Page:United States Statutes at Large Volume 120.djvu/1490

 PUBLIC LAW 109–295—OCT. 4, 2006

120 STAT. 1459

to direct agency appropriations used for disaster response, relief, and recovery activities. (d) METHODS OF OVERSIGHT ACTIVITIES.— (1) IN GENERAL.—Oversight activities may be carried out by an agency under this section either directly or by contract. Such activities may include evaluations and financial and performance audits. (2) COORDINATION OF OVERSIGHT ACTIVITIES.—To the extent practicable, evaluations and audits under this section shall be performed by the inspector general of the agency. (e) DEVELOPMENT OF OVERSIGHT PLANS.— (1) IN GENERAL.—If an agency receives oversight funds for a fiscal year, the head of the agency shall prepare a plan describing the oversight activities for disaster response, relief, and recovery anticipated to be undertaken during the subsequent fiscal year. (2) SELECTION OF OVERSIGHT ACTIVITIES.—In preparing the plan, the head of the agency shall select oversight activities based upon a risk assessment of those areas that present the greatest risk of fraud, waste, and abuse. (3) SCHEDULE.—The plan shall include a schedule for conducting oversight activities, including anticipated dates of completion. (f) FEDERAL DISASTER ASSISTANCE ACCOUNTABILITY REPORTS.— A Federal agency receiving oversight funds under this section shall submit annually to the Administrator and the appropriate committees of Congress a consolidated report regarding the use of such funds, including information summarizing oversight activities and the results achieved. (g) DEFINITION.—In this section, the term ‘‘oversight funds’’ means funds referred to in subsection (a) that are designated for use in performing oversight activities. SEC. 694. USE OF LOCAL FIRMS AND INDIVIDUALS.

The Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) is amended by striking section 307 and inserting the following: ‘‘SEC. 307. USE OF LOCAL FIRMS AND INDIVIDUALS.

42 USC 5150.

‘‘(a) CONTRACTS OR AGREEMENTS WITH PRIVATE ENTITIES.— ‘‘(1) IN GENERAL.—In the expenditure of Federal funds for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities which may be carried out by contract or agreement with private organizations, firms, or individuals, preference shall be given, to the extent feasible and practicable, to those organizations, firms, and individuals residing or doing business primarily in the area affected by such major disaster or emergency. ‘‘(2) CONSTRUCTION.—This subsection shall not be considered to restrict the use of Department of Defense resources under this Act in the provision of assistance in a major disaster. ‘‘(3) SPECIFIC GEOGRAPHIC AREA.—In carrying out this section, a contract or agreement may be set aside for award based on a specific geographic area. ‘‘(b) IMPLEMENTATION.— ‘‘(1) CONTRACTS NOT TO ENTITIES IN AREA.—Any expenditure of Federal funds for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency

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