Partnering

Government:

• SBA 8(a) Program -- Companies with at least 50% of the equity owned by an Indian or Alaskan Native Tribe may also be eligible for certification by the Small Business Administration as an 8(a), “American Indian–Tribally Owned Concern, Small Disadvantaged Business” (SDB). This classification allows the federal government to award contracts to qualified firms on a “sole-source” basis beyond the standard $3 million 8(a) limitation. The affiliation rules that are normally applicable to size standard determinations by the SBA do not apply to tribal 8(a) enterprises. Tribes may form and operate multiple 8(a) companies without regard to affiliation if the NAIC codes are unique to each. Tribally owned enterprises do not have to be in business for the two-year minimum period usually required by SBA regulation if they can provide an acceptable business plan indicating the firm can meet the various performance requirements established by the SBA for 8(a) companies (13 CFR 124.109(c)(6)(ii)).
• Sole Source -- Through sole source contracts, businesses are given an opportunity to enter the government-contracting arena and gain the experience necessary to compete in the full and open market. Competitive bidding on limited opportunities allows 8(a) contractors to gain valuable experience in various market arenas. Under 13 CFR 124.506(b), the Small Business Administration may award sole-source federal contracts to tribally-owned, certified 8(a) companies without regard to contract value. This CFR provision exempts contracts to 8(a) companies owned by Indian or Alaska Native tribes from the competitive dollar-limit thresholds of other 8(a) contracts. Also, protests by other contractors are not allowed with respect to a tribally-owned company in connection with such sole-source contracts. IDIQ contracting with tribally-owned entities has proven especially lucrative for some tribally-owned organizations.
• Contracting Incentives -- Section 10 USC 2323(a) of the United States Code allows a specified agency to award a contract to a joint venture firm that is at least 50% native-owned. Consequently, the agency awarding the contract allows small business contracting goals to be counted toward the native-owned portion of the joint venture.
• Direct Conversion -- Section 8014 of the Defense Appropriation Act (Fiscal Year 2002) details how DoD agencies may directly convert full time equivalent (FTE) positions to tribally-owned concerns rather than conducting A-76 cost comparison studies. This applies when the Tribally Owned Concern has at least 51% ownership of a joint venture or is the prime contractor performing at least 51% of the work. There is no limit to the dollar value of the contract. The United States government may directly outsource non-inherently governmental services or functions to a tribal 8(a) enterprise under OMB circular A76 without study or cost comparison.