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ANCSA Regional Association Responds to U.S. Senator Claire McCaskill’s Call For Oversight Of Alaska Native Corporations

Monday, July 7, 2014

(Anchorage, Alaska) – The Alaska Native Claims Settlement Act (ANCSA) Regional Association is surprised and disappointed that U.S. Senator Claire McCaskill has rewnewed her attacks targeting Alaska Native Corporations (ANCs) and their participation in federal government 8(a) contracting.

As Chair of the Subcommittee on Financial & Contracting Oversight, Senator McCaskill “demanded answers from the Small Business Administration (SBA) about rules designed to improve oversight of Alaska Native Corporations” focusing on the regulations implemented in 2011 regarding follow-on contracts, joint ventures and benefits ANCs provide to their shareholders. Senator’s McCaskill’s recent press release is indicative of the ongoing misperceptions and lack of understanding surrounding ANCs and their participation in federal government 8(a) contracting.

"Over the past three years, ANCSA corporations have experienced losses in federal contract revenues which have had a significant impact on shareholder benefits including dividends, elder benefits, employment, scholarships, and other economic, social, and cultural development programs that were part of the original intent of the business development model required by ANCSA. Despite such losses in contracting revenues, ANCSA Corporations remain dedicated to providing economic benefits back to their communities," said Jason Metrokin, Chairman of the Association.

While 8(a) procurement is important to ANCSA Corporations, it still represents a mere 1.26 percent of all federal contracting. During the last four years, the ratio of 8(a) to total revenue has ranged from a high of 45.67 percent in 2009 to the current ratio in 2012 of 35 percent. With typical profit margins on federal government contracts of less than five percent, 8(a) contracts are not a path to great wealth, but they have been a successful path to cash flow and capacity development within the ANCSA Corporations – Regional and Village.

 

 

Contact: Kim Reitmeier
(907) 339-6053
kim@ancsaceos.org