The Buy Indian Act
The Indian Incentive Program, (IIP) which originates from the Buy Indian Act,
provides a unique opportunity for prime contractors to receive a five percent
bonus payment on work subcontracted to Miami Business Services, when under the
terms of the contract. Department of Defense (DOD) contracts with Contractors,
regardless of size of the company, that contain the
FAR clause 52.226-1.
Utilization of Indian Organization and Indian Owned Economic Enterprises, are
eligible for incentive payments under the FY 2000 program. These contracts
require contractors to use their best efforts to give Indian organization 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 which are Indian organizations
or Indian-owned economic enterprises. The FY 2000 Appropriations Act makes $8
million of the amount appropriated for accounts in Title III available for
incentive payments to Prime Contractors.
Who is eligible?
Prime Contractors and Small Businesses for Department of Defense that use
Indian-owned Businesses enterprises as subcontractors.
What is the process?
Prime Contractors (regardless of size) submit for incentive payments to DOD
Contracting Officers. Contractor’s request should contain:
- Cite the use of FAR Clause 52.226-1 in DOD contract number
- Copies of pertinent pages of the subcontract
- Copies of contractor’s invoices
- Total payment of subcontractor’s and calculation for 5% rebate
- Subcontractor’s status as an Indian-owned economic enterprise
After this, the DOD Contracting Officer will:
- Review and verify documents received
- Forward request and verification summary for incentive payment to
DOD SADBU Office
- Provide point of contact of supporting office with an address, telephone
number and e-mail address of the person who will received the funding
- Provide e-mail address and telephone number of DOD Contracting Officer
For further information about the Indian Incentive Program, contact the DoD
Office of Small Business Programs at 703.604.0157 or
SADBU-IIP@osd.mil