Can a foreign company bid on US government contracts?
Yes, but with restrictions. Foreign companies can register on SAM.gov and bid on most federal contracts, but the Buy American Act and Trade Agreements Act limit product origin, and some contracts (national security, ITAR-controlled) are restricted to US citizens or entities. State and local rules vary.
Foreign companies can compete for US government contracts, and thousands do successfully every year. The barriers are procedural and category-specific rather than absolute.
Federal registration: SAM.gov accepts foreign entities. You obtain a UEI (Unique Entity Identifier) just like US firms. If you don't have a US taxpayer ID (EIN), SAM.gov provides an alternative registration path for foreign entities without US tax obligations. Registration is free and takes 2-4 weeks.
Buy American Act (41 U.S.C. §§ 8301-8305): applies to federal procurement of construction materials and manufactured products for use in the US. Requires that supplies be "domestic end products" (manufactured in the US with over 55% domestic content, threshold rises to 65% in 2024 and 75% in 2029 for most products). Foreign products face a price penalty (6% for large-business bidders, 12% for small-business bidders) in evaluation unless a waiver applies.
Trade Agreements Act (19 U.S.C. §§ 2501-2582): waives Buy American for products from designated countries (WTO Government Procurement Agreement signatories plus specific FTA partners like Canada, Mexico, Australia, Chile, Colombia, Peru, Singapore, and others). For contracts above the TAA threshold ($183K for supplies), TAA-compliant foreign products are treated equally with US products.
Restricted categories: (1) National security systems, classified work, and ITAR-controlled defense articles typically require US citizen personnel or US-owned entities. (2) Federal facility operation and support services often require US citizenship or equivalent. (3) Some agencies (DHS, DOE nuclear, State Department) have additional foreign-ownership restrictions.
Services (as opposed to products): the Buy American Act does not apply to services. Foreign professional services firms compete freely on federal service contracts unless the contract falls in a restricted category above.
State and local: rules vary widely. Some states require in-state or US registration; others accept foreign entities freely. Check each state's procurement code and any pre-qualification requirements.
Practical tip: many foreign firms compete for US contracts through a US subsidiary or through teaming with a US prime contractor. The subsidiary approach can simplify compliance with Buy American, ITAR, and state registration. Teaming lets you leverage a US prime's past performance while contributing specialized capability.