The Indian Incentive Program (IIP) is a congressionally sponsored program that provides a 5% incentive (rebate) payment to the prime contractor on the total amount subcontracted to an Indian-Owned Economic Enterprise or Indian Organization, in accordance with DFARS Clause 252.226-7001. Through the generation of subcontracts to the above mentioned entities, the IIP fulfills its purpose as an economic multiplier for Native American communities. Department of Defense (DoD) prime contractors, regardless of size of contract, that contain the above referenced clause(s) are eligible for incentive payments.

Any DoD prime contractor with a contract of $500,000.00 or more, that contains the above referenced clause, is eligible for incentive payments.

Due to considerable interest shown in the program, there will be a delay between rebate submittal and rebate payment. As long as the Indian Incentive funds are authorized in each year's Defense Appropriations Act, and if the contract of the request remains open, each eligible request will be funded eventually, though not necessarily in the same fiscal year that the request is submitted.

(Native American, Alaskan Native, or Native Hawaiian ownership of the subcontractor or supplier cannot constitute less than 51% of the enterprise to be eligible.)

For Additional Information:

• DOD Indian Incentive Program
• FAR 26.1