DoD Indian Subcontracting Incentive Program

As defined within DFARS 252.226-7001, Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native American Small Business Concerns, this program originated from the Buy Indian Act. Contractors are encouraged to provide Indian owned organizations and economic enterprises the maximum practical opportunity to participate in subcontracts. It gives Department of Defense prime contractors a 5% incentive payment on all work subcontracted to Indian-owned businesses.

Congress has also set a goal of 5% of the contract dollars awarded by DoD for the following types of contracts: procurement, research, development, test and evaluation, military construction and operation and maintenance be awarded to small disadvantaged businesses, historically black colleges and universities, and certain minority nonprofit institutions (defined at 20 U.S.C. 1058). This goal has been extended to the Coast Guard and NASA. Contract prices are not permitted to exceed fair market price by more than 10%.