52.226-1
Utilization of Indian Organizations and Indian-Owned Economic Enterprises
Contractors can receive a 5% incentive for subcontracting with eligible Indian organizations, but must maximize opportunities, follow verification procedures, and request adjustments before contract completion.
Overview
FAR 52.226-1 requires contractors to maximize opportunities for Indian organizations and Indian-owned economic enterprises to participate in subcontracts. The clause defines key terms and establishes procedures for verifying eligibility, handling challenges, and requesting incentive payments under the Indian Incentive Program. Contractors may receive a 5% adjustment to their contract value for subcontracts awarded to eligible Indian entities, provided they follow the specified procedures and timelines.
Key Rules
- Definitions and Eligibility
- Clearly defines Indian, Indian organization, Indian-owned economic enterprise, Indian tribe, and interested party for the purposes of this clause.
- Best Efforts Requirement
- Contractors must use their best efforts to provide maximum practicable subcontracting opportunities to Indian organizations and Indian-owned economic enterprises.
- Reliance and Challenge Process
- Contractors and Contracting Officers may rely on self-representations unless challenged; challenges are resolved by the Bureau of Indian Affairs (BIA).
- Incentive Payment Procedures
- Contractors may request a 5% contract adjustment for eligible subcontracts, but must prove the amount and request the adjustment before contract completion.
- Payment Authorization
- The Contracting Officer authorizes incentive payments, subject to contract terms and available funds.
Responsibilities
- Contracting Officers: Verify eligibility, handle challenges, and authorize incentive payments.
- Contractors: Maximize subcontracting opportunities for Indian entities, request incentive payments properly, and provide proof of amounts claimed.
- Agencies: Ensure funding is available for incentive payments and follow agency procedures.
Practical Implications
- This clause incentivizes contractors to engage Indian organizations and enterprises, supporting federal socio-economic goals.
- Contractors must be proactive in outreach and documentation to benefit from the incentive program.
- Delays or disputes over eligibility can impact incentive payments, so timely and accurate record-keeping is essential.