[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: 22CFR228.40]

[Page 1045-1046]
 
                       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 E_Conditions Governing Source and Nationality of Local 
              Procurement Transactions for USAID Financing
 
Sec. 228.40  Local procurement.


    Local procurement in the cooperating country involves the use of 
appropriated funds to finance the procurement of goods and services 
supplied by local businesses, dealers or producers, with payment 
normally being in the currency of the cooperating country. Unless 
otherwise specified in an implementing document, or a waiver is approved 
by USAID in accordance with subpart F of this part, local procurement is 
eligible for USAID financing only in the following situations:
    (a) Locally available commodities of U.S. origin, which are 
otherwise eligible for financing, if the value of the transaction is 
estimated not to exceed the local currency equivalent of $100,000 
(exclusive of transportation costs).
    (b) Commodities of Geographic Code 935 origin if the value of the 
transaction does not exceed $5,000.
    (c) Professional services contracts estimated not to exceed the 
local currency equivalent of $250,000.
    (d) Construction services contracts, including construction 
materials required under the contract, estimated not to exceed the local 
currency equivalent of $5,000,000.
    (e) Under a fixed-price construction contract of any value, the 
prime contractor may procure locally produced goods and services under 
subcontracts.

[[Page 1046]]

    (f) The following commodities and services which are only available 
locally:
    (1) Utilities, including fuel for heating and cooking, waste 
disposal and trash collection;
    (2) Communications--telephone, telex, facsimile, postal and courier 
services;
    (3) Rental costs for housing and office space;
    (4) Petroleum, oils and lubricants for operating vehicles and 
equipment;
    (5) Newspapers, periodicals and books published in the cooperating 
country;
    (6) Other commodities and services (and related expenses) that, by 
their nature or as a practical matter, can only be acquired, performed, 
or incurred in the cooperating country, e.g., vehicle maintenance, hotel 
accommodations, etc.