U.S. Sen. Claire McCaskill has launched an investigation into the millions of contracting dollars that Alaska Native Corporations have received from the federal government since 2000, The Anchorage Daily News reported on May 18.
McCaskill sent a letter to 20 of Alaska's largest Native Corporations last week. In it, she requested their internal records, including executive and board of directors pay and how many Natives they employed, covering the last eight years.
At issue are the contracting advantages that Alaska Native Corporations have with the Small Business Administration Section 8(a) program. Section 8(a) helps small, disadvantaged companies access the federal procurement market. It is typically for small contracts (those under $5.5 million for goods or $3.5 million for services). Federal law, though, provides the Corporations with an exemption, allowing them to enter into sole-source contracts of any value. They are also allowed to subcontract work to companies that don’t qualify for the Section 8(a) program and to enter into joint ventures and partnerships with non-Native companies for sole-source contracts.
The Corporations that received a letter were asked to provide the information no later than May 29, 2009. A hearing with the Subcommittee on Contracting Oversight has been scheduled for July 16, 2009.
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