48 CFR § 226.7201 - 226.7201 Definitions.

---
identifier: "/us/cfr/t48/s226.7201"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 226.7201 - 226.7201   Definitions."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "226.7201"
section_name: "226.7201   Definitions."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "D"
subchapter_name: "SOCIOECONOMIC PROGRAMS"
part_number: "226"
part_name: "OTHER SOCIOECONOMIC PROGRAMS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36388, July 31, 1991, unless otherwise noted."
cfr_part: "226"
---


# 226.7201 226.7201   Definitions.

As used in this subpart—

*Eligible contractor* means a business entity operated on a for-profit or nonprofit basis that—

(1) Employs severely disabled individuals at a rate that averages not less than 33 percent of its total workforce over the 12-month period prior to issuance of the solicitation;

(2) Pays not less than the minimum wage prescribed pursuant to 29 U.S.C. 206 to the employees who are severely disabled individuals; and

(3) Provides, for its employees, health insurance and a retirement plan comparable to those provided for employees by business entities of similar size in its industrial sector or geographic region.

*Severely disabled individual* means an individual with a disability (as defined in 42 U.S.C. 12102) who has a severe physical or mental impairment that seriously limits one or more functional capacities.