New FAR Definitions for Emergency and Major Disasters

The FAR (Federal Acquisition Councils) recently published a proposed regulation designed to expand special emergency procurement authorities for acquisitions of supplies or services that facilitate defense against or recovery from cyber attack, provide international disaster assistance under the Foreign Assistance Act of 1961, or support response to an emergency of major disasters. This regulation is needed to implement provisions of the 2017 NDAA (National Defense Authorization Act).

Essentially, the regulation will allow for higher micro-purchase and simplified acquisition thresholds for acquisitions of supplies or services that facilitate defense against or recovery from cyber attack.

One of the key features of the new regulation is new definitions for "Emergency" and "Major Disaster". Although those terms have been intuitively understood, the definitions will help everyone to be act with more precision when higher purchasing threshholds are appropriate.

Emergency means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States.

Major disaster means any natural catastrophe (including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or regardless of cause, any fire, flood, or explosion, in any part of the United States, which, in the determination of the President, causes damage of sufficient severity and magnitude to warrant major disaster assistance under the Stafford Act to supplement the efforts and available resources of States, local governments, and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby.

The increased thresholds are $20,000 and $750,000 for micro purchases and simplified acquisitions respectively. The amounts are higher than these if performed outside the U.S.