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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.219-2 Equal Low Bids.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This provision applies only to small business concerns and explains how labor surplus area (LSA) status can affect who gets a contract when bids are tied. If a bidder wants priority consideration in a tie, it must identify the LSA where manufacturing or production costs exceed 50 percent of the contract price. Failing to identify the LSA means losing that priority, and if the bidder wins because of it, it must perform the contract as an LSA concern.

Applies to: Small business concerns bidding on contracts

What it requires

  • Identify the labor surplus area (LSA) in the space provided if you wish to be considered for priority in a tie bid
  • Ensure the LSA identified is one where manufacturing or production costs (by you or first-tier subcontractors) amount to more than 50 percent of the contract price
  • If awarded a contract due to LSA priority and you would not have otherwise received award, perform the contract or cause it to be performed in accordance with the obligations of an LSA concern

Key terms: small business concern · labor surplus area (LSA) · tie bids · priority consideration · first-tier subcontractors

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 19.309(b), insert the following provision:

Equal Low Bids (OCT 1995)

(a) This provision applies to small business concerns only.

(b) The bidder's status as a labor surplus area (LSA) concern may affect entitlement to award in case of tie bids. If the bidder wishes to be considered for this priority, the bidder must identify, in the following space, the LSA in which the costs to be incurred on account of manufacturing or production (by the bidder or the first-tier subcontractors) amount to more than 50 percent of the contract price.

(c) Failure to identify the labor surplus areas as specified in paragraph (b) of this provision will preclude the bidder from receiving priority consideration. If the bidder is awarded a contract as a result of receiving priority consideration under this provision and would not have otherwise received award, the bidder shall perform the contract or cause the contract to be performed in accordance with the obligations of an LSA concern.

(End of provision)

Sections it refers to

  • 19.309 Solicitation provisions and contract clauses.

Sections that refer to it

  • 4.1202 Solicitation provision and contract clause.
  • 19.309 Solicitation provisions and contract clauses.
  • 52.204-8 Annual Representations and Certifications.

← 52.219-1 Small Business Program Representations. · 52.219-3 Notice of HUBZone Set-Aside or Sole-Source Award. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.219-2 Equal Low Bids · SpendQuery