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frank.watson

Buy Indian Act- Joint Ventures (Populated JV)

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Morning everyone-

Quick question regarding Joint Ventures. Can one be formed and qualify as a "Indian economic enterprise" to quailify for a bid on a competitive RFP thats coming out under the buy indian act? I understand the rules of ownership etc on the JV but I am more seeing if/how the JV would have to be structured from a ownership standpoint to qualify for the Buy Indian set aside. (The majority owner of the JV is a 100% tribally owned entity)
Reading the FAR and other regulations I note that the requirement for SUBCONTRACTED labor is 50% to a native business if awarded under the by indian act. Which in turn means you could only subcontract 24.5% to a non native business period. Seems like if you entered into a populated JV 51/49% ownership with a non native business you would be circumventing the rule?
Thoughts?

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I don't consider that circumventing the rule. One rule has to do with status as an Indian economic enterprise and the other rule has to do with a limitation on subcontracting during performance. Two different things.

The definition of "Indian economic enterprise" at 1452.280-2 states:

Indian Economic Enterprise means any business activity owned by one or more Indians or Indian Tribes that is established for the purpose of profit, provided that:

(i) The combined Indian or Indian Tribe ownership shall constitute not less than 51 percent of the enterprise; (ii) the Indians or Indian Tribes shall, together, receive at least a majority of the earnings from the contract; and (iii) the management and daily business operations of an Indian economic enterprise must be controlled by one or more individuals who are members of an Indian Tribe. To ensure actual control over the enterprise, the individuals must possess requisite management or technical capabilities directly related to the primary industry in which the enterprise conducts business. The enterprise must meet these requirements throughout the following time periods:

(1) At the time an offer is made in response to a written solicitation;

(2) At the time of contract award; and,

(3) During the full term of the contract.

Note that the criteria have nothing to do with the amount of work done under a particular contract--it has to do with ownership and control of the enterprise.

That's how I read it, but don't trust me too much because I'm not familiar with the DIAR and there may be some rule that I'm overlooking.

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