FAR Part 26: Other Socioeconomic Programs

In plain English

FAR Part 26 covers several socioeconomic programs that encourage contractors to support Indian organizations, local firms in disaster areas, historically black colleges and universities, food donation, drug-free workplaces, and safe driving. It matters because these programs can create subcontracting opportunities, set-asides, evaluation preferences, and specific contract clauses that affect how you bid and perform.

Key rules

• The Indian Incentive Program allows an incentive payment equal to 5 percent of the amount paid to a subcontractor if the subcontractor is an Indian organization or Indian-owned economic enterprise and the contract authorizes it. (26.102)
• Contracting officers may set aside emergency response contracts for local firms within a specific geographic area in a major disaster or emergency area. (26.202-1)
• When awarding emergency response contracts after a Presidential disaster declaration, preference shall be given to local firms to the extent feasible and practicable. (26.202)
• If an emergency response contract is not awarded to a local firm, the agency must justify in writing the expenditure of Federal funds in the contract file. (26.204)
• Contracting officers must consult the Disaster Response Registry on SAM.gov to find contractors for disaster relief activities. (26.205)
• The Government encourages contractors to donate excess apparently wholesome food to nonprofit organizations that help food-insecure people. (26.402)
• Contractors (other than individuals) must agree to provide a drug-free workplace by publishing a statement and establishing an ongoing drug-free awareness program to be considered responsible for contracts over the simplified acquisition threshold. (26.504)
• Agencies shall encourage contractors and subcontractors to adopt and enforce policies that ban text messaging while driving on official Government business or in Government vehicles. (26.604)

Who does what

In practice

• If you are a local firm in a disaster area, you may get a set-aside or evaluation preference for emergency response contracts.
• If you subcontract with Indian organizations or Indian-owned economic enterprises, you may be eligible for a 5 percent incentive payment if the contract authorizes it.
• If you have a contract over the simplified acquisition threshold (and not exempt), you must have a drug-free workplace program to be considered responsible.
• If you provide food services, you are encouraged to donate excess wholesome food and may have the clause 52.226-6 in your contract.

Common pitfalls

• Assuming the Indian Incentive Program applies automatically: it only applies if the contract specifically authorizes it and funds are available.
• Ignoring the Disaster Response Registry: contracting officers must consult it, so ensure your SAM.gov registration is current if you want disaster work.
• Failing to justify in writing when not using a local firm for disaster response: this is required and can cause problems if not done.
• Overlooking the drug-free workplace requirement: it applies to contracts above the simplified acquisition threshold unless an exception applies, and noncompliance can affect responsibility.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.