Native Americans have a long history of patriotically contributing to the U.S. Military. Today, Native American small businesses in the fields of engineering, construction, IT, and other areas, continue to supply the Department of Defense (DoD) with dependable high-quality supplies and services.

Despite recent upward trends in economic activity, Indian reservations and Alaska Native Villages still suffer some of the worst poverty in the country. In an effort to boost Native American economic development, Congress has authorized Federal contracting agencies to "encourage" the use of Native American owned subcontractors. The DoD Indian Incentive Program is a viable example of this encouragement.

The Department of Defense (DoD) Indian Incentive Program (IIP) motivates Prime contractors to utilize Indian organizations and Indian-owned economic enterprises, by providing a 5% rebate to Prime contractors on subcontracted work performed by an Indian organization or on subcontracted products manufactured in whole or in part by an Indian organization. For actions after 13 September 2001, sub-tier contractors who subcontract to an Indian-owned firm are also eligible for incentive payments.