Indian incentive program briefing dod office of small business programs
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Indian Incentive Program Briefing DoD Office of Small Business Programs

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Indian incentive program briefing dod office of small business programs

Indian Incentive Program BriefingDoD Office of Small Business Programs


Indian incentive program

Indian Incentive Program

PURPOSE

In an effort to boost Native American economic development, Congress authorized Federal contracting agencies to “encourage” the use of Native American owned subcontractors. Through the generation of subcontracts, the Indian Incentive Program (IIP) strives to fulfill its purpose as an economic multiplier for Native American communities.


Indian incentive program1

Indian Incentive Program

HISTORY

  • The Indian Incentive Program (IIP) is a congressionally sponsored program that provides a 5% rebate back to the prime contractor on the total amount subcontracted to an Indian-Owned Economic Enterprise or Indian Organization, in accordance with DFARS Clause 252.226-7001.

  • Established by Section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544), IIP motivates Prime contractors to utilize Indian organizations and Indian-owned economic enterprises.


Indian incentive program2

Indian Incentive Program

Eligibility

For Native American businesses, there are two primary requirements that must be met in order to participate in the Indian Incentive Program:

51% Native American/Alaskan/Hawaiian Ownership

  • Indian ownership of the subcontractor or supplier cannot constitute less than 51% of the enterprise. (DFARS 252.226-7001)

    Federally Recognized Tribal Enrollment

  • Native American: The subcontractor or supplier must be owned by a federally recognized tribe or a member of a federally recognized tribe.

  • Native Alaskan: The subcontractor or supplier must be owned by a "native", "native village" or "native group" (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined by the Alaska Native Claims Settlement Act.

  • Native Hawaiian: The owner of the Native Hawaiian-Owned subcontractor or supplier must be a recognized Native Hawaiian as defined by 23 USC 4221(9).


The indian incentive program

THE INDIAN INCENTIVE PROGRAM

PROCESS

  • Prime Contractor verifies that contract includes DFARS 252.226-7001 clause.

  • Prime Contractor identifies a Native American/Alaskan/Hawaiian Owned firm as a subcontractor/supplier, in accordance with contract clause.

  • Prime Contractor and Native American/Alaskan/Hawaiian Owned firm mutually communicate they understand the requirements of the program.

  • Prime Contractor completes a Statement Of Work (SOW) outlining expectations between the Prime Contractor and the Sub-contractor (Native American/Alaskan/Hawaiian Owned firm) and when they are to submit invoices.


The indian incentive program process

THE INDIAN INCENTIVE PROGRAM PROCESS

  • Native American/Alaskan/Hawaiian Owned Firm submits all paid invoices covering specified period.

  • Native American/Alaskan/Hawaiian Owned Firm submits all certification documents to prime contractor:

    • Proof of tribal enrollment (BIA tribal card, Certificate Degree of Indian Blood (CDIB) or Hawaiian birth records) and proof of 51% ownership.

      --OR--

    • Native American Owned Firm may complete and sign the self-certification form found on the DoD Indian Incentive Program (IIP) website.


The indian incentive program process1

THE INDIAN INCENTIVE PROGRAM PROCESS

  • Prime Contractor prepares and submits rebate request package to the DoD Contracting Officer:

    Rebate request package must include:

    • Cover Letter

    • All paid invoices covering specified period

    • Invoice summary sheet that lists each invoice and amount, the cumulative total of the invoice, and the 5% rebate calculation

    • Tribal and ownership certification documents

    • Self Certification Form

    • Non-Affiliation Certification Letter


The indian incentive program process2

THE INDIAN INCENTIVE PROGRAM PROCESS

  • DoD Contracting Officer:

    • Collects and reviews documents from the Prime contractor

    • Verifies Native American/Alaskan/Hawaiian Owned firm is an eligible participant in the program

    • Verifies the Native American/Alaskan/Hawaiian Owned firm has performed the work or manufactured the products stated in the invoices

    • Verifies contract is active

    • Verifies calculations

    • Validates invoices and 5% requested rebate amount


The indian incentive program process3

THE INDIAN INCENTIVE PROGRAM PROCESS

  • DoD Contracting Officers prepares and submits rebate request package to the DoD OSBP.

    Rebate request package must include:

    • Cover letter from contracting officer

    • Cover letter from Prime Contractor

    • Summary Invoice Sheet from Prime contractor

    • Self-Certification Form

    • Non-Affiliation Certification Letter

    • Subcontractor proof of being a Native American/Alaskan/Hawaii Owned Firm.


Indian incentive program briefing dod office of small business programs

Information is available on the DoD IIP website

http://www.acq.osd.mil/osbp/programs/iip

Or

For additional questions about the Indian Incentive Program, please contact :

Ruby Crenshaw-Lawrence, Assistant Director

DoD Indian Incentive Program

(571) 372-6332

Email:

[email protected]


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