Native American Outreach/Indian Incentive Program
The Indian Incentive Program (IIP) is administrated by the Office of the Secretary of Defense Small and Disadvantaged Business Utilization Office. It allows government contractors to use their best efforts to give Indian organizations and Indian-owned economic enterprises the greatest opportunity to participate in subcontracts. Contracting officers, subject to the terms of the contract, authorize incentive payments of five percent of the amount paid to subcontractors that are Indian organizations or Indian-owned economic enterprises. COTS products are excluded from this program. The FY 2002 Appropriations Act made $8 million available for incentive payments to prime contractors and to small businesses that use Indian-owned businesses or enterprises as subcontractors at any tier.
DoD prime contracts that contain the FAR clause 52.226-1. “Utilization of Indian Organizations and Indian-Owned Economic Enterprises,” are eligible for incentive payments under the program. For actions after Sept. 13, 2001, sub-tier contractors who subcontract to Indian-owned firms are eligible for the incentive payments by the prime contractor inserting DFARS Clause 252.226-7001 into the contract. These clauses may be added at any time during the life of the contract by the prime contractor.