The Federal Acquisition Regulation councils have made permanent a rule requiring written justification before awarding an 8(a) sole-source contract worth more than $20 million.

The councils adopted, without change, an interim rule that took effect in March 2011. Congress required the justifications in the 2010 Defense Authorization Act, primarily because of the large sole-source contracts that had been awarded to Alaska Native Corporations.

Tribally owned firms, including the Alaska companies, are the only ones that can receive sole-source awards in such large amounts.

In a clarification of the rule, the councils said an agency that is considering a sole-source award may take into account the impact on Native American economic development and the agency’s needs in meeting socioeconomic goals.

The councils received nine comments on the interim rule. Most of them favored it.

Some Alaska 8(a) firms have won sole-source contracts worth hundreds of millions of dollars. In recent years the Alaska companies have accounted for more than one-fourth of all dollars awarded under the 8(a) program.

Legislation is pending to abolish the special preferences for tribally owned companies. The Native American and Alaska Native contractors have argued that the preferences are justified because they distribute some of the