Busey Group: Incentive boost helps Native businesses stay competitive
January 8th, 2008
The Journal Record
By David Page

OKLAHOMA CITY - In 2002, the Busey Group of Companies in Oklahoma City included an incentive from the U.S. Department of Defense Indian Incentive Program Fund as part of a proposal for a subcontract with a large aerospace company.
Through the program the prime contractor can receive a 5-percent cash rebate incentive from the Department of Defense based on the amount of a subcontract awarded to Native American-owned businesses - such as the Busey Group of Companies.
The Busey Group was awarded the contract in 2002 and has used the Department of Defense incentive program in other successful subcontract proposals. The Busey Group was founded in 2000.
"The incentive program helped us get off the ground," said Phil G. Busey, chairman and CEO of the Busey Group.
This year, money allocated for the incentives has been increased to $15 million annually from $8 million, increasing opportunities for the Busey Group and other Native American companies, he said.
"This is a big step for us and other Oklahoma-based Native American subcontractors," Busey said.
Although the rebate is for prime contractors and not the subcontractor, using the incentive in a proposal can help Native American companies submit more competitive bids, he said.
Subcontractors and suppliers must be owned by a federally recognized tribe or a member of a federally recognized tribe to qualify for the Department of Defense program. Busey is a member of the Cherokee Nation and Delaware Tribe. Native Alaskan and native Hawaiian subcontractors can also qualify for the program.
"The program is an incentive for large defense contractors to look to Oklahoma Native American companies for subcontracts," he said.
The Busey Group has about 225 employees. The company has military-related contracts at Tinker Air Force Base and in Hawaii and Alaska. About 75 Busey employees work on a coal bed methane project in Wyoming for Marathon Oil.
The increase in funding was needed. For the last several years prime contractor requests for rebates exceeded the $8 million in annual funding. Currently rebate payments to prime contractors are being delayed because of a backlog of requests, according to the program Web site. However, eligible requests will eventually be paid.
Additional funding for rebates could be important to Oklahoma because of the number of Native American companies in the state, Busey said.
"The program benefits not only us but all Native American companies," Busey said. "It can be used by all Native American companies doing business at Tinker. If it is used right, it can be a great thing for the state."