UNITED STATES DEPARTMENT OF DEFENSE
PRIME CONTRACTOR INDIAN INCENTIVE PROGRAM
FLRI is a qualified Indian owned corporation that allows federal government prime contractors to be eligible to receive monetary incentives from the government for the utilization of a qualified 100 percent Indian owned subcontractor on DOD contracts. The Indian Incentive Program is described below.
The Indian Incentive Program provides for the Prime Contractor to receive payment of 5 percent of the amount subcontracted to an Indian Organization or Indian-owned economic enterprise, when authorized under the terms of a DOD contract. The following steps are required to receive payment under this program:
Prime contractor reviews contract to ensure that FAR clause 52.226-1 (Subcontracting Plan Requirement) is contained within their contract.
Prime contractor should prepare a letter to the Contracting Officer referencing the applicable (Part 26 of the FAR, clause 226.1) and request payment of the 5% Indian Incentive Program.
Prime contractor with this letter should supply a copy of the subcontract to the Indian Owned Firm and reference points of contact with their subcontractor.
The Contracting Officer will review and substantiate the request.
Upon approval the Contracting Officer will prepare a letter to the ordering agency requesting a Military Interdepartmental Purchase Request (MIPR) of funds be sent to the Budget Representative at the ordering agency.
Upon receipt of the funds the Budget Representative will notify the Contracting Officer who will then modify the contract adding the funds to the delivery order.
- The prime contractor then simply invoices the contract for the amount of the modification and the government will make payment.