[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR228.35]

[Page 1044]
 
                       TITLE 22--FOREIGN RELATIONS
 
            CHAPTER II--AGENCY FOR INTERNATIONAL DEVELOPMENT
 
PART 228_RULES ON SOURCE, ORIGIN AND NATIONALITY FOR COMMODITIES 
AND SERVICES FINANCED BY USAID--Table of Contents
 
Subpart D_Conditions Governing the Nationality of Suppliers of Services 
                           for USAID Financing
 
Sec. 228.35  Construction services from foreign-owned local firms.

    (a) When the estimated cost of a contract for construction services 
is $5 million or less and only local firms will be solicited, a local 
corporation or partnership which does not meet the test in Sec. 
228.31(a)(2)(i) for eligibility based on ownership by citizens of the 
cooperating country (i.e., it is a foreign-owned local firm) will be 
eligible if it is determined by USAID to be an integral part of the 
local economy. 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 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 country on a continuing 
basis for not less than 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 resident in the cooperating 
country;
    (4) Most of its operating equipment and physical plant are in the 
cooperating country.