Native 8(a): Is it right for your Tribe?

Transcription

1 Native 8(a): Is it right for your Tribe? Jennine Elias External Affairs Coordinator Native American Contractors Association Michigan Tribal Economic Development Forum May 17, 2011

2 History of the SBA 8(a) Program Small Business Act of 1953 To insure a fair proportion of government purchases placed with small business enterprises. Section 8(a) A Business Development Program providing opportunity for full participation by socially and economically disadvantaged persons. Contracts can be awarded on a sole source or restricted competition basis.

3 History of the SBA 8(a) Program Tribes, Alaska Native Corporations (ANCs), and Native Hawaiian Organizations represent entire communities of disadvantaged individuals and are responsible for providing benefits. Congress recognized the devastating economic and social situation of our communities, and in the late 1980 s and early 1990 s, tried to level the economic playing field as we fought to overcome poverty, rampant social ills, and lack of access to basic infrastructure that other Americans had.

4 Alaska Native Claims Settlement Act (ANCSA)

5 Tribes and ANCs socially disadvantaged. Later ANCs defined as economically disadvantaged. Unique provisions for Native community based organizations. Can pursue larger sole source contracts. Can have multiple 8(a) companies.

6 Tribe ANC NHO Native Community Enterprise 8(a) American Indian Tribe Alaska Native Corporation Native Hawaiian Org Nonprofit Elected Tribal Council Elected Board of Directors Appointed Board of Directors Government & Community Services Asset Management & Community Services Nonprofit Mission & Community Services Chart from CNHA as as as

7 Why is the Native 8(a) Program Important to Native communities? the Government spent a total of $439.5 billion in contracts Compare Indian Gaming is a $26 billion industry 32% of those awards were sole sourced Native enterprise awards totaled = $5.1 Billion, or 1.2% Native 8(a) awards totaled less than eight tenths of 1% Contracts to Native 8(a)s represented 26% of all 8(a) awards

8 The Reality of Native 8(a) Today Over 200 Native enterprises participate in Government Contracting Dozen are very successful (over $200M government contracting revenues) successful Others are just entering the program or struggling Expect a 3-5% profit

9 Case Study: Bering Straits Native Corporation (BSNC)

10 BSNC Subsidiary Companies Bering Straits Corporation (Parent Company) AYAK, LLC Bering Straits Aerospace Services, LLC Bering Straits AKI, LLC Bering Straits Information Technology, LLC Bering Straits Logistics Services, LLC Bering Straits Technical Services, LLC Global Support Services, LLC Ikigak Services, LLC Iyabak Construction, LLC Bering Straits Development Corporation Eagle Electric, LLC Inuit Services, Inc.

11 BSNC Type of Government Contracting Industries Engineering and Project Management General and Electrical Construction Services Commercial Facility Renovation and Remodel Security and Automated Building Systems Fiber Optic Installation Base Operations Support Services Facilities Maintenance and Management Information Technology Services Logistics Services Security Services Administrative Support Services Financial Analysis Aerospace Services Air Field Operations

12 Case Study: Forest County Potawatomi Tribe is located in Crandon, Wisconsin Approximately 1,300 tribal members Operate 2 casinos (Milwaukee and Carter, WI)

13 Organizational Chart Forest County Potawatomi Tribe/Executive Council Potawatomi Bingo Casino Potawatomi Capital Company Potawatomi Business Development Corporation Investments/Business PCDC- Community Development

14 PBDC Subsidiary Companies

15 Advancia Offices and Contracting Locations Headquarters in Oklahoma City, OK Locations: Anchorage, AK Fairbanks, AK Huntsville, AL Fort Huachuca, AZ Tucson, AZ Denver, CO Washington, DC Atlanta, GA Augusta, GA Fort Leavenworth, KS Lexington, KY Aberdeen, MD Kansas City, MO Ft. Leonard Wood, MO St. Robert, MO Carlisle, PA Charlottesville, VA Ft. Eustis, VA Ft. Lee, VA

16 NACA s Vision & Mission Vision To enhance the economic self-sufficiency of America s Indigenous people. Mission To enhance self-determination through preservation and enhancement of government contracting participation based on the unique relationship between Native Americans and the federal government.

17 2011 NACA Dues Revenue Tier Revenue Range for Tier Calculation Rate 1 $0 to $2,000,000 $530 2 $2,000,000 up to $ 100,000,000 $530 + ($250 x (revenue $2M) 3 Greater than $100,000,000 $25, ($25 x (revenue $100M)

18 2010 NACA Members States

19 Contact Information Quyanakpaq (Thank you very much)! Jennine Elias, External Affairs Coordinator Native American Contractors Association Website: Phone: Follow us on Twitter: