§4864 Increased Participation of United States Contractors in Local Guard Contracts Abroad Under Diplomatic Security Program

Summary

The Secretary of State must make it easier for U.S. companies to win local security guard contracts at U.S. diplomatic buildings abroad when a contract is over $250,000 and was made after February 16, 1990. The State Department must advertise those bids in the Commerce and Business Daily, use competitive bidding unless there is a good reason not to, and give technical, price, and fairness rules that help U.S. firms compete. When choosing among acceptable bids, a U.S. firm or a qualified U.S. joint venture gets its bid reduced by 10 percent for scoring. If local money makes it hard for U.S. firms to compete, the department must let bids be in U.S. dollars and let U.S. winners be paid in U.S. dollars. Posts must help U.S. firms get local licenses and not treat them unfairly. At least 10 percent of funds should go to U.S. minority small businesses and at least 10 percent to U.S. small businesses. A prime contractor may not subcontract more than 50 percent of the contract. For non–high risk posts, awards may be based on best value using a cost-technical tradeoff, but Congress must be told 15 days before such an award. Definitions: United States person — a company organized in the U.S., with its main office in the U.S., in business at least 2 years before the bid, experienced in similar security work, with total business volume equal to the project in 3 of the last 5 years, employing U.S. citizens in at least 80% of principal U.S. managers and more than half of permanent U.S. staff, and with necessary U.S. technical and financial resources; qualified United States joint venture person — a joint venture with at least 51% U.S. ownership; Foreign Service building — any U.S. building or grounds in another country under the Secretary of State, including U.S. residences; barrier to local competition — extreme currency volatility, limits on profit repatriation, multiple exchange rates, rules blocking currency convertibility, or extreme local political instability.