Alaska lawmakers unite to support federal 8(a) contracts

ANCHORAGE, Alaska — When national lawmakers start talking about Native 8(a) contracts, Alaska pays attention. That’s just what happened this past July and now the state is organizing to protect native corporations that depend on 8(a).

The 8(a) program works within the federal government, which gives preference to Alaska Native corporations in landing federal contracts without competition from other bidders.

State lawmakers say it’s under threat and Monday they met to present a unified defense.

Native corporations and lobbying groups are now on the record.

“We hope that your involvement will prove to be a positive influence on this economic engine for Alaska,” said Sarah Lukin of the Native American Contractors Association in her testimony.

Their testimony is ammunition to fight for 8(a).

“ANCSA (Alaska Native Claims Settlement Act) corporations are not merely for-profit corporations. They are stewards of the native homeland, sponsors of education and training opportunities, employers of first resort for our people,” said Julie Kitka, the president of the Alaska Federation of Natives.

In July, a U.S. Senate subcommittee put the program under the microscope.

“From the taxpayer perspective, it’s hard to see why the Alaska Native corporations should be able to receive enormous contracts with no competition,” said Sen. Claire McCaskill, D-Mo.

Native corporations routinely handle multi-million dollar bids.

The Small Business Administration argued it’s unfair to treat the corporations as if they’re small, disadvantaged businesses.

The chatter on Capitol Hill concerns Alaskans who rely on 8(a).

“The 8(a) program and the benefits that it have brought to the Alaska Native corporations are second only to the TAPS (Trans-Alaska Pipeline system) line and the pipeline and what it has done for Alaska,” said state Rep. Jay Ramras, R-Fairbanks.

State Sen. Lesil McGuire, R-Anchorage, says they’ll need all the help they can get.

“We could get the other lawmakers in New Mexico and Hawaii together and form sort of a coalition of local lawmakers that see the benefits of this 8(a) program within their communities,” McGuire said.

State lawmakers say they’ll send a transcript of this hearing to Alaska’s Washington delegation.

A report shows in the year 2000 Alaska Native corporations collected $500 million in contracts. Eight years later that number skyrocketed to $5 billion, but advocates say the law is doing what it’s supposed to do.

Though most 8(a) corporations can only receive federal contracts of five million dollars or less, Alaska Native corporations are the exception.

They have no limit because of an amendment that former Sen. Ted Stevens helped pass.

Contact Ted Land at tland@ktuu.com