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Indian Incentive
The 5% Subcontracting Bonus
Pursuant to statutory language and implementing regulations, a DOD prime that subcontracts with a firm that is 51% or more Native American owned is entitled to receive a bonus equal to 5% of the amount of the subcontract award. While this provision is theoretically available to all agencies, Congress has provided appropriations to implement it only to DOD. Defense Appropriations Act annually provides $8 million for this program.