Title 48 — Territories and Insular PossessionsRelease 119-73

§1921e Construction contract assistance

Title 48 › Chapter CHAPTER 18— - MICRONESIA, MARSHALL ISLANDS, AND PALAU › Subchapter SUBCHAPTER I— - MICRONESIA AND MARSHALL ISLANDS › Part Part B— - Approval and Implementation of Compacts, As Amended › § 1921e

Last updated Apr 6, 2026|Official source

Summary

The United States must work with the Governments of the Federated States of Micronesia and the Republic of the Marshall Islands when U.S. companies get contracts to build or majorly repair government projects there. Those companies must, following the local rules, hire local citizens as much as possible, give on‑the‑job training when locals lack needed skills (especially for running and caring for machines), and teach or help the governments so they can do long‑term upkeep. Money can be provided as needed to pay any extra costs if those governments, under an agreement with the United States, choose to favor U.S. firms. That preference cannot be more than 10 percent of the lowest qualified bid from a non‑U.S. firm.

Full Legal Text

Title 48, §1921e

Territories and Insular Possessions — Source: USLM XML via OLRC

(a)In order to assist the Governments of the Federated States of Micronesia and of the Republic of the Marshall Islands through private sector firms which may be awarded contracts for construction or major repair of capital infrastructure within the Federated States of Micronesia or the Republic of the Marshall Islands, the United States shall consult with the Governments of the Federated States of Micronesia and the Republic of the Marshall Islands with respect to any such contracts, and the United States shall enter into agreements with such firms whereby such firms will, consistent with applicable requirements of such Governments—

(1)to the maximum extent possible, employ citizens of the Federated States of Micronesia and the Republic of the Marshall Islands;

(2)to the extent that necessary skills are not possessed by citizens of the Federated States of Micronesia and the Republic of the Marshall Islands, provide on the job training, with particular emphasis on the development of skills relating to operation of machinery and routine and preventative maintenance of machinery and other facilities; and

(3)provide specific training or other assistance in order to enable the Government to engage in long-term maintenance of infrastructure.

(b)There are authorized to be appropriated such sums as may be necessary to cover any additional costs incurred by the Government of the Federated States of Micronesia or the Republic of the Marshall Islands if such Governments, pursuant to an agreement entered into with the United States, apply a preference on the award of contracts to United States firms, provided that the amount of such preference does not exceed 10 percent of the amount of the lowest qualified bid from a non-United States firm for such contract.

Reference

Citations & Metadata

Citation

48 U.S.C. § 1921e

Title 48 — Territories and Insular Possessions

Last Updated

Apr 6, 2026

Release point: 119-73