| The Indian Incentive Program (IIP) is
administrated by the Office of the Secretary of Defense
(OSD) Small and Disadvantaged Business Utilization (SADBU)
Office. This program is funded independently by the OSD
and is not supported by the funds of the contracting agency.
The IIP allows government contractors to use their
best efforts to give Indian organizations and Indian-owned
economic enterprises the maximum practicable opportunity
to participate in subcontracts to the fullest extent.
Contracting officers, subject to the terms and conditions
of the contract, shall authorize an incentive payment
of 5 percent of the amount paid to subcontractors that
are Indian organizations or Indian-owned economic enterprises.
Commercial off the shelf (COTS) products are not included
in this program. The FY 2002 Appropriations Act makes
$8 Million available for incentive payments to prime
contractors and to small businesses that use Indian-owned
businesses or enterprises as subcontractors at any tier.
The Department of Defense (DoD) IIP strives to provide
opportunities to Indian organizations and Indian-owned
economic enterprises, by providing for the payment of
5 percent of the amount subcontracted to an Indian organization
or Indian-owned economic enterprise at any sub-tier,
when authorized under the terms of the contract.
DoD contracts with prime contractors that contain the
FAR
clause 52.226-1. Utilization of Indian Organizations
and Indian-Owned Economic Enterprises, are eligible
for incentive payments under the FY 2002 program. For
actions after 13 September 2001, sub-tier contractors
who subcontract to an Indian-owned firm are eligible
for the incentive payments by the Prime inserting DFARS
Clause 252.226-7001 in the contract. These clauses
may be added at any time during the performance of the
contract by the Prime. The definition of an "Indian
Organization," is the governing body of any Indian
tribe or entity established or recognized by the governing
body of an Indian tribe for the purpose of 25 U.S.C.
Chapter 17. An "Indian-Owned Economic Enterprise,"
is any Indian-owned (as determined by the Secretary
of the Interior) commercial, industrial, or business
activity established or organized for the purpose of
profit, provided that the Indian ownership constitutes
not less than 51% of the enterprise.
Contact
Sharon Whittaker
Sector Manager, Socioeconomic Business Programs Mission
Systems
Phone: 703.345.8625
E-mail: mssector.sebp@ngc.com
Link to DoD
Indian Incentive Program
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