48 U.S.C. § 1906: Construction contract…

Summary

The President must work with the governments of the Federated States of Micronesia and the Marshall Islands and make agreements with U.S. private firms hired to build or do major repairs on public infrastructure there. Those firms must, as much as possible, hire local citizens; give on-the-job training when locals lack needed skills, especially for running and keeping machinery working; and teach the government how to care for the infrastructure over the long term. Help from the firm under these agreements cannot be more than 20% of the contract, and only firms that meet USAID’s rule for U.S. firms are eligible. The U.S. can provide money as needed to pay for this. The U.S. may also fund any extra costs the Micronesian or Marshallese governments face if they give a bidding preference to U.S. firms, as long as that preference does not exceed 10% of the lowest qualified bid from a non-U.S. firm.

Title 48, §1906

Territories and Insular Possessions, Source: USLM XML via OLRC

(a)Assistance to U.S. firms

In order to assist the Governments of the Federated States of Micronesia and 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 President shall consult with the Governments of the Federated States of Micronesia and the Marshall Islands with respect to any such contracts, and the President 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 Marshall Islands;

(2)to the extent that necessary skills are not possessed by citizens of the Federated States of Micronesia and 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.

Assistance by such firms pursuant to this section may not exceed 20 percent of the amount of the contract and shall be made available only to such firms which meet the definition of United States firm under the nationality rule for suppliers of services of the Agency for International Development (hereafter in this section referred to as “United States firms”). There are authorized to be appropriated such sums as may be necessary for the purposes of this subsection.

(b)Authorization of appropriations

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.

Editorial Notes

Codification Section was formerly set out as a note under section 1681 of this title.

§1906 Construction Contract Assistance

Summary

Title 48, §1906

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata