Creating Economic Opportunity for Native Businesses
The Indian Incentive Program (IIP) is a congressionally-sponsored program which provides a 5 percent rebate to a prime contractor on the total amount subcontracted to an Indian-Owned Economic Enterprise or Indian Organization in accordance with DFARS Clause 252.226-7001. Through the generation of subcontracts, the IIP serves as an economic multiplier for Native American communities. DoD prime contractors with a subcontract worth $500,000 or more that contains the DFARS clause are eligible for incentive payments.
Prime Contractor Action Items
Prime Contractors to submit requests for Indian Incentive Payments to DoD Contracting Officers. Requests must include the following:
1. Copies of certification of 51% ownership from all eligible subcontractors and copies of certification of tribal, Native Alaskan, or Native Hawaiian enrollment from all eligible subcontractors OR completed self-certification form.
2. Copies of all eligible subcontractors’ invoice receipts. The prime must supply an invoice summary sheet that lists invoices by number and explains the 5% rebate amount.
3. Request letter that states subcontractor’s status as an Indian, Native Alaskan, or Native Hawaiian-owned enterprise.