What Is The DoD Indian Incentive Program?
The Department of Defense (DoD) Indian Incentive Program (IIP) is designed to encourage the use of Indian Organizations, Indian-Owned Economic Enterprises, Alaska Native Corporations and Native Hawaiian Small Business Concerns by providing an incentive to prime and sub-tier contractors who subcontract with Indian Organizations, Indian-Owned Economic Enterprises, Alaska Native Corporations and Native Hawaiian Small Business Concerns. The program is managed by the Department of Defense (DoD) Office of Small Business Programs (OSBP). Funding availability is determined by congress each fiscal year. Contracting Activities do not need to provide any funding for this program. Once approved, the contract is modified to authorize payment of the incentive.
The Indian Incentive Program allows eligible prime contractors to receive a rebate of 5% of the total amount subcontracted to Indian Organizations, Indian-Owned Economic Enterprise and Native Hawaiian Small Business Concerns. Please note that DFARS Clause 252.226-7001 must be in the contract in order to participate in the Indian Incentive Program. Prime contractors must formally request the rebate by submitting a letter to the contracting officer along with supporting documentation proving the amount paid to Indian Organizations/Enterprises or Native Hawaiian Small Business Concern.