Alaska Native Corporations (ANCs) were established under the Alaska Native Claims Settlement Act (ANCSA) of 1971 to settle land claims and foster economic development for Alaska Natives. These corporations are owned by Alaska Native shareholders and operate various businesses, including those that participate in the SBA’s 8(a) program.
The 8(a) Business Development Program is a robust nine-year program created to help firms owned and controlled by socially and economically disadvantaged individuals, like ANCs. The 8(a) Program provides business development support, including training, counseling, and technical assistance, to help these firms compete more effectively in the American economy.
Working with an ANC 8(a) company offers several unique benefits, especially in the context of federal contracting:
- Sole-Source Contracts: ANCs can receive sole-source contracts without the typical competitive bidding process. This can significantly speed up procurement cycles and reduce administrative burdens.
- Exemption from Competitive Thresholds: Unlike other 8(a) companies, ANCs are not subject to the $4.5 million cap on sole-source contracts, allowing for larger contract awards ($25 Million for Federal Civilian Agencies / $100 Million for Department of Defense).
- The Indian Incentive Plan (IIP) – 5% Incentive Program: Department of Defense contractors who subcontract to ANC 8(a) firms can receive a 5% incentive of the subcontract’s total value, promoting collaboration and mutual success.
- Enhanced Control and Accelerated Procurement: The 8(a) program allows for greater control over project scope and budget, with a simplified and accelerated procurement process.
- Business Development Support: ANC 8(a) companies receive substantial business development support, including training, counseling, and technical assistance from the SBA.
These benefits make ANC 8(a) companies attractive partners for federal agencies and prime contractors looking to streamline procurement processes and achieve socioeconomic goals.
Arctic IT Government Solutions (AITGS) is an ANC 8(a) with service expertise in business application modernization, cloud infrastructure support, IT support services – including a 24X7 help desk, cybersecurity, and AI strategic planning. Connect with us today to learn how we can work together on technology solutions that will help our federal agencies thrive.
By Steve Schmitz, President and General Manager of Arctic IT Government Solutions