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

This bill requires the Department of Defense to pay prime contractors 5% of the value of subcontracts awarded to qualifying small businesses in Guam, American Samoa, and the Northern Mariana Islands. To qualify, a business must be at least 51% owned by U.S. citizens, have its main office in one of these territories, and employ at least 50% of its staff there. Prime contractors must apply for the payment after entering such subcontracts, and annual reports will track participation, economic impact, and recommendations for improvement. The policy applies to new contracts starting from the bill's enactment date.