DED-Memorandum-Header-002

Business Procurement Clearance Requirements

October 23, 2023

This memo provides guidance and instruction to the Navajo Nation government regarding submission for and receipt of Procurement Clearances pw-suant to the Navajo Business and Procurement Act ("NBPA").1 Below provides the required information, expiration, and estimated response time for a Procurement Clearance request.

Required Navajo Business and Procurement Act Compliance

The Navajo Nation must obtain Procurement Clearances prior to engaging in any matter with a party2 to verify whether the that party "procures clear" to do business or enter in any transaction with the Navajo Nation; including to determine if a party is eligible to receive certification under the Navajo Business and Opportunity Act.3 To procure clear, there must be no evidence of deficient business practices, unlawful criminal action, or debt owed to the Navajo Nation. If a party does not procure clear, it is ineligible to transact or do business with the Navajo Nation. However, the NBPA does allow a party to remove an ineligibility or offset a debt owed through acts of compliance, offset, or complete payment of debt.

Required information for a request

For a timely response to a valid request, provide the below listed owner and business information in a memo to the appropriate department. Doing so will verify that the party procures clear in its current, former, or any in other identifiable capacity.

Required Owner(s) Information:

  • First and Last names (including maiden or former names);
  • Social security, federal EIN, or tax ID numbers; and
  • List of shareholders, for any Navajo Nation domestic corporation.

Required Business(es) Information:

  • Current, operational name and any trade names;
  • Former business name(s), if applicable;
  • List of officers of the business; and
  • Federal EIN.

Request expiration and estimated response time

Procurement Clearance shall be requested from the below listed departments:

Name Valid For Est. Response Time
Accounts Receivable, OOC 30 calendary days 2 business days
Office of the Navajo Tax Commission Yearly quarter in which issued 10 business days

Please reach out to each department to determine the appropriate contact to whom a Procurement Clearance request should be made.

The estimated response time is provided to help a requester develop a timeframe in which to request a Procurement Clearance and meet its deadline. The Business Regulatory Department strongly recommends all requests for Procurement Clearances be made allowing additional time for response than the minimum estimated response time above. If you have any questions, contact our office at [email protected] or (928) 871-6714. Thank you.

CC: BRO Chrono.File.FY'24
 

1 12 N.N.C § 1501 (2014).
2 12 N.N.C § 1505 (2014) (A party is any "individual, business, corporation, partnership or other entity" such as a "contractor, grantee, consultant, broker, dealer, vendor, supplier, permittee, lessee, easement or loan recipient, etc.").
3 12 N.N.C § 1505 (No party shall be eligible to do business with the Navajo Nation; receive Navajo Nation Business Opportunity Act certification; or be granted an easement, permit, lease, or loan from the Navajo Nation if found ineligible.).

 

Navajo Division of Economic Development