Medium RiskDFARSGeneral

252.226-7001Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns.

Researched by the BidStride Research Team

What This Clause Requires

DFARS 252.226-7001 — Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

Official Regulation Text

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. 422

Source: eCFR, 48 CFR 252.226-7001 (https://www.ecfr.gov/current/title-48/section-252.226-7001)

Compliance Checklist

  • (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.
  • (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.
  • (g) The Contractor shall insert the substance of this clause, including this paragraph (g), in all subcontracts exceeding $500,000.

Flow-Down to Subcontractors

Flow-down required

This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.

Frequently Asked Questions

BidStride automatically scans your RFPs for 252.226-7001

Stop hunting through solicitations manually. BidStride identifies every FAR and DFARS clause in your RFP, flags risk level, and surfaces compliance requirements before you submit your bid.

This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.