SBA Seeks Tribes’ Ideas on 8(a) Rule Changes As SBA considers new rules for tribally owned businesses, leaders of Alaska Native Corporations urged the agency not to place restrictions on their access to government contracts. SBA officials conducted the first of at least two “tribal consultations” with Alaska Natives and other tribally owned firms in Fairbanks, AK, on Oct. 25. A second meeting is scheduled for Nov. 11 in Denver. The agency gave no indication of what changes are in the works, according to Sarah Lukin of Afognak Native Corporation, who attended the Fairbanks meeting. She told Set-Aside Alert that Alaska Native representatives urged SBA to do nothing “detrimental to our ability to diversify our economy.” Calvin Jenkins, SBA deputy associate administrator for government contracting and business development, told the group, “For lack of a better word, we’re looking for help,” the Anchorage Daily News reported. He asked the tribal businesses to suggest changes that would improve their program. The rapid growth of large sole-source awards to Alaska Native firms through the 8(a) program has touched off a backlash among non-Alaskan 8(a)’s and some members of Congress. ANCs received 17% of 8(a) contracts, worth $1.9 billion, in 2005, according to the Native American Contractors Association. Unlike other 8(a) companies, ANCs are eligible for sole-source awards in unlimited amounts. Several of the corporations have won contracts valued in the hundreds of millions of dollars for work far from Alaska. The Government Accountability Office reported that SBA is considering possible new controls on joint ventures between ANCs and large corporations, including mentor-protégé arrangements. (SAA, 9/28) Last year GAO said agencies were not monitoring ANC contractors to ensure that they are complying with limits on subcontracting. But the auditors found no evidence of fraud or abuse. GAO said contracting officers consider ANCs a quick, easy and legal way to award contracts without competition. (SAA, 5/5/2006) GAO has initiated another audit of ANCs at the request of Rep. Edolphus Towns, D-NY, chairman of a House Oversight and Government Reform subcommittee. SBA’s Jenkins said any rule changes are months away. Lukin, of Afognac ANC, said she urged the agency to make sure the tribes are involved in the rulemaking process. Some of the ANCs have grown into the top ranks of Alaska’s largest businesses, the Daily News said. Alaska Native companies emphasize their contributions to Native communities. The 12 largest ANC government contractors paid $33.6 million in dividends to their Native shareholders and provided nearly $5.5 million for community projects in 2005, according to the Native American Contractors Association. Lukin said the ANC program was established to help Alaska communities lift themselves out of poverty and create a thriving economy. It has been one of the most successful federal efforts for that purpose, she said.