National Center, NACA Join Forces to Request Increase in Funding for the Indian Incentive Program

Organizations send letter to Senate Defense Appropriations Subcommittee leadership

June 19, 2017

WASHINGTON, DC – Chris James, President and CEO of the National Center for American Indian Enterprise Development, and Michael Anderson, Executive Director of the Native American Contractors Association, sent a joint letter to Senate Defense Appropriators requesting an increase in funding for the Indian Incentive Program (IIP). They requested $18 million for FY 2018 – $3 million above current levels, but an increase that would lead to a significant boost in contracts for Native-owned firms. The IIP provides an eligible prime contractor a 5% rebate of the value of the DOD work subcontracted to and performed by a Native enterprise.

At the present $15 million annual appropriation, a 5% rebate leverages $300 million in subcontract performance by Native-owned firms for their prime contractors. Unfortunately, prime contractors’ requests for IIP rebates, based on their Native subcontractors’ performance, have substantially exceeded the $15 million that has been appropriated annually since FY 2011. In fact, the program’s success has led to an estimated $37.5 million or two-year backlog of IIP rebates based on bona fide claims filed by prime contractors with the government. The increase would help alleviate some of the backlog and allow Native businesses the opportunity to grow.

“The Indian Incentive Program is a tremendously important program, and has led to economic opportunities for Native contractors working in critical defense and security fields,” James said. “Unfortunately, there is far more demand for the incentive program than current funding levels allow. Even a small increase in funding for the IIP will have a huge multiplier effect for Native-owned businesses and the communities in which they are based.”

“This is a successful program on so many levels,” said NACA Executive Director Michael Anderson. “Native enterprises gain valuable contract performance, their federal customers get quality products and services, and the Nation grows its industrial ball. This is a small investment to obtain so many benefits.”

The letter, sent last week, was addressed to Chairman Thad Cochran (R-MS) and Ranking Member Richard Durbin (D-IL) as they consider appropriations levels for fiscal year 2018. You can read the full letter by clicking here.

About The National Center: The National Center for American Indian Enterprise Development is a 501(c)(3) non-profit organization. With over 40 years of assisting American Indian Tribes and their enterprises with business and economic development – we have evolved into the largest national Indian specific business organization in the nation. Our motto is: “We Mean Business For Indian Country” as we are actively engaged in helping Tribal Nations and Native business people realize their business goals and are dedicated to putting the whole of Indian Country to work to better the lives of American Indian people- both now… and for generations to come.

About the Native American Contractors Association: NACA serves to protect the rights of Indigenous Peoples to create economic development through government contracting. We aim to increase federal contracting opportunities for Native-owned enterprises.

CONTACT: Lewis Lowe, 202-333-2234

NCAIED Contact Information

The National Center Main Office

953 E. Juanita Avenue
Mesa, AZ  85204

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