An SBA official said large contracts awarded to Alaska Native Corporations are not harming other small businesses.

“We do not see any negative impact,” said Calvin Jenkins, deputy associate administrator for government contracting and business development. “…We believe there are adequate opportunities for all of the [small business] groups.” He testified before the House Oversight and Government Reform Committee’s subcommittee on government management, organization and procurement on Sept. 26.

Alaska Native firms are classified as 8(a) businesses, but are permitted to receive sole-source contracts in unlimited amounts. Other 8(a) companies are limited sole-source awards up to $3 million, or $5 million for manufacturing.

The Alaska firms received 17% of 8(a) contract dollars in 2006, according to the Native American Contractors Association. Their share has been growing rapidly in recent years.

Some small business organizations have urged that the Alaska companies be removed from the 8(a) program.

Allegra McCullough, who formerly held Jenkins’ job at SBA, told the subcommittee that the different treatment of Alaska firms and other 8(a)’s “creates a new dimension of discrimination…an environment of ‘them’ and ‘us’ [that] threatens the existence of the program.”

Nine of 24 federal agencies are not complying with the law requiring high-level access for their directors of small and disadvantaged utilization, the Government Accountability Office reported.

The Small Business Act requires that the OSDBU director report to the agency head or his deputy. GAO said nine of the directors report to lower-level officials: Agriculture, Commerce, Education, HHS, Justice, State, Interior, Treasury and Social Security.

Some of the agencies said they had legally delegated the reporting authority for their OSDBU, but GAO said there is no provision in the statute allowing such a delegation.

Since GAO first reported on the issue four years ago, one agency, EPA, has changed its policy so that the OSDBU director now reports to one of the top two officials.

GAO said the reporting requirement is more than a box on the organization chart. It is intended to focus high-level attention on the needs of small and disadvantaged businesses.

SBA has named Sandford “Sandy” Blitz regional administrator for Region I, serving the New England states.

He is a former business owner and served in the Commerce Department and GSA.

He succeeds Mark Hayward.