26.205 DISASTER RESPONSE REGISTRY
Sam.gov contains a Disaster Response Registry available to contracting officers

Answer 19

to determine theavailability of contractors for debris removal and other relief activities.

Question 20

26.3 HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCU) AND MINORITY
INSTITUTIONS

A. SCOPE (FAR 26.300)

This subpart reflects the policy of the government to promote participation of HBCUs and Minority Institutions in federal procurement performed inside the United States.

Answer 20

Executive Order 12928 describes specific reporting, goals, and other requirements of government agencies

Question 21

26.304 SOLICITATION PROVISION.
52.226-2 will be inserted

Answer 21

in solicitations that exceed the micro-purchase threshold for research, studies, supplies, or services of a type normally acquired from higher educational institutions.

It provides the above definitions and requires offeror representation that it is or is not an HBCU or Minority institution.

Question 22

B. FOOD DONATIONS TO NONPROFIT ORGANIZATIONS (FAR 26.400)

This subpart implements the Federal Food Donation Act of 2008 (42 U.S.C. 1792) intended

Answer 22

to encourage executive agencies and their contractors to donate excess wholesome food to nonprofit organizations that provide assistance to food-insecure people in the U.S.

Question 23

APPARENTLY WHOLESOME FOOD

Answer 23

means food that meets all quality and labeling standards imposed byfederal, 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.

Question 24

EXCESS FOOD

Answer 24

means food that is not required to meet the needs of the executive agencies and would otherwise be discarded.

Question 25

FOOD-INSECURE

Answer 25

means inconsistent access to sufficient, safe, and nutritious food.

Question 26

NONPROFIT
ORGANIZATION

Answer 26

means any organization that is described in section 501(c) of the
Internal Revenue Code of 1986 and is exempt from tax under section 501(a) of that Code.
26.403

Question 27

In solicitations and contracts greater than $30,000
for the provision, service, or sale of food in the U.S., contracting officers should

Answer 27

insert clause 52.226-6 to encourage food donation by contractors. In the event a contractor donates food, agencies are not to assume any costs or logistics involved, reimburse any costs, or all any costs to be incurred.