(a) Native American grantees shall comply with the procurement
systems and procedures found in 41 CFR 29-70.216, Procurement standards.
(b) Subject to the Indian preference provisions of Sec. 632.35(h),
small and minority-owned businesses, including small businesses owned by
women, within the service area of the Native American grantee, shall be
provided maximum reasonable opportunity to compete for contracts for
supplies and services. One means to provide for this is the use of set-
asides.
(c) No funds shall be paid by the Native American grantee to any
organization for the conduct of programs under the Act unless:
(1) It has submitted an acceptable proposal;
(2) Selection is performed on a merit basis;
(3) It has not been seriously deficient in its conduct of, or
participation in, any Department of Labor program in the past, or is not
a successor organization to one that was seriously deficient in the
past, unless the organization statisfactorily demonstrates that the
deficiency has been or will be corrected and performance substantially
improved; and
(4) It has the administrative capability to perform effectively.
