Why Do Business In Indian Country & The Indian Incentive Program SADBOC 2012 Government Procurement Fair Earle Brown Heritage Center April 25, 2012
Meet Our Staff
FACC-PTAC Staff continued
Why Do Business in Indian CountryBusiness Development with Tribal GovernmentsHUB ZONES75% of HUB Zones no longer exist. Indian Reservations arethe only permanent HUB zones left in the Country Contractors who want HUB Zone Designation can locate on an Indian reservation and maintain their HUB zone status Set asides for HUB Zone Primes and subcontractors can be located on Indian reservations Indian hiring incentive programs can also make up the 35% HUB zone employment requirement
Tribal Development ResourcesTribal PTAC – Federal, State, and Tribal ProcurementFederal Program Dollars to Offset Development Costsfor TribesEXAMPLES Economic Development Administration – Comprehensive Econ. Dev. Strategies (CEDS) Indian Community Development Block Grants US Dept. of Housing & Urban Development Administration for Native Americans – US Dept. of Health & Human Services
Strategic PartnershipsTypes of Strategic Partnerships with Tribal Governments /Businesses Tribal Governments can enter into Foreign Trade Agreements with Foreign Governments Tax Liability Benefits – Developments located on Trust LandLabor – On or Near the ReservationFederal Procurement Opportunities – NE Wisconsin
Basics of Indian Incentive Program (IIP) • Assists in the economic development of Sovereign Tribes. • Provides a 5% incentive payment to contractors at any tier with a DOD prime or subcontract valued at over $500,000 who subcontract to companies owned by members of federally recognized tribes (Indian-Owned Economic Enterprise). • To receive the 5% rebate, the contractor must prove that the Indian- owned firm performed the work on the subcontract or manufactured the commercial item/s. There has to be value added. Brokers, packers, buyers and sellers, etc. do not qualify for the 5% rebate. • The IIP applies to all federal agencies through FAR Subpart 26.1. • Administered by the Office of the Secretary of Defense (OSD) Small Business Programs.
Qualifying DOD Subcontractors:Assists in the AS DEFINED IN:Title 25 Chapter 17 Section 1452 (25 USC 1452):•“Indian Organization”•“Indian-Owned Economic Enterprise”:Title 43 Chapter 33 Section 1601 and Section 1602(b)•Native Alaskans•Alaskan Native Corporations (ANC)Title 25 Chapter 43 Section 4221(9)•Native Hawaiians•Native Hawaiian Small Business Concerns•Native Hawaiian non-profits certified under the 8(A) program.For qualifications guidance contact:• The Bureau of Indian Affairs• The Department of Hawaiian Homelands
Qualifying Documents• Assists in the AS proof of your tribal/Alaskan Native/Native Hawaiian affiliation to the Prime Contractor:• BIA tribal card, Certificate Degree of Indian Blood (CDIB), Hawaiian birth records, and proof of 51% ownership.• Alternatively, you may complete and sign the Native American/Alaskan/Hawaiian self-certification form.http://www.acq.osd.mil/osbp/programs/iip/participate/index.htm
Eligible Recipients:• DoD Prime Contractors• Subcontractors• By awarding (subcontracting) a portion of their DoD work to a contracting firm which is at least 51% owned by: • A Federally recognized Indian Tribe or • Alaska Native Village or group • An Alaskan Native Corporation (ANC) or • Alaska Village Corporation • A non-profit Native Hawaiian organization • An individual who is a member of a Federally recognized Indian Tribe or Alaska Native Village, or is a Native Hawaiian
Benefit to Prime Contractors:• DoD Prime appropriated for the DoD IIP Program• Incentive payments of 5% of the total award to a Native subcontractor comes from the separate IIP fund, NOT out of the DoD prime contract’s funds• Better long term business relationships are developing among Native subcontractors and prime contractors• DoD and other federal and state contracting agencies are developing an effective and high quality subcontracting
Department of Defense Prime Contract5% Prime Contractor Prime (Contract Value>$500,000) Contractor Native Non-Native 5% Subcontractor Subcontractor (C.V. >$500,000) Native Subcontractor
ANY QUESTIONS ?
THANK YOU! Contact us at: 920-496-7430 firstname.lastname@example.org