§3902 — Title 10 Armed Forces | U.S. Code

Summary

DoD contracts with small disadvantaged business subcontracting goals must count certain tribal work toward those goals. Work on Indian lands counts if at least 40% of the workers are Indians or if the contractor has an agreement with the local tribe to train and develop Indian workers and managers. Work by a joint venture counts if a tribe or tribally owned corporation owns at least 50% of the venture, the venture creates employment or buys goods and services that help employ Indians, and the tribe or tribally owned corporation runs the work. Credit equals the dollar value of work done on Indian lands. For qualifying joint ventures, credit equals the contract value times the tribe’s ownership percentage. The Secretary of Defense must issue rules to implement this. The law uses federal definitions for "Indian lands," "Indian," and "Indian tribe"; a tribally owned corporation is a corporation owned entirely by a tribe.

Title 10, §3902

Armed Forces — Source: USLM XML via OLRC

(a)Subject to subsections (b) and (c), in any case in which a subcontracting goal is specified in a Department of Defense contract in the implementation of section 8(d) of the Small Business Act (15 U.S.C. 637(d)), credit toward meeting that subcontracting goal shall be given for—

(1)work performed in connection with that Department of Defense contract, and work performed in connection with any subcontract awarded under that Department of Defense contract, if such work is performed on any Indian lands and meets the requirements of paragraph (1) of subsection (b); or

(2)work performed in connection with that Department of Defense contract, and work performed in connection with any subcontract awarded under that Department of Defense contract, if the performance of such contract or subcontract is undertaken as a joint venture that meets the requirements of paragraph (2) of that subsection.

(b)(1)Work performed on Indian lands meets the requirements of this paragraph if—

(A)not less than 40 percent of the workers directly engaged in the performance of the work are Indians; or

(B)the contractor or subcontractor has an agreement with the tribal government having jurisdiction over such Indian lands that provides goals for training and development of the Indian workforce and Indian management.

(2)A joint venture undertaking to perform a contract or subcontract meets the requirements of this paragraph if—

(A)an Indian tribe or tribally owned corporation owns at least 50 percent of the joint venture;

(B)the activities of the joint venture under the contract or subcontract provide employment opportunities for Indians either directly or through the purchase of products or services for the performance of such contract or subcontract; and

(C)the Indian tribe or tribally owned corporation manages the performance of such contract or subcontract.

(c)The amount of the credit given toward the attainment of any subcontracting goal under subsection (a) shall be—

(1)in the case of work performed as described in subsection (a)(1), the value of the work performed; and

(2)in the case of a contract or subcontract undertaken to be performed by a joint venture as described in subsection (a)(2), an amount equal to the amount of the contract or subcontract multiplied by the percentage of the tribe’s or tribally owned corporation’s ownership interest in the joint venture.

(d)The Secretary of Defense shall prescribe regulations for the implementation of this section.

(e)In this section:

(1)The term “Indian lands” has the meaning given that term by section 4(4) of the Indian Gaming Regulatory Act (25 U.S.C. 2703(4)).

(2)The term “Indian” has the meaning given that term by section 4(d) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(d)).

(3)The term “Indian tribe” has the meaning given that term by section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(e)).

(4)The term “tribally owned corporation” means a corporation owned entirely by an Indian tribe.

Notes & Related Subsidiaries

Editorial Notes

Codification Section, as added by Pub. L. 102–484, consists of text of Pub. L. 101–189, div. A, title VIII, § 832, Nov. 29, 1989, 103 Stat. 1508, revised by Pub. L. 102–484 by substituting “section 2323 of this title” for “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)” in subsec. (a). section 832 of Pub. L. 101–189, which was formerly set out as a note under section 2301 of this title, was repealed by Pub. L. 102–484, div. A, title VIII, § 801(h)(5), Oct. 23, 1992, 106 Stat. 2445.

Amendments

2021—Pub. L. 116–283, § 1838(b), as amended by Pub. L. 117–81, § 1701(v)(2)(A), renumbered section 2323a of this title as this section. 2019—Pub. L. 116–92, § 1731(a)(39)(B)(i), struck out “and certain institutions of higher education” after “businesses” in section catchline. Subsec. (e)(1). Pub. L. 116–92, § 1731(a)(39)(B)(ii)(I), struck out “102 Stat. 2468;” before “25 U.S.C. 2703(4)).” Subsec. (e)(2). Pub. L. 116–92, § 1731(a)(39)(B)(ii)(II), substituted “(25 U.S.C. 5304(d))” for “(25 U.S.C. 450b(d))”. Subsec. (e)(3). Pub. L. 116–92, § 1731(a)(39)(B)(ii)(III), substituted “(25 U.S.C. 5304(e))” for “(25 U.S.C. 450b(e))”. 2018—Subsec. (a). Pub. L. 115–232 struck out “section 2323 of this title and” after “implementation of”. 1996—Subsec. (a). Pub. L. 104–201, which directed amendment of subsec. (a) by substituting “section 2323 of this title” for “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)”, could not be executed because the language “section 1207 of the National Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 2301 note)” did not appear. See Codification note above.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below. Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

§3902 Credit for Indian contracting in meeting certain subcontracting goals for small disadvantaged businesses