As a Large Business when teaming with Tunista Construction there are significant advantages to working with our firm. The following outlines the competitive advantages available for consideration when entering into a subcontractor relationship with Tunista Construction. In addition to the financial and operational strength of Tunista Construction and the ability to provide bonding on work at limits exceeding $150Million; Tunista Construction has the following advantages on Federal Contracts:
• Socially & Economically Disadvantaged – 13 CFR 124.109 (a)(2)
• The 5% Subcontracting Bonus – DFAR 252.226-7001, FAR 52.226-1
• Limitations on Subcontracting – FAR 52.219-14
Economically Disadvantaged – 13 C.F.R. 124.109(a)(2): An ANC that meets the requirements set forth in paragraph (a)(1) of this section is deemed economically disadvantaged under 43 U.S.C. 1626(e), and need not establish economic disadvantage as required by paragraph (b)(2) of this section.
The 5% Subcontracting Bonus – DFAR 252.226-7001: A DOD contractor that subcontracts with a firm that is 51% or more Native American owned is entitled to receive a bonus equal to 5% of the amount of the subcontract award. While theoretically available to all agencies, Congress provided appropriations to implement it only to DOD, which, after some initial resistance, has initiated it fully out of the DOD SADBU Office. Defense Appropriations Acts provided $11 million to this program in FY 2005. DFAR states: (f)
(1) The Contractor, on its own behalf or on behalf of a subcontractor at any tier, may request an incentive payment in accordance with this clause.
(2) The incentive amount requested is 5 percent of the estimated cost, target cost, or fixed price included in the subcontract at the time of award to an “Indian tribe” which includes native villages and native groups as defined in the Alaska Native Claims Settlement Act.
(3) 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.
The Contracting Officer, subject to the terms and conditions of the contract and the availability of funds, will authorize an incentive payment of 5 percent of the estimated cost, target cost, or fixed price included in the subcontract awarded to the Indian organization, Indian-owned economic enterprise, or Native Hawaiian small business concern.
Limitations on Subcontracting (Dec 1996) FAR 52.219-14, Limitations on Subcontracting:
(a) This clause does not apply to the unrestricted portion of a partial set-aside.
(b) By submission of an offer and execution of a contract, the Offeror/Contractor agrees that in performance of the contract in the case of a contract for —
(1) Services (except construction). At least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern.
(2) Supplies (other than procurement from a non-manufacturer of such supplies). The concern shall perform work for at least 50 percent of the cost of manufacturing the supplies, not including the cost of materials.
(3) General construction. The concern will perform at least 15 percent of the cost of the contract, not including the cost of materials, with its own employees.
(4) Construction by special trade contractors. The concern will perform at least 25 percent of the cost of the contract, not including the cost of materials, with its own employees.
For more information on the Department of Defense Native Indian Incentive Plan please visit http://www.acq.osd.mil/osbp/sb/programs/iip/index.shtml