Dollars keep growing for Alaska Native Corporations

During the past seven years, 8(a)small businesses owned by AlaskaNative Corporations and AmericanIndian tribes have made significant stridesin the government information technologymarket.In past years, Washington Technologyincluded those companies in the Top 258(a) list, in which we rank the largest companiesin the program. Last year, 14 of theTop 25 were ANCs or tribally owned companies.And for the second year in a row,the top five 8(a) companies are ANCs ortribally owned.This year, we've created a separate list forthose companies. They fall within 8(a)parameters but also have several contractingrules that can make them even moreattractive to government buyers and othercompanies looking for partners. As theyhave grown, a comparison to other 8(a)small businesses didn't seem appropriate.For example, the largest ANC ? ASRCFederal Holding Co. ? had $621.8 millionin prime contracting revenue in fiscal 2007.In comparison, the largest traditional 8(a)? USfalcon Inc. ? had $95.4 million,according to market research firmFedSources Inc. Those numbers include8(a) prime contracts and work won underfull-and-open and other competitions.ASRC is a holding company owned bythe Artic Slope Regional Corp. Under thatumbrella, ASRC owns nine companies,including ASRC Management Services,which is ranked No. 3 on the Fast 50 list.Five of the nine are in the 8(a) program.Some industry observers say ANCs andtribally owned companies have an unfaircompetitive advantage.Such companies receive exemptionsfrom any ceiling on sole-source contracts.Other 8(a) companies can receive sole-sourceawards only for manufacturing contractsworth as much as $5 million or lessor services contracts worth $3 million.Competition is required for all other contracts.ANCs and tribal 8(a) companies canwin contracts of any size.But those companies also are required touse their profits to fund improvements fortheir shareholders ? Alaska natives. Forinstance, in 2004, ANCs paid Alaskanatives more than $27 million in dividendsfrom profits on federal contracts anddonated $4.9 million to community culturaland social support programs for theAlaskan native community, according tothe Web site for Chenega Corp., No. 2on the list with $327.7 million in primecontracts. ANCs also funded $14 millionin scholarships from 1999 to 2004.