§302 Award of contracts

Summary

Limits who can win big building contracts for U.S. diplomatic sites abroad when the job is estimated to cost more than $5,000,000. Only companies owned by Americans or companies from countries that give U.S. firms similar access may compete, unless the host country’s law or an international agreement requires using local firms, or the Secretary of State says using local firms is needed for relations or to finish the project. The rules say local licensing rules don’t count as blocking access. U.S. bidders get a 10 percent price adjustment for competition purposes. The Secretary must publish the project and get at least two interested, responsible bidders before deciding there is enough competition. If not, the Secretary can ignore the nationality limits. A bidder must prove its ownership and experience when bids are asked. To qualify as U.S.-owned, a firm must show it did similar work in the U.S. or at a U.S. diplomatic site, and either be more than 50 percent owned by U.S. citizens or permanent residents, or be incorporated in the U.S. for more than three years and have over half of its U.S. professional and manager positions filled by U.S. citizens or permanent residents. Contracts in the U.S. for foreign missions follow the same rules unless the foreign national is allowed into the U.S. for the job. The Secretary of State has the final say, and the rule ends when internationally agreed bidding rules are in place.