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:
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Prime contractor reviews contract to ensure that FAR clause 52.226-1 (Subcontracting Plan Requirement) is contained within their contract.
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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.
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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.
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The Contracting Officer will review and substantiate the request.
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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.
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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.