Changes to SBA’s 8(a) program: The view from the Lower 48

December 07, 2010

By Stephanie Woodard, Today correspondent

Tribal economies have already been affected by recent restrictions placed on sole-source federal contracts they obtain through the Small Business Administration’s 8(a) program, according to Lance Morgan, chairman of the board of the Native American Contractors Association and CEO of Ho-Chunk, Inc., a successful company owned by the Winnebago Tribe of Nebraska, of which Morgan is a member. "Contracts Ho-Chunk was negotiating are already in question," he said.

The 8(a) contracts – for tribally-owned firms, Alaska Native Corporations and Native Hawaiian organizations – make up 1.3 percent of sole-source federal contracts, mostly originating from the Defense Department. Senate Armed Services Committee member Sen. Claire McCaskill, D-Mo., supported the initial set of restrictions, via soon-to-be-implemented Section 811 of a defense appropriations bill.

ANC coalition calls for reform, tackles inaccurate data and criticisms

December 07, 2010

By Stephanie Woodard, Today correspondent

FAIRBANKS, Alaska – Three of the 13 regional Alaska Native Corporations got together two years ago to propose improvements to ANC participation in the Small Business Administration’s 8(a) federal sole-source contracting program, said Aaron M. Schutt, Athabaskan, senior vice president and chief operating officer of one of the firms, Doyon, Limited.

Joining Doyon were Cook Inlet Region, Inc. and Arctic Slope Regional Corporation. The contracting program has now come under fire, with Sen. Claire McCaskill, D-Mo., submitting legislation that would limit the size of contracts ANCs receive to those allowed individual small businesses.

The reform coalition had suggested the changes to prevent just such attacks, said Schutt, who is an attorney. "We believe improvements in three areas – increased competition, greater accountability and enforcement of existing rules – will strengthen ANCs’ participation in the program. Had these reforms occurred earlier, they might have kept Alaska Native Corporations out of newspapers and congressional hearings."

Collectively, the three firms have about 35,000 shareholders. Each company works in some combination of oil-field, information-technology and utilities services; petroleum refining; engineering; construction; real estate; financial investment; and other sectors.