New Rule Expands Buy Indian Act, Advances Equity Executive Order
Steve Ringman | The Seattle Times
The Interior Department Indian Affairs Office published a final rule in the Federal Register last week to increase Tribal businesses' access to funding and procurement preferences. The new rule updates the Buy Indian Act (25 U.S.C. 47) by eliminating residual regulatory barriers that prevent Indian Economic Enterprises (IEE) from competing for federal contracts.
The rule would expand subcontract opportunities for construction work; expand IEE preferences; amend the processes and thresholds for deviation from the act; and clarify the Buy Indian Act's application. The IEE preference under the legislation applies to the purchasing power of Interior and the Department of Health and Human Services (HHS). The Office of Indian Energy and Economic Development defines an IEE as an Indian-owned or controlled for-profit business with at least 51 percent Tribal ownership.
“The Buy Indian Act’s improved regulations will help our Chahtapreneurs (Choctaw business owners) and our tribally-owned businesses to expand and grow, ultimately helping our tribe and its members to thrive,” stated Choctaw Nation Chief Gary Batton.
In the coming years, the new regulation allows Indian Affairs to set aside up to 65 percent of their purchasing power for Native-owned businesses, resulting in up to $325 million flowing to Indian Country annually. In fiscal year 2021, IEE funding reached nearly $280 million or 59 percent of all Indian Affairs purchasing power—an increase from fiscal year 2018, when Buy Indian Act purchases totaled $85.4 million.
The final rule also aligns with an update to the legislation by the Indian Health Service (IHS), an HHS component, that went into effect in late March. Together, the rules address the primary recommendation the Government Accountability Office (GAO) provided in a 2015 report that noted IHS awarded IEE only 12 to 15 percent of contracts. GAO advised Interior and HHS reassess the Buy Indian Act and determine how and whether to utilize its authority.
“These new provisions are a step in the right direction. I believe many tribes may want to take advantage of the opportunity,” stated Cherokee Nation Principal Chief Chuck Hoskin, Jr.
Assistant Secretary of Indian Affairs Bryan Newland noted the rule, effective in 30 days, is the result of discussions with Tribes. Exactly which Tribes participated in the consultations is not known, though the priorities provided by the new rule are limited to Federally Recognized Tribes.
“These regulations will promote economic opportunities in and near Tribal communities for Native-owned businesses,” said Assistant Secretary Newland, “This is a key part of our goal to make sure that Indian people have the opportunity to live safe, healthy and fulfilling lives in their Tribal communities.”
The updates to the Buy Indian Act also further President Biden’s early executive order (E.O 13985) to advance racial equity and support underserved communities through government action.
