the indian incentive program process

Report
Indian Incentive Program Briefing
DoD Office of Small Business
Programs
May, 2012
1
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.
2
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.
3
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).
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THE INDIAN INCENTIVE PROGRAM
PROCESS
1.
Prime Contractor verifies that contract includes DFARS 252.226-7001
clause.
2.
Prime Contractor identifies a Native American/Alaskan/Hawaiian Owned
firm as a subcontractor/supplier, in accordance with contract clause.
3.
Prime Contractor and Native American/Alaskan/Hawaiian Owned firm
mutually communicate they understand the requirements of the program.
4.
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.
5
THE INDIAN INCENTIVE PROGRAM PROCESS
5.
Native American/Alaskan/Hawaiian Owned Firm submits all paid invoices
covering specified period.
6.
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.
6
THE INDIAN INCENTIVE PROGRAM PROCESS
7.
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
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THE INDIAN INCENTIVE PROGRAM PROCESS
8.
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
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THE INDIAN INCENTIVE PROGRAM PROCESS
9.
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.
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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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