252.226-7001 Utilization of Indian

Organizations, Indian-Owned Economic

Enterprises, and Native Hawaiian Small

Business Concerns.

As prescribed in 226.104 , use the following clause:

UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND

NATIVE HAWAIIAN SMALL BUSINESS CONCERNS (JAN 2023)

(a) Definitions. As used in this clause—

“Indian” means—

(1) Any person who is a member of any Indian tribe, band, group, pueblo, or community that is

recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs

(BIA) in accordance with 25 U.S.C. 1452(c); and

(2) Any “Native” as defined in the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

“Indian organization” means the governing body of any Indian tribe or entity established or

recognized by the governing body of an Indian tribe for the purposes of 25 U.S.C. Chapter 17.

“Indian-owned economic enterprise” means any Indian-owned (as determined by the Secretary of

the Interior) commercial, industrial, or business activity established or organized for the purpose of

profit, provided that Indian ownership constitutes not less than 51 percent of the enterprise.

“Indian tribe” means any Indian tribe, band, group, pueblo, or community, including native villages

and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined

in the Alaska Native Claims Settlement Act, that is recognized by the Federal Government as eligible

for services from BIA in accordance with 25 U.S.C. 1452(c).

“Interested party” means a contractor or an actual or prospective offeror whose direct economic

interest would be affected by the award of a subcontract or by the failure to award a subcontract.

“Native Hawaiian small business concern” means an entity that is—

(1) A small business concern as defined in Section 3 of the Small Business Act (15 U.S.C. 632) and

relevant implementing regulations; and

(2) Owned and controlled by a Native Hawaiian as defined in 25 U.S.C. 4221(9).

(b) The Contractor shall use its best efforts to give Indian organizations, Indian-owned economic

enterprises, and Native Hawaiian small business concerns the maximum practicable opportunity to

participate in the subcontracts it awards, to the fullest extent consistent with efficient performance

of the contract.

(c) The Contracting Officer and the Contractor, acting in good faith, may rely on the representation
of an Indian organization, Indian-owned economic enterprise, or Native Hawaiian small business

concern as to its eligibility, unless an interested party challenges its status or the Contracting

Officer has independent reason to question that status.

(d) In the event of a challenge to the representation of a subcontractor, the Contracting Officer will

refer the matter to—

(1)(i) For matters relating to Indian organizations or Indian-owned economic enterprises:

U.S. Department of the Interior

Bureau of Indian Affairs

Attn: Bureau Procurement Chief

12220 Sunrise Valley Drive

Reston, VA 20191

Phone: 703-390-6433

Website: https://www.bia.gov/

(ii) The BIA will determine the eligibility and will notify the Contracting Officer.

(2)(i) For matters relating to Native Hawaiian small business concerns:

Department of Hawaiian Home Lands

PO Box 1879

Honolulu, HI 96805

Phone: 808-620-9500

Website: http://dhhl.hawaii.gov/

(ii) The Department of Hawaiian Home Lands will determine the eligibility and will notify the

Contracting Officer.

(e) No incentive payment will be made—

(1) While a challenge is pending; or

(2) If a subcontractor is determined to be an ineligible participant.

(f)(1) The Contractor, on its own behalf or on behalf of a subcontractor at any tier, may request an

incentive payment in accordance with this clause.

(2) The incentive amount that may be requested is 5 percent of the estimated cost, target cost, or

fixed price included in the subcontract at the time of award to the Indian organization, Indian-owned

economic enterprise, or Native Hawaiian small business concern.

(3) In the case of a subcontract for commercial products or commercial services, the Contractor may

receive an incentive payment only if the subcontracted items are produced or manufactured in whole
or in part by an Indian organization, Indian-owned economic enterprise, or Native Hawaiian small

business concern.

(4) The Contractor has the burden of proving the amount claimed and shall assert its request for an

incentive payment prior to completion of contract performance.

(5) The Contracting Officer, subject to the terms and conditions of the contract and the availability of

funds, will authorize an incentive payment of 5 percent of the estimated cost, target cost, or fixed

price included in the subcontract awarded to the Indian organization, Indian-owned economic

enterprise, or Native Hawaiian small business concern.

(6) If the Contractor requests and receives an incentive payment on behalf of a subcontractor, the

Contractor is obligated to pay the subcontractor the incentive amount.

(g) The Contractor shall insert the substance of this clause, including this paragraph (g), in all

subcontracts exceeding $500,000.

(End of clause)

Parent topic: 252.226 RESERVED