RECEIVE A 5% REBATE, SUB-CONTRACT
WITH ARROWPOINT SOLUTIONS
Department of Defense Indian Incentive
contracts with prime contractors that contain the FAR clause 52.226-1,
Utilization of Indian Organizations and Indian-owned Economic Enterprises
are eligible for a 5% incentive payment. The program is funded independently
by the Office of the Secretary of Defense (OSD) and is not supported
by the funds of the contracting agency. The Appropriations Act makes
$8 Million available for incentive payments to prime contractors
and to small businesses that use Indian-owned businesses as subcontractors
at any tier. (For actions after 13 September 2001, sub-tier contractors
who subcontract to an Indian-owned firm are eligible for the incentive
payments by the Prime inserting DFARS Clause 252.226-7001 in the
The Indian Incentive Act allows for an incentive payment to the prime
contractor equal to 5% of the amount paid to an Indian-owned firm during
execution of the contract. The clause enabling incentive payments may
be added to a contract at anytime during the performance of the contract.
The definition of an “Indian-Owned Economic Enterprise,” is
any Indian-owned (as determined by the Secretary of the Interior) commercial,
industrial, or business activity established or organized for the purpose
of profit, provided that the Indian ownership constitutes not less than
51% of the enterprise.
What steps are involved in getting the 5% rebate?
Prime contractors will need to submit a request citing the FAR/DFAR
Clause(s) in the DoD contract with the following:
1) Copies of invoices and a summary statement
2) Total payment to subcontractor
3) Calculation of the 5% rebate
4) A statement of Arrowpoint’s status as a Native-American
The DoD will review the documents submitted, and once approved, send
the prime contractor the 5% rebate funds.
How can I learn more about the DoD Indian Incentive Program?
The staff at Arrowpoint Solutions, Inc. can answer any questions
you may have regarding participation in the incentive program. For
additional information please contact Arrowpoint directly at 801.413.1800
our consultation form and
an Arrowpoint representative will contact you.