§5150 — Title 42 The Public Health and Welfare | U.S. Code

Summary

Federal disaster spending for cleanup, supply delivery, rebuilding, and other help that can be done by contract must, when possible, go first to people and businesses that live or mainly work in the disaster area. This rule does not limit the use of Department of Defense resources, and contracts can be reserved for bidders from a specific local area. If federal money is given to a non‑local contractor, the contract file must include a written reason. After the President declares an emergency or major disaster, agencies should shift work under existing contracts to local firms unless the agency head says it is not feasible. Agency leaders should make rules to help follow these steps. Agencies do not have to break or reopen contracts made before the disaster.

Title 42, §5150

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)In the expenditure of Federal funds for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities which may be carried out by contract or agreement with private organizations, firms, or individuals, preference shall be given, to the extent feasible and practicable, to those organizations, firms, and individuals residing or doing business primarily in the area affected by such major disaster or emergency.

(2)This subsection shall not be considered to restrict the use of Department of Defense resources under this chapter in the provision of assistance in a major disaster.

(3)In carrying out this section, a contract or agreement may be set aside for award based on a specific geographic area.

(b)(1)Any expenditure of Federal funds for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities which may be carried out by contract or agreement with private organizations, firms, or individuals, not awarded to an organization, firm, or individual residing or doing business primarily in the area affected by such major disaster shall be justified in writing in the contract file.

(2)Following the declaration of an emergency or major disaster, an agency performing response, relief, and reconstruction activities shall transition work performed under contracts in effect on the date on which the President declares the emergency or major disaster to organizations, firms, and individuals residing or doing business primarily in any area affected by the major disaster or emergency, unless the head of such agency determines that it is not feasible or practicable to do so.

(3)The head of a Federal agency, as feasible and practicable, shall formulate appropriate requirements to facilitate compliance with this section.

(c)Nothing in this section shall be construed to require any Federal agency to breach or renegotiate any contract in effect before the occurrence of a major disaster or emergency.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (a)(2), was in the original “this Act”, meaning Pub. L. 93–288, May 22, 1974, 88 Stat. 143. For complete classification of this Act to the Code, see

Short Title

note set out under section 5121 of this title and Tables.

Prior Provisions

A prior section 5150, Pub. L. 93–288, title III, § 307, formerly § 310, May 22, 1974, 88 Stat. 150; renumbered § 307 and amended Pub. L. 100–707, title I, § 105(e), Nov. 23, 1988, 102 Stat. 4691; Pub. L. 109–218, § 2, Apr. 20, 2006, 120 Stat. 333, provided for the use of local firms and individuals for major disaster or emergency assistance activities, prior to repeal by Pub. L. 109–295, title VI, § 694, Oct. 4, 2006, 120 Stat. 1459. A prior section 307 of Pub. L. 93–288 was renumbered section 304 by Pub. L. 100–707 and is classified to section 5147 of this title.

Amendments

2006—Subsec. (b)(3). Pub. L. 109–347 added par. (3).

§5150 Use of local firms and individuals