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Code · CFR · Title 22 — Foreign Relations · Part 228 — Rules for Procurement of Commodities and Services Financed by USAID · § 228.14

§ 228.14. Construction procurement with foreign-owned local firms.

235 words·~1 min read·/us/cfr/t22/s§ 228.14·

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(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.
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