Title 22 — Foreign Relations and IntercourseRelease 119-73not60
§4852 Diplomatic Construction Program
Title 22 › Chapter 58— DIPLOMATIC SECURITY › Subchapter IV— DIPLOMATIC SECURITY PROGRAM › § 4852
Summary
Only U.S. companies and qualifying U.S. joint ventures can win certain diplomatic building or design contracts when there is enough competition. That rule applies to projects worth more than $25,000,000 and to projects that involve technical security work, unless the Secretary of State says the security is only low-level technology. If a foreign country’s laws forbid U.S. contractors, the rule does not apply, but only 30 days after the Secretary of State tells four Congressional committees (House Foreign Affairs and Appropriations; Senate Foreign Relations and Appropriations) what steps were taken and what will be done under the Foreign Missions Act. Adequate competition means at least three qualified bidders. A “United States person” is a company organized under U.S. law, based in the U.S., in business more than 5 years for big construction projects (or more than 2 years for security projects), with similar past work, and that meets U.S. citizen hiring rules (65% of top U.S. managers, more than half of U.S. full-time staff, and 65% of supervisors on the foreign site). A “qualified U.S. joint venture person” is a joint venture with at least 51% of its assets owned by U.S. persons. At least 10% of each year’s diplomatic construction funds should, when possible, go to American minority contractors and at least 10% to American small businesses. A prime contractor may not subcontract more than 50% of a project’s total contract value.
Full Legal Text
Title 22, §4852
Foreign Relations and Intercourse — Source: USLM XML via OLRC
(a)Notwithstanding section 302 of this title, and where adequate competition exists, only United States persons and qualified United States joint venture persons may be awarded—
(1)a diplomatic construction or design project which has an estimated total project value exceeding $25,000,000; and
(2)a diplomatic construction or design project which involves technical security, unless the project involves low-level technology, as determined by the Secretary of State.
(b)Subsection (a) shall not apply with respect to any diplomatic construction or design project in a foreign country whose statutes prohibit the use of United States contractors on such projects. The exception contained in this subsection shall only become effective with respect to a foreign country 30 days after the Secretary of State certifies to the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate what specific actions he has taken to urge such foreign country to permit the use of United States contractors on such projects, and what actions he shall take with respect to that country as authorized by title II of the State Department Basic Authorities Act of 1956 (22 U.S.C. 4301 et seq.; commonly referred to as the “Foreign Missions Act”).
(c)For the purposes of this section—
(1)the term “adequate competition” means with respect to a construction or design project, the presence of three or more qualified bidders submitting responsive bids for that project;
(2)the term “United States person” means a person which—
(A)is incorporated or legally organized under the laws of the United States, including State, the District of Columbia, and local laws;
(B)has its principal place of business in the United States;
(C)has been incorporated or legally organized in the United States—
(i)for more than 5 years before the issuance date of the invitation for bids or request for proposals with respect to a construction project under subsection (a)(1); and
(ii)for more than 2 years before the issuance date of the invitation for bids or request for proposals with respect to a construction or design project which involves physical or technical security under subsection (a)(2);
(D)has performed within the United States or on a Federal contract abroad administrative and technical, professional, or construction services similar in complexity, type of construction, and value to the project being bid;
(E)(i)employs United States citizens in at least 65 percent of its principal management positions in the United States,
(ii)employs United States citizens in more than half of its permanent, full-time positions in the United States, and
(iii)will employ United States citizens in at least 65 percent of the supervisory positions on the foreign buildings office project site; and
(3)the term “qualified United States joint venture person” means a joint venture in which a United States person or persons owns at least 51 percent of the assets of the joint venture.
(d)Not less than 10 percent of the amount appropriated pursuant to section 4851(a) of this title for diplomatic construction or design projects each fiscal year shall be allocated to the extent practicable for contracts with American minority contractors.
(e)Not less than 10 percent of the amount appropriated pursuant to section 4851(a) of this title for diplomatic construction or design projects each fiscal year shall be allocated to the extent practicable for contracts with American small business contractors.
(f)With respect to a diplomatic construction project, a prime contractor may not subcontract more than 50 percent of the total value of its contract for that project.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
Title II of the State Department Basic Authorities Act of 1956, referred to in subsec. (b), is title II of act Aug. 1, 1956, ch. 841, as added Aug. 24, 1982, Pub. L. 97–241, title II, § 202(b), 96 Stat. 283, known as the Foreign Missions Act, which is classified principally to chapter 53 (§ 4301 et seq.) of this title. For complete classification of title II to the Code, see
Short Title
note set out under section 4301 of this title and Tables.
Amendments
2024—Subsec. (a). Pub. L. 118–159, § 7214(1), inserted “be awarded” after “joint venture persons may” in introductory provisions, struck out “bid on” at beginning of pars. (1) and (2), and substituted “$25,000,000” for “$10,000,000” in par. (1). Subsec. (c)(1). Pub. L. 118–159, § 7214(2)(A), substituted “three” for “two”. Subsec. (c)(2)(D). Pub. L. 118–159, § 7214(2)(B)(i), substituted “on a Federal contract abroad” for “at a United States diplomatic or consular establishment abroad”. Subsec. (c)(2)(E), (F). Pub. L. 118–159, § 7214(2)(B)(ii)–(iv), redesignated subpar. (F) as (E), substituted “65” for “80” in cls. (i) and (iii), and struck out former subpar. (E) which read as follows: “with respect to a
Construction
project under subsection (a)(1), has achieved total business volume equal to or greater than the value of the project being bid cumulatively over 3 years of the 5-year period before the date specified in subparagraph (C)(i);”. Subsec. (c)(2)(G). Pub. L. 118–159, § 7214(2)(B)(ii), struck out subpar. (G) which read as follows: “has the existing technical and financial resources in the United States to perform the contract; and”. 2021—Subsec. (c)(2)(E). Pub. L. 117–81 substituted “cumulatively over 3 years” for “in 3 years”. 2002—Subsec. (c)(2)(D). Pub. L. 107–228 inserted “or at a United States diplomatic or consular establishment abroad” after “United States”. 1994—Subsec. (a)(2). Pub. L. 103–236 substituted “Secretary of State” for “Assistant Secretary for Diplomatic Security”. 1991—Subsec. (a)(1). Pub. L. 102–138, § 131(1), substituted “$10,000,000” for “$5,000,000”. Subsec. (a)(2). Pub. L. 102–138, § 131(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “bid on a diplomatic
Construction
or design project which involves physical or technical security, unless the project— “(A) involves nonsophisticated, low-level technology, as determined by the Assistant Secretary for Diplomatic Security; “(B) is for the design or
Construction
of a facility that does not process or store classified material; and “(C) does not exceed a total value of $500,000.” 1990—Subsec. (a)(2). Pub. L. 101–246 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “bid on a diplomatic
Construction
or design project which involves physical or technical security.”
Statutory Notes and Related Subsidiaries
Effective Date
of 1994 AmendmentAmendment by Pub. L. 103–236 applicable with respect to officials, offices, and bureaus of Department of State when executive orders,
Regulations
, or departmental directives implementing the
Amendments
by section 161 and 162 of Pub. L. 103–236 become effective, or 90 days after Apr. 30, 1994, whichever comes earlier, see section 161(b) of Pub. L. 103–236, as amended, set out as a note under section 2651a of this title.
Construction
of United States Embassy in Ottawa Pub. L. 101–246, title I, § 125, Feb. 16, 1990, 104 Stat. 27, provided that: “section 402(a) of the Diplomatic Security Act (22 U.S.C. 4852(a)) shall not apply to the
Construction
or renovation of the United States Embassy in Ottawa, Canada.”
Reference
Citations & Metadata
Citation
22 U.S.C. § 4852
Title 22 — Foreign Relations and Intercourse
Last Updated
Apr 5, 2026
Release point: 119-73not60