Investigators Find Alaska Native 8(a) Is a Front SBA’s inspector general says an Alaska Native tribe appears to be serving as a front for an 8(a) company operated by a non-disadvantaged businessman. The IG and the Defense Contract Audit Agency found evidence that Alaska Native Technologies LLC was managed by Patrick Simpson, who was variously listed as president or director but has never claimed to be disadvantaged. Records showed that an Alaskan tribe, the Native Village of Eyak, owned 51% of ANT, while one of Simpson’s companies owned 49%. However, auditors said the tribe received only one-fourth of the profits from ANT’s 8(a) contracts. “[I]t appears that ANT’s primary purpose is to benefit Mr. Simpson,” the IG said. “…We believe that SBA needs to take action to protect the interest of the Agency and the 8(a) program.” In response, SBA said it will “conduct a thorough review” of ANT and take action if the company is found to be ineligible for the 8(a) program. ANT has received contracts and orders worth more than $20 million since 2004, according to usaspending.gov. ANT did not respond to a request for comment. The auditors found that other Simpson-owned companies collected management fees and rent from ANT, and he served as a paid consultant to the 8(a) firm. He appointed ANT’s general manager and chief systems engineer, who were previously employed by other companies he owned. The Defense Contract Audit Agency questioned $124,000 in consulting fees paid by ANT to a Simpson-owned company. DCAA said Simpson did not provide documentation to support the payments. “Mr. Simpson also entered into multiple business arrangements that allowed him to capitalize on the firm’s 8(a) status and to profit through services performed for ANT by other companies that he owned,” the IG said. “Further, Mr. Simpson was involved in managing the day-to-day activities of ANT.” Non-disadvantaged individuals are permitted to provide management services to 8(a) companies with SBA’s approval. The IG said ANT never sought approval for Simpson’s role. “Our review disclosed a number of irregularities representing a questionable framework under which ANT was organized and continues to operate,” the IG said. Eyak’s tribal president acknowledged that the tribal council never voted to purchase the company and ANT did not appear on the tribe’s list of investments.