Public Law 93-638 Contracting and Compacting

Indian Trust Self-Governance and Self-Determination Programs

In the early 1970s, Congress passed the Indian Self Determination and Education Assistance Act that allowed Indian tribes and tribal organizations to acquire increased control over the management of federal programs that impact their members, resources and governments. These agreements are referred to as “638 compacts and contracts.”

Contracts and compacts are very similar. Self-Determination contracts are authorized under the 1975 Indian Self Determination and Education Assistance Act. Self-Governance compacts are made possible by 1994 amendments to the 1975 Indian Self Determination and Education Assistance Act.

DOI has long supported tribal sovereignty, self-governance and self-determination efforts and continues to encourage tribes to assume the management of eligible programs through self-governance compacts or self-determination contracts.OST’s responsibilities include management and administration of two programs that are eligible for tribal contracting or compacting:

• Tribal Trust Asset Appraisal Services (real estate)
  Appraisals, or value assessments, are important elements to the many different types of trust land usage agreements. Some of the transactions that require appraisals include commercial, industrial, recreational and other leases; rights-of-way permits; land sales and land exchanges; grazing and range permits; and assessment of trespass damages. Appraisers place a value on trust assets according to professional standards and regulatory requirements so that Indian land owners receive fair value. Tribes, or a consortium of tribes, can administer their own appraisal services through an agreement negotiated with OST.
  
  
• Beneficiary Processes Program (financial trust services)
  For every account held in trust by the United States, OST is responsible for financial trust services such as collection of income, accurate accounting, disbursal of funds and maintenance of current beneficiary information. These roles are managed by OST’s Office of Trust Funds Management. Tribes, or a consortium of tribes, can contract or compact to assume a portion of the administration of Individual Indian Money (IIM) financial trust services through an agreement negotiated with OST.

Eligibility Requirements

Both Self-Determination contracts and Self-Governance compacts are agreements between a tribe and the government for the tribe to assume responsibilities for programs, functions and services or activities that would otherwise be carried out by the federal government.

To assume operation of programs currently managed by OST, a tribe must meet federal requirements and supply certain information to OST. These requirements may include:

• Submit a tribal resolution to assume programs
• Complete a planning phase and planning report
• Demonstrate financial stability and financial management capability for the previous three fiscal years

The full list of requirements is in the Code of Federal Regulations, Title 25, parts 900 and 1000.

Tribes and the government negotiate Annual Funding Agreements in accordance with the contracts and compacts. The funding agreements have detailed parameters and identify funding per program. Tribes may assume many programs at one time and separate funding is granted for each program.

OST looks forward to working with tribes interested in contracting or compacting programs in the spirit of the government-to-government relationship. OST will negotiate specific roles and responsibilities with such tribes.

Contact OST’s Office of External Affairs for more information.

Washington, DC:
OST Office of External Affairs
1849 C Street NW, Suite 5140
Washington, DC 20240
(202) 208-7587
Fax: (202) 208-7545

Albuquerque, New Mexico:
OST Office of External Affairs
4400 Masthead Street, Suite 300
Albuquerque, NM 87109
(505) 816-1081
Fax: (505) 816-1319