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Return to Article: Data shows Alaska native firms do most of their work in other states

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  Wow! Maybe I missed it, but I didn't see anybody imply that a billion dollar company has billions of dollars in net income. This isn't the neopet site, I think we understand the principle of gross and net. While it may be true that many native companies have "graduated" from the 8(a) program, it is also a fact that they just keep spinning off affiliates and subsidiaries the same way a hurricane spawns tornadoes. Just do a little research of your own. Here, let me help. Just go to Alaska Division of Business, Corporations and Professional Licensing and look up any of your favorite ANCs, maybe Chenega or NANA for starters. Now dig deeper and see how many other Alaska companies are chartered by the same board members or are clearly affiliates or subsidiaries of the large ANCs. By large, I mean that their size standard exceeds the applicable standard established for their NAICS code by the SBA, which is their Gross Revenue averaged over the last three years. (Which means that a billion dollar company is a billion dollar company). If you dig like you mean it, for example, like the future of your employer's existence depends on it, then the results are frightening and astounding. "Benefits like the creation of jobs"? The jobs are a function of the contract, not the contractor, so the jobs still exist no matter who wins the contract. Unfortunately, when a contract is handed out sole source with no competition, some companies don't get the chance to compete. Competition is what ensures that costs don't run out of control in a free market system. It's why monopolies aren't just frowned on, they are forbidden.

  Cynykal1 Posted July 15, 2009 5:14 PM
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  Unfortunately, these comments are way off base and without facts. "Billion dollar" companies don't have billions in net income. Also, they don't have one owner, they have thousands of shareholders, most of whom live in impoverished communities with a high cost of living. The 8a program was intended for disadvantaged people, here is a fine example of it working. Many native companies have "graduated" from the 8a program, so that too is a misguiding comment. The federal government made a commitment to Native people long ago when it took over the land and forced a new culture on them. This is another attempt to restructure a commitment that was made to a group of people. Some in congress, those on a witch hunt to make a name for themselves, seek to attack a program because a) they see an easy target, and b)they think they can sell it as "too" successful without admitting the benefits of these corporations to all Americans. Benefits like the creation of jobs, the improved quality of life in the areas where they operate, and providing the best value to the government in the process. Please do your research first. Take a look at native8aworks.com and discover the facts.

  More informed Posted July 13, 2009 12:44 PM
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  Why is it so hard for a black female to get contracts with the department of defense or any other agencies?

  DJ Posted June 29, 2009 11:35 AM
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  The qualifying word in this article is "WORK" a 4 letter word in CS vocabulary

  dan m ketter Posted June 24, 2009 9:00 PM
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  Federal contracts are given to ANC's without competition and yet some ANC's are billion dollar organizations (like the BBNC). The preferencial treatment is supposed to help the tribe get a leg up, yet, this tribe doesn't need it. These laws need to be reviewed and leveled for others to compete with. Providing federal contracts to an ANC that needs it is one thing, but hiding behind the word ANC when in fact it is a billion dollar organization, is quite another.

  Mike Posted June 24, 2009 3:10 PM
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  It would be nice for them to look into the percentage of work done by employees of these ANC. Since they can partner with large businesses, I am sure most of the dollars are just flow-through to firms the Government wanted but could not justify a sole source contract to.

  Contracting Officer Posted June 24, 2009 12:40 PM
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  Why is this news? There's nothing that requires ANCs or any other contractor to do work in their own state.

  The real problem with the ANC program is that Agencies tend to not enforce the subcontracting limitations that apply to this program just like any other 8(a) or small business set aside contract. They just award a contract and let the ANC subcontract to the large business they really wanted and the ANC collects the profits. If Agencies did their job right, a lot fewer dollars would go to the ANCs because they wouldn't be able to comply with this material contract requirement. But most Agencies are strapped for qualified personnel and don't have the time or ability to do proper oversight. Give Agencies enough acquisition people to do their jobs and they'll quit making news.

  Keith Posted June 24, 2009 11:49 AM
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  This is pretty wild because when I was trying to obtain a contract with the USAF they adecided to subcontract to an Native American firm that was based in the North East and my firm is based in Ohio.

  The contracting officer from DISA told me to look for work in Ohio.

  contractor Posted June 24, 2009 10:09 AM
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  Hey at least they are spending money. And no ever said the contracting jobs had to be in state,

  So much for minority contracts, apparently if you are not the correct minority you need not apply.

  Eddy Posted June 24, 2009 9:50 AM
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  The article implies this is news. ANCs have long been working inside and near the Washington, D.C. beltway.

  How could ANCs generate so much revenue if they focused on work near or in Alaska? Several ANCs leverage their very special socioeconomic status as their key (and often only) differentiator to win business. ANC status gives them an edge over most small businesses because while many small businesses will eventually exit their status as a small business, ANCs remain small even when they have the capacity to work like a large business.

  Some guy Posted June 24, 2009 8:19 AM