Office of Small Business Programs

The Indian Incentive Program (IIP) is a Congressionally-sponsored program that provides a 5 percent rebate to a prime contractor on the total amount subcontracted to an Indian-Owned Economic Enterprise or Indian Organization in accordance with DFARS Clause 252.226-7001. Through the generation of subcontracts, the IIP serves as an economic multiplier for Native American communities. DoD prime contractors with a subcontract worth $500,000 or more that contains the DFARS clause are eligible for incentive payments. Information courtesy of DoD Office of Small Business

Eligibility

For Native American businesses, two requirements must be met in order to participate in the IIP:

1. 51% Native American/Alaskan/Hawaiian Ownership

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

1. 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 subcontractor or supplier must be owned by a recognized Native Hawaiian as defined by 25 USC 4221(9).

For more information, please visit the Indian Incentive Program webpage under the Department of Defense Office of Small Business Programs, or contact the Army OSBP Front Desk at 703-697-2868.

What is the average time frame for receipt of the 5% rebate once you have submitted the paperwork?

The average time frame for receipt of the 5% rebate depends on many factors including availability of FY funds, number of requests awaiting funds before yours, incomplete requests (requests lacking Indian-Ownership documentation, tribal affiliation, invoice summary sheet, etc.), and other factors. Due to the recent popularity of the program, it is probable that there will be an extensive wait between request submittal and payment.

If the $20 million of appropriated IIP funds is expended before my request is funded, will I have to resubmit another request?

All complete and eligible IIP requests not funded in the fiscal year that they were submitted will be rolled over to the next fiscal year.

Should the Subcontractor, Prime Contractor, or Contracting Officer notify OSBP in advance of making this rebate request to ensure that money is set aside?

No. Rebate requests that arrive in the OSBP office are processed on a first-come first-served basis. Incomplete requests will not be processed until all required documentation is received.

Is there a time limit on filing “claims” under the Indian Incentive clause?

The Prime may request the insertion of DFAR Clause 252.226-7001 and file for the incentive payment any time during the life of the contract. The present 5% rebate program started in FY97. Claims may go back to that period if the contract is open and performance is being made by the Prime. Once the contract is closed, the claim cannot be filed.

I own a Native-American, Native Alaskan, or Native Hawaiian business. Am I eligible to participate in the Indian Incentive Program?

If you are a business owner, you must be a member of a federally recognized Native American tribe, as listed in Federal Register: August 11, 2009 (Volume 74, #153, Notices), a “Native” as defined by the Alaska Native Claims Settlement Act 43 USC 1602(b), or Native Hawaiian as defined by 25 USC 4221, Sec 9. You must possess 51% of more ownership of the firm. If there is more than one owner, each eligible Native American/Alaskan/Hawaiian, in combination, must equal 51% or more ownership. If the firm is owned and controlled by a tribe or a native village or native group (including corporations organized by Kenai, Juneau, Sitka, and Kodiak), the “Indian” or “Native” entity must be recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs (BIA) in accordance with 25 USC 1452(c).

If I meet the eligibility requirements for the Indian Incentive Program and want to participate in the program, what should I do next?

You should first research potential contractors. You may want to explore research methods for doing business with the Department of Defense. Research current DoD Prime Contractors that might make a good match for your products and services. See recent Contractors who have participated in the Indian Incentive Program. Market your firm well. Be sure to plan ahead and have your certification documents ready (federally recognized tribal /Native Alaskan affiliation and proof of 51% ownership) to submit to your Prime.