OPINION: Native 8(a) program is working as intended
July 7, 2010
Federally recognized Indian tribes, Alaska Native corporations (ANCs) formed by the Alaska Native Claims Settlement Act (ANCSA) and Native Hawaiian organizations (NHO) are, and have been, eligible for federal contracting preferences under the U.S. Small Business Administration’s (SBA) 8(a) program. These groups are exempt by law from certain caps on SBA 8(a) contracts that apply to other minority small businesses because Congress recognized that tribes, ANCs and NHOs serve large communities and groups of shareholders, while other minority small businesses generally provide benefits to sole proprietors or small groups of owners. Additionally, it is a minuscule portion of federal spending. In fiscal year 2007, Native enterprises received less than 1.3 percent of all federal contracts.