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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 48 - Federal Acquisition Regulations System |
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Chapter 14 - Department of the Interior |
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SubChapter G - Contract Management |
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Part 1452 - Solicitation Provisions and Contract Clauses |
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Subpart 1452.2 - Text of Provisions and Clauses |
§ 1452.280-3 - Indian Economic Enterprise subcontracting limitations.
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1452.280-3 Subcontracting limitations.
Indian Economic Enterprise subcontracting limitations.
A contractor shall not subcontract more than the subcontract limitations specified under FAR 52.219-14 to other than responsible Indian economic enterprises more than 50 percent of the subcontracted work when the prime contract was awarded Economic Enterprises when receiving an award under the Buy Indian Act. For this purpose, work to be performed does not include the provision of materials, supplies, or equipment. As prescribed in 1480.601503(be)(3), insert the following clause in each written solicitation or contract to provide supplies, general services, A-E services, or covered construction:
Indian Economic Enterprise Subcontracting Limitations (JUL 2013FEB 2021)
(a) Definitions as used in this clause.
(1) Concern means any business entity organized for profit (even if its ownership is in the hands of a nonprofit entity) with a place of business located in the United States or its outlying areas and that makes a significant contribution to the U.S. economy through payment of taxes and/or use of American products, material materials and/or labor, etc. It includes but is not limited to an individual, partnership, corporation, joint venture, association, or cooperative. For the purpose of making affiliation findings (see FAR 19.101), it includes any business entity, whether or not it is organized for profit or not, and any foreign business entity, i.e., any entity located outside located in the United States and or its outlying areas.
(2) Subcontract means any agreement (other than one involving an employer-employee relationship) entered into by a Government government prime contractor or subcontractor calling for supplies and/or services required for performance of the contract, contract modification, or subcontract.
(3) Subcontractor means a concern to which a contractor subcontracts any work under the contract. It includes subcontractors at any tier who perform work on the contract.
(b) Required Percentages of work by the concern. The contractor must comply with FAR 52.219-14 Limitations on Subcontracting clause in allocating what percentage of work to subcontract. Of the work subcontracted, no more than 50 percent may be subcontracted The contractor shall not subcontract work exceeding the subcontract limitations in FAR 52.219-14 to a concern other than a responsible Indian economic enterpriseEconomic Enterprise.
(c) Indian Preference. Regardless of the contract type for services, supplies, or covered construction, the contractor agrees to give preference to Indian organizations and Indian owned economic enterprises in awarding subcontracts under this contract in accordance with DIAR 1452.226-71, Indian PreferenceAny work that an IEE subcontractor does not perform with its own employees shall be considered subcontracted work for the purpose of calculating percentages of subcontract work in accordance with FAR 52.219-14 Limitations on Subcontracting.
(d) Cooperation. The contractor must:
(1) Carry out the requirements of this clause to the fullest extent; and
(2) Cooperate in any study or survey that the CO, Indian Affairs, or its agents may conduct to verify the contractor's compliance with this clause.
(e) Incorporation in Subcontracts. The contractor must incorporate the substance of this clause, including this paragraph (e), in all subcontracts for supplies, general services, A-E services, and construction awarded under this contract.
(End of clause)