[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR370.503]



[Page 91-92]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 370_SPECIAL PROGRAMS AFFECTING ACQUISITION--Table of Contents

 

           Subpart 370.5_Acquisitions Under the Buy Indian Act

 

Sec. 370.503  Requirements.



    (a) Indian ownership. The degree of Indian ownership of an Indian 

firm shall be at least 51 percent during the period covered by a Buy 

Indian contract.

    (b) Joint ventures. An Indian firm may enter into a joint venture 

with other entities for specific projects as long as the Indian firm is 

the managing partner. However, the joint venture must be approved by the 

contracting officer prior to the award of a contract under the Buy 

Indian Act.

    (c) Bonds. In the case of contracts for the construction, 

alteration, or repair of public buildings or public works, performance 

and payment bonds are required by the Miller Act (40 U.S.C. 270a-270f) 

and FAR part 28. In the case of contracts with Indian tribes or public 

nonprofit organizations serving as governmental instrumentalities of an 

Indian tribe, bonds are not required. However, bonds are required when 

dealing with private business entities which are owned by an Indian 

tribe or members of an Indian tribe. Bonds may be required of private 

business entities which are joint ventures with, or subcontractors of, 

an Indian tribe or a public nonprofit organization serving as a 

governmental instrumentality of an Indian tribe. A bid guarantee or bid 

bond is required only when a performance or payment bond is required.

    (d) Indian preference in employment, training and subcontracting. 

Contracts awarded under the Buy Indian Act are subject to the 

requirements of section 7(b) of the Indian Self-Determination and 

Education Assistance Act 25 U.S.C. 450e, which requires that preference 

be given to Indians in employment, training, and subcontracting. The 

Indian Preference clause set forth in 352.270-2 shall be included in all 

Buy Indian solicitations and resultant contracts. The Indian Preference 

Program clause set forth in 352.270-3 shall be used as specified in 

370.202(b). All requirements set forth in subpart 370.2 which are 

applicable to the instant Buy Indian acquisition shall be followed by 

the contracting officer, e.g., sections 370.204 and 370.205.

    (e) Subcontracting. Not more than 50 percent of the work to be 

performed under a prime contract awarded pursuant to the Buy Indian Act 

shall be subcontracted to other than Indian firms. For this purpose, 

work to be performed



[[Page 92]]



does not include the provision of materials, supplies, or equipment.

    (f) Wage rates. A determination of the minimum wage rates by the 

Secretary of Labor as required by the Davis-Bacon Act (40 U.S.C. 276a) 

shall be included in all contracts awarded under the Buy Indian Act for 

over $2,000 for construction, alteration, or repair, including painting 

and decorating, of public buildings and public works, except contracts 

with Indian tribes or public nonprofit organizations serving as 

governmental instrumentalities of an Indian tribe. The wage rate 

determination is to be included in contracts with private business 

entities even if they are owned by an Indian tribe or a member of an 

Indian tribe and in connection with joint ventures with, or 

subcontractors of, an Indian tribe or a public nonprofit organization 

serving as a governmental instrumentality of an Indian tribe.