Managing Agency U.S. Department of Defense

Program Description

The Indian Incentive Program (IIP) is a congressionally sponsored program that provides a 5% rebate back to the prime contractor on the total amount subcontracted to a Native-American, Native Alaskan, or Native Hawaiian business concerns, in accordance with DFARS Clause 252.226-7001. Established by Section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544), IIP motivates Prime Contractors to utilize Indian organizations and Indian-owned economic enterprises.

General Program Requirements

DoD prime contractors with a contract of $500,000.00 or more, that contain the DFARS Clause 252.226-7001 are eligible for incentive payments.

For Native American businesses, there are two primary requirements that must be met in order to participate in the Indian Incentive Program:

  1. 51 percent Native American/Alaskan/Hawaiian Ownership
  2. Federally Recognized Tribal Enrollment
  • Native American: The subcontractor or supplier must be owned by a federally recognized tribe or a member of a federally recognized tribe
  • Native Alaskan: The subcontractor or supplier must be owned by a "native", "native village" or "native group" (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined by the Alaska Native Claims Settlement Act
  • Native Hawaiian: The owner of the Native Hawaiian-Owned subcontractor or supplier must be a recognized Native Hawaiian as defined by 23 USC 4221(9).

Your Next Steps

The following information will lead you to the next steps to apply for this program.

Application Process

The Prime contractor submits a request for incentive payment to the appropriate DoD Contracting Officer. This request should cite the use of DFARS 252.226-7001, as appropriate. Included with the request should be copies of subcontractor's invoices (or other proof of payment, such as cashed checks), documentation demonstrating that the subcontractor is 51 percent owned by Native American/Alaskan/Hawaiian.

The Contracting Officer, after review and verification of the documents submitted by the prime, would then prepare and submit rebate request package to the DoD OSBP for funding consideration. The rebate request package must include:

  • Cover letter from Contracting Officer
  • Cover letter from Prime Contractor
  • Summary Invoice Sheet from Prime Contractor
  • Subcontractor proof of being a Native American/Alaskan/Hawaii Owned Firm.

From the date OSBP receives a complete package from the Contracting Officer, the average time frame for receipt of the 5 percent rebate is 12 - 24+ months. This estimated time frame depends on many factors including availability of program funds and number of requests awaiting funding.

Program Contact Information

Dr. Ruby Crenshaw-Lawrence
Assistant Director

Additional Information

Current Method of Tribal EligibilityProgram Only for Tribes/Native Organizations
Funding TypeDiscretionary
Length of ProgramThe Indian Incentive Program is a congressionally mandated program which receives federal funding consideration annually.
Tribes Funded by this ProgramThe Indian Incentive Program doesn't fund Native American entities directly; however it incentivizes Prime Contractors to utilize Native American, Native Hawaiian and Alaskan Owned entities for subcontract opportunities.

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