Foreign companies ask this question constantly, and they usually get a vague answer. The real answer is: yes, most US federal contracts are open to international businesses, with specific carve-outs you need to know before you spend time pursuing work.
Here is what the rules actually say.
The Buy American Act does not block you from most contracts
The Buy American Act (BAA), enacted in 1933, restricts the federal government's purchase of goods manufactured outside the United States. It applies specifically to the acquisition of supplies and construction materials — not services.
If your business sells IT services, consulting, staffing, facilities management, or professional services of any kind, the BAA is not your barrier. The majority of federal contract spending falls into service categories, which means a Canadian firm, a UK company, or a Singapore-headquartered business can bid on the same work as a US company.
For goods, the BAA requires that manufactured products be "substantially all" (currently defined as more than 55% of the cost of components) produced in the United States. A foreign manufacturer selling physical goods into federal procurement has two paths: manufacture domestically or qualify under the Trade Agreements Act.
The Trade Agreements Act opens the door for eligible countries
The Trade Agreements Act (TAA) of 1979 waives Buy American Act restrictions for countries that have signed reciprocal trade agreements with the United States. If your country is TAA-eligible, your goods are treated as domestic for federal procurement purposes above certain dollar thresholds.
The TAA threshold for most supply contracts is $182,000 (as of 2022; it adjusts periodically). Above that threshold, agencies must accept offers from TAA-eligible countries.
TAA-eligible countries include:
- United Kingdom
- Canada
- Australia
- Singapore
- Japan
- South Korea
- All European Union member states
- Israel, Switzerland, Norway, Iceland, Liechtenstein
- Several Caribbean Basin and least-developed countries
China, India, Brazil, Russia, and Malaysia are not TAA-eligible. If your goods are manufactured in a non-TAA country, they cannot be sold into federal contracts covered by the TAA, regardless of where your company is headquartered.
One important distinction: TAA eligibility is about the country of origin of the goods, not the nationality of the vendor. A UK-headquartered company selling products manufactured in China does not get a TAA pass.
GSA Schedule MAS: accessible to foreign firms, but read the fine print
The General Services Administration's Multiple Award Schedule (MAS, formerly called GSA Schedules) is the primary vehicle agencies use for streamlined purchasing. Holding a GSA Schedule contract lets agencies buy from you without a full competitive bidding process for each purchase.
Foreign companies can and do obtain GSA Schedule contracts. The process is the same as for US companies: submit an offer through GSA's eOffer system, pass a price reasonableness review, and satisfy the terms of the specific Schedule category.
The former GSA Schedule 70 (IT products and services) was historically used by non-US IT firms, and many held active contracts. Under the consolidated MAS structure, IT products and services fall under Large Category: Information Technology.
Two requirements matter for foreign firms pursuing GSA Schedule:
SAM.gov registration is required. Any company — foreign or domestic — that wants to do business with the federal government must register in the System for Award Management (SAM.gov). Foreign companies register using a NCAGE code (NATO Commercial and Government Entity) instead of a CAGE code. The process takes longer than domestic registration; allow three to four weeks.
Trade Agreements Act compliance is required on MAS contracts. All GSA MAS contracts carry TAA compliance requirements. Services delivered by a TAA-eligible country firm are generally compliant. Products must be manufactured in a TAA-eligible country.
Small business certifications require a US entity
This is the hard stop for international businesses. The SBA's small business set-aside programs — 8(a) Business Development, HUBZone, Women-Owned Small Business (WOSB), and Service-Disabled Veteran-Owned Small Business (SDVOSB) — all require:
- The business is organized in the United States (US LLC, corporation, or other US legal entity)
- The business is at least 51% unconditionally owned and controlled by US citizens (or permanent resident aliens for some programs)
- The business qualifies as small under SBA size standards for its primary NAICS code
A Singapore company bidding through its parent entity is ineligible for 8(a) certification. A UK firm with a US LLC subsidiary where the UK parent retains ownership is also ineligible — the 51% US citizen ownership test fails.
Roughly 26% of total federal contract dollars go through small business set-aside vehicles. That share of the market is effectively closed to foreign-owned businesses without a genuinely US-owned subsidiary.
Defense contracts: additional restrictions apply
The Department of Defense (DoD) applies restrictions beyond standard civilian agency rules.
Foreign ownership, control, or influence (FOCI) rules require defense contractors handling classified information to mitigate any foreign ownership stake. Companies with significant foreign ownership seeking facility security clearances must implement mitigation plans, which can include voting trust agreements, proxy arrangements, or special security agreements.
For unclassified DoD contracts, the primary additional restriction is the Defense Federal Acquisition Regulation Supplement (DFARS), which adds country-specific prohibitions. Section 252.225 covers foreign acquisition rules. Hardware procurement, in particular, has restrictions on components from certain countries (notably China under Section 889 of the 2019 NDAA, which bans Huawei and ZTE equipment from any contract regardless of country of origin).
DoD represents roughly $400 billion of annual contract spending. Foreign firms can and do win DoD service contracts, but the compliance layer is heavier.
The practical path: form a US LLC
For most international businesses serious about federal contracting, the answer is straightforward: form a US LLC or corporation.
A properly structured US subsidiary can:
- Register in SAM.gov as a domestic entity
- Pursue GSA Schedule contracts
- Bid on unrestricted federal contracts without TAA overhead
- Eventually satisfy small business certifications if a US citizen owns 51% or more (which requires genuinely restructuring ownership, not a paper arrangement)
Singapore companies have taken this path repeatedly. ST Engineering, headquartered in Singapore, operates through ST Engineering North America, which holds multiple federal contracts including work with the US Army and Air Force. Singapore Technologies Kinetics (now part of ST Engineering) won a contract to supply Light Tactical Vehicles to the US Army through its US subsidiary. Certis (formerly Cisco Systems Security) operates a US subsidiary that has held federal security services contracts.
These are large companies with the resources to build out full US operations. For smaller international firms, the structure is simpler: a Delaware or Wyoming LLC, a US-based managing member or officer for compliance purposes, and a SAM.gov registration under the US entity.
What agencies actually care about
Contracting officers evaluate offers on price, technical capability, past performance, and compliance. A foreign-owned company with no US presence bidding on a federal services contract is technically eligible for unrestricted contracts, but procurement officers will ask hard questions about:
- Where will the work actually be performed?
- Who will have access to government systems or data?
- Does the firm have the clearances required (if any)?
- Is the firm registered in SAM.gov and current?
Performance location matters for many service contracts. An agency hiring for on-site IT support in Washington DC does not want a firm whose workforce is entirely offshore. Contracts with data sensitivity requirements often specify that work must be performed on US soil by cleared personnel.
Foreign firms win contracts where they can demonstrate genuine capability, competitive pricing, and a credible delivery model for US-based work. That usually means a US entity with US-based staff.
The summary
Foreign companies can bid on most US federal contracts. Services are open with no BAA restriction. Goods from TAA-eligible countries (UK, Canada, Australia, Singapore, Japan, South Korea, EU) qualify above the $182,000 threshold. GSA Schedule contracts are accessible to foreign firms with SAM.gov registration and TAA-compliant offerings.
Small business set-aside programs (8a, HUBZone, WOSB, SDVOSB) are closed to foreign-owned businesses. Defense contracts carry additional FOCI and DFARS compliance requirements.
The path that actually works for international businesses that want meaningful federal contract volume: form a US subsidiary, staff it with US-based personnel, register in SAM.gov, and pursue GSA Schedule. Companies from Singapore, the UK, Canada, and Australia have done exactly that and hold active federal contracts today.
The market is open. The requirements are specific. Meeting them is mostly a matter of structure, not nationality.
