SpendQueryBeta

FAR and DFARS › FAR Part 26: Other Socioeconomic Programs › Subpart 26.1

FAR 26.103 Procedures.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains how contracting officers and prime contractors can rely on an Indian organization's or Indian-owned economic enterprise's representation of eligibility, unless there is a challenge or reason to question it. It also sets out the process for challenging a subcontractor's status, including timelines for the Bureau of Indian Affairs (BIA) to determine eligibility and the prime contractor's obligation to withhold award if a timely challenge is received. Additionally, it authorizes a 5 percent incentive payment to subcontractors under certain conditions.

Applies to: Contracting officers and prime contractors awarding subcontracts to Indian organizations or Indian-owned economic enterprises.

What it requires

  • Contracting officers shall refer a challenge to a subcontractor's representation to the BIA.
  • The prime contractor shall withhold award of the subcontract pending BIA determination if a timely challenge is received before award, unless award must be made for timely performance and the contracting officer agrees.
  • Contracting officers shall authorize an incentive payment of 5 percent of the amount paid to the subcontractor, subject to contract terms and funds availability.
  • Contracting officers shall seek funding for the incentive payment in accordance with agency procedures.

Key terms: Indian organization · Indian-owned economic enterprise · representation · challenge · BIA

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Contracting officers and prime contractors, acting in good faith, may rely on the representation of an Indian organization or Indian-owned economic enterprise as to its eligibility, unless an interested party challenges its status or the contracting officer has independent reason to question that status.

(b) In the event of a challenge to the representation of a subcontractor, the contracting officer shall refer the matter to the U.S. Department of the Interior, Bureau of Indian Affairs (BIA), Attn: Acquisition Management Director, 12220 Sunrise Valley Drive, Reston, VA 20191. The BIA will determine the eligibility and notify the contracting officer.

(c) The BIA will acknowledge receipt of the request from the contracting officer within 5 working days. Within 45 additional working days, BIA will advise the contracting officer, in writing, of its determination.

(d) The contracting officer will notify the prime contractor upon receipt of a challenge.

(1) To be considered timely, a challenge shall—

(i) Be in writing;

(ii) Identify the basis for the challenge;

(iii) Provide detailed evidence supporting the claim; and

(iv) Be filed with and received by the contracting officer prior to award of the subcontract in question.

(2) If the notification of a challenge is received by the prime contractor prior to award, it shall withhold award of the subcontract pending the determination by BIA, unless the prime contractor determines, and the contracting officer agrees, that award must be made in order to permit timely performance of the prime contract.

(3) Challenges received after award of the subcontract shall be referred to BIA, but the BIA determination shall have prospective application only.

(e) If the BIA determination is not received within the prescribed time period, the contracting officer and the prime contractor may rely on the representation of the subcontractor.

(f) Subject to the terms and conditions of the contract and the availability of funds, contracting officers shall authorize an incentive payment of 5 percent of the amount paid to the subcontractor. Contracting officers shall seek funding in accordance with agency procedures.

Sections that refer to it

  • 19.703 Eligibility requirements for participating in the program.

← 26.102 Policy. · 26.104 Contract clause. →

Rule changes for FAR Part 26

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 26.103 Procedures · SpendQuery