Native 8(a) Program – How it Works
- What is the Native 8(a) Contracting Program?
- Why did Congress create the Native American 8(a) Program?
- What has the impact of the Native American 8(a) Program been for its communities?
- What does the future of the Native American 8(a) Program hold?
What is the Native 8(a) Contracting Program?
In the late 1980’s and early 1990’s, Congress amended the Small Business Act to permit tribal corporations1 certified under Section 8(a) of the Act to contract with the federal government without a cap on the amount of a negotiated sole-source contract. Other individual small businesses certified by Section 8(a) are limited by the dollar amount of the contract. These provisions were created to acknowledge the benefit Native 8(a) enterprises provide to entire communities, not just individual business owners.
Why did Congress create the Native American 8(a) Program?
Congress first authorized the Native 8(a) Program in 1982 to provide a means for Tribal enterprises to enter the government’s business development program as a path toward economic success and self sufficiency. Later, in 1986, Congress expanded opportunities to Alaska Native Corporations.
What has the impact of the Native American 8(a) Program been for its communities?
The Native 8(a) Program is a hand up, not a hand out. This non-appropriated opportunity provides enables profits be returned to the Native communities they serve. Tribal enterprises receive less than 1.5% of the total U.S. procurements. Yet this minuscule market share creates employment and educational opportunities to tribal members, housing for elders and other tribal members, preservation of Native culture and language, and funding for governmental services such as police officers, court systems, health care facilities, and child welfare programs. This program has had remarkable successes and, in fact, supplements those underfunded federal programs as Tribes exercise self-sufficiency and self-determination.
What does the future of the Native American 8(a) Program hold?
The Native American 8(a) program continues to face many challenges. A few Alaskan Native Corporations have experienced great success with the Native 8(a) program and in so doing become an “easy target” for some members of Congress who do not fully understand the small scope and big impact of this opportunity. While many more tribal corporations are queued up to work hard and deliver quality services to the Federal government and return benefits to their members, they are finding opportunities limited by recent changes in the law, such as Section 811 of FY2010 National Defense Authorization Act. To respond to concerns identified as problems or potential problems, the Small Business Administration is now finalizing new regulations.
The Native 8(a) Program provides opportunities for economic diversification. However, the cost of certification and uncertainty of the status of the program given recent scrutiny by Members of Congress leaves some tribal corporations uneasy about making the investment. Nevertheless, the benefits of the program and opportunities for economic diversification are immense. NACA and its members will continue to advocate for expansion of the program.
