The Penobscot Indian Corporation owns small business companies that are qualified to participate in direct award contracts with government agencies. This can present significant advantages to Federal Departments and Agencies in the acquisition process.

Most importantly, directed contract awards to tribally owned entities are not subject to the post award protests. The direct award vehicle therefore offers significant advantages to government agencies in assuring a prompter acquisition and orderly transition process for needed goods and services. It saves the agencies and therefore the taxpayers, time and money with no lapses in operations or degradation in services to the government. Many months of post award disputes, briefings and appeals are eliminated.

Sole source contracts from civilian Departments and Agencies can be awarded in any amount consistent with the policies of the agency (normally up to $22 million) and up to $100 million with the Department of Defense. This enables agency customers to maintain operational efficiency-with a fast, efficient contract acquisition timeline often spanning less than 20 days.

Leveraging a Tribal-Owned Business

  • Tribally owned businesses are always considered Small Disadvantaged Businesses (SDBs)
  • Tribally owned 8(a) businesses can be awarded sole source contracts in any amount consistent with their agency policies
  • Sole source contracts below $22 million do not require a J&A per Section 811
  • DoD sole source contracts can be awarded up to $100 million per the National Defense Authorization Act for FY2020
  • Sole source awards to Tribally owned entities cannot be protested [13 CFR 124.517(a)]
  • Tribally Owned businesses can have direct negotiations with the Government [13 CFR 124.503(c)(2)]

Sister Subsidiary Performance Utilization (GOA Rulings)

Past Performance of a parent or affiliated company can be attributed to the offeror where the proposal demonstrates that the resources of the parent or affiliated company will affect the performance of the offerer. Under some requirements, PHS can offer additional resources in conjunction with the aid of another PINE-owned company. We also have a network of partners, at the ready, to place a teaming in the best position possible to secure specific solicitations.

In order to utilize this performance strategy, a proposal must demonstrate that the workforce, management, facilities, or other resources of the affiliate may affect contract performance by the offerer including a commitment to make key personnel available for the project.  The proposal may also show a commitment by the parent organization to provide sufficient financial resources to the project.

Indian Incentive Program (25 U.S.C. § 1544) 5% Bonus Payments to Prime Contractors

Prime contractors can derive significant benefits from subcontracts to businesses owned by Indian Tribes. The Department of Defense (DoD) Indian Incentive Program, based on Section 504 of the Indian Financing Act of 1974 (25 U.S.C. § 1544), provides for the payment of 5% of the amount subcontracted to a Tribally owned organization, when authorized under the terms of the contract.

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