Procurement Rebate

The DoD Office Of Small Business Indian Incentive Program

The Department of Defense (DoD) Indian Incentive Program (IIP) is a congressional sponsored program designed to encourage the use of an Alaska Native Corporation by providing a 5% rebate incentive to the prime and sub-tier contractors on the total amount subcontracted to the Alaska Native Corporation.

The IIP is managed by the Department of Defense Office of Small Business Programs. Funding availability is determined by Congress each year.

Contracting Activities do not need to provide any funding for this program. Prime contractors must formally request the rebate by submitting a letter to the contracting officer along with supporting documentation proving the amount paid to the Alaskan Native Corporation. Once approved, the contract is modifed to authorize payment of the incentive.

Note: DFARS Clause 252.226-7001 must be in the contract in order to participate in the IIP.

A Prime contractor subcontracting to a Native American tribe or ANC may receive additional compensation, above the amount of the prime contract,  equal to 5% of the amount of the subcontract with the Native American-owned entity. Regulation Section 505 of the Indian Finance Act (25 U.S.C. 1544) & FAR 52-226-1

References: DFARS Clause 252.226-7001; DFARS 226.103-104; FAR Clause 52.226-1; FAR Clause 26.104

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