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Public Procurement in Marshall Islands

Public Procurement in the Marshall Islands plays a central role in government operations, public service delivery, and infrastructure development within a small island economy. Given the limited domestic market and strong reliance on public spending, government procurement represents one of the most structured channels for economic activity.

The procurement system operates under a formal legal framework and is administered by the Ministry of Finance through its Division of Budget, Procurement and Supply. Procurement procedures apply across central government entities and are particularly relevant for goods, public works, and essential services.

For domestic suppliers, regional contractors, and international firms, government tenders in the Marshall Islands provide targeted opportunities, especially where public investment and development programs are implemented.

Country & Economic Overview

The Marshall Islands economy is characterized by a narrow production base, geographic dispersion, and reliance on public expenditure and external assistance. Public procurement therefore functions as a key mechanism for delivering goods, works, and services required for government operations.

Public Procurement Governance Framework

The institutional responsibility for public procurement in the Marshall Islands lies with the Ministry of Finance.

Procurement activities are undertaken by contracting authorities in line with the Procurement Code Act and supporting regulations.

Legal & Regulatory Framework

The public procurement law in the Marshall Islands is governed by the Procurement Code Act of 1988 and subsequent Procurement Regulations. The framework defines procurement methods, evaluation criteria, and oversight mechanisms.

• Value for Money: Procurement Code Act Sections 113(e) and 126(1)
• Most Economically Advantageous Tender (MEAT): Section 127
• Sustainability: Section 115
• Preferences for SMEs and Local Contractors: Section 124
• Bid Securities: Section 121(A)
• Domestic Preference: Sections 124 and 125
• Complaint Resolution: Section 130

The legal framework provides specific preferences for Marshallese and United States contractors and suppliers.

Procurement Procedures & Thresholds

Procurement procedures in the Marshall Islands are defined under the Procurement Code Act and related regulations.

• Tender Threshold: USD 50,000
• Contract Award Disclosure Threshold: USD 25,000
• Advertisement Period: Regulated under Section 125
• Bid Validity Period: Section 125 (goods, works, and services)

Formal standstill periods are not explicitly defined in the available regulations.

E-Procurement System in Marshall Islands

An official national eProcurement system in the Marshall Islands has not been formally established. Procurement notices and processes are conducted through conventional administrative channels.

Procurement Market Characteristics

Public procurement in the Marshall Islands is relatively small in scale and primarily focused on essential goods, basic works, and public services.

• Procurement opportunities are largely domestic in nature.
• International participation occurs mainly through donor-funded or specialized contracts.
• Preference is provided to Marshallese and U.S. suppliers under the legal framework.

Transparency, Complaints & Oversight

The procurement framework provides mechanisms for complaint resolution and administrative review. Oversight authority is vested in the responsible procurement authorities under the Procurement Code Act.

Sustainability & Green Public Procurement

The current procurement framework does not establish green public procurement strategies, mandatory environmental procurement practices, or sustainability targets.

Social & Ethical Procurement Considerations

The procurement law does not establish specific requirements for awards to women-owned businesses or disadvantaged groups. However, preference is provided to Marshallese and U.S. contractors and suppliers. Ethical sourcing requirements are recognized in the legal framework.

Key Challenges & Practical Insights for Bidders

• Small market size and limited procurement volumes
• Absence of a centralized eProcurement platform
• Strong local and domestic preference provisions
• Dependence on manual and administrative procedures

Practical bidding tips

1. Understand domestic preference rules before bidding.
2. Engage early with contracting authorities for clarification.
3. Ensure compliance with Procurement Code documentation requirements.
4. Factor logistics and supply constraints into pricing.

Overall, Public Procurement in the Marshall Islands offers a rules-based but small-scale procurement environment, where informed and compliant bidders can participate effectively in government tenders.