Current Issues

NACA closely monitors legislative initiatives on Capitol Hill and informs our member organizations of legislation which may interest them.

Army Policy

On January 5, 2011 the Acting Deputy Assistant Secretary of the Army (Procurement) issues a memorandum entitled Extensive Use of High Dollar, Sole-Source 8(a) Contracts. The notice requires that all sole source 8(a) contracts in excess of the 8(a) competitive threshold be scrutinized to ensure they can be justified, meet applicable subcontracting limitations, and are in the best interest of the government. Although the notice focuses on ANCs and says sole source awards to ANCs should be "the ex-ception not the rule" it will affect Tribes and NHOs as well. Contracting officers are already re-quired to ensure that all government contract awards, no matter to whom, be made with sound judgment, best value, and appropriate. Thus, NACA is very concerned the Army’s policy notice serves no other purpose than to ensure Native 8(a)s are no longer awarded contracts.

Without regulations in place or guidance from the OFPP and OMB, NACA fears the Army’s policy notice may serve to cap all Native 8(a) awards at the individual 8(a) level. Contracting Officers will be too scared to do business with Native 8(a)s. We believe other agencies may at-tempt to implement similar policies, effectively ignoring current small business policy and regu-lations in “anticipation” of what “might be” implemented through the upcoming Section 811 regulations.

NACA has contacted the OFPP and FAR Council to check on the status of the regulations and an update on their efforts to provide guidance in the interim until Section 811 regulations are im-plemented. We are reaching out to Members of Congress and the Administration to see what as-sistance, if any, they may be able to provide.

Anti-Native 8(a) Legislation

In 2010, Senator Claire McCaskill (D) Missouri and Congressman Bennie Thompson (D) Mississippi introduced bills, S.3959 and H.R. 6477 To eliminate the preferences and special rules for Alaska Native Corporations under the program under section 8(a) of the Small Business Act.

Letters From Tribes to Senators Urging Their Support to Oppose McCasill/Thompson Legislation

Small Business Administration Regulations

On February 11, 2011, the SBA issued final regulations that provided significant reform to the 8(a) program that address concerns that have been raised by some in Congress and the media about the program. The SBA regulations will be effective March 14, 2011. These regulations are a product of years of work, including numerous Tribal consultations held nationwide in 2007, and 2009-2010. In addition to changes to the program overall, the final regulations will increase oversight of Native 8(a) firms, significantly changing how ANCs, Tribes, and Native Hawaiian Organizations participate in the program, and increasing reporting and transparency. The following highlights the most significant changes that will have long-lasting impacts on Native enterprises.

Native 8(a) Enterprise Letters Comments

Other Small Business Comment Letters referencing Native 8(a) Enterprises