Senator takes closer look at Alaska Natives

Senator McCaskill wants infor from ANCs

Twenty Alaska Native Corporations (ANCs) received letters this week from Sen. Claire McCaskill (D-Mo.).

McCaskill, the chair of the Senate Homeland Security and Governmental Affairs Committee’s Contracting Oversight Subcommittee, wants to know more about the ANC businesses and their special set-aside status in federal contracting. Regulations allow the government to award the ANCs sole-source contracts and contracts without competition.

Based on a letter sent  May 12 to Charles Totemoff, president and chief executive officer of Chenega Corp., of Anchorage, Alaska, McCaskill is asking for:

  • The salaries and compensation the company pays its executives and cash dividends paid to shareholders.
  • The company's size and its total revenue and operating expenses.
  • How much money the company received from federal contracts and subcontracts each year from 2000 to 2008.

McCaskill's subcommittee scheduled a hearing for July 16 to take a closer look at the companies.

Six ANCs ranked on Washington Technology’s 2009 Top 100 list of information technology contractors, with one being in the top 50. NANA Regional Corp. nearly doubled in contracting dollars, jumping from $214.8 million in fiscal 2007 to $427.6 million in 2008. Also among to top 100:

  • Arctic Slope Regional Corp. was No. 58 with $319 million in 2008.
  • Chenega was No. 61 with $305.5 million.
  • Eyak Technology LLC was No. 65 with $281.4 million.
  • Chugach Alaska Corp. was No. 74 with $218.6 million.
  • Alutiiq LLC was No. 91 with $171.1 million.

ANCs were established in 1971, and in 1986 they were made eligible for a Small Business Administration program that allows firms to be awarded federal contracts noncompetitively. Government Accountability Office officials say agencies find the ANC exemption an advantage when they need to award a contract quickly.

SBA’s programs put restrictions on sole-source contracts and company size, but ANCs are exempt. They can enter sole-source contracts of any value. ANCs can also subcontract work to companies that don’t qualify for SBA’s 8(a) small-business program and enter into joint ventures and partnerships with non-native companies for sole-source contracts.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Reader Comments

Wed, Jul 15, 2009

SBA 8(a) companies have been bilking the taxpayers for more than 25 years now. Many 8(a)s get the government contracts either with very limited competition or no competition at all. These companies often scrape the cream (profit) off the top and subcontract to other more competent companies to actually get the job done. That practice costs the taxpayers (you and me) more money for least efficiency. The 8(a) program has nothing to do with disadvanages and only has to do with taking advantage over white males (except that recently white male wounded veterans were allowed into the club). An 8(a) owner can be a Harvard graduated millionaire and be black or female, or anything else but a white male and get preferential treatment. I call it racist bigotry and prejudice. So how much longer do these so called disadvantaged people need a special pass? 50 years, 100 years? Perpetual? Just keep going until the bank is broken and the country fails by lowering the bar to "even" the playing field. I am over 60 and have been discriminated against for being white my entire adult life. I've had contracts I competed for and won later taken away and given to less qualified 8(a)s. Then had the government demand that my employees go the the 8(a) since they had no qualified staff of their own. It's not just the ANCs. It's the whole corrupt 8(a) program.... Ge gone with it.

Fri, Jun 12, 2009

horrah! they all should be investigated and abide by the same rule as any other 8a companies.

Thu, Jun 11, 2009

Thanks for the info. Kick the ANC's out of the SBA 8(a) program they are multi millionairs by now. They're participation defeats the purpose of the program. Either your disadvantaged or your not...It's discriminating to think that ANC's are more disadvantaged than African American or American Woman Owned Companies etc...

Mon, May 18, 2009 Pat Henry Virginia

It is about damn time!!!!! Where have you been! Does ex Senator Stevens know about this activity?

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