Title 48, Territories and Insular PossessionsRelease 119-110

§1921e Construction Contract Assistance

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

Last updated Sep 22, 2026|Official source

Summary

The United States will work with the Federated States of Micronesia and the Republic of the Marshall Islands and sign agreements with U.S. companies that win contracts to build or repair major public projects there. Those agreements must make the companies hire local citizens as much as possible, train locals on the job when needed (especially for running and caring for machines), and give training so the local government can handle long‑term upkeep. Help from the companies cannot be more than 20 percent of the contract value and is only for "United States firms" (as defined by the USAID nationality rule). Money is authorized as needed for this help. Money may also be provided to cover extra costs if those island governments choose to prefer U.S. firms when awarding contracts, as long as the preference does not exceed 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)Assistance to U.S. firms

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.

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.

Reference

Citations & Metadata

Citation

48 U.S.C. § 1921e

Title 48, Territories and Insular Possessions

Last Updated

Sep 22, 2026

Release point: 119-110