native american government contractingOn of the most under-utilized tools in federal government contracting is the Native American American Incentive Program (IIP).

This program is sponsored by United States Congress and allows for a 5% rebate back to prime government contractors on amounts subcontracting to Native American Indian-Owned Companies.

The Indian Incentive Program can reward federal prime contractors by giving them a  providing a 5% rebate to businesses that outsource work performed by Native American tribes or contracting company or on subcontracted commercial products manufactured in whole or part by a Tribal Indian company.

For large-dollar contracts, this can be a huge benefit to a company’s bottom line. Many government contractors are still not utilizing this opportunity.

DFARS 252.226-7001 addresses the subcontracts to Native American Indian companies and how the Incentive Program works. Sometimes, having the right government contract consultants on your team can facility the relationships and expedite the process.

The Native American Incentive Program apply to Department of Defense prime government contractors, regardless of the size of the contract. Always check to see if your contract contains DFARS 252.226-7001.

  • DoD prime contractors with a contract of $500,000.00 or more that include the above DFARS clause(s), are eligible for Indian incentive payments.
  • Congress continues to encourage government contracting agencies to promote procurement programs  and the use of Native American subcontractors.

Native American Indian Incentive Program (IIP) Eligibility

For Native American businesses to be eligible for the IIP Program, there are two mandatory requirements.:

1. Native American control of the sub company cannot be less than 51%.

2. The subcontractor must be a Federally Recognized Tribe or be a member of a federally recognized tribe.

Helping Participant’s Bottom Line

The Indian Incentive Program can be a win-win for both the prime contractor and the Native American Subcontractor. Prime contractors using government consultants should engage in research to find out what products both tribal small businesses and other Indian-owned companies make. The idea that the Incentive Program can stimulate both companies can be well worth the effort.

For help with government contracting for Native American tribes small businesses, call the procurement lawyers at Watson & Associates at 1-866-601-5518.

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