Army Office of Small Business Programs
  • Indian Incentive Program

    Ms. Pamela L. Monroe
    Program Manager

    Information courtesy of DoD Office of Small Business

    The Indian Incentive Program is a congressionally sponsored program that provides a 5 percent rebate to a prime contractor on the total amount subcontracted to an Indian-Owned Economic Enterprise or Indian Organization in accordance with DFARS Clause 252.226-7001. Through the generation of subcontracts, the IIP serves as an economic multiplier for Native American communities. DoD prime contractors with a subcontract worth $500,000 or more that contains the DFARS clause are eligible for incentive payments.


    For Native American businesses, there are two primary requirements that must be met in order to participate in the IIP:

    1. 51% Native American/Alaskan/Hawaiian Ownership

    • Indian ownership of the subcontractor or supplier cannot constitute less than 51 percent of the enterprise.
    • DFARS 252.226-7001

    2. Federally Recognized Tribal Enrollment

    • Native American: The subcontractor or supplier must be owned by a federally recognized tribe or a member of a federally recognized tribe.
    • Native Alaskan: The subcontractor or supplier must be owned by a "native", "native village" or "native group" (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined by the Alaska Native Claims Settlement Act.
    • Native Hawaiian: The owner of the Native Hawaiian-Owned subcontractor or supplier must be a recognized Native Hawaiian as defined by 25 USC 4221(9).
    For more information, please visit the Indian Incentive Program webpage under the Department of Defense Office of Small Business Programs or contact the Army OSBP Front Desk at 703-697-2868.

Frequently Asked Questions