The Indian Incentive Program

The Department of Defense’s (DoD) Indian Incentive Program (IIP) is a congressionally sponsored program that provides a 5% rebate back to the 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 to the above mentioned entities, the IIP fulfills its purpose as an economic multiplier for Native American communities. DoD prime contractors, regardless of size of contract,that contain the above referenced clause(s) are eligible for incentive payments.

DoD prime contractors with a contract of $500,000.00 or more), are eligible for incentive payments. Native American small businesses in the fields of engineering, construction, IT, and other areas, continue to supply the Department of Defense (DoD) with dependable high-quality supplies and services.

The DOD IIP motivates prime contractors to utilize Indian organizations and Indian-owned economic enterprises by providing a 5% rebate to prime contractors on subcontracted work performed by an Indian organization or on subcontracted commercial products manufactured in whole or in part by an Indian organization.

The Indian Incentive Program has certain eligibility requirements.  If you are interested in participating in the Indian Incentive Program, we encourage you to thoroughly research our web site and learn about the program.

Under certain circumstances, commercial products are eligible for rebate. For more information, please read the the Office of Small Business Programs’ Frequently Asked Questions.

The FY 2009 Appropriations Act makes $15 million available for incentive payments to prime contractors and to small businesses that use Indian-owned businesses or enterprises as subcontractors at any tier.

For more on the IIP,  visit