INITIATIVES TO MAXIMIZE PARTICIPATION OF NATIVE AMERICAN OWNED BUSINESSES IN SUBCONTRACTS ARE IN PLACE AT DOD
The Director of the Office of Small and Disadvantaged
Business Utilization (SADBU) in the Department of Defense wants
contractors to know that the DoD has two programs specifically
intended to assist Indian-owned economic enterprises and Indian
organizations.
SADBU director Robert L. Neal, Jr. describes the initiatives
as The Indian Incentive Program and the program that allows
Credit Toward Meeting Small Disadvantaged Business (SDB)
Subcontracting Goals for Work Performed on Indian Lands or by a
Qualifying Joint Venture. Based on queries that we have
received and the lack of requests for incentive payments, Neal
said, it appears that the existence of these two programs is not
widely known. Moreover, where the programs are known to exist,
they are not well understood.
As outlined in the Federal Acquisition Regulation, the
Indian Incentive Program provides for the payment of five percent
of the amount subcontracted to an Indian organization or Indian-
owned economic enterprise, when authorized under the terms of the
contract. Subject to the availability of funds, DoD contracts
that contain a requirement for the submission of a small, small
disadvantaged, and women-owned small business subcontracting plan
are eligible for incentive payments under the program. These
type of contracts require contractors to use their best effort to
give Indian organizations and Indian-owned economic enterprises
the maximum practicable opportunity to participate in
subcontracts.
Under the Indian Incentive Program, contracting officers can
authorize an incentive payment of five percent of the amount paid
to subcontractors that are Indian organizations or Indian-owned
economic enterprises. The fiscal year 1997 Appropriations Act
makes $8 million available for incentive payments to prime
contractors.
The second DoD program that should be noted by contractors
is the Credit Toward Meeting Small Disadvantaged Business (SDB)
Subcontracting Goals for Work Performed on Indian-Owned Lands or
by a Qualifying Joint Venture. As provided for in Title 10, USC
2323a, SDB 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 percent of direct
workers are Indians. Credit may also be allowed if the prime
contractor or subcontractor has an agreement with the tribal
government that provides goals for training and development of
the Indian workforce and management.
Under this program, DoD prime and subcontractors also are
given SDB subcontracting goal credit for contracts and
subcontracts performed by a joint venture of which at least 50
percent is owned by an Indian tribe. Credit also is given when a
tribally owned corporation manages the performance of the
contract or subcontract. The amount of credit allowed for
contracts and subcontracts performed by a qualifying joint
venture is equal to the contract or subcontract amount multiplied
by the percent of the tribe's or tribally-owned corporation's
ownership interest in the joint venture.
Additional information on the DoD programs described in
this press release may be obtained from Mr. Ivory Fisher in the
SADBU office at (703) 697-1688.
