# 52.226-5 Restrictions on Subcontracting Outside Disaster or Emergency Area.
Type: Clause
Prescribed in: 26.206(c)
Current version date: NOV 2007

## Prescription and Applicability

### FAR Prescription, 26.206(c)

(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.

## Current Text

52.226-5 Restrictions on Subcontracting Outside Disaster or Emergency Area.

As prescribed in 26.206(c), insert the following clause:

Restrictions on Subcontracting Outside Disaster or Emergency Area (NOV 2007)

(a) Definitions. The definitions of the following terms used in this clause are found in the Small Business Administration regulations at 13 CFR 125.6(e): cost of the contract, cost of contract performance incurred for personnel, cost of manufacturing, cost of materials, personnel, and subcontracting.

(b) The Contractor agrees that in performance of the contract in the case of a contract for—

(1) Services (except construction). 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 clause at FAR 52.226—4, Notice of Disaster or Emergency Area Set-Aside;

(2) Supplies (other than procurement from a nonmanufacturer of such supplies). 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;

(3) General construction. 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

(4) Construction by special trade Contractors. 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.

(End of clause)

[72 FR 63088, Nov. 7, 2007, as amended at 74 FR 52849, Oct. 14, 2009]

## Suggested Questions

You can ask your AI assistant:
- Should I include this provision in my solicitation?
- Does this clause apply to commercial acquisitions?
- Does this clause apply to R&D contracts under Part 35?
- Which alternate should I use for a multiple-award contract?
- Are there any active Class Deviations that modify this clause?
- What changed in the most recent amendment?

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Source: https://part52.dev
Generated: 2026-04-21 17:40 UTC
Reference: https://www.ecfr.gov/current/title-48/section-52.226-5