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Serving Federal and Tribal Clients

Native American Incentive Act

by Sister Sky, Inc.

North American Indians are recognized with strong business advantages. These advantages are particularly marked in relation for government and private sector contracting, and there are many savvy planning options available. Native American businesses, tribal member owned enterprises and minority companies are in demand. All government contracts and most private corporations require a percentage (anywhere from 20% to 40%) of their vendor dollars to go to minority enterprises. Native American companies can play a significant role in contracting as a subcontractor, or a prime contractor. Native American owned enterprises have the unique opportunity to offer Department of Defense (DOD) prime contractors the ability to access the 5% cash contract rebates available under the Native American Incentives Act (U.S.C.1544 FAR Clause 52.226-1).

Under the Native American Incentive Act (25 U.S.C.A. Sec. 1544), prime contractors utilizing a Native American enterprise as a subcontractor are eligible for a 5% cash rebate of the amount paid the Native American enterprise. This cash rebate is currently available under DOD contracts. The rebate is available to any prime contractor using a Native American enterprise or tribally owned company as a subcontractor at any sub-tier. For more specific information on the Indian Incentive program, see FAR Clause 52-226. –1, and DFARS Clause 252.226-7001.