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IDENTIFYING LABOR 

SOLUTIONS FOR THE 

GUAM MILITARY BUILDUP 

OVERSIGHT HEARING 

BEFORE THE

SUBCOMMITTEE ON INSULAR AFFAIRS 

OF THE

COMMITTEE ON NATURAL RESOURCES 

U.S. HOUSE OF REPRESENTATIVES 

ONE HUNDRED TENTH CONGRESS 

SECOND SESSION 

Tuesday, September 23, 2008 

Serial No. 110-87 

Printed for the use of the Committee on Natural Resources 

( 

Available via the World Wide Web: http://www.gpoaccess.gov/congress/index.html 

or 

Committee address: http://resourcescommittee.house.gov 

(II) 

COMMITTEE ON NATURAL RESOURCES 

NICK J. RAHALL, II, West Virginia, Chairman 

DON YOUNG, Alaska, Ranking Republican Member 

Dale E. Kildee, Michigan 

Eni F.H. Faleomavaega, American Samoa 

Neil Abercrombie, Hawaii 

Solomon P. Ortiz, Texas 

Frank Pallone, Jr., New Jersey 

Donna M. Christensen, Virgin Islands 

Grace F. Napolitano, California 

Rush D. Holt, New Jersey 

Rau ́l M. Grijalva, Arizona 

Madeleine Z. Bordallo, Guam 

Jim Costa, California 

Dan Boren, Oklahoma 

John P. Sarbanes, Maryland 

George Miller, California 

Edward J. Markey, Massachusetts 

Peter A. DeFazio, Oregon 

Maurice D. Hinchey, New York 

Patrick J. Kennedy, Rhode Island 

Ron Kind, Wisconsin 

Lois Capps, California 

Jay Inslee, Washington 

Mark Udall, Colorado 

Joe Baca, California 

Hilda L. Solis, California 

Stephanie Herseth Sandlin, South Dakota 

Heath Shuler, North Carolina 

Jim Saxton, New Jersey 

Elton Gallegly, California 

John J. Duncan, Jr., Tennessee 

Wayne T. Gilchrest, Maryland 

Chris Cannon, Utah 

Thomas G. Tancredo, Colorado 

Jeff Flake, Arizona 

Stevan Pearce, New Mexico 

Henry E. Brown, Jr., South Carolina 

Luis G. Fortun ̃ o, Puerto Rico 

Cathy McMorris Rodgers, Washington 

Louie Gohmert, Texas 

Tom Cole, Oklahoma 

Rob Bishop, Utah 

Bill Shuster, Pennsylvania 

Bill Sali, Idaho 

Doug Lamborn, Colorado 

Mary Fallin, Oklahoma 

Adrian Smith, Nebraska 

Robert J. Wittman, Virginia 

Steve Scalise, Louisiana 

James H. Zoia, Chief of Staff 

Rick Healy, Chief Counsel 

Christopher N. Fluhr, Republican Staff Director 

Lisa Pittman, Republican Chief Counsel 

SUBCOMMITTEE ON INSULAR AFFAIRS 

DONNA M. CHRISTENSEN, Virgin Islands, Chairwoman 

LUIS G. FORTUN ̃ O, Puerto Rico, Ranking Republican Member 

Eni F.H. Faleomavaega, American Samoa 

Rau ́l M. Grijalva, Arizona 

Madeleine Z. Bordallo, Guam 

Nick J. Rahall, II, West Virginia, ex officio 

Elton Gallegly, California 

Jeff Flake, Arizona 

Don Young, Alaska, ex officio 

(III) 

CONTENTS 

Page 

Hearing held on Tuesday, September 23, 2008 ..................................................... 1 

Statement of Members: 

Bordallo, Hon. Madeleine Z., a Delegate in Congress from Guam ............... 3 

Christensen, Hon. Donna M., a Delegate in Congress from the Virgin 

Islands ............................................................................................................ 1 

Prepared statement of ............................................................................... 2 

Statement of Witnesses: 

Bice, Major General David F., (USMC Retired), Executive Director, Joint 

Guam Program Office ................................................................................... 33 

Prepared statement of ............................................................................... 34 

Connelley, Maria S., Director, Guam Department of Labor ......................... 14 

Prepared statement of ............................................................................... 16 

Domenech, Douglas W., Acting Deputy Assistant Secretary for Insular 

Affairs, U.S. Department of the Interior ..................................................... 37 

Prepared statement of ............................................................................... 39 

Okada, Mary A.Y., President, Guam Community College ............................ 25 

Prepared statement of ............................................................................... 27 

Underwood, Hon. Robert A., Ed.D., Former Member of Congress, and 

President, University of Guam .................................................................... 9 

Prepared statement of ............................................................................... 11 

Additional materials supplied: 

Martinez, James, President, and Hon. John M. Robertson, P.E., Chair, 

Committee on Government and Labor Relations, Guam Contractors 

Association, Statement submitted for the record ....................................... 5 

(1) 

OVERSIGHT HEARING ON ‘‘IDENTIFYING 

LABOR SOLUTIONS FOR THE GUAM MILITARY BUILDUP’’ 

Tuesday, September 23, 2008 

U.S. House of Representatives 

Subcommittee on Insular Affairs 

Committee on Natural Resources 

Washington, D.C. 

The Subcommittee met, pursuant to call, at 2:08 p.m., in Room 

1324, Longworth House Office Building, Hon. Donna Christensen 

[Chairwoman of the Subcommittee] Presiding. 

Present: Representatives Christensen, Gallegly and Bordallo. 

Mrs. CHRISTENSEN. Good afternoon, everyone. The oversight 

hearing by the Subcommittee on Insular Affairs will come to order. 

The Subcommittee is meeting today to hear testimony on identifying labor solutions for the Guam military buildup. Under Committee Rule 4(g), the Chairman and the Ranking Minority Member 

can make opening statements. However, if there are no objections, 

I will also allow the gentlelady from Guam, Congresswoman 

Bordallo, to give an opening statement as well. And I recognize myself for five minutes. 

STATEMENT OF THE HON. DONNA M. CHRISTENSEN, A 

DELEGATE IN CONGRESS FROM THE VIRGIN ISLANDS 

Mrs. CHRISTENSEN. It is good to see everyone here this afternoon. 

A little more than a year ago, the Subcommittee responded to a 

request from our colleague and Delegate from Guam, Ms. Bordallo, 

and traveled to the island to conduct an oversight hearing on the 

planned military buildup scheduled to occur within the next 

decade. 

In Congress, one does not know Guam without also knowing 

Congresswoman Bordallo. And anyone familiar with the Guam 

buildup is aware that Congresswoman Bordallo is fighting for 

Guam’s interest on all fronts—the island’s people, economic opportunity, preservation of its environment and its culture. It is 

because of her concern for Guam’s future that the Subcommittee 

has taken great interest in this issue, and I applaud my colleague 

for her diligence and fortitude. 

As many here are aware, the agreements struck between the 

United States and the Government of Japan in 2005 would 

ultimately result in the relocation of approximately 8,000 U.S. 

2 

Marines from Okinawa to Guam. In addition to that number, the 

Department of Defense estimates 9,000 more, comprising Marine 

families and others to support their new relocation, will be needed. The relocation will cost anywhere between $10 billion and $15 billion. A little more than half of such costs will be shouldered 

by the Japanese Government, with the remainder by the United 

States. During the August 2007 oversight hearing, the Joint Guam 

Program Office’s Executive Director, retired General David Bice, 

testified that, of the projected 15,000 additional jobs which will be 

created to execute construction on Guam, approximately 75 percent, or a little more than 11,000, would need to come from off island. The remaining 4,000 jobs could be filled locally by Guam residents. 

Today’s hearing focuses on just one piece of the Guam buildup— 

labor solutions. We are aware that the Interagency Group on Insular Areas, led by the Department of the Interior, has met and established working groups to collaborate with Guam and that DOD 

is also active in these meetings. 

Even with such partnerships, however, I believe it is still necessary that the Federal Government bear the greater burden in 

helping Guam prepare. We have a responsibility to give the island 

community assurances that their interests are also ours. 

In terms of the matter before us, I believe it is important for 

Guam’s residents to know that they will be the first to fill jobs and 

that the Federal Government is assisting their institutions to prepare its residents. Our government should be instilling confidence 

that Federal and local laws will be enforced to ensure that the 

H-2 workforce will be there to do the job and not be left behind— 

and that nothing we do to meet our country’s mission in Asia and 

the Pacific comes to the detriment of the island’s community. 

This buildup has been characterized as one of the largest realignment missions in our country’s history, and it should therefore 

command the attention of all Federal agencies working together at 

all levels. I am skeptical that without the full pledge and collaboration of all Federal agencies, tangible success for the island will not 

be realized. I hope that this hearing offers us optimism that everything which can be done for Guam and the region is being carried 

out. 

I am pleased that our first panel comprises leaders who are central to the solutions needed for Guam over the next decade. We are 

pleased to welcome back our former colleague, Congressman Bob 

Underwood, who is now the President of the University of Guam; 

from the Guam Community College, its President, Mary Okada; 

and from the Guam Department of Labor, Director Maria 

Connelley. 

For our second panel we also welcome the Executive Director of 

the Joint Guam Program Office, retired General David Bice; and 

the Acting Assistant Secretary for Insular Affairs, Mr. Doug 

Domenech. 

[The prepared statement of Ms. Christensen follows:] 

Statement of The Honorable Donna M. Christensen, Chairwoman, 

Subcommittee on Insular Affairs 

A little more than a year ago, the Subcommittee responded to a request from our 

colleague and Delegate from Guam, Ms. Bordallo, and traveled to the island to 

3 

conduct an oversight hearing on the planned military buildup scheduled to occur 

within the next decade. 

In Congress, one does not know Guam without also knowing Congresswoman 

Bordallo. And anyone familiar with the Guam buildup, is aware that Congresswoman Bordallo is fighting for Guam’s interests on all fronts—the island’s people, 

economic opportunity, preservation of its environment and its culture. It is because 

of her concern for Guam’s future that the Subcommittee has taken great interest 

in this issue and I applaud her for diligence and fortitude. 

As many here are aware, an agreement struck between the United States and the 

Government of Japan in 2005 would ultimately result in the relocation of approximately 8,000 U.S. Marines from Okinawa to Guam. In addition to that number, the 

Department of Defense estimates 9,000 more comprising Marine families and others 

to support the new relocation will be needed. The relocation will cost anywhere between $10-$15 billion dollars. A little more 

than half of such costs will be shouldered by the Japanese government with the remainder by the United States. During the August 2007 oversight hearing, the Joint 

Guam Program Office’s Executive Director, retired General David Bice, testified 

that of the projected 15,000 additional jobs which will be created to execute construction on Guam—approximately 75%, or a little more than 11,000, would need 

to come from off-island. The remaining 4,000 jobs could be filled locally by Guam 

residents. 

Today’s hearing focuses on just one piece of the Guam buildup—labor solutions. 

We are aware that the Interagency Group on Insular Areas, led by the Department 

of the Interior, has met and established working groups to collaborate with Guam 

and that DOD is also active in these meetings. 

Even with such partnerships however, I believe it is still necessary that the Federal government bare the greater burden in helping Guam prepare. We have a responsibility to give the island community assurances that their interests are also 

ours. In terms of the matter before us, I believe that it is important for Guam’s residents to know that they will be the first to fill jobs and that the Federal government 

is assisting their institutions to prepare its residents. Our government should be instilling confidence that federal and local laws will be enforced to ensure that the 

H-2 workforce will be there to do a job and not be left behind. And that nothing 

we do to meet our country’s mission in Asia and the Pacific comes to the detriment 

of the island’s community. 

This buildup has been characterized as one of the largest realignment missions 

in our country’s history and it should therefore command the attention of all federal 

agencies, working together at all levels. I am skeptical that without the full pledge 

and collaboration of all federal agencies, tangible success for the island will not be 

realized. I hope that this hearing offers us optimism that everything which can be 

done for Guam and the region is being carried out. 

I am pleased that our first panel comprises leaders who are central to the solutions needed for Guam over the next decade. We welcome back our former colleague, 

Congressman Robert Underwood, who is now the President of the University of 

Guam; from the Guam Community College, its President Mary Okada; and from the 

Guam Department of Labor, its director Ms. Maria Connelley. For our second panel, 

we also welcome the executive director of the Joint Guam Program Office; retired 

General David Bice and the Acting Assistant Secretary for Insular Affairs, Mr. Doug 

Domenech. 

Mrs. CHRISTENSEN. At this time, I would like to recognize Ms. 

Bordallo for any opening statement she might have. 

STATEMENT OF THE HON. MADELEINE Z. BORDALLO, A 

DELEGATE IN CONGRESS FROM THE TERRITORY OF GUAM 

Ms. BORDALLO. Thank you very much, Madam Chairman; and I 

want to thank you for your kind words. 

I wish the audience to know that the Chairman of the Insular 

Affairs Subcommittee has always been very supportive of Guam 

and all of its issues, as well as other representatives of the U.S. 

Territories. We are a tight-knit group; and on this issue, the military buildup, we continue to hold hands and support each other. I 

truly appreciate your calling this hearing to order today, Madam 

4 

Chairwoman; and I appreciate your leadership on this matter and 

standing as a partner with Guam as we try to ensure that the military buildup is a success for everyone on our island and in the 

Marianas and Greater Micronesian Region. We also want this initiative to be a success for our partner, the Department of Defense, 

and for our national security interests. 

Today’s hearing addresses one of the major and challenging 

issues facing our community as we continue to prepare for the ongoing military buildup on Guam. I appreciate all of the input from 

the witnesses present today, as well as the written reports that we 

will be receiving from Governor Felix Camacho, Speaker Judy Won 

Pat, members of the Guam legislature and our mayor’s council and 

other stakeholders in the community. 

Our witnesses and others from Guam have put a lot of work into 

their plans; and I strongly encourage all of the Federal agencies, 

including the Joint Guam Program Office, the Office of Insular Affairs and the United States Department of Labor, to be specific and 

to provide all of the necessary assistance in order to ensure that 

military buildup benefits both the civilian and the military community. And I will repeat that, that it benefits both the civilian and 

the military community. 

Our primary goal is to provide full employment for the people of 

Guam and for those who seek jobs from our region. We need to continue to build robust training centers and programs to meet the 

training needs of those in Guam and in our region who desire to 

be gainfully employed to make the buildup a success and to be a 

part of this process. If we would gainfully employ thousands of our 

Guam residents and our friends in the CNMI and from Micronesia 

and Palau, this would be good for Guam and our region as a whole. 

And at this time, I would like to note the presence of Ambassador George of FSM who is in our audience. Thank you very 

much. 

Providing jobs and opportunities for workers on Guam and our 

region will provide a greater quality of life for everyone. 

Here with us this afternoon are two panels of outstanding witnesses. In our first panel, we have a former Member of the U.S. 

Congress, Dr. Robert Underwood; and he is the current President 

of the University of Guam. Ms. Maria Connelley, Director of the 

Guam Department of Labor; and Ms. Mary Okada, the President 

of the Guam Community College. I want to thank you for traveling 

all the way to Washington—and I know that trip—during this final 

week of legislative session and for your testimony this afternoon. 

Your input and leadership on these matters is greatly appreciated. 

Additionally, I look forward to testimony from a friend of mine, 

Major General Bice, Executive Director of JGPO, and the Honorable Doug Domenech, Acting Deputy Assistant Secretary for Insular Affairs for the Department of the Interior. 

I appreciate their leadership on the national level as we implement strategies for the buildup, and I look forward to the answers 

to today’s questions about where we stand toward shaping the 

workforce and training our people for these jobs. And I yield back 

my time. 

Mrs. CHRISTENSEN. Thank you, Congresswoman Bordallo. 

5 

Mrs. CHRISTENSEN. If there are no objections, I would like to now 

submit for the record the written testimony of Mr. John Robertson, 

Chair of the Committee on Government Relations for the Guam 

Contractors Association. 

Hearing no objection, so ordered. 

[A letter submitted for the record by the Guam Contractors 

Association follows:] 

GUAM CONTRACTORS ASSOCIATION 

718 North Marine Corps Drive Suite 203 Tamuning, Guam 96913-4425 

Telephone: (671) 647-4840 Facsimile: (671) 647-4866 

Email: gca@ite.net 

Website: www.guamcontractors.org 

September 18, 2008 

Honorable Donna M Christensen 

Chairwoman, Subcommittee on Insular Affairs 

Committee on Natural Resources 

U.S. House of Representatives 

Washington, DC 20515 

Regarding:Identifying Labor Solutions for the Guam Military Build-up 

Dear Congresswoman Christensen: 

Thank you for inviting the Guam Contractors Association to provide testimony at 

your Oversight Hearing on 23rd September 2008 in relation to ‘‘Identifying labor solutions for the Guam military buildup’’. Our written testimony follows. We apologize 

for not being able to attend the hearing to provide verbal testimony and that is 

because of the great distance from Guam to Washington, DC. 

We did provide verbal testimony at the Oversight Field Hearing on Guam on 13 

August 2007 and our current testimony is similar to what was provided then. 

Workforce Availability. An adequate workforce is not available on Guam to deal 

with the massive construction program that is expected to commence at about third 

quarter of FY-2010. The Joint Guam Program Office has projected a need for about 

15,000 skilled tradesmen at peak. Depending on the rate at which contracts are put 

on the market by NAVFAC, the demand could go much higher up to say 22,000. 

In addition to skilled tradesmen there will be need for professionals including managers, engineers, supervisors, administrators and accountants. Also, semiskilled and 

unskilled laborers will be required. In general, we believe the numbers of persons 

required will be sourced from the following locations: 

From Guam. Local citizens and residents should be given priority treatment in 

relation to employment. Otherwise, there could be resentment in the community toward the military buildup with the possibility of a backlash. To maximize job opportunities for Guam residents, skilled trades training must be intensified. See further 

discussion below. For most semi-skilled and un-skilled positions, there is generally, 

sufficient numbers of workers on Guam, with some of these individuals originating 

from Micronesia. 

From Micronesia. Individuals from the Commonwealth of Northern Mariana Islands (Saipan, Tinian, Rota), Republic of Palau, Federated States of Micronesia 

(Yap, Chuuk, Pohnpei, Kosrae), and the Republic of the Marshall Islands have special status and can travel freely to Guam and the U.S. They can and will migrate 

to Guam for job opportunities created by the military buildup. Some of these have 

or will acquire skills necessary for positions in the skilled work force. Many, however, lack a working knowledge of the English language and because of circumstances lack basic employability skills. There are important cultural differences 

between the various islanders in spite of the relatively short distances between 

them. Many Micronesians currently live in Guam and have already joined the workforce after training. Micronesians merit special attention and not only because of 

their special status in relationship with the United States. Those that become employed will be an asset for the community for years to come. Those that move to 

Guam that are unable to find jobs could become a strain on the Guam economy and 

local society. 

From CONUS. Mainland based contractors that take contracts on Guam will normally supply key management, engineering and administrative personnel from their 

home base. Guam based contractors will likely recruit key personnel from the mainland through affiliated companies or by other means. Some tradesmen from Guam 

that migrated to CONUS during the period of a prolonged weak economy in search 

6 

of better paying jobs can be expected to return to reunite with their families. Skilled 

tradesmen from CONUS are not expected to take temporary jobs in large numbers 

and for the following reasons: From past experience, it is known that top quality 

skilled tradesmen will not travel that far from home and family even for higher 

wages. There are no tax incentives such as for overseas employment and Guam 

wages are not attractive. Those CONUS based tradesmen that take jobs on Guam 

normally do not adapt well and tend to return home within a few months time. The 

construction market in CONUS is expected to rebound within the next year or two 

and there is even now a shortage of skilled construction workers. Skilled tradesmen 

that might choose to take jobs in Guam would have to be replaced by H-2B workers 

in CONUS. 

From Japan. Because of the financial contribution by the Japanese government 

to the cost of relocating elements of the Marine Corps from Okinawa to Guam, 

many contracts will no doubt be won by Japanese contractors. Like American firms, 

the Japanese contractors can be expected to supply key management, engineering 

and administrative personnel from their home base. When working abroad, Japanese firms tend to utilize skilled workers from other Asian countries such as the 

Philippines, Thailand and India. 

From Asia. Construction contractors on Guam, whether local or CONUS based, 

traditionally use skilled tradesmen from Asia to fill jobs that cannot be filled by 

local Guam personnel. This has been so since the end of World War II. The Philippines has usually been the first choice because of proximity, language and their 

ability to meld into the Guam life style and community. The contractors should be 

allowed to select the source of their skilled workforce. 

Development of a Skilled Workforce on Guam. As many persons as possible from 

Guam and neighboring islands must be brought into the workforce for the military 

buildup. As of this date, not enough is being done locally by either the government 

or the private sector to develop a skilled workforce on Guam. This is due to a lack 

of funding. Taking into account that training for skilled trades requires on average 

four years, the need for greater action is now. There follows, discussion of institutions most involved in training activities on Guam. 

The University of Guam has programs in place to prepare individuals for careers 

in business administration, accounting and other fields adaptable to the engineering-construction industry as well other industries that will expand as result of the 

military buildup. The UOG has initiated a 2-year pre-engineering program in conjunction with the University of Iowa that can prove most helpful in preparing individuals for careers in engineering. 

Guam Community College has primary responsibility in the territory of Guam for 

secondary and postsecondary career and technical education programs. These programs are pertinent to the engineering-construction industry as well as industry 

and commerce in general. GCC has technical education programs for governmental 

agencies, the hotel and restaurant industry, auto mechanics as well as some construction skilled trades. The Guam Contractors Association has maintained a strong 

relationship with the GCC for many years for the provision of trades training. There 

was a sharp drop in the number of trainees in the late 1990’s and early 2000’s as 

result of the economic situation and a shift in focus by GCC’s leadership at the time. 

With the change in key leadership last year (i.e., new President and two Vice Presidents), the relationship is now recharged and an MOU is soon to be signed between 

the GCC, the GCA and the GCA Trades Academy laying the groundwork for a joint 

effort in training of a local workforce in skilled trades for construction and related 

fields. 

The GCA Trades Academy was established as a separate non-profit institution of 

learning by the Guam Contractors Association in 2006 and has in place all necessary licenses and certifications for its purpose. First classes started in October of 

the same year and it has been in continuous operation since then. It now has about 

100 participants. The GCA initiative is designed specifically for developing a skilled 

construction workforce on Guam in line with what many local chapters of the Associated Builders and Contractors on the mainland are doing. Contractors Associations have learned that training from within the industry produces better results 

for skilled trades than state sponsored junior colleges. A few key matters of interest: 

The Guam Contractors Association has had training and apprenticeship as a primary focus for more than 30 years and it is accredited by the U.S. Department of 

Labor. Training had previously been conducted exclusively at GCC. In the late 

1990’s and early 2000’s there was a reduction in training activity as result of the 

economic situation on Guam and a change in focus at GCC. The relationship is now 

back on track as mentioned above. 

Training at the GCA Trades Academy is based on curricula of the Contren Learning Series as developed by NCCER—National Center for Education and Research. 

7 

It is recognized by the U.S. Department of Labor and other agencies as being the 

best program available for construction trades. It is used extensively in CONUS by 

open-shop and some union trades training centers. Credits are transferrable from 

one training center to another. Those completing the course are placed on a national 

register for job placement anywhere in the United States. 

The GCA Trades Academy is following the example of contractor associations 

across America by setting up certified training programs that are taught by construction professionals within a construction environment. Such training centers in 

CONUS are generally funded by school districts or by federal and local governments. 

Participants in the GCA Trades Academy training program are generally hired by 

a local contractor after completion of training in the basics including safety in the 

work place. In fact, the academy is able to guarantee jobs to all those with interest 

in construction as a career and are willing to apply themselves to learning. 

The Board of Trustees is intent on working in close cooperation with the University of Guam, Guam Community College and the Guam Public School System in carrying out common objectives toward developing a genuine Guam workforce. 

The GCA Trades Academy has begun reaching out to Micronesians living on 

Guam and on the outer islands. For example, the Trades Academy is assisting other 

public and private sector groups in Saipan, Rota, Pohnpei and other islands in establishing a trades academy patterned after the one on Guam. 

The GCA Trades Academy has reached out to the Department of Youth Affairs, 

the Department of Corrections and Drug Court to offer training to those ready for 

rehabilitation. 

The GCA Trades Academy could increase its student population from 200 to 500 

almost overnight if necessary funding was in place. Rapid growth is dependent on 

adequate financial support. Because training for most trades requires four years, 

the time to take this training seriously is now. 

Center for Micronesian Empowerment. On Guam, the Trades Academy is cooperating with the Center for Micronesian Empowerment (CME) to draw Micronesians 

into the workforce. The CME is assisting these individuals in becoming established 

on Guam and becoming acclimated to the local culture. It is providing training in 

English as a second language and is teaching employability skills. The CME is a 

private sector non-profit Guam based organization supported by the Guam Chamber 

of Commerce and a number of local businesses. It is focused not only on construction 

trades but also employment opportunities in the hospitality industry. 

Funding for Workforce Development. A funding stream for the GCA Trades Academy and its students in the program is not yet mature, although it has proven to 

be economically viable. As indicated earlier, it could reach out to more trainees with 

a more robust funding stream. 

Startup costs for the GCA Trades Academy have been by contributions from GCA 

member firms and some local businesses. Likewise, most tuition and related expense has been paid by the individual student or his or her employer. 

The Guam Department of Labor has sponsored some students using Workforce Investment Act funds but only for those that are first time job seekers or those that 

have become displaced. This funding source amounting to $180,000 is ongoing but 

may not be fully utilized because of lack of participants. 

Citibank has provided a $30,000 grant for six scholarships over the current year. 

The Guam Chamber of Commerce has also set up a scholarship fund with the 

Trades Academy. 

Grant funding has been provided to the GCA Trades Academy through the Guam 

Community College for some training equipment and simulators. 

Guam has for a number of years had a Manpower Development Fund (MDF) that 

has as its source of revenue, 70% of registration fees paid primarily by construction 

contractors, to the Guam Department of Labor for the processing of nonimmigrant 

alien temporary worker visa requests. The remaining 30% is retained by the Guam 

DOL for administration of the program. The MDF money is passed through the Department of Administration, as approved by the Guam Legislature, to the Guam 

Community College. The use of these funds is strictly limited to apprenticeship 

training and does not include pre-apprentice training or other forms of craft training. As of this date, none of the MDF dollars has been made available to the GCA 

Trades Academy for construction trades training. That is expected to change with 

the new closer working relationship between the GCC and the GCA Trades Academy. The GCC has agreed to provide financial support for some apprentices using 

the MDF. 

It is important to note that Apprenticeship Training programs were very popular 

during earlier times with both employers and trainees. The current generation of 

young adults are not as willing as their predecessors to make an early commitment 

8 

to a career choice. Employers are not as eager to indenture apprentices absent the 

long term commitment. For that reason, the U.S. Department of Labor is considering a change in its policies. Meanwhile, The NCCER offers a certificate for those 

completing its training courses that can be used for attaining journey person status. 

This change in approach is working in CONUS and Guam from the standpoint of 

workforce development but has limits with regard to public funding. 

The GCA Trades Academy is in need of further financial support to accomplish 

its mission within the short timeframe of the military buildup. Note again that WIA 

funds and Manpower Development Funds are restricted. Funds with fewer restrictions could be used for pre-apprenticeship training and other craft training that is 

needed. Assistance from the federal government might best be accomplished by supporting grant opportunities through the Guam Community College for use by the 

GCA Trades Academy. 

Related Concerns. There are other important concerns related to the need for an 

expanded workforce on Guam. 

Visa Quota. This was a concern last year but is now resolved with the removal 

of Guam and CNMI from the U.S. quota on H1 and H2 visas. It will be in effect 

for 5 years starting in June 2009. 

Security. There is concern that nonimmigrant temporary workers from Asia must 

not be a security risk before entering Guam. That has been addressed with the military and a solution has been found. 

Unions. Guam is a right to work territory. The GCA is opposed to the entry of 

construction trade unions into Guam to represent the workforce. Wage rates will increase over the next few years and the GCA is working with the Guam DOL to ensure that happens but in a way to not negatively impact the fragile local economy. 

Camp Accommodation. Guam contractors prefer to provide camp accommodation 

for their nonimmigrant alien temporary workers. Some additional ‘‘Olympic Village’’ 

style temporary worker camps may be necessary for the large number of workers 

expected to be on Guam for the military buildup. Such facilities could be designed 

for later use as schools, affordable housing or other. This will require cooperation 

between local and federal government officials. 

Specifications for Worker Camps. Construction contracts developed by NAVFAC 

for MILCON projects should include strict requirements for worker accommodation. 

Camps must conform to OSHA and other regulations and should include a cafeteria, 

a clinic, a convenience store, recreational and other facilities to avoid overtaxing existing similar facilities on Guam. 

Compliance Issues. There have been compliance difficulties in the past on Guam 

when using non-immigrant alien labor. Guam’s principal contractors want there to 

be a level playing field with all participants playing by the rules. 

Senior Level Personnel. Management, engineering, administrative and supervisory personnel brought to Guam from the U.S. and elsewhere will have requirements beyond those of the workers. This is especially true since they will in many 

cases be engaged on family accompanied status. They will require higher level accommodation, medical facilities, schools and other services not now available in adequate supply. Some of these facilities could be made available by the private sector 

through encouragement of some kind. Because of timing, the federal government 

may need to incur some upfront cost with the idea of selling the facilities when 

major military construction is done. Some local private school officials might be persuaded to expand in the near term to accommodate the temporary surge. 

Medical. Guam Memorial Hospital is the only hospital that serves the civilian 

community on Guam. It is currently not JHACO certified and is in need of upgrades. This matter needs urgent attention in order to not deter senior managers 

and engineers from living and working on Guam. 

Trusting the foregoing discussion proves helpful to you during your deliberations 

concerning this important subject. 

Sincerely, 

Guam Contractors Association 

James Martinez 

President 

John M Robertson PE 

Chair, Committee on Government & 

Labor Relations 

Copy: 

Honorable Madeleine Bordallo 

Honorable Felix Camacho, Governor of Guam 

Mr. David Bice, Executive Director, Joint Guam Program Office 

9 

CAPT Paul Fuligni, Commander, NAVFAC Marianas 

Ms. Maria Connelley, Director, Guam Department of Labor 

Dr. Robert Underwood, President University of Guam 

Ms. Mary Okada, President Guam Community College 

Dr. Bert Johnston, Director GCA Trades Academy 

Dr. Narissa Bretania-Schaffer, Superintendent Guam Public School System 

A few words concerning the authors: 

James Martinez was born and raised on Guam. He has managed the Guam Contractors Association since 2001, first with title of Executive Director and now President. Under his leadership, the association has grown from 197 to 356 corporate 

members. He strengthened the relationship with the Associated Builders and Contractors to the point that the GCA is now the Guam Chapter of that national organization. He was instrumental in establishment of the GCA Trades Academy and became the first NCCER master trainer on Guam. He is responsible for the GCA Apprenticeship program. 

John M Robertson PE is from Houston, Texas and came to Guam in 1999 as general manager of a multinational contracting organization. When that firm closed 

their Guam operation, he remained and formed two firms of his own. AmOrient 

Contracting Inc is a general contractor managing design and construction of military projects. AmOrient Engineering performs planning and engineering services for 

the military. He has been on the GCA Board of Directors since 1999. He was president for two years. He is the current Chairman of the Committee on Government 

and Labor Relations. He was instrumental in establishing the GCA Trades Academy 

and is its current Chairman, Board of Trustees. He is also on the Board of Directors 

for the Guam Post, Society of American Military Engineers. 

Mrs. CHRISTENSEN. I would now like to call up our first panel of 

witnesses: Congressman Robert Underwood, President of the University of Guam; Ms. Maria Connelley, Director of the Guam Department of Labor; and the President of the Guam Community College, Ms. Mary Okada. 

The Chair would like to remind witnesses that your written 

statement will be submitted for the hearing record, and the timing 

lights on the table will indicate when your time is concluded. 

Mrs. CHRISTENSEN. I now recognize Congressman Underwood to 

testify for five minutes. 

STATEMENT OF THE HONORABLE ROBERT A. UNDERWOOD, 

ED.D., FORMER MEMBER OF CONGRESS, PRESIDENT, 

UNIVERSITY OF GUAM 

Mr. UNDERWOOD. Hafa adai and good afternoon to you, Madam 

Chairman, and our representative, Madam Bordallo; and I appreciate the opportunity to present my testimony on behalf of the University of Guam. 

As we all know and as you have outlined, the decade of the 2010s 

will bring enormous changes to Guam, enormous challenges to 

Guam. We are going to see anywhere from 10 to 15 billion dollars 

expended, millions of square feet of office floor space constructed. 

Most of the people of Guam see this as a welcome opportunity. 

Many are opposed to it. And all are concerned that we have the opportunity to fully participate in the economy that will come with 

this new buildup. 

There will be a different economy of Guam in the decade of the 

2010s. The challenge before us today is the need for labor. To date, 

most of the attention about labor has been focused on the need for 

construction trades and technical fields. In anticipation of the perhaps 15,000 construction jobs that are needed, we have seen many 

10 

ideas: the lifting of H-2 caps, Department of Labor programs. The 

Guam Community College has been strongly involved. And everyone kind of agrees that it is important that these needs be met locally and regionally first before we bring in workers from foreign 

or even U.S. mainland sources. Collectively these efforts and a 

‘‘local first’’ policy, as outlined by you, Madam Chair, is something 

that we all endorse and merit your support. 

But I believe we must look at Guam’s labor needs in a much 

larger framework. The anticipated buildup will not only bring thousands of new workers, but it will bring in hundreds of professionals, people who will be working in a wide variety of fields, from 

engineering, to construction management, to accountants. There 

will be nurses, need for nurses, teachers, environmental specialists, 

technologists at all different levels, all requiring university level 

training. 

As the President of the only baccalaureate and master’s degree 

granting program institution in Micronesia, I know there is only 

one place that has an apprenticeship program for professionals, 

and that place is the University of Guam. So while we talk about 

apprenticeship programs for workers, I don’t think we are thinking 

about apprenticeship programs for those who are working in the 

professional fields. 

We are not sure of the number of professionals that we need for 

the coming new economy. Based on discussions with fellow educators and government planners and corporate representatives and 

military officials, we have some preliminary numbers. We know we 

need 60 new nurses, 200 new teachers, 50 business managers every 

year for the next decade. This will respond directly to the changed 

circumstances. We also know that there will be the need for 50 environmental specialists, 20 planners, 130 technologists and 5 biologists for the Government of Guam alone. 

The numbers are preliminary and based on projected population 

growth. We don’t know what the U.S. corporations that will be 

coming into Guam and what level of professionals they will bring 

to the island. But we do know that we need attention to this; and 

so, in conjunction with the need for professionals in the new economy, I ask for four specific things: 

First, we ask Congress to help us by expanding the analysis of 

future labor needs to include the needs for professionals and degree 

holders. We request that a specific study by the Government Accountability Office of professional needs for Guam and the region 

will help us prepare for the future and, more importantly, prepare 

our young people for the future. This report must review the demands of the new economy of the 2010s, taking into account public 

and private sectors and existing Federal policy on the funding and 

hiring of professionals in Federal contracts. 

Second, we ask the Congress for balance in the allocation of resources for training the labor force of the 2010s. We do not know 

what the appropriate balance is between investing in the training 

for trades and technical fields and for those who need degrees. 

There are many complicated issues to address. But, as we sit here 

today, there is no balance whatsoever. The University of Guam 

needs resources to meet the challenges of the new economy, and we 

ask that existing and new training programs be given the flexiVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00014 Fmt 6633 Sfmt 6602 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
11 

bility to address the needs for professionals and that all Federal efforts be required to specifically address how professional needs in 

the new economy of Guam will be met as a result of massive Federal spending. 

Third, Guam is a very special place ecologically. The anticipated 

changes for an island 220 square miles in size will create enormous 

challenges. We want to preserve our corral reefs, our unique plants 

and trees and special connection to the land. We do not want to be 

at some future date the subject of a cleanup process that we can 

avoid through careful planning today. And we ask the Federal Government to work with the university in environmental science and 

marine biology to develop the solutions necessary for the protection 

of the environment. 

Last, we ask that the military look to the university to meet the 

specialized and professional needs of their personnel. Currently, we 

are not given this opportunity on military bases because of the region-wide contracting arrangement of educational services by the 

Department of Defense. We are available for Guam military facilities and personnel, and we can work together to fashion a curriculum which will promote joint learning experiences that will 

strengthen civilian-military relationships. 

As Guam rides the roller coaster of the new economy as we look 

into the decade of the 2010s, most of the construction jobs will 

ramp up very quickly and just as quickly ramp down. But the need 

for professionals will be stable, because you will need the professionals to sustain the new infrastructure and to provide needed 

services. If we don’t provide those opportunities for local people or 

people in the region, it means that there will be another group of 

people, of newcomers. We won’t be able to have a sustainable economy, an economy that builds strong civilian-military relationships, 

and we won’t be able to sustain a healthy social economic structure 

on Guam. 

Our future depends upon this balance. We ask that you consider 

it. We ask that you strongly consider the idea and the notion of 

bringing balance to these resources that are applied to Guam. 

Thank you very much. 

Mrs. CHRISTENSEN. Thank you, Congressman Underwood; and 

thank you for broadening the picture of the employment needs and 

the training needs for this military buildup. 

[The prepared statement of Mr. Underwood follows:] 

Statement of Robert Underwood, President, University of Guam 

Hafa Adai and Good Morning Madam Chair and Members of the Committee 

I am Robert Underwood, President of the University of Guam, and I am testifying 

on behalf of my home institution on ‘‘Identifying Labor Solutions for the Guam Military Buildup.’’ I thank the Subcommittee on Insular Affairs and the leadership of 

Congresswoman Christensen for addressing this very important issue for Guam. 

The next decade, the 2010s will bring enormous changes to Guam and we know 

that it will be a time of tremendous opportunity and significant challenges. Guam 

will witness the arrival of as many as 20,000 military personnel and dependents 

plus another 20,000 individuals who will be working in the new economy that Guam 

will have. We know that $10-15 billion will be expended and an unknown millions 

of square feet of floor space will be constructed. The anticipated scale of the change 

is so enormous that even the Department of Defense, America’s largest bureaucracy, 

cannot manage the changes within its existing units. Special units, special legislation, special purpose entities and special arrangements have been established and 

more are being contemplated as the build up is implemented. 

12 

The people of Guam will have many new employment opportunities, the island’s 

infrastructure will be taxed beyond its current capacity. The land will be paved over 

and turned over. The subsurface water resources will be explored and exploited. 

Even the utilization of the air space above us is being reconfigured to accommodate 

dramatic increases in military traffic. Many people welcome the opportunities that 

these changes will bring. Some are afraid of the changes that will occur. All are concerned that the challenges will not be met and the opportunities will not be fairly 

distributed to the people of Guam. It is clear that we need special effort, special 

plans and special arrangements to ensure a successful transition to the new economy. These plans must simultaneously protect the land, enhance the quality of life 

and provide new opportunities for our young people. The 2010s will shape the nature of the society and economy of Guam for the balance of this century. 

The challenge before us today is the need for labor. To date, most of the attention 

about labor has been focused on the need to train for the construction trades and 

related technical fields. In anticipation of the need for 15,000 (perhaps more) construction workers, federal caps on H-2 workers for Guam have been lifted by Congress and federal funding will be directed towards workforce development programs 

and increased resources for institutions like the Guam Community College, the 

Guam Department of Labor and private efforts like the Guam Construction Trades 

Academy. Everyone acknowledges that it is important that these needs be met locally and regionally first before we bring in workers from foreign or even U.S. mainland sources. Collectively, these efforts and a ‘‘local first’’ policy merit your support. 

But I believe that we must look at Guam’s labor needs in a much larger framework. The anticipated build up will not only require thousands of new workers in 

the trades, it will require hundreds of professionals and managers in a wide variety 

of fields. The pace of the build up, the challenge to the environment, the growth 

of the population require new professionals to work in the educational, health care, 

social welfare and environmental regulatory infrastructure of the island. This is in 

addition to the accountants, engineers, construction managers and information technology professionals who will be needed to manage the build up and sustain the new 

infrastructure for the foreseeable future. But unlike the construction trades and 

technical fields, there are few federally resourced apprenticeship programs for professional fields and little legislation is being contemplated in helping an insular area 

take advantage of these opportunities. 

As the President of the only baccalaureate and master’s degree granting institution in Micronesia, I know where the majority of the apprenticeship programs for 

professionals lie. They are located on the campus that I now oversee. The University 

of Guam, through our 35 majors and 15 masters represents the island’s major institutional effort to train the professionals who will provide the capacity needed both 

before and after the buildup. 

We are not sure of the exact numbers of professionals needed for the coming new 

economy. Based on extensive discussions with fellow educators, government planners, corporate representatives and military officials, we have some preliminary 

numbers. For example, we know that we will need 60 nurses, 200 teachers and 50 

business managers every year for the next decade. This will respond directly to the 

changed circumstances, the new economy and the need to replace an aging professional workforce. The University can currently keep pace with perhaps 50% of these 

needs. Within five years, we also know that we will need 25 special education teachers, 5 vocational rehab professionals, 50 environmental specialists, 20 planners and 

130 technologists and 5 biologists for the Government of Guam alone. We understand that the federal government will be hiring 40 environmental specialists in the 

next few years. 

These numbers are preliminary and are based more on projected population increases rather than the specific demands of the new economy. We know that the 

U.S. based corporations will bring in hundreds of managerial, administrative and 

engineering personnel to fulfill contract obligations. We believe that many if not 

most of these positions could be filled by local talent. Unlike the case of the construction trades and the need for imported labor, no one is forcefully advocating a 

policy to ‘‘hire local’’ or provide resources to train local residents to fill these positions. We do not propose a specific policy in this regard. But we do ask for four 

things that will help us respond to the military build in a way that builds up all 

of Guam, expands opportunities and enhances our lives as islanders and Americans: 

1. First, we ask the Congress to help us by expanding the analysis of future labor 

needs to include the need for professionals and degree holders. We request that 

a specific study by the Government Accountability Office of professional needs 

for Guam and the region will help us prepare for the future and, more importantly, prepare our young people for the future. This report must review the 

demands of the new economy of the 2010’s taking into account public and priVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00016 Fmt 6633 Sfmt 6621 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
13 

vate sectors and existing federal policy on the funding of and hiring of professionals in federal contracts. 

2. Second, we ask the Congress for ‘‘balance’’ in the allocation of resources for 

training the labor force of the 2010s. We do not know what the appropriate 

balance is between investing in the training for trades and technical fields and 

for degree programs. There are many complicated issues to address. Currently, 

there is little attention to training opportunities for professional fields. Today, 

there is clearly no balance whatsoever. The University of Guam needs resources to meet the challenges of the new economy. We ask that existing and 

new training programs be given the flexibility to address the needs for professionals and that all federal efforts be required to specifically address how professional needs will be met in Guam as a result of massive federal spending. 

We need to get started now, as it takes four years or more to train these critically needed professionals. 

3. Third, Guam is a very special place ecologically. The anticipated changes for 

an island 220 square miles in size will create enormous environmental challenges. We want to preserve our impressive coral reefs, unique plants and trees 

and special connection to the land. We do not want at some future date to be 

the subject of a clean up process that we can avoid through careful planning 

today. We ask that the federal government work with the University in environmental science and marine biology to develop the solutions necessary for 

the protection of the environment. 

4. Fourth, we ask that the military look to the University to meet the specialized 

and professional education needs of their personnel. Currently, we are not 

given this opportunity on military bases because of the region wide contracting 

arrangement of educational services by the Department of Defense. We are 

available for Guam military facilities and personnel and we can work together 

to fashion a curriculum that will promote joint learning experiences that will 

strengthen civilian-military relationships. 

As Guam rides the economic and social roller coaster of 2010s, the pattern of labor 

needs is clear. The construction jobs will rise quickly at the beginning of the next 

decade and almost as quickly decline before the end of the decade. The number of 

jobs that will be needed on a permanent basis in the new economy will be only a 

small fraction of that needed to build up the infrastructure. While we must ensure 

that the people of Guam should be given every opportunity to take these positions, 

the overwhelming majority of these jobs will leave the island. 

On the other hand, the professional positions that are needed will be of longer 

duration and offer more permanent opportunities for the people of Guam. The professional positions will be the backbone for a new and stronger economy in which 

the people of the island are full participants and will have taken full advantage of 

the opportunities. They will teach, they will nurse, they will manage the environment, they will plan the economy, they will manage new businesses and they will 

provide the basis for a healthy and robust economic and social structure. But they 

can only do so if they are trained and educated and if they are given the opportunity 

to enter expanded and new university-level programs. If they are not given this opportunity locally, they will leave the island and they may still become accountants 

and nurses and engineers. Unfortunately, they will likely practice these professions 

elsewhere as newcomers take up these opportunities in Guam. 

There can be no alternative. An economy which is based on bringing in workers 

from foreign sources and importing professionals from the outside on a short-term 

basis can be legitimately defended, but is inefficient and unsustainable. However, 

if we know in advance that we can do something today that will ensure the fair 

distribution of opportunities in the next decade while we build a strong militarycivilian relationship, then we must act. I trust that we will act in partnership and 

provide these professional opportunities for the people of Guam. 

Si Yu’os ma’ase’ put I atension-miyu. Thank you very much. 

I am prepared to answer any questions you may have. 

Mrs. CHRISTENSEN. The Chairwoman now recognizes Ms. 

Connelley to testify for five minutes. 

14 

STATEMENT OF MARIA S. CONNELLEY, DIRECTOR, 

GUAM DEPARTMENT OF LABOR 

Ms. CONNELLEY. Thank you for this opportunity to appear before 

you to present my testimony on identifying solutions for the Guam 

military buildup. 

Limitations of the labor pool and the cost to develop specialized 

skills to meet the needs of the impending growth have prompted 

Guam’s Civilian Military Task Force Labor Subcommittee, led by 

the Guam Department of Labor, to adopt strategies for which to 

provide strategic guidance. Efforts by GDL, the Guam Department 

of Labor—and I would like to list them now: 

Strategic planning and partnership at the national level with the 

Interagency Group on Insular Areas and the Federal regional council in San Francisco with the formal mechanism for coordinating 

the activities of the numerous Federal agencies with programs for 

the island. 

Second, within the last year and a half, we have seen so many 

on-site visits by Federal agencies, from USDOL, DOI, USDOE, 

EEOC, HHS, OSD, Naval Audit, DOD, OEA, Navy—to name a few. 

And, third, USDOL and DOI office of Insular Affairs providing 

technical assistance and training in developing a clear workforce 

strategy to achieve goals and actionable strategies. We have been 

collaborating and cross planning, insular partnership. 

During the 8th Micronesian Chief Executives Summit held in 

CNMI in November of 2007, the chief executives passed a resolution to establish the Regional Workforce Development Council, 

which was tasked with developing a 5-year regional workforce plan 

and holding strategic planning and implementation sessions biannually within the Micronesian Islands. Leveraging local, Federal, 

private funds in support of administrative and travel needs for 

RWDC are priority areas to ensure that the chief executives’ workforce initiatives are accomplished. 

In September, 2008, last week, on behalf of the RWDC, the 

Guam Department of Labor submitted a proposal for Federal grant 

funding through the regional innovation grant. The purpose is to 

undertake strategic action planning to maximize opportunities and 

minimize challenges posed by recent regional economic shock, including upheaval in partner economies—tourism and garment industry declines—and planned military expansion on Guam. 

The Guam Department of Labor has taken an active role in providing peer-to-peer training to our neighboring island jurisdiction. 

At the request of the U.S. Department of Labor ETA, Guam used 

its data capturing infrastructure to create an integrated workforce 

system for the CNMI. We are also in the process of providing technical assistance and training, doing the same thing for the Republic of Palau. 

Alien labor. With impending military growth, the Department 

has seen a significant increase in the number of H2B applications. 

Efforts continue to streamline the processing of H2B applications 

and strengthen collaborative efforts with Federal labor enforcement 

entities located on Guam, such as the FBI, the U.S. Customs and 

Border Patrol, U.S. Citizenship and Immigration Service. 

Apprenticeship and pre-apprenticeship training. In 2004, the 

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15 

gram partnership began with the Guam shipyard and the Guam 

Port Authority and has since invested nearly $1.4 million in workforce funding to participant salaries, benefits and educational assistance. 

Guam has also expanded its apprenticeship training through 

partnership with the Guam Hotel and Restaurant Association, the 

Guam Waters Works and the Guam Contractors Association 

Trades Academy. Through Federal subsidies, the Department also 

supports on-the-job training and work experience programs with 

the private sector. 

Guam Registered Apprenticeship Program. In 2006, the Guam 

Registered Apprenticeship Program was created through local law 

for the purpose of authorizing the Department of Labor to contract 

with businesses on a formalized apprenticeship training system 

that offers tax incentives in exchange for hiring and training individuals in demand-driven occupations. To date, the Guam Department of Labor has worked with employers to train 41 apprentices 

and certify more than $1.2 million in tax rebates. 

Next, Youth Initiative, Learning Continuum. Partnering with the 

Guam Public School System, the Department of labor established 

the Passport to Careers, a year-round learning continuum program 

designed to take youth through a pipeline system, preparing them 

for more structured training and providing them with employability skills to meet the needs of employers. This program provides 

the opportunity for Guam’s youth to participate in the job market 

identified by the power of e3 within the construction trades, allied 

health, education and business technology. 

1,655 GPSS students participated in the Passport to Careers program. 164,363 completed hours in the world of work at a cost of 

973,000 of WIA funds. 

Incumbent training. The Governor of Guam also recognizes the 

need to develop the skills of employees currently in the workforce 

who provide critical services to the local community. Efforts are 

under way to revitalize the former Guam Joint Training Board, a 

collaborative entity of Federal and local government human resources personnel. This board would be tasked with leveraging resources and assisting the Government of Guam agencies with 

ascertaining their manpower and human resources needs. 

Dislocated worker. The Department has formed a partnership 

with the Airman and Family Readiness Center, Andersen Air Force 

Base, Guam, to apply Federal funding under the dislocated workers 

program to train veterans and military spouses through the One 

Stop Career Center. From 2006 to present, 98 military spouses received service at the One Stop Career Center and over $106,000 

tuition fee paid to the Guam Community College and University of 

Guam for retraining. 

Accountability. Internal controls and accountability have also remained a priority at the Department. At the direction of Governor 

Camacho in 2005, the Agency for Human Resources Development 

and its Federal grant funding was reorganized under the purview 

of the Guam Department of Labor. Since the realignment and 

transformation, the Guam Department of Labor reduced disallowed 

program costs by 99 percent and was taken off high-risk grantee 

status by the Guam Department of Labor. 

16 

The Guam Department of Labor also continues to receive con- sistent increases in Workforce Investment Act funding, from $3.4 

million in program year 2004 to $5.2 million in program year 2007. 

Data Consortium/Workgroup. Guam and the insular areas suffers from a lack of current, consistent and regularly maintained 

data needed to make sound decisions relating to labor market and 

economic development trends. Efforts to address this critical need 

include the Department of Labor’s involvement in a tri-agency 

partnership with the Bureau of Statistics and Plans and University 

of Guam and data collection in programs such as the HIES report, 

the 2010 Census project preparation, the Civilian Labor Force Survey and the 2008 Micronesian Survey. 

In conclusion, Madam Chairwoman, this is an overview of the activities of the Guam Department of Labor. We recognize that our 

commitment must be demonstrated at all levels, Federal, regional 

and local. We recognize that in order for current and future workforce to reap the benefits of the military buildup, we must look at 

the temporary foreign workers to fill the immediate labor needs 

while developing apprenticeships, internships and on-the-job training in demand occupations. 

I thank you for the opportunity to testify before this distinguished body today to share Guam’s labor solutions and respectfully request your support as we pursue Federal resources to augment the specialized training required of our workforce to meet the 

demands. 

The Guam Department of Labor for fiscal year 2010 OMB re- quest outlines the $23.2 million in apprenticeship funding and talent development that— 

Mrs. CHRISTENSEN. Ms. Connelley, I need you to wrap up. 

Ms. CONNELLEY. We thank you in advance. 

Mrs. CHRISTENSEN. Thank you. We did give you a little extra 

time. But thank you for your testimony. 

[The prepared statement of Ms. Connelley follows:] 

Statement of Maria S. Connelley, Director, Guam Department of Labor 

Good Morning Madam Chairwoman, distinguished members of the Sub-Committee, ladies and gentlemen. Thank you for this esteemed opportunity to appear 

before you to present my testimony on identifying solutions for the Guam military 

buildup. 

It is no secret that Guam is on the cusp of unprecedented growth. The anticipated 

realignment of military personnel and their dependents from Okinawa to Guam, 

coupled with the infrastructure needed to support both the civilian and military 

community is viewed as the single largest expansion the island has experienced 

since World War II. A recent transportation study estimates Guam’s current population of 173,000 to grow by 47,000 or approximately 27% in the next five years. 

For an island that spans 30 miles long by 8 miles wide, it is not difficult to imagine 

both the opportunities and challenges the military build up poses now and for years 

to come. Of paramount concern is Guam’s capacity to meet the labor demands of 

such growth. The island’s current workforce is 60,110 and the unemployment rate 

as of September 2007 is 8.3%. It is estimated anywhere from 10,000 to 20,000 additional workers are needed to fill the skilled labor force in the construction industry 

alone. Utilizing the island’s current workforce, Guam is only able to fill 10-15% of 

this demand. Limitations of the labor pool and the cost to develop specialized skills 

to meet the needs of the impending growth have prompted the CMTF Labor Subcommittee, led by Guam Department of Labor (GDOL), to adopt strategies, which 

provide strategic guidance, and resources to strengthen and sustain the viability of 

Guam’s local workforce. 

We recognize, however, that our goals cannot be achieved alone. What is required 

is a collaborative effort and strengthened partnerships at the federal, regional and 

17 

local level. Mirroring the national strategic direction of U.S. Department of Labor, 

Employment & Training Administration (USDOL ETA), GDOL adopted the power 

of E3 (Education, Employment and Economic Development) into its workforce development mission. In an effort to address the needs of the military and the civilian 

population in this expansion, Guam Governor Felix Camacho issued Executive 

Order No. 2006-10 establishing the Civilian Military Task Force (CMTF). The 

CMTF is comprised of representatives from the local government, military, and private sector all of whom are part of developing an integrated comprehensive master 

plan. Eleven (11) Sub-Committees have been established under the CMTF and they 

are Health and Social Services, Public Safety, Education, Economic Development, 

Labor, Environment, Ports & Customs, Infrastructure, Natural Resources, Housing, 

and Social/Cultural. 

Efforts by GDOL and the CMTF have resulted in the following: 

• Established partnership at the national level with the Interagency Group on Insular Affairs (IGIA) • Quarterly meetings with the Federal Regional Council (FRC) to include USDOL 

Employment and Training Administration • On-Site visits by regional representatives from U.S. Office of Federal Contracts 

Compliance Programs, Equal Employment Opportunity Commission (EEOC), 

U.S. Citizenship and Immigration Service, State Department, Bureau of Apprenticeship Training and U.S. Department of Education • Improved working relationship with USDOL ETA Region Six 

In 2004, Guam received approval from Region VI of the U.S. DOLETA to implement its five-year strategic plan to establish apprenticeships and life-long learning 

models and the shifting of existing workforce training dollars from soft skills to 

training in demand-driven industries. 

Collaboration and Cross Planning: 

• Insular Partnerships: 

Opportunities for collaboration and joint planning have increased due to the dynamic growth agenda. The discussions and various meetings have prompted collaboration and cross-planning teams to begin drafting strategies and work plans to address the growth agenda. The cross planning provides a much needed opportunity 

to maximize resources across partners and programs both public and private that 

are essential for carrying out the vision. The challenge for the people of Guam, as 

well as the residents of the neighboring islands in the Commonwealth of the Northern Marianas, the Federated States of Micronesia and the Republic of Palau is how 

best to translate these unprecedented opportunities into concrete benefits for our respective communities, not just during the construction period, but on a sustainable 

basis after the military buildup. 

Recognizing this growth as mutually beneficial to the region, Governor Camacho 

in 2004 called on the Chief Executives in Western Micronesia to come together to 

formulate unified policies and strategies that address current infrastructure capacities, needs and safeguards. The Western Micronesia Chiefs Executive Summit has 

since expanded to include the Federated States of Micronesia (FSM), Republic of the 

Marshall Islands (RMI) and others and continues to meet on a bi-annual basis. 

During the 8th, Micronesian Chief Executives Summit held in CNMI in November 

2007, the Chief Executives passed a resolution to establish the Regional Workforce 

Development Council (RWDC), which was tasked with developing a five-year regional workforce plan and holding strategic planning and implementation sessions 

biannually within the Micronesian Islands. Leveraging local/federal/private funds in 

support of administrative and travel needs for RWDC are priority areas to ensure 

that the Chief Executives’ workforce initiatives are accomplished. 

The RWDC involves representatives from Education, Employment and Economic 

Development to carry out the vision of the Micronesian Chief Executives for Workforce Development in the Region. The first RWDC meeting held on January 28 & 

29th was designed to facilitate communications among all members and stakeholders within the region that lead to an ongoing effort for improved regional workforce development planning and implementation. 

In June 2008, on behalf of the RWDC, GDOL submitted a proposal for federal 

grant funding through the Regional Innovation Grant for such purposes. The purpose is to undertake strategic action planning to maximize opportunities and minimize challenges posed by recent regional economic shocks, including upheaval in 

partner economies (tourism and garment industry declines) and planned military expansion on Guam. 

USDOL ETA’s vision to strengthen our regional communities through a WIRED 

framework launched the ‘‘Peer-to-Peer Technical Assistance Training’’ for the Pacific 

Jurisdiction with Region VI. Region VI embarked on the opportunity to promote effiVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00021 Fmt 6633 Sfmt 6621 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
18 

ciency by identifying staff within the region to provide training and technical assistance in areas demonstrated as a best practice. The probability of success is greater 

when utilizing best practices among regional communities given that the uniqueness, culture, and challenges in workforce issues that are common throughout the 

jurisdiction. An example of a successful outcome of this peer-to-peer training was 

the 2006 deployment of a mirrored version of the Guam Workforce System with the 

Commonwealth of the Northern Mariana Islands (CNMI) now known as CNMI 

Workforce System. In May of 2007, USDOL ETA Region VI accepted CNMI’s first 

ever WIASRD report, a reflection of CNMI’s commitment to accountability. 

In FY2006, Palau received a budget cut in WIA dollars resulting in the delay of 

deploying the system for their island. With the success of CNMI’s report, the desire 

to move the same system to Palau was placed as a priority for both U.S. Department of Labor Region VI and Guam. In line with our State Plan, Guam in conjunction with Region VI, identified funds in their statewide monies and funded this 

much needed project. 

• Local partnerships 

Education, economic development and employment partnerships remain the catalyst for all our programs and initiatives. By shifting the emphasis of workforce 

training from soft skills to vocational opportunities in demand-driven industries, 

GDOL has been able to establish programs based on the true demands of the labor 

market. 

Guam’s priorities, as outlined in the USDOL ETA approved strategic plan include: 

Æ Enhancing Guam’s One-Stop Career Center program delivery for employers, 

employees and career strategies 

Æ Establish a fully integrated workforce investment system 

Æ Adopting and integrating the proposed workforce learning continuum as the 

framework for the Power of E3 

Æ Collaboration with businesses and other non-governmental entities 

Æ Life Long Learning 

Using these priorities, GDOL has since developed and continue to administer the 

following programs: 

Alien Labor 

• Alien Labor Processing and Certification Division (ALPCD) 

The ALPCD continues to streamline its efforts in the processing of H2B applications on Guam. With impending military growth, ALPCD has seen a significant increase in the number of the H2B applications. Strengthening collaborative efforts 

between the U.S. Citizenship and Immigration Service (USCIS), provides opportunity for GDOL to streamline processes and improve enforcement efforts in complying with local and federal mandates. The following page represents the total 

number of number of H2B on Guam to include occupations and miscellaneous 

statistics: 

19 

Workforce Development and Training 

• Apprenticeships and Pre-apprenticeships 

Well before the announcement of military realignment plans for Guam, the island 

recognized the need to diversify industries, promote economic development and increase the skilled workforce. In 2004, the first Workforce Investment Act apprenticeship training pilot program partnership began with the Guam Shipyard and Guam 

Power Authority. In line with the vision of USDOL ETA for supporting demand 

driven occupations, apprenticeship training continues to be a key workforce training 

model in Guam’s state plan and plans of work. Since inception, nearly $1.4 million 

in WIA funding has been invested in participant salaries, benefits and educational 

assistance. 

Guam has also expanded its apprenticeship training through partnerships with 

the Guam Hotel and Restaurant Association, the Guam Contractors Association and 

the Guam Trades Academy. Through federal subsidies, GDOL also supports on-the 

job training and work experience programs with the private sector. 


44613.001.eps
20 

On July 12, 2007, the U.S. DOLETA issued Training and Employment Guidance 

Letter (TEGL) 2-07 listing 13 states including Guam that continue to leverage 

Workforce Investment Act funds to support Apprenticeship Training. 

• Guam Registered Apprenticeship Program 

Public Law 28-142 was signed into law on July 18, 2006 by Governor Felix 

Camacho. This law outlines an act to add a new Chapter 44 to Division 3 of Title 

22 Guam Code Annotated to create a Guam Registered Apprentice Program (GRAP) 

and to authorize the GDOL to contract with businesses pursuant to U.S. Department of Labor, Bureau of Apprenticeship and Training Program Standards, and to 

provide employer incentives for the development of a skilled workforce. 

The intended purpose and objectives of the law and these Rules and Regulations 

is to establish the best possible method for developing employee skills through a formalized apprenticeship training system that is proven cost effective, goal oriented, 

and designed to meet the specific skill needs of the employer. The local mandate 

is in place to encourage businesses to receive tax incentives in exchange for hiring 

and training individuals in demand-driven occupations. The law also appoints the 

GDOL as the agency charged with formulating and administering program regulations. To date the following statistics are provided: 

• Youth Initiative—Learning Continuum 

Passport-to-Careers: Passports-to-Careers is the youth umbrella program led by 

the Guam Public School System (GPSS), Curriculum & Instruction staff taking the 

lead, OSCC partners are diligently coordinating and developing the ‘‘Passport-to-Careers’’ program to bring approximately 500 high school students into the work place 

for career exploration activities. On 7 July 2005, vocational education students reported to private/public sector employers based on industry clusters. Participants 

were afforded the opportunity to career explorations similar or related to their vocational education classroom environment. After summer employment, students return 

to the classrooms, and encouraged to continue their vocational education career 

path. Through the youth Passport to Careers program, the pipeline for youth to 

enter into more structured training with certification is available. Youth who enter 

the Passport to Careers are afforded an opportunity to be exposed to the workplace 

in demand driven occupations such as construction, Information Technology, Allied 

Health, Education and others. 

The year round learning continuum takes a youth through a pipeline system, preparing them for more structured training and providing them with employability 

skills to meet the needs of employers. The goal of PTC is to prepare high school 

students in the Career Path with skills and competencies to enter the workforce. 

This program provides the opportunity for Guam’s youth to participate in the job 

market identified by the power of e3 within the: Construction Trades, Allied Health, 

and Business Technology industries. 


44613.002.eps
21 

• One Stop Career Center 

Guam’s One-Stop Career Center (OSCC) continues to provide job seekers; students and employers access a convenient, reliable, up-to-date broad range of coordinated employment, training and educational services, program information, services 

and resources through a full service One-Stop Career Center System and a network 

of satellite sites to improve employment outcomes. 

In April 2005, the Guam Department of Labor launched their website providing 

resources to our customers via the internet. In July 2005, the GDOL launched their 

on-line job bank resulting to an increase of on-line customers. As of June 2008, the 

GDOL has received a total of 11,781 on-line job applications. 


44613.003.eps 44613.004.eps
22 

• Incumbent Training—Talent Development 

The government of Guam also recognizes the need to develop the skills of employees currently in the workforce who provide critical services to the local community. 

Efforts are underway to revitalize the former Guam Joint Training Board, a collaborative entity of federal and local government human resource personnel. This Board 

would be tasked with leverage resources and assist the government of Guam agencies with ascertaining their manpower and human resource needs for the military 

build-up. 

As a result of this meeting, the focus expanded to include various critical needs 

of government of Guam agencies. After conducting a manpower/human resource 

needs assessment, the group was divided into subcommittees comprised of: 

• Talent Development Subcommittee 

• Standards for Employment Subcommittee 

• Apprenticeship Subcommittee 


44613.005.eps
23 

• Dislocated Worker Training: 

A review of current WIA law and regulations indicates that there is limited local 

policy guidance on serving returning military service members (non-retirees) or military spouses as dislocated workers; and this population may be served with the WIA 

Adult Formula Grant funds in accordance with the requirements of that program. 

Unlike the WIA Adult Program, however, the WIA Dislocated Worker Formula 

Grant Program has basic eligibility criteria that must be met for a participant to 

be considered a dislocated worker. The Jobs for Veterans Act (PL 107-288) provides 

an emphasis on serving by establishing a priority of service for veterans and certain 

spouses in all employment and training programs, administered by the U.S. Department of Labor. 

The WIA Dislocated Worker Formula Grant Program is one of the affected programs, and guidance was issued in September 2003 Training and Employment 

Guidance Letter (TEGL) No. 5-03 explaining how the veterans’ priority of service 

was to be implemented in all employment and training programs, in which it was 

noted, that the veterans’ priority must be applied consistent with programmatic eligibility standards and other priorities mandated by statute, and thus, in order to 

be served in the dislocated worker program, a participant must meet the statutory 

eligibility criteria to qualify as a dislocated worker and then, if the participant is 

a veteran or a spouse of certain veterans, must be given priority over dislocated 

workers who are non-veterans. 

In line with the Dislocated Worker Program intent, GDOL formed a partnership 

with the Airman and Family Readiness Center, Andersen Air Force Base, Guam. 

The partnership promotes training and development opportunities to veteran’s and 

military spouses through the One Stop Career Center. The following statistics are 

the number of military spouses that have been served to date: 

Accountability & Transparency: 

SINGLE AUDIT REPORTS—OVERALL REDUCTION IN DISALLOWED COSTS 

(FY02-FY05): 99.82% AT FINAL DETERMINATION ISSUED BY GRANTOR 

FY2002-FY2004: In February of 2005, the GDOL took over the financial administration of the Agency for Human Resources Development in line with the Governor’s 

Executive Order. The transition of administrative functions encompass a variety of 

outstanding issues with U.S. Department of Labor (federal grantor) specifically responses to Single Audit Reports for FY2002 thru FY2004. 

In 2005 GDOL submitted a response to the Initial Determination which comprised 

of $1,479,593.00 in disallowed costs. As a result of this response the GDOL was able 

to demonstrate allowable activity amounting to $239,852.00. In 2006, U.S. Department of Labor issued a final determination in the amount of $1,239,471.00 in disallowed costs and a demand for payment was issued. Upon receipt of the final determination the department issued a ‘‘Notice to Appeal’’ and requested for retesting of 

documents submitted to the auditor. A result of this request determined that 

$614,258.00 previously disallowed was in fact allowable, a 50.44% in reduction. 

FY2005: On April 17, 2007, USDOL ETA issued the Final Determination resulting in a total amount of $2,240.00 determined as disallowed costs. 

FY2006: On March 31, 2008, USDOL ETA issued the Final Determination resulting in a total amount of $1,234.00 determined as disallowed costs. 


44613.006.eps
24 

As a result of the milestones achieved and internal fiscal and data controls in 

place, GDOL reduced its disallowed costs by 99% for Fiscal Years 2002-2005 and 

was taken off high-risk grantee status by USDOL. The Department also continues 

to receive consistent increases in Workforce Investment Act funding, from $3.4M in 

PY2004 to $5.2M in PY2007. 


44613.007.eps 44613.008.eps
25 

Data Consortium/Workgroup: 

Guam and the insular areas suffers from a lack of current, consistent and regularly maintained data, needed to make sound decisions relating to labor-market and 

economic development trends. There is need for a regional data plan to ensure that, 

ongoing, regular, consistent, accurate information is collected and shared to ensure 

that policy decisions are based on fact, not supposition. In line with the Workforce 

Investment Act 2007-2009 State Plan and Plans of Work (POW) Goal 2, the Labor 

technical team continues to meet with other government partners in updating and 

streamlining data collection efforts. Several strategies for data collection include a 

harmonized data reporting system and a collaborative partnership for consistent 

and validated data. Several strategies and upcoming data collection efforts as 

follows: • Household & Income Employment Survey (HIES) & Funding availability • 2010 Census project preparation • Civilian Labor Force Survey (CLFS) • 2008 Micronesian Survey 

Conclusion 

With the impending military buildup before us, we are called to expand our focus 

and reach beyond our partnership with the federal government, and into the Pacific 

region. GDOL continues to play an active role in the Regional Workforce Development Council, the Civilian Military Task Force and others. Additionally, we must 

educate local employers about ensuring a safe and healthful working environment, 

fair treatment and equal rights for employees, and timely compensation for services 

rendered. We recognize that in order for our current and future workforce to reap 

the benefits of the military buildup, we must look at temporary foreign workers to 

fill the immediate labor needs while developing apprenticeships, internships and onthe-job training in demand-driven occupations for the future and sustainability of 

our island people. 

Madam Chairwoman, this is an overview of the activities at the Guam Department of Labor. I look forward to responding to any questions you may have. 

Mrs. CHRISTENSEN. The Chair now recognizes Ms. Okada for five 

minutes. 

STATEMENT OF MARY A.Y. OKADA, PRESIDENT, 

GUAM COMMUNITY COLLEGE 

Ms. OKADA. Hafa adai, Congresswoman Christensen, Congresswoman Bordallo. 

Greetings from the island of Guam. It is indeed an honor to be 

here this afternoon to provide testimony to the Subcommittee in 

identifying labor solutions for the Guam military buildup. 

Over a year ago, the Guam Community College submitted written testimony to the Subcommittee panel on insular affairs relative 

to the college’s role in preparing Guam for the U.S. military buildup. After submitting such testimony, we were fortunate to have the 

congressional delegation visit our campus, showing firsthand GCC’s 

current capacity and our ability to grow our facilities to meet the 

workforce needs of Guam. 

Since then, the Guam Community College has immersed itself 

with several discussions and activities with organizations such as 

the Joint Guam Program Office and various subcommittees of the 

Civilian Military Task Force. 

In addition to these two important organizations, we are working 

closely with Guam’s business industry as well as our local government agencies to ensure that the Guam Community College is able 

to do its part to provide a well-trained and educated workforce to 

meet the island’s expanding needs. The college continues to solidify 

our relationship with the Guam Contractors’ Association in preparing the workforce for Guam’s construction boom. Both GCA and 

26 

GCC are looking at the future of the island’s construction business 

and have plans to recruit students beginning with our middle 

school so they gain a better understanding of what true opportunities are available in the construction fields. This recruitment and 

education of our program opportunities plays a pivotal role in ensuring the future of our workforce. But our efforts must not stop 

here. We are committed to joining forces to educate our residents 

on the available opportunities this military buildup will bring to 

our territory. 

In addition to preparing for Guam’s construction boom, as 

Guam’s only community college that offers comprehensive programs that lead to an associate’s degree or certificate in over 50 

specialized fields of study, we are continuously identifying the 

changes needed to current curriculum and anticipating the establishment of new programs. With the increase of business partners 

that will rely on skilled worker, the college will continue to be responsive to their needs and the requirements of our growing community. Recipients of these training programs are widespread, 

meeting the demands of our civilian as well as our military communities. 

As participants of the Interagency Group on Insular Areas, the 

college has been successful in identifying and obtaining additional 

resources to support many of our programs. For instance, the college recently received a college access grant that will provide educational opportunities for at-risk low-income students. This will 

strengthen our commitment in providing information and services 

to students for entry into postsecondary education. This recruitment of at-risk students into postsecondary education is essential 

for all phases of the military buildup—pre-construction, construction and post construction. 

We recognize the importance of training and educating our residents on Guam so that they are able to compete in the labor market. Without the increase in this recruitment, we will be unable to 

sustain the future labor market needs with the additional jobs that 

will be available. 

Planning for Guam’s future growth, a few weeks ago the college 

broke ground on the construction of a new allied health center that 

will provide the necessary classroom space for our allied health 

programs, while augmenting laboratory space for our science programs. This new project will help to address health education for 

our island. The new center will provide an additional 24,000 square 

feet of classroom, laboratory and office space to the college. 

This is the first step in increasing our capacity at the college. 

With the completion of this building, the college will pursue other 

health occupational programs. Our current capacity does not allow 

this expansion of programs without the additional space. 

Most recently, the college obtained another construction grant to 

support the expansion learning resources for our students. Having 

expansive resources for our students is critical to success of student 

learning outcomes, continued increases in enrollment and retention 

of current students. 

We appreciate the opportunity to provide input and be part of 

the solution that addresses Guam’s labor shortage. The Guam 

Community College continues to be available to participate and beVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00030 Fmt 6633 Sfmt 6602 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
27 

come an active member of the IGIA’s working committee that will 

allow GCC to assist the IGIA meet the goals and objectives outlined to address labor issues as a result of this unprecedented 

growth. 

We thank the Committee for providing Guam Community College with the opportunity to provide this testimony. We remain 

confident that through our collaborative efforts of the Federal Government, the Government of Guam, the private sector and the people of Guam, we can make this massive endeavor a success for Micronesia. 

As a unified voice on Guam, we continue to support Governor 

Felix P. Camacho’s contention that what benefits the U.S. military 

must benefit every man, woman and child who calls Guam home. 

Chairwoman Christensen, we invite you to come to the college 

and witness the continued growth of the Guam Community College. Please visit our campus whenever possible to see the dedication and commitment we have made to ensure the success of our 

island. If there is any assistance or support that the Guam Community College can provide, please feel free in letting me know. I 

commit to you our ability to serve as part of the solution in addressing Guam’s labor shortage as a result of Guam’s impending 

military buildup. 

Again, on behalf of the Guam Community College Board of 

Trustees, our Board of Governors, faculty, staff, administrators, but 

most especially our students, un Dangkolu na Si Yu’os Ma’ase for 

providing the Guam Community College with this opportunity to 

provide our testimony. We look forward to working with you for the 

benefit of our people and the continued success of our students. 

Thank you. 

Mrs. CHRISTENSEN. Thank you, Ms. Okada. I look forward to 

coming back and seeing the progress you are making. I was impressed with the first visit. 

[The prepared statement of Ms. Okada follows:] 

Statement of Mary A.Y. Okada, President, Guam Community College 

Hafa Adai Congresswoman Christensen and members of the Subcommittee on Insular Affairs, 

Greetings from the Island of Guam! It is indeed an honor to be here this afternoon, to provide testimony for the subcommittee in ‘‘Identifying labor solutions for 

the Guam military build-up.’’ 

Over a year ago, the Guam Community College (GCC) submitted written testimony to the subcommittee panel on Insular Affairs relative to the college’s role in 

preparing Guam for the U.S. military buildup. After submitting such testimony, we 

were then fortunate to provide a campus visit to Congresswoman Donna 

Christiansen and Guam’s U.S. Delegate, Congresswoman Madeleine Bordallo. During the Congressional Delegates visit to our campus, we were able to show firsthand GCC’s current capacity and our ability to grow our facilities to meet the workforce development needs of Guam. 

Since then, the Guam Community College has immersed itself with several discussions and activities with organizations such as the Joint Guam Program Office 

and various subcommittees of the Civilian Military Task Force. In addition to these 

two important organizations, we are working closely with Guam’s business industry 

as well as our local government agencies to ensure that the Guam Community College is able to do its part to provide a well-trained and educated workforce to meet 

the island’s expanding needs. The college continues to solidify our partnership with 

the Guam Contractors’ Association (GCA) in preparing the workforce for Guam’s 

construction boom. Both GCA and GCC are looking at the future growth of the island’s construction business and have plans to recruit students beginning with our 

middle school students to learn what true opportunities are available in the conVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00031 Fmt 6633 Sfmt 6621 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
28 

struction fields. This recruitment and education of our program opportunities plays 

a pivotal role in ensuring the future of our workforce. But our efforts must not stop 

there. We are committed to joining forces to educate our residents on the available 

opportunities this build up will bring. 

In addition to preparing for Guam’s construction boom, as Guam’s only community college that offers comprehensive programs that lead to an associate degree or 

certificate in over 50 specified fields of study, we are continuously identifying the 

changes needed to current curriculum and anticipating the establishment of new 

programs. With the increase of business partners that will rely on skilled workers, 

the college will continue to be responsive to their needs and the requirements of our 

growing community. Recipients of these training programs are widespread, meeting 

the demands of our civilian as well as military communities. 

As participants of the Interagency Group on Insular Areas (IGIA), the college has 

been successful in identifying and obtaining additional resources to support many 

of the programs. For instance, the college recently received a College Access Grant 

that will provide educational opportunities for at-risk low income students. This will 

help strengthen our commitment in providing information and services to students 

for entry into postsecondary education. 

A few weeks ago, the college broke ground on the construction of a new Allied 

Health Center that will provide the necessary classroom space for our Allied Health 

Programs, while augmenting laboratory space for our Science Programs as well. 

This new project will help to address health education for our island. The new center will provide an additional 24,000 square feet of classroom, laboratory, and office 

space to the college. This is the first step in increasing our capacity at the college. 

With the completion of this building, the college will pursue other health occupation 

programs. 

Most recently, the college obtained another construction grant to support learning 

resources for our students. The resources are critical to continued increases in enrollment and retention of current students. 

We appreciate the opportunity to provide input and to be a part of the solution 

that addresses Guam’s labor shortage. The Guam Community College continues to 

be available to participate and become an active member of the IGIA’s working committee that will allow GCC to assist the IGIA meet the goals and objectives outlined 

to address labor issues as a result of Guam’s unprecedented growth. 

We thank the committee for providing Guam Community College with the opportunity to provide this testimony. We remain confident that through the collaborative 

efforts of the Federal Government, the Government of Guam, the private sector, and 

the people of Guam—we can make this massive endeavor a success for Micronesia. 

As a unified voice for Guam, we continue to support Governor Camacho’s contention 

that what benefits the U.S. Military must benefit every man, woman and child who 

calls Guam home. 

Chairwoman Christiansen and members of the Subcommittee on Insular Affairs, 

we invite you to witness the growth of the Guam Community College. I invite you 

to visit our campus whenever possible, to see the dedication and commitment that 

we have made to ensure the success of our island. If there is any assistance or support the Guam Community College can provide your committee, please feel free in 

letting me know. I commit to you our ability to serve as a part of the solution in 

addressing Guam’s labor shortage as a result of Guam’s impending military buildup. 

We look forward to working with you and members of your subcommittee in developing a wholesome plan that will benefit all shareholders—more importantly the 

citizens of Guam and Micronesia. 

Again, on behalf of the Guam Community College Board of Trustees, Board of 

Governors, faculty, staff, administrators, but most especially our students. un 

Dangkolu na Si Yu’os Ma’ase for providing the Guam Community College with this 

opportunity to provide our testimony to the Subcommittee on Insular Affairs. We 

look forward to working with you for the benefit of our people and the continued 

success of our students. 

Mrs. CHRISTENSEN. I now recognize myself for questions; and I 

will start with my colleague, Congressman Underwood. 

One of your last recommendations had to do with the military 

utilizing the University of Guam; and I was wondering, in the past, 

has the military ever approached the university for training or education purposes? Would this be a first? 

29 

Mr. UNDERWOOD. Well, in the past—and we would have to go 

back a couple of decades—the University of Guam was a little bit 

more active in its extension services with the military. Currently, 

these services, educational services are bidded out on a region-wide 

contract that includes services to Japan, Okinawa and Korea. 

What happens is that the University of Guam would have to bid 

for that, instead of looking at the Guam piece separately. And of 

course there is another realistic stumbling block as well, and that 

is much of these activities are done through distance education, 

and the University of Guam hasn’t perfected that in the same way 

that the University of Maryland and Central Texas have. But, in 

any event, what we need is we need to get our foot in the door. 

I have discussed this with General Bice, as well as others. And 

they are willing to listen, and I think they have a sympathetic ear 

on this particular issue. 

I tried to make the case that the Marines and military personnel 

on Guam should have access to, you know, local educational—they 

do have access, but they should have access to these services on 

base as well. And so we look forward to that partnership. 

Mrs. CHRISTENSEN. Thank you. 

And what percentage of the professionals on Guam—the accountants, nurses, IT professionals and et cetera—are trained at the 

University of Guam? And are you prepared, if given the resources 

that you speak about, to increase that? 

Mr. UNDERWOOD. Well, you know, right now I would say—without a lot of follow-up data, I would say that probably a third to 40 

percent of the professionals on Guam who work in basic fields in 

education and nursing and business got their education from the 

University of Guam. The recent Chamber of Commerce asked how 

many had gone to school at the University of Guam, and I think 

about half of the hands went up in the room. So it is a pretty substantial amount. 

But, of course, we are talking about an increased number of professional positions, hundreds of new positions opening up. And we 

can’t sustain—even if we existed at the current level, we would 

probably be preparing less than a third for the new positions that 

are coming up. So that is a source of problems for us. 

Because it is not just a problem for the University of Guam. I 

think it is for the entire kind of socioeconomic structure of the island. And that is if a fair amount—I don’t know what that fair 

amount is—maybe half—of the existing professionals are from the 

island or from the region, then you help create the basis for, you 

know, good-paying positions and people who earn higher salaries 

than—and you sustain a kind of a professional class and a middle 

class for the next generation. And that is the basis upon which we 

think sustainable income, a sustainable economy will be based. So, 

you know—of course, in partnership with the Guam Department of 

Labor and the Guam Community College with whom we work very 

closely and work very well. 

But I think it is kind of like the part of the puzzle, the part of 

the economic puzzle that hasn’t received adequate attention. 

Mrs. CHRISTENSEN. Thanks. Thank you. 

Ms. Connelley, I don’t know if Guam is like the Virgin Islands. 

In the Virgin Islands, a lot of our residents don’t want to work in 

30 

certain kinds of jobs. So my question to you is, are you satisfied 

that the available workforce on Guam is getting ready to take advantage of the opportunities that the pending military buildup will 

bring? And are there more things that we can be doing to assist 

besides finances? 

Ms. CONNELLEY. I firmly believe that the people of Guam right 

now are, especially those unemployed. The unemployment rate on 

Guam is 8.3. So we are after those people who are at least—the 

last report was looking—there were about 5,000 people looking for 

jobs at the time. 

But with the recent—what this military buildup is going to bring 

is that there will be more jobs for base operation support and there 

will be more jobs for the construction industry. With the very competitive salary and the benefits that the Federal service contract is 

now offering and with the latest salary prevailing wage rate that 

the U.S. citizenship and immigration is going to be issuing, I firmly 

believe that our local people will be attracted and our local people 

will be applying for these jobs and working for the private sector. 

Mrs. CHRISTENSEN. Thank you. 

And, Ms. Okada, you mentioned that you are engaged in a number of collaborations with GAGPO and other government and business organizations. Are you satisfied with the collaborative efforts 

thus far and have they been helpful to you in your efforts to prepare Guam residents for the opportunities the buildup would 

bring? 

Ms. OKADA. The collaboration we have had with several of the 

government agencies has helped us build the framework or foundation in moving this project forward. The data that we are lacking 

is to identify specifically which occupational areas and how many 

so that we can plan our growth based on those projections. 

Right now, because we don’t have the projections available to us, 

we are just taking individual requests for certain types of training. 

So until we get specific numbers or a little bit more planning numbers as far as which occupational numbers that will give us time 

to prepare—because some of the curriculum that we need in some 

of the areas need to be developed and we need to get—we need 

some time to collect that information and move it forward. 

But, yes, the collaboration has been very beneficial for us, 

because at least it allows us to talk education at all levels instead 

of just focusing on either the vocational programs in the K-12 environment or postsecondary education. 

Mrs. CHRISTENSEN. Thank you. Thank you. 

The Chair now recognizes Ms. Bordallo for her questions. 

Ms. BORDALLO. Thank you, Madam Chairman. I have a general 

question which you touched on, but I would like to elaborate a little 

bit more. 

Dr. Underwood, you state a goal to partner with the U.S. military in Guam to establish professional development and educational courses. Can you elaborate on the nature of this arrangement and what the program would entail if it developed at the University of Guam? And are there other similar partnerships between 

universities and the Department of Defense for such professional 

development programs? 

31 

Mr. UNDERWOOD. Well, initial discussions have been that, you 

know, a big part of the move to Guam is the headquarters of the 

third MEF. So that implies that there will be a lot of training opportunities. Because they all want their skills upgraded, and they 

will want the opportunity to do things that are degree oriented. 

We believe that this is an opportune time for the university to 

partner with the military to develop unique forms of curriculum for 

these kinds of programs. And they could be masters’ level programs. They could be bachelor level programs. Where we are taking on the issues that are difficult, like how do you deal with communities that are undergoing rapid change? What is the responsibility of an officer corps in dealing with local communities? Just 

basic leadership training. 

We know that the military services have these kinds of unique 

contracts with selected universities. So those are the kinds of 

things that we think will be innovative and different that are both 

tailor made for the Guam experience but also uses the Guam experience to further train fit officers. 

I want to add that this is slightly outside—this is outside the 

scope of the basic educational services that Ms. Christensen asked 

me about earlier, and that is just the way that they bid those basic 

educational services now. We want to get our foot in the door. But 

I think that the fact that the headquarters unit is moving to Guam 

provides the university this opportunity. 

You know, universities are very flexible units. They can bring in 

people. They can create new forms of curriculum. They can be very 

responsive. So we look forward and we relish that opportunity, and 

I know that many of the people responsible and with the military 

buildup have mentioned this. We have even discussed the possibility of partnering even with one of the defense universities to provide this level of training or to do economic analysis of what is 

going to happen in Guam as a result of the military buildup. So 

we are constantly looking for those opportunities, and I think that 

General Bice and others are open to those possibilities. Of course, 

a little nudging from you will help a lot. 

Ms. BORDALLO. So what you are saying, Dr. Underwood, is that 

there are similar partnerships between the military and universities? 

Mr. UNDERWOOD. Yes, that is correct. 

Ms. BORDALLO. Finally, has the IGIA Guam Task Force looked 

into your proposals for establishing this partnership and developed 

any sort of way ahead for its implementation? 

Mr. UNDERWOOD. To my knowledge, no. But, of course, you know, 

that is partially dependent upon the university making its case as 

well; and we will do so. So we will continue to advance this concept 

and with IGIA and anyone else who will listen. 

Ms. BORDALLO. Very good. 

Now, another point I have made quite an effort to get across in 

meeting with the IGIA, Department of the Interior is the fact that 

the MOUs are very important in this buildup. We are facing a very 

important election. In a couple of months there will be a new administration. We want to make sure that any of the agencies that 

you are dealing with as president of the community college, director of labor and the University of Guam, any of these agencies that 

32 

you have been meeting with, it is important that, whatever they 

promise, that this is carried on. There is a continuation. 

So have any of you had any—I will start with you, Mary. Have 

you laid down any proposals between the Federal agencies and the 

community college and suggested, are you for the MOUs? Have you 

suggested this? 

Ms. OKADA. We have had discussions about the MOU based on 

the last IGIA. However, there has been no documented MOU to my 

knowledge on either the Subcommittee on Education; and I don’t 

believe there is any for labor, either. But we are continuing to have 

that discussion with them. Because they recognize the importance 

of continuing what efforts we have already started in collecting the 

data; and the people that are responsive right now from the Federal agencies, we have already established good working relationships with them and we are—it is important for us to be able to 

continue that dialogue with the appropriate members. But we are 

expanding as far as having greater dialogues. 

The Committee on Education is working a lot better now with 

the U.S. Department of Education. Initially, we were under HSS; 

and I believe they are working on or there is a proposal to reposition us. 

Ms. BORDALLO. I would suggest that you be persistent. If you 

don’t hear from them, you know, continue to. Because I think it is 

very important. I am just afraid that, you know, a few months 

down the road new Cabinet people will be appointed; and they may 

say, well, this wasn’t during our watch. 

So, Mary, could you mention on behalf of the Department of 

Labor? 

Ms. CONNELLEY. Yes, ma’am. Most of the people that we are 

working with, the 11 Federal agencies that we are working with either one way or the other, they have—for example, the Department 

of Labor, they are a grantor. So we really don’t need an MOU 

because we get a formal grant from them. 

The Department of—the U.S. Department of Education is another member, and they provide funding to Guam in the insular 

areas, and we are working very closely with them. Because, again, 

they are also providing Federal funds under the Pacific Islands 

Grant. 

Ms. BORDALLO. Very good. 

Dr. Underwood. 

Mr. UNDERWOOD. With those agencies that we have specific 

grants from, of course we have good relationships and we have had 

a number of discussions. But to, I think, your point on the MOUs, 

it is absolutely critical, because this provides the framework for a 

relationship more so than just the framework for a particular 

grant. And that relationship is absolutely key, especially for an institution like the University of Guam, which is somewhat unique. 

And so, you know, if we are—for example, if we are trying to create balance between training opportunities for people in the trades 

and professions and—trades and people in the professions, that 

kind of MOU would go a great way toward establishing a framework through which future granting opportunities, future technical 

assistance opportunities are provided. And so the MOU is absoVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00036 Fmt 6633 Sfmt 6602 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
33 

lutely critical; and I think that we should work a little bit harder, 

I mean, you know, on our end. 

I think, you know, there was a little bit of a misunderstanding 

of the direction that you wanted to take in the MOU. I think people 

are now seeing the very important wisdom of that, because it is 

going to provide the framework for those future opportunities, and 

it is going to help resolve transition issues into the next administration. Because those transition issues, as those of us with a few 

years of political experience on this—weeks, months go by and 

nothing happens and there is no framework. But if you have the 

framework in existence, even the existing bureaucracy, the wheels 

will continue to turn, and there won’t be lost opportunities. So I 

think it is very important. 

Ms. BORDALLO. I thank you, Dr. Underwood. And I certainly 

agree with you. 

I wish—I would like to tell the three witnesses that we do have 

a memorandum of understanding between MARAD and the port. 

So I feel comfortable in that. But for the rest of the agencies, 

GovGuam agencies that are involved in this military buildup, I 

think it is very important that we try to develop something very 

near in the future. 

Madam Chair, I have a very important hearing to attend, an 

Armed Services meeting; and it has to do with the defense authorization bill. Guam has many provisions for the military buildup in 

it, and I want to make sure that those provisions are still there. 

So if you would excuse me for the second panel. But I will have 

staff here. 

Mrs. CHRISTENSEN. Certainly. It is very hard. What we will do 

is, in the interest of time and some of the schedules have been 

changing throughout the day, so I am going to excuse—thank the 

panel for their testimony and for their answers to the questions. 

We probably have more questions for you which we will submit in 

writing, and we would ask that you respond in writing to those 

questions. 

I would now like to call up the second panel, Major General 

David Bice, the Executive Director of the Joint Guam Program Office, and the Honorable Douglas Domenech, Acting Deputy Assistant Secretary for Insular Affairs of the Department of the Interior. 

Ms. CHRISTENSEN. As soon as you are ready, Major General Bice, 

you may start your testimony. 

STATEMENT OF MAJOR GENERAL DAVID F. BICE (USMC 

RETIRED), EXECUTIVE DIRECTOR, JOINT GUAM PROGRAM 

OFFICE 

General BICE. Madam Chair, Congresswoman Bordallo, thank 

you very much. I am pleased to appear before you today on behalf 

of the Joint Guam Program to share information on existing potential labor solutions for the Guam military buildup. 

To meet a total civilian and military construction effort of ap- proximately $2-1/2 billion per year, we estimate between 6,000 to 

20,000 off-island workers will be needed on Guam. These workers 

will require temporary accommodations. The Department of Defense is currently estimating the cost for providing temporary housing for the H visa portion of the workforce supporting the military 

34 

construction effort. We plan to include these costs for these services 

in each U.S. military construction appropriation and Government 

of Japan direct cash contribution project. 

One of the approaches being considered for temporary construction workforce housing and logistics support is to place the responsibility for such support on the individual construction contractors. 

For such an approach to work, the Department would partner with 

the appropriate Federal and Guam agencies to monitor a compliance with underlying worker health, safety, security and labor laws 

and regulations and underlying contract terms implementing such 

laws and regulations. 

Medical and health care support for the temporary workforce is 

also under study. The Department is aware of the challenges facing 

Guam’s medical and health care community, and we do not want 

to add to that situation. Although temporary construction labor 

may fulfill the bow wave of construction needs, the cumulative goal 

for the Federal and Guam officials, as you heard, is to create longterm career opportunities for the populous in the region. 

With the training initiatives being implemented by the U.S. and 

Guam Departments of Labor, I am confident that skill levels and 

earnings potential will rise. A cooperative spirit has been displayed 

by relevant Federal and Guam agencies, and we have established 

momentum required to achieve success. This realignment of forces 

is good for Guam and the surrounding islands, good for the region 

and certainly good for the nation. 

Thank you for this opportunity to discuss the labor issues associated with the realignment of forces in Guam, and I thank you for 

your continued support to this initiative, and I look forward to your 

questions. Thank you. 

Mrs. CHRISTENSEN. Thank you, Major General Bice. 

[The prepared statement of General Bice follows:] 

Statement of David F. Bice, Executive Director, 

Joint Guam Program Office 

Chairwoman Christensen and members of the Subcommittee, thank you for the 

opportunity to testify on the labor solutions for Guam military build-up requirements. As the Executive Director for the Joint Guam Program Office (JGPO), I am 

responsible for the planning and integration of the Department of Defense (DoD) infrastructure capabilities, master plan development, program and budget synchronization, construction oversight, government and business coordination, and strategic 

communications for the realignment of military forces to Guam. 

BACKGROUND 

As mentioned in my last testimony to the Subcommittee, the proposed military 

build-up on Guam is a key component of the United States Alliance Transformation 

and Realignment Agreement (ATARA) with the Government of Japan (GOJ). As 

part of this realignment, the U.S. seeks to increase the flexibility to contend with 

uncertainty; strengthen allied roles; build new partnerships; create the capacity to 

act both within and across regions; develop rapidly deployable capabilities, and 

focus on effective military capabilities 

To accomplish the military and political objectives of the ATARA and military realignment to Guam, both the Department of Defense and the Department of Labor 

(DOL) recognize that large numbers of temporary construction workers will be needed for the military and civil, construction projects that are to occur between now 

and 2014. As documented by the DOL, Guam’s current workforce has an insufficient 

supply of labor to meet the demands of this temporary surge in construction 

activity. 

A major enabler in securing the necessary temporary construction workers needed 

for the Guam military build-up was the passage of the Consolidated Natural Resources Act of 2008, Pub. L. 110-229. This Act, which contains provisions changing 

35 

the immigration laws of the Commonwealth of the Northern Marianas Islands 

(CNMI), waives the cap on H visas, including the H2B visa used by skilled construction workers, for Guam and CNMI. This waiver becomes effective with the start of 

the transition period, which begins in the first full month, one year after the passage of the act, or June 1, 2009, and extends through December 31, 2014. An extension of the transition period beyond December 31, 2014 and the associated H visa 

waiver cap is possible, but only for CNMI. Once construction efforts commence in 

Guam in early 2010, DoD and JGPO will be in a better position to determine if statutory or regulatory relief is required. 

We are grateful to Congress for this visa waiver provision, but may need to extend 

the waiver beyond 2014 should program timelines necessitate. 

LABOR ESTIMATES 

The Department of Defense recently provided a report to Congress detailing the 

status of the Guam Joint Military Master Plan. DoD estimates there are approximately 5,600 construction workers currently available in Guam today. Naval Facilities Engineering Command (NAVFAC), the Department’s construction execution 

agent on Guam, estimates between 5,000 and 10,000 construction workers are needed to execute approximately $1B of construction work in place (WIP) per year. 

NAVFAC also estimates that between 12,000 and 25,000 construction workers 

would be required to execute $2.5B of WIP annually on Guam. Therefore, an estimated 6,000 to 20,000 off-island workers will be required to reach the necessary 

work force strength. The NAVFAC study estimated that approximately 6,000 workers are expected to migrate to Guam from the continental United States or Hawaii 

to support the construction effort. The remainder would come from either the Commonwealth of the Northern Mariana Islands, Freely Associated States, or from other 

foreign locations as non-immigrant construction workers requiring H2B visas. 

Through the State Department and Department of Interior, we have been working 

to establish a network of available workers in the Pacific Territories and States. 

This database will be provided to industry via the DOL websites and the industry 

forums. 

LOGISTICS FOR LABOR INFLUX 

The significant increase in construction workforce on Guam will require a temporary increase in accommodations. The development and ultimate decision regarding the appropriate solution or solutions for workforce housing and logistics is ongoing, and part of overall program planning being conducted with industry and the 

Government of Guam (GovGuam) stakeholders. Some key factors driving development of potential solutions include costs, durability, post-construction (secondary) 

use of facilities; risk to government and contractors, and post construction benefits 

and impacts. DoD is currently estimating the approximate cost for providing temporary construction workforce housing. Costs to provide these services will be funded respectively in each U.S. MILCON appropriations and GoJ Direct Cash Contribution projects. 

One of the approaches being considered for temporary construction workforce 

housing/logistical support is to place the responsibility for such support on the individual construction contractors. The Department is still evaluating the strengths 

and weaknesses of this approach from both a contracts management and a community benefit perspective. The Department understands that for such an approach to 

work, the contract documents, the source selection process, and contract administration would have to ensure management of large numbers of temporary construction 

workers. Additionally, for such an approach to work the Department would partner 

with the appropriate Federal and GovGuam agencies to monitor compliance with 

applicable worker health, safety, security and labor laws and regulations, and the 

contract terms implementing such laws and regulations. 

Other options considered for adequate workforce housing include: 

• DoD funded workforce housing on DoD property under MILCON authority, with 

post-construction (permanent) use for barracks, training facilities, etc. 

• DoD funded temporary workforce housing on DoD property as an overhead cost 

on large construction contracts. This concept involves industry building durable 

temporary facilities as required, and dismantling worker accommodations after 

the project is complete. 

• Privately funded construction and operation of worker housing on GovGuam 

property that can subsequently be adopted for public use (affordable housing). 

This concept includes partnerships with GovGuam and private industry to create public/private ventures. 

36 

• Establishment of logistics contracts to provide durable temporary worker housing as part of an overall logistics contract that includes housing, medical, transportation and other services. 

No matter what solution or solutions are implemented to address temporary construction workforce logistics, the Department will partner with appropriate Federal 

and Guam authorities to ensure the safety and security of all temporary construction workforce personnel. 

The Department will include enforcement by proper authorities of appropriate 

standards to ensure the safety and security of all transient workers in housing complexes including: 

• Safe and secure living conditions for transient personnel 

• A standard-of-living commensurate with U.S. & Guam housing standards 

• Suitable physical security and accommodation of cultural diversity 

Medical and healthcare support for the temporary workforce is also under study. 

The Department is aware of the challenges facing the Guam medical and healthcare 

community, and we are looking for ways to mitigate and perhaps even improve the 

situation for all concerned. 

TRAINING PROGRAMS 

Through the Interagency Task Force meetings co-chaired by JGPO and the Department of Interior Office of Insular Affairs, the Department of Labor has been 

making progress in helping the Guam Department of Labor prepare the Guam 

workforce for the opportunities this strategic realignment brings. The Guam Department of Labor is focused on preparing the local citizens to meet the long-term career 

oriented job opportunities that this strategic initiative offers. These opportunities include the construction trades and the full range of professional and service skills 

typically found in our highly technical and skilled defense related businesses. DoD 

endorses this approach and is aware that the construction program will expand and 

contract and a stable, skilled workforce will be needed by the DoD activities on 

Guam and accompanying defense industry. 

Even as we set a completion target for the construction activities surrounding the 

Marine relocation, we expect the demand for skilled construction workers on Guam, 

on-base and off, to be significantly higher than it is today. At the local level, the 

Guam Community College has expanded their Construction Trade Program to include a diesel mechanical course and construction boot camp. It is clear that the 

educational institutions on Guam understand the new demand for a full-fledged 

labor training and development program and are expanding as industry needs become more apparent. 

Beyond Guam, we do know that we will also be relying on the outer islands to 

partake in job opportunities. The Guam Contractor’s Association’s Trades Academy, 

which was officially established in 2006, is also stepping up to the plate to assist 

in filling the island need for skilled labor. The Trades Academy has increased classes within their four year program that already includes heavy equipment, safety, 

carpentry, heating/ventilation/air conditioning and electrical trade’s skills. 

The Trades Academy guarantees job placement to all students, even prior to graduation and has placed students with 45 companies. The academy also offers 

credentialed construction skills to under-employed workers. This is important, given 

the strong desire by DoD, Guam, and the insular islands to develop a talent pool 

that fills enduring job vacancies that will sustain a healthy economy well beyond 

the completion of the strategic realignment. 

Temporary foreign labor is not the ultimate focus of the Program’s labor effort. 

Although temporary construction labor may fulfill the bow wave of construction 

needs, the cumulative goal for Federal and Guam officials is to create long-term career opportunities for the populace in the region; the kind of job opportunities that 

raise skill levels and earning potential. 

Recent actions by the U.S. Citizenship and Immigration Service (USCIS) to raise 

wage rates for H2B construction workers on Guam will ultimately benefit Guam as 

a whole as the economic standard of living rises for all those in the construction 

trades. We are confident that the studies and analysis conducted by USCIS accurately reflect the economic environment and will bring stabilization to long term 

labor costs associated with Guam military buildup construction contracts. 

CONCLUSION 

This strategic realignment on Guam requires a coordinated effort among all Federal and Guam agencies. Collectively we have made great strides in moving in the 

right direction to solve the many issues we face. Continued coordinated planning to 

address temporary construction workforce housing and logistics issues and enduring-job training initiatives require participation from various entities to ensure sucVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00040 Fmt 6633 Sfmt 6621 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
37 

cess. Based upon the cooperative spirit that has been displayed to date by the relevant Federal and Guam agencies, I am confident that we have established the momentum required to achieve success within the desired timeline. I encourage us all 

to continue to move forward in our common goal of promoting security in the region. 

Thank you for this important opportunity to discuss the labor issues associated 

with the realignment of forces on Guam. I also thank you for your continued support 

and dedication. 

Mrs. CHRISTENSEN. The Chair now recognizes Mr. Domenech for 

his testimony. 

STATEMENT OF THE HONORABLE DOUGLAS W. DOMENECH, 

ACTING DEPUTY ASSISTANT SECRETARY FOR INSULAR 

AFFAIRS, DEPARTMENT OF THE INTERIOR 

Mr. DOMENECH. Thank you, Chairwoman Christensen and 

Madam Bordallo. It is good to see both of you again. And Secretary 

Kempthorne sends his greeting, as usual. 

Madam Chair and members of the Subcommittee, thank you for 

the opportunity to testify on identifying labor solutions for the 

Guam military buildup. 

As you know, under the proposed Guam military buildup, approximately 8,000 U.S. Marines and 9,000 dependents will be shifted from Okinawa, Japan, to Guam. It is anticipated that Guam employment will benefit in two ways: first, through the initial construction-related jobs and, second, through permanent new defense 

and nondefense jobs to support the new military mission. 

The more immediate concern, as you know, however, is finding 

labor for the construction phase of the buildup between 2010 and 

2014. It is estimated that perhaps up to 15,000 people will be needed for constructing military facilities and another 5,000 to 7,000 for 

construction in the civilian areas of Guam. Labor from outside 

Guam will likely have to be imported. 

Contemplating the challenges ahead, it was decided that the 

IGIA should establish a Guam Task Force to coordinate the military buildup issues across all the Federal agencies. The task force 

has established five working groups. One of them is specifically on 

labor, and that group has been very active. 

As you know, the Department of Labor issues regional innovation 

grants—they were discussed earlier—the RIG grants for regional 

labor planning. The IGIA has encouraged Guam to apply for such 

assistance, which they have. The Guam region in this case—for the 

purposes of the application, the Guam region would include, of 

course, Guam, CNMI, the Marshall Islands, Micronesia and Palau. 

When completed, the plan would define the existing regional workforce supply and skill levels, the kind of raw data that we need and 

identify any gaps that would affect the present and future economy 

of the region. The plan would also set out strategies to address 

those identified needs. So we are very anxious to have the results 

of that. 

Up to this point, Interior funding has been aimed at expediting 

this planning process. In March, the Office of Insular Affairs provided Guam a technical assistance grant to aid in the writing of 

the Guam grant application to the Department of Labor for the regional plan. OIA and Labor believe that a solution to Guam’s workVerDate Aug 31 2005 10:42 Feb 05, 2009 Jkt 000000 PO 00000 Frm 00041 Fmt 6633 Sfmt 6602 L:\DOCS\44613.TXT Hresour1 PsN: KATHY
38 

force issues can only be realized through this regional collaboration. So that is the aim of the plan. 

Within the IGIA’s Labor Group, discussions of the labor supply 

have centered on two main issues, the availability of United Stateseligible labor and the availability of foreign labor. The massive 

scale of the Guam military buildup makes the importation of foreign labor inevitable. For this reason, Congress included a provision lifting the cap on H visa workers in Guam. Because there is 

a large supply of labor in nearby countries, the labor needs of this 

immense project should be met. 

Discussion and effort now revolve around the United States-eligible labor and how to attract such workers to Guam. The United 

States-eligible workers, of course, include persons who are U.S. citizens, United States permanent residents and freely associated 

state citizens from the Marshall Islands, Micronesia and Palau. 

The United States-eligible labor and available labor takes precedence over foreign labor for jobs that will become available on 

Guam. Therefore. We are pursuing a mechanism that requires that 

employers first advertise the job regionally. Then only if no qualified U.S.-eligible applicant applies can the employer apply for a 

United States visa for a foreign worker to work on Guam. 

Mr. DOMENECH. While the labor needs are daunting, we believe 

that looking to the U.S.-eligible labor first will be a significant part 

of the solution. The labor group is discussing possibilities for outreach to persons living in the 50 States, as well through the Internet and notices postings to unions and employers and military for 

returning veterans. 

OIA has specific concern for the United States-eligible labor in 

the territories of Guam, CNMI, FSM, the Marshall Islands, and 

Palau. Word, of course, is already out in these jurisdictions that 

there will be jobs in Guam. The challenge is to connect that labor 

on these other islands with other employers in Guam. 

Interior is exploring the establishment of a job match system to 

connect potential workers with employers in Guam. In the Freely 

Associated States, workers may need further instruction in English 

and math, as well as the cultural differences that they may experience in Guam. In addition, resumes or job applications need to be 

developed. Transportation to and housing in Guam may need to be 

arranged as well. 

Apprenticeship programs like the ones that have been discussed 

earlier are a key factor in this as well. In these efforts, the Department of the Interior will be seeking to help the Freely Associated 

States eliminate difficulties in getting their workers from their 

home island to jobs in Guam. 

In addition, we have a concern, final concern, that the workers 

who are from off-island locations receive comparable wages and 

benefits; and we are actively working through both the IGIA process and with other Federal agencies to raise awareness on that 

issue. 

Thank you very much. 

Mrs. CHRISTENSEN. Thank you, Deputy Assistant Secretary. 

[The prepared statement of Mr. Domenech follows:] 

39 

Statement of Douglas Domenech, Acting Deputy Assistant Secretary for 

Insular Affairs, U.S. Department of the Interior 

Madam Chair and members of the Subcommittee on Insular Affairs, thank you 

for the opportunity to testify on the identification of labor solutions for the Guam 

military build-up. 

LABOR NEEDS 

Under the proposed Guam military build-up, approximately 8,000 United States 

Marines and 9,000 dependents will be shifted from Okinawa, Japan to Guam. Construction of new defense facilities to accommodate this influx of personnel is scheduled to start in 2010, with the relocation to be completed in 2014. The cost of new 

infrastructure to be installed could exceed $10 billion. 

Guam employment will benefit from the build-up in two stages: (1) initial facility 

building and improvements will create a large number of high-paying constructionrelated jobs for several years and (2) permanent new defense and non-defense jobs 

to support the new military mission. 

Federal civilian payroll in Guam at the end of 2007 numbered 3,610, of which 

3,040 or 84.2 percent were civilian DOD employees. Non-DOD Federal employees 

were 570 or 15.8 percent of the total. There is roughly one civilian employee for 

every two active duty persons on Guam. Assuming an addition of about 8,300 Marines and 4,510 active duty personnel in other military services when the build-up 

is completed, the number of active duty personnel would increase from 6,520 today 

to 19,330 in 2014. Current estimates of new civilian jobs on Guam resulting from 

the build-up are as many as 6,000. Given today’s total payroll employment figure 

of just over 60,000, this would be a 10 percent increase overall in civilian employment after 2014. 

Our more immediate concern, however, is finding labor for the construction phase 

of the build-up—2010 to 2014. Labor of all skill levels will need to be secured. It 

is estimated that 15,000 persons will be needed for constructing military facilities, 

and another 5,000 to 7,000 for construction in the civilian areas of Guam. The current local work force on Guam will not be able to satisfy all of these labor needs. 

As a result, some labor from outside of Guam will have to be imported. 

IGIA AND INTERIOR EFFORTS 

Contemplating the challenges ahead, it was decided that the Interagency Group 

on Insular Areas (IGIA) would establish a Guam Task Force to coordinate military 

build-up issues that cross jurisdictional lines of Federal agencies. Interior and Joint 

Guam Program Office (JGPO) are leading the Task Force effort. The Task Force has 

established five working groups: Labor, Infrastructure, Environment, Health and 

Human Services, and Socio-Economic. The Labor Group has been playing a prominent role. 

U.S. Department of Labor Regional Innovation Grant (RIG) Program 

The Department of Labor issues Regional Innovation Grants (RIG) for regional 

labor planning. Members of the IGIA have encouraged Guam to apply for such assistance for use in developing a plan that would anticipate labor demand and supply 

for the Guam region. The Guam region would include Guam, the Commonwealth 

of the Northern Mariana Islands (CNMI), the Republic of the Marshall Islands, the 

Federated States of Micronesia, and the Republic of Palau. Both U.S. DOL and OIA 

have collaborated with Guam on the submission of a RIG application. When completed, the plan will define the existing regional workforce supply and skill levels, 

and identify any gaps that could affect the present and future economy of the region. The plan will also set out strategies to address those identified needs. 

Up to this point, Interior funding has been aimed at expediting this planning 

process. In March 2008, the Office of Insular Affairs provided Guam a technical assistance grant of $15,000 to aid the writing of the Guam grant application for U.S. 

Department of Labor funds to develop a regional labor plan. IGIA continues to work 

closely with U.S. DOL as a regional labor plan is developed. 

It should noted that both OIA and Labor believe a complete solution to Guam’s 

workforce issues can only be realized through regional collaboration. Regionalism 

makes sense here for several reasons, chief among them is the synergy generated 

by more compact economic development patterns. 

Foreign Labor 

Within the IGIA’s Labor Group, discussions of the labor supply have centered on 

two main issues, availability of United States-eligible labor and availability of foreign labor. Those who have looked at the issue closely agree that the massive scale 

of the Guam military build-up makes the importation of foreign labor inevitable. For 

40 

this reason, Public Law 110-229 included a provision lifting the cap on H visa workers in Guam (and the CNMI) for a period of five years ending in 2014. Because 

there is a nearly inexhaustible supply of labor in nearby Asian countries, the labor 

needs of this immense project can be met. 

United States-Eligible Labor 

Discussion and effort now revolve around United States-eligible labor and how to 

attract such workers to Guam. United States-eligible labor includes persons who are 

United States citizens, United States permanent residents, and freely associated 

state citizens. By agreement in compacts of free association, citizens of the Republic 

of the Marshall Islands, the Federated States of Micronesia, and the Republic of 

Palau are eligible to live and work in the United States and its territories. These 

three island countries are in relatively close proximity to Guam. Residents of Guam, 

of course, and residents of the adjacent CNMI who are United States citizens are 

also eligible to work in Guam. 

United States-eligible and available labor takes precedence over foreign labor for 

jobs that will become available on Guam. A helpful approach will be to pursue a 

mechanism that requires that employers will first advertise a job regionally. Then, 

only if there is no qualified, United States-eligible applicant, can that employer 

apply for a United States visa for a foreign worker to work on Guam. While the 

labor needs are daunting, we believe that looking to the United States first will be 

a significant part of the solution. 

Outreach 

Part of the problem in attracting United States citizen workers will be both distance and lack of knowledge of the opportunities that will be available on Guam. 

The Labor Group is discussing possibilities for outreach to persons living in the fifty 

states by utilizing internet sites and notices for posting by unions and employers 

and the military for returning veterans. 

The Office in Insular Affairs has specific concern for United States-eligible labor 

in territories of Guam, and the CNMI, and the freely associated states of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic 

of Palau. Word is already out in these jurisdictions that there will be jobs in Guam. 

The challenge is to connect the labor in these other island areas with the employers in Guam. The Department of the Interior is exploring the establishment of a 

hands-on job match system—or ‘‘regional labor exchange’’—to enable the matching 

of potential workers with employers in Guam. In the freely associated states, many 

persons may need further instruction in English and math, and the cultural differences that they will experience in Guam. Resumes will need to be developed in 

advance, so that the job applicant will be ready when the job is announced. Transportation to Guam and housing in Guam will need to be arranged. Apprenticeship 

programs on Guam will be another opportunity available to persons from Guam and 

the surrounding islands. These programs will teach more specialized skills. In these 

efforts, the Department of the Interior will be seeking to eliminate difficulties in 

getting individual workers from their home islands to jobs and job programs in 

Guam. 

One concern we have is that workers, both United States-eligible labor and foreign, will receive comparable wages and benefits. We are actively working, both 

through the IGIA process and with other Federal agencies, to raise awareness of 

these issues. 

Mrs. CHRISTENSEN. The Chair now recognizes Ms. Bordallo for 

questions. 

Ms. BORDALLO. Thank you. Thank you very much for the opportunity to ask the questions first. 

And thank you very much, Secretary Domenech. 

General Bice, I have a few questions. I am a proponent for training programs for local workers on Guam. Training programs, as 

Ms. Connelley notes in her testimony, are critical in ensuring our 

local workforce has the skills needed to assist in this buildup. 

Now, to that extent, what is the Joint Guam Program Office, in 

conjunction with NAVFAC, doing to ensure that local labor forces 

will be utilized first before outside workers are sought? And are 

41 

local hiring requirements going to be built into contracts released 

by NAVFAC? 

General BICE. Thank you, Congresswoman Bordallo, for the 

question. 

Two elements to your question: One is the H Visa process. As I 

understand it, before an H Visa is granted, there is assertion that 

there is no local, able, willing, and capable worker ready to fulfill 

that job; so every job fulfilled by an H-2B Visa applicant, that there 

is a process we go through, and the Guam Department of Labor 

goes through to determine that there is no one locally available to 

fulfill that job. That is the first thing. 

The second thing is that from all the businesses that I have been 

in touch with, and in our own situation for the Joint Guam Program Office, we would rather hire locally first because that is 

where expertise is. 

So we are looking for local labor talent first. I know that the 

businesses are doing the same. They want to hire the local businesses and local labor to fulfill their requirements. I think that will 

continue. 

The question you had on the contracts. Currently, with small 

businesses, especially in Guam, 40 percent of all contracts awarded 

by NAVFAC-Marianas are awarded to small businesses in Guam. 

That is a significant number of contracts to go to local communities 

there. 

So the fact that current contributing awards to small businesses 

in Guam, as well as the labor hiring practices, just from all practicality, the businesses will be looking for local talent first before 

they go off island. 

Ms. BORDALLO. What you are saying is that the local hiring requirements are being built into the contracts; is that correct? 

General BICE. That is correct. 

Ms. BORDALLO. Very good. 

My second question here to you, General, you stated in your testimony one of the approaches being considered for temporary construction workforce housing and logistical support is to place the 

responsibility for such support on the individual construction contractors. 

You further state that the Department is investigating other 

methods to solve questions about workforce housing for temporary 

construction workers. 

I am concerned that placing the responsibility of workforce housing on individual contractors ducks the Federal Government’s role 

in oversight of the well-being of individuals supporting their 

projects. 

Now, we have seen this acquisition strategy in Iraq and Afghanistan fail time after time. When can we expect a final decision on 

how the Department will solve the issue of workforce housing? 

Moreover, if the Department decides upon a unified housing strategy, where could we expect to see funding for this initiative come 

from? 

General BICE. Thank you for that question. 

This is one of our most important areas when it comes to our 

workforce, ensuring that particularly the H-2B Visa workers—to 

42 

assure that they are housed in a safe, secure manner that meets 

all of our requirements. 

Currently, there is a process in Guam today that assures that 

process. I have had my staff go out with the local Department of 

Labor inspectors as they go out there and inspect the facilities in 

which the workers, temporary workers, H-2B workers are living; 

and we are satisfied that that is a good process. We are going to 

incorporate that process into our contract. 

So we will judge the capability of the contractor and that contractor’s ability for future contracts based upon their compliance with 

meeting these requirements, that is, ensuring that the workers are 

housed safe and secure, that they are taken care of, and all matters 

of standards are being met. We will rely on the Department of 

Labor to provide us those reports. 

We will also go out and spot check to make sure those standards 

are upheld. 

Ms. BORDALLO. Would we need funding for this initiative? 

General BICE. As I stated, that will be worked into the construction cost for each project. We will work that in, and that will be 

an overhead cost that will be worked into each project that we will 

ask an appropriation for. 

Ms. BORDALLO. There is one other question, General Bice, and 

this concerns me a great deal because I sit as Chair of the Health 

Committee on the KPAC Caucus. 

There is a concern on Guam that health facilities are already 

strained. How can you address health care issues for guest workers, and is it possible to require contractors to provide health insurance through Guam providers to ensure that these health needs 

are addressed? 

General BICE. Currently, we are studying that issue at this 

point. Yes, we are going to require contractors to provide health 

care to their workforce. They certainly will do it for the local job 

sites, first aid clinics and the like there. 

What we are looking for is the third level of care. This is care 

that would require outpatient clinics. So for x-rays or blood work 

or lab work we are evaluating to see what solution can be provided. 

Even today in Guam I have a team that is going around and looking at potential clinics to see how we can use those capabilities 

that you already have in Guam and, again, put that into our contract overhead to provide that funding. 

We are also looking at the naval hospital to see if there is a potential solution there. We have examples around the world where 

we use the existing naval hospital to provide some level of care to 

workforce. It is not the ideal solution in Guam, but it is certainly 

an option to be considered. 

We expect to have an answer in the not-too-distant future on 

which option we are going to choose there. 

Ms. BORDALLO. Well, what I am thinking here is, say a large corporation comes in, wins a bid for contracting, and they probably 

have their own insurance from their companies abroad. What I am 

concerned about is, would they provide health insurance through 

Guam providers? 

General BICE. Are you talking about Guam insurance companies? 

Ms. BORDALLO. That is correct. 

43 

General BICE. I don’t know what they would be providing there, 

but I do know that we would require them to provide health care 

and/or health care insurance. Our concern is Guam Memorial Hospital and the capacity of Guam Memorial on taking on additional 

patient load. In all the briefings that I have seen and heard from 

Guam Memorial, they are at max, if not over capacity, in patient 

load. So what we are trying to find are solutions to not exacerbate 

that problem that they have at Guam Memorial. 

So we are hooking at private clinics on Guam to see if there are 

solution sets there and whether, through insurance or direct cash 

payments, that medical care can be provided. 

Ms. BORDALLO. Could we perhaps include providing health insurance through Guam providers as a preference? 

General BICE. Could I take that question and get back to you on 

that? 

Ms. BORDALLO. Yes. All right. 

General BICE. Thank you. 

Ms. BORDALLO. Thank you. 

I yield back my time, Madam Chair. 

Mrs. CHRISTENSEN. Thank you, Ms. Bordallo. You didn’t leave me 

many questions to ask, but I am going to start with this. 

Let me start with Deputy Assistant Secretary Domenech. We appreciate hearing that the members of the IGIA encouraged Guam 

to apply for Regional Innovation Grants to develop a plan that 

would anticipate labor demand and supply for the Guam region, 

and that they have actually applied for some of those grants. 

Since the Guam region encompasses CNMI, FSM, as well as the 

Republic of Palau, were those respective governments also consulted to get their input on the plan and how it would benefit them 

and their residents? 

Mr. DOMENECH. My understanding of how the grant process 

works for the RIG grant is that that consultation is actually part 

of the development of the plan. So my understanding—and we even 

had an update as we walked in here to the room—is that Guam 

has applied for that initial funding from the Department of Labor; 

and with initial thumbs up from them—and I think they analyze 

it for a month or so—hopefully, they will get the bigger grant that 

will develop the regional plan. That is when the consultation happens. 

Mrs. CHRISTENSEN. OK. Thank you. 

You mentioned also that there were a number of challenges in 

connecting the labor in these other islands with the employers in 

Guam. In this regard, what efforts might the Department or had 

the office been taking to eliminate some of the difficulties in getting 

the individual worker from their home island to jobs and job programs on Guam? 

Mr. DOMENECH. That plan is essentially still in development, but 

what we envision is using our representatives out in all those islands to create the kind of database connection with each of the 

local islands to connect to their community college system and university system to facilitate, essentially, that kind of connection. 

Mrs. CHRISTENSEN. Thank you. 

I guess this could be both of you, and it sort of repeats a question 

that Congresswoman Bordallo asked, but we just want to be very 

44 

clear on it because last year both DOD and DOI testified before the 

Subcommittee that Guam’s labor pool would not be sufficient; and 

we passed legislation placing Guam outside of the H-2B caps. 

Throughout the legislative process we have always been assured 

that Guam residents would be looked to first, and then the U.S. 

Mainland and the Pacific region, prior to exercising the authority 

Congress has authorized with respect to the H-2B Visa. 

So my question is just to reiterate: Can both of you reiterate your 

support here today to employ residents from Guam, the region, and 

the U.S. mainland, before seeking H-2B visas? 

General BICE. Yes, ma’am. The application for the H Visa requires the local department of labor to certify that there is no 

worker on Guam that is ready, willing, and able to perform that 

task. We will follow that process. 

Mrs. CHRISTENSEN. But after you certify that there is no one on 

Guam, the U.S. mainland, and the region would also come before 

you and seek an H-2B Visa employee? 

That is also the assurance that we want to have. 

General BICE. Certainly, that the employers will look for—if they 

are on Hawaii or the mainland, they will be looking to see and 

making advertisements available there. But right now there are 

1,700 H-2B Visa workers on Guam today, so the process is working 

to look at Guam first before they go to elsewhere to look for an H2B applicant. 

Mr. DOMENECH. That would be our position as well. We completely support the way you have described it here, Guam labor 

first. 

Mrs. CHRISTENSEN. The U.S., the region first, U.S. citizens, 

nationals? 

Mr. DOMENECH. U.S.-eligible labor first. 

Mrs. CHRISTENSEN. OK. Thank you. 

General Bice, a recently updated GAO report, at least last week, 

continues its observation that the local infrastructure is inadequate 

to meet the demand required for the buildup, and that Guam officials remain concerned that the number of workers needed will 

strain their services, such as emergency care medical facilities, 

housing, and transportation. 

In response to Congresswoman Bordallo, you addressed some of 

the medical facility issues. Your testimony now reflects temporary 

workers in the range of 25,000. That is in addition, I think, to the 

number that the GAO may have looked at. 

So how is the Federal Government responding to these concerns 

raised by both the GAO and Guam? What role do you expect the 

local government to play in responding to these new worker numbers and the GAO concerns? 

General BICE. Thank you, Madam Chair, for that question. 

We will continue to coordinate with the Government of Guam, especially the department of labor, as we look at these requirements. 

Certainly, we can establish in our contracting provisions that if 

there is additional need for workers, that we ask the contractors 

to bring them in from off-island. 

We know that Guam medical services especially are under strain 

for shortages of nurses and doctors, and we do not want to take 

away from Guam Memorial Hospital to staff nurses in a clinic that 

45 

we establish there. We will consult with the Government of Guam, 

and if need be, we will require the contractor to bring those medical care workers from off-island. 

Mrs. CHRISTENSEN. And housing? 

General BICE. We will get the housing for the temporary workers 

as we described. We will be monitoring that, especially for the H2B Visa workers, and that—we anticipate that we are going to 

have to have the construction contractors to build housing to accommodate those workers. 

Mrs. CHRISTENSEN. Thank you. I have no further questions. 

I will recognize Ms. Bordallo if she has any questions. 

Ms. BORDALLO. Thank you, Madam Chairman. Just to sum up. 

I found out I do not have to attend that Armed Services. I guess 

we got everything through. 

Secretary Domenech, we have emphasized earlier the need for 

MOUs as a roadmap for the incoming administration. Is it a priority of the IGIA to assist in this process, and is the MOU between 

MARAD and the Port of Guam a good example for other Federal 

agencies? 

Mr. DOMENECH. It certainly could be. 

I am not aware of any resistance to your idea of doing the MOUs. 

I would, in fact, like to work with your staff to see if we can’t begin 

the process of detailing exactly how that would be. I think the Secretary would be very supportive of your idea of creating some kind 

of bridge to the next administration that lays out commitments as 

much as we can commit to a pathway to help Guam. 

Ms. BORDALLO. Yes. There is always the situation where someone new coming in, it just wouldn’t be a priority. We can’t let that 

happen. This is too big a thing and too many people involved, and 

the anticipation and all would be just devastating. 

Mr. DOMENECH. We have talked with your staff before. This Secretary, maybe more than any previous one, has been so focused on 

helping the ancillary areas that now is the time to try to get that 

done. 

Ms. BORDALLO. He has been very cooperative. I thank him very 

much for that. 

I have another question for General Bice. 

The issue with housing and insurance for H-2B workers can be 

addressed through the contracts. However, the burden for eligible 

workers from the region, such as FSM and the other Micronesia 

areas, will continue to be an issue. They are not coming in on the 

same DOD contracts. 

How are you going to handle that? 

General BICE. Thanks for the question. 

We will work with the Government of Guam on that to see what 

requirements are needed for the housing. I know the Governor has 

asked me specifically to address the H Visa workers. His main concern was to ensure that they are accommodated in a safe, secure 

manner, and they meet the standards that we all expect people to 

be living in. So that has been our focus and our efforts so far. 

I will consult with the Government of Guam and the Governor 

himself to see what needs to be done, if anything, to accommodate 

those workers. 

46 

Ms. BORDALLO. These contract workers are going to be looking at 

benefits. We can’t have anything unfair or we are going to have a 

real problem. So I think that is an important issue. 

How will we provide funding for this? 

General BICE. Well, the workers today, the H Visa workers today 

get a housing allowance from the contractors, and their housing allowance pays for their accommodations. In most cases, they don’t 

have to build the facility; they contract those facilities, and that 

contracted facility is paid for by the contract itself. 

Ms. BORDALLO. Yes, I understand that. But what about this 

other category? 

General BICE. I am not aware of any issue dealing with housing 

for the non-H Visa workers. I am not aware of any problems there, 

ma’am. 

Ms. BORDALLO. Well, for Micronesians, for one thing, I know it 

is very important, because I know we will be getting a lot of these 

people that are interested in working for the buildup. 

Have you not discussed it? 

General BICE. Certainly, that issue has not been brought to my 

attention by the Governor, no, ma’am. 

Ms. BORDALLO. I think we should put that down as an issue, 

because it is going to come up. 

General BICE. I will discuss that with him. 

Ms. BORDALLO. All right. 

Madam Chairman, I don’t have any further questions. Thank you 

very much for the time. 

Mrs. CHRISTENSEN. I thank Ms. Bordallo for her questions, and 

I thank the witnesses for their valuable testimony and their 

thoughtful answers. 

Members of the Subcommittee, as I said earlier, may have additional questions for the witnesses, and we would ask for you to respond to these in writing. The hearing record will be open for 10 

days for these responses, as well as any additional testimony. 

Mrs. CHRISTENSEN. If there is no further business before the 

Subcommittee, the Chairman again thanks the members of the 

Subcommittee, Ms. Bordallo, and our witnesses. 

The Subcommittee stands adjourned. 

[Whereupon, at 3:29 p.m., the Subcommittee was adjourned.] 

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