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(Revised August 15, 2024)

 

 


 252.226-7001 Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns.
 252.226-7002 Representation for Demonstration Project for Contractors Employing Persons with Disabilities.
 252.226-7003 Drug-Free Work Force.

 

252.226-7001  Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns.

As prescribed in 226.104, use the following clause:

 

UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND NATIVE HAWAIIAN SMALL BUSINESS CONCERNS

(JAN 2023)

 

      (a)  Definitions.  As used in this clause--

 

“Indian” means—

 

      (1)  Any person who is a member of any Indian tribe, band, group, pueblo, or community that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs (BIA) in accordance with 25 U.S.C. 1452(c); and

 

      (2)  Any “Native” as defined in the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

 

“Indian organization” means the governing body of any Indian tribe or entity established or recognized by the governing body of an Indian tribe for the purposes of 25 U.S.C. Chapter 17.

 

“Indian-owned economic enterprise” means any Indian-owned (as determined by the Secretary of the Interior) commercial, industrial, or business activity established or organized for the purpose of profit, provided that Indian ownership constitutes not less than 51 percent of the enterprise.

 

“Indian tribe” means any Indian tribe, band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act, that is recognized by the Federal Government as eligible for services from BIA in accordance with 25 U.S.C. 1452(c).

 

“Interested party” means a contractor or an actual or prospective offeror whose direct economic interest would be affected by the award of a subcontract or by the failure to award a subcontract.

 

“Native Hawaiian small business concern” means an entity that is—

 

              (1)  A small business concern as defined in Section 3 of the Small Business Act (15 U.S.C. 632) and relevant implementing regulations; and

 

              (2)  Owned and controlled by a Native Hawaiian as defined in 25 U.S.C. 4221(9).

 

      (b)  The Contractor shall use its best efforts to give Indian organizations, Indian-owned economic enterprises, and Native Hawaiian small business concerns the maximum practicable opportunity to participate in the subcontracts it awards, to the fullest extent consistent with efficient performance of the contract.

 

      (c)  The Contracting Officer and the Contractor, acting in good faith, may rely on the representation of an Indian organization, Indian-owned economic enterprise, or Native Hawaiian small business concern as to its eligibility, unless an interested party challenges its status or the Contracting Officer has independent reason to question that status.

 

      (d)  In the event of a challenge to the representation of a subcontractor, the Contracting Officer will refer the matter to—

 

              (1)(i)  For matters relating to Indian organizations or Indian-owned economic enterprises:

 

                            U.S. U.S. Department of the Interior

                            Bureau of Indian Affairs

                            Attn:  Bureau Procurement Chief

                            12220 Sunrise Valley Drive

                            Reston, VA  20191

                            Phone:  703-390-6433

                            Website:  https://www.bia.gov/

 

                    The BIA will determine the eligibility and will notify the Contracting Officer. 

 

              (2)(i)  For matters relating to Native Hawaiian small business concerns:

 

                            Department of Hawaiian Home Lands

                            PO Box 1879

                            Honolulu, HI  96805

                            Phone:  808-620-9500

                            Website:  http://dhhl.hawaii.gov/

 

                    The Department of Hawaiian Home Lands will determine the eligibility and will notify the Contracting Officer.

 

      (e)  No incentive payment will be made—

 

              (1)  While a challenge is pending; or

 

              (2)  If a subcontractor is determined to be an ineligible participant.

 

      (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 that may be requested is 5 percent of the estimated cost, target cost, or fixed price included in the subcontract at the time of award to the Indian organization, Indian-owned economic enterprise, or Native Hawaiian small business concern.

 

              (3)  In the case of a subcontract for commercial products or commercial services, the Contractor may receive an incentive payment only if the subcontracted items are produced or manufactured in whole or in part by an Indian organization, Indian-owned economic enterprise, or Native Hawaiian small business concern.

 

              (4)  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.

 

              (5)  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.

 

              (6)  If the Contractor requests and receives an incentive payment on behalf of a subcontractor, the Contractor is obligated to pay the subcontractor the incentive amount.

 

      (g)  The Contractor shall insert the substance of this clause, including this paragraph (g), in all subcontracts exceeding $500,000.

 

 (End of clause)

 

252.226-7002  Representation for Demonstration Project for Contractors Employing Persons with Disabilities.

As prescribed in 226.7203, use the following provision:

 

REPRESENTATION FOR DEMONSTRATION PROJECT FOR CONTRACTORS EMPLOYING PERSONS WITH DISABILITIES (DEC 2019)

 

      (a)  Definitions.  As used in this provision—

 

      “Eligible contractor” means a business entity operated on a for-profit or nonprofit basis that—

 

              (1)  Employs severely disabled individuals at a rate that averages not less than 33 percent of its total workforce over the 12-month period prior to issuance of the solicitation;

 

              (2)  Pays not less than the minimum wage prescribed pursuant to 29 U.S.C. 206 to the employees who are severely disabled individuals; and

 

              (3)  Provides, for its employees, health insurance and a retirement plan comparable to those provided for employees by business entities of similar size in its industrial sector or geographic region.

 

      “Severely disabled individual” means an individual with a disability (as defined in 42 U.S.C. 12102) who has a severe physical or mental impairment that seriously limits one or more functional capacities.

 

      (b)  Demonstration Project.  This solicitation is issued pursuant to the Demonstration Project for Contractors Employing Persons with Disabilities. The purpose of the Demonstration Project is to provide defense contracting opportunities for entities that employ severely disabled individuals. To be eligible for award, an offeror must be an eligible contractor as defined in paragraph (a) of this provision.

 

      (c)  Representation.  The offeror represents that it [ ] is [ ] is not an eligible contractor as defined in paragraph (a) of this provision.

 

 (End of provision)

 

252.226-7003  Drug-Free Work Force.

As prescribed in 226.570-2, use the following clause:

 

DRUG-FREE WORK FORCE (AUG 2024)

 

      (a)  Definitions.  As used in this clause—

 

      “Employee in a sensitive position” means an employee who has been granted access to classified information; or employees in other positions that the Contractor determines involve national security, health or safety, or functions other than the foregoing requiring a high degree of trust and confidence.

 

      “Illegal drugs” means controlled substances included in Schedules I and II, as defined by section 802(6) of title 21 of the United States Code, the possession of which is unlawful under chapter 13 of that title. The term “illegal drugs” does not mean the use of a controlled substance pursuant to a valid prescription or other uses authorized by law.

 

      (b)  The Contractor agrees to institute and maintain a program for achieving the objective of a drug-free work force. While this clause defines criteria for such a program, contractors are encouraged to implement alternative approaches comparable to the criteria in paragraph (c) that are designed to achieve the objectives of this clause.

 

      (c)  Contractor programs shall include the following, or appropriate alternatives:

 

              (1)  Employee assistance programs emphasizing high level direction, education, counseling, rehabilitation, and coordination with available community resources;

 

              (2)  Supervisory training to assist in identifying and addressing illegal drug use by Contractor employees;

 

              (3)  Provision for self-referrals as well as supervisory referrals to treatment with maximum respect for individual confidentiality consistent with safety and security issues;

 

              (4)  Provision for identifying illegal drug users, including testing on a controlled and carefully monitored basis. Employee drug testing programs shall be established taking account of the following:

 

                    (i)  The Contractor shall establish a program that provides for testing for the use of illegal drugs by employees in sensitive positions. The extent of and criteria for such testing shall be determined by the Contractor based on considerations that include the nature of the work being performed under the contract, the employee’s duties, the efficient use of Contractor resources, and the risks to health, safety, or national security that could result from the failure of an employee adequately to discharge his or her position.

 

                    (ii)  In addition, the Contractor may establish a program for employee drug testing—

 

                            (A)  When there is a reasonable suspicion that an employee uses illegal drugs; or

 

                            (B)  When an employee has been involved in an accident or unsafe practice;

 

                            (C)  As part of or as a follow-up to counseling or rehabilitation for illegal drug use;

 

                            (D)  As part of a voluntary employee drug testing program.

 

                    (iii)  The Contractor may establish a program to test applicants for employment for illegal drug use.

 

                    (iv)  For the purpose of administering this clause, testing for illegal drugs may be limited to those substances for which testing is prescribed by section 2.1 of subpart B of the “Mandatory Guidelines for Federal Workplace Drug Testing Programs” (53 FR 11980 (April 11 1988)), issued by the Department of Health and Human Services.

 

      (d)  Contractors shall adopt appropriate personnel procedures to deal with employees who are found to be using drugs illegally. Contractors shall not allow any employee to remain on duty or perform in a sensitive position who is found to use illegal drugs until such times as the Contractor, in accordance with procedures established by the Contractor, determines that the employee may perform in such a position.

 

      (e)  The provisions of this clause pertaining to drug testing program shall not apply to the extent they are inconsistent with state or local law, or with an existing collective bargaining agreement; provided that with respect to the latter, the Contractor agrees that those issues that are in conflict will be a subject of negotiation at the next collective bargaining session.

 

 (End of clause)

 


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