Department of State

The U.S. Department of State is the federal cabinet agency responsible for conducting American foreign policy, managing diplomatic missions abroad, and coordinating international relations on behalf of the U.S. government. For contractors, the State Department is a significant source of opportunities spanning construction and maintenance of diplomatic facilities, security services, information technology, logistics, training, and overseas program implementation.

What is the Department of State?

Established under the Diplomatic Security Act and governed by the Foreign Affairs Manual (FAM) and the Foreign Affairs Handbook (FAH), the State Department manages more than 275 diplomatic and consular posts in approximately 180 countries. Its acquisition activities are governed by the FAR, the State Department's Acquisition Regulation (DOSAR), and agency-specific procurement policies administered by the Bureau of Administration's Office of Acquisitions Management (A/OPE).

State's largest contracting categories include:

• Overseas Buildings Operations (OBO): construction, renovation, and maintenance of U.S. embassies, consulates, and chanceries worldwide. OBO contracts are among the largest construction contracts in the civilian federal government.
• Diplomatic Security: guard services, personal protective detail, and security technology for overseas diplomatic facilities. The Worldwide Protective Services (WPS) contract vehicle is a major platform for this work.
• Information Technology: enterprise IT systems, communications infrastructure, and cybersecurity services supporting global diplomatic operations.
• Program Implementation: overseas development, democracy promotion, anti-trafficking, and public diplomacy programs, often in coordination with USAID.

State solicitations frequently include DOSAR clauses with no FAR equivalent, covering unique overseas operating conditions such as host-country labor law compliance, country clearance requirements for contractor employees, and special security provisions for classified programs.

Why it matters for contractors

Contractors pursuing State Department work must account for the logistical, security, and regulatory complexity of operating in international environments. DOSAR clauses, country-specific security requirements, host-country tax and labor rules, and the State Department's overseas contractor vetting process all add compliance layers that are absent from domestic federal contracts.

Contractors with overseas construction, security services, IT, or program management experience should monitor the State Department's procurement portal and SAM.gov for both direct awards and opportunities on existing contract vehicles like WPS and the Indefinite Delivery Indefinite Quantity (IDIQ) vehicles managed by A/OPE. Facility clearances and personnel security clearances are prerequisites for most sensitive State Department programs.

Example

A U.S. construction firm with international building experience identifies an OBO solicitation to design and build a new embassy compound in a high-threat country. The solicitation includes DOSAR clauses requiring the contractor to comply with the State Department's Security Engineering standards, use only OBO-approved building materials, and submit to security vetting for all contractor employees who will access the site. The firm partners with a local host-country subcontractor for civil works, as the solicitation requires compliance with host-country labor registration requirements, and submits a proposal that addresses both the technical build requirements and the security provisions specific to OBO overseas construction.