This document discusses opportunities for doing business with tribal governments and native communities. It outlines several incentives for contractors, including the Indian Incentive Program which provides a 5% payment to contractors who subcontract portions of their DoD work to Indian-owned businesses. The document notes that Indian reservations are now the only permanent HUB Zones and can help contractors meet HUB Zone requirements. It also lists several types of federal, state and tribal funding sources that can help support economic development projects on tribal lands.
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1. Why Do Business In Indian Country
&
The Indian Incentive Program
SADBOC 2012
Government Procurement Fair
Earle Brown Heritage Center
April 25, 2012
4. Why Do Business in Indian Country
Business Development with Tribal Governments
HUB ZONES
75% of HUB Zones no longer exist. Indian Reservations are
the only permanent HUB zones left in the Country
Contractors who want HUB Zone Designation can locate
on an Indian reservation and maintain their HUB zone
status
Set asides for HUB Zone Primes and subcontractors can
be located on Indian reservations
Indian hiring incentive programs can also make up the
35% HUB zone employment requirement
5. Tribal Development Resources
Tribal PTAC Federal, State, and Tribal Procurement
Federal Program Dollars to Offset Development Costs
for Tribes
EXAMPLES
Economic Development Administration
Comprehensive Econ. Dev. Strategies (CEDS)
Indian Community Development Block Grants
US Dept. of Housing & Urban Development
Administration for Native Americans US Dept. of
Health & Human Services
6. Strategic Partnerships
Types of Strategic Partnerships with Tribal Governments /
Businesses
Tribal Governments can enter into Foreign Trade
Agreements with Foreign Governments
Tax Liability Benefits Developments located on Trust
Land
Labor On or Near the Reservation
Federal Procurement Opportunities NE Wisconsin
7. Basics of Indian Incentive Program (IIP)
Assists in the economic development of Sovereign Tribes.
Provides a 5% incentive payment to contractors at any tier with a
DOD prime or subcontract valued at over $500,000 who subcontract
to companies owned by members of federally recognized tribes
(Indian-Owned Economic Enterprise).
To receive the 5% rebate, the contractor must prove that the Indian-
owned firm performed the work on the subcontract or manufactured
the commercial item/s. There has to be value added. Brokers,
packers, buyers and sellers, etc. do not qualify for the 5% rebate.
The IIP applies to all federal agencies through FAR Subpart 26.1.
Administered by the Office of the Secretary of Defense (OSD) Small
Business Programs.
8. Qualifying DOD Subcontractors:
Assists in the AS DEFINED IN:
Title 25 Chapter 17 Section 1452 (25 USC 1452):
≒Indian Organization
≒Indian-Owned Economic Enterprise:
Title 43 Chapter 33 Section 1601 and Section 1602(b)
Native Alaskans
Alaskan Native Corporations (ANC)
Title 25 Chapter 43 Section 4221(9)
Native Hawaiians
Native Hawaiian Small Business Concerns
Native Hawaiian non-profits certified under the 8(A) program.
For qualifications guidance contact:
The Bureau of Indian Affairs
The Department of Hawaiian Homelands
9. Qualifying Documents
Assists in the AS proof of your tribal/Alaskan Native/Native
Hawaiian affiliation to the Prime Contractor:
BIA tribal card, Certificate Degree of Indian Blood (CDIB), Hawaiian
birth records, and proof of 51% ownership.
Alternatively, you may complete and sign the Native
American/Alaskan/Hawaiian self-certification form.
http://www.acq.osd.mil/osbp/programs/iip/participate/index.htm
10. Eligible Recipients:
DoD Prime Contractors
Subcontractors
By awarding (subcontracting) a portion of their DoD work to a
contracting firm which is at least 51% owned by:
A Federally recognized Indian Tribe or
Alaska Native Village or group
An Alaskan Native Corporation (ANC) or
Alaska Village Corporation
A non-profit Native Hawaiian organization
An individual who is a member of a Federally recognized
Indian Tribe or Alaska Native Village, or is a Native Hawaiian
11. Benefit to Prime Contractors:
DoD Prime appropriated for the DoD IIP Program
Incentive payments of 5% of the total award to a Native
subcontractor comes from the separate IIP fund, NOT out of the
DoD prime contracts funds
Better long term business relationships are developing among
Native subcontractors and prime contractors
DoD and other federal and state contracting agencies are
developing an effective and high quality subcontracting
12. Department of Defense Prime Contract
5% Prime Contractor Prime
(Contract Value>$500,000)
Contractor
Native
Non-Native 5%
Subcontractor
Subcontractor
(C.V. >$500,000)
Native
Subcontractor