To amend title 10, United States Code, to require payments to contractors for subcontracting with Pacific Insular Area concerns, and for other purposes.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9453 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 9453

     To amend title 10, United States Code, to require payments to 
contractors for subcontracting with Pacific Insular Area concerns, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 3, 2024

 Mr. Sablan (for himself and Mrs. Radewagen) introduced the following 
      bill; which was referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
     To amend title 10, United States Code, to require payments to 
contractors for subcontracting with Pacific Insular Area concerns, and 
                          for other purposes.

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

SECTION 1. PAYMENTS TO CONTRACTORS FOR SUBCONTRACTING WITH PACIFIC 
              INSULAR AREA CONCERNS.

    (a) In General.--Chapter 387 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 4903. Payments to contractors for subcontracting with Pacific 
              Insular Area concerns
    ``(a) Payments Authorized.--The Secretary of Defense, acting 
through the Director of the Office of Small Business Programs of the 
Department of Defense, may make a payment in accordance with subsection 
(b) to a prime contractor for each subcontract such prime contractor 
enters into with a Pacific Insular Area concern.
    ``(b) Amount.--A payment made under this section shall be in an 
amount equal to five percent of the total proposed value of a 
subcontract described in subsection (a).
    ``(c) Application.--A prime contractor desiring a payment under 
this section shall submit to the Secretary of Defense an application 
for such payment after entering into a subcontract with a Pacific 
Insular Area concern.
    ``(d) Report.--Not later than one year after the date of the 
enactment of this section and annually thereafter for ten years, the 
Administrator of the Small Business Administration and the Director of 
the Department of Defense Office of Small Business Programs shall 
submit to the Committee on Small Business of the House of 
Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate and the Committees on Armed Services of 
the House of Representatives and the Senate a report that includes the 
following:
            ``(1) The number of prime contractors that received a 
        payment under this section during the year covered by the 
        report.
            ``(2) The economic impact on Pacific Insular Areas as a 
        result of subcontracts that otherwise would not have been made 
        to Pacific Insular Area concerns.
            ``(3) Any recommendations of the Administrator and Director 
        for increasing the number of applications for payments under 
        this section.
    ``(e) Definitions.--In this section:
            ``(1) The term `Pacific Insular Area' means the Northern 
        Mariana Islands, American Samoa, and Guam.
            ``(2) The term `Pacific Insular Area concern' means a small 
        business concern (as defined under section 3 of the Small 
        Business Act (15 U.S.C. 632)), at the time of entering into a 
        subcontract with a prime contractor described under this 
        section--
                    ``(A) that is at least 51 percent owned and 
                controlled by one or more individuals who are United 
                States citizens;
                    ``(B) that has its principal office located in a 
                Pacific Insular Area;
                    ``(C) for which at least 50 percent of the 
                employees of such concern reside in the Pacific Insular 
                Area in which the principal office is located;
                    ``(D) that certifies that it will attempt to 
                maintain the employment percentage described in 
                subparagraph (C) for the duration of performance of the 
                subcontract; and
                    ``(E) that meets any additional requirements as 
                required by the Secretary of Defense.''.
    (b) Applicability.--This Act and the amendments made by this Act 
shall apply with respect to prime contracts entered into on or after 
the date of the enactment of this Act.
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