Scope of subpart
FAR 26.100 establishes the foundation for incentives to prime contractors who subcontract with Indian organizations and Indian-owned economic enterprises.
Overview
FAR 26.100 outlines the scope of Subpart 26.1, which implements the Indian Incentive Program as authorized by 25 U.S.C. 1544. This regulation provides incentives to prime contractors who subcontract with Indian organizations and Indian-owned economic enterprises. The purpose is to encourage the participation of these entities in federal contracting by offering financial incentives to prime contractors who include them as subcontractors.
Key Rules
- Implementation of 25 U.S.C. 1544
- The subpart enacts statutory provisions that reward prime contractors for subcontracting with Indian organizations and Indian-owned businesses.
- Incentive Structure
- The regulation establishes the framework for providing incentives, though specific procedures and requirements are detailed in subsequent sections of Subpart 26.1.
Responsibilities
- Contracting Officers: Must be aware of the incentive program and ensure its application where appropriate.
- Contractors: Should consider subcontracting with Indian organizations and Indian-owned enterprises to benefit from available incentives.
- Agencies: Oversee and administer the incentive program in accordance with statutory and regulatory requirements.
Practical Implications
- This section sets the stage for the Indian Incentive Program, signaling to contractors the potential benefits of partnering with Indian organizations.
- It impacts how contractors structure their subcontracting plans and may influence their approach to supplier diversity.
- Common pitfalls include failing to recognize eligible subcontractors or misunderstanding the incentive's applicability.