Local Set-Asides Approved for Disaster Recovery Local businesses will be first in line for federal contracts in disaster areas under an interim rule adopted by the Federal Acquisition Regulations councils. The rule, effective Aug. 4, implements an act of Congress authorizing local set-asides for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance acquisitions. Both large and small companies are eligible for set-asides as long as they reside or primarily do business in the disaster area. Congress acted following widespread criticism of sole-source awards to large national corporations for cleanup and recovery after Hurricane Katrina last year. The contracting officer determines the geographic area for a local set-aside. It may be all or part of the declared disaster/emergency area. The rule also imposes subcontracting restrictions to ensure that local businesses get a share. The interim rule is FAC 2005-12, FAR case 2006-014, in the Aug. 4 Federal Register. Comments are due by Oct. 3.