Native American Incentive Act

Arrowhead Contracting is a Native American Indian-owned enterprise (small disadvantaged business). As a result of this classification, many of our clients are eligible for the Indian Incentive Act Program in accordance with FAR Subpart 52.226-1, Paragraph 102.

Simply summarized, any firm working under a DoD prime contract is eligible for a Federal incentive payment equal to 5% of the amount paid to an Indian-owned firm during execution of a subcontract. The FAR clause enabling incentive payments may be added to a contract at any time during the performance of the contract.

What steps are involved in getting the 5% rebate?
Prime contractors have to submit a request, citing the FAR/DFAR Clause(s) in the DoD contract with the following: copies of invoices and summary statement, total payment to subcontractor, calculation of the 5% rebate, and a statement of Arrowhead's status as a Native-American business. DoD will then review the documents submitted, and when approved, send the prime contractor the 5% rebate funds.

How can I get more information on this incentive?
Arrowhead staff can answer any questions you have about obtaining the incentive when using our services. In addition, the following links can also give you more information on the Indian Incentive Program.