PART 26—OTHER SOCIOECONOMIC PROGRAMS Authority 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113. Source: 56 FR 41737, Aug. 22, 1991, unless otherwise noted. Note: This part has been created to facilitate promulgation of additional FAR and agency level socioeconomic coverage which properly fall under FAR Subchapter D—Socioeconomic Programs, but neither implements nor supplements existing FAR Parts 19 or 22 through 25. Subpart 26.1—Indian Incentive Program 26.100 Scope of subpart. 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. 26.101 Definitions. As used in this subpart— Indian Indian organization Indian-owned economic enterprise Indian tribe Interested party [56 FR 41737, Aug. 22, 1991, as amended at 61 FR 39210, July 26, 1996; 65 FR 24323, Apr. 25, 2000] 26.102 Policy. 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. [61 FR 39211, July 26, 1996] 26.103 Procedures. (a) Contracting officers and prime contractors, acting in good faith, 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) In the event of a challenge to the representation
of a subcontractor, the contracting officer shall refer the
matter to the U.S. Department of the Interior, Bureau of
Indian Affairs (BIA), Attn: Acquisition Management
Director, 12220 Sunrise Valley Drive, Reston, VA 20191.
The BIA will determine the eligibility and notify the
contracting officer. (c) The BIA will acknowledge receipt of the request from the contracting officer within 5 working days. Within 45 additional working days, BIA will advise the contracting officer, in writing, of its determination. (d) The contracting officer will notify the prime contractor upon receipt of a challenge. (1) To be considered timely, a challenge shall— (i) Be in writing; (ii) Identify the basis for the challenge; (iii) Provide detailed evidence supporting the claim; and (iv) Be filed with and received by the contracting officer prior to award of the subcontract in question. (2) If the notification of a challenge is received by the prime contractor prior to award, it shall withhold award of the subcontract pending the determination by BIA, unless the prime contractor determines, and the contracting officer agrees, that award must be made in order to permit timely performance of the prime contract. (3) Challenges received after award of the subcontract shall be referred to BIA, but the BIA determination shall have prospective application only. (e) If the BIA determination is not received within the prescribed time period, the contracting officer and the prime contractor may rely on the representation of the subcontractor. (f) Subject to the terms and conditions of the contract and the availability of funds, contracting officers shall authorize an incentive payment of 5 percent of the amount paid to the subcontractor. Contracting officers shall seek funding in accordance with agency procedures. [56 FR 41737, Aug. 22, 1991, as amended at 57 FR 20377, May 12, 1992; 61 FR 39211, July 26, 1996; 62 FR 40236, July 25, 1997; 64 FR 10532, Mar. 4, 1999; 81 FR 67781, Sept. 30, 2016] 26.104 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. [65 FR 24323, Apr. 25, 2000] Subpart 26.2—Major Disaster or Emergency Assistance Activities Source: 72 FR 63087, Nov. 7, 2007, unless otherwise noted. 26.200 Scope of subpart. This subpart implements the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5150), which provides a preference for local organizations, firms, and individuals when contracting for major disaster or emergency assistance activities. 26.201 Definitions. Emergency response contrac Local firm Major disaster or emergency area Federal Register https://www.fema.gov/disasters/disaster-declarations [72 FR 63087, Nov. 7, 2007, as amended at 86 FR 31075, Jun. 10, 2021] 26.202 Local area preference. (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. (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. [72 FR 63087, Nov. 7, 2007, as amended at 84 FR 19837, May 6, 2019] 26.202-1 Local area set-aside. The contracting officer may set aside solicitations to allow only local firms within a specific geographic area to compete ( see (a) The contracting officer, in consultation with the requirements office, shall define the specific geographic area for the local set-aside. (b) A major disaster or emergency area may span counties in several contiguous States. The set-aside area need not include all the counties in the declared disaster/emergency area(s), but cannot go outside it. (c) The contracting officer shall also determine whether a local area set-aside should be further restricted to small business concerns in the set-aside area (see Part 19). [72 FR 63087, Nov. 7, 2007, as amended at 76 FR 18312, Apr. 1, 2011] 26.202-2 Evaluation preference. The contracting officer may use an evaluation preference, when authorized in agency regulations or procedures. [73 FR 53996, Sept. 17, 2008] 26.203 Transition of work. (a) In anticipation of potential emergency response requirements, agencies involved in response planning should consider awarding emergency response contracts before a major disaster or emergency occurs to ensure immediate response and relief. These contracts should be structured to respond to immediate emergency response needs, and should not be structured in any way that may inhibit the transition of emergency response work to local firms ( e.g. (b) 42 U.S.C. 5150(b)(2) requires that agencies performing response, relief, and reconstruction activities transition to local firms any work performed under contracts in effect on the date on which the President declares a major disaster or emergency, unless the head of such agency determines in writing that it is not feasible or practicable. This determination may be made on an individual contract or class basis. The written determination shall be prepared within a reasonable time given the circumstances of the emergency. (c) In effecting the transition, agencies are not required to terminate or renegotiate existing contracts. Agencies should transition the work at the earliest practical opportunity after consideration of the following: (1) The potential duration of the disaster or emergency. (2) The severity of the disaster or emergency. (3) The scope and structure of the existing contract, including its period of performance and the milestone(s) at which a transition is reasonable ( e.g. (4) The potential impact of a transition, including safety, national defense, and mobilization. (5) The expected availability of qualified local offerors who can provide the products or services at a reasonable price. (d) The agency shall transition the work to local firms using the local area set-aside identified in 26.202-1. 26.204 Justification for expenditures to other than local firms. (a) 42 U.S.C. 5150(b)(1) requires that, subsequent to any Presidential declaration of a major disaster or emergency, any expenditure of Federal funds, under an emergency response contract not awarded to a local firm, must be justified in writing in the contract file. The justification should include consideration for the scope of the major disaster or emergency and the immediate requirements or needs of supplies and services to ensure life is protected, victims are cared for, and property is protected. (b) The justification may be made on an individual or class basis. The contracting officer approves the justification. 26.205 Disaster Response Registry. (a) Contracting officers shall consult the Disaster Response Registry via https://www.sam.gov (b) A list of prospective vendors voluntarily participating in the Disaster Response Registry can be retrieved using the System for Award Management (SAM) search tool, which can be accessed via https://www.sam.gov, [74 FR 52849, Oct. 14, 2009, as amended at 77 FR 188, Jan. 3, 2012; 78 FR 37679, June 21, 2013; 83 FR 48697, Sept. 26, 2018; 84 FR 19847, May 6, 2019] 26.206 Solicitation provision and contract clauses. (a) The contracting officer shall insert the provision at 52.226-3, Disaster or Emergency Area Representation, in solicitations involving the local area set-aside. For commercial products and commercial services, see 12.301(e)(5). (b) The contracting officer shall insert the clause at 52.226-4, Notice of Disaster or Emergency Area Set-aside in solicitations and contracts involving local area set-asides. (c) The contracting officer shall insert the clause at 52.226-5, Restrictions on Subcontracting Outside Disaster or Emergency Area, in all solicitations and contracts that involve local area set-asides. [72 FR 63087, Nov. 7, 2007. Redesignated at 74 FR 52849, Oct. 14, 2009; 86 FR 61028, Nov. 4, 2021; 88 FR 53751, Aug. 8, 2023] Subpart 26.3—Historically Black Colleges and Universities and Minority Institutions Source: 62 FR 12703, Mar. 17, 1997, unless otherwise noted. 26.300 Scope of subpart. (a) This subpart implements Executive Order 12928 of September 16, 1994, which promotes participation of Historically Black Colleges and Universities (HBCUs) and Minority Institutions (MIs) in Federal procurement. (b) This subpart does not pertain to contracts performed entirely outside the United States and its outlying areas. [62 FR 12703, Mar. 17, 1997, as amended at 68 FR 28083, May 22, 2003] 26.301 [Reserved] 26.302 General policy. It is the policy of the Government to promote participation of HBCUs and MIs in Federal procurement. 26.303 Data collection and reporting requirements. Executive Order 12928 requires periodic reporting to the President on the progress of departments and agencies in complying with the laws and requirements mentioned in the Executive order. 26.304 Solicitation provision. Insert the provision at 52.226-2, Historically Black College or University and Minority Institution Representation, in solicitations exceeding the micro-purchase threshold, for research, studies, supplies, or services of the type normally acquired from higher educational institutions. [64 FR 36224, July 2, 1999, as amended at 79 FR 61751, Oct. 14, 2014] Subpart 26.4—Food Donations to Nonprofit Organizations Source: 74 FR 11831, Mar. 19, 2009, unless otherwise noted. 26.400 Scope of subpart. This section implements the Federal Food Donation Act of 2008 (42 U.S.C. 1792). [74 FR 11831, Mar. 19, 2009, as amended at 79 FR 24210, Apr. 29, 2014] 26.401 Definitions. As used in this subpart— Apparently wholesome food Excess food (1) Is not required to meet the needs of the executive agencies; and (2) Would otherwise be discarded. Food-insecure Nonprofit organization (1) Described in section 501(c) of the Internal Revenue Code of 1986; and (2) Exempt from tax under section 501(a) of that Code. 26.402 Policy. 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. 26.403 Procedures. (a) In accordance with the Federal Food Donation Act of 2008 an executive agency shall comply with the following: (1) Encourage donations. (2) Costs. (ii) The Government will not reimburse any costs incurred by the contractor against this contract or any other contract for the donation of Federal excess foods. Any costs incurred for Federal excess food donations are not considered allowable public relations costs in accordance with 31.205-1(f)(8). (3) Liability. [74 FR 11831, Mar. 19, 2009, as amended at 79 FR 24210, Apr. 29, 2014] 26.404 Contract clause. Insert the clause at 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations, in solicitations and contracts greater than $35,000 for the provision, service, or sale of food in the United States. [74 FR 11831, Mar. 19, 2009, as amended at 85 FR 62489, Oct. 2, 2020; 90 FR 41879, Aug. 27, 2025] Subpart 26.5—Drug-Free Workplace Source: 54 FR 4968, Jan. 31, 1989; 55 FR 21707, May 25, 1990. Redesignated at 89 FR 30244, Apr. 22, 2024 unless otherwise noted. 26.500 Scope of subpart. This subpart implements 41 U.S.C. chapter 81, Drug-Free Workplace. [79 FR 24208, Apr. 29, 2014. Redesignated at 89 FR 30244, Apr. 22, 2024] 26.501 Applicability. This subpart applies to contracts, including contracts with 8(a) contractors under FAR subpart 19.8 and modifications that require a justification and approval (see subpart 6.3), except contracts— (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 the acquisition of 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) By law enforcement agencies, if the head of the law enforcement agency or designee involved determines that application of 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. [54 FR 4968, Jan. 31, 1989, as amended at 55 FR 21707, May 25, 1990; 60 FR 34758, July 3, 1995; 60 FR 48248, Sept. 18, 1995; 68 FR 28082, May 22, 2003; 86 FR 61028, Nov. 4, 2021. Redesignated at 89 FR 30244, Apr. 22, 2024] 26.502 Authority. 41 U.S.C. chapter 81, Drug-Free Workplace. [79 FR 24208, Apr. 29, 2014. Redesignated at 89 FR 30244, Apr. 22, 2024] 26.503 Definitions. As used in this subpart— Controlled substance Conviction Criminal drug statute Employee Directly engaged Individual [54 FR 4968, Jan. 31, 1989, as amended at 55 FR 21707, May 25, 1990; 66 FR 2130, Jan. 10, 2001.Redesignated at 89 FR 30244, Apr. 22, 2024] 26.504 Policy. (a) No offeror other than an individual shall be considered a responsible source (see 9.104-1(g) and 19.602-1(a)(2)(i)) for a contract that exceeds the simplified acquisition threshold, unless it agrees that it will provide a drug-free workplace by— (1) Publishing a statement notifying its employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the contractor's workplace, and specifying the actions that will be taken against employees for violations of such prohibition; (2) Establishing an ongoing drug-free awareness program to inform its employees about— (i) The dangers of drug abuse in the workplace; (ii) The contractor's policy of maintaining a drug-free workplace; (iii) Any available drug counseling, rehabilitation, and employee assistance programs; and (iv) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (3) Providing all employees engaged in performance of the contract with a copy of the statement required by paragraph (a)(1) of this section; (4) Notifying all employees in writing in the statement required by subparagraph (a)(1) of this section, that as a condition of employment on a covered contract, the employee will— (i) Abide by the terms of the statement; and (ii) Notify the employer in writing of the employee's conviction under a criminal drug statute for a violation occurring in the workplace no later than 5 days after such conviction; (5) Notifying the contracting officer in writing within 10 days after receiving notice under subdivision (a)(4)(ii) of this section, from an employee or otherwise receiving actual notice of such conviction. The notice shall include the position title of the employee; (6) Within 30 days after receiving notice under subparagraph (a)(4) of this section of a conviction, taking one of the following actions with respect to any employee who is convicted of a drug abuse violation occurring in the workplace: (i) Taking appropriate personnel action against such employee, up to and including termination. (ii) Requiring such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency. (7) Making a good faith effort to maintain a drug-free workplace through implementation of subparagraphs (a)(1) through (a)(6) of this section. (b) No individual shall be awarded a contract of any dollar value unless that individual agrees not to engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance while performing the contract. (c) For a contract of 30 days or more performance duration, the contractor shall comply with the provisions of paragraph (a) of this section within 30 days after contract award, unless the contracting officer agrees in writing that circumstances warrant a longer period of time to comply. Before granting such an extension, the contracting officer shall consider such factors as the number of contractor employees at the worksite, whether the contractor has or must develop a drug-free workplace program, and the number of contractor worksites. For contracts of less than 30 days performance duration, the contractor shall comply with the provisions of paragraph (a) of this section as soon as possible, but in any case, by a date prior to when performance is expected to be completed. [54 FR 4968, Jan. 31, 1989, as amended at 55 FR 21707, May 25, 1990; 55 FR 38517, Sept. 18, 1990; 60 FR 34758, July 3, 1995; 61 FR 69292, Dec. 31, 1996. Redesignated and amended at 89 FR 30244, 30245, Apr. 22, 2024] 26.505 Suspension of payments, termination of contract, and debarment and suspension actions. (a) After determining in writing that adequate evidence to suspect any of the causes at paragraph (d) of this section exists, the contracting officer may suspend contract payments in accordance with the procedures at 32.503-6(a)(1). (b) After determining in writing that any of the causes at paragraph (d) of this section exists, the contracting officer may terminate the contract for default. (c) Upon initiating action under paragraph (a) or (b) of this section, the contracting officer shall refer the case to the agency suspending and debarring official, in accordance with agency procedures, pursuant to subpart 9.4. (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) A determination under this section to suspend contract payments, terminate a contract for default, or debar or suspend a contractor may be waived by the agency head for a particular contract, in accordance with agency procedures, only if such waiver is necessary to prevent a severe disruption of the agency operation to the detriment of the Federal Government or the general public (see subpart 9.4). The waiver authority of the agency head cannot be delegated. [54 FR 4968, Jan. 31, 1989, as amended at 55 FR 21708, May 25, 1990; 61 FR 69292, Dec. 31, 1996. Redesignated and amended at 89 FR 30244, 30245, Apr. 22, 2024; 90 FR 516, Jan. 3, 2025] 26.506 Contract clause. Except as provided in 26.501, insert the clause at 52.226-7, Drug-Free Workplace, in solicitations and contracts. [68 FR 28082, May 22, 2003. Redesignated and amended at 89 FR 30244, 30245, Apr. 22, 2024] Subpart 26.6—Encouraging Contractor Policies to Ban Text Messaging While Driving Source: 75 FR 60265, Sept. 29, 2010. Redesignated at 89 FR 30245, Apr. 22, 2024, unless otherwise noted. 26.601 Purpose. This subpart implements the requirements of the Executive Order (E.O.) 13513, dated October 1, 2009 (74 FR 51225, October 6, 2009), Federal Leadership on Reducing Text Messaging while Driving. 26.602 Applicability. This subpart applies to all solicitations and contracts. 26.603 Definitions. As used in this subpart— Driving (2) Does not include operating a motor vehicle with or without the motor running when one has pulled over to the side of, or off, an active roadway and has halted in a location where one can safely remain stationary. Text messaging 26.604 Policy. Agencies shall 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. 26.605 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. [76 FR 39241, July 5, 2011. Redesignated and amended at 89 FR 30245, Apr. 22, 2024]