TRIBAL CONTRACTING INCENTIVES FOR DOD, FEDERAL AGENCIES AND DEFENSE AND FEDERAL CONTRACTORS

AGT is certified by the U.S. Small Business Administration (SBA) as a Tribally owned 8(a), HUBZone, and Small Disadvantaged Business (SDB). These designations significantly enhance AGT's position by enabling federal agencies to streamline their contracting requirements and obligations.  AGT offers several contracting benefits that are unique to tribally owned businesses.

Tribally owned 8(a) – The SBA certifies small, disadvantaged businesses that are in good standing, to participate in this program.  The program empowers federal agencies to sole source contracts to its participants. Typical 8(a) businesses are restricted by award limits of $5 million (products) and $3 million (services).  Tribally owned 8(a) businesses, like AGT, are exempt from this limit.  Tribally owned concerns are exempt from the requirements for competitive bidding; any sized contract can be sole-sourced to tribally owned small businesses.  This enables federal agencies to negotiate significantly higher award ceilings for sole source contracts with AGT.  13 CFR § 124.506(a)

Under the SBA 8(a) business development program, the SBA enters into contracts with other Federal agencies and then contracts with eligible socially and economically disadvantaged businesses.  SBA may also delegate its contract execution authority to the procuring agency so the agency can contract directly with the 8(a) participant.  13 CFR § 124.508(a)(2).  The 8(a) contracts can either be sole source awards or be awarded by competition with other eligible businesses.  13 CFR § 124.501(a) and (b).

HUBZone Empowerment Program – This program is intended to stimulate economic development and create jobs in urban and rural communities by providing contracting preference to businesses located in a HUBZone.  Small business firms can negotiate sole source contracts and participate in restricted competition limited to HUBZone certified businesses. Businesses located in HUBZones are allowed a 10% price preference in full and open competition.

Buy Indian Act – This program is defined under FAR 52-226-1.  It allows prime contractors to receive a 5% rebate on work subcontracted to AGT.  Department of Defense contractors that reference FAR 52-226-1, a requirement for the small, disadvantaged or women-owned business subcontracting program, may be eligible for incentive payments.  Contractors must submit in writing to the Contracting Officer a request for the 5% rebate on the amount awarded to AGT under estimated cost, target cost, or firm fixed price contracts. Contracting Officers authorize these incentive payments contingents with the terms and conditions of the contract and the availability of Bureau of Indian Affairs funding.   Incentive program payments are funded separately from the contract and do not affect the money available for contract execution.  For more information about the Indian Incentive Program, contact the Department of Interior, Office of the Assistant Secretary of Indian Affairs.

Indian Self-Determination Contracting – Under the Indian Self-Determination Act, 25 U.S.C. § 47 (1982), Indian tribes can obtain contracts from the Bureau of Indian Affiars without competitive bidding. The purpose of this is to create partnering between government and indigenous people.

DOD Indian Subcontracting Incentive Program – As defined within DFARS 252.226-7001, Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native American Small Business Concerns, this program originated from the Buy Indian Act. Contractors are encouraged to provide Indian owned organizations and economic enterprises the maximum practical opportunity to participate in subcontracts.  It gives Department of Defense prime contractors a 5% incentive payment on all work subcontracted to Indian-owned businesses.

Congress has also set a goal of 5% of the contract dollars awarded by DoD for the following types of contracts:  procurement, research, development, test and evaluation, military construction and operation and maintenance be awarded to small disadvantaged businesses, historically black colleges and universities, and certain minority nonprofit institutions (defined at 20 U.S.C. 1058).  This goal has been extended to the Coast Guard and NASA.   Contract prices are not permitted to exceed fair market price by more than 10%.

Credit Against Subcontracting Goals

Work Performed on Indian Lands -- As provided for in Title 10, ISC 2323a, small disadvantaged subcontracting goal credit is given for the value of work performed under a DoD prime contract or subcontract on Indian owned lands when not less than 40 per cent of direct workers are Indians or an agreement is in place with the Tribal Government that provides goals for training and development of the Indian workforce and management.

Work Performed by Qualifying Joint Venture -- A qualifying joint venture (at least 50% Indian ownership that manages the effort), can achieve minority subcontracting goal credit on any DoD contract that requires a subcontracting plan or resulting subcontract when performance is undertaken as a joint venture.  The amount of credit is equal to the amount of the contract or subcontract multiplied by the percent of the Tribes or tribally owned corporation's ownership interest in the joint venture.