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Contracting Incentives

Summary

ANC Rights and Privileges benefit Goldbelt Falcon clients as well as our shareholders by providing streamlined mechanisms through which government clients gain prompt award of a contract without dollar limitation and without protest. As an Alaska Native Corporation and certified 8(a) company, Goldbelt Falcon broadens a government program manager's options by opening access to an efficient and streamlined procurement process. We deliver the right team with the right skills at the right price.

The United States Congress gave Native American Tribes and Alaska Native Corporations (ANCs) unique rights in the Federal procurement process through the Alaska Native Claims Settlement Act (ANSCA) of 1971. Working with an ANC 8(a) firm has a wide range of benefits.

What are the incentives?
How doe the Indian Incentive program work?
Why did Congress institute the Indian Incentive program?

What Are The Incentives?

Tribal and ANC 8(a) firms may accept sole source 8(a) contracts with no upper dollar limit (13 CFR 124.506(b)) while all other 8(a) firms may not accept sole source contracts in excess of $3 million for services and $5 million for manufacturing. Congress provides this opportunity because it recognizes that tribes and ANCs have the large responsibility of pulling their entire tribal membership up from poverty and need larger contracts to be able to do so. For the same reason, they permit tribes and ANCs to have an unlimited number of 8(a) firms, so long as each is in a different primary NAICS Code.

Congress also permits a tribal or ANC owned 8(a) firm to have many of the attributes of a large company, enabling them to perform large and complex contracts while still having preferential procurement rights under the 8(a) program. Also, directed awards to Goldbelt Falcon under the 8(a) program are non-protestable (13 CFR 124.517(a)).

With Goldbelt Falcon as a prime contractor, Department of Defense clients may qualify for a 5% bonus payment in accordance with the Indian Incentive Program.

How does this process work?

Known as the ‘Search Letter’ process, Federal program managers can respond to an SBA request by assigning their procurement to the 8(a) program directly with Goldbelt Falcon. A streamlined procurement process such as Alpha Contracting allows Goldbelt Falcon management to work directly with clients assuring that we deliver the right team with the right skills at the right price. Goldbelt Falcon may subcontract up to 49 percent with other capable companies to maximize performance for clients.

Why did Congress institute these incentives?

Alaska Native Villages and Indian reservations suffer from some of the worst poverty in America with unemployment levels above 60 percent. A federal study found that the area of the US with the lowest life expectancy was not an urban ghetto but an Indian reservation. High unemployment contributes to depression, drug abuse and crime. The Alaska Native Corporations (the Alaska equivalent of tribes) and Indian tribal governments have the primary responsibility for promoting economic development among native populations. On the premise that it is both appropriate and necessary to use the Federal government's massive procurement activity to help jump-start reservation economies, these rights provide Federal agencies and federal contractors with strong incentives to contract with ANC and tribal firms.

These ANC Rights and Privileges benefit shareholders and provide streamlined mechanisms whereby a government client can gain prompt award of a contract without limitation and without protest.

As an Alaska Native Corporation and certified 8(a) company, Goldbelt Falcon broadens a government program manager's options by opening access to an efficient and streamlined procurement process.

Last Updated: Friday, February 8, 2008