Partnering with Alaska Native Corporations (ANC)

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Edwin Tate
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1 Partnering with Alaska Native Corporations (ANC)

2 Contents Historical Context for Alaska Native Corporations (ANC) Unique ANC Value Propositions Contracting with ANCs and their subsidiaries About Koniag, Incorporated Koniag Services, Inc. and its contract awards 2

3 Alaska Statehood and Native Rights The Alaska Statehood Act of 1959 Granted the State of Alaska rights to select 104 million acres of land that was then held by the Federal Government A disclaimer in Section 4 of the Statehood Act provided that existing Alaska Native land claims would be unaffected by statehood Despite the disclaimer, the Bureau of Land Management (BLM) began to process the Alaska government s land selections without consulting affected Native groups Native groups protested many of the state s selections which led to many Alaska Native leaders from across the state gathering and forming the Alaska Federation of Natives (AFN) in The intent of AFN was to advocate for Alaska Native interests, particularly aboriginal land claims Major turning point: Oil was discovered off the Arctic coast in Prudhoe Bay in 1968 but an 800 mile pipeline through disputed lands would be required to bring oil to the market 3

4 Oil Discovered at Prudhoe Bay Largest oil field ever discovered in North America discovered in Prudhoe Bay off Arctic coast in 1968 Oil companies proposed building a ~800 mile pipeline to carry oil from Prudhoe Bay to the Port of Valdez Title to much of the land across the 800 miles was in dispute Secretary of Interior Stewart Udall placed a freeze on the land and stated that the pipeline could not be built and the State could no longer select land until land claims issues were resolved This action jolted the oil industry and state into action Federal, State and Alaska Natives ultimately agreed on a settlement for the Native lands in dispute which led to the passage of the Alaska Native Claims Settlement Act of

5 Alaska Native Claims Settlement Act of 1971 President Richard Nixon signed into law the Alaska Native Claims Settlement Act (ANCSA) on December 18th, 1971 ANCSA extinguished all aboriginal land claims in Alaska by transferring 44 million acres of land title and payment of $962.2M as settlement to Alaska Natives The biggest challenge with receiving the settlement was determining how land title and cash would be allocated and then distributed to Alaska Natives The Alaska Federation of Natives (AFN) came up with a solution: The cash would be used to form and fund regional and village corporations The land and cash was to be allocated to each regional and village corporation using a formula based on lands lost in each region Each Alaska Native who was born before ANCSA passed could enroll as a shareholder with one village corporation and one regional corporation. Each shareholder received 100 shares in their regional corporation and 100 shares in their village corporation. The intent of the corporations was to become economic engines providing sustainable monetary support to Native people in their respective regions. 5

Alaska Native Corporations ANCSA divided the state into 12 regional corporations A thirteenth regional corporation (called the 13th Regional Corporation) was later formed to represent Alaska Natives

6 Alaska Native Corporations ANCSA divided the state into 12 regional corporations A thirteenth regional corporation (called the 13th Regional Corporation) was later formed to represent Alaska Natives living outside Alaska; however, this corporation did not receive any land title. Over 200 village corporations were formed as a result of ANCSA Today most Alaska Native Corporations provide annual dividends to shareholders in addition to educational scholarships, hiring preference, and many other varying cultural and social benefits. Not pictured: 13 th Regional Native Corporation (no land) 6

7 ANC Unique Value Propositions ANCs own numerous companies referred to as sister subsidiaries. Each of these companies are treated as small, disadvantaged (SDB) businesses for the purposes of meeting small business goals. Sister subsidiaries will often share their back office functions amongst themselves. The cost of payroll, accounting, recruiting, benefits, and facilities can be distributed amongst those companies thus lowering overhead expenses. receive the benefits of working with a small business partner that actually has the maturity and infrastructure of a mid-sized business. Under some conditions, past performance of one company can be represented by a sister subsidiary. 7

8 Contracting with ANCs No Sole Source Dollar Threshold 13 C.F.R (b): SBA may award a sole source 8(a) contract to an ANC with a value up to $22M without a Justification and Approval (J&A). There is no dollar threshold for a sole source award with an approved J&A. 8(a) Sole Source Awards Cannot be Protested 13 C.F.R (a): ANC 8(a) companies eligible for a sole source or competitive 8(a) requirement may not be challenged by another Participant or any other party, either to SBA or any administrative forum as part of a bid or other contract protest. Exception to Affiliation Coverage - 13 CFR (b)(2): 8(a) participants owned and controlled by Alaska Native Corporations/Indian tribes are not considered to be affiliated with other concerns because of common ownership or management. Small Business Subcontracting - FAR (c): Subcontracts awarded to an ANC/Indian tribes are counted towards subcontracting goals for small business regardless of size or SBA certification status. For additional Contract Officer training available from the SBA please see:

9 Procurements to an ANC 8(a) Because a single ANC is representative of thousands of Alaska Natives, an ANC is allowed to own multiple 8(a) participants so long as they don t share the same primary NAICS code. Approval of these 8(a) applications is streamlined by the SBA. The regulation for procuring an SDB award through the 8(a) program is outlined in 13 CFR For a sole source requirement to an ANC, the Business Opportunity Specialist at the SBA office in Alaska is sent a copy of the offering letter. There is presently a staffing issue in that office so the SBA office in Spokane, WA is providing backup. John Dicus is the Business Opportunity Specialist there. The offer letter must contain the data points that the CFR describes such as description of the work, POP, NAICS code, dollar value, etc. The SBA s Standard Operating Procedure for the Office of Business Development was revised in September Chapter 4A addresses their specific processing requirements for handling these letters. Please note: KSI has graduated from the 8(a) program but has a sister subsidiary, Arlluk Technology Services, which holds that status. KSI may still receive 8(a) awards through GSA STARS II. 9

10 Koniag, Inc. Summary ~ 3,850 shareholders descended from the Kodiak Archipelago Koniag stock is restricted and cannot be sold Stock can be transferred or willed to family members Non-Natives who inherit stock cannot vote their shares Nine Member Board of Directors Elected by Native shareholders Sets the overall direction of the corporation ANCSA requires every board member of an ANC to be a voting shareholder; therefore, ANCs are owned and controlled by Alaska Natives Koniag Lands 145K acres of surface estate and approximately 990K acres of subsurface estate all in the Kodiak Region Koniag Business Operations Nearly 20 subsidiaries Many are federal contractors and participating in the SBA s 8(a) program

Koniag Government Services Companies SDB - Services Applications Development (CMMI 3) Health IT Data Warehousing Data Center Architecture & Design Enterprise IT Services Cyber Security Consulting

Agency Consumer Product Safety Commission DOI/BIA PCLOB Maryland Health Exchange Baltimore City Various Federal/State/Education organizations for packaged software 8(a) - Services Program Acquisition

DHS/TSA OUSD(C) Comptroller Intelligence and Special Operations FEMA LLNL SDB - Services Assistive Technologies Applications Development CIO Advisory Services Data Center Architecture & Design

8(a) - Services Health IT Applications Development Data Center Architecture & Design Enterprise IT Services Cyber Security SSA CPSC 8(a) - Services Acquisition Support Facility O&M and Security

11 Koniag Government Services Companies SDB - Services Applications Development (CMMI 3) Health IT Data Warehousing Data Center Architecture & Design Enterprise IT Services Cyber Security Consulting Information Assurance & Security CIO Support Services IT Infrastructure Web Hosting & Services CMS SSA DISA/ White House Comm. Agency Consumer Product Safety Commission DOI/BIA PCLOB Maryland Health Exchange Baltimore City Various Federal/State/Education organizations for packaged software 8(a) - Services Program Acquisition Mgmt Support Financial/Business Systems Analysis Special Communications Emergency Preparedness and Continuity of Operations Physical Security and Access Control Enterprise Transformation WHCA DISA DHS/TSA OUSD(C) Comptroller Intelligence and Special Operations FEMA LLNL SDB - Services Assistive Technologies Applications Development CIO Advisory Services Data Center Architecture & Design Enterprise IT Services Facilities Design & Management Information Assurances & Security ITIL based ITSM IV&V PMO Services DOJ FBI OSD DCMO SSA State Department 8(a) - Services IT Support Services DoD 8(a) - Services Health IT Applications Development Data Center Architecture & Design Enterprise IT Services Cyber Security SSA CPSC 8(a) - Services Acquisition Support Facility O&M and Security Management Consulting Assistive Technology DoD FEMA Federal Highways 8(a) - Services Cyber Intelligence Business Analysis COOP CPSC and DoD SDB - Services Cultural Resource Management PacArctic SDB - Services Commercial Applications Development DoD Medical Facilities State Governments Educational Institutions 11

Koniag Services, Inc. Information Technology services company CMMI-DEV v1.

Alaska Native-owned company founded in 1994 Member company of the Koniag

GSA STARS II contract available to KSI through 2021 (GS-06F-0792Z) HHS/CMS

12 Koniag Services, Inc. Information Technology services company CMMI-DEV v1.3 (Staged) ISO 9001 Quality Management Certified Small Disadvantaged Business Alaska Native-owned company founded in 1994 Member company of the Koniag Government Services Sector GSA IT Schedule 70 holder (GS-35F-348DA) 8(a) under GSA STARS II contract available to KSI through 2021 (GS-06F-0792Z) HHS/CMS Strategic Partners Acquisition Readiness Contract (SPARC) awardee (HHSM I) Cleared Facility 12

13 Addendum The Kodiak/Koniag Story 13

Koniag Region The Kodiak Archipelago Alaska Natives from the Kodiak region

as the regional corporation representing people indigenous to Kodiak Kodiak

the world The region is composed of seven communities: The City of Kodiak and

14 Koniag Region The Kodiak Archipelago Alaska Natives from the Kodiak region formed Koniag, Inc. as the regional corporation representing people indigenous to Kodiak Kodiak Island is the second largest island in the United States and 80 th largest in the world The region is composed of seven communities: The City of Kodiak and six remote Alaska Native (Alutiiq) villages The Kodiak Island Borough population is ~13,500 The largest bears in the world live in Kodiak 14

15 Types of Native Entities in the Kodiak/Koniag Region Regional Native Corporation (Business Entity) Koniag Village Corporations (Business Entities) Afognak Native Corporation Old Harbor Native Corporation Natives of Kodiak Leisnoi, Inc. Ouzinkie Native Corporation Akhiok-Kaguyak, Inc. Tribal Councils (Governments) Sunaq Tribe of Kodiak Native Village of Afognak Tangirnaq Native Village Native Village of Ouzinkie Native Village of Akhiok Native Village of Port Lions Old Harbor Tribal Council Larsen Bay Tribal Council Karluk IRA Tribal Council Kaguyak Village 15

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The Alutiiq People (Sugpiaq) Sugpiaq (or Alutiiq) people are indigenous to coastal communities in south central Alaska, mostly from the Koniag Archipelago Sugpiaq people have lived on the island for

17 The Alutiiq People (Sugpiaq) Sugpiaq (or Alutiiq) people are indigenous to coastal communities in south central Alaska, mostly from the Koniag Archipelago Sugpiaq people have lived on the island for an estimated 10,000 years Rich culture including language, arts and a subsistence way of life. Sugpiaq people traditionally lived a coastal subsistence lifestyle including the use of ocean resources such as salmon, halibut, and whale in addition to land resources such as berries and land mammals Russians began occupation of the island in 1784, which was at times hostile, and led to major changes for Alutiiq people over the following two centuries In the early 1800s there were an estimated 60 Alutiiq villages, today there are six villages; the population of Alutiiq people declined considerably after Russian contact as the result of multiple factors including atrocities and disease. Learn Alutiiq language: 17

SBA Programs for Native American Entities

SBA Programs for Native American Entities First Wednesday Virtual Learning Series 2018 www.sba.gov 1 Hosts Jan Kaiser, Procurement Center Representative SBA Office of Government Contracting, Area IV, Chicago