Native-owned companies see drop in contracts

The amount of government contracts to Native Americanowned companies based in Alaska saw a 66 percent drop in 2005.

According to information from the Federal Procurement Data System, locally owned Native American companies received 4,780 federal contracts with awards totaling nearly $1.4 billion

In fiscal 2005, agencies awarded 2,371 contracts totaling $466 million. Federal fiscal years run from Oct. 1 through Sept. 30.

It's unclear why government contracts have declined so drastically, or even if they truly have. It all has to do with where the Alaska corporation currently does its business.

The majority of Alaska-based, Native American companies are subsidiaries of Alaska Native corporations. A number of these companies are certified under the Small Business Administration's 8(a) program, which gives preferences to minority-owned businesses.

Native American-owned companies, however, get additional preferences under the 8(a) program, including the ability to negotiate with federal agencies for solesource contracts meaning there is no formal competitive bid process - and they can be awarded jobs with no limits on the contract amount.