Blog: Dermot Cole
Native contracting preferences face review
Published Wednesday, July 15, 2009
While Alaska Native Corporations are lobbying to defend a federal preference that has been worth billions to the companies, a Senate hearing Thursday is to deal with assertions that the program is ripe for revision.
"The 8(a) program is designed to let small businesses get a foot in the door. But, based on the growth of the ANC program, they have busted down the door," Sen. Claire McCaskill said in an interview with reporters, according to Government Executive magazine.
"It's a competitive bidding issue," she was quoted as saying. "This is not about Alaska. We need to figure out why a certain set of companies [has] a different set of rules." http://www.govexec.com/story_page.cfm?articleid=43173&dcn=todaysnews
The Small Business Administration Inspector General released a report last week saying that the privileges granted to Alaska Natives are reducing the opportunities for other minorities seeking federal contracts.
The Alaska Native contracts have grown by 1,386 percent in the past nine years. In addition, the report said that a few Native corporations are getting a disproportionate share of the contracts.
"Further, because studies have shown that sole-source contracts do not always provide the government with the best value, it is questionable whether ANC contracting advantages under the 8(a) program are the most cost-effective way of assisting Alaska Natives," the IG report said.
For more, go to http://www.sba.gov/idc/groups/public/documents/sba_homepage/oig_reptbydate_july9-15.pdf
McCaskill released a statement earlier this month about what she refers to as a "federal loophole" that allows Alaska firms to get large numbers of no-bid contracts for work that generally takes place outside of Alaska.
"Current federal law exempts ANCs from several small business contracting rules, which allows ANCs to obtain large multi-million dollar contracts without any competition. Late last month, the subcommittee released a preliminary analysis of publicly-available data on ANC contracts, and the subcommittee is planning to release the results of a broader investigation that will include an analysis of materials produced by 20 ANCs in response to subcommittee document requests sent in May.
"Alaska Native Corporations were created by a 1971 law that aimed to foster economic development in Alaska, and in 1986, Congress made ANCs eligible to participate in the Small Business Administration’s 8(a) program. Under that program, eligible small and disadvantaged businesses can be awarded small federal contracts on a sole-source basis with no competition. To qualify for the 8(a) program the contract must be relatively small – valued at under $5.5 million for goods or $3.5 million for services – but Congress carved out an exemption for ANCs, giving them the ability to receive no-bid contracts of any size under the 8(a) program. As a result, ANCs are uniquely eligible to receive huge federal contracts without having to compete with other bidders," the statement from McCaskill's office said. http://mccaskill.senate.gov/newsroom/record.cfm?id=315488&
The companies defending the 8(a) program have started a campaign called "Native 8(a) Works for America" that features arguments for preserving the advantages enjoyed by Alaska firms.
"Congress is threatening to curtail a Federal economic development policy that is actually successful," their Web site says. "Native 8 (a) works by promoting economic self-sufficiency throughout Native communities while delivering exceptional value to America."
For more, go to http://www.native8aworks.com/
The University of Alaska Institute of Social and Economic Research has launched a Web site supporting the preferences http://www.iser.uaa.alaska.edu/Home/8a.html
Most of the firms getting contracts aren't even formed in Alaska, but instead in the DC Metro area. Furthermore, they get no bid contracts, even beating out Disabled Veteran business. Why? Because these no-bid contracts get awarded to companies that are nothing more than fronts to the Larger Gov't Contractors (Lockheed-Martin, Boeing, etc..). I'd like to SEE how much of the moneys made from these contracts really make it back to Native Shareholders, or to the State of Alaska.
Don't hear much about all the no-bid contracts going to Halliburton, Brown&Root, and Blackwater.... As I recall, Uncle Ted was a very strong supporter of the native preference program.
This inquiry never happened when Uncle Ted was in. What are our senators doing to halt this madness ?
Oh they have their lobbyists, wining and dining senators. See, if I was of African Descent I'd be really angry. Why do Natives get reparations and no one else does?
It's the way of the corrupt Chicago mobsters, and not likely to change under the reign of the mobster-in-chief.
No, Corrupt Chicago Mobsters have a little more class in the way they do business. Trying to blame the current President is kind of off-base. These preferences were set into practice prior to Obama's current or last office. Can't even blame Palin. No, this was something Stevens pushed through, and perhaps at the time it was a nice idea, but no one voting really thought it through...
We should take the native preference in contracting and hand make it so Disabled Veteran Owned Businesses get this preferential treatment instead of people based upon their heritage or ethnicity. You got the moxie to start a business after losing a leg in service to your country, then you've earned the preference.
I like it, draconianslacker. How about un-disabled veteran owned businesses? They performed the same service and duty.
Sure, but I like the idea of someone who gave chunk of his/her body in defense of our Nation being a smidge ahead of someone who didn't... But still rather see any Veteran business owner given a leg up over someone who was born into a group receiving no bid contracts.
Heck, at least Cheney and his crew didn't try to White-Wash how Halliburton got no-bid contracts... At least his greed was up front, and not hidden behind an "oh woe is me and my people".
Why have any preferance? The low bidder should get the job, or at least have to play by the same rules. If you or I tried this we would be in jail very fast. They are spending public money why should they be permited to break the law? I guess I am too stupid to see WHY?
Gee I wonder who the preferred contractor for your health care will be if that passes.
You gotta wonder what natives (at least those who benefit from the ANC contracts) were thinking who voted for Begich. I fear that native communinities are facing a big shock of reality soon. Consolidiation of villages to economically viable locations is the only answer.
Have you seen the "disabled vets" who are MVP in many sporting events? What a mess this would create!! Why I might dig out my old medical records and go down to the VA and claim disability.
Low bidder all the way!!
You took the land from the Alaska natives! now a small play is close at hand in native businesses to help themselves and you have a heart burn with it? deal with it!
@prospector "I like it, draconianslacker. How about un-disabled veteran owned businesses? They performed the same service and duty."
Hell, vets already get their affirmative action preference points for federal hire. You resent the natives getting theirs but now you want the vets to get more? Pig out, eh?
http://tinyurl.com/nh6n4x
dog
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