Contract clause
Contracting officers may include the Indian Incentive Program clause in contracts when subcontracting opportunities for Indian organizations exist and funds are available for related costs.
Overview
FAR 26.104 provides guidance for contracting officers in civilian agencies regarding the inclusion of the clause at 52.226-1, "Utilization of Indian Organizations and Indian-Owned Economic Enterprises," in solicitations and contracts. The clause may be inserted when the contracting officer determines that there are subcontracting opportunities for Indian organizations or Indian-owned economic enterprises, and when funds are available to cover any increased costs associated with such subcontracting, as outlined in the referenced clause. This section supports the Indian Incentive Program, which encourages the use of Indian-owned businesses in federal contracting.
Key Rules
- Clause Inclusion
- Contracting officers may include FAR 52.226-1 in solicitations and contracts if certain conditions are met.
- Conditions for Use
- The clause can be used only if subcontracting opportunities exist for Indian organizations or Indian-owned economic enterprises, and if funds are available to cover any increased costs as described in the clause.
Responsibilities
- Contracting Officers: Assess subcontracting possibilities for Indian organizations and ensure funding is available for potential increased costs before including the clause.
- Contractors: Comply with the requirements of FAR 52.226-1 if the clause is included in their contract.
- Agencies: Oversee the proper application of the clause and ensure compliance with the Indian Incentive Program.
Practical Implications
- This section enables agencies to promote participation of Indian organizations in federal contracting through incentives.
- Contractors should be aware that inclusion of the clause may affect subcontracting plans and costs.
- Common pitfalls include failing to assess subcontracting opportunities or not verifying the availability of funds before clause inclusion.