Indian Incentive Program         
Administrated by the Office of the Secretary of Defense (OSD) Small and Disadvantaged Business Utilization (SADBU) Office, the Indian Incentive Program (IIP) makes every effort to provide added value to the government, in that, this program is funded independently by the OSD and is not supported by the funds of the contracting agency.

These contracts require contractors to use their best efforts to give Indian organizations and Indian-owned economic enterprises the maximum practicable opportunity to participate in subcontracts awarded to the fullest extent consistent with efficient performance of the contract(s). 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) Indian Incentive Program (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 purposes 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 bob.seidi@ngc.com or (310) 814-6891.