I 

118TH CONGRESS 

2D SESSION H. R. 9453 

To amend title 10, United States Code, to require payments to contractors 

for subcontracting with Pacific Insular Area concerns, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 3, 2024 

Mr. SABLAN (for himself and Mrs. RADEWAGEN) introduced the following bill; 

which was referred to the Committee on Armed Services 

A BILL 

To amend title 10, United States Code, to require payments 

to contractors for subcontracting with Pacific Insular 

Area concerns, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. PAYMENTS TO CONTRACTORS FOR SUBCON4 TRACTING WITH PACIFIC INSULAR AREA 

5 CONCERNS. 

6 (a) IN GENERAL.—Chapter 387 of title 10, United 

7 States Code, is amended by adding at the end the fol8 lowing new section: 


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1 ‘‘§ 4903. Payments to contractors for subcontracting 

2 with Pacific Insular Area concerns 

3 ‘‘(a) PAYMENTS AUTHORIZED.—The Secretary of 

4 Defense, acting through the Director of the Office of 

5 Small Business Programs of the Department of Defense, 

6 may make a payment in accordance with subsection (b) 

7 to a prime contractor for each subcontract such prime con8 tractor enters into with a Pacific Insular Area concern. 

9 ‘‘(b) AMOUNT.—A payment made under this section 

10 shall be in an amount equal to five percent of the total 

11 proposed value of a subcontract described in subsection 

12 (a). 

13 ‘‘(c) APPLICATION.—A prime contractor desiring a 

14 payment under this section shall submit to the Secretary 

15 of Defense an application for such payment after entering 

16 into a subcontract with a Pacific Insular Area concern. 

17 ‘‘(d) REPORT.—Not later than one year after the 

18 date of the enactment of this section and annually there19 after for ten years, the Administrator of the Small Busi20 ness Administration and the Director of the Department 

21 of Defense Office of Small Business Programs shall sub22 mit to the Committee on Small Business of the House of 

23 Representatives and the Committee on Small Business 

24 and Entrepreneurship of the Senate and the Committees 

25 on Armed Services of the House of Representatives and 

26 the Senate a report that includes the following: 


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1 ‘‘(1) The number of prime contractors that re2 ceived a payment under this section during the year 

3 covered by the report. 

4 ‘‘(2) The economic impact on Pacific Insular 

5 Areas as a result of subcontracts that otherwise 

6 would not have been made to Pacific Insular Area 

7 concerns. 

8 ‘‘(3) Any recommendations of the Adminis9 trator and Director for increasing the number of ap10 plications for payments under this section. 

11 ‘‘(e) DEFINITIONS.—In this section: 

12 ‘‘(1) The term ‘Pacific Insular Area’ means the 

13 Northern Mariana Islands, American Samoa, and 

14 Guam. 

15 ‘‘(2) The term ‘Pacific Insular Area concern’ 

16 means a small business concern (as defined under 

17 section 3 of the Small Business Act (15 U.S.C. 

18 632)), at the time of entering into a subcontract 

19 with a prime contractor described under this sec20 tion— 

21 ‘‘(A) that is at least 51 percent owned and 

22 controlled by one or more individuals who are 

23 United States citizens; 

24 ‘‘(B) that has its principal office located in 

25 a Pacific Insular Area; 


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1 ‘‘(C) for which at least 50 percent of the 

2 employees of such concern reside in the Pacific 

3 Insular Area in which the principal office is lo4 cated; 

5 ‘‘(D) that certifies that it will attempt to 

6 maintain the employment percentage described 

7 in subparagraph (C) for the duration of per8 formance of the subcontract; and 

9 ‘‘(E) that meets any additional require10 ments as required by the Secretary of De11 fense.’’. 

12 (b) APPLICABILITY.—This Act and the amendments 

13 made by this Act shall apply with respect to prime con14 tracts entered into on or after the date of the enactment 

15 of this Act. 

Æ 


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