52.226-5
Restrictions on Subcontracting Outside Disaster or Emergency Area. 52.226-5
Effective 10/01/2025 · Subpart 226
Full Text
As prescribed in, insert the following clause: (c) 26.206
Restrictions on Subcontracting Outside Disaster or Emergency Area (Nov 2007)
(End of clause)
The definitions of the following terms used in this clause are found in the Small Business Administration regulations at: cost of the contract, cost of contract performance incurred for personnel, cost of manufacturing, cost of materials, personnel, and subcontracting. (a) 13 CFR 125.6(e) Definitions.
The Contractor agrees that in performance of the contract in the case of a contract for- (b). At least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the Contractor or employees of other businesses residing or primarily doing business in the area designated in the clause at FAR, Notice of Disaster or Emergency Area Set-Aside; (1) Services (except construction) 52.226-4. The Contractor or employees of other businesses residing or primarily doing business in the set-aside area shall perform work for at least 50 percent of the cost of manufacturing the supplies, not including the cost of materials; (2) Supplies (other than procurement from a nonmanufacturer of such supplies). The Contractor will perform at least 15 percent of the cost of the contract, not including the cost of materials, with its own employees or employees of other businesses residing or primarily doing business in the set-aside area; or (3) General construction. The Contractor will perform at least 25 percent of the cost of the contract, not including the cost of materials, with its own employees or employees of other businesses residing or primarily doing business in the set-aside area. (4) Construction by special trade Contractors