FAR 26.101—Definitions.
Plain-English Summary
FAR 26.101 provides the core definitions used in FAR Subpart 26, which addresses Indian organizations and Indian-owned economic enterprises in federal contracting. This section defines who counts as an "Indian," what qualifies as an "Indian organization," what an "Indian-owned economic enterprise" is, what entities are included in the term "Indian tribe," and who is an "interested party" for purposes of subcontracting-related rights or disputes. These definitions matter because they determine eligibility for certain Indian-related contracting preferences, set-asides, and participation rules, especially where the government is working with or through tribal entities and Indian-owned businesses. In practice, contracting officers must use these definitions to identify eligible entities and apply the correct procurement procedures, while contractors and prospective offerors must understand whether they have standing or eligibility under the subpart. The section is foundational: if the wrong entity is treated as eligible, the procurement may be improperly structured or challenged, and if a party is not recognized as an interested party, it may lack the ability to contest subcontracting decisions.
Key Rules
Indian status definition
An "Indian" includes a person who is a member of a federally recognized Indian tribe, band, group, pueblo, or community eligible for Bureau of Indian Affairs services, as well as any "Native" as defined in the Alaska Native Claims Settlement Act. This definition ties eligibility to federal recognition and specific statutory references rather than self-identification alone.
Indian organization definition
An "Indian organization" is either the governing body of an Indian tribe or an entity established or recognized by that governing body for purposes of 25 U.S.C. Chapter 17. The key point is that the organization must be tied to tribal authority or recognition, not merely associated with Indian interests.
Indian-owned economic enterprise definition
An "Indian-owned economic enterprise" must be a commercial, industrial, or business activity established or organized for profit, and Indian ownership must be at least 51 percent. The Secretary of the Interior determines Indian ownership, so eligibility depends on both ownership percentage and the applicable federal determination.
Indian tribe definition
An "Indian tribe" includes tribes, bands, pueblos, communities, native villages, and native groups recognized by the Federal Government as eligible for BIA services under 25 U.S.C. 1452(c), including certain Alaska Native corporations organized by Kenai, Juneau, Sitka, and Kodiak as identified in the Alaska Native Claims Settlement Act. This definition is broader than a simple tribal-government concept and specifically incorporates Alaska Native entities named by statute.
Interested party definition
An "interested party" is a prime contractor or an actual or prospective offeror whose direct economic interest would be affected by the award or failure to award a subcontract. This definition is important for determining who has standing to challenge or seek review of subcontracting decisions under the subpart.
Responsibilities
Contracting Officer
Use these definitions to determine whether a person, organization, enterprise, or tribe qualifies for the Indian-related rules in FAR Subpart 26. Verify eligibility before applying preferences, structuring solicitations, or making subcontracting-related decisions that depend on these terms.
Contractor / Prime Contractor
Understand whether a subcontracting decision or solicitation action affects your direct economic interest and whether you qualify as an interested party. Prime contractors must also recognize when Indian-related eligibility rules may affect subcontracting opportunities or compliance obligations.
Actual or Prospective Offeror
Assess whether you have standing as an interested party if a subcontract award or failure to award a subcontract affects your direct economic interest. Offerors should also confirm whether they meet the Indian-related definitions before relying on any preference or eligibility claim.
Indian Tribe / Tribal Entity
Ensure the tribe or tribal entity is properly recognized or established under the applicable statutory framework before claiming status under these definitions. Tribal entities should maintain documentation showing federal recognition, tribal authorization, or other required basis for eligibility.
Indian-Owned Business / Economic Enterprise
Maintain proof that the enterprise is organized for profit and that Indian ownership is at least 51 percent, with ownership determined under the applicable federal standard. The business must be able to substantiate its status if eligibility is questioned.
Practical Implications
These definitions control who can participate in Indian-related procurement programs, so eligibility documentation is critical. A business or organization that looks Indian-owned or tribal may still fail the FAR definition if it lacks the required federal recognition or ownership threshold.
The 51 percent ownership requirement is a common pitfall. Contractors should not assume minority participation, management control, or cultural affiliation is enough; the ownership test must be met and supportable.
For Alaska Native entities, the definition is statutory and specific, so users should not rely on general assumptions about Native status. The exact entity and its legal status matter.
The "interested party" definition affects who can challenge subcontracting decisions. If a firm cannot show a direct economic interest, it may not have standing to object or seek review.
Contracting officers should verify the correct definition before applying any Indian-related preference or subcontracting rule, because using the wrong status can lead to protest risk, compliance issues, or an improperly structured acquisition.
Official Regulatory Text
As used in this subpart- Indian means 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 any "Native" as defined in the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601 ). 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, 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 prime 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.