Federal Acquisition Regulation FAR 26.202-1 allows government contract competitions to be limited to local businesses for disaster or emergency assistance contracts. The key is a declared disaster/emergency area. So far, no disaster/emergency has been declared for the Gulf BP Oil spill. Perhaps the absence of a disaster declaration is so that federal funds will not be available for cleanup or assistance to local individuals and businesses harmed by the spill. Contact Karen Hindson for your government contract legal issues.