The Native 8(a) program – How it works, how it helps

Over the last few months, much has been reported on the Federal Small Business Administration program that allows certified Native American companies to bid on government contracts.

Social and economic benefits, business opportunities, scholarships, job mentoring and training and cultural programs – what do these benefits have to do with federal contracting?

The federal Native 8(a) program provides a tool for minority-owned, disadvantaged businesses to gain access to government contacting – and it’s a program that is working as intended. Proceeds from these contracts support important economic and social benefits to thousands of Native American communities including Alaska Natives, American Indians and Native Hawaiians. What’s more, this efficient, competitive and cost-effective program delivers exceptional value to America – at no additional cost to the taxpayer.

In recognition of the federal government’s unique obligation to America’s indigenous peoples, Congress expanded the 8(a) contracting program in 1986 to give aboriginal Americans special preferences. The program allows Alaska Native Corporations (ANCs), Native Hawaiians and Tribes special access to the government contracting marketplace. Today, Native 8(a) contracts represent less than 2 percent of the government’s total federal contracting dollars.

These Tribes and Native-owned firms help fulfill the program’s mission because their sole purpose is to provide social and economic benefits to their indigenous owners, who number in the hundreds of thousands.

The Native 8(a) program is working as intended by:

• Helping Native communities across the country build business capacity and become active participants in the U.S. economy
• Providing social and economic opportunities to some of the most socially and economically disadvantaged groups in America
• Generating jobs, economic activity and opportunities for businesses in every state
• Providing quality work for the federal government at competitive rates