22 CFR § 228.14 - Construction procurement with foreign-owned local firms.
---
identifier: "/us/cfr/t22/s228.14"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "22 CFR § 228.14 - Construction procurement with foreign-owned local firms."
title_number: 22
title_name: "Foreign Relations"
section_number: "228.14"
section_name: "Construction procurement with foreign-owned local firms."
chapter_name: "AGENCY FOR INTERNATIONAL DEVELOPMENT"
part_number: "228"
part_name: "RULES FOR PROCUREMENT OF COMMODITIES AND SERVICES FINANCED BY USAID"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 621, Pub. L. 87-195, 75 Stat. 445 (22 U.S.C. 2381), as amended, E.O. 12163, Sept. 29, 1979, 44 FR 56673: 3 CFR 1979 Comp., p. 435."
regulatory_source: "77 FR 1401, Jan. 10, 2012, unless otherwise noted."
cfr_part: "228"
---
# 228.14 Construction procurement with foreign-owned local firms.
(a) When the estimated cost of a contract for construction is $10 million or less and only local firms will be solicited, a local corporation or partnership which is a foreign-owned (owned or controlling interest by individuals not citizens or permanent residents, or equivalent immigration status, of the United States or the cooperating/recipient country) local firm will be eligible if it is determined by USAID to be an integral part of the local economy, see paragraph (b) of this section. However, such a determination is contingent on first ascertaining that no United States construction company with the required capability is currently operating in the cooperating/recipient country or, if there is such a company, that it is not interested in bidding for the proposed contract.
(b) A foreign-owned local firm is an integral part of the local economy provided:
(1) It has done business in the cooperating/recipient country on a continuing basis for at least three years prior to the issuance date of invitations for bids or requests for proposals to be financed by USAID;
(2) It has a demonstrated capability to undertake the proposed activity;
(3) All, or substantially all, of its directors of local operations, senior staff and operating personnel are lawfully resident (or equivalent immigration status to live and work on a continuing basis) in the cooperating/recipient country; and
(4) Most of its operating equipment and physical plant are in the cooperating/recipient country.