Buy Indian Act
This program is defined under FAR 52-226-1, allowing prime contractors to receive a 5% rebate on
work subcontracted to Tribally or Native owned businesses . Department of Defense contractors
that reference FAR 52-226-1, may be eligible for incentive payments. Contractors must submit in
writing to the Contracting Officer a request for the 5% rebate on the amount awarded under
estimated cost, target cost, or firm fixed price contracts. Contracting Officers authorize these
incentive payments contingents with the terms and conditions of the contract and the availability
of Bureau of Indian Affairs funding.
Incentive program payments are funded separately from the contract and do not affect the money
available for contract execution. For more information about the Indian Incentive Program, contact
the Department of Interior, Office of the Assistant Secretary of Indian Affairs.
This program is defined under FAR 52-226-1, allowing prime contractors to receive a 5% rebate on
work subcontracted to Tribally or Native owned businesses . Department of Defense contractors
that reference FAR 52-226-1, may be eligible for incentive payments. Contractors must submit in
writing to the Contracting Officer a request for the 5% rebate on the amount awarded under
estimated cost, target cost, or firm fixed price contracts. Contracting Officers authorize these
incentive payments contingents with the terms and conditions of the contract and the availability
of Bureau of Indian Affairs funding.
Incentive program payments are funded separately from the contract and do not affect the money
available for contract execution. For more information about the Indian Incentive Program, contact
the Department of Interior, Office of the Assistant Secretary of Indian Affairs.
Tribal Contracting Incentives for DoD, Federal Agencies, and Defense and Federal Contractors
Indian Self-Determination Contracting
Under the Indian Self-Determination Act (25 USC 47, 1982), Indian tribes can obtain contracts from
the Bureau of Indian Affairs without competitive bidding. The purpose of this is to create
partnering between government and indigenous people.
Under the Indian Self-Determination Act (25 USC 47, 1982), Indian tribes can obtain contracts from
the Bureau of Indian Affairs without competitive bidding. The purpose of this is to create
partnering between government and indigenous people.
Credit Against Subcontracting Goals
Work Performed on Indian Lands
As provided for in Title 10, ISC 2323a, small disadvantaged subcontracting goal credit is given for the value of work performed under a DoD prime contract or
subcontract on Indian owned lands when not less than 40 per cent of direct workers are Indians or an agreement is in place with the Tribal Government that
provides goals for training and development of the Indian workforce and management.
Work Performed by Qualifying Joint Venture
A qualifying joint venture (at least 50% Indian ownership that manages the effort), can achieve minority subcontracting goal credit on any DoD contract that
requires a subcontracting plan or resulting subcontract when performance is undertaken as a joint venture. The amount of credit is equal to the amount of the
contract or subcontract multiplied by the percent of the Tribes or tribally owned corporation's ownership interest in the joint venture.
Work Performed on Indian Lands
As provided for in Title 10, ISC 2323a, small disadvantaged subcontracting goal credit is given for the value of work performed under a DoD prime contract or
subcontract on Indian owned lands when not less than 40 per cent of direct workers are Indians or an agreement is in place with the Tribal Government that
provides goals for training and development of the Indian workforce and management.
Work Performed by Qualifying Joint Venture
A qualifying joint venture (at least 50% Indian ownership that manages the effort), can achieve minority subcontracting goal credit on any DoD contract that
requires a subcontracting plan or resulting subcontract when performance is undertaken as a joint venture. The amount of credit is equal to the amount of the
contract or subcontract multiplied by the percent of the Tribes or tribally owned corporation's ownership interest in the joint venture.
DOD Indian Subcontracting Incentive Program
As defined within DFARS 252.226-7001, Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native American Small Business Concerns,
this program originated from the Buy Indian Act. Contractors are encouraged to provide Indian owned organizations and economic enterprises the maximum
practical opportunity to participate in subcontracts. It gives Department of Defense prime contractors a 5% incentive payment on all work subcontracted to
Indian-owned businesses.
Congress has also set a goal of 5% of the contract dollars awarded by DoD for the following types of contracts: procurement, research, development, test and
evaluation, military construction and operation and maintenance be awarded to small disadvantaged businesses, historically black colleges and universities,
and certain minority nonprofit institutions (defined at 20 U.S.C. 1058). This goal has been extended to the Coast Guard and NASA. Contract prices are not
permitted to exceed fair market price by more than 10%.
As defined within DFARS 252.226-7001, Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native American Small Business Concerns,
this program originated from the Buy Indian Act. Contractors are encouraged to provide Indian owned organizations and economic enterprises the maximum
practical opportunity to participate in subcontracts. It gives Department of Defense prime contractors a 5% incentive payment on all work subcontracted to
Indian-owned businesses.
Congress has also set a goal of 5% of the contract dollars awarded by DoD for the following types of contracts: procurement, research, development, test and
evaluation, military construction and operation and maintenance be awarded to small disadvantaged businesses, historically black colleges and universities,
and certain minority nonprofit institutions (defined at 20 U.S.C. 1058). This goal has been extended to the Coast Guard and NASA. Contract prices are not
permitted to exceed fair market price by more than 10%.
Tribally-owned 8(a)
The SBA certifies small, disadvantaged businesses in good standing to participate in this program, which empowers federal agencies to sole source contracts
to its participants. Typical 8(a) businesses are restricted by award limits of $5 million (products) and $3 million (services). Tribally-owned 8(a) businesses like
AGT are exempt from this limit. Tribally-owned concerns are exempt from the requirements for competitive bidding; any sized contract can be sole-sourced to
tribally owned small businesses. This enables federal agencies to negotiate significantly higher award ceilings for sole source contracts with AGT .
Under the SBA 8(a) business development program, the SBA enters into contracts with other Federal agencies and then contracts with eligible socially and
economically disadvantaged businesses. SBA may also delegate its contract execution authority to the procuring agency so the agency can contract directly with
the 8(a) participant. The 8(a) contracts can either be sole source awards or be awarded by competition with other eligible businesses.
The SBA certifies small, disadvantaged businesses in good standing to participate in this program, which empowers federal agencies to sole source contracts
to its participants. Typical 8(a) businesses are restricted by award limits of $5 million (products) and $3 million (services). Tribally-owned 8(a) businesses like
AGT are exempt from this limit. Tribally-owned concerns are exempt from the requirements for competitive bidding; any sized contract can be sole-sourced to
tribally owned small businesses. This enables federal agencies to negotiate significantly higher award ceilings for sole source contracts with AGT .
Under the SBA 8(a) business development program, the SBA enters into contracts with other Federal agencies and then contracts with eligible socially and
economically disadvantaged businesses. SBA may also delegate its contract execution authority to the procuring agency so the agency can contract directly with
the 8(a) participant. The 8(a) contracts can either be sole source awards or be awarded by competition with other eligible businesses.
HUBZone Empowerment Program
This program is intended to stimulate economic development and create jobs in urban and rural communities and on Indian Reservation lands by providing
contracting preference to businesses located in a HUBZone. Small businesses can negotiate sole source contracts and participate in restricted competition
limited to HUBZone certified businesses. Businesses located in HUBZones are allowed a 10% price evaluation preference in full and open competition.
This program is intended to stimulate economic development and create jobs in urban and rural communities and on Indian Reservation lands by providing
contracting preference to businesses located in a HUBZone. Small businesses can negotiate sole source contracts and participate in restricted competition
limited to HUBZone certified businesses. Businesses located in HUBZones are allowed a 10% price evaluation preference in full and open competition.
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Native Workforce, Inc. info@nativeworkforce.com
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