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FAR and DFARS › DFARS Part 236: Construction and Architect-engineer Contracts › Subpart 236.2

DFARS 236.273 Construction in foreign countries.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This DFARS section restricts award of certain military construction contracts funded by military construction appropriations to United States firms. It applies when the contract is estimated to exceed $1,000,000 and is to be performed in specified Pacific outlying areas, on Kwajalein Atoll, or in countries bordering the Arabian Gulf. The restriction has two exceptions based on price comparison or a Marshallese firm on Kwajalein Atoll.

Applies to: Military construction contracts funded with military construction appropriations, estimated to exceed $1,000,000, performed in specified Pacific locations or Arabian Gulf countries.

What it requires

  • Award such contracts only to United States firms unless an exception applies.

Key terms: military construction contracts · military construction appropriations · United States firms · foreign firm · Marshallese firm

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) In accordance with section 112 of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2015 (Division I of Pub. L. 113-235) and the same provision in subsequent military construction appropriations acts, military construction contracts funded with military construction appropriations, that are estimated to exceed $1,000,000 and are to be performed in the United States outlying areas in the Pacific and on Kwajalein Atoll, or in countries bordering the Arabian Gulf (i.e., Iran, Oman, United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, and Iraq), shall be awarded only to United States firms, unless—

(1) The lowest responsive and responsible offer of a United States firm exceeds the lowest responsive and responsible offer of a foreign firm by more than 20 percent; or

(2) The contract is for military construction on Kwajalein Atoll and the lowest responsive and responsible offer is submitted by a Marshallese firm.

(b) See PGI 236.273(b) for guidance on technical working agreements with foreign governments.

Sections that refer to it

  • 225.7014 Restrictions on military construction.

← 236.272 Prequalification of sources. · 236.274 Restriction on acquisition of steel for use in military construction projects. →

Rule changes for DFARS Part 236

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 236.273 Construction in foreign countries · SpendQuery